<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY 25, 1997
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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THERMO ELECTRON CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION)
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04-2209186
(I.R.S. EMPLOYER IDENTIFICATION NUMBER)
81 WYMAN STREET, P.O. BOX 9046
WALTHAM, MASSACHUSETTS 02254-9046
(617) 622-1000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
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SANDRA L. LAMBERT, SECRETARY
THERMO ELECTRON CORPORATION
81 WYMAN STREET, P.O. BOX 9046
WALTHAM, MASSACHUSETTS 02254-9046
(617) 622-1000
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE FOR THE REGISTRANT)
---------------
COPIES TO:
SETH H. HOOGASIAN, ESQ. EDWIN L. MILLER, JR., ESQ.
VICE PRESIDENT AND TESTA, HURWITZ & THIBEAULT, LLP
GENERAL COUNSEL, HIGH STREET TOWER
THERMO ELECTRON 125 HIGH STREET
CORPORATION BOSTON, MASSACHUSETTS 02110
81 WYMAN STREET, P.O. BOX (617) 248-7000
9046
WALTHAM, MASSACHUSETTS
02254-9046
(617) 622-1000 ---------------
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time after the effective date of this registration statement.
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the
following box. [_]
If any of the securities being registered on this form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, 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 of 1933, 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(b)
under the Securities Act of 1933, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [_]
If delivery of the Prospectus is expected to be made pursuant to Rule 434,
check the following box. [_]
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CALCULATION OF REGISTRATION FEE
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<TABLE>
<CAPTION>
TITLE OF EACH CLASS OF PROPOSED MAXIMUM AMOUNT OF
SECURITIES TO BE REGISTERED AGGREGATE OFFERING PRICE(1) REGISTRATION FEE
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<S> <C> <C>
Common Stock of Thermo Electron
Corporation ($1.00 par value)... (2)(3)
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Debt Securities of Thermo Electron
Corporation..................... (2)(4)
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Total............................ $1,000,000,000 $303,031
</TABLE>
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(1) Estimated solely for the purpose of determining the registration fee in
accordance with Rule 457(o) under the Securities Act of 1933.
(2) There are being registered hereunder such principal amount or number of
securities as may from time to time be issued, but in no event will the
aggregate initial offering price of the securities registered hereunder
exceed $1,000,000,000. The securities registered shall be deemed to
include such indeterminate number of shares of Common Stock of Thermo
Electron Corporation and such indeterminate amounts of Debt Securities of
Thermo Electron Corporation as may be issued upon conversion or exchange
of any securities registered hereunder that provide for conversion or
exchange into other securities.
(3) The shares of Thermo Electron Corporation Common Stock being registered
hereunder, if issued prior to the termination of the Thermo Electron
Corporation Shareholder Rights Plan, shall include Rights to purchase a
Unit consisting of one ten-thousandth of a share of Series B Junior
Participating Preferred Stock. Prior to the occurrence of certain events,
the Rights will not be exercisable or evidenced separately from the Common
Stock.
(4) Plus accrued interest, if any.
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THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT
SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS
REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION
STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING
PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.
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<PAGE>
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A +
+REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE +
+SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY +
+OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT +
+BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR +
+THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE +
+SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE +
+UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF +
+ANY SUCH STATE. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
SUBJECT TO COMPLETION, DATED JULY 25, 1997
$1,000,000,000
THERMO ELECTRON CORPORATION
COMMON STOCK AND DEBT SECURITIES
-----------
Thermo Electron Corporation (the "Company") may offer and sell from time to
time, together or separately, shares of its common stock, $1.00 par value per
share (the "Common Stock"), and its debt securities ("Debt Securities"), which
may be either senior debt securities ("Senior Securities") or subordinated debt
securities ("Subordinated Securities"), consisting of debentures, notes and/or
other unsecured evidences of indebtedness. The Common Stock and the Debt
Securities in one or more series (collectively, the "Securities") may be
offered, separately or together, at prices and terms to be set forth in one or
more supplements to this Prospectus (each a "Prospectus Supplement") up to an
aggregate initial offering price of $1,000,000,000. Any Debt Securities sold
hereunder will be denominated in U.S. dollars. Specific terms of the Securities
for which this Prospectus is being delivered will be set forth in the
applicable accompanying Prospectus Supplement including, where applicable, (i)
in the case of Debt Securities, the specific designation, aggregate principal
amount, denominations, maturity, premium, rate of interest (or method of
calculation thereof) and time of payment thereof, terms for redemption at the
option of the Company or the holder, terms for any sinking fund payments,
subordination provisions, if any, terms, if any, providing for conversion of
the Debt Securities into Common Stock (or, in certain instances, cash in lieu
thereof), the form of the Debt Securities (which may be registered or bearer,
or certificated or global), the initial public offering price and certain other
terms of the offering and sale of the Debt Securities in respect of which this
Prospectus is being delivered; and (ii) in the case of Common Stock, the number
of shares and initial public offering price of the Common Stock and certain
terms of the offering and sale thereof. The Prospectus Supplement may also
contain information, as applicable, about certain U.S. federal income tax
considerations relating to, and any listing on a securities exchange of, the
Securities for which the Prospectus Supplement is being delivered. The Common
Stock is listed on the New York Stock Exchange. Any Common Stock offered will
be listed, subject to notice of issuance, on such exchange.
The Securities may be sold by the Company directly or indirectly through
agents, underwriters or dealers as designated from time to time, or through a
combination of such methods. See "Plan of Distribution." The applicable
accompanying Prospectus Supplement will set forth the names of any
underwriters, dealers or agents involved in the sale of the Securities in
respect of which this Prospectus is being delivered and any applicable fee,
commission or discount arrangements with them. See "Plan of Distribution" for
possible indemnification arrangements with underwriters, dealers and agents.
This Prospectus may not be used to consummate sales of Securities unless
accompanied or, to the extent permitted by applicable law, preceded by a
Prospectus Supplement.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.
-----------
The date of this Prospectus is , 1997.
<PAGE>
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance
therewith file reports, proxy statements and other information with the
Securities and Exchange Commission (the "Commission"). Such reports, proxy
statements and other information can be inspected and copied at the public
reference facilities maintained by the Commission at 450 Fifth Street, N.W.,
Washington, DC 20549; and at the Commission's regional offices at 500 West
Madison Street, Chicago, Illinois 60661; and 7 World Trade Center, New York,
New York 10048. Copies of such material can be obtained by mail from the
Public Reference Section of the Commission at 450 Fifth Street, N.W.,
Washington, DC 20549, at prescribed rates. The Commission also maintains a Web
site that contains reports, proxy and information statements and other
information regarding registrants that file electronically with the
Commission, including the Company; the address of such Web site is
http://www.sec.gov. The Common Stock is listed on the New York Stock Exchange,
and such material that relates to the Company may also be inspected at the
offices of the New York Stock Exchange, 20 Broad Street, New York, New York
10005.
The Company has filed with the Commission a Registration Statement on Form
S-3 (herein, together with all amendments and exhibits, referred to as the
"Registration Statement") under the Securities Act of 1933, as amended (the
"Securities Act"), of which this Prospectus constitutes a part. This
Prospectus does not contain all of the information set forth in the
Registration Statement, certain parts of which are omitted in accordance with
the rules and regulations of the Commission. For further information,
reference is made to the Registration Statement.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed with the Commission by the Company (File No.
1-8002) are hereby incorporated by reference into this Prospectus:
(a) Annual Report on Form 10-K for the fiscal year ended December 28,
1996, as amended;
(b) Quarterly Report on Form 10-Q for the fiscal quarter ended March 29,
1997;
(c) Current Report on Form 8-K filed with the Commission on January 22,
1997 with respect to the commencement of Thermo Instrument Systems Inc.'s
all-cash tender offer for Life Sciences International PLC;
(d) The description of the Common Stock which is contained in the
Company's Registration Statement on Form 8-A filed under the Exchange Act,
as such description may be amended from time to time; and
(e) The description of the Company's Preferred Stock Purchase Rights
which is contained in the Company's Registration Statement on Form 8-A
filed under the Exchange Act, as such description may be amended from time
to time.
All documents filed by the Company pursuant to Section 13(a), 13(c), 14 or
15(d) of the Exchange Act subsequent to the date of this Prospectus and prior
to the termination of the offering of the Securities shall be deemed to be
incorporated by reference into this Prospectus and to be a part hereof from
the respective dates of filing of such documents. Any statement contained
herein or in a document all or any portion of which is incorporated or deemed
to be incorporated by reference herein shall be deemed to be modified or
superseded for purposes of this Prospectus to the extent that a statement
contained herein or in any other subsequently filed document which also is or
is deemed to be incorporated by reference herein modifies or supersedes such
earlier statement. Any statement so modified or superseded shall not be
deemed, except as so modified or superseded, to constitute a part of this
Prospectus.
The Company will provide without charge to any person to whom this
Prospectus is delivered, upon the written or oral request of such person, a
copy of any or all of the foregoing documents incorporated herein by reference
(other than certain exhibits to such documents). Requests for such copies
should be directed to Sandra L. Lambert, Secretary, Thermo Electron
Corporation, 81 Wyman Street, P.O. Box 9046, Waltham, Massachusetts 02254-9046
(telephone: (617) 622-1000).
3
<PAGE>
RISK FACTORS
In addition to the other information in this Prospectus and the applicable
Prospectus Supplement, prospective purchasers of the Securities offered hereby
should carefully consider the risk factors set forth in the Company's Annual
Report on Form 10-K for the fiscal year ended December 28, 1996, as amended.
THE COMPANY
The Company develops, manufactures and markets environmental monitoring and
analysis instruments; biomedical products including heart-assist devices,
respiratory care equipment, and mammography systems; paper-recycling and
papermaking equipment; alternative-energy systems; industrial process
equipment; and other specialized products. The Company also provides a range
of services for the personal care, environmental, laboratory analysis, and
metals-processing industries, and conducts advanced technology research and
development. The Company performs its business through majority-owned
subsidiaries that are partially owned by the public or by private investors,
as well as through wholly-owned subsidiaries.
The Company has developed leading market positions in many lines of
business, including environmental monitoring and analysis instruments,
mammography systems, biomass power plants, and paper-recycling equipment and
papermaking accessories. The Company is currently seeking to establish leading
market positions in the fields of left ventricular-assist systems, explosives-
detection systems, thermal soil-remediation services and dedicated natural gas
engines. The Company is developing new products in its Advanced Technologies
segment, as well as other segments.
A key element in the Company's growth has been its ability to commercialize
innovative products and services emanating from research and development
activities conducted at the Company's various subsidiaries and divisions. The
Company's strategy has been to identify business opportunities arising from
social, economic and regulatory issues and seek a leading market share through
the application of proprietary technology. As part of this strategy, the
Company continues to focus on the acquisition of complementary businesses that
can be integrated into existing core businesses to leverage the Company's
access to new markets.
The Company believes that maintaining an entrepreneurial atmosphere is
essential to continuing its growth and development. In order to preserve this
environment, the Company adopted the strategy of having certain subsidiaries
sell a minority interest to outside investors. The Company believes that this
strategy provides additional motivation and incentives for the management of
the subsidiaries through the establishment of subsidiary-level stock option
incentive programs, as well as capital to support the subsidiaries' growth.
The Company's majority-owned subsidiaries are provided with centralized
strategic planning, corporate development, administrative, financial and other
services that would not be available to many independent companies of similar
size.
The Company, a Delaware corporation, was founded in 1956, completed its
initial public offering in 1967, and was listed on the New York Stock Exchange
in 1980. The principal executive office of the Company is located at 81 Wyman
Street, Waltham, Massachusetts 02254-9046 (telephone: 617-622-1000).
USE OF PROCEEDS
Except as otherwise provided in the applicable Prospectus Supplement, the
net proceeds from the sale of the Securities will be used by the Company for
general corporate purposes, which may include repayment of outstanding
indebtedness, capital expenditures, working capital requirements, research and
development, repurchase of its Common Stock and other securities and the
securities of any of its subsidiaries through open-market purchases or
otherwise and possible future acquisitions. The precise amount and timing of
the application of such proceeds will depend upon the funding requirements of
the Company, and the availability and cost of
4
<PAGE>
other funds. Allocation of the proceeds of particular Securities, or the
principal reasons for the offering if no such allocation has been made, may be
described in the applicable Prospectus Supplement. Pending these uses, the
Company expects to invest the net proceeds primarily in investment grade
interest or dividend bearing instruments.
RATIOS OF EARNINGS TO FIXED CHARGES
The following table sets forth the historical ratios of earnings to fixed
charges of the Company and its subsidiaries for the periods indicated. For
purposes of computing the ratios of earnings to fixed charges, "earnings"
represent income from continuing operations before taxes and cumulative effect
of change in accounting principle, adjusted for minority interest in losses of
consolidated subsidiaries and minority interest in consolidated subsidiaries
with fixed charges, plus fixed charges, excluding capitalized interest. "Fixed
charges" for continuing operations consist of interest on indebtedness and
amortization of debt expense, capitalized interest and one-third of rental
expense, which is deemed to be the interest component of such rental expense.
<TABLE>
<CAPTION>
FISCAL YEAR(1) THREE MONTHS ENDED
------------------------ ------------------
1992 1993 1994 1995 1996 MARCH 29, 1997
---- ---- ---- ---- ---- ------------------
<S> <C> <C> <C> <C> <C> <C>
Ratio of earnings to fixed
charges.......................... 3.05 3.21 3.63 4.17 4.18 4.59
</TABLE>
- --------
(1) The Company's fiscal years ended on January 2, 1993, January 1, 1994,
December 31, 1994, December 30, 1995 and December 28, 1996.
5
<PAGE>
DESCRIPTION OF DEBT SECURITIES OF THE COMPANY
The following description sets forth certain general terms and provisions of
the Debt Securities of the Company to which any Prospectus Supplement may
relate. The particular terms of the Debt Securities offered by any Prospectus
Supplement and the extent, if any, to which such general provisions may not
apply to the Debt Securities so offered will be described in the Prospectus
Supplement relating to such Debt Securities.
The Debt Securities constitute either senior Debt Securities (the "Senior
Securities") or subordinated Debt Securities (the "Subordinated Securities").
The Senior Securities are to be issued under an Indenture (the "Senior
Indenture"), to be entered into between the Company and Bankers Trust Company,
as trustee (the "Trustee"), the form of which Senior Indenture is incorporated
by reference as an exhibit to the Registration Statement containing this
Prospectus. The Subordinated Securities will be issued under an Indenture (the
"Subordinated Indenture"), to be entered into between the Company and Bankers
Trust Company, as trustee (in such capacity, also the "Trustee"), the form of
which Subordinated Indenture is also filed as an exhibit to the Registration
Statement containing this Prospectus. The Senior Indenture and the
Subordinated Indenture are sometimes collectively referred to herein as the
"Indentures."
The following summary of certain provisions of the Debt Securities and the
Indentures does not purport to be complete and is subject to, and qualified in
its entirety by reference to, all the provisions of the Indentures, including
the definitions therein of certain terms. Wherever particular provisions or
defined terms of the Indentures are referred to, such provisions or defined
terms are incorporated herein by reference. Certain defined terms in the
Indentures are capitalized herein. Article or section references in
parentheses are to the applicable Indenture. References in this section to the
"Company" are solely to Thermo Electron Corporation and not to any of its
subsidiaries.
Unless otherwise indicated, currency amounts in this Prospectus and any
Prospectus Supplement are stated in United States dollars ("$," "U.S. Dollars"
or "dollars").
GENERAL
The Indentures do not limit the aggregate principal amount of Debt
Securities that may be issued thereunder and provide that Debt Securities may
be issued thereunder up to an aggregate principal amount that may be
authorized from time to time by the Company. Debt Securities may be issued in
one or more series thereunder. The Senior Securities will be unsecured
obligations of the Company and will rank on a parity with all other unsecured
and unsubordinated indebtedness of the Company. Unless otherwise indicated in
the applicable Prospectus Supplement, the Subordinated Securities will be
unsecured and subordinated in right of payment to all existing and future
Senior Indebtedness of the Company, in the manner and to the extent described
below under "Subordination of Subordinated Securities." The Company's rights
as a stockholder and the rights of its creditors, including holders of the
Debt Securities, to participate in the assets of any of the Company's
subsidiaries, as the case may be, upon a subsidiary's liquidation or
recapitalization will be subject to the prior claims of such subsidiary's
creditors.
Reference is made to the Prospectus Supplement relating to the particular
series of Debt Securities offered thereby for specific terms, including (where
applicable): (1) the title or designation of such Debt Securities and the
series in which such Debt Securities shall be included; (2) the aggregate
principal amount of such Debt Securities and any limit on such aggregate
principal amount; (3) the price or prices (expressed as a percentage of the
principal amount thereof) at which such Debt Securities will be issued; (4)
the date or dates on which the principal of and premium, if any, on such Debt
Securities will be payable, or the method or methods, if any, by which such
date or dates will be determined; (5) the rate or rates (which may be fixed or
variable) at which such Debt Securities will bear interest, if any, or the
method or methods, if any, by which such rate or rates are to be determined,
the date or dates, if any, from which such interest will accrue or the method
or methods, if any, by which such date or dates are to be determined, and
whether and under what circumstances Additional Amounts on such Debt
Securities will be payable, and the basis upon which interest will be
calculated if other than that of
6
<PAGE>
a 360-day year of twelve 30-day months; (6) the dates on which such interest,
if any, will be payable and the record dates therefor; (7) the place or places
where the principal of, premium, if any, and any interest or any Additional
Amounts with respect to such Debt Securities shall be payable, the place or
places where such registered Debt Securities may be surrendered for
registration of transfer and exchange, and the place or places where such Debt
Securities may be surrendered for conversion or exchange, if other than The
City of New York; (8) the period or periods within which, the price or prices
at which and the other terms and conditions upon which such Debt Securities
may be redeemed at the option of the Company; (9) the obligation, if any, of
the Company to redeem, repay or purchase such Debt Securities 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 such Debt Securities shall be redeemed, repaid
or purchased, in whole or in part, pursuant to such obligation; (10) whether
any such Debt Securities are to be issuable in registered form ("Registered
Securities") or bearer form ("Bearer Securities") or both and, if in bearer
form, the terms and conditions relating thereto and any limitations on
issuance of such Bearer Securities (including in exchange for registered Debt
Securities of the same series); (11) the authorized denominations in which
Debt Securities will be issuable, if other than denominations of $1,000 and
any integral multiple thereof (in the case of Registered Securities) or $1,000
or $10,000 (in the case of Bearer Securities); (12) the terms, if any, on
which such Debt Securities may be converted into other securities of the
Company; (13) whether any such Debt Securities will be issued in temporary or
permanent global form and, if so, the identity of the depository or
depositories for such global Debt Security; (14) the index, formulas or other
method, if any, with reference to which the amount of any payment of principal
of, premium, if any, or interest on or any Additional Amounts with respect to
the Debt Securities will be determined; (15) the portion of the principal
amount of such Debt Securities which will be payable upon declaration of
acceleration of the Maturity thereof, if other than the stated principal
amount thereof; (16) any addition to, or modification or deletion of, any
covenant or Event of Default with respect to such Debt Securities; (17) the
terms, if any, upon which Debt Securities may be exchangeable for other
Securities; (18) in the case of an issue of Subordinated Securities, the
subordination provisions, if different from those described under
"Subordination of Subordinated Securities" below; (19) the applicability of
any provisions described below under "Discharge, Defeasance and Covenant
Defeasance;" (20) the date(s) that the Securities are to be dated; and (21)
any other terms of such Debt Securities not inconsistent with the provisions
of the Indentures. As used in this Prospectus and any Prospectus Supplement
relating to the offering of any Debt Securities, references to the principal
of and premium, if any, and interest, if any, on Debt Securities will be
deemed to include mention of the payment of Additional Amounts, if any,
required by the terms of Debt Securities in such context. (Section 301)
Under the Indenture, the terms of the Debt Securities of any series may
differ, and the Company, without the consent of the holders of the Debt
Securities of any series, may reopen a previous series of Debt Securities and
issue additional Debt Securities of such series. (Section 301)
Debt Securities may be issued at a discount from their stated principal
amount. United States Federal income tax considerations and other special
considerations applicable to any such Original Issue Discount Securities will
be described in the applicable Prospectus Supplement.
Debt Securities may be issued that qualify as "Variable Rate Debt
Securities" for tax purposes. United States Federal income tax considerations
and other special considerations applicable to any such Variable Rate Debt
Securities will be described in the applicable Prospectus Supplement.
Debt Securities may also be issued that provide for the use of an index to
determine the amount of payments of principal of, premium, if any, or interest
on the series of which such Debt Securities are a part, but which do not
qualify as Variable Rate Debt Securities. Special Federal income tax,
accounting and other considerations applicable to such Indexed Securities will
be described in the applicable Prospectus Supplement.
7
<PAGE>
SUBORDINATION OF SUBORDINATED SECURITIES
The Subordinated Securities will be subordinated in right of payment to the
prior payment in full of all existing and future Senior Indebtedness of the
Company. Senior Indebtedness of the Company is defined for this purpose as the
principal of, premium, if any, and interest and other amounts due on or with
respect to the following, whether outstanding at the date of execution of the
Subordinated Indenture or thereafter incurred or created: (a) indebtedness of
the Company for money borrowed by the Company (including, without limitation,
purchase money obligations and money borrowed from any of its affiliates),
whether or not evidenced by debentures, bonds, notes or other corporate debt
securities or similar instruments issued by the Company; (b) obligations to
reimburse any bank or other person in respect of amounts paid under letters of
credit; (c) leases of real property, equipment or other assets, which leases
are capitalized in the Company's financial statements in accordance with
generally accepted accounting principles; (d) commitment, standby and other
fees due and payable to financial institutions with respect to credit
facilities available to the Company; (e) obligations of the Company under
interest rate and currency swaps, floors, caps or other similar arrangements
intended to hedge interest rates or currency exposure; (f) obligations secured
by any mortgage, pledge, lien or other encumbrance on property which is owned
or held by the Company subject to such mortgage, pledge, lien or other
encumbrance, whether or not the obligations secured thereby shall have been
assumed by the Company; (g) obligations of the Company constituting guarantees
of indebtedness of or joint obligations with another or others which would be
included in the preceding clauses (a), (b), (c), (d), (e) or (f); and (h)
modifications, renewals, extensions or refundings of any of the indebtedness,
leases, fees or obligations referred to in the preceding clauses (a), (b),
(c), (d), (e), (f) or (g) or debentures, notes or other evidences of
indebtedness issued in exchange therefor; provided that Senior Indebtedness
shall not include any particular indebtedness, lease, fee or obligation,
modification, renewal, extension, refunding or exchanged securities if, under
the express provisions of the instrument creating or evidencing the same, or
pursuant to which the same is outstanding, such indebtedness, lease, fee or
obligation or such modification, renewal, extension or refunding thereof or
exchanged securities are stated to be not superior in right of payment to the
Subordinated Securities. (Article Seventeen of the Subordinated Indenture) The
Subordinated Securities will rank pari passu with each other. The obligations
represented by the Subordinated Securities may rank pari passu with certain
other obligations of the Company, if so indicated in the applicable Prospectus
Supplement.
Upon (a) any insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or other similar case or proceeding
in connection therewith, relative to the Company or its creditors, as such, or
to its assets, or (b) any liquidation, dissolution or other winding up of the
Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit or creditors
or any other marshaling of assets and liabilities of the Company, all
principal of, premium, if any, and interest due upon all Senior Indebtedness
must be paid in full before the Holders of the Subordinated Securities or the
Trustee are entitled to receive or retain any assets so distributed in respect
of the Subordinated Securities. (Section 1702) Upon the maturity of any Senior
Indebtedness by lapse of time, acceleration or otherwise, such Senior
Indebtedness shall first be paid in full, or duly provided for in cash, before
any payment is made by the Company, directly or indirectly, on the
Subordinated Securities. Upon the happening of any event of default with
respect to any Senior Indebtedness, as defined therein or in the instrument
under which it is outstanding, permitting the holders to accelerate the
maturity thereof, then, unless and until such event of default shall have been
cured or waived or shall have ceased to exist, no payment shall be made by the
Company, directly or indirectly, on account of the principal of, premium, if
any or interest on the Subordinated Securities and any Coupons appertaining
thereto. (Section 1703) By reason of this provision, in the event of
insolvency, Holders of the Subordinated Securities may recover less, ratably,
than other creditors of the Company, including holders of Senior Indebtedness.
Subject to payment in full of all Senior Indebtedness of the Company, the
rights of Holders of the Subordinated Securities will be subrogated to the
rights of holders of Senior Indebtedness to receive payments or distributions
of cash, property or securities of the Company applicable to Senior
Indebtedness. (Section 1705)
The Subordinated Indenture places no limitation on the amount of additional
Senior Indebtedness or any other indebtedness that may be incurred by the
Company. The Company expects from time to time to incur additional
indebtedness, including Senior Indebtedness.
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STRUCTURAL SUBORDINATION
The obligations represented by the Debt Securities are obligations
exclusively of the Company and not of its subsidiaries. Because the operations
of the Company are, in large part, conducted through subsidiaries, the cash
flow and the consequent ability to service debt of the Company, including the
obligations represented by the Debt Securities, are dependent, in part, upon
the earnings of its subsidiaries and the distribution of those earnings to the
Company or upon loans or other payments of funds by those subsidiaries to the
Company. Pursuant to the Thermo Electron Corporate Charter, to which the
Company and each of its majority-owned subsidiaries is a party (the
"Charter"), the combined financial resources of the Company and its
subsidiaries allow the Company to provide banking, credit, and other financial
services to its subsidiaries so that each member of the Thermo Electron group
of companies may benefit from the financial strength of the entire
organization. Toward that end, the Charter states that each member of the
group may be required to provide certain credit support to the consolidated
entity. Nonetheless, the Company's ability to access assets held by its
majority-owned subsidiaries through dividends, loans, or other transactions is
subject in each instance to a fiduciary duty owed to the minority stockholders
of the relevant subsidiary. The subsidiaries are separate and distinct legal
entities and, except as provided in the Charter, have no obligation,
contingent or otherwise, to pay any amounts due pursuant to the Debt
Securities or to make any funds available therefor, whether by dividends,
loans or other payments. In addition, the payment of dividends and the making
of loans and advances to the Company by its subsidiaries may be subject to
statutory restrictions, and dividends paid by a subsidiary that does not
consolidate with the Company for tax purposes will be subject to taxation.
The obligations represented by the Debt Securities will be effectively
subordinated to all indebtedness and other liabilities, including current
liabilities and commitments under leases, if any, of the Company's
subsidiaries. Any right of the Company to receive assets of any of its
subsidiaries upon liquidation or reorganization of such subsidiary (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 the Company is itself recognized as a
creditor of such subsidiary, in which case the claims of the Company would
still be subject to any security interests in the assets of such subsidiary
and subordinated to any indebtedness of such subsidiary senior to that held by
the Company. In addition, any minority stockholder of such subsidiary would be
entitled to participate in the assets of such subsidiary on the same terms as
the Company.
CONVERSION RIGHTS
Unless otherwise indicated in an applicable Prospectus Supplement, the
following provisions shall be applicable with respect to any Debt Security
that is convertible into Common Stock (a "Convertible Debt Security").
The Holder of any Convertible Debt Security will have the right, at the
Holder's option, to convert any portion of the principal amount of a
Convertible Debt Security that is an integral multiple of $1,000 into shares
of Common Stock at any time on or after (a) in the case of all Convertible
Debt Securities other than a temporary global Bearer Security, its date of
issuance and (b) in the case of Convertible Debt Securities represented by a
temporary global Bearer Security, the receipt of definitive Convertible Debt
Securities, and prior to the close of business on the maturity date, unless
previously redeemed or repurchased, at the Conversion Price per share set
forth in an applicable Prospectus Supplement (subject to adjustment as
described below). The right to convert a Convertible Debt Security called for
redemption or delivered for repayment will terminate at the close of business
on the fifth trading day prior to the redemption date for such Convertible
Debt Security or the second trading day preceding the repayment date, as the
case may be, unless the Company defaults in making the payment due upon
redemption or repayment, as the case may be. (Section 1201)
The right of conversion attaching to any Convertible Debt Security may be
exercised by the Holder by delivering the Convertible Debt Security at the
specified office of a Conversion Agent (which in the case of a Convertible
Debt Security which is a Bearer Debt Security (a "Bearer Convertible Debt
Security") will only be the office of any Conversion Agent outside the United
States), accompanied by a duly signed and completed notice of conversion. The
Conversion Date will be the date on which the Convertible Debt Security and
the duly
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signed and completed notice of conversion are so delivered. As promptly as
practicable on or after the Conversion Date, the Company will issue and
deliver to the Trustee a certificate or certificates for the number of full
shares of Common Stock issuable upon conversion, together with payment in lieu
of any fraction of a share; such certificate will be sent by the Trustee to
the appropriate Conversion Agent for delivery to the Holder. Accrued interest
from the immediately preceding interest payment date until the Conversion Date
will be paid within five business days after the Conversion Date. Each Bearer
Convertible Debt Security delivered for conversion must be delivered with all
Coupons maturing after the Conversion Date. Coupons maturing on or before the
Conversion Date and not in default will be payable against surrender thereof,
and Coupons so maturing but in default will continue to be payable as set
forth in the Indenture, notwithstanding the exercise of the right of
conversion by the Holder of the Convertible Debt Security to which the Coupons
appertain, but Coupons maturing after the Conversion Date will not be paid. In
the case of any Convertible Debt Security that is a Registered Debt Security
which has been converted after any Regular Record Date but on or prior to the
next Interest Payment Date (other than any such Registered Debt Security whose
Maturity is prior to such Interest Payment Date), interest the Stated Maturity
of which is on such Interest Payment Date shall be payable on such Interest
Payment Date notwithstanding such conversion, and such interest shall be paid
to the Holder of such Registered Convertible Debt Security on such Regular
Record Date. No other payment or adjustment for interest, or for any dividends
in respect of Common Stock, will be made upon conversion. Holders of Common
Stock issued upon conversion will not be entitled to receive any dividends
payable to holders of Common Stock as of any record time before the close of
business on the Conversion Date. No fractional shares will be issued upon
conversion, but in lieu thereof, an appropriate amount will be paid in cash by
the Company based on the market price of the Common Stock at the close of
business on the day of conversion. (Sections 307, 1202 and 1203)
A Holder delivering a Convertible Debt Security for conversion will not be
required to pay any stamp and similar taxes or duties in respect of the issue
or delivery of Common Stock on conversion but will be required to pay any tax
or duty which may be payable in respect of any transfer involved in the issue
or delivery of the Common Stock in a name other than that of the Holder of the
Convertible Debt Security. Certificates representing shares of Common Stock
will not be issued or delivered unless all taxes and duties, if any, payable
by the Holder have been paid. (Sections 1202 and 1208)
The Conversion Price is subject to adjustment in certain events, including:
(a) dividends (and other distributions) payable in Common Stock on shares of
capital stock of the Company, (b) the issuance to all holders of Common Stock
of rights, options or warrants entitling them to subscribe for or purchase
Common Stock at less than the then current market price (determined as
provided in the Indenture) of the Common Stock, (c) subdivisions, combinations
and reclassifications of Common Stock and (d) distributions to all holders of
Common Stock of evidences of indebtedness of the Company, shares of capital
stock, cash or assets (including securities, but excluding those dividends,
rights, options, warrants and distributions referred to above, dividends and
distributions paid exclusively in cash out of the retained earnings of the
Company and mergers and consolidations to which the last paragraph of this
section applies). The Company reserves the right to make such reductions in
the Conversion Price in addition to those required in the foregoing provisions
as it considers to be advisable in order that any event treated for federal
income tax purposes as a dividend of stock or stock rights will not be taxable
to the recipients. No adjustment of the Conversion Price will be required to
be made until the cumulative adjustments amount to 1.0% or more of the
Conversion Price. (Section 1204) Notices of any adjustments to the Conversion
Price pursuant to this paragraph will be given to all Holders in the manner
required in the Indenture. (Section 1205)
If at any time the Company makes a distribution of property to its
stockholders which would be taxable to the stockholders as a dividend for
federal income tax purposes (e.g., distributions of evidences of indebtedness
or assets of the Company, but generally not stock dividends on Common Stock or
rights to subscribe for Common Stock) and, pursuant to the anti-dilution
provisions of the Indenture, the number of shares into which Convertible Debt
Securities are convertible is increased, such increase may be deemed for
federal income tax purposes to be the payment of a taxable dividend to Holders
of Convertible Debt Securities.
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In case of any consolidation or merger of the Company with or into another
Person or any merger of another Person into the Company (other than a merger
which does not result in any reclassification, conversion, exchange or
cancellation of the Common Stock), or in case of any sale or transfer of all
or substantially all of the assets of the Company, each Convertible Debt
Security then outstanding will, without the consent of the Holder of any
Convertible Debt Security or Coupon, become convertible only into the kind and
amount of securities, cash and other property receivable upon such
consolidation, merger, sale or transfer by a holder of the number of shares of
Common Stock into which such Convertible Debt Security was convertible
immediately prior thereto (assuming such holder of Common Stock failed to
exercise any rights of election and that such Convertible Debt Security was
then convertible). (Section 1211)
REGISTRATION, TRANSFER, PAYMENT AND PAYING AGENTS
The Indentures provide that the Company may issue Debt Securities in
registered form only, in bearer form only, or in both registered and bearer
form.
Unless otherwise indicated in the applicable Prospectus Supplement,
Registered Securities will be issued in denominations of $1,000 or any
integral multiple thereof, without interest Coupons, and definitive Bearer
Securities will be issued in denominations of $1,000 and $10,000, with
interest Coupons attached. (Section 302)
Unless otherwise indicated in the applicable Prospectus Supplement, the
principal, premium, if any, and interest on the Registered Securities will be
payable, Registered Securities may be surrendered for registration of transfer
or exchange and Registered Securities may be surrendered for conversion at an
office or agency to be maintained by the Company in the Borough of Manhattan,
The City of New York, provided that payments of interest with respect to any
Registered Security may be made at the option of the Company by check mailed
to the address of the person entitled thereto or by transfer to an account
maintained by the payee with a bank located in the United States. No service
charge shall be made for any registration of transfer or exchange of Debt
Securities, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge and any other expenses that may be
imposed in connection therewith, except in certain circumstances. (Sections
305, 307 and 1002)
Unless otherwise indicated in the applicable Prospectus Supplement, payment
of principal of, premium, if any, and interest on Bearer Securities will be
made, and Bearer Securities may be presented for conversion, subject to any
applicable laws and regulations, at such office or agency outside the United
States as is specified in the applicable Prospectus Supplement and as the
Company may designate from time to time. Unless otherwise indicated in the
applicable Prospectus Supplement, payment of interest due on Bearer Securities
on any Interest Payment Date will be made only against surrender of the Coupon
relating to such Interest Payment Date. Unless otherwise indicated in the
applicable Prospectus Supplement, no payment of principal, premium or interest
or surrender for conversion with respect to any Bearer Security will be made
at any office or agency 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 with respect to
Bearer Securities may be made and any Bearer Securities may be surrendered for
conversion, if applicable, at the Corporate Trust Office of the applicable
Trustee or at any office or agency designated by the Company in the Borough of
Manhattan, The City of New York, if (but only if) payment of the full amount
of such principal, premium or interest or the surrender of Bearer Securities
for conversion at all offices outside of the United States maintained for such
purpose by the Company is illegal or effectively precluded by exchange
controls or similar restrictions. (Sections 307 and 1002)
Unless otherwise indicated in the applicable Prospectus Supplement, Bearer
Securities (provided that all unmatured related Coupons and matured related
Coupons in default are attached) will be exchangeable for an equal aggregate
principal amount of Registered Securities of the same series in denominations
of $1,000 and integral multiples thereof without Coupons, and Registered
Securities will be exchangeable for an equal aggregate principal amount of
Registered Securities of different denominations, in each case without service
charge (other than the cost of delivery) but upon payment of any taxes and
other governmental charges, except in certain circumstances. Bearer Securities
may be exchanged for Registered Securities of the same series by
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surrender of such Bearer Securities to be exchanged at any applicable Office
or Agency for such series, with all unmatured Coupons and all matured Coupons
in default thereto appertaining. If and so long as Registered Securities of a
series are represented solely by a global Debt Security (see "Global
Securities" below), a Bearer Security may be exchanged for a beneficial
interest in such global Debt Security only by and through a DTC Participant
(as defined in "Global Securities" below). In case a Bearer Security of any
series is surrendered at any such Office or Agency for such series in exchange
for a Registered Security of such 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 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 of
Defaulted Interest, as the case may be, and interest or Defaulted Interest, as
the case may be, shall not be payable on such Interest Payment Date or
proposed date for payment or Defaulted Interest, as the case may be, in
respect of the Registered Security issued in exchange for such Bearer
Security, but shall be payable only to the Holder of such Coupon when due in
accordance with the provisions of the Indentures. Unless otherwise indicated
in the applicable Prospectus Supplement, Registered Securities will not be
exchangeable for Bearer Securities. Registered Securities shall be registered
as provided in the Indenture. (Section 305)
Unless otherwise indicated in the applicable Prospectus Supplement, the
Company shall not be required (i) to issue, register the transfer of or
exchange any Debt Securities during a period beginning at the opening of
business 15 days before the day of the selection for redemption of such Debt
Securities and ending at the close of business on the day of such selection,
or (ii) to register the transfer of or exchange any Registered Security so
selected for redemption in whole or in part, except, in the case of any Debt
Security to be redeemed in part, the portion thereof not to be redeemed, or
(iii) to exchange any Bearer Security so selected for redemption except, to
the extent provided with respect to such Bearer Security, that such Bearer
Security may be exchanged for a Registered Security of like tenor and the same
series, provided that such Registered Security shall be immediately
surrendered for redemption with written instruction for payment consistent
with the provisions of Indenture or (iv) to issue, register the transfer of or
exchange any Debt Security which, in accordance with its terms, has been
surrendered for repayment at the option of the holder of such Debt Security,
except the portion, if any, of such Security not to be so repaid. (Section
305)
GLOBAL SECURITIES
The Debt Securities may be issued in whole or in part in the form of one or
more global securities, each of which will be deposited with, or on behalf of,
a depository (a "Depository"). Global Debt Securities may be issued in either
registered or bearer form and in either temporary or permanent form. The
Company anticipates that Bearer Securities will be represented initially by a
temporary global Debt Security in bearer form, without interest Coupons or
conversion rights, which will be deposited on the applicable closing date on
behalf of subscribers for the Bearer Securities represented thereby with a
common depository in London for their respective accounts at Morgan Guaranty
Trust Company of New York, Brussels Office, as operator of the Euroclear
Clearance System ("Euroclear"), or CEDEL Bank, SA ("CEDEL"). Upon deposit of
the temporary global Debt Security, Euroclear or CEDEL, as the case may be,
will credit each subscriber with a principal amount of Bearer Securities equal
to the principal amount thereof for which it has subscribed and paid. The
temporary global Debt Security will be exchangeable for definitive Bearer
Securities in denominations of $1,000 and $10,000 or other authorized
denominations, each with related interest Coupons attached, or Registered
Securities in denominations of $1,000 or an integral multiple thereof, if
permitted by the rules and procedures then in effect of CEDEL, Euroclear and
The Depository Trust Company ("DTC"), commencing on the exchange date
specified in the applicable Prospectus Supplement (the "Exchange Date"), if
permitted. Exchange for definitive Bearer Securities will be made only upon
certification that the beneficial owners of such Bearer Securities are not
United States persons (as defined below) or other persons who have purchased
such Bearer Securities for resale to United States persons. No Bearer Debt
Security so delivered in exchange will be mailed or otherwise delivered to any
location in the United States. The temporary global Debt Security will be
exchangeable for Registered Securities in denominations of $1,000 or an
integral multiple thereof at any time
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without certification of non-U.S. status; provided that such exchange is
permitted by the rules and procedures then in effect of CEDEL and Euroclear,
and provided, further, that if and so long as Registered Securities of a
series are represented solely by a global Debt Security, such exchange may be
effected only by and through a DTC Participant (as defined below). A
beneficial owner must exchange its share of the global Debt Security in bearer
form for definitive Debt Securities, in either registered or bearer form,
before interest payments can be collected or conversion rights exercised.
(Section 304) Any additional or differing terms of the depository arrangements
will be described in the Prospectus Supplement relating to a particular series
of Debt Securities issued in the form of temporary global Debt Securities.
In addition, the Company anticipates that any global Debt Security in
registered form will be deposited with, or on behalf of DTC, and that such
global Debt Security will be permanent and will be registered in the name of
Cede & Co., DTC's nominee. The Company further anticipates that the following
provisions will apply to the Depository arrangements with respect to any such
global Debt Security in registered form. Any additional or differing terms of
the Depository arrangements will be described in the Prospectus Supplement
relating to a particular series of Debt Securities issued in the form of
global Debt Securities.
So long as DTC or its nominee is the registered owner of a global Debt
Security, DTC or its nominee, as the case may be, will be considered the sole
Holder of the Debt Securities represented by such global Debt Security for all
purposes under the applicable Indenture. Except as described below, owners of
beneficial interests in a global Debt Security will not be entitled to have
Debt Securities represented by such global Debt Security registered in their
names, will not receive or be entitled to receive physical delivery of Debt
Securities in definitive form and will not be considered the owners or Holders
thereof under the applicable Indenture. The laws of some states require that
certain purchasers of securities take physical delivery of such securities in
definitive form; accordingly, such laws may limit the transferability of
beneficial interests in a global Debt Security.
Unless otherwise specified in the applicable Prospectus Supplement, each
global Debt Security in registered form will be exchangeable for definitive
Registered Securities of the same series only if (i) DTC notifies the Company
that it is unwilling or unable to continue as Depository or DTC ceases to be a
clearing agency registered under the Exchange Act (if so required by
applicable law or regulation) and, in either case, a successor Depository is
not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such ineligibility, (ii) the Company in its sole
discretion determines that the global Debt Securities shall be exchangeable
for definitive Registered Securities and delivers a Company Order to the
Trustee to such effect or (iii) there shall have occurred and be continuing an
Event of Default under the Indenture with respect to the Debt Securities of
any series. Upon any such exchange, owners of a beneficial interest in the
global Debt Security or Securities in registered form will be entitled to
physical delivery of individual Debt Securities in definitive form of like
tenor, terms and rank, equal in principal amount to such beneficial interest,
and to have such Debt Securities in definitive form registered in the names of
the beneficial owners, which names shall be provided by DTC's relevant
participants (as identified by DTC) to the Trustee. Unless otherwise described
in the applicable Prospectus Supplement, Debt Securities so issued in
definitive form will be issued in denominations of $1,000 or any integral
multiple thereof, and will be issued in registered form only, without Coupons.
(Section 305)
The following is based on information furnished to the Company:
DTC will act as securities Depository for the global Debt Securities in
registered form. These Debt Securities will be issued as fully Registered
Securities registered in the name of Cede & Co. (DTC's partnership nominee).
One fully registered Debt Security certificate will be issued and deposited
with DTC with respect to each series of Debt Securities, each in the aggregate
principal amount of such series (except that if the aggregate principal amount
of a series of Debt Securities exceeds $200 million (or such other amount as
shall be permitted by DTC from time to time) one certificate will be issued
with respect to each $200 million of principal amount and an additional
certificate will be issued with respect to any remaining principal amount of
such series).
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DTC is a limited-purpose trust company organized under the New York Banking
Law, a "banking organization" within the meaning of the New York Banking Law,
a member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Exchange Act. DTC
holds securities that its participants ("Participants") deposit with DTC. DTC
also facilitates the settlement among Participants of securities transactions,
such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in Participants' accounts, thereby eliminating
the need for physical movement of securities certificates. Direct Participants
include securities brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations ("Direct Participants"). DTC is
owned by a number of its Direct Participants and by the New York Stock
Exchange, Inc., the American Stock Exchange, Inc. and the National Association
of Securities Dealers, Inc. Access to the DTC system is also available to
others, such as securities brokers and dealers, banks and trust companies that
clear through or maintain a custodial relationship with a Direct Participant,
either directly or indirectly ("Indirect Participants"). The rules applicable
to DTC and its Participants are on file with the Commission.
Purchases of Debt Securities under the DTC system must be made by or through
Direct Participants, which will receive a credit for the Debt Securities on
DTC's records. The ownership interest of each actual purchaser of each Debt
Security ("Beneficial Owner") is in turn recorded on the Direct and Indirect
Participants' records. A Beneficial Owner will not receive written
confirmation from DTC of its purchase, but is expected to receive a written
confirmation providing details of the transaction, as well as periodic
statements of its holdings, from the Direct or Indirect Participant through
which such Beneficial Owner entered into the transaction. Transfers of
ownership interests in Debt Securities are accomplished by entries made on the
books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their
ownership interests in Debt Securities, except in the event that use of the
book-entry system for the Debt Securities is discontinued.
To facilitate subsequent transfers, the Debt Securities deposited by
Participants with DTC are registered in the name of DTC's partnership nominee,
Cede & Co. The deposit of the Debt Securities with DTC and their registration
in the name of Cede & Co. will effect no change in beneficial ownership. DTC
has no knowledge of the actual Beneficial Owners of the Debt Securities; DTC
records reflect only the identity of the Direct Participants to whose accounts
such Debt Securities are credited, which may or may not be the Beneficial
Owners. The Participants remain responsible for keeping account of their
holdings on behalf of their customers.
Delivery of notices and other communications by DTC to Direct Participants,
by Direct Participants to Indirect Participants, and by Direct Participants
and Indirect Participants to Beneficial Owners are governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in
effect from time to time.
Neither DTC nor Cede & Co. will consent or vote with respect to the Debt
Securities. Under its usual procedures, DTC mails a proxy (an "Omnibus Proxy")
to the issuer as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Co.'s consenting or voting rights to those Direct Participants
to whose accounts the Debt Securities are credited on the record date
(identified on a list attached to the Omnibus Proxy).
Principal payments, premium payments, if any, and interest payments, if any,
on the registered Debt Securities in global form will be made to Cede & Co.
DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt
of funds and corresponding detail information from the issuer, on the payment
date in accordance with their respective holdings as shown on DTC's records.
Payments by Direct and Indirect Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in
"street name", and are the responsibility of such Direct and Indirect
Participants and not of DTC, the Trustee, the Company or Thermo Electron,
subject to any statutory or regulatory requirements as may be in effect from
time to time. Payment of principal (premium, if any) and interest, if any, to
Cede & Co. is the responsibility of the Company or the Trustee, disbursement
of such payments to Direct Participants is the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners is the responsibility
of Direct and Indirect Participants.
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If applicable, redemption notices shall be sent to DTC. If less than all of
the Debt Securities of a series represented by global Debt Securities in
registered form are being redeemed, DTC's practice is to determine by lot the
amount of the interest of each Direct Participant in such issue to be
redeemed.
To the extent that any Debt Securities provide for repayment or repurchase
at the option of the Holders thereof, a Beneficial Owner shall give notice of
any option to elect to have its interest in the global Debt Security repaid by
the Company, through its Participant, to the Trustee, and shall effect
delivery of such interest in a global Debt Security by causing the Direct
Participant to transfer the Participant's interest in the global Debt Security
or Securities representing such interest, on DTC's records, to such Trustee.
The requirement for physical delivery of Debt Securities in connection with a
demand for repayment will be deemed satisfied when the ownership rights in the
global Debt Security or Securities representing such Debt Securities are
transferred by Direct Participants on DTC's records and followed by a book-
entry credit of the tendered Debt Securities to the Trustee's account.
DTC may discontinue providing its services as Depository with respect to the
Debt Securities at any time by giving reasonable notice to the Company or the
Trustee. Under such circumstances, in the event that a successor Depository is
not appointed, Debt Security certificates are required to be printed and
delivered.
The Company may decide to discontinue use of the system of book-entry
transfers through DTC (or a successor Depository). In that event, Debt
Security certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system
has been obtained from sources that the Company believes to be reliable, but
the Company takes no responsibility for the accuracy thereof.
None of the Company, the Trustee or any applicable paying agent will have
any responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial interests in a global Debt Security, or
for maintaining, supervising or reviewing any records relating to such
beneficial interest.
LIMITATIONS ON ISSUANCE OF BEARER SECURITIES
In compliance with United States tax laws and regulations, Bearer Securities
may not be offered or sold prior to the Exchange Date specified in the
applicable Prospectus Supplement, or at any time if part of a distributor's
unsold allotment, to a person who is within the United States or to a United
States person other than (i) certain financial institutions located outside
the United States that agree in writing to comply with the requirements of
Section 165(j)(3)(A), (B), or (C) of the United States Internal Revenue Code
of 1986, as amended (the "Code") and the regulations thereunder, (ii) the
United States offices of exempt distributors, or (iii) United States offices
of international organizations or foreign central banks. United States tax
laws and regulations also require that Bearer Securities not be mailed or
otherwise delivered to any location in the United States. Any underwriters,
agents and dealers participating in the offering of Debt Securities must
covenant that they will not offer or sell during the applicable restricted
period (as defined in the Code and the regulations thereunder) any Bearer
Securities within the United States or to United States persons (other than
the persons described above) or deliver in connection with the sale of Bearer
Securities during the restricted period any Bearer Securities within the
United States, and that they have in effect procedures reasonably designed to
ensure that their employees and agents who are directly engaged in selling the
Bearer Securities are aware of the restrictions described above. No definitive
Bearer Security will be delivered in connection with its original issuance nor
will interest be paid on any Bearer Security until receipt of written
certification of non-U.S. status described above under "--Global Securities."
As used herein, "United States person" means any citizen or resident of the
United States, any corporation, partnership or other entity created or
organized in or under the laws of the United States, any estate, the income of
which is subject to United States federal income taxation regardless of its
source, and any trust if a court within the United States is able to exercise
primary supervision of the administration thereof and one or more fiduciaries
have the authority to control all substantial decisions thereof, or any other
person included within the
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definition of United States person under the Code and the regulations
thereunder; and "United States" means the United States of America (including
the states thereof and the District of Columbia), its territories, its
possessions and other areas subject to its jurisdiction. Purchasers of Bearer
Securities will be subject to certification procedures and may be affected by
certain limitations under United States tax laws. (Section 101)
Unless otherwise indicated in the applicable Prospectus Supplement,
definitive Bearer Securities and interest Coupons will bear the following
legend: "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 United States Internal Revenue
Code." The sections referred to in such legend provide that any United States
person holding a Bearer Security or interest Coupon, with certain limited
exceptions, will not be entitled to deduct any loss incurred with respect to
such Bearer Security or interest Coupon and will not be entitled to any
capital gain treatment with respect to any sale, redemption or other
disposition of such Bearer Security or interest Coupon but will be taxed
thereon at ordinary income rates instead.
REDEMPTION
Redemption at the Option of the Company. The applicable Prospectus
Supplement will specify whether or not the Debt Securities will be redeemable
at the option of the Company and the terms upon which such Debt Securities may
be so redeemed.
Notice of intention to redeem redeemable Debt Securities will be given in
accordance with "Notices" below. In the case of redemption of all Debt
Securities of a series, notice will be given by the Trustee not more than 60
nor less than 20 days prior to the Redemption Date. Notices of redemption will
specify, among other things, (i) the Redemption Date; (ii) the Redemption
Price, and accrued interest, if any; (iii) in the case of a partial
redemption, the identification and aggregate principal amount of Debt
Securities to be redeemed and the aggregate principal amount of the Debt
Securities which will be outstanding after such partial redemption; (iv) that,
on the Redemption Date, the Redemption Price shall become due and payable upon
each such Debt Security or portion thereof to be redeemed, and, if applicable,
that interest thereon shall cease to accrue on and after said date; (v) if
applicable, the Conversion Price, the date on which the right to convert the
Debt Securities to be redeemed will terminate and the places where such Debt
Securities, together with all unmatured Coupons and any matured Coupons in
default appertaining thereto, may be surrendered for conversion; (vi) the
place or places where such Securities, together (in the case of Bearer
Securities) with all Coupons appertaining thereto, if any, maturing after the
Redemption Date, are to be surrendered for payment of the Redemption Price and
any accrued interest and Additional Amounts pertaining thereto; (vii) that the
redemption is for a sinking fund, if such is the case; (viii) that, unless
otherwise specified in such notice, Bearer Securities of any series, if any,
surrendered for redemption must be accompanied by all Coupons maturing
subsequent to the Redemption Date or the amount of any such missing Coupon or
Coupons will be deducted from the Redemption Price, unless security or
indemnity satisfactory to the Company, the Trustee and any Paying Agent is
furnished; and (ix) if Bearer Securities of any series are to be redeemed and
any Registered Securities of such series are not to be redeemed, and if such
Bearer Securities may be exchanged for Registered Securities not subject to
redemption on the Redemption Date, the last date, as determined by the
Company, on which such exchanges may be made. All redemption notices are
irrevocable, except in the case of certain redemptions for taxation reasons
specified in the next succeeding subsection. (Section 1104).
Redemption for Taxation Reasons
If the Company has or will become obligated to pay Additional Amounts (as
described below under "Payment of Additional Amounts to Non United States
Persons") as a result of any change in, or amendment to, the laws (including
any regulations or rulings promulgated thereunder) of the United States or any
political subdivision or taxing authority thereof or therein affecting
taxation, or any change in, or amendment to, the application or official
interpretation of such laws, regulations or rulings (any such change or
amendment being herein referred to as a "Tax Law Change"), and such
obligations cannot be avoided by the Company taking reasonable measures
available to it, the Debt Securities held by Persons who are not United States
persons and
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to whom such Additional Amounts have or will become payable (the "Tax Affected
Debt Securities") may be redeemed, at the option of the Company, in whole but
not in part. Such redemption of Tax Affected Debt Securities shall be upon not
less than 20 nor more than 60 days' prior notice as provided under "Notices"
below, at a redemption price equal to 100% of the principal amount of the Tax
Affected Debt Securities, plus accrued interest to the redemption date and any
Additional Amounts then payable; provided, however, that (1) no such notice of
redemption shall be given earlier than 90 days prior to the earliest date on
which the Company would be obligated to pay any such Additional Amounts were a
payment in respect of the Tax Affected Debt Securities then due and (2) at the
time such notice of redemption is given, the obligation to pay such Additional
Amounts remains in effect. Prior to the publication of any notice of
redemption pursuant to this paragraph, the Company shall deliver to the
Trustee (a) a certificate stating that the Company is entitled to effect such
redemption and setting forth a statement of facts showing that the conditions
precedent to the right of the Company so to redeem have occurred and (b) an
opinion of counsel selected by the Company to the effect that the Company has
or will become obligated to pay such Additional Amounts as a result of a Tax
Law Change. The Company's right to redeem the Tax Affected Debt Securities
shall continue as long as the Company is obligated to pay such Additional
Amounts, notwithstanding that the Company shall have theretofore made payments
of Additional Amounts. (Section 1102)
In addition, if the Company determines, based upon a written opinion of
counsel selected by the Company, that, as a result of a Tax Law Change, any
payment made outside the United States by the Company or any of its Paying
Agents of the full amount of principal, premium, if any, or interest due with
respect to any Bearer Debt Security or Coupon appertaining thereto would be
subject to any certification, identification or other information reporting
requirement of any kind, the effect of which is the disclosure to the Company,
any Paying Agent or any governmental authority of the nationality, residence
or identity of a beneficial owner of such Bearer Debt Security or Coupon who
is not a United States person as defined below under "Payment of Additional
Amounts to Non United States Persons" (other than such a requirement (a) which
would not be applicable to a payment made by the Company or any one of its
Paying Agents (i) directly to the beneficial owner or (ii) to any custodian,
nominee or other agent of the beneficial owner, (b) which can be satisfied by
the custodian, nominee or other agent certifying that the beneficial owner is
not a United States person, provided that in each case referred to in clauses
(a) (ii) and (b) payment by such custodian, nominee or other agent to such
beneficial owner is not otherwise subject to any such requirement, or (c)
which would not be applicable but for the fact that a Bearer Debt Security
constitutes a "United States real property interest," as defined in Section
897(c)(1) of the Code, with respect to the beneficial owner of such Bearer
Debt Security, the Company at its election will either (x) redeem the Bearer
Securities, as a whole but not in part, at a redemption price equal to 100% of
the principal amount thereof, plus accrued interest to the redemption date, or
(y) if and so long as the conditions of the third paragraph under "Payment of
Additional Amounts to Non-United States Persons" are satisfied, pay the
Additional Amounts specified in such paragraph. The Company will make such
determination and election and notify the Trustee thereof in writing as soon
as practicable, and the Trustee will promptly give notice of such
determination (the "Determination Notice"), in each case stating the effective
date of such certification, identification or information reporting
requirement, whether the Company will redeem the Bearer Securities or will pay
the Additional Amounts specified in the third paragraph under "Payment of
Additional Amounts" and (if applicable) the last date by which the redemption
of the Bearer Securities shall take place. If the Company elects to redeem the
Bearer Securities, such redemption shall take place on a date not later than
one year after publication of the Determination Notice, as the Company elects
by notice in writing to the Trustee at least 75 days before that date, unless
shorter notice is acceptable to the Trustee. Notwithstanding the foregoing,
the Company shall not be required to so redeem the Bearer Securities if the
Company, based upon a written opinion of counsel selected by the Company,
subsequently determines, not less than 30 days prior to the Redemption Date,
that subsequent payments would not be subject to any such requirement, in
which case the Company will notify the Trustee in writing of its determination
not to so redeem the Bearer Securities, and the Trustee will promptly give
notice to the Holders of the Bearer Securities of that determination and any
earlier redemption notice will thereupon be revoked and of no further effect.
If the Company elects as provided in clause (y) above to pay Additional
Amounts, the Company may, as long as the Company is obligated to pay such
Additional Amounts, redeem all the Bearer Securities, at any time, as a whole
but not in part, at a redemption price equal to
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100% of the principal amount thereof plus accrued interest to the redemption
date and any Additional Amounts then payable. (Section 1102)
Repayment at Option of Holder
Unless otherwise specified in an applicable Prospectus Supplement, each
holder of a Convertible Debt Security shall have the right to cause the
Company to repay such Convertible Debt Security (or portions thereof in
integral multiples of $1,000) for a cash amount equal to 100% of the principal
amount thereof plus accrued interest to the redemption date and any Additional
Amounts then payable, if a Repayment Event (as defined below) occurs or has
occurred. The "Repayment Date" for this purpose shall be the ninetieth (90th)
day after the later of the Exchange Date or the date a Repayment Event has
occurred. (Section 1502) Notice with respect to the occurrence of a Repayment
Event will be given to all Holders of Convertible Debt Securities with
repayment rights in accordance with "Notices" below and not later than 30 days
after the later of the Exchange Date or the date of such Repayment Event.
Notices of repayment will specify, among other things, (i) the Repayment Date;
(ii) the date by which the repurchase right must be exercised; (iii) the price
at which the Convertible Debt Securities are to be repaid, including accrued
interest and Additional Amounts, if any; (iv) if applicable, the Conversion
Price then in effect, the date on which the right to convert the Securities to
be repaid will terminate and the place or places where such Securities,
together (in the case of Bearer Securities) with all unmatured Coupons and any
matured Coupons in default appertaining thereto, may be surrendered for
conversion; and (v) a description of the repayment right procedures that a
Holder must follow and the place or places where such Securities, together (in
the case of Bearer Securities) with all Coupons appertaining thereto, if any,
maturing after the Repayment Date, are to be surrendered for payment (or the
amount of any such missing Coupon or Coupons will be deducted from any amount
due to such Holder) and any accrued interest and Additional Amounts, if any,
pertaining thereto. (Section 1503)
To be repaid, a Convertible Debt Security must be received by the Trustee
with a duly executed written notice, substantially in the form provided on the
reverse side of such Convertible Debt Security, at the place of payment not
earlier than 60 days nor later than 30 days prior to the Repayment Date. Each
Bearer Convertible Debt Security delivered for repayment must be delivered
with all unmatured Coupons. Once notice is given by the Holder to the Paying
Agent, it is irrevocable. However, holders of Convertible Debt Securities will
retain the right to require such Convertible Debt Securities to be converted
into Common Stock prior to the Repayment Date, so long as notice to that
effect, including the Holder's nontransferable receipt for the Convertible
Debt Securities from a Paying Agent, is delivered at least two business days
on or prior to the Repayment Date to a Paying Agent. (Sections 1201, 1504 and
1505)
A "Repayment Event" shall have occurred if the Common Stock (or other equity
securities into which the Debt Securities are then convertible) is neither
listed for trading on a United States national securities exchange, the Nasdaq
National Market nor approved for trading on an established automated over-the-
counter trading market in the United States. (Section 1502)
Certain of the Company's existing and future agreements relating to its
indebtedness could prohibit the repayment by the Company of the Convertible
Debt Securities pursuant to the exercise by a Convertible Debt Security holder
of the foregoing option, depending on the financial circumstances of the
Company at the time any such repayment may occur, because such repayment could
cause a breach of certain financial ratio and/or other covenants contained in
such agreements. Such a breach may constitute an event of default under such
indebtedness and thereby restrict the Company's ability to repay the
Convertible Debt Securities. See "Subordination of Debt Securities" above.
COVENANTS OF THE COMPANY
The Indenture does not contain any financial covenants or similar
restrictions respecting the Company, and in the absence of such provisions,
holders of the Debt Securities will have no protection (other than their
rights upon an event of default, as described under "Events of Default" below)
from adverse changes in the Company's financial condition. The Indenture also
does not contain provisions which may afford the holders of any of the Debt
Securities protection in the event of a highly leveraged transaction or
similar transaction involving the Company. Any such provisions, if applicable
to any Debt Securities, will be described in the Prospectus Supplement or
Prospectus Supplements relating thereto.
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PAYMENT OF ADDITIONAL AMOUNTS TO NON UNITED STATES PERSONS
Unless otherwise specified in an applicable Prospectus Supplement, the
Company will pay to the holder of any Debt Security or any related Coupon who
is not a United States person (as defined below) such additional amounts
("Additional Amounts") as may be necessary in order that every net payment of
the principal of, premium, if any, and interest on such Debt Security, after
withholding for or on account of any present or future tax, assessment or
governmental charge imposed upon or as a result of such payment by the United
States or any political subdivision or taxing authority thereof or therein,
will not be less that the amount provided for in such Debt Security or in such
Coupon to be then due and payable; provided, however, that the foregoing
obligations to pay Additional Amounts shall not apply to any one or more of
the following:
(a) any tax, assessment or other governmental charge which would not have
been so imposed but for (i) the existence of any present or former
connection between such Holder (or between a fiduciary, settlor,
beneficiary, member, stockholder of or possessor of a power over such
Holder, if such Holder is an estate, a trust, a partnership or a
corporation) and the United States or any political subdivision or taxing
authority thereof or therein, including, without limitation, such Holder
(or such fiduciary, settlor, beneficiary, member, stockholder or possessor)
being or having been a citizen or resident of the United States or treated
as a resident thereof, or being or having been engaged in trade or business
or present therein, or having had a permanent establishment therein, (ii)
such Holder's present or former status as a personal holding company, a
foreign personal holding company with respect to the United States, a
controlled foreign corporation, a passive foreign investment company, or a
foreign private foundation or foreign tax exempt entity for United States
tax purposes, or a corporation which accumulates earnings to avoid United
States Federal income tax, or (iii) such Holder's status as a bank
extending credit pursuant to a loan agreement entered into in the ordinary
course of business;
(b) any tax, assessment or other governmental charge which would not have
been so imposed but for the presentation by the Holder of such Debt
Security or any related Coupon for payment on a date more than 15 days
after the date on which such payment became due and payable or the date on
which payment thereof is duly provided for, whichever occurs later;
(c) any estate, inheritance, gift, sales, transfer, personal property or
similar tax, assessment or governmental charge;
(d) any tax, assessment or other governmental charge which would not have
been imposed but for the failure to comply with any certification,
identification or other reporting requirements concerning the nationality,
residence, identity or connection with the United States of the Holder or
beneficial owner of such Debt Security or any related Coupon, if compliance
is required by statute or by regulation or ruling of the United States
Treasury Department as a precondition to exemption from such tax,
assessment or other governmental charge;
(e) any tax, assessment or other governmental charge which is payable
otherwise than by deduction or withholding from payments of principal of,
premium, if any, or interest on such Debt Security;
(f) any tax, assessment or other governmental charge imposed as a result
of a Person's past or present actual or constructive ownership, including
by virtue of the right to convert Debt Securities, of 10% or more of the
total combined voting power of all classes of stock of the Company entitled
to vote;
(g) any tax, assessment or other governmental charge required to be
withheld by any Paying Agent from any payment of the principal of, premium,
if any, or interest on such Debt Security, if such payment can be made
without such withholding by any other Paying Agent in Western Europe;
(h) any tax, assessment, or other governmental charge imposed on the
disposition of any Debt Security by a person holding at any time, actually
or constructively, Debt Securities of the applicable series having a fair
market value in excess of the greater of the fair market value of five
percent of (i) the Company's Common Stock or (ii) the Debt Securities of
such series;
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(i) any tax, assessment or other governmental charge imposed on a Holder
that is a partnership or a fiduciary, but only to the extent that any
beneficial owner or member of the partnership or beneficiary or settlor
with respect to the fiduciary would not have been entitled to the payment
of Additional Amounts had the beneficial owner, member, beneficiary or
settlor directly received its beneficial or distributive stock of payments
on such Debt Security;
(j) any tax, assessment or other governmental charge which would not have
been imposed but for the fact that such Debt Security constitutes a "United
States real property interest," as defined in Section 897(c)(1) of the
Internal Revenue Code, and the regulations thereunder, with respect to the
beneficial owner of such Debt Security; or
(k) any combination of items (a), (b), (c), (d), (e), (f), (g), (h), (i)
and (j). (Section 1004) As used herein, "United States" means the United
States of America (including the states and the District of Columbia), its
territories, its possessions and other areas subject to its jurisdiction
and a "United States person" is a person that is, for United States federal
income tax purposes, (a) a citizen or a resident of the United States, (b)
a corporation, partnership or other entity created or organized in or under
the laws of the United States or of any political subdivision thereof, (c)
an estate the income of which is subject to United States federal income
taxation regardless of source, (d) any trust if a court within the United
States is able to exercise primary supervision of the administration
thereof and one or more United States fiduciaries have the authority to
control all substantial decisions thereof, or (e) any other person included
within the definition of United States person under the Code and the
regulations thereunder. (Sections 101 and 1004)
Notwithstanding the foregoing, if and so long as a certification,
identification or other information reporting requirement referred to in the
second paragraph under "Redemption for Taxation Reasons" above would be fully
satisfied by payment of a backup withholding tax or similar charge, the
Company may elect, by so stating in the Determination Notice, to have the
provisions of this paragraph apply in lieu of redeeming the Bearer Debt
Security pursuant to such second paragraph. In such event, the Company will
pay as Additional Amounts such amounts as may be necessary so that every net
payment made, following the effective date of such requirements, outside the
United States by the Company or any Paying Agent of principal of, and premium,
if any, due in respect of any Bearer Debt Security, or interest represented by
any Coupon, the beneficial owner of which is not a United States person (but
without any requirement that the nationality, residence or identity of such
beneficial owner be disclosed to the Company, any Paying Agent or any
governmental authority), after deduction or withholding for or on account of
such backup withholding tax or similar charge, other than a backup withholding
tax or similar charge which is (a) the result of a certification,
identification or information reporting requirement described in the first
parenthetical clause of such second paragraph, (b) imposed as a result of the
fact that the Company or any Paying Agent has actual knowledge that the
beneficial owner of such Bearer Debt Security or Coupon is within the category
of persons described in clause (a) of the first paragraph under this heading
or (c) imposed as a result of presentation of such Bearer Debt Security or
Coupon for payment more than 15 days after the date on which such payment
becomes due and payable or on which payment thereof is duly provided for,
whichever occurs later, will not be less than the amount provided for in such
Bearer Debt Security or Coupon to be then due and payable. (Section 1004)
EVENTS OF DEFAULT
The following are Events of Default under the Indentures with respect to
Debt Securities of any series: (a) failure to pay any interest on, or any
Additional Amounts payable in respect of any interest on, any Debt Security of
that series when due, continued for 10 days, and in the case of the
Subordinated Securities, whether or not such payment is prohibited by the
subordination provisions of the Subordinated Indenture; (b) failure to pay
principal or any premium on any Debt Security of that series when due, upon
maturity, redemption or otherwise, and in the case of the Subordinated
Securities, whether or not such payment is prohibited by the subordination
provisions of the Subordinated Indenture; (c) default in the deposit of any
sinking fund payment or analogous payment, when due by the terms of the Debt
Securities of that series, and in the case of the Subordinated Securities,
whether or not such payment is prohibited by the subordination provisions of
the Subordinated Indenture; (d) failure to perform any other covenant or
breach of a warranty of the Company in the applicable
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Indenture (other than a covenant expressly included in such Indenture solely
for the benefit of a series of Debt Securities other than that series) or any
Debt Security of such series, continued for 60 days after written notice as
provided in the applicable Indenture; (e) any acceleration of the maturity of
any indebtedness of the Company for borrowed money in an aggregate principal
amount exceeding $25,000,000, unless otherwise specified in the applicable
Prospectus Supplement, or a failure to pay such indebtedness at its stated
maturity, if such indebtedness is not discharged or such acceleration is not
rescinded or annulled within 20 days after written notice as provided in the
Indentures; (f) certain events of bankruptcy, insolvency or reorganization of
the Company; and (g) any other Event of Default provided with respect to Debt
Securities of that series. (Section 501) No Event of Default with respect to
any particular series of Debt Securities necessarily constitutes an Event of
Default with respect to any other series of Debt Securities. The Indentures
provide that the Trustee thereunder may withhold notice to the holders of the
Debt Securities of any series of the occurrence of a default with respect to
the Debt Securities of such series (except a default in payment of principal,
premium, if any, interest, Additional Amounts, if any, or sinking fund
payments, if any) if the Trustee considers it in the interest of the Holders
to do so. (Section 602) If an Event of Default with respect to Debt Securities
of any series at the time outstanding shall occur and be continuing, either
the applicable Trustee or the Holders of at least 25% in principal amount of
the Debt Securities of that series may declare the principal amount of all
Debt Securities of that series (or if any Debt Securities of such series are
Original Issue Discount Securities or Indexed Securities, such portion of the
principal amount of such Debt Securities as may be specified by the terms
thereof) to be due and payable immediately; provided that in the case of
certain events of bankruptcy, insolvency or reorganization, such principal
amount (or portion thereof), premium, if any, interest and Additional Amounts,
if any, shall automatically become due and payable. However, at any time after
a declaration of acceleration with respect to Debt Securities of any series
has been made, but before a judgment or decree based on such acceleration has
been obtained, the Holders of a majority in principal amount of the Debt
Securities of that series may, under certain circumstances, rescind and annul
such acceleration. (Section 502) For information as to waiver of default, see
"Modifications, Waivers and Meetings." Reference is made to the Prospectus
Supplement relating to each series of Debt Securities which are Original Issue
Discount Securities or Indexed Securities for the particular provisions
relating to acceleration of the Maturity of a portion of the principal amount
of such Original Issue Discount Securities or Indexed Securities upon the
occurrence of an Event of Default and the continuation thereof.
The Indentures provide that, subject to the duty of the respective Trustees
thereunder during default to act with the required standard of care, such
Trustee will be under no obligation to exercise any of its rights or powers
under the respective Indentures at the request or direction of any of the
Holders of the Debt Securities unless they shall have offered to such Trustee
reasonable indemnity. (Section 601) Subject to such provisions for
indemnification of the Trustees, the Holders of a majority in principal amount
of the Debt Securities of any series affected will have the right to direct
the time, method and place of conducting any proceeding for any remedy
available to the applicable Trustee, or exercising any trust or power
conferred on such Trustee, with respect to the Debt Securities of such series.
(Section 512)
No Holder of a Debt Security of any series will have any right to institute
any proceeding with respect to the applicable Indenture, or for the
appointment of a receiver or a trustee, or for any other remedy thereunder,
unless (i) such Holder has previously given to the applicable Trustee written
notice of a continuing Event of Default with respect to the Debt Securities of
that series, (ii) the Holders of at least 25% in aggregate principal amount of
the Outstanding Debt Securities of that series have made written request, and
such Holder or Holders have offered reasonable indemnity to such Trustee to
institute such proceeding as trustee, and (iii) such Trustee for 60 days after
receipt of such notice has failed to institute such proceeding, and has not
received from the Holders of a majority in aggregate principal amount of the
Outstanding Debt Securities of that series a direction inconsistent with such
request, within 60 days after such notice, request and offer. (Section 507)
However, such limitations do not apply to a suit instituted by a Holder of a
Debt Security for the enforcement of payment of the principal of or any
premium or interest or Additional Amounts on such Debt Security on or after
the applicable due date specified in such Debt Security or the right to
convert such Debt Security. (Section 508)
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The Company will be required to furnish to the Trustees annually a statement
as to whether there is a default in the performance or observance of certain
covenants. (Section 1005)
DISCHARGE, DEFEASANCE AND COVENANT DEFEASANCE
Upon the direction of the Company, the Indenture shall cease to be of
further effect with respect to any series of Debt Securities and any Coupons
appertaining thereto issued thereunder specified by the Company (subject to
the survival of certain provisions thereof, including the obligation to pay
Additional Amounts to the extent described below) when (i) either (A) all
outstanding Debt Securities of such series and, in the case of Bearer
Securities, all Coupons appertaining thereto, have been delivered to the
Trustee for cancellation (subject to certain exceptions) or (B) all Debt
Securities of such series have become due and payable or will become due and
payable at their stated maturity within one year and such securities are not
convertible or exchangeable for other securities or are to be called for
redemption within one year and such securities are not convertible or
exchangeable for other securities, and the Company has irrevocably deposited
with the Trustee, in trust, funds in Dollars in an amount sufficient to pay
the entire indebtedness on such Debt Securities in respect of principal (and
premium, if any) and interest, if any (and, to the extent that (x) the Debt
Securities of such series provide for the payment of Additional Amounts upon
the occurrence of certain events of taxation, assessment or governmental
charge with respect to payments on such Debt Securities and (y) the amount of
any such Additional Amounts is at the time of deposit reasonably determinable
by the Company, any such Additional Amounts) to the date of such deposit (if
such Debt Securities have become due and payable) or to the Maturity thereof,
as the case may be, (ii) the Company has paid all other sums payable under the
Indenture with respect to the Debt Securities of such series, and (iii)
certain other conditions are met. If the Debt Securities of any such series
provide for the payment of Additional Amounts, the Company will remain
obligated, following such deposit, to pay Additional Amounts on such Debt
Securities to the extent that the amount thereof exceeds the amount deposited
in respect of such Additional Amounts as aforesaid. (Section 401)
If so provided in the applicable Prospectus Supplement, the Company may
elect with respect to any series of Debt Securities either (a) to defease and
be discharged from any and all obligations with respect to such Debt
Securities (except for, among other things, the obligation to pay Additional
Amounts, if any, upon the occurrence of certain events of taxation, assessment
or governmental charge with respect to payments on such Debt Securities to the
extent that the amount thereof exceeds the amount deposited in respect of such
Additional Amounts as provided below, and the obligations to register the
transfer or exchange of such Debt Securities, to replace temporary or
mutilated, destroyed, lost or stolen Debt Securities, to maintain an office or
agency in respect of such Debt Securities, to hold moneys for payment in
trust, and, if applicable, to exchange or convert such Debt Securities into
other securities in accordance with their terms) ("defeasance"), or (b) to
omit to comply with its obligations with respect to certain restrictive
covenants in Section 1005 (Statement as to Compliance), Section 102
(Compliance Certificates and Opinions), and, to the extent specified pursuant
to Section 301, any other covenant applicable to such Debt Securities in the
Indenture, and any omission to comply with such obligations shall not
constitute a default or an Event of Default with respect to the Debt
Securities of such series ("covenant defeasance"), in either case upon the
irrevocable deposit with the Trustee (or other qualifying trustee), in trust
for such purpose, of an amount, in U.S. dollars and/or Government Obligations
(as defined in the Indenture) which through the scheduled payment of principal
and interest in accordance with their terms will provide money in an amount
sufficient to pay the principal of and any premium and any interest on (and,
to the extent that (x) the Debt Securities of such series provide for the
payment of Additional Amounts and (y) the amount of any such Additional
Amounts is at the time of deposit reasonably determinable by the Company, any
such Additional Amounts with respect to) such Debt Securities, and any
mandatory sinking fund or analogous payments thereon, on the due dates
therefor, whether upon maturity, redemption or otherwise. (Section 402)
Such defeasance or covenant defeasance shall only be effective if, among
other things, (i) it shall not result in a breach or violation of, or
constitute a default under, the Indenture or any other material agreement to
which the Company is a party or is bound, and (ii) the Company has delivered
to the Trustee an opinion of counsel (as specified in the Indenture) to the
effect that the holders of such Debt Securities and Coupons appertaining
thereto
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will not recognize income, gain or loss for Federal income tax purposes as a
result of such defeasance or covenant defeasance, as the case may be, and will
be subject to federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such defeasance or covenant
defeasance had not occurred. It shall also be a condition to the effectiveness
of such defeasance (but not covenant defeasance) that no Event of Default or
event which with notice or lapse of time or both would become an Event of
Default with respect to Debt Securities and Coupons by appertaining thereto of
such series shall have occurred and been continuing on the date of, or during
the period ending on the 91st day after the date of, such deposit into trust.
(Section 402)
In the event the Company effects covenant defeasance with respect to any
Debt Securities and such Debt Securities are declared due and payable because
of the occurrence of any Event of Default other than an Event of Default with
respect to any other covenant as to which there has been covenant defeasance,
the amount of monies and/or Government Obligations deposited with the Trustee
to effect such covenant defeasance may not be sufficient to pay amounts due on
such Debt Securities and Coupons appertaining thereto at the time of any
acceleration resulting from such Event of Default. However, the Company and
Thermo Electron would remain liable to make payment of such amounts due at the
time of acceleration.
The applicable Prospectus Supplement may further describe the provisions, if
any, permitting or restricting such defeasance or covenant defeasance with
respect to the Debt Securities of a particular series.
MODIFICATION, WAIVERS AND MEETINGS
The Indenture contains provisions permitting the Company and the Trustee
thereunder, with the consent of the holders of a majority in principal amount
of the outstanding Debt Securities of each series and affected by a
modification or amendment, to modify or amend any of the provisions of the
Indenture or of the Debt Securities of such series or the rights of the
holders of the Debt Securities of such series under the Indenture, provided
that no such modification or amendment shall, among other things, (i) change
the Stated Maturity of the principal of, or premium, if any, or any
installment of principal or interest on or Additional Amounts with respect to
any Debt Securities or any sinking fund or analogous payment with respect
thereof or reduce the principal amount thereof or any premium thereon, or the
rate of interest thereon (or modify the calculation of such rate), or change
the obligation of the Company to pay Additional Amounts, or reduce the amount
of principal of any Debt Security that would be due and payable upon an
acceleration of the maturity thereof, or adversely affect any right of
repayment at the option of any Holder, or change the provisions of the
Indentures relating to the Place of Payment for Bearer Debt Securities being
located outside the United States, or the Currency in which the principal of,
any premium or interest on, or any Additional Amounts with respect to any Debt
Security or any sinking or analogous fund payment in respect thereof, is
payable, or impair the Holder's right to institute suit to enforce the payment
of any such Debt Securities, or make any change that adversely affects the
right, if any, to convert or exchange such Debt Securities for other
securities in accordance with their terms or in the case of the Subordinated
Securities, modify the subordination provisions in a manner adverse to the
Holders of the Subordinated Securities or change in any manner adverse to the
Holders of Debt Securities the terms with respect to the payment of the
principal of, premium, if any, and interest on the Debt Securities or any
sinking fund or analogous payments with respect thereof, or (ii) reduce the
aforesaid percentage in principal amount of Debt Securities of any series, the
consent of the Holders of which is required for any such modification or
amendment or the consent of whose holders is required for any waiver (of
compliance with certain provisions of the Indenture or certain defaults
thereunder and their consequences) or reduce the requirements for a quorum or
voting at a meeting of holders of such Debt Securities. (Section 902) The
Indenture also contains provisions permitting the Company and the Trustee,
without the consent of the holders of any Debt Securities issued thereunder,
to modify or amend the Indenture in order to, among other things, (a) add to
the Events of Default or the covenants of the Company for the benefit of the
holders of all or any series of Debt Securities; (b) to add or change any
provisions of the Indenture to facilitate the issuance of Bearer Securities;
(c) to establish the form or terms of Debt Securities of any series and any
related Coupons; (d) to cure any ambiguity or correct or supplement any
provision therein which may be defective or inconsistent with other provisions
therein, or to make any other provisions with respect to matters or questions
arising under the Indenture which shall not
23
<PAGE>
adversely affect the interests of the Holders of any series of Debt Securities
in any material respect; or (e) to amend or supplement any provision contained
in the Indenture, provided that such amendment or supplement does not apply to
any Outstanding Debt Securities issued prior to the date of such amendment or
supplement and entitled to the benefits of such provision. (Section 901)
The holders of a majority in aggregate principal amount of the outstanding
Debt Securities of any series may, on behalf of all holders of Debt Securities
of that series, waive any past default under the Indenture with respect to
Debt Securities of that series and its consequences, except a default in the
payment of the principal of, or premium, if any, or interest on or any
Additional Amounts with respect to, any Debt Securities or any Coupons
appertaining thereto of such series or in respect of a covenant or provision
which cannot be modified or amended without the consent of the holder of each
outstanding Debt Securities of such series affected. (Section 513)
The Indenture contains provisions for convening meetings of the Holders of
Debt Securities of each series. (Section 1601) A meeting may be called at any
time by the Trustee, and also, upon request, by the Company 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 the provisions
of the Indenture. (Section 1602) Except for any consent which must be given by
the Holder of outstanding Debt Security affected thereby, as described above,
any resolution presented at a meeting or adjourned meeting duly reconvened at
which a quorum (as described below) is present may be adopted by the
affirmative vote of the Holders of a majority in principal amount of the
Outstanding Debt Securities of that series; 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 or more than a majority,
in principal amount of the 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 Holders of such specified percentage in
principal amount of the Outstanding Debt Securities of that series. Any
resolution passed or decision taken at any meeting of Holders of Debt
Securities of any series duly held in accordance with the Indenture will be
binding on all Holders of Debt Securities of that series and the related
Coupons. The quorum at any meeting called to adopt a resolution, and at any
reconvened meeting, will be persons holding or representing a majority in
principal amount of the Outstanding Debt Securities of a series, subject to
certain exceptions. (Section 1604)
CONSOLIDATION, MERGER AND SALE OF ASSETS
The Company, without the consent of any Holders of Debt Securities, may
consolidate or merge with or into, or transfer or lease its properties or
assets substantially as an entirety to, any Person, and any other Person may
consolidate or merge with and into, or transfer or lease properties or assets
substantially as an entirety to, the Company provided that (i) the Person (if
other than the Company) formed by any such consolidation or into which the
Company is merged or which acquires or leases the properties or assets of the
Company substantially as an entirety is a corporation, partnership or trust
organized and validly existing under the laws of any United States
jurisdiction or, subject to certain additional requirements, a corporation,
limited liability company, partnership or trust organized under the laws of a
jurisdiction other than the United States, that assumes the Company's
obligations on the Debt Securities and under the Indentures, (ii) 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 (iii) certain other
conditions are met. Upon compliance with these provisions by a successor
corporation, the Company would be relieved from its obligations under the
Securities and under the Indenture. (Article Eight)
NOTICES
Notice to Holders of Registered Securities will be given by mail to the
addresses of such Holders as they may appear in the Security Register. Notice
to Holders of Bearer Securities, if any, will be given by publication in a
leading daily newspaper in the English language of general circulation in New
York City and, if such Debt Securities are then listed on any stock exchange
outside the United States, in a daily newspaper of general circulation in the
city that such stock exchange requires. (Section 106)
24
<PAGE>
TITLE
The Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name a Debt Security is registered as the absolute
owner thereof (whether or not such Debt Security may be overdue) for the
purpose of making payment and for all other purposes. Title to Bearer
Securities passes on delivery. (Section 308)
GOVERNING LAW
The Indentures and the Debt Securities will be governed by, and construed in
accordance with, the laws of the Commonwealth of Massachusetts applicable to
agreements made or instruments entered into and, in each case, performed in
said state, except that the rights, protections, obligations, indemnities and
immunities of the Trustee under the Indentures shall be governed by, and
construed in accordance with, the laws of the State of New York, without
regard to the conflicts of laws principles of either state. (Section 113)
CONCERNING THE TRUSTEE
The Indentures contain certain limitations on the right of the Trustee,
should it become a creditor of the Company, to obtain payment of claims in
certain cases, or to realize for its own account on certain property received
in respect of any such claim as security or otherwise. (Section 611) The
Trustee will be permitted to engage in certain other transactions; however, if
it acquires any conflicting interest and there is a default under the Debt
Securities, it must eliminate such conflict or resign. (Section 613)
The Trustee serves as a depositary of funds of, and performs other services
for, the Company and its subsidiaries, and is trustee and fiscal agent under
several other indentures and fiscal agency agreements pursuant to which
debentures of various subsidiaries of the Company have been issued.
25
<PAGE>
PLAN OF DISTRIBUTION
The Securities may be sold to or through underwriters or to dealers acting
as principals for their own account, and also may be sold directly to other
purchasers or through agents.
The distribution of the Securities may be effected from time to time in one
or more transactions at a fixed price or prices, which may be changed, or at
market prices prevailing at the time of sale, at prices related to such
prevailing market prices or at negotiated prices.
In connection with the sale of Securities, underwriters or agents may
receive compensation from the Company or from purchasers of Securities for
whom they may act as agents in the form of discounts, concessions or
commissions. Underwriters may sell Securities to or through dealers, and such
dealers may receive compensation in the form of discounts, concessions or
commissions from the underwriters and/or commissions from the purchasers for
whom they may act as agents. Underwriters, dealers and agents that participate
in the distribution of Securities may be deemed to be underwriters, and any
discounts or commissions received by them from the Company and any profit on
the resale of Securities by them may be deemed to be underwriting discounts
and commissions, under the Securities Act. Any such underwriter or agent will
be identified, and any such compensation received from the Company will be
described, in the Prospectus Supplement.
Under agreements which may be entered into by the Company, underwriters and
agents who participate in the distribution of Securities may be entitled to
indemnification by the Company against certain liabilities, including
liabilities under the Securities Act.
Any Securities issued hereunder (other than Common Stock) will be new issues
of securities with no established trading market. The Company may not apply
for the listing of any Securities (other than the Common Stock) on any
national securities exchange or on Nasdaq. No assurance can be given as to the
liquidity of the trading market for any such Securities.
Certain of the underwriters, dealers or agents and their associates may be
customers of, engage in transactions with, and perform services for, the
Company in the ordinary course of business.
VALIDITY OF SECURITIES
The validity of the Securities to which this Prospectus relates will be
passed upon for the Company by Seth H. Hoogasian, Esq., General Counsel of the
Company. Mr. Hoogasian is a full-time employee of the Company. The validity of
the Securities offered hereby will be passed upon for any relevant
Underwriters by Testa, Hurwitz & Thibeault, LLP, Boston, Massachusetts.
EXPERTS
The financial statements of the Company incorporated by reference in this
Prospectus and the financial statement schedules incorporated by reference in
the Registration Statement of which this Prospectus forms a part have been
audited by Arthur Andersen LLP, independent public accountants, to the extent
and for the periods as indicated in their reports with respect thereto, and
are incorporated by reference herein in reliance upon the authority of said
firm as experts in giving said reports.
26
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the various expenses in connection with the
sale and distribution of the Securities being registered, other than the
underwriting discounts and commissions. All amounts shown are estimates except
for the registration fee of the Securities and Exchange Commission (the "SEC"
or the "Commission").
<TABLE>
<S> <C>
SEC registration fee............................................... $303,031
Listing fees....................................................... 25,700
Legal fees and expenses............................................ 75,000
Accounting fees and expenses....................................... 25,000
Blue sky fees and expenses (including legal fees).................. 25,000
Printing and engraving expenses.................................... 200,000
Rating agencies' fees.............................................. 150,000
Miscellaneous...................................................... 30,000
--------
Total............................................................ $833,731
========
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The Delaware General Corporation Law and the corporate charter and by-laws
of the Company limit the monetary liability of directors to the Company and
its stockholders and provide for indemnification of its officers and directors
for liabilities and expenses that they may incur in such capacities. In
general, officers and directors are indemnified with respect to actions taken
in good faith in a manner reasonably believed to be in, or not opposed to, the
best interests of the Company and with respect to any criminal action or
proceeding, actions that the indemnitee had no reasonable cause to believe
were unlawful. Reference is made to the Company's corporate charter and by-
laws filed as exhibits to this registration statement.
The Company has an insurance policy that insures its directors and officers
and its subsidiaries against certain liabilities that might be incurred in
connection with the performance of their duties.
The forms of underwriting agreements to be filed as exhibits to this
registration statement require the underwriters under certain circumstances to
indemnify the directors and officers of the registrant against certain
liabilities, including liabilities under the Securities Act.
The registrant also has indemnification agreements with its directors and
officers that provide for the maximum indemnification allowed by law.
II-1
<PAGE>
ITEM 16. EXHIBITS.
<TABLE>
<C> <S>
1.1 Proposed form of Underwriting Agreement.
3.1 Restated Certificate of Incorporation of the Company (filed as Exhibit
3(i) to the Company's Quarterly Report on Form 10-Q for the quarter ended
June 29, 1996 and incorporated herein by reference).
3.2 By-Laws of the Company (filed as Exhibit 3.2 to the Company's Annual
Report on Form 10-K for the fiscal year ended December 28, 1996 and
incorporated herein by reference).
4.1 Form of Senior Indenture.
4.2 Form of Subordinated Indenture.
4.3* Form of Senior Debt Security.
4.4* Form of Subordinated Debt Security.
4.5 Specimen Certificate for Common Stock of the Company (filed as Exhibit
4.1 to the Company's Registration Statement on Form S-1 [Reg. No. 2-
27225] and incorporated herein by reference).
4.6 Rights Agreement dated as of January 19, 1996, between the Company and
The First National Bank of Boston, as Rights Agent (filed as Exhibit 1 to
the Company's Registration Statement on Form 8-A, declared effective by
the Commission on January 31, 1996 and incorporated herein by reference).
5.1 Opinion and consent of Seth H. Hoogasian, Esq. as to the validity of the
Securities.
8.1* Opinion and consent of tax counsel as to certain tax matters.
12.1 Computation of ratio of earnings to fixed charges.
23.1 Consent of Arthur Andersen LLP.
23.2 Consent of Seth H. Hoogasian, Esq. (included as part of Exhibit 5.1).
23.3 Consent of tax counsel (included as part of Exhibit 8.1).
23.4 Power of Attorney (see signature pages to this registration statement).
25.1 Form T-1 Statement of Eligibility and Qualification under the Trust
Indenture Act of 1939, as amended, of Bankers Trust Company.
</TABLE>
- --------
* To be filed, if applicable, by amendment or as an exhibit to a document to
be incorporated by reference herein in connection with an offering of
specific Securities.
ITEM 17. UNDERTAKINGS.
1. The undersigned registrant hereby undertakes:
(a) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) To include any Prospectus required by Section 10(a)(3) of the
Securities Act;
(ii) To reflect in the Prospectus any facts or events arising after
the effective date of 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. 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) under the Securities Act
if, in the aggregate, the changes in volume and price represent no more
than a 20% 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;
provided, however, that paragraphs (a)(i) and (a)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed by a registrant pursuant
to Section 13 or 15(d) of the Exchange Act that are incorporated by
reference in the registration statement.
II-2
<PAGE>
(b) 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.
(c) 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.
2. The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of a
registrant's annual report pursuant to Section 13(a) or 15(d) of the Exchange
Act of (and, where applicable, each filing of an employee benefit plan's
annual report pursuant to 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.
3. 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 that in the opinion of the
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-3
<PAGE>
SIGNATURES
THERMO ELECTRON CORPORATION
Pursuant to the requirements of the Securities Act, Thermo Electron
Corporation 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 Waltham, Massachusetts, on July 25, 1997.
Thermo Electron Corporation
/s/ John N. Hatsopoulos
By: _________________________________
John N. Hatsopoulos
President and Chief Financial
Officer
II-4
<PAGE>
POWER OF ATTORNEY AND SIGNATURES
We, the undersigned officers and directors of Thermo Electron Corporation,
hereby severally constitute and appoint John N. Hatsopoulos, Seth H. Hoogasian,
Sandra L. Lambert and Melissa F. Riordan, and each of them singly, our true and
lawful attorneys, with full power to them and each of them singly, to sign for
us in our names in the capacities indicated below, any and all amendments and
exhibits to this registration statement, any related registration statements
which may be filed under Rule 462(b) of the Securities Act of 1933, and any and
all applications and other documents to be filed with the Securities and
Exchange Commission pertaining to the registration of the securities covered
hereby, and generally to do all things in our names and on our behalf in such
capacities to enable Thermo Electron Corporation to comply with the provisions
of the Securities Act of 1933 and all requirements of the Securities and
Exchange Commission.
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THIS REGISTRATION
STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE CAPACITIES AND ON THE
DATES INDICATED.
SIGNATURE TITLE(S) DATE
--------- -------- ----
/s/ George N. Hatsopoulos Chief Executive July 25, 1997
- ------------------------------------- Officer, Chairman
GEORGE N. HATSOPOULOS of the Board and
Director (Principal
Executive Officer)
/s/ John N. Hatsopoulos President and Chief July 25, 1997
- ------------------------------------- Financial Officer
JOHN N. HATSOPOULOS (Principal
Financial Officer)
/s/ Paul F. Kelleher Senior Vice July 25, 1997
- ------------------------------------- President, Finance
PAUL F. KELLEHER & Administration
(Principal
Accounting Officer)
/s/ John M. Albertine Director July 25, 1997
- -------------------------------------
JOHN M. ALBERTINE
/s/ Peter O. Crisp Director July 25, 1997
- -------------------------------------
PETER O. CRISP
/s/ Elias P. Gyftopoulos Director July 25, 1997
- -------------------------------------
ELIAS P. GYFTOPOULOS
II-5
<PAGE>
SIGNATURE TITLE(S) DATE
--------- -------- ----
/s/ Frank Jungers Director July 25, 1997
- -------------------------------------
FRANK JUNGERS
/s/ Robert A. McCabe Director July 25, 1997
- -------------------------------------
ROBERT A. MCCABE
/S/ Frank E. Morris Director July 25, 1997
- -------------------------------------
FRANK E. MORRIS
/S/ Donald E. Noble Director July 25, 1997
- -------------------------------------
DONALD E. NOBLE
/S/ Hutham S. Olayan Director July 25, 1997
- -------------------------------------
HUTHAM S. OLAYAN
/S/ Roger D. Wellington Director July 25, 1997
- -------------------------------------
ROGER D. WELLINGTON
II-6
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION PAGE
------- ----------- ----
<C> <S> <C>
1.1 Proposed form of Underwriting Agreement.
3.1 Restated Certificate of Incorporation of the Company (filed as
Exhibit 3(i) to the Company's Quarterly Report on Form 10-Q for
the quarter ended June 29, 1996 and incorporated herein by
reference).
3.2 By-Laws of the Company (filed as Exhibit 3.2 to the Company's
Annual Report on Form 10-K for the fiscal year ended December
28, 1996 and incorporated herein by reference).
4.1 Form of Senior Indenture.
4.2 Form of Subordinated Indenture.
4.3* Form of Senior Debt Security.
4.4* Form of Subordinated Debt Security.
4.5 Specimen Certificate for Common Stock of the Company (filed as
Exhibit 4.1 to the Company's Registration Statement on Form S-1
[Reg. No. 2-27225] and incorporated herein by reference).
4.6 Rights Agreement dated as of January 19, 1996, between the
Company and The First National Bank of Boston, as Rights Agent
(filed as Exhibit 1 to the Company's Registration Statement on
Form 8-A, declared effective by the Commission on January 31,
1996 and incorporated herein by reference).
5.1 Opinion and consent of Seth H. Hoogasian, Esq. as to the
validity of the Securities.
8.1* Opinion and consent of tax counsel as to certain tax matters.
12.1 Computation of ratio of earnings to fixed charges.
23.1 Consent of Arthur Andersen LLP.
23.2 Consent of Seth H. Hoogasian, Esq. (included as part of Exhibit
5.1).
23.3 Consent of tax counsel (included as part of Exhibit 8.1).
23.4 Power of Attorney (see signature pages to this registration
statement).
25.1 Form T-1 Statement of Eligibility and Qualification under the
Trust Indenture Act of 1939, as amended, of Bankers Trust
Company.
</TABLE>
- --------
* To be filed, if applicable, by amendment or as an exhibit to a document to be
incorporated by reference herein in connection with an offering of specific
Securities.
<PAGE>
EXHIBIT 1.1
$XXX,000,000
THERMO ELECTRON CORPORATION
UNDERWRITING AGREEMENT
----------------------
July , 1997
Lehman Brothers Inc.
Three World Financial Center
New York, New York 10285
Salomon Brothers Inc
Seven World Trade Center
New York, New York 10048
Dear Sirs:
Thermo Electron Corporation, a Delaware corporation (the "Company"), proposes
-------
to issue and sell up to $XXX,000,000 of a combination of the Company's (i) debt
securities, consisting of debentures, notes or other unsecured evidences of
indebtedness (the "Debt Securities"), which may be either senior debt securities
---------------
or subordinated debt securities, and (ii) shares of common stock, $1.00 par
value (the "Common Stock"), in one or more offerings on terms and conditions
-------------
determined at the time of sale. The Debt Securities and the Common Stock are
sometimes referred to herein as the "Offered Securities." The Debt Securities
------------------
will be issued pursuant to an indenture dated as of _________ (the "Indenture")
---------
between the Company and Bankers Trust Company, as trustee (the "Trustee").
-------
From time to time, the Company may enter into one or more terms agreements
(each a "Terms Agreement") that provide for the sale of such designated Offered
---------------
Securities to, and the purchase and offering thereof by, either or both of you,
as applicable, and the underwriter or underwriters named therein (the
"Underwriters" or "you", which terms shall include the underwriter or
----------- ---
underwriters named therein whether acting alone in the sale of Offered
Securities or as members of an underwriting syndicate), and the provisions set
forth herein (except for provisions which relate to securities other than
Offered Securities designated in the applicable Terms Agreement) shall be
incorporated by reference in any such Terms Agreement. The applicable Terms
Agreement, including the provisions incorporated therein by reference, is herein
referred to as "this Agreement."
--------------
1. Representations, Warranties and Agreements of the Company. The Company
----------------------------------------------------------
represents, warrants and agrees with each Underwriter as follows:
(a) A registration statement on Form S-3 (No. 333- ), including a
prospectus relating to the Offered Securities of the Company for the
registration of such securities under the
<PAGE>
-2-
United States Securities Act of 1933, as amended (the "Securities Act"), has (i)
--------------
been prepared by the Company in material conformity with the requirements of the
Securities Act and the rules and regulations (the "Rules and Regulations") of
---------------------
the United States Securities and Exchange Commission (the "Commission")
----------
thereunder, (ii) been filed with the Commission under the Securities Act and
(iii) become effective under the Securities Act; and the Indenture has been
qualified under the Trust Indenture Act of 1939, as amended (the "Trust
-----
Indenture Act"). Copies of such registration statement and any amendments
- -------------
thereto have been delivered by the Company to you. As used in this Agreement,
"Effective Date" means the date and the time as of which such registration
--------------
statement, or the most recent post-effective amendment thereto, if any, was
declared effective by the Commission; "Registration Statement" means the
----------------------
registration statement as amended to the date of this Agreement, including all
documents incorporated by reference or deemed to be incorporated by reference
therein and the exhibits thereto; "Base Prospectus" means the prospectus
---------------
included in the Registration Statement; "Preliminary Prospectus" means any
----------------------
preliminary form of Prospectus (as defined herein) specifically relating to
designated Offered Securities, in the form first filed with, or transmitted for
filing to, the Commission pursuant to Rule 424 of the Rules and Regulations;
"Prospectus Supplement" means any prospectus supplement specifically relating to
---------------------
designated Offered Securities, in the form first filed with, or transmitted for
filing to, the Commission pursuant to Rule 424 under the Securities Act;
"Prospectus" means the Base Prospectus together with the Prospectus Supplement
----------
except that if such Base Prospectus is amended or supplemented on or prior to
the date on which the Prospectus Supplement was first filed pursuant to Rule
424, the term "Prospectus" shall refer to the Base Prospectus as so amended or
----------
supplemented and as supplemented by the Prospectus Supplement; "Base
----
Prospectus," "Prospectus," "Preliminary Prospectus" and "Prospectus Supplement"
- ---------- ---------- ---------------------- ---------------------
shall include in each case the documents, if any, filed by the Company with the
Commission pursuant to the United States Securities Exchange Act of 1934, as
amended (the "Exchange Act"), and incorporated by reference therein; and
------------
"supplement" and "amendment", shall be deemed to refer to and include any
---------- ---------
documents incorporated by reference pursuant to Item 12 of Form S-3 under the
Securities Act that are filed subsequent to the date of the Base Prospectus by
the Company with the Commission pursuant to the Exchange Act. Any reference to
any amendment to the Registration Statement shall be deemed to include any
annual report of the Company filed with the Commission pursuant to Section 13(a)
or 15(d) of the Exchange Act after the Effective Date that is incorporated by
reference in the Registration Statement. Any reference herein to information
"contained in," "contemplated by," "described in," "disclosed in," "included in"
------------ --------------- ------------ ------------ -----------
or "set forth in" any of the foregoing documents, or words of similar effect,
------------
shall be deemed to include the documents incorporated or deemed to be
incorporated by reference therein.
(b) The Registration Statement complies as to form in all material respects,
and the Prospectus and any further amendments or supplements to the Registration
Statement or the Prospectus will, when they become effective or are filed with
the Commission, as the case may be, comply as to form in all material respects
to the requirements of the Securities Act and the Rules and Regulations and do
not and will not, as of the applicable Effective Date (as to the Registration
Statement and any amendment thereto) and as of the applicable filing date and
applicable Closing Date (as to the Prospectus and any amendment or supplement
thereto) contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein
<PAGE>
-3-
or necessary to make the statements therein (in the case of the Prospectus, in
light of the circumstances in which they were made), not misleading; provided,
however, that no representation or warranty is made as to information contained
in or omitted from the Registration Statement or the Prospectus in reliance upon
and in conformity with written information furnished to the Company by or on
behalf of any Underwriter specifically for use in the Registration Statement or
the Prospectus. To the extent applicable, the copies of the Registration
Statement and each other document referred to in subparagraph (a) above that
have been or will be furnished to the Underwriters have been and will be
identical to the electronically transmitted copies thereof filed with the
Commission pursuant to the Commission's Electronic Data Gathering, Analysis and
Retrieval System ("EDGAR"), except to the extent permitted by Regulation S-T.
-----
(c) If the Offered Securities are Debt Securities: The Indenture conforms in
all material respects to the requirements of the Trust Indenture Act and the
applicable rules and regulations thereunder.
(d) The documents incorporated or deemed to be incorporated by reference in
the Prospectus, when they were filed with the Commission, conformed in all
material respects with the requirements of the Securities Act or the Exchange
Act, as applicable, and the rules and regulations of the Commission thereunder,
and none of such documents contained an untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein, not misleading; and any further documents so filed
and incorporated or deemed to be incorporated by reference in the Prospectus,
when such documents become effective or are filed with the Commission, as the
case may be, will conform in all material respects to the requirements of the
Securities Act or the Exchange Act, as applicable, and the rules and regulations
of the Commission thereunder and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.
(e) The Company and each of its Subsidiaries have been duly incorporated and
are validly existing as corporations in good standing under the laws of their
respective jurisdictions of incorporation. The Company and each of their its
Subsidiaries are duly qualified to do business and are in good standing as
foreign corporations in each jurisdiction in which their respective ownership or
lease of property or the conduct of their respective businesses requires such
qualification, except where the failure to be so qualified and in good standing
would not have a material adverse effect on the consolidated financial
condition, shareholders' equity, results of operations or business of the
Company and its Subsidiaries taken as a whole, and where so qualified have all
corporate power and authority necessary to own, lease or operate their
respective properties and to conduct the businesses in which they are engaged as
described in the Prospectus. Except as described in the Prospectus, the Company
and its Subsidiaries hold all material licenses, certificates and permits from
governmental authorities necessary for the conduct of their respective
businesses as described in the Prospectus.
(f) The Company had an authorized and issued capitalization as set forth in
the Prospectus (as of the date specified therein), and all of the issued and
outstanding shares of
<PAGE>
-4-
capital stock of the Company have been duly and validly authorized and issued,
are fully paid and non-assessable and conform in all material respects to the
description thereof contained in the Prospectus; and all of the issued and
outstanding shares of capital stock of each Subsidiary of the Company have been
duly and validly authorized and issued and are fully paid and non-assessable and
(except for directors' qualifying shares and as set forth in the Prospectus) are
owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims, except that certain of such shares are
reserved for transfer pursuant to stock option and other benefit plans under
which options to purchase common stock of such corporation owned by its
corporate parent are granted to certain employees, directors or consultants of
the Company and its Subsidiaries.
(g) If the Offered Securities are Debt Securities: The Debt Securities have
been duly and validly authorized by the Company and, when duly executed, issued
and delivered by the Company, and authenticated by the Trustee pursuant to the
provisions of the Indenture, against payment therefor as provided in this
Agreement, will constitute valid and legally binding obligations of the Company
entitled to the benefits of the Indenture and enforceable against the Company in
accordance with their terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance and transfer, reorganization, moratorium, or other similar
laws now or hereafter in effect relating to creditors' rights generally
("applicable bankruptcy laws") and general equitable principles (whether
--------------------------
considered in a proceeding in equity or at law); and the Debt Securities, when
issued and delivered, will conform in all material respects to the description
thereof contained in the Prospectus.
(h) If the Offered Securities are Debt Securities: The Indenture has been
duly authorized by the Company, and when duly executed by the proper officers of
the Company (assuming due execution and delivery by the Trustee) and delivered
by the Company and will constitute a valid and legally binding obligation of the
Company enforceable against it in accordance with its terms, subject to the
effects of applicable bankruptcy laws and general equitable principles (whether
considered in a proceeding in equity or at law); and the Indenture conforms in
all material respects to the description thereof contained in the Prospectus.
(i) If the Offered Securities are shares of Common Stock: The unissued shares
of Common Stock have been duly and validly authorized and, when issued and
delivered against payment therefor as provided in this Agreement, such shares
will be duly and validly issued, fully paid and non-assessable and will conform
in all material respects to the description thereof contained in the Prospectus.
(j) If the Offered Securities are convertible into shares of Common Stock: The
shares of Common Stock reserved for issuance upon conversion of convertible Debt
Securities have been validly authorized and reserved for such purpose; and, if
and when any of such convertible Debt Securities are converted into shares of
Common Stock in accordance with the conversion rights so provided, such shares
of Common Stock will be validly issued, fully paid and non-assessable and
delivered in accordance with the terms of the Company's corporate charter and
by-laws; and when issued and delivered, such Common Stock will conform in all
material respects to the description thereof contained in the Prospectus.
<PAGE>
-5-
(k) If the Offered Securities are shares of Common Stock: There are no
preemptive or other rights to subscribe for or to purchase, nor any restrictions
upon the voting or transfer of any shares of the Common Stock, including any
Common Stock issuable upon conversion of any Offered Securities, in each case,
pursuant to the Company's corporate charter or by-laws or any agreement or other
instrument to which the Company is a party.
(l) This Agreement has been duly authorized, executed and delivered by the
Company.
(m) The execution, delivery and performance of this Agreement by the Company,
the execution, delivery and performance of the Indenture (if the Offered
Securities are Debt Securities) by the Company, and the consummation of the
transactions contemplated hereby and thereby, and the issuance and delivery of
the Offered Securities will not conflict with or result in a breach or violation
of any of the terms or provisions of, or constitute a default under any
indenture, lien, charge or encumbrance upon any property or mortgage, deed of
trust, loan agreement, or other agreement or instrument to which the Company or
any of its Subsidiaries is a party or by which it or any of them is bound or to
which any of the property or assets of the Company or any of their its
Subsidiaries is subject, except in each case for such conflicts, breaches,
violations or defaults which would not have a material adverse effect on the
consolidated financial condition, shareholders' equity, results of operations or
business of the Company and its Subsidiaries taken as a whole, nor will such
action result in any violation of the provisions of the charter or by-laws of
the Company or any of its Subsidiaries or any statute or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over
the Company or any of its Subsidiaries or any of their respective material
properties or assets; and except for the registration of the Offered Securities
under the Securities Act, the qualification of the Indenture under the Trust
Indenture Act, and such consents, approvals, authorizations, registrations or
qualifications as may be required under the Exchange Act or applicable state or
foreign securities laws or by the National Association of Securities Dealers,
Inc. in connection with the purchase and distribution of the Offered Securities
by the Underwriters, no consent, approval, authorization or order of, or filing,
registration or qualification of or with, any such court or governmental agency
or body is required for the execution, delivery and performance of this
Agreement, the Indenture (if the Offered Securities are Debt Securities), by the
Company and the consummation by the Company of the transactions contemplated
hereby and thereby.
(n) Except as described in the Registration Statement or the Prospectus, there
are no agreements or understandings between the Company and any person granting
such person the right to require the Company to file a registration statement
under the Securities Act with respect to any securities of the Company owned or
to be owned by such person or to require the Company to include such securities
in the securities registered pursuant to the Registration Statement or in any
securities being registered pursuant to any other registration statement filed
by the Company under the Securities Act.
<PAGE>
-6-
(o) Neither the Company nor any of its Subsidiaries has sustained, since the
date of the latest financial statements included or incorporated by reference in
the Prospectus, any loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, which is material to
the Company and its Subsidiaries taken as a whole, otherwise than as set forth
or contemplated in the Prospectus; except as contemplated by or disclosed in the
Prospectus, since such date, the Company has not incurred any material liability
or obligation, or entered into any transaction other than in the ordinary course
of business, or declared or paid any dividend on its capital stock or issued or
granted any securities; and except as contemplated by or disclosed in the
Prospectus, since such date, there has not been any material change in the
capital stock of the Company or any of its Subsidiaries or any material change
in the consolidated long-term debt of the Company, or any material adverse
change, or any development involving a prospective material adverse change, in
or affecting the business, management, financial condition, shareholders' equity
or results of operations of the Company and its Subsidiaries taken as a whole,
otherwise than as set forth or contemplated in the Prospectus.
(p) Arthur Andersen LLP, which has certified the financial statements of the
Company included in the Registration Statement, and any other accounting firm
which has certified any financial statements contained in the Registration
Statement, and whose reports appear in the Prospectus or are incorporated by
reference therein, are independent public accountants as required by the
Securities Act and the Rules and Regulations.
(q) The financial statements (including the related notes and supporting
schedules) filed as part of the Registration Statement or included or
incorporated by reference in the Prospectus present fairly in all material
respects the financial condition and results of operations of the entities
purported to be shown thereby at the dates and for the periods indicated; and
have been prepared in conformity with United States generally accepted
accounting principles or International Accounting Standards, as the case may be,
applied on a consistent basis throughout the periods involved, except as
otherwise expressly set forth therein.
(r) Except as described in the Registration Statement or the Prospectus, there
are no legal or governmental proceedings pending to which the Company or any of
its Subsidiaries is a party or of which any material property or assets of the
Company or any of its Subsidiaries is the subject which is required to be
disclosed in the Registration Statement or the Prospectus which, if resolved
adversely to such party, would have a material adverse effect on the
consolidated financial condition, shareholders' equity, results of operations or
business of the Company and its Subsidiaries taken as a whole or the
transactions contemplated by this Agreement; and to the Company's knowledge, no
such proceedings are threatened by governmental authorities or threatened by
others.
(s) There are no contracts or other documents which are required to be
described in the Prospectus or filed as exhibits to the Registration Statement
by the Securities Act or by the Rules and Regulations which have not been
described in the Prospectus or filed as exhibits to the Registration Statement
or incorporated therein by reference under the Rules and Regulations.
<PAGE>
-7-
(t) Neither the Company nor any of its Subsidiaries is
(i) in violation of its corporate charter or by-laws, or
(ii) except as described in the Prospectus, in default in any material
respect, and no event has occurred which, with notice or lapse of time or both,
would constitute such a default, in the due performance or observance of any
term, covenant or condition contained in any material indenture, mortgage, deed
of trust, loan agreement or other agreement to which the Company or any of its
Subsidiaries is a party or by which it or any of them is or may be bound or to
which any of the properties or assets of the Company or any of its Subsidiaries
is subject, except for such defaults which would not have a material adverse
effect on the consolidated financial condition, shareholders' equity, results of
operations or business of the Company and its Subsidiaries taken as a whole; or
(iii) except as described in the Prospectus, in violation in any
material respect of any law, ordinance, governmental rule, regulation or court
decree to which the Company or any of its Subsidiaries or its or any of their
respective property or assets may be subject or has failed to obtain any
material license, permit, certificate, franchise or other governmental
authorization or permit necessary to the ownership of its or their property or
to the conduct of its or their business, except for such violations or failures
which would not reasonably be expected to have a material adverse effect on the
consolidated financial condition, shareholders' equity, results of operations or
business of the Company and its Subsidiaries taken as a whole.
(u) Except as described in the Prospectus, the Company and its Subsidiaries
own, or have valid rights to use, all items of real and personal property which
are material to the business of the Company and its Subsidiaries taken as a
whole, free and clear of all liens, encumbrances and claims which may materially
interfere with the consolidated financial condition, shareholders' equity,
results of operations or business of the Company and its Subsidiaries taken as a
whole.
(v) Except as disclosed in the Prospectus, the Company and its Subsidiaries
own or possess adequate licenses or other rights to use all intellectual
property rights, including patents, trademarks, service marks, trade names,
copyrights or know-how, necessary to conduct their respective businesses as
described in the Prospectus, except where such failure, singularly or in the
aggregate, would not have a material adverse effect on the consolidated
financial condition, shareholders' equity, results of operations or business of
the Company and its Subsidiaries taken as a whole, and, except as disclosed in
the Prospectus, none of the Company or its Subsidiaries has received any
written notice of infringement of or conflict with (or knows of any such
infringement of or conflict with) rights or claims of others with respect to any
patents, trademarks, service marks, trade names, copyrights or know-how, that if
the subject of an unfavorable decision, ruling or finding, would result in a
material adverse effect on the consolidated financial condition, shareholders'
equity, results of operations or business the Company and its Subsidiaries taken
as a whole, and, except as disclosed in the Prospectus, all products or
processes referred to in the Prospectus and relating to the business of the
Company or its Subsidiaries now conducted by it do not infringe upon or conflict
with any right or patent, or
<PAGE>
-8-
with any discovery, invention, product or process which is the subject of any
patent application known to the Company, in a manner which would materially and
adversely affect the consolidated financial condition, shareholders' equity,
results of operations of the Company and its Subsidiaries taken as a whole.
(w) Neither the Company nor any of its Subsidiaries is an "investment company"
within the meaning of such term under the Investment Company Act of 1940 and the
rules and regulations of the Commission thereunder.
(x) Since the date which is three months prior to this Agreement, no debt
rating assigned to the Company by any "nationally recognized statistical rating
organization," as that term is defined by the Commission for purposes of Rule
436(g)(2) of the Rules and Regulations, has been lowered or, to the Company's
knowledge, threatened to be lowered by any such rating organization nor, to the
Company's knowledge, has it been placed under surveillance or review by any such
rating organization.
(y) Any certificate signed by any officer of the Company and delivered to the
Underwriters or to counsel for the Underwriters pursuant to this Agreement shall
be deemed a representation and warranty hereunder by the Company to each
Underwriter as to the matters covered thereby.
2. Purchase of the Offered Securities by the Underwriters. On the basis of
------------------------------------------------------
the representations and warranties contained in, and subject to the terms and
conditions set forth herein, the Company agrees to sell to the Underwriters and
each of the Underwriters, severally and not jointly, agrees to purchase from the
Company, at the price and/or principal amount, as the case may be, set forth in
the applicable Terms Agreement attached hereto as Schedule I and in the
----------
respective amounts and number of shares, as the case may be, of the designated
Offered Securities set forth opposite the name of each such Underwriter in
Exhibit A to such Terms Agreement. In addition, the Company may specify in any
- ---------
Terms Agreement relating to any offering that the Company thereby grants to the
Underwriters an option to purchase up to the number of shares or principal
amount of additional Offered Securities (the "Option Securities," and if so
-----------------
purchased shall also be "Offered Securities" herein) in the amount set forth in
------------------
such Terms Agreement. The option thereby granted is exercisable as provided in
Section 4 hereof, shall expire at the close of business on the 30th day after
the date of the applicable Terms Agreement (unless otherwise specified therein)
and will be granted solely for the purpose of covering over-allotments which may
be made in connection with the applicable offering. The Option Securities shall
be purchased severally for the account of the Underwriters in proportion to the
number or amount of Offered Securities set opposite the name of such
Underwriters in Exhibit A of the applicable Terms Agreement. The respective
---------
purchase obligations of each Underwriter with respect to the Option Securities
shall be adjusted by the managing Underwriter so that no Underwriter shall be
obligated to purchase Option Securities in amounts other than in 100 share or
$1,000 principal amount increments.
3. Offering of the Offered Securities by the Underwriters. (a) The several
------------------------------------------------------
Underwriters propose to offer the Offered Securities for sale upon the terms and
conditions set
<PAGE>
-9-
forth in the Prospectus and any amendment or supplement thereto relating to the
Offered Securities.
(b) Each Underwriter severally agrees to comply with the following
restrictions in the offering and sale of any Debt Securities:
(i) except to the extent permitted under U.S. Treasury Regulation
(S)1.163-5(c)(2)(i)(D) (the "D Rules"), (A) the Underwriters have not offered or
-------
sold, and during the restricted period will not offer or sell, Debt Securities
in bearer form to a person who is within the United States or its possessions or
to a United States person, and (B) the Underwriters have not delivered, and will
not deliver, within the United States or its possessions definitive Debt
Securities in bearer form that are sold during the restricted period;
(ii) The Underwriters and each of their affiliates that is acquiring
from them Debt Securities in bearer form for the purposes of offering or selling
such Debt Securities during the restricted period, presently have in effect, and
throughout the restricted period will have in effect, procedures reasonably
designed to ensure that such Underwriters and such affiliates and their
respective employees or agents who are directly engaged in selling Debt
Securities in bearer form are aware that such Debt Securities may not be offered
or sold during the restricted period to a person who is within the United States
or its possessions or to a United States person, except as permitted by the D
Rules;
(iii) Each Underwriter that is a United States person, if any, is
acquiring, either as agent or on its own behalf, the Debt Securities in bearer
form for purposes of resale in connection with their original issuance, and if
it retains Debt Securities in bearer form for its own account, it will only do
so in accordance with the requirements of U.S. Treasury Regulation (S)1.163-
5(c)(2)(i)(D)(6); and
(iv) With respect to each of the Underwriters' affiliates that
acquires from such Underwriter Debt Securities in bearer form for the purpose of
offering or selling such Debt Securities during the restricted period, such
Underwriter agrees that it will obtain from such affiliate for the benefit of
the Company the representations, warranties, covenants and agreements contained
in clauses (i), (ii) and (iii).
Terms used in this Section 3(b) have the meanings given to them by the U.S.
Internal Revenue Code and regulations thereunder, including the D Rules.
(c) Each Underwriter severally represents and agrees that (i) it has not
offered or sold and will not offer or sell in the united Kingdom any Offered
Securities except to persons whose ordinary activities involve them in
acquiring, holding, managing or disposing of investments (as principal or agent)
for the purpose of their businesses or otherwise in circumstances which have not
resulted and will not result in an offer to the public in the United Kingdom
within the meaning of the Public Offers of Securities Regulations 1995 (the
"Regulations") or the Financial Services Act 1986, (ii) it has complied and will
- ------------
comply with all applicable provisions of the Financial Services Act 1986 and the
Regulations with respect to anything done by it in relation to
<PAGE>
-10-
the Offered Securities in, from or otherwise involving the United Kingdom and
(iii) it has only issued or passed on, and will only issue or pass on, in the
United Kingdom any document received by it in connection with the issue of the
Offered Securities if that person is of a kind described in Article 11(3) of the
Financial Services Act 1986 (Investment Advertisements) (Exemptions) order 1996
or is a person to whom the document may otherwise lawfully be issued or passed
on.
4. Delivery of and Payment for the Offered Securities. Delivery of and
--------------------------------------------------
payment for the Offered Securities shall be made at the headquarters office of
the managing Underwriter, or at such other location as may be agreed upon by the
Underwriters and the Company, at 10:00 a.m., Eastern time, on the third business
day (or on the fourth business day, if permitted by the Rules and Regulations)
following the date of this Agreement, or at such other time and date as shall be
agreed upon (each such date and time of payment and delivery being herein called
the "Closing Date") in the manner set forth in the applicable Terms Agreement.
------------
Time shall be of the essence, and delivery at the time and place specified
pursuant to this Agreement is a further condition of the obligation of each
Underwriter hereunder. Upon delivery, the Offered Securities shall be registered
in such names and in such denominations as the Underwriters shall request in
writing not less than two full business days prior to the Closing Date. For the
purpose of expediting the checking and packaging of the certificates for the
Common Stock, the Company shall make the certificates representing the Common
Stock available for inspection by the Underwriters in New York, New York, not
later than 2:00 p.m., Eastern time, on the business day prior to the Closing
Date. The Debt Securities of a series may be issued in whole or in part in the
form of one or more global securities that will be deposited with, or on behalf
of, one or more depositories, or a nominee thereof, identified in the Prospectus
relating to such series. In such a case, the manner of delivery of such global
securities will be set forth in the applicable Terms Agreement, or if not so set
forth, as described in the applicable Prospectus. At any time on or before the
thirtieth day after the date of any Terms Agreement relating to Option
Securities, if applicable, the option granted in Section 2 may be exercised by
written notice being given to the Company by or on behalf of the Underwriters.
Such notice shall set forth the aggregate number or amount of Option Securities
as to which the option is being exercised, the names in which the Option
Securities are to be registered if not in global form as set forth above, the
denominations in which the shares of Option Securities are to be issued and the
date and time, as determined by the Underwriters, when the Option Securities are
to be delivered; provided, however, that this date and time shall not be earlier
than the Closing Date nor earlier than the second business day after the date on
which the option shall have been exercised nor later than the third business day
after the date on which the option shall have been exercised. The date and time
the Option Securities are delivered are sometimes referred to as the "Option
------
Closing Date". Delivery of and payment for the Option Securities shall be made
- ------------
at the place specified in the first sentence of the first paragraph of this
Section 4 (or at such other place as shall be determined by agreement between
the Underwriters and the Company at 10:00 a.m., Eastern time, on the Option
Closing Date). On the Option Closing Date, the Company shall deliver or cause to
be delivered the certificates representing the Option Securities to the
Underwriters for the account of each Underwriter against payment to or upon the
order of the Company of the purchase price in the manner set forth in the
applicable Terms Agreement. Time shall be of the essence, and delivery at the
time and place specified pursuant to this Agreement is a further condition of
the obligation of each
<PAGE>
-11-
Underwriter hereunder. Upon delivery, the Option Securities shall be registered
in such names (if other than in global form) and in such denominations as the
Underwriters shall request in the aforesaid notice. For the purpose of
expediting the checking and packaging of certificates for the Option Securities
that are Common Stock, the Company shall make the certificates representing such
Common Stock available for inspection by the Underwriters in New York, New York,
not later than 2:00 p.m., Eastern time, on the business day prior to the Option
Closing Date.
5. Further Agreements of the Company. The Company agrees:
---------------------------------
(a) To prepare the Prospectus in a form reasonably approved by the
Underwriters and to file such Prospectus pursuant to Rule 424(b) under the
Securities Act not later than the Commission's close of business on the second
business day following the execution and delivery of this Agreement or, if
applicable, such earlier time as may be required by Rule 430A(a)(3) under the
Securities Act; after the date of the applicable Terms Agreement, to make no
further amendment or supplement to the Registration Statement or to the
Prospectus prior to the applicable Closing Date except as permitted herein; to
advise the Underwriters, promptly after it receives notice thereof, of the time
when any amendment to the Registration Statement has been filed or becomes
effective or any supplement to the Prospectus or any amended Prospectus has been
filed and to furnish the Underwriters with copies thereof; to file promptly all
reports and any definitive proxy or information statements required to be filed
by the Company or with the Commission pursuant to Section 13(a), 13(c), 14 or
15(d) of the Exchange Act subsequent to the date of the Prospectus and for so
long as the delivery of a prospectus is required in connection with the offering
or sale of the Offered Securities; to advise the Underwriters, promptly after it
receives notice thereof, of the issuance by the Commission of any stop order or
of any order preventing or suspending the use of any Preliminary Prospectus or
the Prospectus, of the suspension of the qualification of the Offered Securities
for offering or sale in any jurisdiction, of the initiation or threatening of
any proceeding for any such purpose, of any request by the Commission for the
amending or supplementing of the Registration Statement or the Prospectus or for
additional information; and, in the event of the issuance of any stop order or
of any order preventing or suspending the use of any Preliminary Prospectus or
the Prospectus or suspending any such qualification, to use promptly its best
efforts to obtain its withdrawal;
(b) To furnish, promptly upon request by the representatives of the
Underwriters named in any applicable Terms Agreement (the "Representatives" and
---------------
if no Representatives are so named, then any references herein to the
Representatives shall be deemed to refer to the Underwriters), to the
Underwriters and to counsel for the Underwriters a copy of the Registration
Statement as originally filed with the Commission, and each amendment thereto
filed with the Commission, including all consents and exhibits filed therewith;
(c) To deliver promptly to the Underwriters such number of the following
documents as the Representatives shall reasonably request:
(i) conformed copies of the Registration Statement as originally filed
with the Commission and each amendment thereto (in each case excluding exhibits
other than this
<PAGE>
-12-
Agreement and the Indenture and such other exhibits as the Underwriters may
reasonably request),
(ii) each Preliminary Prospectus, the Prospectus and any amended or
supplemented Prospectus; and
(iii) any document incorporated or deemed incorporated by reference
in the Prospectus (excluding exhibits thereto); and, if the delivery of a
prospectus is required at any time after the Effective Date in connection with
the offering or sale of the Offered Securities and if at such time any events
shall have occurred as a result of which the Prospectus as then amended or
supplemented would include an untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made when such Prospectus
is delivered, not misleading, or, if for any other reason it shall be necessary
to amend or supplement the Prospectus (or to file under the Exchange Act any
document incorporated by reference in the Prospectus) in order to comply with
the Securities Act or the Exchange Act, to notify the Underwriters and, upon the
reasonable request of the Representatives, to file such document and to prepare
and furnish without charge to each Underwriter as many copies as the
Representatives may from time to time reasonably request of an amended or
supplemented Prospectus which will correct such statement or omission or effect
such compliance;
(d) To file promptly with the Commission any amendment to the Registration
Statement or the Prospectus or any supplement to the Prospectus that may, in the
judgment of the Company and the Underwriters, be required by the Securities Act,
or requested by the Commission;
(e) Prior to filing with the Commission any amendment to the Registration
Statement or supplement to the Prospectus, and promptly after filing with the
Commission (or, if between the signing of any applicable Terms Agreement and the
Closing Date thereunder, prior to filing with the Commission) any document
incorporated or deemed incorporated by reference in the Prospectus or any
Prospectus pursuant to Rule 424 of the Rules and Regulations, to furnish a copy
thereof to the Underwriters and counsel for the Underwriters;
(f) As soon as practicable after the date of this Agreement and every Terms
Agreement relating to designated Offered Securities, to make generally available
to its security holders an earnings statement of the Company and its
Subsidiaries (which need not be audited) complying with Section 11(a) of the
Securities Act and the Rules and Regulations (including, at the option of the
Company, Rule 158);
(g) For a period of five years following the applicable Closing Date, to
furnish to the Underwriters, copies of all materials furnished by the Company to
all of its shareholders and all public reports and all reports and financial
statements furnished by the Company to the principal national securities
exchange upon which the Common Stock and any other Offered Securities may be
listed pursuant to requirements of or agreements with such exchange or to the
<PAGE>
-13-
Commission pursuant to the Exchange Act or any rules or regulations of the
Commission thereunder;
(h) Promptly from time to time to take such action as the Underwriters may
reasonably request to qualify the Offered Securities for offering and sale under
the securities laws of such jurisdictions as the Underwriters may reasonably
request and to comply with such laws so as to permit the continuance of sales
and dealings therein in such jurisdictions for as long as may be necessary to
complete the distribution of the Offered Securities; provided, however, that in
connection therewith the Company shall not be required to qualify as a foreign
corporation or to file a general consent to service of process in any
jurisdiction where it is not so qualified;
(i) For a period of 90 days after the date of the Prospectus relating to
designated Common Stock, or Offered Securities convertible into Common Stock but
only if specified in the applicable Terms Agreement (unless a different time
period is set forth in the applicable Terms Agreement), the Company will not,
directly or indirectly, offer for sale, sell or otherwise dispose of (or enter
into any transaction or device which is designed to, or could be expected to,
result in the disposition by any person at any time in the future of) any shares
of Common Stock or any security convertible or exchangeable for Common Stock
(other than shares issuable pursuant to employee benefit plans, stock option
plans or other compensation plans existing on the date thereof or pursuant to
then currently outstanding options, warrants or rights and other than the
issuance of shares of Common Stock as consideration for the acquisition of one
or more businesses provided that such Common Stock may not be resold prior to
the expiration of the 90-day period referenced above), or sell or grant options,
rights or warrants with respect to any shares of Common Stock (other than the
grant of options pursuant to option plans existing on the date thereof)
otherwise than in accordance with this Agreement or as contemplated in the
Prospectus without the prior written consent of the Representatives;
(j) In the event designated Offered Securities are to be listed on a
securities exchange, to apply for any listing of such designated Offered
Securities on such securities exchange and to use its best efforts to complete
and maintain that listing, subject only to official notice of issuance, prior to
the relevant Closing Date, or if not so listed by such date, as soon as
practical thereafter. In the case of Offered Securities that are Debt Securities
to be listed on a foreign securities exchange, if the Company is not able to
effect or maintain such listing, it will use its best efforts to obtain and
maintain the quotation for, or listing of, such Debt Securities on such other
stock exchange or exchanges as the Company may, with the approval of the
Representatives, determine;
(k) To apply the net proceeds from the sale of the Offered Securities being
sold by the Company as set forth in the Prospectus; and
(l) If the Offered Securities include Debt Securities, not to offer or sell
such Debt Securities in bearer form during the restricted period to a person who
is within the United States or its possessions or to a United States person
(each as defined in the U.S. Internal Revenue Code and regulations thereunder,
including the D Rules).
<PAGE>
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6. Expenses. The Company agrees to pay:
--------
(a) the costs incident to the authorization, issuance, sale and delivery
of the Offered Securities and any taxes payable in that connection (other than
taxes based on income);
(b) the costs incident to the preparation, printing and filing under the
Securities Act of the Registration Statement and any amendments and exhibits
thereto;
(c) the costs of distributing the Registration Statement as originally
filed and each amendment thereto and any post-effective amendments thereof
(including, in each case, exhibits), any Preliminary Prospectus, the Prospectus
and any amendment or supplement to the Prospectus or any document incorporated
or deemed incorporated by reference therein, all as provided in this Agreement;
(d) the costs, if any, of printing this Agreement and any other related
documents in connection with the offering, purchase, sale and delivery of the
Offered Securities;
(e) any applicable listing or other fees;
(f) the filing fee of the National Association of Securities Dealers,
Inc. and the fees and expenses of qualifying the Offered Securities under the
securities laws of the several jurisdictions as provided in Section 5(h) and of
preparing, printing and distributing a Blue Sky Memorandum and a Legal
Investment Survey (including related fees and expenses of counsel to the
Underwriters);
(g) any fees charged by securities rating services for rating any Offered
Securities; and
(h) all other costs and expenses incident to the performance of the
obligations of the Company under this Agreement; provided that, except as
provided in this Section 6 and in Section 8 and Section 11, the Underwriters
shall pay the costs and expenses of their counsel, any transfer taxes on the
Offered Securities which they may sell, the expenses of advertising any offering
of the Offered Securities made by the Underwriters and all other costs and
expenses of the Underwriters and their counsel not enumerated in this Section 6.
7. Conditions of Underwriters' Obligations. The obligations of the
---------------------------------------
Underwriters to purchase and pay for any Offered Securities are subject to the
accuracy, when made, and on each Closing Date, of the representations and
warranties of the Company contained herein, to the performance by the Company of
its obligations hereunder and under any Terms Agreement, and to each of the
following additional terms and conditions:
(a) At the applicable Closing Date, the Prospectus shall have been timely
filed with the Commission in accordance with Section 5(a); no stop order
suspending the effectiveness of the Registration Statement or any part thereof
shall have been issued and no proceeding for
<PAGE>
-15-
that purpose shall have been initiated or threatened by the Commission; and any
request of the Commission for inclusion of additional information in the
Registration Statement or the Prospectus or otherwise shall have been complied
with to the Representatives' reasonable satisfaction.
(b) No Underwriter shall have discovered and disclosed to the Company on
or prior to any Closing Date that the Registration Statement or the Prospectus
or any amendment or supplement thereto contains an untrue statement of a fact
that, in the opinion of counsel for the Underwriters, is material or omits to
state a fact that, in the opinion of such counsel, is material and is required
to be stated therein or is necessary to make the statements therein (in the case
of the Prospectus, in light of the circumstances in which they were made), not
misleading.
(c) All corporate proceedings and other legal matters incident to the
authorization, form, validity and enforceability of this Agreement, any Terms
Agreement, the Indenture, the Offered Securities, the Registration Statement and
the Prospectus, and all other legal matters relating to this Agreement and any
Terms Agreement and the transactions contemplated hereby and thereby shall be
reasonably satisfactory in all material respects to counsel for the
Underwriters, and the Company shall have furnished to such counsel all documents
and information that they may reasonably request to enable them to pass upon
such matters.
(d) Seth H. Hoogasian, Esq., General Counsel to the Company, shall have
furnished to the Underwriters his opinion, in such capacities, addressed to the
Underwriters and dated the Closing Date, in form and substance reasonably
satisfactory to counsel for the Underwriters, to the effect that:
(i) The Company and each of its Significant Subsidiaries have been
duly incorporated and are validly existing as corporations in good standing
under the laws of their respective jurisdictions of incorporation. The Company
and each of its Significant Subsidiaries are duly qualified to do business and
are in good standing as foreign corporations in each jurisdiction in which their
respective ownership or lease of property or the conduct of their respective
businesses requires such qualification except where the failure to be so
qualified and in good standing would not have a material adverse effect on the
consolidated financial condition, shareholders' equity, results of operations or
business of the Company and its Subsidiaries taken as a whole, and where so
qualified have all corporate power and authority necessary to own, lease or
operate their respective properties and to conduct the businesses in which they
are engaged as described in the Prospectus;
(ii) The Company had an authorized and outstanding capitalization as
set forth in the Prospectus (as of the date such information is given). All of
the outstanding shares of capital stock of each of the Company and its
Significant Subsidiaries are duly authorized and validly issued, and, to the
best of such counsel's knowledge, fully paid and non-assessable; to the best of
such counsel's knowledge, the Company owns, directly or indirectly through
Subsidiaries, the amount of the outstanding capital stock of its Significant
Subsidiaries, as described in the Prospectus (as of the date such information is
given), and to the best of such
<PAGE>
-16-
counsel's knowledge, such ownership is free and clear of any lien, claim or
encumbrance or any other claim of any third party (except for certain
obligations of the Company and its Subsidiaries as pursuant to their stock and
employee benefit plans). To the best of such counsel's knowledge, except as
referred to in the Prospectus, including options granted or to be granted
pursuant to stock and employee benefit plans described therein, there are no
outstanding warrants or options to purchase any shares of the capital stock of
the Company from the Company. There are no preemptive or other rights to
subscribe for or to purchase, nor any restriction upon the voting or transfer
of, any shares of the Common Stock, including any Common Stock issuable upon
conversion of any Offered Securities, in each case pursuant to the Company's
corporate charter or by-laws or any agreement or other instrument to which the
Company is a party known to such counsel;
(iii) To the best of such counsel's knowledge, there are no contracts
or other documents which are required to be described in the Prospectus or filed
as exhibits to the Registration Statement by the Securities Act or by the Rules
and Regulations which have not been described in the Prospectus or filed as
exhibits to the Registration Statement or incorporated therein by reference
under the Rules and Regulations;
(iv) The documents incorporated by reference in the Prospectus
(other than the financial statements and related schedules therein, as to which
such counsel need express no opinion), when they were filed with the Commission
complied as to form in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission thereunder;
(v) To the best of such counsel's knowledge and except as described
in the Registration Statement or the Prospectus, there are no agreements or
understandings between the Company and any person granting such person the right
to require the Company to file a registration statement under the Securities Act
with respect to any securities of the Company owned or to be owned by such
person or to require the Company to include such securities in the securities
registered pursuant to the Registration Statement or in any securities being
registered pursuant to any other registration statement filed by the Company
under the Securities Act;
(vi) To the best of such counsel's knowledge, and other than as set
forth in the Registration Statement or the Prospectus, there are no legal or
governmental proceedings pending to which the Company or any of its Subsidiaries
is a party or of which any material property or assets of the Company or any of
its Subsidiaries is the subject which, if determined adversely to the Company or
any of its Subsidiaries, would have a material adverse effect on the
consolidated financial condition, shareholders' equity, results of operations,
business or prospects of the Company and its Subsidiaries; and to the best of
such counsel's knowledge, no such proceedings are threatened by governmental
authorities or threatened by others;
(vii) If the Offered Securities are Debt Securities: The Debt
Securities have been duly and validly authorized by the Company and, when duly
executed, issued and delivered by the Company, and authenticated by the Trustee
pursuant to the provisions of the
<PAGE>
-17-
Indenture, against payment therefor as provided in this Agreement, will
constitute valid and legally binding obligations of the Company entitled to the
benefits of the Indenture and enforceable against the Company in accordance with
their terms, except as the enforceability thereof may be limited by applicable
bankruptcy laws and by general equitable principles (regardless of whether the
issue of enforceability is considered in a proceeding in equity or at law), and
the Debt Securities conform as to legal matters in all material respects to the
description thereof contained in the Prospectus.
(viii) If the Offered Securities are Debt Securities: The Indenture
has been duly authorized, executed and delivered by the Company, and (assuming
due execution and delivery by the Trustee) constitutes a valid and legally
binding obligation of the Company enforceable against the Company in accordance
with its terms, except as the enforceability thereof may be limited by
applicable bankruptcy laws and by general equitable principles (regardless of
whether the issue of enforceability is considered in a proceeding in equity or
at law); and the Indenture conforms as to legal matters in all material respects
to the description thereof contained in the Prospectus;
(ix) If the Offered Securities are shares of Common Stock: The
unissued shares of the Common Stock have been duly and validly authorized and,
when issued and delivered against payment therefor as provided in this
Agreement, such shares will be duly and validly issued, fully paid and non-
assessable; and the Common Stock conforms as to legal matters in all material
respects to the description thereof contained in the Prospectus;
(x) If the Offered Securities are convertible into shares of Common
Stock: The Common Stock reserved for issuance upon conversion of convertible
Debt Securities has been validly authorized and reserved for such purpose; and,
if and when any of such convertible Debt Securities are converted into shares of
Common Stock in accordance with the conversion rights so provided, such shares
of Common Stock will be validly issued, fully paid and non-assessable and
delivered in accordance with the terms of the Company's corporate charter and
by-laws;
(xi) This Agreement has been duly authorized, executed and delivered
by the Company;
(xii) The issue and sale of the Offered Securities being delivered on
the Closing Date by the Company and the compliance by the Company with all of
the provisions of this Agreement and the Indenture, and the consummation of the
transactions contemplated hereby and thereby, will not conflict with or result
in a breach or violation of any of the terms or provisions of, or constitute a
default under, any material indenture, mortgage, deed of trust, loan agreement
or other agreement known to such counsel to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound or to which any of the property or assets of the Company or any of its
Subsidiaries is subject except for such conflicts, breaches, violations or
defaults which would not have a material adverse effect on the consolidated
financial condition, shareholders' equity, results of operations or business of
the Company and its Subsidiaries taken as a whole, nor will such actions result
in any violation of
<PAGE>
-18-
the charter or by-laws of the Company or any provisions of any State or Federal
statute or any order, rule or regulation known to such counsel of any court or
governmental agency or body having jurisdiction over the Company or any of its
Subsidiaries or any of their respective material properties or assets (other
than statutes, orders, rules and regulations pertaining to securities laws
matters, which are addressed elsewhere in such opinion).
(xiii) Except for the registration of the Offered Securities under the
Securities Act and such consents, approvals, authorizations, registrations or
qualifications as may be required under the Exchange Act, the Trust Indenture
Act and applicable state securities laws or by the National Association of
Securities Dealers, Inc., in connection with the purchase and distribution of
the Offered Securities by the Underwriters, no consent, approval, authorization
or order of, or filing or registration with, any such court or governmental
agency or body is required for the execution, delivery and performance of this
Agreement or the Indenture by the Company and the consummation by the Company of
the transactions contemplated hereby and thereby.
(xiv) The Registration Statement was declared effective under the
Securities Act and the Indenture was qualified under the Trust Indenture Act as
of the date specified in such opinion, the Prospectus was filed with the
Commission pursuant to the subparagraph of Rule 424 specified in such opinion on
the date specified therein and no stop order suspending the effectiveness of the
Registration Statement has been issued and, to the best of such counsel's
knowledge, no proceeding for that purpose is pending or threatened by the
Commission;
(xv) The statements contained in the Prospectus under the captions
relating to the Offered Securities insofar as they describe federal statutes,
rules and regulations, or portions thereof, constitute accurate descriptions
thereof in all material respects; and
(xvi) The Registration Statement, as of the Effective Date, and the
Prospectus, as of the date it was filed with the Commission and as of the
Closing Date, and any further amendments or supplements thereto made by the
Company prior to the applicable Closing Date (other than the financial
statements and related schedules therein and all other financial and statistical
data included therein or omitted therefrom and other than the Form T-1, as to
which such counsel need express no opinion) complied as to form in all material
respects with the requirements of the Securities Act and the Rules and
Regulations; and the Indenture conforms in all material respects to the
requirements of the Trust Indenture Act and the applicable rules and regulations
thereunder.
In rendering the foregoing opinions, such counsel may state that his
opinion is limited to matters governed by the federal laws of the United States
of America, the Delaware General Corporation Law and the laws of the
Commonwealth of Massachusetts.
In addition, such counsel shall also have furnished to the
Underwriters a written statement, addressed to the Underwriters and dated the
Closing Date, in form and substance satisfactory to the Underwriters, to the
effect that such counsel has acted as counsel to the Company in connection with
the preparation of the Registration Statement, and based on the
<PAGE>
-19-
foregoing, such counsel does not believe that (i) the Registration Statement
(other than the financial statements and related schedules and all other
financial and statistical data included or incorporated by reference therein or
omitted therefrom, and other than the Form T-1, as to which such counsel shall
express no opinion or belief), as of the Effective Date, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein not
misleading, or that the Prospectus (other than the financial statements and
related schedules and all other financial and statistical data included or
incorporated by reference therein or omitted therefrom, and other than the Form
T-1, as to which such counsel shall express no opinion or belief), as of its
date and the applicable Closing Date, contains any untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading or (ii) any document incorporated by
reference in the Prospectus (other than the financial statements and related
schedules and all other financial and statistical data included or incorporated
by reference therein or omitted therefrom, and other than the Form T-1, as to
which such counsel shall express no opinion or belief) contained an untrue
statement of a material fact or omitted to state a material fact necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The foregoing opinion and statement may be
qualified by statements to the effect that such counsel does not assume any
responsibility for the accuracy, completeness or fairness of the statements
contained in the Registration Statement or the Prospectus except for the
statements made in the Prospectus under the captions relating to the designated
Offered Securities and insofar as such statements relate to the Offered
Securities and concern legal matters.
(e) If the applicable Prospectus Supplement refers to an opinion of
tax counsel for the Company relating to tax matters concerning the Offered
Securities, the Company shall have furnished to the Underwriters an opinion of
such counsel, addressed to the Underwriters, dated the Closing Date, to the
effect that the opinion of such counsel referred to in the Prospectus is
confirmed.
(f) At the Closing Date, counsel for the Underwriters shall have
been furnished with such documents and opinions as they may reasonably require
for the purpose of enabling them to pass upon the issuance and sale of the
Offered Securities as contemplated herein and in each Terms Agreement and
related proceedings, or in order to evidence the accuracy of any of the
representations or warranties, or the fulfillment of any of the conditions,
herein and therein contained; and the Underwriters shall have received from
counsel for the Underwriters, such opinion or opinions, dated the Closing Date,
with respect to the issuance and sale of the Offered Securities, the
Registration Statement, the Prospectus and other related matters as the
Underwriters may reasonably require.
(g) At the time of execution of each Terms Agreement, the
Underwriters shall have received from each of Arthur Andersen LLP and any other
accounting firm which has audited financial statements included in the
Registration Statement, letters, in form and substance satisfactory to the
Underwriters, addressed to the Underwriters and dated the date of such Terms
Agreement (i) confirming that they are independent public accountants with
respect to the
<PAGE>
-20-
Company or such other corporation, and their respective Subsidiaries, as the
case may be, within the meaning of the Securities Act and are in compliance with
the applicable requirements relating to the qualification of accountants under
Rule 2-01 of Regulation S-X of the Commission, (ii) stating as of the date
thereof (or with respect to matters involving changes or developments since the
respective dates as of which specified financial information is given in the
Prospectus, as of a date not more than five days prior to the date thereof), the
conclusions and findings of such firm with respect to the financial information
and other matters ordinarily covered by "accountants' comfort letters" to
underwriters in connection with registered public offerings in accordance with
Statement of Auditing Standards No. 72.
(h) With respect to the letters of the accounting firms referred to
in the preceding paragraph and delivered to the Underwriters concurrently with
the execution of each Terms Agreement (the "initial letters"), the Company shall
---------------
have furnished to the Underwriters letters (the "bring-down letters") of such
------------------
accountants, addressed to the Underwriters and dated the Closing Date (i)
confirming that they are independent public accountants within the meaning of
the Securities Act and are in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X
of the Commission, (ii) stating, as of the date of the bring-down letter (or,
with respect to matters involving changes or developments since the respective
dates as of which specified financial information is given in the Prospectus, as
of a date not more than five business days prior to the date of the bring-down
letter), the conclusions and findings of such firm with respect to the financial
information and other matters covered by the initial letters and (iii)
confirming in all material respects the conclusions and findings set forth in
the initial letters.
(i) At each Closing Date, there shall not have been, since the
respective dates as of which information is given in the Registration Statement
and the Prospectus as in effect at the time of execution of the applicable Terms
Agreement, any material adverse change in the consolidated financial condition,
stockholders' equity, results of operations or business of the Company and its
Subsidiaries taken as a whole, whether or not arising in the ordinary course of
business.
(j) The Company shall have furnished to the Representatives a
certificate of the Company, signed by the Chairman of the Board, Chief Executive
Officer, the President or a Vice President and the Treasurer or Secretary of the
Company, dated the Closing Date, to the effect that the signers of such
certificate have carefully examined the Registration Statement, the Prospectus,
any supplements to the Prospectus and this Agreement and that, to the best of
such person's knowledge:
(i) the representations and warranties of the Company in
this Agreement are true and correct on and as of the date of the
certificate with the same effect as if made on the date of the certificate,
and the Company has complied with all the agreements and satisfied all the
conditions on its part to be performed or satisfied at or prior to the
Closing Date;
<PAGE>
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(ii) no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that purpose
have been instituted or, to such person's knowledge, threatened; and
(iii) since the respective dates as of which information is
given in the Registration Statement and the Prospectus as in effect at the
time of execution of the applicable Terms Agreement, there has been no
material adverse change in the consolidated financial condition,
stockholders' equity, results of operations or business of the Company and
its Subsidiaries taken as a whole, whether or not arising from transactions
in the ordinary course of business, except as set forth in or contemplated
in such Prospectus.
(k) (i) Neither the Company nor any of its Subsidiaries shall
have sustained since the respective dates as of which information is given in
the Registration Statement and the Prospectus as in effect at the time of
execution of the applicable Terms Agreement, any loss or interference with its
business from fire, explosion, flood or other calamity, whether or not covered
by insurance, or from any labor dispute or court or governmental action, order
or decree, which is material to the Company and its Subsidiaries taken as a
whole, otherwise than as set forth, contemplated or incorporated by reference in
the Prospectus or in any of the documents incorporated by reference therein, or
(ii) since the date of the most recent financial statements of
the Company contained in the Registration Statement and the Prospectus as in
effect at the time of execution of the applicable Terms Agreement, there shall
not have been any change in the capital stock or consolidated long-term debt of
the Company, except as set forth in the letters described in paragraphs (g )
or (h ) of this Section 7, or any material adverse change in the general
affairs, operations, business, prospects, key personnel, capitalization,
financial condition, shareholders' equity or results of operations of the
Company and its Subsidiaries taken as a whole, otherwise than as set forth in or
contemplated by the Prospectus as in effect at the time of execution of the
applicable Terms Agreement, the effect of which, in any such case described in
clause (i) or (ii), is, in the judgment of the Representatives or a majority in
interest of the Underwriters, so material and adverse as to make it
impracticable or inadvisable to proceed with the public offering or the delivery
of the Offered Securities being delivered on such Closing Date on the terms and
in the manner contemplated in the Prospectus.
(l) Subsequent to the execution and delivery of this Agreement and
prior to the Closing Date, (i) no downgrading shall have occurred in the rating
accorded the Company's securities by any "nationally recognized statistical
rating organization", as that term is defined by the Commission for purposes of
Rule 436(g)(2) of the Rules and Regulations and (ii) no such organization shall
have publicly announced that it has under surveillance or review, with possible
negative implications, its rating of any of the Company's securities.
(m) Subsequent to the execution and delivery of this Agreement
there shall not have occurred any of the following:
<PAGE>
-22-
(i) trading in securities generally on the New York Stock
Exchange, the American Stock Exchange, the NASDAQ National Market or in the
over-the-counter market, or trading in any securities of the Company on any
exchange or in the over-the-counter market, shall have been suspended or minimum
prices shall have been established on any such exchange or such market by the
Commission, by such exchange or by any other regulatory body or governmental
authority having jurisdiction,
(ii) a general banking moratorium shall have been declared
by federal or New York state authorities;
(iii) the United States shall have become engaged in
hostilities, there shall have been an escalation in hostilities involving the
United States or there shall have been a declaration of a national emergency or
war by the United States; or
(iv) there shall have occurred such a material adverse
change in general economic or financial conditions (or such a material adverse
change in international conditions the effect of which on the financial markets
in the United States shall be such) as to make it, in the judgment of the
Representatives or a majority in interest of the several Underwriters,
impracticable or inadvisable to proceed with the public offering or delivery of
the Offered Securities being delivered on such Closing Date on the terms and in
the manner contemplated in the Prospectus.
All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in substance reasonably satisfactory to
counsel for the Underwriters. The Company may rely on any waiver of such
conditions given by the Underwriters or counsel to the Underwriters as if given
by the Underwriters.
8. Indemnification and Contribution. (a) The Company shall indemnify
--------------------------------
and hold harmless each Underwriter, its officers and employees and each such
person, if any, who controls any Underwriter, within the meaning of the
Securities Act, from and against any and all loss, claim, damage or liability,
joint or several, or any action in respect thereof (including, but not limited
to any losses, claims, damages, liabilities or actions relating to purchases and
sales of the Offered Securities), to which that Underwriter, officer, employee
or controlling person may become subject, under the Securities Act or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is
based upon,
(i) any untrue statement or alleged untrue statement made by the
Company in Section 1 hereof ; or
(ii) any untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Prospectus, the Registration
Statement or the Prospectus or in any amendment or supplement thereto; or
<PAGE>
-23-
(iii) the omission or alleged omission to state in any Preliminary
Prospectus, the Registration Statement or the Prospectus, or in any amendment or
supplement thereto, any material fact required to be stated therein or necessary
to make the statements therein (in the case of the Prospectus, in light of the
circumstances in which they were made) not misleading; or
(iv) any act or failure to act or any alleged act or failure to
act by any Underwriter in connection with, or relating in any manner to, the
Offered Securities or the offering contemplated hereby, and which is included as
part of or referred to in any loss, claim, damage, liability or action arising
out of or based upon matters covered by clause (ii) or (iii) above (provided
that the Company shall not be liable under this clause (iv) to the extent that
it is determined in a final judgment by a court of competent jurisdiction that
such loss, claim, damage, liability or action resulted directly or indirectly
from any such acts or failures to act undertaken or omitted to be taken by such
Underwriter through its gross negligence or willful misconduct or breach of this
Agreement);
and shall reimburse each Underwriter and each such officer, employee or
controlling person within 30 days after receiving written demand therefor for
any legal or other expenses reasonably incurred by that Underwriter, officer,
employee or controlling person in connection with investigating or defending or
preparing to defend against any such loss, claim, damage, liability or action;
provided, however, that the Company shall not be liable in any such case to the
extent that any such loss, claim, damage, liability or action arises out of, or
is based upon, any untrue statement or alleged untrue statement or omission or
alleged omission in any Preliminary Prospectus, the Registration Statement or
the Prospectus, or in any such amendment or supplement in reliance upon and in
conformity with written information concerning such Underwriter furnished to the
Company through any Underwriter by or on behalf of any Underwriter specifically
for inclusion therein; and provided, further, that the Company shall not be
liable to any Underwriter under the indemnity agreement in this subsection with
respect to any Preliminary Prospectus to the extent that any such loss, claim,
damage, liability or any action in respect thereof of such Underwriter results
from the fact that such Underwriter sold Offered Securities to a person as to
whom it shall be established that there was not sent or given, at or prior to
the written confirmation of such sale, a copy of the Prospectus or of the
Prospectus as then amended or supplemented in any case where such delivery is
required by the Securities Act if the Company has previously furnished copies
thereof in sufficient quantity to such Underwriter and the loss, claim, damage
or liability of such Underwriter results from an untrue statement or omission of
a material fact contained in the Preliminary Prospectus which was (i) identified
to such Underwriter at or prior to the earlier of the filing with the Commission
or the furnishing to such Underwriter of the Prospectus and (ii) corrected in
the Prospectus or in the Prospectus as then amended or supplemented. The
foregoing indemnity agreement is in addition to any liability which the Company
may otherwise have to any Underwriter or to any officer, employee or controlling
person of that Underwriter.
(b) Each Underwriter, severally and not jointly, shall indemnify and
hold harmless the Company and its officers and employees, each of their
respective directors, and each person, if any, who controls the Company within
the meaning of the Securities Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof (including, but
<PAGE>
-24-
not limited to, any losses, claims, damages, liabilities or actions relating to
the purchases and sales of Offered Securities), to which the Company or any such
director, officer or controlling person may become subject, under the Securities
Act or otherwise, insofar as such loss, claim, damage, liability or action
arises out of, or is based upon,
(i) any untrue statement or alleged untrue statement of a material
fact contained in any Preliminary Prospectus, the Registration Statement or the
Prospectus or in any amendment or supplement thereto or
(ii) the omission or alleged omission to state in any Preliminary
Prospectus, the Registration Statement or the Prospectus, or in any amendment or
supplement thereto, any material fact required to be stated therein or necessary
to make the statements therein not misleading, but in each case only to the
extent that the untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with written
information concerning such Underwriter furnished to the Company through the
Underwriters by or on behalf of that Underwriter specifically for inclusion
therein, and shall reimburse, within 30 days after receiving written demand
therefor, the Company and any such director, officer or controlling person for
any legal or other expenses reasonably incurred by the Company or any such
director, officer or controlling person in connection with investigating or
defending or preparing to defend against any such loss, claim, damage, liability
or action. The foregoing indemnity agreement is in addition to any liability
which any Underwriter may otherwise have to the Company or any such director,
officer, employee or controlling person.
(c) Promptly after receipt by an indemnified party under this Section 8
of notice of any claim or the commencement of any action, the indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party under this Section 8, notify the indemnifying party in writing of the
claim or the commencement of that action; provided, however, that the failure to
notify the indemnifying party shall not relieve it from any liability which it
may have under this Section 8 except to the extent it has been materially
prejudiced by such failure and, provided further, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have to
an indemnified party otherwise than under this Section 8. If any such claim or
action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided that the
Representatives shall have the right to employ counsel to represent you and
those other Underwriters who may be subject to liability arising out of any
claim in respect of which indemnity may be sought by the Underwriters against
the Company hereunder if, in your reasonable judgment, it is advisable for you
and those Underwriters to be represented by separate counsel, and in that event
the fees and expenses of such separate counsel shall be paid by the indemnifying
party or parties, and provided, further, in no event, shall the
<PAGE>
-25-
indemnifying party or parties be responsible for the expenses of more than one
separate counsel for all such indemnified parties.
No indemnifying party shall (i) without the prior written consent of the
indemnified parties (which consent shall not be unreasonably withheld), settle
or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding, or (ii) be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with the consent of the indemnifying party or if there
be a final judgment for the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment.
(d) If the indemnification provided for in this Section 8 shall for any
reason be unavailable to or insufficient to hold harmless an indemnified party
under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability,
or any action in respect thereof, referred to therein, then each indemnifying
party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability, or action in respect thereof,
(i) in such proportion as shall be appropriate to reflect the
relative benefits received by the Company on the one hand and the Underwriters
on the other from the offering of the Offered Securities or
(ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the fault of
the Company on the one hand and the Underwriters on the other with respect to
the statements or omissions which in such loss, claim, damage or liability, or
action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand
and the Underwriters on the other with respect to such offering shall be deemed
to be in the same proportion as the total net proceeds from the offering of the
Offered Securities purchased under this Agreement (before deducting expenses)
received by the Company on the one hand, and the total underwriting discounts
and commissions received by the Underwriters with respect to the Offered
Securities purchased under this Agreement, on the other, bear to the total gross
proceeds from the offering of the Offered Securities under this Agreement in
each case as set forth in the table on the cover page of the Prospectus. The
relative fault shall be determined by reference to whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company, on the one hand,
or the Underwriters on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Underwriters agree that it would not
be just and equitable if contributions pursuant to this
<PAGE>
-26-
Section were to be determined by pro rata allocation (even if the Underwriters
were treated as one entity for such purpose) or by any other method of
allocation which does not take into account the equitable considerations
referred to herein. The amount paid or payable by an indemnified party as a
result of the loss, claim, damage or liability, or action in respect thereof,
referred to above in this Section 8 shall be deemed to include, for purposes of
this Section 8(d), any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 8(d), no Underwriter
shall be required to contribute any amount in excess of the amount by which the
total price at which the Offered Securities underwritten by it and distributed
to the public was offered to the public exceeds the amount of any damages which
such Underwriter has otherwise paid or become liable to pay by reason of any
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The Underwriters' obligations
to contribute as provided in this Section 8(d) are several in proportion to
their respective underwriting obligations and not joint. The provisions of this
Section 8(d) shall be applied separately to each offering of Offered Securities.
(e) The Underwriters severally confirm that the following statements
are correct and constitute information concerning such Underwriters furnished in
writing to the Company by or on behalf of the Underwriters specifically for
inclusion in the Registration Statement and the Prospectus: (i) the legend in
the Prospectus concerning stabilization and over-allotment by the Underwriters,
(ii) the statements with respect to the public offering of the Offered
Securities by the Underwriters set forth on the cover page of the Prospectus and
(iii) the statements concerning concessions, allowances and reallowances set
forth under the caption "Underwriting" in the Prospectus.
9. Defaulting Underwriters. If on the applicable Closing Date, any
-----------------------
Underwriter defaults in the performance of its obligations under this Agreement,
the remaining non-defaulting Underwriters shall be obligated to purchase (in
addition to the amount of Offered Securities which such Underwriters are
obligated to purchase pursuant to Section 2) the Offered Securities which the
defaulting Underwriter agreed but failed to purchase on such Closing Date in the
respective proportions to the amount of Offered Securities set opposite the
names of each remaining non-defaulting Underwriter in Exhibit A to the
---------
applicable Terms Agreement bears to the amount of the Offered Securities set
opposite the names of all the remaining non-defaulting Underwriters in Exhibit A
---------
to the applicable Terms Agreement; provided, however, that the remaining non-
defaulting Underwriters shall not be obligated to purchase any of the Offered
Securities on such Closing Date if the total number of Offered Securities which
the defaulting Underwriter or Underwriters agreed but failed to purchase on such
date exceeds 10% of the total amount of the Offered Securities to be purchased
on such Closing Date. If the foregoing maximum percentage is exceeded, the
remaining non-defaulting Underwriters, or those other underwriters satisfactory
to the Underwriters who so agree, shall have the right, but shall not be
obligated, to purchase, in such proportion as may be agreed upon among them, all
the Offered Securities to be purchased on such Closing Date. If the non-
defaulting Underwriters or the other underwriters satisfactory to the
Underwriters do not elect to purchase the Offered Securities
<PAGE>
-27-
which the defaulting Underwriter or Underwriters agreed but failed to purchase,
this Agreement shall. terminate without liability on the part of any non-
defaulting Underwriter or the Company, except that the Company and the
Underwriters will continue to be liable for the payment of expenses to the
extent set forth in Sections 6 and 11 and continue to be liable under Section 8.
As used in this Agreement, the term "Underwriter" includes, for all purposes of
-----------
this Agreement unless the context requires otherwise, any party not listed in
Exhibit A to any applicable Terms Agreement who, pursuant to this Section 9,
- ---------
purchases Offered Securities which a defaulting Underwriter agreed but failed to
purchase. Nothing contained herein shall relieve a defaulting Underwriter of any
liability it may have to the Company for damages caused by its default. If other
underwriters are obligated or agree to purchase the Offered Securities of a
defaulting or withdrawing Underwriter, either the Underwriters or the Company
may postpone the applicable Closing Date for up to seven full business days in
order to effect any changes that in the reasonable opinion of counsel for the
Company or counsel for the Underwriters may be necessary in the Registration
Statement, the Prospectus or in any other document or arrangement necessary to
consummate the transactions described herein.
10. Termination. Except as provided in the applicable Prospectus, the
-----------
obligations of the Underwriters under this Agreement may be terminated by the
Representatives or by Underwriters which have agreed to purchase in the
aggregate 50% or more of the aggregate amount of Offered Securities by notice
given to and received by the Company prior to delivery of and payment for the
Offered Securities if, prior to that time, any of the events described in
Sections 7(i), (k), (l) or (m) (but as to subsection (l) only, only if the
offering is of Debt Securities) shall have occurred or if the Underwriters shall
decline to purchase the Offered Securities for any reason permitted under this
Agreement.
11. Reimbursement of Underwriters' Expenses. If the Company shall fail
---------------------------------------
to tender the Offered Securities for delivery to the Underwriters by reason of
any failure, refusal or inability on the part of the Company to perform any
agreement on its part to be performed, or because any other condition of the
Underwriters' obligations hereunder required to be fulfilled by the Company is
not fulfilled, the Company will reimburse the Underwriters for all reasonable
out-of-pocket expenses (including fees and disbursements of counsel) incurred by
the Underwriters in connection with this Agreement and the proposed purchase of
the Offered Securities, and upon demand the Company shall pay the full amount
thereof to the Underwriters. If this Agreement is terminated pursuant to Section
9 by reason of the default of one or more Underwriters, the Company shall not be
obligated to reimburse any defaulting Underwriter for any of its expenses
incurred in connection with this Agreement.
12. Notices, etc. All statements, requests, notices and agreements
------------
hereunder shall be in writing, and:
(a) if to the Underwriters, shall be delivered or sent by mail,
telex or facsimile transmission, if Lehman Brothers Inc. is one of the
Underwriters, c/o Lehman Brothers Inc., Three World Financial Center, New York,
New York 10285, Attention: Syndicate Department (Fax: 212-526-6588), with a
copy, in the case of any notice pursuant to Section 8(c), to the Director of
Litigation, Office of the General Counsel, Lehman Brothers Inc., World Financial
<PAGE>
-28-
Center, 10th Floor, New York, NY 10285, and if Salomon Brothers Inc is one of
the Underwriters, c/o Salomon Brothers Inc, Seven World Trade Center, New York,
New York, 10048, Attention: Legal Department (Fax: 212-783-1752); and
(b) if to the Company, shall be delivered or sent by mail, telex or
facsimile transmission to the address of the Company set forth in the
Registration Statement, Attention: General Counsel (Fax: (617) 622-1283).
Any such statements, requests, notices or agreements shall take effect at the
time of receipt thereof. The Company shall be entitled to act and rely upon any
request, consent, notice or agreement given or made on behalf of the
Underwriters by the Representatives.
13. Persons Entitled to Benefit of Agreement. This Agreement shall
----------------------------------------
inure to the benefit of and be binding upon the Underwriters, the Company and
its successors. This Agreement and the terms and provisions hereof are for the
sole benefit of only those persons, except that (A) the representations,
warranties, indemnities and agreements of the Company contained in this
Agreement shall also be deemed to be for the benefit of the person or persons,
if any, who control any Underwriter within the meaning of Section 15 of the
Securities Act and (B) the indemnity agreement of the Underwriters contained in
Section 8(b) of this Agreement shall be deemed to be for the benefit of the
directors of the Company, officers of the Company and any person controlling the
Company within the meaning of Section 15 of the Securities Act. Nothing in this
Agreement is intended or shall be construed to give any person, other than the
persons referred to in this Section 13, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision contained herein.
14. Survival. The respective indemnities, representations, warranties
--------
and agreements of the Company and the Underwriters contained in this Agreement
or made by or on behalf of them, respectively, pursuant to this Agreement, shall
survive the delivery of and payment for any Offered Securities and shall remain
in full force and effect, regardless of any investigation made by or on behalf
of any of them or any person controlling any of them.
15. Definition of the Terms "Business Day," "Significant Subsidiary" and
--------------------------------------------------------------------
"Subsidiary." For purposes of this Agreement, (a) "business day" means any day
- ----------- ------------
on which the New York Stock Exchange, Inc. is open for trading, (b) "Subsidiary"
----------
has the meaning set forth in Rule 405 of the Rules and Regulations and (c)
"Significant Subsidiary" has the meaning set forth in Item 1-02(w) of the
- -----------------------
Regulation S-X of the Rules and Regulations.
16. Governing Law. This Agreement shall be governed by and construed in
-------------
accordance with the laws of Massachusetts.
17. Counterparts. This Agreement may be executed in counterparts and,
------------
if executed in more than one counterpart, the executed counterparts shall each
be deemed to be an original but all such counterparts shall together constitute
one and the same instrument.
<PAGE>
-29-
18. Headings. The headings herein are inserted for convenience of
--------
reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.
[Remainder of page intentionally left blank]
<PAGE>
-30-
If the foregoing correctly sets forth the agreement among the Company and
the Underwriters, please indicate your acceptance in the space provided for that
purpose below.
Very truly yours,
THERMO ELECTRON CORPORATION
By:
----------------------------
Name:
Title:
Accepted:
LEHMAN BROTHERS INC.
By:
-------------------------
Name:
Title:
SALOMON BROTHERS INC
By:
-------------------------
Name:
Title:
<PAGE>
EXHIBIT 4.1
================================================================================
THERMO ELECTRON CORPORATION,
Issuer
to
BANKERS TRUST COMPANY,
Trustee
INDENTURE
Dated as of ________, 1997
DEBT SECURITIES
================================================================================
<PAGE>
Reconciliation and Tie between
Trust Indenture Act of 1939 (the "Trust Indenture Act") and Indenture
<TABLE>
<CAPTION>
Trust Indenture Act Section Indenture Section
--------------------------- -----------------
<S> <C>
Section 310(a)(1)..........................................607
(a)(2)....................................................607
(b).......................................................608
Section 311................................................612
Section 312(a).............................................701
(b).......................................................702
(c).......................................................702
Section 313(a).............................................703
(b)(2)....................................................703
(c).......................................................703
(d).......................................................703
Section 314(a).............................................704
(c)(1)....................................................102
(c)(2)....................................................102
(e).......................................................102
(f).......................................................102
Section 315(a).............................................601
(b).......................................................602
(c)..................................................601, 602
(d).......................................................601
(e).......................................................515
Section 316(a).............................................101
(a)(1)(A)............................................502, 512
(a)(1)(B).................................................513
(b).......................................................508
Section 317(a)(1)..........................................503
(a)(2)....................................................504
(b)......................................................1003
Section 318(a).............................................108
</TABLE>
Note: This reconciliation and tie shall not, for any purpose, be deemed to be
part of the Indenture.
Attention should also be directed to Section 318(c) of the Trust Indenture Act,
which provides that the provisions of Sections 310 to and including 317 are a
part of and govern every qualified indenture, whether or not physically
contained herein.
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
ARTICLE ONE: DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION........2
Section 101. Definitions..................................................2
Section 102. Compliance Certificates and Opinions........................16
Section 103. Form of Documents Delivered to Trustee......................16
Section 104. Acts of Holders.............................................17
Section 105. Notices, Etc. to Trustee, Company...........................19
Section 106. Notice to Holders of Securities; Waiver.....................20
Section 107. Language of Notices.........................................21
Section 108. Conflict with Trust Indenture Act...........................21
Section 109. Effect of Headings and Table of Contents....................21
Section 110. Successors and Assigns......................................21
Section 111. Separability Clause.........................................21
Section 112. Benefits of Indenture.......................................21
Section 113. Governing Law...............................................21
Section 114. Legal Holidays..............................................22
Section 115. Taxes.......................................................22
ARTICLE TWO: SECURITIES AND GUARANTEE FORMS................................23
Section 201. Forms Generally.............................................23
Section 202. [INTENTIONALLY OMITTED].....................................23
Section 203. Form of Trustee's Certificate of Authentication.............24
Section 204. Securities in Global Form...................................24
Section 205. Form of Conversion Notice...................................25
ARTICLE THREE: THE SECURITIES..............................................25
Section 301. Amount Unlimited; Issuable in Series........................25
Section 302. Currency; Denominations.....................................29
Section 303. Execution, Authentication, Delivery and Dating..............29
Section 304. Temporary Securities........................................31
Section 305. Registration, Transfer and Exchange.........................34
Section 306. Mutilated, Destroyed, Lost and Stolen Securities............37
Section 307. Payment of Interest and Certain Additional Amounts; Rights
to Interest and Certain Additional Amounts Preserved.....39
Section 308. Persons Deemed Owners.......................................42
Section 309. Cancellation................................................42
Section 310. Computation of Interest.....................................43
Section 311. CUSIP Numbers...............................................43
Section 312. Notification of Withholding.................................43
ARTICLE FOUR: SATISFACTION AND DISCHARGE OF INDENTURE......................44
Section 401. Satisfaction and Discharge..................................44
Section 402. Defeasance and Covenant Defeasance..........................45
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Section 403. Application of Trust Money..................................49
ARTICLE FIVE: REMEDIES.....................................................50
Section 501. Events of Default...........................................50
Section 502. Acceleration of Maturity; Rescission and Annulment..........52
Section 503. Collection of Indebtedness and Suits for Enforcement by
Trustee..................................................53
Section 504. Trustee May File Proofs of Claim............................54
Section 505. Trustee May Enforce Claims Without Possession of Securities
or Coupons...............................................55
Section 506. Application of Money Collected..............................55
Section 507. Limitations on Suits........................................55
Section 508. Unconditional Right of Holders to Receive Principal and Any
Premium, Interest and Additional Amounts.................56
Section 509. Restoration of Rights and Remedies..........................56
Section 510. Rights and Remedies Cumulative..............................57
Section 511. Delay or Omission not Waiver................................57
Section 512. Control by Holders of Securities............................57
Section 513. Waiver of Past Defaults.....................................57
Section 514. Waiver of Usury, Stay or Extension Laws.....................58
Section 515. Undertaking for Costs.......................................58
ARTICLE SIX: THE TRUSTEE...................................................59
Section 601. Certain Rights of Trustee; Certain Duties and
Responsibilities.........................................59
Section 602. Notice of Defaults..........................................60
Section 603. Not Responsible for Recitals or Issuance of Securities......61
Section 604. May Hold Securities; Act as Trustee Under Other Indenture...61
Section 605. Money Held in Trust.........................................61
Section 606. Compensation and Reimbursement..............................62
Section 607. Corporate Trustee Required; Eligibility.....................62
Section 608. Resignation and Removal; Appointment of Successor...........63
Section 609. Acceptance of Appointment by Successor......................64
Section 610. Merger, Conversion, Consolidation or Succession to Business.65
Section 611. Preferential Collection of Claims Against Company...........66
Section 612. Appointment of Authenticating Agent.........................66
Section 613. Conflicting Interests.......................................68
Section 614. Protection of Agents........................................68
ARTICLE SEVEN: HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY............69
Section 701. Company to Furnish Trustee Names and Addresses of Holders...69
Section 702. Preservation of Information; Communications to Holders......69
Section 703. Reports by Trustee..........................................69
Section 704. Reports by Company..........................................70
ARTICLE EIGHT: CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER...............71
</TABLE>
ii
<PAGE>
<TABLE>
<S> <C>
Section 801. Company May Consolidate, Etc., Only on Certain Terms........71
Section 802. Successor Corporation Substituted...........................72
ARTICLE NINE: SUPPLEMENTAL INDENTURES......................................72
Section 901. Supplemental Indentures Without Consent of Holders..........72
Section 902. Supplemental Indentures With Consent of Holders.............74
Section 903. Execution of Supplemental Indentures........................75
Section 904. Effect of Supplemental Indentures...........................75
Section 905. Reference in Securities to Supplemental Indentures..........75
Section 906. Conformity with Trust Indenture Act.........................76
ARTICLE TEN: COVENANTS.....................................................76
Section 1001. Payment of Principal, Any Premium, Interest and Additional
Amounts..................................................76
Section 1002. Maintenance of Office or Agency.............................76
Section 1003. Money for Securities Payments to be Held in Trust...........78
Section 1004. Additional Amounts..........................................79
Section 1005. Statement as to Compliance..................................83
Section 1006. Corporate Existence.........................................83
ARTICLE ELEVEN: REDEMPTION OF SECURITIES...................................83
Section 1101. Applicability of Article....................................83
Section 1102. Election to Redeem; Notice to Trustee.......................84
Section 1103. Selection by Trustee of Securities to be Redeemed...........85
Section 1104. Notice of Redemption........................................86
Section 1105. Deposit of Redemption Price.................................87
Section 1106. Securities Payable on Redemption Date.......................88
Section 1107. Securities Redeemed in Part.................................89
ARTICLE TWELVE: CONVERSION OF SECURITIES...................................89
Section 1201. Conversion Privilege and Conversion Price...................89
Section 1202. Exercise of Conversion Privilege............................91
Section 1203. Fractions of Shares.........................................92
Section 1204. Adjustment of Conversion Price..............................93
Section 1205. Notice of Adjustments of Conversion Price...................95
Section 1206. Notice of Certain Corporate Action..........................96
Section 1207. Company to Reserve Common Stock.............................97
Section 1208. Taxes on Conversions........................................97
Section 1209. Covenant as to Common Stock.................................97
Section 1210. Cancellation of Converted Securities........................97
Section 1211. Provision in Case of Consolidation, Merger or Sale of
Assets...................................................97
Section 1212. Compliance with Governmental Requirements...................98
ARTICLE THIRTEEN: SINKING FUNDS............................................98
Section 1301. Applicability of Article....................................98
Section 1302. Satisfaction of Sinking Fund Payments With Securities.......98
Section 1303. Redemption of Securities for Sinking Fund...................99
</TABLE>
iii
<PAGE>
<TABLE>
<S> <C>
ARTICLE FOURTEEN: [INTENTIONALLY OMITTED].................................100
ARTICLE FIFTEEN: REPAYMENT AT THE OPTION OF HOLDERS.......................101
Section 1501. Applicability Of Article...................................101
Section 1502. Repayment Of Securities....................................102
Section 1503. Notice of Repayment........................................102
Section 1504. Exercise Of Option.........................................103
Section 1505. When Securities Presented For Repayment Become Due And
Payable.................................................103
Section 1506. Securities Repaid In Part..................................104
ARTICLE SIXTEEN: MEETINGS OF HOLDERS OF SECURITIES........................105
Section 1601. Purposes for Which Meetings May Be Called..................105
Section 1602. Call, Notice and Place of Meetings.........................105
Section 1603. Persons Entitled to Vote at Meetings.......................106
Section 1604. Quorum; Action.............................................106
Section 1605. Determination of Voting Rights; Conduct and Adjournment
of Meetings.............................................107
Section 1606. Counting Votes and Recording Action of Meetings............108
ARTICLE SEVENTEEN: [INTENTIONALLY OMITTED]................................108
ARTICLE EIGHTEEN: [INTENTIONALLY OMITTED].................................114
</TABLE>
<TABLE>
<CAPTION>
Exhibits
- --------
<S> <C>
Exhibit A Form Of Trustee's Certificate Of Authentication
Exhibit B Conversion Notice
Exhibit C Form of Certificate of Beneficial Ownership for Bearer
Securities to be Provided to the Euroclear Operator or to
Cedel Bank, societe anonyme
Exhibit D Form of Certificate to be Given by the Euroclear Operator
and Cedel Bank, societe anonyme
Exhibit E Option to Elect Repayment upon a Repayment Event
</TABLE>
iv
<PAGE>
INDENTURE, dated as of __________ __, 1997 (the "Indenture"), between
---------
Thermo Electron Corporation, a corporation duly organized and existing under the
laws of the State of Delaware (hereinafter called the "Company"), having its
-------
principal executive office located at 81 Wyman Street, Waltham, Massachusetts
02254-9046; and Bankers Trust Company, a banking corporation duly organized and
existing under the laws of the United States of America (hereinafter called the
"Trustee"), having its principal Corporate Trust Office located at Four Albany
-------
Street, 4th Floor, New York, New York 10006.
RECITALS:
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (hereinafter called the
"Securities"), unlimited as to principal amount, to bear such rates of interest,
----------
to mature at such time or times, to be issued in one or more series and to have
such other provisions as shall be fixed as provided in this Indenture.
All things necessary to make the Securities and any Coupons (as herein
defined), when executed by the Company and authenticated and delivered
hereunder, the valid obligations of the Company, and to make this Indenture a
valid agreement of the Company in accordance with its terms have been done.
This Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder that are required to be part of this
Indenture and, to the extent applicable, shall be governed by such provisions.
1
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NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders (as herein defined) thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the
Securities or of any series thereof and any Coupons (as herein defined), as
follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 101. Definitions.
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Except as otherwise expressly provided in or pursuant to this Indenture
or unless the context otherwise requires, for all purposes of this Indenture:
(1) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the
singular;
(2) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the
meanings assigned to them therein;
(3) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted
accounting principles in the United States of America and, except as
otherwise herein expressly provided, the terms "generally accepted
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accounting principles" or "GAAP" with respect to any computation
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required or permitted hereunder shall mean such accounting principles as
are generally accepted in the United States of America, consistently
applied, at the date of such computation;
(4) the words "Article" and "Section" refer to an Article and
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Section, respectively, of this Indenture;
(5) the words "herein," "hereof," "hereto" and "hereunder" and
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other words of similar import refer to this Indenture as a whole and not
to any particular Article, Section or other subdivision; and
(6) the word "or" is always used inclusively (for example, the
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phrase "A or B" means "A or B or both", not "either A or B but not
both").
Certain terms used principally in certain Articles hereof are defined in
those Articles.
"Act," when used with respect to any Holders, has the meaning specified
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in Section 104.
"Additional Amounts" has the meaning specified in Section 1004.
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"Affiliate" of any specified Person means any other Person directly or
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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
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pursuant to Section 612 to act on behalf of the Trustee to authenticate
Securities of one or more series.
"Authorized Newspaper" means a newspaper, in an official language of the
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place of publication or in the English language, customarily published on each
day that is a Business Day in the place of publication, whether or not published
on days that are Legal Holidays in the place of publication, and of general
circulation in each place in connection with which the term is used or in the
financial community of each such place. Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any day that is a Business Day in the
place of publication.
"Bankruptcy Law" has the meaning specified in Section 501.
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"Bearer Security" means any Security established pursuant to Section 201
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which is payable to bearer.
"Board of Directors," when used with reference to the Company means
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either the board of directors or any duly authorized committee of such board of
directors of the Company.
"Board Resolution," when used with reference to the Company, means a
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copy of one or more resolutions, certified by the Corporate Secretary or an
Assistant Corporate Secretary of the Company, to have been duly adopted by its
Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day," with respect to any Place of Payment, Place of
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Conversion or other location, means, unless otherwise specified with respect to
any Securities pursuant to Section 301, any day other than a Saturday, Sunday or
other day on which banking institutions in such Place of Payment, Place of
Conversion or other location are authorized or obligated by law, regulation or
executive order to close.
"Cash Settlement Option" has the meaning specified in Section 1201.
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"CEDEL" has the meaning specified in Section 304(c).
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"Closing Price Per Share" means, with respect to common stock, for any
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day, the reported last sales price regular way per share or, in case no such
reported sale takes place on
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such day, the average of the reported closing bid and asked prices regular way,
as reported on the principal national or regional United States securities
exchange on which such common stock is traded or, if such common stock is not
listed or admitted to trading on a United States national or regional exchange,
as reported on the Nasdaq National Market, or if such common stock is not listed
or admitted to trading on the Nasdaq National Market, the average of the closing
bid and asked prices in the over the counter market as furnished by any New York
Stock Exchange member firm selected from time to time by the Company for that
purpose.
"Commission" means the Securities and Exchange Commission, as from time
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to time constituted, created under the Exchange Act or, if at any time after the
execution of this Indenture 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 Depository" means the Person specified as such pursuant to
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Section 301.
"Common Stock" means the Common Stock, par value $1.00 per share, of the
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Company authorized at the date of this instrument as originally executed.
Subject to the provisions of Section 1201 and 1211, shares issuable on
conversion of Securities shall include only shares of Common Stock or shares of
any class or classes of common stock resulting from any reclassification or
reclassifications thereof; provided, however, that if at any time there shall be
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more than one such resulting class, the shares so issuable on conversion of
Securities shall include shares of all such classes, and the shares of each such
class then so issuable shall be substantially in the proportion that the total
number of shares of such class resulting from all such reclassifications bears
to the total number of shares of all such classes resulting from all such
reclassifications.
"common stock" includes any stock of any class of capital stock which
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has no preference in respect of dividends or of amounts payable in the event of
any voluntary or involuntary liquidation, dissolution or winding up of the
issuer thereof and which, by its terms, is not subject to redemption by the
issuer thereof.
"Company" means the Person named as the "Company" in the first paragraph
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of this Indenture until a successor Person shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Company" shall mean
such successor Person. -------
"Company Request" and "Company Order" mean, respectively, a written
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request or order, as the case may be, signed in the name of the Company by any
two Officers or by any Officer and either an Assistant Treasurer or an Assistant
Corporate Secretary, of the Company and delivered to the Trustee.
"Conversion Agent" means any Person authorized by the Company to convert
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Securities in accordance with Article Twelve.
"Conversion Date" means the date on which any Security, which is
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convertible by the terms and provisions of such Security established pursuant to
Section 301, and the duly signed
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and completed conversion notice shall have been delivered to any Place of
Conversion in accordance with the provisions of Article Twelve.
"Conversion Price" has the meaning specified in Section 1201.
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"Corporate Secretary" or "Assistant Corporate Secretary" means the
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person elected by the Company's Board of Directors to hold the title of
"Secretary" or "Assistant Secretary" as provided for by the applicable corporate
law of the Company's jurisdiction of incorporation."
"Corporate Trust Office" means the principal corporate trust office of
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the Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of original execution of this
Indenture is located at Four Albany Street, New York, New York 10006."
"Corporation" and "corporation" includes corporations, associations,
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companies and business trusts.
"Coupon" means any interest coupon appertaining to a Bearer Security.
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"Currency," with respect to any payment, deposit or other transfer in
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respect of the principal of or any premium or interest on or any Additional
Amounts with respect to any Security, means Dollars, and, with respect to any
other payment, deposit or transfer pursuant to or contemplated by the terms
hereof or such Security, also means Dollars.
"CUSIP Number" means the alphanumeric designation assigned to a Security
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by Standard & Poor's Ratings Services, CUSIP Service Bureau.
"Custodian" has the meaning specified in Section 501.
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"Default" means any event or condition the occurrence of which would,
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with the lapse of time or the giving of notice, or both, constitute an Event of
Default.
"Defaulted Interest" has the meaning specified in Section 307.
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"Definitive Security" means any Security that is a Bearer Security
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(other than the temporary global Bearer Security) or a Registered Security.
"Dollars" or "$" means a dollar or other equivalent unit of legal tender
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for payment of public or private debts in the United States.
"EUROCLEAR" has the meaning specified in Section 304(c).
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"Event of Default" has the meaning specified in Section 501.
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"Exchange Act" means the Securities Exchange Act of 1934, as amended.
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"Exchange Date" means the date specified as such pursuant to Section
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301.
"Exchange Act" means the Securities Exchange Act of 1934, as amended
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from time to time.
"Foreign Entity" has the meaning specified in Section 801.
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"GAAP" means such accounting principles as are generally accepted in the
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United States of America as of the date or time of any computation required
hereunder.
"Government Obligations" means securities which are (i) direct
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obligations of the United States or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
where the timely payment or payments thereunder are unconditionally guaranteed
as a full faith and credit obligation by the United States, and which, in the
case of (i) or (ii), are not callable or redeemable at the option of the issuer
or issuers thereof, and shall also include a depository receipt issued by a bank
or trust company as custodian with respect to any such Government Obligation or
a specific payment of interest on or principal of or other amount with respect
to any such Government Obligation held by such custodian for the account of the
holder of a depository receipt, provided that (except as required by law) such
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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 Government Obligation or the specific payment of interest on or
principal of or other amount with respect to the Government Obligation evidenced
by such depository receipt.
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"Holder," in the case of any Registered Security, means the Person in
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whose name such Security is registered in the Security Register and, in the case
of any Bearer Security, means the bearer thereof and, in the case of any Coupon,
means the bearer thereof.
"Indenture" means this instrument as it may from time to time be
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supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and, with respect to any
Security, by the terms and provisions of such Security and any Coupon
appertaining thereto established pursuant to Section 301 (as such terms and
provisions may be amended pursuant to the applicable provisions hereof).
"Independent Public Accountants" means accountants or a firm of
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accountants that, with respect to the Company and any other obligor under the
Securities or the Coupons, are independent public accountants within the meaning
of the Securities Act, and the rules and regulations promulgated by the
Commission thereunder, who may be the independent public accountants regularly
retained by the Company or who may be other independent public accountants. Such
accountants or firm shall be entitled to rely upon any Opinion of Counsel as to
the interpretation of any legal matters relating to this Indenture or
certificates required to be provided hereunder.
"Indexed Security" means a Security the terms of which provide that the
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principal amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.
"Interest" or "interest," with respect to any Original Issue Discount
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Security, which by its terms bears interest only after Maturity, means interest
payable after Maturity and, when used with respect to a Security which provides
for the payment of Additional Amounts pursuant to Section 1004, includes such
Additional Amounts.
"Interest Payment Date," with respect to any Security, means the Stated
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Maturity of an installment of interest on such Security.
"Interest Record Date" means any Regular Record Date or Special Record
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Date.
"Internal Revenue Code" means the United States Internal Revenue Code of
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1986, as amended.
"Investment Company Act" means the Investment Company Act of 1940 and
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any statute successor thereto, in each case as amended from time to time.
"Legal Holidays" has the meaning specified in Section 114.
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"Market Price" has the following meaning unless otherwise defined in the
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Company's Board Resolutions or Officers' Certificate relating to a particular
series of Securities: (A) in case the Company chooses the Cash Settlement Option
with respect to the conversion of Securities, means the Weighted Average Price
of the Common Stock on the last Trading Day preceding the applicable Conversion
Date.
"Maturity," with respect to any Security, means the date on which the
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principal of such Security or an installment of principal becomes due and
payable as provided in or pursuant to this Indenture, whether at the Stated
Maturity or by declaration of acceleration, notice of redemption or repayment,
notice of option to elect repayment or otherwise, and includes the Redemption
Date.
"Office" or "Agency", with respect to any Securities, means an office or
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agency of the Company maintained or designated as a Place of Payment for such
Securities pursuant to Section 1002 or any other office or agency of the Company
maintained or designated for such Securities pursuant to Section 1002 or, to the
extent designated or required by Section 1002 in lieu of such office or agency,
the Corporate Trust Office of the Trustee.
"Officer" means the Chairman of the Board, the President, any Vice
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President (whether or not designated by a number or word added before or after
the title vice president), the Treasurer or the Corporate Secretary of the
Company.
"Officers' Certificate" of the Company means a certificate signed by two
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Officers or by any Officer and either an Assistant Treasurer or an Assistant
Corporate Secretary of the Company that complies with the requirements of
Section 314(e) of the Trust Indenture Act and is delivered to the Trustee.
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"Opinion of Counsel" means a written opinion of counsel, who (unless
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otherwise provided herein) may be an employee of or counsel for the Company or
other counsel that, if required by the Trust Indenture Act, complies with the
requirements of Section 314(e) of the Trust Indenture Act.
"Original Issue Discount Security" means any Security issued pursuant to
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this Indenture which provides for an amount less than the principal face amount
thereof to be due and payable upon acceleration of the Maturity thereof pursuant
to Section 502.
"Outstanding," when used with respect to any Securities, means, as of
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the date of determination, all such Securities theretofore authenticated and
delivered under this Indenture, except:
(1) any such Security theretofore canceled by the Trustee or
the Security Registrar or delivered to the Trustee or the Security
Registrar for cancellation;
(2) any such Security for whose payment at the Maturity thereof
money in the necessary amount has been theretofore deposited pursuant
hereto (other than pursuant to Section 402) with the Trustee or any
Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its own
Paying Agent), for the Holders of such Securities and any Coupons
appertaining thereto, provided that, if such Securities are to be
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redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been
made;
(3) any such Security with respect to which the Company has
effected defeasance or covenant defeasance pursuant to Section 402,
except to the extent provided in Section 402; and
(4) any such Security which has been paid pursuant to Section
306 or in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to this Indenture, unless there
shall have been presented to the Trustee proof satisfactory to it that
such Security is held by a bona fide purchaser in whose hands such
Security is a valid obligation of the Company,
provided, however, that in determining whether the Holders of the
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requisite principal amount of Outstanding Securities have given any
request, demand, authorization, direction, notice, consent or waiver
hereunder or are present at a meeting of Holders of Securities for
quorum purposes, (i) the principal amount of an Original Issue Discount
Security that may be counted in making such determination and that shall
be deemed to be Outstanding for such purposes shall be equal to the
amount of the principal thereof that pursuant to the terms of such
Original Issue Discount Security would be declared (or shall have been
declared to be) due and payable upon a declaration of acceleration
thereof pursuant to Section 502 at the time of such determination, and
(ii) the principal amount of any Indexed Security that may be counted in
making such determination and that shall be deemed outstanding for such
purpose shall be equal to the principal face amount of such
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Indexed Security at original issuance, unless otherwise provided in or
pursuant to this Indenture, and (iii) Securities beneficially owned by
the Company or any other obligor upon the Securities or any Affiliate of
the Company shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in
making any such determination or relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Securities so owned which shall have been
pledged in good faith shall be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee (a) the pledgee's right
so to act with respect to such Securities and (b) that the pledgee is
not the Company or any other obligor upon the Securities or any Coupons
appertaining thereto or an Affiliate of the Company or such other
obligor.
"Paying Agent" means any Person authorized by the Company to pay the
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principal of, or any premium or interest on, or any Additional Amounts with
respect to, any Security or any Coupon or take any other actions specifically
provided in this Indenture on behalf of the Company.
"Person" means any individual, corporation, partnership, association,
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joint venture, joint-stock company, limited liability company, trust, estate,
unincorporated organization or government or any agency or political subdivision
thereof.
"Place of Conversion" means any city in which any Conversion Agent is
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located.
"Place of Payment," with respect to any Security, means the place or
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places where the principal of, or any premium or interest on, or any Additional
Amounts with respect to, such Security are payable as provided in or pursuant to
this Indenture or such Security.
"Predecessor Security" of any particular Security means every previous
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Security evidencing all or a portion of the same indebtedness as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in exchange for or in
lieu of a lost, destroyed, mutilated or stolen Security or any Security to which
a mutilated, destroyed, lost or stolen Coupon appertains shall be deemed to
evidence the same indebtedness as the lost, destroyed, mutilated or stolen
Security or the Security to which a mutilated, destroyed, lost or stolen Coupon
appertains.
"Redemption Date," with respect to any Security or portion thereof to be
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redeemed, means the date fixed for such redemption by or pursuant to this
Indenture or such Security.
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"Redemption Price," with respect to any Security or portion thereof to
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be redeemed, means the price at which it is to be redeemed as determined by or
pursuant to this Indenture or such Security.
"Registered Security" means any Security established pursuant to Section
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201 which is registered in the Security Register.
"Regular Record Date" for the interest payable on any Registered
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Security on any Interest Payment Date therefor means the date, if any, specified
in or pursuant to this Indenture or such Security as the "Regular Record Date."
"Repayment Date" has the meaning specified in Section 1502.
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"Repayment Event" has the meaning specified in Section 1502.
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"Repayment Notice" has the meaning specified in Section 1503.
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"Repayment Price" has the meaning specified in Section 1502.
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"Responsible Officer," shall mean when used with respect to the Trustee,
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any officer within the Corporate Trust Office including any Vice President,
Managing Director, Assistant Vice President, Secretary, Assistant Secretary,
Treasurer or Assistant Treasurer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge and familiarity
with the particular subject.
"Security" or "Securities" means any note or notes, bond or bonds,
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debenture or debentures, or any other evidences of indebtedness, as the case may
be, authenticated and delivered under this Indenture; provided, however, that,
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if at any time there is more than one Person acting as Trustee under this
Indenture, "Securities," with respect to any such Person, shall mean Securities
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authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.
"Securities Act" means the Securities Act of 1933, as amended.
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"Security Register" and "Security Registrar" have the respective
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meanings specified in Section 305.
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"Special Record Date" for the payment of any Defaulted Interest on any
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Registered Security means a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity," with respect to any Security or any installment of
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principal thereof or interest thereon or any Additional Amounts with respect
thereto, means the date established by or pursuant to this Indenture or such
Security or Coupon as the fixed date on which the principal of such Security or
such installment of principal or interest is, or such Additional Amounts are,
due and payable.
"Subsidiary" means a corporation or other entity, a majority of the
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outstanding voting securities or other ownership interests having ordinary
voting power to elect a majority of the corporate directors or other Persons
performing similar functions of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries.
"Tax" has the meaning specified in Section 1004.
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"Tax Affected Security" means any Security held by a non-United States
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person to whom Additional Amounts have or will become payable.
"Tax Law Change" means any change in, or amendment to, the laws
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(including any regulations or rulings promulgated thereunder) of the United
States or any political subdivision or taxing authority thereof or therein
affecting taxation, or any change in, or amendment to, the application or
official interpretation of such laws, regulations or rulings.
"Trading Days" means (i) if the common stock is quoted on the Nasdaq
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National Market or any similar system of automated dissemination of quotations
of securities prices, days on which trades may be effected through such system,
(ii) if the common stock is listed or admitted for trading on any national
securities exchange, days on which such national securities exchange is open for
business or (iii) if the common stock is not quoted on the Nasdaq National
Market or similar system or listed or admitted to trading on any national
securities exchange, days on which the common stock is traded regular way in the
over-the-counter market and for which a closing bid and a closing asked price
for the common stock are available.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
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and any reference herein to the Trust Indenture Act or a particular provision
thereof shall mean such Act or provision, as the case may be, as amended or
replaced from time to time or as supplemented from time to time by rules or
regulations adopted by the Commission under or in furtherance of the purposes of
such Act or provision, as the case may be.
"Trustee" means the Person named as the "Trustee" in the first paragraph
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of this instrument until a successor Trustee shall have become such with respect
to one or more series of Securities pursuant to the applicable provisions of
this Indenture, and thereafter "Trustee" shall mean or include each Person who
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is then a Trustee hereunder; provided, however, that if at any time there is
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more than one such Person, "Trustee" as used with respect to the Securities of
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any series shall mean the Trustee with respect to Securities of such series.
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"United States," except as otherwise provided in or pursuant to this
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Indenture or any Security, means the United States of America (including the
states thereof and the District of Columbia), its territories and possessions
and other areas subject to its jurisdiction.
"United States person" is a person that is, for United States Federal
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income tax purposes, (a) a citizen or resident of the United States, (b) a
corporation, partnership or other entity created or organized in or under the
laws of the United States or any political subdivision thereof, (c) an estate,
the income of which is subject to United States Federal income taxation
regardless of source, (d) any trust if a court within the United States is able
to exercise primary supervision of the administration thereof and one or more
United States fiduciaries have the authority to control all substantial
decisions thereof, or (e) any other person included within the definition of
United States person under the Internal Revenue Code and the regulations
thereunder.
"U.S. Depository" or "Depository" means, with respect to any Security
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issuable or issued in the form of one or more global Securities, the Person
designated as U.S. Depository or Depository by the Company in or pursuant to
this Indenture, which Person must be, to the extent required by applicable law
or regulation, a clearing agency registered under the Exchange Act, and, if so
provided with respect to any Security, any successor to such Person. If at any
time there is more than one such Person, "U.S. Depository" or "Depository" shall
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mean, with respect to any Securities, the qualifying entity which has been
appointed with respect to such Securities.
"Vice President," when used with respect to the Company or the Trustee,
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means any vice president, whether or not designated by a number or a word or
words added before or after the title "Vice President."
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"Weighted Average Price" of a share of Common Stock during any period,
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unless otherwise defined in the Company's Board Resolutions or Officers'
Certificate relating to a particular series of Securities means the weighted
average per share sale price for all reported sales of shares of Common Stock on
the Trading Days included within such period (or, if the information necessary
to calculate such weighted average per share sale price is not available, the
average of the high and low sale prices or, if only one sale is reported, such
sale price) as reported in the composite transactions on the principal national
or regional United States securities exchange on which the Common Stock is
listed or admitted to trading, or if the Common Stock is not listed or admitted
to trading on a United States national or regional securities exchange, as
reported on the Nasdaq National Market, or if the Common Stock is not listed or
admitted to trading on the Nasdaq National Market, as reported in the over the
counter market and as furnished by any New York Stock Exchange member firm
selected from time to time by the Company for that purpose.
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Section 102. Compliance Certificates and Opinions.
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Except as otherwise expressly provided in this Indenture, 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, except that in the case
of any such application or request as to which the furnishing of such document
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.
Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:
(1) a statement that each individual signing such certificate
or opinion has read such condition or covenant and the definitions herein
relating thereto;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;
(3) 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 condition or covenant has
been satisfied or complied with; and
(4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been satisfied or complied with.
Section 103. Form of Documents Delivered to Trustee.
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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 an Opinion of Counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the
opinion with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such 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
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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 or any Security, they may, but need not, be
consolidated and form one instrument.
Section 104. Acts of Holders.
---------------
(1) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by or pursuant to this
Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor
signed by such Holders in person or by an agent duly appointed in
writing. If, but only if, Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in or pursuant to this
Indenture to be given or taken by Holders of Securities 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 Sixteen, or a combination of such
instruments and any such record. Except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments or record or both are delivered to the Trustee and, where it
is hereby expressly required, to the Company. Such instrument or
instruments and any such record (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, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and
(subject to Section 315 of the Trust Indenture Act) conclusive in favor
of the Trustee and the Company and any agent of the Trustee or 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 1606.
Without limiting the generality of this Section 104, unless
otherwise provided in or pursuant to this Indenture, a Holder, including
a Depository that is a Holder of a global Security, may make, give or
take, by a proxy, or proxies, duly appointed in writing, any request,
demand, authorization, direction, notice, consent, waiver or other Act
provided in or pursuant to this Indenture or the Securities to be made,
given or taken by Holders, and a Depository that is a Holder of a global
Security may provide its proxy or proxies to the beneficial owners of
interests in any such global Security through such Depository's standing
instructions and customary practices.
(2) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner which the
Trustee deems sufficient and in accordance with such reasonable rules as
the Trustee may determine; and the Trustee
15
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may in any instance require further proof with respect to any of the
matters referred to in this Section 104.
(3) The ownership, principal amount and serial numbers of
Registered Securities held by any Person, and the date of the
commencement and the date of the termination of holding the same, shall
be proved by the Security Register.
(4) The ownership, principal amount and serial numbers of Bearer
Securities held by any Person, and the date of the commencement and the
date of the termination of holding the same, may be proved by the
production of such Bearer Securities or by a certificate executed, as
depository, by any trust company, bank or other depository reasonably
acceptable to the Company, wherever situated, if such certificate shall
be deemed by the Company and the Trustee to be satisfactory, showing
that at the date therein mentioned such Person had on deposit with such
depository, or exhibited to it, the Bearer Securities therein described;
or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit
is deemed by the Company and the Trustee to be satisfactory. The Trustee
and the Company may assume that such ownership of any Bearer Security
continues until (i) another certificate or affidavit bearing a later
date issued in respect of the same Bearer Security is produced, or (ii)
such Bearer Security is produced to the Trustee by some other Person, or
(iii) such Bearer Security is surrendered in exchange for a Registered
Security, or (iv) such Bearer Security is no longer Outstanding. The
ownership, principal amount and serial numbers of Bearer Securities held
by the Person so executing such instrument or writing and the date of
the commencement and the date of the termination of holding the same may
also be proved in any other manner which the Company and the Trustee
deem sufficient.
16
<PAGE>
(5) If the Company shall solicit from the Holders of any
Registered Securities any request, demand, authorization, direction,
notice, consent, waiver or other Act, the Company may at its option (but
is not obligated to), by a Company Board Resolution, fix in advance a
record date for the determination of Holders of Registered Securities
entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or
other Act may be given before or after such record date, but only the
Holders of Registered Securities of record at the close of business on
such record date shall be deemed to be Holders for the purpose of
determining whether Holders of the requisite proportion of Outstanding
Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act,
and for that purpose the Outstanding Securities shall be computed as of
such record date; provided that no such authorization, agreement or
consent by the Holders of Registered Securities 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.
(6) Any request, demand, authorization, direction, notice,
consent, waiver or other Act by the Holder of any Security shall bind
every future Holder of the same Security and any Coupon appertaining
thereto and the Holder of every Security or Coupon issued upon the
registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done or suffered to be done by the
Trustee, any Security Registrar, any Paying Agent or the Company in
reliance thereon, whether or not notation of such Act is made upon such
Security.
(7) Without limiting the foregoing, a Holder entitled hereunder
to give or take any action hereunder with regard to any particular
Security may do so with regard to all or any part of the principal
amount of such Security or by one or more duly appointed agents each of
which may do so pursuant to such appointment with regard to all or any
different part of such principal amount.
Section 105. Notices, Etc. to Trustee and Company.
------------------------------------
Any request, demand, authorization, direction, notice, consent, waiver
or other Act of Holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or the Company shall be sufficient
for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee at its Corporate Trust Office, or
(2) the Company by the Trustee or 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 the attention of its Treasurer at the address of its
principal office specified in the first paragraph of this instrument or
at any other address previously furnished in writing to the Trustee by
the Company.
17
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Section 106. Notice to Holders of Securities; Waiver.
---------------------------------------
Except as otherwise expressly provided in or pursuant to this Indenture,
where this Indenture provides for notice to Holders of Securities of any event,
(1) such notice shall be sufficiently given to Holders of
Registered Securities if in writing and mailed, first-class postage
prepaid, to each Holder of a Registered Security affected by such event,
at his address as it appears in the Security Register, not later than
the latest date, and not earlier than the earliest date, prescribed for
the giving of such notice; and
(2) such notice shall be sufficiently given to Holders of Bearer
Securities, if any, if published in an Authorized Newspaper in The City
of New York and, if such Securities are then listed on any stock
exchange outside the United States, in an Authorized Newspaper in such
city as the Company shall advise the Trustee that such stock exchange so
requires, on a Business Day at least once, such publication to be not
earlier than the earliest date and not later than the latest date
prescribed for the giving of such notice; provided that any additional
notice to Holders of Securities of any event may be provided at any time
upon the request of the Company and shall provided in the manner set
forth above.
In any case where notice to Holders of Registered Securities is given by
mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given or provided. In
the 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 by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.
In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither 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 mailed to
Holders of Registered Securities as provided above.
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.
18
<PAGE>
Section 107. Language of Notices.
-------------------
Any request, demand, authorization, direction, notice, consent, election
or waiver required or permitted under this Indenture shall be in the English
language, except that, if the Company so elects, any published notice may be in
an official language of the country of publication.
Section 108. Conflict with Trust Indenture Act.
---------------------------------
If any provision hereof limits, qualifies or conflicts with any duties
under any required provision of the Trust Indenture Act imposed hereon by
Section 318(c) thereof, such required provision shall control.
Section 109. Effect of Headings and Table of Contents.
----------------------------------------
The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.
Section 110. Successors and Assigns.
----------------------
All covenants and agreements in this Indenture by the Company shall bind
its successors and assigns, whether so expressed or not.
Section 111. Separability Clause.
-------------------
In case any provision in this Indenture, any Security or any Coupon
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.
Section 112. Benefits of Indenture.
---------------------
Nothing in this Indenture, any Security or any Coupon shall give to any
Person, other than the parties hereto, any Security Registrar, any Paying Agent
or Conversion Agent and their successors hereunder and the Holders of Securities
or Coupons, any benefit or any legal or equitable right, remedy or claim under
this Indenture.
Section 113. Governing Law.
-------------
This Indenture, the Securities and any Coupons shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts
applicable to agreements made or instruments entered into and, in each case,
performed in said state, except that the rights, protections, obligations,
indemnities and immunities of the Trustee under this Indenture shall be governed
by the laws of the State of New York, without regard to the principles of
conflicts of laws of either state.
19
<PAGE>
Section 114. Legal Holidays.
--------------
Unless otherwise specified in or pursuant to this Indenture or any
Securities, in any case where any Interest Payment Date, Conversion Date,
Redemption Date, Repayment Date, Stated Maturity or Maturity of any Security
shall not be a Business Day at any Place of Payment or any Place of Conversion,
as the case may be, then (notwithstanding any other provision of this Indenture,
any Security or Coupon other than a provision in any Security or Coupon that
specifically states that such provision shall apply in lieu of this Section)
payment of interest or principal (and premium or Additional Amounts, if any) or
delivery for conversion of such Security need not be made at such Place of
Payment or Place of Conversion on such date, but such payment may be made on the
next succeeding Business Day at such Place of Payment or Place of Conversion
with the same force and effect as if made on the Interest Payment Date,
Conversion Date, Redemption Date, Repayment Date or at the Stated Maturity or
Maturity or by such last day for conversion, and no interest shall accrue on the
amount payable on such date or at such time for the period from and after such
Interest Payment Date, Redemption Date, Repayment Date, Conversion Date, Stated
Maturity or Maturity or last day for conversion, as the case may be, to the next
succeeding Business Day.
Section 115. Taxes.
-----
The Company will pay all stamp taxes and other similar duties, if any,
that may be imposed by the United States or the United Kingdom, or any state or
political subdivision thereof or taxing authority therein, with respect to the
execution or delivery of this Indenture, or the issuance of the Securities or
Coupons, or the exchange from time to time of the temporary or permanent
Securities in global form for Registered Securities or Bearer Securities, or
with respect to the issue or delivery of shares of Common Stock on conversion of
Securities; provided, however, that the Company shall not be required to pay any
tax or duty which may be payable in respect of the registration of transfer or
exchange of Securities and any transfer involved in the issue or delivery of
shares of Common Stock in a name other than that of the Holder of the Security
or Securities to be converted in accordance with the provisions of Article
Twelve, and no such issue or delivery shall be made unless and until the person
requesting such issue has paid to the Company the amount of any such tax or duty
or has established to the satisfaction of the Company that such tax or duty has
been paid; and provided further, that the Company shall not be required to pay
any tax or duty that may be payable in respect of any accrued interest paid in
connection with the conversion of the Securities.
20
<PAGE>
ARTICLE TWO
SECURITIES FORMS
Section 201. Forms Generally.
---------------
Each Registered Security, Bearer Security, Coupon and temporary or
permanent global Security issued pursuant to this Indenture shall be in the form
established by or pursuant to a Company Board Resolution or in one or more
indentures supplemental hereto, shall have such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by or
pursuant to this Indenture or any indenture supplemental hereto, 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 Security or Coupon as evidenced by their execution of
such Security or Coupon. If the form of Registered Security, Bearer Security,
Coupon or temporary or permanent global Security is established by action taken
pursuant to a Board Resolution of the Company, a copy of an appropriate record
of such action shall be certified by the Secretary or an Assistant Secretary of
the Company, and delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 303 for the authentication and delivery of
such Registered Security, Bearer Security, Coupon, temporary or permanent global
Security.
Definitive Securities and definitive Coupons shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers of the Company executing such
Securities or Coupons, as evidenced by their execution of such Securities or
Coupons.
Unless otherwise specified pursuant to Section 301 and except for
temporary global Bearer Securities (as contemplated by Section 304 hereof),
Bearer Securities shall have Coupons attached.
Section 202. [INTENTIONALLY OMITTED]
-----------------------
21
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Section 203. Form of Trustee's Certificate of Authentication.
-----------------------------------------------
Subject to Section 612, the Trustee's certificate of authentication
shall be in substantially the form attached to this Indenture as Exhibit A.
Section 204. Securities in Global Form.
-------------------------
Unless otherwise provided in a Company Order, the Securities initially
shall be issued in global form. Securities issued in temporary or permanent
global form may provide that it or any number of such Securities shall represent
the aggregate principal amount of all Outstanding Securities of such series (or
such lesser amount as is permitted by the terms thereof) from time to time
endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be increased or reduced to
reflect exchanges. Any endorsement of any global Security to reflect the amount,
or any increase or decrease in the amount, or changes in the rights of Holders,
of Outstanding Securities represented thereby shall be made in such manner and
by such Person or Persons as shall be specified therein or in the Company Order
to be delivered pursuant to Section 303 or 304 with respect thereto. Subject to
the provisions of Section 303 and, if applicable, Section 304, the Trustee shall
deliver and redeliver any Security in permanent global form in the manner and
upon instructions given by the Person or Persons specified therein or in the
applicable Company Order. If a Company Order pursuant to Section 303 or 304 has
been, or simultaneously is, delivered, any instructions by the Company with
respect to a Security in global form shall be in writing but need not be
accompanied by or contained in a Company Officers' Certificate and need not be
accompanied by an Opinion of Counsel.
Notwithstanding the provisions of Section 307, unless otherwise
specified in or pursuant to this Indenture or any Securities, payment of
principal of, any premium and (except for temporary global Bearer Securities (as
contemplated by Section 304 hereof)) interest on, and any Additional Amounts in
respect of, any temporary or permanent global Security shall be made to the
Person or Persons specified therein.
Notwithstanding the provisions of Section 308 and except as provided in
the preceding paragraph, the Company, the Trustee and any agent of the Company
and the Trustee shall treat as the Holder of such principal amount of
Outstanding Securities represented by a global Security (i) in the case of a
global Security in registered form, the Holder of such global Security in
registered form, or (ii) in the case of a global Security in bearer form, the
Person or Persons specified pursuant to Section 301.
22
<PAGE>
Section 205. Form of Conversion Notice.
-------------------------
At the time of conversion of a Security in accordance with Article
Twelve, the Holder of such Security shall deliver to the Trustee, the Conversion
Agent and the Company a notice of conversion in substantially the form attached
to this Indenture as Exhibit B.
ARTICLE THREE
THE SECURITIES
Section 301. Amount Unlimited; Issuable in Series.
------------------------------------
The aggregate principal amount of Securities which may be authenticated
and delivered and outstanding under this Indenture is unlimited. The Securities
may be issued in one or more series.
With respect to any Securities to be authenticated and delivered
hereunder, there shall be established in or pursuant to one or more Company
Board Resolutions, or pursuant to authority granted by one or more Company Board
Resolutions and, subject to Section 303, set forth or determined in the manner
provided in a Company Officers' Certificate, or established in one or more
indentures supplemental hereto prior to the issuance of any Securities of a
series any or all of the following; provided that if any of the following are
already provided for in this Indenture, then such provisions shall be applicable
to each series established hereunder unless otherwise provided pursuant to the
Company and Guarantor Board Resolutions establishing such series and set forth
in the applicable Company and Guarantor Officers' Certificate or unless
otherwise provided in any Indenture or Indentures supplemental hereto pertaining
to such series of Securities:
(1) the title or designation of such Securities and the series in
which such Securities shall be included;
(2) any limit upon the aggregate principal amount of the
Securities of such title or designation or the Securities of such series
which may be authenticated and delivered under this Indenture (except
for Securities authenticated and delivered upon registration or transfer
of, or in exchange for, or in lieu of, other Securities of such series
pursuant to Section 304, 305, 306, 905 or 1107, upon repayment in part
of any Security of such series pursuant to Article Fifteen, or upon
surrender in part of any Security for conversion or exchange into other
securities pursuant to its terms, or pursuant to the terms of such
Securities);
(3) if such Securities are to be issuable as Registered
Securities, as Bearer Securities or alternatively as Bearer Securities
and Registered Securities, and whether the
23
<PAGE>
Bearer Securities are to be issuable with Coupons, without Coupons or
both, and any restrictions applicable to the offer, sale or delivery of
the Bearer Securities and the terms, if any, upon which Bearer
Securities may be exchanged for Registered Securities and vice versa;
(4) if any of such Securities are to be issuable in global form,
when any of such Securities are to be issuable in global form and (i)
whether such Securities are to be issued in temporary or permanent
global form or both, (ii) whether beneficial owners of interests in any
such global Security may exchange such interests for Securities of the
same series and of like tenor and of any authorized form and
denomination, and the circumstances under which any such exchanges may
occur, if other than in the manner specified in Section 305, (iii) the
name of the Depository or the U.S. Depository, as the case may be, with
respect to any global Security, (iv) the name of the Common Depository,
if applicable, and (v) the Exchange Date, if applicable;
(5) if any of such Securities are to be issuable as Bearer
Securities or in global form, the date as of which any such Bearer
Security or global Security shall be dated (if other than the date of
original issuance of the first of such Securities to be issued);
(6) if any of such Securities are to be issuable as Bearer
Securities, whether interest in respect of any portion of a temporary
Bearer Security in global form payable in respect of an Interest Payment
Date therefor prior to the Exchange Date, shall be paid to any clearing
organization with respect to the portion of such temporary Bearer
Security held for its account and, in such event, the terms and
conditions (including any certification requirements) upon which any
such interest payment received by a clearing organization will be
credited to the Persons entitled to interest payable on such Interest
Payment Date, if other than as provided in Section 304;
(7) the date or dates, or the method or methods, if any, by which
such date or dates shall be determined, on which the principal of such
Securities is payable;
(8) the rate or rates at which such Securities shall bear
interest, if any, or the method or methods, if any, by which such rate
or rates are to be determined, the date or dates, if any, from which
such interest shall accrue or the method or methods, if any, by which
such date or dates are to be determined, the Interest Payment Dates, if
any, on which such interest shall be payable and the Regular Record
Date, if any, for the interest payable on Registered Securities on any
Interest Payment Date, whether and under what circumstances Additional
Amounts on such Securities or any of them shall be payable, the notice,
if any, to Holders regarding the determination of interest on a floating
rate Security and the manner of giving such notice, and the basis upon
which interest shall be calculated if other than that of a 360-day year
of twelve 30-day months;
(9) if in addition to or other than the Borough of Manhattan, The
City of New York, (or, in the case of Bearer Securities, except as
otherwise provided herein, London, England), the place or places where
the principal of, any premium and interest on or any Additional Amounts
with respect to such Securities shall be payable any of such
24
<PAGE>
Securities may be surrendered for registration of transfer or exchange,
any of such Registered Securities may be surrendered for conversion, any
of such Bearer Securities may be surrendered for conversion in the
circumstances described herein and notices or demands to or upon the
Company in respect of such Securities and this Indenture may be served,
the extent to which, or the manner in which, any interest payment or
Additional Amounts on a global Security on an Interest Payment Date will
be paid and the manner in which any principal of or premium, if any, on
any global Security will be paid;
(10) whether any of such Securities are to be redeemable at the
option of the Company and, if so, the date or dates on which, the period
or periods within which, the price or prices at which and the other
terms and conditions upon which such Securities may be redeemed, in
whole or in part, at the option of the Company and, if other than by a
Company Board Resolution, the manner in which any election by the
Company to redeem the Securities shall be evidenced;
(11) if the Company is obligated to redeem or purchase any of such
Securities pursuant to any sinking fund or analogous provision or at the
option of any Holder thereof and, if so, the date or dates on which, the
period or periods within which, the price or prices at which and the
other terms and conditions upon which such Securities shall be redeemed
or purchased, in whole or in part, pursuant to such obligation, and any
provisions for the remarketing of such Securities so redeemed or
purchased;
(12) the denominations in which any of such Securities that are
Registered Securities shall be issuable if other than denominations of
$1,000 and any integral multiple thereof, and the denominations in which
any of such Securities that are Bearer Securities shall be issuable if
other than the denominations of $1,000 and $10,000;
(13) if other than the principal amount thereof, the portion of
the principal amount of any of such Securities that shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to
Section 502 or the method by which such portion is to be determined;
(14) if the amount of payments of principal of, any premium or
interest on or any Additional Amounts with respect to such Securities
may be determined with reference to an index, indices, formula or other
method or methods (which index, indices, formula or method or methods
may be based, without limitation, on one or more currencies,
commodities, equity indices or other indices), and, if so, the terms and
conditions upon which and the manner in which such amounts shall be
determined and paid or payable;
(15) any deletions from, modifications of or additions to the
Events of Default or covenants of the Company with respect to any of
such Securities, whether or not such Events of Default or covenants are
consistent with the Events of Default or covenants set forth herein;
25
<PAGE>
(16) if either or both of Section 402(2) relating to defeasance or
Section 402(3) relating to covenant defeasance shall be applicable to
the Securities of such series, or any covenants in addition to those
specified in Section 402(3) relating to the Securities of such series
which shall be subject to covenant defeasance, and any deletions from,
or modifications or additions to, the provisions of Article Four in
respect of the Securities of such series;
(17) the terms, if any, on which such Securities may be converted
into or exchanged for other securities of the Company, and whether on
such conversion the Company may substitute cash or securities of the
Company in lieu of issuing Common Stock upon such conversion and the
terms of such substitution;
(18) if any of such Securities are to be issuable in global form
and are to be issuable in definitive form (whether upon original issue
or upon exchange of a temporary Security) only upon receipt of certain
certificates or other documents or satisfaction of other conditions,
then the form and terms of such certificates, documents or conditions;
(19) if there is more than one Trustee, the identity of the
Trustee and, if not the Trustee, the identity of each Security
Registrar, and the identity of each Paying Agent, Conversion Agent or
Authenticating Agent with respect to such Securities;
(20) [INTENTIONALLY OMITTED]; and
(21) any other terms of such Securities and any deletions from or
modifications or additions to this Indenture in respect of such
Securities (which terms shall not be inconsistent with the provisions of
this Indenture, except as permitted by Section 901).
All Securities of any one series and all Coupons, if any, appertaining
to Bearer Securities of such series shall be substantially identical except as
to denomination and Maturity and except as may otherwise be provided by the
Company in or pursuant to the Company Board Resolution and set forth in the
Company Officers' Certificate or in any indenture or indentures supplemental
hereto pertaining to such series of Securities. The terms of the Securities of
any series (as set forth in the applicable Board Resolution or Company Order)
may provide, without limitation, that the Securities shall be authenticated and
delivered by the Trustee on original issue from time to time upon telephonic or
written order of persons designated in the Company Officers' Certificate or
supplemental indenture (telephonic instructions to be promptly confirmed in
writing by such person) and that such persons are authorized to determine,
consistent with such Company Officers' Certificate or any applicable
supplemental indenture, such terms and conditions of the Securities of such
series as are specified in such Company Officers' Certificate or supplemental
indenture. All Securities of any one series need not be issued at the same time
and, unless otherwise so provided by the Company, a series may be reopened for
issuances of additional Securities of such series.
26
<PAGE>
If any of the terms of the Securities of any series shall be established
and approved by action taken by or pursuant Board Resolutions of the Company,
copies of appropriate records of such actions 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' Certificates setting forth the
terms of such series.
Section 302. Currency; Denominations.
-----------------------
The principal of, any premium and interest on and any Additional Amounts
with respect to the Securities shall be payable in Dollars. Unless otherwise
provided in or pursuant to this Indenture, Registered Securities shall be
issuable in registered form without Coupons in denominations of $1,000 and any
integral multiple thereof, and Bearer Securities shall be issuable in
denominations of $1,000 and $10,000 (or any other authorized denominations) with
Coupons attached.
Section 303. Execution, Authentication, Delivery and Dating.
----------------------------------------------
Securities shall be executed on behalf of the Company by any Officer
under its corporate seal reproduced thereon and attested by its Corporate
Secretary (provided that the Corporate Secretary shall not attest his or her own
signature as an Officer) or one of its Assistant Corporate Secretaries. Coupons
shall be executed on behalf of the Company by any Officer. The signature of any
of these officers on the Securities or any Coupons appertaining thereto may be
manual or facsimile.
Securities, Coupons appertaining thereto 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 Coupons or did not hold such offices at the date of such
Securities or Coupons.
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities, together with any Coupons
appertaining thereto, executed by the Company, to the Trustee for authentication
and, provided that the Company Board Resolution and Company Officers'
Certificate (if the terms of such Securities are provided therein pursuant to
authority granted by Company Board Resolution) or supplemental indenture or
indentures with respect to such Securities referred to in Section 301 and a
Company Order for the authentication and delivery of such Securities have been
delivered to the Trustee, the Trustee in accordance with the Company Order and
subject to the provisions hereof and of such Securities shall authenticate and
deliver such Securities; provided, however, that, in connection with its
-------- -------
original issuance, no Bearer Security shall be mailed or otherwise delivered to
any location in the United States; and provided, further, that a Bearer Security
-------- -------
(other than a temporary global Bearer Security) may be delivered outside the
United
27
<PAGE>
States in connection with its original issuance only if the certifications
described in Section 304 are provided in accordance with the provisions of
Section 304. If any Security shall be represented by a permanent global
Security, then, for purposes of this Section and Section 304, the notation of a
beneficial owner's interest therein upon original issuance of such Security or
upon exchange of a portion of a temporary global Security shall be deemed to be
delivery in connection with the original issuance of such beneficial owner's
interest in such permanent global Security. Except as permitted by Section 306,
the Trustee for the Securities of a series shall not authenticate and deliver
any Bearer Security unless all appurtenant Coupons for interest then matured
other than matured coupons in default have been detached and canceled. If all
the Securities of any one series are not to be issued at one time and if a Board
Resolution relating to such Securities (or Officers' Certificate provided
pursuant to authority granted by Board Resolution) shall so permit, such Company
Order may set forth procedures acceptable to the Trustee for the issuance of
such Securities, including, without limitation, procedures with respect to
interest rate, Stated Maturity, date of issuance and date from which interest,
if any, shall accrue.
In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities and any
Coupons appertaining thereto, the Trustee shall be entitled to receive, and
(subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be
fully protected in relying upon:
(1) an Opinion of Counsel to the effect that:
(a) the form or forms and terms of such Securities and Coupons,
if any, have been established or approved by or pursuant to a Board
Resolution of the Company in conformity with Sections 201 and 301 of
this Indenture;
(b) all conditions precedent to the authentication and
delivery of such Securities and Coupons, if any, appertaining thereto,
have been complied with and that such Securities and Coupons, when
completed by appropriate insertions, executed under the Company's
corporate seal and attested by duly authorized officers of the Company
(in the case of the Securities or Coupons), delivered by duly authorized
officers of the Company to the Trustee for authentication pursuant to
this Indenture, and authenticated and delivered by the Trustee and
issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute legally valid and
binding obligations of the Company, enforceable in accordance with their
terms, subject, in the case of the Securities to bankruptcy, insolvency,
reorganization, moratorium, arrangement, fraudulent conveyance,
fraudulent transfer or other similar laws of general applicability to
the Company and relating to or affecting creditors' rights and to
general principles of equity (regardless of whether enforcement is
sought in a proceeding in equity or at law);
28
<PAGE>
and
(c) this Indenture has been qualified under the Trust Indenture
Act; and
(2) a Company Officers' Certificate stating that, to the best
knowledge of the Persons executing such certificate, no Default or Event
of Default with respect to any of the Securities shall have occurred and
be continuing.
If all of the Securities of any series are not to be issued at one time,
unless requested by the Trustee, it shall not be necessary to deliver an Opinion
of Counsel at the time of issuance of each Security, but such opinion, with such
modifications as counsel shall deem appropriate, shall be delivered at or before
the time of issuance of the first Security of such series. After any such first
delivery, any separate request by the Company that the Trustee authenticate
additional Securities of such series for original issue will be deemed to be a
certification by the Company that all conditions precedent provided for in this
Indenture relating to authentication and delivery of such Securities continue to
have been complied with.
The Trustee shall not be required to authenticate or to cause an
Authenticating Agent to authenticate any Securities if the issue of such
Securities pursuant to this Indenture will affect the Trustee's own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner which is not reasonably acceptable to the Trustee or if the Trustee,
being advised by counsel, determines that such action may not lawfully be taken.
Each Registered Security shall be dated the date of its authentication.
Each Bearer Security and any temporary global Security shall be dated as of the
date specified in or pursuant to this Indenture.
No Security or Coupon appertaining to such Security shall be entitled to
any benefit under this Indenture or be valid or obligatory for any purpose,
unless there appears on such Security a certificate of authentication
substantially in the form provided for in Section 203 or 612 executed by or on
behalf of the Trustee or by the Authenticating Agent by the manual signature of
one of its authorized officers. Such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder.
Section 304. Temporary Securities.
--------------------
(a) Pending the preparation of Definitive Securities, the Company may
execute and deliver to the Trustee and, upon Company Order for authentication
and delivery, the Trustee shall authenticate and deliver, in the manner provided
in Section 303, temporary Securities in lieu thereof which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the
29
<PAGE>
Definitive Securities in lieu of which they are issued, in registered form or,
if authorized in or pursuant to this Indenture, in bearer form with one or more
Coupons or without Coupons, with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities may
determine, as conclusively evidenced by their execution of such Securities. Such
temporary Securities may be in global form.
(b) Except in the case of temporary global Bearer Securities, which
shall be exchanged in accordance with the provisions of clause (c) of this
Section 304, if temporary Securities are issued, the Company shall cause
Definitive Securities to be prepared without unreasonable delay. After the
preparation of Definitive Securities of the same series and containing terms and
provisions that are identical to those of any temporary Securities, such
temporary Securities shall be exchangeable for such Definitive Securities upon
surrender of such temporary Securities at an Office or Agency for such
Securities, without charge to any Holder thereof. Upon surrender for
cancellation of any one or more temporary Securities (accompanied by any
unmatured Coupons appertaining thereto), the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of Definitive Securities of authorized denominations of the same series
and containing identical terms and provisions; provided, however, that no
-------- -------
definitive Bearer Security, except as provided in or pursuant to this Indenture,
shall be delivered in exchange for a temporary Registered Security; and
provided, further, that a definitive Bearer Security shall be delivered in
- -------- -------
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in or pursuant to this Indenture. Unless otherwise provided in or
pursuant to this Indenture with respect to a temporary global Bearer Security,
until so exchanged the temporary Securities of any series shall in all respects
be entitled to the same benefits under this Indenture as Definitive Securities
of such series.
(c) All or a portion of the Securities constituting Bearer Securities
may be initially issued as temporary global Bearer Securities without Coupons or
conversion rights. Such temporary global Bearer Securities shall be deposited on
the applicable closing date on behalf of the subscribers for the Securities
represented thereby with the Common Depository, for credit to their respective
accounts (or to such other accounts as they may direct) at Morgan Guaranty Trust
Company OF NEW YORK, Brussels Office, as operator of the EUROCLEAR CLEARANCE
SYSTEM ("EUROCLEAR"), or CEDEL BANK, SOCIETE ANONYME ("CEDEL").
On or before the Exchange Date, the Company shall deliver to the Paying
Agent in London at its principal London office or to its designated agent
outside the United States, definitive Bearer Securities. On or after the
applicable Exchange Date, the temporary global Bearer Securities may be
surrendered by the Common Depository to the Trustee or its agent, as the
Company's agent for such purpose, to be exchanged, in whole or from time to time
in part, for definitive Bearer Securities without charge to Holders, and the
Trustee or the Paying Agent in London or other Paying Agent outside the United
States shall authenticate and deliver (at an office or agency outside the United
States), in
30
<PAGE>
exchange for the temporary global Bearer Securities or the portions thereof to
be exchanged, an equal aggregate principal amount of definitive Bearer
Securities, as shall be specified by the Holders thereof; provided, however,
-------- -------
that upon such presentation by the Common Depository, the temporary global
Bearer Securities are accompanied by a certificate dated the Exchange Date or a
subsequent date and signed by EUROCLEAR as to the portion of the temporary
global Bearer Securities held for its account then to be exchanged and a
certificate dated the Exchange Date or a subsequent date and signed by CEDEL as
to the portion of the temporary global Bearer Securities held for its account
then to be exchanged, each substantially in the form of Exhibit D hereto to the
effect that it has received a certificate or certificates substantially in the
form of Exhibit C hereto dated no earlier than 15 days prior to the Exchange
Date and signed by the person appearing in its records as the owner of the
temporary global Bearer Securities or portions thereof being exchanged. The
Company hereby appoints the principal office of the Paying Agent in London,
England, or its designated agent, as its agent outside the United States where
definitive Bearer Securities may be delivered in exchange for the temporary
global Bearer Securities or portions thereof. Each beneficial owner of any
portion of the temporary global Bearer Securities shall be entitled to take
delivery of definitive Bearer Securities only at such office.
Temporary global Bearer Securities will be exchangeable for Registered
Securities in denominations of $1,000 or an integral multiple thereof at any
time without the certification requirements set forth in the preceding
paragraph; provided that such exchange is permitted by the rules and procedures
-------- ----
then in effect of CEDEL and EUROCLEAR, and provided, further, that if and so
-------- -------
long as Registered Securities of a series are represented solely by a permanent
global Registered Security, the temporary global Bearer Security will only be
exchangeable for an interest in the permanent global Registered Security as set
forth in Section 305 herein.
Notwithstanding any other provision hereof or of the Securities, no
Bearer Security initially represented by the temporary global Bearer Securities
will be mailed to or otherwise delivered in connection with its original
issuance to any location within the United States. The Trustee agrees that it
will cause the Paying Agent in London (if required) to retain each certificate
provided by EUROCLEAR or CEDEL for a period of four calendar years following the
year in which the certificate is received and not to destroy or otherwise
dispose of any such certificate without first offering to deliver it to the
Company.
Upon any such exchange of a portion of the temporary global Bearer
Security for either definitive Bearer Securities or Registered Securities (if
permitted by the rules and procedures then in effect of CEDEL and EUROCLEAR),
the temporary global Bearer Security shall be deemed to reflect the reduction of
the principal amount evidenced thereby. Until so exchanged in full, the
temporary global Bearer Security shall in all respects be entitled to the same
benefits under, and subject to the same terms and conditions of, this Indenture
as definitive Bearer Securities authenticated and delivered hereunder, except
that none of EUROCLEAR, CEDEL or the beneficial owners of the temporary global
Bearer Security shall be entitled to receive payment of interest or other
payments thereon or to convert the temporary global Bearer Security, if
applicable, or any portion thereof, as set forth in Article Twelve, except as
otherwise permitted pursuant to this Indenture or the Securities.
31
<PAGE>
Section 305. Registration, Transfer and Exchange.
-----------------------------------
With respect to the Registered Securities of each series, if any, the
Company shall cause to be kept a register (each such register being herein
sometimes referred to as the "Security Register") at an Office or Agency for
-----------------
such series in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of the Registered
Securities of such series and of transfers of the Registered Securities of such
series. Such Office or Agency shall be the "Security Registrar" for that series
------------------
of Securities. Unless otherwise specified in or pursuant to this Indenture or
the Securities, the Trustee shall be the initial Security Registrar for each
series of Securities. The Company shall have the right to remove and replace
from time to time the Security Registrar for any series of Securities;
provided that no such removal or replacement shall be effective until a
- -------- ----
successor Security Registrar with respect to such series of Securities shall
have been appointed by the Company and shall have accepted such appointment. In
the event that the Trustee shall not be or shall cease to be Security Registrar
with respect to a series of Securities, it shall have the right to examine the
Security Register for such series at all reasonable times. There shall be only
one Security Register for each series of Securities.
Upon surrender for registration of transfer of any Registered Security
of any series at any Office or Agency 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 denominated as authorized in or pursuant to this Indenture, of a
like aggregate principal amount bearing a number not contemporaneously
outstanding and containing identical terms and provisions.
At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series containing
identical terms and provisions, in any authorized denominations, and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
any applicable Office or Agency for such series. 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. Registered Securities of any
series may not be exchanged for Bearer Securities.
At the option of the Holder, definitive Bearer Securities of such series
may be exchanged at any time (except as otherwise provided in this Indenture)
for Registered Securities or Bearer Securities of such series containing
identical terms, denominated as authorized in or pursuant to this Indenture and
in the same aggregate principal amount, upon surrender of the Bearer Securities
to be exchanged at any applicable Office or Agency for such series located
outside the United States, with any and all unmatured Coupons and any and all
matured Coupons in default thereto appertaining; provided that if and so long as
-------- ----
Registered Securities of a series are represented solely by a permanent global
32
<PAGE>
Registered Security, such definitive Bearer Securities will only be exchangeable
for an interest in the permanent global Registered Security as set forth in this
Section 305. 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 and the Trustee in an amount equal to the face
amount of such missing Coupon or Coupons, or the surrender of such missing
Coupon or Coupons may be waived by the Company and the Trustee if there is
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Bearer
Security shall surrender to any Paying Agent any such missing Coupon in respect
of which such a payment shall have been made, such Holder shall be entitled to
receive the amount of such payment; provided, however, that, except as otherwise
-------- -------
provided in Section 1002, interest represented by Coupons shall be payable only
upon presentation and surrender of those Coupons at an applicable Office or
Agency for such series located outside the United States. Notwithstanding the
foregoing, in case a Bearer Security of any series is surrendered at any such
Office or Agency for such series in exchange for a Registered Security of such
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 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 of Defaulted Interest, as the case may be (or, if such Coupon is so
surrendered with such Bearer Security, such Coupon shall be returned to the
Person so surrendering the Bearer Security), and interest or Defaulted Interest,
as the case may be, shall not be payable on such Interest Payment Date or
proposed date for payment or Defaulted Interest, as the case may be, in respect
of the Registered Security issued in exchange for such Bearer Security, but
shall be payable only to the Holder of such Coupon when due in accordance with
the provisions of this Indenture.
Whenever any Securities are surrendered for exchange as contemplated by
the immediately preceding two paragraphs, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities (with all Coupons, in the
case of the issuance of Bearer Securities), which the Holder making the exchange
is entitled to receive.
If the Holder of definitive Bearer Securities or definitive Registered
Securities requests in writing that such Securities be exchanged for an interest
in the applicable permanent global Registered Security, such Bearer Securities
or Registered Securities (as the case may be) will be exchangeable into an equal
aggregate principal amount of beneficial interest in the permanent global
Registered Security; provided that in the case of definitive Bearer Securities,
-------- ----
such Bearer Securities are only exchanged in the manner set forth in this
Section 305 with respect to the exchange of definitive Bearer Securities for
Registered Securities and in the case of Registered Securities, such exchange is
made in accordance with the rules and procedures then in effect of the
Depository. Upon any exchange as provided in the immediately preceding sentence,
the Trustee shall cancel such Bearer Securities or Registered Securities (as the
case may be) and cause, or direct any custodian for the permanent global
Registered Security to cause, in accordance with the standing instructions and
procedures existing between the Depository and any such custodian, the aggregate
principal amount of Securities represented by the permanent
33
<PAGE>
global Registered Security to be increased accordingly. If no permanent global
Registered Securities are then outstanding, the Company shall issue and the
Trustee shall authenticate a new permanent global Registered Security in the
appropriate principal amount.
Notwithstanding the foregoing, except as otherwise provided in or
pursuant to this Indenture, any permanent global Registered Security shall be
exchangeable for Definitive Securities only if (i) the Depository is at any time
unwilling, unable or ineligible to continue as Depository or ceases to be a
clearing agency registered under the Exchange Act (if so required by applicable
law or regulation) and a successor depository is not appointed by the Company
within 90 days of the date the Company is so informed in writing, (ii) the
Company executes and delivers to the Trustee a Company Order to the effect that
such permanent global Registered Security shall be so exchangeable or (iii) an
Event of Default has occurred and is continuing with respect to the Securities.
If the beneficial owners of interests in a permanent global Registered Security
are entitled to exchange such interests for Definitive Securities as the result
of an event described in clause (i), (ii) or (iii) of the preceding sentence,
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 such form and denominations as are required by
or pursuant to this Indenture, and of the same series, containing identical
terms and in aggregate principal amount equal to the principal amount of such
permanent global Registered Security, executed by the Company. On or after the
earliest date on which such interests may be so exchanged, such permanent global
Registered Security shall be surrendered from time to time by the U.S.
Depository or such other Depository as shall be specified in the Company Order
with respect thereto, and in accordance with instructions given to the Trustee
and the U.S. Depository or such other Depository, as the case may be (which
instructions shall be in writing but need not be contained in or accompanied by
an Officers' Certificate or be accompanied by an Opinion of Counsel), 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 in part, for
Definitive Securities as described above without charge. The Trustee shall
authenticate and make available for delivery, in exchange for each portion of
such surrendered permanent global Registered Security, a like aggregate
principal amount of Definitive Securities of the same series of authorized
denominations and of like tenor as the portion of such permanent global
Registered Security to be exchanged, which shall be in the form of Registered
Securities; 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 the same series to be redeemed and ending at the close of business on the day
of such selection. Promptly following any such exchange in part, a permanent
global Registered Security for the portions not exchanged shall be returned by
the Trustee to such Depository or the U.S. Depository, as the case may be, or
such other Depository or U.S. Depository referred to above in accordance with
the instructions of the Company referred to above. If a Registered Security is
issued in exchange for any portion of a permanent global Registered Security
after the close of business at the applicable Office or Agency for such Security
where such exchange occurs on or after (i) any Regular Record Date for such
Security and before the opening of business at such Office or Agency on the next
Interest Payment Date, or (ii) any Special Record Date for such Security and
before the opening of business at such Office or Agency on the related proposed
date for payment of Defaulted Interest, as the case may be, interest shall not
be payable on such Interest
34
<PAGE>
Payment Date or proposed date for payment of Defaulted Interest, as the case may
be, in respect of such Registered Security, but shall be payable on such
Interest Payment Date or proposed date for payment of Defaulted Interest, as the
case may be, only to the Person to whom interest in respect of such portion of
such permanent global Registered Security shall be 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 entitling the Holders thereof 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 or redemption shall (if so required by the Company or
the Security Registrar for such Security) be duly endorsed, or be accompanied by
a written instrument of transfer in form satisfactory to the Company and the
Security Registrar for such Security 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, or redemption of Securities, but the Company may require payment of a
sum sufficient to cover any stamp or similar tax or other governmental charge
and any other expenses (including fees and expenses of the Trustee) that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 1107 or 1202, or upon
repayment in part of any Registered Security pursuant to Article Fifteen, in
each case not involving any transfer.
Except as otherwise provided in or pursuant to this Indenture, the
Company shall not be required (i) to issue, register the transfer of or exchange
any Securities during a period beginning at the opening of business 15 days
before the day of the selection for redemption of Securities of like tenor and
the same series under Section 1103 and ending at the close of business on the
day of such selection, or (ii) to register the transfer of or exchange any
Registered Security so selected for redemption in whole or in part, except in
the case of any Security to be redeemed in part, the portion thereof not to be
redeemed, or (iii) to exchange any Bearer Security so selected for redemption
except, to the extent provided with respect to such Bearer Security, that such
Bearer Security may be exchanged for a Registered Security of like tenor and the
same series, provided that such Registered Security shall be immediately
surrendered for redemption with written instruction for payment consistent with
the provisions of this Indenture or (iv) to issue, register the transfer of or
exchange any Security which, in accordance with its terms, has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such
Security not to be so repaid.
Section 306. Mutilated, Destroyed, Lost and Stolen Securities.
------------------------------------------------
If any mutilated Security or a Security with a mutilated Coupon
appertaining to it is surrendered to the Trustee, subject to the provisions of
this Section 306, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the
35
<PAGE>
same series containing identical terms and of like principal amount and bearing
a number not contemporaneously outstanding, with Coupons appertaining thereto
corresponding to the Coupons, if any, appertaining to the surrendered Security;
provided, however, that any Bearer Security or any Coupon shall be delivered
- -------- -------
only outside the United States and, if the Securities of such series are listed
on the London Stock Exchange or the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so
require, such delivery shall occur at the Office or Agency located in London,
Luxembourg or any other required city located outside the United States, as the
case may be, so long as Securities of such series are listed on such exchange;
and provided, further, that all Bearer Securities shall be delivered and
-------- -------
received in person.
If there be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security or Coupon,
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of notice to
the Company or the Trustee that such Security or Coupon has been acquired by a
bona fide purchaser, the Company shall execute and, upon the Company's request
the Trustee shall authenticate and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Security or in exchange for the
Security to which a destroyed, lost or stolen Coupon appertains with all
appurtenant Coupons not destroyed, lost or stolen, a new Security of the same
series containing identical terms and of like principal amount and bearing a
number not contemporaneously outstanding, with Coupons corresponding to the
Coupons, if any, appertaining to such destroyed, lost or stolen Security or to
the Security to which such destroyed, lost or stolen Coupon appertains;
provided, however, that any Bearer Security or any Coupon shall be delivered
- -------- -------
only outside the United States and, if the Securities of such series are listed
on the London Stock Exchange or the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so
require, such delivery shall occur at the Office or Agency located in London,
Luxembourg or any other required city located outside the United States, as the
case may be, so long as Securities of such series are listed on such exchange;
and provided, further, that all Bearer Securities shall be delivered and
-------- -------
received in person.
Notwithstanding the foregoing provisions of this Section 306, in case
any mutilated, destroyed, lost or stolen Security or Coupon has become or will
become due and payable within seven (7) days, the Company in its discretion, but
subject to any conversion rights, may, instead of issuing a new Security, pay
such Security or Coupon; provided, however, that payment of principal of, any
-------- -------
premium or interest on or any Additional Amounts with respect to any Bearer
Securities shall, except as otherwise provided in Section 1002, be payable only
at the applicable Office or Agency for such Securities located outside the
United States and, unless otherwise provided in or pursuant to this Indenture,
any interest on Bearer Securities and any Additional Amounts with respect to
such interest shall be payable only upon presentation and surrender of the
Coupons appertaining thereto.
Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any stamp or similar tax or
other governmental charge that
36
<PAGE>
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.
Every new Security with any Coupons appertaining thereto issued pursuant
to this Section 306 in lieu of any mutilated, destroyed, lost or stolen
Security, or in exchange for a Security to which a mutilated, destroyed, lost or
stolen Coupon appertains shall constitute a separate obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Security and Coupons
appertaining thereto or the mutilated, destroyed, lost or stolen Coupon shall be
at any time enforceable by anyone, and shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Securities of
such series and any Coupons duly issued hereunder.
The provisions of this Section, as amended or supplemented pursuant to
this Indenture with respect to particular Securities or generally, shall be
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities or Coupons.
Section 307. Payment of Interest and Certain Additional Amounts; Rights to
-------------------------------------------------------------
Interest and Certain Additional Amounts Preserved.
- -------------------------------------------------
(a) Unless otherwise provided in or pursuant to this Indenture, any
interest on and any Additional Amounts with respect to any Registered Security
which shall be payable, and are punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name such Security
(or one or more Predecessor Securities) is registered as of the close of
business on the Regular Record Date for such interest.
Unless otherwise provided as contemplated by Section 301 with respect to
the Securities of any series, payment of interest may be made (i) by check
mailed or delivered, in the case of Registered Securities, to the address of the
Person entitled thereto as such address shall appear in the Security Register
or, in the case of Bearer Securities, upon presentation and surrender of the
appropriate Coupon appertaining thereto, or (ii) at the option of the Company
with the consent of any Paying Agent, (1) in the case of a Bearer Security, upon
presentation and surrender of the applicable Coupon at an applicable Office or
Agency for such series outside the United States, except as otherwise provided
in Section 1002, by transfer to an account maintained by the payee with a bank
located outside the United States, or (2) in the case of a Registered Security,
by transfer to an account maintained by the payee with a bank located inside the
United States.
Unless otherwise provided as contemplated by Section 301, every
permanent global Security will provide that interest, if any, payable on any
Interest Payment Date will be paid to DTC, EUROCLEAR and/or CEDEL, as the case
may be, with respect to that portion of such permanent global Security held for
its account by Cede & Co. or the Common Depository, as the case may be, for the
purpose of permitting such party to credit the interest received by it in
respect of such permanent global Security to the accounts of the beneficial
owners thereof.
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Unless otherwise provided in or pursuant to this Indenture, in case a
Bearer Security is surrendered in exchange for a Registered Security after the
close of business at the applicable Office or Agency for such Security on any
Regular Record Date therefor and before the opening of business at such Office
or Agency on the next succeeding Interest Payment Date therefor, such Bearer
Security shall be surrendered without the Coupon relating to such Interest
Payment Date and interest shall not be payable on such Interest Payment Date in
respect of the Registered Security issued in exchange for such Bearer Security,
but shall be payable only to the Holder of such Coupon when due in accordance
with the provisions of this Indenture.
Unless otherwise provided in or pursuant to this Indenture, any interest
on and any Additional Amounts with respect to any Bearer Security shall, except
as otherwise provided in Section 1002, be payable only at an Office or Agency
for such Securities located outside the United States.
Interest on any temporary global Bearer Security shall be payable only
after the issuance of a Definitive Security for which it is exchangeable as
provided in Section 304, except as otherwise provided pursuant to this Indenture
or the Securities.
(b) Unless otherwise provided in or pursuant to this Indenture, any
interest on and any Additional Amounts with respect to any Registered Security
which shall be payable, but shall not be punctually paid or duly provided for,
on any Interest Payment Date for such Registered Security (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder thereof
------------------
on the relevant Regular Record Date by virtue of having been such Holder; and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest
to the Person in whose name such Registered Security (or a Predecessor Security
thereof) shall be 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 such Registered Security 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 on or prior to the date of the
proposed payment, such money when so deposited to be held in trust for the
benefit of the Person entitled to such Defaulted Interest as in this clause
provided. Thereupon, the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10 days
after 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 the Holder of such Registered Security (or a
Predecessor Security thereof) at his address as it appears in the Security
Register not less than 10 days prior to such Special Record Date. The Trustee
may, in its discretion, in the name and at the expense of the Company cause a
similar notice to be published at least once in an Authorized Newspaper of
general circulation in the Borough of Manhattan,
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The City of New York, but such publication shall not be a condition precedent to
the establishment of such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been mailed
as aforesaid, such Defaulted Interest shall be paid to the Person in whose name
such Registered Security (or a Predecessor Security thereof) shall be registered
at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2). In case a Bearer Security is
surrendered at the applicable Office or Agency for such Security in exchange for
a Registered Security after the close of business at such Office or Agency on
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
Defaulted Interest and Defaulted Interest shall not be payable on such proposed
date of payment in respect of the Registered Security issued in exchange for
such Bearer Security, but shall be payable only to the Holder of such Coupon
when due in accordance with the provisions of this Indenture.
(2) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which such Security 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.
(c) In the case of any Registered Security which is converted
into Common Stock pursuant to Article Twelve after any Regular Record Date and
on or prior to the next succeeding Interest Payment Date (other than any
Registered Security whose Maturity is prior to such Interest Payment Date),
interest whose Stated Maturity is on such Interest Payment Date shall be payable
on such Interest Payment Date notwithstanding such conversion, and such interest
(whether or not punctually paid or duly provided for) shall be paid to the
Person in whose name such Registered Security (or one or more Predecessor
Securities) is registered at the close of business on such Regular Record Date.
Except as otherwise expressly provided in the immediately preceding sentence, in
the case of any Security which is converted pursuant to Article Twelve, accrued
interest from the immediately preceding Interest Payment Date until the
Conversion Date shall be payable to the converting Holder within five Business
Days after the Conversion Date. Upon presentment for conversion of any
Securities pursuant to Article Twelve, the Paying Agent shall promptly notify
the Company of the amount of any accrued interest due and owing thereon and the
Company shall pay to the Paying Agent an amount sufficient to pay the accrued
interest due on such Securities and Additional Amounts, if any, thereon, and the
Paying Agent shall apply the amounts so paid to it to the payment of such
accrued interest and Additional Amounts, if any, thereon in accordance with the
terms of the Securities.
(d) Subject to the foregoing provisions of this Section 307 and
Section 305, each Security delivered under this Indenture upon registration of
transfer of or in exchange for or in lieu of any other Security shall carry the
rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.
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Section 308. Persons Deemed Owners.
---------------------
Title to any Bearer Security or Coupon shall pass by delivery. The
Company, the Trustee, the Paying Agent and any other agent of the Company, the
Trustee or the Paying Agent may treat the bearer of any Bearer Security or the
temporary global Bearer Security and the bearer of any Coupon as the absolute
owner of such Security or Coupon, as the case may be, 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, the Paying Agent nor any other agent of the Company, the
Trustee or the Paying Agent shall be affected by notice to the contrary.
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
shall treat the Person in whose name such Registered Security is registered in
the Security Register as the absolute owner of such Registered Security for the
purpose of receiving payment of principal of, any premium and (subject to
Sections 305 and 307) interest on and any Additional Amounts with respect to
such Registered Security and for all other purposes whatsoever, whether or not
any payment with respect to such Registered Security shall be overdue, and
neither the Company, the Trustee or any agent of the Company or the Trustee
shall be affected by notice to the contrary.
No holder of any beneficial interest in any global Security held on its
behalf by a Depository shall have any rights under this Indenture with respect
to such global Security, and such Depository may be treated by the Company, the
Trustee, and any agent of the Company or the Trustee as the owner of such global
Security for all purposes whatsoever. None of the Company, the Trustee, any
Paying Agent, any Conversion Agent or the Security Registrar will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a global Security
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.
Section 309. Cancellation.
------------
All Securities and Coupons surrendered for payment, redemption,
registration of transfer, exchange or conversion or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee, and any such Securities and Coupons, as well as
Securities and Coupons surrendered directly to the Trustee for any such purpose,
shall be canceled promptly by the Trustee. The Company may at any time deliver
to the Trustee for cancellation any Securities or Coupons previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities or Coupons so delivered shall be canceled
promptly by the Trustee. No Securities or Coupons shall be authenticated in lieu
of or in exchange for any Securities or Coupons canceled as provided in this
Section 309, except as expressly permitted by or pursuant to this Indenture. All
canceled Securities and Coupons held by the Trustee shall be destroyed by the
Trustee, unless by a Company Order the Company directs their return to it.
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Section 310. Computation of Interest.
-----------------------
Except as otherwise provided in or pursuant to this Indenture or in the
Securities of any series, interest on the Securities shall be computed on the
basis of a 360-day year of twelve 30-day months.
Section 311. CUSIP Numbers.
-------------
The Company in issuing Registered Securities may use "CUSIP" numbers (if
then generally in use) in addition to serial numbers, and in issuing Bearer
Securities may use "ISIN" numbers (if then generally in use); if so, the Trustee
shall use such "CUSIP" and "ISIN" numbers in addition to serial numbers in
notices of redemption and repayment as a convenience to Holders; provided that
-------- ----
any such notice may state that no representation is made as to the correctness
of such CUSIP and ISIN numbers either as printed on the Securities or as
contained in any notice of a redemption or repayment and that reliance may be
placed only on the serial or other identification numbers printed on the
Securities, and any such redemption or repayment shall not be affected by any
defect in or omission of such CUSIP or ISIN numbers.
Section 312. Notification of Withholding.
---------------------------
The Company shall notify the Trustee in writing of the necessity, if
any, to withhold any amounts from payments to Holders (and the amount of any
such withholding).
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ARTICLE FOUR
SATISFACTION AND DISCHARGE OF INDENTURE
Section 401. Satisfaction and Discharge.
--------------------------
Upon the direction of the Company by a Company Order, this Indenture
shall cease to be of further effect with respect to any series of Securities
specified in such Company Order and any Coupons appertaining thereto (except as
to any surviving rights of conversion, or registration of transfer or exchange
or replacement of Securities herein expressly provided for and any right to
receive Additional Amounts and the Company's obligations to the Trustee pursuant
to Section 606), and the Trustee, on receipt of a Company Order, at the expense
of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture as to such series, when
(1) either
(A) all Securities of such series theretofore authenticated and
delivered and all Coupons appertaining thereto (other than (i) Coupons
appertaining to Bearer Securities of such series surrendered in exchange
for Registered Securities of such series and maturing after such
exchange whose surrender is not required or has been waived as provided
in Section 305, (ii) Securities and Coupons of such series which have
been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 306, (iii) Coupons appertaining to Securities of
such series called for redemption and maturing after the relevant
Redemption Date whose surrender has been waived as provided in Section
1106, and (iv) Securities and Coupons of such series for whose payment
money has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or discharged
from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or
(B) all Securities of such series and any Coupons appertaining
thereto not theretofore delivered to the Trustee or the Paying Agent for
cancellation (other than Securities or Coupons referred to in clauses
(i) through (iii) of clause (A) above)
(i) have become due and payable, or
(ii) will have become due and payable at their Stated Maturity
within one year and such Securities are not convertible into or
exchangeable for other securities, or
(iii) if redeemable at the option of the Company, such Securities
are not convertible into or exchangeable for other securities and 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,
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and the Company, in the case of (i), (ii), or (iii) above, has
irrevocably deposited or caused to be deposited with the Trustee as
trust funds (immediately available to the Holders in the case of clause
(i) above) in trust for such purpose, money in the Currency in which
such Securities are payable in an amount sufficient to pay and discharge
the entire indebtedness on such Securities and any Coupons appertaining
thereto not theretofore delivered to the Trustee for cancellation,
including the principal of, any premium and interest on, and, to the
extent that the Securities of such series provide for the payment of
Additional Amounts thereon and the amount of any such Additional Amounts
is at the time of deposit reasonably determinable by the Company (in the
exercise by the Company of its sole and absolute discretion), any
Additional Amounts with respect to such Securities and any Coupons
appertaining thereto, to the date of such deposit (in the case of
Securities which have become due and payable) or to the Maturity
thereof, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company with respect to the Outstanding Securities of
such series and any Coupons appertaining thereto; 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 as to such series have been complied with.
In the event there are Securities of two or more series hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of such series as to which it is Trustee and if the other conditions
thereto are met.
Notwithstanding the satisfaction and discharge of this Indenture with
respect to any series of Securities, the obligations of the Company to the
Trustee under Section 606, the obligations of the Company to any Authenticating
Agent under Section 612, and, if money shall have been deposited with the
Trustee pursuant to clause (1)(B) of this Section, the obligations of the
Company and the Trustee with respect to the Securities of such series under
Sections 305, 306, 403, 1002 and 1003, and with respect to the payment of
Additional Amounts, if any, with respect to such Securities as contemplated by
Section 1004 (but only to the extent that the Additional Amounts payable with
respect to such Securities exceed the amount deposited in respect of such
Additional Amounts pursuant to Section 401(B)(iii)), shall survive.
Section 402. Defeasance and Covenant Defeasance.
----------------------------------
(1) Unless, pursuant to Section 301, provision is made for either or
both of (i) defeasance of the Securities of or within a series under clause (2)
of this Section 402 or (ii) covenant defeasance of the Securities of or within a
series under clause (3) of this Section 402, such provisions, together with the
other provisions of this Section 402, shall not be applicable to such Securities
and any Coupons appertaining thereto.
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(2) Upon the Company's exercise of the above option applicable to this
Section 402(2) with respect to any Securities of or within a series, the Company
shall be deemed to have been discharged from its obligations with respect to
such Outstanding Securities and any Coupons appertaining thereto on the date the
conditions set forth in clause (4) of this Section 402 are satisfied
(hereinafter, "defeasance"). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Outstanding Securities and any Coupons appertaining thereto,
which shall thereafter be deemed to be "Outstanding" only for the purposes of
clause (5) of this Section 402 and the other Sections of this Indenture referred
to in clauses (i) and (ii) below, and to have satisfied all of its other
obligations under such Securities and any Coupons appertaining thereto and this
Indenture insofar as such Securities and any Coupons appertaining thereto are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (i) the rights of
Holders of such Outstanding Securities and any Coupons appertaining thereto to
receive, solely from the trust fund described in clause (4) of this Section 402
and as more fully set forth in such Section, payments in respect of the
principal of (and premium, if any) and interest, if any, on, and Additional
Amounts, if any, with respect to, such Securities and any Coupons appertaining
thereto when such payments are due, (ii) the obligations of the Company and the
Trustee with respect to such Securities under Sections 304, 305, 306, 403, 1002
and 1003, with respect to the payment of Additional Amounts, if any, on such
Securities as contemplated by Section 1004 (but only to the extent that the
Additional Amounts payable with respect to such Securities exceed the amount
deposited in respect of such Additional Amounts pursuant to Section 402(4)(a)
below), (iii) the rights, powers, trusts, duties and immunities of the Trustee
hereunder, (iv) any rights of conversion or exchange of such Securities and (v)
this Section 402. The Company may exercise its option under this Section 402(2)
notwithstanding the prior exercise of its option under clause (3) of this
Section 402 with respect to such Securities and any Coupons appertaining
thereto.
(3) Upon the Company's exercise of the above option applicable to this
Section 402(3) with respect to any Securities of or within a series, the Company
shall be released from its obligations under Sections 1005 and Section 102 and,
to the extent specified pursuant to Section 301, any other covenant applicable
to such Securities, with respect to such Outstanding Securities and any Coupons
appertaining thereto on and after the date the conditions set forth in clause
(4) of this Section 402 are satisfied (hereinafter, "covenant defeasance"), and
-------------------
such Securities and any Coupons appertaining thereto shall thereafter be deemed
to be not "Outstanding" for the purposes of any direction, waiver, consent or
declaration or Act of Holders (and the consequences of any thereof) in
connection with any such covenant, but shall continue to be deemed "Outstanding"
for all other purposes hereunder. For this purpose, such covenant defeasance
means that, with respect to such Outstanding Securities and any Coupons
appertaining thereto, the Company may omit to comply with, and shall have no
liability in respect of, any term, condition or limitation set forth in any such
Section or such other covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such Section or such other covenant or by
reason
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of reference in any such Section or such other covenant to any other provision
herein or in any other document and such omission to comply shall not constitute
a default or an Event of Default under Section 501(4) or otherwise, as the case
may be, but, except as specified above, the remainder of this Indenture and such
Securities and Coupons appertaining thereto, shall be unaffected thereby.
(4) The following shall be the conditions to application of clause (2)
or (3) of this Section 402 to any Outstanding Securities of or within a series
and any Coupons appertaining thereto:
(a) The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee satisfying the requirements of
Section 607 who shall agree to comply with the provisions of this Section 402
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities and any Coupons appertaining
thereto, (i) an amount in Dollars, or (ii) Government Obligations applicable to
such Securities and Coupons appertaining thereto (determined on the basis of the
Currency in which such Securities and Coupons appertaining thereto are then
specified as payable at Stated Maturity) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment of principal
of (and premium, if any) and interest, if any, on such Securities and any
Coupons appertaining thereto, money in an amount, or (iii) a combination
thereof, in any case, in an amount, sufficient, without consideration of any
reinvestment of such principal and interest, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, (y) the principal of (and premium, if any) and interest, if any, on,
and, to the extent that such Securities provide for the payment of Additional
Amounts thereon and the amount of any such Additional Amounts is at the time of
deposit reasonably determinable by the Company, any Additional Amounts with
respect to, such Outstanding Securities and any Coupons appertaining thereto on
the Stated Maturity of such principal or installment of principal or interest
and (z) any mandatory sinking fund payments or analogous payments applicable to
such Outstanding Securities and any Coupons appertaining thereto on the day on
which such payments are due and payable in accordance with the terms of this
Indenture and of such Securities and any Coupons appertaining thereto.
(b) Such defeasance or covenant defeasance shall not result in a breach
or violation of, or constitute a default under, this Indenture or any other
material agreement or instrument to which the Company is a party or by which it
is bound.
(c) No Default or Event of Default with respect to such Securities and
any Coupons appertaining thereto shall have occurred and be continuing on the
date of such deposit and, with respect to defeasance only, at any time during
the period ending on the 91st day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until the
expiration of such period).
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(d) In the case of an election under clause (2) of this Section 402, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that
(i) the Company has received from the Internal Revenue Service a letter ruling,
or there has been published by the Internal Revenue Service a revenue ruling, or
(ii) since the date of execution of this Indenture, there has been a change in
the applicable Federal income tax law, in either case to the effect that, and
based thereon such opinion shall confirm that, the Holders of such Outstanding
Securities and any Coupons appertaining thereto will not recognize income, gain
or loss for Federal income tax purposes as a result of such defeasance and will
be subject to Federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such defeasance had not occurred.
(e) In the case of an election under clause (3) of this Section 402, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders of such Outstanding Securities and any Coupons appertaining
thereto will not recognize income, gain or loss for Federal income tax purposes
as a result of such covenant defeasance and will be subject to Federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such covenant defeasance had not occurred.
(f) The Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance or covenant defeasance under clause (2) or (3) of
this Section 402 (as the case may be) have been complied with.
(g) The Company shall have delivered to the Trustee an Officers'
Certificate to the effect that neither such Securities nor any other Securities
of the same series, if then listed on any securities exchange, will be delisted
as a result of such deposit.
(h) Such defeasance or covenant defeasance shall not cause the Trustee
to have a conflicting interest within the meaning of the Trust Indenture Act
(assuming all Securities are in default within the meaning of such Act).
(i) Such defeasance or covenant defeasance shall not result in the trust
arising from such deposit constituting an investment company within the meaning
of the Investment Company Act unless such trust shall be registered under such
Act or exempt from registration thereunder.
(j) Notwithstanding any other provisions of this Section 402(4), such
defeasance or covenant defeasance shall be effected in compliance with any
additional or substitute terms, conditions or limitations which may be imposed
on the Company in connection therewith pursuant to Section 301.
(5) Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations (or other property as may be provided pursuant
to Section 301) (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee-- collectively for purposes of this Section 402(5) and
Section 403, the "Trustee") pursuant to clause (4) of Section 402 in respect of
-------
any Outstanding Securities of any series and any Coupons
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<PAGE>
appertaining thereto shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and any Coupons appertaining
thereto and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities and any Coupons
appertaining thereto of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest and Additional Amounts, if any, but
such money need not be segregated from other funds except to the extent required
by law.
The Company shall pay and indemnify the Trustee and its officers,
directors, employees and agents against any tax, fee or other charge, imposed on
or assessed against the Government Obligations deposited pursuant to this
Section 402 or the principal or interest received in respect thereof other than
any such tax, fee or other charge which by law is for the account of the Holders
of such Outstanding Securities and any Coupons appertaining thereto.
Anything in this Section 402 to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or Government Obligations (or other property and any proceeds
therefrom) held by it as provided in clause (4) of this Section 402 which, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect a defeasance or covenant defeasance, as applicable, in accordance with
this Section 402.
Section 403. Application of Trust Money.
--------------------------
Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations deposited with the Trustee pursuant to Section
401 or 402 shall be held in trust and applied by it, in accordance with the
provisions of the Securities, the Coupons appertaining thereto, and this
Indenture, as applicable, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal, premium, interest
and Additional Amounts for whose payment such money has or Government
Obligations have been deposited with or received by the Trustee; but such money
and Government Obligations need not be segregated from other funds except to the
extent required by law.
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ARTICLE FIVE
REMEDIES
Section 501. Events of Default.
-----------------
"Event of Default," wherever used herein with respect to Securities of
----------------
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body) unless
such event is specifically deleted or modified in or pursuant to the
supplemental indenture, a Company Board Resolution or Company Officers'
Certificate establishing the terms of such series pursuant to this Indenture:
(1) default in the payment of any interest on, or any Additional Amounts
payable in respect of any interest on, any Security of such series when such
interest or such Additional Amounts, as the case may be, become due and payable,
and continuance of such default for a period of 10 days; or
(2) default in the payment of the principal of or premium, if any, on,
or any Additional Amounts payable in respect of the principal of or premium, if
any, on any Security of such series when due upon Maturity (whether upon
redemption or otherwise); or
(3) default in the payment of any sinking fund payment, or analogous
payment, when and as due by the terms of a Security of such series; or
(4) default in the performance, or breach, of any covenant or warranty
of the Company in this Indenture or any Security of such series (other than a
covenant or warranty for which the consequences of breach or nonperformance are
addressed elsewhere in this Section 501 or in the Securities or in a covenant or
warranty which has expressly been included in this Indenture or a Security of
that series, whether or not by means of a supplemental Indenture, solely for the
benefit of Securities of a series other than such series), and continuance of
such default or breach for a period of 60 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of such series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a
"Notice of Default" hereunder; or
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(5) the Company pursuant to or under or within the meaning of any
Bankruptcy Law:
(a) commences a voluntary case or proceeding;
(b) consents to the entry of an order for relief against it in an
involuntary case or proceeding or the commencement of any case against
it;
(c) consents to the appointment of a Custodian of it or for any
substantial part of its property;
(d) makes a general assignment for the benefit of its creditors;
(e) files a petition in bankruptcy or answer or consent seeking
reorganization or relief; or
(f) consents to the filing of such petition or the appointment of
or taking possession by a Custodian; or
(6) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:
(a) is for relief against the Company in an involuntary case or
proceeding, or adjudicates the Company insolvent or bankrupt;
(b) appoints a Custodian of the Company or for any substantial
part of their respective property; or
(c) orders the winding up or liquidation of the Company;
and the order or decree remains unstayed and in effect for 20
consecutive days; or
(7) a default by the Company (including a default with respect to
Securities of any series other than that series) under any indenture, including
this Indenture, or instrument evidencing, or under which the Company has at the
date of this Indenture or shall hereafter have, any indebtedness for money
borrowed with a principal amount then outstanding in excess of $25,000,000 or
such other amount as may be specified in the Company's Board Resolutions or
Officers' Certificate establishing the series (or the equivalent in any other
currency) shall happen and be continuing and such indebtedness shall have been
accelerated so that the same shall be or become due and payable prior to the
date on which the same would otherwise have become due and payable, or a default
in payment of such indebtedness at its stated maturity shall have occurred, and
such indebtedness shall not have been discharged or such acceleration shall not
be rescinded or annulled within 20 days after written notice thereof shall have
been given, by registered or certified mail, to the Company by the Trustee, or
to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of that series; provided,
--------
49
<PAGE>
however, that if such default under such indenture or instrument shall be
- -------
remedied or cured by the Company or waived by the holders of such indebtedness,
then 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 any of the Holders; provided, further, however,
-------- -------
that subject to the provisions of Section 601, the Trustee will not be
considered to have knowledge of any default by the Company under this Section
501 unless the Trustee shall have received written or actual notice of such
default; or
(8) any other Event of Default provided in or pursuant to this Indenture
with respect to Securities of such series."
"Bankruptcy Law" means Title 11, United States Code, or any similar
--------------
Federal or state law for the relief of debtors. "Custodian" means any receiver,
---------
trustee, assignee, liquidator, sequestrator, custodian or similar official under
any Bankruptcy Law.
Section 502. 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 throughout the period permitted under
this Indenture or any supplemental indenture to cure such default, then the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of such series may declare the principal (or, if any
Securities are Original Issue Discount Securities or Indexed Securities, such
portion of the principal as may be specified in the terms thereof) of all the
Securities of such series, or such lesser amount as may be provided for in the
Securities of such series, to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holders), and upon
any such declaration such principal or such lesser amount shall become
immediately due and payable.
Notwithstanding any other provision of Section 502, if an Event of
Default specified in Section 501(5) or 501(6) occurs, all principal of, any
premium and interest on, and any Additional Amounts on the Securities then
Outstanding shall be immediately due and payable without any declaration or
other act on the part of the Trustee or the Holders.
At any time after Securities of any series have been accelerated and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter in this Article Five provided, the Holders of not
less than a majority in principal amount of the Outstanding Securities of such
series, by written notice to the Company and the Trustee, may rescind and annul
such declaration and its consequences if:
(1) the Company has paid or deposited with the Trustee a sum of money
sufficient to pay
(a) all overdue installments of any interest on any Securities of such
series and any Coupons appertaining thereto and any Additional Amounts with
respect thereto,
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<PAGE>
(b) the principal of and any premium on any Securities of such series
which have become due otherwise than by such declaration of acceleration and any
Additional Amounts with respect thereto and, to the extent the payment of such
interest is lawful, interest thereon at the rate or rates borne by or provided
for in such Securities,
(c) to the extent that payment of such interest is lawful, interest upon
overdue installments of any interest and any Additional Amounts with respect
thereto at the rate or rates borne by or provided for in such Securities, and
(d) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel and all other amounts due the Trustee under Section 606;
and
(2) all Events of Default with respect to Securities of such series,
other than the non-payment of the principal of, any premium and interest on, and
any Additional Amounts with respect to Securities of such series which shall
have become due solely by such declaration of acceleration, shall have been
cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any
right consequent thereon.
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee.
---------------------------------------------------------------
The Company covenants that if
(1) default is made in the payment of any installment of interest on or
any Additional Amounts with respect to any Security or any Coupon appertaining
thereto when such interest or Additional Amounts shall have become due and
payable and such default continues for a period of 10 days, or
(2) default is made in the payment of the principal of or any premium on
any Security at its Maturity,
the Company shall, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities and any Coupons appertaining thereto,
the whole amount of money then due and payable with respect to such Securities
and any Coupons appertaining thereto, with interest upon the overdue principal,
any premium and, to the extent that payment of such interest shall be legally
enforceable, upon any overdue installments of interest and Additional Amounts at
the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount of money 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 and all other
amounts due to the Trustee under Section 606.
If the Company fails to pay the money it is required to pay the Trustee
pursuant to the preceding paragraph, forthwith upon the demand of the Trustee,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the money
51
<PAGE>
so due and unpaid, and may prosecute such proceeding to judgment or final
decree, and may enforce the same against the Company or any other obligor upon
such Securities and any Coupons appertaining thereto and collect the monies
adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon such Securities and any
Coupons appertaining thereto, wherever situated.
If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series
and any Coupons appertaining thereto 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 such Securities or in aid of the exercise of any power granted
herein or therein, or to enforce any other proper remedy.
Section 504. Trustee May File Proofs of Claim.
--------------------------------
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of any overdue principal, premium, interest or
Additional Amounts) 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, including:
(1) to file and prove a claim for the whole amount, or such lesser
amount as may be provided for in the Securities of such series, of the principal
and any premium, interest and Additional Amounts owing and unpaid in respect of
the Securities and any Coupons appertaining thereto and to file such other
papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents or counsel) and of the
Holders of Securities or any Coupons allowed in such judicial proceeding, and
(2) to collect and receive any monies 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 of Securities or any Coupons 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 of Securities or any Coupons, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel and any other amounts due the
Trustee under Section 606.
52
<PAGE>
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a Security
or any Coupon any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or Coupons or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder of a
Security or any Coupon in any such proceeding; provided, however, that the
Trustee may, on behalf of the Holders of Securities or any Coupons, vote for the
election of a trustee in bankruptcy or similar official and be a member of a
creditors or other similar committee.
Section 505. Trustee May Enforce Claims Without Possession of Securities or
--------------------------------------------------------------
Coupons.
- -------
All rights of action and claims under this Indenture or any of the
Securities or Coupons may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or Coupons or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery or judgment, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, shall be for the ratable benefit of each and every Holder of a
Security or Coupon in respect of which such judgment has been recovered.
Section 506. Application of Money Collected.
------------------------------
Subject to Article Thirteen, any money collected by the Trustee pursuant
to this Article Five shall be applied in the following order, at the date or
dates fixed by the Trustee and, in case of the distribution of such money on
account of principal, or any premium, interest or Additional Amounts, upon
presentation of the Securities or Coupons, or both, as the case may be, 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 and any predecessor
Trustee under Section 606;
SECOND: To the payment of the amounts then due and unpaid upon the
Securities and any Coupons for principal and any premium, interest and
Additional Amounts 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 aggregate amounts due and payable on such Securities and
Coupons for principal and any premium, interest and Additional Amounts,
respectively;
THIRD: The balance, if any, to the Person or Persons entitled thereto.
Section 507. Limitations on Suits.
--------------------
No Holder of any Security of any series or any Coupons appertaining
thereto shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, the Securities of any series or any Coupons
appertaining thereto, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless:
53
<PAGE>
(1) such Holder has previously given written notice to the Trustee of a
continuing Event of Default with respect to the Securities of such series;
(2) the Holders of not less than 25% in principal amount of the
Outstanding Securities of such series shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request;
(4) the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been given
to the Trustee during such 60-day period by the Holders of a majority in
principal amount of the Outstanding Securities of such series;
it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture or any Security to affect, disturb or prejudice the rights of
any other such Holders or Holders of Securities of any other series, or to
obtain or to seek to obtain priority or preference over any other Holders or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal and ratable benefit of all such Holders.
Section 508. Unconditional Right of Holders to Receive Principal and Any
-----------------------------------------------------------
Premium, Interest and Additional Amounts.
- ----------------------------------------
Notwithstanding any other provision in this Indenture, the Holder of any
Security or Coupon shall have the right, which is absolute and unconditional, to
receive payment of the principal of, any premium and (subject to Section 307)
interest on, and any Additional Amounts with respect to such Security or such
Coupon, as the case may be, on the respective Stated Maturity or Maturities
therefor specified in such Security or Coupon (or, in the case of redemption, on
the Redemption Date or, in the case of repayment at the option of such Holder if
provided in or pursuant to this Indenture, on the Repayment Date) and to convert
such Security in accordance with Article Twelve (if conversion is permitted by
the terms of such Security), and to institute suit for the enforcement of any
such payment and right to convert, and such rights shall not be impaired without
the consent of such Holder.
Section 509. Restoration of Rights and Remedies.
----------------------------------
If the Trustee or any Holder of a Security or a Coupon 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 the Company, the Trustee and each such Holder shall, subject to any
determination in such proceeding, be restored severally and respectively to
their
54
<PAGE>
former positions hereunder, and thereafter all rights and remedies of the
Trustee and each such Holder shall continue as though no such proceeding had
been instituted.
Section 510. Rights and Remedies Cumulative.
------------------------------
Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities or Coupons in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to each and every Holder of a Security or a Coupon is intended
to be exclusive of any other right or remedy, and every right and remedy, to the
extent permitted by law, shall 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, to the extent permitted by law, prevent the
concurrent assertion or employment of any other appropriate right or remedy.
Section 511. Delay or Omission not Waiver.
----------------------------
No delay or omission of the Trustee or of any Holder of any Security or
Coupon to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. Every right and remedy given by this Article
Five or by law to the Trustee or to any Holder of a Security or a Coupon may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or (subject to the limitations contained in this Indenture) by such
Holder, as the case may be.
Section 512. Control by Holders of Securities.
--------------------------------
The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the
Securities of such series and any Coupons appertaining thereto, provided that
(1) such direction shall not be in conflict with any rule of law or with
this Indenture or with the Securities of such series,
(2) the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction, and
(3) such Holders have offered the Trustee an indemnity reasonably
satisfactory to it against any loss, cost, liability or expense that might been
incurred by the Trustee in following such direction.
Section 513. Waiver of Past Defaults.
-----------------------
The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series on behalf of the Holders of all the
Securities of such series and any Coupons
55
<PAGE>
appertaining thereto may waive any past default hereunder with respect to such
series and its consequences, except a default
(1) in the payment of the principal of, any premium or interest on, or
any Additional Amounts with respect to, any Security of such series or any
Coupons appertaining thereto, or
(2) in respect of a covenant or provision hereof which under Article
Nine cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected.
Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
Section 514. Waiver of Usury, Stay or Extension Laws.
---------------------------------------
The Company covenants that (to the extent that it may lawfully do so) it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company expressly waives (to the
extent that it may lawfully do so) all benefit or advantage of any such law and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.
Section 515. Undertaking for Costs.
---------------------
All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of any
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions
of this Section 515 shall not apply to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in principal amount of Outstanding Securities of any series, or to
any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest, if any, on or Additional Amounts,
if any, with respect to any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date, and, in the case of repayment, on or after the date
for repayment) or for the enforcement of the right to convert any Security in
accordance with Article Twelve.
56
<PAGE>
ARTICLE SIX
THE TRUSTEE
Section 601. Certain Rights of Trustee; Certain Duties and Responsibilities.
--------------------------------------------------------------
Subject to Sections 315(a) through 315(d) of the Trust Indenture Act:
(1) the Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, coupon, other evidence of indebtedness or other paper or
document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(2) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or a Company Order (in each case,
other than delivery of any Security, together with any Coupons appertaining
thereto, to the Trustee for authentication and delivery pursuant to Section 303
which shall be sufficiently evidenced as provided therein) and any resolution of
the Board of Directors of the Company shall be sufficiently evidenced by a Board
Resolution of the Company;
(3) whenever in the administration of this Indenture the Trustee shall
deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
shall be herein specifically prescribed) may, in the absence of bad faith on its
part, rely upon an Officers' Certificate;
(4) the Trustee may consult with counsel of its selection and the advice
of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;
(5) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by or pursuant to this Indenture at the request or
direction of any of the Holders of Securities of any series or any Coupons
appertaining thereto 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;
(6) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine,
during business hours
57
<PAGE>
and upon reasonable notice, the books, records and premises of the Company,
personally or by agent or attorney;
(7) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder;
(8) 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
(9) 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 this paragraph (9) shall not
be construed to limit the effect of paragraph (8) of this Section;
(a) the Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer, unless it shall be proved
that the Trustee was negligent in ascertaining the pertinent
facts; and
(b) 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 Securities 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.
The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act. Notwithstanding the foregoing, 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 indemnity reasonably
satisfactory to it against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section
601.
Section 602. Notice of Defaults.
------------------
Within 90 days after the occurrence of any Default (actually known to a
Responsible Officer of the Trustee) hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of
such series entitled to receive reports pursuant to Section 703(3), notice of
such Default hereunder known to the Trustee, unless such Default shall have been
cured or waived; provided, however, that, except in the case of a default in the
--------- --------
payment of the principal of (or premium, if any), or interest, if any, on, or
Additional Amounts or any sinking fund or purchase fund installment with respect
to, any Security of such series, the Trustee shall be protected in withholding
such notice if and so long as the board of directors, the
58
<PAGE>
executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determine that the withholding of such
notice is in the best interest of the Holders of Securities and Coupons of such
series, and provided, further, that in the case of any Default of the character
specified in Section 501(4) with respect to Securities of such series, no such
notice to Holders shall be given until at least 60 days after the occurrence
thereof.
Section 603. Not Responsible for Recitals or Issuance of Securities.
------------------------------------------------------
The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, and in any Coupons shall be taken as
the statements of the Company, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or Coupons appertaining thereto or the Common Stock issuable upon the
conversion of Securities in accordance with the provisions of Article Twelve,
except that the Trustee represents that it is duly authorized to execute and
deliver this Indenture, authenticate the Securities and perform its obligations
hereunder and that the statements made by it in a Statement of Eligibility and
Qualification on Form T-1 supplied to the Company are true and accurate, subject
to the qualifications set forth therein. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of the Securities or the proceeds thereof.
Section 604. May Hold Securities; Act as Trustee Under Other Indenture.
---------------------------------------------------------
The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other Person that may be an agent of the Trustee or the
Company, in its individual or any other capacity, may become the owner or
pledgee of Securities or Coupons and, subject to Sections 310(b) and 311 of the
Trust Indenture Act, may otherwise deal with the Company with the same rights it
would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.
The Trustee may become and act as trustee under other indentures under
which other securities, or certificates of interest or participation in other
securities, of the Company are outstanding in the same manner as if it were not
Trustee hereunder.
Section 605. Money Held in Trust.
-------------------
Except as provided in Section 403 and Section 1003, money held by the
Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law and shall be held uninvested. The Trustee shall be under
no liability for interest on any money received by it hereunder except as
otherwise agreed in writing with the Company.
59
<PAGE>
Section 606. Compensation and Reimbursement.
------------------------------
The Company agrees:
(1) to pay to the Trustee from time to time reasonable compensation as
shall be agreed in writing between the Company on the one hand and the Trustee
on the other for all services rendered by the Trustee hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);
(2) 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 the Trustee's negligence or bad faith; and
(3) to indemnify the Trustee and its officers, directors, employees and
agents for, and to hold them harmless against, any loss, liability or expense
incurred without negligence or bad faith on their 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 themselves against any
claim or liability in connection with the exercise or performance of any of
their powers or duties hereunder, except to the extent that any such loss,
liability or expense was due to the Trustee's negligence or bad faith. The
indemnification provided for herein shall survive the termination of this
Indenture or the earlier resignation or removal of the Trustee.
As security for the performance of the obligations of the Company under
this Section 606, the Trustee shall have a lien prior to the Securities of any
series upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of, and premium or
interest on or any Additional Amounts with respect to Securities or any Coupons
appertaining thereto.
Any compensation or expense incurred by the Trustee after a default
specified by Section 501 is intended to constitute an expense of administration
under any then applicable bankruptcy or insolvency law. "Trustee" for purposes
-------
of this Section 606 shall include any predecessor Trustee but the negligence or
bad faith of any Trustee shall not affect the rights of any other Trustee under
this Section 606.
Section 607. Corporate Trustee Required; Eligibility.
---------------------------------------
There shall at all times be a Trustee hereunder that is a Corporation,
organized and doing business under the laws of the United States, eligible under
Section 310(a)(1) of the Trust Indenture Act to act as trustee under an
indenture qualified under the Trust Indenture Act and that has a combined
capital and surplus (computed in accordance with Section 310(a)(2) of the Trust
Indenture Act) of at least $50,000,000 subject to supervision or examination by
Federal or state authority. 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.
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Section 608. Resignation and Removal; Appointment of Successor.
-------------------------------------------------
(1) 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 pursuant to Section 609.
(2) 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 609 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.
(3) 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.
(4) If at any time:
(a) the Trustee shall fail to comply with the obligations imposed
upon it under Section 310(b) of the Trust Indenture Act with respect to
Securities of any series after written request therefor by the Company or
any Holder of a Security of such series who has been a bona fide Holder
of a Security of such series for at least six months, or
(b) the Trustee shall cease to be eligible under Section 607 and
shall fail to resign after written request therefor by the Company or any
such Holder, or
(c) the Trustee shall become incapable of acting or shall be
adjudged to be bankrupt or insolvent or a receiver of the Trustee or of
its property shall be appointed or any public officer shall take charge
or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company, by or pursuant to a Board
Resolution, may remove the Trustee with respect to all Securities or the
Securities of such series, or (ii) subject to Section 315(e) of the Trust
Indenture Act, any Holder of a Security 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 removal of the Trustee with respect to all Securities of such series and the
appointment of a successor Trustee or Trustees.
(5) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by or pursuant to
a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being
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understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall
be only one Trustee with respect to the Securities of any particular series) and
shall comply with the applicable requirements of Section 609. 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
609, 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 of Securities and accepted
appointment in the manner required by Section 609, any Holder of a Security 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.
(6) 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 mailing
written notice of event by first-class mail, postage prepaid, to the Holders of
Registered Securities, if any, of such series as their names and addresses
appear in the Security Register and, if Securities of such series are issued as
Bearer Securities, by publishing notice of such event once in an Authorized
Newspaper in each Place of Payment located outside the United States. 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.
(7) The retiring Trustee shall not be liable for any of the acts or
omissions of any successor Trustee appointed hereunder.
(8) No appointment of a successor Trustee shall be effective until all
fees, charges and expenses of the retiring Trustee not subject to any good faith
dispute, have been paid.
Section 609. Acceptance of Appointment by Successor.
--------------------------------------
(1) Upon the appointment hereunder of any successor Trustee with respect
to all Securities, such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and 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 hereunder of the retiring Trustee; but, on the request
of the Company or such successor Trustee, such retiring Trustee, upon payment of
its charges, shall execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and,
subject to Section 1003, shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder, subject nevertheless to its claim, if any, provided for in
Section 606.
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(2) Upon the appointment hereunder of any successor Trustee with respect
to the Securities of one or more series, the Company, the retiring Trustee and
such successor Trustee shall execute and deliver an indenture supplemental
hereto wherein each successor Trustee shall accept such appointment and which
(a) shall contain such provisions as shall be necessary or desirable to transfer
and confirm to, and to vest in, such 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, (b)
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
(c) 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, that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee and that no Trustee shall be responsible for any notice
given to, or received by, or any act or failure to act on the part of any other
Trustee hereunder, 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, such retiring Trustee shall have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates other than as hereinafter
expressly set forth, 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 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 such successor Trustee, such retiring Trustee, upon
payment of its charges with respect to the Securities of that or those series to
which the appointment of such successor relates and subject to Section 1003
shall duly assign, transfer and deliver to such successor Trustee, to the extent
contemplated by such supplemental indenture, the property and money held by
retiring Trustee hereunder with respect to the securities of that or those
series to which the appointment of such successor Trustee relates, subject to
its claim, if any, provided for in Section 606.
(3) Upon request of any Person appointed hereunder as a 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 (1) or (2) of this Section, as the
case may be.
(4) No Person shall accept its appointment hereunder as a successor
Trustee unless at the time of such acceptance such successor Person shall be
qualified and eligible under this Article Six.
Section 610. 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
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to which the Trustee shall be a party, or any Corporation succeeding to all or
all of the corporate trust business of the Trustee, shall be the successor of
the Trustee hereunder, provided such Corporation shall be otherwise qualified
and eligible under this Article Six, 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.
Section 611. Preferential Collection of Claims Against Company.
-------------------------------------------------
If and when the Trustee shall be or become a creditor of the Company or
any other obligor upon the Securities, the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company or any such other obligor.
Section 612. Appointment of Authenticating Agent.
-----------------------------------
The Trustee may appoint one or more Authenticating Agents acceptable to
the Company with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of that or
those series issued upon original issue, exchange, registration of transfer,
partial redemption or partial repayment, or pursuant to Section 306, 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, except
as provided in or pursuant to this Indenture, shall at all times be a
corporation that would be permitted by the Trust Indenture Act to act as trustee
under an indenture qualified under the Trust Indenture Act, is authorized under
applicable law and by its charter to act as an Authenticating Agent and has a
combined capital and surplus (computed in accordance with Section 310(a)(2) of
the Trust Indenture Act) of at least $50,000,000. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it 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 all or substantially all of
the corporate agency or corporate trust business of an Authenticating Agent,
shall be the successor of such Authenticating Agent hereunder, provided such
corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.
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An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and 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 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 (i) mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of
Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (ii) if Securities of the series are issued as Bearer
Securities, publish notice of such appointment at least once in an Authorized
Newspaper in the place where such successor Authenticating Agent has its
principal office if such office is located outside the United States. 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 each Authenticating Agent from time to time
reasonable compensation for its services under this Section. If the Trustee
makes such payments, it shall be entitled to be reimbursed for such payments,
subject to the provisions of Section 606.
The provisions of Sections 308, 603 and 604 shall be applicable to each
Authenticating Agent.
If an Authenticating Agent is appointed with respect to one or more
series of Securities pursuant to this Section, the Securities of such series may
have endorsed thereon, in addition to or in lieu of the Trustee's certificate of
authentication, an alternate certificate of authentication in substantially the
following form:
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
Dated: [NAME OF TRUSTEE],
----------------------- As Trustee
By: [NAME OF AUTHENTICATION AGENT]
As Authenticating Agent
By:
-------------------------
Authorized Officer
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If all of the Securities of any 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 where the
Company wishes to have Securities of such series authenticated upon original
issuance, the Trustee, if so requested in writing (which writing need not be
accompanied by or contained in an Officers' Certificate by the Company), shall
appoint in accordance with this Section 612 an Authenticating Agent having an
office in a Place of Payment designated by the Company with respect to such
series of Securities.
Section 613. Conflicting Interests.
---------------------
If the Trustee has or shall acquire any conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series or a trustee under prior indentures between
the Company and the Trustee that have not been satisfied and discharged and that
may be excluded by the proviso to Section 310(b)(1) of the Trust Indenture Act.
Section 614. Protection of Agents.
--------------------
Any Authenticating Agent, Conversion Agent, Paying Agent or Securities
Registrar hereunder shall be entitled to all of the rights, immunities,
indemnities and protections afforded to the Trustee hereunder.
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ARTICLE SEVEN
HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and Addresses of Holders.
---------------------------------------------------------
In accordance with Section 312(a) of the Trust Indenture Act, with
respect to each series of the Securities, the Company shall furnish or cause to
be furnished to the Trustee:
(1) semi-annually, not later than 15 days after the Regular Record Date
or upon such other dates as are set forth in or pursuant to the Board Resolution
or indenture supplemental hereto authorizing such series, a list for each series
of Securities, in such form as the Trustee may reasonably require, of the names
and addresses of Holders of Registered Securities as of the applicable date, and
(2) at such other times as the Trustee may request in writing, within 30
days after the receipt by the Company of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished, excluding from any such list names and addresses received by the
Trustee in its capacity as Security Registrar.
Section 702. Preservation of Information; Communications to Holders.
------------------------------------------------------
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 701 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 701 upon receipt of a new list so furnished.
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.
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 any of them, shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the
Holders of Securities in accordance with Section 312(c) 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 312(b) of the Trust Indenture Act.
Section 703. Reports by Trustee.
------------------
(1) Within 60 days after August 30 of each year commencing with
the first August 30 following the first issuance of Securities pursuant
to Section 301, if required by Section 313(a) of the Trust Indenture Act,
the Trustee shall
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transmit, pursuant to Section 313(c) of the Trust Indenture Act, a brief
report dated as of such August 30 with respect to any of the events
specified in said Section 313(a) which may have occurred since the later
of the immediately preceding August 30 and the date of this Indenture.
(2) The Trustee shall transmit to Holders the reports concerning
the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times and in the manner
specified therein.
(3) Reports pursuant to this Section shall be transmitted in the
manner and to the Persons required by Sections 313(c) and 313(d) of the
Trust Indenture Act.
Section 704. Reports by Company.
------------------
The Company, pursuant to Section 314(a) of the Trust Indenture Act,
shall:
(1) file with the Trustee, within 15 days after the Company is
required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to
time by rules and regulations prescribe) which the Company may be
required to file with the Commission pursuant to Section 13 or Section
15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of said Sections,
then it shall file with the Trustee and the Commission, in accordance
with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents
and reports which may be required pursuant to Section 13 of the Exchange
Act in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules
and regulations;
(2) file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission,
such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and
regulations; and
(3) transmit within 30 days after the filing thereof with the
Trustee, in the manner and to the extent provided in Section 313(c) of
the Trust Indenture Act, such summaries of any information, documents and
reports required to be filed by the Company pursuant to paragraphs (1)
and (2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission .
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ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
Section 801. Company May Consolidate, Etc., Only on Certain Terms.
----------------------------------------------------
The Company shall not consolidate with or merge into any other Person or
convey, transfer or lease all or substantially all of its properties and assets
to any Person, and the Company shall not permit any Person to consolidate with
or merge into the Company or convey, transfer or lease all or substantially all
of its properties and assets to the Company unless either:
(a) in case the Company shall consolidate with or merge into
another Person or convey, transfer or lease all or substantially all of
its properties and assets to any Person, the Person formed by such
consolidation or into which the Company is merged or the Person which
acquires by conveyance or transfer, or which leases, all or substantially
all of the properties and assets of the Company shall be (i) a
corporation, limited liability company, partnership or trust organized
and validly existing under the laws of the United States or (ii) a
corporation, limited liability company, partnership or trust organized
and validly existing under the laws of a jurisdiction other than the
United States (a "Foreign Entity") that 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 and Additional
Amounts on all the Securities and Coupons and the performance and
observance of every covenant of this Indenture on the part of the Company
to be performed or observed and shall have provided for conversion rights
in accordance with Article Twelve. In the event that such Person is a
Foreign Entity, it shall expressly agree to make payments under the
Securities and Coupons free of any deduction or withholding for any and
all then existing or future withholding taxes, levies, imposts and
charges whatsoever imposed by or for the account of the jurisdiction
where such Foreign Entity is generally subject to taxation (or any
political subdivision or taxing authority thereof or therein) in a manner
equivalent to that set forth herein, subject to the exceptions contained
elsewhere herein;
(b) immediately after giving effect to such transaction and
treating any indebtedness which becomes an obligation of the Company or
one of its Subsidiaries as a result of such transaction as having been
incurred by the Company or such Subsidiary at the time of such
transaction, no Event of Default, and no event which, after notice or
lapse of time or both, would become an Event of Default, shall have
happened and be continuing; and
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(c) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction,
such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction
have been complied with.
Section 802. Successor Corporation Substituted.
---------------------------------
Upon any consolidation by the Company with or merger by the Company into
any other Person or any conveyance, transfer or lease of all or substantially
all of the properties and assets of the Company, in accordance with Section 801,
the successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer or lease is made, shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures Without Consent of Holders.
--------------------------------------------------
Without the consent of any Holders of Securities or Coupons, 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:
(1) to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants of the Company contained
herein and in the Securities; or
(2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (as shall be specified in such
supplemental indenture or indentures and if such covenants are to be for the
benefit of less than all series of Securities, stating that such covenants are
being included solely for the benefit of such series) or to surrender any right
or power herein conferred upon the Company; or
(3) to add to or change any of the provisions of this Indenture to
provide that Bearer Securities may be registrable as to principal, to change or
eliminate any restrictions on the
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payment of principal of, any premium or interest on or any Additional Amounts
with respect to Securities, to permit Bearer Securities to be issued in exchange
for Registered Securities, to permit Bearer Securities to be exchanged for
Bearer Securities of additional authorized denominations or to permit or
facilitate the issuance of Securities in uncertificated form, provided any such
action shall not adversely affect the interests of the Holders of Securities of
any series or any Coupons appertaining thereto in any material respect; or
(4) to establish the form or terms of Securities of any series and any
Coupons appertaining thereto as permitted by Sections 201 and 301; or
(5) 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 609;
or
(6) to cure any ambiguity or 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 which shall not adversely affect the interests of the
Holders of Securities of any series then Outstanding or any Coupons appertaining
thereto in any material respect; or
(7) to add any additional Events of Default with respect to all or any
series of Securities (as shall be specified in such supplemental indenture and
if such additional Events of Default are to be for the benefit of less than all
series of Securities, stating that such additional Event of Default are
expressly being included solely for the benefit of such series); or
(8) to supplement any of the provisions of this Indenture to such extent
as shall be necessary to permit or facilitate the defeasance and discharge of
any series of Securities pursuant to Article Four, provided that any such action
shall not adversely affect the interests of any Holder of a Security of such
series and any Coupons appertaining thereto or any other Security or Coupon in
any material respect; or
(9) to secure the Securities; or
(10) to amend or supplement any provision contained herein or in any
supplemental indenture (which amendment or supplement may apply to one or more
series of Securities or to one or more Securities within any series as specified
in such supplemental indenture or indentures), provided that such amendment or
supplement does not apply to any Outstanding Security issued prior to the date
of such supplemental indenture and entitled to the benefits of such provision or
modify the rights of the Holder of any such Security with respect to such
provision.
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Section 902. Supplemental Indentures With Consent of Holders.
-----------------------------------------------
With the consent of the Holders of not less than a majority in principal
amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by 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 the Securities of such series 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, without the consent of the Holder of each Outstanding Security
affected thereby, shall
(1) change the Stated Maturity of the principal of, or any
premium or installment of principal or interest on or any Additional
Amounts with respect to, any Security, or any sinking fund or analogous
payment in respect thereof, or reduce the principal amount thereof or the
rate (or modify the calculation of such rate) of interest thereon or any
Additional Amounts with respect thereto, or any premium payable upon the
redemption thereof or otherwise, or change the obligation of the Company
to pay Additional Amounts pursuant to Section 1004, or reduce the amount
of the principal of any Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section
502 or the amount thereof provable in bankruptcy pursuant to Section 504,
adversely affect the right of repayment at the option of any Holder as
contemplated by Article Fifteen, or change the provisions of Article Ten
relating to Place of Payment for Bearer Securities being located outside
the United States, or the Currency in which the principal of, any premium
or interest on, or any Additional Amounts with respect to any Security or
any sinking or analogous fund payment in respect thereof, 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 or, in the case of repayment
at the option of the Holder, on or after the Repayment Date) or, except
as permitted by Article Twelve, adversely affect in any material respect
the right to convert or exchange any Security, or
(2) reduce the percentage in principal amount of the Outstanding
Securities of any series, the consent of whose Holders is required for
any such supplemental indenture, or the consent of whose Holders is
required for any waiver (of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or reduce the requirements of Section 1604 for
quorum or voting, or
(3) modify any of the provisions of this Section, Section 513 or
Section 1001, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Outstanding Security affected
thereby.
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A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which shall have been included expressly and
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 of Securities under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.
Section 903. Execution of Supplemental Indentures.
------------------------------------
As a condition to executing, or accepting the additional trusts created
by, any supplemental indenture permitted by this Article Nine or the
modifications thereby of the trust created by this Indenture, the Trustee shall
be entitled to receive, and (subject to Section 315 of the Trust Indenture Act)
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 and an Officers' Certificate stating that all conditions precedent to
the execution of supplemental indenture have been fulfilled. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise.
Section 904. Effect of Supplemental Indentures.
---------------------------------
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of a Security theretofore or thereafter authenticated and delivered hereunder
and of any Coupon appertaining thereto shall be bound thereby.
Section 905. 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 such securities authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.
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Section 906. Conformity with Trust Indenture Act.
-----------------------------------
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal, Any Premium, Interest and Additional
----------------------------------------------------------
Amounts.
-------
The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of, any premium
and interest on and any Additional Amounts with respect to the Securities of
each series in accordance with the terms thereof, any Coupons appertaining
thereto and this Indenture. Any interest due on any Bearer Security on or before
the Maturity thereof, and any Additional Amounts payable with respect to such
interest, shall be payable only upon presentation and surrender of the Coupons
appertaining thereto for such interest as they severally mature.
Section 1002. Maintenance of Office or Agency.
-------------------------------
The Company shall maintain in each Place of Payment for any series of
Securities, an Office or Agency where Securities of such series (but not Bearer
Securities, except as otherwise provided below, unless such Place of Payment is
located outside the United States) may be presented or surrendered for payment,
where Securities of such series may be surrendered for registration of transfer
or exchange, where Registered Securities may be surrendered for conversion,
where Bearer Securities may be surrendered for conversion in the circumstances
described below (and not otherwise) and where notices and demands to or upon the
Company in respect of the Securities of such series relating thereto and this
Indenture may be served. If Securities of a series are issuable as Bearer
Securities, the Company shall maintain, subject to any laws or regulations
applicable thereto, an Office or Agency in a Place of Payment and Place of
Conversion for such series which is located outside the United States where
Securities of such series and any Coupons appertaining thereto, may be
presented and surrendered for payment or conversion; provided, however, that if
-------- -------
the Securities of such series are listed on the London Stock Exchange or the
Luxembourg Stock Exchange or any other stock exchange located outside the United
States and such stock exchange shall so require, the Company shall maintain a
Paying Agent and a Conversion Agent in London, Luxembourg or any other required
city located outside the United States, as the case may be, so long as the
Securities of such series are listed on such exchange. The Company will give
prompt written notice to the Trustee of the location, and any change in the
location, of such Office or Agency. If at any time the Company shall fail to
maintain any such required Office or Agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, except that
Bearer Securities of such series and any Coupons appertaining thereto
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may be presented and surrendered for payment or conversion at the place
specified for that purpose with respect to such Securities as provided in or
pursuant to this Indenture, and the Company hereby appoint the Trustee as its
agent to receive all such presentations, surrenders, notices and demands.
Except as otherwise provided in or pursuant to this Indenture, no
payment of principal, premium, interest or Additional Amounts with respect to
Bearer Securities (including payments by reason of the conversion thereof) shall
be made at any Office or Agency 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 if amounts owing with
-------- -------
respect to any Bearer Securities shall be payable in Dollars, payment of
principal of, any premium or interest on and any Additional Amounts with respect
to any such Security may be made, and any Bearer Securities may be surrendered
for conversion, at the Corporate Trust Office of the Trustee or any Office or
Agency designated by the Company in the Borough of Manhattan, The City of New
York, if (but only if) payment of the full amount of such principal, premium,
interest or Additional Amounts, or surrender of Bearer Securities for
conversion, at all offices outside the United States maintained for such purpose
by the Company in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions on the full payment
or receipt of such amounts in Dollars as determined by the Company, or on
surrender of any Bearer Securities for conversion.
The Company may also from time to time designate one or more other
Offices or Agencies where the Securities of one or more series, may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
-------- -------
shall in any manner relieve the Company of its obligation to maintain an Office
or Agency in each Place of Payment and Place of Conversion for Securities of any
series for such purposes. The Company shall give prompt written notice to the
Trustee of any such designation or rescission and of any change in the location
of any such other Office or Agency. Unless otherwise provided in or pursuant to
this Indenture, the Company hereby designates as the Place of Payment and the
Place of Conversion for each series of Securities (other than those issued as
Bearer Securities), the Borough of Manhattan, The City of New York, and
initially appoint the Corporate Trust Office of the Trustee as the Company's
Office or Agency in the Borough of Manhattan, The City of New York for such
purpose. The Company may subsequently appoint a different Office or Agency in
the Borough of Manhattan, The City of New York for the Securities of any series.
Unless otherwise provided in or pursuant to this Indenture, the Company hereby
designates as the Place of Payment and the Place of Conversion for Bearer
Securities, to be London, England, and initially appoint the office of the
Trustee in London as the Office or Agency for such purpose and initially appoint
the office of the Trustee in London as its Paying Agent in London.
If at any time the Company shall fail to maintain any such required
office or agency, or shall fail to furnish the Trustee with the address thereof,
presentations and surrenders may be made and notices and demands may be served
on the Corporate Trust Office of the Trustee,
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except that Bearer Securities and Coupons may be presented and surrendered for
payment and conversion to the Paying Agent in London at its office in the City
of London, England or other Paying Agent or Conversion Agent outside the United
States, and the Company hereby appoints the Paying Agent in London as its agent
to receive such respective presentations, surrenders, notices and demands.
Section 1003. Money for Securities Payments to be Held in Trust.
-------------------------------------------------
If the Company shall at any time act as its own Paying Agent with
respect to any series of Securities, it shall, on or before each due date of the
principal of, any premium or interest on or Additional Amounts with respect to
any of the Securities of such series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum in Dollars sufficient to pay the
principal or any premium, interest or Additional Amounts so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as herein
provided, and shall promptly notify the Trustee of its action or failure so
to act.
Whenever the Company shall have one or more Paying Agents for any series
of Securities, it shall, on or prior to each due date of the principal of, any
premium or interest on or any Additional Amounts with respect to any Securities
of such series, deposit with any Paying Agent a sum in Dollars sufficient to pay
the principal or any premium, interest or Additional Amounts so becoming due,
such sum to be held in trust for the benefit of the Persons entitled thereto,
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 shall 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 shall:
(1) hold all sums held by it for the payment of the principal of,
any premium or interest on or any Additional Amounts with respect to
Securities of such series in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as provided in or pursuant to this Indenture;
(2) give the Trustee notice of any default by the Company (or any
other obligor upon the Securities of such series) in the making of any
payment of the principal of, any premium or interest on or any
Additional Amounts with respect to the Securities of such series;
(3) at any time during the continuance of any such default, upon
the written request of the Trustee, forthwith pay to the Trustee all
sums so held in trust by such Paying Agent; and
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(4) indemnify the Trustee for any loss, cost, liability, or
expense caused by any error, act or omission of the Paying Agent.
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 of the Company 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 terms 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 sums.
Except as otherwise provided herein or pursuant hereto, 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, any premium or interest on or any
Additional Amounts with respect to any Security of any series or any Coupon
appertaining thereto and remaining unclaimed for two years after such principal
or any such premium or interest or any such Additional Amounts shall have become
due and payable shall be paid to the Company on Company Request, or (if then
held by the Company) shall be discharged from such trust; and the Holder of such
Security or any Coupon appertaining thereto shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
- -------- -------
to make any such repayment, may at the expense of the Company cause to be
published once, in an Authorized Newspaper in each Place of Payment for such
series or to be mailed to Holders of Registered Securities of such series, or
both, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication
or mailing, any unclaimed balance of such money then remaining will be repaid to
the Company.
Section 1004. Additional Amounts.
------------------
All payments of principal of, premium, if any, and interest on
Securities of any series to a Holder thereof who is not a United States person
shall be made without set-off, counterclaim, fees, liabilities or similar
deductions (including payments on redemption, repayment and the exercise of the
Cash Settlement Option), and free and clear of, and without deduction or
withholding for, taxes, levies, imposts, duties, assessments, charges or fees of
whatsoever nature now or hereafter imposed, levied, collected, deducted,
withheld or assessed by or on behalf of the Government of the United States, or
any state or other political subdivision or taxing authority thereof or therein
("Taxes"). If the Company or any agent of the Company is required by law or
-----
regulation to make any deduction or withholding for or on account of Taxes, the
Company shall pay such additional amounts ("Additional Amounts") as shall be
------------------
necessary in order that the net amounts received by the Holders of the
Securities of any series who are not United States
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persons after such deduction or withholding shall equal the amount that would
have been receivable thereunder in the absence of such deduction or withholding,
except that no such Additional Amounts shall be payable on account of:
(a) any Tax which would not have been so imposed but for (i) the
existence of any present or former connection between such Holder (or
between a fiduciary, settlor, beneficiary, member, shareholder of or
possessor of a power over such Holder, if such Holder is an estate, a
trust, a partnership or a corporation) and the United States or any
political subdivision or taxing authority thereof or therein, including,
without limitation, such Holder (or such fiduciary, settlor,
beneficiary, member, shareholder or possessor) being or having been a
citizen or resident of the United States or treated as a resident
thereof, or being or having been engaged in trade or business or present
therein, or having had a permanent establishment therein, (ii) such
Holder's present or former status as a personal holding company, a
foreign personal holding company with respect to the United States, a
controlled foreign corporation, a passive foreign investment company, or
a foreign private foundation or foreign tax exempt entity for United
States tax purposes, or a corporation which accumulates earnings to
avoid United States Federal income tax, or (iii) such holder's status as
a bank extending credit pursuant to a loan agreement entered into in the
ordinary course of business;
(b) any Tax which would not have been so imposed but for the
presentation by the Holder of such Security or any Coupon appertaining
thereto for payment on a date more than 15 days after the date on which
such payment became due and payable or the date on which payment thereof
is duly provided for, whichever occurs later;
(c) any estate, inheritance, gift, sales, transfer, personal
property or similar Tax;
(d) any Tax which would not have been imposed but for the failure
to comply with any certification, identification or other reporting
requirements concerning the nationality, residence, identity or
connection with the United States of the Holder or beneficial owner of
such Security or any Coupon appertaining thereto, if compliance is
required by statute or by regulation or ruling of the United States
Treasury Department as a precondition to exemption from such Tax;
(e) any Tax which is payable otherwise than by deduction or
withholding from payments of principal of, premium, if any, or interest
on such Security;
(f) any Tax imposed as a result of a Person's past or present
actual or constructive ownership, including by virtue of the right to
convert Securities, of 10% or more of the total combined voting power of
all classes of stock of the Company entitled to vote;
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(g) any Tax required to be withheld by any Paying Agent from any
payment of the principal of, premium, if any, or interest on such
Security, if such payment can be made without such withholding by any
other Paying Agent in Western Europe;
(h) any Tax imposed on the disposition of any Security by a person
holding at any time, actually or constructively, Securities of the
applicable series having a fair market value in excess of the greater of
the fair market value of five percent of (i) the Company's Common Stock
or (ii) the Securities of such series;
(i) any Tax imposed on a Holder that is a partnership or a
fiduciary, but only to the extent that any beneficial owner or member of
the partnership or beneficiary or settlor with respect to the fiduciary
would not have been entitled to the payment of Additional Amounts had
the beneficial owner, member, beneficiary or settlor directly received
its beneficial or distributive share of payments on such Security;
(j) any Tax which would not have been imposed but for the fact that
such Security constitutes a "United States real property interest," as
defined in Section 897(c)(1) of the Internal Revenue Code and the
regulations thereunder, with respect to the beneficial owner of such
Security; or
(k) any combination of items (a), (b), (c), (d), (e), (f), (g),
(h), (i) and (j).
Notwithstanding the foregoing, if and so long as a certification,
identification or other information reporting requirement referred to in the
third paragraph of Section 1102 of this Indenture would be fully satisfied by
payment of a backup withholding tax or similar charge, the Company may elect, by
so stating in the Determination Notice (as hereinafter defined), to have the
provisions of this paragraph apply in lieu of redeeming the Security pursuant to
such Section 1102. In such event, the Company will pay as Additional Amounts
such amounts as may be necessary so that every net payment made, following the
effective date of such requirements, outside the United States by the Company or
any Paying Agent of principal and premium, if any, due in respect of a Security,
or interest represented by any Coupon, the beneficial owner of which is not a
United States person (but without any requirement that the nationality,
residence or identity of such beneficial owner be disclosed to the Company, any
Paying Agent or any governmental authority), after deduction or withholding for
or on account of such backup withholding tax or similar charge, other than a
backup withholding tax or similar charge which is (a) the result of a
certification, identification or information reporting requirement described in
the first parenthetical clause of such third paragraph of Section 1102, (b)
imposed as a result of the fact that the Company or any Paying Agent has actual
knowledge that the beneficial owner of the Security or such Coupon is within the
category of Persons described in clause (a) of the preceding paragraph or (c)
imposed as a result of presentation of the Security or such Coupon for payment
more than 15 days after the date on which such payment becomes due and payable
or on
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which payment thereof is duly provided for, whichever occurs later, will
not be less than the amount provided for in the Security or such Coupon to be
then due and payable.
Except as specifically provided in this Indenture, the Company shall not
be required to make any payment with respect to any Taxes.
If the Company or any successor to the Company under this Indenture
shall be incorporated under the laws of a jurisdiction other than the United
States, the Company or its successor will pay and shall provide notice to the
Trustee of the payment of, such additional amounts ("Other Additional Amounts")
------------------------
as may be necessary in order that every net payment on each Security, after
withholding for or on account of any present or future tax, assessment or other
governmental charge imposed upon or as a result of such payment by such other
jurisdiction (or any political subdivision or taxing authority thereof or
therein), will be not less than the amount provided for in such Security to be
then due and payable; provided, however, that (i) the Other Additional Amounts
-------- -------
payable to a Holder of a Security will be reduced to the extent that such
withholding reduces any tax liability to which such Holder of the Security was
and is subject both prior to and after such incorporation in another
jurisdiction and (ii) the exceptions listed in the second preceding paragraph
shall apply, substituting for the United States the relevant jurisdiction that
imposes the tax giving rise to the payment of Other Additional Amounts.
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 any 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 by the terms of this
Indenture or by the terms of such series established hereby or pursuant hereto
to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.
Except as otherwise provided in or pursuant to this Indenture or the
Securities of any series, 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 such series of Securities (or if the Securities of such series
shall not bear interest prior to Maturity, the first day on which a payment of
principal is made), and at least 10 days prior to each date of payment of
principal or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers' Certificate, the Company shall
furnish to the Trustee and the principal Paying Agent or Paying Agents, if other
than the Trustee, an Officers' Certificate instructing the Trustee and such
Paying Agent or Paying Agents whether such payment of principal of and premium,
if any, or interest, if any, on the Securities of such series shall be made to
Holders of Securities of such series or the Coupons appertaining thereto who are
not United States persons without withholding for or on account of any Tax
described in the Securities of such 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
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of Securities or Coupons, and the Company agrees to pay to the Trustee or such
Paying Agent the Additional Amounts required hereby or by the terms of such
Securities. The Company covenants to indemnify the Trustee and any Paying Agent
and other officers, directors, employees and agents for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section.
Section 1005. Statement as to Compliance.
--------------------------
The Company will deliver to the Trustee, within 120 days after the end
of each fiscal year of the Company an Officers' Certificate, stating as to each
signer, that
(1) a review of the activities of the Company during such year and of
performance under this Indenture has been made under his or her supervision; and
(2) to the best of his or her knowledge, based on such review, (a) the
Company has fulfilled all its obligations under this Indenture throughout such
year, or, if there has been a material default in the fulfillment of any such
obligation, specifying each such default known to him or her and the nature and
status thereof, and (b) no event has occurred and is continuing which is, or
after notice or lapse of time or both would become, an Event of Default, or, if
such an event has occurred and is continuing, specifying each such event known
to him or her and the nature and status thereof.
Section 1006. Corporate Existence.
-------------------
Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Applicability of Article.
------------------------
Redemption of Securities of any series at the option of the Company as
permitted or required in or pursuant to this Indenture or by the terms of such
Securities shall be made in accordance with the terms of this Indenture or such
Securities and (except as otherwise provided herein or pursuant hereto) this
Article Eleven.
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Section 1102. Election to Redeem; Notice to Trustee.
-------------------------------------
The election of the Company to redeem any Securities shall be evidenced by
or pursuant to a Board Resolution. In case of any redemption at the election of
the Company of the Securities of any series, the Company shall, at least 75 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 of such series to be redeemed.
In addition, notwithstanding the above, if as a result of a Tax Law
Change, the Company has or will become obligated to pay to the Holder of any
Security or Coupon Additional Amounts, and such obligation cannot be avoided by
the Company taking reasonable measures available to it, then the Company may, at
its option, redeem the Tax Affected Securities as a whole, but not in part, upon
not less than 20 nor more than 60 days' notice to the Holders prior to the
Redemption Date therefor, at a Redemption Price equal to 100% of the principal
amount plus interest accrued to the Redemption Date, and any Additional Amounts
then payable; provided, that (i) no such notice of redemption shall be given
-------- ----
earlier than 90 days prior to the earliest date on which the Company would be
obligated to pay any such Additional Amounts were a payment in respect of the
Tax Affected Securities then due and (ii) at the time such notice of redemption
is given, such obligation to pay such Additional Amounts remains in effect.
Prior to the publication of any notice of redemption pursuant to this paragraph,
the Company shall deliver to the Trustee (a) an Officers' Certificate stating
that the Company is entitled to effect such redemption and setting forth a
statement of facts showing that the conditions precedent to the right of the
Company so to redeem have occurred and (b) an Opinion of Counsel selected by the
Company to the effect that the Company has or will become obligated to pay such
Additional Amounts as a result of such Tax Law Change. The Company's right to
redeem the Tax Affected Securities shall continue as long as the Company is
obligated to pay such Additional Amounts, notwithstanding that the Company shall
have made payments of Additional Amounts specified in Section 1004.
In addition, if the Company determines, based upon an Opinion of Counsel,
that, as a result of a Tax Law Change, any payment made outside the United
States by the Company or any of its Paying Agents of the full amount of
principal, premium, if any, or interest due with respect to any Bearer Security
or Coupon appertaining thereto would be subject to any certification,
identification or other information reporting requirement of any kind, the
effect of which requirement is the disclosure to the Company, any Paying Agent
or any governmental authority of the nationality, residence or identity of a
beneficial owner of such Bearer Security or Coupon who is not a United States
person (other than such a requirement (a) which would not be applicable to a
payment made by the Company or any one of its Paying Agents (i) directly to the
beneficial owner or (ii) to any custodian, nominee or other agent of the
beneficial owner, (b) which can be satisfied by the custodian, nominee or other
agent certifying that such beneficial owner is not a United States person,
provided that, in each case referred to in clauses (a) (ii) and (b), payment by
such custodian, nominee or agent to such beneficial owner is not otherwise
subject to any such requirement, or (c) which would not be applicable but for
the fact that such Bearer Security constitutes a "United States real property
interest," as defined in Section 897(c)(1) of the Internal Revenue Code, with
respect
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to the beneficial owner of such Bearer Security), the Company at its election
will either (x) redeem the Bearer Securities, as a whole but not in part, upon
not less than 20 nor more than 60 days' notice prior to the Redemption Date, at
a Redemption Price equal to 100% of the principal amount thereof plus interest
accrued to the Redemption Date and any Additional Amounts, or (y) if and so long
as the certification, identification or other information reporting requirement
referred to above would be fully satisfied by payment of a backup withholding
tax or similar charge, pay the bearer the Additional Amounts specified in
Section 1004. The Company will make such determination and election and notify
the Trustee and the Paying Agent in London, England thereof in writing as soon
as practicable, and the Trustee will promptly give notice of such determination
in the manner provided in Section 106 (the "Determination Notice"), in each case
--------------------
stating the effective date of such certification, identification or information
reporting requirement, whether the Company will redeem the Bearer Securities or
will pay the Additional Amounts specified in the second paragraph of Section
1004 and (if applicable) the last date by which the redemption of the Bearer
Securities must take place. If the Company elects to redeem the Bearer
Securities pursuant to clause (x) above, such redemption shall take place on a
date, not later than one year after the publication of the Determination Notice,
as the Company elects by notice in writing to the Trustee and the Paying Agent
in London at least 75 days before the Redemption Date, unless shorter notice is
acceptable to the Trustee. Notwithstanding the foregoing, the Company will not
so redeem the Bearer Securities if the Company, based upon an Opinion of Counsel
which counsel shall be reasonably acceptable to the Trustee, subsequently
determines, not less than 20 days prior to the Redemption Date, that subsequent
payments would not be subject to any such requirement, in which case the Company
will notify the Trustee in writing of its determination not to so redeem the
Securities, and the Trustee will promptly give notice to the Holders of the
Bearer Securities of that determination and any earlier redemption notice will
thereupon be revoked and of no further effect. If the Company elects as provided
in clause (y) above to pay Additional Amounts, the Company may, as long as the
Company is obligated to pay such Additional Amounts, subsequently redeem the
Bearer Securities, at any time, as a whole but not in part, upon not less than
20 nor more than 60 days' notice prior to the Redemption Date, at a Redemption
Price equal to 100% of the principal amount thereof plus interest accrued to the
Redemption Date, and any Additional Amounts.
Section 1103. Selection by Trustee of Securities to be Redeemed.
-------------------------------------------------
If any Securities of any series are to be redeemed in part, the particular
Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee from the Outstanding Securities of such series
not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate, under circumstances intended not to discriminate between
Registered and Bearer Securities to be redeemed, and which may provide for the
selection for redemption of portions of the principal amount of Registered
Securities of such series; provided, however, that no such partial redemption
-------- -------
shall reduce the portion of the principal amount of a Registered Security of
such series not redeemed to less than the minimum denomination for a Security of
such series established herein or pursuant hereto. The Trustee shall have no
liability in connection with any selection of securities to redemption made in
good faith and without negligence.
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If any Registered Security selected for partial redemption, which is
convertible by the terms of such Security established pursuant to Section 301,
is converted in part before termination of the conversion right with respect to
the portion of the Security so selected, the converted portion of such Security
shall be deemed (so far as may be) to be the portion selected for redemption.
Securities which have been converted during a selection of Securities to be
redeemed may be treated by the Trustee as Outstanding for the purpose of such
selection.
The Trustee shall promptly notify the Company and the Security Registrar
(if other than itself) in writing of the Securities selected for redemption and,
in the case of any Securities selected for partial redemption, the principal
amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion
of the principal of such Securities which has been or is to be redeemed.
Section 1104. Notice of Redemption.
--------------------
Notice of redemption shall be given by the Trustee in the manner provided
in Section 106, not less than 20 nor more than 60 days prior to the Redemption
Date, unless a different period is specified in the Securities to be redeemed.
All such redemption notices (except, in the case of a redemption specified in
the penultimate paragraph of Section 1102) shall be irrevocable. Failure to give
notice by mailing in the manner herein provided to the Holder of any Registered
Securities designated for redemption as a whole or in part, or any defect in the
notice to any such Holder, shall not affect the validity of the proceedings for
the redemption of any other Securities or portion thereof.
Any notice that is mailed to the Holder of any Registered Securities in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not such Holder receives the notice.
All notices of redemption shall identify the Securities to be redeemed and
shall state:
(1) the Redemption Date,
(2) the Redemption Price, and accrued interest, if any,
(3) if less than all Outstanding Securities of any series are to be
redeemed, the identification (and, in the case of partial redemption, the
principal amount) of the particular Security or Securities to be redeemed,
(4) in case any Security is to be redeemed in part only, the notice which
relates to such Security shall state that on and after the Redemption Date,
upon surrender of such Security, the Holder of such Security will receive,
without charge, a new Security or Securities of authorized denominations for
the principal amount thereof remaining unredeemed,
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(5) that, on the Redemption Date, the Redemption Price shall become due
and payable upon each such Security or portion thereof to be redeemed, and, if
applicable, that interest thereon shall cease to accrue on and after said date,
(6) if applicable, the Conversion Price, the date on which the right to
convert the Securities to be redeemed will terminate and the places where such
Securities, together with all unmatured Coupons and any matured Coupons in
default appertaining thereto, may be surrendered for conversion,
(7) the place or places where such Securities, together (in the case of
Bearer Securities) with all Coupons appertaining thereto, if any, maturing after
the Redemption Date, are to be surrendered for payment of the Redemption Price
and any accrued interest and Additional Amounts pertaining thereto,
(8) that the redemption is for a sinking fund, if such is the case,
(9) that, unless otherwise specified in such notice, Bearer Securities
of any series, if any, surrendered for redemption must be accompanied by all
Coupons maturing subsequent to the date fixed for redemption or the amount of
any such missing Coupon or Coupons will be deducted from the Redemption Price,
unless security or indemnity satisfactory to the Company, the Trustee and any
Paying Agent is furnished,
(10) if Bearer Securities of any series are to be redeemed and any
Registered Securities of such series are not to be redeemed, and if such Bearer
Securities may be exchanged for Registered Securities not subject to redemption
on the Redemption Date pursuant to Section 305 or otherwise, the last date, as
determined by the Company, on which such exchanges may be made, and
(11) the CUSIP number, ISIN number or the EUROCLEAR or the CEDEL reference
numbers of such Securities, if any (or any other numbers used by a Depository to
identify such Securities).
Notice of redemption of Securities to be redeemed at the election of the
Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company.
Section 1105. Deposit of Redemption Price.
---------------------------
On or prior to 10:00 a.m., Eastern Time, on any Redemption Date, the
Company shall deposit, in immediately available funds, with respect to the
Securities of any series called for redemption pursuant to Section 1104, with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money in Dollars sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date, unless otherwise
specified pursuant to Section 301 for or in the Securities of such series) any
accrued interest on and
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Additional Amounts with respect thereto, all such Securities or portions thereof
which are to be redeemed on that date.
If any Security called for redemption, which is convertible by the terms
of such Security established pursuant to Section 301, is converted, any money
deposited with the Trustee or with a Paying Agent or so segregated and held in
trust for the redemption of such Security shall (subject to any right of the
Holder of such Security or any predecessor Security to receive interest as
provided in Section 307) be paid to the Company on Company Request or, if then
held by the Company, shall be discharged from such trust.
Section 1106. Securities Payable on Redemption Date.
-------------------------------------
Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest and the Coupons for such
interest appertaining to any Bearer Securities so to be redeemed, except 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 any accrued interest
and Additional Amounts to the Redemption Date; provided, however, that, except
as otherwise provided in or pursuant to this Indenture or the Bearer Securities
of such series, installments of interest on Bearer Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable only upon
presentation and surrender of Coupons for such interest (at an Office or Agency
located outside the United States except as otherwise provided in Section 1002),
and provided, further, that, except as otherwise specified in or pursuant to
-------- -------
this Indenture or the Registered Securities of such series, 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
Regular Record Dates therefor according to their terms and the provisions of
Section 307.
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 any interest
-------- -------
or Additional Amounts represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an Office or Agency for such
Security located outside of the United States except as otherwise provided in
Section 1002.
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If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal and any premium, until paid, shall bear
interest from the Redemption Date at the rate prescribed therefor in the
Security and each Security shall remain convertible (if applicable) until the
principal of such Security (or portion thereof, as the case may be) shall have
been paid or duly provided for.
Section 1107. Securities Redeemed in Part.
---------------------------
Any Registered Security which is to be redeemed only in part shall be
surrendered at any applicable Office or Agency for such Security (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 without service charge, a new Registered Security or
Securities of the same series, containing identical terms and provisions, of any
authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered. If a Security in global form is so surrendered,
the Company shall execute, and the Trustee shall authenticate and deliver to the
U.S. Depository or other Depository for such Security in global form as shall be
specified in the Company Order with respect thereto to the Trustee, without
service charge, a new Security in global form in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Security in global
form so surrendered.
ARTICLE TWELVE
CONVERSION OF SECURITIES
Section 1201. Conversion Privilege and Conversion Price.
-----------------------------------------
Conversion of Securities of any series at the option of the Holder
thereof as permitted by the terms of such Securities shall be made in accordance
with the terms of such Securities and (except as otherwise provided herein or
pursuant hereto) this Article Twelve. Each reference in this Article Twelve to
"a Security" or "the Securities" refers to the Securities of the particular
series that are convertible into shares of Common Stock. At the option of the
Holder any Security other than the temporary global Bearer Security may be
converted into fully paid and nonassessable shares (calculated as to each
conversion to the nearest 1/100th of a share) of Common Stock of the Company at
the Conversion Price (as defined below) in effect at the time of conversion. The
period for conversion shall be set forth in the terms of the Securities. In case
a Security or portion thereof is called for redemption or is delivered for
repayment, such conversion right in respect of the Security or portion so called
or delivered shall expire at the close of business on the fifth Business Day
preceding the Redemption Date or the second Business Day preceding a repayment
on the Securities Repayment Date (as set forth in Article Fifteen), as the case
may be, unless the Company defaults in making the payment due upon redemption or
repayment, as the case may be.
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The price at which shares of Common Stock shall be delivered upon
conversion (herein called the "Conversion Price") shall be as set forth in the
----------------
terms of the Securities. The Conversion Price shall be adjusted in certain
instances as provided in this Article Twelve.
As permitted by the terms of such Securities, the Company may provide for
either or both of the options set forth in clauses (i) and (ii) of this
paragraph to apply to any series of Securities, in which case such provisions
shall be applicable to such Securities (except as otherwise provided herein or
pursuant hereto). In lieu of issuing shares of Common Stock upon conversion of
the Securities, the Company may elect, in its sole discretion to pay cash in
respect of all or a portion of the shares of Common Stock otherwise issuable
upon such conversion (the "Cash Settlement Option"). The amount of cash to be so
----------------------
delivered upon the exercise of the Cash Settlement Option shall be equal to the
number of shares of Common Stock as to which cash is being paid in lieu of
issuance of shares of Common Stock multiplied by the Market Price of a share of
Common Stock.
Upon exercise of the Cash Settlement Option, the Company shall inform each
Conversion Agent and Paying Agent of the Market Price of the Common Stock.
Upon presentment for conversion of any Securities pursuant to this Section
1201, the applicable Conversion Agent shall that day notify the Company of such
presentment. Within two Business Days after the Conversion Date, the Company
shall deliver to the Paying Agent written notice of whether such Security shall
be converted into shares of Common Stock, cash or a combination of shares of
Common Stock and cash (specifying the amounts of each). The Company shall
deliver to such Holder no later than the fifth Business Day following the
Conversion Date, through the Paying Agent, in respect of the portion of the
converted security to be settled in cash, and as promptly as practicable on or
following the Conversion Date in respect of the portion of the converted
Security as to which shares of Common Stock are to be issued, the amount of cash
and certificates representing the number of shares of Common Stock to be
delivered, and cash in lieu of any fractional shares. No payment or adjustment
shall be made upon any conversion on account of any dividends on the Common
Stock issued upon conversion.
In the event that payment by the Company of cash in lieu of issuing shares
of Common Stock upon conversion of a Security shall require any withholding for
or on account of any present or future Tax imposed upon or as a result of
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such cash payment by the United States or any political subdivision or taxing
authority thereof or therein, then the Company will be required to pay
Additional Amounts with respect thereto in the same manner and to the same
extent as is provided for in Section 1004.
In the event that payment by the Company of cash in lieu of issuing shares
of Common stock upon conversion of a Security shall require any certification,
identification or information reporting requirement of United States law or
regulation with regard to the nationality, residence or identity of a beneficial
owner of a Bearer Security who is not a United States person (other than a
requirement (a) which would not be applicable to a payment made (i) directly to
the beneficial owner or (ii) to a custodian, nominee or other agent of the
beneficial owner, or (b) which could be satisfied by the Holder, custodian,
nominee or other agent certifying that the beneficial owner is not a United
States person, provided, however, in each case referred to in clauses (a) (ii)
-----------------
and (b) payment by such custodian, nominee or agent to the beneficial owner is
not otherwise subject to any requirement referred to in this sentence), the
Company may not elect to make the cash payment unless such certification,
identification or information reporting requirement would be fully satisfied by
payment of United States withholding, backup withholding or similar taxes and
the Company pays such Additional Amounts as are necessary in order that,
following the effective date of such requirement, every net payment made outside
the United States by the Company or a related Paying Agent of the cash payment
on a Bearer Security to a Holder who is not a United States person (without
regard to a certification, identification or information reporting requirement
as to the nationality, residence or identity of such Holder), after deduction
for United States withholding, backup withholding or similar taxes (other than
withholding, backup withholding or similar taxes which would not be applicable
in the circumstances referred to in the parenthetical clauses above), will not
be less than the amount to be then due and payable thereon.
Section 1202. Exercise of Conversion Privilege.
--------------------------------
In order to exercise the conversion privilege, the Holder of any Definitive
Security to be converted shall surrender such Security, duly endorsed or
assigned to the Company or in blank (in the case of any Registered Security), at
any applicable Place of Conversion, accompanied by a duly signed and completed
conversion notice substantially in the form attached hereto as Exhibit B stating
that the Holder elects to convert such Security or, if less than the entire
principal amount thereof is to be converted, the portion thereof to be
converted. Each Bearer Security surrendered for conversion must be surrendered
together with all Coupons appertaining thereto that mature after the Conversion
Date. If any Bearer Security surrendered for conversion shall not be
accompanied by all such appurtenant Coupons, the surrender of any or all of such
missing 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. Matured Coupons not in default (including
Coupons maturing on the Conversion Date) will be payable against surrender
thereof, and matured Coupons previously surrendered and in default will continue
to be payable, notwithstanding the exercise of the right of conversion by the
Holder of the Security to which the Coupon appertains. Accrued interest from
the immediately preceding Interest Payment Date until the Conversion Date (and
Additional Amounts, if any, thereon) will be paid, through the Paying Agent, in
the same manner as regular payments of interest and as provided in Section 307,
within five
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Business Days after the Conversion Date.. The Company's delivery to the Holder
of the fixed number of shares of Common Stock (or cash or in lieu thereof, as
provided in this Indenture) into which a Definitive Security is convertible will
be deemed to satisfy the Company's obligation to pay the principal amount of the
Security.
Definitive Securities shall be deemed to have been converted immediately
prior to the close of business on the day of surrender of such Securities for
conversion (accompanied by a duly signed and completed conversion notice as
contemplated above) in accordance with the foregoing provisions, and at such
time the rights of the Holders of such Securities as Holders shall cease, and
the Person or Persons entitled to receive the Common Stock issuable upon
conversion shall be treated for all purposes as the record holder or holders of
such Common Stock at such time; provided, however, that if the Company exercises
-------- -------
the Cash Settlement Option, then the Person or Persons who were to receive the
Common Stock upon conversion shall not be deemed to have ever been a record
holder of the Common Stock as to which the Cash Settlement Option has been
exercised. Subject to Section 1201, as promptly as practicable on or after the
Conversion Date, the Company shall issue and deliver to the Trustee, for
delivery to the Holder, a certificate or certificates for the number of full
shares of Common Stock issuable upon conversion, together with payment in lieu
of any fraction of a share, as provided in Section 1203.
In the case of any Security which is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and
deliver to the Holder thereof, at the expense of the Company, a new Security or
Securities of authorized denominations in an aggregate principal amount equal to
the unconverted portion of the principal amount of such Security. A Security
may be converted in part, but only if the principal amount of such Security to
be converted is any integral multiple of U.S. $1,000 and the principal amount of
such security to remain Outstanding after such conversion is equal to U.S.
$1,000 or any integral multiple of $1,000 in excess thereof.
Section 1203. Fractions of Shares.
-------------------
No fractional shares of Common Stock shall be issued upon conversion of any
Definitive Security. If more than one Definitive Security shall be surrendered
for conversion at one time by the same Holder, the number of full shares which
shall be issuable upon conversion thereof shall be computed on the basis of the
aggregate principal amount of the Definitive Securities (or specified portions
thereof) so surrendered. Instead of any fractional share of Common Stock which
would otherwise be issuable upon conversion of any Definitive Security or
Securities (or
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specified portions thereof), the Company shall calculate and pay a cash
adjustment in respect of such fraction (calculated to the nearest 1/100th of a
share) in an amount equal to the same fraction of the current Closing Price Per
Share (calculated in accordance with Section 1204 (6) below) at the close of
business on the Conversion Date. Such cash payments shall, in the case of a
conversion of Bearer Securities, be made to an address outside of the United
States.
Section 1204. Adjustment of Conversion Price.
------------------------------
The Conversion Price shall be subject to adjustment from time to time as
follows:
(1) In case the Company shall pay or make a dividend or other
distribution on any class of capital stock of the Company in shares of Common
Stock, the Conversion Price in effect at the opening of business on the day
following the date fixed for the determination of stockholders entitled to
receive such dividend or other distribution shall be reduced so that the same
shall equal the price determined by multiplying such Conversion Price by a
fraction of which the numerator shall be the number of shares of Common Stock
outstanding at the close of business on the date fixed for such determination
and the denominator shall be the sum of such number of shares and the total
number of shares of Common Stock constituting such dividend or other
distribution, such reduction to become effective at the opening of business on
the day following the date fixed for such determination. For the purposes of
this paragraph (1), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common Stock. The Company will not pay any dividend or make any
distribution on shares of Common Stock held in the treasury of the Company.
(2) In case at any time the Company shall issue rights, options or
warrants to all holders of its Common Stock entitling them to subscribe for or
purchase shares of Common Stock at a price per share less than the then current
market price per share (determined as provided in paragraph (6) of this Section)
of the Common Stock on the date fixed for the determination of stockholders
entitled to receive such rights, options or warrants, the Conversion Price in
effect at the opening of business on the day following the date fixed for such
determination shall be reduced so that the same shall equal the price determined
by multiplying such Conversion Price by a fraction of which the numerator shall
be the number of shares of Common Stock outstanding at the close of business on
the date fixed for such determination plus the number of shares of Common Stock
which the aggregate of the offering price of the total number of shares of
Common Stock so offered for subscription or purchase would purchase at such
current market price and the denominator shall be the number of shares of Common
Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock so offered for
subscription or purchase, such reduction to become effective at the opening of
business on the day following the date fixed for such determination; provided,
--------
however, that if an adjustment to the Conversion Price is made and any or all of
- -------
such rights, options and warrants are not exercised, then a corresponding
reversing adjustment of the Conversion Price shall be made, on an equitable
basis, to take account of such event. For the purposes of this paragraph (2),
the number of shares of Common Stock at any
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time outstanding shall not include shares held in the treasury of the Company
but shall include shares issuable in respect of scrip certificates issued in
lieu of fractions of shares of Common Stock. The Company will not issue any
rights or warrants in respect of shares of Common Stock held in the treasury of
the Company.
(3) In case outstanding shares of Common Stock shall be subdivided
into a greater number of shares of Common Stock, the Conversion Price in effect
at the opening of business on the day following the day upon which such
subdivision becomes effective shall be proportionately reduced, and, conversely,
in case outstanding shares of Common Stock shall each be combined into a smaller
number of shares of Common Stock, the Conversion Price in effect at the opening
of business on the day following the day upon which such combination becomes
effective shall be proportionately increased, such reduction or increase, as the
case may be, to become effective at the opening of business on the day following
the day upon which such subdivision or combination becomes effective.
(4) In case the Company shall, by dividend or otherwise, distribute
to all holders of its Common Stock evidences of its indebtedness, shares of any
class of capital stock, cash or assets (including securities, but excluding any
(i) rights, options or warrants referred to in paragraph (2) of this Section,
(ii) any dividend or distribution paid exclusively in cash out of the retained
earnings of the Company, (iii) any dividend or distribution referred to in
paragraph (1) of this Section and (iv) shares issued upon any merger or
consolidation to which Section 1211 applies), the Conversion Price shall be
adjusted so that the same shall equal the price determined by multiplying the
Conversion Price in effect immediately prior to the close of business on the
date fixed for the determination of stockholders entitled to receive such
distribution by a fraction of which the numerator shall be the current market
price per share (determined as provided in paragraph (6) of this Section) of the
Common Stock on the date fixed for such determination less the then fair market
value (as determined by the Board of Directors of the Company, whose
determination shall be conclusive and described in a Company Board Resolution
filed with the Trustee) of the portion of the assets, shares or evidences of
indebtedness so distributed applicable to one share of Common Stock and the
denominator shall be such current market price per share of the Common Stock,
such adjustment to become effective at the opening of business on the day
following the date fixed for the determination of stockholders entitled to
receive such distribution.
(5) The reclassification of Common Stock into securities including
other than Common Stock (other than any reclassification upon a consolidation or
merger to which Section 1211 applies) shall be deemed to involve (a) a
distribution of such securities other than Common Stock to all holders of Common
Stock (and the effective date of such reclassification shall be deemed to be
"the date fixed for the determination of stockholders entitled to receive such
distribution" and "the date fixed for such determination" within the meaning of
paragraph (4) of this Section), and (b) a subdivision or combination, as the
case may be, of the number of shares of Common Stock outstanding immediately
prior to such reclassification into the number of shares of Common Stock
outstanding immediately thereafter (and the effective date of such
reclassification shall be deemed to be "the day upon which such subdivision
becomes effective" or "the day upon which such combination becomes effective",
as the case
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may be, and "the day upon which such subdivision or combination becomes
effective," within the meaning of paragraph (3) of this Section).
(6) For the purpose of any computation under paragraphs (2) and (4)
of this Section 1204, the current market price per share of Common Stock on any
date shall be calculated by the Company and be deemed to be the average of the
daily Closing Prices Per Share for the five consecutive Trading Days selected by
the Company commencing not more than 10 Trading Days before, and ending not
later than, the earlier of the day in question and the day before the "ex date"
with respect to the issuance or distribution requiring such computation. For
purposes of this paragraph, the term "ex date," when used with respect to any
issuance or distribution, means the first date on which the Common Stock trades
regular way in the applicable securities market or on the applicable securities
exchange without the right to receive such issuance or distribution.
(7) No adjustment in the Conversion Price shall be required unless
such adjustment (plus any adjustments not previously made by reason of this
paragraph (7)) would require an increase or decrease of at least one percent in
such Conversion Price; provided, however, that any adjustments which by reason
-------- -------
of this paragraph (7) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this
Article shall be made to the nearest cent or to the nearest one-thousandth of a
share, as the case may be.
(8) The Company may make such reductions in the Conversion Price,
for the remaining term of any series of Securities or any shorter term, in
addition to those required by paragraphs (1), (2), (3) and (4) of this Section
1204, as it considers to be advisable in order to avoid or diminish any income
tax to any holders of shares of Common Stock resulting from any dividend or
distribution of stock or issuance of rights or warrants to purchase or subscribe
for stock or from any event treated as such for income tax purposes.
Section 1205. Notice of Adjustments of Conversion Price.
-----------------------------------------
Whenever the Conversion Price is adjusted as herein provided:
(1) the Company shall compute the adjusted Conversion Price in
accordance with Section 1204 and shall prepare a certificate signed by the
Treasurer of the Company setting forth the adjusted Conversion Price and showing
in reasonable detail the facts upon which such adjustment is based, and such
certificate shall promptly be filed with the Trustee and with each Conversion
Agent; and
(2) a notice stating that the Conversion Price has been adjusted and
setting forth the adjusted Conversion Price shall forthwith be required, and as
soon as practicable after it is required, such notice shall be provided by the
Company to all Holders in accordance with Section 106.
Neither the Trustee nor any Conversion Agent shall be under any duty or
responsibility with respect to any such certificate or the information and
calculations contained therein, except
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to exhibit the same to any Holder of Securities desiring inspection thereof at
its office during normal business hours.
Section 1206. Notice of Certain Corporate Action.
----------------------------------
In case:
(a) the Company shall declare a dividend (or any other
distribution) on its Common Stock payable otherwise than exclusively in
cash out of the retained earnings of the Company; or
(b) the Company shall authorize the granting to the holders of its
Common Stock of rights, options or warrants to subscribe for or purchase
any shares of capital stock of any class or of any other rights (other than
rights, options or warrants to subscribe for or purchase any shares of
capital stock of any class or of any other rights of a corporation, a
majority of each class of common stock of which is owned, directly or
indirectly, by the Company); or
(c) of any reclassification of the Common Stock of the Company
(other than a subdivision or combination of its outstanding shares of
Common Stock), or of any consolidation or merger to which the Company is a
party and for which approval of the stockholders of the Company is required
pursuant to applicable corporate law, or of the sale or transfer of all or
substantially all of the assets of the Company(; or
(d) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company;
then the Company shall cause to be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 1002, and shall
cause to be provided to all Holders in accordance with Section 106, at least 20
days (or 10 days in any case specified in clause (a) or (b) above) prior to the
applicable record, expiration or effective date hereinafter specified, a notice
stating (y) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights, options or warrants, or, if a record is not to
be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distribution, rights, options or warrants are to be
determined, or (z) the date on which such reclassification, consolidation,
merger, share exchange, conveyance, transfer, sale, lease, dissolution,
liquidation or winding up is expected to become effective, and the date as of
which it is expected that holders of Common Stock of record shall be entitled to
exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, share exchange,
conveyance, transfer, sale, lease, dissolution, liquidation or winding up. If
at the time the Trustee shall not be the Conversion Agent, a copy of such notice
and any notice referred to in the following paragraph shall also forthwith be
filed by the Company with the Trustee.
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Section 1207. Company to Reserve Common Stock.
-------------------------------
The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock, for the
purpose of effecting the conversion of Securities of any series, the full number
of shares of Common Stock then issuable upon the conversion of all Outstanding
Securities of such series.
Section 1208. Taxes on Conversions.
--------------------
The Company will pay any and all stamp and similar taxes and duties that
may be payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto. The Company shall not, however, be
required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock in a name other than that of
the Holder of the Security or Securities to be converted, and no such issue or
delivery shall be made unless and until the Person requesting such issue has
paid to the Company the amount of any such tax, or has established to the
satisfaction of the Company that such tax has been paid.
Section 1209. Covenant as to Common Stock.
---------------------------
The Company agrees that all shares of Common Stock which may be delivered
upon conversion of Securities, upon such delivery, will have been duly
authorized and validly issued and will be fully paid and nonassessable and,
except as provided in Section 1208, the Company will pay all stamp and similar
taxes, liens and charges with respect to the issue thereof.
Section 1210. Cancellation of Converted Securities.
------------------------------------
All Securities delivered for conversion shall be delivered to the Trustee
or the Paying Agent or its agent to be canceled by or at the direction of the
Trustee, which shall dispose of the same as provided in Section 309.
Section 1211. Provision in Case of Consolidation, Merger or Sale of Assets.
------------------------------------------------------------
In case of any consolidation of the Company with, or merger of the Company
into, any other Person, any merger of another Person into the Company (other
than a merger which does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of Common Stock of the Company)
or any sale or transfer of all or substantially all of the assets of the
Company, the Person formed by such consolidation or resulting from such merger
or which acquires such assets, as the case may be, shall execute and deliver to
the Trustee a supplemental indenture providing that the Holder of each Security
then Outstanding shall have the right thereafter, during the period such
Security shall be convertible as specified in Section 1201, to convert such
Security only into the kind and amount of securities, cash and other property
receivable upon such consolidation, merger, sale or transfer by a holder of the
number of shares of Common Stock of the Company into which such Security might
have been converted immediately prior to such consolidation, merger, sale or
transfer. Such supplemental indenture shall provide for adjustments which, for
events subsequent to the effective date of such
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supplemental indenture, shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Article Twelve. If in the case of any such
consolidation, merger, sale or transfer, the stock or other securities and
property receivable by a Holder of the Securities includes stock or other
securities and property of a corporation other than the successor or purchasing
corporation, then such supplemental indenture shall also be executed by such
other corporation and shall contain such additional provisions to protect the
interests of the Holders of the Securities as the Board of Directors of the
Company shall reasonably consider necessary. The above provisions of this
Section 1211 shall similarly apply to successive consolidations, mergers, sales
or transfers. Notice of the execution of such a supplemental indenture shall be
given by the Company to the Holder of each Security as provided in Section 106
promptly upon such execution.
Section 1212. Compliance with Governmental Requirements. The Company
-----------------------------------------
covenants that if any shares of Common Stock required to be reserved for
purposes of conversion of Securities hereunder require registration or listing
with or approval of any governmental authority under any Federal or State law,
pursuant to the Securities Act or the Exchange Act , or any national or regional
securities exchange or other trading market on which the Common Stock is listed
at the time of delivery of any Common Stock, before such shares may be issued
upon conversion, the Company will use its best efforts to cause such shares to
be duly registered, listed or approved, as the case may be.
ARTICLE THIRTEEN
SINKING FUNDS
Section 1301. Applicability of Article.
------------------------
The provisions of this Article Thirteen shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise
permitted or required in or pursuant to this Indenture or any Security of such
series issued pursuant to this Indenture.
The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of such series is herein referred to as an "optional sinking
fund payment." If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 1302. Each sinking fund payment shall be applied to the redemption
of Securities of any series as provided for by the terms of Securities of such
series and this Indenture.
Section 1302. Satisfaction of Sinking Fund Payments With Securities.
-----------------------------------------------------
The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any series to be made pursuant to the
terms of such
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Securities (1) deliver Outstanding Securities of such series (other than any of
such Securities previously called for redemption or any of such Securities in
respect of which cash shall have been released to the Company), together in the
case of any Bearer Securities of such series with all unmatured Coupons
appertaining thereto, and (2) apply as a credit Securities of such series which
have been redeemed either at the election of the Company pursuant to the terms
of such series of Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, provided that
-------- ----
such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly. If as a result of the delivery or credit
of Securities of any series in lieu of cash payments pursuant to this Section
1302, the principal amount of Securities of such series to be redeemed in order
to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such series for redemption, except upon Company
Request, and such cash payment shall be held by the Trustee or a Paying Agent
and applied to the next succeeding sinking fund payment, provided, however, that
-------- -------
the Trustee or such Paying Agent shall at the request of the Company from time
to time pay over and deliver to the Company any cash payment so being held by
the Trustee or such Paying Agent upon delivery by the Company to the Trustee of
Securities of that series purchased by the Company having an unpaid principal
amount equal to the cash payment requested to be released to the Company.
Section 1303. Redemption of Securities for Sinking Fund.
-----------------------------------------
Not less than 75 days prior to each sinking fund payment date for any
series of Securities, the Company shall deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing mandatory 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 of
Securities of that series pursuant to Section 1302, 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 to be so credited and not
theretofore 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 more than 75 days or less than 45 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.
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ARTICLE FOURTEEN
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ARTICLE FIFTEEN
REPAYMENT AT THE OPTION OF HOLDERS
Section 1501. Applicability Of Article. Repayment of Securities of any
------------------------
series that are convertible into Common Stock pursuant to Article Twelve before
their Stated Maturity at the option of Holders thereof shall be made in
accordance with the terms of such Securities, if any, and (except as otherwise
specified by the terms of such series established pursuant to Section 301) in
accordance with this Article Fifteen.
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Section 1502. Repayment Of Securities. Securities of any series subject
-----------------------
to repayment in whole or in part (which shall be in a principal amount hereof
which is U.S. $1,000 or an integral multiple thereof) at the option of the
Holders thereof on any Repayment Date (as defined below) will, unless otherwise
provided in the Company's Board Resolutions or Officers' Certificate
establishing such series, be repaid at a price equal to the principal amount
thereof, together with interest and Additional Amounts, if any (the "Repayment
---------
Price"), if a Repayment Event shall occur or have occurred. For purposes hereof
- -----
a "Repayment Event" shall have occurred if the Common Stock (or other equity
---------------
securities into which such series of Securities is then convertible) is neither
listed for trading on a United States national securities exchange, the Nasdaq
National Market nor approved for trading on an established automated over-the-
counter trading market in the United States. The "Repayment Date" with respect
--------------
to any Repayment Event shall be the ninetieth (90th) day after the later of the
Exchange Date or the date a Repayment Event has occurred. The Company covenants
that at or prior to 10:00 a.m., Eastern Time, on the Repayment Date it will
deposit with the Trustee or with a Paying Agent (or, if the Company is acting as
its own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money in Dollars in which the Securities of such series are payable
sufficient to pay the principal (or, if so provided by the terms of the
Securities of any series, a percentage of the principal) of, and (except if the
Repayment Date shall be an Interest Payment Date) accrued interest and
Additional Amounts, if any, on, all the Securities or portions thereof, as the
case may be, to be repaid on such date.
Section 1503. Notice of Repayment. Unless the Company shall have
-------------------
theretofore called for redemption all of the Outstanding Securities of such
series, on or before the 30th day after the later of the Exchange Date and the
occurrence of a Repayment Event, the Company or, at the request and expense of
the Company, the Trustee shall give notice to all Holders of Securities entitled
to repayment pursuant to terms of such Securities established in accordance with
Section 301, in the manner provided in Section 106 (the "Repayment Notice"),
----------------
that a Repayment Event has occurred and of the repayment right set forth herein
arising as a result thereof. If applicable, the Company shall also deliver a
copy of the Repayment Notice to the Trustee.
All notices of repayment shall identify the Securities eligible for
repayment and shall state:
(1) the Repayment Date,
(2) the date by which the repayment right must be exercised,
(3) the Repayment Price,
(4) the Conversion Price then in effect, the date on which the right to
convert the Securities to be repaid will terminate and the place or places where
such Securities, together (in the case of Bearer Securities) with all Coupons
appertaining thereto, if any, maturing after the Repayment Date, may be
surrendered for conversion,
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(5) a description of the procedure which a Holder must follow to exercise
a repayment right and the place or places where such Securities, together (in
the case of Bearer Securities) with all Coupons appertaining thereto, if any,
maturing after the Repayment Date, are to be surrendered for payment and accrued
interest and Additional Amounts, if any, pertaining thereto, and
(6) that, unless otherwise specified in such notice, Bearer Securities of
any series, if any, surrendered for repayment must be accompanied by all Coupons
maturing subsequent to the Repayment Date or the amount of any such missing
Coupon or Coupons will be deducted from any amount due to such Holder, unless
security or indemnity satisfactory to the Company, the Trustee and any Paying
Agent is furnished.
Section 1504. Exercise Of Option. Securities of any series subject to
------------------
repayment at the option of the Holders thereof will contain an "Option to Elect
Repayment" form substantially in the form of Exhibit E, on the reverse of such
---------
Securities. In order for any Security to be repaid at the option of the Holder,
the Trustee must receive at the Place of Payment therefor specified in the terms
of such Security (or at such other place or places of which the Company shall
from time to time notify the Holders of such Securities) not earlier than 60
days nor later than 30 days prior to the Repayment Date (1) the Security so
providing for such repayment together with the "Option to Elect Repayment" form
on the reverse thereof duly completed by the Holder (or by the Holder's attorney
duly authorized in writing) or (2) a telegram, facsimile transmission or a
letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. ("NASD"), or a commercial bank or trust
company in the United States setting forth the name of the Holder of the
Security, the principal amount of the Security, the principal amount of the
Security to be repaid, the CUSIP number, if any, or a description of the tenor
and terms of the Security, a statement that the option to elect repayment is
being exercised thereby and a guarantee that the Security to be repaid, together
with the duly completed form entitled "Option to Elect Repayment" on the reverse
of the Security, will be received by the Trustee not later than the fifth
Business Day after the date of such telegram, facsimile transmission or letter;
provided, however, that such telegram, facsimile transmission or letter shall
- -------- -------
only be effective if such Security and form duly completed are received by the
Trustee by such fifth Business Day. If less than the entire principal amount of
such Security is to be repaid in accordance with the terms of such Security, the
principal amount of such Security to be repaid, in increments of the minimum
denomination for Securities of such series, and the denomination or
denominations of the Security or Securities to be issued to the Holder for the
portion of the principal amount of such Security surrendered that is not to be
repaid, must be specified. The principal amount of any Security providing for
repayment at the option of the Holder thereof may not be repaid in part if,
following such repayment, the unpaid principal amount of such Security would be
less than the minimum authorized denomination of Securities of the series of
which such Security to be repaid is a part. Except as otherwise may be provided
by the terms of any Security providing for repayment at the option of the Holder
thereof, exercise of the repayment option by the Holder shall be irrevocable
unless waived by the Company.
Section 1505. When Securities Presented For Repayment Become Due And
------------------------------------------------------
Payable. If Securities of any series providing for repayment at the option of
- -------
the Holders thereof shall have been surrendered as provided in this Article
Fifteen and as provided by or pursuant to the terms
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of such Securities, such Securities or the portions thereof, as the case may be,
to be repaid shall become due and payable and shall be paid by the Company on
the Repayment Date therein specified, and on and after such Repayment Date
(unless the Company shall default in the payment of such Securities on such
Repayment Date) such Securities shall, if the same were interest-bearing, cease
to bear interest and the Coupons for such interest appertaining to any Bearer
Securities so to be repaid, except to the extent provided below, shall be void.
Upon surrender of any such Security for repayment in accordance with such
provisions, together with all Coupons, if any, appertaining thereto maturing
after the Repayment Date, the principal amount of such Security so to be repaid
shall be paid by the Company, together with accrued interest and Additional
Amounts, if any, to the Repayment Date; provided, however, that Coupons whose
-------- -------
Stated Maturity is on or prior to the Repayment Date shall be payable only at an
office or agency located outside the United States (except as otherwise provided
in Section 1002) and, unless otherwise specified pursuant to Section 301, only
upon presentation and surrender of such Coupons; and provided, further, that, in
the case of Registered Securities, installments of interest and Additional
Amounts, if any, whose Stated Maturity is on or prior to the Repayment Date
shall be payable (but without interest thereon, unless the Company shall default
in the payment thereof) to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.
If any Bearer Security surrendered for repayment shall not be accompanied
by all appurtenant Coupons maturing after the Repayment Date, such Security may
be paid after deducting from the amount payable therefor as provided in Section
1502 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 as
provided in the preceding sentence, such Holder shall be entitled to receive the
amount so deducted; provided, however, that interest represented by Coupons
-------- -------
shall be payable only at an office or agency located outside the United States
(except as otherwise provided in Section 1002) and, unless otherwise specified
as contemplated by Section 301, only upon presentation and surrender of those
Coupons.
If the principal amount of any Security surrendered for repayment shall
not be so repaid upon surrender thereof, such principal amount (together with
interest, if any, thereon accrued to such Repayment Date) shall, until paid,
bear interest from the Repayment Date at the rate of interest or yield to
maturity (in the case of Original Issue Discount Securities) set forth in such
Security.
Section 1506. Securities Repaid In Part. Upon surrender of any Registered
-------------------------
Security which is to be repaid in part only, the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such Security, without
service charge and at the expense of the Company, a new Registered Security or
Securities of the same series, of any authorized denomination specified by the
Holder, in an aggregate principal amount equal to and in exchange for the
portion of the principal of such Security so surrendered which is not to be
repaid.
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ARTICLE SIXTEEN
MEETINGS OF HOLDERS OF SECURITIES
Section 1601. Purposes for Which Meetings May Be Called.
-----------------------------------------
A meeting of Holders of Securities of any series may be called at any
time and from time to time pursuant to this Article Sixteen to make, give or
take any request, demand, authorization, direction, notice, consent, waiver or
other Act provided by this Indenture to be made, given or taken by Holders of
Securities of such series.
Section 1602. Call, Notice and Place of Meetings.
----------------------------------
(1) The Trustee may at any time call a meeting of Holders of
Securities of any series for any purpose specified in Section 1601, to
be held at such time and at such place in the Borough of Manhattan, The
City of New York, or, if Securities of such series have been issued in
whole or in part as Bearer Securities, in London or in such place
outside the United States as the Trustee shall determine. Notice of
every meeting of Holders of Securities of any series, setting forth the
time and the place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be given, in the manner
provided in Section 106, not less than 21 nor more than 180 days prior
to the date fixed for the meeting.
(2) 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 1601, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and
the Trustee shall not have mailed notice of or made the first
publication of the notice of such meeting within 21 days after receipt
of such request (whichever shall be required pursuant to Section 106) 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, or, if
Securities of such series are to be issued as Bearer Securities, in
London for such meeting and may call such meeting for such purposes by
giving notice thereof as provided in clause (1) of this Section.
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Section 1603. Persons Entitled to Vote at Meetings.
------------------------------------
To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.
Section 1604. 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; provided, however, that if any action is
-------- -------
to be taken at such meeting with respect to a consent or waiver which this
Indenture expressly provides may be given by the Holders of at least 66-2/3% in
principal amount of the Outstanding Securities of a series, the Persons entitled
to vote 66-2/3% in principal amount of the Outstanding Securities of such series
constitute a quorum. In the absence of a quorum within 30 minutes after 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 1602(1), except that such notice need be given only once not less than
five days prior to the date on which the meeting is scheduled to be reconvened.
Notice of the reconvening of an adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum.
Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted only by the affirmative vote of the Holders
of a majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 902, any
resolution with respect to any consent or waiver which this Indenture expressly
provides may be given by the Holders of at least 66-2/3% in principal amount of
the Outstanding Securities of a series may be adopted at a meeting or an
adjourned meeting duly convened and at which a quorum is present as aforesaid
only by the affirmative vote of the Holders of 66-2/3% in principal amount of
the Outstanding Securities of that series; and provided, further, that, except
as limited by the proviso to Section 902, any resolution with respect to any
request, demand, authorization, direction, notice, consent, waiver or other Act
which this Indenture expressly provides may be made, given or taken by the
Holders of a specified percentage, which is less than a majority, in principal
amount of the Outstanding Securities of a series may be adopted at a meeting or
an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid
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by the affirmative vote of the Holders of such specified percentage in principal
amount of the Outstanding Securities of such series.
Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the Coupons
appertaining thereto, whether or not such Holders were present or represented at
the meeting.
Section 1605. Determination of Voting Rights; Conduct and Adjournment of
----------------------------------------------------------
Meetings.
- --------
(1) Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable
for any meeting of Holders of Securities of such series in regard to
proof of the holding of Securities of such series and of the appointment
of proxies and in regard to the appointment and duties of inspectors of
votes, the submission and examination of proxies, certificates and other
evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate. Except as otherwise
permitted or required by any such regulations, the holding of Securities
shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in
Section 104 or by having the signature of the person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized
by Section 104 to certify to the holding of Bearer Securities. Such
regulations may provide that written instruments appointing proxies,
regular on their face, may be presumed valid and genuine without the
proof specified in Section 104 or other proof.
(2) 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
1602(2), 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.
(3) 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
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.
(4) Any meeting of Holders of Securities of any series duly
called pursuant to Section 1602 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.
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Section 1606. 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
triplicate, 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 1602 and, if
applicable, Section 1604. 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 SEVENTEEN
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ARTICLE EIGHTEEN
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[INTENTIONALLY OMITTED]
* * *
This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed, all
as of the day and year first above written.
THERMO ELECTRON CORPORATION
(SEAL) By:
--------------------------
Name:
Title:
Attest:
- ----------------------
Secretary
BANKERS TRUST COMPANY, as
TRUSTEE
By:
--------------------------
(SEAL) Name:
Title:
Attest:
- ----------------------
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STATE OF )
) :SS.:
COUNTY OF )
On the _____ day of ________________, 1997, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is a _____________ of Thermo Electron Corporation, a Delaware
corporation, 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 Corporation's 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
[NOTARIAL SEAL]
STATE OF )
) :SS.:
COUNTY OF )
On the ___ day of ________________, 1997, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is a _____________ of Bankers Trust Company, a New York banking
corporation, one of the persons described in and who executed the foregoing
instrument; that he knows the seal of said Corporation; that the seal affixed to
said instrument is such Corporation's 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
[NOTARIAL SEAL]
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EXHIBIT A
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
NAME OF TRUSTEE,
as Trustee
*Dated:
By:
-----------------------------
Authorized Officer
- ---------------------------------
* For Registered Securities Only
121
<PAGE>
EXHIBIT B
CONVERSION NOTICE
(a) For Bearer Securities:
The undersigned Holder of this Security hereby irrevocably exercises the
option to convert this Security, or any portion of the principal amount hereof
(which is an integral multiple of u.s. $1,000 below designated) into shares of
Common Stock in accordance with the terms of the Indenture referred to in this
Security and directs that such shares, together with a check in payment for any
fractional share and any Securities representing any unconverted principal
amount hereof, be delivered to the undersigned unless a different name has been
indicated below. The address for payment of any such check must be outside the
United States. If shares are to be registered in the name of a Person other than
the undersigned, the undersigned will pay all transfer taxes payable with
respect thereto.
Dated:
------------------------- --------------------------------
Signature
[MUST BE GUARANTEED IF STOCK IS
TO BE ISSUED IN A NAME OTHER THAN
THE REGISTERED HOLDER OF THE
SECURITY]
If shares are to be registered in the name of and delivered to a Person other
than the Holder, please print such Person's name and address:
Name
---------------------------------------------------------------------------
Address
-----------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Social Security or other Taxpayer Identification Number, if any Social Security
or other Taxpayer Identification Number, if any
HOLDER
Please print name and address of Holder
Name
---------------------------------------------------------------------------
Address
-----------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Social Security or other Taxpayer Identification Number, if any Social Security
or other Taxpayer Identification Number, if any
122
<PAGE>
Name and address (outside the United States) to where any check referred to in
the first paragraph of this Conversion Notice should be mailed:If only a portion
of the Securities is to be converted, please indicate:
1. Principal amount to be converted:
U.S.$
--------------------------------
- ----------------------------------- 2.Principal amount and denomination
Name of Registered Securities representing
unconverted principal amount to
be issued:
- -----------------------------------
Address Amount: U.S.$
-----------------------
Denominations:
U.S.$
--------------------------------
(any integral multiple of U.S. $1,000)
123
<PAGE>
(b) For Registered Securities:
The undersigned Holder of this Security hereby irrevocably exercises the
option to convert this Security, or any portion of the principal amount hereof
(which is an integral multiple of U.S. $1,000 below designated) into shares of
Common Stock in accordance with the terms of the Indenture referred to in this
Security, and directs that such shares, together with a check in payment for any
fractional share and any Securities representing any unconverted principal
amount hereof, be delivered to and be registered in the name of the undersigned
unless a different name has been indicated below. If shares are to be registered
in the name of a Person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto.
Dated:
--------------------------------- ----------------------------------
Signature
[MUST BE GUARANTEED IF STOCK
IS TO BE ISSUED IN A NAME OTHER
THAN THE REGISTERED HOLDER OF
THE SECURITY]
- ---------------------------------------
Name
- ---------------------------------------
Address
- ---------------------------------------
Social Security or other Taxpayer
Identification Number, if any
124
<PAGE>
If shares or Registered Securities are to be registered in the name of a Person
other than the Holder, please print such Person's name and address:If only a
portion of the Securities is to be converted, please indicate:
1. Principal amount to be converted:
U.S. $
-------------------------------
- ----------------------------------- 2.Principal amount and denomination
Name of Registered Securities representing
unconverted principal amount to
be issued:
- -----------------------------------
Address Amount: U.S.$
-----------------------
Denominations:
U.S.$
--------------------------------
(any integral multiple of U.S. $1,000)
125
<PAGE>
EXHIBIT C
Form of Certificate of Beneficial Ownership for
Bearer Securities to be Provided to the
Euroclear Operator or to Cedel Bank, societe anonyme
CERTIFICATION
U.S. $____________
THERMO ELECTRON CORPORATION
[Title of Securities]
(the "Securities")
This is to certify that as of the date hereof and except as set forth
below, $___________ aggregate principal amount of the above-mentioned Securities
held by you for our account are owned or, if this certificate is being delivered
in connection with a payment of interest, were owned, by or on behalf of, (a) a
person (other than a financial institution for purposes of resale during the
restricted period) who is not a United States person; or (b) a United States
person (other than a financial institution for purposes of resale during the
restricted period) who is (i) a foreign branch of a United States financial
institution or (ii) a United States person acquiring such Securities through the
foreign branch of a United States financial institution and who for purposes of
this certification holds such Securities through such financial institution on
the date hereof, and, in the case of either (i) or (ii), such United States
financial institution has agreed, for the benefit of the Company, to comply with
the requirements of Section 165(j)(3)(A), (B) or (C) of the United States
Internal Revenue Code of 1986, as from time to time amended, and the regulations
thereunder; or (c) a financial institution for purposes of resale during the
restricted period and such financial institution has not acquired such
Securities for purposes of resale directly or indirectly to a United States
person or to a person within the United States or its possessions; and the
undersigned has obtained a similar certificate from its member organizations on
which this certificate is based; provided, however, that if the undersigned has
actual knowledge that the information contained in such a certificate is false
(and, absent documentary evidence that the beneficial owner of such Security is
not a United States person, it will be deemed to have actual knowledge that such
certificate is false if it has a United States address for such beneficial
owner, other than a financial institution described above), the undersigned will
not deliver a Security in temporary or definitive bearer form to the person who
signed such certificate notwithstanding the delivery of such certificate to the
undersigned.
126
<PAGE>
<TABLE>
<CAPTION>
No. of Certificates Amount
<S> <C> <C>
$1,000 Denomination $
---------------- = -------------
$10,000 Denomination $
---------------- = -------------
[Other Authorized
Denomination] $
---------------- = -------------
Total Requested $
---------------- = -------------
</TABLE>
As used herein, (i) "United States person" means a citizen or resident
of the United States, a corporation, partnership or other entity created or
organized in or under the laws of the United States, an estate the income of
which is subject to United States Federal income taxation regardless of its
source, any trust if a court within the United States is able to exercise
primary supervision of the administration thereof and one or more United States
fiduciaries have the authority to control all substantial decisions thereof, and
any other person deemed a "United States person" or a "U.S. person" under the
Internal Revenue Code of 1986, as amended, (ii) "United States" means the United
States of America (including the States and the District of Columbia) and its
territories and possessions, including Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands, (iii)
"restricted period" means the period described in Section 1.163-5(c)(2)(i)(D)(7)
of the United States Treasury Regulations, and (iv) "financial institution"
means the persons described in Section 1. 165-12(c)(1)(v) of the United States
Treasury Regulations.
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 U.S.$_______________
of such interest in the above Securities in respect of which we are not able to
certify and as to which we understand exchange and delivery of Definitive
Securities cannot be made until we do so certify.
- ------------------------------------
/*/ Must equal the amount stated in the first paragraph of this
certificate.
127
<PAGE>
We understand that this certification is required in connection with
certain tax laws and, if applicable, certain securities 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 or a
copy hereof to any interested party in such proceedings.
Dated: ___________________, ____/**/
[Name]
By:
--------------------------------
Signature
As, or as agent for, the beneficial owner[s] of the Securities to which
this certificate relates.
/**/ Not earlier than 15 days prior to the earlier of the date that definitive
Bearer Security is delivered and the Exchange Date.
128
<PAGE>
EXHIBIT D
Form of Certificate to be Given by
the Euroclear Operator and Cedel Bank, societe anonyme
CERTIFICATION
U.S. $
THERMO ELECTRON CORPORATION
[Title of Securities]
(the "Securities")
This is to certify that, based solely on certifications we have received
in writing, by tested telex or electronic transmission from member organizations
appearing in our records as persons being entitled to a portion of the principal
amount set forth below or to interest payable on an interest payment date (our
"Member Organizations"), substantially to the effect set forth in the Indenture
relating to the above-captioned Securities, as of the date hereof, U.S.
$_______________ aggregate principal amount of the above-captioned Securities is
owned by persons that are not citizens or residents of the United States, United
States domestic partnerships, United States domestic corporations, any estate
the income of which is subject to United States Federal income taxation
regardless of its source, any trust if a court within the United States is able
to exercise primary supervision of the administration thereof and one or more
United States fiduciaries have the authority to control all substantial
decisions thereof, or any other person deemed a "United States person" or a
"U.S. person" under the Internal Revenue Code of 1986, as amended and the
regulations thereunder ("United States persons").
The following denominations of Bearer Securities are requested:
<TABLE>
<CAPTION>
No. of Certificates Amount
<S> <C> <C>
$1,000 Denomination $
---------------- = -------------
$10,000 Denomination $
---------------- = -------------
[Other Authorized
Denomination] $
---------------- = -------------
Total Requested = $ /*/
---------------- = -------------
</TABLE>
We further certify (i) that we are not making available herewith for exchange
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 Organization with respect to any portion of the part
- -----------------------
/*/ Must equal the amount stated in the first paragraph of this certificate.
129
<PAGE>
submitted herewith for exchange are no longer true and cannot be relied upon as
of the date hereof. We further certify that interest payable on the interest
payment dates on _________ and _________ will be paid with respect to U.S.
$_____________ principal amount of the Securities with respect to which we have
received from Member Organizations certificates substantially in the form set
out in Exhibit D to the Indenture relating to the Securities that the Securities
(a) are owned by a person (other than a financial institution for purposes of
resale during the restricted period) who is not a United States person; (b) are
owned by a United States person (other than a financial institution for purposes
of resale during the restricted period) who is (i) a foreign branch of a United
States financial institution or (ii) a United States person who acquired such
Securities through the foreign branch of a United States financial institution
and who for purposes of this certification holds such Securities through such
financial institution on the date hereof and, in either case, such United States
financial institution has agreed, for the benefit of the Company, to comply with
the requirements of Section 165(j)(3)(A), (B) or (C) of the United States
Internal Revenue Code of 1986, as from time to time amended, and the regulations
thereunder; or (c) are owned by a financial institution for purposes of resale
during the restricted period and such financial institution has certified that
it has not acquired such Securities for purposes of resale directly or
indirectly to a United States person or to a person within the United States or
its possessions.
To the extent that we have knowledge that any of such certificates from
a Member Organization is false and to the extent that we have not received with
respect to any Securities such certificates from Member Organization, we are not
requesting that payment be made for interest with respect thereto.
We further certify 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 Organization with respect to any interest payment
on any portion of the principal amount of the Securities are no longer true and
cannot be relied upon as of the date hereof. We further certify that under the
rules of the undersigned organization, each Member Organization has agreed that
any electronic certification shall have the effect of a signed certification and
that all certifications shall be retained for at least four calendar years
following the year in which the certifications are received in compliance with
the rules set forth under Treas. Reg. 1.163-5(c)(2)(i)(D)(3)(i).
We undertake that any interest received by us and not paid as provided
above shall be returned to the Trustee for the above-captioned Securities
immediately prior to the expiration of two years after such interest payment
date in order to be repaid by such Trustee to the above issuer at the end of two
years after such interest payment date.
We understand that this certification is required in connection with
certain tax laws and, if applicable, certain securities 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.
130
<PAGE>
As used herein, "United States" means the United States of America
(including the States and the District of Columbia); and its territories and
possessions, including Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands. As used herein, "restricted
period" means the period described in Section 1.163-5(c)(2)(i)(D)(7) of the
United States Treasury Regulations and "financial institution" means the persons
described in Section 1.165-12(c)(1)(v) of the United States Treasury
Regulations.
Dated: /**/
--------------------,-----
Yours faithfully,
[MORGAN GUARANTY TRUST COMPANY OF NEW
YORK, BRUSSELS OFFICE, AS OPERATOR OF
THE EUROCLEAR SYSTEM]
[CEDEL BANK, SOCIETE ANONYME]/***/
By:
----------------------------------
/**/ To be dated no earlier than the earlier of the date the definitive
Bearer Security is delivered and the Exchange Date.
/***/ Delete as appropriate.
131
<PAGE>
EXHIBIT E
OPTION TO ELECT REPAYMENT
UPON A REPAYMENT EVENT
To: Thermo Electron Corporation
---------------------------
The undersigned owner of this Security hereby acknowledges receipt of a
notice from Thermo Electron Corporation (the "Company") as to the occurrence of
a Repayment Event with respect to the Common Stock of the Company and requests
and instructs the Company to repay the entire principal amount of this Security,
or the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture referred to in this
Security at the Repayment Price (or the relevant percentage thereof), together
with accrued interest to such date (except if the Repayment Date shall be an
Interest Payment Date), to the holder hereof.
Dated:
---------------------------------
-------------------------------------
Signature*(s)
Name:
--------------------------------
Address:
-----------------------------
-----------------------------
[*Signature Guarantee Required]
Principal amount to be required
(if less than all):
$
-----------------
NOTICE: If this Security is issued in
registered form, the above signatures
of the holder(s) hereof must
correspond with the name as it
appears in the Security in every
particular without alteration or
enlargement or any change whatever.
- ------------------------------
Social Security or Other
Taxpayer Identification Number
<PAGE>
EXHIBIT 4.2
================================================================================
THERMO ELECTRON CORPORATION,
Issuer
to
BANKERS TRUST COMPANY,
Trustee
INDENTURE
Dated as of ________, 1997
SUBORDINATED DEBT SECURITIES
================================================================================
<PAGE>
Reconciliation and Tie between
Trust Indenture Act of 1939 (the "Trust Indenture Act") and Indenture
<TABLE>
<CAPTION>
Trust Indenture Act Section Indenture Section
--------------------------- -----------------
<S> <C>
Section 310(a)(1)...........................................607
(a)(2).....................................................607
(b)........................................................608
Section 311.................................................612
Section 312(a)..............................................701
(b)........................................................702
(c)........................................................702
Section 313(a)..............................................703
(b)(2).....................................................703
(c)........................................................703
(d)........................................................703
Section 314(a)..............................................704
(c)(1).....................................................102
(c)(2).....................................................102
(e)........................................................102
(f)........................................................102
Section 315(a)..............................................601
(b).........................................................602
(c)....................................................601, 602
(d).........................................................601
(e).........................................................515
Section 316(a)..............................................101
(a)(1)(A).............................................502, 512
(a)(1)(B)..................................................513
(b)........................................................508
Section 317(a)(1)...........................................503
(a)(2).....................................................504
(b).......................................................1003
Section 318(a)..............................................108
</TABLE>
Note: This reconciliation and tie shall not, for any purpose, be deemed to be
part of the Indenture.
Attention should also be directed to Section 318(c) of the Trust Indenture Act,
which provides that the provisions of Sections 310 to and including 317 are a
part of and govern every qualified indenture, whether or not physically
contained herein.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C>
ARTICLE ONE: DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION.................................................2
Section 101. Definitions.........................................................................................2
Section 102. Compliance Certificates and Opinions...............................................................13
Section 103. Form of Documents Delivered to Trustee.............................................................14
Section 104. Acts of Holders....................................................................................15
Section 105. Notices, Etc. to Trustee, Company..................................................................17
Section 106. Notice to Holders of Securities; Waiver............................................................18
Section 107. Language of Notices................................................................................19
Section 108. Conflict with Trust Indenture Act..................................................................19
Section 109. Effect of Headings and Table of Contents...........................................................19
Section 110. Successors and Assigns.............................................................................19
Section 111. Separability Clause................................................................................19
Section 112. Benefits of Indenture..............................................................................19
Section 113. Governing Law......................................................................................19
Section 114. Legal Holidays.....................................................................................20
Section 115. Taxes..............................................................................................23
ARTICLE TWO: SECURITIES AND GUARANTEE FORMS.........................................................................21
Section 201. Forms Generally....................................................................................21
Section 202. [INTENTIONALLY OMITTED]............................................................................21
Section 203. Form of Trustee's Certificate of Authentication....................................................21
Section 204. Securities in Global Form..........................................................................21
Section 205. Form of Conversion Notice..........................................................................22
ARTICLE THREE: THE SECURITIES.......................................................................................22
Section 301. Amount Unlimited; Issuable in Series...............................................................22
Section 302. Currency; Denominations............................................................................26
Section 303. Execution, Authentication, Delivery and Dating.....................................................26
Section 304. Temporary Securities...............................................................................29
Section 305. Registration, Transfer and Exchange................................................................31
Section 306. Mutilated, Destroyed, Lost and Stolen Securities...................................................34
Section 307. Payment of Interest and Certain Additional Amounts; Rights to
Interest and Certain Additional Amounts Preserved.......................................36
Section 308. Persons Deemed Owners..............................................................................38
Section 309. Cancellation.......................................................................................39
Section 310. Computation of Interest............................................................................39
Section 311. CUSIP Numbers......................................................................................39
Section 312. Notification of Withholding........................................................................40
ARTICLE FOUR: SATISFACTION AND DISCHARGE OF INDENTURE...............................................................41
Section 401. Satisfaction and Discharge.........................................................................41
Section 402. Defeasance and Covenant Defeasance.................................................................42
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
Section 403. Application of Trust Money.........................................................................46
ARTICLE FIVE: REMEDIES..............................................................................................47
Section 501. Events of Default..................................................................................47
Section 502. Acceleration of Maturity; Rescission and Annulment.................................................49
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee....................................50
Section 504. Trustee May File Proofs of Claim...................................................................51
Section 505. Trustee May Enforce Claims Without Possession of Securities or Coupons.............................52
Section 506. Application of Money Collected.....................................................................52
Section 507. Limitations on Suits...............................................................................52
Section 508. Unconditional Right of Holders to Receive Principal and Any Premium, Interest and Additional
Amounts.................................................................................53
Section 509. Restoration of Rights and Remedies.................................................................53
Section 510. Rights and Remedies Cumulative.....................................................................53
Section 511. Delay or Omission not Waiver.......................................................................54
Section 512. Control by Holders of Securities...................................................................54
Section 513. Waiver of Past Defaults............................................................................54
Section 514. Waiver of Usury, Stay or Extension Laws............................................................55
Section 515. Undertaking for Costs..............................................................................55
ARTICLE SIX: THE TRUSTEE.............................................................................................56
Section 601. Certain Rights of Trustee; Certain Duties and Responsibilities.....................................56
Section 602. Notice of Defaults.................................................................................57
Section 603. Not Responsible for Recitals or Issuance of Securities.............................................58
Section 604. May Hold Securities; Act as Trustee Under Other Indenture..........................................58
Section 605. Money Held in Trust................................................................................58
Section 606. Compensation and Reimbursement.....................................................................58
Section 607. Corporate Trustee Required; Eligibility............................................................59
Section 608. Resignation and Removal; Appointment of Successor..................................................59
Section 609. Acceptance of Appointment by Successor.............................................................61
Section 610. Merger, Conversion, Consolidation or Succession to Business........................................62
Section 611. Preferential Collection of Claims Against Company..................................................63
Section 612. Appointment of Authenticating Agent................................................................63
Section 613. Conflicting Interests..............................................................................65
Section 614. Protection of Agents...............................................................................65
ARTICLE SEVEN: HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY......................................................66
Section 701. Company to Furnish Trustee Names and Addresses of Holders..........................................66
Section 702. Preservation of Information; Communications to Holders.............................................66
Section 703. Reports by Trustee.................................................................................66
Section 704. Reports by Company.................................................................................67
ARTICLE EIGHT: CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER.........................................................68
</TABLE>
ii
<PAGE>
<TABLE>
<S> <C> <C>
Section 801. Company May Consolidate, Etc., Only on Certain Terms...............................................68
Section 802. Successor Corporation Substituted..................................................................69
ARTICLE NINE: SUPPLEMENTAL INDENTURES...............................................................................69
Section 901. Supplemental Indentures Without Consent of Holders.................................................69
Section 902. Supplemental Indentures With Consent of Holders....................................................70
Section 903. Execution of Supplemental Indentures...............................................................71
Section 904. Effect of Supplemental Indentures..................................................................72
Section 905. Reference in Securities to Supplemental Indentures.................................................72
Section 906. Conformity with Trust Indenture Act................................................................72
ARTICLE TEN: COVENANTS...............................................................................................72
Section 1001. Payment of Principal, Any Premium, Interest and Additional Amounts................................72
Section 1002. Maintenance of Office or Agency...................................................................73
Section 1003. Money for Securities Payments to be Held in Trust.................................................74
Section 1004. Additional Amounts................................................................................76
Section 1005. Statement as to Compliance........................................................................79
Section 1006. Corporate Existence...............................................................................79
ARTICLE ELEVEN: REDEMPTION OF SECURITIES............................................................................79
Section 1101. Applicability of Article..........................................................................79
Section 1102. Election to Redeem; Notice to Trustee.............................................................80
Section 1103. Selection by Trustee of Securities to be Redeemed.................................................81
Section 1104. Notice of Redemption..............................................................................82
Section 1105. Deposit of Redemption Price.......................................................................83
Section 1106. Securities Payable on Redemption Date.............................................................84
Section 1107. Securities Redeemed in Part.......................................................................85
ARTICLE TWELVE: CONVERSION OF SECURITIES............................................................................85
Section 1201. Conversion Privilege and Conversion Price.........................................................85
Section 1202. Exercise of Conversion Privilege..................................................................87
Section 1203. Fractions of Shares...............................................................................88
Section 1204. Adjustment of Conversion Price....................................................................88
Section 1205. Notice of Adjustments of Conversion Price.........................................................91
Section 1206. Notice of Certain Corporate Action................................................................91
Section 1207. Company to Reserve Common Stock...................................................................92
Section 1208. Taxes on Conversions..............................................................................92
Section 1209. Covenant as to Common Stock.......................................................................92
Section 1210. Cancellation of Converted Securities..............................................................93
Section 1211. Provision in Case of Consolidation, Merger or Sale of Assets......................................93
Section 1212. Compliance with Governmental Requirements.........................................................93
ARTICLE THIRTEEN: SINKING FUNDS.....................................................................................94
Section 1301. Applicability of Article..........................................................................94
Section 1302. Satisfaction of Sinking Fund Payments With Securities.............................................94
Section 1303. Redemption of Securities for Sinking Fund.........................................................95
</TABLE>
iii
<PAGE>
<TABLE>
<S> <C> <C>
ARTICLE FOURTEEN: [INTENTIONALLY OMITTED]............................................................................95
ARTICLE FIFTEEN: REPAYMENT AT THE OPTION OF HOLDERS.................................................................95
Section 1501. Applicability Of Article..........................................................................95
Section 1502. Repayment Of Securities...........................................................................95
Section 1503. Notice of Repayment...............................................................................96
Section 1504. Exercise Of Option................................................................................97
Section 1505. When Securities Presented For Repayment Become Due And Payable....................................97
Section 1506. Securities Repaid In Part.........................................................................98
ARTICLE SIXTEEN: MEETINGS OF HOLDERS OF SECURITIES..................................................................98
Section 1601. Purposes for Which Meetings May Be Called.........................................................98
Section 1602. Call, Notice and Place of Meetings................................................................99
Section 1603. Persons Entitled to Vote at Meetings..............................................................99
Section 1604. Quorum; Action....................................................................................99
Section 1605. Determination of Voting Rights; Conduct and Adjournment of Meetings..............................100
Section 1606. Counting Votes and Recording Action of Meetings..................................................101
ARTICLE SEVENTEEN: SUBORDINATION OF SECURITIES.....................................................................102
Section 1701. Securities Subordinate to Senior Indebtedness....................................................102
Section 1702. Payment Over of Proceeds Upon Dissolution, Etc...................................................102
Section 1703. No Payment When Senior Indebtedness in Default...................................................103
Section 1704. Payment Permitted If No Default..................................................................104
Section 1705. Subrogation to Rights of Holders of Senior Indebtedness..........................................104
Section 1706. Provisions Solely to Define Relative Rights......................................................104
Section 1707. Trustee to Effectuate Subordination..............................................................105
Section 1708. No Waiver of Subordination Provisions............................................................105
Section 1709. Notice to Trustee................................................................................105
Section 1710. Reliance on Judicial Order or Certificate of Liquidating Agent...................................106
Section 1711. Trustee Not Fiduciary for Holders of Senior Indebtedness.........................................106
Section 1712. Rights of Trustee as Holder of Senior Indebtedness; Preservation of Trustee's Rights.............107
Section 1713. Article Applicable to Paying Agents..............................................................107
ARTICLE EIGHTEEN: [INTENTIONALLY OMITTED]...........................................................................107
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Exhibits
Exhibit A Form of Trustee's Certificate of Authentication
Exhibit B Conversion Notice
Exhibit C Form of Certificate of Beneficial Ownership for Bearer Securities to be Provided to the Euroclear Operator or
to Cedel Bank, societe anonyme
Exhibit D Form of Certificate to be Given by the Euroclear Operator and Cedel Bank, societe anonyme
</TABLE>
iv
<PAGE>
Exhibit E Option to Elect Repayment upon a Repayment Event
v
<PAGE>
INDENTURE, dated as of __________ __, 1997 (the "Indenture"), between
---------
Thermo Electron Corporation, a corporation duly organized and existing under the
laws of the State of Delaware (hereinafter called the "Company"), having its
-------
principal executive office located at 81 Wyman Street, Waltham, Massachusetts
02254-9046; and Bankers Trust Company, a banking corporation duly organized and
existing under the laws of the United States of America (hereinafter called the
"Trustee"), having its principal Corporate Trust Office located at Four Albany
-------
Street, 4th Floor, New York, New York 10006.
RECITALS:
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
subordinated debentures, notes or other evidences of indebtedness (hereinafter
called the "Securities"), unlimited as to principal amount, to bear such rates
----------
of interest, to mature at such time or times, to be issued in one or more series
and to have such other provisions as shall be fixed as provided in this
Indenture.
All things necessary to make the Securities and any Coupons (as herein
defined), when executed by the Company and authenticated and delivered
hereunder, the valid obligations of the Company, and to make this Indenture a
valid agreement of the Company in accordance with its terms have been done.
This Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder that are required to be part of this
Indenture and, to the extent applicable, shall be governed by such provisions.
1
<PAGE>
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders (as herein defined) thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the
Securities or of any series thereof and any Coupons (as herein defined), as
follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 101. Definitions.
-----------
Except as otherwise expressly provided in or pursuant to this Indenture
or unless the context otherwise requires, for all purposes of this Indenture:
(1) the terms defined in this Article have the meanings assigned
to them in this Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the
meanings assigned to them therein;
(3) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted
accounting principles in the United States of America and, except as
otherwise herein expressly provided, the terms "generally accepted
------------------
accounting principles" or "GAAP" with respect to any computation
--------------------- ----
required or permitted hereunder shall mean such accounting principles as
are generally accepted in the United States of America, consistently
applied, at the date of such computation;
(4) the words "Article" and "Section" refer to an Article and
------- -------
Section, respectively, of this Indenture;
(5) the words "herein," "hereof," "hereto" 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; and
(6) the word "or" is always used inclusively (for example, the
--
phrase "A or B" means "A or B or both", not "either A or B but not
both").
Certain terms used principally in certain Articles hereof are defined in
those Articles.
"Act," when used with respect to any Holders, has the meaning specified
---
in Section 104.
"Additional Amounts" has the meaning specified in Section 1004.
------------------
2
<PAGE>
"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 612 to act on behalf of the Trustee to authenticate
Securities of one or more series.
"Authorized Newspaper" means a newspaper, in an official language of the
--------------------
place of publication or in the English language, customarily published on each
day that is a Business Day in the place of publication, whether or not published
on days that are Legal Holidays in the place of publication, and of general
circulation in each place in connection with which the term is used or in the
financial community of each such place. Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any day that is a Business Day in the
place of publication.
"Bankruptcy Law" has the meaning specified in Section 501.
--------------
"Bearer Security" means any Security established pursuant to Section 201
---------------
which is payable to bearer.
"Board of Directors," when used with reference to the Company means
------------------
either the board of directors or any duly authorized committee of such board of
directors of the Company.
"Board Resolution," when used with reference to the Company, means a
----------------
copy of one or more resolutions, certified by the Corporate Secretary or an
Assistant Corporate Secretary of the Company, to have been duly adopted by its
Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day," with respect to any Place of Payment, Place of
------------
Conversion or other location, means, unless otherwise specified with respect to
any Securities pursuant to Section 301, any day other than a Saturday, Sunday or
other day on which banking institutions in such Place of Payment, Place of
Conversion or other location are authorized or obligated by law, regulation or
executive order to close.
"Cash Settlement Option" has the meaning specified in Section 1201.
----------------------
"CEDEL" has the meaning specified in Section 304(c).
-----
"Closing Price Per Share" means, with respect to common stock, for any
-----------------------
day, the reported last sales price regular way per share or, in case no such
reported sale takes place on
3
<PAGE>
such day, the average of the reported closing bid and asked prices regular way,
as reported on the principal national or regional United States securities
exchange on which such common stock is traded or, if such common stock is not
listed or admitted to trading on a United States national or regional exchange,
as reported on the Nasdaq National Market, or if such common stock is not listed
or admitted to trading on the Nasdaq National Market, the average of the closing
bid and asked prices in the over the counter market as furnished by any New York
Stock Exchange member firm selected from time to time by the Company for that
purpose.
"Commission" means the Securities and Exchange Commission, as from time
----------
to time constituted, created under the Exchange Act or, if at any time after the
execution of this Indenture 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 Depository" means the Person specified as such pursuant to
-----------------
Section 301.
"Common Stock" means the Common Stock, par value $1.00 per share, of the
------------
Company authorized at the date of this instrument as originally executed.
Subject to the provisions of Section 1201 and 1211, shares issuable on
conversion of Securities shall include only shares of Common Stock or shares of
any class or classes of common stock resulting from any reclassification or
reclassifications thereof; provided, however, that if at any time there shall be
-------- -------
more than one such resulting class, the shares so issuable on conversion of
Securities shall include shares of all such classes, and the shares of each such
class then so issuable shall be substantially in the proportion that the total
number of shares of such class resulting from all such reclassifications bears
to the total number of shares of all such classes resulting from all such
reclassifications.
"common stock" includes any stock of any class of capital stock which
------------
has no preference in respect of dividends or of amounts payable in the event of
any voluntary or involuntary liquidation, dissolution or winding up of the
issuer thereof and which, by its terms, is not subject to redemption by the
issuer thereof.
"Company" means the Person named as the "Company" in the first paragraph
------- -------
of this Indenture until a successor Person shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Company" shall mean
-------
such successor Person.
"Company Request" and "Company Order" mean, respectively, a written
--------------- -------------
request or order, as the case may be, signed in the name of the Company by any
two Officers or by any Officer and either an Assistant Treasurer or an Assistant
Corporate Secretary, of the Company and delivered to the Trustee.
"Conversion Agent" means any Person authorized by the Company to convert
----------------
Securities in accordance with Article Twelve.
"Conversion Date" means the date on which any Security, which is
---------------
convertible by the terms and provisions of such Security established pursuant to
Section 301, and the duly signed
4
<PAGE>
and completed conversion notice shall have been delivered to any Place of
Conversion in accordance with the provisions of Article Twelve.
"Conversion Price" has the meaning specified in Section 1201.
----------------
"Corporate Secretary" or "Assistant Corporate Secretary" means the
------------------- -----------------------------
person elected by the Company's Board of Directors to hold the title of
"Secretary" or "Assistant Secretary" as provided for by the applicable corporate
law of the Company's jurisdiction of incorporation.
"Corporate Trust Office" means the principal corporate trust office of
----------------------
the Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of original execution of this
Indenture is located at Four Albany Street, New York, New York 10006.
"Corporation" and "corporation" includes corporations, associations,
----------- -----------
companies and business trusts.
"Coupon" means any interest coupon appertaining to a Bearer Security.
------
"Currency," with respect to any payment, deposit or other transfer in
--------
respect of the principal of or any premium or interest on or any Additional
Amounts with respect to any Security, means Dollars, and, with respect to any
other payment, deposit or transfer pursuant to or contemplated by the terms
hereof or such Security, also means Dollars.
"CUSIP Number" means the alphanumeric designation assigned to a Security
------------
by Standard & Poor's Ratings Services, CUSIP Service Bureau.
"Custodian" has the meaning specified in Section 501.
---------
"Default" means any event or condition the occurrence of which would,
-------
with the lapse of time or the giving of notice, or both, constitute an Event of
Default.
"Defaulted Interest" has the meaning specified in Section 307.
------------------
"Definitive Security" means any Security that is a Bearer Security
-------------------
(other than the temporary global Bearer Security) or a Registered Security.
"Dollars" or "$" means a dollar or other equivalent unit of legal tender
------- -
for payment of public or private debts in the United States.
"EUROCLEAR" has the meaning specified in Section 304(c).
---------
"Event of Default" has the meaning specified in Section 501.
----------------
5
<PAGE>
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
------------
"Exchange Date" means the date specified as such pursuant to Section
-------------
301.
"Exchange Act" means the Securities Exchange Act of 1934, as amended
------------
from time to time.
"Foreign Entity" has the meaning specified in Section 801.
--------------
"GAAP" means such accounting principles as are generally accepted in the
----
United States of America as of the date or time of any computation required
hereunder.
"Government Obligations" means securities which are (i) direct
----------------------
obligations of the United States or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
where the timely payment or payments thereunder are unconditionally guaranteed
as a full faith and credit obligation by the United States, and which, in the
case of (i) or (ii), are not callable or redeemable at the option of the issuer
or issuers thereof, and shall also include a depository receipt issued by a bank
or trust company as custodian with respect to any such Government Obligation or
a specific payment of interest on or principal of or other amount with respect
to any such 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 Government Obligation or the specific payment of interest on or
principal of or other amount with respect to the Government Obligation evidenced
by such depository receipt.
6
<PAGE>
"Holder," in the case of any Registered Security, means the Person in
------
whose name such Security is registered in the Security Register and, in the case
of any Bearer Security, means the bearer thereof and, in the case of any Coupon,
means the bearer thereof.
"Indenture" means this instrument 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 and, with respect to any
Security, by the terms and provisions of such Security and any Coupon
appertaining thereto established pursuant to Section 301 (as such terms and
provisions may be amended pursuant to the applicable provisions hereof).
"Independent Public Accountants" means accountants or a firm of
------------------------------
accountants that, with respect to the Company and any other obligor under the
Securities or the Coupons, are independent public accountants within the meaning
of the Securities Act, and the rules and regulations promulgated by the
Commission thereunder, who may be the independent public accountants regularly
retained by the Company or who may be other independent public accountants. Such
accountants or firm shall be entitled to rely upon any Opinion of Counsel as to
the interpretation of any legal matters relating to this Indenture or
certificates required to be provided hereunder.
"Indexed Security" means a Security the terms of which provide that the
----------------
principal amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.
"Interest" or "interest," with respect to any Original Issue Discount
-------- --------
Security, which by its terms bears interest only after Maturity, means interest
payable after Maturity and, when used with respect to a Security which provides
for the payment of Additional Amounts pursuant to Section 1004, includes such
Additional Amounts.
"Interest Payment Date," with respect to any Security, means the Stated
---------------------
Maturity of an installment of interest on such Security.
"Interest Record Date" means any Regular Record Date or Special Record
--------------------
Date.
"Internal Revenue Code" means the United States Internal Revenue Code of
---------------------
1986, as amended.
"Investment Company Act" means the Investment Company Act of 1940 and
----------------------
any statute successor thereto, in each case as amended from time to time.
"Legal Holidays" has the meaning specified in Section 114.
--------------
7
<PAGE>
"Market Price" has the following meaning unless otherwise defined in the
------------
Company's Board Resolutions or Officers' Certificate relating to a particular
series of Securities: (A) in case the Company chooses the Cash Settlement Option
with respect to the conversion of Securities, means the Weighted Average Price
of the Common Stock on the last Trading Day preceding the applicable Conversion
Date."
"Maturity," 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 provided in or pursuant to this Indenture, whether at the Stated
Maturity or by declaration of acceleration, notice of redemption or repayment,
notice of option to elect repayment or otherwise, and includes the Redemption
Date."
"Office" or "Agency", with respect to any Securities, means an office or
------ ------
agency of the Company maintained or designated as a Place of Payment for such
Securities pursuant to Section 1002 or any other office or agency of the Company
maintained or designated for such Securities pursuant to Section 1002 or, to the
extent designated or required by Section 1002 in lieu of such office or agency,
the Corporate Trust Office of the Trustee.
"Officer" means the Chairman of the Board, the President, any Vice
-------
President (whether or not designated by a number or word added before or after
the title vice president), the Treasurer or the Corporate Secretary of the
Company.
"Officers' Certificate" of the Company means a certificate signed by two
---------------------
Officers or by any Officer and either an Assistant Treasurer or an Assistant
Corporate Secretary of the Company that complies with the requirements of
Section 314(e) of the Trust Indenture Act and is delivered to the Trustee."
8
<PAGE>
"Opinion of Counsel" means a written opinion of counsel, who (unless
------------------
otherwise provided herein) may be an employee of or counsel for the Company or
other counsel that, if required by the Trust Indenture Act, complies with the
requirements of Section 314(e) of the Trust Indenture Act.
"Original Issue Discount Security" means any Security issued pursuant to
--------------------------------
this Indenture which provides for an amount less than the principal face amount
thereof to be due and payable upon acceleration of the Maturity thereof pursuant
to Section 502.
"Outstanding," when used with respect to any Securities, means, as of
-----------
the date of determination, all such Securities theretofore authenticated and
delivered under this Indenture, except:
(1) any such Security theretofore canceled by the Trustee or the
Security Registrar or delivered to the Trustee or the Security Registrar
for cancellation;
(2) any such Security for whose payment at the Maturity thereof
money in the necessary amount has been theretofore deposited pursuant
hereto (other than pursuant to Section 402) with the Trustee or any
Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its own
Paying Agent), for the Holders of such Securities and any Coupons
appertaining thereto, provided that, if such Securities are to be
redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been
made;
(3) any such Security with respect to which the Company has
effected defeasance or covenant defeasance pursuant to Section 402,
except to the extent provided in Section 402; and
(4) any such Security which has been paid pursuant to Section
306 or in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to this Indenture, unless there
shall have been presented to the Trustee proof satisfactory to it that
such Security is held by a bona fide purchaser in whose hands such
Security is a valid obligation 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 or are present at a meeting of Holders of Securities for
quorum purposes, (i) the principal amount of an Original Issue Discount
Security that may be counted in making such determination and that shall
be deemed to be Outstanding for such purposes shall be equal to the
amount of the principal thereof that pursuant to the terms of such
Original Issue Discount Security would be declared (or shall have been
declared to be) due and payable upon a declaration of acceleration
thereof pursuant to Section 502 at the time of such determination, and
(ii) the principal amount of any Indexed Security that may be counted in
making such determination and that shall be deemed outstanding for such
purpose shall be equal to the principal face amount of such
9
<PAGE>
Indexed Security at original issuance, unless otherwise provided in or
pursuant to this Indenture, and (iii) Securities beneficially owned by
the Company or any other obligor upon the Securities or any Affiliate of
the Company shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in
making any such determination or relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Securities so owned which shall have been
pledged in good faith shall be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee (a) the pledgee's right
so to act with respect to such Securities and (b) that the pledgee is
not the Company or any other obligor upon the Securities or any Coupons
appertaining thereto or an Affiliate of the Company or such other
obligor.
"Paying Agent" means any Person authorized by the Company to pay the
------------
principal of, or any premium or interest on, or any Additional Amounts with
respect to, any Security or any Coupon or take any other actions specifically
provided in this Indenture on behalf of the Company.
"Person" means any individual, corporation, partnership, association,
------
joint venture, joint-stock company, limited liability company, trust, estate,
unincorporated organization or government or any agency or political subdivision
thereof.
"Place of Conversion" means any city in which any Conversion Agent is
-------------------
located.
"Place of Payment," with respect to any Security, means the place or
----------------
places where the principal of, or any premium or interest on, or any Additional
Amounts with respect to, such Security are payable as provided in or pursuant to
this Indenture or such Security."
"Predecessor Security" of any particular Security means every previous
--------------------
Security evidencing all or a portion of the same indebtedness as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in exchange for or in
lieu of a lost, destroyed, mutilated or stolen Security or any Security to which
a mutilated, destroyed, lost or stolen Coupon appertains shall be deemed to
evidence the same indebtedness as the lost, destroyed, mutilated or stolen
Security or the Security to which a mutilated, destroyed, lost or stolen Coupon
appertains.
"Redemption Date," with respect to any Security or portion thereof to be
---------------
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture or such Security.
10
<PAGE>
"Redemption Price," with respect to any Security or portion thereof to
----------------
be redeemed, means the price at which it is to be redeemed as determined by or
pursuant to this Indenture or such Security."
"Registered Security" means any Security established pursuant to Section
-------------------
201 which is registered in the Security Register.
"Regular Record Date" for the interest payable on any Registered
-------------------
Security on any Interest Payment Date therefor means the date, if any, specified
in or pursuant to this Indenture or such Security as the "Regular Record Date.
"Repayment Date" has the meaning specified in Section 1502.
--------------
"Repayment Event" has the meaning specified in Section 1502.
---------------
"Repayment Notice" has the meaning specified in Section 1503.
----------------
"Repayment Price" has the meaning specified in Section 1502.
---------------
"Responsible Officer," shall mean when used with respect to the Trustee,
-------------------
any officer within the Corporate Trust Office including any Vice President,
Managing Director, Assistant Vice President, Secretary, Assistant Secretary,
Treasurer or Assistant Treasurer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge and familiarity
with the particular subject.
"Security" or "Securities" means any note or notes, bond or bonds,
-------- ----------
debenture or debentures, or any other evidences of indebtedness, as the case may
be, authenticated and delivered under this Indenture; provided, however, that,
if at any time there is more than one Person acting as Trustee under this
Indenture, "Securities," with respect to any such Person, shall mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.
"Securities Act" means the Securities Act of 1933, as amended."
--------------
"Security Register" and "Security Registrar" have the respective
----------------- ------------------
meanings specified in Section 305.
"Senior Indebtedness" of the Company means the principal of, premium, if
-------------------
any, and interest on and all other amounts due on or with respect to the
following, whether outstanding at the date of execution of this Indenture or
thereafter incurred or created:
(i) indebtedness of the Company for money borrowed by the
Company (excluding the Securities being issued or to be issued pursuant to this
Indenture, which will rank pari passu
11
<PAGE>
with the obligations represented by all other Securities issued pursuant to this
Indenture in right of payment), whether or not evidenced by debentures, bonds,
notes or other corporate debt securities or similar instruments issued by the
Company (including the Company's obligations with respect to its 5% Senior
Convertible Debentures due 2001); provided, however, that Senior Indebtedness
-------- -------
shall not include (a) the Company's 4 1/4% Convertible Subordinated Debentures
due 2003 and the 4 7/8% Convertible Subordinated Debentures due 1997, the
obligations represented by which shall rank pari passu with the obligations
represented by all Securities issued under this Indenture in right of payment
and (b) the Company's subordinated guarantee of the obligations to redeem the
common stock of Thermo Fibergen Inc., ThermoLyte Corporation and ThermoLase
Corporation, the obligations represented by which shall rank pari passu with the
obligations represented by the Securities issued pursuant to this Indenture;
(ii) obligations to reimburse any bank or other person in
respect of amounts paid under letters of credit;
(iii) leases of real property, equipment or other assets, which
leases are capitalized in the Company's financial statements in accordance with
GAAP;
(iv) commitment, standby and other fees due and payable to
financial institutions with respect to credit facilities available to the
Company;
(v) obligations of the Company under interest rate and
currency swaps, floors, caps or other similar arrangements intended to hedge
interest rates or currency exposure;
(vi) obligations secured by any mortgage, pledge, lien or
other encumbrance on property which is owned or held by the Company subject to
such mortgage, pledge, lien or other encumbrance, whether or not the obligations
secured thereby shall have been assumed by the Company;
(vii) obligations of the Company constituting guarantees of
indebtedness of or joint obligations with another or others which would be
included in the preceding clauses (i), (ii), (iii), (iv), (v) or (vi); and
(viii) modifications, renewals, extensions or refundings of any
of the indebtedness, leases, fees or obligations referred to in the preceding
clauses (i), (ii), (iii), (iv), (v), (vi) or (vii), or debentures, notes or
other evidences of indebtedness issued in exchange therefor;
provided that Senior Indebtedness shall not include any particular indebtedness,
- -------- ----
lease, fee, obligation, modification, renewal, extension, refunding or exchanged
securities if, under the express provisions of the instrument creating or
evidencing the same, or pursuant to which the same is outstanding, such
indebtedness, lease, fee or obligation or such modification, renewal, extension,
refunding or exchanged security is stated to be not superior in right to payment
to the Securities.
12
<PAGE>
"Senior Lender" means any holder of Senior Indebtedness.
-------------
"Special Record Date" for the payment of any Defaulted Interest on any
-------------------
Registered Security means a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity," with respect to any Security or any installment of
---------------
principal thereof or interest thereon or any Additional Amounts with respect
thereto, means the date established by or pursuant to this Indenture or such
Security or Coupon as the fixed date on which the principal of such Security or
such installment of principal or interest is, or such Additional Amounts are,
due and payable.
"Subsidiary" means a corporation or other entity, a majority of the
----------
outstanding voting securities or other ownership interests having ordinary
voting power to elect a majority of the corporate directors or other Persons
performing similar functions of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries.
"Tax" has the meaning specified in Section 1004.
---
"Tax Affected Security" means any Security held by a non-United States
---------------------
person to whom Additional Amounts have or will become payable.
"Tax Law Change" means any change in, or amendment to, the laws
--------------
(including any regulations or rulings promulgated thereunder) of the United
States or any political subdivision or taxing authority thereof or therein
affecting taxation, or any change in, or amendment to, the application or
official interpretation of such laws, regulations or rulings.
"Trading Days" means (i) if the common stock is quoted on the Nasdaq
------------
National Market or any similar system of automated dissemination of quotations
of securities prices, days on which trades may be effected through such system,
(ii) if the common stock is listed or admitted for trading on any national
securities exchange, days on which such national securities exchange
13
<PAGE>
is open for business or (iii) if the common stock is not quoted on the Nasdaq
National Market or similar system or listed or admitted to trading on any
national securities exchange, days on which the common stock is traded regular
way in the over-the-counter market and for which a closing bid and a closing
asked price for the common stock are available.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
-------------------
and any reference herein to the Trust Indenture Act or a particular provision
thereof shall mean such Act or provision, as the case may be, as amended or
replaced from time to time or as supplemented from time to time by rules or
regulations adopted by the Commission under or in furtherance of the purposes of
such Act or provision, as the case may be.
"Trustee" means the Person named as the "Trustee" in the first paragraph
------- -------
of this instrument until a successor Trustee shall have become such with respect
to one or more series of Securities pursuant to the applicable provisions of
this Indenture, and thereafter "Trustee" shall mean or include each Person who
-------
is then a Trustee hereunder; provided, however, that 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 such series.
"United States," except as otherwise provided in or pursuant to this
-------------
Indenture or any Security, means the United States of America (including the
states thereof and the District of Columbia), its territories and possessions
and other areas subject to its jurisdiction.
"United States person" is a person that is, for United States Federal
--------------------
income tax purposes, (a) a citizen or resident of the United States, (b) a
corporation, partnership or other entity created or organized in or under the
laws of the United States or any political subdivision thereof, (c) an estate,
the income of which is subject to United States Federal income taxation
regardless of source, (d) any trust if a court within the United States is able
to exercise primary supervision of the administration thereof and one or more
United States fiduciaries have the authority to control all substantial
decisions thereof, or (e) any other person included within the definition of
United States person under the Internal Revenue Code and the regulations
thereunder.
"U.S. Depository" or "Depository" means, with respect to any Security
--------------- ----------
issuable or issued in the form of one or more global Securities, the Person
designated as U.S. Depository or Depository by the Company in or pursuant to
this Indenture, which Person must be, to the extent required by applicable law
or regulation, a clearing agency registered under the Exchange Act, and, if so
provided with respect to any Security, any successor to such Person. If at any
time there is more than one such Person, "U.S. Depository" or "Depository" shall
--------------- ----------
mean, with respect to any Securities, the qualifying entity which has been
appointed with respect to such Securities.
"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."
--------------
14
<PAGE>
"Weighted Average Price" of a share of Common Stock during any period,
----------------------
unless otherwise defined in the Company's Board Resolutions or Officers'
Certificate relating to a particular series of Securities means the weighted
average per share sale price for all reported sales of shares of Common Stock on
the Trading Days included within such period (or, if the information necessary
to calculate such weighted average per share sale price is not available, the
average of the high and low sale prices or, if only one sale is reported, such
sale price) as reported in the composite transactions on the principal national
or regional United States securities exchange on which the Common Stock is
listed or admitted to trading, or if the Common Stock is not listed or admitted
to trading on a United States national or regional securities exchange, as
reported on the Nasdaq National Market, or if the Common Stock is not listed or
admitted to trading on the Nasdaq National Market, as reported in the over the
counter market and as furnished by any New York Stock Exchange member firm
selected from time to time by the Company for that purpose.
Section 102. Compliance Certificates and Opinions.
------------------------------------
Except as otherwise expressly provided in this Indenture, 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, except that in the case
of any such application or request as to which the furnishing of such document
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.
Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:
(1) a statement that each individual signing such certificate
or opinion has read such condition or covenant and the definitions herein
relating thereto;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;
(3) 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 condition or covenant has
been satisfied or complied with; and
(4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been satisfied or complied with.
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Section 103. Form of Documents Delivered to Trustee.
--------------------------------------
In any case where several matters are required to be certified by or
covered by an opinion of any specified Person, it is not necessary that all such
matters be certified by or covered by the opinion of only one such Person, or
that they be so certified or covered by only one document, but one such Person
may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give
an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon an Opinion of Counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the
opinion with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such 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 or any Security, they may, but need not, be
consolidated and form one instrument.
Section 104. Acts of Holders.
---------------
(1) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by or pursuant to this
Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor
signed by such Holders in person or by an agent duly appointed in
writing. If, but only if, Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in or pursuant to this
Indenture to be given or taken by Holders of Securities 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 Sixteen, or a combination of such
instruments and any such record. Except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments or record or both are delivered to the Trustee and, where it
is hereby expressly required, to the Company. Such instrument or
instruments and any such record (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, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and
(subject to Section 315 of the Trust Indenture Act) conclusive in favor
of
16
<PAGE>
the Trustee and the Company and any agent of the Trustee or 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 1606.
Without limiting the generality of this Section 104, unless
otherwise provided in or pursuant to this Indenture, a Holder, including
a Depository that is a Holder of a global Security, may make, give or
take, by a proxy, or proxies, duly appointed in writing, any request,
demand, authorization, direction, notice, consent, waiver or other Act
provided in or pursuant to this Indenture or the Securities to be made,
given or taken by Holders, and a Depository that is a Holder of a global
Security may provide its proxy or proxies to the beneficial owners of
interests in any such global Security through such Depository's standing
instructions and customary practices.
(2) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner which the
Trustee deems sufficient and in accordance with such reasonable rules as
the Trustee may determine; and the Trustee may in any instance require
further proof with respect to any of the matters referred to in this
Section 104.
(3) The ownership, principal amount and serial numbers of
Registered Securities held by any Person, and the date of the
commencement and the date of the termination of holding the same, shall
be proved by the Security Register.
(4) The ownership, principal amount and serial numbers of Bearer
Securities held by any Person, and the date of the commencement and the
date of the termination of holding the same, may be proved by the
production of such Bearer Securities or by a certificate executed, as
depository, by any trust company, bank or other depository reasonably
acceptable to the Company, wherever situated, if such certificate shall
be deemed by the Company and the Trustee to be satisfactory, showing
that at the date therein mentioned such Person had on deposit with such
depository, or exhibited to it, the Bearer Securities therein described;
or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit
is deemed by the Company and the Trustee to be satisfactory. The Trustee
and the Company may assume that such ownership of any Bearer Security
continues until (i) another certificate or affidavit bearing a later
date issued in respect of the same Bearer Security is produced, or (ii)
such Bearer Security is produced to the Trustee by some other Person, or
(iii) such Bearer Security is surrendered in exchange for a Registered
Security, or (iv) such Bearer Security is no longer Outstanding. The
ownership, principal amount and serial numbers of Bearer Securities held
by the Person so executing such instrument or writing and the date of
the commencement and the date of the termination of holding the same may
also be proved in any other manner which the Company and the Trustee
deem sufficient.
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(5) If the Company shall solicit from the Holders of any
Registered Securities any request, demand, authorization, direction,
notice, consent, waiver or other Act, the Company may at its option (but
is not obligated to), by a Company Board Resolution, fix in advance a
record date for the determination of Holders of Registered Securities
entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or
other Act may be given before or after such record date, but only the
Holders of Registered Securities of record at the close of business on
such record date shall be deemed to be Holders for the purpose of
determining whether Holders of the requisite proportion of Outstanding
Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act,
and for that purpose the Outstanding Securities shall be computed as of
such record date; provided that no such authorization, agreement or
consent by the Holders of Registered Securities 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.
(6) Any request, demand, authorization, direction, notice,
consent, waiver or other Act by the Holder of any Security shall bind
every future Holder of the same Security and any Coupon appertaining
thereto and the Holder of every Security or Coupon issued upon the
registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done or suffered to be done by the
Trustee, any Security Registrar, any Paying Agent or the Company in
reliance thereon, whether or not notation of such Act is made upon such
Security.
(7) Without limiting the foregoing, a Holder entitled hereunder
to give or take any action hereunder with regard to any particular
Security may do so with regard to all or any part of the principal
amount of such Security or by one or more duly appointed agents each of
which may do so pursuant to such appointment with regard to all or any
different part of such principal amount.
Section 105. Notices, Etc. to Trustee and Company.
------------------------------------
Any request, demand, authorization, direction, notice, consent, waiver
or other Act of Holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or the Company shall be sufficient
for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee at its Corporate Trust Office, or
(2) the Company by the Trustee or 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 the attention of its Treasurer at the address of its
principal office specified in the first paragraph of this instrument or
at any other address previously furnished in writing to the Trustee by
the Company.
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Section 106. Notice to Holders of Securities; Waiver.
---------------------------------------
Except as otherwise expressly provided in or pursuant to this Indenture,
where this Indenture provides for notice to Holders of Securities of any event,
(1) such notice shall be sufficiently given to Holders of
Registered Securities if in writing and mailed, first-class postage
prepaid, to each Holder of a Registered Security affected by such event,
at his address as it appears in the Security Register, not later than
the latest date, and not earlier than the earliest date, prescribed for
the giving of such notice; and
(2) such notice shall be sufficiently given to Holders of Bearer
Securities, if any, if published in an Authorized Newspaper in The City
of New York and, if such Securities are then listed on any stock
exchange outside the United States, in an Authorized Newspaper in such
city as the Company shall advise the Trustee that such stock exchange so
requires, on a Business Day at least once, such publication to be not
earlier than the earliest date and not later than the latest date
prescribed for the giving of such notice; provided that any additional
notice to Holders of Securities of any event may be provided at any time
upon the request of the Company and shall provided in the manner set
forth above.
In any case where notice to Holders of Registered Securities is given by
mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given or provided. In
the 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 by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.
In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither 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 mailed to
Holders of Registered Securities as provided above.
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.
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Section 107. Language of Notices.
-------------------
Any request, demand, authorization, direction, notice, consent, election
or waiver required or permitted under this Indenture shall be in the English
language, except that, if the Company so elects, any published notice may be in
an official language of the country of publication.
Section 108. Conflict with Trust Indenture Act.
---------------------------------
If any provision hereof limits, qualifies or conflicts with any duties
under any required provision of the Trust Indenture Act imposed hereon by
Section 318(c) thereof, such required provision shall control.
Section 109. Effect of Headings and Table of Contents.
----------------------------------------
The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.
Section 110. Successors and Assigns.
----------------------
All covenants and agreements in this Indenture by the Company shall bind
its successors and assigns, whether so expressed or not.
Section 111. Separability Clause.
-------------------
In case any provision in this Indenture, any Security or any Coupon
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.
Section 112. Benefits of Indenture.
---------------------
Nothing in this Indenture, any Security or any Coupon shall give to any
Person, other than the parties hereto, any Security Registrar, any Paying Agent
or Conversion Agent and their successors hereunder and the Holders of Securities
or Coupons, any benefit or any legal or equitable right, remedy or claim under
this Indenture.
Section 113. Governing Law.
-------------
This Indenture, the Securities and any Coupons shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts
applicable to agreements made or instruments entered into and, in each case,
performed in said state, except that the rights, protections, obligations,
indemnities and immunities of the Trustee under this Indenture shall be governed
by the laws of the State of New York, without regard to the principles of
conflicts of laws of either state.
20
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Section 114. Legal Holidays.
--------------
Unless otherwise specified in or pursuant to this Indenture or any
Securities, in any case where any Interest Payment Date, Conversion Date,
Redemption Date, Repayment Date, Stated Maturity or Maturity of any Security
shall not be a Business Day at any Place of Payment or any Place of Conversion,
as the case may be, then (notwithstanding any other provision of this Indenture,
any Security or Coupon other than a provision in any Security or Coupon that
specifically states that such provision shall apply in lieu of this Section)
payment of interest or principal (and premium or Additional Amounts, if any) or
delivery for conversion of such Security need not be made at such Place of
Payment or Place of Conversion on such date, but such payment may be made on the
next succeeding Business Day at such Place of Payment or Place of Conversion
with the same force and effect as if made on the Interest Payment Date,
Conversion Date, Redemption Date, Repayment Date or at the Stated Maturity or
Maturity or by such last day for conversion, and no interest shall accrue on the
amount payable on such date or at such time for the period from and after such
Interest Payment Date, Redemption Date, Repayment Date, Conversion Date, Stated
Maturity or Maturity or last day for conversion, as the case may be, to the next
succeeding Business Day.
Section 115. Taxes.
-----
The Company will pay all stamp taxes and other similar duties, if any,
that may be imposed by the United States or the United Kingdom, or any state or
political subdivision thereof or taxing authority therein, with respect to the
execution or delivery of this Indenture, or the issuance of the Securities or
Coupons, or the exchange from time to time of the temporary or permanent
Securities in global form for Registered Securities or Bearer Securities, or
with respect to the issue or delivery of shares of Common Stock on conversion of
Securities; provided, however, that the Company shall not be required to pay any
-------- -------
tax or duty which may be payable in respect of the registration of transfer or
exchange of Securities and any transfer involved in the issue or delivery of
shares of Common Stock in a name other than that of the Holder of the Security
or Securities to be converted in accordance with the provisions of Article
Twelve, and no such issue or delivery shall be made unless and until the person
requesting such issue has paid to the Company the amount of any such tax or duty
or has established to the satisfaction of the Company that such tax or duty has
been paid; and provided further, that the Company shall not be required to pay
any tax or duty that may be payable in respect of any accrued interest paid in
connection with the conversion of the Securities.
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ARTICLE TWO
SECURITIES FORMS
Section 201. Forms Generally.
---------------
Each Registered Security, Bearer Security, Coupon and temporary or
permanent global Security issued pursuant to this Indenture shall be in the form
established by or pursuant to a Company Board Resolution or in one or more
indentures supplemental hereto, shall have such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by or
pursuant to this Indenture or any indenture supplemental hereto, 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 Security or Coupon as evidenced by their execution of
such Security or Coupon. If the form of Registered Security, Bearer Security,
Coupon or temporary or permanent global Security is established by action taken
pursuant to a Board Resolution of the Company, a copy of an appropriate record
of such action shall be certified by the Secretary or an Assistant Secretary of
the Company, and delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 303 for the authentication and delivery of
such Registered Security, Bearer Security, Coupon, temporary or permanent global
Security.
Definitive Securities and definitive Coupons shall be printed, lithographed
or engraved on steel engraved borders or may be produced in any other manner,
all as determined by the officers of the Company executing such Securities or
Coupons, as evidenced by their execution of such Securities or Coupons.
Unless otherwise specified pursuant to Section 301 and except for temporary
global Bearer Securities (as contemplated by Section 304 hereof), Bearer
Securities shall have Coupons attached.
Section 202. [INTENTIONALLY OMITTED].
-----------------------
22
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Section 203. Form of Trustee's Certificate of Authentication.
-----------------------------------------------
Subject to Section 612, the Trustee's certificate of authentication shall
be in substantially the form attached to this Indenture as Exhibit A.
---------
Section 204. Securities in Global Form.
-------------------------
Unless otherwise provided in a Company Order, the Securities initially
shall be issued in global form. Securities issued in temporary or permanent
global form may provide that it or any number of such Securities shall represent
the aggregate principal amount of all Outstanding Securities of such series (or
such lesser amount as is permitted by the terms thereof) from time to time
endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be increased or reduced to
reflect exchanges. Any endorsement of any global Security to reflect the amount,
or any increase or decrease in the amount, or changes in the rights of Holders,
of Outstanding Securities represented thereby shall be made in such manner and
by such Person or Persons as shall be specified therein or in the Company Order
to be delivered pursuant to Section 303 or 304 with respect thereto. Subject to
the provisions of Section 303 and, if applicable, Section 304, the Trustee shall
deliver and redeliver any Security in permanent global form in the manner and
upon instructions given by the Person or Persons specified therein or in the
applicable Company Order. If a Company Order pursuant to Section 303 or 304 has
been, or simultaneously is, delivered, any instructions by the Company with
respect to a Security in global form shall be in writing but need not be
accompanied by or contained in a Company Officers' Certificate and need not be
accompanied by an Opinion of Counsel.
Notwithstanding the provisions of Section 307, unless otherwise specified
in or pursuant to this Indenture or any Securities, payment of principal of, any
premium and (except for temporary global Bearer Securities (as contemplated by
Section 304 hereof)) interest on, and any Additional Amounts in respect of, any
temporary or permanent global Security shall be made to the Person or Persons
specified therein.
Notwithstanding the provisions of Section 308 and except as provided in the
preceding paragraph, the Company, the Trustee and any agent of the Company and
the Trustee shall treat as the Holder of such principal amount of Outstanding
Securities represented by a global Security (i) in the case of a global Security
in registered form, the Holder of such global Security in registered form, or
(ii) in the case of a global Security in bearer form, the Person or Persons
specified pursuant to Section 301.
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Section 205. Form of Conversion Notice.
-------------------------
At the time of conversion of a Security in accordance with Article Twelve,
the Holder of such Security shall deliver to the Trustee, the Conversion Agent
and the Company a notice of conversion in substantially the form attached to
this Indenture as Exhibit B.
---------
ARTICLE THREE
THE SECURITIES
Section 301. Amount Unlimited; Issuable in Series.
------------------------------------
The aggregate principal amount of Securities which may be authenticated and
delivered and outstanding under this Indenture is unlimited. The Securities may
be issued in one or more series.
With respect to any Securities to be authenticated and delivered hereunder,
there shall be established in or pursuant to one or more Company Board
Resolutions, or pursuant to authority granted by one or more Company Board
Resolutions and, subject to Section 303, set forth or determined in the manner
provided in a Company Officers' Certificate, or established in one or more
indentures supplemental hereto prior to the issuance of any Securities of a
series any or all of the following; provided that if any of the following are
-------- ----
already provided for in this Indenture, then such provisions shall be applicable
to each series established hereunder unless otherwise provided pursuant to the
Company and Guarantor Board Resolutions establishing such series and set forth
in the applicable Company and Guarantor Officers' Certificate or unless
otherwise provided in any Indenture or Indentures supplemental hereto pertaining
to such series of Securities:
(1) the title or designation of such Securities and the series in
which such Securities shall be included;
(2) any limit upon the aggregate principal amount of the Securities
of such title or designation or the Securities of such series which may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration or transfer of, or in
exchange for, or in lieu of, other Securities of such series pursuant to
Section 304, 305, 306, 905 or 1107, upon repayment in part of any Security
of such series pursuant to Article Fifteen, or upon surrender in part of
any Security for conversion or exchange into other securities pursuant to
its terms, or pursuant to the terms of such Securities);
(3) if such Securities are to be issuable as Registered Securities,
as Bearer Securities or alternatively as Bearer Securities and Registered
Securities, and whether the
24
<PAGE>
Bearer Securities are to be issuable with Coupons, without Coupons or both,
and any restrictions applicable to the offer, sale or delivery of the
Bearer Securities and the terms, if any, upon which Bearer Securities may
be exchanged for Registered Securities and vice versa;
(4) if any of such Securities are to be issuable in global form,
when any of such Securities are to be issuable in global form and (i)
whether such Securities are to be issued in temporary or permanent global
form or both, (ii) whether beneficial owners of interests in any such
global Security may exchange such interests for Securities of the same
series and of like tenor and of any authorized form and denomination, and
the circumstances under which any such exchanges may occur, if other than
in the manner specified in Section 305, (iii) the name of the Depository or
the U.S. Depository, as the case may be, with respect to any global
Security, (iv) the name of the Common Depository, if applicable, and (v)
the Exchange Date, if applicable;
(5) if any of such Securities are to be issuable as Bearer
Securities or in global form, the date as of which any such Bearer Security
or global Security shall be dated (if other than the date of original
issuance of the first of such Securities to be issued);
(6) if any of such Securities are to be issuable as Bearer
Securities, whether interest in respect of any portion of a temporary
Bearer Security in global form payable in respect of an Interest Payment
Date therefor prior to the Exchange Date, shall be paid to any clearing
organization with respect to the portion of such temporary Bearer Security
held for its account and, in such event, the terms and conditions
(including any certification requirements) upon which any such interest
payment received by a clearing organization will be credited to the Persons
entitled to interest payable on such Interest Payment Date, if other than
as provided in Section 304;
(7) the date or dates, or the method or methods, if any, by which
such date or dates shall be determined, on which the principal of such
Securities is payable;
(8) the rate or rates at which such Securities shall bear interest,
if any, or the method or methods, if any, by which such rate or rates are
to be determined, the date or dates, if any, from which such interest shall
accrue or the method or methods, if any, by which such date or dates are to
be determined, the Interest Payment Dates, if any, on which such interest
shall be payable and the Regular Record Date, if any, for the interest
payable on Registered Securities on any Interest Payment Date, whether and
under what circumstances Additional Amounts on such Securities or any of
them shall be payable, the notice, if any, to Holders regarding the
determination of interest on a floating rate Security and the manner of
giving such notice, and the basis upon which interest shall be calculated
if other than that of a 360-day year of twelve 30-day months;
(9) if in addition to or other than the Borough of Manhattan, The
City of New York, (or, in the case of Bearer Securities, except as
otherwise provided herein, London, England), the place or places where the
principal of, any premium and interest on or any Additional Amounts with
respect to such Securities shall be payable any of such
25
<PAGE>
Securities may be surrendered for registration of transfer or exchange, any
of such Registered Securities may be surrendered for conversion, any of
such Bearer Securities may be surrendered for conversion in the
circumstances described herein and notices or demands to or upon the
Company in respect of such Securities and this Indenture may be served, the
extent to which, or the manner in which, any interest payment or Additional
Amounts on a global Security on an Interest Payment Date will be paid and
the manner in which any principal of or premium, if any, on any global
Security will be paid;
(10) whether any of such Securities are to be redeemable at the
option of the Company and, if so, the date or dates on which, the period or
periods within which, the price or prices at which and the other terms and
conditions upon which such Securities may be redeemed, in whole or in part,
at the option of the Company and, if other than by a Company Board
Resolution, the manner in which any election by the Company to redeem the
Securities shall be evidenced;
(11) if the Company is obligated to redeem or purchase any of such
Securities pursuant to any sinking fund or analogous provision or at the
option of any Holder thereof and, if so, the date or dates on which, the
period or periods within which, the price or prices at which and the other
terms and conditions upon which such Securities shall be redeemed or
purchased, in whole or in part, pursuant to such obligation, and any
provisions for the remarketing of such Securities so redeemed or purchased;
(12) the denominations in which any of such Securities that are
Registered Securities shall be issuable if other than denominations of
$1,000 and any integral multiple thereof, and the denominations in which
any of such Securities that are Bearer Securities shall be issuable if
other than the denominations of $1,000 and $10,000;
(13) if other than the principal amount thereof, the portion of the
principal amount of any of such Securities that shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 502
or the method by which such portion is to be determined;
(14) if the amount of payments of principal of, any premium or
interest on or any Additional Amounts with respect to such Securities may
be determined with reference to an index, indices, formula or other method
or methods (which index, indices, formula or method or methods may be
based, without limitation, on one or more currencies, commodities, equity
indices or other indices), and, if so, the terms and conditions upon which
and the manner in which such amounts shall be determined and paid or
payable;
(15) any deletions from, modifications of or additions to the Events
of Default or covenants of the Company with respect to any of such
Securities, whether or not such Events of Default or covenants are
consistent with the Events of Default or covenants set forth herein;
26
<PAGE>
(16) if either or both of Section 402(2) relating to defeasance or
Section 402(3) relating to covenant defeasance shall be applicable to the
Securities of such series, or any covenants in addition to those specified
in Section 402(3) relating to the Securities of such series which shall be
subject to covenant defeasance, and any deletions from, or modifications or
additions to, the provisions of Article Four in respect of the Securities
of such series;
(17) the terms, if any, on which such Securities may be converted
into or exchanged for other securities of the Company, and whether on such
conversion the Company may substitute cash or securities of the Company in
lieu of issuing Common Stock upon such conversion and the terms of such
substitution;
(18) if any of such Securities are to be issuable in global form and
are to be issuable in definitive form (whether upon original issue or upon
exchange of a temporary Security) only upon receipt of certain certificates
or other documents or satisfaction of other conditions, then the form and
terms of such certificates, documents or conditions;
(19) if there is more than one Trustee, the identity of the Trustee
and, if not the Trustee, the identity of each Security Registrar, and the
identity of each Paying Agent, Conversion Agent or Authenticating Agent
with respect to such Securities;
(20) the subordination provisions with respect to the Securities if
other than as set forth in Article Seventeen; and
(21) any other terms of such Securities and any deletions from or
modifications or additions to this Indenture in respect of such Securities
(which terms shall not be inconsistent with the provisions of this
Indenture, except as permitted by Section 901).
All Securities of any one series and all Coupons, if any, appertaining to
Bearer Securities of such series shall be substantially identical except as to
denomination and Maturity and except as may otherwise be provided by the Company
in or pursuant to the Company Board Resolution and set forth in the Company
Officers' Certificate or in any indenture or indentures supplemental hereto
pertaining to such series of Securities. The terms of the Securities of any
series (as set forth in the applicable Board Resolution or Company Order) may
provide, without limitation, that the Securities shall be authenticated and
delivered by the Trustee on original issue from time to time upon telephonic or
written order of persons designated in the Company Officers' Certificate or
supplemental indenture (telephonic instructions to be promptly confirmed in
writing by such person) and that such persons are authorized to determine,
consistent with such Company Officers' Certificate or any applicable
supplemental indenture, such terms and conditions of the Securities of such
series as are specified in such Company Officers' Certificate or supplemental
indenture. All Securities of any one series need not be issued at the same time
and, unless otherwise so provided by the Company, a series may be reopened for
issuances of additional Securities of such series.
27
<PAGE>
If any of the terms of the Securities of any series shall be established
and approved by action taken by or pursuant Board Resolutions of the Company,
copies of appropriate records of such actions 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' Certificates setting forth the
terms of such series.
Section 302. Currency; Denominations.
-----------------------
The principal of, any premium and interest on and any Additional Amounts
with respect to the Securities shall be payable in Dollars. Unless otherwise
provided in or pursuant to this Indenture, Registered Securities shall be
issuable in registered form without Coupons in denominations of $1,000 and any
integral multiple thereof, and Bearer Securities shall be issuable in
denominations of $1,000 and $10,000 (or any other authorized denominations) with
Coupons attached.
Section 303. Execution, Authentication, Delivery and Dating.
----------------------------------------------
Securities shall be executed on behalf of the Company by any Officer under
its corporate seal reproduced thereon and attested by its Corporate Secretary
(provided that the Corporate Secretary shall not attest his or her own signature
as an Officer) or one of its Assistant Corporate Secretaries. Coupons shall be
executed on behalf of the Company by any Officer. The signature of any of these
officers on the Securities or any Coupons appertaining thereto may be manual or
facsimile.
Securities, Coupons appertaining thereto 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 Coupons or did not hold such offices at the date of such
Securities or Coupons.
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities, together with any Coupons
appertaining thereto, executed by the Company, to the Trustee for authentication
and, provided that the Company Board Resolution and Company Officers'
Certificate (if the terms of such Securities are provided therein pursuant to
authority granted by Company Board Resolution) or supplemental indenture or
indentures with respect to such Securities referred to in Section 301 and a
Company Order for the authentication and delivery of such Securities have been
delivered to the Trustee, the Trustee in accordance with the Company Order and
subject to the provisions hereof and of such Securities shall authenticate and
deliver such Securities; provided, however, that, in connection with its
-------- -------
original issuance, no Bearer Security shall be mailed or otherwise delivered to
any location in the United States; and provided, further, that a Bearer Security
-------- -------
(other than a temporary global Bearer Security) may be delivered outside the
United States in connection with its original issuance only if the
certifications described in Section 304
28
<PAGE>
are provided in accordance with the provisions of Section 304. If any Security
shall be represented by a permanent global Security, then, for purposes of this
Section and Section 304, the notation of a beneficial owner's interest therein
upon original issuance of such Security or upon exchange of a portion of a
temporary global Security shall be deemed to be delivery in connection with the
original issuance of such beneficial owner's interest in such permanent global
Security. Except as permitted by Section 306, the Trustee for the Securities of
a series shall not authenticate and deliver any Bearer Security unless all
appurtenant Coupons for interest then matured other than matured coupons in
default have been detached and canceled. If all the Securities of any one series
are not to be issued at one time and if a Board Resolution relating to such
Securities (or Officers' Certificate provided pursuant to authority granted by
Board Resolution) shall so permit, such Company Order may set forth procedures
acceptable to the Trustee for the issuance of such Securities, including,
without limitation, procedures with respect to interest rate, Stated Maturity,
date of issuance and date from which interest, if any, shall accrue.
In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities and any
Coupons appertaining thereto, the Trustee shall be entitled to receive, and
(subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be
fully protected in relying upon:
(1) an Opinion of Counsel to the effect that:
(a) the form or forms and terms of such Securities and Coupons, if
any, have been established or approved by or pursuant to a Board Resolution
of the Company in conformity with Sections 201 and 301 of this Indenture;
(b) all conditions precedent to the authentication and delivery of
such Securities and Coupons, if any, appertaining thereto, have been
complied with and that such Securities and Coupons, when completed by
appropriate insertions, executed under the Company's corporate seal and
attested by duly authorized officers of the Company (in the case of the
Securities or Coupons), delivered by duly authorized officers of the
Company to the Trustee for authentication pursuant to this Indenture, and
authenticated and delivered by the Trustee and issued by the Company in the
manner and subject to any conditions specified in such Opinion of Counsel,
will constitute legally valid and binding obligations of the Company,
enforceable in accordance with their terms, subject, in the case of the
Securities to bankruptcy, insolvency, reorganization, moratorium,
arrangement, fraudulent conveyance, fraudulent transfer or other similar
laws of general applicability to the Company and relating to or affecting
creditors' rights and to general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law);
29
<PAGE>
and
(c) this Indenture has been qualified under the Trust Indenture
Act; and
(2) a Company Officers' Certificate stating that, to the best
knowledge of the Persons executing such certificate, no Default or Event of
Default with respect to any of the Securities shall have occurred and be
continuing.
If all of the Securities of any series are not to be issued at one time,
unless requested by the Trustee, it shall not be necessary to deliver an Opinion
of Counsel at the time of issuance of each Security, but such opinion, with such
modifications as counsel shall deem appropriate, shall be delivered at or before
the time of issuance of the first Security of such series. After any such first
delivery, any separate request by the Company that the Trustee authenticate
additional Securities of such series for original issue will be deemed to be a
certification by the Company that all conditions precedent provided for in this
Indenture relating to authentication and delivery of such Securities continue to
have been complied with.
The Trustee shall not be required to authenticate or to cause an
Authenticating Agent to authenticate any Securities if the issue of such
Securities pursuant to this Indenture will affect the Trustee's own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner which is not reasonably acceptable to the Trustee or if the Trustee,
being advised by counsel, determines that such action may not lawfully be taken.
Each Registered Security shall be dated the date of its authentication.
Each Bearer Security and any temporary global Security shall be dated as of the
date specified in or pursuant to this Indenture.
No Security or Coupon appertaining to such Security shall be entitled to
any benefit under this Indenture or be valid or obligatory for any purpose,
unless there appears on such Security a certificate of authentication
substantially in the form provided for in Section 203 or 612 executed by or on
behalf of the Trustee or by the Authenticating Agent by the manual signature of
one of its authorized officers. Such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder.
Section 304. Temporary Securities.
--------------------
(a) Pending the preparation of Definitive Securities, the Company may
execute and deliver to the Trustee and, upon Company Order for authentication
and delivery, the Trustee shall authenticate and deliver, in the manner provided
in Section 303, temporary Securities in lieu thereof 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, in registered form or, if authorized in or
30
<PAGE>
pursuant to this Indenture, in bearer form with one or more Coupons or without
Coupons, with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. Such temporary
Securities may be in global form.
(b) Except in the case of temporary global Bearer Securities, which
shall be exchanged in accordance with the provisions of clause (c) of this
Section 304, if temporary Securities are issued, the Company shall cause
Definitive Securities to be prepared without unreasonable delay. After the
preparation of Definitive Securities of the same series and containing terms and
provisions that are identical to those of any temporary Securities, such
temporary Securities shall be exchangeable for such Definitive Securities upon
surrender of such temporary Securities at an Office or Agency for such
Securities, without charge to any Holder thereof. Upon surrender for
cancellation of any one or more temporary Securities (accompanied by any
unmatured Coupons appertaining thereto), the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of Definitive Securities of authorized denominations of the same series
and containing identical terms and provisions; provided, however, that no
-------- -------
definitive Bearer Security, except as provided in or pursuant to this Indenture,
shall be delivered in exchange for a temporary Registered Security; and
provided, further, that a definitive Bearer Security shall be delivered in
- -------- -------
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in or pursuant to this Indenture. Unless otherwise provided in or
pursuant to this Indenture with respect to a temporary global Bearer Security,
until so exchanged the temporary Securities of any series shall in all respects
be entitled to the same benefits under this Indenture as Definitive Securities
of such series.
(c) All or a portion of the Securities constituting Bearer Securities
may be initially issued as temporary global Bearer Securities without Coupons or
conversion rights. Such temporary global Bearer Securities shall be deposited on
the applicable closing date on behalf of the subscribers for the Securities
represented thereby with the Common Depository, for credit to their respective
accounts (or to such other accounts as they may direct) at Morgan Guaranty Trust
Company OF NEW YORK, Brussels Office, as operator of the EUROCLEAR CLEARANCE
SYSTEM ("EUROCLEAR"), or CEDEL BANK, SOCIETE ANONYME ("CEDEL").
On or before the Exchange Date, the Company shall deliver to the Paying
Agent in London at its principal London office or to its designated agent
outside the United States, definitive Bearer Securities. On or after the
applicable Exchange Date, the temporary global Bearer Securities may be
surrendered by the Common Depository to the Trustee or its agent, as the
Company's agent for such purpose, to be exchanged, in whole or from time to time
in part, for definitive Bearer Securities without charge to Holders, and the
Trustee or the Paying Agent in London or other Paying Agent outside the United
States shall authenticate and deliver (at an office or agency outside the United
States), in exchange for the temporary global Bearer Securities or the portions
thereof to be exchanged, an
31
<PAGE>
equal aggregate principal amount of definitive Bearer Securities, as shall be
specified by the Holders thereof; provided, however, that upon such presentation
-------- -------
by the Common Depository, the temporary global Bearer Securities are accompanied
by a certificate dated the Exchange Date or a subsequent date and signed by
EUROCLEAR as to the portion of the temporary global Bearer Securities held for
its account then to be exchanged and a certificate dated the Exchange Date or a
subsequent date and signed by CEDEL as to the portion of the temporary global
Bearer Securities held for its account then to be exchanged, each substantially
in the form of Exhibit D hereto to the effect that it has received a certificate
or certificates substantially in the form of Exhibit C hereto dated no earlier
than 15 days prior to the Exchange Date and signed by the person appearing in
its records as the owner of the temporary global Bearer Securities or portions
thereof being exchanged. The Company hereby appoints the principal office of the
Paying Agent in London, England, or its designated agent, as its agent outside
the United States where definitive Bearer Securities may be delivered in
exchange for the temporary global Bearer Securities or portions thereof. Each
beneficial owner of any portion of the temporary global Bearer Securities shall
be entitled to take delivery of definitive Bearer Securities only at such
office.
Temporary global Bearer Securities will be exchangeable for Registered
Securities in denominations of $1,000 or an integral multiple thereof at any
time without the certification requirements set forth in the preceding
paragraph; provided that such exchange is permitted by the rules and procedures
-------- ----
then in effect of CEDEL and EUROCLEAR, and provided, further, that if and so
-------- -------
long as Registered Securities of a series are represented solely by a permanent
global Registered Security, the temporary global Bearer Security will only be
exchangeable for an interest in the permanent global Registered Security as set
forth in Section 305 herein.
Notwithstanding any other provision hereof or of the Securities, no Bearer
Security initially represented by the temporary global Bearer Securities will be
mailed to or otherwise delivered in connection with its original issuance to any
location within the United States. The Trustee agrees that it will cause the
Paying Agent in London (if required) to retain each certificate provided by
EUROCLEAR or CEDEL for a period of four calendar years following the year in
which the certificate is received and not to destroy or otherwise dispose of any
such certificate without first offering to deliver it to the Company.
Upon any such exchange of a portion of the temporary global Bearer Security
for either definitive Bearer Securities or Registered Securities (if permitted
by the rules and procedures then in effect of CEDEL and EUROCLEAR), the
temporary global Bearer Security shall be deemed to reflect the reduction of the
principal amount evidenced thereby. Until so exchanged in full, the temporary
global Bearer Security shall in all respects be entitled to the same benefits
under, and subject to the same terms and conditions of, this Indenture as
definitive Bearer Securities authenticated and delivered hereunder, except that
none of EUROCLEAR, CEDEL or the beneficial owners of the temporary global Bearer
Security shall be entitled to receive payment of interest or other payments
thereon or to convert the temporary global Bearer Security, if applicable, or
any portion thereof, as set forth in Article Twelve, except as otherwise
permitted pursuant to this Indenture or the Securities.
32
<PAGE>
Section 305. Registration, Transfer and Exchange.
-----------------------------------
With respect to the Registered Securities of each series, if any, the
Company shall cause to be kept a register (each such register being herein
sometimes referred to as the "Security Register") at an Office or Agency for
-----------------
such series in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of the Registered
Securities of such series and of transfers of the Registered Securities of such
series. Such Office or Agency shall be the "Security Registrar" for that series
------------------
of Securities. Unless otherwise specified in or pursuant to this Indenture or
the Securities, the Trustee shall be the initial Security Registrar for each
series of Securities. The Company shall have the right to remove and replace
from time to time the Security Registrar for any series of Securities; provided
--------
that no such removal or replacement shall be effective until a successor
- ----
Security Registrar with respect to such series of Securities shall have been
appointed by the Company and shall have accepted such appointment. In the event
that the Trustee shall not be or shall cease to be Security Registrar with
respect to a series of Securities, it shall have the right to examine the
Security Register for such series at all reasonable times. There shall be only
one Security Register for each series of Securities.
Upon surrender for registration of transfer of any Registered Security of
any series at any Office or Agency 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 denominated as authorized in or pursuant to this Indenture, of a like
aggregate principal amount bearing a number not contemporaneously outstanding
and containing identical terms and provisions.
At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series containing
identical terms and provisions, in any authorized denominations, and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
any applicable Office or Agency for such series. 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. Registered Securities of any
series may not be exchanged for Bearer Securities.
At the option of the Holder, definitive Bearer Securities of such series
may be exchanged at any time (except as otherwise provided in this Indenture)
for Registered Securities or Bearer Securities of such series containing
identical terms, denominated as authorized in or pursuant to this Indenture and
in the same aggregate principal amount, upon surrender of the Bearer Securities
to be exchanged at any applicable Office or Agency for such series located
outside the United States, with any and all unmatured Coupons and any and all
matured Coupons in default thereto appertaining; provided that if and so long as
-------- ----
Registered Securities of a series are represented solely by a permanent global
Registered Security, such definitive Bearer Securities will only be exchangeable
for an interest in the permanent global Registered Security as set forth in this
Section 305. If the Holder of a Bearer Security is unable
33
<PAGE>
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 and the Trustee in an amount equal
to the face amount of such missing Coupon or Coupons, or the surrender of such
missing Coupon or Coupons may be waived by the Company and the Trustee if there
is furnished to them such security or indemnity as they may require to save each
of them and any Paying Agent harmless. If thereafter the Holder of such Bearer
Security shall surrender to any Paying Agent any such missing Coupon in respect
of which such a payment shall have been made, such Holder shall be entitled to
receive the amount of such payment; provided, however, that, except as otherwise
-------- -------
provided in Section 1002, interest represented by Coupons shall be payable only
upon presentation and surrender of those Coupons at an applicable Office or
Agency for such series located outside the United States. Notwithstanding the
foregoing, in case a Bearer Security of any series is surrendered at any such
Office or Agency for such series in exchange for a Registered Security of such
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 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 of Defaulted Interest, as the case may be (or, if such Coupon is so
surrendered with such Bearer Security, such Coupon shall be returned to the
Person so surrendering the Bearer Security), and interest or Defaulted Interest,
as the case may be, shall not be payable on such Interest Payment Date or
proposed date for payment or Defaulted Interest, as the case may be, in respect
of the Registered Security issued in exchange for such Bearer Security, but
shall be payable only to the Holder of such Coupon when due in accordance with
the provisions of this Indenture.
Whenever any Securities are surrendered for exchange as contemplated by the
immediately preceding two paragraphs, the Company shall execute, and the Trustee
shall authenticate and deliver, the Securities (with all Coupons, in the case of
the issuance of Bearer Securities), which the Holder making the exchange is
entitled to receive.
If the Holder of definitive Bearer Securities or definitive Registered
Securities requests in writing that such Securities be exchanged for an interest
in the applicable permanent global Registered Security, such Bearer Securities
or Registered Securities (as the case may be) will be exchangeable into an equal
aggregate principal amount of beneficial interest in the permanent global
Registered Security; provided that in the case of definitive Bearer Securities,
-------- ----
such Bearer Securities are only exchanged in the manner set forth in this
Section 305 with respect to the exchange of definitive Bearer Securities for
Registered Securities and in the case of Registered Securities, such exchange is
made in accordance with the rules and procedures then in effect of the
Depository. Upon any exchange as provided in the immediately preceding
sentence, the Trustee shall cancel such Bearer Securities or Registered
Securities (as the case may be) and cause, or direct any custodian for the
permanent global Registered Security to cause, in accordance with the standing
instructions and procedures existing between the Depository and any such
custodian, the aggregate principal amount of Securities represented by the
permanent global Registered Security to be increased accordingly. If no
permanent global Registered
34
<PAGE>
Securities are then outstanding, the Company shall issue and the Trustee shall
authenticate a new permanent global Registered Security in the appropriate
principal amount.
Notwithstanding the foregoing, except as otherwise provided in or pursuant
to this Indenture, any permanent global Registered Security shall be
exchangeable for Definitive Securities only if (i) the Depository is at any time
unwilling, unable or ineligible to continue as Depository or ceases to be a
clearing agency registered under the Exchange Act (if so required by applicable
law or regulation) and a successor depository is not appointed by the Company
within 90 days of the date the Company is so informed in writing, (ii) the
Company executes and delivers to the Trustee a Company Order to the effect that
such permanent global Registered Security shall be so exchangeable or (iii) an
Event of Default has occurred and is continuing with respect to the Securities.
If the beneficial owners of interests in a permanent global Registered Security
are entitled to exchange such interests for Definitive Securities as the result
of an event described in clause (i), (ii) or (iii) of the preceding sentence,
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 such form and denominations as are required by
or pursuant to this Indenture, and of the same series, containing identical
terms and in aggregate principal amount equal to the principal amount of such
permanent global Registered Security, executed by the Company. On or after the
earliest date on which such interests may be so exchanged, such permanent global
Registered Security shall be surrendered from time to time by the U.S.
Depository or such other Depository as shall be specified in the Company Order
with respect thereto, and in accordance with instructions given to the Trustee
and the U.S. Depository or such other Depository, as the case may be (which
instructions shall be in writing but need not be contained in or accompanied by
an Officers' Certificate or be accompanied by an Opinion of Counsel), 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 in part, for
Definitive Securities as described above without charge. The Trustee shall
authenticate and make available for delivery, in exchange for each portion of
such surrendered permanent global Registered Security, a like aggregate
principal amount of Definitive Securities of the same series of authorized
denominations and of like tenor as the portion of such permanent global
Registered Security to be exchanged, which shall be in the form of Registered
Securities; 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 the same series to be redeemed and ending at the close of business on the day
of such selection. Promptly following any such exchange in part, a permanent
global Registered Security for the portions not exchanged shall be returned by
the Trustee to such Depository or the U.S. Depository, as the case may be, or
such other Depository or U.S. Depository referred to above in accordance with
the instructions of the Company referred to above. If a Registered Security is
issued in exchange for any portion of a permanent global Registered Security
after the close of business at the applicable Office or Agency for such Security
where such exchange occurs on or after (i) any Regular Record Date for such
Security and before the opening of business at such Office or Agency on the next
Interest Payment Date, or (ii) any Special Record Date for such Security and
before the opening of business at such Office or Agency on the related proposed
date for payment of Defaulted Interest, as the case may be, interest shall not
be payable on such Interest Payment Date or proposed date for payment of
Defaulted Interest, as the case may be, in respect
35
<PAGE>
of such Registered Security, but shall be payable on such Interest Payment Date
or proposed date for payment of Defaulted Interest, as the case may be, only to
the Person to whom interest in respect of such portion of such permanent global
Registered Security shall be 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 entitling the Holders thereof 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 or redemption shall (if so required by the Company or
the Security Registrar for such Security) be duly endorsed, or be accompanied by
a written instrument of transfer in form satisfactory to the Company and the
Security Registrar for such Security 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, or redemption of Securities, but the Company may require payment of a
sum sufficient to cover any stamp or similar tax or other governmental charge
and any other expenses (including fees and expenses of the Trustee) that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 1107 or 1202, or upon
repayment in part of any Registered Security pursuant to Article Fifteen, in
each case not involving any transfer.
Except as otherwise provided in or pursuant to this Indenture, the Company
shall not be required (i) to issue, register the transfer of or exchange any
Securities during a period beginning at the opening of business 15 days before
the day of the selection for redemption of Securities of like tenor and the same
series under Section 1103 and ending at the close of business on the day of such
selection, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part, except in the case of
any Security to be redeemed in part, the portion thereof not to be redeemed, or
(iii) to exchange any Bearer Security so selected for redemption except, to the
extent provided with respect to such Bearer Security, that such Bearer Security
may be exchanged for a Registered Security of like tenor and the same series,
provided that such Registered Security shall be immediately surrendered for
redemption with written instruction for payment consistent with the provisions
of this Indenture or (iv) to issue, register the transfer of or exchange any
Security which, in accordance with its terms, has been surrendered for repayment
at the option of the Holder, except the portion, if any, of such Security not to
be so repaid.
Section 306. Mutilated, Destroyed, Lost and Stolen Securities.
------------------------------------------------
If any mutilated Security or a Security with a mutilated Coupon
appertaining to it is surrendered to the Trustee, subject to the provisions of
this Section 306, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series containing
identical terms and of like principal amount
36
<PAGE>
and bearing a number not contemporaneously outstanding, with Coupons
appertaining thereto corresponding to the Coupons, if any, appertaining to the
surrendered Security; provided, however, that any Bearer Security or any Coupon
-------- -------
shall be delivered only outside the United States and, if the Securities of such
series are listed on the London Stock Exchange or the Luxembourg Stock Exchange
or any other stock exchange located outside the United States and such stock
exchange shall so require, such delivery shall occur at the Office or Agency
located in London, Luxembourg or any other required city located outside the
United States, as the case may be, so long as Securities of such series are
listed on such exchange; and provided, further, that all Bearer Securities shall
-------- -------
be delivered and received in person.
If there be delivered to the Company and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or Coupon, and
(ii) such security or indemnity as may be required by them to save each of them
and any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security or Coupon has been acquired by a bona
fide purchaser, the Company shall execute and, upon the Company's request the
Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Security or in exchange for the Security to
which a destroyed, lost or stolen Coupon appertains with all appurtenant Coupons
not destroyed, lost or stolen, a new Security of the same series containing
identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons corresponding to the Coupons, if
any, appertaining to such destroyed, lost or stolen Security or to the Security
to which such destroyed, lost or stolen Coupon appertains; provided, however,
-------- -------
that any Bearer Security or any Coupon shall be delivered only outside the
United States and, if the Securities of such series are listed on the London
Stock Exchange or the Luxembourg Stock Exchange or any other stock exchange
located outside the United States and such stock exchange shall so require, such
delivery shall occur at the Office or Agency located in London, Luxembourg or
any other required city located outside the United States, as the case may be,
so long as Securities of such series are listed on such exchange; and provided,
--------
further, that all Bearer Securities shall be delivered and received in person.
- -------
Notwithstanding the foregoing provisions of this Section 306, in case any
mutilated, destroyed, lost or stolen Security or Coupon has become or will
become due and payable within seven (7) days, the Company in its discretion, but
subject to any conversion rights, may, instead of issuing a new Security, pay
such Security or Coupon; provided, however, that payment of principal of, any
-------- -------
premium or interest on or any Additional Amounts with respect to any Bearer
Securities shall, except as otherwise provided in Section 1002, be payable only
at the applicable Office or Agency for such Securities located outside the
United States and, unless otherwise provided in or pursuant to this Indenture,
any interest on Bearer Securities and any Additional Amounts with respect to
such interest shall be payable only upon presentation and surrender of the
Coupons appertaining thereto.
Upon the issuance of any new Security under this Section, the Company may
require the payment of a sum sufficient to cover any stamp or similar tax or
other governmental charge that
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may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.
Every new Security with any Coupons appertaining thereto issued pursuant to
this Section 306 in lieu of any mutilated, destroyed, lost or stolen Security,
or in exchange for a Security to which a mutilated, destroyed, lost or stolen
Coupon appertains shall constitute a separate obligation of the Company, whether
or not the mutilated, destroyed, lost or stolen Security and Coupons
appertaining thereto or the mutilated, destroyed, lost or stolen Coupon shall be
at any time enforceable by anyone, and shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Securities of
such series and any Coupons duly issued hereunder.
The provisions of this Section, as amended or supplemented pursuant to this
Indenture with respect to particular Securities or generally, shall be exclusive
and shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities or Coupons.
Section 307. Payment of Interest and Certain Additional Amounts; Rights to
-------------------------------------------------------------
Interest and Certain Additional Amounts Preserved.
-------------------------------------------------
(a) Unless otherwise provided in or pursuant to this Indenture, any
interest on and any Additional Amounts with respect to any Registered Security
which shall be payable, and are punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name such Security
(or one or more Predecessor Securities) is registered as of the close of
business on the Regular Record Date for such interest.
Unless otherwise provided as contemplated by Section 301 with respect to
the Securities of any series, payment of interest may be made (i) by check
mailed or delivered, in the case of Registered Securities, to the address of the
Person entitled thereto as such address shall appear in the Security Register
or, in the case of Bearer Securities, upon presentation and surrender of the
appropriate Coupon appertaining thereto, or (ii) at the option of the Company
with the consent of any Paying Agent, (1) in the case of a Bearer Security, upon
presentation and surrender of the applicable Coupon at an applicable Office or
Agency for such series outside the United States, except as otherwise provided
in Section 1002, by transfer to an account maintained by the payee with a bank
located outside the United States, or (2) in the case of a Registered Security,
by transfer to an account maintained by the payee with a bank located inside the
United States.
Unless otherwise provided as contemplated by Section 301, every permanent
global Security will provide that interest, if any, payable on any Interest
Payment Date will be paid to DTC, EUROCLEAR and/or CEDEL, as the case may be,
with respect to that portion of such permanent global Security held for its
account by Cede & Co. or the Common Depository, as the case may be, for the
purpose of permitting such party to credit the interest received by it in
respect of such permanent global Security to the accounts of the beneficial
owners thereof.
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Unless otherwise provided in or pursuant to this Indenture, in case a
Bearer Security is surrendered in exchange for a Registered Security after the
close of business at the applicable Office or Agency for such Security on any
Regular Record Date therefor and before the opening of business at such Office
or Agency on the next succeeding Interest Payment Date therefor, such Bearer
Security shall be surrendered without the Coupon relating to such Interest
Payment Date and interest shall not be payable on such Interest Payment Date in
respect of the Registered Security issued in exchange for such Bearer Security,
but shall be payable only to the Holder of such Coupon when due in accordance
with the provisions of this Indenture.
Unless otherwise provided in or pursuant to this Indenture, any interest on
and any Additional Amounts with respect to any Bearer Security shall, except as
otherwise provided in Section 1002, be payable only at an Office or Agency for
such Securities located outside the United States.
Interest on any temporary global Bearer Security shall be payable only
after the issuance of a Definitive Security for which it is exchangeable as
provided in Section 304, except as otherwise provided pursuant to this Indenture
or the Securities.
(b) Unless otherwise provided in or pursuant to this Indenture, any
interest on and any Additional Amounts with respect to any Registered Security
which shall be payable, but shall not be punctually paid or duly provided for,
on any Interest Payment Date for such Registered Security (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder thereof
------------------
on the relevant Regular Record Date by virtue of having been such Holder; and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to
the Person in whose name such Registered Security (or a Predecessor Security
thereof) shall be 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 such Registered Security 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 on or prior to the date of the
proposed payment, such money when so deposited to be held in trust for the
benefit of the Person entitled to such Defaulted Interest as in this clause
provided. Thereupon, the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10 days
after 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 the Holder of such Registered Security (or a
Predecessor Security thereof) at his address as it appears in the Security
Register not less than 10 days prior to such Special Record Date. The Trustee
may, in its discretion, in the name and at the expense of the Company cause a
similar notice to be published at least once in an Authorized Newspaper of
general circulation in the Borough of Manhattan,
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The City of New York, but such publication shall not be a condition precedent to
the establishment of such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been mailed
as aforesaid, such Defaulted Interest shall be paid to the Person in whose name
such Registered Security (or a Predecessor Security thereof) shall be registered
at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2). In case a Bearer Security is
surrendered at the applicable Office or Agency for such Security in exchange for
a Registered Security after the close of business at such Office or Agency on
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
Defaulted Interest and Defaulted Interest shall not be payable on such proposed
date of payment in respect of the Registered Security issued in exchange for
such Bearer Security, but shall be payable only to the Holder of such Coupon
when due in accordance with the provisions of this Indenture.
(2) The Company may make payment of any Defaulted Interest in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which such Security 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.
(c) In the case of any Registered Security which is converted into
Common Stock pursuant to Article Twelve after any Regular Record Date and on or
prior to the next succeeding Interest Payment Date (other than any Registered
Security whose Maturity is prior to such Interest Payment Date), interest whose
Stated Maturity is on such Interest Payment Date shall be payable on such
Interest Payment Date notwithstanding such conversion, and such interest
(whether or not punctually paid or duly provided for) shall be paid to the
Person in whose name such Registered Security (or one or more Predecessor
Securities) is registered at the close of business on such Regular Record Date.
Except as otherwise expressly provided in the immediately preceding sentence, in
the case of any Security which is converted pursuant to Article Twelve, accrued
interest from the immediately preceding Interest Payment Date until the
Conversion Date shall be payable to the converting Holder within five Business
Days after the Conversion Date. Upon presentment for conversion of any
Securities pursuant to Article Twelve, the Paying Agent shall promptly notify
the Company of the amount of any accrued interest due and owing thereon and the
Company shall pay to the Paying Agent an amount sufficient to pay the accrued
interest due on such Securities and Additional Amounts, if any, thereon, and the
Paying Agent shall apply the amounts so paid to it to the payment of such
accrued interest and Additional Amounts, if any, thereon in accordance with the
terms of the Securities.
(d) Subject to the foregoing provisions of this Section 307 and Section
305, each Security delivered under this Indenture upon registration of transfer
of or in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.
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Section 308. Persons Deemed Owners.
---------------------
Title to any Bearer Security or Coupon shall pass by delivery. The Company,
the Trustee, the Paying Agent and any other agent of the Company, the Trustee or
the Paying Agent may treat the bearer of any Bearer Security or the temporary
global Bearer Security and the bearer of any Coupon as the absolute owner of
such Security or Coupon, as the case may be, 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, the Paying Agent nor any other agent of the Company, the Trustee or the
Paying Agent shall be affected by notice to the contrary.
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
shall treat the Person in whose name such Registered Security is registered in
the Security Register as the absolute owner of such Registered Security for the
purpose of receiving payment of principal of, any premium and (subject to
Sections 305 and 307) interest on and any Additional Amounts with respect to
such Registered Security and for all other purposes whatsoever, whether or not
any payment with respect to such Registered Security shall be overdue, and
neither the Company, the Trustee or any agent of the Company or the Trustee
shall be affected by notice to the contrary.
No holder of any beneficial interest in any global Security held on its
behalf by a Depository shall have any rights under this Indenture with respect
to such global Security, and such Depository may be treated by the Company, the
Trustee, and any agent of the Company or the Trustee as the owner of such global
Security for all purposes whatsoever. None of the Company, the Trustee, any
Paying Agent, any Conversion Agent or the Security Registrar will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a global Security
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.
Section 309. Cancellation.
------------
All Securities and Coupons surrendered for payment, redemption,
registration of transfer, exchange or conversion or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee, and any such Securities and Coupons, as well as
Securities and Coupons surrendered directly to the Trustee for any such purpose,
shall be canceled promptly by the Trustee. The Company may at any time deliver
to the Trustee for cancellation any Securities or Coupons previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities or Coupons so delivered shall be canceled
promptly by the Trustee. No Securities or Coupons shall be authenticated in lieu
of or in exchange for any Securities or Coupons canceled as provided in this
Section 309, except as expressly permitted by or pursuant to this Indenture. All
canceled Securities and Coupons held by the Trustee shall be destroyed by the
Trustee, unless by a Company Order the Company directs their return to it.
41
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Section 310. Computation of Interest.
-----------------------
Except as otherwise provided in or pursuant to this Indenture or in the
Securities of any series, interest on the Securities shall be computed on the
basis of a 360-day year of twelve 30-day months.
Section 311. CUSIP Numbers.
-------------
The Company in issuing Registered Securities may use "CUSIP" numbers (if
then generally in use) in addition to serial numbers, and in issuing Bearer
Securities may use "ISIN" numbers (if then generally in use); if so, the Trustee
shall use such "CUSIP" and "ISIN" numbers in addition to serial numbers in
notices of redemption and repayment as a convenience to Holders; provided that
-------- ----
any such notice may state that no representation is made as to the correctness
of such CUSIP and ISIN numbers either as printed on the Securities or as
contained in any notice of a redemption or repayment and that reliance may be
placed only on the serial or other identification numbers printed on the
Securities, and any such redemption or repayment shall not be affected by any
defect in or omission of such CUSIP or ISIN numbers.
Section 312. Notification of Withholding.
---------------------------
The Company shall notify the Trustee in writing of the necessity, if any,
to withhold any amounts from payments to Holders (and the amount of any such
withholding).
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ARTICLE FOUR
SATISFACTION AND DISCHARGE OF INDENTURE
Section 401. Satisfaction and Discharge.
--------------------------
Upon the direction of the Company by a Company Order, this Indenture
shall cease to be of further effect with respect to any series of Securities
specified in such Company Order and any Coupons appertaining thereto (except as
to any surviving rights of conversion, or registration of transfer or exchange
or replacement of Securities herein expressly provided for and any right to
receive Additional Amounts and the Company's obligations to the Trustee pursuant
to Section 606), and the Trustee, on receipt of a Company Order, at the expense
of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture as to such series, when
(1) either
(A) all Securities of such series theretofore authenticated
and delivered and all Coupons appertaining thereto (other than
(i) Coupons appertaining to Bearer Securities of such series
surrendered in exchange for Registered Securities of such series and
maturing after such exchange whose surrender is not required or has
been waived as provided in Section 305, (ii) Securities and Coupons of
such series which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 306, (iii) Coupons
appertaining to Securities of such series called for redemption and
maturing after the relevant Redemption Date whose surrender has been
waived as provided in Section 1106, and (iv) Securities and Coupons of
such series for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for cancellation; or
(B) all Securities of such series and any Coupons appertaining
thereto not theretofore delivered to the Trustee or the Paying Agent
for cancellation (other than Securities or Coupons referred to in
clauses (i) through (iii) of clause (A) above)
(i) have become due and payable, or
(ii) will have become due and payable at their Stated Maturity
within one year and such Securities are not convertible into or
exchangeable for other securities, or
(iii) if redeemable at the option of the Company, such
Securities are not convertible into or exchangeable for other
securities and 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,
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and the Company, in the case of (i), (ii), or (iii) above, has
irrevocably deposited or caused to be deposited with the Trustee as
trust funds (immediately available to the Holders in the case of clause
(i) above) in trust for such purpose, money in the Currency in which
such Securities are payable in an amount sufficient to pay and
discharge the entire indebtedness on such Securities and any Coupons
appertaining thereto not theretofore delivered to the Trustee for
cancellation, including the principal of, any premium and interest on,
and, to the extent that the Securities of such series provide for the
payment of Additional Amounts thereon and the amount of any such
Additional Amounts is at the time of deposit reasonably determinable by
the Company (in the exercise by the Company of its sole and absolute
discretion), any Additional Amounts with respect to such Securities and
any Coupons appertaining thereto, to the date of such deposit (in the
case of Securities which have become due and payable) or to the
Maturity thereof, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company with respect to the Outstanding Securities of
such series and any Coupons appertaining thereto; 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 as to such series have been complied with.
In the event there are Securities of two or more series hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of such series as to which it is Trustee and if the other conditions
thereto are met.
Notwithstanding the satisfaction and discharge of this Indenture with
respect to any series of Securities, the obligations of the Company to the
Trustee under Section 606, the obligations of the Company to any Authenticating
Agent under Section 612, and, if money shall have been deposited with the
Trustee pursuant to clause (1)(B) of this Section, the obligations of the
Company and the Trustee with respect to the Securities of such series under
Sections 305, 306, 403, 1002 and 1003, and with respect to the payment of
Additional Amounts, if any, with respect to such Securities as contemplated by
Section 1004 (but only to the extent that the Additional Amounts payable with
respect to such Securities exceed the amount deposited in respect of such
Additional Amounts pursuant to Section 401(B)(iii)), shall survive.
Section 402. Defeasance and Covenant Defeasance.
----------------------------------
(1) Unless, pursuant to Section 301, provision is made for either or
both of (i) defeasance of the Securities of or within a series under clause (2)
of this Section 402 or (ii) covenant defeasance of the Securities of or within a
series under clause (3) of this Section 402, such provisions, together with the
other provisions of this Section 402, shall not be applicable to such Securities
and any Coupons appertaining thereto.
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(2) Upon the Company's exercise of the above option applicable to
this Section 402(2) with respect to any Securities of or within a series, the
Company shall be deemed to have been discharged from its obligations with
respect to such Outstanding Securities and any Coupons appertaining thereto on
the date the conditions set forth in clause (4) of this Section 402 are
satisfied (hereinafter, "defeasance"). For this purpose, such defeasance means
----------
that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by such Outstanding Securities and any Coupons
appertaining thereto, which shall thereafter be deemed to be "Outstanding" only
for the purposes of clause (5) of this Section 402 and the other Sections of
this Indenture referred to in clauses (i) and (ii) below, and to have satisfied
all of its other obligations under such Securities and any Coupons appertaining
thereto and this Indenture insofar as such Securities and any Coupons
appertaining thereto are concerned (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of such Outstanding Securities and any
Coupons appertaining thereto to receive, solely from the trust fund described in
clause (4) of this Section 402 and as more fully set forth in such Section,
payments in respect of the principal of (and premium, if any) and interest, if
any, on, and Additional Amounts, if any, with respect to, such Securities and
any Coupons appertaining thereto when such payments are due, (ii) the
obligations of the Company and the Trustee with respect to such Securities under
Sections 304, 305, 306, 403, 1002 and 1003, with respect to the payment of
Additional Amounts, if any, on such Securities as contemplated by Section 1004
(but only to the extent that the Additional Amounts payable with respect to such
Securities exceed the amount deposited in respect of such Additional Amounts
pursuant to Section 402(4)(a) below), (iii) the rights, powers, trusts, duties
and immunities of the Trustee hereunder, (iv) any rights of conversion or
exchange of such Securities and (v) this Section 402. The Company may exercise
its option under this Section 402(2) notwithstanding the prior exercise of its
option under clause (3) of this Section 402 with respect to such Securities and
any Coupons appertaining thereto.
(3) Upon the Company's exercise of the above option applicable to
this Section 402(3) with respect to any Securities of or within a series, the
Company shall be released from its obligations under Sections 1005 and
Section 102 and, to the extent specified pursuant to Section 301, any other
covenant applicable to such Securities, with respect to such Outstanding
Securities and any Coupons appertaining thereto on and after the date the
conditions set forth in clause (4) of this Section 402 are satisfied
(hereinafter, "covenant defeasance"), and such Securities and any Coupons
-------------------
appertaining thereto shall thereafter be deemed to be not "Outstanding" for the
purposes of any direction, waiver, consent or declaration or Act of Holders (and
the consequences of any thereof) in connection with any such covenant, but shall
continue to be deemed "Outstanding" for all other purposes hereunder. For this
purpose, such covenant defeasance means that, with respect to such Outstanding
Securities and any Coupons appertaining thereto, the Company may omit to comply
with, and shall have no liability in respect of, any term, condition or
limitation set forth in any such Section or such other covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
Section or such other covenant or by reason
45
<PAGE>
of reference in any such Section or such other covenant to any other provision
herein or in any other document and such omission to comply shall not constitute
a default or an Event of Default under Section 501(4) or otherwise, as the case
may be, but, except as specified above, the remainder of this Indenture and such
Securities and Coupons appertaining thereto, shall be unaffected thereby.
(4) The following shall be the conditions to application of clause
(2) or (3) of this Section 402 to any Outstanding Securities of or within a
series and any Coupons appertaining thereto:
(a) The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee satisfying the requirements of
Section 607 who shall agree to comply with the provisions of this Section 402
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities and any Coupons appertaining
thereto, (i) an amount in Dollars, or (ii) Government Obligations applicable to
such Securities and Coupons appertaining thereto (determined on the basis of the
Currency in which such Securities and Coupons appertaining thereto are then
specified as payable at Stated Maturity) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment of principal
of (and premium, if any) and interest, if any, on such Securities and any
Coupons appertaining thereto, money in an amount, or (iii) a combination
thereof, in any case, in an amount, sufficient, without consideration of any
reinvestment of such principal and interest, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, (y) the principal of (and premium, if any) and interest, if any, on,
and, to the extent that such Securities provide for the payment of Additional
Amounts thereon and the amount of any such Additional Amounts is at the time of
deposit reasonably determinable by the Company, any Additional Amounts with
respect to, such Outstanding Securities and any Coupons appertaining thereto on
the Stated Maturity of such principal or installment of principal or interest
and (z) any mandatory sinking fund payments or analogous payments applicable to
such Outstanding Securities and any Coupons appertaining thereto on the day on
which such payments are due and payable in accordance with the terms of this
Indenture and of such Securities and any Coupons appertaining thereto.
(b) Such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a default under, this Indenture or any
other material agreement or instrument to which the Company is a party or by
which it is bound.
(c) No Default or Event of Default with respect to such Securities
and any Coupons appertaining thereto shall have occurred and be continuing on
the date of such deposit and, with respect to defeasance only, at any time
during the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period).
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(d) In the case of an election under clause (2) of this Section 402,
the Company shall have delivered to the Trustee an Opinion of Counsel stating
that (i) the Company has received from the Internal Revenue Service a letter
ruling, or there has been published by the Internal Revenue Service a revenue
ruling, or (ii) since the date of execution of this Indenture, there has been a
change in the applicable Federal income tax law, in either case to the effect
that, and based thereon such opinion shall confirm that, the Holders of such
Outstanding Securities and any Coupons appertaining thereto will not recognize
income, gain or loss for Federal income tax purposes as a result of such
defeasance and will be subject to Federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such defeasance
had not occurred.
(e) In the case of an election under clause (3) of this Section 402,
the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders of such Outstanding Securities and any Coupons
appertaining thereto will not recognize income, gain or loss for Federal income
tax purposes as a result of such covenant defeasance and will be subject to
Federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such covenant defeasance had not occurred.
(f) The Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance or covenant defeasance under clause (2) or (3) of
this Section 402 (as the case may be) have been complied with.
(g) The Company shall have delivered to the Trustee an Officers'
Certificate to the effect that neither such Securities nor any other Securities
of the same series, if then listed on any securities exchange, will be delisted
as a result of such deposit.
(h) Such defeasance or covenant defeasance shall not cause the
Trustee to have a conflicting interest within the meaning of the Trust Indenture
Act (assuming all Securities are in default within the meaning of such Act).
(i) Such defeasance or covenant defeasance shall not result in the
trust arising from such deposit constituting an investment company within the
meaning of the Investment Company Act unless such trust shall be registered
under such Act or exempt from registration thereunder.
(j) Notwithstanding any other provisions of this Section 402(4), such
defeasance or covenant defeasance shall be effected in compliance with any
additional or substitute terms, conditions or limitations which may be imposed
on the Company in connection therewith pursuant to Section 301.
(5) Subject to the provisions of the last paragraph of Section 1003,
all money and Government Obligations (or other property as may be provided
pursuant to Section 301) (including the proceeds thereof) deposited with the
Trustee (or other qualifying trustee--collectively for purposes of this
Section 402(5) and Section 403, the "Trustee") pursuant to clause (4) of
-------
Section 402 in respect of any Outstanding Securities of any series and any
Coupons
47
<PAGE>
appertaining thereto shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and any Coupons appertaining
thereto and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities and any Coupons
appertaining thereto of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest and Additional Amounts, if any, but
such money need not be segregated from other funds except to the extent required
by law.
The Company shall pay and indemnify the Trustee and its officers,
directors, employees and agents against any tax, fee or other charge, imposed on
or assessed against the Government Obligations deposited pursuant to this
Section 402 or the principal or interest received in respect thereof other than
any such tax, fee or other charge which by law is for the account of the Holders
of such Outstanding Securities and any Coupons appertaining thereto.
Anything in this Section 402 to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or Government Obligations (or other property and any proceeds
therefrom) held by it as provided in clause (4) of this Section 402 which, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect a defeasance or covenant defeasance, as applicable, in accordance with
this Section 402.
Section 403. Application of Trust Money.
--------------------------
Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations deposited with the Trustee pursuant to Section
401 or 402 shall be held in trust and applied by it, in accordance with the
provisions of the Securities, the Coupons appertaining thereto, and this
Indenture, as applicable, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal, premium, interest
and Additional Amounts for whose payment such money has or Government
Obligations have been deposited with or received by the Trustee; but such money
and Government Obligations need not be segregated from other funds except to the
extent required by law.
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ARTICLE FIVE
REMEDIES
Section 501. Events of Default.
-----------------
"Event of Default," wherever used herein with respect to Securities of
----------------
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body) unless
such event is specifically deleted or modified in or pursuant to the
supplemental indenture, a Company Board Resolution or Company Officers'
Certificate establishing the terms of such series pursuant to this Indenture:
(1) default in the payment of any interest on, or any Additional
Amounts payable in respect of any interest on, any Security of such series when
such interest or such Additional Amounts, as the case may be, become due and
payable, and continuance of such default for a period of 10 days, whether or not
such payment is prohibited by the subordination provisions of Article Seventeen;
or
(2) default in the payment of the principal of or premium, if any,
on, or any Additional Amounts payable in respect of the principal of or premium,
if any, on any Security of such series when due upon Maturity (whether upon
redemption or otherwise), whether or not such payment is prohibited by the
subordination provisions of Article Seventeen; or
(3) default in the payment of any sinking fund payment, or analogous
payment, when and as due by the terms of a Security of such series, whether or
not such payment is prohibited by the subordination provisions of Article
Seventeen; or
(4) default in the performance, or breach, of any covenant or
warranty of the Company in this Indenture or any Security of such series (other
than a covenant or warranty for which the consequences of breach or
nonperformance are addressed elsewhere in this Section 501 or in the Securities
or in a covenant or warranty which has expressly been included in this Indenture
or a Security of that series, whether or not by means of a supplemental
Indenture, solely for the benefit of Securities of a series other than such
series), and continuance of such default or breach for a period of 60 days after
there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities of such series a written notice
specifying such default or breach and requiring it to be remedied and stating
that such notice is a "Notice of Default" hereunder; or
49
<PAGE>
(5) the Company pursuant to or under or within the meaning of any
Bankruptcy Law:
(a) commences a voluntary case or proceeding;
(b) consents to the entry of an order for relief against it in
an involuntary case or proceeding or the commencement of any case
against it;
(c) consents to the appointment of a Custodian of it or for any
substantial part of its property;
(d) makes a general assignment for the benefit of its
creditors;
(e) files a petition in bankruptcy or answer or consent seeking
reorganization or relief; or
(f) consents to the filing of such petition or the appointment
of or taking possession by a Custodian; or
(6) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:
(a) is for relief against the Company in an involuntary case or
proceeding, or adjudicates the Company insolvent or bankrupt;
(b) appoints a Custodian of the Company or for any substantial
part of their respective property; or
(c) orders the winding up or liquidation of the Company;
and the order or decree remains unstayed and in effect for 20
consecutive days; or
(7) a default by the Company (including a default with respect to
Securities of any series other than that series) under any indenture, including
this Indenture, or instrument evidencing, or under which the Company has at the
date of this Indenture or shall hereafter have, any indebtedness for money
borrowed with a principal amount then outstanding in excess of $25,000,000 or
such other amount as may be specified in the Company's Board Resolutions or
Officers' Certificate establishing the series (or the equivalent in any other
currency) shall happen and be continuing and such indebtedness shall have been
accelerated so that the same shall be or become due and payable prior to the
date on which the same would otherwise have become due and payable, or a default
in payment of such indebtedness at its stated maturity shall have occurred, and
such indebtedness shall not have been discharged or such acceleration shall not
be rescinded or annulled within 20 days after written notice thereof shall have
been given, by registered or certified mail, to the Company by the Trustee, or
to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of that series; provided,
--------
50
<PAGE>
however, that if such default under such indenture or instrument shall be
- -------
remedied or cured by the Company or waived by the holders of such indebtedness,
then 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 any of the Holders; provided, further, however,
-------- -------
that subject to the provisions of Section 601, the Trustee will not be
considered to have knowledge of any default by the Company under this Section
501 unless the Trustee shall have received written or actual notice of such
default; or
(8) any other Event of Default provided in or pursuant to this
Indenture with respect to Securities of such series."
"Bankruptcy Law" means Title 11, United States Code, or any similar
--------------
Federal or state law for the relief of debtors. "Custodian" means any receiver,
---------
trustee, assignee, liquidator, sequestrator, custodian or similar official under
any Bankruptcy Law.
Section 502. 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 throughout the period permitted under
this Indenture or any supplemental indenture to cure such default, then the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of such series may declare the principal (or, if any
Securities are Original Issue Discount Securities or Indexed Securities, such
portion of the principal as may be specified in the terms thereof) of all the
Securities of such series, or such lesser amount as may be provided for in the
Securities of such series, to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holders), and upon
any such declaration such principal or such lesser amount shall become
immediately due and payable.
Notwithstanding any other provision of Section 502, if an Event of
Default specified in Section 501(5) or 501(6) occurs, all principal of, any
premium and interest on, and any Additional Amounts on the Securities then
Outstanding shall be immediately due and payable without any declaration or
other act on the part of the Trustee or the Holders.
At any time after Securities of any series have been accelerated and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter in this Article Five provided, the Holders of not
less than a majority in principal amount of the Outstanding Securities of such
series, by written notice to the Company and the Trustee, may rescind and annul
such declaration and its consequences if:
(1) the Company has paid or deposited with the Trustee a sum of money
sufficient to pay
(a) all overdue installments of any interest on any Securities of
such series and any Coupons appertaining thereto and any Additional Amounts with
respect thereto,
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(b) the principal of and any premium on any Securities of such series
which have become due otherwise than by such declaration of acceleration and any
Additional Amounts with respect thereto and, to the extent the payment of such
interest is lawful, interest thereon at the rate or rates borne by or provided
for in such Securities,
(c) to the extent that payment of such interest is lawful, interest
upon overdue installments of any interest and any Additional Amounts with
respect thereto at the rate or rates borne by or provided for in such
Securities, and
(d) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel and all other amounts due the Trustee under Section 606;
and
(2) all Events of Default with respect to Securities of such series,
other than the non-payment of the principal of, any premium and interest on, and
any Additional Amounts with respect to Securities of such series which shall
have become due solely by such declaration of acceleration, shall have been
cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any
right consequent thereon.
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee.
---------------------------------------------------------------
The Company covenants that if
(1) default is made in the payment of any installment of interest on
or any Additional Amounts with respect to any Security or any Coupon
appertaining thereto when such interest or Additional Amounts shall have become
due and payable and such default continues for a period of 10 days, or
(2) default is made in the payment of the principal of or any premium
on any Security at its Maturity,
the Company shall, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities and any Coupons appertaining thereto,
the whole amount of money then due and payable with respect to such Securities
and any Coupons appertaining thereto, with interest upon the overdue principal,
any premium and, to the extent that payment of such interest shall be legally
enforceable, upon any overdue installments of interest and Additional Amounts at
the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount of money 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 and all other
amounts due to the Trustee under Section 606.
If the Company fails to pay the money it is required to pay the Trustee
pursuant to the preceding paragraph, forthwith upon the demand of the Trustee,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the money
52
<PAGE>
so due and unpaid, and may prosecute such proceeding to judgment or final
decree, and may enforce the same against the Company or any other obligor upon
such Securities and any Coupons appertaining thereto and collect the monies
adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon such Securities and any
Coupons appertaining thereto, wherever situated.
If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series
and any Coupons appertaining thereto 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 such Securities or in aid of the exercise of any power granted
herein or therein, or to enforce any other proper remedy.
Section 504. Trustee May File Proofs of Claim.
--------------------------------
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of any overdue principal, premium, interest or
Additional Amounts) 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, including:
(1) to file and prove a claim for the whole amount, or such lesser
amount as may be provided for in the Securities of such series, of the principal
and any premium, interest and Additional Amounts owing and unpaid in respect of
the Securities and any Coupons appertaining thereto and to file such other
papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents or counsel) and of the
Holders of Securities or any Coupons allowed in such judicial proceeding, and
(2) to collect and receive any monies 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 of Securities or any Coupons 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 of Securities or any Coupons, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel and any other amounts due the
Trustee under Section 606.
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Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a Security
or any Coupon any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or Coupons or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder of a
Security or any Coupon in any such proceeding; provided, however, that the
-------- -------
Trustee may, on behalf of the Holders of Securities or any Coupons, vote for the
election of a trustee in bankruptcy or similar official and be a member of a
creditors or other similar committee.
Section 505. Trustee May Enforce Claims Without Possession of Securities or
--------------------------------------------------------------
Coupons.
- -------
All rights of action and claims under this Indenture or any of the
Securities or Coupons may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or Coupons or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery or judgment, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, shall be for the ratable benefit of each and every Holder of a
Security or Coupon in respect of which such judgment has been recovered.
Section 506. Application of Money Collected.
------------------------------
Subject to Article Thirteen, any money collected by the Trustee
pursuant to this Article Five shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal, or any premium, interest or Additional Amounts,
upon presentation of the Securities or Coupons, or both, as the case may be, 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 and any
predecessor Trustee under Section 606;
SECOND: To the payment of the amounts then due and unpaid upon the
Securities and any Coupons for principal and any premium, interest and
Additional Amounts 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 aggregate amounts due and payable on such Securities and
Coupons for principal and any premium, interest and Additional Amounts,
respectively;
THIRD: The balance, if any, to the Person or Persons entitled thereto.
Section 507. Limitations on Suits.
--------------------
No Holder of any Security of any series or any Coupons appertaining
thereto shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, the Securities of any series or any Coupons
appertaining thereto, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless:
54
<PAGE>
(1) such Holder has previously given written notice to the Trustee of
a continuing Event of Default with respect to the Securities of such series;
(2) the Holders of not less than 25% in principal amount of the
Outstanding Securities of such series shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request;
(4) the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority in
principal amount of the Outstanding Securities of such series;
it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture or any Security to affect, disturb or prejudice the rights of
any other such Holders or Holders of Securities of any other series, or to
obtain or to seek to obtain priority or preference over any other Holders or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal and ratable benefit of all such Holders.
Section 508. Unconditional Right of Holders to Receive Principal and Any
-----------------------------------------------------------
Premium, Interest and Additional Amounts.
- ----------------------------------------
Notwithstanding any other provision in this Indenture, the Holder of
any Security or Coupon shall have the right, which is absolute and
unconditional, to receive payment of the principal of, any premium and (subject
to Section 307) interest on, and any Additional Amounts with respect to such
Security or such Coupon, as the case may be, on the respective Stated Maturity
or Maturities therefor specified in such Security or Coupon (or, in the case of
redemption, on the Redemption Date or, in the case of repayment at the option of
such Holder if provided in or pursuant to this Indenture, on the Repayment Date)
and to convert such Security in accordance with Article Twelve (if conversion is
permitted by the terms of such Security), and to institute suit for the
enforcement of any such payment and right to convert, and such rights shall not
be impaired without the consent of such Holder.
Section 509. Restoration of Rights and Remedies.
----------------------------------
If the Trustee or any Holder of a Security or a Coupon 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 the Company, the Trustee and each such Holder shall, subject to any
determination in such proceeding, be restored severally and respectively to
their
55
<PAGE>
former positions hereunder, and thereafter all rights and remedies of the
Trustee and each such Holder shall continue as though no such proceeding had
been instituted.
Section 510. Rights and Remedies Cumulative.
------------------------------
Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities or Coupons in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to each and every Holder of a Security or a Coupon is intended
to be exclusive of any other right or remedy, and every right and remedy, to the
extent permitted by law, shall 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, to the extent permitted by law, prevent the
concurrent assertion or employment of any other appropriate right or remedy.
Section 511. Delay or Omission not Waiver.
----------------------------
No delay or omission of the Trustee or of any Holder of any Security or
Coupon to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. Every right and remedy given by this Article
Five or by law to the Trustee or to any Holder of a Security or a Coupon may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or (subject to the limitations contained in this Indenture) by such
Holder, as the case may be.
Section 512. Control by Holders of Securities.
--------------------------------
The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the
Securities of such series and any Coupons appertaining thereto, provided that
-------- ----
(1) such direction shall not be in conflict with any rule of law or
with this Indenture or with the Securities of such series,
(2) the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction, and
(3) such Holders have offered the Trustee an indemnity reasonably
satisfactory to it against any loss, cost, liability or expense that might been
incurred by the Trustee in following such direction.
Section 513. Waiver of Past Defaults.
-----------------------
The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series on behalf of the Holders of all the
Securities of such series and any Coupons
56
<PAGE>
appertaining thereto may waive any past default hereunder with respect to such
series and its consequences, except a default
(1) in the payment of the principal of, any premium or interest on,
or any Additional Amounts with respect to, any Security of such series or any
Coupons appertaining thereto, or
(2) in respect of a covenant or provision hereof which under Article
Nine cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected.
Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
Section 514. Waiver of Usury, Stay or Extension Laws.
---------------------------------------
The Company covenants that (to the extent that it may lawfully do so)
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company expressly waives (to the
extent that it may lawfully do so) all benefit or advantage of any such law and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.
Section 515. Undertaking for Costs.
---------------------
All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of any
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions
of this Section 515 shall not apply to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in principal amount of Outstanding Securities of any series, or to
any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest, if any, on or Additional Amounts,
if any, with respect to any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date, and, in the case of repayment, on or after the date
for repayment) or for the enforcement of the right to convert any Security in
accordance with Article Twelve.
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ARTICLE SIX
THE TRUSTEE
Section 601. Certain Rights of Trustee; Certain Duties and Responsibilities.
--------------------------------------------------------------
Subject to Sections 315(a) through 315(d) of the Trust Indenture Act:
(1) the Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, coupon, other evidence of indebtedness or other paper or
document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(2) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or a Company Order (in each case,
other than delivery of any Security, together with any Coupons appertaining
thereto, to the Trustee for authentication and delivery pursuant to Section 303
which shall be sufficiently evidenced as provided therein) and any resolution of
the Board of Directors of the Company shall be sufficiently evidenced by a Board
Resolution of the Company;
(3) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
shall be herein specifically prescribed) may, in the absence of bad faith on its
part, rely upon an Officers' Certificate;
(4) the Trustee may consult with counsel of its selection and the
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;
(5) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by or pursuant to this Indenture at the request or
direction of any of the Holders of Securities of any series or any Coupons
appertaining thereto 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;
(6) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine,
during business hours
58
<PAGE>
and upon reasonable notice, the books, records and premises of the Company,
personally or by agent or attorney;
(7) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder;
(8) 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
(9) 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 this paragraph (9) shall not
be construed to limit the effect of paragraph (8) of this Section;
(a) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be proved
that the Trustee was negligent in ascertaining the pertinent facts; and
(b) 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
Securities 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.
The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act. Notwithstanding the foregoing, 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 indemnity reasonably
satisfactory to it against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this
Section 601.
Section 602. Notice of Defaults.
------------------
Within 90 days after the occurrence of any Default (actually known to a
Responsible Officer of the Trustee) hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of
such series entitled to receive reports pursuant to Section 703(3), notice of
such Default hereunder known to the Trustee, unless such Default shall have been
cured or waived; provided, however, that, except in the case of a default in the
-------- -------
payment of the principal of (or premium, if any), or interest, if any, on, or
Additional Amounts or any sinking fund or purchase fund installment with respect
to, any Security of such series, the Trustee shall be protected in withholding
such notice if and so long as the board of directors, the
59
<PAGE>
executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determine that the withholding of such
notice is in the best interest of the Holders of Securities and Coupons of such
series, and provided, further, that in the case of any Default of the character
-------- -------
specified in Section 501(4) with respect to Securities of such series, no such
notice to Holders shall be given until at least 60 days after the occurrence
thereof.
Section 603. Not Responsible for Recitals or Issuance of Securities.
------------------------------------------------------
The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, and in any Coupons shall be taken as
the statements of the Company, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or Coupons appertaining thereto or the Common Stock issuable upon the
conversion of Securities in accordance with the provisions of Article Twelve,
except that the Trustee represents that it is duly authorized to execute and
deliver this Indenture, authenticate the Securities and perform its obligations
hereunder and that the statements made by it in a Statement of Eligibility and
Qualification on Form T-1 supplied to the Company are true and accurate, subject
to the qualifications set forth therein. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of the Securities or the proceeds thereof.
Section 604. May Hold Securities; Act as Trustee Under Other Indenture.
---------------------------------------------------------
The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other Person that may be an agent of the Trustee or the
Company, in its individual or any other capacity, may become the owner or
pledgee of Securities or Coupons and, subject to Sections 310(b) and 311 of the
Trust Indenture Act, may otherwise deal with the Company with the same rights it
would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.
The Trustee may become and act as trustee under other indentures under
which other securities, or certificates of interest or participation in other
securities, of the Company are outstanding in the same manner as if it were not
Trustee hereunder.
Section 605. Money Held in Trust.
-------------------
Except as provided in Section 403 and Section 1003, money held by the
Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law and shall be held uninvested. The Trustee shall be under
no liability for interest on any money received by it hereunder except as
otherwise agreed in writing with the Company.
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Section 606. Compensation and Reimbursement.
------------------------------
The Company agrees:
(1) to pay to the Trustee from time to time reasonable compensation
as shall be agreed in writing between the Company on the one hand and the
Trustee on the other for all services rendered by the Trustee hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);
(2) 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 the Trustee's negligence or bad faith; and
(3) to indemnify the Trustee and its officers, directors, employees
and agents for, and to hold them harmless against, any loss, liability or
expense incurred without negligence or bad faith on their 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 themselves against any
claim or liability in connection with the exercise or performance of any of
their powers or duties hereunder, except to the extent that any such loss,
liability or expense was due to the Trustee's negligence or bad faith. The
indemnification provided for herein shall survive the termination of this
Indenture or the earlier resignation or removal of the Trustee.
As security for the performance of the obligations of the Company under
this Section 606, the Trustee shall have a lien prior to the Securities of any
series upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of, and premium or
interest on or any Additional Amounts with respect to Securities or any Coupons
appertaining thereto.
Any compensation or expense incurred by the Trustee after a default
specified by Section 501 is intended to constitute an expense of administration
under any then applicable bankruptcy or insolvency law. "Trustee" for purposes
-------
of this Section 606 shall include any predecessor Trustee but the negligence or
bad faith of any Trustee shall not affect the rights of any other Trustee under
this Section 606.
Section 607. Corporate Trustee Required; Eligibility.
---------------------------------------
There shall at all times be a Trustee hereunder that is a Corporation,
organized and doing business under the laws of the United States, eligible under
Section 310(a)(1) of the Trust Indenture Act to act as trustee under an
indenture qualified under the Trust Indenture Act and that has a combined
capital and surplus (computed in accordance with Section 310(a)(2) of the Trust
Indenture Act) of at least $50,000,000 subject to supervision or examination by
Federal or state authority. 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.
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Section 608. Resignation and Removal; Appointment of Successor.
-------------------------------------------------
(1) 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 pursuant to Section 609.
(2) 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 609 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.
(3) 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.
(4) If at any time:
(a) the Trustee shall fail to comply with the obligations imposed
upon it under Section 310(b) of the Trust Indenture Act with respect to
Securities of any series after written request therefor by the Company
or any Holder of a Security of such series who has been a bona fide
Holder of a Security of such series for at least six months, or
(b) the Trustee shall cease to be eligible under Section 607 and
shall fail to resign after written request therefor by the Company or
any such Holder, or
(c) the Trustee shall become incapable of acting or shall be
adjudged to be bankrupt or insolvent or a receiver of the Trustee or of
its property shall be appointed or any public officer shall take charge
or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company, by or pursuant to a Board
Resolution, may remove the Trustee with respect to all Securities or the
Securities of such series, or (ii) subject to Section 315(e) of the Trust
Indenture Act, any Holder of a Security 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 removal of the Trustee with respect to all Securities of such series and the
appointment of a successor Trustee or Trustees.
(5) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by or pursuant to
a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being
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understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall
be only one Trustee with respect to the Securities of any particular series) and
shall comply with the applicable requirements of Section 609. 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
609, 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 of Securities and accepted
appointment in the manner required by Section 609, any Holder of a Security 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.
(6) 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 mailing written notice of event by first-class mail, postage prepaid, to the
Holders of Registered Securities, if any, of such series as their names and
addresses appear in the Security Register and, if Securities of such series are
issued as Bearer Securities, by publishing notice of such event once in an
Authorized Newspaper in each Place of Payment located outside the United States.
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.
(7) The retiring Trustee shall not be liable for any of the acts or
omissions of any successor Trustee appointed hereunder.
(8) No appointment of a successor Trustee shall be effective until
all fees, charges and expenses of the retiring Trustee not subject to any good
faith dispute, have been paid.
Section 609. Acceptance of Appointment by Successor.
--------------------------------------
(1) Upon the appointment hereunder of any successor Trustee with
respect to all Securities, such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and 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 hereunder of the retiring Trustee; but, on the request
of the Company or such successor Trustee, such retiring Trustee, upon payment of
its charges, shall execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and,
subject to Section 1003, shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder, subject nevertheless to its claim, if any, provided for in
Section 606.
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(2) Upon the appointment hereunder of any successor Trustee with
respect to the Securities of one or more series, the Company, the retiring
Trustee and such successor Trustee shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment
and which (a) shall contain such provisions as shall be necessary or desirable
to transfer and confirm to, and to vest in, such 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, (b) 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 (c) 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, that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee and that no Trustee shall be responsible
for any notice given to, or received by, or any act or failure to act on the
part of any other Trustee hereunder, 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, such retiring Trustee
shall have no further responsibility for the exercise of rights and powers or
for the performance of the duties and obligations vested in the Trustee under
this Indenture with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates other than as hereinafter
expressly set forth, 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 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 such successor Trustee, such retiring Trustee, upon
payment of its charges with respect to the Securities of that or those series to
which the appointment of such successor relates and subject to Section 1003
shall duly assign, transfer and deliver to such successor Trustee, to the extent
contemplated by such supplemental indenture, the property and money held by
retiring Trustee hereunder with respect to the securities of that or those
series to which the appointment of such successor Trustee relates, subject to
its claim, if any, provided for in Section 606.
(3) Upon request of any Person appointed hereunder as a 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 (1) or (2) of this Section, as the
case may be.
(4) No Person shall accept its appointment hereunder as a successor
Trustee unless at the time of such acceptance such successor Person shall be
qualified and eligible under this Article Six.
Section 610. 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
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to which the Trustee shall be a party, or any Corporation succeeding to all or
all of the corporate trust business of the Trustee, shall be the successor of
the Trustee hereunder, provided such Corporation shall be otherwise qualified
and eligible under this Article Six, 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.
Section 611. Preferential Collection of Claims Against Company.
-------------------------------------------------
If and when the Trustee shall be or become a creditor of the Company or
any other obligor upon the Securities, the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company or any such other obligor.
Section 612. Appointment of Authenticating Agent.
-----------------------------------
The Trustee may appoint one or more Authenticating Agents acceptable to
the Company with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of that or
those series issued upon original issue, exchange, registration of transfer,
partial redemption or partial repayment, or pursuant to Section 306, 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,
except as provided in or pursuant to this Indenture, shall at all times be a
corporation that would be permitted by the Trust Indenture Act to act as trustee
under an indenture qualified under the Trust Indenture Act, is authorized under
applicable law and by its charter to act as an Authenticating Agent and has a
combined capital and surplus (computed in accordance with Section 310(a)(2) of
the Trust Indenture Act) of at least $50,000,000. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it 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 all or substantially all of
the corporate agency or corporate trust business of an Authenticating Agent,
shall be the successor of such Authenticating Agent hereunder, provided such
corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.
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An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and 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 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 (i) mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of
Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (ii) if Securities of the series are issued as Bearer
Securities, publish notice of such appointment at least once in an Authorized
Newspaper in the place where such successor Authenticating Agent has its
principal office if such office is located outside the United States. 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 each Authenticating Agent from time to time
reasonable compensation for its services under this Section. If the Trustee
makes such payments, it shall be entitled to be reimbursed for such payments,
subject to the provisions of Section 606.
The provisions of Sections 308, 603 and 604 shall be applicable to each
Authenticating Agent.
If an Authenticating Agent is appointed with respect to one or more
series of Securities pursuant to this Section, the Securities of such series may
have endorsed thereon, in addition to or in lieu of the Trustee's certificate of
authentication, an alternate certificate of authentication in substantially the
following form:
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
Dated: [NAME OF TRUSTEE],
--------------------- As Trustee
By: [NAME OF AUTHENTICATION AGENT]
As Authenticating Agent
By:
-----------------------
Authorized Officer
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If all of the Securities of any 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 where the
Company wishes to have Securities of such series authenticated upon original
issuance, the Trustee, if so requested in writing (which writing need not be
accompanied by or contained in an Officers' Certificate by the Company), shall
appoint in accordance with this Section 612 an Authenticating Agent having an
office in a Place of Payment designated by the Company with respect to such
series of Securities.
Section 613. Conflicting Interests.
---------------------
If the Trustee has or shall acquire any conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series or a trustee under prior indentures between
the Company and the Trustee that have not been satisfied and discharged and that
may be excluded by the proviso to Section 310(b)(1) of the Trust Indenture Act.
Section 614. Protection of Agents.
--------------------
Any Authenticating Agent, Conversion Agent, Paying Agent or Securities
Registrar hereunder shall be entitled to all of the rights, immunities,
indemnities and protections afforded to the Trustee hereunder.
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ARTICLE SEVEN
HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and Addresses of Holders.
---------------------------------------------------------
In accordance with Section 312(a) of the Trust Indenture Act, with
respect to each series of the Securities, the Company shall furnish or cause to
be furnished to the Trustee:
(1) semi-annually, not later than 15 days after the Regular Record Date
or upon such other dates as are set forth in or pursuant to the Board Resolution
or indenture supplemental hereto authorizing such series, a list for each series
of Securities, in such form as the Trustee may reasonably require, of the names
and addresses of Holders of Registered Securities as of the applicable date, and
(2) at such other times as the Trustee may request in writing, within 30
days after the receipt by the Company of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished, excluding from any such list names and addresses received by the
Trustee in its capacity as Security Registrar.
Section 702. Preservation of Information; Communications to Holders.
------------------------------------------------------
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 701 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 701 upon receipt of a new list so furnished.
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.
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 any of them, shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the
Holders of Securities in accordance with Section 312(c) 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 312(b) of the Trust Indenture Act.
Section 703. Reports by Trustee.
------------------
(1) Within 60 days after August 30 of each year commencing with
the first August 30 following the first issuance of Securities pursuant
to Section 301, if required by Section 313(a) of the Trust Indenture
Act, the Trustee shall
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transmit, pursuant to Section 313(c) of the Trust Indenture Act, a brief
report dated as of such August 30 with respect to any of the events
specified in said Section 313(a) which may have occurred since the later
of the immediately preceding August 30 and the date of this Indenture.
(2) The Trustee shall transmit to Holders the reports concerning
the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times and in the manner
specified therein.
(3) Reports pursuant to this Section shall be transmitted in the
manner and to the Persons required by Sections 313(c) and 313(d) of the
Trust Indenture Act.
Section 704. Reports by Company.
------------------
The Company, pursuant to Section 314(a) of the Trust Indenture Act,
shall:
(1) file with the Trustee, within 15 days after the Company is
required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies
of such portions of any of the foregoing as the Commission may from time
to time by rules and regulations prescribe) which the Company may be
required to file with the Commission pursuant to Section 13 or Section
15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of said Sections,
then it shall file with the Trustee and the Commission, in accordance
with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of
the Exchange Act in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in
such rules and regulations;
(2) file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission,
such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and
regulations; and
(3) transmit within 30 days after the filing thereof with the
Trustee, in the manner and to the extent provided in Section 313(c) of
the Trust Indenture Act, such summaries of any information, documents
and reports required to be filed by the Company pursuant to paragraphs
(1) and (2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.
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ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
Section 801. Company May Consolidate, Etc., Only on Certain Terms.
----------------------------------------------------
The Company shall not consolidate with or merge into any other Person or
convey, transfer or lease all or substantially all of its properties and assets
to any Person, and the Company shall not permit any Person to consolidate with
or merge into the Company or convey, transfer or lease all or substantially all
of its properties and assets to the Company unless either:
(a) in case the Company shall consolidate with or merge into
another Person or convey, transfer or lease all or substantially all of
its properties and assets to any Person, the Person formed by such
consolidation or into which the Company is merged or the Person which
acquires by conveyance or transfer, or which leases, all or
substantially all of the properties and assets of the Company shall be
(i) a corporation, limited liability company, partnership or trust
organized and validly existing under the laws of the United States or
(ii) a corporation, limited liability company, partnership or trust
organized and validly existing under the laws of a jurisdiction other
than the United States (a "Foreign Entity") that 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
and Additional Amounts on all the Securities and Coupons and the
performance and observance of every covenant of this Indenture on the
part of the Company to be performed or observed and shall have provided
for conversion rights in accordance with Article Twelve. In the event
that such Person is a Foreign Entity, it shall expressly agree to make
payments under the Securities and Coupons free of any deduction or
withholding for any and all then existing or future withholding taxes,
levies, imposts and charges whatsoever imposed by or for the account of
the jurisdiction where such Foreign Entity is generally subject to
taxation (or any political subdivision or taxing authority thereof or
therein) in a manner equivalent to that set forth herein, subject to the
exceptions contained elsewhere herein;
(b) immediately after giving effect to such transaction and
treating any indebtedness which becomes an obligation of the Company or
one of its Subsidiaries as a result of such transaction as having been
incurred by the Company or such Subsidiary at the time of such
transaction, no Event of Default, and no event which, after notice or
lapse of time or both, would become an Event of Default, shall have
happened and be continuing; and
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(c) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction,
such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction
have been complied with.
Section 802. Successor Corporation Substituted.
---------------------------------
Upon any consolidation by the Company with or merger by the Company into
any other Person or any conveyance, transfer or lease of all or substantially
all of the properties and assets of the Company, in accordance with Section 801,
the successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer or lease is made, shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures Without Consent of Holders.
--------------------------------------------------
Without the consent of any Holders of Securities or Coupons, 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:
(1) to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants of the Company contained
herein and in the Securities; or
(2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (as shall be specified in such
supplemental indenture or indentures and if such covenants are to be for the
benefit of less than all series of Securities, stating that such covenants are
being included solely for the benefit of such series) or to surrender any right
or power herein conferred upon the Company; or
(3) to add to or change any of the provisions of this Indenture to
provide that Bearer Securities may be registrable as to principal, to change or
eliminate any restrictions on the
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payment of principal of, any premium or interest on or any Additional Amounts
with respect to Securities, to permit Bearer Securities to be issued in exchange
for Registered Securities, to permit Bearer Securities to be exchanged for
Bearer Securities of additional authorized denominations or to permit or
facilitate the issuance of Securities in uncertificated form, provided any such
action shall not adversely affect the interests of the Holders of Securities of
any series or any Coupons appertaining thereto in any material respect; or
(4) to establish the form or terms of Securities of any series and any
Coupons appertaining thereto as permitted by Sections 201 and 301; or
(5) 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 609;
or
(6) to cure any ambiguity or 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 which shall not adversely affect the interests of the
Holders of Securities of any series then Outstanding or any Coupons appertaining
thereto in any material respect; or
(7) to add any additional Events of Default with respect to all or any
series of Securities (as shall be specified in such supplemental indenture and
if such additional Events of Default are to be for the benefit of less than all
series of Securities, stating that such additional Event of Default are
expressly being included solely for the benefit of such series); or
(8) to supplement any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Securities pursuant to Article Four, provided that
any such action shall not adversely affect the interests of any Holder of a
Security of such series and any Coupons appertaining thereto or any other
Security or Coupon in any material respect; or
(9) to secure the Securities; or
(10) to amend or supplement any provision contained herein or in any
supplemental indenture (which amendment or supplement may apply to one or more
series of Securities or to one or more Securities within any series as specified
in such supplemental indenture or indentures), provided that such amendment or
supplement does not apply to any Outstanding Security issued prior to the date
of such supplemental indenture and entitled to the benefits of such provision or
modify the rights of the Holder of any such Security with respect to such
provision.
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Section 902. Supplemental Indentures With Consent of Holders.
-----------------------------------------------
With the consent of the Holders of not less than a majority in principal
amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by 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 the Securities of such series 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, without the consent of the Holder of each Outstanding Security
affected thereby, shall
(1) change the Stated Maturity of the principal of, or any
premium or installment of principal or interest on or any Additional
Amounts with respect to, any Security, or any sinking fund or analogous
payment in respect thereof, or reduce the principal amount thereof or
the rate (or modify the calculation of such rate) of interest thereon or
any Additional Amounts with respect thereto, or any premium payable upon
the redemption thereof or otherwise, or change the obligation of the
Company to pay Additional Amounts pursuant to Section 1004, or reduce
the amount of the principal of any Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502 or the amount thereof provable in bankruptcy
pursuant to Section 504, adversely affect the right of repayment at the
option of any Holder as contemplated by Article Fifteen, or change the
provisions of Article Ten relating to Place of Payment for Bearer
Securities being located outside the United States, or the Currency in
which the principal of, any premium or interest on, or any Additional
Amounts with respect to any Security or any sinking or analogous fund
payment in respect thereof, 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 or, in the case of repayment at the option of the
Holder, on or after the Repayment Date) or, except as permitted by
Article Twelve, adversely affect in any material respect the right to
convert or exchange any Security, or modify the provisions of this
Indenture with respect to the subordination of the Securities in a
manner adverse to the Holders in any material respect, or
(2) reduce the percentage in principal amount of the Outstanding
Securities of any series, the consent of whose Holders is required for
any such supplemental indenture, or the consent of whose Holders is
required for any waiver (of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or reduce the requirements of Section 1604 for
quorum or voting, or
(3) modify any of the provisions of this Section, Section 513 or
Section 1001, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Outstanding Security affected
thereby;
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A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which shall have been included expressly and
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 of Securities under
this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.
Section 903. Execution of Supplemental Indentures.
------------------------------------
As a condition to executing, or accepting the additional trusts created
by, any supplemental indenture permitted by this Article Nine or the
modifications thereby of the trust created by this Indenture, the Trustee shall
be entitled to receive, and (subject to Section 315 of the Trust Indenture Act)
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 and an Officers' Certificate stating that all conditions precedent to
the execution of supplemental indenture have been fulfilled. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise.
Section 904. Effect of Supplemental Indentures.
---------------------------------
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of a Security theretofore or thereafter authenticated and delivered hereunder
and of any Coupon appertaining thereto shall be bound thereby.
Section 905. 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 such securities authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.
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Section 906. Conformity with Trust Indenture Act.
-----------------------------------
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal, Any Premium, Interest and Additional
----------------------------------------------------------
Amounts.
-------
The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of, any premium
and interest on and any Additional Amounts with respect to the Securities of
each series in accordance with the terms thereof, any Coupons appertaining
thereto and this Indenture. Any interest due on any Bearer Security on or before
the Maturity thereof, and any Additional Amounts payable with respect to such
interest, shall be payable only upon presentation and surrender of the Coupons
appertaining thereto for such interest as they severally mature.
Section 1002. Maintenance of Office or Agency.
-------------------------------
The Company shall maintain in each Place of Payment for any series of
Securities, an Office or Agency where Securities of such series (but not Bearer
Securities, except as otherwise provided below, unless such Place of Payment is
located outside the United States) may be presented or surrendered for payment,
where Securities of such series may be surrendered for registration of transfer
or exchange, where Registered Securities may be surrendered for conversion,
where Bearer Securities may be surrendered for conversion in the circumstances
described below (and not otherwise) and where notices and demands to or upon the
Company in respect of the Securities of such series relating thereto and this
Indenture may be served. If Securities of a series are issuable as Bearer
Securities, the Company shall maintain, subject to any laws or regulations
applicable thereto, an Office or Agency in a Place of Payment and Place of
Conversion for such series which is located outside the United States where
Securities of such series and any Coupons appertaining thereto, may be
presented and surrendered for payment or conversion; provided, however, that if
-------- -------
the Securities of such series are listed on the London Stock Exchange or the
Luxembourg Stock Exchange or any other stock exchange located outside the United
States and such stock exchange shall so require, the Company shall maintain a
Paying Agent and a Conversion Agent in London, Luxembourg or any other required
city located outside the United States, as the case may be, so long as the
Securities of such series are listed on such exchange. The Company will give
prompt written notice to the Trustee of the location, and any change in the
location, of such Office or Agency. If at any time the Company shall fail to
maintain any such required Office or Agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, except that
Bearer Securities of such series and any Coupons appertaining thereto
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may be presented and surrendered for payment or conversion at the place
specified for that purpose with respect to such Securities as provided in or
pursuant to this Indenture, and the Company hereby appoint the Trustee as its
agent to receive all such presentations, surrenders, notices and demands.
Except as otherwise provided in or pursuant to this Indenture, no
payment of principal, premium, interest or Additional Amounts with respect to
Bearer Securities (including payments by reason of the conversion thereof) shall
be made at any Office or Agency 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 if amounts owing with
-------- -------
respect to any Bearer Securities shall be payable in Dollars, payment of
principal of, any premium or interest on and any Additional Amounts with respect
to any such Security may be made, and any Bearer Securities may be surrendered
for conversion, at the Corporate Trust Office of the Trustee or any Office or
Agency designated by the Company in the Borough of Manhattan, The City of New
York, if (but only if) payment of the full amount of such principal, premium,
interest or Additional Amounts, or surrender of Bearer Securities for
conversion, at all offices outside the United States maintained for such purpose
by the Company in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions on the full payment
or receipt of such amounts in Dollars as determined by the Company, or on
surrender of any Bearer Securities for conversion.
The Company may also from time to time designate one or more other
Offices or Agencies where the Securities of one or more series, may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
-------- -------
shall in any manner relieve the Company of its obligation to maintain an Office
or Agency in each Place of Payment and Place of Conversion for Securities of any
series for such purposes. The Company shall give prompt written notice to the
Trustee of any such designation or rescission and of any change in the location
of any such other Office or Agency. Unless otherwise provided in or pursuant to
this Indenture, the Company hereby designates as the Place of Payment and the
Place of Conversion for each series of Securities (other than those issued as
Bearer Securities), the Borough of Manhattan, The City of New York, and
initially appoint the Corporate Trust Office of the Trustee as the Company's
Office or Agency in the Borough of Manhattan, The City of New York for such
purpose. The Company may subsequently appoint a different Office or Agency in
the Borough of Manhattan, The City of New York for the Securities of any series.
Unless otherwise provided in or pursuant to this Indenture, the Company hereby
designates as the Place of Payment and the Place of Conversion for Bearer
Securities, to be London, England, and initially appoint the office of the
Trustee in London as the Office or Agency for such purpose and initially appoint
the office of the Trustee in London as its Paying Agent in London.
If at any time the Company shall fail to maintain any such required
office or agency, or shall fail to furnish the Trustee with the address thereof,
presentations and surrenders may be made and notices and demands may be served
on the Corporate Trust Office of the Trustee,
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except that Bearer Securities and Coupons may be presented and surrendered for
payment and conversion to the Paying Agent in London at its office in the City
of London, England or other Paying Agent or Conversion Agent outside the United
States, and the Company hereby appoints the Paying Agent in London as its agent
to receive such respective presentations, surrenders, notices and demands.
Section 1003. Money for Securities Payments to be Held in Trust.
-------------------------------------------------
If the Company shall at any time act as its own Paying Agent with respect
to any series of Securities, it shall, on or before each due date of the
principal of, any premium or interest on or Additional Amounts with respect to
any of the Securities of such series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum in Dollars sufficient to pay the
principal or any premium, interest or Additional Amounts so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as herein
provided, and shall promptly notify the Trustee of its action or failure so to
act.
Whenever the Company shall have one or more Paying Agents for any series of
Securities, it shall, on or prior to each due date of the principal of, any
premium or interest on or any Additional Amounts with respect to any Securities
of such series, deposit with any Paying Agent a sum in Dollars sufficient to pay
the principal or any premium, interest or Additional Amounts so becoming due,
such sum to be held in trust for the benefit of the Persons entitled thereto,
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 shall 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 shall:
(1) hold all sums held by it for the payment of the principal of, any
premium or interest on or any Additional Amounts with respect to Securities
of such series in trust for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as
provided in or pursuant to this Indenture;
(2) give the Trustee notice of any default by the Company (or any
other obligor upon the Securities of such series) in the making of any
payment of the principal of, any premium or interest on or any Additional
Amounts with respect to the Securities of such series;
(3) at any time during the continuance of any such default, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent; and
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(4) indemnify the Trustee for any loss, cost, liability, or expense
caused by any error, act or omission of the Paying Agent.
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 of the Company 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 terms 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 sums.
Except as otherwise provided herein or pursuant hereto, 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, any premium or interest on or any Additional
Amounts with respect to any Security of any series or any Coupon appertaining
thereto and remaining unclaimed for two years after such principal or any such
premium or interest or any such Additional Amounts shall have become due and
payable shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security or
any Coupon appertaining thereto shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however,
-------- -------
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in an
Authorized Newspaper in each Place of Payment for such series or to be mailed to
Holders of Registered Securities of such series, or both, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication or mailing, any unclaimed
balance of such money then remaining will be repaid to the Company.
Section 1004. Additional Amounts.
------------------
All payments of principal of, premium, if any, and interest on Securities
of any series to a Holder thereof who is not a United States person shall be
made without set-off, counterclaim, fees, liabilities or similar deductions
(including payments on redemption, repayment and the exercise of the Cash
Settlement Option), and free and clear of, and without deduction or withholding
for, taxes, levies, imposts, duties, assessments, charges or fees of whatsoever
-----------
nature now or hereafter imposed, levied, collected, deducted, withheld or
assessed by or on behalf of the Government of the United States, or any state or
other political subdivision or taxing authority thereof or therein ("Taxes"). If
-----
the Company or any agent of the Company is required by law or regulation to make
- -----------
any deduction or withholding for or on account of Taxes, the Company shall pay
such additional amounts ("Additional Amounts") as shall be necessary in order
------------------
that the net amounts received by the Holders of the Securities of any series who
are not United States
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persons after such deduction or withholding shall equal the amount that would
have been receivable thereunder in the absence of such deduction or withholding,
except that no such Additional Amounts shall be payable on account of:
(a) any Tax which would not have been so imposed but for (i) the
existence of any present or former connection between such Holder (or
between a fiduciary, settlor, beneficiary, member, shareholder of or
possessor of a power over such Holder, if such Holder is an estate, a
trust, a partnership or a corporation) and the United States or any
political subdivision or taxing authority thereof or therein, including,
without limitation, such Holder (or such fiduciary, settlor, beneficiary,
member, shareholder or possessor) being or having been a citizen or
resident of the United States or treated as a resident thereof, or being or
having been engaged in trade or business or present therein, or having had
a permanent establishment therein, (ii) such Holder's present or former
status as a personal holding company, a foreign personal holding company
with respect to the United States, a controlled foreign corporation, a
passive foreign investment company, or a foreign private foundation or
foreign tax exempt entity for United States tax purposes, or a corporation
which accumulates earnings to avoid United States Federal income tax, or
(iii) such holder's status as a bank extending credit pursuant to a loan
agreement entered into in the ordinary course of business;
(b) any Tax which would not have been so imposed but for the
presentation by the Holder of such Security or any Coupon appertaining
thereto for payment on a date more than 15 days after the date on which
such payment became due and payable or the date on which payment thereof is
duly provided for, whichever occurs later;
(c) any estate, inheritance, gift, sales, transfer, personal property
or similar Tax;
(d) any Tax which would not have been imposed but for the failure to
comply with any certification, identification or other reporting
requirements concerning the nationality, residence, identity or connection
with the United States of the Holder or beneficial owner of such Security
or any Coupon appertaining thereto, if compliance is required by statute or
by regulation or ruling of the United States Treasury Department as a
precondition to exemption from such Tax;
(e) any Tax which is payable otherwise than by deduction or
withholding from payments of principal of, premium, if any, or interest on
such Security;
(f) any Tax imposed as a result of a Person's past or present actual
or constructive ownership, including by virtue of the right to convert
Securities, of 10% or more of the total combined voting power of all
classes of stock of the Company entitled to vote;
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(g) any Tax required to be withheld by any Paying Agent from any
payment of the principal of, premium, if any, or interest on such Security,
if such payment can be made without such withholding by any other Paying
Agent in Western Europe;
(h) any Tax imposed on the disposition of any Security by a person
holding at any time, actually or constructively, Securities of the
applicable series having a fair market value in excess of the greater of
the fair market value of five percent of (i) the Company's Common Stock or
(ii) the Securities of such series;
(i) any Tax imposed on a Holder that is a partnership or a fiduciary,
but only to the extent that any beneficial owner or member of the
partnership or beneficiary or settlor with respect to the fiduciary would
not have been entitled to the payment of Additional Amounts had the
beneficial owner, member, beneficiary or settlor directly received its
beneficial or distributive share of payments on such Security;
(j) any Tax which would not have been imposed but for the fact that
such Security constitutes a "United States real property interest," as
defined in Section 897(c)(1) of the Internal Revenue Code and the
regulations thereunder, with respect to the beneficial owner of such
Security; or
(k) any combination of items (a), (b), (c), (d), (e), (f), (g), (h),
(i) and (j).
Notwithstanding the foregoing, if and so long as a certification,
identification or other information reporting requirement referred to in the
third paragraph of Section 1102 of this Indenture would be fully satisfied by
payment of a backup withholding tax or similar charge, the Company may elect, by
so stating in the Determination Notice (as hereinafter defined), to have the
provisions of this paragraph apply in lieu of redeeming the Security pursuant to
such Section 1102. In such event, the Company will pay as Additional Amounts
such amounts as may be necessary so that every net payment made, following the
effective date of such requirements, outside the United States by the Company or
any Paying Agent of principal and premium, if any, due in respect of a Security,
or interest represented by any Coupon, the beneficial owner of which is not a
United States person (but without any requirement that the nationality,
residence or identity of such beneficial owner be disclosed to the Company, any
Paying Agent or any governmental authority), after deduction or withholding for
or on account of such backup withholding tax or similar charge, other than a
backup withholding tax or similar charge which is (a) the result of a
certification, identification or information reporting requirement described in
the first parenthetical clause of such third paragraph of Section 1102, (b)
imposed as a result of the fact that the Company or any Paying Agent has actual
knowledge that the beneficial owner of the Security or such Coupon is within the
category of Persons described in clause (a) of the preceding paragraph or (c)
imposed as a result of presentation of the Security or such Coupon for payment
more than 15 days after the date on which such payment becomes due and payable
or on
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which payment thereof is duly provided for, whichever occurs later, will not be
less than the amount provided for in the Security or such Coupon to be then due
and payable.
Except as specifically provided in this Indenture, the Company shall
not be required to make any payment with respect to any Taxes.
If the Company or any successor to the Company under this Indenture shall
be incorporated under the laws of a jurisdiction other than the United States,
the Company or its successor will pay and shall provide notice to the Trustee of
the payment of, such additional amounts ("Other Additional Amounts") as may be
------------------------
necessary in order that every net payment on each Security, after withholding
for or on account of any present or future tax, assessment or other governmental
charge imposed upon or as a result of such payment by such other jurisdiction
(or any political subdivision or taxing authority thereof or therein), will be
not less than the amount provided for in such Security to be then due and
payable; provided, however, that (i) the Other Additional Amounts payable to a
-------- -------
Holder of a Security will be reduced to the extent that such withholding reduces
any tax liability to which such Holder of the Security was and is subject both
prior to and after such incorporation in another jurisdiction and (ii) the
exceptions listed in the second preceding paragraph shall apply, substituting
for the United States the relevant jurisdiction that imposes the tax giving rise
to the payment of Other Additional Amounts.
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 any 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 by the terms of this
Indenture or by the terms of such series established hereby or pursuant hereto
to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.
Except as otherwise provided in or pursuant to this Indenture or the
Securities of any series, 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 such series of Securities (or if the Securities of such series
shall not bear interest prior to Maturity, the first day on which a payment of
principal is made), and at least 10 days prior to each date of payment of
principal or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers' Certificate, the Company shall
furnish to the Trustee and the principal Paying Agent or Paying Agents, if other
than the Trustee, an Officers' Certificate instructing the Trustee and such
Paying Agent or Paying Agents whether such payment of principal of and premium,
if any, or interest, if any, on the Securities of such series shall be made to
Holders of Securities of such series or the Coupons appertaining thereto who are
not United States persons without withholding for or on account of any Tax
described in the Securities of such 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
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of Securities or Coupons, and the Company agrees to pay to the Trustee or such
Paying Agent the Additional Amounts required hereby or by the terms of such
Securities. The Company covenants to indemnify the Trustee and any Paying Agent
and other officers, directors, employees and agents for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section.
Section 1005. Statement as to Compliance.
--------------------------
The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company an Officers' Certificate, stating as to each
signer, that
(1) a review of the activities of the Company during such year and of
performance under this Indenture has been made under his or her supervision; and
(2) to the best of his or her knowledge, based on such review, (a) the
Company has fulfilled all its obligations under this Indenture throughout such
year, or, if there has been a material default in the fulfillment of any such
obligation, specifying each such default known to him or her and the nature and
status thereof, and (b) no event has occurred and is continuing which is, or
after notice or lapse of time or both would become, an Event of Default, or, if
such an event has occurred and is continuing, specifying each such event known
to him or her and the nature and status thereof.
Section 1006. Corporate Existence.
-------------------
Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Applicability of Article.
------------------------
Redemption of Securities of any series at the option of the Company as
permitted or required in or pursuant to this Indenture or by the terms of such
Securities shall be made in accordance with the terms of this Indenture or such
Securities and (except as otherwise provided herein or pursuant hereto) this
Article Eleven.
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Section 1102. Election to Redeem; Notice to Trustee;
-------------------------------------
The election of the Company to redeem any Securities shall be evidenced by
or pursuant to a Board Resolution. In case of any redemption at the election of
the Company of the Securities of any series, the Company shall, at least 75 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 of such series to be redeemed.
In addition, notwithstanding the above, if as a result of a Tax Law
Change, the Company has or will become obligated to pay to the Holder of any
Security or Coupon Additional Amounts, and such obligation cannot be avoided by
the Company taking reasonable measures available to it, then the Company may, at
its option, redeem the Tax Affected Securities as a whole, but not in part, upon
not less than 20 nor more than 60 days' notice to the Holders prior to the
Redemption Date therefor, at a Redemption Price equal to 100% of the principal
--------
amount plus interest accrued to the Redemption Date, and any Additional Amounts
then payable; provided that (i) no such notice of redemption shall be given
-------- ----
earlier than 90 days prior to the earliest date on which the Company would be
obligated to pay any such Additional Amounts were a payment in respect of the
----
Tax Affected Securities then due and (ii) at the time such notice of redemption
is given, such obligation to pay such Additional Amounts remains in effect.
Prior to the publication of any notice of redemption pursuant to this paragraph,
the Company shall deliver to the Trustee (a) an Officers' Certificate stating
that the Company is entitled to effect such redemption and setting forth a
statement of facts showing that the conditions precedent to the right of the
Company so to redeem have occurred and (b) an Opinion of Counsel selected by the
Company to the effect that the Company has or will become obligated to pay such
Additional Amounts as a result of such Tax Law Change. The Company's right to
redeem the Tax Affected Securities shall continue as long as the Company is
obligated to pay such Additional Amounts, notwithstanding that the Company shall
have made payments of Additional Amounts specified in Section 1004.
In addition, if the Company determines, based upon an Opinion of Counsel,
that, as a result of a Tax Law Change, any payment made outside the United
States by the Company or any of its Paying Agents of the full amount of
principal, premium, if any, or interest due with respect to any Bearer Security
or Coupon appertaining thereto would be subject to any certification,
identification or other information reporting requirement of any kind, the
effect of which requirement is the disclosure to the Company, any Paying Agent
or any governmental authority of the nationality, residence or identity of a
beneficial owner of such Bearer Security or Coupon who is not a United States
person (other than such a requirement (a) which would not be applicable to a
payment made by the Company or any one of its Paying Agents (i) directly to the
beneficial owner or (ii) to any custodian, nominee or other agent of the
beneficial owner, (b) which can be satisfied by the custodian, nominee or other
agent certifying that such beneficial owner is not a United States person,
provided that, in each case referred to in clauses (a) (ii) and (b), payment by
- -------- ----
such custodian, nominee or agent to such beneficial owner is not otherwise
subject to any such requirement, or (c) which would not be applicable but for
the fact that such Bearer Security constitutes a "United States real property
interest," as defined in Section 897(c)(1) of the Internal Revenue Code, with
respect
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to the beneficial owner of such Bearer Security), the Company at its election
will either (x) redeem the Bearer Securities, as a whole but not in part, upon
not less than 20 nor more than 60 days' notice prior to the Redemption Date, at
a Redemption Price equal to 100% of the principal amount thereof plus interest
accrued to the Redemption Date and any Additional Amounts, or (y) if and so long
--------------------------
as the certification, identification or other information reporting requirement
referred to above would be fully satisfied by payment of a backup withholding
tax or similar charge, pay the bearer the Additional Amounts specified in
Section 1004. The Company will make such determination and election and notify
the Trustee and the Paying Agent in London, England thereof in writing as soon
as practicable, and the Trustee will promptly give notice of such determination
in the manner provided in Section 106 (the "Determination Notice"), in each case
--------------------
stating the effective date of such certification, identification or information
reporting requirement, whether the Company will redeem the Bearer Securities or
will pay the Additional Amounts specified in the second paragraph of Section
1004 and (if applicable) the last date by which the redemption of the Bearer
Securities must take place. If the Company elects to redeem the Bearer
Securities pursuant to clause (x) above, such redemption shall take place on a
date, not later than one year after the publication of the Determination Notice,
as the Company elects by notice in writing to the Trustee and the Paying Agent
in London at least 75 days before the Redemption Date, unless shorter notice is
acceptable to the Trustee. Notwithstanding the foregoing, the Company will not
so redeem the Bearer Securities if the Company, based upon an Opinion of Counsel
which counsel shall be reasonably acceptable to the Trustee, subsequently
determines, not less than 20 days prior to the Redemption Date, that subsequent
payments would not be subject to any such requirement, in which case the Company
will notify the Trustee in writing of its determination not to so redeem the
Securities, and the Trustee will promptly give notice to the Holders of the
Bearer Securities of that determination and any earlier redemption notice will
thereupon be revoked and of no further effect. If the Company elects as provided
in clause (y) above to pay Additional Amounts, the Company may, as long as the
Company is obligated to pay such Additional Amounts, subsequently redeem the
Bearer Securities, at any time, as a whole but not in part, upon not less than
20 nor more than 60 days' notice prior to the Redemption Date, at a Redemption
Price equal to 100% of the principal amount thereof plus interest accrued to the
Redemption Date, and any Additional Amounts.
Section 1103. Selection by Trustee of Securities to be Redeemed.
-------------------------------------------------
If any Securities of any series are to be redeemed in part, the particular
Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee from the Outstanding Securities of such series
not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate, under circumstances intended not to discriminate between
Registered and Bearer Securities to be redeemed, and which may provide for the
selection for redemption of portions of the principal amount of Registered
Securities of such series; provided, however, that no such partial redemption
-------- -------
shall reduce the portion of the principal amount of a Registered Security of
such series not redeemed to less than the minimum denomination for a Security of
such series established herein or pursuant hereto. The Trustee shall have no
liability in connection with any selection of securities to redemption made in
good faith and without negligence.
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If any Registered Security selected for partial redemption, which is
convertible by the terms of such Security established pursuant to Section 301,
is converted in part before termination of the conversion right with respect to
the portion of the Security so selected, the converted portion of such Security
shall be deemed (so far as may be) to be the portion selected for redemption.
Securities which have been converted during a selection of Securities to be
redeemed may be treated by the Trustee as Outstanding for the purpose of such
selection.
The Trustee shall promptly notify the Company and the Security Registrar
(if other than itself) in writing of the Securities selected for redemption and,
in the case of any Securities selected for partial redemption, the principal
amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion
of the principal of such Securities which has been or is to be redeemed.
Section 1104. Notice of Redemption.
--------------------
Notice of redemption shall be given by the Trustee in the manner provided
in Section 106, not less than 20 nor more than 60 days prior to the Redemption
Date, unless a different period is specified in the Securities to be redeemed.
---------
All such redemption notices (except, in the case of a redemption specified in
the penultimate paragraph of Section 1102) shall be irrevocable. Failure to give
notice by mailing in the manner herein provided to the Holder of any Registered
Securities designated for redemption as a whole or in part, or any defect in the
notice to any such Holder, shall not affect the validity of the proceedings for
the redemption of any other Securities or portion thereof.
Any notice that is mailed to the Holder of any Registered Securities in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not such Holder receives the notice.
All notices of redemption shall identify the Securities to be redeemed and
shall state:
(1) the Redemption Date,
(2) the Redemption Price, and accrued interest, if any,
(3) if less than all Outstanding Securities of any series are to be
redeemed, the identification (and, in the case of partial redemption, the
principal amount) of the particular Security or Securities to be redeemed,
(4) in case any Security is to be redeemed in part only, the notice which
relates to such Security shall state that on and after the Redemption Date, upon
surrender of such Security, the Holder of such Security will receive, without
charge, a new Security or Securities of authorized denominations for the
principal amount thereof remaining unredeemed,
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(5) that, on the Redemption Date, the Redemption Price shall become due
and payable upon each such Security or portion thereof to be redeemed, and, if
applicable, that interest thereon shall cease to accrue on and after said date,
(6) if applicable, the Conversion Price, the date on which the right to
convert the Securities to be redeemed will terminate and the places where such
Securities, together with all unmatured Coupons and any matured Coupons in
default appertaining thereto, may be surrendered for conversion,
(7) the place or places where such Securities, together (in the case of
Bearer Securities) with all Coupons appertaining thereto, if any, maturing after
the Redemption Date, are to be surrendered for payment of the Redemption Price
and any accrued interest and Additional Amounts pertaining thereto,
(8) that the redemption is for a sinking fund, if such is the case,
(9) that, unless otherwise specified in such notice, Bearer Securities of
any series, if any, surrendered for redemption must be accompanied by all
Coupons maturing subsequent to the date fixed for redemption or the amount of
any such missing Coupon or Coupons will be deducted from the Redemption Price,
unless security or indemnity satisfactory to the Company, the Trustee and any
Paying Agent is furnished,
(10) if Bearer Securities of any series are to be redeemed and any
Registered Securities of such series are not to be redeemed, and if such Bearer
Securities may be exchanged for Registered Securities not subject to redemption
on the Redemption Date pursuant to Section 305 or otherwise, the last date, as
determined by the Company, on which such exchanges may be made, and
(11) the CUSIP number, ISIN number or the EUROCLEAR or the CEDEL reference
numbers of such Securities, if any (or any other numbers used by a Depository to
identify such Securities).
Notice of redemption of Securities to be redeemed at the election of the
Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company.
Section 1105. Deposit of Redemption Price.
---------------------------
On or prior to 10:00 a.m., Eastern Time, on any Redemption Date, the
Company shall deposit, in immediately available funds, with respect to the
Securities of any series called for redemption pursuant to Section 1104, with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money in Dollars sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date, unless otherwise
specified pursuant to Section 301 for or in the Securities of such series) any
accrued interest on and
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Additional Amounts with respect thereto, all such Securities or portions thereof
which are to be redeemed on that date.
If any Security called for redemption, which is convertible by the terms of
such Security established pursuant to Section 301, is converted, any money
deposited with the Trustee or with a Paying Agent or so segregated and held in
trust for the redemption of such Security shall (subject to any right of the
Holder of such Security or any predecessor Security to receive interest as
provided in Section 307) be paid to the Company on Company Request or, if then
held by the Company, shall be discharged from such trust.
Section 1106. Securities Payable on Redemption Date.
-------------------------------------
Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest and the Coupons for such
interest appertaining to any Bearer Securities so to be redeemed, except 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 any accrued interest
and Additional Amounts to the Redemption Date; provided, however, that, except
-------- -------
as otherwise provided in or pursuant to this Indenture or the Bearer Securities
of such series, installments of interest on Bearer Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable only upon
presentation and surrender of Coupons for such interest (at an Office or Agency
located outside the United States except as otherwise provided in Section 1002),
and provided, further, that, except as otherwise specified in or pursuant to
-------- -------
this Indenture or the Registered Securities of such series, 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
Regular Record Dates therefor according to their terms and the provisions of
Section 307.
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 any interest
-------- -------
or Additional Amounts represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an Office or Agency for such
Security located outside of the United States except as otherwise provided in
Section 1002.
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If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal and any premium, until paid, shall bear
interest from the Redemption Date at the rate prescribed therefor in the
Security and each Security shall remain convertible (if applicable) until the
principal of such Security (or portion thereof, as the case may be) shall have
been paid or duly provided for.
Section 1107. Securities Redeemed in Part.
---------------------------
Any Registered Security which is to be redeemed only in part shall be
surrendered at any applicable Office or Agency for such Security (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 without service charge, a new Registered Security or
Securities of the same series, containing identical terms and provisions, of any
authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered. If a Security in global form is so surrendered,
the Company shall execute, and the Trustee shall authenticate and deliver to the
U.S. Depository or other Depository for such Security in global form as shall be
specified in the Company Order with respect thereto to the Trustee, without
service charge, a new Security in global form in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Security in global
form so surrendered.
ARTICLE TWELVE
CONVERSION OF SECURITIES
Section 1201. Conversion Privilege and Conversion Price
-----------------------------------------
Conversion of Securities of any series at the option of the Holder thereof
as permitted by the terms of such Securities shall be made in accordance with
the terms of such Securities and (except as otherwise provided herein or
pursuant hereto) this Article Twelve. Each reference in this Article Twelve to
"a Security" or "the Securities" refers to the Securities of the particular
series that are convertible into shares of Common Stock. At the option of the
Holder any Security other than the temporary global Bearer Security may be
converted into fully paid and nonassessable shares (calculated as to each
conversion to the nearest 1/100th of a share) of Common Stock of the Company at
the Conversion Price (as defined below) in effect at the time of conversion. The
period for conversion shall be set forth in the terms of the Securities. In case
a Security or portion thereof is called for redemption or is delivered for
repayment, such conversion right in respect of the Security or portion so called
or delivered shall expire at the close of business on the fifth Business Day
preceding the Redemption Date or the second Business Day preceding a repayment
on the Securities Repayment Date (as set forth in Article Fifteen), as the case
may be, unless the Company defaults in making the payment due upon redemption or
repayment, as the case may be.
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The price at which shares of Common Stock shall be delivered upon
conversion (herein called the "Conversion Price") shall be as set forth in the
----------------
terms of the Securities. The Conversion Price shall be adjusted in certain
instances as provided in this Article Twelve.
As permitted by the terms of such Securities, the Company may provide for
either or both of the options set forth in clauses (i) and (ii) of this
paragraph to apply to any series of Securities, in which case such provisions
shall be applicable to such Securities (except as otherwise provided herein or
pursuant hereto). In lieu of issuing shares of Common Stock upon conversion of
the Securities, the Company may elect, in its sole discretion to pay cash in
respect of all or a portion of the shares of Common Stock otherwise issuable
upon such conversion (the "Cash Settlement Option"). The amount of cash to be so
----------------------
delivered upon the exercise of the Cash Settlement Option shall be equal to the
number of shares of Common Stock as to which cash is being paid in lieu of
issuance of shares of Common Stock multiplied by the Market Price of a share of
Common Stock.
Upon exercise of the Cash Settlement Option, the Company shall inform each
Conversion Agent and Paying Agent of the Market Price of the Common Stock.
Upon presentment for conversion of any Securities pursuant to this
Section 1201, the applicable Conversion Agent shall that day notify the Company
of such presentment. Within two Business Days after the Conversion Date, the
Company shall deliver to the Paying Agent written notice of whether such
Security shall be converted into shares of Common Stock, cash or a combination
of shares of Common Stock and cash (specifying the amounts of each). The Company
shall deliver to such Holder no later than the fifth Business Day following the
Conversion Date, through the Paying Agent, in respect of the portion of the
converted security to be settled in cash, and as promptly as practicable on or
following the Conversion Date in respect of the portion of the converted
Security as to which shares of Common Stock are to be issued, the amount of cash
and certificates representing the number of shares of Common Stock to be
delivered, and cash in lieu of any fractional shares. No payment or adjustment
shall be made upon any conversion on account of any dividends on the Common
Stock issued upon conversion.
In the event that payment by the Company of cash in lieu of issuing shares
of Common Stock upon conversion of a Security shall require any withholding for
or on account of any present or future Tax imposed upon or as a result of
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such cash payment by the United States or any political subdivision or taxing
authority thereof or therein, then the Company will be required to pay
Additional Amounts with respect thereto in the same manner and to the same
extent as is provided for in Section 1004.
In the event that payment by the Company of cash in lieu of issuing shares
of Common stock upon conversion of a Security shall require any certification,
identification or information reporting requirement of United States law or
regulation with regard to the nationality, residence or identity of a beneficial
owner of a Bearer Security who is not a United States person (other than a
requirement (a) which would not be applicable to a payment made (i) directly to
the beneficial owner or (ii) to a custodian, nominee or other agent of the
beneficial owner, or (b) which could be satisfied by the Holder, custodian,
nominee or other agent certifying that the beneficial owner is not a United
States person, provided, however, in each case referred to in clauses (a) (ii)
-------- -------
and (b) payment by such custodian, nominee or agent to the beneficial owner is
not otherwise subject to any requirement referred to in this sentence), the
Company may not elect to make the cash payment unless such certification,
identification or information reporting requirement would be fully satisfied by
payment of United States withholding, backup withholding or similar taxes and
the Company pays such Additional Amounts as are necessary in order that,
following the effective date of such requirement, every net payment made outside
the United States by the Company or a related Paying Agent of the cash payment
on a Bearer Security to a Holder who is not a United States person (without
regard to a certification, identification or information reporting requirement
as to the nationality, residence or identity of such Holder), after deduction
for United States withholding, backup withholding or similar taxes (other than
withholding, backup withholding or similar taxes which would not be applicable
in the circumstances referred to in the parenthetical clauses above), will not
be less than the amount to be then due and payable thereon.
Section 1202. Exercise of Conversion Privilege.
--------------------------------
In order to exercise the conversion privilege, the Holder of any Definitive
Security to be converted shall surrender such Security, duly endorsed or
assigned to the Company or in blank (in the case of any Registered Security), at
any applicable Place of Conversion, accompanied by a duly signed and completed
conversion notice substantially in the form attached hereto as Exhibit B stating
that the Holder elects to convert such Security or, if less than the entire
principal amount thereof is to be converted, the portion thereof to be
converted. Each Bearer Security surrendered for conversion must be surrendered
together with all Coupons appertaining thereto that mature after the Conversion
Date. If any Bearer Security surrendered for conversion shall not be
accompanied by all such appurtenant Coupons, the surrender of any or all of such
missing 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. Matured Coupons not in default (including
Coupons maturing on the Conversion Date) will be payable against surrender
thereof, and matured Coupons previously surrendered and in default will continue
to be payable, notwithstanding the exercise of the right of conversion by the
Holder of the Security to which the Coupon appertains. Accrued interest from
the immediately preceding Interest Payment Date until the Conversion Date (and
Additional Amounts, if any, thereon) will be paid, through the Paying Agent, in
the same manner as regular payments of interest and as provided in Section 307,
within five
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Business Days after the Conversion Date. The Company's delivery to the Holder of
the fixed number of shares of Common Stock (or cash or in lieu thereof, as
provided in this Indenture) into which a Definitive Security is convertible will
be deemed to satisfy the Company's obligation to pay the principal amount of the
Security.
Definitive Securities shall be deemed to have been converted immediately
prior to the close of business on the day of surrender of such Securities for
conversion (accompanied by a duly signed and completed conversion notice as
contemplated above) in accordance with the foregoing provisions, and at such
time the rights of the Holders of such Securities as Holders shall cease, and
the Person or Persons entitled to receive the Common Stock issuable upon
conversion shall be treated for all purposes as the record holder or holders of
such Common Stock at such time; provided, however, that if the Company exercises
-------- -------
the Cash Settlement Option, then the Person or Persons who were to receive the
Common Stock upon conversion shall not be deemed to have ever been a record
holder of the Common Stock as to which the Cash Settlement Option has been
exercised. Subject to Section 1201, as promptly as practicable on or after the
Conversion Date, the Company shall issue and deliver to the Trustee, for
delivery to the Holder, a certificate or certificates for the number of full
shares of Common Stock issuable upon conversion, together with payment in lieu
of any fraction of a share, as provided in Section 1203.
In the case of any Security which is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and
deliver to the Holder thereof, at the expense of the Company, a new Security or
Securities of authorized denominations in an aggregate principal amount equal to
the unconverted portion of the principal amount of such Security. A Security may
be converted in part, but only if the principal amount of such Security to be
converted is any integral multiple of U.S. $1,000 and the principal amount of
such security to remain Outstanding after such conversion is equal to U.S.
$1,000 or any integral multiple of $1,000 in excess thereof.
Section 1203. Fractions of Shares.
-------------------
No fractional shares of Common Stock shall be issued upon conversion of
any Definitive Security. If more than one Definitive Security shall be
surrendered for conversion at one time by the same Holder, the number of full
shares which shall be issuable upon conversion thereof shall be computed on the
basis of the aggregate principal amount of the Definitive Securities (or
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specified portions thereof), the Company shall calculate and pay a cash
adjustment in respect of such fraction (calculated to the nearest 1/100th of a
share) in an amount equal to the same fraction of the current Closing Price Per
Share (calculated in accordance with Section 1204 (6) below) at the close of
business on the Conversion Date. Such cash payments shall, in the case of a
conversion of Bearer Securities, be made to an address outside of the United
States.
Section 1204. Adjustment of Conversion Price.
------------------------------
The Conversion Price shall be subject to adjustment from time to time as
follows:
(1) In case the Company shall pay or make a dividend or other
distribution on any class of capital stock of the Company in shares of Common
Stock, the Conversion Price in effect at the opening of business on the day
following the date fixed for the determination of stockholders entitled to
receive such dividend or other distribution shall be reduced so that the same
shall equal the price determined by multiplying such Conversion Price by a
fraction of which the numerator shall be the number of shares of Common Stock
outstanding at the close of business on the date fixed for such determination
and the denominator shall be the sum of such number of shares and the total
number of shares of Common Stock constituting such dividend or other
distribution, such reduction to become effective at the opening of business on
the day following the date fixed for such determination. For the purposes of
this paragraph (1), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common Stock. The Company will not pay any dividend or make any
distribution on shares of Common Stock held in the treasury of the Company.
(2) In case at any time the Company shall issue rights, options
or warrants to all holders of its Common Stock entitling them to subscribe for
or purchase shares of Common Stock at a price per share less than the then
current market price per share (determined as provided in paragraph (6) of this
Section) of the Common Stock on the date fixed for the determination of
stockholders entitled to receive such rights, options or warrants, the
Conversion Price in effect at the opening of business on the day following the
date fixed for such determination shall be reduced so that the same shall equal
the price determined by multiplying such Conversion Price by a fraction of which
the numerator shall be the number of shares of Common Stock outstanding at the
close of business on the date fixed for such determination plus the number of
shares of Common Stock which the aggregate of the offering price of the total
number of shares of Common Stock so offered for subscription or purchase would
purchase at such current market price and the denominator shall be the number of
shares of Common Stock outstanding at the close of business on the date fixed
for such determination plus the number of shares of Common Stock so offered for
subscription or purchase, such reduction to become effective at the opening of
business on the day following the date fixed for such determination; provided,
--------
however, that if an adjustment to the Conversion Price is made and any or all of
- -------
such rights, options and warrants are not exercised, then a corresponding
reversing adjustment of the Conversion Price shall be made, on an equitable
basis, to take account of such event. For the purposes of this paragraph (2),
the number of shares of Common Stock at any
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time outstanding shall not include shares held in the treasury of the Company
but shall include shares issuable in respect of scrip certificates issued in
lieu of fractions of shares of Common Stock. The Company will not issue any
rights or warrants in respect of shares of Common Stock held in the treasury of
the Company.
(3) In case outstanding shares of Common Stock shall be
subdivided into a greater number of shares of Common Stock, the Conversion Price
in effect at the opening of business on the day following the day upon which
such subdivision becomes effective shall be proportionately reduced, and,
conversely, in case outstanding shares of Common Stock shall each be combined
into a smaller number of shares of Common Stock, the Conversion Price in effect
at the opening of business on the day following the day upon which such
combination becomes effective shall be proportionately increased, such reduction
or increase, as the case may be, to become effective at the opening of business
on the day following the day upon which such subdivision or combination becomes
effective.
(4) In case the Company shall, by dividend or otherwise,
distribute to all holders of its Common Stock evidences of its indebtedness,
shares of any class of capital stock, cash or assets (including securities, but
excluding any (i) rights, options or warrants referred to in paragraph (2) of
this Section, (ii) any dividend or distribution paid exclusively in cash out of
the retained earnings of the Company, (iii) any dividend or distribution
referred to in paragraph (1) of this Section and (iv) shares issued upon any
merger or consolidation to which Section 1211 applies), the Conversion Price
shall be adjusted so that the same shall equal the price determined by
multiplying the Conversion Price in effect immediately prior to the close of
business on the date fixed for the determination of stockholders entitled to
receive such distribution by a fraction of which the numerator shall be the
current market price per share (determined as provided in paragraph (6) of this
Section) of the Common Stock on the date fixed for such determination less the
then fair market value (as determined by the Board of Directors of the Company,
whose determination shall be conclusive and described in a Company Board
Resolution filed with the Trustee) of the portion of the assets, shares or
evidences of indebtedness so distributed applicable to one share of Common Stock
and the denominator shall be such current market price per share of the Common
Stock, such adjustment to become effective at the opening of business on the day
following the date fixed for the determination of stockholders entitled to
receive such distribution.
(5) The reclassification of Common Stock into securities
including other than Common Stock (other than any reclassification upon a
consolidation or merger to which Section 1211 applies) shall be deemed to
involve (a) a distribution of such securities other than Common Stock to all
holders of Common Stock (and the effective date of such reclassification shall
be deemed to be "the date fixed for the determination of stockholders entitled
to receive such distribution" and "the date fixed for such determination" within
the meaning of paragraph (4) of this Section), and (b) a subdivision or
combination, as the case may be, of the number of shares of Common Stock
outstanding immediately prior to such reclassification into the number of shares
of Common Stock outstanding immediately thereafter (and the effective date of
such reclassification shall be deemed to be "the day upon which such subdivision
becomes effective" or "the day upon which such combination becomes effective",
as the case
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may be, and "the day upon which such subdivision or combination becomes
effective," within the meaning of paragraph (3) of this Section).
(6) For the purpose of any computation under paragraphs (2) and
(4) of this Section 1204, the current market price per share of Common Stock on
any date shall be calculated by the Company and be deemed to be the average of
the daily Closing Prices Per Share for the five consecutive Trading Days
selected by the Company commencing not more than 10 Trading Days before, and
ending not later than, the earlier of the day in question and the day before the
"ex date" with respect to the issuance or distribution requiring such
computation. For purposes of this paragraph, the term "ex date," when used with
respect to any issuance or distribution, means the first date on which the
Common Stock trades regular way in the applicable securities market or on the
applicable securities exchange without the right to receive such issuance or
distribution.
(7) No adjustment in the Conversion Price shall be required
unless such adjustment (plus any adjustments not previously made by reason of
this paragraph (7)) would require an increase or decrease of at least one
percent in such Conversion Price; provided, however, that any adjustments which
-------- -------
by reason of this paragraph (7) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Article shall be made to the nearest cent or to the nearest one-
thousandth of a share, as the case may be.
(8) The Company may make such reductions in the Conversion Price,
for the remaining term of any series of Securities or any shorter term, in
addition to those required by paragraphs (1), (2), (3) and (4) of this Section
1204, as it considers to be advisable in order to avoid or diminish any income
tax to any holders of shares of Common Stock resulting from any dividend or
distribution of stock or issuance of rights or warrants to purchase or subscribe
for stock or from any event treated as such for income tax purposes.
Section 1205. Notice of Adjustments of Conversion Price.
-----------------------------------------
Whenever the Conversion Price is adjusted as herein provided:
(1) the Company shall compute the adjusted Conversion Price in
accordance with Section 1204 and shall prepare a certificate signed by the
Treasurer of the Company setting forth the adjusted Conversion Price and showing
in reasonable detail the facts upon which such adjustment is based, and such
certificate shall promptly be filed with the Trustee and with each Conversion
Agent; and
(2) a notice stating that the Conversion Price has been adjusted
and setting forth the adjusted Conversion Price shall forthwith be required, and
as soon as practicable after it is required, such notice shall be provided by
the Company to all Holders in accordance with Section 106.
Neither the Trustee nor any Conversion Agent shall be under any duty or
responsibility with respect to any such certificate or the information and
calculations contained therein, except
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to exhibit the same to any Holder of Securities desiring inspection thereof at
its office during normal business hours.
Section 1206. Notice of Certain Corporate Action.
----------------------------------
In case:
(a) the Company shall declare a dividend (or any other
distribution) on its Common Stock payable otherwise than exclusively in
cash out of the retained earnings of the Company; or
(b) the Company shall authorize the granting to the holders of
its Common Stock of rights, options or warrants to subscribe for or
purchase any shares of capital stock of any class or of any other rights
(other than rights, options or warrants to subscribe for or purchase any
shares of capital stock of any class or of any other rights of a
corporation, a majority of each class of common stock of which is owned,
directly or indirectly, by the Company); or
(c) of any reclassification of the Common Stock of the Company
(other than a subdivision or combination of its outstanding shares of
Common Stock), or of any consolidation or merger to which the Company is
a party and for which approval of the stockholders of the Company is
required pursuant to applicable corporate law, or of the sale or
transfer of all or substantially all of the assets of the Company(; or
(d) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company;
then the Company shall cause to be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 1002, and shall
cause to be provided to all Holders in accordance with Section 106, at least 20
days (or 10 days in any case specified in clause (a) or (b) above) prior to the
applicable record, expiration or effective date hereinafter specified, a notice
stating (y) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights, options or warrants, or, if a record is not to
be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distribution, rights, options or warrants are to be
determined, or (z) the date on which such reclassification, consolidation,
merger, share exchange, conveyance, transfer, sale, lease, dissolution,
liquidation or winding up is expected to become effective, and the date as of
which it is expected that holders of Common Stock of record shall be entitled to
exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, share exchange,
conveyance, transfer, sale, lease, dissolution, liquidation or winding up. If
at the time the Trustee shall not be the Conversion Agent, a copy of such notice
and any notice referred to in the following paragraph shall also forthwith be
filed by the Company with the Trustee.
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Section 1207. Company to Reserve Common Stock.
-------------------------------
The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock, for the
purpose of effecting the conversion of Securities of any series, the full number
of shares of Common Stock then issuable upon the conversion of all Outstanding
Securities of such series.
Section 1208. Taxes on Conversions.
--------------------
The Company will pay any and all stamp and similar taxes and duties that
may be payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto. The Company shall not, however, be
required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock in a name other than that of
the Holder of the Security or Securities to be converted, and no such issue or
delivery shall be made unless and until the Person requesting such issue has
paid to the Company the amount of any such tax, or has established to the
satisfaction of the Company that such tax has been paid.
Section 1209. Covenant as to Common Stock.
---------------------------
The Company agrees that all shares of Common Stock which may be
delivered upon conversion of Securities, upon such delivery, will have been duly
authorized and validly issued and will be fully paid and nonassessable and,
except as provided in Section 1208, the Company will pay all stamp and similar
taxes, liens and charges with respect to the issue thereof.
Section 1210. Cancellation of Converted Securities.
------------------------------------
All Securities delivered for conversion shall be delivered to the
Trustee or the Paying Agent or its agent to be canceled by or at the direction
of the Trustee, which shall dispose of the same as provided in Section 309.
Section 1211. Provision in Case of Consolidation, Merger or Sale of Assets.
------------------------------------------------------------
In case of any consolidation of the Company with, or merger of the
Company into, any other Person, any merger of another Person into the Company
(other than a merger which does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of Common Stock of the Company)
or any sale or transfer of all or substantially all of the assets of the
Company, the Person formed by such consolidation or resulting from such merger
or which acquires such assets, as the case may be, shall execute and deliver to
the Trustee a supplemental indenture providing that the Holder of each Security
then Outstanding shall have the right thereafter, during the period such
Security shall be convertible as specified in Section 1201, to convert such
Security only into the kind and amount of securities, cash and other property
receivable upon such consolidation, merger, sale or transfer by a holder of the
number of shares of Common Stock of the Company into which such Security might
have been converted immediately prior to such consolidation, merger, sale or
transfer. Such supplemental indenture shall provide for adjustments which, for
events subsequent to the effective date of such
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supplemental indenture, shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Article Twelve. If in the case of any such
consolidation, merger, sale or transfer, the stock or other securities and
property receivable by a Holder of the Securities includes stock or other
securities and property of a corporation other than the successor or purchasing
corporation, then such supplemental indenture shall also be executed by such
other corporation and shall contain such additional provisions to protect the
interests of the Holders of the Securities as the Board of Directors of the
Company shall reasonably consider necessary. The above provisions of this
Section 1211 shall similarly apply to successive consolidations, mergers, sales
or transfers. Notice of the execution of such a supplemental indenture shall be
given by the Company to the Holder of each Security as provided in Section 106
promptly upon such execution.
Section 1212. Compliance with Governmental Requirements. The Company
-----------------------------------------
covenants that if any shares of Common Stock required to be reserved for
purposes of conversion of Securities hereunder require registration or listing
with or approval of any governmental authority under any Federal or State law,
pursuant to the Securities Act or the Exchange Act , or any national or regional
securities exchange or other trading market on which the Common Stock is listed
at the time of delivery of any Common Stock, before such shares may be issued
upon conversion, the Company will use its best efforts to cause such shares to
be duly registered, listed or approved, as the case may be.
ARTICLE THIRTEEN
SINKING FUNDS
Section 1301. Applicability of Article.
------------------------
The provisions of this Article Thirteen shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise
permitted or required in or pursuant to this Indenture or any Security of such
series issued pursuant to this Indenture.
The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of such series is herein referred to as an "optional sinking
fund payment." If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 1302. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series and this Indenture.
Section 1302. Satisfaction of Sinking Fund Payments With Securities.
-----------------------------------------------------
The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any series to be made pursuant to the
terms of such
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Securities (1) deliver Outstanding Securities of such series (other than any of
such Securities previously called for redemption or any of such Securities in
respect of which cash shall have been released to the Company), together in the
case of any Bearer Securities of such series with all unmatured Coupons
appertaining thereto, and (2) apply as a credit Securities of such series which
have been redeemed either at the election of the Company pursuant to the terms
of such series of Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, provided that
such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly. If as a result of the delivery or credit
of Securities of any series in lieu of cash payments pursuant to this Section
1302, the principal amount of Securities of such series to be redeemed in order
to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such series for redemption, except upon Company
Request, and such cash payment shall be held by the Trustee or a Paying Agent
and applied to the next succeeding sinking fund payment, provided, however, that
-------- -------
the Trustee or such Paying Agent shall at the request of the Company from time
to time pay over and deliver to the Company any cash payment so being held by
the Trustee or such Paying Agent upon delivery by the Company to the Trustee of
Securities of that series purchased by the Company having an unpaid principal
amount equal to the cash payment requested to be released to the Company.
Section 1303. Redemption of Securities for Sinking Fund.
-----------------------------------------
Not less than 75 days prior to each sinking fund payment date for any
series of Securities, the Company shall deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing mandatory 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 of
Securities of that series pursuant to Section 1302, 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 to be so credited and not
theretofore 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 more than 75 days or less than 45 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.
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ARTICLE FOURTEEN
[INTENTIONALLY OMITTED]
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[INTENTIONALLY OMITTED]
ARTICLE FIFTEEN
REPAYMENT AT THE OPTION OF HOLDERS
Section 1501. Applicability Of Article. Repayment of Securities of any
------------------------
series that are convertible into Common Stock pursuant to Article Twelve before
their Stated Maturity at the option of Holders thereof shall be made in
accordance with the terms of such Securities, if any, and (except as otherwise
specified by the terms of such series established pursuant to Section 301) in
accordance with this Article Fifteen.
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Section 1502. Repayment Of Securities. Securities of any series subject to
-----------------------
repayment in whole or in part (which shall be in a principal amount hereof which
is U.S. $1,000 or an integral multiple thereof) at the option of the Holders
thereof on any Repayment Date (as defined below) will, unless otherwise provided
in the Company's Board Resolutions or Officers' Certificate establishing such
series, be repaid at a price equal to the principal amount thereof, together
with interest and Additional Amounts, if any (the "Repayment Price"), if a
---------------
Repayment Event shall occur or have occurred. For purposes hereof a "Repayment
---------
Event" shall have occurred if the Common Stock (or other equity securities into
- -----
which such series of Securities is then convertible) is neither listed for
trading on a United States national securities exchange, the Nasdaq National
Market nor approved for trading on an established automated over-the-counter
trading market in the United States. The "Repayment Date" with respect to any
--------------
Repayment Event shall be the ninetieth (90th) day after the later of the
Exchange Date or the date a Repayment Event has occurred. The Company covenants
that at or prior to 10:00 a.m., Eastern Time, on the Repayment Date it will
deposit with the Trustee or with a Paying Agent (or, if the Company is acting as
its own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money in Dollars in which the Securities of such series are payable
sufficient to pay the principal (or, if so provided by the terms of the
Securities of any series, a percentage of the principal) of, and (except if the
Repayment Date shall be an Interest Payment Date) accrued interest and
Additional Amounts, if any, on, all the Securities or portions thereof, as the
case may be, to be repaid on such date.
Section 1503. Notice of Repayment. Unless the Company shall have
-------------------
theretofore called for redemption all of the Outstanding Securities of such
series, on or before the 30th day after the later of the Exchange Date and the
occurrence of a Repayment Event, the Company or, at the request and expense of
the Company, the Trustee shall give notice to all Holders of Securities entitled
to repayment pursuant to terms of such Securities established in accordance with
Section 301, in the manner provided in Section 106 (the "Repayment Notice"),
----------------
that a Repayment Event has occurred and of the repayment right set forth herein
arising as a result thereof. If applicable, the Company shall also deliver a
copy of the Repayment Notice to the Trustee.
All notices of repayment shall identify the Securities eligible for
repayment and shall state:
(1) the Repayment Date,
(2) the date by which the repayment right must be exercised,
(3) the Repayment Price,
(4) the Conversion Price then in effect, the date on which the right to
convert the Securities to be repaid will terminate and the place or places where
such Securities, together (in the case of Bearer Securities) with all Coupons
appertaining thereto, if any, maturing after the Repayment Date, may be
surrendered for conversion,
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(5) a description of the procedure which a Holder must follow to
exercise a repayment right and the place or places where such Securities,
together (in the case of Bearer Securities) with all Coupons appertaining
thereto, if any, maturing after the Repayment Date, are to be surrendered for
payment and accrued interest and Additional Amounts, if any, pertaining thereto,
and
(6) that, unless otherwise specified in such notice, Bearer Securities
of any series, if any, surrendered for repayment must be accompanied by all
Coupons maturing subsequent to the Repayment Date or the amount of any such
missing Coupon or Coupons will be deducted from any amount due to such Holder,
unless security or indemnity satisfactory to the Company, the Trustee and any
Paying Agent is furnished.
Section 1504. Exercise Of Option. Securities of any series subject to
------------------
repayment at the option of the Holders thereof will contain an "Option to Elect
Repayment" form substantially in the form of Exhibit E, on the reverse of such
Securities. In order for any Security to be repaid at the option of the Holder,
the Trustee must receive at the Place of Payment therefor specified in the terms
of such Security (or at such other place or places of which the Company shall
from time to time notify the Holders of such Securities) not earlier than 60
days nor later than 30 days prior to the Repayment Date (1) the Security so
providing for such repayment together with the "Option to Elect Repayment" form
on the reverse thereof duly completed by the Holder (or by the Holder's attorney
duly authorized in writing) or (2) a telegram, facsimile transmission or a
letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. ("NASD"), or a commercial bank or trust
company in the United States setting forth the name of the Holder of the
Security, the principal amount of the Security, the principal amount of the
Security to be repaid, the CUSIP number, if any, or a description of the tenor
and terms of the Security, a statement that the option to elect repayment is
being exercised thereby and a guarantee that the Security to be repaid, together
with the duly completed form entitled "Option to Elect Repayment" on the reverse
of the Security, will be received by the Trustee not later than the fifth
Business Day after the date of such telegram, facsimile transmission or letter;
provided, however, that such telegram, facsimile transmission or letter shall
- -------- -------
only be effective if such Security and form duly completed are received by the
Trustee by such fifth Business Day. If less than the entire principal amount of
such Security is to be repaid in accordance with the terms of such Security, the
principal amount of such Security to be repaid, in increments of the minimum
denomination for Securities of such series, and the denomination or
denominations of the Security or Securities to be issued to the Holder for the
portion of the principal amount of such Security surrendered that is not to be
repaid, must be specified. The principal amount of any Security providing for
repayment at the option of the Holder thereof may not be repaid in part if,
following such repayment, the unpaid principal amount of such Security would be
less than the minimum authorized denomination of Securities of the series of
which such Security to be repaid is a part. Except as otherwise may be provided
by the terms of any Security providing for repayment at the option of the Holder
thereof, exercise of the repayment option by the Holder shall be irrevocable
unless waived by the Company.
Section 1505. When Securities Presented For Repayment Become Due And Payable.
--------------------------------------------------------------
If Securities of any series providing for repayment at the option of the Holders
thereof shall have been surrendered as provided in this Article Fifteen and as
provided by or pursuant to the terms
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of such Securities, such Securities or the portions thereof, as the case may be,
to be repaid shall become due and payable and shall be paid by the Company on
the Repayment Date therein specified, and on and after such Repayment Date
(unless the Company shall default in the payment of such Securities on such
Repayment Date) such Securities shall, if the same were interest-bearing, cease
to bear interest and the Coupons for such interest appertaining to any Bearer
Securities so to be repaid, except to the extent provided below, shall be void.
Upon surrender of any such Security for repayment in accordance with such
provisions, together with all Coupons, if any, appertaining thereto maturing
after the Repayment Date, the principal amount of such Security so to be repaid
shall be paid by the Company, together with accrued interest and Additional
Amounts, if any, to the Repayment Date; provided, however, that Coupons whose
-------- -------
Stated Maturity is on or prior to the Repayment Date shall be payable only at
an office or agency located outside the United States (except as otherwise
provided in Section 1002) and, unless otherwise specified pursuant to Section
301, only upon presentation and surrender of such Coupons; and provided,
further, that, in the case of Registered Securities, installments of interest
and Additional Amounts, if any, whose Stated Maturity is on or prior to the
Repayment Date shall be payable (but without interest thereon, unless the
Company shall default in the payment thereof) to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of
business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If any Bearer Security surrendered for repayment shall not be
accompanied by all appurtenant Coupons maturing after the Repayment Date, such
Security may be paid after deducting from the amount payable therefor as
provided in Section 1502 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 as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided, however, that interest represented
-------- -------
by Coupons shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of those Coupons.
If the principal amount of any Security surrendered for repayment shall
not be so repaid upon surrender thereof, such principal amount (together with
interest, if any, thereon accrued to such Repayment Date) shall, until paid,
bear interest from the Repayment Date at the rate of interest or yield to
maturity (in the case of Original Issue Discount Securities ) set forth in such
Security.
Section 1506. Securities Repaid In Part. Upon surrender of any
-------------------------
Registered Security which is to be repaid in part only, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security, without service charge and at the expense of the Company, a new
Registered Security or Securities of the same series, of any authorized
denomination specified by the Holder, in an aggregate principal amount equal to
and in exchange for the portion of the principal of such Security so surrendered
which is not to be repaid.
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ARTICLE SIXTEEN
MEETINGS OF HOLDERS OF SECURITIES
Section 1601. Purposes for Which Meetings May Be Called.
-----------------------------------------
A meeting of Holders of Securities of any series may be called at any
time and from time to time pursuant to this Article Sixteen to make, give or
take any request, demand, authorization, direction, notice, consent, waiver or
other Act provided by this Indenture to be made, given or taken by Holders of
Securities of such series.
Section 1602. Call, Notice and Place of Meetings.
----------------------------------
(1) The Trustee may at any time call a meeting of Holders of
Securities of any series for any purpose specified in Section 1601, to
be held at such time and at such place in the Borough of Manhattan, The
City of New York, or, if Securities of such series have been issued in
whole or in part as Bearer Securities, in London or in such place
outside the United States as the Trustee shall determine. Notice of
every meeting of Holders of Securities of any series, setting forth the
time and the place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be given, in the manner
provided in Section 106, not less than 21 nor more than 180 days prior
to the date fixed for the meeting.
(2) 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 1601, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and
the Trustee shall not have mailed notice of or made the first
publication of the notice of such meeting within 21 days after receipt
of such request (whichever shall be required pursuant to Section 106) 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, or, if
Securities of such series are to be issued as Bearer Securities, in
London for such meeting and may call such meeting for such purposes by
giving notice thereof as provided in clause (1) of this Section.
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Section 1603. Persons Entitled to Vote at Meetings.
------------------------------------
To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.
Section 1604. 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; provided, however, that if any action is
-------- -------
to be taken at such meeting with respect to a consent or waiver which this
Indenture expressly provides may be given by the Holders of at least 66-2/3% in
principal amount of the Outstanding Securities of a series, the Persons entitled
to vote 66-2/3% in principal amount of the Outstanding Securities of such series
constitute a quorum. In the absence of a quorum within 30 minutes after 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 1602(1), except that such notice need be given only once not less than
five days prior to the date on which the meeting is scheduled to be reconvened.
Notice of the reconvening of an adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum.
Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted only by the affirmative vote of the Holders
of a majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 902, any
resolution with respect to any consent or waiver which this Indenture expressly
provides may be given by the Holders of at least 66-2/3% in principal amount of
the Outstanding Securities of a series may be adopted at a meeting or an
adjourned meeting duly convened and at which a quorum is present as aforesaid
only by the affirmative vote of the Holders of 66-2/3% in principal amount of
the Outstanding Securities of that series; and provided, further, that, except
as limited by the proviso to Section 902, any resolution with respect to any
request, demand, authorization, direction, notice, consent, waiver or other Act
which this Indenture expressly provides may be made, given or taken by the
Holders of a specified percentage, which is less than a majority, in principal
amount of the Outstanding Securities of a series may be adopted at a meeting or
an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid
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by the affirmative vote of the Holders of such specified percentage in principal
amount of the Outstanding Securities of such series.
Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the Coupons
appertaining thereto, whether or not such Holders were present or represented at
the meeting.
Section 1605. Determination of Voting Rights; Conduct and Adjournment of
----------------------------------------------------------
Meetings.
- ---------
(1) Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable
for any meeting of Holders of Securities of such series in regard to
proof of the holding of Securities of such series and of the appointment
of proxies and in regard to the appointment and duties of inspectors of
votes, the submission and examination of proxies, certificates and other
evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate. Except as otherwise
permitted or required by any such regulations, the holding of Securities
shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in
Section 104 or by having the signature of the person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized
by Section 104 to certify to the holding of Bearer Securities. Such
regulations may provide that written instruments appointing proxies,
regular on their face, may be presumed valid and genuine without the
proof specified in Section 104 or other proof.
(2) 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
1602(2), 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.
(3) 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
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.
(4) Any meeting of Holders of Securities of any series duly
called pursuant to Section 1602 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.
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Section 1606. 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
triplicate, 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 1602 and, if
applicable, Section 1604. 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 SEVENTEEN
SUBORDINATION OF SECURITIES
Section 1701. Securities Subordinate to Senior Indebtedness.
---------------------------------------------
The Company covenants and agrees, and each Holder of a Security, by his
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article Seventeen, the indebtedness
represented by the Securities and the payment of the principal of, premium, if
any, and interest on each and all of the Securities are hereby expressly made
subordinate and subject in right of payment to the prior payment in full of all
Senior Indebtedness.
Section 1702. Payment Over of Proceeds Upon Dissolution, Etc.
----------------------------------------------
In the event of (a) any insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to the Company or its creditors, as
such, or to its assets, or (b) any liquidation, dissolution or other winding up
of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or
any other marshaling of assets and liabilities of the Company, then and in any
such event the holders of Senior Indebtedness shall be entitled to receive
payment in full of all amounts due or to become due on or in respect of all
Senior Indebtedness, or provision shall be made for such payment in money or
money's worth, before the Holders of the Securities are entitled to receive
107
<PAGE>
any payment on account of principal of, premium, if any, or interest on the
Securities and to that end the holders of Senior Indebtedness shall be entitled
to receive, for application to the payment thereof, any payment or distribution
of any kind or character, whether in cash, property or securities, which may be
payable or deliverable in respect of the Securities in any such case,
proceeding, dissolution, liquidation or other winding up or event.
In the event that, notwithstanding the foregoing provisions of this
Section 1702, the Trustee or the Holder of any Security shall have received any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, before all Senior Indebtedness is paid
in full or payment thereof provided for, and if such fact shall, at or prior to
the time of such payment or distribution, have been made known to the Trustee
or, as the case may be, such Holder, then and in such event such payment or
distribution shall be paid over or delivered forthwith to the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or other
Person making payment or distribution of assets of the Company for application
to the payment of all Senior Indebtedness remaining unpaid, to the extent
necessary to pay all Senior Indebtedness in full, after giving effect to any
concurrent payment or distribution to or for the holder of Senior Indebtedness.
For purposes of this Article only, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment which are subordinated
in right of payment to all Senior Indebtedness which may at the time be
outstanding to substantially the same extent as, or to a greater extent than,
the Securities are so subordinated as provided in this Article Seventeen.
The issuance and delivery of junior securities upon conversion of
Securities in accordance with Article Twelve shall not be deemed to constitute a
payment or distribution on account of the principal of or premium or interest on
Securities or on account of the purchase or other acquisition of securities. For
the purposes of this Section, the term "junior securities" means Common Stock
and any other cash, property or securities into which the Securities are
convertible pursuant to Article Twelve. Nothing contained in this Article or
elsewhere in this Indenture or in the Securities is intended to or shall impair,
as among the Company, its creditors other than holders of Senior Indebtedness
and the Holders of the Securities, the right, which is absolute and
unconditional, of the Holder of any Security to convert such Security in
accordance with Article Twelve.
The consolidation of the Company with, or the merger of the Company
into, another Person or the liquidation or dissolution of the Company following
the conveyance or transfer of all or substantially all of its properties and
assets to another Person upon the terms and conditions set forth in Article
Eight shall not be deemed a dissolution, winding up, liquidation,
reorganization, assignment for the benefit of creditors or marshaling of assets
and liabilities of the Company for the purposes of this Section if the Person
formed by such consolidation or into which the Company is merged or which
acquires by conveyance or transfer all or substantially all of such properties
and assets, as the case may be, shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions set forth in Article Eight.
108
<PAGE>
Section 1703. No Payment When Senior Indebtedness in Default.
----------------------------------------------
Upon the maturity of any Senior Indebtedness of the Company by lapse of
time, acceleration or otherwise, all principal thereof (and premium, if any) and
interest due thereon, including interest thereon accruing after the commencement
of any proceeding of the type referred to in Section 1702 above, and all other
amounts due on or with respect thereto, shall first be paid in full, or such
payment duly provided for in cash, before any payment, directly or indirectly,
is made by the Company on account of the principal of, premium, if any, or
interest and Additional Amounts on the Securities or Coupons. Upon the happening
of an event of default with respect to any Senior Indebtedness of the Company,
as defined therein or in the instrument under which it is outstanding permitting
the holders to accelerate the maturity thereof, then, unless and until such
event of default shall have been cured or waived or shall have ceased to exist,
no payment shall be made by the Company, directly or indirectly, on account of
the principal of, premium, if any, or interest and Additional Amounts on the
Securities or Coupons; provided, however, that nothing in this Section shall
-------- -------
prevent the satisfaction of any sinking fund payment in accordance with Article
Thirteen by delivering and crediting pursuant to Section 1302 Securities which
have been acquired (upon redemption or otherwise) prior to such default in
payment or other default.
In the event that, notwithstanding the foregoing, the Company shall make
any payment to the Trustee or the Holder of any Security prohibited by the
foregoing provisions of this Section, and if such fact shall, at or prior to the
time of such payment, have been made known to the Trustee or, as the case may
be, such Holder, then and in such event such payment shall be paid over and
delivered forthwith to the Company.
The provisions of this Section 1703 shall not apply to any payment with
respect to which Section 1702 would be applicable.
Section 1704. Payment Permitted If No Default.
-------------------------------
Nothing contained in this Article Seventeen or elsewhere in this
Indenture or in any of the Securities shall prevent (a) the Company, at any time
except during the pendency of any case, proceeding, dissolution, liquidation or
other winding up, assignment for the benefit of creditors or other marshaling of
assets and liabilities of the Company referred to in Section 1702 or under the
conditions described in Section 1703, from making payments at any time of
principal of, premium, if any, or interest on the Securities, or (b) the
application by the Trustee of any money deposited with it hereunder to the
payment of or on account of the principal of, premium, if any, or interest on
the Securities or the retention of such payment by the Holders if, at the time
of such application by the Trustee, it did not have knowledge that such payment
would have been prohibited by the provisions of this Article Seventeen.
Section 1705. Subrogation to Rights of Holders of Senior Indebtedness.
-------------------------------------------------------
Subject to the payment in full of all Senior Indebtedness, the Holders
of the Securities shall be subrogated to the extent of the payments or
distributions made to the holders of such
109
<PAGE>
Senior Indebtedness pursuant to the provisions of this Article Seventeen to the
rights of the holders of such Senior Indebtedness to receive payments and
distributions of cash, property and securities applicable to the Senior
Indebtedness until the principal of, premium, if any, and interest on the
Securities shall be paid in full. For purposes of such subrogation, no payments
or distributions to the holders of the Senior Indebtedness of any cash, property
or securities to which the Holders of the Securities or the Trustee would be
entitled except for the provisions of this Article Seventeen, and no payments
over pursuant to the provisions of this Article Seventeen to the holders of
Senior Indebtedness by Holders of the Securities or the Trustee, shall, as among
the Company, its creditors other than holders of Senior Indebtedness and the
Holders of the Securities, be deemed to be a payment or distribution by the
Company to or on account of the Senior Indebtedness.
Section 1706. Provisions Solely to Define Relative Rights.
-------------------------------------------
The provisions of this Article Seventeen are and are intended solely for
the purpose of defining the relative rights of the Holders of the Securities on
the one hand and the holders of Senior Indebtedness on the other hand. Nothing
contained in this Article Seventeen or elsewhere in this Indenture or in the
Securities is intended to or shall (a) impair, as among the Company, its
creditors other than holders of Senior Indebtedness and the Holders of the
Securities, the obligation of the Company, which is absolute and unconditional
(and which, subject to the rights under this Article Seventeen of the holders of
Senior Indebtedness, is intended to rank equally with all other general
unsecured obligations of the Company), to pay to the Holders of the Securities
the principal of, premium, if any, and interest on the Securities as and when
the same shall become due and payable in accordance with their terms; or (b)
affect the relative rights against the Company of the Holders of the Securities
and creditors of the Company other than the holders of Senior Indebtedness; or
(c) prevent the Trustee or the Holder of any Security from exercising all
remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article Seventeen of the
holders of Senior Indebtedness to receive cash, property and securities
otherwise payable or deliverable to the Trustee or such Holder.
Section 1707. Trustee to Effectuate Subordination.
-----------------------------------
Each holder of a Security by his acceptance thereof authorizes and
directs the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article Seventeen
and appoints the Trustee his attorney-in-fact for any and all such purposes.
Section 1708. No Waiver of Subordination Provisions.
-------------------------------------
No right of any present or future holder of any Senior Indebtedness to
enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
non-compliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.
110
<PAGE>
Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness may, at any time and from time to time,
without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to the Holders of the Securities
and without impairing or releasing the subordination provided in this Article
Seventeen or the obligations hereunder of the Holders of the Securities to the
holders of Senior Indebtedness, do any one or more of the following: (i) change
the manner, place or terms of payment or extend the time of payment of, or renew
or alter, Senior Indebtedness, or otherwise amend or supplement in any manner
Senior Indebtedness or any instrument evidencing the same or any agreement under
which Senior Indebtedness is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing Senior
Indebtedness; (iii) release any Person liable in any manner for the collection
of Senior Indebtedness; and (iv) exercise or refrain from exercising any rights
against the Company and any other Person.
Section 1709. Notice to Trustee.
-----------------
The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Securities. Notwithstanding the provisions of this
Article Seventeen or any other provision of this Indenture, the Trustee shall
not be charged with knowledge of the existence of any facts which would prohibit
the making of any payment to or by the Trustee in respect of the Securities,
unless and until the Trustee shall have received written notice thereof from the
Company or a Senior Lender or from any trustee therefor; and, prior to the
receipt of any such written notice, the Trustee, subject to the provisions of
Section 601, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have received the notice
-------- -------
provided for in this Section at least three Business Days prior to the date upon
which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of, premium, if
any, or interest on any Security), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it within three Business Days prior to such date.
Subject to the provisions of Section 601, the Trustee shall be entitled
to conclusively rely on the delivery to it of a written notice by a Person
representing himself to be a Senior Lender (or a trustee therefor) to establish
that such notice has been given by a Senior Lender (or a trustee therefor). In
the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as holders of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article Seventeen, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article Seventeen, 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.
111
<PAGE>
Section 1710. Reliance on Judicial Order or Certificate of Liquidating Agent.
--------------------------------------------------------------
Upon any payment or distribution of assets of the Company referred to in
this Article Seventeen, the Trustee, subject to the provisions of Section 601,
and the Holders of the Securities shall be entitled to conclusively rely upon
any order or decree entered by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
winding up or similar case or proceeding is pending, or a certificate of the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for
the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Trustee or to the Holders of Securities, for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article
Seventeen.
Section 1711. Trustee Not Fiduciary for Holders of Senior Indebtedness.
--------------------------------------------------------
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Indebtedness and shall not be liable to any such holders if it shall
in good faith mistakenly pay over or distribute to Holders of Securities or to
the Company or to any other Person cash, property or securities to which any
holders of Senior Indebtedness shall be entitled by virtue of this Article
Seventeen or otherwise.
Section 1712. Rights of Trustee as Holder of Senior Indebtedness; Preservation
----------------------------------------------------------------
of Trustee's Rights.
- -------------------
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article Seventeen with respect to any Senior
Indebtedness which may at any time be held by it, to the same extent as any
other holder of Senior Indebtedness, and nothing in this Indenture shall deprive
the Trustee of any of its rights as such holder.
Nothing in this Article Seventeen shall apply to claims of, or payments
to, the Trustee under or pursuant to Section 606.
Section 1713. Article Applicable to Paying Agents.
-----------------------------------
In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
-------
as used in this Article shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article Seventeen in addition to or in place of the Trustee;
provided, however, that Section 1712 shall not apply to the Company or any
- -------- -------
Affiliate of the Company if it or such Affiliate acts as Paying Agent.
112
<PAGE>
ARTICLE EIGHTEEN
[INTENTIONALLY OMITTED]
113
<PAGE>
[INTENTIONALLY OMITTED]
114
<PAGE>
[INTENTIONALLY OMITTED]
115
<PAGE>
[INTENTIONALLY OMITTED]
116
<PAGE>
[INTENTIONALLY OMITTED]
117
<PAGE>
[INTENTIONALLY OMITTED]
* * *
This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
[Remainder of page intentionally left blank]
118
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed, all
as of the day and year first above written.
<TABLE>
<S> <C>
THERMO ELECTRON CORPORATION
[SEAL APPEARS HERE] By:
---------------------------------
Name:
Title:
Attest:
- -------------------------
Secretary
BANKERS TRUST COMPANY, as TRUSTEE
By:
---------------------------------
[SEAL APPEARS HERE] Name:
Title:
Attest:
- -------------------------
</TABLE>
119
<PAGE>
STATE OF )
) : SS.:
COUNTY OF )
On the _____ day of ________________, 1997, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is a _____________ of Thermo Electron Corporation, a Delaware
corporation, 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 Corporation's 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
[NOTARIAL SEAL APPEARS HERE]
STATE OF )
) : SS.:
COUNTY OF )
On the ___ day of ________________, 1997, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is a _____________ of Bankers Trust Company, a New York banking
corporation, one of the persons described in and who executed the foregoing
instrument; that he knows the seal of said Corporation; that the seal affixed to
said instrument is such Corporation's 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
[NOTARIAL SEAL APPEARS HERE]
120
<PAGE>
EXHIBIT A
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
NAME OF TRUSTEE,
as Trustee
*Dated:
By:
---------------------------------
Authorized Officer
- -----------------------------------
* For Registered Securities Only
A-1
<PAGE>
Exhibit B
CONVERSION NOTICE
(a) For Bearer Securities:
The undersigned Holder of this Security hereby irrevocably exercises the
option to convert this Security, or any portion of the principal amount hereof
(which is an integral multiple of U.S. $1,000 below designated) into shares of
Common Stock in accordance with the terms of the Indenture referred to in this
Security and directs that such shares, together with a check in payment for any
fractional share and any Securities representing any unconverted principal
amount hereof, be delivered to the undersigned unless a different name has been
indicated below. The address for payment of any such check must be outside the
United States. If shares are to be registered in the name of a Person other than
the undersigned, the undersigned will pay all transfer taxes payable with
respect thereto.
<TABLE>
<S> <C>
Dated:
--------------------------------- ------------------------------------
Signature
[MUST BE GUARANTEED IF STOCK IS TO
BE ISSUED IN A NAME OTHER THAN THE
REGISTERED HOLDER OF THE SECURITY]
If shares are to be registered in the HOLDER
name of and delivered to a Person other
than the Holder, please print such
Person's name and address: Please print name and address of
Holder
- --------------------------------------- ------------------------------------
Name Name
- --------------------------------------- ------------------------------------
Address Address
- --------------------------------------- ------------------------------------
- --------------------------------------- ------------------------------------
- --------------------------------------- ------------------------------------
Social Security or other Taxpayer Social Security or other Taxpayer
Identification Number, if any Identification Number, if any
</TABLE>
B-1
<PAGE>
<TABLE>
<S> <C>
Name and address (outside the United If only a portion of the Securities
States) to where any check referred to is to be converted, please indicate:
in the first paragraph of this
Conversion Notice should be mailed:
1. Principal amount to be converted:
U.S.$___________________
- ---------------------------------------
Name 2. Principal amount and denomination
of Registered Securities
representing unconverted principal
amount to be issued:
- ---------------------------------------
Address
Amount: U.S.$_________________
Denominations:
U.S.$__________
(any integral multiple of U.S.
$1,000)
</TABLE>
B-2
<PAGE>
(b) For Registered Securities:
The undersigned Holder of this Security hereby irrevocably exercises the
option to convert this Security, or any portion of the principal amount hereof
(which is an integral multiple of U.S. $1,000 below designated) into shares of
Common Stock in accordance with the terms of the Indenture referred to in this
Security, and directs that such shares, together with a check in payment for any
fractional share and any Securities representing any unconverted principal
amount hereof, be delivered to and be registered in the name of the undersigned
unless a different name has been indicated below. If shares are to be registered
in the name of a Person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto.
<TABLE>
<S> <C>
Dated:
--------------------------------- ------------------------------------
Signature
[MUST BE GUARANTEED IF STOCK IS TO
BE ISSUED IN A NAME OTHER THAN THE
REGISTERED HOLDER OF THE SECURITY]
- ---------------------------------------
Name
- ---------------------------------------
Address
- ---------------------------------------
Social Security or other Taxpayer
Identification Number, if any
</TABLE>
B-3
<PAGE>
If shares or Registered Securities are to be registered in the name of a Person
other than the Holder, please print such Person's name and address:If only a
portion of the Securities is to be converted, please indicate:
<TABLE>
<S> <C>
1. Principal amount to be converted:
U.S. $___________________
- --------------------------------------- 2. Principal amount and denomination
Name of Registered Securities
representing unconverted principal
amount to be issued.
- ---------------------------------------
Address
Amount: U.S.$_______________
- ---------------------------------------
Social security or other Taxpayer Denominations:
Identification Number, if any U.S.$__________
(any integral multiple of U.S.
$1,000)
- ---------------------------------------
- ---------------------------------------
</TABLE>
B-4
<PAGE>
EXHIBIT C
---------
Form of Certificate of Beneficial Ownership for
Bearer Securities to be Provided to the
Euroclear Operator or to Cedel Bank, societe anonyme
CERTIFICATION
-------------
U.S. $____________
THERMO ELECTRON CORPORATION
[Title of Securities]
(the "Securities")
This is to certify that as of the date hereof and except as set forth
below, $___________ aggregate principal amount of the above-mentioned Securities
held by you for our account are owned or, if this certificate is being delivered
in connection with a payment of interest, were owned, by or on behalf of, (a) a
person (other than a financial institution for purposes of resale during the
restricted period) who is not a United States person; or (b) a United States
person (other than a financial institution for purposes of resale during the
restricted period) who is (i) a foreign branch of a United States financial
institution or (ii) a United States person acquiring such Securities through the
foreign branch of a United States financial institution and who for purposes of
this certification holds such Securities through such financial institution on
the date hereof, and, in the case of either (i) or (ii), such United States
financial institution has agreed, for the benefit of the Company, to comply with
the requirements of Section 165(j)(3)(A), (B) or (C) of the United States
Internal Revenue Code of 1986, as from time to time amended, and the regulations
thereunder; or (c) a financial institution for purposes of resale during the
restricted period and such financial institution has not acquired such
Securities for purposes of resale directly or indirectly to a United States
person or to a person within the United States or its possessions; and the
undersigned has obtained a similar certificate from its member organizations on
which this certificate is based; provided, however, that if the undersigned has
actual knowledge that the information contained in such a certificate is false
(and, absent documentary evidence that the beneficial owner of such Security is
not a United States person, it will be deemed to have actual knowledge that such
certificate is false if it has a United States address for such beneficial
owner, other than a financial institution described above), the undersigned will
not deliver a Security in temporary or definitive bearer form to the person who
signed such certificate notwithstanding the delivery of such certificate to the
undersigned.
C-1
<PAGE>
<TABLE>
<CAPTION>
No. of Certificates Amount
<S> <C>
$1,000 Denomination = $
------------------- ------------------
$10,000 Denomination = $
------------------- ------------------
[Other Authorized
Denomination] ------------------- = $ ------------------
Total Requested = $ /*/
------------------- ------------------
</TABLE>
As used herein, (i) "United States person" means a citizen or resident
of the United States, a corporation, partnership or other entity created or
organized in or under the laws of the United States, an estate the income of
which is subject to United States Federal income taxation regardless of its
source, any trust if a court within the United States is able to exercise
primary supervision of the administration thereof and one or more United States
fiduciaries have the authority to control all substantial decisions thereof, and
any other person deemed a "United States person" or a "U.S. person" under the
Internal Revenue Code of 1986, as amended, (ii) "United States" means the United
States of America (including the States and the District of Columbia) and its
territories and possessions, including Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands, (iii)
"restricted period" means the period described in Section 1.163-5(c)(2)(i)(D)(7)
of the United States Treasury Regulations, and (iv) "financial institution"
means the persons described in Section 1. 165-12(c)(1)(v) of the United States
Treasury Regulations.
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 U.S.$_______________
of such interest in the above Securities in respect of which we are not able to
certify and as to which we understand exchange and delivery of Definitive
Securities cannot be made until we do so certify.
- ----------------------------------
/*/Must equal the amount stated in the first paragraph of this certificate.
C-2
<PAGE>
We understand that this certification is required in connection with
certain tax laws and, if applicable, certain securities 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 or a
copy hereof to any interested party in such proceedings.
Dated: ___________________, ____/**/
[Name]
By:
---------------------------------
Signature
As, or as agent for, the
beneficial owner[s] of the
Securities to which this
certificate relates.
- ---------------------------------
/**/Not earlier than 15 days prior to the earlier of the date that definitive
Bearer Security is delivered and the Exchange Date.
C-3
<PAGE>
EXHIBIT D
---------
Form of Certificate to be Given by
the Euroclear Operator and Cedel Bank, societe anonyme
CERTIFICATION
-------------
U.S. $
THERMO ELECTRON CORPORATION
[Title of Securities]
(the "Securities")
This is to certify that, based solely on certifications we have received
in writing, by tested telex or electronic transmission from member organizations
appearing in our records as persons being entitled to a portion of the principal
amount set forth below or to interest payable on an interest payment date (our
"Member Organizations"), substantially to the effect set forth in the Indenture
relating to the above-captioned Securities, as of the date hereof, U.S.
$_______________ aggregate principal amount of the above-captioned Securities is
owned by persons that are not citizens or residents of the United States, United
States domestic partnerships, United States domestic corporations, any estate
the income of which is subject to United States Federal income taxation
regardless of its source, any trust if a court within the United States is able
to exercise primary supervision of the administration thereof and one or more
United States fiduciaries have the authority to control all substantial
decisions thereof, or any other person deemed a "United States person" or a
"U.S. person" under the Internal Revenue Code of 1986, as amended and the
regulations thereunder ("United States persons").
The following denominations of Bearer Securities are requested:
<TABLE>
<CAPTION>
No. of Certificates Amount
<S> <C>
$1,000 Denomination ___________________ = $ __________________
$10,000 Denomination ___________________ = $ __________________
[Other Authorized ___________________ = $ __________________
Denomination]
Total Requested ___________________ = $ __________________/*/
</TABLE>
We further certify (i) that we are not making available herewith for exchange
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 Organization with respect to any portion of the part
- ------------------------------
/*/Must equal the amount stated in the first paragraph of this certificate.
D-1
<PAGE>
submitted herewith for exchange are no longer true and cannot be relied upon as
of the date hereof. We further certify that interest payable on the interest
payment dates on _________ and _________ will be paid with respect to U.S.
$_____________ principal amount of the Securities with respect to which we have
received from Member Organizations certificates substantially in the form set
out in Exhibit D to the Indenture relating to the Securities that the Securities
(a) are owned by a person (other than a financial institution for purposes of
resale during the restricted period) who is not a United States person; (b) are
owned by a United States person (other than a financial institution for purposes
of resale during the restricted period) who is (i) a foreign branch of a United
States financial institution or (ii) a United States person who acquired such
Securities through the foreign branch of a United States financial institution
and who for purposes of this certification holds such Securities through such
financial institution on the date hereof and, in either case, such United States
financial institution has agreed, for the benefit of the Company, to comply with
the requirements of Section 165(j)(3)(A), (B) or (C) of the United States
Internal Revenue Code of 1986, as from time to time amended, and the regulations
thereunder; or (c) are owned by a financial institution for purposes of resale
during the restricted period and such financial institution has certified that
it has not acquired such Securities for purposes of resale directly or
indirectly to a United States person or to a person within the United States or
its possessions.
To the extent that we have knowledge that any of such certificates from
a Member Organization is false and to the extent that we have not received with
respect to any Securities such certificates from Member Organization, we are not
requesting that payment be made for interest with respect thereto.
We further certify 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 Organization with respect to any interest payment
on any portion of the principal amount of the Securities are no longer true and
cannot be relied upon as of the date hereof. We further certify that under the
rules of the undersigned organization, each Member Organization has agreed that
any electronic certification shall have the effect of a signed certification and
that all certifications shall be retained for at least four calendar years
following the year in which the certifications are received in compliance with
the rules set forth under Treas. Reg. 1.163-5(c)(2)(i)(D)(3)(i).
We undertake that any interest received by us and not paid as provided
above shall be returned to the Trustee for the above-captioned Securities
immediately prior to the expiration of two years after such interest payment
date in order to be repaid by such Trustee to the above issuer at the end of two
years after such interest payment date.
We understand that this certification is required in connection with
certain tax laws and, if applicable, certain securities 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.
D-2
<PAGE>
As used herein, "United States" means the United States of America
(including the States and the District of Columbia); and its territories and
possessions, including Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands. As used herein, "restricted
period" means the period described in Section 1.163-5(c)(2)(i)(D)(7) of the
United States Treasury Regulations and "financial institution" means the persons
described in Section 1.165-12(c)(1)(v) of the United States Treasury
Regulations.
Dated: ____________________, ____/**/
Yours faithfully,
[MORGAN GUARANTY TRUST COMPANY OF
NEW YORK, BRUSSELS OFFICE, AS
OPERATOR OF THE EUROCLEAR SYSTEM]
[CEDEL BANK, SOCIETE ANONYME]/***/
By:
--------------------------------
- -----------------------------------
/**/ To be dated no earlier than the earlier of the date the definitive Bearer
Security is delivered and the Exchange Date.
/***/ Delete as appropriate.
D-3
<PAGE>
EXHIBIT E
---------
OPTION TO ELECT REPAYMENT
UPON A REPAYMENT EVENT
To: Thermo Electron Corporation
The undersigned owner of this Security hereby acknowledges receipt of a
notice from Thermo Electron Corporation (the "Company") as to the occurrence of
a Repayment Event with respect to the Common Stock of the Company and requests
and instructs the Company to repay the entire principal amount of this Security,
or the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture referred to in this
Security at the Repayment Price (or the relevant percentage thereof), together
with accrued interest to such date (except if the Repayment Date shall be an
Interest Payment Date), to the holder hereof.
<TABLE>
<S> <C>
Dated:
---------------------------------
------------------------------------
Signature*(s)
Name:
-------------------------------
Address:
----------------------------
----------------------------
[* Signature Guarantee Required]
Principal amount to be repaid
(if less than all):
$__________
NOTICE: If this Security is issued
in registered form, the above
signatures of the holder(s) hereof
must correspond with the name as it
appears in the Security in every
particular without alteration or
enlargement or any change whatever.
- ----------------------------
Social Security or Other
Taxpayer Identification Number
</TABLE>
E-1
<PAGE>
EXHIBIT 5.1
Thermo Electron Corporation
81 Wyman Street
Waltham, Massachusetts 02254-9046
July 25, 1997
Thermo Electron Corporation
81 Wyman Street
Waltham, Massachusetts 02254-9046
Re: Registration Statement on Form S-3; $1,000,000,000
Aggregate Principal Amount of Securities of Thermo Electron Corporation
------------------------------------------------------------------------
Dear Sirs:
I am General Counsel to Thermo Electron Corporation, a Delaware corporation
(the "Guarantor"), and have acted as its counsel in connection with the
registration under the Securities Act of 1933, as amended (the "Act"), of
$1,000,000,000 aggregate principal amount of (i) common stock, par value $1.00
per share (the "Common Stock"), of the Company and (ii) debt securities of the
Company, which may be either senior debt securities or subordinated debt
securities, consisting of debentures, notes and/or other unsecured evidences of
indebtedness (the "Debt Securities"and, together with the Common Stock, the
"Securities"), on a Registration Statement on Form S-3 (the "Registration
Statement") to be filed today with the Securities and Exchange Commission (the
"Commission"), and the offering of such Securities from time to time, as set
forth in the prospectus contained in the Registration Statement (the
"Prospectus") and as to be set forth in one or more supplements to the
Prospectus (each a "Prospectus Supplement").
I or a member of my staff have reviewed the corporate proceedings taken by
the Company with respect to the authorization of the issuance of the Securities.
I or a member of my staff have also examined and relied upon originals or
copies, certified or otherwise authenticated to my satisfaction, of all
corporate records, documents, agreements or other instruments of the Company,
and have made investigations of law and have discussed with the Company's
representatives questions of fact that I or a member of my staff have deemed
necessary or appropriate.
I express no opinion concerning the laws of any jurisdictions other than
the laws of the United States of America, the Delaware General Corporation Law
and the laws of the Commonwealth of Massachusetts.
Based on the foregoing, I am of the opinion that, when specifically
authorized for issuance by the Company's Board of Directors or an authorized
committee thereof ("Authorizing
<PAGE>
Resolutions"), and when issued as described in the Registration Statement and a
Prospectus Supplement that is consistent with the Authorizing Resolutions, and
upon receipt by the Company of the consideration provided for in the Authorizing
Resolutions, the Securities will be legally issued, fully paid and
nonassessable, and in the case of Debt Securities, binding obligations of the
Company, enforceable against the Company in accordance with their terms, subject
to the effect of bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to or affecting the rights and
remedies of creditors, and the effect of general principles of equity, whether
enforcement is considered in a proceeding in equity or at law, and the
discretion of the court before which any proceeding therefor may be brought.
The foregoing assumes that all requisite steps will be taken to comply with
the requirements of the Act and applicable requirements of state laws regulating
the offer and sale of securities.
To the extent that the obligations of the Company under the Indentures
referred to in the Registration Statement may be dependent on such matters, I
assume for purposes of this opinion that the Trustee is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization; that the Trustee is duly qualified to engage in the activities
contemplated by the Indentures; that the Indentures will have been duly
authorized, executed and delivered by the Trustee and will constitute the
legally valid, binding and enforceable obligations of the Trustee enforceable
against the Trustee in accordance with its terms; that the Trustee is in
compliance, generally and with respect to acting as a Trustee under the
Indentures, with all applicable laws and regulations; and that the Trustee has
the requisite organizational and legal power and authority to perform its
obligations under the Indentures.
I hereby consent to the filing of this opinion as Exhibit 5.1 to the
Registration Statement, including any amendments thereto, and to the use of my
name under the caption "Legal Opinion" in the prospectus constituting a part
thereof.
Sincerely,
/s/ Seth H. Hoogasian
---------------------
Seth H. Hoogasian
General Counsel
SHH/tyo
AA971990039
<PAGE>
Exhibit 12.1
THERMO ELECTRON CORPORATION
Ratio of Earnings to Fixed Charges
(Dollars in thousands)
<TABLE>
<CAPTION>
Three
Months
Ended
Year Ended ---------
------------------------------------------------ March 29,
1992 1993 1994 1995 1996 1997
-------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Income before provision
for income taxes and
cumulative effect of
change in accounting
principle $ 88,673 $110,381 $175,414 $238,293 $301,661 $ 80,455
Less:
Minority interest
in losses of
consolidated
subsidiaries (281) (215) - (789) (1,797) (4,213)
Add:
Minority interest
in consolidated
subsidiaries
with fixed
charges 14,183 21,301 30,962 61,044 74,306 21,275
Interest on
indebtedness
and amortization
of debt expense 24,322 31,736 59,844 77,861 96,695 21,412
Portion of rents
representative
of the interest
factor (1) 15,208 15,621 15,806 16,251 20,856 5,774
-------- -------- -------- -------- -------- --------
Income, As
Adjusted $142,105 $178,824 $282,026 $392,660 $491,721 $124,703
======== ======== ======== ======== ======== ========
Fixed Charges:
Interest on
indebtedness
and amortization
of debt expense $ 24,322 $ 31,736 $ 59,844 $ 77,861 $ 96,695 $ 21,412
Portion of rents
representative
of the interest
factor (1) 15,208 15,621 15,806 16,251 20,856 5,774
Capitalized
interest 7,100 8,400 2,114 - - -
-------- -------- -------- -------- -------- --------
Fixed Charges $ 46,630 $ 55,757 $ 77,764 $ 94,112 $117,551 $ 27,186
======== ======== ======== ======== ======== ========
Ratio of Earnings
to Fixed Charges 3.05 3.21 3.63 4.17 4.18 4.59
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
(1) Portion of rents representative of the interest factor is 1/3 of total
rents.
<PAGE>
Exhibit 23.1
Consent of Independent Public Accountants
-----------------------------------------
To Thermo Electron Corporation:
As independent public accountants, we hereby consent to the incorporation
by reference in this Registration Statement and related Prospectus of Thermo
Electron Corporation on Form S-3 of our reports dated February 12, 1997 (except
with respect to the matter discussed in Note 16 as to which the date is March
12, 1997) included or incorporated by reference in Thermo Electron Corporation's
Annual Report on Form 10-K for the year ended December 28, 1996 and to all
references to our Firm included in this Registration Statement and related
Prospectus.
Arthur Andersen LLP
Boston, Massachusetts
July 18, 1997
<PAGE>
EXHIBIT 25.1
- --------------------------------------------------------------------------------
UNITED STATES
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)
---------
=======================
BANKERS TRUST COMPANY
(Exact name of trustee as specified in its charter)
NEW YORK 13-4941247
(Jurisdiction of Incorporation or (I.R.S. Employer
organization if not a U.S. national bank) Identification no.)
FOUR ALBANY STREET
NEW YORK, NEW YORK 10006
(Address of principal (Zip Code)
executive offices)
Bankers Trust Company
Legal Department
130 Liberty Street, 31st Floor
New York, New York 10006
(212) 250-2201
(Name, address and telephone number of agent for service)
=======================
Thermo Electron Corporation
(Exact name of Registrant as specified in its charter)
Delaware 04-2209186
(State or other jurisdiction of (I.R.S. employer
Incorporation or organization) Identification no.)
Thermo Electron Corporation
81 Wyman Street
P.O. Box 9046
Waltham, Massachusetts 02254-9046
(Address, including zip code of
principal executive offices)
Subordinated Debt Securities
(Title of the indenture securities)
<PAGE>
Item 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.
Name Address
---- -------
Federal Reserve Bank (2nd District) New York, NY
Federal Deposit Insurance Corporation Washington, D.C.
New York State Banking Department Albany, NY
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
Item 2. Affiliations with Obligor.
If the obligor is an affiliate of the Trustee, describe each such
affiliation.
None.
Item 3. -15. Not Applicable
Item 16. List of Exhibits.
Exhibit 1 - Restated Organization Certificate of Bankers Trust
Company dated August 7, 1990, Certificate of Amendment
of the Organization Certificate of Bankers Trust
Company dated June 21, 1995 - Incorporated herein by
reference to Exhibit 1 filed with Form T-1 Statement,
Registration No. 33-65171, and Certificate of Amendment
of the Organization Certificate of Bankers Trust
Company dated March 20, 1996, copy attached.
Exhibit 2 - Certificate of Authority to commence business -
Incorporated herein by reference to Exhibit 2 filed
with Form T-1 Statement, Registration No. 33-21047.
Exhibit 3 - Authorization of the Trustee to exercise corporate
trust powers - Incorporated herein by reference to
Exhibit 2 filed with Form T-1 Statement, Registration
No. 33-21047.
Exhibit 4 - Existing By-Laws of Bankers Trust Company, as amended
on February 18, 1997 - Incorporated herein by reference
to Exhibit 4 filed with Form T-1 Statement,
Registration No. 333-30315-01.
-2-
<PAGE>
Exhibit 5 - Not applicable.
Exhibit 6 - Consent of Bankers Trust Company required by Section
321(b) of the Act. - Incorporated herein by reference to
Exhibit 4 filed with Form T-1 Statement, Registration
No. 22-18864.
Exhibit 7 - A copy of the latest report of condition of Bankers
Trust Company dated as of March 31, 1997.
Exhibit 8 - Not Applicable.
Exhibit 9 - Not Applicable.
-3-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, as
amended, the trustee, Bankers Trust Company, a corporation organized and
existing under the laws of the State of New York, has duly caused this statement
of eligibility to be signed on its behalf by the undersigned, thereunto duly
authorized, all in The City of New York, and State of New York, on the 18th day
of July, 1997.
BANKERS TRUST COMPANY
By:
-----------------------------
Sandra Shaffer
Assistant Vice President
-4-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, as
amended, the trustee, Bankers Trust Company, a corporation organized and
existing under the laws of the State of New York, has duly caused this statement
of eligibility to be signed on its behalf by the undersigned, thereunto duly
authorized, all in The City of New York, and State of New York, on the 18th day
of July, 1997.
BANKERS TRUST COMPANY
By: Sandra Shaffer
-------------------------
Sandra Shaffer
Assistant Vice President
-5-
<PAGE>
Legal Title of Bank: Bankers Trust Company Call Date: 3/31/97
ST-BK: 36-4840 FFIEC 031
Address: 130 Liberty Street Vendor ID: D
CERT: 00623 Page RC-1
City, State ZIP: New York, NY 10006
11
FDIC Certificate No.: | 0 | 0 | 6 | 2 | 3
Consolidated Report of Condition for Insured Commercial
and State-Chartered Savings Banks March 31, 1997
All schedules are to be reported in thousands of dollars. Unless otherwise
indicated, reported the amount outstanding as of the last business day of the
quarter.
Schedule RC--Balance Sheet
<TABLE>
<CAPTION>
-------------------
| C400 |
------------------------
Dollar
- -------------------------------------------------------------------------------
Amounts in Thousands | RCFD Bil Mil Thou |
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
| / / / / / / / / / / / / / / / / / / |
1. Cash and balances due from depository institutions (from Schedule RC-A):
| / / / / / / / / / / / / / / / / / / |
a. Noninterest-bearing balances and currency and coin(1).................
| 0081 1,589,000|1.a.
b. Interest-bearing balances(2)..........................................
| 0071 2,734,000|1.b.
2. Securities:
| / / / / / / / / / / / / / / / / / / |
a. Held-to-maturity securities (from Schedule RC-B, column A)............
| 1754 0|2.a.
b. Available-for-sale securities (from Schedule RC-B, column D)..........
| 1773 4,433,000|2.b.
3. Federal funds sold and securities purchased under agreements to resell
| 1350 26,490,000|3
4. Loans and lease financing receivables:
| / / / / / / / / / / / / / / / / / / |
a. Loans and leases, net of unearned income (from Schedule RC-C) RCFD
2122 15,941,000 | / / / / / / / / / / / / / / / / / / |4.a.
b. LESS: Allowance for loan and lease losses.......................RCFD
3123 708,000 | / / / / / / / / / / / / / / / / / / |4.b.
c. LESS: Allocated transfer risk reserve...........................RCFD
3128 0 | / / / / / / / / / / / / / / / / / / |4.c.
d. Loans and leases, net of unearned income,
| / / / / / / / / / / / / / / / / / / |
allowance, and reserve (item 4.a minus 4.b and 4.c)....................
| 2125 15,233,000|4.d.
5. Assets held in trading accounts ..........................................
| 3545 38,115,000|5.
6. Premises and fixed assets (including capitalized leases)..................
| 2145 924,000|6.
7. Other real estate owned (from Schedule RC-M)..............................
| 2150 188,000|7.
8. Investments in unconsolidated subsidiaries and associated companies (from
Schedule RC-M) | 2130 175,000|8.
9. Customers' liability to this bank on acceptances outstanding..............
| 2155 618,000|9.
10. Intangible assets (from Schedule RC-M)....................................
| 2143 17,000|10.
11. Other assets (from Schedule RC-F).........................................
| 2160 4,424,000|11.
12. Total assets (sum of items 1 through 11)..................................
| 2170 94,940,000|12.
-----------------------------------------
</TABLE>
<PAGE>
- --------------------------
(1) Includes cash items in process of collection and unposted debits.
(2) Includes time certificates of deposit not held in trading accounts.
<PAGE>
Legal Title of Bank: Bankers Trust Company Call
Date: 3/31/97 ST-BK: 36-4840 FFIEC 031
Address: 130 Liberty Street Vendor
ID: D CERT: 00623 Page RC-2
City, State Zip: New York, NY 10006
12
FDIC Certificate No.: | 0 | 0 | 6 | 2 | 3
Schedule RC--Continued
<TABLE>
<CAPTION>
-----------------------------------
Dollar Amounts in
- -------------------------------------------------------------------------------------------
Thousands | / / / / / / / / Bil Mil Thou |
- ----------------------------------------------------------------------
<S> <C>
LIABILITIES
| / / / / / / / / / / / / / / / / / / / / / / / / |
13. Deposits:
| / / / / / / / / / / / / / / / / / / / / / / / |
a. In domestic offices (sum of totals of columns A and C from Schedule RC-E,
part I) | RCON 2200 14,450,000 |13.a.
(1) Noninterest-bearing(1) ............................RCON 6631
2,917,000.......... | / / / / / / / / / / / / / / / / / / / |13.a.(1)
(2) Interest-bearing ...................................RCON 6636
11,533,000......... | / / / / / / / / / / / / / / / / / / / |13.a.(2)
b. In foreign offices, Edge and Agreement subsidiaries, and IBFs (from Schedule
RC-E | / / / / / / / / / / / / / / / / / / / / / / / |
part II)
| RCFN 2200 23,456,000 |13.b.
(1) Noninterest-bearing .................................RCFN 6631 1,062,000
| / / / / / / / / / / / / / / / / / / / / / / / |13.b.(1)
(2) Interest-bearing.....................................RCFN 6636 22,394,000
| / / / / / / / / / / / / / / / / / / / / / / / |13.b.(2)
14. Federal funds purchased and securities sold under agreements to repurchase
|RCFD 2800 15,195,000 |14
15. a. Demand notes issued to the U.S. Treasury
........................................................... | RCON 2840
0 |15.a.
b. Trading liabilities (from Schedule
RC-D)................................................ .| RCFD 3548 18,911,000
|15.b.
16. Other borrowed money: (includes mortgage indebtedness nd obligations under
| / / / / / / / / / / / / / / / / / / / / / / / |
capitalized leases): | / / / / / / / / / / / / / / / / / / / / / / |
a. With original maturity of one year or less
...................................................... | RCFD 2332
7,701,000 |16.a.
b. With original maturity of more than one year
...................................................... | RCFD 2333
4,438,000 |16.b.
17. Not applicable ................................
| |17.
18. Bank's liability on acceptances executed and outstanding
.............................. | RCFD 2920 618,000 |18.
19. Subordinated notes and debentures
........................................................ | RCFD 3200
1,226,000 |19.
20. Other liabilities (from Schedule RC-G)
.......................................................... | RCFD 2930
3,971,000 |20.
21. Total liabilities (sum of items 13 through 20)
....................................................... | RCFD 2948
89,966,000 |21.
| / / / / / / / / / / / / / / / / / / / / / / / |
22. Not applicable
| -22.
EQUITY CAPITAL
| / / / / / / / / / / / / / / / / / / / / / / / |
</TABLE>
<PAGE>
<TABLE>
<S> <C>
23. Perpetual preferred stock and related surplus
............................. | RCFD 3838 600,000
|23.
24. Common stock
................................................................ | RCFD
3230 1,002,000 |24.
25. Surplus (exclude all surplus related to preferred stock)
............................ .| RCFD 3839 540,000 |25.
26. a. Undivided profits and capital reserves
.................................. .| RCFD 3632 3,241,000
|26.a.
b. Net unrealized holding gains (losses) on available-for-sale securities
................... . | RCFD 8434 ( 31,000) |26.b.
27. Cumulative foreign currency translation adjustments
................................................ | RCFD 3284
( 378,000) |27.
28. Total equity capital (sum of items 23 through 27)
..................................................... | RCFD 3210
4,974,000 |28.
29. Total liabilities, limited-life preferred stock, and equity capital (sum of items 21,
22, | / / / / / / / / / / / / / / / / / / / / / / / |
and 28)..............................................................................
| RCFD 3300 94,940,000 |29.
---------------------------------------------------------
Memorandum
To be reported only with the March Report of Condition.
1. Indicate in the box at the right the number of the statement below that best
describes the
most comprehensive level of auditing work performed for the bank by
independent external Number
-------------------
auditors as of any date during 1996
.....................................................| RCFD 6724
-------------------------------
1 | M.1
- ------------
</TABLE>
<TABLE>
<S> <C> <C>
1 = Independent audit of the bank conducted in accordance 4 =
Directors' examination of the bank performed by other
with generally accepted auditing standards by a certified
external auditors (may be required by state chartering
public accounting firm which submits a report on the bank
authority)
2 = Independent audit of the bank's parent holding company 5 =
Review of the bank's financial statements by external
conducted in accordance with generally accepted auditing
auditors
standards by a certified public accounting firm which 6 =
Compilation of the bank's financial statements by external
submits a report on the consolidated holding company
auditors
(but not on the bank separately) 7 =
Other audit procedures (excluding tax preparation work)
3 = Directors' examination of the bank conducted in 8 =
No external audit work
accordance with generally accepted auditing standards
by a certified public accounting firm (may be required by
state chartering authority)
</TABLE>
- ----------------------
(1) Including total demand deposits and noninterest-bearing time and savings
deposits.
<PAGE>
State of New York,
Banking Department
I, PETER M. PHILBIN, Deputy Superintendent of Bank of the State of New
York, DO HEREBY APPROVE the annexed Certificate entitled "CERTIFICATE OF
AMENDMENT OF THE ORGANIZATION CERTIFICATE OF BANKERS TRUST COMPANY Under Section
8005 of the Banking Law," dated March 20, 1996, providing for an increase in
authorized capital stock from $1,351,666,670 consisting of 85,166,667 shares
with a par value of $10 each designated as Common Stock and 500 shares with a
par value of $1,000,000 each designated as Series Preferred Stock to
$1,501,666,670 consisting of 100,166,667 shares with a par value of $10 each
designated as Common Stock and 500 shares with a par value of $1,000,000 each
designated as Series Preferred Stock.
Witness, my hand and official seal of the Banking Department at the City of New
York,
this 21st day of March in the Year of our Lord one
------ -------
thousand nine hundred and ninety-six.
Peter M. Philbin
---------------------------------
Deputy Superintendent of Banks
<PAGE>
CERTIFICATE OF AMENDMENT
OF THE
ORGANIZATION CERTIFICATE
OF BANKERS TRUST
Under Section 8005 of the Banking Law
-----------------------------
We, James T. Byrne, Jr. and Lea Lahtinen, being respectively a Managing
Director and an Assistant Secretary of Bankers Trust Company, do hereby certify:
1. The name of the corporation is Bankers Trust Company.
2. The organization certificate of said corporation was filed by the
Superintendent of Banks on the 5th of march, 1903.
3. The organization certificate as heretofore amended is hereby amended
to increase the aggregate number of shares which the corporation shall have
authority to issue and to increase the amount of its authorized capital stock in
conformity therewith.
4. Article III of the organization certificate with reference to the
authorized capital stock, the number of shares into which the capital stock
shall be divided, the par value of the shares and the capital stock outstanding,
which reads as follows:
"III. The amount of capital stock which the corporation is hereafter to
have is One Billion, Three Hundred Fifty One Million, Six Hundred Sixty-Six
Thousand, Six Hundred Seventy Dollars ($1,351,666,670), divided into
Eighty-Five Million, One Hundred Sixty-Six Thousand, Six Hundred Sixty-
Seven (85,166,667) shares with a par value of $10 each designated as Common
Stock and 500 shares with a par value of One Million Dollars ($1,000,000)
each designated as Series Preferred Stock."
is hereby amended to read as follows:
"III. The amount of capital stock which the corporation is hereafter to
have is One Billion, Five Hundred One Million, Six Hundred Sixty-Six
Thousand, Six Hundred Seventy Dollars ($1,501,666,670), divided into One
Hundred Million, One Hundred Sixty Six Thousand, Six Hundred Sixty-Seven
(100,166,667) shares with a par value of $10 each designated as Common
Stock and 500 shares with a par value of One Million Dollars ($1,000,000)
each designated as Series Preferred Stock."
<PAGE>
6. The foregoing amendment of the organization certificate was authorized
by unanimous written consent signed by the holder of all outstanding shares
entitled to vote thereon.
IN WITNESS WHEREOF, we have made and subscribed this certificate this 20th
day of March , 1996.
James T. Byrne, Jr.
---------------------------
James T. Byrne, Jr.
Managing Director
Lea Lahtinen
---------------------------
Lea Lahtinen
Assistant Secretary
State of New York )
) ss:
County of New York )
Lea Lahtinen, being fully sworn, deposes and says that she is an Assistant
Secretary of Bankers Trust Company, the corporation described in the foregoing
certificate; that she has read the foregoing certificate and knows the contents
thereof, and that the statements herein contained are true.
Lea Lahtinen
----------------------
Lea Lahtinen
Sworn to before me this 20th day
of March, 1996.
Sandra L. West
- ------------------------
Notary Public
SANDRA L. WEST Counterpart filed in the
Notary Public State of New York Office of the Superintendent of
No. 31-4942101 Banks, State of New York,
Qualified in New York County This 21st day of March, 1996
Commission Expires September 19, 1996
