EXHIBIT 4.6
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LYONDELL PETROCHEMICAL COMPANY
AND
TEXAS COMMERCE BANK NATIONAL ASSOCIATION, TRUSTEE
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INDENTURE
Dated as of January 29, 1996
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TIE-SHEET
showing the location in the Indenture dated as of January 29, 1996, between
Lyondell Petrochemical Company and Texas Commerce Bank National Association, as
Trustee of certain provisions of the Trust Indenture Act of 1939 (including
cross-references to the provisions of Sections 310 to 318(a) which, pursuant to
Section 318(c) of the Trust Indenture Act of 1939, as amended by the Trust
Indenture Reform Act of 1990, are part of and govern such Indenture Provisions
whether or not physically contained therein):
Section of
Section of Act Indenture Provision
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310 (a) (1), (2) and (5)...............................8.09
310 (a) (3) and (4)....................................Not applicable
310 (b)................................................8.08 and 8.10 (b)
310 (c)................................................Not applicable
311 (a) and (b)........................................8.13
311 (c)................................................Not applicable
312 (a)................................................6.01 and 6.02 (a)
312 (b) and (c)........................................6.02 (b) and (c)
313 (a)................................................6.04 (a)
313 (b) (1)............................................Not applicable
313 (b) (2)............................................6.04 (b)
313 (c)................................................6.04 (c)
313 (d)................................................6.04 (d)
314 (a) (1), (2) and (3)...............................6.03
314 (a) (4)............................................5.08
314 (b)................................................Not applicable
314 (c) (1) and (2)....................................16.07
314 (c) (3)............................................Not applicable
314 (d)................................................Not applicable
314 (e)................................................16.07
315 (a), (c) and (d)...................................8.01
315 (b)................................................7.08
315 (e)................................................7.09
316 (a) (1)............................................7.01 and 7.07
316 (a) (2)............................................Omitted
316 (a) last sentence..................................9.04
316 (b)................................................7.04
317 (a)................................................7.02
317 (b)................................................5.07
318 (a)................................................16.09
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This tie-sheet is not part of the Indenture as executed
TABLE OF CONTENTS
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PAGE
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PARTIES........................................................1
RECITALS.......................................................1
ARTICLE ONE
DEFINITIONS
SECTION 1.01
Definitions 1
Authorized Newspaper............................1
Board of Directors..............................1
Business Day....................................1
Company.........................................2
Consolidated Net Tangible Assets................2
Coupon Security.................................2
Dollar..........................................2
Event of Default................................2
Fully Registered Security.......................2
Holder..........................................2
Indenture.......................................2
Interest........................................3
Interest Payment Date...........................3
Maturity........................................3
Officers' Certificate...........................3
Opinion of Counsel..............................3
Original Issue Date.............................3
Original Issue Discount Security................3
Person..........................................3
Place of Payment................................4
Principal Office................................4
Registered Coupon Security......................4
Registered Holder...............................4
Registered Security.............................4
Responsible Officer.............................4
Restricted Property.............................4
Restricted Subsidiary...........................4
Securities and Exchange Commission..............5
Security or Securities Outstanding..............5
Stated Maturity.................................5
Subsidiary......................................5
Trustee.........................................6
Trust Indenture Act of 1939.....................6
ii
ARTICLE TWO
THE SECURITIES AND SECURITY FORMS
PAGE
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SECTION 2.01 Amount Unlimited; Issuable in Series.......... 6
SECTION 2.02 Form of Securities and of Trustee's
Certificate of Authentication................ 7
SECTION 2.03 Global Securities............................. 8
SECTION 2.04 Denomination, Authentication and
Dating of Securities......................... 8
SECTION 2.05 Execution of Securities.......................10
SECTION 2.06 Registration, Registration of Transfer
and Exchange.................................10
SECTION 2.07 Mutilated, Destroyed, Lost or Stolen
Securities...................................11
SECTION 2.08 Temporary Securities..........................12
SECTION 2.09 Cancellation of Securities Paid, etc..........12
ARTICLE THREE
REDEMPTION OF SECURITIES
SECTION 3.01 Applicability of Article......................12
SECTION 3.02 Notice of Redemption; Selection of
Securities...................................12
SECTION 3.03 Payment of Securities Called for
Redemption...................................13
ARTICLE FOUR
SINKING FUNDS
SECTION 4.01 Applicability of Article......................14
SECTION 4.02 Satisfaction of Mandatory Sinking Fund
Payments with Securities.....................14
SECTION 4.03 Redemption of Securities for Sinking
Fund.........................................14
iii
ARTICLE FIVE
PARTICULAR COVENANTS OF THE COMPANY
PAGE
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SECTION 5.01 Payment of Principal, Premium and
Interest.....................................15
SECTION 5.02 Offices for Notices and Payments, etc.........15
SECTION 5.03 Limitation on Liens...........................16
SECTION 5.04 Limitation on Sale and Lease Back.............17
SECTION 5.05 Definition of "Value".........................17
SECTION 5.06 Appointments to Fill Vacancies in
Trustee's Office.............................17
SECTION 5.07 Provision as to Paying Agent..................17
SECTION 5.08 Annual Certificate to Trustee.................18
ARTICLE SIX
HOLDERS LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE
SECTION 6.01 Holders Lists.................................18
SECTION 6.02 Preservation and Disclosure of Lists..........19
SECTION 6.03 Reports by the Company........................20
SECTION 6.04 Reports by the Trustee........................20
ARTICLE SEVEN
REMEDIES OF THE TRUSTEE AND HOLDERS
ON EVENT OF DEFAULT
SECTION 7.01 Events of Default.............................21
SECTION 7.02 Payment of Securities on Default;
Suit Therefor................................23
SECTION 7.03 Application of Moneys Collected by
Trustee......................................24
SECTION 7.04 Proceedings by Holders........................25
SECTION 7.05 Proceedings by Trustee........................25
SECTION 7.06 Remedies Cumulative and Continuing............26
SECTION 7.07 Direction of Proceedings and Waiver of
Defaults by Majority of Holders..............26
SECTION 7.08 Notice of Defaults............................26
SECTION 7.09 Undertaking to Pay Costs......................27
iv
ARTICLE EIGHT
CONCERNING THE TRUSTEE
PAGE
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SECTION 8.01 Duties and Responsibilities of Trustee..............27
SECTION 8.02 Reliance on Documents, Opinions, etc................28
SECTION 8.03 No Responsibility for Recitals, etc.................29
SECTION 8.04 Trustee, Paying Agent or Registrar May
Own Securities.....................................29
SECTION 8.05 Moneys to be Held in Trust..........................29
SECTION 8.06 Compensation and Expenses of Trustee................29
SECTION 8.07 Officers' Certificate as Evidence...................29
SECTION 8.08 Qualification of Trustee; Conflicting Interests.....29
SECTION 8.09 Eligibility of Trustee..............................30
SECTION 8.10 Resignation or Removal of Trustee...................30
SECTION 8.11 Acceptance by Successor Trustee.....................31
SECTION 8.12 Succession by Merger, etc...........................32
SECTION 8.13 Limitation on Rights of Trustee as a
Creditor...........................................32
ARTICLE NINE
CONCERNING THE HOLDERS
SECTION 9.01 Action By Holders...................................35
SECTION 9.02 Proof of Execution by Holders.......................35
SECTION 9.03 Who Deemed Absolute Owners..........................35
SECTION 9.04 Company-Owned Securities Disregarded................36
SECTION 9.05 Revocation of Consents; Future Holders
Bound..............................................36
ARTICLE TEN
HOLDERS' MEETINGS
SECTION 10.01 Purposes of Meetings................................37
SECTION 10.02 Call of Meetings by Trustee.........................37
SECTION 10.03 Call of Meetings by Company or Holders..............37
SECTION 10.04 Qualification for Voting............................38
SECTION 10.05 Regulations.........................................38
SECTION 10.06 Voting..............................................38
SECTION 10.07 No Delay of Rights by Meeting.......................39
v
ARTICLE ELEVEN
SUPPLEMENTAL INDENTURES
PAGE
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SECTION 11.01 Supplemental Indentures without Consent
of Holders.........................................39
SECTION 11.02 Supplemental Indentures with Consent of
Holders of a Series................................40
SECTION 11.03 Compliance with Trust Indenture Act;
Effect of Supplemental Indentures..................41
SECTION 11.04 Notation on Securities..............................41
SECTION 11.05 Evidence of Compliance of Supplemental
Indenture to be Furnished Trustee..................41
ARTICLE TWELVE
CONSOLIDATION, MERGER AND SALE
SECTION 12.01 Company May Consolidate, etc, on Certain
Terms..............................................41
SECTION 12.02 Securities to be Secured in Certain
Events.............................................42
SECTION 12.03 Successor Corporation to be Substituted.............42
SECTION 12.04 Opinion of Counsel to be Given Trustee..............42
ARTICLE THIRTEEN
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 13.01 Discharge of Indenture..............................42
SECTION 13.02 Deposited Moneys to be Held in Trust by
Trustee............................................43
SECTION 13.03 Paying Agent to Repay Moneys Held...................43
SECTION 13.04 Return of Unclaimed Moneys..........................43
vi
ARTICLE FOURTEEN
DEFEASANCE
PAGE
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SECTION 14.01 Applicability of Article............................43
SECTION 14.02 Defeasance Upon Deposit of Moneys or
U.S. Government Obligations........................43
SECTION 14.03 Deposited Moneys and U.S. Government
Obligations to be held in Trust....................45
SECTION 14.04 Repayment to Company................................45
SECTION 14.05 Reinstatement.......................................45
ARTICLE FIFTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 15.01 Indenture and Securities Solely
Corporate Obligations..............................45
ARTICLE SIXTEEN
MISCELLANEOUS PROVISIONS
SECTION 16.01 Provisions Binding on Company's
Successors.........................................46
SECTION 16.02 Benefits of Indenture Restricted to
Parties and Holders................................46
SECTION 16.03 Official Acts by Successor Corporation..............46
SECTION 16.04 Addresses for Notices, etc..........................46
SECTION 16.05 Notices to Holders; Waiver..........................46
SECTION 16.06 Governing Law.......................................47
SECTION 16.07 Evidence of Compliance with Conditions
Precedent..........................................47
SECTION 16.08 Legal Holidays......................................47
SECTION 16.09 Trust Indenture Act to Control......................47
SECTION 16.10 No Security Interest Created........................47
SECTION 16.11 Table of Contents, Headings, etc....................47
SECTION 16.12 Execution in Counterparts...........................47
SECTION 16.13 Acceptance of Trust.................................47
INDENTURE, dated as of January 29, 1996, between LYONDELL PETROCHEMICAL
COMPANY, a corporation duly organized and existing under the laws of the State
of Delaware (the "Company"), and TEXAS COMMERCE BANK NATIONAL ASSOCIATION, a
national banking association, as trustee (the "Trustee").
RECITAL OF THE COMPANY
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness to be issued in one or more
series (the "Securities"), as provided herein.
AGREEMENT
For and in consideration of the premises and the purchase of the Securities
by the Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders of the Securities, as follows:
ARTICLE ONE
DEFINITIONS
SECTION 1.01. Definitions. The terms defined in this Section 1.01 (except
as herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section 1.01. All other
terms used in this Indenture which are defined in the Trust Indenture Act of
1939 or which are by reference therein defined in the Securities Act of 1933, as
amended, or by Securities and Exchange Commission rule under the Trust Indenture
Act of 1939 (except as herein otherwise expressly provided or unless the context
otherwise requires) shall have the meanings assigned to such terms in said Trust
Indenture Act, rule thereunder or in said Securities Act as in force at the date
of the execution of this Indenture.
Authorized Newspaper:
The term "Authorized Newspaper" shall mean The Wall Street Journal or other
newspaper of general circulation in The City of New York (and, if any Place of
Payment is not in The City of New York, in each such Place of Payment) printed
in the English language and customarily published on each Business Day, whether
or not published on Saturdays, Sundays or holidays. Whenever successive weekly
publications in an Authorized Newspaper are authorized hereunder, they may be
made (unless otherwise expressly provided herein) on the same or different days
of the week and in the same or different Authorized Newspapers.
Board of Directors:
The term "Board of Directors" shall mean the Board of Directors of the
Company or any committee of such Board duly authorized to act for such Board.
Business Day:
The term "Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which any banking institutions in that Place of
Payment are authorized or obligated by law to close.
2
Company:
The term "Company" shall mean Lyondell Petrochemical Company, a Delaware
corporation, and subject to the provisions of Article Twelve shall include its
successors and assigns.
Consolidated Net Tangible Assets:
The term "Consolidated Net Tangible Assets" shall mean the total amount of
assets (less applicable reserves and other properly deductible items) after
deducting therefrom (a) all current liabilities (excluding any thereof which are
by their terms extendible or renewable at the option of the obligor thereon to a
time more than 12 months after the time as of which the amount thereof is being
computed), and (b) all goodwill, trade names, trademarks, patents, purchased
technology, unamortized debt discount and other like intangible assets, all as
set forth on the most recent quarterly balance sheet of the Company and its
consolidated Subsidiaries and computed in accordance with generally accepted
accounting principles.
Coupon Security:
The term "Coupon Security" shall mean any Security authenticated and
delivered with one or more interest coupons appertaining thereto.
Dollar:
The term "Dollar" or "$" means the coin or currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.
Event of Default:
The term "Event of Default" shall mean any event specified in Section 7.01,
continued for the period of time, if any, and after the giving of the notice, if
any, therein designated.
Fully Registered Security:
The term "Fully Registered Security" shall mean any Security registered as
to principal and interest, if any.
Holder:
The term "Holder," "Holder of Securities," or other similar terms, when
used with respect to any Security shall mean a Registered Holder of a Registered
Security and when used with respect to any coupon, means the bearer thereof.
Indenture:
The term "Indenture" shall mean this instrument as originally executed or,
if amended or supplemented as herein provided, as so amended or supplemented,
and shall include the form and terms of particular series of Securities
established as contemplated hereunder; provided, however, that if at any time
more than one Person is acting as Trustee under this instrument, "Indenture"
shall mean with respect to any one or more series of Securities for which such
Person is Trustee, this instrument as originally executed or as it may from time
to time be supplemented or amended by one or more indentures supplemental hereto
entered into pursuant to the applicable provisions hereof and shall include the
terms of a particular series of Securities established as contemplated by
Section 2.01, exclusive, however, of any provisions or terms which relate solely
to one or more series of Securities for which such Person is not Trustee,
regardless of when such terms or provisions were adopted, and exclusive of
3
any provisions or terms adopted by means of one or more indentures supplemental
hereto executed and delivered after such Person had become such Trustee but to
which such Person, as such Trustee, was not a party.
Interest:
The term "interest" when used with respect to any series of non-interest
bearing Securities, shall mean interest payable after Maturity.
Interest Payment Date:
The term "Interest Payment Date," with respect to any Security, means the
Stated Maturity of an installment of interest on such Security.
Maturity:
The term "Maturity," when used with respect to any Security, means the date
on which the principal of such Security becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption, repayment at the option of the Holder or
otherwise.
Officers' Certificate:
The term "Officers' Certificate" shall mean a certificate signed by the
Chairman, the President or the Senior Vice President, Chief Financial Officer
and Treasurer, and by one of its Assistant Treasurers, and delivered to the
Trustee. If applicable, each certificate shall include the statements provided
for in Section 16.07 if and to the extent required by the provisions of such
Section.
Opinion of Counsel:
The term "Opinion of Counsel" shall mean an opinion in writing signed by
legal counsel, who may be an employee of, or of counsel to the Company, or may
be other counsel reasonably acceptable to Trustee. Each such opinion shall
include the statements provided for in Section 16.07 if and to the extent
required by the provisions of such Section.
Original Issue Date:
The term "original issue date" of any Security (or portion thereof) shall
mean the earlier of (a) the date of such Security or (b) the date of any
Security (or portion thereof) for which such Security was issued (directly or
indirectly) on registration of transfer, exchange or substitution.
Original Issue Discount Security:
The term "Original Issue Discount Security" shall mean (a) a Security which
has been issued at an issue price lower than the principal amount thereof and
which provides that upon redemption or acceleration of the maturity thereof an
amount less than the principal amount thereof shall become due and payable and
(b) any other Security which for United States federal income tax purposes would
be considered an original issue discount security.
Person:
The term "Person" shall mean any individual, corporation, partnership,
joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
4
Place of Payment:
The term "Place of Payment" for a series of Securities shall mean the Place
or Places of Payment designated for each series pursuant to Sections 2.01(5)
and 5.02.
Principal Office:
The term "Principal Office" shall mean the principal corporate trust
office of the Trustee in Houston, at which at any particular time its
corporate trust business shall be administered and which on the date hereof is
at 000 Xxxxxx Xxxxxx 0xx Xxxxx, Xxxxxxx, Xxxxx 00000, Attention: Corporate Trust
Department, (except that with respect to presentation of Securities for payment
and transfer, such term shall mean the office or agency of the Trustee in the
Borough of Manhattan, The City of New York, New York at which at any particular
time its corporate agency business shall be conducted, which on the date hereof
is at 00 Xxxxx Xxxxxx, Xxxxx Xxxxxxxx, Xxxx 000, Windows 20 and 00, Xxx Xxxx,
Xxx Xxxx, 00000).
Registered Coupon Security:
The term "Registered Coupon Security" shall mean any Coupon Security
registered as to principal only.
Registered Holder:
The term "Registered Holder," when used with respect to a Registered
Security, shall mean the person in whose name such Security is registered on the
books of the Company kept for that purpose in accordance with the terms hereof.
Registered Security:
The term "Registered Security" shall mean any Security registered on the
books of the Company.
Responsible Officer:
The term "Responsible Officer" shall mean any officer to whom any corporate
trust matter is referred because of his knowledge of and familiarity with the
particular subject.
Restricted Property:
The term "Restricted Property" shall mean:
(a) any plant for the production of petrochemicals owned by the Company or
a Subsidiary, except (1) related facilities which in the opinion of the Board of
Directors are transportation or marketing facilities, and (2) any plant for the
production of petrochemicals which in the opinion of the Board of Directors is
not a principal plant of the Company and its Subsidiaries; and
(b) any shares of capital stock or indebtedness of a Restricted Subsidiary
owned by the Company or a Subsidiary.
Restricted Subsidiary:
The term "Restricted Subsidiary" shall mean any Subsidiary which owns any
Restricted Property.
5
Securities and Exchange Commission:
The term "Securities and Exchange Commission" shall mean the Securities and
Exchange Commission, as from time to time constituted, created under the
Securities Exchange Act of 1934, or if at any time after the execution and
delivery of this Indenture the Securities and Exchange Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act of 1939, then the body performing such duties at such time.
Security or Securities Outstanding:
The terms "Security" or "Securities" shall have the meaning stated in the
recital of this Indenture and shall mean any Security or Securities, as the case
may be, authenticated and delivered pursuant to this Indenture (including,
without limitation, the Securities of any series issued in temporary or
permanent global form pursuant to Section 2.01(12)); provided, however, that if
at any time there is more than one Person acting as Trustee under this
instrument, "Securities" with respect to the Indenture as to which such Person
is Trustee shall have the meaning stated in the recital and shall more
particularly mean Securities authenticated and delivered pursuant to this
instrument, exclusive of Securities of any series as to which such Person is not
Trustee.
The term "outstanding," when used with reference to Securities or
Securities of any series shall, subject to the provisions of Section 9.04, mean,
as of any particular time, all such Securities authenticated and delivered by
the Trustee pursuant to this Indenture, except:
(a) such Securities theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;
(b) such Securities, or portions thereof, for the payment or redemption of
which moneys (or U.S. Government Obligations as provided in Article Fourteen) in
the necessary amount shall have been deposited in trust with the Trustee or with
any paying agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own paying
agent), provided that if such Securities are to be redeemed prior to the
maturity thereof, notice of such redemption shall have been mailed as provided
in Article Three, or provision satisfactory to the Trustee shall have been made
for mailing such notice; and
(c) Securities in lieu of or in substitution for which other Securities
shall have been authenticated and delivered pursuant to the terms of
Section 2.07 except to the extent that a bona fide holder in due course of any
such Securities shall have presented proof satisfactory to the Trustee that such
holder is a bona fide holder in due course of any such Securities.
In determining whether the Holders of the requisite principal amount of
outstanding Securities of a series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration of the Maturity thereof determined in accordance with
Section 7.01.
Stated Maturity:
The term "Stated Maturity" when used with respect to any Security or any
installment of interest thereon shall mean the date specified in such Security
as the fixed date on which the principal of such Security or such installment of
interest is due and payable.
Subsidiary:
The term "Subsidiary" shall mean any corporation at least a majority of the
outstanding securities of which having ordinary voting power to elect a majority
of the board of directors of such corporation (whether or not any
6
other class of securities has or might have voting power by reason of the
happening of a contingency) is at the time owned or controlled directly or
indirectly by the Company or one or more Subsidiaries or by the Company and one
or more Subsidiaries. Without in any other way limiting the foregoing,
LYONDELL-CITGO Refining Company Ltd. shall not be deemed to be a subsidiary.
Trustee:
The term "Trustee" shall mean Texas Commerce Bank National Association
until another or a successor trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter shall mean and 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 only the Trustee with respect to the
Securities of that series.
Trust Indenture Act of 1939:
The term "Trust Indenture Act of 1939" shall mean the Trust Indenture Act
of 1939, as amended by the Trust Indenture Reform Act of 1990, as it was in
force at the date of execution of this Indenture, except as provided in
Section 11.03.
ARTICLE TWO
THE SECURITIES AND SECURITY FORMS
SECTION 2.01. Amount Unlimited; Issuable in Series. The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited. Securities may be issued in one or more series.
The terms and conditions listed below, as applicable, of any series of
Securities shall be established (i) in an indenture supplemental hereto, (ii) in
a resolution of the Board of Directors or (iii) by an Officers' Certificate
authorized pursuant to a resolution of the Board of Directors:
(1) the title of the Securities of the series (which shall
distinguish the Securities of the series from Securities of all other
series);
(2) any limit upon the aggregate principal amount of the Securities
of the series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Sections 2.06, 2.07, 2.08, 3.03 or 11.04);
(3) the date or dates on which the principal and premium, if any, of
the Securities of the series are payable;
(4) the rate or rates at which the Securities of the series shall
bear interest, if any, or the formula by which interest shall be
calculated, the date or dates from which such interest shall accrue, the
interest payment dates on which such interest shall be payable and the
record dates for the determination of Holders thereof to whom interest is
payable;
7
(5) the place or places where the principal of, and premium, if any,
and any interest on Securities of the series shall be payable (herein
called the "Place of Payment"); provided, however, that payment of
principal, premium, if any, and interest with respect to Registered
Securities may be made as provided in Section 5.02;
(6) the price or prices at which, the period or periods within which
and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company, pursuant to
any sinking fund or otherwise;
(7) the obligation, if any, of the Company to redeem, purchase or
repay Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the price or prices at
which and the period or periods within which and the terms and conditions
upon which Securities of the series shall be redeemed, purchased or repaid,
in whole or in part, pursuant to such obligation;
(8) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Securities of the series shall be
issuable;
(9) if other than the principal amount at Stated Maturity thereof,
the portion of the principal amount of Securities of the series which shall
be payable upon declaration of acceleration of the maturity thereof
pursuant to Section 7.01 or provable in bankruptcy pursuant to Section 7.02
or used to determine the relative voting rights of the Holders thereof
pursuant to Section 10.05 or the method by which such portion of the
principal amount shall be determined;
(10) any Events of Default with respect to the Securities of a
particular series, if not set forth herein;
(11) if the rate or rate at which the Securities of the series shall
bear interest is to be fixed until Maturity, provisions, if any, for the
defeasance of Securities of the series;
(12) the extent to which any Securities will be issuable in whole or
in part in the form of a global Security or Securities, and, in such case,
the depositary for such global Security or Securities;
(13) the form of Securities of such series; and
(14) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture).
All Securities of any series issued under this Indenture shall in all
respects be equally and ratably entitled to the benefits hereof with respect to
such series without preference, priority or distinction on account of actual
time or times of authentication and delivery or maturity of the Securities of
such series. All Securities of the same series shall be substantially identical
except as to denomination and except as may otherwise be provided in (i) an
indenture supplemental hereto, (ii) a resolution of the Board of Directors or
(iii) a certificate of an officer of the Company authorized pursuant to a
resolution of the Board of Directors.
SECTION 2.02. Form of Securities and of Trustee's Certificate of
Authentication. The Securities of each series, the appurtenant coupons, if any,
and the certificates of authentication thereon shall be in substantially the
form as shall be established as provided in Section 2.01 with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with any law or with any rules made pursuant thereto or with
any rules of any securities exchange or as may be determined consistently
8
herewith by the officers executing such Securities and coupons, if any, as
evidenced by their execution of the Securities and coupons, if any.
The definitive Securities and coupons, if any, shall be printed,
lithographed or engraved or produced by any combination of these methods on
steel engraved borders or may be produced in any other manner permitted by the
rules of any securities exchange, all as determined by the officers executing
such Securities and coupons, if any, as evidenced by their execution of such
Securities and coupons, if any.
The form of Trustee's certificate of authentication shall be substantially
as follows:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities issued under the within-mentioned Indenture.
TEXAS COMMERCE BANK NATIONAL ASSOCIATION,
as Trustee
By ________________________________________________
Authorized Signatory
SECTION 2.03. Securities in Global Form. If any Security of a series is
issuable in global form, such Security may provide that it shall represent the
aggregate amount of Securities Outstanding from time to time endorsed thereon
and may also provide that the aggregate amount of Securities Outstanding
represented thereby may from time to time be reduced to reflect exchanges. Any
endorsement of a Security in global form to reflect the amount, or any increase
or decrease in the amount, of Securities Outstanding represented thereby shall
be made by the Trustee and in such manner as shall be specified in such
Security. Any instructions by the Company with respect to a Security in global
form, after its initial issuance, shall be in writing.
SECTION 2.04. Denomination, Authentication and Dating of Securities. The
Securities of each series may be issued as Registered Securities without coupons
in such denominations of $1,000 and any integral multiple of $1,000, or such
other denominations as authorized as provided in Section 2.01. Each Security
shall be dated as of the date of its authentication.
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication. Except as otherwise provided in this
Article Two, the Trustee shall thereupon authenticate and deliver said
Securities to or upon the written order of the Company, signed by the Chairman,
the President, or the Senior Vice President, Chief Financial Officer and
Treasurer. In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and, subject to Section 8.01, shall be
fully protected in relying upon:
(a) A copy of the resolution or resolutions of the Board of Directors
in or pursuant to which the terms and form of the Securities were
established, certified by the Secretary or an Assistant Secretary of the
Company to have been duly adopted by the Board of Directors and to be in
full force and effect as of the date of such certificate, and if the terms
and form of such Securities are established by an Officers' Certificate
pursuant to general authorization of the Board of Directors, such Officers'
Certificate;
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(b) an executed supplemental indenture, if any;
(c) an Officers' Certificate delivered in accordance with
Section 16.07; and
(d) an Opinion of Counsel which shall state:
(1) that the form of such Securities has been established by a
supplemental indenture or by or pursuant to a resolution of the Board
of Directors in accordance with Sections 2.01 and 2.02 and in
conformity with the provisions of this Indenture;
(2) that the terms of such Securities have been established in
accordance with Section 2.01 and in conformity with the other
provisions of this Indenture;
(3) that such Securities, when authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid
and legally binding obligations of the Company, enforceable in
accordance with their terms, subject to bankruptcy, insolvency,
reorganization and other laws of general applicability relating to or
affecting the enforcement of creditors' rights and to general equity
principles; and
(4) that all laws and requirements in respect of the execution
and delivery by the Company of such Securities have been complied
with.
The Trustee shall have the right to decline to authenticate and deliver any
Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith by its board of directors or trustees, executive committee, or a trust
committee of directors or trustees or vice presidents shall determine that such
action would expose the Trustee to personal liability to existing Holders.
If the Company shall establish pursuant to Section 2.03 that the Securities
of a series are to be issued in the form of one or more global Securities, then
the Company shall execute and the Trustee shall, in accordance with this Section
and the Company instructions with respect to such series, authenticate and
deliver one or more global Securities that (i) shall represent and shall be
denominated in an amount equal to the aggregate principal amount of all of the
Securities of such series issued and not yet canceled, (ii) shall be registered
in the name of the depositary for such global Security or Securities or the
nominee of such depositary, (iii) shall be delivered by the Trustee to such
depositary or pursuant to such depositary's instructions and (iv) shall bear a
legend substantially to the following effect: "Unless this certificate is
presented by an authorized representative of the depositary to the Company or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of the nominee of the depositary or
in such other name as is requested by an authorized representative of the
depositary (and any payment is made to the nominee of the depositary or to such
other entity as is requested by an authorized representative of the depositary),
ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, the nominee of the
Depositary, has an interest herein."
Each depositary designated pursuant to Section 2.01(12) for a global
Security must, at the time of its designation and at all times while it serves
as depositary, be a clearing agency registered under the Securities Exchange Act
of 1934, as amended, and any other applicable statute or regulation.
SECTION 2.05. Execution of Securities. The Securities, and any coupons
appertaining thereto, shall be signed in the name and on behalf of the Company
manually or by facsimile by its Chairman, its President or its Senior Vice
President, Chief Financial Officer and Treasurer, under its corporate seal
(which may be printed,
10
engraved or otherwise reproduced thereon, by facsimile or otherwise). Only such
Securities as shall bear thereon a certificate of authentication substantially
in the form hereinbefore recited, executed manually by the Trustee, shall be
entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate by the Trustee upon any Security executed by the
Company shall be conclusive evidence that the Security so authenticated has been
duly authenticated and delivered hereunder and that the Holder is entitled to
the benefits of this Indenture.
In case any officer of the Company who shall have signed any of the
Securities shall cease to be such officer before the Securities so signed shall
have been authenticated and delivered by the Trustee, or disposed of by the
Company, such Securities nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Securities had not ceased to be
such officer of the Company; and any Security or coupon may be signed on behalf
of the Company by such persons as, at the actual date of the execution of such
Securities or coupons, shall be the proper officers of the Company, although at
the date of the execution of this Indenture any such person was not such an
officer.
SECTION 2.06. Registration, Registration of Transfer and Exchange. The
Company shall keep or cause to be kept a register (herein sometimes referred to
as the "registry books of the Company") in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Registered Securities and the registration of transfers of Registered
Securities. Any such register shall be in written form or in any other form
capable of being converted into written form within a reasonable time. At all
reasonable times the information contained in such register or registers shall
be available for inspection by the Trustee at the office or agency to be
maintained by the Company as provided in Section 5.02.
Upon surrender of any Registered Security of any series for registration of
transfer at the office or agency of the Company to be maintained as provided in
Section 5.02, the Company shall execute, and the Trustee, upon the written
authorization or request of any officer of the Company, shall authenticate and
deliver, in the name of the designated transferee or transferees, at the expense
of the Company, one or more new Registered Securities of such series of any
authorized denominations and of a like aggregate principal amount and Stated
Maturity.
At the option of the Holder thereof, Securities of a series, which by their
terms are registrable as to principal only or as to principal and interest, may
be exchanged for Registered Coupon Securities or Fully Registered Securities of
such series, as may be issued by the terms thereof. Securities so issued in
exchange for other Securities shall be of any authorized denomination and of
like principal amount and Stated Maturity and shall be issued upon surrender of
the Securities for which they are to be exchanged and, in the case of Coupon
Securities, together with all unmatured coupons and all matured coupons in
default appertaining thereto, at the office of the Company provided for in
Section 5.02 and upon payment, if the Company shall require, of charges provided
herein. Whenever any Securities are so surrendered, the Company shall execute,
and the Trustee shall authenticate and deliver, the Securities which the Holder
making such exchange is entitled to receive.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.
Every Registered Security presented or surrendered for registration of
transfer or exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company, duly executed, by the Holder thereof or his
attorney duly authorized in writing.
Unless otherwise provided in the Securities to be transferred or exchanged,
no service charge shall be made for any registration of transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto.
11
The Company shall not be required (i) to issue, register the transfer of or
exchange any Securities of any series for a period of 15 days next preceding any
selection of Securities of such series to be redeemed, or (ii) to register the
transfer or exchange of any Securities 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 so redeemed.
SECTION 2.07. Mutilated, Destroyed, Lost or Stolen Securities. In case
any temporary or definitive Security or any coupon appurtenant to a Coupon
Security shall become mutilated or be destroyed, lost or stolen, the Company in
the Trustee shall authenticate and deliver, a new Security (in the case of a
Coupon Security, with coupons corresponding to the coupons appertaining to the
mutilated, destroyed, lost or stolen Security or the Security with respect to
which a coupon shall have become mutilated, destroyed, stolen or lost) of the
same series and of like tenor and principal amount at Stated Maturity bearing a
number not contemporaneously outstanding. In every case the applicant for a
substituted Security shall furnish to each of the Company and the Trustee such
security or indemnity as may be required by either of them, as the case may be,
to save each of them harmless, and, in every case of destruction, loss or theft,
the applicant shall also furnish to the Company and to the Trustee evidence to
their satisfaction of the destruction, loss or theft of such Security and of the
ownership thereof. In every case of mutilation, the applicant shall surrender to
the Trustee, the mutilated Security or the Security to which the mutilated
coupon appertains, in the case of a Coupon Security, with all coupons (including
any mutilated coupons) appertaining thereto.
Upon the issuance of any substituted Security, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses connected therewith.
In case any Security or coupon which has matured or is about to mature shall
become mutilated or be destroyed, lost or stolen, the Company may, instead of
issuing a substitute Security or coupon, pay or authorize the payment of the
same (without surrender thereof except in the case of a mutilated Security or
coupon) if the applicant for such payment shall furnish to each of the Company
and the Trustee such security or indemnity as may be required by either of them,
as the case may be, to save each of them harmless and, in case of destruction,
loss or theft, evidence satisfactory to the Company and the Trustee of the
destruction, loss or theft of such Security or coupon and of the ownership
thereof.
Every substituted Security, and in the case of Coupon Securities, its
appurtenant coupons, issued pursuant to the provisions of this Section 2.07 by
virtue of the fact that any Security or coupon of that series is destroyed, lost
or stolen shall constitute an additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security or coupon of that series
shall be found at any time, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities and
coupons of that series duly issued hereunder. All Securities and coupons shall
be held and owned upon the express condition that, to the extent permitted by
law, the foregoing provisions are exclusive with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities and coupons and shall
preclude any and all other rights or remedies notwithstanding any law or statute
existing or hereafter enacted to the contrary with respect to the replacement or
payment of negotiable instruments or other securities without their surrender.
SECTION 2.08. Temporary Securities. Pending the preparation of definitive
Securities of any series the Company may execute and the Trustee, upon
satisfaction of the provisions of Section 2.03, shall authenticate and deliver
printed or lithographed temporary Securities. Temporary Securities shall be
issuable in any authorized denomination, and substantially in the form of the
definitive Securities of that series, but with such omissions, insertions and
variations as may be appropriate for temporary Securities, all as may be
determined by the Company. Every such temporary Security of any series shall be
authenticated by the Trustee upon the same conditions and in substantially the
same manner, and with the same effect, as the definitive Securities of that
series. Without unreasonable delay, the Company will execute and deliver to the
Trustee definitive Securities of that series and thereupon any or all temporary
Securities of that series may be surrendered in exchange therefor, at the office
or agency of the Company in the Place of Payment for such series, and the
Company shall execute and the Trustee shall authenticate and deliver in exchange
for such temporary Securities an equal aggregate principal amount at Stated
12
Maturity of definitive Securities. Such exchange shall be made by the Company
at its own expense and without any charge therefor except that the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto. 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 that series
authenticated and delivered hereunder.
SECTION 2.09. Cancellation of Securities Paid, etc. Securities of any
series surrendered for the purpose of payment, redemption, exchange or
registration of transfer and all coupons surrendered for payment, shall, if
surrendered to the Company or any paying agent, be surrendered to the Trustee
for cancellation, or, if surrendered to the Trustee, shall be canceled by it,
and no Securities or coupons shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Indenture or of such series of
Securities. The Trustee shall destroy or otherwise dispose of, or retain in
accordance with its standard retention policy, at its discretion, canceled
Securities or coupons and, where applicable, deliver a certificate of such
destruction or retention to the Company. If the Company shall acquire any of the
Securities or coupons, however, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Securities or
coupons unless and until the same are surrendered to the Trustee for
cancellation.
ARTICLE THREE
REDEMPTION OF SECURITIES
SECTION 3.01. Applicability of Article. The Company may reserve the right
to redeem and pay, prior to Stated Maturity, all or any part of the Securities
of any series, either by optional redemption, sinking fund or otherwise, by
provision therefor in the Security for such series established pursuant to
Sections 2.01 and 2.02. Redemption of Securities of any series shall be made in
accordance with the terms of such Securities and, to the extent that this
Article does not conflict with such terms, in accordance with this Article.
SECTION 3.02. Notice of Redemption; Selection of Securities. In case the
Company shall desire to exercise the right to redeem all or any part of the
Securities of a series in accordance with their terms, it shall fix a date for
redemption and shall mail a notice of such redemption at least 30 and not more
than 60 days prior to the date fixed for redemption to each Holder of a
Registered Security to be redeemed as a whole or in part at his address as the
same appear on the registry books of the Company. If mailed in the manner herein
provided, the notice shall be conclusively presumed to have been duly given,
whether or not any such Holder receives such notice. Any defect in the notice to
the Holder of any Security of a series designated for redemption as a whole or
in part shall not affect the validity of the proceedings for the redemption of
any other Security of such series.
Each such notice of redemption shall specify the date fixed for redemption,
the redemption price, the place where such Securities are to be surrendered for
payment of the redemption price, which shall be the office or agency of the
Company in each Place of Payment, that payment will be made upon presentation
and surrender of such Securities and all coupons appertaining thereto, if any,
that accrued interest, if any, to the redemption date will be paid as specified
in said notice, and that on and after said date, interest thereon or on the
portions thereof to be redeemed will cease to accrue. In case the redemption is
on account of a sinking fund, said notice shall so specify. If less than all
the outstanding Securities of a series are to be redeemed, the notice of
redemption shall specify the numbers of the Securities of that series to be
redeemed. In case any Security of a series is to be redeemed in part only, the
notice of redemption shall state the portion of the principal amount thereof to
be redeemed and shall state that on and after the date fixed for redemption,
upon surrender of such Security, a new Security or Securities of that series in
the principal amount and Stated Maturity equal to the unredeemed portion thereof
will be issued.
13
If all of the Securities of a series are to be redeemed, the Company shall
give the Trustee written notice not less than 45 days prior to the redemption
date of the proposed redemption of such securities. If fewer than all the
Securities of a series are to be redeemed, the Company shall give the Trustee
written notice not less than 60 days prior to the redemption date as to the
aggregate principal amount at Stated Maturity of Securities to be redeemed, and
the Trustee shall select from the Securities outstanding in such manner as in
its sole discretion it shall deem appropriate and fair, the Securities of that
series or portions thereof to be redeemed. Securities of a series may be
redeemed in part only in multiples of $1,000, except as otherwise set forth in
the form of Security to be redeemed.
Any notice of redemption to be mailed by the Company pursuant to this
Section 3.02 may be mailed, at the Company's direction, by the Trustee in the
name and at the expense of the Company.
SECTION 3.03. Payment of Securities Called for Redemption. If notice of
redemption has been mailed or published, as the case may be as above provided,
the Securities or portions of Securities of a series with respect to which such
notice has been mailed or published shall become due and payable on the date and
at the place or places stated in such notice at the applicable redemption price,
together with accrued interest to the redemption date and on and after said date
(unless the Company shall default in the payment of such Securities at the
applicable redemption price, together with accrued interest, if any, to said
date) any interest on the Securities or portions of Securities of any series so
called for redemption shall cease to accrue, and such Securities and portions of
Securities of any series shall be deemed not to be outstanding hereunder and
shall not be entitled to any benefit under this Indenture except to receive
payment of the redemption price, together with accrued interest, if any, to the
date fixed for redemption. On or before the Business Day preceding the
redemption date specified in the notice of redemption, the Company shall deposit
with the Trustee or with one or more paying agents an amount of money, in
immediately available funds, sufficient to redeem on the redemption date all the
Securities so called for redemption at the applicable redemption price, together
with accrued interest, if any, to the date fixed for redemption. On
presentation and surrender of such Securities at the Place of Payment, the said
Securities or the specified portions thereof shall be paid and redeemed by the
Company at the applicable redemption price, together with accrued interest, if
any, to the date fixed for redemption.
Upon presentation of any Security redeemed in part only, 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 such series, of
authorized denominations in aggregate principal amount and Stated Maturity equal
to the unredeemed portion of the Security so presented.
ARTICLE FOUR
SINKING FUNDS
SECTION 4.01. Applicability of Article. The provisions of this Article
shall be applicable to any sinking fund for the retirement of Securities of a
series except as otherwise specified as contemplated by Section 2.01 for
Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment."
SECTION 4.02. Satisfaction of Mandatory Sinking Fund Payments with
Securities. In lieu of making all or any part of any mandatory sinking fund
payment with respect to any Securities of a series in cash, the Company may at
its option (a) deliver to the Trustee Securities of that series theretofore
purchased or otherwise acquired by
14
the Company, or (b) receive credit for the principal amount of Securities of
that series which have been redeemed either at the election of the Company
pursuant to the terms of such 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 a
principal amount equal to the redemption price (exclusive of accrued interest
and any premium) specified in such Securities for redemption through operation
of the sinking fund and the amount of such mandatory sinking fund payment shall
be reduced accordingly.
SECTION 4.03. Redemption of Securities for Sinking Fund. Not less than 60
days prior to each sinking fund payment date for any series of Securities, the
Company will deliver to the Trustee an Officers' Certificate specifying the
amount of the next ensuing sinking fund payment for that series pursuant to the
terms of that series, the portion thereof, if any, which is to be satisfied by
payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 4.02,
which Securities will accompany such certificate, if not theretofore delivered,
and whether the Company intends to exercise its right to make a permitted
optional sinking fund payment with respect to such series. Such certificate
shall also state that no Event of Default with respect to such series has
occurred and is continuing.
Any mandatory or optional sinking fund payment or payments made in cash
plus any unused balance of any preceding sinking fund payments made in cash
which shall equal or exceed $50,000 (or a lesser sum if the Company shall so
request) with respect to Securities of any particular series shall be applied by
the Trustee on the sinking fund payment date on which such payment is made (or,
if such payment is made prior to a sinking fund payment date, on the sinking
fund payment date following the date of such payment) to the redemption of such
Securities at the redemption price specified in such Securities for operation of
the sinking fund together with accrued interest to the date fixed for
redemption. Any and all sinking fund moneys with respect to the Securities of
any particular series held by the Trustee on the last sinking fund payment date
with respect to such Securities, and not held for the payment or redemption of
particular Securities, shall be applied by the Trustee, to the payment of the
principal of the Securities of that series at maturity.
The Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in the penultimate paragraph of
Section 3.02 and the Company shall cause notice of the redemption thereof to be
given in the manner provided in Section 3.02. Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in the
manner stated in Section 3.03.
On or before the Business Day preceding each sinking fund payment date, the
Company shall pay to the Trustee in immediately available funds a sum equal to
all accrued interest to the date fixed for redemption on Securities to be
redeemed on such sinking fund payment date pursuant to this Section 4.03.
The Trustee shall not redeem any Securities of a series with sinking fund
moneys or mail or publish any notice of redemption of such Securities by
operation of the sinking fund for such series during the continuance of a
default in payment of interest on such Securities or of any Event of Default
(other than an Event of Default occurring as a consequence of this paragraph),
except that if the notice of redemption of any such Securities shall theretofore
have been mailed or published in accordance with the provisions hereof, the
Trustee shall redeem Securities if cash sufficient for that purpose shall be
deposited with the Trustee for that purpose in accordance with the terms of this
Article Four. Except as aforesaid, any moneys in the sinking fund for such
series at the time when any such default or Event of Default shall occur and any
moneys thereafter paid into such sinking fund shall, during the continuance of
such default or Event of Default, be held as security for the payment of all
Securities of such series; provided, however, that in case such default or Event
or Default shall have been cured or waived as provided herein, such moneys shall
thereafter be applied on the next sinking fund payment date for such Securities
on which such moneys may be applied pursuant to the provisions of this
Section 4.03.
15
ARTICLE FIVE
PARTICULAR COVENANTS OF THE COMPANY
SECTION 5.01. Payment of Principal, Premium and Interest. The Company
shall duly and punctually pay or cause to be paid the principal of and premium,
if any, and interest, if any, on the Securities of each series in accordance
with the terms thereof and this Indenture and shall comply with all other forms,
agreements and conditions contained in or made in this Indenture for the benefit
of such Securities.
SECTION 5.02. Offices for Notices and Payments, etc. So long as any
Securities of a series remain outstanding, the Company shall maintain in each
Place of Payment for such series of Securities an office or agency where the
Securities of that series may be presented for payment, for registration of
transfer and for exchange as provided in this Indenture and where notices and
demands to or upon the Company in respect of the Securities of that series or of
this Indenture may be served. The Company shall give to the Trustee written
notice of the location of any such office or agency and of any change of
location thereof. In case the Company shall fail to maintain any such office or
agency or shall fail to give such notice of the location or of any change in the
location thereof, presentations and demands may be made at the Principal Office
of the Trustee (or at any other address previously furnished in writing to the
Company by the Trustee) and notices may be served at the Principal Office of the
Trustee. Unless otherwise provided pursuant to Section 2.01, the Company hereby
initially designates as the Place of Payment for each series of Securities, the
office or agency of the Trustee in the Borough of Manhattan, New York, New York,
at which its corporate agency business shall be conducted, and initially
appoints the Trustee its agent for payment, for registration of transfers, for
exchange of the Securities and where notices and demands may be served upon the
Company. Notwithstanding any other provisions to the contrary, the Company at
its option may make payment of principal, premium (if any) and interest with
respect to Registered Securities by check mailed to the address of the Person
entitled thereto, as such address appears on the registry books of the Company;
provided, however, that in the case of a Registered Security issued between a
record date and the initial Interest Payment Date relating to such record date,
interest for the period beginning on the Original Issue Date and ending on such
initial Interest Payment Date shall be paid on such initial Interest Payment
Date to the person to whom such Registered Security shall have been originally
issued. Notwithstanding the foregoing, a holder of $10,000,000 or more in
aggregate principal amount of Registered Securities shall be entitled to receive
such payments by wire transfer of immediately available funds, but only if
appropriate wire transfer instructions have been received in writing by the
Trustee not less than 15 days prior to the applicable Interest Payment Date.
SECTION 5.03. Limitation on Liens. Nothing in this Indenture or in the
Securities shall in any way restrict or prevent the Company or any Subsidiary
from incurring any indebtedness; provided, however, that neither the Company nor
any Restricted Subsidiary shall issue, assume or guarantee any notes, bonds,
debentures or other similar evidences of indebtedness for money borrowed (notes,
bonds, debentures or other similar evidences of indebtedness for money borrowed
being hereinafter in this Article Five called "Debt") secured by mortgage, lien,
pledge or other encumbrance (mortgages, liens, pledges or other encumbrances
being hereinafter in this Article Five called "Mortgages") upon any Restricted
Property, without effectively providing that the Securities of each series then
outstanding and thereafter created (together with, if the Company so determines,
any other indebtedness or obligation then existing and any other indebtedness or
obligation thereafter created ranking equally with the Securities then existing
or thereafter created which is not subordinated to the Securities of each
series) shall be secured equally and ratably with (or prior to) such Debt so
long as such Debt shall be so secured, except that the foregoing provisions
shall not apply to:
(a) Mortgages affecting property of a corporation existing at the time it
becomes a Subsidiary or at the time it is merged into or consolidated with the
Company or a Subsidiary;
16
(b) Mortgages on property existing at the time of acquisition thereof or
incurred to secure payment of all or part of the purchase price thereof or to
secure Debt incurred prior to, at the time of or within 24 months after
acquisition thereof for the purpose of financing all or part of the purchase
price thereof;
(c) Mortgages on property of the Company or a Subsidiary existing on the
date of this Indenture;
(d) Mortgages on any property to secure all or part of the cost of
construction or improvements thereon or Debt incurred to provide funds for any
such purpose in a principal amount not exceeding the cost of such construction
or improvements;
(e) Mortgages which secure only an indebtedness owing by a Subsidiary to
the Company or a Subsidiary;
(f) Mortgages in favor of the United States or any state thereof, or any
department, agency, instrumentality, or political subdivision of any such
jurisdiction, to secure partial, progress, advance or other payments pursuant to
any contract or statute or to secure any indebtedness incurred for the purpose
of financing all or any part of the purchase price or cost of constructing or
improving the property subject thereto, including, without limitation, Mortgages
to secure Debt of the pollution control or industrial revenue bond type;
(g) Mortgages required by any contract or statute in order to permit the
Company or a Subsidiary to perform any contract or subcontract made by it with
or at the request of the United States of America, any state or any department,
agency or instrumentality or political subdivision of either; or
(h) any extension, renewal or replacement (or successive extensions,
renewals or replacements), in whole or in part, of any Mortgage referred to in
the foregoing clauses (a) to (g) inclusive or of any Debt secured thereby,
provided that the principal amount of Debt secured thereby shall not exceed the
greater of (i) the principal amount of Debt so secured or (ii) the fair market
value of the underlying property or assets to which such Mortgage relates at the
time of such extension, renewal or replacement, and that such extension, renewal
or replacement Mortgage shall be limited to all or part of substantially the
same property which secured the Mortgage extended, renewed or replaced (plus
improvements on such property).
Notwithstanding the foregoing provisions of this Section 5.03, the Company
and any one or more Restricted Subsidiaries may issue, assume or guarantee Debt
secured by Mortgages which would otherwise be subject to the foregoing
restrictions in an aggregate principal amount which, together with the aggregate
outstanding principal amount of all other Debt of the Company and its Restricted
Subsidiaries which would otherwise be subject to the foregoing restrictions (not
including Debt permitted to be secured under clauses (a) to (h) inclusive above)
and the aggregate Value, as defined in Section 5.05, of the Sale and Lease-Back
Transactions, as defined in Section 5.04, in existence at such time (not
including Sale and Lease-Back Transactions as to which the Company has complied
with Section 5.04(b)), does not at any one time exceed the greater of $100
million or 10% of the Consolidated Net Tangible Assets of the Company and its
consolidated Subsidiaries.
SECTION 5.04. Limitation on Sale and Lease-Back. Neither the Company nor
any Restricted Subsidiary shall enter into any arrangement with any Person
(other than the Company or a Subsidiary), or to which any such Person is a
party, providing for the leasing to the Company or a Restricted Subsidiary for a
period of more than five years of any Restricted Property which has been or is
to be sold or transferred by the Company or such Restricted Subsidiary to such
Person or to any other Person (other than the Company or a Subsidiary), to which
funds have been or are to be advanced by such Person on the security of the
leased property (in this Article Five called "Sale and Lease-Back Transactions")
unless either:
(a) the Company or such Restricted Subsidiary would be entitled, pursuant
to the provisions of Section 5.03, to incur Debt in a principal amount equal to
or exceeding the Value of such Sale and Lease-Back Transaction, secured by a
Mortgage on the property to be leased, without equally and ratably securing the
Securities; or
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(b) the Company (and in any such case the Company covenants and agrees
that it will do so) during or immediately after the expiration of four months
after the effective date of such Sale and Lease-Back Transaction (whether made
by the Company or a Restricted Subsidiary) applies to the voluntary retirement
of indebtedness of the Company (including Securities, provided that Securities
may only be redeemed at the redemption prices and in accordance with the other
provisions of the form thereof), maturing by the terms thereof more than one
year after the original creation thereof and ranking at least pari passu with
the Securities (hereinafter in this Section called "Funded Debt") an amount
equal to the Value of such Sale and Lease-Back Transaction, less the principal
amount of Securities delivered, within four months after the effective date of
such arrangement, to the Trustee for retirement and cancellation and the
principal amount of other Funded Debt voluntarily retired by the Company within
such four-month period, excluding retirements of Securities and other Funded
Debt as a result of conversions or pursuant to mandatory sinking fund or
prepayment provisions or by payment at maturity.
SECTION 5.05. Definition of "Value." For purposes of Sections 5.03
and 5.04, the term "Value" shall mean, with respect to a Sale and Lease-Back
Transaction, as of any particular time, the amount equal to the greater of (1)
the net proceeds of the sale or transfer of the property leased pursuant to such
Sale and Lease-Back Transaction or (2) the fair value, in the opinion of the
Board of Directors, of such property at the time of entering into such Sale and
Lease-Back Transaction, in either case divided first by the number of full years
of the term of the lease and then multiplied by the number of full years of such
term remaining at the time of determination, without regard to any renewal or
extension options contained in the lease.
SECTION 5.06. Appointments to Fill Vacancies in Trustee's Office. The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee
for any one or more series of Securities, shall appoint a Trustee, in the manner
provided in Section 8.10 so that there shall at all times be a Trustee with
respect to each series of Securities hereunder.
SECTION 5.07. Provision as to Paying Agent. (a) If the Company appoints a
paying agent other than the Trustee with respect to the Securities of any
series, it shall cause such paying agent to execute and deliver to the Trustee
an instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section 5.07:
(1) that it will hold all sums held by it as such agent for the payment of
the principal of and premium, if any, or interest, if any, on the Securities of
such series (whether such sums have been paid to it by the Company or by any
other obligor on the Securities of such series) in trust for the benefit of the
Holders of the Securities of such series; and
(2) that it will give the Trustee notice of any failure by the Company (or
by any other obligor on the Securities of such series) to make any payment of
the principal of and premium, if any, or interest, if any, on the Securities of
such series when the same shall be due and payable.
(b) If the Company acts as its own paying agent with respect to the
Securities of any series it shall, on or prior to each due date of the principal
of and premium, if any, or interest, if any, on any of the Securities of such
series, set aside, segregate and hold in trust for the benefit of the Holders of
such Securities or the coupons appertaining thereto, as the case may be, a sum
sufficient to pay such principal and premium, if any, or interest, if any, so
becoming due and will notify the Trustee of any failure to take such action and
of any failure by the Company (or by any other obligor under such Securities) to
make any payment of the principal of and premium, if any, or interest, if any,
on such Securities when the same shall become due and payable.
(c) Whenever the Company has one or more paying agents with respect to the
Securities of any series, it shall deposit with a paying agent (who shall make
any necessary funds available to any other paying agents), on the Business Day
next preceding each due date in funds available on the due date of the principal
of, premium, if any, and interest, if any, on such Securities, a sum in
immediately available funds sufficient to pay such principal, premium, if any,
and interest, if any, so becoming due, such sum to be held in trust for the
benefit of the Holders
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of such Securities or the coupons appertaining thereto, as the case may be,
entitled to any such principal, premium and interest, and (unless such paying
agent is the Trustee) the Company shall promptly notify the Trustee of its
action or failure so to act.
(d) Anything in this Section 5.07 to the contrary notwithstanding, the
Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by it, or any paying agent hereunder, as
required by this Section 5.07, such sums to be held by the Trustee upon the
trusts herein contained.
(e) Anything in this Section 5.07 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 5.07 is subject to
Sections 13.03 and 13.04.
SECTION 5.08. Annual Certificate to Trustee. The Company shall deliver to
the Trustee within 120 days after the end of each fiscal year of the Company
ending after the date hereof so long as any Securities are outstanding hereunder
(beginning with respect to Securities of each series with the fiscal year next
following the issue date of any series of Securities) an Officers' Certificate
stating that in the course of the performance by the signers of their duties as
officers of the Company and based upon a review made under their supervision of
the activities of the Company they would normally have knowledge of any default
by the Company in the performance of any covenants contained in Sections 5.03,
5.04, 12.01 or 12.02, stating whether or not they have knowledge of any such
default and, if so, specifying each such default of which the signers have
knowledge and the nature thereof.
ARTICLE SIX
HOLDERS LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE
SECTION 6.01. Holders Lists. The Company shall furnish or cause to be
furnished to the Trustee, with respect to the Registered Securities of each
series (i) semi-annually, not later than each Interest Payment Date for such
series and on dates to be determined pursuant to Section 2.01 for non-interest
bearing Securities in each year, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders, as of the
respective record dates therefor, and on dates to be determined pursuant to
Section 2.01 for non-interest bearing Securities, and (ii) at such other times
as the Trustee may request in writing, within 30 days after receipt by the
Company of any such request, a list in such form as the Trustee may reasonably
require of the names and addresses of the Holders as of a date not more than 15
days prior to the time such information is furnished; provided, however, that so
long as the Trustee shall be the registrar of a series of Securities all of
which are Registered Securities, such list shall not be required to be furnished
in respect of that series.
SECTION 6.02. Preservation and Disclosure of Lists. (a) The Trustee shall
preserve, in as current a form as is reasonably practicable, all information as
to the names and addresses of the Holders of Registered Securities of any series
contained in the most recent list furnished to it as provided in Section 6.01 or
received by the Trustee in its capacity as Securities registrar. The Trustee may
destroy any list furnished to it as provided in Section 6.01 upon receipt of a
new list so furnished.
(b) In case three or more Holders of Securities of the same series
(hereinafter referred to as "applicants") apply in writing to the Trustee and
furnish to the Trustee reasonable proof that each such applicant has owned a
Security of such series for a period of at least six months preceding the date
of such application, and such application states that the applicants desire to
communicate with other Holders of Securities of such series or with Holders of
Securities of all series with respect to their rights under this Indenture or
under such Securities and is accompanied
19
by a copy of the form of proxy or other communication which such applicants
propose to transmit for such purpose, then the Trustee shall, within five
Business Days after the receipt of such application, at its election, either
(1) afford such applicants access to the information preserved at the time
by the Trustee in accordance with the provisions of subsection (a) of this
Section 6.02, or
(2) inform such applicants as to the approximate number of Holders of
Securities of such series or of all series, as the case may be, whose names and
addresses appear in the information preserved at the time by the Trustee in
accordance with the provisions of subsection (a) of this Section 6.02 and as to
the approximate cost of mailing to such Holders the form of proxy or other
communication, if any, specified in such application.
If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Holder of a Security of such series or of all series, as the case
may be, whose name and address appears in the information preserved at the time
by the Trustee in accordance with the provisions of subsection (a) of this
Section 6.02, a copy of the form of proxy or other communication which is
specified in such request, with reasonable promptness after a tender to the
Trustee of the material to be mailed and of payment, or provision for the
payment, of the reasonable expenses of mailing, unless within five days after
such tender, the Trustee shall mail to such applicants and file with the
Securities and Exchange Commission, together with a copy of the material to be
mailed, a written statement to the effect that, in the opinion of the Trustee,
such mailing would be contrary to the best interests of the Holders of
Securities of such series or of all series, as the case may be, or would be in
violation of applicable law. Such written statement shall specify the basis of
such opinion. If said Commission, after opportunity for a hearing upon the
objections specified in the written statement so filed, shall enter an order
refusing to sustain any of such objections or if, after the entry of an order
sustaining one or more of such objections, said Commission shall find, after
notice and opportunity for hearing, that all the objections so sustained have
been met and shall enter an order so declaring, the Trustee shall mail copies of
such material to all such Holders with reasonable promptness after the entry of
such order and the renewal of such tender; otherwise, the Trustee shall be
relieved of any obligation or duty to such applicants respecting their
application.
(c) Each Holder of any Security or coupon or both, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any paying agent shall be held accountable by reason
of the disclosure of the name and address of such Holder in accordance with the
provisions of subsection (b) of this Section 6.02, 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
said subsection (b).
SECTION 6.03. Reports by the Company. (a) The Company shall file with the
Trustee, within 30 days after the Company is required to file the same with the
Securities and Exchange 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 said Commission may from time to time by rules and regulations
prescribe) relating to the equity or debt securities of the Company which the
Company may be required to file with said Commission pursuant to section 13 or
15(d) of the Securities Exchange Act of 1934; or, if the Company is not required
to file information, documents or reports pursuant to any of such sections, then
to file with the Trustee and said Commission, in accordance with rules and
regulations prescribed from time to time by said Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to section 13 of the Securities Exchange Act of 1934 in
respect of a security listed and registered on a national securities exchange as
may be prescribed from time to time in such rules and regulations.
(b) The Company shall file with the Trustee and the Securities and
Exchange Commission, in accordance with the rules and regulations prescribed
from time to time by said Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and
covenants provided for in this Indenture as may be required from time to time by
such rules and regulations.
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(c) The Company shall transmit by mail to each Holder of Securities, in
the manner and to the extent provided in Section 6.04, within 30 days after the
filing thereof with the Trustee, such summaries of any information, documents
and reports required to be filed by the Company pursuant to subsections (a) and
(b) of this Section 6.03 as may be required by rules and regulations prescribed
from time to time by the Securities and Exchange Commission.
SECTION 6.04. Reports by the Trustee. (a) Within 60 days after May 15 of
each year after the first series of Securities is issued hereunder, so long as
any Securities are outstanding hereunder, the Trustee shall transmit to the
Holders, as hereinafter in this Section 6.04 provided, a brief report dated as
of such May 15 with respect to any of the following events which may have
occurred during the 12 months preceding the date of such report (but if no such
event has occurred within such period, no report need be transmitted):
(1) any change to its eligibility under Section 8.09 or its qualification
under Section 8.08;
(2) the creation of or any material change to a relationship specified in
Section 310(b)(1) through Section 310(b)(10) of the Trust Indenture Act of 1939;
(3) the character and amount of any advances (and if the Trustee elects so
to state, the circumstances surrounding the making thereof) made by the Trustee
(as such) which remain unpaid on the date of such report, and for the
reimbursement of which it claims or may claim a lien or charge, prior to that of
the Securities, on any property or funds held or collected by it as Trustee,
except that the Trustee shall not be required (but may elect) to state such
advances if such advances so remaining unpaid aggregate not more than 1/2 of 1%
of the principal amount at Stated Maturity of the Securities outstanding on the
date of such report;
(4) the amount, interest rate and maturity date of all other indebtedness
owing by the Company (or by any other obligor on the Securities) to the Trustee
in its individual capacity, on the date of such report, with a brief description
of any property held as collateral security therefor, except an indebtedness
based upon a creditor relationship arising in any manner described in paragraphs
(2), (3), (4) or (6) of subsection (b) of Section 8.13;
(5) any change to the property and funds, if any, physically in the
possession of the Trustee, as such, on the date of such report;
(6) any additional issue of Securities which the Trustee has not
previously reported; and
(7) any action taken by the Trustee in the performance of its duties under
this Indenture which it has not previously reported and which in its opinion
materially affects any of the Securities, except action in respect of a default,
notice of which has been or is to be withheld by it in accordance with the
provisions of Section 7.08.
(b) The Trustee shall transmit to the Holders, as hereinafter provided, a
brief report with respect to the character and amount of any advances (and if
the Trustee elects so to state, the circumstances surrounding the making
thereof) made by the Trustee (as such), since the date of the last report
transmitted pursuant to the provisions of subsection (a) of this Section 6.04
(or, if no such report has yet been so transmitted, since the date of execution
of this Indenture), for the reimbursement of which it claims or may claim a lien
or charge prior to that of the Securities, on property or funds held or
collected by it as Trustee, and which it has not previously reported pursuant to
this subsection, except that the Trustee shall not be required (but may elect)
to report such advances if such advances remaining unpaid at any time aggregate
10% or less of the principal amount of Securities at Stated Maturity outstanding
at such time, such report to be transmitted within 90 days after such time.
(c) Reports pursuant to this Section shall be transmitted by mail:
21
(1) to all Registered Holders of Securities, as the names and addresses of
such Holders appear in the registry books of the Company;
(2) to such Holders of Securities as have, within the two years preceding
such transmission, filed their names and addresses with the Trustee for that
purpose; and
(3) except in the case of reports pursuant to subsection (b) of this
Section, to each Holder whose name and address is preserved at the time by the
Trustee, as provided in Section 6.02.
(d) A copy of each such report shall, at the time of such transmission to
Holders, be furnished to the Company and be filed by the Trustee with each stock
exchange upon which the Securities are listed and also with the Securities and
Exchange Commission. The Company shall notify the Trustee when any Securities
are listed on any stock exchange.
ARTICLE SEVEN
REMEDIES OF THE TRUSTEE AND HOLDERS
ON EVENT OF DEFAULT
SECTION 7.01. Events of Default. "Event of Default," whenever used herein
with respect to Securities of any series means each one of the following events
unless it is either inapplicable to a particular series or it is specifically
deleted or modified in the supplemental indenture under which such series of
Securities is issued, if any, or in the form of Security for such series:
(a) default in the payment of any installment of interest upon any
Security of that series when the same becomes due and payable, and continuance
of such default for a period of 30 days; or
(b) default in the payment of the principal of or premium, if any, on any
Securities of that series as and when the same shall become due and payable
either at Maturity, upon redemption, by declaration or otherwise; or
(c) default in the payment of any sinking fund installment or analogous
obligation as and when the same shall become due and payable by the terms of
that series, and continuance of such default for a period of 30 days; or
(d) failure on the part of the Company duly to observe or perform any
other of the covenants or agreements on the part of the Company in the
Securities of such series or in this Indenture (other than a covenant or
agreement in respect of the Securities of such series a default in the
performance of which or the breach of which is elsewhere in this Section 7.01
specifically provided for or which has expressly been included in this Indenture
solely for the benefit of one or more series of Securities other than such
series), and continuance of such default or breach for a period of 90 days after
the date on which written notice specifying such default or breach and requiring
it to be remedied and stating that such notice is a "Notice of Default"
hereunder, shall have been given 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 Securities of that series at the time outstanding; or
(e) if there shall be entered a decree or order by a court having
jurisdiction for relief in respect of the Company under any applicable Federal
or State bankruptcy law or other similar law, or appointing a receiver, trustee
or liquidator, or other similar official of the Company or of any substantial
part of its property, or ordering the
22
winding-up or liquidation of its affairs and the continuance of any such decree
or order unstayed and in effect for a period of 90 consecutive days; or
(f) if the Company shall file a petition or an answer or consent seeking
relief under any applicable Federal or State bankruptcy law or other similar
law, or shall consent to the institution of proceedings thereunder or to the
filing of any such petition or to the appointment or taking possession by a
receiver, trustee, custodian or other similar official of the Company or of any
substantial part of its property, or the Company shall make an assignment for
the benefit of creditors generally or shall admit in writing to its inability to
pay its debts generally as they become due; or
(g) any other event specified as an Event of Default in the form of
Security for such series, or in the supplemental indenture, Officers'
Certificate or resolution of the Board of Directors under which such series of
Securities is issued, if any.
If an Event of Default described in clauses (a), (b), (c), (d) or (g) (if the
Event of Default under clause (d) or (g) is with respect to less than all series
of Securities then outstanding) occurs and is continuing, then and in each and
every such case, unless the principal of all the Securities of such series shall
have already become due and payable, either the Trustee or the Holders of not
less than 25% in aggregate principal amount at Stated Maturity of the Securities
of such series then outstanding hereunder (each such series acting as a separate
class), by notice in writing to the Company (and to the Trustee if given by
Holders), may declare the principal amount (in the case of Securities that are
Original Issue Discount Securities, such principal amount as may be determined
in accordance with the terms of that series) of all the Securities of such
series to be due and payable immediately, and upon any such declaration the same
shall become and shall be immediately due and payable, anything in this
Indenture or in the Securities of such series contained to the contrary
notwithstanding. If an Event of Default described in clauses (d) or (g) (if the
Event of Default under clause (d) or (g) is with respect to all series of
Securities then outstanding) or (e) or (f) occurs and is continuing, then and in
each and every such case, unless the principal of all the Securities shall have
already become due and payable, either the Trustee or the Holders of not less
than 25% in aggregate principal amount at Stated Maturity of all the Securities
then outstanding hereunder (treated as one class), by notice in writing to the
Company (and to the Trustee if given by Holders), may declare the principal
amount (in the case of Original Issue Discount Securities, such portion of the
principal amount to be determined as provided in Section 2.01(9)) of all the
Securities to be due and payable immediately, and upon any such declaration the
same shall become and shall be immediately due and payable, anything in this
Indenture or in the Securities contained to the contrary notwithstanding. The
foregoing provisions are, however, subject to the condition that if, at any time
after the principal amount (in the case of Securities that are Original Issue
Discount Securities, such portion of the principal amount as may be determined
in accordance with the terms of that series) of the Securities of any series or
of all the Securities, as the case may be, shall have been so declared due and
payable, and before any judgment or decree for the payment of the moneys due
shall have been obtained or entered as hereinafter provided, the Company shall
pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Securities of such series or of all of the
Securities, as the case may be, and the principal of and premium, if any, on all
Securities of such series or of all the Securities, as the case may be, which
shall have become due otherwise than by acceleration (with interest on overdue
installments of interest, to the extent that payment of such interest is
enforceable under applicable law, and on such principal and premium, if any, at
the rate of interest or yield to Maturity (in the case of Original Issue
Discount Securities) borne by the Securities of such series or at the rates of
interest or yields to Maturity of all the Securities, as the case may be, to the
date of such payment or deposit) and 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 any and all defaults under this
Indenture, other than the nonpayment of principal of or premium, if any, or
accrued interest, if any, on Securities of such series or of all of the
Securities, as the case may be, which shall have become due by acceleration,
shall have been remedied--then and in every such case the Holders of a majority
in aggregate principal amount at Stated Maturity of the Securities of such
series or of all of the Securities, as the case may be, then outstanding, by
written notice to the Company and to the Trustee, may waive all defaults with
respect to that series or of all of the Securities, as the case may be, and
23
rescind and annul such declaration and its consequences; but no waiver or
rescission and annulment shall extend to or shall affect any subsequent default,
or shall impair any right consequent thereon.
In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned because
of such rescission or annulment or for any other reason or shall have been
determined adversely to the Trustee, then and in every such case the Company and
the Trustee shall be restored respectively to their several positions and rights
hereunder, and all rights, remedies and powers of the Company and the Trustee
shall continue as though no such proceeding had been taken.
SECTION 7.02. Payment of Securities on Default; Suit Therefor. In case
(1) default shall be made in the payment of any installment of interest upon any
Security of any series as and when the same shall become due and payable, and
such default shall have continued for a period of 30 days, or (2) default shall
be made in the payment of the principal of or premium, if any, on any Security
of any series as and when the same shall have become due and payable, whether at
Maturity of Securities of that series or otherwise, or (3) default is made in
the making or satisfaction of any sinking fund payment or analogous obligation
when the same becomes due by the terms of the Securities of any series and such
default shall continue for a period of 30 days -- then, upon demand of the
Trustee, the Company shall pay to the Trustee, for the benefit of the Holder of
any such Security, the whole amount that then shall have become due and payable
on any such Security for principal and premium, if any, or interest, if any, or
both, as the case may be, with interest on the overdue principal and premium, if
any, and (to the extent that payment of such interest is enforceable under
applicable law) on the overdue installments of interest at the rate of interest
or yield to Maturity (in the case of Original Issue Discount Securities) borne
by any such Security and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including reasonable
compensation to the Trustee, its agents, attorneys and counsel, and any expenses
or liabilities incurred by the Trustee hereunder other than through its
negligence or bad faith.
In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor upon such
Securities and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property, wherever situated, of the Company or
any other obligor upon such Securities.
In case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Securities of any
series under any Federal or State bankruptcy law or other similar law, or in
case a receiver or trustee shall have been appointed for the property of the
Company or such other obligor, or in the case of any other similar judicial
proceedings relative to the Company or other obligor on the Securities of any
series, or to the creditors or property of the Company or such other obligor,
the Trustee (irrespective of whether the principal of any Securities of any
series 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
pursuant to the provisions of this Section 7.02) shall be entitled and
empowered, by intervention in such proceedings or otherwise, to file and prove a
claim or claims for the whole amount of principal and premium, if any, and
interest, if any, owing and unpaid in respect of the Securities of any series
(in the case of Securities that are Original Issue Discount Securities, such
principal amount as would be then due and payable upon declaration of
acceleration in accordance with the terms of that series) and, in case of any
judicial proceedings, to file such proofs of claim and 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 allowed
in such judicial proceedings relative to the Company or any other obligor on the
Securities of any series, its or their creditors, or its or their property, and
to collect and receive any moneys or other property payable or deliverable on
any such claims, and to distribute the same after the deduction of its charges
and expenses; and any receiver, assignee, liquidator, sequestrator or trustee in
bankruptcy or reorganization is hereby authorized by each of the Holders to make
such payments to the Trustee, and, in the event that the Trustee shall consent
to the making of such
24
payments directly to the Holders, to pay to the Trustee any amount due it for
compensation, expenses, disbursements and advances of the Trustee, its agents or
counsel, and any other amounts due to the Trustee under Section 8.06 hereof.
Nothing herein contained shall be deemed to authorize the Trustee to
approve, consent, accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment, or composition affecting the Securities
or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.
All rights of action and of asserting claims under this Indenture, or under
any of the Securities, may be enforced by the Trustee without the possession of
any of the Securities, or the production thereof at any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee with respect to the Securities of any series shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall be for
the ratable benefit of the Holders of the Securities in respect of which such
action is taken.
SECTION 7.03. Application of Moneys Collected by Trustee. Any moneys
collected by the Trustee with respect to any series of Securities under this
Article Seven shall be applied in the order following, at the date or dates
fixed by the Trustee for the distribution of such moneys on account of
principal, premium, if any, or interest, if any, upon presentation of the
several Securities of such series or the coupons appertaining thereto, as the
case may be, and stamping thereon the payment, if only partially paid, and upon
surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under
Section 8.06 hereof;
SECOND: In case the principal of the outstanding Securities of that
series shall not have become due and be unpaid, to the payment of interest
on the Securities of that series, in the order of the maturity of the
installments of such interest with interest (to the extent that such
interest has been collected by the Trustee) upon the overdue installments
of interest at the rate of interest (or yield to maturity in the case of
Original Issue Discount Securities) borne by the Securities of that series,
such payments to be made ratably to the Persons entitled thereto;
THIRD: In case the principal of the outstanding Securities of a
series in respect of which such moneys have been collected shall have
become due and payable, by declaration or otherwise, to the payment of the
whole amount then owing and unpaid upon the Securities of that series for
principal and premium, if any, and interest, if any, with interest on the
overdue principal and premium, if any, and (to the extent that such
interest has been collected by the Trustee) upon any overdue installments
of interest at the rate of interest (or yield to Maturity in the case of
Original Issue Discount Securities) borne by the Securities of that series,
and in case such moneys shall be insufficient to pay in full the whole
amounts so due and unpaid upon the Securities of that series, then to the
payment of such principal and premium, if any, and interest, if any,
without preference or priority of principal and premium, if any, over
interest, or of interest over principal and premium, if any, or of any
installment of interest over any other installment of interest, or of any
Security of that series over any other Security of that series, ratably to
the aggregate of such principal and premium, if any, and any accrued and
unpaid interest.
FOURTH: Any surplus then remaining shall be paid to the Company or to
such other Person as shall be entitled to receive it.
SECTION 7.04. Proceedings by Holders. No Holder of any Security of any
series or of any coupon appertaining thereto shall have any right by virtue of
or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless such Holder previously shall have given to the Trustee
written notice of default and of the continuance thereof, as hereinbefore
provided, and unless
25
also the Holders of not less than 25% in aggregate principal amount at Stated
Maturity of the Securities of that series (or, in case of an Event of Default
described in clause (d), (e) or (f) of Section 7.01, 25% in aggregate principal
amount of all Securities then outstanding (in the case of Original Issue
Discount Securities, such principal amount to be determined as provided in
Section 2.01(9))) shall have made written request upon the Trustee to institute
such action, suit or proceeding in its own name as the Trustee hereunder and
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby,
and the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity, shall have neglected or refused to institute any such action, suit
or proceeding and no direction inconsistent with such written request shall have
been given to the Trustee during such 60 day period by the Holders of a majority
in principal amount at Stated Maturity of the outstanding Securities of such
series, it being understood and intended, and being expressly covenanted by the
Holder of every Security of that series with every other Holder of every
Security of that series or coupons appertaining thereto and the Trustee, that no
one or more Holders of Securities of any series shall have any right in any
manner whatever by virtue of or by availing of any provision of this Indenture
to affect, disturb or prejudice the rights of any other Holder of Securities of
that series or any other series or coupons appertaining thereto, or to obtain or
seek to obtain priority over or preference to any other such Holder, or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal, ratable and common benefit of all Holders of Securities.
Notwithstanding any other provisions in this Indenture, however, the right
of any Holder of any Security or coupon to receive payment of the principal of,
and premium, if any, and interest, if any, on such Security, on or after the
respective Stated Maturities expressed in such Security or, in the case of
redemption or repayment on or after the redemption date or repayment date, as
the case may be, and to institute suit for the enforcement of any such payment
on or after such respective date shall not be impaired or affected without the
consent of such Holder.
SECTION 7.05. Proceedings by Trustee. In case of an Event of Default
hereunder, the Trustee, in its discretion, may proceed to protect and enforce
the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.
SECTION 7.06. Remedies Cumulative and Continuing. All powers and remedies
given by this Article Seven to the Trustee or to the Holders of Securities or
coupons shall, to the extent permitted by law, be deemed cumulative and not
exclusive of any thereof or of any other powers and remedies available to the
Trustee or such Holders, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture, and no delay or omission of the Trustee or of any Holder to exercise
any right or power accruing upon any default occurring and continuing as
aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or an acquiescence therein; and, subject to the
provisions of Section 7.04, every power and remedy given by this Article Seven
or by law to the Trustee or to the Holders may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or by the Holders.
SECTION 7.07. Direction of Proceedings and Waiver of Defaults by Majority
of Holders. The Holders of a majority in aggregate principal amount of the
Securities of all series affected (voting as one class) (in the case of Original
Issue Discount Securities, such principal amount to be determined as provided in
Section 2.01(9)) at the time outstanding 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,
provided, however, that such direction shall not conflict with any rule of law
or this Indenture, and provided further, that (subject to the provisions of
Section 8.01) the Trustee may take any action deemed proper by the Trustee which
is not inconsistent with such direction and the Trustee shall have the right to
decline to follow any such direction if the Trustee, being advised by counsel,
shall determine that the action or proceeding so directed may not lawfully be
taken or if the Trustee in good faith by its board of directors or trustees,
executive committee, or a trust committee of directors or
26
trustees or Responsible Officers shall determine that the action or proceedings
so directed would involve the Trustee in personal liability. Prior to any
declaration accelerating the maturity of the Securities of a particular series
(or all of the Securities as the case may be), the Holders of a majority in
aggregate principal amount at Stated Maturity of the Securities of that series
at the time outstanding may on behalf of the Holders of all the Securities of
that series waive any past default or Event of Default described in clause (a),
(b), (c) or (g) of Section 7.01 (or, in the case of an event specified in clause
(d), (e) or (f) of Section 7.01, the Holders of a majority in aggregate
principal amount of all the Securities then outstanding (in the case of Original
Issue Discount Securities, such principal amount to be determined as provided in
Section 2.01(9))) may waive in writing such default or Event of Default and its
consequences except (1) a default in the payment of interest, if any, or
premium, if any, on, or the principal of, any of the Securities or in the
payment of any sinking fund installment or analogous obligation with respect to
Securities or (2) in respect of a covenant or provision hereof which under
Article Eleven cannot be modified or amended without the consent of the Holder
of each Security outstanding of the series affected. Upon any such waiver the
Company, the Trustee and the Holders of Securities of that series (or all of the
Securities, as the case may be) shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon. Whenever any default or Event of Default hereunder shall have been
waived as permitted by this Section 7.07, said default or Event of Default shall
for all purposes of the Securities and this Indenture be deemed to have been
cured and to be not continuing.
SECTION 7.08. Notice of Defaults. The Trustee shall, within 90 days after
the occurrence of any default hereunder with respect to Securities of any
series, mail to all Holders of Securities of that series in the manner and to
the extent provided in Section 6.04(c) notice of such default known to the
Trustee, unless such default shall have been cured prior to the giving of such
notice; provided, however, that, except in the case of default in the payment of
the principal of or premium, if any, or interest, if any, on any of the
Securities of that series or in the making of any sinking fund payment or
analogous obligation with respect to Securities of that series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors or trustees, the executive committee, or a trust committee of
directors or Responsible Officers of the Trustee in good faith determines that
the withholding of such notice is in the interests of the Holders of Securities
of such series; and provided, further, that in the case of any default of the
character specified in Section 7.01(d) with respect to Securities of such
series, no such notice to Holders of Securities of such series shall be given
until at least 90 days after the occurrence thereof. For the purpose of this
Section, the term "default," with respect to Securities of any series, means any
event which is, or after notice or lapse of time, or both, would become, an
Event of Default with respect to Securities of such series. Except with respect
to a default or Event of Default pursuant to Section 7.01(a), (b) or (c), the
Trustee will not be charged with knowledge of any default or Event of Default
unless written notice thereof shall have been given to a Responsible Officer by
the Issuer or any Holder.
SECTION 7.09. Undertaking to Pay Costs. All parties to this Indenture
agree, and each Holder of any Security or coupon 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 an 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 7.09 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 at
Stated Maturity of the Securities outstanding of that series (or, in case of any
suit relating to or arising under clause (d), (e) or (f) of Section 7.01, 10% in
principal amount of all Securities outstanding (in the case of Original Issue
Discount Securities, such principal amount to be determined as provided in
Section 2.01(9))) 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 any
Security on or after the respective Stated Maturities expressed in such
Securities (or in the case of redemption or repayment on or after the redemption
date or repayment date).
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ARTICLE EIGHT
CONCERNING THE TRUSTEE
SECTION 8.01. Duties and Responsibilities of Trustee. With respect to the
Holders of any series of Securities issued hereunder, the Trustee, prior to the
occurrence of an Event of Default with respect to the Securities of that series
and after the curing of all Events of Default which may have occurred with
respect to the Securities of that series, undertakes to perform such duties and
only such duties as are specifically set forth in this Indenture and no implied
covenants or obligations with respect to such series shall be read into this
Indenture against the Trustee. In case an Event of Default with respect to the
Securities of any series has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture with respect to that series and use the same degree of care and skill
in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.
Prior to the occurrence of an Event of Default with respect to the
Securities of a series, and after the curing or waiving of all Events of Default
with respect to that series which may have occurred and in the absence of bad
faith on the part of the Trustee, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but, in the case of any such certificates or
opinions which by any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture.
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:
(a) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer or Officers of the Trustee, 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 pursuant to Section 7.07 of any series 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.
None of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers, if it has reasonable ground for believing that the
repayment of such funds or adequate indemnity 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 8.01.
SECTION 8.02. Reliance on Documents, Opinions, etc. Except as otherwise
provided in Section 8.01:
(a) the Trustee may rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, bond, debenture or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;
(b) any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by a written statement signed in the name
of the Company by its Chairman and Chief Executive Officer,
28
its President or its Senior Vice President, Chief Financial Officer and
Treasurer (unless other evidence in respect thereof is herein specifically
prescribed); and any resolution of the Board of Directors shall be sufficiently
evidenced to the Trustee by a copy thereof certified by the Secretary or an
Assistant Secretary of the Company;
(c) whenever in the administration of the Indenture, the Trustee shall
deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically provided) may, in the absence of bad faith on its part,
rely on an Officers' Certificate;
(d) the Trustee may consult with its counsel or require an Opinion of
Counsel and any such advice or Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or omitted by it
hereunder in good faith and in accordance with such advice or Opinion of
Counsel;
(e) the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Holders, pursuant to the provisions of this Indenture, unless such
Holders shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which may be incurred therein or
thereby;
(f) the Trustee shall not be liable for any action taken or omitted by it
in good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture;
(g) prior to the occurrence of an Event of Default hereunder and after the
curing or waiving of all Events of Default, the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond, debenture, coupon or other paper or document, unless
requested in writing to do so by the Holders of not less than a majority in
principal amount at Stated Maturity of the Securities then outstanding of any
series affected or of all the Securities, as the case may be; provided, however,
that if the payment within a reasonable time to the Trustee of the costs,
expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture, the
Trustee may require reasonable indemnity against such expense or liability as a
condition to so proceeding; and
(h) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys, and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder.
SECTION 8.03. No Responsibility for Recitals, etc. The recitals contained
herein and in the Securities (except in the Trustee's certificate of
authentication) shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture, of any of
the Securities or coupons or of any prospectus related to the Securities of any
series; provided, however, that the Trustee shall not be relieved of its duty to
authenticate Securities as authorized by this Indenture. The Trustee shall not
be accountable for the use or application by the Company of any Securities or
the proceeds of any Securities authenticated and delivered by the Trustee in
conformity with the provisions of this Indenture.
SECTION 8.04. Trustee, Paying Agent or Registrar May Own Securities. The
Trustee or any paying agent or Security registrar or any other agent of the
Company or the Trustee, in its individual or any other capacity, may become the
owner or pledgee of Securities or the coupons appertaining thereto with the same
rights it would have if it were not Trustee, paying agent or Security registrar.
SECTION 8.05. Moneys to be Held in Trust. Subject to the provisions of
Section 13.04, all moneys received by the Trustee or any paying agent shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received, but need not be segregated from other funds except to
the extent required
29
by law. The Trustee and any paying agent shall be under no liability for
interest on any moneys received by it hereunder except such as it may agree with
the Company to pay thereon.
SECTION 8.06. Compensation and Expenses of Trustee. The Company shall pay
to the Trustee from time to time, and the Trustee shall be entitled to,
reasonable compensation (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust), and the Company
shall pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not
regularly in its employ) except any such expense, disbursement or advance as may
be attributable to its negligence or willful misconduct. The Company shall
indemnify the Trustee for, and shall hold it harmless against, any loss,
liability or expense incurred without negligence or willful misconduct on the
part of the Trustee and arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of defending
itself against any claim of liability arising in connection with its duties
under this Indenture. The obligations of the Company under this Section 8.06 to
compensate the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the Holders of particular
Securities.
SECTION 8.07. Officers' Certificate as Evidence. Except as otherwise
provided in Section 8.01, whenever in the administration of the provisions of
this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or willful misconduct on the part
of the Trustee, be deemed to be conclusively proved and established by an
Officers' Certificate delivered to the Trustee, and such certificate, in the
absence of negligence or willful misconduct on the part of the Trustee, shall be
full warrant to the Trustee for any action taken or omitted by it under the
provisions of this Indenture upon the faith thereof.
SECTION 8.08. Qualification of Trustee; Conflicting Interests. The Trustee
with respect to each series of Securities issued hereunder shall be subject to
the provisions of Section 310(b) of the Trust Indenture Act of 1939 during the
period of time provided for therein. In determining whether the Trustee has a
conflicting interest as defined in Section 310(b) of the Trust Indenture Act of
1939 with respect to any series of Securities issued hereunder, there shall be
excluded from the operation of this paragraph of this Indenture the Securities
of any particular series other than that series and any indenture or indentures
under which other securities, or certificates of interest or participation in
other securities, of the Company are outstanding, as provided in Section 3.10(b)
of the Trust Indenture Act of 1939. Nothing herein shall prevent the Trustee
from filing with the Securities and Exchange Commission the application referred
to in the second to the last paragraph of Section 3.10(b) of the Trust Indenture
Act of 1939.
SECTION 8.09. Eligibility of Trustee. The Trustee with respect to each
series of Securities hereunder shall at all times be either:
(a) a corporation organized and doing business under the laws of the
United States of America, any state thereof, or the District of Columbia,
authorized under such laws to exercise corporate trust powers, and subject to
supervision or examination by Federal or State authority, or
(b) a corporation or other Person organized and doing business under the
laws of a foreign government that is permitted to act as Trustee pursuant to a
rule, regulation, or other order of the Securities and Exchange Commission,
authorized under such laws to exercise corporate trust powers and subject to the
supervision or examination by authority of such foreign government or a
political subdivision thereof substantially equivalent to supervision or
examination applicable to a United States institutional trustee, having a
combined capital and surplus
30
of at least $10,000,000. If such corporation publishes reports of condition at
least annually, pursuant to law or the requirements of the aforesaid supervising
or examining authority, then for the purposes of this Section 8.09, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. Neither the Company nor any person directly or indirectly
controlling, controlled by, or under common control with the Company shall serve
as trustee with respect to any series of Securities issued hereunder. In case at
any time the Trustee with respect to any series of Securities shall cease to be
eligible in accordance with the provisions of this Section 8.09, the Trustee
shall resign immediately in the manner and with the effect specified in
Section 8.10.
SECTION 8.10. Resignation or Removal of Trustee. (a) The Trustee may
resign with respect to any series of Securities at any time by giving written
notice of such resignation to the Company and by giving notice thereof to the
Holders of the applicable series of Securities in manner and to the extent
provided in Section 6.04(c). Upon receiving such notice of resignation with
respect to the applicable series of Securities, the Company shall promptly
appoint a successor trustee with respect to that series by written instrument,
in duplicate, executed by or pursuant to a resolution of the Board of Directors,
one copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee. If a successor trustee shall not have been so
appointed with respect to any series of Securities, or shall not have accepted
appointment within 30 days after the giving of such notice of resignation to the
Holders of such series, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee, or any Holder
who has been a bona fide holder of a Security or Securities of the applicable
series for at least six months may, subject to the provisions of Section 7.09,
on behalf of such Holder and all others similarly situated, petition any such
court for the appointment of a successor trustee with respect to that series.
(b) In case at any time any of the following shall occur--
(1) the Trustee shall fail to comply with the provisions of subsection (a)
of Section 8.08 after written request therefor by the Company or by any Holder
who has been a bona fide holder of a Security or Securities of the applicable
series for at least six months, or
(2) the Trustee shall cease to be eligible in accordance with the
provisions of Section 8.09 and shall fail to resign after written request
therefor by the Company or by any such Holder, or
(3) the Trustee shall become incapable of acting, with respect to any
series of Securities or shall be adjudged a bankrupt or insolvent, or a receiver
of the Trustee or of its property shall be appointed, or any public officer
shall take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation -- then, in any such
case, the Company may remove the Trustee with respect to any one or more of such
series of Securities and appoint a successor trustee of that series by written
instrument, in duplicate, executed by or pursuant to a resolution of the Board
of Directors, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or subject to the provisions of
Section 7.09, any Holder who has been a bona fide Holder of a Security or
Securities of that series for at least six months may, on behalf of such Holder
and all others similarly situated, subject to Section 3.15(e) of the Trust
Indenture Act of 1939, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee with respect
to that series.
(c) The Holders of a majority in aggregate principal amount at Stated
Maturity of the Securities of any series at the time outstanding may at any time
remove the Trustee with respect to such series and nominate with respect to such
series a successor trustee which shall be deemed appointed as successor trustee
with respect to such series unless within 10 days after such nomination the
Company objects thereto, in which case the Trustee so removed or any Holder of
Securities of the series may petition any court of competent jurisdiction for
appointment of a successor trustee with respect to such series upon the terms
and conditions and otherwise as provided in subsection (a) of this Section 8.10.
31
(d) Any resignation or removal of the Trustee and any appointment of a
successor trustee with respect to an applicable series of Securities pursuant to
any of the provisions of this Section 8.10 shall become effective upon
acceptance of appointment by the successor trustee for that series as provided
in Section 8.11.
(e) The Company shall give notice as provided in Section 16.05 of each
resignation or removal of the Trustee with respect to any series of Securities.
Each notice shall include the name of such successor trustee and the address of
its Principal Office and shall be given within 60 days of such event.
SECTION 8.11. Acceptance by Successor Trustee. Any successor trustee
appointed as provided in Section 8.10 shall execute, acknowledge and deliver to
the Company and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee with respect to all or any applicable series shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts, duties and
obligations with respect to such series as its predecessor hereunder, with like
effect as if originally named as trustee herein; but, nevertheless, on the
written request of the Company or of the successor trustee, the trustee ceasing
to act shall, upon payment of any amounts then due it pursuant to the provisions
of Section 8.06, execute and deliver an instrument transferring to such
successor trustee all the rights and powers and trusts with respect to any
series of Securities of the trustee so ceasing to act. Upon request of any
successor trustee, the Company shall execute any and all instruments in writing
in order more fully and certainly to vest in and confirm to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of
Section 8.06.
In case of the appointment hereunder of a successor trustee with respect to
the Securities of any one or more (but not all) series, the Company, the
predecessor trustee and each successor trustee with respect to the Securities of
any applicable series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which shall
contain (1) such provisions as shall be necessary or desirable to transfer and
confirm to, and vest in each successor trustee all of the rights, powers and
duties of the predecessor trustee with respect to the Securities of that or
those series to which the appointment of such successor trustee relates, (2) if
the retiring trustee is not retiring with respect to all Securities, it shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the predecessor trustee with
respect to the Securities of any series as to which the predecessor trustee is
not retiring shall continue to be vested in the predecessor trustee and (3)
shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such trustees co-trustees of the
same trust and that each such trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such trustee.
No successor trustee shall accept appointment as provided in this
Section 8.11 unless at the time of such acceptance such successor trustee shall
be qualified under the provisions of Section 8.08 and eligible under the
provisions of Section 8.09.
Upon acceptance of appointment by a successor trustee as provided in this
Section 8.11, the Company shall mail notice of the succession of such trustee
hereunder to all the Registered Holders of such series as the names and
addresses of such Holders shall appear on the registry books of the Company and
shall publish notice of such event once in an Authorized Newspaper in the Place
of Payment. If the Company fails to mail such notice in the prescribed manner
within 10 days after the acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Company.
SECTION 8.12. Succession by Merger, etc. Any corporation into which the
Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation succeeding to the business of the
Trustee, shall
32
be the successor of the Trustee hereunder provided such corporation shall be
qualified under the provisions of Section 8.08 and eligible under the provisions
of Section 8.09 without the execution or filing of any paper or any further act
on the part of any of the parties hereto.
In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any Securities of any series shall have been
authenticated but not delivered, any such successor to the Trustee by merger,
conversion or consolidation to such authenticating Trustee may adopt such
certificate of authentication and deliver such Securities of any series so
authenticated with the same effect as if such successor to the Trustee had
itself authenticated such Securities.
SECTION 8.13. Limitation on Rights of Trustee as a Creditor. (a) Subject
to the provision of subsection (b) of this Section 8.13, if the Trustee shall be
or shall become a creditor, directly or indirectly, secured or unsecured, of the
Company or of any other obligor on the Securities of any series within three
months prior to a default, as defined in subsection (c) of this Section 8.13, or
subsequent to such a default, then, unless and until such default shall be
cured, the Trustee shall set apart and hold in special account for the benefit
of the Trustee individually, the Holders of the Securities of any series, and
the holders of other indenture securities (as defined in paragraph (2) of
subsection (c) of this Section 8.13):
(1) an amount equal to any and all reductions in the amount due and owing
upon any claim as such creditor in respect of principal or interest, effected
after the beginning of such three-month period and valid as against the Company
and its other creditors, except any such reduction resulting from the receipt or
disposition of any property described in paragraph (2) of this subsection, or
from the exercise of any right of set-off which the Trustee could have exercised
if a petition in bankruptcy had been filed by or against the Company upon the
date of such default; and
(2) all property received by the Trustee in respect of any claim as such
creditor, either as security therefor, or in satisfaction or composition
thereof, or otherwise, after the beginning of such three-month period, or an
amount equal to the proceeds of any such property, if disposed of, subject
however, to the rights, if any, of the Company and its other creditors in such
property or such proceeds.
Nothing herein contained, however, shall affect the right of the Trustee:
(A) to retain for its own account (i) payments made on account of any such
claim by any person (other than the Company) who is liable thereon, and (ii) the
proceeds of the bona fide sale of any such claim by the Trustee to a third
person, and (iii) distributions made in cash, securities, or other property in
respect of claims filed against the Company in bankruptcy or receivership or in
proceedings for reorganization pursuant to Federal or State bankruptcy laws or
other similar laws;
(B) to realize, for its own account, upon any property held by it as
security for any such claim, if such property was so held prior to the beginning
of such three-month period;
(C) to realize, for its own account, but only to the extent of the claim
hereinafter mentioned, upon any property held by it as security for any such
claim, if such claim was created after the beginning of such three-month period
and such property was received as security therefor simultaneously with the
creation thereof, and if the Trustee shall sustain the burden of proving that at
the time such property was so received the Trustee had no reasonable cause to
believe that a default, as defined in subsection (c) of this Section 8.13, would
occur within three months; or
(D) to receive payment on any claim referred to in paragraph (B) or (C),
against the release of any property held as security for such claim as provided
in such paragraph (B) or (C), as the case may be, to the extent of the fair
value of such property.
33
For the purposes of paragraphs (B), (C) and (D), property substituted after
the beginning of such three-month period for property held as security at the
time of such substitution shall, to the extent of the fair value of the property
released, have the same status as the property released, and, to the extent that
any claim referred to in any of such paragraphs is created in renewal of or in
substitution for or for the purpose of repaying or refunding any pre-existing
claim of the Trustee as such creditor, such claim shall have the same status as
such pre-existing claim.
If the Trustee shall be required to account, the funds and property held in
such special account and the proceeds thereof shall be apportioned between the
Trustee, the Holders of Securities of a series as to which such Trustee is
acting as Trustee hereunder and the holders of other indenture securities in
such manner that the Trustee, the Holders and the holders of other indenture
securities realize, as a result of payments from such special account and
payments of dividends on claims filed against the Company in bankruptcy or
receivership or in proceedings for reorganization pursuant to the Federal or
State bankruptcy laws or other similar laws, the same percentage of the
irrespective claims, figured before crediting to the claim of the Trustee
anything on account of the receipt by it from the Company of the funds and
property in such special account and before crediting to the respective claims
of the Trustee, the Holders and the holders of other indenture securities
dividends on claims filed against the Company in bankruptcy or receivership or
in proceedings for reorganization pursuant to the Federal or State bankruptcy
laws or other similar laws, but after crediting thereon receipts on account of
the indebtedness represented by their respective claims from all sources other
than from such dividends and from the funds and property so held in such special
account. As used in this paragraph, with respect to any claim, the term
"dividends" shall include any distribution with respect to such claim, in
bankruptcy or receivership or in proceedings for reorganization pursuant to the
Federal or State bankruptcy laws or other similar laws, whether such
distribution is made in cash, securities or other property, but shall not
include any such distribution with respect to the secured portion, if any, of
such claim. The court in which such bankruptcy, receivership or proceeding for
reorganization is pending shall have jurisdiction (i) to apportion between the
Trustee, the Holders and the holders of other indenture securities, in
accordance with the provisions of this paragraph, the funds and property held in
such special account and the proceeds thereof, or (ii) in lieu of such
apportionment, in whole or in part, to give to the provisions of this paragraph
due consideration in determining the fairness of the distributions to be made to
the Trustee, the Holders and the holders of other indenture securities with
respect to their respective claims, in which event it shall not be necessary to
liquidate or to appraise the value of any securities or other property held in
such special account or as security for any such claim, or to make a specific
allocation of such distributions as between the secured and unsecured portions
of such claims, or otherwise to apply the provisions of this paragraph as a
mathematical formula.
Any Trustee who has resigned or been removed after the beginning of such
three-month period shall be subject to the provisions of this subsection (a) as
though such resignation or removal had not occurred. If any Trustee has resigned
or been removed prior to the beginning of such three-month period, it shall be
subject to the provisions of this subsection (a) if and only if the following
conditions exist:
(i) the receipt of property or reduction of claim which would have given
rise to the obligation to account, if such Trustee had continued as trustee,
occurred after the beginning of such three-month period; and
(ii) such receipt of property or reduction of claim occurred within three
months after such resignation or removal.
(b) There shall be excluded from the operation of subsection (a) of this
Section 8.13 a creditor relationship arising from:
(1) the ownership or acquisition of securities issued under any
indenture, or any security or securities having a maturity of one year or more
at the time of acquisition by the Trustee;
(2) advances authorized by a receivership or bankruptcy court of
competent jurisdiction, or by this Indenture, for the purpose of preserving any
property which shall at any time be subject to the lien of this Indenture
34
or of discharging tax liens or other prior liens or encumbrances thereon, if
notice of such advance and of the circumstances surrounding the making thereof
is given to the Holders at the time and in the manner provided in Section 6.04
with respect to reports pursuant to subsections (a) and (b) thereof,
respectively;
(3) disbursements made in the ordinary course of business in the capacity
of trustee under an indenture, transfer agent, registrar, custodian, paying
agent, fiscal agent or depositary, or other similar capacity;
(4) an indebtedness created as a result of services rendered or premises
rented; or an indebtedness created as a result of goods or securities sold in a
cash transaction as defined in subsection (c) of this Section 8.13;
(5) the ownership of stock or of other securities of a corporation
organized under the provisions of section 25(a) of the Federal Reserve Act, as
amended, which is directly or indirectly a creditor of the Company; or
(6) the acquisition, ownership, acceptance or negotiation of any drafts,
bills of exchange, acceptances or obligations which fall within the
classification of self-liquidating paper as defined in subsection (c) of this
Section 8.13.
(c) For the purposes of this Section 8.13:
(1) The term "default" shall mean any failure to make payment in full of
the principal of or interest upon one of the Securities of any series or upon
the other indenture securities when and as such principal or interest becomes
due and payable.
(2) The term "other indenture securities" shall mean securities upon
which the Company is an obligor (as defined in the Trust Indenture Act of 1939)
outstanding under any other indenture (A) under which the Trustee is also
trustee, (B) which contains provisions substantially similar to the provisions
of subsection (a) of this Section 8.13, and (C) under which a default exists at
the time of the apportionment of the funds and property held in said special
account.
(3) The term "cash transaction" shall mean any transaction in which full
payment for goods or securities sold is made within seven days after delivery of
the goods or securities in currency or in checks or other orders drawn upon
banks or bankers and payable upon demand.
(4) The term "self-liquidating paper" shall mean any draft, xxxx of
exchange, acceptance or obligation which is made, drawn, negotiated or incurred
by the Company for the purpose of financing the purchase, processing,
manufacture, shipment, storage or sale of goods, wares or merchandise and which
is secured by documents evidencing title to, possession of, or a lien upon, the
goods, wares or merchandise or the receivables or proceeds arising from the sale
of the goods, wares or merchandise previously constituting the security;
provided that the security is received by the Trustee simultaneously with the
creation of the creditor relationship with the Company arising from the making,
drawing, negotiating or incurring of the draft, xxxx of exchange, acceptance or
obligation.
(5) The term "Company" shall mean any obligor upon the Securities.
35
ARTICLE NINE
CONCERNING THE HOLDERS
SECTION 9.01. Action by Holders. (a) Whenever in this Indenture it is
provided that the Holders of a specified percentage in aggregate principal
amount at Stated Maturity of the Securities of any or all series may take any
action (including the making of any demand or request, the giving of any notice,
consent or waiver or the taking of any other action) the fact that at the time
of taking any such action the Holders of such specified percentage have joined
therein may be evidenced (A) by any instrument or any number of instruments of
similar tenor executed by Holders in person or by agent or proxy appointed in
writing, or (B) by the record of the Holders of Securities voting in favor
thereof at any meeting of Holders duly called and held in accordance with the
provisions of Article Ten or (C) by a combination of such instrument or
instruments and any such record of such meeting of such Holders.
(b) If the Company or Trustee shall solicit from the Holders of any or all
series any request, demand, authorization, direction, notice, consent, waiver or
other act, the Company or Trustee, as the case may be, may, at its option, by or
pursuant to resolution of the Board of Directors fix in advance a record date
for the determination of Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other act, but the Company
or Trustee, as the case may be, shall have no obligation to do so. If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other act may be given before or after the record date, but
only the Holders of record at the close of business on the record date shall be
deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Securities have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other
act, and for that purpose the Securities deemed to be outstanding shall be
computed as of the record date; provided, however, that no such authorization,
agreement or consent by the Holders on the record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture
not later than six months after the record date.
SECTION 9.02. Proof of Execution by Holders. Subject to the provisions of
Sections 8.01, 8.02 and 10.05, proof of the execution of any instrument by a
Holder, his agent or proxy shall be sufficient if made in accordance with such
reasonable rules and regulations as may be prescribed by the Trustee or in such
manner as shall be satisfactory to the Trustee. The ownership of Securities of
any series shall be proved by the registry books of the Company or by a
certificate of the registrar of the Securities of any series.
The record of any meeting of Holders of Securities may be proved in the
manner provided in Section 10.06.
SECTION 9.03. Who Deemed Absolute Owners. The Company, the Trustee, any
paying agent, any transfer agent and any Security registrar may treat the person
in whose name a Registered Security shall be registered upon the registry books
of the Company as the absolute owner of such Security (whether or not such
Security shall be overdue) for the purpose of receiving payment of principal of,
premium, if any, on and, if such Registered Security is a Fully Registered
Security, interest, if any, on, such Registered Security and for all other
purposes; and neither the Company nor the Trustee nor any paying agent nor any
transfer agent nor any Security registrar shall be affected by any notice to the
contrary. All such payments so made to any Holder for the time being or upon his
order shall be valid, and, to the extent of the sum or sums so paid, effectual
to satisfy and discharge the liability for moneys payable upon such Security.
SECTION 9.04. Company-Owned Securities Disregarded. In determining
whether the Holders of the requisite aggregate principal amount at Stated
Maturity of Securities have concurred in any direction, consent or waiver under
this Indenture, Securities which are owned by the Company or any other obligor
on such Securities or by any person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any
other obligor on the Securities shall be disregarded and deemed not to be
outstanding for the
36
purpose of any such determination; provided that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction or
consent only Securities which the Trustee knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as outstanding for the purposes of this Section 9.04 if the pledgee
shall establish to the satisfaction of the Trustee the pledgee's right to vote
such Securities and that the pledgee is not a person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Company or any such other obligor. In the case of a dispute as to such right,
any decision by the Trustee taken upon the advice of counsel shall be full
protection to the Trustee.
SECTION 9.05. Revocation of Consents; Future Holders Bound. (a) At any
time prior to but not after, the evidencing to the Trustee, as provided in
Section 9.01, of the taking of any action by the Holders of the percentage in
aggregate principal amount at Stated Maturity of the Securities of any or all
series, as the case may be, specified in this Indenture in connection with such
action, any Holder of a Security the number, letter or other distinguishing
symbol of which is shown by the evidence to be included in the Securities the
Holders of which have consented to such action may, by filing written notice
with the Trustee at the Principal Office of the Trustee and upon proof of
holding as provided in Section 9.02, revoke such action so far as concerns such
Holder and all future Holders and owners of such Security and any Securities
which may be issued in exchange or substitution therefor, irrespective of
whether or not any notation in regard thereto is made upon such Security or such
other Security issued in exchange or substitution therefor.
(b) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Security shall bind every future Holder of
the same Security and the Holder of every Security issued upon the registration
of transfer thereof or in exchange therefor or in lieu thereof, in respect of
any action taken, suffered or omitted by the Trustee or the Company in reliance
thereon, whether or not notation of such action is made upon such Security.
ARTICLE TEN
HOLDERS' MEETINGS
SECTION 10.01. Purposes of Meetings. A meeting of the Holders of
Securities of any or all series may be called at any time and from time to time
pursuant to the provisions of this Article Ten for any of the following
purposes:
(a) to give any notice to the Company or to the Trustee, or to give any
directions to the Trustee, or to consent to the waiving of any default hereunder
and its consequences, or to take any other action authorized to be taken by
Holders pursuant to any of the provisions of Article Seven;
(b) to remove the Trustee and nominate a successor trustee pursuant to the
provisions of Article Eight;
(c) to consent to the execution of an indenture or indentures supplemental
hereto pursuant to the provisions of Section 11.02; or
(d) to take any other action authorized to be taken by or on behalf of the
Holders of any specified aggregate principal amount at Stated Maturity of the
Securities of any or all series, as the case may be, under any other provisions
of this Indenture or under applicable law.
37
SECTION 10.02. Call of Meetings by Trustee. The Trustee may at any time
call a meeting of Holders of Securities of any or all series to take any action
specified in Section 10.01, to be held at such time and at such place in
Houston, Texas, or New York, New York, as the Trustee shall determine. Notice
of every meeting of the Holders of Securities of any or all 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 mailed to Holders of Registered
Securities of each series affected, at their addresses as they appear on the
registry books of the Company. Such notice shall be mailed or published, as the
case may be, not less than 20 nor more than 90 days prior to the date fixed for
the meeting. However, if all Securities of any series with respect to which the
meeting is to be held are Registered Securities no notice need be given except
notice by mail as hereinabove provided.
Failure to receive such notice or any defect therein shall in no case
affect the validity of any action taken at such meeting. Any meeting of Holders
of Securities of any or all series, as the case may be, shall be valid without
notice if the Holders of all such Securities outstanding, the Company and the
Trustee are present in person or by proxy or shall have waived notice thereof
before or after the meeting.
SECTION 10.03. Call of Meetings by Company or Holders. In case at any time
the Company, pursuant to a resolution of its Board of Directors, or the Holders
of at least 10% in aggregate principal amount at Stated Maturity of the
Securities then outstanding of any or all series, as the case may be, that may
be affected by the action proposed to be taken at the meeting, shall have
requested the Trustee to call a meeting of Holders of Securities of any or all
series, as the case may be, that may be so affected by written request setting
forth in a reasonable detail the action proposed to be taken at the meeting, and
the Trustee shall not have mailed the notice of such meeting within 20 days
after receipt of such request, then the Company or such Holders, in the amount
specified, may determine the time and the place in a location designated in
Section 10.02 for such meeting and may call such meeting to take any action
authorized in Section 10.01, by mailing notice thereof as provided in
Section 10.02.
SECTION 10.04. Qualification for Voting. To be entitled to vote at any
meeting of Holders of Securities, a Person shall (a) be a Holder of one or more
Securities with respect to which such meeting is being held or (b) be a Person
appointed by an instrument in writing as proxy by such a Holder. The only
Persons who shall be entitled to be present or to speak at any meeting of
Holders of Securities of any or all series, as the case may be, shall be the
Persons entitled to vote at such meeting and their counsel and any
representatives of the Trustee and its counsel and any representatives of the
Company and its counsel.
SECTION 10.05. Regulations. 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, in regard to proof of the
holding of Securities 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 fit.
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 10.03, in which case
the Company or the Holders 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 Holders of a majority
in principal amount at Stated Maturity of the Securities represented at the
meeting.
Subject to the provisions of Section 9.04, at any meeting each Holder of
Securities with respect to which such meeting is being held, or proxy therefor,
shall be entitled to one vote for each $1,000 in principal amount (in the case
of Original Issue Discount Securities, such principal amount to be determined as
provided in Section 2.01(9)) of such Securities held or represented by him;
provided, however, that no vote shall be cast or counted at any meeting in
respect of any such 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 other than as a Holder of Securities or proxy
therefor. At any meeting of Holders of Securities, the presence of Persons
holding or representing the Securities with respect to which such meeting is
being held in such aggregate principal amount sufficient to take action on the
business for the transaction of which such meeting was called shall constitute a
quorum, but, if less than a quorum is present, the Persons holding or
representing a majority in such aggregate principal amount of such Securities
38
represented at the meeting may adjourn such meeting with the same effect, for
all intents and purposes, as though a quorum had been present. Any meeting of
Holders of Securities with respect to which such meeting is being held duly
called pursuant to the provisions of Section 10.02 or 10.03 may be adjourned to
another specified time and place from time to time by vote of the Holders of a
majority in such aggregate principal amount of the Securities represented at the
meeting and entitled to vote, and the meeting may be held as so adjourned
without further notice.
SECTION 10.06. Voting. The vote upon any resolution submitted to any
meeting of Holders of Securities with respect to which such meeting is being
held shall be by written ballots on which shall be inscribed the signatures of
the Holders or of their representatives by proxy and the serial number or
numbers of the Securities 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 in duplicate of the proceedings of each
meeting of Holders 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 mailed as provided in Section 10.02. The record
shall show the serial numbers of the Securities voting in favor of or against
any resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee. Any record so signed and verified shall be conclusive evidence of the
matters therein stated.
SECTION 10.07. No Delay of Rights by Meeting. Nothing contained in this
Article Ten shall be deemed or construed to authorize or permit, by reason of
any call of a meeting of Holders of Securities or any rights expressly or
impliedly conferred hereunder to make such call, any hindrance or delay in the
exercise of any right or rights conferred upon or reserved to the Trustee or to
the Holders of Securities under any of the provisions of this Indenture or of
the Securities.
ARTICLE ELEVEN
SUPPLEMENTAL INDENTURES
SECTION 11.01. Supplemental Indentures without Consent of Holders.
Without the consent of any Holders of any series of Securities, the Company,
when authorized by or pursuant to a resolution of the Board of Directors, and
the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto for one or more of the following purposes:
(a) to evidence the succession of another corporation to the Company, or
successive successions, and the assumption by the successor corporation,
pursuant to Article Twelve hereof, of the covenants, agreements and obligations
of the Company herein and in the Securities contained;
(b) to add to the covenants of the Company such further covenants,
restrictions or conditions for the protection of the Holders of any series of
Securities as the Board of Directors and the Trustee shall consider to be for
the protection of the Holders of such Securities, and to make the occurrence, or
the occurrence and continuance, of a default in any of such additional
covenants, restrictions or conditions a default or an Event of Default
permitting the enforcement of all or any of the several remedies provided in
this Indenture as herein set forth; provided, however, that in respect of any
such additional covenant, restriction or condition such supplemental indenture
may provide for a particular period of grace after default (which period may be
shorter or longer than that allowed in the case of other defaults) or may
provide for an immediate enforcement upon such default or may limit the remedies
39
available to the Trustee upon such default and shall not adversely affect the
interests of the Holders of Securities of any series;
(c) to convey, transfer, assign, mortgage or pledge to the Trustee as
security for the Securities of any series, any property or assets which the
Company may desire or may be required to convey, transfer, assign, mortgage or
pledge in accordance with the provisions of Section 5.03 or Section 12.02;
(d) to establish the form or terms of Securities of any series as
permitted by Section 2.01;
(e) to cure any ambiguity, to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any supplemental
indenture, or to make such other provisions in regard to matters or questions
arising under this Indenture which shall not be inconsistent with the provisions
of this Indenture; provided, however, that such action shall not adversely
affect the interests of the Holders of Securities of any series;
(f) 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 8.11;
(g) to provide for the documentation necessary for the issuance of
Securities outside the United States of America; or
(h) to conform the Indenture to the provisions of the Trust Indenture Act
of 1939, as then in effect.
The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not be
obligated to, but may in its discretion, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this
Section 11.01 may be executed by the Company and the Trustee without the consent
of the Holders of any of the Securities at the time outstanding, notwithstanding
any of the provisions of Section 11.02.
SECTION 11.02. Supplemental Indentures with Consent of Holders of a
Series. With the consent (evidenced as provided in Section 9.01) of the Holders
of not less than 50% in aggregate principal amount at Stated Maturity of the
Securities at the time outstanding of each series affected by such supplemental
indenture or indentures, the Company, when authorized by or pursuant to a
resolution of the Board of Directors, and the Trustee may from time to time and
at any time 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 any supplemental indenture or of
modifying in any manner the rights of the Holders of the Securities of each such
series under this Indenture; provided, however, that no such supplemental
indenture shall without the consent of the Holder of each outstanding Security
affected thereby (i) extend the fixed Maturity of any Security, or reduce the
rate of interest or extend the time of payment of interest, if any, thereon or
reduce the principal thereof or the time during which premium is payable
thereon, or make the principal thereof or any premium or interest thereon
payable in any coin or currency other than that provided in the securities or
reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon an acceleration of the maturity thereof pursuant
to Section 7.01 or the amount thereof provable in bankruptcy pursuant to
Section 7.02 without the consent of the Holder of each Security so affected, or
(ii) reduce the percentage in principal amount at Stated Maturity of the
outstanding Securities, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is
40
required for any waiver of compliance with certain provisions hereof or of
certain defaults hereunder and their consequences provided for in this
Indenture, or (iii) modify any provision of this Section 11.02 or Section 7.07
hereof except to increase any such percentage or to provide certain other
provisions of this Indenture cannot be modified or waived without the consent of
the Holder of each Security affected thereby. A supplemental indenture which
changes or eliminates any covenant or other provision of this Indenture which
has expressly been included solely for the benefit of one or more particular
series of Securities, or which modifies the rights of the Holders of Securities
of such series with respect to such covenant or other provision, shall be deemed
not to affect the rights under this Indenture of the Holders of Securities of
any other series.
Upon the request of the Company, accompanied by a copy of a resolution of
the Board of Directors certified by its Secretary or Assistant Secretary
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Holders of such series as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.
It shall not be necessary for the consent of the Holders under this
Section 11.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.
SECTION 11.03. Compliance with Trust Indenture Act; Effect of Supplemental
Indentures. Any supplemental indenture executed pursuant to the provisions of
this Article Eleven shall comply with the Trust Indenture Act of 1939, as then
in effect. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article Eleven, this Indenture shall be and be deemed to be
modified and amended in accordance therewith and the respective rights,
limitation of rights, obligations, duties and immunities under this Indenture of
the Trustee, the Company and the Holders of the series of Securities affected
shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.
SECTION 11.04. Notation on Securities. Securities authenticated and
delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article Eleven may bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Board of
Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared and executed by the Company,
authenticated by the Trustee and delivered in exchange for the Securities of
such series then outstanding.
SECTION 11.05. Evidence of Compliance of Supplemental Indenture to be
Furnished Trustee. The Trustee, subject to the provisions of Sections 8.01
and 8.02, shall be entitled to receive and shall be fully protected in relying
upon, an Officers' Certificate and an Opinion of Counsel as conclusive evidence
that any supplemental indenture executed pursuant hereto is authorized and
permitted by this Indenture and complies with the requirements of this Article
Eleven.
41
ARTICLE TWELVE
CONSOLIDATION, MERGER AND SALE
SECTION 12.01. Company may Consolidate, etc., on Certain Terms. Subject
to any modification contained in any indenture supplemental hereto under which
any series of Securities is issued and subject to the provisions of
Section 12.02, nothing contained in this Indenture or in any of the Securities
shall prevent any consolidation or merger of the Company with or into any other
corporation or corporations (whether or not affiliated with the Company), or
successive consolidations or mergers in which the Company or its successor or
successors shall be a party or parties, or shall prevent any sale or conveyance
of all or substantially all the property of the Company, to any other
corporation (whether or not affiliated with the Company) authorized to acquire
and operate the same; provided, however, that upon any such consolidation,
merger, sale or conveyance, other than a consolidation or merger in which the
Company is the continuing corporation, the due and punctual payment of the
principal of and premium, if any, and interest, if any, on all of the
Securities, according to their tenor, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture and in such
series to be performed by the Company, shall be expressly assumed, by
supplemental indenture satisfactory in form to the Trustee, executed and
delivered to the Trustee by the corporation (if other than the Company) formed
by such consolidation, or into which the Company shall have been merged, or by
the corporation which shall have acquired such property; and provided further
that the Company or such successor corporation, as the case may be, shall not
immediately after such merger or consolidation, or such sale or conveyance, be
in default in the performance of any such covenant or condition.
SECTION 12.02. Securities to be Secured in Certain Events. If, upon any
consolidation or merger of the Company with or into any other corporation, or
upon any sale or conveyance of all or substantially all the property of the
Company to any other corporation, any of the property of the Company or of any
Restricted Subsidiary would thereupon become subject to any mortgage, lien or
pledge, the Company, prior to or simultaneously with such consolidation, merger,
sale or conveyance, will secure the Securities of each series outstanding
hereunder, equally and ratably with any other obligations of the Company or any
Restricted Subsidiary then entitled thereto, by a direct lien on all such
property prior to all liens other than any theretofore existing thereon.
SECTION 12.03. Successor Corporation to be Substituted. In case of any
such consolidation, merger, sale or conveyance and upon the assumption by the
successor corporation, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the due and punctual payment
of the principal of and premium, if any, and interest, if any, on all of the
Securities of each series and the due and punctual performance of all of the
covenants and conditions of this Indenture and in such series to be performed by
the Company, such successor corporation shall succeed to and be substituted for
the Company, with the same effect as if it had been named herein and, if the
Company is to be voluntarily dissolved, the Company shall thereupon be released
from all obligations hereunder and under the Securities of each series. Such
successor corporation thereupon may cause to be signed, and may issue either in
its own name or in the name of Lyondell Petrochemical Company any or all of the
Securities of each series issuable hereunder which theretofore shall not have
been signed by the Company and delivered to the Trustee; and, upon the order of
such successor corporation instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities which previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities which such successor corporation thereafter
shall cause to be signed and delivered to the Trustee for that purpose. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the other Securities of such series theretofore or
thereafter issued in accordance with the terms of this Indenture as though all
of such Securities had been issued at the date of the execution hereof.
42
SECTION 12.04. Opinion of Counsel to be Given Trustee. Before the Trustee
shall execute any supplemental indenture required pursuant to this Article
Twelve, the Trustee, subject to Sections 8.01 and 8.02, shall receive and shall
be fully protected in relying upon, an Officers' Certificate and an Opinion of
Counsel as conclusive evidence that any such consolidation, merger, sale or
conveyance and any such assumption complies with the provisions of this Article.
ARTICLE THIRTEEN
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 13.01. Discharge of Indenture. When (a) the Company shall deliver
to the Trustee for cancellation all Securities of any series theretofore
authenticated (other than any Securities of such series which shall have been
destroyed, lost or stolen or in lieu of or in substitution for which other
Securities shall have been authenticated and delivered) and not theretofore
canceled, or (b) all the Securities of any series not theretofore canceled or
delivered to the Trustee for cancellation shall have become due and payable, or
are by their terms to become due and payable within one year or are to be called
for redemption within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption, and the Company shall deposit with the
Trustee, in trust, funds (other than funds repaid by the Trustee to the Company
in accordance with Section 13.04) sufficient to pay at maturity or upon
redemption all of the Securities of such series (other than any Securities of
such series which shall have been mutilated, destroyed, lost or stolen and in
lieu of or in substitution for which other Securities shall have been
authenticated and delivered or which shall have been paid) not theretofore
canceled or delivered to the Trustee for cancellation, including principal and
premium, if any, and interest, if any, due or to become due to such date of
maturity or redemption date, as the case may be, and if in either case the
Company shall also pay or cause to be paid all other sums payable hereunder by
the Company, then this Indenture shall cease to be of further effect with
respect to Securities of such series, and the Trustee, on demand of the Company
accompanied by an Officers' Certificate and an Opinion of Counsel as required by
Section 16.07 and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture with
respect to Securities of such series, the Company, however, hereby agreeing to
reimburse the Trustee for any costs or expenses thereafter reasonably and
properly incurred and to compensate the Trustee for any services reasonably and
properly rendered by the Trustee in connection with this Indenture or the
Securities.
SECTION 13.02. Deposited Moneys to be Held in Trust by Trustee. All
moneys deposited with the Trustee pursuant to Section 13.01 shall be held in
trust and applied by it to the payment, either directly or through any paying
agent (including the Company if acting as its own paying agent), to the Holders
of the particular Securities for the payment or redemption of which such moneys
have been deposited with the Trustee, of all sums due and to become due thereon
for principal and interest and premium, if any.
SECTION 13.03. Paying Agent to Repay Moneys Held. Upon the satisfaction
and discharge of this Indenture, all moneys then held by any paying agent of the
Securities (other than the Trustee) shall, upon demand of the Company, be repaid
to it or paid to the Trustee, and thereupon such paying agent shall be released
from all further liability with respect to such moneys.
SECTION 13.04. Return of Unclaimed Moneys. Any moneys deposited with or
paid to the Trustee for payment of the principal of (and premium, if any) or
interest, if any, on Securities of any series and not applied but remaining
unclaimed by the Holders of Securities of that series for three years after the
date upon which the principal of, and premium, if any, or interest, if any, on
such Securities, as the case may be, shall have become due and payable, shall,
upon written demand, be repaid to the Company by the Trustee; and the Holder of
any of such Securities shall thereafter look only to the Company for any payment
which such Holder may be entitled to collect,
43
provided, however, that, before being required to make any such repayment, the
Trustee may (at the cost of the Company) mail to such Holders at their last
known address or cause to be published once a week for two successive weeks, in
each case on any day of the week, in an Authorized Newspaper in the Place of
Payment, a notice (in such form as may be deemed appropriate by the Trustee)
that said moneys remain unclaimed and that, after a date named therein, any
unclaimed balance of said moneys then remaining will be returned to the Company
(except that with respect to presentation of Securities for payment and
transfer, such term shall mean the office or agency of the Trustee in said city
at which at any particular time its corporate agency business shall be
conducted).
ARTICLE FOURTEEN
DEFEASANCE
SECTION 14.01. Applicability of Article. If pursuant to Section 2.01
provision is made for the defeasance of Securities of a series, then the
provisions of this Article shall be applicable except as otherwise specified as
contemplated by Section 2.01 for Securities of such series.
SECTION 14.02. Defeasance upon Deposit of Moneys or U.S. Government
Obligations. At the Company's option, either (i) the Company shall be deemed to
have been Discharged (as defined below) from its obligations with respect to
Securities of any series on the 91st day after the applicable conditions set
forth below have been satisfied, or (ii) the Company shall cease to be under any
obligation to comply with any term, provision or condition set forth in
Sections 5.03, 5.04, 5.08, 12.01 and 12.02 with respect to Securities of any
series at any time after the applicable conditions set forth below have been
satisfied:
(a) the Company shall have deposited or caused to be deposited irrevocably
with the Trustee as trust funds in trust, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of the Securities of such
series, (i) money in an amount, or (ii) U.S. Government Obligations (as defined
below), which through the payment of interest, principal and premium, if any, in
respect thereof in accordance with their terms will provide (without any
reinvestment of such interest, principal or premium), not later than one day
before the due date of any payment, money in an amount, or (iii) a combination
of (i) and (ii), sufficient, in the opinion (with respect to (ii) and (iii)) of
a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee at or prior to the time
of such deposit, to pay and discharge each installment of principal (including
any mandatory sinking fund payments) of, premium, if any, and interest on, the
outstanding Securities of such series on the dates such installments of
interest, principal or premium are due or the outstanding Securities of such
series are redeemable, if applicable, pursuant to Section 14.02(b) below;
(b) in case any of the Securities of such series are to be redeemed on any
date prior to their Stated Maturity, the Company shall have given to the Trustee
an irrevocable notice pursuant to Section 3.02 of this Indenture requiring
redemption of such Securities on such date and the Company shall have given to
the Trustee in form satisfactory to the Trustee irrevocable instructions to
publish notice of redemption of such Securities prior to said date as provided
in Section 3.02 of this Indenture; and in the event such Securities are not to
be redeemed within the 60 days next succeeding the date of such deposit with the
Trustee, the Company shall have given the Trustee in form satisfactory to it
irrevocable instructions to publish, as soon as practicable, once in each of two
successive calendar weeks in an Authorized Newspaper, a notice to the Holders of
such Securities that the deposit required by Section 14.02(a) has been made with
the Trustee and stating such Maturity or redemption date or dates upon which
moneys are to be available for the payment of the principal of, premium, if any,
and interest on such Securities;
(c) the Company shall have delivered to the Trustee an Officers'
Certificate certifying as to whether the Securities of such series are then
listed on the New York Stock Exchange;
44
(d) if the Securities of such Series are listed on the New York Stock
Exchange, the Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that the Company's exercise of its option under this Section would
not cause the Securities to be delisted;
(e) no Event of Default or event (including such deposit) which, with
notice or lapse of time, or both, would become an Event of Default with respect
to the Securities of such series shall have occurred and be continuing on the
date of such deposit as evidenced to the Trustee in an Officers' Certificate
delivered to the Trustee concurrently with such deposit; and
(f) the Company shall have paid or duly provided for payment of all
amounts then due to the Trustee pursuant to Section 8.06.
"Discharged" means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by, and obligations under, the Securities of
such series and to have satisfied all the obligations under this Indenture
relating to the Securities of such series (and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging the same), except
(A) the rights of Holders of Securities of such series to receive, from the
trust fund described in clause (a) above, payment of the principal of, and
premium, if any, and the interest on such Securities when such payments are due,
(B) the Company's obligations with respect to the Securities of such series
under Sections 2.05, 2.06, 5.02 and 14.03 and (C) the rights, powers, trusts,
duties and immunities of the Trustee hereunder, including without limitation,
the provisions of Section 8.06.
"U.S. Government Obligations" means securities that are (i) direct obligations
of the United States of America for the payment of which its full faith and
credit is pledged or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case under clauses
(i) or (ii) are not callable or redeemable at the option of the issuer thereof.
SECTION 14.03. Deposited Moneys and U.S. Government Obligations to be held
in Trust. All moneys and U.S. Government Obligations deposited with the Trustee
pursuant to Section 14.02 in respect of Securities of a series shall be held in
trust and applied by it, in accordance with the provisions of such Securities
and this Indenture, to the payment, either directly or through any paying agent
(including the Company acting as its own paying agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon for principal, premium, if any, and interest, if any, but such money
need not be segregated from other funds except to the extent required by law.
SECTION 14.04. Repayment to Company. After the Maturity and payment of
the principal of, premium, if any, and interest on the Securities of any series
for which money or U.S. Government Obligations have been deposited pursuant to
Section 14.02, the Trustee and any paying agent shall promptly pay or return to
the Company upon request any money and U.S. Government Obligations held by them
that are not required for the payment of the principal of, premium, if any, and
interest on the Securities of such series. The provisions of Section 13.04
shall apply to any money held by the Trustee or any paying agent under this
Article that remains unclaimed for two years after the Maturity of any series of
Securities for which money or U.S. Government Obligations have been deposited
pursuant to Section 14.02.
SECTION 14.05. Reinstatement. If the Trustee is unable to apply any money
or U.S. Government Obligations in accordance with Section 14.02 by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company's obligations under this Indenture and the Securities
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 14.02 until such time as the Trustee is permitted to apply all such
money or U.S. Government Obligations in accordance with Section 14.02.
45
ARTICLE FIFTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS, DIRECTORS, EMPLOYEE AND AFFILIATES
SECTION 15.01. Indenture and Securities Solely Corporate Obligations. No
recourse for the payment of the principal of or premium, if any, or interest, if
any, on any Security, or for any claim based thereon or otherwise in respect
thereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in this Indenture or in any supplemental indenture, or in any
Security, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, officer, director, employee
or affiliate as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Securities.
ARTICLE SIXTEEN
MISCELLANEOUS PROVISIONS
SECTION 16.01. Provisions Binding on Company's Successors. All the
covenants, stipulations, promises and agreements by the Company contained in the
Indenture shall bind its successors and assigns whether so expressed or not.
SECTION 16.02. Benefits of Indenture Restricted to Parties and Holders.
Nothing in this Indenture or in the Securities, expressed or implied, shall give
or be construed to give to any person, firm or corporation, other than the
parties hereto and their successors and assigns and the Holders, any legal or
equitable right, remedy or claim under or in respect of this Indenture, or under
any covenant, condition or provision herein contained; and, subject to the
provisions of Articles Nine and Fifteen, all of such covenants, conditions and
provisions shall be for the sole benefit of the parties hereto and the Holders.
SECTION 16.03. Official Acts by Successor Corporation. Any act or
proceeding by any provision of this Indenture authorized or required to be done
or performed by any board, committee or officer of the Company shall and may be
done and performed with like force and effect by the like board, committee or
officer of any corporation that shall at the time be the lawful sole successor
of the Company.
SECTION 16.04. Addresses for Notices, etc. Any notice or demand which by
any provision of this Indenture is required or permitted to be given or served
by the Trustee or by the Holders of Securities on the Company shall be deemed to
have been sufficiently given or served, for all purposes, if given or served at
the office of the Senior Vice President and Treasurer at the principal office of
the Company at One Houston Center, 0000 XxXxxxxx Xxxxxx, Xxxxx 0000, Xxxxxxx,
Xxxxx 00000 (until another address is filed by the Company with the Trustee).
Any notice, direction, request of demand by any Holder to or upon the Trustee
shall be deemed to have been sufficiently given or made, for all purposes, if
given or made in writing at Texas Commerce Bank National Association, 000 Xxxxxx
Xx., 0xx Xxxxx, Xxxxxxx, Xxxxx 00000, addressed to the attention of its
Corporate Trust Department.
46
SECTION 16.05. Notices to Holders; Waiver. Where this Indenture or any
Security provides for notice to Holders of any event, such notice shall
be sufficiently given (unless otherwise herein or in such Securities expressly
provided) if in writing and mailed, first-class, postage prepaid, to each
Registered Holder of such Securities, at his address as it appears on the
registry books of the Company, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver. The Trustee shall deliver to the Company a copy of any notice delivered
by the Trustee to the Holders hereunder concurrently with the delivery of such
notice to the Holders.
In case, by reason of the suspension of publication of any Authorized
Newspaper, or by reason of any other cause, it shall be impossible to make
publication of any notice in one or more Authorized Newspapers as required by
any Security or this Indenture, then such method of publication or notification
as shall be made with the approval of the Trustee shall constitute a sufficient
publication of such notice.
In case, by reason of the suspension of regular mail service as a result of
a strike, work stoppage or otherwise, it shall be impractical to mail notice of
any event to the Holders of Securities when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Trustee and the Company shall be deemed
to be a sufficient giving of such notice.
SECTION 16.06. GOVERNING LAW. THIS INDENTURE AND EACH SECURITY SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
SECTION 16.07. Evidence of Compliance with Conditions Precedent. Upon any
application or demand by the Company to the Trustee to take any action under any
of the provisions 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 have been complied with.
Each certificate or opinion provided for in this Indenture and delivered
to the Trustee with respect to compliance with a condition or covenant provided
for in this Indenture (other than annual certificates provided pursuant to
Section 5.08) shall include (a) a statement that the person making such
certificate or opinion has read such covenant or condition; (b) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinion contained in such certificate or opinion are
based; (c) a statement that, in the opinion of such person, he or she has made
such examination or investigation as is necessary to enable him or her to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and (d) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.
SECTION 16.08. Legal Holidays. In any case where the date of maturity of
interest on or principal of the Securities or the date fixed for redemption of
any Security will not be a Business Day at the applicable Place of Payment, then
payment of such interest and premium, if any, on or principal of the Securities
need not be made at such Place of Payment on such date but may be made on the
next Business Day at such Place of Payment with the same force and effect as if
made on the date of maturity or the date fixed for redemption and no interest
shall accrue for the period from and after such date.
47
SECTION 16.09. Trust Indenture Act to Control. If and to the extent that
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by any of sections 310 to 317, inclusive, of the Trust Indenture Act of
1939, through operation of Section 318(c) thereof, such imposed duties shall
control.
SECTION 16.10. No Security Interest Created. Nothing in this Indenture or
in the Securities, expressed or implied, shall be construed to create or
constitute a security interest under the Uniform Commercial Code or similar
legislation, as now or hereafter enacted and in effect, in any jurisdiction
where property of the Company or its Subsidiaries is located.
SECTION 16.11. Table of Contents, Headings, etc. The table of contents
and the titles and headings of the Articles and Sections of this Indenture have
been inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.
SECTION 16.12. Execution in Counterparts. This Indenture may be executed
in any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.
SECTION 16.13. Acceptance of Trust. The Trustee hereby accepts the trusts
declared and provided in this Indenture, upon the terms and conditions herein
above set forth.
IN WITNESS WHEREOF, LYONDELL PETROCHEMICAL COMPANY has caused this
Indenture to be signed and acknowledged by its Senior Vice President, Chief
Financial Officer and Treasurer, and its corporate seal to be affixed hereunto,
and the same to be attested by its Secretary or an Assistant Secretary, and
Texas Commerce Bank National Association, as Trustee, has caused this Indenture
to be signed by one of its Vice Presidents or Assistant Vice Presidents as of
the day and year first written above.
LYONDELL PETROCHEMICAL COMPANY
(SEAL) By: /s/ Xxxxxxx X. Xxxxx
_______________________________________
Xxxxxxx X. Xxxxx
Senior Vice President,
Chief Financial Officer and Treasurer
Attest:
/s/ Xxxxx X. Xxxxxx
____________________________
Xxxxx X. Xxxxxx
Assistant Secretary
Texas Commerce Bank National Association,
as Trustee
(SEAL) By: /s/ Xxxxx X. Xxxxxxx
______________________________________
XXXXX XXXXXXX
AVP & TRUST OFFICER
48
STATE OF TEXAS ) SS.:
COUNTY OF XXXXXX )
Before me, Xxxxxxxxx X. Xxx, the undersigned officer, on this day
personally appeared Xxxxxxx X. Xxxxx, known to me to be the person whose name is
subscribed to the foregoing instrument, and known to me to be the Senior Vice
President, Chief Financial Officer and Treasurer of Lyondell Petrochemical
Company, a Delaware corporation, and acknowledged to me that he executed said
instrument for the purpose and consideration therein expressed, and as the act
of said corporation.
Given under my hand and seal of office this 31st day of January, 1996.
(SEAL) /s/ Xxxxxxxxx X. Xxx
________________________________________________
Notary Public
STATE OF ) SS.:
COUNTY OF )
Before me, B. Y. Stampp, the undersigned officer, on this day personally
appeared Xxxxx X. Xxxxxxx, known to me to be the person whose name is subscribed
to the foregoing instrument, and known to me to be an Assistant Vice President
of Texas Commerce Bank National Association, a national banking association, and
acknowledged to me that he executed said instrument for the purpose and
consideration therein expressed, and as the act of said bank.
Given under my hand and seal of office this 1st day of February, 1996.
(SEAL) /s/ B. Y. Stampp
________________________________________________
Notary Public
