INDENTURE
between
MGM GRAND, INC.
and
_________________________, as Trustee
Dated as of ______________, 199__
TABLE OF CONTENTS
Page
----
ARTICLE 1 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION..... 1
Section 1.1 DEFINITIONS............................................ 1
Section 1.2 COMPLIANCE CERTIFICATES AND OPINIONS................... 8
Section 1.3 FORM OF DOCUMENTS DELIVERED TO TRUSTEE................. 9
ARTICLE 2 DEBT SECURITY FORMS......................................... 9
Section 2.1 FORMS GENERALLY........................................ 9
Section 2.2 FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION........ 10
Section 2.3 SECURITIES IN GLOBAL FORM.............................. 10
ARTICLE 3 THE DEBT SECURITIES......................................... 11
Section 3.1 AMOUNT UNLIMITED; ISSUABLE IN SERIES................... 11
Section 3.2 DENOMINATIONS.......................................... 14
Section 3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING......... 14
Section 3.4 TEMPORARY DEBT SECURITIES; EXCHANGE OF TEMPORARY
GLOBAL NOTES FOR DEFINITIVE DEBT SECURITIES; GLOBAL
NOTES REPRESENTING DEBT SECURITIES..................... 15
Section 3.5 REGISTRATION, TRANSFER AND EXCHANGE.................... 17
Section 3.6 MUTILATED, DESTROYED, LOST AND STOLEN DEBT SECURITIES.. 18
Section 3.7 PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED......... 18
Section 3.8 CANCELLATION........................................... 19
Section 3.9 COMPUTATION OF INTEREST................................ 20
Section 3.10 MANDATORY DISPOSITION OF DEBT SECURITIES PURSUANT TO
GAMING LAWS............................................ 20
ARTICLE 4 SATISFACTION AND DISCHARGE.................................. 20
Section 4.1 SATISFACTION AND DISCHARGE OF INDENTURE................ 20
Section 4.2 APPLICATION OF TRUST MONEY............................. 22
ARTICLE 5 REMEDIES.................................................... 22
Section 5.1 EVENTS OF DEFAULT...................................... 22
Section 5.2 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT..... 23
Section 5.3 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT
BY TRUSTEE............................................. 24
Section 5.4 TRUSTEE MAY FILE PROOFS OF CLAIM....................... 24
Section 5.5 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF DEBT
SECURITIES............................................. 25
Section 5.6 APPLICATION OF MONEY COLLECTED......................... 25
Section 5.7 LIMITATION ON SUITS.................................... 26
Section 5.8 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL,
PREMIUM AND INTEREST................................... 26
Section 5.9 RESTORATION OF RIGHTS AND REMEDIES..................... 26
Section 5.10 RIGHTS AND REMEDIES CUMULATIVE......................... 27
Section 5.11 DELAY OR OMISSION NOT WAIVER........................... 27
Section 5.12 CONTROL BY HOLDERS..................................... 27
Section 5.13 WAIVER OF PAST DEFAULTS................................ 27
Section 5.14 UNDERTAKING FOR COSTS.................................. 28
i
Section 5.15 WAIVER OF STAY OR EXTENSION LAWS....................... 28
ARTICLE 6 THE TRUSTEE................................................. 28
Section 6.1 CERTAIN DUTIES AND RESPONSIBILITIES.................... 28
Section 6.2 NOTICE OF DEFAULTS..................................... 29
Section 6.3 CERTAIN RIGHTS OF TRUSTEE.............................. 30
Section 6.4 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF DEBT
SECURITIES............................................. 31
Section 6.5 MAY HOLD DEBT SECURITIES............................... 31
Section 6.6 MONEY HELD IN TRUST.................................... 31
Section 6.7 COMPENSATION AND REIMBURSEMENT......................... 31
Section 6.8 DISQUALIFICATION; CONFLICTING INTERESTS................ 32
Section 6.9 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY................ 33
Section 6.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR...... 33
Section 6.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR................. 35
Section 6.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS............................................... 36
Section 6.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY...... 36
Section 6.14 APPOINTMENT OF AUTHENTICATING AGENT.................... 37
ARTICLE 7 HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY........... 38
Section 7.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
HOLDERS................................................ 38
Section 7.2 PRESERVATION OF INFORMATION; COMMUNICATION TO HOLDERS.. 39
Section 7.3 REPORTS BY TRUSTEE..................................... 40
Section 7.4 REPORTS BY COMPANY..................................... 42
ARTICLE 8 CONCERNING THE HOLDERS...................................... 42
Section 8.1 ACTS OF HOLDERS........................................ 42
Section 8.2 PROOF OF OWNERSHIP; PROOF OF EXECUTION OF INSTRUMENTS
BY HOLDER.............................................. 42
Section 8.3 PERSONS DEEMED OWNERS.................................. 43
Section 8.4 REVOCATION OF CONSENTS; FUTURE HOLDERS BOUND........... 43
ARTICLE 9 HOLDERS' MEETINGS........................................... 43
Section 9.1 PURPOSES OF MEETINGS................................... 43
Section 9.2 CALL OF MEETINGS BY TRUSTEE............................ 44
Section 9.3 CALL OF MEETINGS BY COMPANY OR HOLDERS................. 44
Section 9.4 QUALIFICATIONS FOR VOTING.............................. 44
Section 9.5 REGULATIONS............................................ 44
Section 9.6 VOTING................................................. 45
Section 9.7 NO DELAY OF RIGHTS BY MEETING.......................... 45
ARTICLE 10 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE........ 46
Section 10.1 COMPANY MAY CONSOLIDATE, ETC. ONLY ON CERTAIN TERMS.... 46
Section 10.2 SUCCESSOR CORPORATION SUBSTITUTED...................... 46
ARTICLE 11 SUPPLEMENTAL INDENTURES..................................... 46
Section 11.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS..... 46
Section 11.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS........ 47
Section 11.3 EXECUTION OF SUPPLEMENTAL INDENTURES................... 48
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Section 11.4 EFFECT OF SUPPLEMENTAL INDENTURES...................... 48
Section 11.5 CONFORMITY WITH TRUST INDENTURE ACT.................... 49
Section 11.6 REFERENCE IN DEBT SECURITIES TO SUPPLEMENTAL
INDENTURES............................................. 49
ARTICLE 12 COVENANTS................................................... 49
Section 12.1 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST............. 49
Section 12.2 OFFICER'S CERTIFICATE AS TO COMPLIANCE................. 49
Section 12.3 MAINTENANCE OF OFFICE OR AGENCY........................ 49
Section 12.4 MONEY FOR DEBT SECURITIES; PAYMENTS TO BE HELD IN TRUST 50
Section 12.5 CORPORATE EXISTENCE.................................... 51
Section 12.6 WAIVER OF CERTAIN COVENANTS............................ 51
ARTICLE 13 REDEMPTION OF DEBT SECURITIES............................... 51
Section 13.1 APPLICABILITY OF ARTICLE............................... 52
Section 13.2 ELECTION TO REDEEM; NOTICE TO TRUSTEE.................. 52
Section 13.3 SELECTION BY TRUSTEE OF DEBT SECURITIES TO BE REDEEMED. 52
Section 13.4 NOTICE OF REDEMPTION................................... 52
Section 13.5 DEPOSIT OF REDEMPTION PRICE............................ 53
Section 13.6 DEBT SECURITIES PAYABLE ON REDEMPTION DATE............. 53
Section 13.7 DEBT SECURITIES REDEEMED IN PART....................... 54
ARTICLE 14 SINKING FUNDS............................................... 54
Section 14.1 APPLICABILITY OF ARTICLE............................... 54
Section 14.2 SATISFACTION OF MANDATORY SINKING FUND PAYMENTS WITH
DEBT SECURITIES........................................ 54
Section 14.3 REDEMPTION OF DEBT SECURITIES FOR SINKING FUND......... 55
ARTICLE 15 DEFEASANCE.................................................. 56
Section 15.1 APPLICABILITY OF ARTICLE............................... 56
Section 15.2 DEFEASANCE UPON DEPOSITS OF MONEYS OR U.S. GOVERNMENT
OBLIGATIONS............................................ 56
Section 15.3 DEPOSITED MONEYS AND U.S. GOVERNMENT OBLIGATIONS TO
BE HELD IN TRUST....................................... 57
Section 15.4 REPAYMENT TO COMPANY................................... 57
ARTICLE 16 CONVERSION.................................................. 58
Section 16.1 APPLICABILITY; CONVERSION PRIVILEGE.................... 58
Section 16.2 CONVERSION PROCEDURE; CONVERSION PRICE; FRACTIONAL
SHARES................................................. 58
Section 16.3 ADJUSTMENT OF CONVERSION PRICE FOR COMMON STOCK........ 59
Section 16.4 CONSOLIDATION OR MERGER OF THE COMPANY................. 61
Section 16.5 NOTICE OF ADJUSTMENT................................... 62
Section 16.6 NOTICE IN CERTAIN EVENTS............................... 62
Section 16.7 COMPANY TO RESERVE STOCK; REGISTRATION; LISTING........ 63
Section 16.8 TAXES ON CONVERSION.................................... 63
Section 16.9 CONVERSION AFTER RECORD DATE........................... 63
Section 16.10 COMPANY DETERMINATION FINAL............................ 64
Section 16.11 TRUSTEE'S DISCLAIMER................................... 64
ARTICLE 17 GUARANTEES.................................................. 64
iii
Section 17.1 APPLICABILITY OF ARTICLE............................... 64
Section 17.2 OBLIGOR GUARANTEE...................................... 64
Section 17.3 NOTICE OF OBLIGOR GUARANTEE............................ 65
Section 17.4 AUTHORIZATION.......................................... 65
Section 17.5 CERTAIN WAIVERS........................................ 66
Section 17.6 NO SUBROGATION; CERTAIN AGREEMENTS..................... 67
Section 17.7 BANKRUPTCY NO DISCHARGE................................ 67
Section 17.8 RIGHTS OF CONTRIBUTION................................. 68
Section 17.9 LIMITATION ON LIABILITY................................ 69
Section 17.10 APPLICATION OF CERTAIN TERMS AND
PROVISIONS TO THE GUARANTORS.......................... 69
Section 17.11 EXECUTION AND DELIVERY OF GUARANTEE.................... 69
Section 17.12 GUARANTOR MAY CONSOLIDATE, ETC. ON CERTAIN TERMS....... 69
Section 17.13 RELEASE OF GUARANTORS.................................. 69
Section 17.14 CERTAIN BANKRUPTCY EVENTS.............................. 69
ARTICLE 18 MISCELLANEOUS............................................... 70
Section 18.1 NOTICES, ETC., TO TRUSTEE AND COMPANY.................. 70
Section 18.2 NOTICE TO HOLDERS; WAIVER.............................. 70
Section 18.3 CONFLICT WITH TRUST INDENTURE ACT...................... 71
Section 18.4 COUNTERPARTS; EFFECT OF HEADINGS AND TABLE OF CONTENTS. 71
Section 18.5 SUCCESSORS AND ASSIGNS................................. 71
Section 18.6 SEPARABILITY CLAUSE.................................... 71
Section 18.7 BENEFITS OF INDENTURE.................................. 71
Section 18.8 GOVERNING LAW.......................................... 71
Section 18.9 LEGAL HOLIDAYS......................................... 72
Section 18.10 NO RECOURSE AGAINST OTHERS............................. 72
Section 18.11 GAMING LAWS............................................ 72
iv
Reconciliation between Trust Indenture Act of 1939 and Indenture,
-----------------------------------------------------------------
dated as of _________ __, 199__
-------------------------------
Trust Indenture
Act Section Indenture Section
Section 310
(a)(1) . . . . . . . . . . . . . . . 6.09
(a)(2) . . . . . . . . . . . . . . . 6.09
(a)(3) . . . . . . . . . . . . . . . Not Applicable
(a)(4) . . . . . . . . . . . . . . . Not Applicable
(a)(5) . . . . . . . . . . . . . . . 6.09
(b). . . . . . . . . . . . . . . . . 6.08, 6.10
(c). . . . . . . . . . . . . . . . . Not Applicable
Section 311
(a). . . . . . . . . . . . . . . . . 6.13(a)
(b). . . . . . . . . . . . . . . . . 6.13(b)
(c). . . . . . . . . . . . . . . . . Not Applicable
Section 312
(a). . . . . . . . . . . . . . . . . 7.01, 7.02(a)
(b). . . . . . . . . . . . . . . . . 7.02(b)
(c). . . . . . . . . . . . . . . . . 7.02(c)
Section 313
(a). . . . . . . . . . . . . . . . . 7.03(a)
(b). . . . . . . . . . . . . . . . . 7.03(b)
(c). . . . . . . . . . . . . . . . . 7.03(a), 7.03(c)
(d). . . . . . . . . . . . . . . . . 7.03(d)
Section 314
(a). . . . . . . . . . . . . . . . . 7.04, 12.02
(b). . . . . . . . . . . . . . . . . Not Applicable
(c)(1) . . . . . . . . . . . . . . . 1.02
(c)(2) . . . . . . . . . . . . . . . 1.02
(c)(3) . . . . . . . . . . . . . . . Not Applicable
(d). . . . . . . . . . . . . . . . . Not Applicable
(e). . . . . . . . . . . . . . . . . 1.02
Section 315
(a). . . . . . . . . . . . . . . . . 6.01(a), 6.01(c)
(b). . . . . . . . . . . . . . . . . 6.02, 7.03(a)(7)
(c). . . . . . . . . . . . . . . . . 6.01(b)
(d)(1) . . . . . . . . . . . . . . . 6.01(a)
(d)(2) . . . . . . . . . . . . . . . 6.01(c)(2)
(d)(3) . . . . . . . . . . . . . . . 6.01(c)(3)
(e). . . . . . . . . . . . . . . . . 5.14
v
Section 316
(a)(1)(A). . . . . . . . . . . . . . 5.02, 5.12
(a)(1)(B). . . . . . . . . . . . . . 5.13
(a)(2) . . . . . . . . . . . . . . . Not Applicable
(b). . . . . . . . . . . . . . . . . 5.08
(c). . . . . . . . . . . . . . . . . Not Applicable
Section 317
(a)(1) . . . . . . . . . . . . . . . 5.03
(a)(2) . . . . . . . . . . . . . . . 5.04
(b). . . . . . . . . . . . . . . . . 12.04
Section 318 . . . . . . . . . . . . 1.06
Note: This reconciliation shall not, for any purpose, be deemed to be a part of
the Indenture.
Attention should also be directed to Section 318(c) of the Trust Indenture Act
of 1939, as amended (the "Trust Indenture Act"), which provides that the
provisions of Sections 310 to and including 317 of the Trust Indenture Act are a
part of and govern every qualified indenture, whether or not physically
contained therein.
vi
INDENTURE dated as of _______ __, 199_, by and between MGM GRAND, INC., a
Delaware corporation (the "Company"), having its principal executive office at
0000 Xxx Xxxxx Xxxxxxxxx Xxxxx, Xxx Xxxxx, Xxxxxx 00000, and ___________________
(together with any additional trustees to be added by supplemental indenture
pursuant to this Indenture, the "Trustee"), having its Corporate Trust Office at
_______________________________.
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its debentures,
notes, bonds or other evidences of indebtedness (the "Debt Securities"), to be
issued in one or more series, as provided in this Indenture.
This Indenture is subject to the provisions of the Trust Indenture Act of
1939, as amended, that are deemed incorporated into this Indenture and shall, to
the extent applicable, be governed by such provisions.
All things necessary have been done to make this Indenture a valid
agreement of the Company, in accordance with its terms.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of Debt
Securities by the holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all holders of Debt Securities or of Debt
Securities of any series, as applicable, as follows:
ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 1.1 DEFINITIONS; INTERPRETATION.
-----------------------------------------
For all purposes of this Indenture, except as otherwise expressly provided
or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings assigned to them in
this Article, and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein;
(c) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles or
as provided with respect to any series of Debt Securities, and, except as
otherwise herein provided or as provided with respect to any series of Debt
Securities, the term "generally accepted accounting principles" or "GAAP" with
respect to any computation required or permitted hereunder with respect to any
series of Debt Securities, shall mean such as set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
have been approved by a significant segment of the accounting profession which
are in effect as of the date of determination;
1
(d) the words "herein," "hereof" and "hereunder" and other words of similar
import refer to this Indenture as a whole and not to any particular Article,
Section or other subdivision;
(e) certain terms, used principally in Article Three or Article Six, are
defined in those respective Articles;
(f) "or" is not exclusive and "including" is not limiting;
(g) references in this Indenture to any agreement, other document or law
"as amended" or "as amended from time to time," or to "amendments" of any
document or law, shall include any amendments, supplements, replacements,
renewals or other modifications from time to time, provided in the case of
modifications to documents, such modifications are permissible hereunder;
(h) references in this Indenture to any law include regulations promulgated
thereunder from time to time;
(i) The Table of Contents, Cross-Reference Table 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 of this Indenture and shall in
no way modify or restrict any of the terms or provisions hereof; and
(j) The term "Act" when used with respect to any holder, has the meaning
specified in Section 8.1.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" (including, with correlative meanings, the terms "controlling,"
"controlled by" and "under common control with") as used with respect to any
Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
agreement or otherwise.
"Authenticating Agent" has the meaning specified in Section 6.14.
"Authorized Newspaper" means a newspaper in an official language of the
country of publication customarily published at least once a day, and
customarily published for at least five days in each calendar week, and of
general circulation in the place in connection with which the term is used or in
the financial community of such place. Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any Business Day in such city.
"Bankruptcy Code" means 11 U.S.C. (S)101 et seq., as amended from time to
time. ------
"Beneficiary" has the meaning specified in Section 17.2.
"Board of Directors" means either the board of directors of the Company or
any committee of that board or any other committee of the Company, duly
authorized by the board of directors of the Company to act hereunder.
"Board Resolution" means a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day" when used with respect to any Place of Payment or any other
particular location referred to in this Indenture or in the Debt Securities
means any day which is not a Saturday, a Sunday or a legal holiday or a day on
which banking institutions or trust companies in that Place of Payment or other
location are authorized or obligated by law to close, except as otherwise
specified pursuant to Section 3.1.
"Closing Price" of the Common Stock shall mean the last reported sale price
of such stock (regular way) as shown on the Composite Tape of the New York Stock
Exchange Inc. or, in case no such sale takes place on such day, the average of
the closing bid and asked prices on the New York Stock Exchange, or if the
Common Stock is not then listed on the New York Stock Exchange on the principal
exchange (or NASDAQ--National Market System) on which the Common Stock is
listed.
"Code" means the Internal Revenue Code of 1986, as amended.
"Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Securities Exchange Act of 1934, as amended,
or if at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties on such date.
"Common Depositary" has the meaning specified in Section 3.4(b).
2
"Common Stock" shall mean the class of Common Stock, par value $0.01 per
share, of the Company authorized at the date of this Indenture as originally
signed, or any other class of stock resulting from successive changes or
reclassifications of such Common Stock, and in any such case including any
shares thereof authorized after the date of this Indenture, and any other shares
of stock of the Company which do not have any priority in the payment of
dividends or upon liquidation over any other class of stock.
"Company" means the Person named as the "Company" in the first paragraph of
this instrument until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Company" shall mean
such successor Person.
"Company Request" and "Company Order" mean, respectively, a written request
or order signed in the name of the Company by the Chairman of the Board of
Directors, the President or an Executive or Senior Vice President and by the
Treasurer, an Assistant Treasurer, the Controller, an Assistant Controller, the
Secretary or an Assistant Secretary of the Company, and delivered to the
Trustee.
"Conversion Agent" means any Person authorized by the Company to receive
Debt Securities to be converted into Common Stock on behalf of the Company. The
Company initially authorizes the Trustee to act as Conversion Agent for the Debt
Securities on its behalf. The Company may at any time or from time to time
authorize one or more Persons to act as Conversion Agent in addition to or in
place of the Trustee with respect to any series of Debt Securities issued under
this Indenture.
"Conversion Price" means, with respect to any series of Debt Securities
which are convertible into Common Stock, the price per share of Common Stock at
which the Debt Securities of such series are so convertible pursuant to Section
3.1 with respect to such series, as the same may be adjusted from time to time
in accordance with Section 16.3.
"Corporate Trust Office" means the principal corporate trust office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this instrument is
located at ________________________ ________________________________.
"corporation" means a corporation, association, company or business trust.
"covenant defeasance option" has the meaning specified in Section 15.2.
"Current Market Price" on any date shall mean the average of the daily
Closing Prices per share of Common Stock for any thirty (30) consecutive Trading
Days selected by the Company prior to the date in question, which thirty (30)
consecutive Trading Day period shall not commence more than forty-five (45)
Trading Days prior to the day in question; provided that with respect to Section
16.3(c), the "Current Market Price" of the Common Stock shall mean the average
of the daily Closing Prices per share of Common Stock
3
for the five (5) consecutive Trading Days ending on the date of the distribution
referred to in Section 16.3(c) (or if such date shall not be a Trading Day, on
the Trading Day immediately preceding such date).
"Debt Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Debt Securities (including any Global
Note) authenticated and delivered under this Indenture; provided, however, that,
if at any time there is more than one Person acting as Trustee under this
Indenture, "Debt Securities" with respect to the Indenture as to which such
Person is Trustee shall have the meaning stated in the first recital of this
Indenture and shall more particularly mean Debt Securities authenticated and
delivered under this Indenture, exclusive, however, of Debt Securities of any
series as to which such Person is not Trustee.
"Default" means any event that after notice or lapse of time, or both,
would become an Event of Default.
"Defaulted Interest" has the meaning specified in Section 3.7(b).
"Discharged" has the meaning specified in Section 15.2.
"Discount Security" means any Debt Security which is issued with "original
issue discount" within the meaning of Section 1273(a) of the Code (or any
successor provision) and the regulations thereunder.
"Dollar" or "$" means a dollar or other equivalent unit in such coin or
currency of the United States that, at the time of payment, is legal tender for
the payment of public and private debts.
"Event of Default" has the meaning specified in Section 5.1.
"Floating Rate Security" means a Debt Security which provides for the
payment of interest at a variable rate determined periodically by reference to
an interest rate index or any other index specified pursuant to Section 3.1.
"Funding Guarantor" has the meaning specified in Section 17.8(a).
"Gaming Authority" means the Nevada Gaming Commission, the Nevada State
Gaming Control Board, the New Jersey Casino Control Commission, the New Jersey
Division of Gaming Enforcement or any similar commission or agency which has, or
may at any time after the date of this Indenture have, jurisdiction over the
gaming activities of the Company or a subsidiary of the Company or any successor
thereto.
"Gaming Laws" means the gaming laws of a jurisdiction or jurisdictions to
which the Company or a subsidiary of the Company is, or may at any time after
the date of this Indenture be, subject.
"Gaming Licenses" means every material license, material, franchise,
registration, or other material approval held by, or issued at any time after
the date of this Indenture, to the Company or any of its subsidiaries
authorizing the Company or any of its subsidiaries to own, lease, operate or
otherwise conduct or manage gaming in any state or jurisdiction.
4
"Global Note" means a registered Debt Security evidencing all or part of a
series of Debt Securities, including, without limitation, any temporary or
permanent Global Note.
"Guaranteed Securities" has the meaning specified in Section 17.2.
"Guarantor" means, with respect to the Debt Securities of any series, any
Person who has guaranteed the obligations of the Company under this Indenture
with respect to such series pursuant to Article 17, until released from such
guarantee pursuant to the terms of this Indenture.
"Indenture" means this instrument as originally executed, or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and, unless the
context otherwise requires, shall include the terms of a particular series of
Debt Securities as established pursuant to Section 3.1; 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 Debt
Securities for which such Person is Trustee, this instrument as originally
executed or as it may be supplemented or amended from time to time by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of the, or those, particular
series of Debt Securities for which such Person is Trustee established as
contemplated by Section 3.1, exclusive, however, of any provisions or terms
which relate solely to other series of Debt Securities for which such Person is
Trustee, regardless of when such terms or provisions were adopted, and exclusive
of 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" when used with respect to a Discount Security which by its terms
bears interest only on a certain date, means interest payable after such date.
"Interest Payment Date" with respect to any Debt Security means the Stated
Maturity of an installment of interest on such Debt Security.
"Joint Venture" means any partnership, corporation or other entity, in
which up to and including 50% of the partnership interests, outstanding voting
stock or other equity interests is owned, directly or indirectly, by the Company
and/or one or more subsidiaries.
"legal defeasance option" has the meaning specified in Section 17.2.
"mandatory sinking fund payment" has the meaning specified in Section 14.1.
"Maturity" when used with respect to any Debt Security means the date on
which the principal of such Debt Security or an installment of principal becomes
due and payable as therein or herein provided, whether at the Stated Maturity or
by declaration of acceleration, call for redemption, repayment or repurchase at
the option of the holder thereof or otherwise.
"Maximum Net Worth" has the meaning specified in Section 17.8(b).
"Net Worth" has the meaning specified in Section 17.8(b).
"Obligations" has the meaning specified in Section 17.2.
"Obligor" means the Company or any Guarantor.
"Obligor Guarantee" has the meaning specified in Section 17.2.
"Officers' Certificate" means a certificate signed by the Chairman of the
Board of Directors, the President or an Executive or Senior Vice President and
by the Treasurer, an Assistant Treasurer, the Controller, an Assistant
Controller, the Secretary or an Assistant Secretary of the Company and delivered
to the Trustee.
"Opinion of Counsel" means a written opinion of counsel, who may be counsel
to the Company (including an employee of the Company).
5
"Optional sinking fund payment" has the meaning specified in Section 14.1.
"Outstanding" when used with respect to Debt Securities, means, as of the
date of determination, all Debt Securities theretofore authenticated and
delivered under this Indenture, except:
(i) Debt Securities theretofore cancelled by the Trustee or delivered
to the Trustee for cancellation;
(ii) Debt Securities for whose payment or redemption (including
repayment at the option of the holder) money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the holders of such Debt
Securities; provided, however, that if such Debt Securities are to be redeemed,
then notice of such redemption has been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee has been made and the date for
such redemption has passed;
(iii) Debt Securities, except to the extent provided in Section 15.2,
with respect to which the Company has effected defeasance as provided in Article
Fifteen;
(iv) Debt Securities which have been issued pursuant to Section 3.6 or
in exchange for or in lieu of which other Debt Securities have been
authenticated and delivered pursuant to this Indenture, other than any such Debt
Securities in respect of which there shall have been presented to the Trustee
proof satisfactory to it that such Debt Securities are held by a bona fide
purchaser in whose hands such Debt Securities are valid obligations of the
Company; and
(v) Debt Securities converted into Common Stock pursuant to or in
accordance with this Indenture;
Provided, however, that in determining whether the holders of the requisite
principal amount of Debt Securities Outstanding have performed any Act
hereunder, Debt Securities owned by the Company or any other obligor upon the
Debt Securities or any Affiliate of the Company or of such other obligor shall
be disregarded and deemed not to be Outstanding (provided, that in connection
with any offer by the Company or any obligor to purchase Debt Securities, Debt
Securities rendered by a holder shall be Outstanding until the date of
purchase), except that, in determining whether the Trustee shall be protected in
relying upon any such Act, only Debt Securities which the Trustee knows to be so
owned shall be so disregarded. Debt Securities so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right to act with respect to such Debt
Securities and that the pledgee is not the Company or any other obligor upon the
Debt Securities or any Affiliate of the Company or of such other obligor. In
determining whether the holders of the requisite principal amount of Outstanding
Debt Securities have performed any Act hereunder, the principal amount of a
Discount Security that shall be deemed to be Outstanding for such purpose shall
be the amount of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of the Maturity
thereof pursuant to Section 5.2.
"Overdue Rate" when used with respect to any series of the Debt Securities,
means the rate designated as such in or pursuant to the Board Resolution or the
supplemental indenture, as the case may be, relating to such series as
contemplated by Section 3.1.
"Paying Agent" means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Debt Securities on behalf
of the Company.
"permanent Global Note" shall have the meaning given such term in Section
3.4(b).
6
"Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint stock company, trust, estate,
unincorporated organization or government or any agency or political subdivision
thereof or any other entity.
"Place of Payment" when used with respect to the Debt Securities of any
series means the place or places where the principal of (and premium, if any)
and interest on the Debt Securities of that series are payable as specified
pursuant to Section 3.1.
"Predecessor Security" of any particular Debt Security means every previous
Debt Security evidencing all or a portion of the same debt as that evidenced by
such particular Debt Security; and, for the purposes of this definition, any
Debt Security authenticated and delivered under Section 3.6 in lieu of a
mutilated, lost, destroyed or stolen Debt Security shall be deemed to evidence
the same debt as the mutilated, lost, destroyed or stolen Debt Security.
"principal" includes, with respect to Debt Securities of any series,
principal payable upon redemption or repurchase of Debt Securities of such
series.
"Redemption Date" means the date fixed for redemption of any Debt Security
pursuant to this Indenture.
"Redemption Price" means, in the case of a Discount Security, the amount of
the principal thereof that would be due and payable as of the Redemption Date
upon a declaration of acceleration pursuant to Section 5.2, and in the case of
any other Debt Security, the principal amount thereof, plus, in each case,
premium, if any, and accrued and unpaid interest, if any, to the Redemption
Date.
"Regular Record Date" for the interest payable on the Debt Securities of
any series on any Interest Payment Date means the date specified for the purpose
pursuant to Section 3.1 for such Interest Payment Date.
"Responsible Officer" when used with respect to the Trustee means any vice
president, the secretary, any assistant secretary or any assistant vice
president or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of his knowledge of and familiarity with
the particular subject.
"Security Register" and "Security Registrar" have the respective meanings
specified in Section 3.5(a).
"Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 3.7(b).
"Stated Maturity" when used with respect to any Debt Security or any
installment of principal thereof or premium thereon or interest thereon means
the date specified in such Debt Security representing such installment of
interest, as the date on which the principal of such Debt Security or such
installment of principal, premium or interest is due and payable.
7
"Subsidiary" means (i) a corporation a majority of whose capital stock with
voting power, under ordinary circumstances, to elect directors is at the time,
directly or indirectly, owned by the Company or (ii) any other Person, (other
than a corporation) in which the Company, directly or indirectly, has at least a
majority ownership interest.
"successor corporation" has the meaning specified in Section 10.1(a).
"temporary Global Note" has the meaning specified in Section 3.4(b).
"Trading Day" shall mean, with respect to the Common Stock, so long as the
Common Stock is listed or admitted to trading on the New York Stock Exchange, a
day on which the New York Stock Exchange is open for the transaction of
business.
"Trustee" means the Person named as the "Trustee" in the first paragraph of
this instrument until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Trustee" shall mean or
include each Person who is then a Trustee hereunder, and if at any time there is
more than one such Person, then "Trustee" as used with respect to the Debt
Securities of any series shall mean the Trustee with respect to Debt Securities
of such series.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as it may be
amended from time to time.
"U.S. Depositary" means a clearing agency registered under the Securities
Exchange Act of 1934, as amended, or any successor thereto, which shall in
either case be designated by the Company pursuant to Section 3.1 until a
successor U.S. Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter "U.S. Depositary" shall mean or
include each Person who is then a U.S. Depositary hereunder, and if at any time
there is more than one such Person, then "U.S. Depositary" as used with respect
to the Debt Securities of any series shall mean the U.S. Depositary with
respect to the Debt Securities of that series.
"U.S. Government Obligations" has the meaning specified in Section 15.2.
"Vice President" includes, with respect to the Company, any Executive or
Senior Vice President and includes, with respect to the Trustee, any Vice
President, whether or not designated by a number or word or words added before
or after the title "Vice President."
Section 1.2 COMPLIANCE CERTIFICATES AND OPINIONS.
--------------------------------------------------
Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee an Officers' Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.
8
Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than certificates provided
pursuant to Section 12.2) shall include:
(a) a statement that each individual signing such certificate or opinion
has read such covenant or condition and the definitions herein relating thereto;
(b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(c) a statement that, in the opinion of each such individual, such
individual has made such examination or investigation as is necessary to enable
that individual to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
(d) a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.
provided, however, that with respect to matters of law, an Officers' Certificate
may be based upon an Opinion of Counsel, unless the signers know, or in the
exercise of reasonable care should know, that such Opinion of Counsel is
erroneous, and provided, further, that with respect to matters of fact an
Opinion of Counsel may rely on an Officers' Certificate or certificates of
public officials, unless the signer knows, or in the exercise of reasonable care
should know, that any such document is erroneous.
Section 1.3 FORM OF DOCUMENTS DELIVERED TO TRUSTEE.
----------------------------------------------------
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
ARTICLE 2
DEBT SECURITY FORMS
Section 2.1 FORMS GENERALLY.
-----------------------------
The Debt Securities of each series shall be substantially in the form of
Exhibit A hereto or in such other form as shall be established in or pursuant to
a Board Resolution or one or more indentures supplemental hereto, and shall have
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 or designation and such legends or endorsements
placed thereon as the Company may deem appropriate and as are not inconsistent
with the provisions of this Indenture, or as may be required to comply with any
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange on which any series of the Debt Securities
may be listed, or to conform to usage, all as determined by the officers
executing such Debt Securities as conclusively evidenced by their execution of
9
such Debt Securities. If the form of Debt Securities (or any Global Note) of
any series is established in or pursuant to a Board Resolution, a copy of such
Board Resolution shall be delivered to the Trustee, together with an Officers'
Certificate setting forth the form of such series, at or prior to the delivery
of the Company Order contemplated by Section 3.3 for the authentication and
delivery of such Debt Securities (or any such Global Note).
Subject to Section 3.4, the definitive Debt Securities of each series 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, all as
determined by the officers executing such Debt Securities, as conclusively
evidenced by their execution of such Debt Securities.
Section 2.2 FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
-------------------------------------------------------------
The form of the Trustee's certificate of authentication to be borne by the
Debt Securities shall be substantially as follows:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the series of Debt Securities issued under the within
mentioned Indenture.
[NAME OF TRUSTEE], as Trustee
By: ____________________
Authorized Signatory
Section 2.3 SECURITIES IN GLOBAL FORM.
---------------------------------------
If any Debt Security of a series is issued as a Global Note, such Global
Note may provide that it shall represent the aggregate amount of Outstanding
Debt Securities from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Debt Securities represented thereby may from
time to time be reduced to reflect exchanges. Any endorsement of a Global Note
to reflect the amount, or any increase or decrease in the amount, of Outstanding
Debt Securities represented thereby shall be made by the Trustee and in such
manner as shall be specified in such Global Note. Any instructions by the
Company with respect to a Global Note, after its initial issuance, shall be in
writing but need not comply with Section 1.2.
Global Notes may be issued in either registered or bearer form and in
either temporary or permanent form. Permanent Global Notes will be issued in
definitive form.
Every Global Note authenticated and delivered hereunder shall bear a legend
in substantially the following form:
THIS DEBT SECURITY IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS DEBT SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR
EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE
DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY DEBT
10
SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN
EXCHANGE FOR OR IN LIEU OF, THIS DEBT SECURITY SHALL BE A GLOBAL NOTE SUBJECT TO
THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.
ARTICLE 3
THE DEBT SECURITIES
Section 3.1 AMOUNT UNLIMITED; ISSUABLE IN SERIES.
--------------------------------------------------
The aggregate principal amount of Debt Securities which may be
authenticated and delivered under this Indenture is unlimited.
The Debt Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and (subject to Section 3.3)
set forth in an Officers' Certificate, or established in one or more indentures
supplemental hereto, prior to the issuance of Debt Securities of any series:
(a) The title of the Debt Securities of the series (which shall distinguish
the Debt Securities of such series from all other series of Debt Securities);
(b) The aggregate principal amount of such series of Debt Securities and
any limit on the aggregate principal amount of the Debt Securities of the series
which may be authenticated and delivered under this Indenture (except for Debt
Securities authenticated and delivered upon transfer of, or in exchange for, or
in lieu of, other Debt Securities of such series pursuant to Sections 3.4, 3.5,
3.6, 11.6 or 13.7);
(c) The percentage of the principal amount at which the Debt Securities of
such series will be issued and, if other than the principal amount thereof, the
portion of the principal amount thereof payable upon declaration of acceleration
of the maturity or upon redemption thereof or the method by which such portion
shall be determined;
(d) The date or dates on which, or periods during which, the Debt
Securities of the series may be issued, and the date or dates or the method by
which such date or dates will be determined, on which the principal of (and
premium, if any, on) the Debt Securities of such series are or may be payable
(which, if so provided in such Board Resolution or supplemental indenture, may
be determined by the Company from time to time as set forth in the Debt
Securities of the series issued from time to time);
(e) The rate or rates (which may be fixed or variable) at which the Debt
Securities of the series shall bear interest, if any, or the method by which
such rate or rates shall be determined, the date or dates from which such
interest, if any, shall accrue or the method by which such date or dates shall
be determined (which, in either case or both, if so provided in such Board
Resolution or supplemental indenture, may be determined by the Company from time
to time and set forth in the Debt Securities of the series issued from time to
time) and the circumstances, if any, in which the Company may defer interest
payments; and the Interest Payment Dates on which such interest shall be payable
(or the method of determination thereof), and the Regular Record Dates, if any,
for the interest payable on such Interest Payment Dates and the notice, if any,
to holders regarding the determination of interest, the manner of giving such
notice, the basis upon which interest shall be calculated if other than that of
a 360-day year of twelve 30-day months and any conditions or contingencies as to
the payment of interest in cash or otherwise, if any;
11
(f) The place or places, if any, in addition to or instead of the Corporate
Trust Office of the applicable Trustee where the principal of (and premium, if
any) and interest on Debt Securities of the series shall be payable and where
such Debt Securities may be surrendered for conversion or registration of
transfer or exchange; the extent to which, or the manner in which, any interest
payable on any Global Note on an Interest Payment Date will be paid, if other
than in the manner provided in Section 3.7; the extent, if any, to which the
provisions of the last sentence of Section 12.1 shall apply to the Debt
Securities of the series; and the manner in which any principal of, or premium,
if any, on, any Global Note will be paid, if other than as set forth elsewhere
herein and whether any Global Note will require any notation to evidence payment
of principal or interest;
(g) The obligation, if any, of the Company to redeem, repay, purchase or
offer to purchase Debt Securities of the series pursuant to any mandatory
redemption, sinking fund or analogous provisions or upon other conditions or at
the option of the holder thereof and the period or periods within which or the
dates on which, the prices at which and the terms and conditions upon which the
Debt Securities of the series shall be redeemed, repaid, purchased or offered to
be purchased, in whole or in part, pursuant to such obligation;
(h) The right, if any, of the Company to redeem the Debt Securities of such
series at its option and the period or periods within which, or the date or
dates on which, the price or prices at which, and the terms and conditions upon
which, such Debt Securities may be redeemed, if any, in whole or in part, at the
option of the Company or otherwise;
(i) The denominations of such Debt Securities if other than denominations
of $1,000 and any integral multiple thereof (except as provided in Section 3.4);
(j) Whether the Debt Securities of the series are to be issued as Discount
Securities and the amount of discount with which such Debt Securities may be
issued and, if other than the principal amount thereof, the portion of the
principal amount of Debt Securities of the series which shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 5.2;
(k) Additional provisions, if any, for the defeasance or discharge of
certain of the Company's obligations with respect to Debt Securities of the
series, which provisions may be in addition to, or in substitution for, or in
modification of (or any combination of the foregoing), the provisions of the
Indenture;
(l) Whether provisions for payment of additional amounts or tax redemptions
shall apply and, if such provisions shall apply, such provisions;
(m) The date as of which any Debt Securities of the series shall be dated,
if other than as set forth in Section 3.3;
(n) If the amount of payments of principal of (and premium, if any) or
interest on the Debt Securities of the series may be determined with reference
to an index, including, but not limited to, an index based on a Currency or
Currencies other than that in which the Debt Securities are denominated or
payable, or any other type of index, the manner in which such amounts shall be
determined;
(o) The applicable Overdue Rate, if any;
(p) If the Debt Securities of the series do not bear interest, the
applicable dates for purposes of Section 7.1;
12
(q) Any addition to, or modification or deletion of, any Event of Default
or covenant provided for in this Indenture with respect to Debt Securities of
the series;
(r) Whether the Debt Securities of the series shall be issued in whole or
in part in the form of one or more Global Notes and, in such case, the U.S.
Depositary or any Common Depositary for such Global Note or Notes; and the
manner in which and the circumstances under which Global Notes representing Debt
Securities of the series may be exchanged for Debt Securities in definitive
form, if other than, or in addition to, the manner and circumstances specified
in Section 3.4(c);
(s) The designation, if any, of any depositaries, trustees (other than the
Trustee), Paying Agents, Authenticating Agents, Conversion Agents, Security
Registrars (other than the Trustee) or other agents with respect to the Debt
Securities of such series;
(t) If the Debt Securities of such series will be issuable in definitive
form only upon receipt of certain certificates or other documents or upon
satisfaction of certain conditions, the form and terms of such certificates,
documents or conditions;
(u) Whether the Debt Securities of such series will be convertible into
shares of Common Stock or other securities or property of the Company, and, if
so, the terms and conditions, which may be in addition to or in lieu of the
provisions contained in this Indenture, upon which such Debt Securities will be
so convertible, including the conversion price and the conversion period;
(v) The portion of the principal amount of the Debt Securities which will
be payable upon declaration of acceleration of the maturity thereof, if other
than the principal amount thereof;
(w) The terms, if any, on which the Debt Securities of such series will be
subordinate to other debt of the Company;
(x) Any listing or intended listing of the Debt Securities on a securities
exchange.
(y) The provisions, if any, relating to any security provided for the Debt
Securities of such series; and
(z) The provisions, if any, relating to any guarantees of the Debt
Securities; and
(aa) Any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture).
All Debt Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to such Board Resolution and (subject to Section 3.3) set forth in such
Officers' Certificate, or in any such indenture supplemental hereto. All Debt
Securities of any one series need not be issued at the same time, and unless
otherwise provided, a series may be reopened for issuance of additional Debt
Securities of such series.
If any of the terms of a series of Debt Securities is established in or
pursuant to a Board Resolution, a copy of such Board Resolution shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series.
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Section 3.2 DENOMINATIONS.
---------------------------
In the absence of any specification pursuant to Section 3.1 with respect to
the Debt Securities of any series, the Debt Securities of such series shall be
issuable only as Debt Securities in denominations of $1,000 and any integral
multiple thereof and shall be payable only in Dollars.
Section 3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING.
------------------------------------------------------------
The Debt Securities of any series shall be executed on behalf of the
Company by its Chairman of the Board of Directors, its President, one of its
Executive or Senior Vice Presidents or its Treasurer, under its corporate seal
reproduced thereon and attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers may be manual or facsimile.
Debt Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Debt Securities or did
not hold such offices at the date of such Debt Securities.
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Debt Securities of any series, executed by
the Company, to the Trustee for authentication, together with a Company Order
for the authentication and delivery of such Debt Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such Debt
Securities. If all the Debt Securities of any one series are not to be issued
at one time and if a Board Resolution or supplemental indenture relating to such
series shall so permit, such Company Order may set forth procedures acceptable
to the Trustee for the issuance of such Debt Securities such as interest rate,
Stated Maturity, date of issuance and date from which interest, if any, shall
accrue. If any Debt Security shall be represented by a permanent Global Note,
then, for purposes of this Section and Section 3.4, the notation of a beneficial
owner's interest therein upon original issuance of such Debt Security or upon
exchange of a portion of a temporary Global Note shall be deemed to be delivery
in connection with the original issuance of such beneficial owner's interest in
such permanent Global Note.
The Trustee shall be entitled to receive, and (subject to Section 6.1)
shall be fully protected in relying upon, prior to the authentication and
delivery of the Debt Securities of such series, (i) the supplemental indenture
or the Board Resolution by or pursuant to which the form and terms of such Debt
Securities have been approved, (ii) an Officers' Certificate stating that all
conditions precedent provided for in the Indenture have been complied with and
that, to the best knowledge of the signers of such certificates, no Event of
Default with respect to any of the Debt Securities shall have occurred and be
continuing and (iii) an Opinion of Counsel substantially to the effect that:
(a) the form and terms of such Debt Securities, have been established in
conformity with the provisions of this Indenture; and
(b) such Debt Securities, when completed by appropriate insertions and
executed and delivered by the Company to the Trustee in accordance with the
Indenture, authenticated and delivered by the Trustee in accordance with this
Indenture and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute legal, valid and binding
obligations of the Company, enforceable against the Company in accordance with
their terms, subject to applicable bankruptcy, insolvency, fraudulent transfer
and similar laws affecting creditors' rights generally and to general principles
of equity (regardless of whether enforcement is sought in a proceeding in equity
or at law).
14
The Trustee shall not be required to authenticate such Debt Securities if
the issuance of such Debt Securities pursuant to this Indenture will affect the
Trustee's own rights, duties or immunities under the Debt Securities and this
Indenture in a manner which is not reasonably acceptable to the Trustee.
Each Debt Security shall be dated the date of its authentication.
No Debt Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Debt
Security a certificate of authentication substantially in one of the forms
provided for herein duly executed by the Trustee or by an Authenticating Agent,
and such certificate upon any Debt Security shall be conclusive evidence, and
the only evidence, that such Debt Security has been duly authenticated and
delivered hereunder and is entitled to the benefits of this Indenture.
Notwithstanding the foregoing, if any Debt Security shall have been duly
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Debt Security to the Trustee for cancellation
as provided in Section 3.8 together with a written statement (which need not
comply with Section 1.2) stating that such Debt Security has never been issued
and sold by the Company, for all purposes of this Indenture such Debt Security
shall be deemed never to have been authenticated and delivered hereunder and
shall never be entitled to the benefits of this Indenture.
Section 3.4 TEMPORARY DEBT SECURITIES; EXCHANGE OF TEMPORARY GLOBAL NOTES FOR
-------------------------------------------------------------------------------
DEFINITIVE DEBT SECURITIES; GLOBAL NOTES REPRESENTING DEBT SECURITIES.
---------------------------------------------------------------------
(a) Pending the preparation of definitive Debt Securities of any series,
the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Debt Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination
for Debt Securities of such series, substantially of the tenor of the definitive
Debt Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Debt Securities may determine, as conclusively evidenced by their
execution of such Debt Securities. Every such temporary Debt Security shall be
executed by the Company and shall be authenticated and delivered by the Trustee
upon the same conditions and in substantially the same manner, and with the same
effect, as the definitive Debt Securities in lieu of which they are issued.
Except in the case of temporary Debt Securities in global form (which
shall be exchanged in accordance with the provisions of the following
paragraphs), if temporary Debt Securities of any series are issued, the Company
will cause definitive Debt Securities of such series to be prepared without
unreasonable delay. After the preparation of definitive Debt Securities of such
series, the temporary Debt Securities of such series shall be exchangeable for
definitive Debt Securities of such series, of a like Stated Maturity and with
like terms and provisions, upon surrender of the temporary Debt Securities of
such series at the office or agency of the Company in a Place of Payment for
such series, without charge to the holder, except as provided in Section 3.5 in
connection with a transfer. Upon surrender for cancellation of any one or more
temporary Debt Securities of any series, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Debt Securities of the same series of authorized
denominations and of a like Stated Maturity and like terms and provisions.
Until so exchanged, the temporary Debt Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Debt Securities of such series.
(b) If the Company shall establish pursuant to Section 3.1 that the Debt
Securities of a series are to be issued in whole or in part in the form of one
or more Global Notes, then the Company shall execute and the Trustee shall, in
accordance with Section 3.3 and the Company Order with respect to such series,
authenticate and deliver one or more Global Notes in temporary or permanent form
that (i) shall represent and shall be denominated in an amount equal to the
aggregate principal amount of the Outstanding Debt Securities
15
of such series to be represented by one or more Global Notes, (ii) shall be
registered in the name of the U.S. Depositary for such Global Note or Notes or
the nominee of such depositary, and (iii) shall bear a legend substantially as
set forth in Section 2.3.
Notwithstanding any other provision of this Section or Section 3.5, unless
and until it is exchanged in whole or in part for Debt Securities in definitive
form, a Global Note representing all or a portion of the Registered Securities
of a series may not be transferred except as a whole by the U.S. Depositary for
such series to a nominee of such depositary or by a nominee of such depositary
to such depositary or another nominee of such depositary or by such depositary
or any such nominee to a successor U.S. Depositary for such series or a nominee
of such successor depositary.
If at any time the U.S. Depositary for the Debt Securities of a series
notifies the Company that it is unwilling or unable to continue as U.S.
Depositary for the Debt Securities of such series or if at any time the U.S.
Depositary for Debt Securities of a series shall no longer be a clearing agency
registered and in good standing under the Securities Exchange Act of 1934, as
amended, or other applicable statute or regulation, the Company shall appoint a
successor U.S. Depositary with respect to the Debt Securities of such series.
If a successor U.S. Depositary for the Debt Securities of such series is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such condition, the Company will execute, and the Trustee,
upon receipt of a Company Order for the authentication and delivery of
definitive Debt Securities of such series, will authenticate and deliver, Debt
Securities of such series in definitive form in an aggregate principal amount
equal to the principal amount of the Global Note or Notes representing such
series in exchange for such Global Note or Notes.
The Company may at any time and in its sole discretion determine that the
Debt Securities of any series issued in the form of one or more Global Notes
shall no longer be represented by such Global Note or Notes. In such event, the
Company will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of definitive Debt Securities of such series, will
authenticate and deliver, Debt Securities of such series in definitive form and
in an aggregate principal amount equal to the principal amount of the Global
Note or Notes representing such series in exchange for such Global Note or
Notes.
If the Debt Securities of any series shall have been issued in the form of
one or more Global Notes and if an Event of Default with respect to the Debt
Securities of such series shall have occurred and be continuing, the Company
will promptly execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of definitive Debt Securities of such series, will
authenticate and deliver, Debt Securities of such series in definitive form and
in an aggregate principal amount equal to the principal amount of the Global
Note or Notes representing such series in exchange for such Global Note or
Notes.
If specified by the Company pursuant to Section 3.1 with respect to Debt
Securities of a series, the U.S. Depositary for such series of Debt Securities
may surrender a Global Note for such series of Debt Securities in exchange in
whole or in part for Debt Securities of such series in definitive form on such
terms as are acceptable to the Company and such depositary. Thereupon, the
Company shall execute and the Trustee shall authenticate and deliver, without
charge:
(i) to each Person specified by the U.S. Depositary a new Debt
Security or Securities of the same series, of any authorized denomination as
requested by such Person in an aggregate principal amount equal to and in
exchange for such Person's beneficial interest in the Global Note; and
(ii) to the U.S. Depositary a new Global Note in a denomination equal
to the difference, if any, between the principal amount of the surrendered
Global Note and the aggregate principal amount of Debt Securities delivered to
holders thereof.
16
Upon the exchange of a Global Note for Debt Securities in definitive form,
such Global Note shall be cancelled by the Trustee. Debt Securities issued in
exchange for a Global Note pursuant to this subsection (c) shall be registered
in such names and in such authorized denominations as the U.S. Depositary for
such Global Note, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Debt Securities to the Persons in whose names such Debt Securities
are so registered.
Section 3.5 REGISTRATION, TRANSFER AND EXCHANGE.
-------------------------------------------------
(a) The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the registers maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Debt Securities and of transfers and exchanges of Debt
Securities. The Trustee is hereby appointed "Security Registrar" for the
purpose of registering Debt Securities and registering transfers and exchanges
of Debt Securities as herein provided; provided, however, that the Company may
appoint co-Security Registrars or the terms of any series of Debt Securities may
provide otherwise.
Upon surrender for registration of transfer of any Debt Security of
any series at the office or agency of the Company maintained for such purpose,
the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee, one or more new Debt Securities of the
same series of like aggregate principal amount of such denominations as are
authorized for Debt Securities of such series and of a like Stated Maturity and
with like terms and conditions.
Except as otherwise provided in Section 3.4 and this Section 3.5, at
the option of the holder, Debt Securities of any series may be exchanged for
other Debt Securities of the same series of like aggregate principal amount and
of a like Stated Maturity and with like terms and conditions, upon surrender of
the Debt Securities to be exchanged at such office or agency. Whenever any Debt
Securities are surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Debt Securities which the holder
making the exchange is entitled to receive.
(b) All Debt Securities issued upon any transfer or exchange of Debt
Securities shall be valid obligations of the Company, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Debt Securities
surrendered for such transfer or exchange.
Every Debt Security presented or surrendered for 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 and the Security Registrar, duly executed, by the holder thereof or his
or her attorney duly authorized in writing.
No service charge will be made for any transfer or exchange of Debt
Securities except as provided in Section 3.4(b) or 3.6. The Company may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration, transfer or exchange of Debt
Securities, other than those expressly provided in this Indenture to be made at
the Company's own expense or without expense or without charge to the holders.
The Company shall not be required (i) to register, transfer or
exchange Debt Securities of any series during a period beginning at the opening
of business 15 days before the day of the transmission of a notice of redemption
of Debt Securities of such series selected for redemption under Section 13.3 and
ending at the close of business on the day of such transmission, or (ii) to
register, transfer or exchange any Debt
17
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Debt Security being redeemed in part.
Section 3.6 MUTILATED, DESTROYED, LOST AND STOLEN DEBT SECURITIES.
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If (i) any mutilated Debt Security is surrendered to the Trustee at its
Corporate Trust Office, or (ii) the Company and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of any Debt Security, and
there is delivered to the Company and the Trustee such security or indemnity as
may be required by them to save each of them and any Paying Agent harmless, and
neither the Company nor the Trustee receives notice that such Debt Security has
been acquired by a bona fide purchaser, then the Company shall execute and upon
Company Request, the Trustee shall authenticate and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Debt Security, a new
Debt Security of the same series of like Stated Maturity and with like terms and
conditions and like principal amount, bearing a number not contemporaneously
Outstanding.
In case any such mutilated, destroyed, lost or stolen Debt Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Debt Security, pay the amount due on such Debt
Security.
Upon the issuance of any new Debt Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in respect thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Debt Security of any series issued pursuant to this Section shall
constitute an original additional contractual obligation of the Company, whether
or not the destroyed, lost or stolen Debt Security shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Debt Securities of
that series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Debt Securities.
Section 3.7 PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.
------------------------------------------------------------
(a) Interest on any Debt Security which is payable and is punctually paid
or duly provided for on any Interest Payment Date shall be paid to the Person in
whose name such Debt Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest
notwithstanding the cancellation of such Debt Security upon any transfer or
exchange subsequent to the Regular Record Date. Unless otherwise specified as
contemplated by Section 3.1 with respect to the Debt Securities of any series,
payment of interest on Debt Securities shall be made at the place or places
specified pursuant to Section 3.1 or, at the option of the Company, by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or, if provided pursuant to Section 3.1, by wire
transfer to an account designated by the registered holder.
(b) Any interest on any Debt Security which is payable but is not
punctually paid or duly provided for on any Interest Payment Date (herein called
"Defaulted Interest") shall forthwith cease to be payable to the registered
holder on the relevant Regular Record Date by virtue of his having been such
registered holder, and such Defaulted Interest may be paid by the Company, at
its election in each case, as provided in clause (1) or (2) below:
18
(1) The Company may elect to make payment of any Defaulted Interest to
the Persons in whose names such Debt Securities (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Debt Security and the date
of the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a Special Record Date for the payment of such Defaulted Interest. The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first-class postage prepaid, to the holders of such Debt Securities at
their addresses as they appear in the Security Register, not less than 15 days
prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Debt Securities (or their respective Predecessor Securities) are registered
at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2).
(2) The Company may make payment of any Defaulted Interest on Debt
Securities in any other lawful manner not inconsistent with the requirements of
any securities exchange on which such Debt Securities may be listed, and upon
such notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.
(c) Subject to the foregoing provisions of this Section, each Debt Security
delivered under this Indenture upon transfer of, in exchange for, or in lieu of,
any other Debt Security shall carry the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Debt Security.
Section 3.8 CANCELLATION.
--------------------------
Unless otherwise specified pursuant to Section 3.1 for Debt Securities of
any series, all Debt Securities surrendered for payment, redemption, transfer,
exchange or credit against any sinking fund surrendered for payment or exchange
shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee. All Debt Securities so delivered shall be promptly cancelled by the
Trustee. The Company may at any time deliver to the Trustee for cancellation
any Debt Securities previously authenticated and delivered hereunder which the
Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation
any Debt Securities previously authenticated hereunder which the Company has not
issued, and all Debt Securities so delivered shall be promptly cancelled by the
Trustee. No Debt Securities shall be authenticated in lieu of or in exchange
for any Debt Securities cancelled as provided in this Section, except as
expressly permitted by this Indenture. All cancelled Debt Securities held by
the Trustee shall be delivered to the Company upon Company Request. The
acquisition of any Debt Securities by the Company shall not operate as a
redemption or satisfaction of the indebtedness represented thereby unless and
until such Debt Securities are surrendered to the Trustee for cancellation.
Permanent Global Notes shall not be destroyed until exchanged in full for
definitive Debt Securities or until payment thereon is made in full.
19
Section 3.9 COMPUTATION OF INTEREST.
-------------------------------------
Except as otherwise specified pursuant to Section 3.1 for Debt Securities
of any series, interest on the Debt Securities of each series shall be computed
on the basis of a 360-day year of twelve 30-day months.
Section 3.10 MANDATORY DISPOSITION OF DEBT SECURITIES PURSUANT TO GAMING LAWS.
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Each holder and beneficial owner, by accepting or otherwise acquiring an
interest in the Debt Securities, shall be deemed to have agreed that if the
Gaming Authority of any jurisdiction in which the Company or any of its
subsidiaries conducts or proposes to conduct gaming requires that a Person who
is a holder or beneficial owner must be licensed, qualified or found suitable
under the applicable Gaming Laws, such holder or beneficial owner shall apply
for a license, qualification or a finding of suitability within the required
time period. If such Person fails to apply or become licensed or qualified or
is found unsuitable, then the Company shall have the right, at its option,
notwithstanding any other provision of this Indenture (i) to require such Person
to dispose of its Debt Securities or beneficial interest therein within 30 days
of receipt of notice of the Company's election or such earlier date as may be
requested or prescribed by such Gaming Authority or (ii) to redeem such Debt
Securities at a redemption price equal to 100% of the principal amount thereof,
plus accrued and unpaid interest to the earlier of the redemption date and the
date of the finding of unsuitability, which may be less than 30 days following
the notice of redemption if so requested or prescribed by the Gaming Authority,
or such lesser amount as may be required by applicable law or by order of any
Gaming Authority. The Company shall notify the Trustee in writing of any such
redemption as soon as practicable. The Company shall not be responsible for any
costs or expenses any such holder or beneficial owner may incur in connection
with its application for a license, qualification or a finding of suitability.
Notwithstanding any other provision of this Indenture, immediately upon the
imposition of a requirement to dispose of Debt Securities by a Gaming Authority,
such Person shall, to the extent required by applicable Gaming Law, have no
further right (i) to exercise, directly or indirectly, through any trustee,
nominee or any other person or entity, any right conferred by the Debt
Securities or (ii) to receive any interest, dividends or any other distributions
or payments with respect to the Debt Securities or any remuneration in any form
with respect to the Debt Securities from the Company or the Trustee, except the
redemption price.
ARTICLE 4
SATISFACTION AND DISCHARGE
Section 4.1 SATISFACTION AND DISCHARGE OF INDENTURE.
-----------------------------------------------------
This Indenture shall, upon Company Request, cease to be of further effect
with respect to any series of Debt Securities specified in such Company Request
(except as to any surviving rights of registration of transfer or exchange of
such Debt Securities herein expressly provided for and rights to receive
payments of
20
principal (and premium, if any) and interest on such Debt Securities) and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when:
(a) either
(1) all Debt Securities of such series theretofore authenticated and
delivered (other than (i) Debt Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 3.6, and (ii)
Debt Securities of such series for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust, as provided in Section
12.4) have been delivered to the Trustee for cancellation; or
(2) all Debt Securities of such series not theretofore delivered to
the Trustee for cancellation,
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity within
one year, or
(iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice by the Trustee
in the name, and at the expense, of the Company, or
(iv) the Company either complies with any other condition or
terms specified pursuant to Section 3.1, or if not so specified in the case of
(i), (ii) or (iii) of this subclause (a), has irrevocably deposited or caused to
be deposited with the Trustee as trust funds in trust for such purpose an amount
sufficient to pay and discharge the entire indebtedness on such Debt Securities
for principal (and premium, if any) and interest to the date of such deposit (in
the case of Debt Securities which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be; provided, however, in the event
a petition for relief under the Federal bankruptcy laws, as now or hereafter
constituted, or any other applicable Federal or state bankruptcy, insolvency or
other similar law, is filed with respect to the Company within 91 days after the
deposit and the Trustee is required to return the deposited money to the
Company, the obligations of the Company under this Indenture with respect to
such Debt Securities shall not be deemed terminated or discharged;
(b) the Company has paid or caused to be paid all other sums payable
hereunder by the Company;
(c) the Company has delivered to the Trustee an Officers' Certificate and
an Opinion of Counsel each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of this Indenture with respect to
such series have been complied with; and
(d) the Company has delivered to the Trustee an Opinion of Counsel or a
ruling by the Internal Revenue Service to the effect that holders of the Debt
Securities of the series will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit and discharge.
Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.7, the obligations of
the Trustee to any Authenticating Agent under Section 6.14, the obligations of
the Company under Section 12.1, and, if money shall have been deposited with the
Trustee pursuant to subclause (2) of clause (a) of this Section, the obligations
of the Trustee under Section 4.2 and the last paragraph of Section 12.4, shall
survive.
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Section 4.2 APPLICATION OF TRUST MONEY.
----------------------------------------
Subject to the provisions of the last paragraph of Section 12.4, all money
deposited with the Trustee pursuant to Section 4.1 shall be held in trust and
applied by it, in accordance with the provisions of the Debt 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 Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee.
ARTICLE 5
REMEDIES
Section 5.1 EVENTS OF DEFAULT.
-------------------------------
"Event of Default" wherever used herein with respect to Debt Securities of
any series means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law, pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):
(a) default in the payment of any interest upon any Debt Security of such
series when it 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 (and premium, if any, on)
any Debt Security of such series at its Maturity; or
(c) default in the deposit of any sinking fund payment, when and as due by
the terms of a Debt Security of such series; or
(d) default in the performance, or breach, of any covenant or warranty of
any Obligor in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with or which expressly has been included in this Indenture solely for the
benefit of Debt Securities of a series other than such series), and continuance
of such default or breach for a period of 60 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the holders of at least 25% in principal amount of the
Outstanding Debt Securities of such series, a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice
is a "Notice of Default" hereunder; or
(e) the entry of a decree or order for relief in respect of the Company by
a court having jurisdiction in the premises in an involuntary case under the
Federal bankruptcy laws, as now or hereafter constituted, or any other
applicable Federal or State bankruptcy, insolvency or other similar law, or a
decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable
22
Federal or State law, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or other similar official) of the Company or of any
substantial part of its property, or ordering the winding up or liquidation of
its affairs, and the continuance of any such decree or order unstayed and in
effect for a period of 90 consecutive days; or
(f) the commencement by the Company of a voluntary case under the Federal
bankruptcy laws, as now or hereafter constituted, or any other applicable
Federal or State bankruptcy, insolvency or other similar law, or the consent by
it to the entry of an order for relief in an involuntary case under any such law
or to the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or other similar official) of the Company or of any substantial
part of its property, or the making by it of an assignment for the benefit of
its creditors, or the admission by it in writing of its inability to pay its
debts generally as they become due, or the taking of corporate action by the
Company in furtherance of any such action; or
(g) any other Event of Default or variations in the foregoing Events of
Default provided with respect to Debt Securities of that series pursuant to
Section 3.1.
Section 5.2 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.
----------------------------------------------------------------
If an Event of Default with respect to Debt Securities of any series at the
time Outstanding occurs and is continuing, then in every such case the Trustee
or the holders of not less than 25% in principal amount of the Outstanding Debt
Securities of such series may declare the principal amount (or, if any Debt
Securities of such series are Discount Securities, such portion of the principal
amount of such Discount Securities as may be specified in the terms of such
Discount Securities) of all the Debt Securities of such series to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by holders), and upon any such declaration such principal amount (or
specified amount) plus accrued and unpaid interest (and premium, if payable)
shall become immediately due and payable. Upon payment of such amount all
obligations of the Company in respect of the payment of principal of the Debt
Securities of such series shall terminate.
At any time after such a declaration of acceleration with respect to Debt
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the holders of at least a majority in principal amount of the
Outstanding Debt Securities of such series, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if:
(a) the Company has paid or deposited with the Trustee a sum sufficient to
pay
(1) all overdue installments of interest on all Debt Securities of
such series,
(2) the principal of (and premium, if any, on) any Debt Securities of
such series which have become due otherwise than by such declaration of
acceleration and interest thereon at the rate or rates prescribed therefor in
such Debt Securities,
(3) to the extent that payment of such interest is lawful, interest
upon overdue installments of interest on each Debt Security of such series at
the Overdue Rate, and
(4) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel;
23
(b) All Events of Default with respect to Debt Securities of such series,
other than the nonpayment of the principal of Debt Securities of such series
which has become due solely by such declaration of acceleration, have been cured
or waived as provided in Section 5.13.
No such rescission and waiver shall affect any subsequent default or impair any
right consequent thereon.
Section 5.3 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.
-----------------------------------------------------------------------------
The Company covenants that, if:
(a) default is made in the payment of any installment of interest on any
Debt Security when such interest or payment becomes due and payable and such
default continues for a period of 30 days,
(b) default is made in the payment of principal of (or premium, if any, on)
any Debt Security at the Maturity thereof, or
(c) default is made in the making or satisfaction of any sinking fund
payment or analogous obligation when the same becomes due pursuant to the terms
of the Debt Securities of any series,
then the Company will, upon demand of the Trustee, pay to it, for the benefit of
the holders of such Debt Securities, the amount then due and payable on such
Debt Securities for the principal (and premium, if any) and interest, if any,
and, to the extent that payment of such interest shall be legally enforceable,
interest upon the overdue principal (and premium, if any) and upon overdue
installments of interest, at the Overdue Rate; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.
If the Company fails to pay such amount forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company, any Guarantor or any other obligor upon such Debt
Securities and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property of the Company, any Guarantor or any
other obligor upon such Debt Securities wherever situated.
If an Event of Default with respect to Debt Securities of any series occurs
and is continuing, then the Trustee may, in its discretion, proceed to protect
and enforce its rights and the rights of the holders of Debt Securities of such
series by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.
Section 5.4 TRUSTEE MAY FILE PROOFS OF CLAIM.
----------------------------------------------
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceedings, or any voluntary or involuntary case under the Federal
bankruptcy laws, as now or hereafter constituted, relative to the Company, any
Guarantor or any other obligor upon the Debt Securities, of a particular series
or the property of the Company, any Guarantor or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of such Debt
Securities shall then be due and payable as therein expressed or by declaration
of acceleration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company, any Guarantor or any obligor for the payment of
overdue principal or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise,
24
(a) to file and prove a claim for the whole amount of principal (or, if the
Debt Securities of such series are Discount Securities, such portion of the
principal amount as may be due and payable with respect to such series pursuant
to a declaration in accordance with Section 5.2) (and premium, if any) and
interest owing and unpaid in respect of the Debt Securities of such series and
to file such other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and of the holders of such Debt Securities allowed in such judicial
proceeding, and
(b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;
and any receiver, assignee, trustee, custodian, liquidator, sequestrator (or
other similar official) in any such proceeding is hereby authorized by each such
holder to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to such holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 6.7.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any holder any plan of
reorganization, arrangement, adjustment or composition affecting the Debt
Securities of such series 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.
Section 5.5 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF DEBT SECURITIES.
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All rights of action and claims under this Indenture or the Debt Securities
of any series may be prosecuted and enforced by the Trustee without the
possession of any of such Debt Securities or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the Trustee
shall be brought in its own name, as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the holders of the Debt Securities in
respect of which such judgment has been recovered.
Section 5.6 APPLICATION OF MONEY COLLECTED.
--------------------------------------------
Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal (and premium,
if any) or interest, upon presentation of the Debt Securities of any series in
respect of which money has been collected and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under Section 6.7.
SECOND: To the payment of the amounts then due and unpaid for principal of
(and premium, if any) and interest on the Debt Securities of such series, in
respect of which or for the benefit of which such money has been collected
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Debt Securities for principal (and premium, if any) and
interest, respectively; and
THIRD: The balance, if any, to the Person or Persons entitled thereto.
25
Section 5.7 LIMITATION ON SUITS.
---------------------------------
No holder of any Debt Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:
(a) such holder has previously given written notice to the Trustee of a
continuing Event of Default with respect to such series;
(b) the holders of not less than 25% in principal amount of the Outstanding
Debt Securities of such series shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as
Trustee hereunder;
(c) such holder or holders have offered to the Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with
such request;
(d) the Trustee for 60 days after its receipt of such notice, request and
offer of indemnity has failed to institute any such proceeding; and
(e) no direction inconsistent with such written request has been given to
the Trustee during such 60-day period by the holders of at least a majority in
principal amount of the Outstanding Debt Securities of such series;
it being understood and intended that no one or more of such holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other such
holders or of the holders of Outstanding Debt Securities of any other series, or
to obtain or to seek to obtain priority or preference over any other of such
holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all of such holders.
For the protection and enforcement of the provisions of this Section 5.7, each
and every holder of Debt Securities of any series and the Trustee for such
series shall be entitled to such relief as can be given at law or in equity.
Section 5.8 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND
------------------------------------------------------------------------------
INTEREST.
--------
Notwithstanding any other provision in this Indenture, the holder of any
Debt Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of (and premium, if any) and (subject to
Section 3.7 and 3.10) interest on such Debt Security on the respective Stated
Maturity or Maturities expressed in such Debt Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement of
any such payment and interest thereon, and such right shall not be impaired
without the consent of such holder.
Section 5.9 RESTORATION OF RIGHTS AND REMEDIES.
------------------------------------------------
If the Trustee or any holder has instituted any proceeding to enforce any
right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or
to such holder, then and in every such case the Company, the Trustee and the
holders shall, subject to any determination in such proceeding, be restored
severally and respectively to their
26
former positions hereunder, and thereafter all rights and remedies of the
Trustee and the holders shall continue as though no such proceeding had been
instituted.
Section 5.10 RIGHTS AND REMEDIES CUMULATIVE.
--------------------------------------------
Except as otherwise expressly provided elsewhere in this Indenture, no
right or remedy herein conferred upon or reserved to the Trustee or to the
holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
Section 5.11 DELAY OR OMISSION NOT WAIVER.
------------------------------------------
No delay or omission of the Trustee or of any holder to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or
remedy or constitute a waiver of any such Event of Default or any acquiescence
therein. Every right and remedy given by this Indenture or by law to the
Trustee or to the holders may be exercised from time to time, and as often as
may be deemed expedient, by the Trustee or by the holders, as the case may be.
Section 5.12 CONTROL BY HOLDERS.
--------------------------------
The holders of at least a majority in principal amount of the Outstanding
Debt Securities of any series shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred on the Trustee with respect to the
Debt Securities of such series, provided that:
(a) such direction shall not be in conflict with any rule of law or with
this Indenture;
(b) subject to the provisions of Section 6.1, the Trustee shall have the
right to decline to follow any such direction if the Trustee in good faith
shall, by a Responsible Officer or Responsible Officers of the Trustee,
determine that the proceeding so directed would be unjustly prejudicial to the
holders of Debt Securities of such series not joining in any such direction; and
(c) the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction.
Section 5.13 WAIVER OF PAST DEFAULTS.
-------------------------------------
The holders of not less than a majority in aggregate principal amount of
the Outstanding Debt Securities of any series, by notice to the Trustee, may, on
behalf of the holders of all Debt Securities of such series, waive any past
default hereunder with respect to such series and its consequences, except a
default:
(a) in the payment of the principal of (or premium, if any) or interest on
any Debt Security of such series, or in the payment of any sinking fund
installment or analogous obligation with respect to the Debt Securities of such
series, or
27
(b) in respect of a covenant or provision hereof which, pursuant to Article
11, cannot be modified or amended without the consent of the holder of each
Outstanding Debt Security of such series affected.
Upon any such waiver, such default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of the Debt Securities of such series under this Indenture, but no such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon.
Section 5.14 UNDERTAKING FOR COSTS.
-----------------------------------
All parties to this Indenture agree, and each holder of any Debt Security
by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit other than the Trustee 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 shall not apply to any suit
instituted by the Trustee, to any suit instituted by any holder or group of
holders holding in the aggregate more than 10% in principal amount of the
Outstanding Debt Securities of any series, or to any suit instituted by any
holder of a Debt Security for the enforcement of the payment of the principal of
(or premium, if any) or interest on such Debt Security on or after the
respective Stated Maturity or Maturities expressed in such Debt Security (or, in
the case of redemption, on or after the Redemption Date).
Section 5.15 WAIVER OF STAY OR EXTENSION LAWS.
----------------------------------------------
Each Obligor covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and each Obligor (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.
ARTICLE 6
THE TRUSTEE
Section 6.1 CERTAIN DUTIES AND RESPONSIBILITIES.
-------------------------------------------------
(a) Except during the continuance of an Event of Default with respect to
the Debt Securities of any series,
(1) the Trustee undertakes to perform such duties and only such duties
as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions
28
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 provisions
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.
(b) In case an Event of Default with respect to Debt Securities of any
series has occurred and is continuing, the Trustee shall, with respect to the
Debt Securities of such series, exercise such of the rights and powers vested in
it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.
(c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that
(1) this subsection shall not be construed to limit the effect of
subsection (a) of this Section;
(2) the Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer, unless it shall be proved that the Trustee
was negligent in ascertaining the pertinent facts;
(3) the Trustee shall not be liable with respect to any action taken,
suffered or omitted to be taken by it with respect to Debt Securities of any
series in good faith in accordance with the direction of the holders of at least
a majority in principal amount of the Outstanding Debt Securities of such 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;
(4) the Trustee shall not be required to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if it shall
have reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it; and
(5) the Trustee shall comply with any order or directive of a Gaming
Authority that the Trustee submit an application for any license, finding of
suitability or other approval pursuant to any Gaming Law and will cooperate
fully and completely in any proceeding related to such application.
(d) Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.
Section 6.2 NOTICE OF DEFAULTS.
--------------------------------
Within 90 days after the occurrence of any default hereunder with respect
to Debt Securities of any series, the Trustee shall give notice to all holders
of Debt Securities of such series of such default hereunder known to the
Trustee, unless such default shall have been cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of (or
premium, if any) or interest on any Debt Security of such series or in the
payment of any sinking fund installment with respect to Debt Securities of such
series, the Trustee shall be protected in withholding such notice if and so long
as the board of directors, the executive committee or a trust committee of
directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the holders of Debt
Securities of such series; and provided, further, that in the case of any
default of the character specified in Section 5.1(d) with respect
29
to Debt Securities of such series no such notice to holders shall be given until
at least 30 days after the occurrence thereof. For the purpose of this Section,
the term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to Debt Securities of such
series.
Notice given pursuant to this Section 6.2 shall be transmitted by mail:
(a) to all registered holders, as the names and addresses of the registered
holders appear in the Security Register; and
(b) to each holder of a Debt Security of any series whose name and address
appear in the information preserved at the time by the Trustee in accordance
with Section 7.2(a) of this Indenture.
Section 6.3 CERTAIN RIGHTS OF TRUSTEE.
---------------------------------------
Except as otherwise provided in Section 6.1:
(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, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;
(b) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order and any resolution
of the Board of Directors shall be sufficiently evidenced by a Board Resolution;
(c) whenever in the administration of this Indenture the Trustee shall deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
an Officers' Certificate;
(d) the Trustee may consult with counsel and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of
the holders of Debt Securities of any series pursuant to this Indenture, unless
such holders shall have offered to the Trustee security or indemnity reasonably
satisfactory to it against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;
(f) the Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney;
and
(g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any
30
misconduct or negligence on the part of any agent or attorney appointed with due
care by it hereunder.
Section 6.4 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF DEBT SECURITIES.
-------------------------------------------------------------------------
The recitals contained herein and in the Debt Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Debt Securities of any series. The Trustee shall not be
accountable for the use or application by the Company of any Debt Securities or
the proceeds thereof.
Section 6.5 MAY HOLD DEBT SECURITIES.
--------------------------------------
The Trustee, any Paying Agent, the Security Registrar or any other agent of
the Company, in its individual or any other capacity, may become the owner or
pledgee of Debt Securities and, subject to Sections 6.8 and 6.13, may otherwise
deal with the Company with the same rights it would have if it were not Trustee,
Paying Agent, Security Registrar or such other agent.
Section 6.6 MONEY HELD IN TRUST.
---------------------------------
Money held by the Trustee or any Paying Agent in trust hereunder need not
be segregated from other funds except to the extent required by law. Neither the
Trustee nor any Paying Agent shall be under any liability for interest on any
money received by it hereunder except as otherwise agreed with the Company.
Section 6.7 COMPENSATION AND REIMBURSEMENT.
--------------------------------------------
The Company agrees:
(a) to pay to the Trustee from time to time reasonable compensation for all
services rendered by it hereunder (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust);
(b) except as otherwise expressly provided herein, to reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Indenture (including the reasonable compensation and the reasonable expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or bad faith; and
(c) to indemnify the Trustee for, and to hold it harmless against, any
loss, liability or expense incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of this
trust or performance of its duties hereunder, including the costs and expenses
of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.
As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a claim prior to the Debt Securities, upon
all property and funds held or collected by the Trustee as such, except funds
held in trust for the payment of amounts due on the Debt Securities.
31
The obligations of the Company under this Section 6.7 to compensate and
indemnify the Trustee for reasonable expenses, disbursements and advances shall
constitute additional indebtedness under this Indenture and shall survive the
satisfaction and discharge of this Indenture.
SECTION 6.8. DISQUALIFICATION; CONFLICTING INTERESTS. If the Trustee has
-----------------------------------------------------
or shall acquire a conflicting interest within the meaning of Section 310 of the
Trust Indenture Act, the Trustee shall either eliminate such conflicting
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a
conflicting interest with respect to the Debt Securities of any series by virtue
of being Trustee with respect to the Debt Securities of any particular series of
Debt Securities other than that series.
32
Section 6.9 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.
-----------------------------------------------------
There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $100,000,000, subject to supervision or examination by Federal,
State or District of Columbia authority. If such corporation publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, 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 upon any Debt Securities.
Section 6.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.
---------------------------------------------------------------
(a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee under Section 6.11.
33
(b) The Trustee may resign at any time with respect to the Debt Securities
of one or more series by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Debt Securities of such
series.
(c) The Trustee may be removed at any time with respect to the Debt
Securities of any series and a successor Trustee appointed by Act of the holders
of at least a majority in principal amount of the Outstanding Debt Securities of
such series, delivered to the Trustee and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 6.8 with respect to
the Debt Securities of any series after written request therefor by the Company
or by any holder who has been a bona fide holder of a Debt Security of such
series for at least six months, or
(2) the Trustee shall cease to be eligible under Section 6.9 with
respect to the Debt Securities of any series 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 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, (i) the Company, by a Board Resolution, may remove the
Trustee with respect to all Debt Securities, or (ii) subject to Section 5.14,
any holder who has been a bona fide holder of a Debt Security of any series for
at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee for the Debt Securities of such series.
(e) If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any cause, with respect
to the Debt Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Debt Securities of that or those series (it being understood that any
such successor Trustee may be appointed with respect to the Debt Securities of
one or more or all of such series and that at any time there shall be only one
Trustee with respect to the Debt Securities of any particular series) and shall
comply with the applicable requirements of Section 6.11. If, within one year
after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the Debt Securities of any series
shall be appointed by Act of the holders of at least a majority in principal
amount of the Outstanding Debt Securities of such series delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment, become the successor Trustee
with respect to the Debt Securities of such series and, to that extent,
supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Debt Securities of any series shall have been so
appointed by the Company or the holders of such series and accepted appointment
in the manner hereinafter provided, any holder who has been a bona fide holder
of a Debt Security of such series for at least six months may, subject to
Section 5.14, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Debt Securities of such series.
34
(f) The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Debt Securities of any series and each
appointment of a successor Trustee with respect to the Debt Securities of any
series in the manner and to the extent provided in Section 18.2 to the holders
of Debt Securities of such series. Each notice shall include the name of the
successor Trustee with respect to the Debt Securities of such series and the
address of its Corporate Trust Office.
Section 6.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.
----------------------------------------------------
(a) In the case of an appointment hereunder of a successor Trustee with
respect to all Debt Securities, each such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee, but, on request of
the Company or the successor Trustee, such retiring Trustee shall, upon payment
of its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee, and shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder, subject nevertheless to its
claim, if any, provided for in Section 6.7.
(b) In case of the appointment hereunder of a successor Trustee with
respect to the Debt Securities of one or more (but not all) series, the Company,
the retiring Trustee and each successor Trustee with respect to the Debt
Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment
and which (1) shall contain such provisions as shall be necessary or desirable
to transfer and confirm to, and to vest in, each successor Trustee all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Debt 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 Debt Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Debt Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be
vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in any 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 other trust or trusts hereunder administered by any other such Trustee; and,
upon the execution and delivery of any such supplemental indenture, the
resignation or removal of the retiring Trustee shall become effective to the
extent provided therein and each such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Debt Securities of that
or those series to which the appointment of such successor Trustee relates, but,
on request of the Company or any successor Trustee, such retiring Trustee shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder with respect to the Debt
Securities of that or those series to which the appointment of such successor
Trustee relates.
(c) Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in
paragraph (a) or (b) of this Section, as the case may be.
(d) No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article.
35
Section 6.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
-------------------------------------------------------------------------
Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be otherwise qualified and eligible under
this Article, without the execution or filing of any paper or any further act on
the part of any of the parties hereto. In case any Debt Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Debt Securities so authenticated
with the same effect as if such successor Trustee had itself authenticated such
Debt Securities. In case any Debt Securities shall not have been authenticated
by such predecessor Trustee, any such successor Trustee may authenticate and
deliver such Debt Securities, in either its own name or that of its predecessor
Trustee, with the full force and effect which this Indenture provides for the
certificate of authentication of the Trustee.
Section 6.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.
--------------------------------------------------------------
If and when the Trustee shall be or become a creditor of the Company (or
any Guarantor or other obligor upon the Debt Securities), the Trustee shall be
subject to the provisions of Section 311 of the Trust Indenture Act regarding
the collection of such claims against the Company (or any such Guarantor or
other obligor). A Trustee that has resigned or been removed shall be subject to
and comply with said Section 311 to the extent required thereby.
36
Section 6.14 APPOINTMENT OF AUTHENTICATING AGENT.
-------------------------------------------------
As long as any Debt Securities of a series remain Outstanding, upon a
Company Request, there shall be an authenticating agent (the "Authenticating
Agent") appointed, for such period as the Company shall elect, by the Trustee
for such series of Debt Securities to act as its agent on its behalf and subject
to its direction in connection with the authentication and delivery of each
series of Debt Securities for which it is serving as Trustee. Debt Securities
of each such series authenticated by such Authenticating Agent shall be entitled
to the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by such Trustee. Wherever reference is made in
this Indenture to the authentication and delivery of Debt Securities of any
series by the Trustee for such series or to the Trustee's certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee for such series by an Authenticating Agent for
such series and a certificate of authentication executed on behalf of such
Trustee by such Authenticating Agent, except that only the Trustee may
authenticate Debt Securities upon original issuance and pursuant to Section 3.6
hereof. Such Authenticating Agent shall at all times be a corporation organized
and doing business under the laws of the United States of America or of any
State, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $100,000,000 and subject to supervision
or examination by Federal or State authority. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for purposes of
this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.
Any corporation into which any Authenticating Agent may be merged or
converted, or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency business
of any Authenticating Agent, shall continue to be the Authenticating Agent with
respect to all series of Debt Securities for which it served as Authenticating
Agent without the execution or filing of any paper or any further act on the
part of the Trustee for such series or such Authenticating Agent. Any
Authenticating Agent may at any time, and if it shall cease to be eligible
shall, resign by giving written notice of resignation to the applicable Trustee
and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.14 with
37
respect to one or more or all series of Debt Securities, the Trustee for such
series shall, upon Company Request, appoint a successor Authenticating Agent,
and the Company shall provide notice of such appointment to all holders of Debt
Securities of such series in the manner and to the extent provided in Section
18.2. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if originally
named as Authenticating Agent herein. The Trustee for the Debt Securities of
such series agrees to pay to the Authenticating Agent for such series from time
to time reasonable compensation for its services, and the Trustee shall be
entitled to be reimbursed for such payment, subject to the provisions of Section
6.7. The Authenticating Agent for the Debt Securities of any series shall have
no responsibility or liability for any action taken by it as such at the
direction of the Trustee for such series, except arising out of its negligence
or willful misconduct.
If an appointment with respect to one or more series is made pursuant to
this Section, the Debt Securities of such series may have endorsed thereon, in
addition to the Trustee's certificate of authentication, an alternative
certificate of authentication in the following form:
This is one of the series of Debt Securities issued under the within
mentioned Indenture.
[NAME OF TRUSTEE] As Trustee
By: ____________________
As Authenticating Agent
By: ____________________
Authorized Signatory
ARTICLE 7
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 7.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS.
-----------------------------------------------------------------------
The Company will furnish or cause to be furnished to the Trustee with
respect to Debt Securities of each series for which it acts as Trustee:
(a) semi-annually on a date not more than 15 days after each Regular Record
Date with respect to an Interest Payment Date, if any, for the Debt Securities
of such series (or on semi-annual dates in each year to be determined pursuant
to Section 3.1 if the Debt Securities of such series do not bear interest), a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the registered holders as of the date 15 days next preceding each
such Regular Record Date (or such semi-annual dates, as the case may be); and
(b) at such other times as the Trustee may request in writing, within 30
days after the receipt by the Company of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished;
Provided, however, that if and so long as the Trustee shall be the Security
Registrar for such series, no such list need be furnished.
38
Section 7.2 PRESERVATION OF INFORMATION; COMMUNICATION TO HOLDERS.
-------------------------------------------------------------------
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of holders contained
in the most recent list furnished to the Trustee as provided in Section 7.1
received by it in the capacity of Paying Agent (if so acting) hereunder, and
filed with it within the two preceding years pursuant to Section 7.3(c)(2).
The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished, destroy any information
received by it as Paying Agent (if so acting) hereunder upon delivering to
itself as Trustee, not earlier than 45 days after an Interest Payment Date, a
list containing the names and addresses of the holders obtained from such
information since the delivery of the next previous list, if any, destroy any
list delivered to itself as Trustee which was compiled from information received
by it as Paying Agent (if so acting) hereunder upon the receipt of a new list so
delivered, and destroy, not earlier than two years after filing, any information
filed with it pursuant to Section 7.3(c)(2).
(b) If three or more holders (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 Debt Security 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 Debt Securities of a
particular series (in which case the applicants must hold Debt Securities of
such series) or with all holders of Debt Securities with respect to their rights
under this Indenture or under the Debt Securities and is accompanied by a copy
of the form of proxy or other communication which such applicants propose to
transmit, then the Trustee shall, within five Business Days after the receipt of
such application, at its election, either
(i) afford such applicants access to the information preserved at the
time by the Trustee in accordance with Section 7.2(a), or
(ii) inform such applicants as to the approximate number of holders of
Debt Securities of such series or of all Debt Securities, as the case may be,
whose names and addresses appear in the information preserved at the time by the
Trustee in accordance with Section 7.2(a), and as to the approximate cost of
mailing to such holders the form of proxy or other communication, specified in
such application.
If the Trustee shall elect not to afford such applicants access to
such information, the Trustee shall, upon written request of such applicants,
mail to the holders of Debt Securities of such series or all holders, as the
case may be, whose names and addresses appear in the information preserved at
the time by the Trustee in accordance with Section 7.2(a), 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 Business Days after such tender, the Trustee shall mail to
such applicants and file with the 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 Debt Securities of such series or all holders, as the case may be, or would
be in violation of applicable law. Such written statement shall specify the
basis of such opinion. If the 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, the 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.
39
(c) Every holder of Debt Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
shall be held accountable by reason of the disclosure of any such information as
to the names and addresses of the holders in accordance with Section 7.2(b),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing of any material
pursuant to a request made under Section 7.2(b).
Section 7.3 REPORTS BY TRUSTEE.
--------------------------------
(a) Within 60 days after [DATE] of each year, commencing with the first
[DATE] after the first issuance of Debt Securities pursuant to this Indenture,
the Trustee shall, to the extent required by the Trust Indenture Act, transmit
to all holders of Debt Securities of any series with respect to which it acts as
Trustee, in the manner hereinafter provided in this Section 7.3, a brief report
dated such date with respect to any of the following events which may have
occurred within the previous 12 months (but if no such event has occurred within
such period, no report need be transmitted):
(1) any change to its eligibility under Section 6.9 and its
qualifications under Section 6.8;
(2) the creation of or any material change to a relationship specified
in paragraph (1) through (10) of Section 310(b) of the Trust Indenture Act;
(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 Debt Securities of such series, on any property or funds held or
collected by it as Trustee, except that the Trustee shall not be required (but
may elect) to report such advances if such advances so remaining unpaid
aggregate not more than 1/2 of 1% of the principal amount of the Outstanding
Debt Securities of such series on the date of such report;
(4) any change to the amount, interest rate and maturity date of all
other indebtedness owing by the Company (or any other obligor on the Debt
Securities of such series) 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 Section 311(b) of the Trust Indenture Act;
(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 Debt Securities which the Trustee has not
previously reported; and
(7) any action taken by the Trustee in the performance of its duties
hereunder which it has not previously reported and which, in its opinion,
materially affects the Debt Securities of such series, except action in respect
of a default, notice of which has been or is to be withheld by the Trustee in
accordance with Section 6.2.
(b) The Trustee shall transmit by mail to all holders of Debt Securities of
any series (whose names and addresses appear in the information preserved at the
time by the Trustee in accordance with Section 7.2 (a)) for which it acts as the
Trustee, 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
40
subsection (a) of this Section (or if no such report has yet been so
transmitted, since the date of execution of this instrument) for the
reimbursement of which it claims or may claim a lien or charge, prior to that of
the Debt Securities of such series, 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 for each series 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 the Debt Securities of such
series Outstanding at such time, such report to be transmitted within 90 days
after such time.
(c) Gaming License Requirements. To the extent required by Gaming Laws,
---------------------------
the Trustee will provide any applicable Gaming Authority with:
(1) copies of all notices, reports and other written communications
which the Trustee gives to holders of Debt Securities;
(2) a list of holders of Debt Securities promptly after the original
issuance of the Debt Securities, eight months and two months prior to the
expiration date of each then-current Gaming License held by the Company or its
subsidiaries, and upon demand;
(3) notice of any Event of Default under this Indenture or of any
Default, any acceleration of the indebtedness evidenced or secured hereby, the
institution of any legal actions or proceedings before any court or governmental
authority in respect of this Indenture and any rescission, annulment or waiver
in respect of an Event of Default;
(4) notice of the removal or resignation of the Trustee within five
Business Days thereof;
(5) notice of any transfer or assignment of rights under this
Indenture (but no transfers or assignments of the Debt Securities) within five
Business Days thereof; and
(6) a copy of any amendment to the Debt Securities or this Indenture
within five Business Days of the effectiveness thereof.
The notice specified in clause (3) above shall be in writing and, except as set
forth below, shall be given within five Business Days after the trustee has
transmitted the notice required by Section 6.2. In the case of any notice in
respect of any Event of Default, such notice shall be accompanied by a copy of
any notice from the holders of the Debt Securities, or a representative thereof
or the Trustee, to the Company and, if accompanied by any such notice to the
Company, shall be given simultaneously with the giving of any such notice to the
Company. In the case of any legal actions or proceedings, such notice shall be
accompanied by a copy of the complaint or other initial pleading or document.
The Trustee shall in accordance with the limitations set forth herein
cooperate with any applicable Gaming Authority in order to provide such Gaming
Authority with information and documentation relevant to compliance with clause
(3) above and as otherwise required by any applicable Gaming Law.
The Company will advise the Trustee of the expiration date of any then-
current Gaming License held by the Company or its subsidiaries at least nine
months prior to the expiration thereof and the Trustee until so advised may
assume that such Gaming License has not expired.
41
(d) Reports pursuant to this Section 7.3 shall be transmitted by mail:
(1) to all holders of Debt Securities, as the names and addresses of
such holders of Debt Securities appear in the Security Register; and
(2) except in the cases of reports pursuant to subsection (b) of this
Section 7.3, to each holder of a Debt Security of any series whose name and
address appear in the information preserved at the time by the Trustee in
accordance with Section 7.2(a).
(e) A copy of each such report shall, at the time of such transmission to
holders, be filed by the Trustee with each stock exchange upon which any Debt
Securities of such series are listed, with the Commission and also with the
Company. The Company will notify the Trustee when any series of Debt Securities
are listed on any stock exchange.
Section 7.4 REPORTS BY COMPANY.
--------------------------------
Unless otherwise specified with respect to a particular series of Debt
Securities pursuant to Section 3.1, the Company will file with the Trustee,
within 15 days after the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports which the Company may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934,
as amended.
ARTICLE 8
CONCERNING THE HOLDERS
Section 8.1 ACTS OF HOLDERS.
-----------------------------
Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by holders of Debt
Securities may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such holders in person or by an agent or
proxy duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee, and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the holders
signing such instrument or instruments. Whenever in this Indenture it is
provided that the holders of a specified percentage in aggregate principal
amount of the Outstanding Debt Securities of any series may take any Act, the
fact that the holders of such specified percentage have joined therein may be
evidenced (a) by the instrument or instruments executed by holders in person or
by agent or proxy appointed in writing, or (b) by the record of holders voting
in favor thereof at any meeting of such holders duly called and held in
accordance with the provisions of Article 9, or (c) by a combination of such
instrument or instruments and any such record of such a meeting of holders.
Section 8.2 PROOF OF OWNERSHIP; PROOF OF EXECUTION OF INSTRUMENTS BY HOLDER.
-----------------------------------------------------------------------------
The ownership of Debt Securities of any series shall be proved by the
Security Register for such series or by a certificate of the Security Registrar
for such series.
42
Subject to the provisions of Sections 6.1, 6.3 and 9.5, proof of the
execution of a writing appointing an agent or proxy and of the execution of any
instrument by a holder or his agent or proxy shall be sufficient and conclusive
in favor of the Trustee and the Company if made in the following manner:
The fact and date of the execution by any such person of any instrument may
be proved by the certificate of any notary public or other officer authorized to
take acknowledgements of deeds, that the Person executing such instrument
acknowledged to him the execution thereof, or by an affidavit of a witness to
such execution sworn to before any such notary or other such officer. Where
such execution is by an officer of a corporation or association or a member of a
partnership on behalf of such corporation, association or partnership, as the
case may be, or by any other Person acting in a representative capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority.
The record of any holders' meeting shall be proved in the manner provided
in Section 9.6.
The Trustee may in any instance require further proof with respect to any
of the matters referred to in this Section so long as the request is a
reasonable one.
Section 8.3 PERSONS DEEMED OWNERS.
-----------------------------------
The Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name any Debt Security is registered as the owner of
such Debt Security for the purpose of receiving payment of the principal of (and
premium, if any) and (subject to Section 3.7) interest, if any, on such Debt
Security and for all other purposes whatsoever, whether or not such Debt
Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary. All
payments made to any holder, or upon his order, shall be valid, and, to the
extent of the sum or sums paid, effectual to satisfy and discharge the liability
for moneys payable upon such Debt Security.
Section 8.4 REVOCATION OF CONSENTS; FUTURE HOLDERS BOUND.
----------------------------------------------------------
At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 8.1, of the taking of any Act by the holders of the
percentage in aggregate principal amount of the Outstanding Debt Securities
specified in this Indenture in connection with such Act, any holder of a Debt
Security the number, letter or other distinguishing symbol of which is shown by
the evidence to be included in the Debt Securities the holders of which have
consented to such Act may, by filing written notice with the Trustee at the
Corporate Trust Office and upon proof of ownership as provided in Section 8.2,
revoke such Act so far as it concerns such Debt Security. Except as aforesaid,
any such Act taken by the holder of any Debt Security shall be conclusive and
binding upon such holder and, subject to the provisions of Section 5.8, upon all
future holders of such Debt Security and of any Debt Securities issued on
transfer or in lieu thereof or in exchange or substitution therefor,
irrespective of whether or not any notation in regard thereto is made upon such
Debt Security or such other Debt Securities.
ARTICLE 9
HOLDERS' MEETINGS
Section 9.1 PURPOSES OF MEETINGS.
----------------------------------
43
A meeting of holders of any or all series may be called at any time and
from time to time pursuant to the provisions of this Article 9 for any of the
following purposes:
(a) to give any notice to the Company or to the Trustee for such series, or
to give any directions to the Trustee for such series, 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 5;
(b) to remove the Trustee for such series and appoint a successor Trustee
pursuant to the provisions of Article 6;
(c) to consent to the execution of an indenture or indentures supplemental
hereto pursuant to the provisions of Section 11.2; or
(d) to take any other action authorized to be taken by or on behalf of the
holders of any specified aggregate principal amount of the Outstanding Debt
Securities of any one or more or all series, as the case may be, under any other
provision of this Indenture or under applicable law.
Section 9.2 CALL OF MEETINGS BY TRUSTEE.
-----------------------------------------
The Trustee for any series may at any time call a meeting of holders of
such series to take any action specified in Section 9.1, to be held at such time
or times and at such place or places as the Trustee for such series shall
determine. Notice of every meeting of the holders of any series, setting forth
the time and the place of such meeting and in general terms the action proposed
to be taken at such meeting, shall be given to holders of such series in the
manner and to the extent provided in Section 18.2. Such notice shall be given
not less than 10 days nor more than 90 days prior to the date fixed for the
meeting.
Section 9.3 CALL OF MEETINGS BY COMPANY OR HOLDERS.
----------------------------------------------------
In case at any time the Company, pursuant to a Board Resolution, or the
holders of at least 10% in aggregate principal amount of the Outstanding Debt
Securities of a series or of all series, as the case may be, shall have
requested the Trustee for such series to call a meeting of holders of any or all
such series by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have given the
notice of such meeting within 10 days after the receipt of such request, then
the Company or such holders may determine the time or times and the place or
places for such meetings and may call such meetings to take any action
authorized in Section 9.1, by giving notice thereof as provided in Section 9.2.
Section 9.4 QUALIFICATIONS FOR VOTING.
---------------------------------------
To be entitled to vote at any meeting of holders, a Person shall be (a) a
holder of a Debt Security of the series with respect to which such meeting is
being held or (b) a Person appointed by an instrument in writing as agent or
proxy by such holder. The only Persons who shall be entitled to be present or
to speak at any meeting of holders shall be the Persons entitled to vote at such
meeting and their counsel, any representatives of the Trustee for the series
with respect to which such meeting is being held and its counsel and any
representatives of the Company and its counsel.
Section 9.5 REGULATIONS.
-------------------------
Notwithstanding any other provisions of this Indenture, the Trustee for any
series may make such reasonable regulations as it may deem advisable for any
meeting of holders of such series, in regard to proof
44
of the holding of Debt Securities of such series and of the appointment of
proxies, and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate.
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 such series as provided in Section 9.3, 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 at least a majority vote of the
meeting.
Subject to the provisos in the definition of "Outstanding," at any meeting
each holder of a Debt Security of the series with respect to which such meeting
is being held or proxy therefor shall be entitled to one vote for each $1,000
principal amount (or such other amount as shall be specified as contemplated by
Section 3.1) of Debt Securities of such series held or represented by such
holder; provided, however, that no vote shall be cast or counted at any meeting
in respect of any Debt 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 by virtue of Outstanding Debt Securities
of such series held by him or her or instruments in writing duly designating him
or her as the person to vote on behalf of holders of Debt Securities of such
series. Any meeting of holders with respect to which a meeting was duly called
pursuant to the provisions of Section 9.2 or 9.3 may be adjourned from time to
time by at least a majority of such holders present and the meeting may be held
as so adjourned without further notice.
Section 9.6 VOTING.
--------------------
The vote upon any resolution submitted to any meeting of holders of a
series of Debt Securities with respect to which such meeting is being held shall
be by written ballots on which shall be subscribed the signatures of such
holders or of their representatives by proxy and the serial number or numbers of
the Debt 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 taken 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
transmitted as provided in Section 9.2. The record shall show the serial
numbers of the Debt 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 9.7 NO DELAY OF RIGHTS BY MEETING.
-------------------------------------------
Nothing contained in this Article 9 shall be deemed or construed to
authorize or permit, by reason of any call of a meeting of holders 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 any holder under any of the provisions of this Indenture or of the
Debt Securities of any series.
45
ARTICLE 10
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
Section 10.1 COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.
------------------------------------------------------------------
The Company shall not consolidate with, merge with or into, or sell,
assign, convey, transfer or lease its properties and assets substantially in
their entirety (computed on a consolidated basis) to any Person, unless:
(a) either (A) the Company is the surviving entity or (B) the
successor or transferee (the "successor corporation") is a corporation organized
and existing under the laws of the United States, any State thereof or the
District of Columbia and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, all of the obligations of the
Company under the Debt Securities and this Indenture;
(b) immediately after giving effect to such transaction, no Event of
Default or Default shall exist; and
(c) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel each stating that such consolidation, merger,
conveyance, transfer or lease and such supplemental indenture comply with this
provision and that all conditions precedent herein provided for relating to such
transaction have been complied with.
Section 10.2 SUCCESSOR CORPORATION SUBSTITUTED.
-----------------------------------------------
Upon any consolidation with or merger into any other corporation, or
any conveyance, transfer or lease of the properties and assets of the Company
substantially in their entirety in accordance with Section 10.1, the successor
corporation formed by such consolidation or into which the Company is merged or
to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor corporation had been
named as the Company herein.
ARTICLE 11
SUPPLEMENTAL INDENTURES
Section 11.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.
----------------------------------------------------------------
Without the consent of any holders, the relevant Obligors, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
reasonably satisfactory to the Trustee, for any of the following purposes:
(a) to evidence the succession of another corporation to the rights of
any Obligor and the assumption by such successor of the covenants and
obligations of any Obligor contained herein and in the Debt Securities; or
(b) to add to the covenants, agreements or obligations of any Obligor
for the benefit of the holders of all or any series of Debt Securities (and if
such covenants are to be for the benefit of less than all series, stating that
such
46
covenants are expressly being included solely for the benefit of such series),
or to surrender any right or power herein conferred upon the Company; or
(c) to add any additional Events of Default (and if such Events of
Default are to be applicable to less than all series, stating that such Events
of Default are expressly being included solely to be applicable to such series);
or
(d) to add to, change or eliminate any of the provisions of this
Indenture, provided that any such addition, change or elimination shall become
effective only when there is no Outstanding Debt Security of any series created
prior to the execution of such supplemental indenture which is entitled to the
benefit of such provision and as to which such supplemental indenture would
apply; or
(e) to secure the Debt Securities of any series or to provide that any
of the Company's obligations under any series of the Debt Securities or this
Indenture shall be guaranteed and the terms and conditions for the release or
substitution of such security or guarantee; or
(f) to supplement any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Debt Securities pursuant to Article 4 or 14, provided
that any such action shall not adversely affect the interests of the holders of
Debt Securities of such series or any other series of Debt Securities in any
material respect; or
(g) to establish the form or terms of Debt Securities, of any series
as permitted by Sections 2.1 and 3.1; or
(h) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to one or more series of Debt
Securities, 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; or
(i) to comply with the requirements of the Commission in connection
with the qualification of this Indenture under the Trust Indenture Act;
(j) to cure any ambiguity, to correct or supplement any provision
herein which may be defective or inconsistent with any other provision herein or
to make any other provisions with respect to matters or questions arising under
this Indenture which shall not be inconsistent with any provision of this
Indenture; provided such other provisions shall not adversely affect the
interests of the holders of Outstanding Debt Securities of any series created
prior to the execution of such supplemental indenture in any material respect.
The terms of any document entered into pursuant to this Section shall
be subject to prior approval, if required, of any applicable Gaming Authority.
Section 11.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.
-------------------------------------------------------------
With the written consent of the holders of not less than at least a
majority in principal amount of the Outstanding Debt Securities of each series
affected by such supplemental indenture, by Act of said holders delivered to the
Company and the Trustee, the relevant Obligors when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the holders under this Indenture of such
Debt Securities; provided,
47
however, that no such supplemental indenture shall, without the consent of the
holder of each Outstanding Debt Security of each such series affected thereby,
(a) change the Stated Maturity of the principal of, or any installment
of principal of or interest on, any Debt Security, or reduce the principal
amount thereof or the rate (or extend the time for payment) of interest thereon
or any premium payable upon redemption thereof, or reduce the amount of the
principal of a Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.2, or
impair the right to institute suit for the enforcement of any payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after
the Redemption Date), or alter any redemption provisions in a manner adverse to
the holders of such series of Debt Securities or adversely affect the right to
convert any Debt Security into shares of Common Stock or other securities or
property of the Company as may be provided pursuant to Section 3.1; or
(b) reduce the percentage in principal amount of the Outstanding Debt
Securities of any series, the consent of whose holders is required for any
supplemental indenture, or the consent of whose holders is required for any
waiver of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences provided for in this Indenture; or
(c) modify any of the provisions of this Section, Section 5.13, or
Section 12.6, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the holder of each Outstanding Debt Security of each series affected
thereby; provided, however, that this clause shall not be deemed to require the
consent of any holder with respect to changes in the references to "the Trustee"
and concomitant changes in this Section, or the deletion of this proviso, in
accordance with the requirements of Sections 6.11 and 11.1(9).
It shall not be necessary for any Act of holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.
A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture with respect to one or more particular series
of Debt Securities, or which modifies the rights of the holders of Debt
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
Debt Securities of any other series.
The terms of any document entered into pursuant to this Section shall
be subject to prior approval, if required, of any applicable Gaming Authority.
Section 11.3 EXECUTION OF SUPPLEMENTAL INDENTURES.
--------------------------------------------------
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 6.1) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which adversely affects
the Trustee's own rights, duties or immunities under this Indenture or otherwise
in a material way.
Section 11.4 EFFECT OF SUPPLEMENTAL INDENTURES.
-----------------------------------------------
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes;
48
and every holder of Debt Securities theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby.
Section 11.5 CONFORMITY WITH TRUST INDENTURE ACT.
-------------------------------------------------
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
Section 11.6 REFERENCE IN DEBT SECURITIES TO SUPPLEMENTAL INDENTURES.
---------------------------------------------------------------------
Debt Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall,
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Debt Securities of any series so modified as to conform, in
the opinion of the Trustee and the Board of Directors, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Debt Securities of such
series.
ARTICLE 12
COVENANTS
Section 12.1 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.
--------------------------------------------------------
The Company covenants and agrees for the benefit of each series of
Debt Securities, that it will duly and punctually pay the principal of (and
premium, if any) and interest on the Debt Securities in accordance with the
terms of the Debt Securities and this Indenture. If so provided in the terms of
any series of Debt Securities established as provided in Section 3.1, the
interest, if any, due in respect of any temporary Global Note or permanent
Global Note, together with any additional amounts payable in respect thereof, as
provided in the terms and conditions of such Debt Security, shall be payable
only upon presentation of such Debt Security to the Trustee for notation thereon
of the payment of such interest.
Section 12.2 OFFICER'S CERTIFICATE AS TO COMPLIANCE.
----------------------------------------------------
Unless otherwise specifically provided for with respect to any series
of Debt Securities under Section 3.1, the Company will deliver to the Trustee,
within 120 days after the end of each fiscal year, a certificate of the
principal executive officer, principal financial officer or principal accounting
officer of the Company stating whether or not, to the knowledge of the signer
thereof, the Obligors are in compliance with all covenants and conditions under
this Indenture, and, in the event of any noncompliance, specifying such
noncompliance and the nature and status thereof of which such signer may have
knowledge. For purposes of this Section, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under
this Indenture.
Section 12.3 MAINTENANCE OF OFFICE OR AGENCY.
---------------------------------------------
The Company will maintain in each Place of Payment for such series an
office or agency where Debt Securities of that series may be presented or
surrendered for payment, where Debt Securities of that series may be surrendered
for registration of transfer or exchange, where Debt Securities of that series
that are convertible may be surrendered for conversion, if applicable, and where
notices and demands to or upon the Company in respect of the Debt Securities of
that series and this Indenture may be served. If the Debt
49
Securities of any series are listed on The Stock Exchange of the United Kingdom
and the Republic of Ireland, the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so
require, the Company will maintain a Paying Agent for the Debt Securities of
that series in London, Luxembourg or any other required city located outside the
United States, as the case may be, so long as the Debt Securities of that series
are listed on such exchange, and subject to any laws or regulations applicable
thereto, in a Place of Payment for that series located outside the United States
an office or agency where any Debt Securities of that series may be surrendered
for registration of transfer, where Debt Securities of that series may be
surrendered for exchange or redemption and where notices and demands to or upon
the Company in respect of the Debt Securities of that series and this Indenture
may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee and the Company hereby appoints the Trustee as its agent
to receive all presentations, surrenders, notices and demands.
The Company may also from time to time designate different or
additional offices or agencies to be maintained for such purposes (in or outside
of such Place of Payment), and may from time to time rescind any such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligations described in the preceding
paragraph. The Company will give prompt written notice to the Trustee of any
such additional designation or rescission of designation and any change in the
location of any such different or additional office or agency.
Section 12.4 MONEY FOR DEBT SECURITIES; PAYMENTS TO BE HELD IN TRUST.
---------------------------------------------------------------------
If the Company shall at any time act as its own Paying Agent with
respect to any series of Debt Securities, it will, on or before each due date of
the principal of (and premium, if any) or interest on any of the Debt Securities
of such series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided, and will promptly notify the Trustee
of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents with respect
to any series of Debt Securities, it will, by or on each due date of the
principal (and premium, if any) or interest on any Debt Securities of such
series, deposit with any such Paying Agent a sum sufficient to pay the principal
(and premium, if any) or interest so becoming due, such sum to be held in trust
for the benefit of the Persons entitled thereto, and (unless any such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action
or failure so to act.
The Company will cause each Paying Agent with respect to any series of
Debt Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will:
(a) hold all sums held by it for the payment of the principal of (and
premium, if any) or interest on Debt Securities of such series in trust for the
benefit of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided;
(b) give the Trustee notice of any default by the Company (or any
other obligor upon the Debt Securities of such series) in the making of any
payment of principal (and premium, if any) or interest on the Debt Securities of
such series; and
50
(c) at any time during the continuance of any such default, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of (and premium, if
any) or interest on any Debt Security of any series and remaining unclaimed for
two years after such principal (and premium, if any) or interest has become due
and payable shall be paid to the Company upon Company Request, or (if then held
by the Company) shall be discharged from such trust; and the holder of such Debt
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be transmitted in the manner and to the extent
provided by Section 18.2, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such notification, any unclaimed balance of such money then remaining
will be repaid to the Company.
Section 12.5 CORPORATE EXISTENCE.
---------------------------------
Subject to Article 10, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate existence of each of its Subsidiaries; provided,
however, that the Company shall not be required to preserve the corporate
existence of any Subsidiary if the Company shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company.
Section 12.6 WAIVER OF CERTAIN COVENANTS.
-----------------------------------------
Any Obligor may omit in any particular instance to comply with any
term, provision or condition set forth in Sections 12.1 and 12.3 through 12.5
(and, if so specified pursuant to Section 3.1, any other covenant not set forth
herein and specified pursuant to Section 3.1 to be applicable to the Debt
Securities of any series, except as otherwise provided pursuant to Section 3.1)
with respect to the Debt Securities of any series if before the time for such
compliance the holders of at least at least a majority in principal amount of
the Outstanding Debt Securities of such series shall, by Act of such holders,
either waive such compliance in such instance or generally waive compliance with
such term, provision or condition, but no such waiver shall extend to or affect
such term, provision or condition except to the extent expressly so waived, and,
until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.
ARTICLE 13
REDEMPTION OF DEBT SECURITIES
51
Section 13.1 APPLICABILITY OF ARTICLE.
--------------------------------------
Debt Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified pursuant to Section 3.1 for Debt Securities of any series)
in accordance with this Article.
Section 13.2 ELECTION TO REDEEM; NOTICE TO TRUSTEE.
---------------------------------------------------
The election of the Company to redeem any Debt Securities shall be
evidenced by a Board Resolution. In case of any redemption at the election of
the Company of less than all of the Debt Securities of any series pursuant to
Section 13.3, the Company shall, at least 30 days before the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal amount
of Debt Securities of such series to be redeemed. In the case of any redemption
of Debt Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Debt Securities or elsewhere in this Indenture,
the Company shall furnish the Trustee with an Officers' Certificate evidencing
compliance with such restrictions.
Section 13.3 SELECTION BY TRUSTEE OF DEBT SECURITIES TO BE REDEEMED.
--------------------------------------------------------------------
If less than all the Debt Securities of any series are to be redeemed
at the election of the Company, the particular Debt Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Debt Securities of such series not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of portions
(equal to $1,000 denominations for Debt Securities of such series or any
integral multiple thereof) of the principal amount of Debt Securities of such
series in a denomination larger than $1,000 denominations. The portions of the
principal amount of Debt Securities so selected for partial redemption shall be
in denominations of $1,000 or any integral multiple thereof, except as otherwise
set forth in the applicable form of Debt Securities. In any case when more than
one Debt Security of such series is registered in the same name, the Trustee, in
its discretion, may treat the aggregate principal amount so registered as if it
were represented by one Debt Security of such series.
The Trustee shall promptly notify the Company and the Security
Registrar (if other than itself) in writing of the Debt Securities selected for
redemption and, in the case of any Debt Securities selected for partial
redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Debt Securities shall
relate, in the case of any Debt Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Debt security which has
been or is to be redeemed.
Section 13.4 NOTICE OF REDEMPTION.
----------------------------------
Notice of redemption shall be given by the Company, or at the
Company's request, by the Trustee in the name and at the expense of the Company,
not less than 30 days and not more than 60 days prior to the Redemption Date to
the holders of Debt Securities of any series to be redeemed in whole or in part
pursuant to this Article 13, in the manner provided in Section 18.2. Any notice
so given shall be conclusively presumed to have been duly given, whether or not
the holder receives such notice. Failure to give such
52
notice, or any defect in such notice to the holder of any Debt Security of a
series designated for redemption, in whole or in part, shall not affect the
sufficiency of any notice of redemption with respect to the holder of any other
Debt Security of such series.
All notices of redemption shall state:
(a) the Redemption Date,
(b) the Redemption Price,
(c) that Debt Securities of such series are being redeemed by the
Company pursuant to provisions contained in this Indenture or the terms of the
Debt Securities of such series or a supplemental indenture establishing such
series, if such be the case, together with a brief statement of the facts
permitting such redemption,
(d) if less than all Outstanding Debt Securities of any series are to
be redeemed, the identification (and, in the case of partial redemption, the
principal amounts) of the particular Debt Securities to be redeemed,
(e) that on the Redemption Date the Redemption Price will become due
and payable upon each such Debt Security to be redeemed, and that interest
thereon, if any, shall cease to accrue on and after said date,
(f) the Place or Places of Payment where such Debt Securities are to
be surrendered for payment of the Redemption Price, and
(g) that the redemption is for a sinking fund, if such is the case.
Section 13.5 DEPOSIT OF REDEMPTION PRICE.
-----------------------------------------
On or prior to the Redemption Date for any Debt Securities, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 12.4) an amount of money in the Currency or Currencies in
which such Debt Securities are denominated (except as provided pursuant to
Section 3.1) sufficient to pay the Redemption Price of such Debt Securities or
any portions thereof which are to be redeemed on that date.
Section 13.6 DEBT SECURITIES PAYABLE ON REDEMPTION DATE.
--------------------------------------------------------
Notice of redemption having been given as aforesaid, any Debt
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price (except as otherwise specified pursuant to
Section 3.1 or 3.4), and from and after such date (unless the Company shall
default in the payment of the Redemption Price) such Debt Securities shall cease
to bear interest. Upon surrender of any such Debt Security for redemption in
accordance with said notice, such Debt Security shall be paid by the Company at
the Redemption Price; provided, however, that, unless otherwise specified as
contemplated by Section 3.1, installments of interest on Debt Securities which
have a Stated Maturity on or prior to the Redemption Date for such Debt
Securities shall be payable according to the terms of such Debt Securities and
the provisions of Section 3.7.
53
If any Debt Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Debt Security.
Section 13.7 DEBT SECURITIES REDEEMED IN PART.
----------------------------------------------
Any Debt Security which is to be redeemed only in part shall be
surrendered at the Corporate Trust Office or such other office or agency of the
Company as is specified pursuant to Section 3.1 with, if the Company, the
Security Registrar or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company, the Security
Registrar and the Trustee duly executed by, the holder thereof or such holder's
attorney duly authorized in writing, and the Company shall execute, and the
Trustee shall authenticate and deliver to the holder of such Debt Security
without service charge, a new Debt Security or Debt Securities of the same
series, of like tenor and form, of any authorized denomination as requested by
such holder in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Debt Security so surrendered. In the
case of a Debt Security providing appropriate space for such notation, at the
option of the holder thereof, the Trustee, in lieu of delivering a new Debt
Security or Debt Securities as aforesaid, may make a notation on such Debt
Security of the payment of the redeemed portion thereof.
ARTICLE 14
SINKING FUNDS
Section 14.1 APPLICABILITY OF ARTICLE.
--------------------------------------
The provisions of this Article shall be applicable to any sinking fund
for the retirement of Debt Securities of a series except as otherwise specified
pursuant to Section 3.1 for Debt Securities of such series.
The minimum amount of any sinking fund payment provided for by the
terms of Debt 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 Debt Securities of any series is herein referred to as an
"optional sinking fund payment." If provided for by the terms of Debt Securities
of any series, the amount of any cash sinking fund payment may be subject to
reduction as provided in Section 14.2. Each sinking fund payment shall be
applied to the redemption of Debt Securities of any series as provided for by
the terms of Debt Securities of such series.
Section 14.2 SATISFACTION OF MANDATORY SINKING FUND PAYMENTS WITH DEBT
-----------------------------------------------------------------------
SECURITIES.
----------
In lieu of making all or any part of a mandatory sinking fund payment
with respect to any Debt Securities of a series in cash, the Company may at its
option, at any time no more than sixteen months and no less than 45 days prior
to the date on which such sinking fund payment is due, deliver to the Trustee
Debt Securities of such series theretofore purchased or otherwise acquired by
the Company, except Debt Securities of such series which have been redeemed
through the application of mandatory sinking fund payments pursuant to the terms
of the Debt Securities of such series, accompanied by a Company Order
instructing the Trustee to credit such obligations and stating that the Debt
Securities of such series were originally issued by the Company by way of bona
fide sale or other negotiation for value, provided that such Debt Securities
shall not have been previously so credited. Such Debt Securities shall be
received and credited for such purpose
54
by the Trustee at the Redemption Price specified in such Debt Securities for
redemption through operation of the sinking fund and the amount of such
mandatory sinking fund payment shall be reduced accordingly.
Section 14.3 REDEMPTION OF DEBT SECURITIES FOR SINKING FUND.
------------------------------------------------------------
Not less than 60 days prior to each sinking fund payment date for any
series of Debt Securities (unless a shorter period shall be satisfactory to the
Trustee), 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 (except as provided pursuant to Section 3.1) and
the portion thereof, if any, which is to be satisfied by delivering and
crediting Debt Securities of such series pursuant to Section 14.2 and whether
the Company intends to exercise its rights to make a permitted optional sinking
fund payment with respect to such series. Such certificate shall be irrevocable
and, upon its delivery, the Company shall be obligated to make the cash payment
or payments therein referred to, if any, on or before the next succeeding
sinking fund payment date. In the case of the failure of the Company to deliver
such certificate, the sinking fund payment due on the next succeeding sinking
fund payment date for such series shall be paid entirely in cash and shall be
sufficient to redeem the principal amount of the Debt Securities of such series
subject to a mandatory sinking fund payment without the right to deliver or
credit Debt Securities as provided in Section 14.2 and without the right to make
any optional sinking fund payment with respect to such series at such time.
Any sinking fund payment or payments (mandatory or optional) made in
cash plus any unused balance of any preceding sinking fund payments made with
respect to the Debt Securities of any particular series shall be applied by the
Trustee (or by the Company if the Company is acting as its own Paying Agent) on
the sinking fund payment date on which such payment is made (or, if such payment
is made before a sinking fund payment date, on the sinking fund payment date
immediately following the date of such payment) to the redemption of Debt
Securities of such series at the Redemption Price specified in such Debt
Securities with respect to the sinking fund. Any sinking fund moneys not so
applied or allocated by the Trustee (or by the Company if the Company is acting
as its own Paying Agent) to the redemption of Debt Securities shall be added to
the next sinking fund payment received by the Trustee (or if the Company is
acting as its own Paying Agent, segregated and held in trust as provided in
Section 12.4) for such series and, together with such payment (or such amount so
segregated) shall be applied in accordance with the provisions of this Section.
Any and all sinking fund moneys with respect to the Debt Securities of any
particular series held by the Trustee (or if the Company is acting as its own
Paying Agent, segregated and held in trust as provided in Section 12.4) on the
last sinking fund payment date with respect to Debt Securities of such series
and not held for the payment or redemption of particular Debt Securities of such
series shall be applied by the Trustee (or by the Company if the Company is
acting as its own Paying Agent), together with other moneys, if necessary, to be
deposited (or segregated) sufficient for the purpose, to the payment of the
principal of the Debt Securities of such series at Maturity.
The Trustee shall select or cause to be selected the Debt Securities
to be redeemed upon such sinking fund payment date in the manner specified in
Section 13.3 and the Company shall cause notice of the redemption thereof to be
given in the manner provided in Section 13.4. Such notice having been duly
given, the redemption of such Debt Securities shall be made upon the terms and
in the manner stated in Section 13.6.
On or before each sinking fund payment date, the Company shall pay to
the Trustee (or, if the Company is acting as its own Paying Agent, the Company
shall segregate and hold in trust as provided in Section 12.4) in cash a sum,
equal to the principal and any interest
55
accrued to the Redemption Date for Debt Securities or portions thereof to be
redeemed on such sinking fund payment date pursuant to this Section.
ARTICLE 15
DEFEASANCE
Section 15.1 APPLICABILITY OF ARTICLE.
--------------------------------------
Except as otherwise provided in Section 15.2 or as provided pursuant
to Section 3.1 with respect to a particular series of Debt Securities, the
Company may terminate its obligations under the Debt Securities of any series
and this Indenture with respect to Debt Securities of such series as set forth
in Section 15.2.
Section 15.2 DEFEASANCE UPON DEPOSIT OF MONEYS OR U.S. GOVERNMENT OBLIGATIONS.
------------------------------------------------------------------------------
At the Company's option, either (a) the Company shall be deemed to
have been Discharged (as defined below) from its obligations with respect to
Debt Securities of any series ("legal defeasance option") or (b) the Company
shall cease to be under any obligation to comply with any term, provision or
condition set forth in Sections 10.1, 12.2 and 12.4 with respect to Debt
Securities of any series (and, to the extent so specified pursuant to Section
3.1, any other obligation of the Company or restrictive covenant added for the
benefit of such series pursuant to Section 3.1) ("covenant defeasance option")
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 Debt
Securities of such series (i) money in an amount, or (ii) U.S. Government
Obligations (as defined below) which through the payment of interest and
principal in respect thereof in accordance with their terms will provide, 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
(i) and (ii)) of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge each installment of principal (including any mandatory sinking
fund payments) of and premium, if any, and interest on, the Outstanding Debt
Securities of such series on the dates such installments of interest or
principal and premium are due;
(b) Such deposit shall not cause the Trustee with respect to the Debt
Securities of that series to have a conflicting interest as defined in Section
6.8 and for purposes of the Trust Indenture Act with respect to the Debt
Securities of any series;
(c) Such deposit will not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or instrument
to which the Company is a party or by which it is bound;
(d) If the Debt Securities of such series are then listed on any
national securities exchange, the Company shall have delivered to the Trustee an
Opinion of Counsel or a letter or other document from such exchange to the
effect that the Company's exercise of its option under this Section would not
cause such Debt Securities to be delisted;
(e) No Event of Default or Default with respect to the Debt Securities
of such series shall have occurred and be continuing on the date of such deposit
and, with respect to the legal defeasance option only,
56
no Event of Default under Section 5.1(f) or Section 5.1(g) or event which with
the giving of notice or lapse of time, or both, would become an Event of Default
under Section 5.1(f) or Section 5.1(g) shall have occurred and be continuing on
the 91st day after such date (and such defeasance shall not become effective
until such 91st day); and
(f) The Company shall have delivered to the Trustee an Opinion of
Counsel or a ruling from the Internal Revenue Service to the effect that the
holders of the Debt Securities of such series will not recognize income, gain or
loss for United States Federal income tax purposes as a result of such deposit,
defeasance or Discharge. Notwithstanding the foregoing, if the Company
exercises its covenant defeasance option and an Event of Default under Section
5.1(f) or Section 5.1(g) or event which, with the giving of notice or lapse of
time, or both, would become an Event of Default under Section 5.1(f) or Section
5.1(g) shall have occurred and be continuing on the 91st day after the date of
such deposit, the obligations of the Company referred to under the definition of
covenant defeasance option with respect to such Debt Securities shall be
reinstated.
"Discharged" means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under, the
Debt Securities of such series and to have satisfied all the obligations under
this Indenture relating to the Debt 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 Debt Securities of such series to
receive, from the trust fund described in clause (1) above, payment of the
principal of (and premium, if any) and interest on such Debt Securities when
such payments are due, (B) the Company's obligations with respect to the Debt
Securities of such series under Sections 3.4(a), 3.5, 3.6, 12.3 and 15.3 and (C)
the rights, powers, trusts, duties and immunities of the Trustee hereunder.
"U.S. Government Obligations" means securities that are (i) direct
obligations of the United States 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 the payment of
which is unconditionally guaranteed as a full faith and credit obligation by the
United States, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt; provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of interest on or principal of the U.S. Government Obligation evidenced by such
depository receipt.
Section 15.3 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 15.2 in respect of Debt Securities of a series shall be held
in trust and applied by it, in accordance with the provisions of such Debt
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 Debt Securities, of all sums due
and to become due thereon for principal (and 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 15.4 REPAYMENT TO COMPANY.
----------------------------------
The Trustee and any Paying Agent shall promptly pay or return to the
Company upon Company Request any moneys or U.S. Government Obligations held by
them at any time that are not required for the
57
payment of the principal of (and premium, if any) and interest on the Debt
Securities of any series for which money or U.S. Government Obligations have
been deposited pursuant to Section 15.2.
The provisions of the last paragraph of Section 12.4 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 Debt
Securities for which money or U.S. Government Obligations have been deposited
pursuant to Section 15.2.
ARTICLE 16
CONVERSION
Section 16.1 APPLICABILITY; CONVERSION PRIVILEGE.
-------------------------------------------------
Except as otherwise specified pursuant to Section 3.1 for Debt
Securities of any series, the provisions of this Article 16 shall be applicable
to any Debt Securities that are convertible into Common Stock. If so provided
pursuant to Section 3.1 with respect to the Debt Securities of any series, the
holder of a Debt Security of such series shall have the right, at such holder's
option, to convert, in accordance with the terms of such series of Debt
Securities and this Article 16, all or any part (in a denomination of, unless
otherwise specified pursuant to Section 3.1 with respect to Debt Securities of
such series, $1,000 in principal amount or any integral multiple thereof) of
such Debt Security into shares of Common Stock or, as to any Debt Securities
called for redemption, at any time prior to the time and date fixed for such
redemption (unless the Company shall default in the payment of the Redemption
Price, in which case such right shall not terminate at such time and date).
Section 16.2 CONVERSION PROCEDURE; CONVERSION PRICE; FRACTIONAL SHARES.
-----------------------------------------------------------------------
(a) Each Debt Security to which this Article is applicable shall be
convertible at the office of the Conversion Agent, and at such other place or
places, if any, specified pursuant to Section 3.1 with respect to the Debt
Securities of such series, into fully paid and nonassessable shares (calculated
to the nearest 1/100th of a share) of Common Stock. The Debt Securities will be
converted into shares of Common Stock at the Conversion Price therefor. No
payment or adjustment shall be made in respect of dividends on the Common Stock
or accrued interest on a converted Debt Security except as described in Section
16.9. The Company may, but shall not be required, in connection with any
conversion of Debt Securities, to issue a fraction of a share of Common Stock
and, if the Company shall determine not to issue any such fraction, the Company
shall, subject to Section 16.3(d), make a cash payment (calculated to the
nearest cent) equal to such fraction multiplied by the Closing Price of the
Common Stock on the last Trading Day prior to the date of conversion.
(b) Before any holder of a Debt Security shall be entitled to convert
the same into Common Stock, such holder shall surrender such Debt Security duly
endorsed to the Company or in blank at the office of the Conversion Agent or at
such other place or places, if any, specified pursuant to Section 3.1, and shall
give written notice to the Company at said office or place that such holder
elects to convert the same and shall state in writing therein the principal
amount of Debt Securities to be converted and the name or names (with addresses)
in which such holder wishes the certificate or certificates for Common Stock to
be issued; provided, however, that no Debt Security or portion thereof shall be
accepted for conversion unless the principal amount of such Debt Security or
such portion, when added to the principal amount of all other Debt Securities or
portions thereof then being surrendered by the holder thereof for conversion,
exceeds the then-effective Conversion Price with respect thereto. If more than
one Debt Security shall be surrendered for conversion at one time by the same
holder, the number of full shares of Common Stock which shall be
58
deliverable upon conversion shall be computed on the basis of the aggregate
principal amount of the Debt Securities (or specified portions thereof to the
extent permitted thereby) so surrendered. Subject to the next succeeding
sentence, the Company will, as soon as practicable thereafter, issue and deliver
at said office or place to such holder of a Debt Security, or to such holder's
nominee or nominees, certificates for the number of full shares of Common Stock
to which such holder shall be entitled as aforesaid, together, subject to the
last sentence of paragraph (a) above, with cash in lieu of any fraction of a
share to which such holder would otherwise be entitled. The Company shall not
be required to deliver certificates for shares of Common Stock while the stock
transfer books for such stock or the Security Register are duly closed for any
purpose, but certificates for shares of Common Stock shall be issued and
delivered as soon as practicable after the opening of such books or Security
Register. A Debt Security shall be deemed to have been converted as of the
close of business on the date of the surrender of such Debt Security for
conversion as provided above, and the Person or Persons entitled to receive the
Common Stock issuable upon such conversion shall be treated for all purposes as
the record holder or holders of such Common Stock as of the close of business on
such date. In case any Debt Security shall be surrendered for partial
conversion, the Company shall execute and the Trustee shall authenticate and
deliver to or upon the written order of the holder of the Debt Securities so
surrendered, without charge to such holder (subject to the provisions of Section
16.8), a new Debt Security or Securities in authorized denominations in an
aggregate principal amount equal to the unconverted portion of the surrendered
Debt Security.
Section 16.3 ADJUSTMENT OF CONVERSION PRICE FOR COMMON STOCK.
-------------------------------------------------------------
The Conversion Price with respect to any Debt Security which is
convertible into Common Stock shall be adjusted from time to time as follows:
(a) In case the Company shall, at any time or from time to time while
any of such Debt Securities are outstanding, (i) pay a dividend in shares of its
Common Stock to holders of Common Stock, (ii) combine its outstanding shares of
Common Stock into a smaller number of shares of Common Stock, (iii) subdivide
its outstanding shares of Common Stock into a greater number of shares of Common
Stock or (iv) make a distribution in shares of Common Stock to holders of Common
Stock, then the Conversion Price in effect immediately before such action shall
be adjusted so that the holders of such Debt Securities, upon conversion thereof
into Common Stock immediately following such event, shall be entitled to receive
the kind and amount of shares of Common Stock of the Company which they would
have owned or been entitled to receive upon or by reason of such event if such
Debt Securities had been converted immediately before the record dated (or, if
no record date, the effective date) for such event. An adjustment made pursuant
to this Section 16.3(a) shall become effective retroactively immediately after
the record date in the case of a dividend or distribution and shall become
effective retroactively immediately after the effective date in the case of a
subdivision or combination. For the purposes of this Section 16.3(a), each
holder of Debt Securities shall be deemed to have failed to exercise any right
to elect the kind or amount of securities receivable upon the payment of any
such dividend, subdivision, combination or distribution (provided, that if the
kind or amount of securities receivable upon such dividend, subdivision,
combination or distribution is not the same for each nonelecting share, then the
kind and amount of securities or other property receivable upon such dividend,
subdivision, combination or distribution for each nonelecting share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
nonelecting shares).
(b) In case the Company shall, at any time or from time to time while
any of such Debt Securities are outstanding, issue rights or warrants to all
holders of shares of its Common Stock entitling them (for a period expiring
within 45 days after the record date for such issuance) to subscribe for or
purchase shares of Common Stock (or securities convertible into shares of Common
Stock) at a price per share less than the Current Market Price of the Common
Stock at such record date (treating the price per share of the securities
convertible into Common Stock as equal to (x) the sum of (i) the price for a
unit of the security convertible
59
into Common Stock and (ii) any additional consideration initially payable upon
the conversion of such security into Common Stock divided by (y) the number of
shares of Common Stock initially underlying such convertible security), the
Conversion Price with respect to such Debt Securities shall be adjusted so that
it shall equal the price determined by dividing the Conversion Price in effect
immediately prior to the date of issuance of such rights or warrants by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding on the date of issuance of such rights or warrants plus the number
of additional shares of Common Stock offered for subscription or purchase (or
into which the convertible securities so offered are initially convertible), and
the denominator of which shall be the number of shares of Common Stock
outstanding on the date of issuance of securities which the aggregate offering
price of the total number of shares of securities so offered for subscription or
purchase (or the aggregate purchase price of the convertible securities so
offered plus the aggregate amount of any additional consideration initially
payable upon conversion of such securities into Common Stock) would purchase at
such Current Market Price of the Common Stock. Such adjustment shall become
effective retroactively immediately after the record date for the determination
of stockholders entitled to receive such rights or warrants.
(c) In the case the Company shall, at any time or from time to time
while any of such Debt Securities are outstanding, distribute to all holders of
shares of its Common Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing
corporation and the Common Stock is not changed or exchanged) cash, evidences of
its indebtedness, securities or assets (excluding (i) regular periodic cash
dividends in amounts, if any, determined from time to time by the Board of
Directors, (ii) dividends payable in shares of Common Stock for which adjustment
is made under Section 16.3(a) or (iii) rights or warrants to subscribe for or
purchase securities of the Company (excluding those referred to in Section
16.3(b)), then in each such case the Conversion Price with respect to such Debt
Securities determined by dividing the Conversion Price in effect immediately
prior to the date of such distribution by a fraction, the numerator of which
shall be the Current Market Price of the Common Stock on the record date
referred to below, and the denominator of which shall be such Current Market
Price of the Common Stock less the then fair market value (as determined by the
Board of Directors of the Company, whose determination shall be conclusive) of
the portion of the cash or assets or evidences of indebtedness or securities so
distributed or of such subscription rights or warrants applicable to one share
of Common Stock (provided that such denominator shall never be less than 1.0);
provided, however, that no adjustment shall be made with respect to any
distribution of rights to purchase securities of the Company if a holder of Debt
Securities would otherwise be entitled to receive such rights upon conversion at
any time of such Debt Securities into Common Stock unless such rights are
subsequently redeemed by the Company, in which case such redemption shall be
treated for purposes of this Section as a dividend on the Common Stock. Such
adjustment shall become effective retroactively immediately after the record
date for the determination of stockholders entitled to receive such
distribution; and in the event that such distribution is not so made, the
Conversion Price shall again be adjusted to the Conversion Price which would
then be in effect if such record date had not been fixed.
(d) The Company shall be entitled to make such additional adjustments
in the Conversion Price, in addition to those required by subsections 16.3(a),
16.3(b), and 16.3(c), as shall be necessary in order that any dividend or
distribution of Common Stock, any subdivision, reclassification or combination
of shares of Common Stock or any issuance of rights or warrants referred to
above shall not be taxable to the holders of Common Stock for United States
Federal income tax purposes.
(e) In any case in which this Section 16.3 shall require that any
adjustment be made effective as of or retroactively immediately following a
record date, the Company may elect to defer (but only for five (5) Trading Days
following the filing of the statement referred to in Section 16.5) issuing to
the holder of any Debt Securities converted after such record date the shares of
Common Stock and other capital stock of the Company issuable upon such
conversion over and above the shares of Common Stock and other capital stock
60
of the Company issuable upon such conversion on the basis of the Conversion
Price prior to adjustment; provided, however, that the Company shall deliver to
such holder a due xxxx or other appropriate instrument evidencing such holder's
right to receive such additional shares upon the occurrence of the event
requiring such adjustment.
(f) All calculations under this Section 16.3 shall be made to the
nearest cent or one-hundredth of a share of security, with one-half cent and
0.005 of a share, respectively, being rounded upward. Notwithstanding any other
provision of this Section 16.3, the Company shall not be required to make any
adjustment of the Conversion Price unless such adjustment would require an
increase or decrease of at least 1% of such price. Any lessor adjustment shall
be carried forward and shall be made at the time of, and together with, the next
subsequent adjustment which, together with any adjustment or adjustments so
carried forward, shall amount to an increase or decrease of at least 1% in such
price. Any adjustments under this Section 16.3 shall be made successively
whenever an event requiring such an adjustment occurs.
(g) In the event that at any time, as a result of an adjustment made
pursuant to this Section 16.3, the holder of any Debt Security thereafter
surrendered for conversion shall become entitled to receive any shares of stock
of the Company other than shares of Common Stock into which the Debt Securities
originally were convertible, the Conversion Price of such other shares so
receivable upon conversion of any such Debt Security shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in
subparagraphs (a) through (f) of this Section 16.3, and the provisions of
Sections 16.1, 16.2 and 16.4 through 16.9 with respect to the Common Stock shall
apply on like or similar terms to any such other shares and the determination of
the Board of Directors as to any such adjustment shall be conclusive.
(h) No adjustment shall be made pursuant to this Section: (i) if the
effect thereof would be to reduce the Conversion Price below the par value (if
any) of the Common Stock or (ii) subject to 16.3(e) hereof, with respect to any
Debt Security that is converted prior to the time such adjustment otherwise
would be made.
Section 16.4 CONSOLIDATION OR MERGER OF THE COMPANY.
----------------------------------------------------
In case of either (a) any consolidation or merger to which the Company
is a party, other than a merger or consolidation in which the company is the
surviving or continuing corporation and which does not result in a
reclassification of, or change (other than a change in par value or from par
value to no par value or from no par value to par value, as a result of a
subdivision or combination) in, outstanding shares of Common Stock or (b) any
sale or conveyance of all or substantially all of the property and assets of the
Company to another Person, each Debt Security then outstanding shall be
convertible from and after such merger, consolidation, sale or conveyance of
property and assets into the kind and amount of shares of stock or other
securities and property (including cash) receivable upon such consolidation,
merger, sale or conveyance by a holder of the number of shares of Common Stock
into which such Debt Securities would have been converted immediately prior to
such consolidation, merger, sale or conveyance, subject to adjustments which
shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Article Sixteen (and assuming such holder of Common Stock failed to
exercise his rights of election, if any, as to the kind or amount of securities,
cash or other property (including cash) receivable upon such consolidation,
merger, sale or conveyance (provided that, if the kind or amount of securities,
cash or other property (including cash) receivable upon such consolidation,
merger, sale or conveyance is not the same for each nonelecting share, then the
kind and amount of securities, cash or other property (including cash)
receivable upon such consolidation, merger, sale or conveyance for each
nonelecting share shall be deemed to be the kind and amount so receivable per
share by a plurality of the nonelecting shares or securities)). The Company
shall not enter into any of the transactions referred to in clause (a) or (b) of
the preceding sentence unless effective
61
provision shall be made so as to give effect to the provisions set forth in this
Section 16.4. The provisions of this Section 16.4 shall apply similarly to
successive consolidations, mergers, sales or conveyances.
Section 16.5 NOTICE OF ADJUSTMENT.
----------------------------------
Whenever an adjustment in the Conversion Price with respect to a
series of Debt Securities is required:
(a) the Company shall forthwith place on file with the Trustee and any
Conversion Agent for such Securities a certificate of the Treasurer of the
Company, stating the adjusted Conversion Price determined as provided herein and
setting forth in reasonable detail such facts as shall be necessary to show the
reason for and the manner of computing such adjustment, such certificate to be
conclusive evidence that the adjustment is correct; and
(b) a notice stating that the Conversion Price has been adjusted and
setting forth the adjusted Conversion Price shall forthwith be given by the
Company, or at the Company's request, by the Trustee in the name and at the
expense of the Company, in the manner provided in Section 18.2. Any notice so
given shall be conclusively presumed to have been duly given, whether or not the
holder receives such notice.
Section 16.6 NOTICE IN CERTAIN EVENTS.
--------------------------------------
In case:
(a) of a consolidation or merger to which the Company is a party and
for which approval of any stockholders of the Company is required, or of the
sale or conveyance to another Person or entity or group of Persons or entities
acting in concert as a partnership, limited partnership, syndicate or other
group (within the meaning of Rule 13d-3 under the Securities Exchange Act of
1934, as amended) of all or substantially all of the property and assets of the
Company; or
(b) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company; or
(c) of any action triggering an adjustment of the Conversion Price
pursuant to this Article Sixteen;
then, in each case, the Company shall cause to be filed with the Trustee and the
Conversion Agent for the applicable Debt Securities, and shall cause to be
given, to the holders of record of applicable Debt Securities in the manner
provided in Section 18.2, at least fifteen (15) days prior to the applicable
date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of any distribution or grant of rights or warrants
triggering an adjustment to the Conversion Price pursuant to this Article
Sixteen, or, if a record is not to be taken, the date as of which the holders of
record or Common Stock entitled to such distribution, rights or warrants are to
be determined, or (y) the date on which any reclassification, consolidation,
merger, sale, conveyance, dissolution, liquidation or winding up triggering an
adjustment to the Conversion Price pursuant to this Article 16 is expected to
become effective, and the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their Common Stock for securities
or other property deliverable upon such reclassification, consolidation, merger,
sale, conveyance, dissolution, liquidation or winding up.
Failure to give such notice or any defect therein shall not affect the
legality or validity of the proceedings described in clause (a), (b), or (c) of
this Section.
62
Section 16.7 COMPANY TO RESERVE STOCK; REGISTRATION; LISTING.
-------------------------------------------------------------
(a) The Company shall at all times reserve and keep available, free
from preemptive rights, out of its authorized but unissued shares of Common
Stock, for the purpose of effecting the conversion of the Debt Securities, such
number of its duly authorized shares of Common Stock as shall from time to time
be sufficient to effect the conversion of all applicable outstanding Debt
Securities into such Common Stock at any time (assuming that, at the time of the
computation of such number of shares or securities, all such Debt Securities
would be held by a single holder); provided, however, that nothing contained
herein shall preclude the Company from satisfying its obligations in respect of
the conversion of the Debt Securities by delivery of purchased shares of Common
Stock which are held in the treasury of the Company. The Company shall from
time to time, in accordance with the laws of the State of Delaware, use its best
efforts to cause the authorized amount of the Common Stock to be increased if
the aggregate of the authorized amount of the Common Stock remaining unissued
and the issued shares of such Common Stock in its treasury (other than any such
shares reserved for issuance in any other connection) shall not be sufficient to
permit the conversion of all Debt Securities.
(b) If any shares of Common Stock which would be issuable upon
conversion of Debt Securities hereunder require registration with or approval of
any governmental authority before such shares or securities may be issued upon
such conversion, the Company will in good faith and as expeditiously as possible
endeavor to cause such shares or securities to be duly registered or approved,
as the case may be. The Company will endeavor to list the shares of Common
Stock required to be delivered upon conversion of the Debt Securities prior to
such delivery upon the principal national securities exchange upon which the
outstanding Common Stock is listed at the time of such delivery.
Section 16.8 TAXES ON CONVERSION.
---------------------------------
The Company shall pay any and all documentary, stamp or similar issue
or transfer taxes that may be payable in respect of the issue or delivery of
shares of Common Stock on conversion of Debt Securities pursuant hereto. The
Company shall not, however, be required to pay any such tax which may be payable
in respect of any transfer involved in the issue or delivery of shares of Common
Stock or the portion, if any, of the Debt Securities which are not so converted
in a name other than that in which the Debt Securities so converted were
registered, and no such issue or delivery shall be made unless and until the
Person requesting such issue has paid to the Company the amount of such tax or
has established to the satisfaction of the Company that such tax has been paid.
Section 16.9 CONVERSION AFTER RECORD DATE.
------------------------------------------
If any Debt Securities are surrendered for conversion subsequent to
the record date preceding an Interest Payment Date but on or prior to such
Interest Payment Date (except Debt Securities called for redemption on a
Redemption Date between such record date and Interest Payment Date), the holder
of such Debt Securities at the close of business on such record date shall be
entitled to receive the interest payable on such Debt Securities on such
Interest Payment Date notwithstanding the conversion thereof. Debt Securities
surrendered for conversion during the period from the close of business on any
record date next preceding any Interest Payment Date to the opening of business
on such Interest Payment Date shall (except in the case of Debt Securities which
have been called for redemption on a Redemption Date within such period) be
accompanied by payment in New York Clearing House funds or other funds of an
amount equal to the interest payable on such Interest Payment Date on the Debt
Securities being surrendered for conversion. Except as provided in this Section
16.9, no adjustments in
63
respect of payments of interest on Debt Securities surrendered for conversion or
any dividends or distributions of interest on the Common Stock issued upon
conversion shall be made upon the conversion of any Debt Securities.
Section 16.10 COMPANY DETERMINATION FINAL.
------------------------------------------
Any determination that the Company or the Board of Directors must make
pursuant to this Article is conclusive.
Section 16.11 TRUSTEE'S DISCLAIMER.
-----------------------------------
The Trustee has no duty to determine when an adjustment under this
Article should be made, how it should be made or what it should be. The Trustee
makes no representation as to the validity or value of any securities or assets
issued upon conversion of Debt Securities. The Trustee shall not be responsible
for the Company's failure to comply with this Article. Each Conversion Agent
other than the Company shall have the same protection under this Section as the
Trustee.
ARTICLE 17
GUARANTEES
Section 17.1 APPLICABILITY OF ARTICLE.
---------------------------------------
The provisions of this Article shall be applicable to any series of
Debt Securities which is to be guaranteed by one or more Guarantors.
Section 17.2 OBLIGOR GUARANTEE.
--------------------------------
The Guarantors unconditionally and jointly and severally guarantee and
promise to pay to the holders and the Trustee (each a "Beneficiary"), on demand
made at any time while an Event of Default exists, in lawful money of the United
States of America, any and all Obligations of the Company from time to time owed
to the Beneficiaries (the "Obligor Guarantee"). The term "Obligations" means any
and all present and future obligations and liabilities of the Company of every
type and description to the Beneficiaries under this Indenture and the Debt
Securities of the series such Guarantors have guaranteed (the "Guaranteed
Securities"), whether for principal, premium (if any), interest, expenses,
indemnities or other amounts, in each case whether due or not due, absolute or
contingent, voluntary or involuntary, liquidated or unliquidated, determined or
undetermined, now or hereafter existing, renewed or restructured, whether or not
from time to time decreased or extinguished and later increased, created or
incurred, whether or not arising after the commencement of a proceeding under
the Bankruptcy Code (including post-petition interest) and whether or not
allowed or allowable as a claim in any such proceeding, and whether or not
recovery of any such obligation or liability may be barred by a statute of
limitations or such obligation or liability may otherwise be unenforceable. All
Obligations shall be conclusively presumed to have been created in reliance on
the Obligor Guarantee. The Obligor Guarantee is a continuing Guarantee of the
Obligations and, except as otherwise provided in this Indenture, may not be
revoked and shall not otherwise terminate unless and until any and all
Obligations have been indefeasibly paid and performed in full.
64
Section 17.3 NATURE OF OBLIGOR GUARANTEE.
------------------------------------------
The liability of each Guarantor under the Obligor Guarantee is independent
of and not in consideration of or contingent upon the liability of the Company
or any other Obligor, and a separate action or actions may be brought and
prosecuted against any Guarantor, whether or not any action is brought or
prosecuted against the Company or any other Obligor or whether the Company or
any other Obligor is joined in any such action or actions. The Obligor Guarantee
given by each Guarantor shall be construed as a continuing, absolute and
unconditional Guarantee of payment (and not merely of collection) without regard
to:
(a) the legality, validity or enforceability of the Debt Securities
or this Indenture, any of the Obligations, any security or Obligor Guarantee
given by any other Guarantor;
(b) any defense (other than payment), set-off or counterclaim that
may at any time be available to the Company or any other Obligor against, and
any right of setoff at any time held by, any Beneficiary; or
(c) any other circumstance whatsoever (with or without notice to or
knowledge of any Guarantor or any other Obligor), whether or not similar to any
of the foregoing, that constitutes, or might be construed to constitute, an
equitable or legal discharge of the Company or any other Obligor, in bankruptcy
or in any other instance.
Any payment by any Obligor or other circumstance that operates to toll
any statute of limitations applicable to such Obligor shall also operate to toll
the statute of limitations applicable to each Guarantor.
Section 17.4 AUTHORIZATION.
---------------------------
Each Guarantor authorizes each Beneficiary, without notice or further
assent by such Guarantor, and without affecting any Guarantor's liability
hereunder (regardless of whether any subrogation or similar right that such
Guarantor may have or any other right or remedy of such Guarantor is
extinguished or impaired), from time to time to do any or all of the following :
(a) permit the Company to increase or create Obligations, or terminate,
release, compromise, subordinate, extend, accelerate or otherwise change the
amount or time, manner or place of payment of, or rescind any demand for payment
or acceleration of, the Obligations or any part thereof, consent or enter into
supplemental indentures or otherwise amend the terms and conditions of the
Guaranteed Securities or this Indenture or any provision thereof,
(b) take and hold any collateral from the Company or any other Person,
perfect or refrain from perfecting a lien on any collateral, and exchange,
enforce, subordinate, release (whether intentionally or unintentionally), or
take or fail to take any other action in respect of, any collateral or lien or
any part thereof;
65
(c) exercise in such manner and order as it elects in its sole discretion,
fail to exercise, waive, suspend, terminate or suffer expiration of, any of the
remedies or rights of such Beneficiary against the Company or any other Obligor
in respect of any Obligations or any security;
(d) release, add or settle with any Obligor in respect of the Obligor
Guarantee or the Obligations;
(e) accept partial payments on the Obligations and apply any and all
payments or recoveries from such Obligor to such of the Obligations as any
Beneficiary may elect in its sole discretion, whether or not such Obligations
are secured or guaranteed;
(f) refund at any time, at such Beneficiary's sole discretion, any
payments or recoveries received by such Beneficiary in respect of any
Obligations; and
(g) otherwise deal with the Company or any other Obligor as such
Beneficiary may elect in its sole discretion.
SECTION 17.5 CERTAIN WAIVERS.
-----------------------------
Each Guarantor waives:
(a) the right to require the Beneficiaries to proceed against the Company
or any other Obligor, to proceed against or exhaust any collateral or to pursue
any other remedy in any Beneficiary's power whatsoever and the right to have the
property of the Company or any other Obligor first applied to the discharge of
the Obligations;
(b) all rights and benefits under applicable law purporting to reduce a
Guarantor's obligations in proportion to the obligation of the principal or
providing that the obligation of a surety or Guarantor must neither be larger
nor in other respects more burdensome than that of the principal;
(c) the benefits of any statute of limitations affecting the Obligations
or any Guarantor's liability hereunder;
(d) any requirement of marshaling or any other principle of election of
remedies;
(e) any right to assert against any Beneficiary any defense (legal or
equitable), set-off, counterclaim and other right that any Guarantor may now or
any time hereafter have against the Company or any other Obligor;
(f) presentment, demand for payment or performance (including diligence in
making demands hereunder), notice of dishonor or nonperformance, protest,
acceptance and notice of acceptance of the Obligor Guarantee, and, except to the
extent expressly required by the Guaranteed Securities or this Indenture, all
other notices of any kind, including (i) notice of any action taken or omitted
by the Beneficiaries in reliance hereon, (ii) notice of any default by the
Company or any other Obligor, (iii) notice that any portion of the Obligations
is due, (iv) notice of any action against the Company or any other Obligor, or
any enforcement or
66
other action with respect to any collateral, or the assertion of any right of
any Beneficiary hereunder; and
(g) all defenses that at any time may be available to any Guarantor by
virtue of any valuation, stay, moratorium or other law now or hereafter in
effect.
SECTION 17.6 NO SUBROGATION; CERTAIN AGREEMENTS.
------------------------------------------------
(a) EACH GUARANTOR WAIVES ANY AND ALL RIGHTS OF SUBROGATION, INDEMNITY OR
REIMBURSEMENT, AND ANY AND ALL BENEFITS OF AND RIGHTS TO ENFORCE ANY POWER,
RIGHT OR REMEDY THAT ANY BENEFICIARY MAY NOW OR HEREAFTER HAVE IN RESPECT OF THE
OBLIGATIONS AGAINST THE COMPANY OR ANY OTHER OBLIGOR (OTHER THAN RIGHTS OF
CONTRIBUTION FROM OTHER GUARANTORS), AND ANY AND ALL OTHER RIGHTS AND CLAIMS (AS
DEFINED IN THE BANKRUPTCY CODE) ANY GUARANTOR MAY HAVE AGAINST THE COMPANY,
UNDER APPLICABLE LAW OR OTHERWISE, AT LAW OR IN EQUITY, BY REASON OF ANY PAYMENT
UNDER THE OBLIGOR GUARANTEE, UNLESS AND UNTIL THE OBLIGATIONS SHALL HAVE BEEN
PAID IN FULL.
(b) Each Guarantor assumes the responsibility for being and keeping
itself informed of the financial condition of each other Obligor and of all
other circumstances bearing upon the risk of nonpayment of the Obligations or
the Obligor Guarantee of any other Guarantor that diligent inquiry would reveal,
and agrees that the Beneficiaries shall have no duty to advise any Guarantor of
information regarding such condition or any such circumstances.
SECTION 17.7 BANKRUPTCY NO DISCHARGE.
-------------------------------------
(a) Without limiting Section 17.3, the Obligor Guarantee shall not be
discharged or otherwise affected by any bankruptcy, reorganization or similar
proceeding commenced by or against the Company or any other Obligor, including
(i) any discharge of, or bar or stay against collecting, all or any part of the
Obligations in or as a result of any such proceeding, whether or not assented to
by any Beneficiary, (ii) any disallowance of all or any portion of any
Beneficiary's claim for repayment of the Obligations, (iii) any use of cash or
other collateral in any such proceeding, (iv) any agreement or stipulation as to
adequate protection in any such proceeding, (v) any failure by any Beneficiary
to file or enforce a claim against the Company or any other Obligor or its
estate in any bankruptcy or reorganization case, (vi) any amendment,
modification, stay or cure of any Beneficiary's rights that may occur in any
such proceeding, (vii) any election by any Beneficiary under Section 1112(b)(2)
of the Bankruptcy Code, or (viii) any borrowing or grant of a lien under Section
364 of the Bankruptcy Code. Each Guarantor understands and acknowledges that by
virtue of the Obligor Guarantee, it has specifically assumed any and all risks
of any such proceeding with respect to the Company and each other Obligor.
67
(b) Notwithstanding anything in this Article 17 to the contrary, any Event
of Default under the Guaranteed Securities or Section 5.1 of this Indenture
shall render all Obligations automatically due and payable for purposes of the
Obligor Guarantee, without demand on the part of the Trustee or any Holder.
(c) Notwithstanding anything to the contrary herein contained, the Obligor
Guarantee shall continue to be effective or be reinstated, as the case may be,
if at any time any payment, or any part thereof, of any or all of the
Obligations is rescinded, invalidated, declared to be fraudulent or preferential
or otherwise required to be restored or returned by any Beneficiary in
connection with any bankruptcy, reorganization or similar proceeding involving
the Company, any other Obligor or otherwise or if any Beneficiary elects to
return any such payment or proceeds or any part thereof in its sole discretion,
all as though such payment had not been made or such proceeds not been received.
SECTION 17.8 RIGHTS OF CONTRIBUTION.
------------------------------------
(a) In order to provide for just and equitable contribution among the
Guarantors in connection with the respective Obligor Guarantees, the Guarantors
have agreed among themselves that if any Guarantor satisfies some or all of the
Obligations of the Company guaranteed by it hereunder (a "Funding Guarantor"),
the Funding Guarantor shall be entitled to contribution from the other
Guarantors that have positive Maximum Net Worth (as defined below) for all
payments made by the Funding Guarantor in satisfying such Obligations, so that
each Guarantor that remains obligated under it Subsidiary Guarantee at the time
that a Funding Guarantor makes such payment (a "Remaining Guarantor") and has a
positive Maximum Net Worth shall bear a portion of such payment equal to the
percentage that such Remaining Guarantor's Maximum Net Worth bears to the
aggregate Maximum Net Worth of all Remaining Guarantors that have positive
Maximum Net Worth.
(b) For purposes of this Section 17.8, the following terms are defined as
set forth below:
"Net Worth" means, with respect to any Guarantor, the amount, as of any
date of calculation, by which the sum of such Person's assets (including
subrogation, indemnity, contribution, reimbursement and similar rights that such
Guarantor may have), determined on the basis of a "fair valuation" or their
"fair salable value" (whichever is the applicable test under Section 548 and
other relevant provisions of Bankruptcy Code, and the relevant state fraudulent
conveyance or transfer laws) is greater than the amount that will be required to
pay all of such Person's debts, in each case matured or unmatured, contingent or
otherwise, as of the date of calculation, but excluding liabilities arising
under its Obligor Guarantee and excluding, to the maximum extent permitted by
applicable law with the objective of avoiding rendering such Person insolvent,
liabilities subordinated to the Obligations under such Obligor Guarantees
arising out of loans or advances made to such Person by any other Person.
"Maximum Net Worth" means, with respect to any Guarantor, the greatest of
the Net Worths calculated as of the following dates: (A) the date of which the
Guarantor becomes a
68
Guarantor hereunder, (B) the date on which such Guarantor expressly reaffirms
its Subsidiary Guarantee, (C) the date on which demand for payment is made on
such Guarantor hereunder, (D) the date on which payment is made by such
Guarantor hereunder or (E) the date on which any judgment, order or decree is
entered requiring such Guarantor to make payment hereunder or in respect hereof.
The meaning of the terms "fair valuation" and "fair salable value" and the
calculation of assets and liabilities shall be determined and made in accordance
with the relevant provisions of any Bankruptcy Code and applicable state
fraudulent conveyance or transfer laws.
SECTION 17.9 LIMITATION ON LIABILITY.
--------------------------------------
If the obligations of any Guarantor hereunder otherwise would be subject to
avoidance under Section 548 of the Bankruptcy Code or any applicable state law
relating to fraudulent conveyances or fraudulent transfers, taking into
consideration such Guarantor's (i) rights of reimbursement and indemnity from
the Company with respect to amounts paid by such Guarantor and (ii) rights of
contribution from other Guarantors pursuant to Section 17.8, then such
obligations hereby are reduced to the largest amount that would make them not
subject to such avoidance. Any Person asserting that such Guarantor's
obligations are so avoidable shall have the burden (including the burden of
production and persuasion) of proving (a) that, without giving effect to this
paragraph, such Guarantor's obligations hereunder would be avoidable and (b) the
extent to which such obligations are reduced by operation of this paragraph.
SECTION 17.10 APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE GUARANTORS.
----------------------------------------------------------------------------
(a) For purposes of any provision of this Indenture which provides for the
delivery by any Guarantor of an Officer's Certificate and/or an Opinion of
Counsel, the definitions of such terms in Section 1.01 shall apply to such
Subsidiary Guarantor as if references therein to the Company were references to
such Guarantor.
(b) Any request, direction, order or demand which by any provision of this
Indenture is to be made by any Guarantor, shall be sufficient if evidenced as
described in Section 18.2 as if references therein to the Company were
references to such Guarantor.
(c) Upon any demand, request or application by any Guarantor to the
Trustee to take any action under this Indenture, such Guarantor shall furnish to
the Trustee such certificates and opinions as are required in Section 1.02
hereof as if all references therein to the Company were references to such
Guarantor.
SECTION 17.11 EXECUTION AND DELIVERY OF GUARANTEE.
--------------------------------------------------
Each Guarantor shall be deemed to have signed on each Debt Security issued
hereunder any required notation of guarantee to the same extent as if the
signature of such Guarantor appeared on such Debt Security. The delivery of any
Debt Security by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Obligor Guarantee set forth in Section 17.2 on
behalf of each Guarantor. The notation of a guarantee set forth on any Debt
Security shall be null and void and of no further effect with respect to the
Obligor Guarantee of any Guarantor which, pursuant to Section 17.12 or Section
17.13, is released from such Guarantee.
SECTION 17.12 GUARANTOR MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.
---------------------------------------------------------------
(a) Nothing contained in this Indenture or in any of the Debt Securities
shall prevent any consolidation or merger of a Guarantor with or into the
Company or any other Guarantor. Upon any such consolidation or merger, the
Obligor Guarantee (as set forth in Section 17.2) of the Guarantor which is not
the survivor of the merger or consolidation, shall be released and shall no
longer have any force or effect.
(b) Nothing contained in this Indenture shall prevent any sale or
conveyance of assets of any Guarantor (whether or not constituting all or
substantially all of the assets of such Guarantor) to any Person, provided that
the Company shall comply with any applicable terms of this Indenture, and
provided further that, subject to Section 17.13, in the event that all of the
assets of a Guarantor are sold or conveyed, the Obligor Guarantee of such
Guarantor (as set forth in Section 17.2) shall be released and shall no longer
have any force or effect.
(c) Except as provided in Section 17.12(a) or Section 17.13, each
Guarantor shall not, directly or indirectly, consolidate with or merge with or
into another Person, unless (i) either (a) the Guarantor is the continuing
entity or (b) the resulting or surviving entity is a corporation organized under
the laws of the United States, any state thereof or the District of Columbia and
expressly assumes by supplemental indenture all of the obligations of the
Guarantor in connection with the Debt Securities and this Indenture; (ii) no
Default or Event of Default would occur as a consequence of (after giving
effect, on a pro forma basis, to) such transaction; and (iii) the Guarantor has
delivered to the Trustee an Officers' Certificate and an Opinion of Counsel,
each stating that such consolidation or merger and if a supplemental indenture
is required, such supplemental indenture comply with this Indenture and that all
conditions precedent herein relating to such transaction have been satisfied.
(d) Upon any consolidation or merger of a Guarantor in accordance with
Section 17.12, the successor corporation formed by such consolidation or into
which the Guarantor is merger shall succeed to, and be substituted for, and may
exercise every right and power of, the Guarantor under this Indenture with the
same effect as if such successor corporation had been named herein a the
Guarantor, and when a successor corporation duly assumes all of the obligations
of the Guarantor pursuant hereto and pursuant to the Debt Securities, the
Guarantor shall be released from such obligations.
SECTION 17.13 RELEASE OF GUARANTORS.
------------------------------------
(a) Without further notice or action being required by any Person, but
subject to Section 10.1, any Guarantor, and each Subsidiary of such Guarantor
that is also a Guarantor, shall be fully and conditionally released and
discharged from all obligations under its Obligor Guarantee and this Indenture,
upon (i) the sale or other disposition of all of the assets or properties of
such Guarantor, or 50% or more of the equity interests of any such Guarantor or
Persons other than the Company and their Subsidiaries or (ii) the consolidation
or merger of any such Guarantor with any Person other than the Company or a
Subsidiary of the Company, if, as a result of such consolidation or merger,
Persons other than the Company and their Subsidiaries beneficially own more than
50% of the capital stock of such Guarantor, provided, that, in either such case,
the proceeds of any such sale, disposition, merger or consolidation are applied
in accordance with this Indenture; or (iii) a defeasance as provided in Article
15 hereof.
(b) The releases and discharges set forth in Section 17.13(a) shall be
effective (i) in the case of releases and discharges effected pursuant to clause
(i) or (ii) of Section 17.13(a) by virtue of a sale, disposition, consolidation
or merger, on the date of consummation thereof and (ii) in the case of releases
and discharges effected pursuant to clause (iii) of Section 17.13(a), upon the
date of defeasance. At the written request of the Company, the Trustee shall
promptly execute and deliver appropriate instruments in forms reasonably
acceptable to the Company evidencing and further implementing any releases and
discharges pursuant to the foregoing provisions. If the Company desires the
instruments evidencing or implementing any releases or discharges to be executed
prior to the effectiveness of such releases and discharges as set forth above,
necessary to cause the effectiveness of such releases and discharges, as
specified in the first sentence of this Section 17.13.
(c) Notwithstanding the foregoing provisions of this Article 17, (i) any
Guarantor whose Obligor Guarantee would otherwise be released pursuant to the
provisions of this Section 17.13 may elect, by written notice to the Trustee, to
maintain such Obligor Guarantee in effect notwithstanding the event or events
that otherwise would cause the release of such Obligor Guarantee (which election
to maintain such guarantee in effect may be conditional or for a limited period
of time), and (ii) any Subsidiary of the Company which is not a Guarantor may
elect, by written notice to the Trustee, to become a Guarantor (which election
may be conditional or for a limited period of time).
SECTION 17.14 CERTAIN BANKRUPTCY EVENTS.
----------------------------------------
Each Guarantor hereby covenants and agrees, to the fullest extent that it
may do so under applicable law, that in the event of the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Company, such Guarantor shall
not file (or join in any filing of), or otherwise seek to participate in the
filing of, any motion or request seeking to stay or to prohibit (even
temporarily) execution on the Obligor Guarantee and hereby waives and agrees not
to take the benefit of any such stay of execution.
69
ARTICLE 18
MISCELLANEOUS
Section 18.1 NOTICES, ETC., TO TRUSTEE AND COMPANY.
---------------------------------------------------
Any Act of holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with:
(a) the Trustee by any holder or by the Company shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided) if
made, given, furnished or filed in writing to or with the Trustee at its
Corporate Trust Office, Attention: Corporate Trust Department, or
(b) the Company by the Trustee or by any holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid or airmail postage prepaid if
sent from outside the United States, to the Company addressed to it at the
address of its principal office specified in the first paragraph of this
instrument, to the attention of its Treasurer, or at any other address
previously furnished in writing to the Trustee by the Company.
Any such Act or other document shall be in the English language,
except that any published notice may be in an official language of the country
of publication.
Section 18.2 NOTICE TO HOLDERS; WAIVER.
---------------------------------------
When this Indenture provides for notice to holders of any event, such
notice shall be sufficiently given to holders (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to such holders
as their names and addresses appear in the Security Register, within the time
prescribed; provided, however, that, in any case, any notice to holders of
Floating Rate Securities regarding the determination of a periodic rate of
interest, if such notice is required pursuant to Section 3.1, shall be
sufficiently given if given in the manner specified pursuant to Section 3.1.
In the event of suspension of regular mail service or by reason of any
other cause it shall be impracticable to give notice by mail, such notification
as shall be given with the approval of the Trustee shall constitute sufficient
notice for every purpose hereunder.
In the event of suspension of publication of any Authorized Newspapers
or by reason of any other cause it shall be impracticable to give notice by
publication, such notification as shall be given with the approval of the
Trustee shall constitute sufficient notice for every purpose hereunder.
70
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 on such waiver. 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, and any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given. In any case
where notice to holders is given by publication, any defect in any notice so
published as to any particular holder shall not affect the sufficiency of such
notice with respect to other holders, and any notice which is published in the
manner herein provided shall be conclusively presumed to have been duly given.
Section 18.3 CONFLICT WITH TRUST INDENTURE ACT.
-----------------------------------------------
If any provision hereof limits, qualifies or conflicts with the duties
imposed on any person by the provisions of Sections 310 to 317, inclusive, of
the Trust Indenture Act, such imposed duties shall control.
Section 18.4 COUNTERPARTS; EFFECT OF HEADINGS AND TABLE OF CONTENTS.
--------------------------------------------------------------------
This Indenture may be executed in any number of counterparts, each of
which when executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Indenture. The Article and
Section headings herein and in the Table of Contents are for convenience only
and shall not affect the construction hereof.
Section 18.5 SUCCESSORS AND ASSIGNS.
------------------------------------
All covenants and agreements in this Indenture by the parties hereto
shall bind their respective successors and assigns and inure to the benefit of
their permitted successors and assigns, whether so expressed or not.
Section 18.6 SEPARABILITY CLAUSE.
---------------------------------
In case any provision in this Indenture or in the Debt Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.
Section 18.7 BENEFITS OF INDENTURE.
-----------------------------------
Nothing in this Indenture or in the Debt Securities, express or
implied, shall give to any Person, other than the parties hereto, any Security
Registrar, any Paying Agent and their successors hereunder, and the holders, any
benefit or any legal or equitable right, remedy or claim under this Indenture.
Section 18.8 GOVERNING LAW.
---------------------------
This Indenture and the Debt Securities shall be deemed to be contracts
made and to be performed entirely in the State of California, and for all
purposes shall be governed by and construed in accordance with the internal laws
of said State without regard to the conflicts of law rules of said State.
71
Section 18.9 LEGAL HOLIDAYS.
----------------------------
Unless otherwise specified pursuant to Section 3.1 or in any Debt
Security, in any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Debt Security of any series shall not be a Business Day at any
Place of Payment for the Debt Securities of that series, then (notwithstanding
any other provision of this Indenture or of the Debt Securities) payment of
principal (and premium, if any) or interest need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date, Redemption Date or at the Stated Maturity, and no interest shall
accrue on the amount so payable for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be, to such
Business Day if such payment is made or duly provided for on such Business Day.
Section 18.10 NO RECOURSE AGAINST OTHERS.
-----------------------------------------
No direct or indirect incorporator, employee, stockholder, director or
officer, as such, past, present or future of the Company or any successor
corporation or any of the Company's Affiliates, shall have any personal
liability in respect of the obligations of the Company under the Debt Securities
or this Indenture, either directly or through the Company, by reason of his, her
or its status as such incorporator, stockholder, employee, director or officer.
Each holder by accepting a Debt Security waives and releases all such liability.
Such waiver and release are part of the consideration for the issuance of the
Debt Securities.
Section 18.11 GAMING LAWS.
--------------------------
If the Company becomes the holding company of a New Jersey casino
licensee, this Indenture and the Debt Securities will be subject to the Casino
Control Act of the State of New Jersey and the rules and regulations thereunder.
In addition, the Nevada Gaming Commission may at any time, in its discretion,
require the holder of any Debt Securities of the Company to file an application,
be investigated and be found suitable to own such Debt Securities.
72
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.
MGM GRAND, INC.
By:
---------------------------------------------------------
Name:
-------------------------------------------------------
Title:
------------------------------------------------------
[SEAL]
Attest:
By:
------------------------------------
Name:
-----------------------------------
Title:
----------------------------------
[NAME OF TRUSTEE], as Trustee
By:
------------------------------------------------------
Name:
-----------------------------------------------------
Title:
----------------------------------------------------
[SEAL]
Attest:
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
73
EXHIBIT A
[FORM OF REDEEMABLE OR NONREDEEMABLE DEBT SECURITY]
[FACE OF DEBT SECURITY]
[THIS DEBT SECURITY IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS DEBT SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR
EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE
DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY DEBT SECURITY
AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR
OR IN LIEU OF, THIS DEBT SECURITY SHALL BE A GLOBAL NOTE SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.]
[IF THIS DEBT SECURITY IS AN ORIGINAL ISSUE DISCOUNT DEBT SECURITY,
INSERT--FOR PURPOSES XX XXXXXXXX 0000 XXX 0000 XX XXX XXXXXX XXXXXX INTERNAL
REVENUE CODE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THIS DEBT SECURITY IS
_____% OF ITS PRINCIPAL AMOUNT, THE ISSUE DATE IS __________, 19__ [AND] THE
YIELD TO MATURITY IS ____ %. THE METHOD USED TO DETERMINE THE AMOUNT OF ORIGINAL
ISSUE DISCOUNT APPLICABLE TO THE SHORT ACCRUAL PERIOD OF __________, 19__ TO
________, 19__, IS ____% OF THE PRINCIPAL AMOUNT OF THIS DEBT SECURITY.]
MGM GRAND, INC. [DESIGNATION OF SERIES]
No.__________ $__________
MGM GRAND, INC., a Delaware corporation (herein referred to as the
"Company," which term includes any successor corporations under the Indenture
referred to on the reverse hereof), for value received, hereby promises to pay
to _____________________ or registered assigns the principal sum of
_____________________ Dollars on ___________ (the "Stated Maturity Date") [OR
INSERT DATE FIXED FOR EARLIER REDEMPTION (the "Redemption Date" and, together
with the Stated Maturity Date with respect to principal repayable on such date,
the "Maturity Date")].
[IF THE DEBT SECURITY IS TO BEAR INTEREST PRIOR TO MATURITY, INSERT--and to
pay interest thereon from _____________________ or from the most recent interest
payment date to which interest has been paid or duly provided for, semi-annually
on _________________ and ________________ in each year (each, an "Interest
Payment Date"), commencing _________________, at the rate of _____% per annum,
until the principal hereof is paid or duly provided for. The interest so
payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the
Holder in whose name this Debt Security (or one or more Predecessor Securities)
is registered at the close of business on the Regular Record Date for such
interest, which shall be the _______________ or _______________ (whether or not
a Business Day, as defined below), as the case may be, next preceding such
Interest Payment Date [at the office or agency of the Company maintained for
such purpose; PROVIDED, HOWEVER, that such interest may be paid, at the
Company's option, by mailing a check to such Holder at his or her registered
address or by transfer of funds to an account maintained by such Holder within
the United States]. Any such interest not so punctually paid or duly provided
for shall forthwith cease to be payable to the Holder on such Regular Record
Date, and may be paid to the Holder in whose name this Debt Security (or one or
more Predecessor Debt Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Debt Securities of this
series not less than 15 days prior to such Special Record Date, or may be paid
at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Debt Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture. Interest will be computed on the basis of a
360-day year of twelve 30-day months.]
[IF THE DEBT SECURITY IS NOT TO BEAR INTEREST PRIOR TO MATURITY, INSERT--
The principal of this Debt Security shall not bear interest except in the case
of a default in payment of principal upon acceleration, upon redemption or at
the [Stated] Maturity Date and in such case the overdue principal of this Debt
Security shall bear interest at the rate of _________% per annum (to the extent
that the payment of such interest shall be legally enforceable), which shall
accrue from the date of such default in payment to the date payment of such
principal has been made or duly provided for. Interest on any overdue principal
shall be payable on demand. Any such interest on any overdue principal that is
not so paid on demand shall bear interest at the rate of _____% per annum (to
the extent that the payment of such interest shall be legally enforceable),
which shall accrue from the date of such demand for payment to the date payment
of such interest has been made or duly provided for, and such interest shall
also be payable on demand.]
The principal of this Debt Security payable on the [Stated] Maturity Date
[or the principal of, premium, if any, and, if the Redemption Date is not an
Interest Payment Date, interest on this Debt Security payable on the Redemption
Date] will be paid against presentation of this Debt Security at the office or
agency of the Company maintained for that purpose in ____________, in such coin
or currency of the United States as at the time of payment is legal tender for
the payment of public and private debts.
Interest payable on this Debt Security on any Interest Payment Date and on
the [Stated] Maturity Date [or Redemption Date, as the case may be,] will
include interest accrued from and including the next preceding Interest Payment
Date in respect of which interest has been paid or duly provided for (or from
and including ____________, if no interest has been paid on this Debt Security)
to but excluding such Interest Payment Date or the [Stated] Maturity Date [or
2
Redemption Date, as the case may be]. If any Interest Payment Date or the
[Stated] Maturity Date [or Redemption Date] falls on a day that is not a
Business Day, principal, premium, if any, and/or interest payable with respect
to such Interest Payment Date or [Stated] Maturity Date [or Redemption Date, as
the case may be,] will be paid on the next succeeding Business Day with the same
force and effect as if it were paid on the date such payment was due, and no
interest shall accrue on the amount so payable for the period from and after
such Interest Payment Date or [Stated] Maturity Date [or Redemption Date, as the
case may be]. "Business Day" means any day, other than a Saturday or Sunday, on
which banking institutions or trust companies in [__________] are authorized to
close.
[IF THIS DEBT SECURITY IS A GLOBAL DEBT SECURITY, INSERT--All payments of
principal, premium, if any, and interest in respect of this Debt Security will
be made by the Company in immediately available funds.]
Reference is hereby made to the further provisions of this Debt Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the Certificate of Authentication hereon has been executed by the
Trustee by manual signature of one of its authorized signatories, this Debt
Security shall not be entitled to any benefit under the Indenture, or be valid
or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its [facsimile] corporate seal.
Dated _________________ MGM GRAND, INC.
By:
--------------------------
Name:
Title:
Attest:
By:
--------------------------
Name:
Title:
3
[Reverse of Debt Security]
MGM GRAND, INC.
This Debt Security is one of a duly authorized issue of securities of the
Company, issued and to be issued in one or more series under an Indenture, dated
as of ___________, 199__ (herein called the "Indenture") between the Company and
__________________, as Trustee (herein called the "Trustee," which term includes
any successor trustee under the Indenture with respect to the series of which
this Debt Security is a part), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Debt Securities, and of the terms upon which
the Debt Securities are, and are to be, authenticated and delivered. This Debt
Security is one of the duly authorized series of Debt Securities designated on
the face hereof (collectively, the "Debt Securities"), [IF APPLICABLE, INSERT--
and the aggregate principal amount of the securities to be issued under such
series is limited to $________ (except for Debt Securities authenticated and
delivered upon transfer of, or in exchange for, or in lieu of other Debt
Securities).] All terms used in this Debt Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
If an Event of Default shall occur and be continuing, the principal of the
Debt Securities of this series may be declared due and payable in the manner and
with the effect provided in the Indenture.
[IF APPLICABLE, INSERT--The Debt Securities may not be redeemed prior to
the [Stated] Maturity Date.]
The rights of each Holder and any beneficial owner of the Debt Securities
are subject to the Gaming Laws and requirements of the Gaming Authorities. Each
holder and beneficial owner, by accepting or otherwise acquiring an interest in
the Debt Securities, shall be deemed to have agreed that if the Gaming Authority
of any jurisdiction in which the Company or any of its subsidiaries conducts or
proposes to conduct gaming requires that a Person who is a holder or beneficial
owner must be licensed, qualified or found suitable under the applicable Gaming
Laws, such holder or beneficial owner shall apply for a license, qualification
or a finding of suitability within the required time period. If such Person
fails to apply or become licensed or qualified or is found unsuitable, then the
Company shall have the right, at its option, notwithstanding any other provision
of this Indenture (i) to require such Person to dispose of its Debt Securities
or beneficial interest therein within 30 days of receipt of notice of the
Company's election or such earlier date as may be requested or prescribed by
such Gaming Authority or (ii) to redeem such Debt Securities at a redemption
price equal to 100% of the principal amount thereof, plus accrued and unpaid
interest to the earlier of the redemption date and the date of the finding of
unsuitability, which may be less than 30 days following the notice of redemption
if so requested or prescribed by the Gaming Authority, or such lesser amount as
may be required by applicable law or by order of any Gaming Authority. The
Company shall notify the Trustee in writing of any such redemption as soon as
practicable. The Company shall not be responsible for any costs or expenses any
such holder or beneficial owner may incur in connection with its application for
a license, qualification or a finding of suitability. Notwithstanding any other
provision of this Indenture, immediately upon the imposition of a requirement to
dispose of Debt Securities by a Gaming Authority, such Person shall, to the
extent required by applicable Gaming Law, have no further right (i) to exercise,
directly or indirectly, through any trustee, nominee or any other person or
entity, any right conferred by the Debt Securities or (ii) to receive any
interest, dividends or any other distributions or payments with respect to the
Debt Securities or any remuneration in any form with respect to the Debt
Securities from the Company or the Trustee, except the redemption price.
[IF APPLICABLE, INSERT--The Debt Securities are subject to redemption [(a)
[IF APPLICABLE, INSERT--on ______________ in any year commencing with the year
____ and ending with the year ____ through operation of the sinking fund for
this series at a Redemption Price equal to 100% of the principal amount and (b)]
[IF APPLICABLE, INSERT--at any time [on or after _______________], as a whole or
in part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed on or before
___________, ____% and if redeemed during the 12-month period beginning
______________ of the years indicated, at the Redemption Prices indicated below.
Year Redemption Price Year Redemption Price
---- ---------------- ---- ----------------
and thereafter at a Redemption Price equal to ____% of the principal amount,
together, in the case of any such redemption [IF APPLICABLE, INSERT--(whether
through operation of the
4
sinking fund or otherwise)], with accrued interest to the Redemption Date;
PROVIDED, HOWEVER, that installments of interest on this Debt Security whose
Stated Maturity is on or prior to such Redemption Date will be payable to the
Holder of this Debt Security, or one or more Predecessor Debt Securities, of
record at the close of business on the relevant Record Dates referred to on the
face hereof, all as provided in the Indenture.]
[IF APPLICABLE, INSERT--The Debt Securities are subject to redemption (a)
on ____________ in any year commencing with the year ____ and ending with the
year through operation of the sinking fund for this series at the Redemption
Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below and (b) at any
time on or after __________], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below:
If redeemed during the 12-month period beginning of the years indicated,
Redemption Price for Redemption
Otherwise Than Through Redemption Price for Redemption
Operation of the Sinking Fund Through Operation of Sinking Fund Year
----------------------------- --------------------------------- ----
and thereafter at a Redemption Price equal to ___% of the principal amount,
together, in the case of any such redemption (whether through operation of the
sinking fund or otherwise), with accrued interest to the Redemption Date;
PROVIDED, HOWEVER, that installments of interest on this Debt Security whose
Stated Maturity is on or prior to such Redemption Date will be payable to the
Holder of this Debt Security, or one or more Predecessor Debt Securities, of
record at the close of business on the relevant record dates referred to on the
face hereof, all as provided in the Indenture.]
[IF APPLICABLE, INSERT--Notwithstanding the foregoing, the Company may not,
prior to __________ redeem any Debt Securities as contemplated by [clause (b)
of] the preceding paragraph as a part of, or in anticipation of, any refunding
operation by the application, directly or indirectly, of money borrowed having
an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than ____% per annum.]
[IF APPLICABLE, INSERT--The sinking fund for the Debt Securities provides
for the redemption on __________ in each year, beginning with the year ____ and
ending with the year ____, of [not less than] $___] [("mandatory sinking fund")
and not more than $_______] aggregate principal amount of the Debt Securities.
[The Debt Securities acquired or redeemed by the Company otherwise than through
[mandatory] sinking fund payments may be credited against subsequent [mandatory]
sinking fund payments otherwise required to be made in the [DESCRIBE ORDER]
order in which they become due.]]
5
Notice of redemption will be given by mail to Holders of Debt Securities,
not less than 30 nor more than 60 days prior to the Redemption Date, all as
provided in the Indenture.
In the event of redemption of the Debt Security in part only, a new Debt
Security or Debt Securities for the unredeemed portion hereof shall be issued in
the name of the Holder hereof upon the cancellation hereof.
[IF APPLICABLE, INSERT CONVERSION PROVISIONS SET FORTH IN ANY BOARD
RESOLUTION OR INDENTURE SUPPLEMENTAL TO THE INDENTURE.]
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Debt Securities under the Indenture
at any time by the Company and the Trustee with the consent of the Holders of
not less than at least a majority of the aggregate principal amount of all Debt
Securities issued under the indenture at the time Outstanding and affected
thereby. The Indenture also contains provisions permitting the Holders of not
less than at least a majority of the aggregate principal amount of the
Outstanding Debt Securities, on behalf of the Holders of all such Debt
Securities, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of not
less than at least a majority of the aggregate principal amount, in certain
instances, of the Outstanding Debt Securities of any series to waive, on behalf
of all of the Holders of Debt Securities of such series, certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Debt Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Debt Security and other Debt Securities
issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon this
Debt Security.
No reference herein to the Indenture and no provision of this Debt Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any) and
interest on this Debt Security at the times, rates and in the coin or currency,
herein prescribed.
As provided in the Indenture and subject to certain limitations therein
[and herein] set forth, the transfer of this Debt Security is registrable in the
Security Register of the Company upon surrender of this security for
registration of transfer at the office or agency of the Company in any place
where the principal of (and premium, if any) and interest on this Debt Security
are payable, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or by his attorney duly authorized in writing,
and thereupon one or more new Debt Securities, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
As provided in the Indenture and subject to certain limitations therein
[and herein] set forth, this Debt Security is exchangeable for a like aggregate
principal amount of Debt Securities
6
of different authorized denominations but otherwise having the same terms and
conditions, as requested by the Holder hereof surrendering the same.
The Debt Securities of this series are issuable only in registered form
[without coupons] in denominations of $________ and any integral multiple
thereof. No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith. Prior to
due presentment of this Debt Security for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Debt Security is registered as the owner hereof for all
purposes, whether or not this Debt Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.
No recourse shall be had for the payment of the principal of or premium, if
any, or the interest on this Debt Security, or for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture or any
indenture supplemental thereto, against any past, present or future
incorporator, stockholder, employee, officer or director, as such, of the
Company or of any successor or Affiliate of the Company, either directly or
through the Company or any successor, whether by virtue of any constitution,
statute or rule of law or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.
[IF APPLICABLE, INSERT--The obligations of the Company under the Indenture
shall be guaranteed as set forth in the Indenture.]
[IF APPLICABLE, INSERT--The obligations of the Company under the Indenture
shall be secured as set forth in the Indenture.]
The Indenture and the Debt Securities shall be governed by and construed in
accordance with the laws of the State of California applicable to agreements
made and to be performed entirely in such State.
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the series of Debt Securities issued under the within-
mentioned Indenture.
[NAME OF TRUSTEE], as Trustee
By
------------------------------------
Authorized Signatory
7
