EXHIBIT 4(c)
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NATIONAL FUEL GAS COMPANY
AND
THE BANK OF NEW YORK
as Purchase Contract Agent
and Trustee
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PURCHASE CONTRACT AGREEMENT
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DATED AS OF _________, 200__
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TIE SHEET
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Section of Section of
Trust Indenture Act Purchase Contract
of 1939, as amended Agreement
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310(a)......................................................7.8
310(b)......................................................7.9(d) and (g), 11.8
310(c)......................................................Inapplicable
311(a)......................................................11.2(b)
311(b)......................................................11.2(b)
311(c)......................................................Inapplicable
312(a)......................................................11.2(a)
312(b)......................................................11.2(b)
313.........................................................11.3
314(a)......................................................11.4
314(b)......................................................Inapplicable
314(c)......................................................11.5
314(d)......................................................Inapplicable
314(e)......................................................1.2
314(f)......................................................11.1
315(a)......................................................7.1(a)
315(b)......................................................7.2
315(c)......................................................7.1(h)
315(d)(1)...................................................7.1(a) and (b)
315(d)(2)...................................................7.1(b)
315(d)(3)...................................................11.9
316(a)(1)(A)................................................11.9
316(a)(1)(B)................................................11.6
316(b)......................................................6.1
316(c)......................................................11.2
317(a)......................................................Inapplicable
317(b)......................................................Inapplicable
318(a)......................................................11.1(b)
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* This Cross-Reference Table does not constitute part of the Purchase
Contract Agreement and shall not affect the interpretation of any of its
terms or provisions.
TABLE OF CONTENTS
PAGE
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ARTICLE I. Definitions and Other Provisions of General Application
SECTION 1.1 Definitions......................................................1
SECTION 1.2 Compliance Certificates and Opinions............................13
SECTION 1.3 Form of Documents Delivered to Agent............................13
SECTION 1.4 Acts of Holders; Record Dates...................................14
SECTION 1.5 Notices.........................................................15
SECTION 1.6 Notice to Holders; Waiver.......................................16
SECTION 1.7 Effect of Headings and Table of Contents........................16
SECTION 1.8 Successors and Assigns..........................................17
SECTION 1.9 Separability Clause.............................................17
SECTION 1.10 Benefits of Agreement...........................................17
SECTION 1.11 Governing Law...................................................17
SECTION 1.12 Legal Holidays..................................................17
SECTION 1.13 Counterparts....................................................18
SECTION 1.14 Inspection of Agreement.........................................18
ARTICLE II. Certificate Forms
SECTION 2.1 Forms of Certificates Generally.................................18
SECTION 2.2 Form of Agent's Certificate of Authentication...................19
ARTICLE III. The Units
SECTION 3.1 Title and Terms; Denominations..................................19
SECTION 3.2 Rights and Obligations Evidenced by the Certificates............19
SECTION 3.3 Execution, Authentication, Delivery and Dating..................20
SECTION 3.4 Temporary Certificates..........................................21
SECTION 3.5 Registration; Registration of Transfer and Exchange.............21
SECTION 3.6 Book-Entry Interests............................................23
SECTION 3.7 Notices to Holders..............................................23
SECTION 3.8 Appointment of Successor Clearing Agency........................24
SECTION 3.9 Definitive Certificates.........................................24
SECTION 3.10 Mutilated, Destroyed, Lost and Stolen Certificates..............24
SECTION 3.11 Persons Deemed Owners...........................................25
SECTION 3.12 Cancellation....................................................26
SECTION 3.13 Establishment of Treasury Units.................................26
SECTION 3.14 Re-establishment of Corporate Units.............................28
SECTION 3.15 Transfer of Collateral Upon Occurrence of Termination Event.....29
SECTION 3.16 No Consent to Assumption........................................29
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ARTICLE IV. The Notes
SECTION 4.1 Payment of Interest; Rights to Interest Payments Preserved;
Notice........................................................30
SECTION 4.2 Notice and Voting...............................................30
SECTION 4.3 Tax Event Redemption............................................31
SECTION 4.4 Consent to Treatment for Tax Purposes...........................32
ARTICLE V. The Purchase Contracts; the Remarketing
SECTION 5.1 Purchase of Shares of Common Stock..............................32
SECTION 5.2 Contract Adjustment Payments....................................34
SECTION 5.3 Deferral of Contract Adjustment Payments........................35
SECTION 5.4 Payment of Purchase Price; Remarketing..........................36
SECTION 5.5 Issuance of Shares of Common Stock..............................40
SECTION 5.6 Adjustment of Settlement Rate...................................41
SECTION 5.7 Notice of Adjustments and Certain Other Events..................46
SECTION 5.8 Termination Event; Notice.......................................47
SECTION 5.9 Early Settlement................................................47
SECTION 5.10 Early Settlement upon Cash Merger...............................49
SECTION 5.11 Charges and Taxes...............................................50
SECTION 5.12 No Fractional Shares............................................50
ARTICLE VI. Remedies
SECTION 6.1 Unconditional Right of Holders to Receive Purchase Contract
Adjustment Payments and Purchase Common Stock................51
SECTION 6.2 Restoration of Rights and Remedies..............................51
SECTION 6.3 Rights and Remedies Cumulative..................................51
SECTION 6.4 Delay or Omission Not Waiver....................................52
SECTION 6.5 Undertaking for Costs...........................................52
SECTION 6.6 Waiver of Stay or Extension Laws................................52
ARTICLE VII. The Agent
SECTION 7.1 Certain Duties and Responsibilities.............................52
SECTION 7.2 Notice of Default...............................................53
SECTION 7.3 Certain Rights of Agent.........................................54
SECTION 7.4 Not Responsible for Recitals, Etc...............................55
SECTION 7.5 May Hold Units and Other Dealings...............................55
SECTION 7.6 Money Held In Custody...........................................55
SECTION 7.7 Compensation and Reimbursement..................................55
SECTION 7.8 Corporate Agent Required; Eligibility...........................56
SECTION 7.9 Resignation and Removal; Appointment of Successor...............57
SECTION 7.10 Acceptance of Appointment by Successor..........................58
SECTION 7.11 Merger, Conversion, Consolidation or Succession to Business.....58
SECTION 7.12 Preservation of Information; Communications to Holders..........58
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SECTION 7.13 No Obligations of Agent.........................................59
SECTION 7.14 Tax Compliance..................................................59
ARTICLE VIII. Supplemental Agreements
SECTION 8.1 Supplemental Agreements without Consent of Holders..............59
SECTION 8.2 Supplemental Agreements with Consent of Holders.................60
SECTION 8.3 Execution of Supplemental Agreements............................61
SECTION 8.4 Effect of Supplemental Agreements...............................61
SECTION 8.5 Reference to Supplemental Agreements............................61
ARTICLE IX. Consolidation, Merger, Sale or Conveyance
SECTION 9.1 Covenant Not to Merge, Consolidate, Sell or Convey Property
Except Under Certain Conditions..............................62
SECTION 9.2 Rights and Duties of Successor Entity...........................62
SECTION 9.3 Opinion of Counsel Given to Agent...............................63
ARTICLE X. Covenants
SECTION 10.1 Performance Under Purchase Contracts............................63
SECTION 10.2 Maintenance of Office or Agency.................................63
SECTION 10.3 Company to Reserve Common Stock.................................63
SECTION 10.4 Covenants as to Common Stock....................................64
ARTICLE XI. Trust Indenture Act
SECTION 11.1 Trust Indenture Act; Application................................64
SECTION 11.2 Lists of Holders of Securities..................................64
SECTION 11.3 Reports by the Agent............................................64
SECTION 11.4 Periodic Reports to Agent.......................................65
SECTION 11.5 Evidence of Compliance with Conditions Precedent................65
SECTION 11.6 Defaults; Waiver................................................65
SECTION 11.7 Agent's Knowledge of Defaults...................................65
SECTION 11.8 Conflicting Interests...........................................66
SECTION 11.9 Direction of Agent..............................................66
EXHIBIT A Form of Corporate Units Certificate
EXHIBIT B Form of Treasury Units Certificate
EXHIBIT C Instruction from Purchase Contract Agent to Collateral Agent
EXHIBIT D Instruction to Purchase Contract Agent
EXHIBIT E Notice to Settle by Separate Cash
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PURCHASE CONTRACT AGREEMENT, dated as of _________, 200__, between National
Fuel Gas Company, a New Jersey corporation (the "Company"), and The Bank of New
York, a banking corporation of the State of New York, acting as purchase
contract agent, attorney-in-fact and trustee for the Holders of Units from time
to time (in any one or more of such capacities, the "Agent").
RECITALS
The Company has duly authorized the execution and delivery of this
Agreement and the Certificates evidencing the Units.
All things necessary to make the Purchase Contracts, when the Certificates
are executed by the Company and authenticated, executed on behalf of the Holders
and delivered by the Agent, as provided in this Agreement, the valid obligations
of the Company and the Holders, and to constitute this Agreement a valid
agreement of the Company, in accordance with its terms, have been done.
WITNESSETH:
For and in consideration of the premises and the purchase of the Units by
the Holders thereof, it is mutually agreed as follows:
ARTICLE I.
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 1.1 DEFINITIONS.
For all purposes of this Agreement, 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, and nouns and
pronouns of the masculine gender include the feminine and neuter genders;
(b) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles in
the United States; and
(c) the words "HEREIN," "HEREOF" and "HEREUNDER" and other words of similar
import refer to this Agreement as a whole and not to any particular Article,
Section or other subdivision;
"ACT" when used with respect to any Holder, has the meaning specified in
Section 1.4.
"AFFILIATE" has the same meaning as given to that term in Rule 405 of the
Securities Act or any successor rule thereunder.
"AGENT" means the Person named as the "Agent" in the first paragraph of
this instrument until a successor Agent shall have become such pursuant to the
applicable provisions of this Agreement, and thereafter "Agent" shall mean such
Person.
"AGENT-PURCHASED TREASURY CONSIDERATION" has the meaning specified in
Section 5.4(b)(i).
"AGREEMENT" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more agreements supplemental
hereto entered into pursuant to the applicable provisions hereof.
"APPLICABLE MARKET VALUE" has the meaning specified in Section 5.1(c).
"APPLICABLE OWNERSHIP INTEREST" means, with respect to a Corporate Unit and
the U.S. Treasury securities in the Treasury Portfolio, (A) a [1/40], or [2.5%],
undivided beneficial ownership interest in a $1,000 principal or interest amount
of a principal or interest strip in a U.S. Treasury security included in such
Treasury Portfolio which matures on or prior to _________, 200__ and (B) for the
scheduled interest Payment Date on the Notes that occurs on the Stock Purchase
Date, in the case of a successful remarketing pursuant to the provisions of
Section 5.4, or for each scheduled interest Payment Date on the Notes that
occurs after the Tax Event Redemption Date and on or before the Stock Purchase
Date, in the case of a Tax Event Redemption, a [2.5%] undivided beneficial
ownership interest in a $1,000 principal or interest of a principal or interest
strip in a U.S. Treasury security included in the Treasury Portfolio that
matures on or prior to that interest Payment Date or Dates.
"APPLICANTS" has the meaning specified in Section 7.12(b).
"AUTHORIZED OFFICER" means the Chairman of the Board, the President, any
Vice President, the Treasurer, any Assistant Treasurer, or any other officer or
agent of the Company duly authorized by the Board of Directors to act in respect
of matters relating to this Agreement.
"BANKRUPTCY CODE" means Title 11 of the United States Code, or any other
law of the United States that from time to time provides a uniform system of
bankruptcy laws.
"BENEFICIAL OWNER" means, with respect to a Book-Entry Interest, a Person
who is the beneficial owner of such Book-Entry Interest as reflected on the
books of the Clearing Agency or on the books of a Person maintaining an account
with such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).
"BOARD OF DIRECTORS" means the Board of Directors of the Company or the
Executive Committee of such Board or any other duly authorized committee of such
Board.
"BOARD RESOLUTION" means (i) a copy of a resolution certified by the
Secretary or the 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, (ii) a copy of a unanimous written consent of the Board of
Directors or (iii) a certificate signed by the authorized officer or officers to
2
whom the Board of Directors has delegated its authority, and in each case,
delivered to the Agent.
"BOOK-ENTRY INTEREST" means a beneficial interest in a Global Certificate,
ownership and transfers of which shall be maintained and made through book
entries by a Clearing Agency as described in Section 3.6.
"BUSINESS DAY" means any day that is not a Saturday, Sunday or day on which
banking institutions and trust companies in the State of New York or at any
other place of payment are authorized or required by law, regulation or
executive order to close.
"CAPITAL STOCK" means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in
(however designated, whether voting or non-voting) corporate stock or similar
interests in other types of entities.
"CASH MERGER" has the meaning set forth in Section 5.10.
"CASH SETTLEMENT" has the meaning set forth in Section 5.4(a).
"CERTIFICATE" means a Corporate Units Certificate or a Treasury Units
Certificate.
"CLEARING AGENCY" means an organization registered as a "Clearing Agency"
pursuant to Section 17A of the Exchange Act that is acting as a depositary for
the Units and in whose name, or in the name of a nominee of that organization,
shall be registered a Global Certificate and which shall undertake to effect
book-entry transfers and pledges of the Units.
"CLEARING AGENCY PARTICIPANT" means a broker, dealer, bank, trust company,
clearing corporation, other financial institution or other Person for whom from
time to time the Clearing Agency effects book-entry transfers and pledges of
securities deposited with the Clearing Agency.
"CLOSING PRICE" has the meaning specified in Section 5.1(c).
"COLLATERAL" has the meaning specified in Section 2.1(a)(iii) of the Pledge
Agreement.
"COLLATERAL AGENT" means ____________________, a _____________________, as
Collateral Agent under the Pledge Agreement until a successor Collateral Agent
shall have become such pursuant to the applicable provisions of the Pledge
Agreement, and thereafter "Collateral Agent" shall mean the Person who is then
the Collateral Agent thereunder.
"COLLATERAL SUBSTITUTION" has the meaning specified in Section 3.13(a).
"COMMON STOCK" means the common stock, par value $1.00 per share, of the
Company including, where applicable, the common stock purchase rights attached
thereto.
"COMPANY" means the Person named as the "Company" in the first paragraph of
this instrument until a successor shall have become such pursuant to the
applicable provisions of this Agreement, and thereafter "Company" shall mean
such successor.
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"COMPANY CERTIFICATE" means a certificate signed by an Authorized Officer
and delivered to the Agent.
"CONSTITUENT PERSON" has the meaning specified in Section 5.6(b).
"CONTRACT ADJUSTMENT PAYMENTS" means, in the case of Corporate Units and
Treasury Units, the amount payable by the Company in respect of each Purchase
Contract constituting a part of such Unit, which amount shall be equal to
______% per year of the Stated Amount, in each case computed (i) for any full
quarterly period on the basis of a 360-day year of twelve 30-day months and (ii)
for any period shorter than a full quarterly period, on the basis of a 30-day
month, and for periods of less than a month, on the basis of the actual number
of days elapsed per 30-day month, plus any Deferred Contract Adjustment Payments
accrued pursuant to Section 5.3.
"CORPORATE TRUST OFFICE" means the corporate trust office of the Agent at
which, at any particular time, its corporate trust business shall be principally
administered, which office at the date hereof is located at The Bank of New
York, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000.
"CORPORATE UNIT" means the collective rights and obligations of a Holder of
a Corporate Units Certificate in respect of a Note or the appropriate Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, subject in each case to the Pledge thereof, and the related
Purchase Contract.
"CORPORATE UNITS CERTIFICATE" means a certificate evidencing the rights and
obligations of a Holder in respect of the number of Corporate Units specified on
such certificate, substantially in the form of Exhibit A hereto.
"CORPORATE UNITS REGISTER" and "CORPORATE UNITS REGISTRAR" have the
respective meanings specified in Section 3.5(a).
"COUPON RATE" means the percentage rate per annum at which each Note will
bear interest initially.
"CURRENT MARKET PRICE" has the meaning specified in Section 5.6(a)(8).
"CUSTODIAL AGENT" means ____________________, a _____________________, as
Custodial Agent under the Pledge Agreement until a successor Custodial Agent
shall have become such pursuant to the applicable provisions of the Pledge
Agreement, and thereafter Custodial Agent shall mean the Person who is then the
Custodial Agent thereunder.
"DEFAULT" means a default by the Company in any of its obligations under
this Agreement.
"DEFERRED CONTRACT ADJUSTMENT PAYMENTS" has the meaning specified in
Section 5.3(a).
4
"DEPOSITARY" means, initially, DTC until another Clearing Agency becomes
its successor.
"DTC" means The Depository Trust Company, the initial Clearing Agency.
"EARLY SETTLEMENT" has the meaning specified in Section 5.9(a).
"EARLY SETTLEMENT AMOUNT" has the meaning specified in Section 5.9(a).
"EARLY SETTLEMENT DATE" has the meaning specified in Section 5.9(a).
"EARLY SETTLEMENT RATE" has the meaning specified in Section 5.9(b).
"EXCHANGE ACT" means the Securities Exchange Act of 1934 and any statute
successor thereto, in each case as amended from time to time, and the rules and
regulations promulgated thereunder.
"EXPIRATION DATE" has the meaning specified in Section 1.4(f).
"EXPIRATION TIME" has the meaning specified in Section 5.6(a)(6).
"FAILED REMARKETING" has the meaning specified in Section 5.4(b)(ii).
"FAIR MARKET VALUE" with respect to securities distributed in a Spin-Off
means (a) in the case of any Spin-Off that is effected simultaneously with an
Initial Public Offering of such securities, the initial public offering price of
those securities, and (b) in the case of any other Spin-Off, (i) the average of
the Sale Price of those securities over the first ten Trading Days after the
effective date of such Spin-Off or (ii) if the Sale Price is required to be
defined without regard to the price on any Trading Days, the Sale Price as of
the effective date of such Spin-Off.
"GLOBAL CERTIFICATE" means a Certificate that evidences all or part of the
Units and is registered in the name of the Depositary or a nominee thereof.
"HOLDER" means the Person in whose name the Unit evidenced by a Corporate
Units Certificate and/or a Treasury Units Certificate is registered in the
related Corporate Units Register and/or the Treasury Units Register, as the case
may be.
"INDENTURE" means the Indenture, dated as of October 1, 1999, between the
Company and the Indenture Trustee pursuant to which the Notes are to be issued,
as originally executed and delivered and as it may from time to time be
supplemented or amended by one or more indentures supplemental thereto entered
into pursuant to the applicable provisions thereof and shall include the terms
of a particular series established as contemplated by Section 2.05(c) thereof.
"INDENTURE TRUSTEE" means The Bank of New York, a banking corporation of
the State of New York, as trustee under the Indenture, or any successor thereto.
5
"INITIAL PUBLIC OFFERING" with respect to a Spin-Off means the first time
securities of the same class or type as the securities being distributed in such
Spin-Off are bona fide offered to the public for cash.
"ISSUER ORDER" or "ISSUER REQUEST" means a written order or request signed
in the name of the Company by an Authorized Officer and delivered to the Agent.
"LAST FAILED REMARKETING" has the meaning specified in Section 5.4(b)(ii).
"MERGER EARLY SETTLEMENT" has the meaning specified in Section 5.10(a).
"MERGER EARLY SETTLEMENT AMOUNT" has the meaning specified in Section
5.10(b).
"MERGER EARLY SETTLEMENT DATE" has the meaning specified in Section
5.10(a).
"NON-ELECTING SHARE" has the meaning specified in Section 5.6(b).
"NOTES" means the series of debt securities of the Company designated the
"Notes due _________, 200__", to be issued under the Indenture.
"NYSE" has the meaning specified in Section 5.1(c).
"OPINION OF COUNSEL" means an opinion in writing signed by legal counsel,
who may be an employee of or counsel to the Company or an Affiliate and who
shall be reasonably acceptable to the Agent.
"OPT-OUT TREASURY CONSIDERATION" has meaning specified in Section
5.4(b)(iv).
"OUTSTANDING UNITS" means, as of the date of determination, all Corporate
Units or Treasury Units evidenced by Certificates theretofore authenticated,
executed and delivered under this Agreement, except:
(i) If a Termination Event has occurred, (A) Treasury Units
and (B) Corporate Units for which the related Note or the appropriate
Treasury Consideration or Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, has been theretofore deposited with the
Agent in trust for the Holders of such Corporate Units;
(ii) Corporate Units and Treasury Units evidenced by
Certificates theretofore cancelled by the Agent or delivered to the
Agent for cancellation or deemed cancelled pursuant to the provisions
of this Agreement; and
(iii) Corporate Units and Treasury Units evidenced by
Certificates in exchange for or in lieu of which other Certificates
have been authenticated, executed on behalf of the Holder and delivered
pursuant to this Agreement, other than any such Certificate in respect
of which there shall have been presented to the Agent proof
satisfactory to it that such Certificate is held by a bona fide
purchaser in whose hands the Corporate Units or Treasury Units
evidenced by such Certificate are valid obligations of the Company;
6
provided, however, that in determining whether the Holders of the requisite
number of the Corporate Units or Treasury Units have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Corporate Units
or Treasury Units owned by the Company or any Affiliate of the Company shall be
disregarded and deemed not to be outstanding, except that, in determining
whether the Agent shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Corporate Units or
Treasury Units which a Responsible Officer of the Agent knows to be so owned
shall be so disregarded. Corporate Units or Treasury Units so owned which have
been pledged in good faith may be regarded as Outstanding Units if the pledgee
establishes to the satisfaction of the Agent the pledgee's right so to act with
respect to such Corporate Units or Treasury Units and that the pledgee is not
the Company or any Affiliate of the Company.
"PAYMENT DATE" means each _________, _________, _________ and _________,
commencing _________, 200__.
"PERSON" means a legal person, including any individual, corporation,
limited liability company, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government or any agency or
political subdivision thereof or any other entity of whatever nature.
"PLEDGE" means the pledge under the Pledge Agreement of the Notes, the
Treasury Securities or the appropriate Treasury Consideration or Applicable
Ownership Interest in the Treasury Portfolio, in each case constituting a part
of the Units, property, cash, securities, financial assets and security
entitlements of the Collateral Account (as defined in the Pledge Agreement) and
any Proceeds (as defined in the Pledge Agreement) of any of the foregoing.
"PLEDGE AGREEMENT" means the Pledge Agreement, dated as of the date hereof,
by and among the Company, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Agent, on its own behalf and as attorney-in-fact
for the Holders from time to time of the Units.
"PLEDGED APPLICABLE OWNERSHIP INTEREST IN THE TREASURY PORTFOLIO" has the
meaning set forth in Section 2.1(c) of the Pledge Agreement.
"PLEDGED NOTES" has the meaning set forth in Section 2.1(c) of the Pledge
Agreement.
"PLEDGED TREASURY CONSIDERATION" has the meaning set forth in Section
2.1(c) of the Pledge Agreement.
"PLEDGED TREASURY SECURITIES" has the meaning set forth in Section 2.1(c)
of the Pledge Agreement.
"PREDECESSOR CERTIFICATE" means a Predecessor Corporate Units Certificate
or a Predecessor Treasury Units Certificate.
"PREDECESSOR CORPORATE UNITS CERTIFICATE" of any particular Corporate Units
Certificate means every previous Corporate Units Certificate evidencing all or a
portion of the rights and obligations of the Company and the Holder under the
7
Corporate Units evidenced thereby; and, for the purposes of this definition, any
Corporate Units Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Corporate
Units Certificate shall be deemed to evidence the same rights and obligations of
the Company and the Holder as the mutilated, destroyed, lost or stolen Corporate
Units Certificate.
"PREDECESSOR TREASURY UNITS CERTIFICATE" of any particular Treasury Units
Certificate means every previous Treasury Units Certificate evidencing all or a
portion of the rights and obligations of the Company and the Holder under the
Treasury Units evidenced thereby; and, for the purposes of this definition, any
Treasury Units Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Treasury Units
Certificate shall be deemed to evidence the same rights and obligations of the
Company and the Holder as the mutilated, destroyed, lost or stolen Treasury
Units Certificate.
"PURCHASE CONTRACT," when used with respect to any Unit, means the contract
forming a part of such Unit and obligating the Company to sell and the Holder of
such Unit to purchase Common Stock on the terms and subject to the conditions
set forth in Article V.
"PURCHASE CONTRACT SETTLEMENT FUND" has the meaning specified in Section
5.5.
"PURCHASE PRICE" has the meaning specified in Section 5.1(a).
"PURCHASED SHARES" has the meaning specified in Section 5.6(a)(6).
"QUOTATION AGENT" means each of _________________ and _________________
or any of their respective successors or any other primary U.S. government
securities dealer in New York City selected by the Company.
"RECORD DATE" for the payment of distributions payable on any Payment Date
means, as to any Global Certificate, the Business Day next preceding such
Payment Date, and as to any other Certificate, the 15th calendar day preceding
such Payment Date.
"REDEMPTION AMOUNT" means, for each Note, the product of (i) the principal
amount of such Note and (ii) a fraction whose numerator is the applicable
Treasury Portfolio Purchase Price and whose denominator is the applicable Tax
Event Redemption Principal Amount.
"REDEMPTION PRICE" means the amount per Note equal to the Redemption Amount
plus any accrued and unpaid interest on such Note to the date of redemption.
"REGISTER" means the Corporate Units Register and the Treasury Units
Register, as applicable.
"REGISTRAR" means the Corporate Units Registrar and the Treasury Units
Registrar, as applicable.
"REMARKETING AGENT" has the meaning specified in Section 5.4(b)(i).
8
"REMARKETING AGREEMENT" means the Remarketing Agreement dated as of
_________, 200__, by and among the Company, the Remarketing Agent and the Agent.
"REMARKETING DATE" means the third business day preceding _________, 200__.
"REMARKETING FEE" has the meaning specified in Section 5.4(b)(i).
"REMARKETING PERIOD" means either (i) the three Business Day period
beginning on the Remarketing Date and ending after the two immediately following
Business Days; (ii) the three Business Day period immediately preceding
_________, 200__; or (iii) the third Business Day immediately preceding
_________, 200__.
"REMARKETING RATE" means the percentage rate per year at which each Note
will bear interest after a successful remarketing of the Notes pursuant to the
provisions of Section 5.4.
"REMARKETING VALUE" means the sum of
(i) the value at the Remarketing Date or any Subsequent
Remarketing Date, as the case may be, of U.S. Treasury securities that
will pay, on or prior to the Stock Purchase Date, an amount of cash
equal to the aggregate interest payments that are scheduled to be
payable on that date on the Notes which are included in Corporate Units
and are participating in the remarketing, assuming for that purpose,
even if not true, that the interest rate on the Notes is equal to the
Coupon Rate, and
(ii) the value at the Remarketing Date or any Subsequent
Remarketing Date, as the case may be, of U.S. Treasury securities that
will pay, on or prior to the Stock Purchase Date, an amount of cash
equal to the Stated Amount of such Notes that are included in Corporate
Units and which are participating in the remarketing,
provided that for purposes of clauses (i) and (ii) above, the Remarketing Value
shall be calculated on the assumptions that (x) the U.S. Treasury securities are
highly liquid and mature on or within 35 days prior to the Stock Purchase Date,
as determined in good faith by the Remarketing Agent in a manner intended to
minimize the cash value of the U.S. Treasury securities, and (y) the U.S.
Treasury securities are valued based on the ask-side price of the U.S. Treasury
securities at a time between 9:00 a.m. and 11:00 a.m., New York City time,
selected by the Remarketing Agent, on the Remarketing Date or any Subsequent
Remarketing Date, as the case may be, as determined on a third-day settlement
basis by a reasonable and customary means selected in good faith by the
Remarketing Agent, plus accrued interest to that date.
"REORGANIZATION EVENT" has the meaning specified in Section 5.6(b).
"RESPONSIBLE OFFICER" when used with respect to the Agent, means any
officer within the corporate trust department of the Agent (or any successor of
the Agent), including any Vice President, any assistant Vice President, any
assistant treasurer, any trust officer or any other officer of the Agent who
customarily performs functions similar to those performed by the Persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person's knowledge of and familiarity with
the particular subject.
9
"SALE PRICE" of any securities distributed in a Spin-Off on any Trading Day
means the closing sale price per share (or if no closing sale price is reported,
the average of the bid and ask prices or, if more than one in either case, the
average of the average bid and the average asked prices) on such Trading Day as
reported in composite transactions for the principal U.S. securities exchange on
which such securities are traded or, if such securities are not listed on a U.S.
national or regional securities exchange, as reported by The Nasdaq Stock
Market, or if such securities are not so reported, the last quoted bid price for
such securities in the over-the-counter market as reported by the National
Quotation Bureau or similar organization, or, if such bid price is not
available, the market value of such securities on such date as determined by a
nationally recognized independent investment banking firm retained by the
Company for this purpose.
"SECURITIES ACT" means the Securities Act of 1933, and any statute
successor thereto, in each case as amended from time to time, and the rules and
regulations promulgated thereunder.
"SECURITIES INTERMEDIARY" means ____________________, a
_____________________, in its capacity as Securities Intermediary under the
Pledge Agreement, together with its successors in such capacity.
"SENIOR INDEBTEDNESS" means indebtedness of any kind of the Company unless
the instrument under which such indebtedness is incurred expressly provides that
it is in parity or subordinate in right of payment to the Contract Adjustment
Payments.
"SEPARATE NOTES" has the meaning set forth in the Pledge Agreement.
"SETTLEMENT DATE" means any Early Settlement Date or Merger Early
Settlement Date or the Stock Purchase Date.
"SETTLEMENT RATE" has the meaning specified in Section 5.1(a).
"SPIN-OFF" means a dividend or other distribution on the Common Stock of
shares of Capital Stock of any class or series, or similar equity interests, of
or relating to a subsidiary or other business unit of the Company.
"STATED AMOUNT" means, with respect to any one Note, Corporate Unit or
Treasury Unit, [$25].
"STOCK PURCHASE DATE" means _________, 200__.
"SUBSEQUENT REMARKETING DATE" means, provided there has been one or more
Failed Remarketings, the date on which the Remarketing Agent has consummated a
successful remarketing in accordance with Section 5.4 hereof, such date to be no
later than the third Business Day immediately preceding the Stock Purchase Date.
"TAX EVENT" means the receipt by the Company of an opinion of a nationally
recognized tax counsel experienced in such matters, which may be Xxxxxx Xxxx &
Priest LLP, to the effect that there is more than an insubstantial risk that
interest payable by the Company on the Notes on the next Payment Date will not
10
be deductible, in whole or in part, by the Company for United States federal
income tax purposes as a result of (a) any amendment to, or change (including
any announced proposed change) in, the laws (or any regulations thereunder) of
the United States or any political subdivision or taxing authority thereof or
therein affecting taxation, (b) any amendment to or change in an official
interpretation or application of such laws or regulations by any legislative
body, court, governmental agency or regulatory authority or (c) any official
interpretation or pronouncement that provides for a position with respect to
such laws or regulations that differs from the generally accepted position on
_________, 200__, which amendment, change or proposed change is effective or
which interpretation or pronouncement is announced on or after _________, 200__.
"TAX EVENT REDEMPTION" means, if a Tax Event shall occur and be continuing,
the redemption of the Notes, at the option of the Company, in whole but not in
part, on not less than 30 days nor more than 60 days prior written notice.
"TAX EVENT REDEMPTION DATE" means the date on which a Tax Event Redemption
is to occur.
"TAX EVENT REDEMPTION PRINCIPAL AMOUNT" means (i) in the case of a Tax
Event Redemption Date occurring prior to a successful remarketing of the Notes
pursuant to the provisions of Section 5.4, the aggregate principal amount of
Notes included in Corporate Units on such date, and (ii) in the case of a Tax
Event Redemption Date occurring after a successful remarketing of the Notes
pursuant to the provisions of Section 5.4, the aggregate principal amount of the
Notes.
"TERMINATION DATE" means the date, if any, on which a Termination Event
occurs.
"TERMINATION EVENT" means the occurrence of any of the following events:
(i) at any time on or prior to the Stock Purchase Date, a
judgment, decree or court order shall have been entered granting relief
under the Bankruptcy Code or any other similar federal or state law,
adjudicating the Company to be insolvent, or approving as properly
filed a petition seeking reorganization or liquidation of the Company,
and, unless such judgment, decree or order shall have been entered
within 60 days prior to the Stock Purchase Date, such decree or order
shall have continued undischarged and unstayed for a period of 60 days;
(ii) at any time on or prior to the Stock Purchase Date, a
judgment, decree or court order for the appointment of a receiver or
liquidator or trustee or assignee in bankruptcy or insolvency of the
Company or of its property, or for the winding up or liquidation of its
affairs, shall have been entered, and, unless such judgment, decree or
order shall have been entered within 60 days prior to the Stock
Purchase Date, such judgment, decree or order shall have continued
undischarged and unstayed for a period of 60 days; or
(iii) at any time on or prior to the Stock Purchase Date, the
Company shall file a petition for relief under the Bankruptcy Code or
any other similar federal or state law, or shall consent to the filing
of a bankruptcy proceeding against it, or shall file a petition or
11
answer or consent seeking reorganization or liquidation under the
Bankruptcy Code or any other similar federal or state law, or shall
consent to the filing of any such petition, or shall consent to the
appointment of a receiver or liquidator or trustee or assignee in
bankruptcy or insolvency of it or of its property, or shall make an
assignment for the benefit of creditors, or shall admit in writing its
inability to pay its debts generally as they become due.
"THRESHOLD APPRECIATION PRICE" has the meaning specified in Section
5.1(a)(i).
"TIA" means the Trust Indenture Act of 1939, and any statute successor
thereto, in each case as amended from time to time, and the rules and
regulations promulgated thereunder.
"TRADING DAY" has the meaning specified in Section 5.1(c).
"TREASURY CONSIDERATION" means the Agent-purchased Treasury Consideration
or the Opt-out Treasury Consideration.
"TREASURY PORTFOLIO" means: (i) if a Tax Event Redemption occurs prior to a
successful remarketing of the Notes pursuant to the provisions of Section 5.4, a
portfolio of zero-coupon U.S. Treasury securities consisting of principal or
interest strips of U.S. Treasury securities that mature on or prior to the Stock
Purchase Date in an aggregate amount equal to the applicable Tax Event
Redemption Principal Amount and with respect to each scheduled interest Payment
Date on the Notes that occurs after the Tax Event Redemption Date and on or
before the Stock Purchase Date, interest or principal strips of U.S. Treasury
securities that mature on or prior to such interest Payment Date in an aggregate
amount equal to the aggregate interest payment that would be due on the
applicable Tax Event Redemption Principal Amount on such date if the interest
rate of the Notes were not reset on the applicable Remarketing Date, and (ii)
solely for purposes of determining the Treasury Portfolio Purchase Price in the
case of a Tax Event Redemption Date occurring after a successful remarketing of
the Notes pursuant to the provisions of Section 5.4, a portfolio of zero-coupon
U.S. Treasury securities consisting of principal or interest strips of U.S.
Treasury securities that mature on or prior to _________, 200__ in an aggregate
amount equal to the applicable Tax Event Redemption Principal Amount and with
respect to each scheduled interest Payment Date on the Notes that occurs after
the Tax Event Redemption Date and on or before _________, 200__, interest or
principal strips of U.S. Treasury securities that mature on or prior to such
interest Payment Date in an aggregate amount equal to the aggregate interest
payment that would be due on the applicable Tax Event Redemption Principal
Amount of the Notes outstanding on the Tax Event Redemption Date.
"TREASURY PORTFOLIO PURCHASE PRICE" means the lowest aggregate price quoted
by a primary U.S. government securities dealer in New York City to the Quotation
Agent on the third Business Day immediately preceding the Tax Event Redemption
Date for the purchase of the Treasury Portfolio for settlement on the Tax Event
Redemption Date.
"TREASURY SECURITY" means a zero-coupon U.S. Treasury security (CUSIP
Number _________) maturing on the Stock Purchase Date that will pay $1,000 on
such maturity date.
"TREASURY UNIT" means the collective rights and obligations of a Holder of
a Treasury Units Certificate in respect of a [1/40] undivided beneficial
interest in a Treasury Security, subject to the Pledge thereof, and the related
Purchase Contract.
12
"TREASURY UNITS CERTIFICATE" means a certificate evidencing the rights and
obligations of a Holder in respect of the number of Treasury Units specified on
such certificate, substantially in the form of Exhibit B hereto.
"TREASURY UNITS REGISTER" and "TREASURY UNITS REGISTRAR" have the
respective meanings specified in Section 3.5(a).
"UNDERWRITING AGREEMENT" means the Underwriting Agreement relating to the
Units dated _________, 200__ among the Company and the underwriters named
therein.
"UNIT" means a Corporate Unit or a Treasury Unit.
"VICE-PRESIDENT" means any vice-president, whether or not designated by a
number or a word or words added before or after the title "Vice-President."
SECTION 1.2 COMPLIANCE CERTIFICATES AND OPINIONS.
Except as otherwise expressly provided by this Agreement, upon any
application or request by the Company to the Agent to take any action under any
provision of this Agreement, the Company shall furnish to the Agent a Company
Certificate stating that all conditions precedent, if any, provided for in this
Agreement relating to the proposed action have been complied with and, if
requested by the Agent, 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
Agreement relating to such particular application or request, no additional
certificate or opinion need be furnished.
Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Agreement shall include:
(a) a statement that each individual signing such certificate or opinion
has read such covenant or condition and the definitions herein relating thereto;
(b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(c) a statement that, in the opinion of each such individual, he or she has
made such examination or investigation as is necessary to enable such 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 such individual, such
condition or covenant has been complied with.
SECTION 1.3 FORM OF DOCUMENTS DELIVERED TO AGENT.
(a) 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
13
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.
(b) Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be consolidated and
form one instrument.
SECTION 1.4 ACTS OF HOLDERS; RECORD DATES.
(a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Agreement to be given or taken by Holders may
be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Agent 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. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Agreement
and (subject to Section 7.1) conclusive in favor of the Agent and the Company,
if made in the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such instrument
or writing may be proved in any manner which the Agent deems sufficient.
(c) The ownership of Units shall be proved by the Corporate Units Register
or the Treasury Units Register, as the case may be.
(d) Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Certificate shall bind every future Holder of
the same Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Agent or the
Company in reliance thereon, whether or not notation of such action is made upon
such Certificate.
(e) The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Units entitled to give, make or take any
14
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Agreement to be given, made or taken by
Holders of Units. If any record date is set pursuant to this paragraph, the
Holders of the Outstanding Corporate Units and the Outstanding Treasury Units,
as the case may be, on such record date, and no other Holders, shall be entitled
to take the relevant action with respect to the Corporate Units or the Treasury
Units, as the case may be, whether or not such Holders remain Holders after such
record date; provided that no such action shall be effective hereunder unless
taken on or prior to the applicable Expiration Date by Holders of the requisite
number of Outstanding Units on such record date. Nothing in this paragraph shall
be construed to prevent the Company from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be cancelled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite number of Outstanding Units on the date such action is taken.
Promptly after any record date is set pursuant to this paragraph, the Company,
at its own expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Agent in
writing and to each Holder of Units in the manner set forth in Section 1.6.
(f) With respect to any record date set pursuant to this Section, the
Company may designate any date as the "Expiration Date" and from time to time
may change the Expiration Date to any earlier or later day; provided that no
such change shall be effective unless notice of the proposed new Expiration Date
is given to the Agent in writing, and to each Holder of Units in the manner set
forth in Section 1.6, on or prior to the existing Expiration Date. If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the Company shall be deemed to have initially designated the
180th day after such record date as the Expiration Date with respect thereto,
subject to its right to change the Expiration Date as provided in this
paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than
the 180th day after the applicable record date.
SECTION 1.5 NOTICES.
Any request, demand, authorization, direction, notice, consent, waiver or
Act of Holders or other document provided or permitted by this Agreement to be
made upon, given or furnished to, or filed with:
(a) the Agent 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 and personally delivered, mailed, first-class
postage prepaid, telecopied or delivered by overnight air courier guaranteeing
next day delivery, to the Agent at The Bank of New York, 000 Xxxxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000, Attention: Corporate Trust Administration, telecopy: (212)
______ or at any other address furnished in writing by the Agent to the Holders
and the Company; or
(b) the Company by the Agent or by any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if made, given,
furnished or filed in writing and personally delivered, mailed, first-class
postage prepaid, telecopied or delivered by overnight air courier guaranteeing
15
next day delivery, to the Company at National Fuel Gas Company, 00 Xxxxxxxxx
Xxxxxx, Xxxxxxx, Xxx Xxxx 00000, telecopy: (716) ___-____, Attention: _________,
or at any other address furnished in writing to the Agent by the Company; or
(c) the Collateral Agent by the Agent, the Company or any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if made, given, furnished or filed in writing and personally
delivered, mailed, first-class postage prepaid, telecopied or delivered by
overnight air courier guaranteeing next day delivery, addressed to the
Collateral Agent at ____________________, ____________________,
____________________, Attention: ____________________, telecopy: (___)
___________ or at any other address furnished in writing by the Collateral Agent
to the Agent, the Company and the Holders; or
(d) the Indenture Trustee by the Company shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if made, given,
furnished or filed in writing and personally delivered, mailed, first-class
postage prepaid, telecopied or delivered by overnight air courier guaranteeing
next day delivery, addressed to the Indenture Trustee at The Bank of New York,
000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Corporate Trust
Administration, telecopy: (___)___________ or at any other address furnished in
writing by the Trustee to the Company.
SECTION 1.6 NOTICE TO HOLDERS; WAIVER.
(a) Where this Agreement provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at its address as it appears in the applicable Register, not
later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice. In any case where notice to Holders is given by
mail, neither the failure to mail such notice nor any defect in any notice so
mailed to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Where this Agreement 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
Agent, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
(b) In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Agent shall
constitute a sufficient notification for every purpose hereunder.
SECTION 1.7 EFFECT OF HEADINGS AND TABLE OF CONTENTS.
The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.
16
SECTION 1.8 SUCCESSORS AND ASSIGNS.
All covenants and agreements in this Agreement by the Company shall bind
its successors and assigns, whether so expressed or not.
SECTION 1.9 SEPARABILITY CLAUSE.
In case any provision in this Agreement or in the Units shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions hereof and thereof shall not in any way be affected or
impaired thereby.
SECTION 1.10 BENEFITS OF AGREEMENT.
Nothing in this Agreement or in the Units, express or implied, shall give
to any Person, other than the parties hereto and their successors hereunder and,
to the extent provided hereby, the Holders, any benefits or any legal or
equitable right, remedy or claim under this Agreement. The Holders from time to
time shall be beneficiaries of this Agreement and shall be bound by all of the
terms and conditions hereof and of the Units evidenced by their Certificates by
their acceptance of delivery of such Certificates.
SECTION 1.11 GOVERNING LAW.
This Agreement and the Units shall be governed by and deemed to be a
contract under, and construed in accordance with, the laws of the State of New
York, without regard to conflicts of laws principles thereof.
SECTION 1.12 LEGAL HOLIDAYS.
(a) In any case where any Payment Date shall not be a Business Day, then
(notwithstanding any other provision of this Agreement or the Certificates)
payments on the Notes or the payment of Contract Adjustment Payments shall not
be made on such date, but such payments shall be made on the next succeeding
Business Day with the same force and effect as if made on such Payment Date,
provided that no interest or additional payment shall accrue or be payable by
the Company for the period from and after any such Payment Date, except that if
such next succeeding Business Day is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day with the same
force and effect as if made on such Payment Date.
(b) In any case where the Stock Purchase Date shall not be a Business Day,
then (notwithstanding any other provision of this Agreement or the
Certificates), the Purchase Contracts shall not be performed on such date, but
the Purchase Contracts shall be performed on the next succeeding Business Day
with the same force and effect as if performed on the Stock Purchase Date.
17
SECTION 1.13 COUNTERPARTS.
This Agreement may be executed in any number of counterparts by the parties
hereto on separate counterparts, each of which, when so executed and delivered,
shall be deemed an original, but all such counterparts shall together constitute
one and the same instrument.
SECTION 1.14 INSPECTION OF AGREEMENT.
A copy of this Agreement shall be available at all reasonable times during
normal business hours at the Corporate Trust Office for inspection by any
Holder.
ARTICLE II.
CERTIFICATE FORMS
SECTION 2.1 FORMS OF CERTIFICATES GENERALLY.
(a) The Corporate Units Certificates (including the form of Purchase
Contract forming part of the Corporate Units evidenced thereby) shall be in
substantially the form set forth in Exhibit A hereto, with such letters, numbers
or other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as may be required by the rules of any
securities exchange or quotation system on which the Corporate Units are listed
or quoted for trading or any depositary therefor, or as may, consistently
herewith, be determined by the officers of the Company executing such Corporate
Units Certificates, as evidenced by their execution of the Corporate Units
Certificates.
(b) The definitive Corporate Units Certificates shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers of the Company executing such
Corporate Units Certificates, consistent with the provisions of this Agreement,
as evidenced by their execution thereof.
(c) The Treasury Units Certificates (including the form of Purchase
Contract forming part of the Treasury Units evidenced thereby) shall be in
substantially the form set forth in Exhibit B hereto, with such letters, numbers
or other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as may be required by the rules of any
securities exchange or the quotation system on which the Treasury Units may be
listed or quoted for trading or any depositary therefor, or as may, consistently
herewith, be determined by the officers of the Company executing such Treasury
Units Certificates, as evidenced by their execution of the Treasury Units
Certificates.
(d) The definitive Treasury Units Certificates shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers of the Company executing such
Treasury Units Certificates, consistent with the provisions of this Agreement,
as evidenced by their execution thereof.
(e) Every Global Certificate authenticated, executed on behalf of the
Holders and delivered hereunder shall bear a legend in substantially the
following form:
18
THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE
CONTRACT AGREEMENT (AS HEREINAFTER DEFINED) AND IS REGISTERED IN THE NAME OF THE
CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS
CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company (55 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx) to the Company or
its agent for registration of transfer, exchange or payment, and any Certificate
issued is registered in the name of Cede & Co., or such other name as requested
by an authorized representative of The Depository Trust Company, and any payment
hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede &
Co., has an interest herein.
SECTION 2.2 FORM OF AGENT'S CERTIFICATE OF AUTHENTICATION.
(a) The form of the Agent's certificate of authentication of the Corporate
Units shall be in substantially the form set forth on the form of the Corporate
Units Certificates.
(b) The form of the Agent's certificate of authentication of the Treasury
Units shall be in substantially the form set forth on the form of the Treasury
Units Certificates.
ARTICLE III.
THE UNITS
SECTION 3.1 TITLE AND TERMS; DENOMINATIONS.
(a) The aggregate number of Corporate Units and Treasury Units, if any,
evidenced by Certificates authenticated, executed on behalf of the Holders and
delivered hereunder is limited to _________ (_________ if the Underwriters' (as
defined in the Underwriting Agreement) option to purchase additional Corporate
Units pursuant to the Underwriting Agreement is exercised in full), except for
Certificates authenticated, executed and delivered upon registration of transfer
of, in exchange for, or in lieu of, other Certificates pursuant to Section 3.4,
3.5, 3.10, 3.13, 3.14, 5.9, 5.10 or 8.5.
(b) The Certificates shall be issuable only in registered form and only in
denominations of a single Unit and any integral multiple thereof.
SECTION 3.2 RIGHTS AND OBLIGATIONS EVIDENCED BY THE CERTIFICATES.
(a) Each Corporate Units Certificate shall evidence the number of Corporate
Units specified therein, with each such Corporate Unit representing the
ownership by the Holder thereof of a beneficial interest in a Note or the
appropriate Treasury Consideration or Applicable Ownership Interest in the
19
Treasury Portfolio, as the case may be, subject to the Pledge of such Note,
Treasury Consideration or Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, by such Holder pursuant to the Pledge Agreement,
and the rights and obligations of the Holder thereof and the Company under one
Purchase Contract. The Agent as attorney-in-fact for, and on behalf of, the
Holder of each Corporate Unit shall pledge, pursuant to the Pledge Agreement,
the Note or the appropriate Treasury Consideration or Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, forming a part of such
Corporate Unit, to the Collateral Agent and grant to the Collateral Agent a
security interest in the right, title and interest of such Holder in such Note,
Treasury Consideration or Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, for the benefit of the Company, to secure the
obligation of the Holder under each Purchase Contract to purchase the Common
Stock of the Company. Prior to the purchase of shares of Common Stock under each
Purchase Contract, such Purchase Contracts shall not entitle the Holders of
Corporate Units Certificates to any of the rights of a holder of shares of
Common Stock, including, without limitation, the right to vote or receive any
dividends or other payments or to consent or to receive notice as stockholders
in respect of the meetings of stockholders or for the election of directors of
the Company or for any other matter, or any other rights whatsoever as
stockholders of the Company.
(b) Each Treasury Units Certificate shall evidence the number of Treasury
Units specified therein, with each such Treasury Unit representing the ownership
by the Holder thereof of a [1/40] undivided beneficial interest in a Treasury
Security, subject to the Pledge of such interest in such Treasury Security by
such Holder pursuant to the Pledge Agreement, and the rights and obligations of
the Holder thereof and the Company under one Purchase Contract. Prior to the
purchase of shares of Common Stock under each Purchase Contract, such Purchase
Contracts shall not entitle the Holders of Treasury Units Certificates to any of
the rights of a holder of shares of Common Stock, including, without limitation,
the right to vote or receive any dividends or other payments or to consent or to
receive notice as stockholders in respect of the meetings of stockholders or for
the election of directors of the Company or for any other matter, or any other
rights whatsoever as stockholders of the Company.
SECTION 3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING.
(a) Subject to the provisions of Sections 3.13 and 3.14, upon the execution
and delivery of this Agreement, and at any time and from time to time
thereafter, the Company may deliver Certificates executed by the Company to the
Agent for authentication, execution on behalf of the Holders and delivery,
together with its Issuer Order for authentication of such Certificates, and the
Agent in accordance with such Issuer Order shall authenticate, execute on behalf
of the Holders and deliver such Certificates.
(b) The Certificates shall be executed on behalf of the Company by an
Authorized Officer and delivered to the Agent. The signature of any of these
officers on the Certificates may be manual or facsimile.
(c) Certificates 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 Certificates or did not
hold such offices at the date of such Certificates.
20
(d) No Purchase Contract evidenced by a Certificate shall be valid until
such Certificate has been executed on behalf of the Holder by the manual
signature of an authorized signatory of the Agent, as such Holder's
attorney-in-fact. Such signature by an authorized signatory of the Agent shall
be conclusive evidence that the Holder of such Certificate has entered into the
Purchase Contracts evidenced by such Certificate.
(e) Each Certificate shall be dated the date of its authentication.
(f) No Certificate shall be entitled to any benefit under this Agreement or
be valid or obligatory for any purpose unless there appears on such Certificate
a certificate of authentication substantially in the form provided for herein
executed by an authorized signatory of the Agent by manual signature, and such
certificate upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder.
SECTION 3.4 TEMPORARY CERTIFICATES.
(a) Pending the preparation of definitive Certificates, the Company shall
execute and deliver to the Agent, and the Agent shall authenticate, execute on
behalf of the Holders, and deliver, in lieu of such definitive Certificates,
temporary Certificates which are in substantially the form set forth in Exhibit
A or Exhibit B hereto, as the case may be, with such letters, numbers or other
marks of identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as may be required by the rules of any
securities exchange of quotation system on which the Corporate Units or Treasury
Units, as the case may be, are listed or quoted for trading or any depositary
therefor, or as may, consistently herewith, be determined by the officers of the
Company executing such Certificates, as evidenced by their execution of the
Certificates.
(b) If temporary Certificates are issued, the Company will cause definitive
Certificates to be prepared without unreasonable delay. After the preparation of
definitive Certificates, the temporary Certificates shall be exchangeable for
definitive Certificates upon surrender of the temporary Certificates at the
Corporate Trust Office, at the expense of the Company and without charge to the
Holder. Upon surrender for cancellation of any one or more temporary
Certificates, the Company shall execute and deliver to the Agent, and the Agent
shall authenticate, execute on behalf of the Holder, and deliver in exchange
therefor, one or more definitive Certificates of like tenor and denominations
and evidencing a like number of Corporate Units or Treasury Units, as the case
may be, as the temporary Certificate or Certificates so surrendered. Until so
exchanged, the temporary Certificates shall in all respects evidence the same
benefits and the same obligations with respect to the Corporate Units or
Treasury Units, as the case may be, evidenced thereby as definitive
Certificates.
SECTION 3.5 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.
(a) The Agent shall keep at the Corporate Trust Office a register (the
"Corporate Units Register") in which, subject to such reasonable regulations as
it may prescribe, the Agent shall provide for the registration of Corporate
Units Certificates and of transfers of Corporate Units Certificates (the Agent,
in such capacity, the "Corporate Units Registrar") and a register (the "Treasury
21
Units Register") in which, subject to such reasonable regulations as it may
prescribe, the Agent shall provide for the registration of the Treasury Units
Certificates and transfers of Treasury Units Certificates (the Agent, in such
capacity, the "Treasury Units Registrar").
(b) Upon surrender for registration of transfer of any Certificate at the
Corporate Trust Office, the Company shall execute and deliver to the Agent, and
the Agent shall authenticate, execute on behalf of the designated transferee or
transferees, and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of like tenor and denominations, and
evidencing a like number of Corporate Units or Treasury Units, as the case may
be.
(c) At the option of the Holder, Certificates may be exchanged for other
Certificates, of like tenor and denominations and evidencing a like number of
Corporate Units or Treasury Units, as the case may be, upon surrender of the
Certificates to be exchanged at the Corporate Trust Office. Whenever any
Certificates are so surrendered for exchange, the Company shall execute and
deliver to the Agent, and the Agent shall authenticate, execute on behalf of the
Holder, and deliver the Certificates which the Holder making the exchange is
entitled to receive.
(d) All Certificates issued upon any registration of transfer or exchange
of a Certificate shall evidence the ownership of the same number of Corporate
Units or Treasury Units, as the case may be, and be entitled to the same
benefits and subject to the same obligations, under this Agreement as the
Corporate Units or Treasury Units, as the case may be, evidenced by the
Certificate surrendered upon such registration of transfer or exchange.
(e) Every Certificate presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Agent) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Agent duly executed, by the Holder thereof
or its attorney duly authorized in writing.
(f) No service charge shall be made for any registration of transfer or
exchange of a Certificate, but the Company and the Agent may require payment
from the Holder of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Certificates, other than any exchanges pursuant to Sections 3.6, 3.9
and 8.5 not involving any transfer.
(g) Notwithstanding the foregoing, the Company shall not be obligated to
execute and deliver to the Agent, and the Agent shall not be obligated to
authenticate, execute on behalf of the Holder and deliver any Certificate
presented or surrendered for registration of transfer or for exchange on or
after the Business Day immediately preceding the earlier of the Stock Purchase
Date or the Termination Date. In lieu of delivery of a new Certificate, upon
satisfaction of the applicable conditions specified above in this Section and
receipt of appropriate registration or transfer instructions from such Holder,
the Agent shall,
(i) if the Stock Purchase Date has occurred, deliver the shares of
Common Stock issuable in respect of the Purchase Contracts forming a part
of the Units evidenced by such Certificate,
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(ii) in the case of Corporate Units, if a Termination Event shall have
occurred prior to the Stock Purchase Date, transfer the Notes or the
appropriate Treasury Consideration or Applicable Ownership Interest in the
Treasury Portfolio, as applicable, relating to such Corporate Units, or
(iii) in the case of Treasury Units, if a Termination Event shall have
occurred prior to the Stock Purchase Date, transfer the Treasury Securities
relating to such Treasury Units,
in each case subject to the applicable conditions and in accordance with the
applicable provisions of Article V.
SECTION 3.6 BOOK-ENTRY INTERESTS.
The Certificates, on original issuance, will be issued in the form of one
or more fully registered Global Certificates, to be delivered to the Depositary
or a nominee or custodian thereof by, or on behalf of, the Company. Such Global
Certificates shall initially be registered on the books and records of the
Company in the name of Cede & Co., the nominee of the Depositary, and no
Beneficial Owner will receive a definitive Certificate representing such
Beneficial Owner's interest in such Global Certificate, except as provided in
Section 3.9. The Agent shall enter into an agreement with the Depositary if so
requested by the Company. Unless and until definitive, fully registered
Certificates have been issued to Beneficial Owners pursuant to Section 3.9:
(a) the provisions of this Section 3.6 shall be in full force and effect;
(b) the Company shall be entitled to deal with the Clearing Agency for all
purposes of this Agreement (including the payment of Contract Adjustment
Payments, if any, and receiving approvals, votes or consents hereunder) as the
Holder of the Units and the sole holder of the Global Certificate(s) and shall
have no obligation to the Beneficial Owners;
(c) to the extent that the provisions of this Section 3.6 conflict with any
other provisions of this Agreement or any Certificate, the provisions of this
Section 3.6 shall control; and
(d) the rights of the Beneficial Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law and agreements
between such Beneficial Owners and the Clearing Agency and/or the Clearing
Agency Participants.
The Clearing Agency will make book-entry transfers among Clearing Agency
Participants and receive and transmit payments of Contract Adjustment Payments
to such Clearing Agency Participants.
SECTION 3.7 NOTICES TO HOLDERS.
Whenever a notice or other communication to the Holders is required to be
given under this Agreement, the Company or the Company's agent shall give such
notices and communications to the Holders and, with respect to any Units
23
registered in the name of a Clearing Agency or the nominee of a Clearing Agency,
the Company or the Company's agent shall, except as set forth herein, have no
obligation to the Beneficial Owners.
SECTION 3.8 APPOINTMENT OF SUCCESSOR CLEARING AGENCY.
If any Clearing Agency elects to discontinue its services as securities
depositary with respect to the Units, the Company may, in its sole discretion,
appoint a successor Clearing Agency with respect to the Units.
SECTION 3.9 DEFINITIVE CERTIFICATES.
If
(i) a Clearing Agency notifies the Company that it is unwilling or
unable to continue its services as securities depositary with respect to
the Units and a successor Clearing Agency is not appointed within 90 days
after such discontinuance pursuant to Section 3.8, or
(ii) the Company elects to terminate the book-entry system through the
Clearing Agency with respect to the Units,
then upon surrender of the Global Certificates representing the Book-Entry
Interests with respect to the Units by the Clearing Agency, accompanied by
registration instructions, the Company shall cause definitive Certificates to be
delivered to Beneficial Owners in accordance with the instructions of the
Clearing Agency. The Company shall not be liable for any delay in delivery of
such instructions and may conclusively rely on and shall be protected in relying
on, such instructions.
SECTION 3.10 MUTILATED, DESTROYED, LOST AND STOLEN CERTIFICATES.
(a) If any mutilated Certificate is surrendered to the Agent, the Company
shall execute and deliver to the Agent, and the Agent shall authenticate,
execute on behalf of the Holder, and deliver in exchange therefor, a new
Certificate at the cost of the Holder, evidencing the same number of Corporate
Units or Treasury Units, as the case may be, and bearing a Certificate number
not contemporaneously outstanding.
(b) If there shall be delivered to the Company and the Agent (i) evidence
to their satisfaction of the destruction, loss or theft of any Certificate, and
(ii) such security or indemnity at the cost of the Holder as may be required by
them to hold each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Agent that such Certificate has been
acquired by a bona fide purchaser, the Company shall execute and deliver to the
Agent, and the Agent shall authenticate, execute on behalf of the Holder, and
deliver to the Holder, in lieu of any such destroyed, lost or stolen
Certificate, a new Certificate, evidencing the same number of Corporate Units or
Treasury Units, as the case may be, and bearing a Certificate number not
contemporaneously outstanding.
(c) Notwithstanding the foregoing, the Company shall not be obligated to
execute and deliver to the Agent, and the Agent shall not be obligated to
24
authenticate, execute on behalf of the Holder, and deliver any Certificate on or
after the Business Day immediately preceding the earlier of the Stock Purchase
Date or the Termination Date. In lieu of delivery of a new Certificate, upon
satisfaction of the applicable conditions specified above in this Section and
receipt of appropriate registration or transfer instructions from such Holder,
the Agent shall (i) if the Stock Purchase Date has occurred, deliver the shares
of Common Stock issuable in respect of the Purchase Contracts forming a part of
the Units evidenced by such Certificate, or (ii) if a Termination Event shall
have occurred prior to the Stock Purchase Date, transfer the Notes, the
appropriate Treasury Consideration or Applicable Ownership Interest in the
Treasury Portfolio, or the Treasury Securities, as the case may be, evidenced
thereby, in each case subject to the applicable conditions and in accordance
with the applicable provisions of Article V.
(d) Upon the issuance of any new Certificate under this Section, the
Company and the Agent may require the payment by the Holder of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Agent)
connected therewith.
(e) Every new Certificate issued pursuant to this Section in lieu of any
destroyed, lost or stolen Certificate shall constitute an original additional
contractual obligation of the Company and of the Holder in respect of the Unit
evidenced thereby, whether or not the destroyed, lost or stolen Certificate (and
the Units evidenced thereby) shall be at any time enforceable by anyone, and
shall be entitled to all the benefits and be subject to all the obligations of
this Agreement equally and proportionately with any and all other Certificates
delivered hereunder.
(f) 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 Certificates.
SECTION 3.11 PERSONS DEEMED OWNERS.
(a) Prior to due presentment of a Certificate for registration of transfer,
the Company, the Agent and its Affiliates, and any agent of the Company or the
Agent, may treat the Person in whose name such Certificate is registered on the
Register as the owner of the Units evidenced thereby for the purpose of
receiving quarterly payments on the Notes, the Treasury Consideration or the
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
receiving payments of Contract Adjustment Payments, if any, and any Deferred
Contract Adjustment Payments, performance of the Purchase Contracts and for all
other purposes whatsoever, whether or not any payments in respect thereof shall
be overdue and notwithstanding any notice to the contrary, and neither the
Company, the Agent, such Affiliates nor any agent of the Company, the Agent or
such Affiliates, shall be affected by notice to the contrary.
(b) Notwithstanding the foregoing, with respect to any Global Certificate,
nothing herein shall prevent the Company, the Agent or any agent of the Company
or the Agent, from treating the Clearing Agency as the sole Holder of such
Global Certificate or from giving effect to any written certification, proxy or
other authorization furnished by any Clearing Agency (or its nominee), as a
Holder, with respect to such Global Certificate or impair, as between such
25
Clearing Agency and owners of beneficial interests in such Global Certificate,
the operation of customary practices governing the exercise of rights of such
Clearing Agency (or its nominee) as Holder of such Global Certificate.
SECTION 3.12 CANCELLATION.
(a) All Certificates surrendered (i) for delivery of shares of Common Stock
on or after any Settlement Date; (ii) upon the transfer of Notes, the
appropriate Treasury Consideration or Applicable Ownership Interest in the
Treasury Portfolio, or Treasury Securities, as the case may be, after the
occurrence of a Termination Event; or (iii) upon the registration of a transfer
or exchange of a Unit shall, if surrendered to any Person other than the Agent,
be delivered to the Agent and, if not already cancelled, shall be promptly
cancelled by it. The Company may at any time deliver to the Agent for
cancellation any Certificates previously authenticated, executed and delivered
hereunder which the Company may have acquired in any manner whatsoever, and all
Certificates so delivered shall, upon Issuer Order, be promptly cancelled by the
Agent. No Certificates shall be authenticated, executed on behalf of the Holder
and delivered in lieu of or in exchange for any Certificates cancelled as
provided in this Section, except as expressly permitted by this Agreement. All
cancelled Certificates held by the Agent shall upon written request be returned
to the Company.
(b) If the Company or any Affiliate of the Company shall acquire any
Certificate, such acquisition shall not operate as a cancellation of such
Certificate unless and until such Certificate is delivered to the Agent
cancelled or for cancellation.
SECTION 3.13 ESTABLISHMENT OF TREASURY UNITS.
(a) A Holder may separate the Pledged Notes, Pledged Treasury Consideration
or Pledged Applicable Ownership Interest in the Treasury Portfolio, as
applicable, from the related Purchase Contracts in respect of the Corporate
Units held by such Holder by substituting for such Pledged Notes, Pledged
Treasury Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, Treasury Securities that will pay, on the Stock
Purchase Date, an amount equal to the aggregate principal amount of such Notes
or the appropriate Treasury Consideration or Applicable Ownership Interest (as
specified in clause (A) of the definition of such term) of the Treasury
Portfolio (a "Collateral Substitution"), at any time from and after the date of
this Agreement and on or prior to the second Business Day immediately preceding
the Stock Purchase Date, by (i) depositing with the Collateral Agent Treasury
Securities having an aggregate principal amount equal to the aggregate Stated
Amount of such Corporate Units, and (ii) transferring the related Corporate
Units to the Agent accompanied by a notice to the Agent, substantially in the
form of Exhibit D hereto, stating that the Holder has transferred the relevant
amount of Treasury Securities to the Collateral Agent and requesting that the
Agent instruct the Collateral Agent to release the Pledged Notes, Pledged
Treasury Consideration or Pledged Applicable Ownership Interest of the Treasury
Portfolio, as the case may be, underlying such Corporate Units, whereupon the
Agent shall promptly give such instruction to the Collateral Agent,
substantially in the form of Exhibit C hereto. Notwithstanding the foregoing, a
Holder may not separate the Pledged Notes, Pledged Treasury Consideration or
Pledged Applicable Ownership Interest of the Treasury Portfolio, as the case may
be, from the related Purchase Contracts in respect of the Corporate Units held
by such Holder during the periods beginning on the fourth Business Day prior to
26
the first day of any Remarketing Period and ending on the third business day
after the end of such Remarketing Period. Upon receipt of the Treasury
Securities described in clause (i) above and the instruction described in clause
(ii) above, in accordance with the terms of the Pledge Agreement, the Collateral
Agent will release to the Agent, on behalf of the Holder, such Pledged Notes,
Pledged Treasury Consideration or Pledged Applicable Ownership Interest of the
Treasury Portfolio, as the case may be, from the Pledge, free and clear of the
Company's security interest therein, and upon receipt thereof the Agent shall
promptly:
(i) cancel the related Corporate Units;
(ii) transfer the Pledged Notes, Pledged Treasury Consideration or
Pledged Applicable Ownership Interest of the Treasury Portfolio, as the
case may be, to the Holder; and
(iii) authenticate, execute on behalf of such Holder and deliver a
Treasury Units Certificate executed by the Company in accordance with
Section 3.3 evidencing the same number of Purchase Contracts as were
evidenced by the cancelled Corporate Units.
(b) Holders who elect to separate the Pledged Notes, Pledged Treasury
Consideration or Pledged Applicable Ownership Interest of the Treasury
Portfolio, as the case may be, from the related Purchase Contract and to
substitute Treasury Securities for such Pledged Notes, Pledged Treasury
Consideration or Pledged Applicable Ownership Interest of the Treasury
Portfolio, as the case may be, shall be responsible for any fees or expenses
payable to the Collateral Agent for its services as Collateral Agent in respect
of the substitution, and the Company shall not be responsible for any such fees
or expenses.
(c) Holders may make Collateral Substitutions (i) if Treasury Securities
are being substituted for Pledged Notes, only in integral multiples of [40]
Corporate Units, or (ii) if the Collateral Substitutions occur after the
Remarketing Date or any Subsequent Remarketing Date, or after a Tax Event
Redemption, as the case may be, only in integral multiples of Corporate Units
such that the Treasury Securities to be deposited and the Treasury
Consideration, or the Applicable Ownership Interest in the Treasury Portfolio,
as the case may be, to be released are in integral multiples of $1,000.
(d) In the event a Holder making a Collateral Substitution pursuant to this
Section 3.13 fails to effect a book-entry transfer of the Corporate Units or
fails to deliver a Corporate Units Certificate to the Agent after depositing
Treasury Securities with the Collateral Agent, the Pledged Notes, Pledged
Treasury Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, constituting a part of such Corporate Units, and
any distributions on such Pledged Notes, Pledged Treasury Consideration or
Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case may
be, shall be held in the name of the Agent or its nominee in trust for the
benefit of such Holder, until such Corporate Units are so transferred or the
Corporate Units Certificate is so delivered, as the case may be, or, with
respect to a Corporate Units Certificate, such Holder provides evidence
satisfactory to the Company and the Agent that such Corporate Units Certificate
has been destroyed, lost or stolen, together with any indemnity that may be
required by the Agent and the Company.
27
(e) Except as described in this Section 3.13, for so long as the Purchase
Contract underlying a Corporate Unit remains in effect, such Corporate Unit
shall not be separable into its constituent parts, and the rights and
obligations of the Holder of such Corporate Unit in respect of the Pledged Note,
Pledged Treasury Consideration or Pledged Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, and the Purchase Contract comprising
such Corporate Unit may be acquired, and may be transferred and exchanged, only
as a Corporate Unit.
SECTION 3.14 RE-ESTABLISHMENT OF CORPORATE UNITS.
(a) A Holder of Treasury Units may reestablish Corporate Units at any time
from and after the date of this Agreement and on or prior to the second Business
Day immediately preceding the Stock Purchase Date, by (i) depositing with the
Collateral Agent the Notes or the appropriate Treasury Consideration or
Applicable Ownership Interest in the Treasury Portfolio (identified and
calculated by reference to the Treasury Consideration then comprising Corporate
Units), as the case may be, then comprising such number of Corporate Units as is
equal to such Treasury Units and (ii) transferring such Treasury Units to the
Agent accompanied by a notice to the Agent, substantially in the form of Exhibit
D hereto, stating that the Holder has transferred the relevant amount of Notes
or the appropriate Treasury Consideration or Applicable Ownership Interest in
the Treasury Portfolio, as the case may be, to the Collateral Agent and
requesting that the Agent instruct the Collateral Agent to release the Pledged
Treasury Securities underlying such Treasury Unit, whereupon the Agent shall
promptly give such instruction to the Collateral Agent, substantially in the
form of Exhibit C hereto. Notwithstanding the foregoing, a Holder may not
reestablish Corporate Units during the periods beginning on the fourth Business
Day prior to the first day of any Remarketing Period and ending on the third
business day after the end of such Remarketing Period. Upon receipt of the Notes
or the appropriate Treasury Consideration or Applicable Ownership Interest in
the Treasury Portfolio, as the case may be, described in clause (i) above and
the instruction described in clause (ii) above, in accordance with the terms of
the Pledge Agreement, the Collateral Agent will release to the Agent, on behalf
of the Holder, such Pledged Treasury Securities from the Pledge, free and clear
of the Company's security interest therein, and upon receipt thereof the Agent
shall promptly:
(i) cancel the related Treasury Units;
(ii) transfer the Pledged Treasury Securities to the Holder; and
(iii) authenticate, execute on behalf of such Holder and deliver a
Corporate Units Certificate executed by the Company in accordance with
Section 3.3 evidencing the same number of Purchase Contracts as were
evidenced by the cancelled Treasury Units.
(b) Holders of Treasury Units may reestablish Corporate Units (i) only in
integral multiples of [40] Treasury Units for [40] Corporate Units or (ii) if
the re-establishment occurs after a successful remarketing of the Notes pursuant
to the provisions of Section 5.4, or after a Tax Event Redemption, only in
integral multiples of Treasury Units such that the Treasury Consideration or
Applicable Ownership Interest in the Treasury Portfolio to be deposited and the
Treasury Securities to be released are in integral multiples of $1,000.
28
(c) Except as provided in this Section 3.14, for so long as the Purchase
Contract underlying a Treasury Unit remains in effect, such Treasury Unit shall
not be separable into its constituent parts, and the rights and obligations of
the Holder of such Treasury Unit in respect of the Treasury Security and
Purchase Contract comprising such Treasury Unit may be acquired, and may be
transferred and exchanged, only as a Treasury Unit.
SECTION 3.15 TRANSFER OF COLLATERAL UPON OCCURRENCE OF TERMINATION EVENT.
Upon the occurrence of a Termination Event and the transfer to the Agent of
the Notes, the appropriate Treasury Consideration or Applicable Ownership
Interest in the Treasury Portfolio, or the Treasury Securities, as the case may
be, underlying the Corporate Units and the Treasury Units pursuant to the terms
of the Pledge Agreement, the Agent shall request transfer instructions with
respect to such Notes or the appropriate Treasury Consideration or Applicable
Ownership Interest in the Treasury Portfolio or the Treasury Securities, as the
case may be, from each Holder by written request mailed to such Holder at its
address as it appears in the Corporate Units Register or the Treasury Units
Register, as the case may be. Upon book-entry transfer of the Corporate Units or
Treasury Units or delivery of a Corporate Units Certificate or Treasury Units
Certificate to the Agent with such transfer instructions, the Agent shall
transfer the Notes, the appropriate Treasury Consideration or Applicable
Ownership Interest in the Treasury Portfolio, or the Treasury Securities, as the
case may be, underlying such Corporate Units or Treasury Units, as the case may
be, to such Holder by book-entry transfer, or other appropriate procedures, in
accordance with such instructions. In the event a Holder of Corporate Units or
Treasury Units fails to effect such transfer or delivery, the Notes, the
appropriate Treasury Consideration or Applicable Ownership Interest in the
Treasury Portfolio, or the Treasury Securities, as the case may be, underlying
such Corporate Units or Treasury Units, as the case may be, and any
distributions thereon, shall be held in the name of the Agent or its nominee in
trust for the benefit of such Holder, until such Corporate Units or Treasury
Units are transferred or the Corporate Units Certificate or Treasury Units
Certificate is surrendered or such Holder provides satisfactory evidence that
such Corporate Units Certificate or Treasury Units Certificate has been
destroyed, lost or stolen, together with any indemnity that may be required by
the Agent and the Company. In the case of the Treasury Portfolio or any Treasury
Securities, the Agent may dispose of the subject securities for cash and pay the
applicable portion of such cash to the Holders in lieu of such Holders'
Applicable Ownership Interest in such Treasury Portfolio, or any Treasury
Securities, where such Holder would otherwise have been entitled to receive less
than $1,000 of any such security.
SECTION 3.16 NO CONSENT TO ASSUMPTION.
Each Holder of a Unit, by acceptance thereof, will be deemed expressly to
have withheld any consent to the assumption (i.e., affirmance) under Section 365
of the Bankruptcy Code or otherwise, of the Purchase Contract by the Company,
its trustee in bankruptcy, any receiver, liquidator or person or entity
performing similar functions in the event that the Company becomes a debtor
under the Bankruptcy Code or subject to other similar state or federal law
providing for reorganization or liquidation.
29
ARTICLE IV.
THE NOTES
SECTION 4.1 PAYMENT OF INTEREST; RIGHTS TO INTEREST PAYMENTS PRESERVED;
NOTICE.
(a) A payment on any Note, Treasury Consideration or Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, which is paid on any
Payment Date shall, subject to receipt thereof by the Agent from the Collateral
Agent as provided by the terms of the Pledge Agreement, be paid to the Person in
whose name the Corporate Units Certificate (or one or more Predecessor Corporate
Units Certificates) of which such Note or the appropriate Treasury Consideration
or Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
is a part is registered at the close of business on the Record Date for such
Payment Date.
(b) Each Corporate Units Certificate evidencing Notes delivered under this
Agreement upon registration of transfer of or in exchange for or in lieu of any
other Corporate Units Certificate shall carry the rights to interest accrued and
unpaid, and to accrue interest, which is carried by the Notes underlying such
other Corporate Units Certificate.
(c) In the case of any Corporate Unit with respect to which Early
Settlement of the underlying Purchase Contract is effected on an Early
Settlement Date, Merger Early Settlement of the underlying Purchase Contract is
effected on a Merger Early Settlement Date, Cash Settlement is effected on the
Business Day immediately preceding the Stock Purchase Date, or a Collateral
Substitution is effected, in each case on a date that is after any Record Date
and on or prior to the next succeeding Payment Date, payments on the Note or the
appropriate Treasury Consideration or Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, underlying such Corporate Unit otherwise
payable on such Payment Date shall be payable on such Payment Date
notwithstanding such Early Settlement, Merger Early Settlement, Cash Settlement
or Collateral Substitution, as the case may be, and such payments shall, subject
to receipt thereof by the Agent, be payable to the Person in whose name the
Corporate Units Certificate (or one or more Predecessor Corporate Unit
Certificates) was registered at the close of business on the Record Date. Except
as otherwise expressly provided in the immediately preceding sentence, in the
case of any Corporate Unit with respect to which Early Settlement, Merger Early
Settlement or Cash Settlement of the underlying Purchase Contract is effected,
or with respect to which a Collateral Substitution has been effected, payments
on the related Notes or payments on the appropriate Treasury Consideration or
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
that would otherwise be payable after the applicable Settlement Date or after
such Collateral Substitution, as the case may be, shall not be payable hereunder
to the Holder of such Corporate Unit; provided, that to the extent that such
Holder continues to hold the Separate Notes that formerly comprised a part of
such Holder's Corporate Units, such Holder shall be entitled to receive the
payments on such Separate Notes.
SECTION 4.2 NOTICE AND VOTING.
Under and subject to the terms of the Pledge Agreement and this Agreement,
the Agent will be entitled to exercise the voting and any other consensual
rights pertaining to the Pledged Notes but only to the extent instructed by the
Holders as described below. Upon receipt of notice of any meeting at which
30
holders of Notes are entitled to vote or upon any solicitation of consents,
waivers or proxies of holders of Notes, the Agent shall, as soon as practicable
thereafter, mail to the Holders of Corporate Units a notice (a) containing such
information as is contained in the notice or solicitation, (b) stating that each
Holder on the record date set by the Agent therefor (which, to the extent
possible, shall be the same date as the record date for determining the holders
of Notes entitled to vote) shall be entitled to instruct the Agent as to the
exercise of the voting rights pertaining to the Pledged Notes constituting a
part of such Holder's Corporate Units and (c) stating the manner in which such
instructions may be given. Upon the written request of the Holders of Corporate
Units on such record date, the Agent shall endeavor insofar as practicable to
vote or cause to be voted, in accordance with the instructions set forth in such
requests, the maximum number of Pledged Notes as to which any particular voting
instructions are received. In the absence of specific instructions from the
Holder of a Corporate Unit, the Agent shall abstain from voting the Pledged Note
underlying such Corporate Unit. The Company hereby agrees, if applicable, to
solicit Holders of Corporate Units to timely instruct the Agent in order to
enable the Agent to vote such Pledged Notes.
SECTION 4.3 TAX EVENT REDEMPTION.
Upon the occurrence of a Tax Event Redemption prior to a successful
remarketing of the Notes pursuant to the provisions of Section 5.4, the Company
may elect to instruct in writing the Collateral Agent to apply, and upon such
written instruction, the Collateral Agent shall apply, out of the aggregate
Redemption Price for the Notes that are components of Corporate Units, an amount
equal to the aggregate Tax Event Redemption Principal Amount for the Notes that
are components of Corporate Units to purchase on behalf of the Holders of
Corporate Units the Treasury Portfolio and promptly remit the remaining portion
of such Redemption Price to the Agent for payment to the Holders of such
Corporate Units. The Treasury Portfolio will be substituted for the Pledged
Notes, and will be pledged to the Collateral Agent in accordance with the terms
of the Pledge Agreement to secure the obligation of each Holder of a Corporate
Unit to purchase the Common Stock under the Purchase Contract constituting a
part of such Corporate Unit. Following the occurrence of a Tax Event Redemption
prior to a successful remarketing of the Notes pursuant to the provisions of
Section 5.4, the Holders of Corporate Units and the Collateral Agent shall have
such security interests, rights and obligations with respect to the Treasury
Portfolio as the Holder of Corporate Units and the Collateral Agent had in
respect of the Notes, as the case may be, subject to the Pledge thereof as
provided in Articles II, III, IV, V and VI of the Pledge Agreement, and any
reference herein or in the Certificates to the Note shall be deemed to be a
reference to such Treasury Portfolio and any reference herein or in the
Certificates to interest on the Notes shall be deemed to be a reference to
corresponding distributions on the Treasury Portfolio. The Company may cause to
be made in any Corporate Unit Certificates thereafter to be issued such change
in phraseology and form (but not in substance) as may be appropriate to reflect
the substitution of the Treasury Portfolio for Notes as collateral.
The Company shall cause notice of any Tax Event Redemption to be mailed, at
least 30 calendar days but not more than 60 calendar days before such Tax Event
Redemption Date, to each Holder of Notes to be redeemed at its registered
address.
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Upon the occurrence of a Tax Event Redemption after the successful
remarketing of the Notes, the Redemption Price will be payable in cash to the
holders of the Notes.
SECTION 4.4 CONSENT TO TREATMENT FOR TAX PURPOSES
Each Holder of a Corporate Unit or a Treasury Unit, by its acceptance
thereof, covenants and agrees to treat itself as the owner, for federal, state
and local income and franchise tax purposes, of (i) the related Notes, the
appropriate Treasury Consideration or the Applicable Ownership Interest in the
Treasury Portfolio, in the case of the Corporate Units, or (ii) the Treasury
Securities, in the case of the Treasury Units. Each Holder of a Corporate Unit,
by its acceptance thereof, further covenants and agrees to treat the Notes as
indebtedness of the Company for federal, state and local income and franchise
tax purposes.
ARTICLE V.
THE PURCHASE CONTRACTS; THE REMARKETING
SECTION 5.1 PURCHASE OF SHARES OF COMMON STOCK.
(a) Each Purchase Contract shall, unless an Early Settlement has occurred
in accordance with Section 5.9, or a Merger Early Settlement has occurred in
accordance with Section 5.10, obligates the Holder of the related Unit to
purchase, and the Company to sell, on the Stock Purchase Date at a price equal
to [$25] (the "Purchase Price"), a number of newly issued shares of Common Stock
equal to the Settlement Rate unless, on or prior to the Stock Purchase Date,
there shall have occurred a Termination Event with respect to the Unit of which
such Purchase Contract is a part. The "Settlement Rate" is equal to
(i) if the Applicable Market Value (as defined below) is equal to or
greater than ______ (the "Threshold Appreciation Price"), ______ shares of
Common Stock per Purchase Contract,
(ii) if the Applicable Market Value is less than the Threshold
Appreciation Price, but is greater than ______, the number of shares of
Common Stock per Purchase Contract equal to the Stated Amount of the
related Unit divided by the Applicable Market Value, and
(iii) if the Applicable Market Value is less than or equal to ______,
______ shares of Common Stock per Purchase Contract,
in each case subject to adjustment as provided in Section 5.6 (and in each case
rounded upward or downward to the nearest 1/10,000th of a share). As provided in
Section 5.12, no fractional shares of Common Stock will be issued upon
settlement of Purchase Contracts.
(b) No fractional shares of Common Stock will be issued by the Company with
respect to the payment of Contract Adjustment Payments on the Stock Purchase
Date. In lieu of fractional shares otherwise issuable with respect to such
payment of Contract Adjustment Payments, the Holder will be entitled to receive
an amount in cash as provided in Section 5.12.
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(c) The "Applicable Market Value" means the average of the Closing Price
per share of Common Stock on each of the 20 consecutive Trading Days ending on
the third Trading Day immediately preceding the Stock Purchase Date or, in the
event of a Cash Merger contemplated by Section 5.10, the Cash Merger Date. The
"Closing Price" of the Common Stock on any date of determination means the
closing sale price per share (or, if no closing sale price is reported, the last
reported sale price) of the Common Stock on the New York Stock Exchange (the
"NYSE") on such date or, if the Common Stock is not listed for trading on the
NYSE on any such date, as reported in the composite transactions for the
principal United States securities exchange on which the Common Stock is so
listed, or if the Common Stock is not so listed on a United States securities
exchange, as reported by The Nasdaq Stock Market, or if the Common Stock is not
so reported, the last quoted bid price for the Common Stock in the
over-the-counter market as reported by the National Quotation Bureau or similar
organization, or if such bid price is not available, the market value of the
Common Stock on such date as determined by a nationally recognized independent
investment banking firm retained by the Company for this purpose. A "Trading
Day" means a day on which the Common Stock (A) is not suspended from trading on
any national or regional securities exchange or association or over-the-counter
market at the close of business and (B) has traded at least once on the national
or regional securities exchange or association or over-the-counter market that
is the primary market for the trading of the Common Stock at the close of
business on such day.
(d) Each Holder of a Unit, by its acceptance thereof, irrevocably
authorizes the Agent to enter into and perform the related Purchase Contract on
its behalf as its attorney-in-fact (including the execution of Certificates on
behalf of such Holder), agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform its obligations under such Purchase Contract,
consents to the provisions hereof, irrevocably authorizes the Agent as its
attorney-in-fact to enter into and perform the Pledge Agreement on its behalf as
its attorney-in-fact, and consents to and agrees to be bound by the Pledge of
the Notes, the appropriate Treasury Consideration or Applicable Ownership
Interest in the Treasury Portfolio, or the Treasury Securities, as the case may
be, pursuant to the Pledge Agreement; provided that upon a Termination Event,
the rights of the Holder of such Unit under the Purchase Contract may be
enforced without regard to any other rights or obligations. Each Holder of a
Unit, by its acceptance thereof, further covenants and agrees, that, to the
extent and in the manner provided in Section 5.4 and the Pledge Agreement, but
subject to the terms thereof, payments in respect of the Pledged Notes, the
Pledged Treasury Consideration or Pledged Applicable Ownership Interest in the
Treasury Portfolio, or the Treasury Securities, as the case may be, to be paid
upon settlement of such Holder's obligations to purchase Common Stock under the
Purchase Contract, shall be paid on the Stock Purchase Date by the Collateral
Agent to the Company in satisfaction of such Holder's obligations under such
Purchase Contract and such Holder shall acquire no right, title or interest in
such payments.
(e) Upon registration of transfer of a Certificate, the transferee shall be
bound (without the necessity of any other action on the part of such transferee,
except as may be required by the Agent pursuant hereto) under the terms of this
Agreement, the Purchase Contracts underlying such Certificate and the Pledge
Agreement and the transferor shall be released from the obligations under this
33
Agreement, the Purchase Contracts underlying the Certificates so transferred and
the Pledge Agreement. The Company covenants and agrees, and each Holder of a
Certificate, by its acceptance thereof, likewise covenants and agrees, to be
bound by the provisions of this paragraph.
SECTION 5.2 CONTRACT ADJUSTMENT PAYMENTS.
(a) Subject to Section 5.3 herein, the Company shall pay, on each Payment
Date, the Contract Adjustment Payments, if any, payable in respect of each
Purchase Contract to the Person in whose name a Certificate (or one or more
Predecessor Certificates) is registered on the Register at the close of business
on the Record Date next preceding such Payment Date in such coin or currency of
the United States as at the time of payment shall be legal tender for payments.
The Contract Adjustment Payments, if any, will be payable at the Corporate Trust
Office or, at the option of the Company, by check mailed to the address of the
Person entitled thereto at such Person's address as it appears on the Register
or by wire transfer to an account appropriately designated by a prior written
notice by such Person.
(b) Upon the occurrence of a Termination Event, the Company's obligation to
pay Contract Adjustment Payments (including any accrued or Deferred Contract
Adjustment Payments), if any, shall cease.
(c) Each Certificate delivered under this Agreement upon registration of
transfer of or in exchange for or in lieu of any other Certificate (including as
a result of a Collateral Substitution or the re-establishment of a Corporate
Unit) shall carry the rights to Contract Adjustment Payments, if any, accrued
and unpaid, and to accrue Contract Adjustment Payments, if any, which is carried
by the Purchase Contracts underlying such other Certificates.
(d) Subject to Sections 5.4, 5.9 and 5.10, in the case of any Unit with
respect to which Early Settlement or Merger Early Settlement of the underlying
Purchase Contract is effected on an Early Settlement Date or a Merger Early
Settlement Date, respectively, or in respect of which Cash Settlement of the
underlying Purchase Contract is effected on the Business Day immediately
preceding the Stock Purchase Date, or with respect to which a Collateral
Substitution or an establishment or re-establishment of a Corporate Unit
pursuant to Section 3.14 is effected, in each case on a date that is after any
Record Date and on or prior to the next succeeding Payment Date, Contract
Adjustment Payments on the Purchase Contract underlying such Unit otherwise
payable on such Payment Date shall be payable on such Payment Date
notwithstanding such Cash Settlement, Early Settlement, Merger Early Settlement,
Collateral Substitution or establishment or re-establishment of Corporate Units,
and such Contract Adjustment Payments shall, subject to the receipt thereof by
the Agent, be paid to the Person in whose name the Certificate evidencing such
Unit (or one or more Predecessor Certificates) was registered at the close of
business on such Record Date. Except as otherwise expressly provided in the
immediately preceding sentence, in the case of any Unit with respect to which
Cash Settlement, Early Settlement or Merger Early Settlement of the underlying
Purchase Contract is effected on the Business Day immediately preceding the
Stock Purchase Date, an Early Settlement Date or Merger Early Settlement Date,
as the case may be, or with respect to which a Collateral Substitution or an
establishment or re-establishment of a Corporate Unit has been effected,
Contract Adjustment Payments, if any, that would otherwise be payable after the
Early Settlement Date, or Merger Early Settlement Date, Collateral Substitution
or such establishment or re-establishment with respect to such Purchase Contract
shall not be payable.
34
(e) The Company's obligations with respect to Contract Adjustment Payments
(including any accrued or Deferred Contract Adjustment Payments), will be
subordinate and junior in right of payment to the Company's obligations under
any Senior Indebtedness.
SECTION 5.3 DEFERRAL OF CONTRACT ADJUSTMENT PAYMENTS.
(a) The Company shall have the right, at any time prior to the Stock
Purchase Date, to defer the payment of any or all of the Contract Adjustment
Payments otherwise payable on any Payment Date, but only if the Company shall
give the Holders and the Agent written notice of its election to defer each such
deferred Contract Adjustment Payment (specifying the amount to be deferred) at
least ten Business Days prior to the earlier of
(i) the next succeeding Payment Date or
(ii) the date the Company is required to give notice of the Record
Date or Payment Date with respect to payment of such Contract Adjustment
Payments to the NYSE or other applicable self-regulatory organization or to
Holders of the Units, but in any event not less than one Business Day prior
to such Record Date.
Any Contract Adjustment Payments so deferred shall, to the extent permitted by
law, accrue additional Contract Adjustment Payments thereon at the rate of ____%
per year (computed on the basis of a 360-day year of twelve 30-day months),
compounding on each succeeding Payment Date, until paid in full (such deferred
installments of Contract Adjustment Payments, if any, together with the
additional Contract Adjustment Payments, if any, accrued thereon, are referred
to herein as the "Deferred Contract Adjustment Payments"). Deferred Contract
Adjustment Payments, if any, shall be due on the next succeeding Payment Date
except to the extent that payment is deferred pursuant to this Section 5.3. No
Contract Adjustment Payments may be deferred to a date that is after the Stock
Purchase Date and no such deferral period may end other than on a Payment Date.
If the Purchase Contracts are terminated upon the occurrence of a Termination
Event, the Holder's right to receive Contract Adjustment Payments, if any, and
Deferred Contract Adjustment Payments will terminate.
(b) In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until a Payment Date prior to the
Stock Purchase Date, then all Deferred Contract Adjustment Payments, if any,
shall be payable to the registered Holders as of the close of business on the
Record Date immediately preceding such Payment Date.
(c) In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until the Stock Purchase Date,
each Holder will receive on the Stock Purchase Date in lieu of a cash payment a
number of shares of Common Stock (in addition to a number of shares of Common
Stock equal to the Settlement Rate) equal to (A) the aggregate amount of
Deferred Contract Adjustment Payments payable to such Holder divided by (B) the
Applicable Market Value.
(d) No fractional shares of Common Stock will be issued by the Company with
respect to the payment of Deferred Contract Adjustment Payments on the Stock
Purchase Date. In lieu of fractional shares otherwise issuable with respect to
35
such payment of Deferred Contract Adjustment Payments, the Holder will be
entitled to receive an amount in cash as provided in Section 5.12.
(e) In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, then until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and will not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of the Company's Capital Stock other than:
(i) purchases, redemptions or acquisitions of shares of the Company's
Capital Stock in connection with any employment contract, benefit plan or
other similar arrangement with or for the benefit of employees, officers,
directors or agents or a stock purchase or dividend reinvestment plan, or
the satisfaction by the Company of its obligations pursuant to any contract
or security outstanding on the date the Company exercises its right to
defer the payment of Contract Adjustment Payments;
(ii) as a result of a reclassification of the Company's Capital Stock
or the exchange or conversion of one class or series of the Company's
Capital Stock for another class or series of the Company's Capital Stock;
(iii) the purchase of fractional interests of the Company's Capital
Stock pursuant to the conversion or exchange provisions of such Capital
Stock or the security being converted or exchanged;
(iv) dividends or distributions in any series of the Company's Capital
Stock (or rights to acquire the Company's Capital Stock) or repurchases,
acquisitions or redemptions of the Company's Capital Stock in connection
with the issuance or exchange of any series of the Company's Capital Stock
(or securities convertible into or exchangeable for shares of the Company's
Capital Stock); or
(v) redemptions, exchanges or repurchases of any rights outstanding
under a shareholder rights plan or the declaration or payment thereunder of
a dividend or distribution of or with respect to rights in the future.
SECTION 5.4 PAYMENT OF PURCHASE PRICE; REMARKETING.
(a) Unless a Tax Event Redemption, successful remarketing of the Notes
pursuant to the provisions of this Section 5.4, Termination Event, Merger Early
Settlement or Early Settlement has occurred, each Holder of a Corporate Unit may
pay in cash ("Cash Settlement") the Purchase Price for the shares of Common
Stock to be purchased pursuant to a Purchase Contract if such Holder notifies
the Agent by use of a notice in substantially the form of Exhibit E hereto of
its intention to make a Cash Settlement. Such notice shall be made at or prior
to 5:00 p.m., New York City time, on the seventh Business Day immediately
preceding the Stock Purchase Date. The Agent shall promptly notify the
Collateral Agent of the receipt of such a notice from a Holder intending to make
a Cash Settlement.
(i) A Holder of a Corporate Unit who has so notified the Agent of its
intention to make a Cash Settlement is required to pay the Purchase Price
36
to the Collateral Agent prior to 11:00 a.m., New York City time, on the
Business Day immediately preceding the Stock Purchase Date in lawful money
of the United States by certified or cashiers' check or wire transfer, in
each case in immediately available funds payable to or upon the order of
the Company. Any cash received by the Collateral Agent will be paid to the
Company on the Stock Purchase Date in settlement of the Purchase Contract
in accordance with the terms of this Agreement and the Pledge Agreement.
(ii) If a Holder of a Corporate Unit fails to notify the Agent of its
intention to make a Cash Settlement in accordance with paragraph (a)(i)
above, such failure shall constitute an event of default and the Holder
shall be deemed to have consented to the disposition of the Pledged Notes
pursuant to the remarketing as described in paragraph (b) below. If a
Holder of a Corporate Units does notify the Agent as provided in paragraph
(a)(i) above of its intention to pay the Purchase Price in cash, but fails
to make such payment as required by paragraph (a)(i) above, such failure
shall also constitute an event of default; however, the Notes of such a
Holder will not be remarketed but instead the Collateral Agent, for the
benefit of the Company, will exercise its rights as a secured party with
respect to such Notes, including but not limited to those rights specified
in subsection (b)(iii) below.
(b) (i) The Company has engaged _________________ (or any successor
thereto, the "Remarketing Agent") pursuant to the Remarketing Agreement to
remarket the Notes of Holders of Corporate Units, other than Holders that have
elected not to participate in the remarketing pursuant to the procedures set
forth in clause (iv) below, and holders of Separate Notes that have elected to
participate in the remarketing pursuant to the procedures set forth in Section
4.5(d) of the Pledge Agreement. On the seventh Business Day prior to the first
day of a Remarketing Period, the Agent shall give Holders of Corporate Units and
holders of Separate Notes notice of the remarketing in a daily newspaper in the
English language of general circulation in The City of New York, which is
expected to be ________________, including the specific U.S. Treasury security
or securities (including the CUSIP number and/or the principal terms of such
Treasury security or securities) described in clause (iv) below, that must be
delivered by Holders of Corporate Units that elect not to participate in the
remarketing pursuant to clause (iv) below, no later than 10:00 a.m., New York
City time, on the fourth Business Day preceding the first day of a Remarketing
Period. The Company or the Agent, at the Company's request, shall request not
later than seven nor more than 15 calendar days prior to any Remarketing Period,
that the Clearing Agency notify the Clearing Agency Participants of such
Remarketing Period. The Agent shall notify, by 10:00 a.m., New York City time,
on the third Business Day preceding the first day of a Remarketing Period, the
Remarketing Agent and the Collateral Agent of the aggregate number of Notes of
Corporate Unit Holders to be remarketed. On the third Business Day preceding the
37
first day of a Remarketing Period, no later than by 10:00 a.m. New York City
time, pursuant to the terms of the Pledge Agreement, the Custodial Agent will
notify the Remarketing Agent of the aggregate number of Separate Notes to be
remarketed. No later than 10:00 a.m., New York City time, on the Business Day
immediately preceding the first day of a Remarketing Period, the Collateral
Agent and the Custodial Agent, pursuant to the terms of the Pledge Agreement,
will deliver for remarketing to the Remarketing Agent all Notes to be
remarketed. Upon receipt of such notice from the Agent and the Custodial Agent
and such Notes from the Collateral Agent and the Custodial Agent, the
Remarketing Agent will, on the Remarketing Date, use commercially reasonable
best efforts to sell such Notes on such date at a price equal to at least
100.__% of the Remarketing Value. The Remarketing Agent will use the proceeds
from a successful remarketing to purchase the appropriate U.S. Treasury
securities (the "Agent-purchased Treasury Consideration") with the CUSIP
numbers, if any, selected by the Remarketing Agent, described in clauses (i) and
(ii) of the definition of Remarketing Value related to the Notes of Holders of
Corporate Units that were remarketed. On or prior to the third Business Day
following the Remarketing Date or any Subsequent Remarketing Date, the
Remarketing Agent shall deliver such Agent-purchased Treasury Consideration to
the Agent, which shall thereupon deliver such Agent-purchased Treasury
Consideration to the Collateral Agent. The Collateral Agent, for the benefit of
the Company, will thereupon apply such Agent-purchased Treasury Consideration,
in accordance with the Pledge Agreement, to secure such Holders' obligations
under the Purchase Contracts. In the event of a successful remarketing pursuant
to this Section 5.4, the Remarketing Agent will deduct as a remarketing fee an
amount not exceeding __ basis points (.__%) of the total proceeds from the
remarketing (the "Remarketing Fee"). The Remarketing Agent will remit (1) the
portion of the proceeds from the remarketing attributable to the Separate Notes
to the holders of Separate Notes that were remarketed and (2) the remaining
portion of the proceeds, less those proceeds used to purchase the
Agent-purchased Treasury Consideration, to the Holders of the Corporate Units
that were remarketed, all determined on a pro rata basis, in each case, on or
prior to the third Business Day following the Remarketing Date or any Subsequent
Remarketing Date. Holders whose Notes are so remarketed will not otherwise be
responsible for the payment of any Remarketing Fee in connection therewith.
(ii) If, in spite of using commercially reasonable best efforts, the
Remarketing Agent cannot remarket the Notes included in the remarketing at a
price equal to at least 100.__% of the Remarketing Value on the Remarketing
Date, the Remarketing Agent will use commercially reasonable best efforts to
establish a Remarketing Rate meeting these requirements on each of the two
immediately following Business Days. If the Remarketing Agent cannot establish a
Remarketing Rate meeting these requirements on either of those days, it will use
commercially reasonable efforts to establish such a Remarketing Rate on each of
the three Business Days immediately preceding _________, 200__. If the
Remarketing Agent cannot establish such a Remarketing Rate either on any of the
two Business Days immediately following the Remarketing Date or on any of the
three Business Days immediately preceding _________, 200__, the remarketing in
each such period will be deemed to have failed (each, a "Failed Remarketing").
If the Remarketing Agent cannot establish such a Remarketing Rate on any of the
three Business Days immediately preceding _________, 200__, the Remarketing
Agent will further attempt to establish such a Remarketing Rate on the third
Business Day immediately preceding the Stock Purchase Date. If, in spite of
using commercially reasonable best efforts, the Remarketing Agent fails to
remarket the Notes underlying the Corporate Units at a price equal to at least
38
100.__% of the Remarketing Value in accordance with the terms of the Pledge
Agreement by 4:00 p.m., New York City time, on the third Business Day
immediately preceding the Stock Purchase Date, the "Last Failed Remarketing"
will be deemed to have occurred. Within three Business Days following the date
of a Failed Remarketing or the Last Failed Remarketing, as the case may be, the
Remarketing Agent shall return any Notes delivered to it to the Collateral Agent
and the Custodial Agent, as applicable. The Collateral Agent, for the benefit of
the Company, may exercise its rights as a secured party with respect to such
Notes, including those actions specified in subsection (b)(iii) below; provided,
that if upon the Last Failed Remarketing, the Collateral Agent exercises such
rights for the benefit of the Company with respect to such Notes, any
accumulated and unpaid interest on such Notes will become payable by the Company
to the Agent for payment to the Holder of the Corporate Units to which such
Notes relate. Such payment will be made by the Company on or prior to 11:00
a.m., New York City time, on the Stock Purchase Date in lawful money of the
United States by certified or cashier's check or wire transfer in immediately
available funds payable to or upon the order of the Agent. The Company will
cause a notice of any Failed Remarketing and of the Last Failed Remarketing to
be published on the fourth Business Day following each Failed Remarketing and
the Last Failed Remarketing, as the case may be, in a daily newspaper in the
English language of general circulation in The City of New York, which is
expected to be The Wall Street Journal. The Company will also release this
information by means of Bloomberg and Reuters newswire.
(iii) With respect to any Notes which constitute part of Corporate
Units which are subject to the Last Failed Remarketing, the Collateral Agent for
the benefit of the Company reserves all of its rights as a secured party with
respect thereto and, subject to applicable law and Section 5.4(e) below, may,
among other things, retain such Notes in full satisfaction of the Holders'
obligations under the Purchase Contracts or sell such Notes in one or more
public or private sales or otherwise.
(iv) A Holder of Corporate Units may elect not to participate in the
remarketing and retain the Notes underlying such Units by notifying the Agent of
such election and delivering the specific U.S. Treasury security or securities
(including the CUSIP number and/or the principal terms of such security or
securities) identified by the Agent that constitute the U.S. Treasury securities
described in clauses (i) and (ii) of the definition of Remarketing Value
relating to the retained Notes (as if only such Notes were being remarketed)
(the "Opt-out Treasury Consideration") to the Agent not later than 10:00 a.m.,
New York City time, on the fourth Business Day prior to the first day of a
Remarketing Period. Upon receipt thereof by the Agent, the Agent shall deliver
such Opt-out Treasury Consideration to the Collateral Agent, which will, for the
benefit of the Company, thereupon apply such Opt-out Treasury Consideration to
secure such Holder's obligations under the Purchase Contracts. On the first
Business Day immediately preceding the first day of a Remarketing Period, the
Collateral Agent, pursuant to the terms of the Pledge Agreement, will deliver
the Pledged Notes of such Holder to the Agent. Within three Business Days
following the last day of a Remarketing Period, (A) if the remarketing was
successful, the Agent shall distribute such Notes to the Holders thereof, and
(B) if there was a Failed Remarketing, the Agent will deliver such Notes to the
Collateral Agent, which will, for the benefit of the Company, thereupon apply
such Notes to secure such Holders' obligations under the Purchase Contract and
return the Opt-out Treasury Consideration delivered by such Holders to such
Holders. A Holder that does not so deliver the Opt-out Treasury Consideration or
does not so notify the Agent of its election to not participate in the
remarketing pursuant to this clause (iv) shall be deemed to have elected to
participate in the remarketing.
(c) Upon the maturity of the Pledged Treasury Securities underlying the
Treasury Units and the Pledged Treasury Consideration or Pledged Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, underlying the
Corporate Units, on the Stock Purchase Date, the Collateral Agent shall remit to
the Company an amount equal to the aggregate Purchase Price applicable to such
39
Units, as payment for the Common Stock issuable upon settlement thereof without
receiving any instructions from the Holders of such Units. In the event the
payments in respect of the Pledged Treasury Securities, Pledged Treasury
Consideration or Pledged Applicable Ownership Interest in the Treasury Portfolio
underlying a Unit is in excess of the Purchase Price of the Purchase Contract
being settled thereby, the Collateral Agent will distribute such excess to the
Agent for the benefit of the Holder of such Unit when received.
(d) Any distribution to Holders of excess funds and interest described in
Section 5.4 (b) and (c) above shall be payable at the Corporate Trust Office or,
at the option of the Holder or the holder of Separate Notes, as applicable, by
check mailed to the address of the Person entitled thereto at such address as it
appears on the Register or by wire transfer to an account appropriately
specified by the Holder or the holder of Separate Notes, as applicable.
(e) The obligations of each Holder to pay the Purchase Price are
non-recourse obligations and except to the extent paid by Early Settlement or
Merger Early Settlement, are payable solely out of the proceeds of any
Collateral pledged to secure the obligations of the Holders and in no event will
Holders be liable for any deficiency between such proceeds and the Purchase
Price.
(f) Notwithstanding anything to the contrary herein, the Company shall not
be obligated to issue any shares of Common Stock in respect of a Purchase
Contract or deliver any certificates therefor to the Holder of the related Unit
unless the Company shall have received payment in full of the aggregate Purchase
Price for the shares of Common Stock to be purchased thereunder by such Holder
in the manner herein set forth.
SECTION 5.5 ISSUANCE OF SHARES OF COMMON STOCK.
Unless a Termination Event shall have occurred on or prior to the Stock
Purchase Date or an Early Settlement or a Merger Early Settlement shall have
occurred, on the Stock Purchase Date, upon the Company's receipt of payment in
full of the Purchase Price for the shares of Common Stock purchased by the
Holders pursuant to the foregoing provisions of this Article and subject to
Section 5.6(b), the Company shall issue and deposit with the Agent, for the
benefit of the Holders of the Outstanding Units, one or more certificates
representing the newly issued shares of Common Stock registered in the name of
the Agent (or its nominee) as custodian for the Holders (such certificates for
shares of Common Stock, together with any dividends or distributions for which
both a record date and payment date for such dividend or distribution has
occurred after the Stock Purchase Date, being hereinafter referred to as the
"Purchase Contract Settlement Fund") to which the Holders are entitled
hereunder. Subject to the foregoing, upon surrender of a Certificate to the
Agent on or after the Stock Purchase Date, together with settlement instructions
thereon duly completed and executed, the Holder of such Certificate shall be
entitled to receive in exchange therefor a certificate representing that number
of whole shares of Common Stock which such Holder is entitled to receive
pursuant to the provisions of this Article V (after taking into account all
40
Units then held by such Holder) together with cash in lieu of fractional shares
as provided in Section 5.12 and any dividends or distributions with respect to
such shares constituting part of the Purchase Contract Settlement Fund, but
without any interest thereon, and the Certificate so surrendered shall forthwith
be cancelled. Such shares shall be registered in the name of the Holder or the
Holder's designee as specified in the settlement instructions provided by the
Holder to the Agent. If any shares of Common Stock issued in respect of a
Purchase Contract are to be registered to a Person other than the Person in
whose name the Certificate evidencing such Purchase Contract is registered, no
such registration shall be made unless the Person requesting such registration
has paid any transfer and other taxes required by reason of such registration in
a name other than that of the registered Holder of such Certificate or has
established to the satisfaction of the Company that such tax either has been
paid or is not payable.
SECTION 5.6 ADJUSTMENT OF SETTLEMENT RATE.
(a) Adjustments for Dividends, Distributions, Stock Splits, Etc.
(1) Stock Dividends. In case the Company shall pay or make a dividend
or other distribution on the Common Stock in Common Stock, the Settlement Rate,
in effect at the opening of business on the day following the date fixed for the
determination of stockholders entitled to receive such dividend or other
distribution shall be increased by dividing such Settlement Rate by a fraction
of which the numerator shall be the number of shares of Common Stock outstanding
at the close of business on the date fixed for such determination and the
denominator shall be the sum of such number of shares and the total number of
shares constituting such dividend or other distribution, such increase to become
effective immediately after the opening of business on the day following the
date fixed for such determination. For the purposes of this paragraph (1), the
number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include any shares issuable
in respect of any scrip certificates issued in lieu of fractions of shares of
Common Stock. The Company will not pay any dividend or make any distribution on
shares of Common Stock held in the treasury of the Company.
(2) Stock Purchase Rights. In case the Company shall issue rights,
options or warrants to all holders of its Common Stock (that are not available
on an equivalent basis to Holders of the Units upon settlement of the Purchase
Contracts underlying such Units) entitling them to subscribe for or purchase
shares of Common Stock at a price per share less than the Current Market Price
per share of the Common Stock on the date fixed for the determination of
stockholders entitled to receive such rights, options or warrants (other than
pursuant to any dividend reinvestment, share purchase or similar plan), the
Settlement Rate in effect at the opening of business on the day following the
date fixed for such determination shall be increased by dividing such Settlement
Rate by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock which the aggregate of
the offering price of the total number of shares of Common Stock so offered for
subscription or purchase would purchase at such Current Market Price and the
denominator of which shall be the number of shares of Common Stock outstanding
at the close of business on the date fixed for such determination plus the
number of shares of Common Stock so offered for subscription or purchase, such
increase to become effective immediately after the opening of business on the
day following the date fixed for such determination. For the purposes of this
paragraph (2), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company but shall include
any shares issuable in respect of any scrip certificates issued in lieu of
fractions of shares of Common Stock. The Company shall not issue any such
rights, options or warrants in respect of shares of Common Stock held in the
treasury of the Company.
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(3) Stock Splits; Reverse Splits. In case outstanding shares of Common
Stock shall be subdivided or split into a greater number of shares of Common
Stock, the Settlement Rate in effect at the opening of business on the day
following the day upon which such subdivision or split becomes effective shall
be proportionately increased, and, conversely, in case outstanding shares of
Common Stock shall each be combined into a smaller number of shares of Common
Stock, the Settlement Rate in effect at the opening of business on the day
following the day upon which such combination becomes effective shall be
proportionately reduced, such increase or reduction, as the case may be, to
become effective immediately after the opening of business on the day following
the day upon which such subdivision, split or combination becomes effective.
(4) Debt or Asset Distributions. (i) In case the Company shall, by
dividend or otherwise, distribute to all holders of its Common Stock evidences
of its indebtedness or assets (including securities, but excluding any rights or
warrants referred to in paragraph (2) of this Section, any dividend or
distribution paid exclusively in cash and any dividend, shares of capital stock
of any class or series, or similar equity interests, of or relating to a
subsidiary or other business unit in the case of a Spin-Off referred to in the
next paragraph, or dividend or other distribution referred to in paragraph (1)
of this Section), the Settlement Rate shall be adjusted so that the same shall
equal the rate determined by dividing the Settlement Rate in effect immediately
prior to the close of business on the date fixed for the determination of
stockholders entitled to receive such distribution by a fraction, the numerator
of which shall be the Current Market Price per share of the Common Stock on the
date fixed for such determination less the then fair market value (as determined
by the Board of Directors, whose determination shall be conclusive and described
in a Board Resolution) of the portion of the assets or evidences of indebtedness
so distributed applicable to one share of Common Stock and the denominator of
which shall be such Current Market Price per share of the Common Stock, such
adjustment to become effective immediately prior to the opening of business on
the day following the date fixed for the determination of stockholders entitled
to receive such distribution. In any case in which this paragraph (4) is
applicable, paragraphs (1) and (2) of this Section shall not be applicable.
(ii) In the case of a Spin-Off, the Settlement Rate in effect
immediately before the close of business on the record date fixed for
determination of stockholders entitled to receive that distribution will be
increased by multiplying the Settlement Rate by a fraction, the numerator of
which is the Current Market Price per share of the Common Stock plus the Fair
Market Value of the portion of those shares of Capital Stock or similar equity
interests so distributed applicable to one share of Common Stock and the
denominator of which is the Current Market Price per share of the Common Stock.
Any adjustment to the settlement rate under this paragraph 4(ii) will occur on
the date that is the earlier of (1) the tenth Trading Day following the
effective date of the Spin-Off and (2) the date of the securities being offered
in the Initial Public Offering of the Spin-Off, if that Initial Public Offering
is effected simultaneously with the Spin-Off.
(5) Cash Distributions. In case the Company shall, (i) by dividend or
otherwise, distribute to all holders of its Common Stock cash (excluding any
cash that is distributed in a Reorganization Event to which Section 5.6(b)
applies or as part of a distribution referred to in paragraph (4) of this
Section) in an aggregate amount that, when combined together with (ii) the
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aggregate amount of any other distributions to all holders of its Common Stock
made exclusively in cash (other than regular quarterly cash dividends) within
the 12 months preceding the date of payment of such distribution and in respect
of which no adjustment pursuant to this paragraph (5) or paragraph (6) of this
Section has been made and (iii) the aggregate of any cash plus the fair market
value, as of the date of the expiration of the tender or exchange offer referred
to below (as determined by the Board of Directors, whose determination shall be
conclusive and described in a Board Resolution), of consideration payable in
respect of any tender or exchange offer (other than consideration payable in
respect of any odd lot tender offer) by the Company or any of its subsidiaries
for all or any portion of the Common Stock concluded within the 12 months
preceding the date of payment of the distribution described in clause (i) above
and in respect of which no adjustment pursuant to this paragraph (5) or
paragraph (6) of this Section has been made, exceeds 15% of the product of the
Current Market Price per share of the Common Stock on the date for the
determination of holders of shares of Common Stock entitled to receive such
distribution times the number of shares of Common Stock outstanding on such
date, then, and in each such case, immediately after the close of business on
such date for determination, the Settlement Rate shall be increased so that the
same shall equal the rate determined by dividing the Settlement Rate in effect
immediately prior to the close of business on the date fixed for determination
of the stockholders entitled to receive such distribution by a fraction (A) the
numerator of which shall be equal to the Current Market Price per share of the
Common Stock on the date fixed for such determination less an amount equal to
the quotient of (x) the combined amount distributed or payable in the
transactions described in clauses (i), (ii) and (iii) above and (y) the number
of shares of Common Stock outstanding on such date for determination and (B) the
denominator of which shall be equal to the Current Market Price per share of the
Common Stock on such date for determination.
(6) Tender Offers. In case (i) a tender or exchange offer made by the
Company or any subsidiary of the Company for all or any portion of the Common
Stock shall expire and such tender or exchange offer (as amended upon the
expiration thereof) shall require the payment to stockholders (based on the
acceptance (up to any maximum specified in the terms of the tender or exchange
offer) of Purchased Shares (as defined below)) of an aggregate consideration
having a fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution) that when
combined together with (ii) the aggregate of the cash plus the fair market value
(as determined by the Board of Directors, whose determination shall be
conclusive and described in a Board Resolution), as of the expiration of such
tender or exchange offer (other than consideration payable in respect of any odd
lot tender offer), of consideration payable in respect of any other tender or
exchange offer, by the Company or any subsidiary of the Company for all or any
portion of the Common Stock expiring within the 12 months preceding the
expiration of such tender or exchange offer and in respect of which no
adjustment pursuant to paragraph (5) of this Section or this paragraph (6) has
been made and (iii) the aggregate amount of any distributions to all holders of
the Company's Common Stock made exclusively in cash (other than regular
quarterly cash dividends) within the 12 months preceding the expiration of such
43
tender or exchange offer and in respect of which no adjustment pursuant to
paragraph (5) of this Section or this paragraph (6) has been made, exceeds 15%
of the product of the Current Market Price per share of the Common Stock as of
the last time (the "Expiration Time") tenders could have been made pursuant to
such tender or exchange offer (as it may be amended) times the number of shares
of Common Stock outstanding (including any tendered shares) on the Expiration
Time, then, and in each such case, immediately prior to the opening of business
on the day after the date of the Expiration Time, the Settlement Rate shall be
adjusted so that the same shall equal the rate determined by dividing the
Settlement Rate immediately prior to the close of business on the date of the
Expiration Time by a fraction (A) the numerator of which shall be equal to (x)
the product of (I) the Current Market Price per share of the Common Stock on the
date of the Expiration Time and (II) the number of shares of Common Stock
outstanding (including any tendered shares) on the Expiration Time less (y) the
amount of cash plus the fair market value (determined as aforesaid) of the
aggregate consideration payable to stockholders based on the transactions
described in clauses (i), (ii) and (iii) above (assuming in the case of clause
(i) the acceptance, up to any maximum specified in the terms of the tender or
exchange offer, of Purchased Shares), and (B) the denominator of which shall be
equal to the product of (x) the Current Market Price per share of the Common
Stock as of the Expiration Time and (y) the number of shares of Common Stock
outstanding (including any tendered shares) as of the Expiration Time less the
number of all shares validly tendered and not withdrawn as of the Expiration
Time (the shares deemed so accepted, up to any such maximum, being referred to
as the "Purchased Shares").
(7) Reclassification. The reclassification of Common Stock into
securities including securities other than Common Stock (other than any
reclassification upon a Reorganization Event to which Section 5.6(b)
applies) shall be deemed to involve (i) a distribution of such securities other
than Common Stock to all holders of Common Stock (and the effective date of such
reclassification shall be deemed to be "the date fixed for the determination of
stockholders entitled to receive such distribution" and "the date fixed for such
determination" within the meaning of paragraph (4) of this Section), and (ii) a
subdivision, split or combination, as the case may be, of the number of shares
of Common Stock outstanding immediately prior to such reclassification into the
number of shares of Common Stock outstanding immediately thereafter (and the
effective date of such reclassification shall be deemed to be "the day upon
which such subdivision or split becomes effective" or "the day upon which such
combination becomes effective", as the case may be, and "the day upon which such
subdivision, split or combination becomes effective" within the meaning of
paragraph (3) of this Section).
(8) Current Market Price. The "Current Market Price" per share of the
Common Stock means (a) on any day the average of the Closing Prices for the five
consecutive Trading Days selected by the Company commencing not more than 20
Trading Days before, and ending not later than, the earlier of the day preceding
the day in question and the day before the "ex date" with respect to the
issuance or distribution requiring such computation, (b) in the case of any
Spin-Off that is effected simultaneously with an Initial Public Offering of the
securities being distributed in the Spin-Off, the Closing Price of the Common
Stock on the Trading Day on which the initial public offering price of the
securities being distributed in the Spin-Off is determined, and (c) in the case
of any other Spin-Off, the average of the Closing Prices of the Common Stock
44
over the first 10 Trading Days after the effective date of such Spin-Off. For
purposes of this paragraph, the term "ex date," when used with respect to any
issuance or distribution, shall mean the first date on which the Common Stock
trades regular way on such exchange or in such market without the right to
receive such issuance or distribution.
(9) Calculation of Adjustments. All adjustments to the Settlement Rate
shall be calculated to the nearest 1/10,000th of a share of Common Stock (or if
there is not a nearest 1/10,000th of a share to the next lower 1/10,000th of a
share). No adjustment in the Settlement Rate shall be required unless such
adjustment would require an increase or decrease of at least one percent
therein; provided, however, that any adjustments which by reason of this
subparagraph are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. If an adjustment is made to the Settlement
Rate pursuant to paragraph (1), (2), (3), (4), (5), (6), (7) or (10) of this
Section 5.6(a), an adjustment shall also be made to the Applicable Market Value
solely to determine which of clauses (i), (ii) or (iii) of the definition of
Settlement Rate in Section 5.1(a) will apply on the Stock Purchase Date. Such
adjustment shall be made by multiplying the Applicable Market Value by a
fraction, the numerator of which shall be the Settlement Rate immediately after
such adjustment pursuant to paragraph (1), (2), (3), (4), (5), (6), (7) or (10)
of this Section 5.6(a) and the denominator of which shall be the Settlement Rate
immediately before such adjustment; provided, however, that if such adjustment
to the Settlement Rate is required to be made pursuant to the occurrence of any
of the events contemplated by paragraph (1), (2), (3), (4), (5), (7) or (10) of
this Section 5.6(a) during the period taken into consideration for determining
the Applicable Market Value, appropriate and customary adjustments shall be made
to the Settlement Rate.
(10) Increase of Settlement Rate. The Company may make such increases
in the Settlement Rate, in addition to those required by this Section, as it
considers to be advisable in order to avoid or diminish any income tax to any
holders of shares of Common Stock resulting from any dividend or distribution of
stock or issuance of rights or warrants to purchase or subscribe for stock or
from any event treated as such for income tax purposes or for any other reasons.
(b) Adjustment for Consolidation, Merger or Other Reorganization Event.
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In the event of
(1) any consolidation or merger of the Company with or into another
Person (other than a merger or consolidation in which the Company is the
continuing corporation and in which the Common Stock outstanding immediately
prior to the merger or consolidation is not exchanged for cash, securities or
other property of the Company or another corporation),
(2) any sale, transfer, lease or conveyance to another Person of the
property of the Company as an entirety or substantially as an entirety,
(3) any statutory exchange of securities of the Company with another
Person (other than in connection with a merger or acquisition), or
(4) any liquidation, dissolution or winding up of the Company other
than as a result of or after the occurrence of a Termination Event (any
such event, a "Reorganization Event"), each share of Common Stock covered by
each Purchase Contract forming a part of a Unit immediately prior to such
Reorganization Event shall, after such Reorganization Event, be converted for
purposes of the Purchase Contract into the kind and amount of securities, cash
45
and other property receivable in such Reorganization Event (without any interest
thereon, and without any right to dividends or distribution thereon which have a
record date that is prior to the Stock Purchase Date) per share of Common Stock
by a holder of Common Stock that (i) is not a Person with which the Company
consolidated or into which the Company merged or which merged into the Company
or to which such sale or transfer was made, as the case may be (any such Person,
a "Constituent Person"), or an Affiliate of a Constituent Person to the extent
such Reorganization Event provides for different treatment of Common Stock held
by Affiliates of the Company and non-Affiliates, and (ii) failed to exercise his
rights of election, if any, as to the kind or amount of securities, cash and
other property receivable upon such Reorganization Event (provided that if the
kind or amount of securities, cash and other property receivable upon such
Reorganization Event is not the same for each share of Common Stock held
immediately prior to such Reorganization Event by other than a Constituent
Person or an Affiliate thereof and in respect of which such rights of election
shall not have been exercised ("Non-electing Share"), then for the purpose of
this Section the kind and amount of securities, cash and other property
receivable upon such Reorganization Event by each Non-electing Share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
Non-electing Shares). On the Stock Purchase Date, the Settlement Rate then in
effect will be applied to the value on the Stock Purchase Date of such
securities, cash or other property.
In the event of such a Reorganization Event, the Person formed by such
consolidation, merger or exchange or the Person which acquires the assets of the
Company or, in the event of a liquidation or dissolution of the Company, the
Company or a liquidating trust created in connection therewith, shall execute
and deliver to the Agent an agreement supplemental hereto providing that the
Holder of each Outstanding Unit shall have the rights provided by this Section
5.6. Such supplemental agreement shall provide for adjustments which, for events
subsequent to the effective date of such supplemental agreement, shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Section. The above provisions of this Section shall similarly apply to
successive Reorganization Events.
SECTION 5.7 NOTICE OF ADJUSTMENTS AND CERTAIN OTHER EVENTS.
(a) Whenever the Settlement Rate is adjusted as herein provided, the
Company shall:
(i) forthwith compute the Settlement Rate in accordance with Section
5.6 and prepare and transmit to the Agent a Company Certificate setting
forth the Settlement Rate, the method of calculation thereof in reasonable
detail, and the facts requiring such adjustment and upon which such
adjustment is based; and
(ii) as soon as practicable following the occurrence of an event that
requires or permits an adjustment to the Settlement Rate pursuant to
Section 5.6 (or if the Company is not aware of such occurrence, as soon as
practicable after becoming so aware), provide a written notice to the Agent
of the occurrence of such event and a statement setting forth in reasonable
detail the method by which the adjustment to the Settlement Rate was
determined and setting forth the adjusted Settlement Rate.
(b) The Agent shall not at any time be under any duty or responsibility to
any Holder of Units to determine whether any facts exist which may require any
adjustment of the Settlement Rate, or with respect to the nature or extent or
calculation of any such adjustment when made, or with respect to the method
46
employed in making the same. The Agent shall not be accountable with respect to
the validity or value (or the kind or amount) of any shares of Common Stock, or
of any securities or property, which may at the time be issued or delivered with
respect to any Purchase Contract, and the Agent makes no representation with
respect thereto. The Agent shall not be responsible for any failure of the
Company to issue, transfer or deliver any shares of Common Stock pursuant to a
Purchase Contract or to comply with any of the duties, responsibilities or
covenants of the Company contained in this Article.
SECTION 5.8 TERMINATION EVENT; NOTICE.
The Purchase Contracts and all obligations and rights of the Company and
the Holders thereunder, including, without limitation, the rights of Holders to
receive accumulated Contract Adjustment Payments, if any, or any Deferred
Contract Adjustment Payments and obligations of the Holders to purchase Common
Stock, will immediately and automatically terminate, without the necessity of
any notice or action by any Holder, the Agent or the Company, if, on or prior to
the Stock Purchase Date, a Termination Event shall have occurred. Upon and after
the occurrence of a Termination Event, the Corporate Units shall thereafter
represent the right to receive the Notes or the appropriate Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, forming a part of such Corporate Units, and the Treasury Units
shall thereafter represent the right to receive the Treasury Securities forming
a part of such Treasury Units, in each case in accordance with the provisions of
Section 4.3 of the Pledge Agreement. Upon the occurrence of a Termination Event,
the Company shall promptly but in no event later than two Business Days
thereafter give written notice to the Agent, the Collateral Agent and to the
Holders, at their addresses as they appear in the Register.
SECTION 5.9 EARLY SETTLEMENT.
(a) Subject to and upon compliance with the provisions of this Section 5.9,
Purchase Contracts underlying Units having an aggregate Stated Amount equal to
$1,000 or an integral multiple thereof, may, at the option of the Holder
thereof, be settled early ("Early Settlement") on or prior to 10:00 a.m., New
York City time, on the seventh Business Day immediately preceding the Stock
Purchase Date. In order to exercise the right to effect Early Settlement with
respect to any Purchase Contracts, the Holder of the Certificate evidencing the
related Units shall deliver such Certificate to the Agent at the Corporate Trust
Office duly endorsed for transfer to the Company or in blank with the form of
"Election to Settle Early" on the reverse thereof duly completed and accompanied
by payment payable to the Company in immediately available funds in an amount
(the "Early Settlement Amount") equal to (A) the product of (i) the Stated
Amount of such Units multiplied by (ii) the number of Purchase Contracts with
respect to which the Holder has elected to effect Early Settlement, plus (B) if
such delivery is made with respect to any Purchase Contracts during the period
from close of business on any Record Date next preceding any Payment Date to the
opening of business on such Payment Date, an amount equal to the Contract
47
Adjustment Payments, if any, payable on such Payment Date with respect to such
Purchase Contracts; provided that no payment shall be required pursuant to
clause (B) of this sentence if the Company shall have elected to defer the
Contract Adjustment Payments which would otherwise be payable on such Payment
Date. Except as provided in the immediately preceding sentence and subject to
Section 5.2(d), no payment or adjustment shall be made upon Early Settlement of
any Purchase Contract on any Contract Adjustment Payments accrued on such
Purchase Contract or on account of any dividends on the Common Stock issued upon
such Early Settlement. If the foregoing requirements are first satisfied with
respect to Purchase Contracts underlying any Unit at or prior to 5:00 p.m., New
York City time, on a Business Day, such day shall be the "Early Settlement Date"
with respect to such Unit and if such requirements are first satisfied after
5:00 p.m., New York City time, on a Business Day or on a day that is not a
Business Day, the "Early Settlement Date" with respect to such Units shall be
the next succeeding Business Day.
(b) Upon Early Settlement of any Purchase Contract by the Holder of the
related Units, the Company shall issue, and the Holder shall be entitled to
receive, ______ shares of Common Stock on account of such Purchase Contract (the
"Early Settlement Rate"). The Early Settlement Rate shall be adjusted in the
same manner and at the same time as the Settlement Rate is adjusted. As promptly
as practicable after Early Settlement of Purchase Contracts in accordance with
the provisions of this Section 5.9, the Company shall issue and shall deliver to
the Agent at the Corporate Trust Office a certificate or certificates for the
full number of shares of Common Stock issuable upon such Early Settlement
together with payment in lieu of any fraction of a share, as provided in Section
5.12.
(c) No later than the third Business Day after the applicable Early
Settlement Date the Company shall cause (i) the shares of Common Stock issuable
upon Early Settlement of Purchase Contracts to be issued and delivered, and (ii)
the related Pledged Notes, Pledged Treasury Consideration or Pledged Applicable
Ownership Interest in the Treasury Portfolio, in the case of Corporate Units, or
the related Pledged Treasury Securities, in the case of Treasury Units, to be
released from the Pledge by the Collateral Agent and transferred, in each case,
to the Agent for delivery to the Holder thereof or the Holder's designee.
(d) Upon Early Settlement of any Purchase Contracts, and subject to receipt
of shares of Common Stock from the Company and the Pledged Notes, Pledged
Treasury Consideration, Pledged Applicable Ownership Interest in the Treasury
Portfolio, or Pledged Treasury Securities, as the case may be, from the
Collateral Agent, as applicable, the Agent shall, in accordance with the
instructions provided by the Holder thereof on the applicable form of Election
to Settle Early on the reverse of the Certificate evidencing the related Units,
(i) transfer to the Holder the Pledged Notes, Pledged Treasury Consideration,
Pledged Applicable Ownership Interest in the Treasury Portfolio, or Pledged
Treasury Securities, as the case may be, forming a part of such Units, and (ii)
deliver to the Holder a certificate or certificates for the full number of
shares of Common Stock issuable upon such Early Settlement together with payment
in lieu of any fraction of a share, as provided in Section 5.12.
(e) In the event that Early Settlement is effected with respect to Purchase
Contracts underlying less than all the Units evidenced by a Certificate, upon
such Early Settlement the Company shall execute and the Agent shall
authenticate, countersign and deliver to the Holder thereof, at the expense of
the Company, a Certificate evidencing the Units as to which Early Settlement was
not effected.
48
SECTION 5.10 EARLY SETTLEMENT UPON CASH MERGER.
(a) In the event of a merger or consolidation of the Company of the type
described in clause (1) of Section 5.6(b) in which the Common Stock outstanding
immediately prior to such merger or consolidation is exchanged for consideration
consisting of at least 30% cash or cash equivalents (any such event a "Cash
Merger"), then the Company (or the successor to the Company hereunder) shall be
required to offer the Holder of each Unit the right to settle the Purchase
Contract underlying such Unit prior to the Stock Purchase Date ("Merger Early
Settlement") as provided herein. On or before the fifth Business Day after the
consummation of a Cash Merger, the Company or, at the request and expense of the
Company, the Agent, shall give all Holders notice of the occurrence of the Cash
Merger and of the right of Merger Early Settlement arising as a result thereof.
The Company shall also deliver a copy of such notice to the Agent and the
Collateral Agent.
Each such notice shall contain:
(i) the date, which shall be not less than 20 nor more than 30
calendar days after the date of such notice, on which the Merger Early
Settlement will be effected (the "Merger Early Settlement Date");
(ii) the date, which shall be on or one Business Day prior to the
Merger Early Settlement Date, by which the Merger Early Settlement right
must be exercised;
(iii) the Settlement Rate in effect as a result of such Cash Merger
and the kind and amount of cash, securities and other property receivable
by the Holder upon settlement of each Purchase Contract pursuant to Section
5.6(b);
(iv) a statement to the effect that all or a portion of the Purchase
Price payable by the Holder to settle the Purchase Contract will be offset
against the amount of cash so receivable upon exercise of Merger Early
Settlement, as applicable; and
(v) the instructions a Holder must follow to exercise the Merger Early
Settlement right.
(b) To exercise a Merger Early Settlement right, a Holder shall deliver to
the Agent at the Corporate Trust Office at or before 5:00 p.m., New York City
time on the date specified in the notice, the Certificate(s) evidencing the
Units with respect to which the Merger Early Settlement right is being exercised
duly endorsed for transfer to the Company or in blank with the form of "Election
to Settle Early" on the reverse thereof duly completed and accompanied by
payment payable to the Company in immediately available funds in an amount equal
to the Early Settlement Amount less the amount of cash that otherwise would be
deliverable by the Company or its successor upon settlement of the Purchase
Contract in lieu of Common Stock pursuant to Section 5.6(b) and as described in
the notice to Holders (the "Merger Early Settlement Amount").
(c) On the Merger Early Settlement Date, the Company shall deliver or cause
to be delivered (i) the net cash, securities and other property to be received
by such exercising Holder, equal to the Settlement Rate as adjusted pursuant to
49
Section 5.6, in respect of the number of Purchase Contracts for which such
Merger Early Settlement right was exercised, and (ii) the related Pledged Notes,
Pledged Treasury Consideration or Pledged Applicable Ownership Interest in the
Treasury Portfolio, in the case of Corporate Units, or Pledged Treasury
Securities, in the case of Treasury Units, to be released from the Pledge by the
Collateral Agent and transferred, in each case, to the Agent for delivery to the
Holder thereof or its designee. In the event a Merger Early Settlement right
shall be exercised by a Holder in accordance with the terms hereof, all
references herein to Stock Purchase Date shall be deemed to refer to such Merger
Early Settlement Date.
(d) Upon Merger Early Settlement of any Purchase Contracts, and subject to
receipt of such net cash, securities or other property from the Company and the
Pledged Notes, Pledged Treasury Consideration, Pledged Applicable Ownership
Interest in the Treasury Portfolio or Pledged Treasury Securities, as the case
may be, from the Collateral Agent, as applicable, the Agent shall, in accordance
with the instructions provided by the Holder thereof on the applicable form of
Election to Settle Early on the reverse of the Certificate evidencing the
related Units, (i) transfer to the Holder the Pledged Notes, Pledged Treasury
Consideration, Pledged Applicable Ownership Interest in the Treasury Portfolio,
or Pledged Treasury Securities, as the case may be, forming a part of such
Units, and (ii) deliver to the Holder such net cash, securities or other
property issuable upon such Merger Early Settlement together with payment in
lieu of any fraction of a share, as provided in Section 5.12.
(e) In the event that Merger Early Settlement is effected with respect to
Purchase Contracts underlying less than all the Units evidenced by a
Certificate, upon such Merger Early Settlement the Company (or the successor to
the Company hereunder) shall execute and the Agent shall authenticate,
countersign and deliver to the Holder thereof, at the expense of the Company, a
Certificate evidencing the Units as to which Merger Early Settlement was not
effected.
SECTION 5.11 CHARGES AND TAXES.
The Company will pay all stock transfer and similar taxes attributable to
the initial issuance and delivery of the shares of Common Stock pursuant to the
Purchase Contracts and in payment of any Deferred Contract Adjustment Payments;
provided, that the Company shall not be required to pay any such tax or taxes
which may be payable in respect of any exchange of or substitution for a
Certificate evidencing a Unit or any issuance of a share of Common Stock in a
name other than that of the registered Holder of a Certificate surrendered in
respect of the Units evidenced thereby, other than in the name of the Agent, as
custodian for such Holder, and the Company shall not be required to issue or
deliver such share certificates or Certificates unless and until the Person or
Persons requesting the transfer or issuance thereof shall have paid to the
Company the amount of such tax or shall have established to the satisfaction of
the Company that such tax has been paid.
SECTION 5.12 NO FRACTIONAL SHARES.
No fractional shares or scrip representing fractional shares of Common
Stock shall be issued or delivered upon settlement on the Stock Purchase Date or
upon Early Settlement or Merger Early Settlement of any Purchase Contracts. If
Certificates evidencing more than one Purchase Contract shall be surrendered for
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settlement at one time by the same Holder, the number of full shares of Common
Stock which shall be delivered upon settlement shall be computed on the basis of
the aggregate number of Purchase Contracts evidenced by the Certificates so
surrendered. Instead of any fractional share of Common Stock which would
otherwise be deliverable upon settlement of any Purchase Contracts on the
applicable Settlement Date or upon Early Settlement or Merger Early Settlement,
the Company, through the Agent, shall make a cash payment in respect of such
fractional shares in an amount equal to the value of such fractional shares
times the Applicable Market Value. The Company shall provide the Agent from time
to time with sufficient funds to permit the Agent to make all cash payments
required by this Section 5.12 in a timely manner.
ARTICLE VI.
REMEDIES
SECTION 6.1 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PURCHASE CONTRACT
ADJUSTMENT PAYMENTS AND PURCHASE COMMON STOCK.
The Holder of any Unit shall have the right, which is absolute and
unconditional,
(a) subject to the right of the Company to defer payment thereof pursuant
to Section 5.3, and to the forfeiture of any Deferred Contract Adjustment
Payments upon Early Settlement pursuant to Section 5.9 or upon Merger Early
Settlement pursuant to Section 5.10 or upon the occurrence of a Termination
Event, to receive payment of each installment of the Contract Adjustment
Payments, if any, with respect to the Purchase Contract constituting a part of
such Unit on the respective Payment Date for such Unit and to institute suit for
the enforcement of such right to receive Contract Adjustment Payments, and
(b) to purchase Common Stock pursuant to the Purchase Contract constituting
a part of such Unit and to institute suit for the enforcement of any such right
to purchase Common Stock, and such rights shall not be impaired without the
consent of such Holder.
SECTION 6.2 RESTORATION OF RIGHTS AND REMEDIES.
If any Holder has instituted any proceeding to enforce any right or remedy
under this Agreement and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to such Holder, then and in every
such case, subject to any determination in such proceeding, the Company and such
Holder shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of such Holder shall continue
as though no such proceeding had been instituted.
SECTION 6.3 RIGHTS AND REMEDIES CUMULATIVE.
Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Certificates in Section 3.10(f), no right
or remedy herein conferred upon or reserved 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
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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 6.4 DELAY OR OMISSION NOT WAIVER.
No delay or omission of any Holder to exercise any right or remedy upon a
Default shall impair any such right or remedy or constitute a waiver of any such
right. Every right and remedy given by this Article or by law to the Holders may
be exercised from time to time, and as often as may be deemed expedient, by such
Holders.
SECTION 6.5 UNDERTAKING FOR COSTS.
All parties to this Agreement agree, and each Holder of a Unit, by its
acceptance of such Unit 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 Agreement, or in any suit against the Agent for any action taken,
suffered or omitted by it as Agent, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; provided that
the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Agent, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% of the
Outstanding Units, or to any suit instituted by any Holder for the enforcement
of distributions on any Notes on any Purchase Contract on or after the
respective Payment Date therefor in respect of any Unit held by such Holder, or
for enforcement of the right to purchase shares of Common Stock under the
Purchase Contract constituting part of any Unit held by such Holder.
SECTION 6.6 WAIVER OF STAY OR EXTENSION LAWS.
The Company 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 Agreement; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, but will suffer and permit the execution of every such power as though no
such law had been enacted.
ARTICLE VII.
THE AGENT
SECTION 7.1 CERTAIN DUTIES AND RESPONSIBILITIES.
(a) Prior to a Default and after the curing or waiving of all such Defaults
that may have occurred,
(1) the Agent undertakes to perform, with respect to the Units, such
duties and only such duties as are specifically set forth in this Agreement and
no implied covenants or obligations shall be read into this Agreement against
the Agent; and
52
(2) the Agent may, with respect to the Units, conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, in the absence of bad faith on the part of the Agent, upon certificates
or opinions furnished to the Agent and conforming to the requirements of this
Agreement; but in the case of any certificates or opinions which by any
provision hereof are specifically required to be furnished to the Agent, the
Agent shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Agreement.
(b) No provision of this Agreement shall be construed to relieve the Agent
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 Agent shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be proved
that the Agent was negligent in ascertaining the pertinent facts; and
(3) no provision of this Agreement shall require the Agent 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.
(c) Whether or not therein expressly so provided, every provision of this
Agreement relating to the conduct or affecting the liability of or affording
protection to the Agent shall be subject to the provisions of this Section.
(d) The Agent is authorized to execute, deliver and perform the Pledge
Agreement in its capacity as Agent and to grant the Pledge. The Agent shall be
entitled to all of the rights, privileges, immunities and indemnities contained
in this Agreement with respect to any duties of the Agent under, or actions
taken by the Agent pursuant to, such Pledge Agreement and any Remarketing
Agreement entered into by the Agent to effectuate Section 5.4 hereof or Section
6.3 of the Pledge Agreement.
(e) In case a Default has occurred (that has not been cured or waived), and
is actually known by a Responsible Officer of the Agent, the Agent shall
exercise such of the rights and powers vested in it by this Agreement, and use
the same degree of care and skill in its exercise thereof, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own
affairs.
(f) At the request of the Company, the Agent is authorized to execute and
deliver one or more Remarketing Agreements to, among other things, effectuate
Section 5.4
SECTION 7.2 NOTICE OF DEFAULT.
Within 30 days after the occurrence of any Default by the Company hereunder
of which a Responsible Officer of the Agent has actual knowledge, the Agent
shall transmit by mail to the Company and the Holders of Units, as their names
53
and addresses appear in the Register, notice of such Default hereunder, unless
such Default shall have been cured or waived; provided that, except for a
Default in any payment obligation hereunder, the Agent shall be protected in
withholding such notice if and so long as a Responsible Officer of the Agent in
good faith determines that the withholding of such notice is in the interests of
the Holders of the Units.
SECTION 7.3 CERTAIN RIGHTS OF AGENT.
Subject to the provisions of Section 7.1:
(a) the Agent may conclusively 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 Certificate, Issuer Order or Issuer Request,
and any resolution of the Board of Directors of the Company may be sufficiently
evidenced by a Board Resolution;
(c) whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Agent (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
a Company Certificate;
(d) the Agent may consult with counsel of its selection and the advice of
such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon; (e) the Agent 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 Agent, in its discretion, may
make reasonable further inquiry or investigation into such facts or matters
related to the execution, delivery and performance of the Purchase Contracts as
it may see fit, and, if the Agent shall determine to make such further inquiry
or investigation, it shall be given a reasonable opportunity to examine the
books, records and premises of the Company, personally or by agent or attorney;
(f) the Agent may execute any of the powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys or an Affiliate
of the Agent and the Agent shall not be responsible for any misconduct or
negligence on the part of any agent or attorney or an Affiliate appointed with
due care by it hereunder;
(g) the rights, privileges, protections, immunities and benefits given to
the Agent, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Agent in each of its capacities
hereunder;
(h) the Agent shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement at the request or direction of any of the
54
Holders pursuant to this Agreement, unless such Holders shall have offered to
the Agent security or indemnity satisfactory to the Agent against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction; and
(i) the Agent shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Agreement.
SECTION 7.4 NOT RESPONSIBLE FOR RECITALS, ETC.
The recitals contained herein and in the Certificates shall be taken as the
statements of the Company and the Agent assumes no responsibility for their
accuracy. The Agent makes no representations as to the validity or sufficiency
of either this Agreement or of the Units, or of the Pledge Agreement or the
Pledge. The Agent shall not be accountable for the use or application by the
Company of the proceeds in respect of the Purchase Contracts.
SECTION 7.5 MAY HOLD UNITS AND OTHER DEALINGS.
Any Registrar or any other agent of the Company, or the Agent and its
Affiliates, in their individual or any other capacity, may become the owner or
pledgee of Units and may otherwise deal with the Company, the Collateral Agent
or any other Person with the same rights it would have if it were not Registrar
or such other agent, or the Agent. The Agent and its Affiliates may (without
having to account therefor to the Company or any Holder of Units or holder of
Separate Notes) accept deposits from, lend money to, make their investments in
and generally engage in any kind of banking, trust or other business with the
Company, any Holder of Units and any holder of Separate Notes (and any of their
respective subsidiaries or Affiliates) as if it were not acting as the Agent and
the Agent and their Affiliates may accept fees and other consideration from the
Company, any Holder of Units or any holder of Separate Notes without having to
account for the same to any such Person.
SECTION 7.6 MONEY HELD IN CUSTODY.
Money held by the Agent in custody hereunder need not be segregated
from the Agent's other funds except to the extent required by law or provided
herein. The Agent shall be under no obligation to invest or pay interest on any
money received by it hereunder except as otherwise agreed in writing with the
Company.
SECTION 7.7 COMPENSATION AND REIMBURSEMENT.
The Company agrees:
(a) to pay to the Agent from time to time compensation for all services
rendered by it hereunder as shall be agreed in writing between the Company and
the Agent;
(b) except as otherwise expressly provided herein, to reimburse the Agent
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Agent in accordance with any provision of this Agreement
(including the reasonable compensation and the reasonable expenses and
55
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence, willful misconduct or bad
faith; and
(c) to indemnify the Agent and any predecessor Agent for, and to hold it
harmless against, any loss, liability or reasonable out-of-pocket expense
incurred without negligence, willful misconduct or bad faith on its part,
arising out of or in connection with the acceptance or administration of its
duties hereunder, including the costs and expenses (including reasonable fees
and expenses of counsel) of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties under
this Agreement. The Agent shall each promptly notify the Company of any third
party claim which may give rise to the indemnity hereunder and give the Company
the opportunity to participate in the defense of such claim with counsel
reasonably satisfactory to the indemnified party, and no such claim shall be
settled without the written consent of the Company, which consent shall not be
unreasonably withheld.
"Agent" for purposes of this Section 7.7 shall include any predecessor
Agent; provided, however, that the negligence or bad faith of any Agent
hereunder shall not affect the rights of any other Agent hereunder.
When the Agent incurs expenses or renders services in an action or
proceeding commenced pursuant to Section 4.3 of the Pledge Agreement upon the
occurrence of a Termination Event, the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable federal
or state bankruptcy, insolvency or other similar law.
The provisions of this Section 7.7 shall survive the termination of this
Agreement and the Pledge Agreement.
SECTION 7.8 CORPORATE AGENT REQUIRED; ELIGIBILITY.
There shall at all times be an Agent hereunder which shall be (i) not an
Affiliate of the Company and (ii) 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 (or being a member of a bank holding company having) a combined
capital and surplus of at least $50,000,000 and subject to supervision or
examination by federal or state authority and having a Corporate Trust Office in
the Borough of Manhattan, The City of New York, if there be such a corporation,
qualified and eligible under this Article and willing to act on reasonable
terms. If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Agent shall cease to be eligible in accordance with the provisions
of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
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SECTION 7.9 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.
(a) No resignation or removal of the Agent and no appointment of a
successor Agent pursuant to this Article shall become effective until the
acceptance of appointment by the successor Agent in accordance with the
applicable requirements of Section 7.10.
(b) The Agent may resign at any time by giving written notice thereof to
the Company 60 days prior to the effective date of such resignation. If the
instrument of acceptance by a successor Agent required by Section 7.10 shall not
have been delivered to the Agent within 30 days after the giving of such notice
of resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a successor Agent.
(c) The Agent may be removed at any time by Act of the Holders of a
majority in number of the Outstanding Units delivered to the Agent and the
Company.
(d) If at any time:
(1) the Agent fails to comply with Section 310(b) of the TIA, after
written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Unit for at least six months; or
(2) the Agent shall cease to be eligible under Section 7.8 and shall
fail to resign after written request therefor by the Company or by any such
Holder; or
(3) the Agent shall become incapable of acting or shall be adjudged
bankrupt or insolvent or a receiver of the Agent or of its property shall
be appointed or any public officer shall take charge or control of the Agent or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation;
then, in any such case, (x) the Company by a Board Resolution may remove the
Agent, or (y) any Holder who has been a bona fide Holder of a Unit 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 Agent and the
appointment of a successor Agent.
(e) If the Agent shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the Corporate Trust Office of the Agent for any
cause, the Company, by a Board Resolution, shall promptly appoint a successor
Agent and shall comply with the applicable requirements of Section 7.10. If no
successor Agent shall have been so appointed by the Company and accepted
appointment in the manner required by Section 7.10, the Agent or any Holder who
has been a bona fide Holder of a Unit for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Agent.
(f) The Company shall give, or shall cause such successor Agent to give,
notice of each resignation and each removal of the Agent and each appointment of
a successor Agent by mailing written notice of such event by first-class mail,
postage prepaid, to all Holders as their names and addresses appear in the
57
applicable Register. Each notice shall include the name of the successor Agent
and the address of its Corporate Trust Office.
(g) If the Agent has or shall acquire any "conflicting interest" within the
meaning of Section 310(b) of the TIA, the Agent and the Company shall in all
respects comply with the provisions of Section 310(b) of the TIA.
SECTION 7.10 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.
(a) In case of the appointment hereunder of a successor Agent, every such
successor Agent so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such successor Agent, without any further act, deed or conveyance,
shall become vested with all the rights, powers, agencies and duties of the
retiring Agent; but, on the request of the Company or the successor Agent, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Agent all the rights, powers and
trusts of the retiring Agent and shall duly assign, transfer and deliver to such
successor Agent all property and money held by such retiring Agent hereunder.
(b) Upon request of any such successor Agent, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to
such successor Agent all such rights, powers and agencies referred to in
paragraph (a) of this Section.
(c) No successor Agent shall accept its appointment unless at the time of
such acceptance such successor Agent shall be qualified and eligible under this
Article.
SECTION 7.11 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any Person into which the Agent may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Agent shall be a party, or any Person succeeding to
all or substantially all the corporate trust business of the Agent, shall be the
successor of the Agent hereunder, provided such Person 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 Certificates shall have been authenticated and executed on behalf of the
Holders, but not delivered, by the Agent then in office, any successor by
merger, conversion or consolidation to such Agent shall adopt such
authentication and execution and deliver the Certificates so authenticated and
executed with the same effect as if such successor Agent had itself
authenticated and executed such Units.
SECTION 7.12 PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.
(a) The Agent shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders received by the Agent in its
capacity as Registrar.
(b) If three or more Holders (herein referred to as "Applicants") apply in
writing to the Agent, and furnish to the Agent reasonable proof that each such
applicant has owned a Unit 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 with respect to their rights under this
Agreement or under the Units and is accompanied by a copy of the form of proxy
58
or other communication which such applicants propose to transmit, then the Agent
shall mail to all the Holders copies of the form of proxy or other communication
which is specified in such request, with reasonable promptness after a tender to
the Agent of the materials to be mailed and of payment, or provision for the
payment, of the reasonable expenses of such mailing.
SECTION 7.13 NO OBLIGATIONS OF AGENT.
Except to the extent otherwise provided in this Agreement or the Pledge
Agreement, the Agent assumes no obligation and shall not be subject to any
liability under this Agreement, the Pledge Agreement or any Purchase Contract in
respect of the obligations of the Holder of any Unit thereunder. The Company
agrees, and each Holder of a Certificate, by such Holder's acceptance thereof,
shall be deemed to have agreed, that the Agent's execution of the Certificates
on behalf of the Holders shall be solely as agent and attorney-in-fact for the
Holders, and that the Agent shall have no obligation to perform such Purchase
Contracts on behalf of the Holders, except to the extent expressly provided in
Article V.
SECTION 7.14 TAX COMPLIANCE.
(a) The Agent, on its own behalf and on behalf of the Company, will comply
with all applicable certification, information reporting and withholding
(including "backup" withholding) requirements imposed by applicable tax laws,
regulations or administrative practice with respect to (i) any payments made
with respect to the Units or (ii) the issuance, delivery, holding, transfer,
redemption or exercise of rights under the Units. Such compliance shall include,
without limitation, the preparation and timely filing of required returns and
the timely payment of all amounts required to be withheld to the appropriate
taxing authority or its designated agent.
(b) The Agent shall comply with any written direction received from the
Company with respect to the application of such requirements to particular
payments or Holders or in other particular circumstances, and may for purposes
of this Agreement conclusively rely on any such direction in accordance with the
provisions of Section 7.1(a)(2).
(c) The Agent shall maintain all appropriate records documenting compliance
with such requirements, and shall make such records available, on written
request, to the Company or its authorized representative within a reasonable
period of time after receipt of such request.
ARTICLE VIII.
SUPPLEMENTAL AGREEMENTS
SECTION 8.1 SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF HOLDERS.
Without the consent of any Holders, the Company and the Agent, at any time
and from time to time, may enter into one or more agreements supplemental
hereto, in form satisfactory to the Company and the Agent, for any of the
following purposes:
(a) to evidence the succession of another Person to the Company, and the
assumption by any such successor of the covenants of the Company herein and in
the Certificates; or
59
(b) to add to the covenants of the Company for the benefit of the Holders,
or to surrender any right or power herein conferred upon the Company; or
(c) to evidence and provide for the acceptance of appointment hereunder by
a successor Agent; or
(d) to make provision with respect to the rights of Holders pursuant to the
requirements of Section 5.6(b) or 5.10; or
(e) to cure any ambiguity, to correct or supplement any provisions herein
which may be inconsistent with any other provisions herein, or to make any other
provisions with respect to such matters or questions arising under this
Agreement, provided such action shall not adversely affect the interests of the
Holders.
SECTION 8.2 SUPPLEMENTAL AGREEMENTS WITH CONSENT OF HOLDERS.
(a) With the consent of the Holders of not less than a majority of the
outstanding Purchase Contracts voting together as one class, by Act of said
Holders delivered to the Company and the Agent, the Company, when authorized by
a Board Resolution, and the Agent may enter into an agreement or agreements
supplemental hereto for the purpose of modifying in any manner the terms of the
Purchase Contracts, or the provisions of this Agreement or the rights of the
Holders in respect of the Units; provided, however, that, except as contemplated
herein, no such supplemental agreement shall, without the consent of the Holder
of each Outstanding Unit affected thereby:
(1) change any Payment Date;
(2) change the amount or the type of Collateral required to be Pledged
to secure a Holder's obligations under the Purchase Contract, impair the
right of the Holder of any Purchase Contract to receive distributions on the
related Collateral (except for the rights of Holders of Corporate Units to
substitute the Treasury Securities for the Pledged Notes, Pledged Treasury
Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio, or the rights of holders of Treasury Units to substitute Notes or
appropriate Treasury Consideration or Applicable Ownership Interest in the
Treasury Portfolio for the Pledged Treasury Securities) or otherwise materially
adversely affect the Holder's rights in or to such Collateral;
(3) reduce any Contract Adjustment Payments, if any, or any Deferred
Contract Adjustment Payment, or change any place where, or the coin or currency
in which, any Contract Adjustment Payment is payable or increase any amounts
payable by Holders in respect of the Units or decrease any other amounts
receivable by Holders in respect of the Units;
(4) impair the right to institute suit for the enforcement of any
Purchase Contract, any Contract Adjustment Payment, if any, or any Deferred
Contract Adjustment Payment, if any;
(5) reduce the number of shares of Common Stock to be purchased
pursuant to any Purchase Contract, increase the price to purchase shares of
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Common Stock upon settlement of any Purchase Contract, change the Stock Purchase
Date or otherwise materially adversely affect the Holder's rights under any
Purchase Contract; or
(6) reduce the percentage of the outstanding Purchase Contracts the
consent of whose Holders is required for any such supplemental agreement;
provided, that if any amendment or proposal referred to above would adversely
affect only the Corporate Units or the Treasury Units, then only the affected
class of Holders as of the record date for the Holders entitled to vote thereon
will be entitled to vote on or consent to such amendment or proposal, and such
amendment or proposal shall not be effective except with the consent of Holders
of not less than a majority of such class; provided further, however, that no
such agreement, whether with or without the consent of Holders, shall affect
Section 3.16.
(b) It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental agreement, but it shall
be sufficient if such Act shall approve the substance thereof.
SECTION 8.3 EXECUTION OF SUPPLEMENTAL AGREEMENTS.
In executing, or accepting the additional agencies created by, any
supplemental agreement permitted by this Article or the modifications thereby of
the agencies created by this Agreement, the Agent shall be entitled to receive
and (subject to Section 7.1) shall be fully protected in relying upon, an
Officer's Certificate and Opinion of Counsel stating that the execution of such
supplemental agreement is authorized or permitted by this Agreement. The Agent
may, but shall not be obligated to, enter into any such supplemental agreement
which affects the Agent's own rights, duties or immunities under this Agreement
or otherwise.
SECTION 8.4 EFFECT OF SUPPLEMENTAL AGREEMENTS.
Upon the execution of any supplemental agreement under this Article, this
Agreement shall be modified in accordance therewith, and such supplemental
agreement shall form a part of this Agreement for all purposes; and every Holder
of Certificates theretofore or thereafter authenticated, executed on behalf of
the Holders and delivered hereunder shall be bound thereby.
SECTION 8.5 REFERENCE TO SUPPLEMENTAL AGREEMENTS.
Certificates authenticated, executed on behalf of the Holders and delivered
after the execution of any supplemental agreement pursuant to this Article may,
and shall if required by the Agent, bear a notation in form approved by the
Agent as to any matter provided for in such supplemental agreement. If the
Company shall so determine, new Certificates so modified as to conform, in the
opinion of the Agent and the Company, to any such supplemental agreement may be
prepared and executed by the Company and authenticated, executed on behalf of
the Holders and delivered by the Agent in exchange for Outstanding Certificates.
61
ARTICLE IX.
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
SECTION 9.1 COVENANT NOT TO MERGE, CONSOLIDATE, SELL OR CONVEY PROPERTY EXCEPT
UNDER CERTAIN CONDITIONS.
The Company covenants that it will not (a) merge with or into or
consolidate with any other Person or (b) sell, assign, transfer, lease or convey
all or substantially all of its properties and assets to any Person or group of
affiliated Persons in one transaction or a series of related transactions,
unless (i) either the Company shall be the continuing entity, or the successor
(if other than the Company) shall be a Person, other than an individual,
organized and existing under the laws of the United States of America or a State
thereof or the District of Columbia and such corporation shall expressly assume
all the obligations of the Company under this Agreement, the Purchase Contracts,
the Remarketing Agreement and the Pledge Agreement by one or more supplemental
agreements in form reasonably satisfactory to the Agent and the Collateral
Agent, executed and delivered to the Agent and the Collateral Agent by such
Person, and (ii) the Company or such successor, as the case may be, shall not,
immediately after such merger or consolidation, or such sale, assignment,
transfer, lease or conveyance, be in default in the performance of any covenant
or condition hereunder, under any of the Purchase Contracts, under the
Remarketing Agreement, or under the Pledge Agreement.
SECTION 9.2 RIGHTS AND DUTIES OF SUCCESSOR ENTITY.
(a) In case of any such consolidation, merger, sale, assignment, transfer,
lease or conveyance and upon any such assumption by a successor entity in
accordance with Section 9.1, such successor corporation shall succeed to and be
substituted for the Company with the same effect as if it had been named herein
as the Company. Such successor Person thereupon may cause to be signed, and may
issue either in its own name or in the name of the Company, any or all of the
Certificates evidencing Units issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Agent; and, upon the order
of such successor corporation, instead of the Company, and subject to all the
terms, conditions and limitations in this Agreement prescribed, the Agent shall
authenticate and execute on behalf of the Holders and deliver any Certificates
which previously shall have been signed and delivered by the officers of the
Company to the Agent for authentication and execution, and any Certificate
evidencing Units which such successor entity thereafter shall cause to be signed
and delivered to the Agent for that purpose. All the Certificates so issued
shall in all respects have the same legal rank and benefit under this Agreement
as the Certificates theretofore or thereafter issued in accordance with the
terms of this Agreement as though all of such Certificates had been issued at
the date of the execution hereof.
(b) In case of any such consolidation, merger, sale, assignment, transfer,
lease or conveyance such change in phraseology and form (but not in substance)
may be made in the Certificates evidencing Units thereafter to be issued as may
be appropriate.
62
SECTION 9.3 OPINION OF COUNSEL GIVEN TO AGENT.
The Agent, subject to Sections 7.1 and 7.3, shall receive an Opinion of
Counsel as conclusive evidence that any such consolidation, merger, sale,
assignment, transfer, lease or conveyance, and any such assumption, complies
with the provisions of this Article and that all conditions precedent to the
consummation of any such consolidation, merger, sale, assignment, transfer,
lease or conveyance have been met.
ARTICLE X.
COVENANTS
SECTION 10.1 PERFORMANCE UNDER PURCHASE CONTRACTS.
The Company covenants and agrees for the benefit of the Holders from time
to time of the Units that it will duly and punctually perform its obligations
under the Purchase Contracts in accordance with the terms of the Purchase
Contracts and this Agreement.
SECTION 10.2 MAINTENANCE OF OFFICE OR AGENCY.
(a) The Company will maintain in the Borough of Manhattan, The City of New
York an office or agency where Certificates may be presented or surrendered for
acquisition of shares of Common Stock upon settlement of the Purchase Contracts
on any Settlement Date and for transfer of Collateral upon occurrence of a
Termination Event, where Certificates may be surrendered for registration of
transfer or exchange, for a Collateral Substitution or re-establishment of
Corporate Units and where notices and demands to or upon the Company in respect
of the Units and this Agreement may be served. The Company will give prompt
written notice to the Agent 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 Agent with the
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office, and the Company hereby appoints the
Agent as its agent to receive all such presentations, surrenders, notices and
demands.
(b) The Company may also from time to time designate one or more other
offices or agencies where Certificates may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, The City of New York for such purposes. The Company will
give prompt written notice to the Agent of any such designation or rescission
and of any change in the location of any such other office or agency. The
Company hereby designates as the place of payment for the Units the Corporate
Trust Office and appoints the Agent at its Corporate Trust Office as paying
agent in such city.
SECTION 10.3 COMPANY TO RESERVE COMMON STOCK.
The Company shall at all times prior to the Stock Purchase Date reserve and
keep available, free from preemptive rights, out of its authorized but unissued
63
Common Stock the full number of shares of Common Stock issuable against tender
of payment in respect of all Purchase Contracts constituting a part of the Units
evidenced by Outstanding Certificates.
SECTION 10.4 COVENANTS AS TO COMMON STOCK.
The Company covenants that all shares of Common Stock which may be issued
against tender of payment in respect of any Purchase Contract constituting a
part of the Outstanding Units will, upon issuance, be duly authorized, validly
issued, fully paid and nonassessable.
ARTICLE XI.
TRUST INDENTURE ACT
SECTION 11.1 TRUST INDENTURE ACT; APPLICATION.
(a) This Agreement is subject to the provisions of the TIA that are
required or deemed to be part of this Agreement and shall, to the extent
applicable, be governed by such provisions; and
(b) if and to the extent that any provision of this Agreement limits,
qualifies or conflicts with the duties imposed by Section 310 to 317, inclusive,
of the TIA, such imposed duties shall control.
SECTION 11.2 LISTS OF HOLDERS OF SECURITIES.
(a) The Company shall furnish or cause to be furnished to the Agent (a)
semiannually, not later than _________ and _________ in each year, commencing
_________, 200__, a list, in such form as the Agent may reasonably require, of
the names and addresses of the Holders ("List of Holders") as of a date not more
than 15 days prior to the delivery thereof, and (b) at such other times as the
Agent may request in writing, within 30 days after the receipt by the Company of
any such request, a List of Holders as of a date not more than 15 days prior to
the time such list is furnished; provided that, the Company shall not be
obligated to provide such List of Holders at any time the List of Holders does
not differ from the most recent List of Holders given to the Agent by the
Company. The Agent may destroy any List of Holders previously given to it on
receipt of a new List of Holders.
(b) The Agent shall comply with its obligations under Section 311(a) of the
TIA, subject to the provisions of Section 311(b) and Section 312(b) of the TIA.
SECTION 11.3 REPORTS BY THE AGENT.
Not later than _________ of each year, commencing _________, 200__, the
Agent shall provide to the Holders such reports, if any, as are required by
Section 313(a) of the TIA in the form and in the manner provided by Section
313(a) of the TIA. Such reports shall be as of the preceding December 31. The
Agent shall also comply with the requirements of Sections 313(b), (c) and (d) of
the TIA.
64
SECTION 11.4 PERIODIC REPORTS TO AGENT.
The Company shall provide to the Agent such documents, reports and
information as required by Section 314(a) (if any) and the compliance
certificate required by Section 314(a) of the TIA in the form, in the manner and
at the times required by Section 314(a) of the TIA.
SECTION 11.5 EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.
The Company shall provide to the Agent such evidence of compliance with any
conditions precedent provided for in this Agreement as and to the extent
required by Section 314(c) of the TIA. Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) of the TIA may be given in the
form of a Company Certificate. Any opinion required to be given pursuant to
Section 314(c)(2) of the TIA may be given in the form of an Opinion of Counsel.
SECTION 11.6 DEFAULTS; WAIVER.
The Holders of a majority of the outstanding Purchase Contracts voting
together as one class may, by vote or consent, on behalf of all of the Holders,
waive any past Default and its consequences, except a Default
(a) any payment on any Unit, or
(b) in respect of a provision hereof which under Section 8.2 cannot be
modified or amended without the consent of the Holder of each Outstanding Unit
affected.
Upon such waiver, any such Default shall cease to exist, and any Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Agreement, but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.
SECTION 11.7 AGENT'S KNOWLEDGE OF DEFAULTS.
The Agent shall not be deemed to have knowledge of any Default unless a
Responsible Officer shall have obtained written notice of such Default.
SECTION 11.8 CONFLICTING INTERESTS.
The Indenture shall be deemed to be specifically described in this
Agreement for the purposes of clause (i) of the first proviso contained in
Section 310(b) of the TIA.
SECTION 11.9 DIRECTION OF AGENT.
Sections 315(d)(3) and 316(a)(1)(A) of the TIA are hereby expressly
excluded from this Agreement, as permitted by the TIA.
65
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.
NATIONAL FUEL GAS COMPANY
By:
-------------------------------------------------
Name:
Title:
THE BANK OF NEW YORK,
as Purchase Contract Agent and Trustee
By:
-------------------------------------------------
Name:
Title:
66
EXHIBIT A
FORM OF CORPORATE UNITS CERTIFICATE
(Form of Global Certificate Legend)
[THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED) AND IS REGISTERED IN THE
NAME OF THE CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF
THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company (55 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx) to the Company or
its agent for registration of transfer, exchange or payment, and any Certificate
issued is registered in the name of Cede & Co., or such other name as requested
by an authorized representative of The Depository Trust Company, and any payment
hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede &
Co., has an interest herein.]
NATIONAL FUEL GAS COMPANY
(Form of Face of Corporate Units Certificate)
____% Corporate Units
([$25] Stated Amount)
No._____
CUSIP No. _________
Number of Corporate Units_____
This Corporate Units Certificate certifies that ________ is the registered
Holder of the number of Corporate Units set forth above. Each Corporate Unit
represents (i) either (a) beneficial ownership by the Holder of one Note due
_________, 200__ (the "Note") of National Fuel Gas Company, a New Jersey
corporation (the "Company"), having a principal amount of [$25], subject to the
Pledge of such Note by such Holder pursuant to the Pledge Agreement, (b) if the
Note has been remarketed by the Remarketing Agent (or if the Holder has elected
not to have the Note remarketed by delivering the appropriate Treasury
Consideration specified by the Remarketing Agent), the appropriate Treasury
Consideration, subject to the Pledge of such Treasury Consideration by such
Holder pursuant to the Pledge Agreement, or (c) if a Tax Event Redemption has
occurred, the appropriate Applicable Ownership Interest in the Treasury
Portfolio subject to the Pledge of such Applicable Ownership Interest in the
Treasury Portfolio pursuant to the Pledge Agreement, and (ii) the rights and
obligations of the Holder under one Purchase Contract with the Company. All
capitalized terms used herein which are defined in the Purchase Contract
Agreement have the meaning set forth therein.
A-1
Pursuant to the Pledge Agreement, the Note or the appropriate Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, forming a part of each Corporate Unit evidenced hereby has been
pledged to the Collateral Agent, for the benefit of the Company, to secure the
obligations of the Holder under the Purchase Contract comprising a part of such
Corporate Unit to purchase the Common Stock of the Company. Prior to the
purchase of shares of Common Stock under each Purchase Contract, such Purchase
Contracts shall not entitle the Holders of Corporate Units Certificates to any
of the rights of a holder of shares of Common Stock, including, without
limitation, the right to vote or receive any dividends or other payments or to
consent or to receive notice as stockholders in respect of the meetings of
stockholders or for the election of directors of the Company or for any other
matter, or any other rights whatsoever as stockholders of the Company.
The Pledge Agreement provides that all payments in respect of the Pledged
Notes, Pledged Treasury Consideration or Pledged Applicable Ownership Interest
in the Treasury Portfolio received by the Collateral Agent shall be paid by the
Collateral Agent by wire transfer in same day funds (i) in the case of (A)
quarterly cash distributions on Corporate Units which include Pledged Notes,
Pledged Treasury Consideration or any Pledged Applicable Ownership Interest in
the Treasury Portfolio and (B) any payments in respect of the Notes, Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, that have been released from the Pledge pursuant to the Pledge
Agreement, to the Agent to the account designated by the Agent, no later than
10:00 a.m., New York City time, on the Business Day such payment is received by
the Collateral Agent (provided that in the event such payment is received by the
Collateral Agent on a day that is not a Business Day or after 9:00 a.m., New
York City time, on a Business Day, then such payment shall be made no later than
9:30 a.m., New York City time, on the next succeeding Business Day) and (ii) in
the case of payments in respect of any Pledged Notes, Pledged Treasury
Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, to be paid upon settlement of such Holder's
obligations to purchase Common Stock under the Purchase Contract, to the Company
on the Stock Purchase Date (as defined herein) in accordance with the terms of
the Pledge Agreement, in full satisfaction of the respective obligations of the
Holders of the Corporate Units of which such Pledged Notes, Pledged Treasury
Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, are a part under the Purchase Contracts forming a
part of such Corporate Units. Quarterly distributions on Corporate Units which
include Pledged Notes, Pledged Treasury Consideration or Pledged Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, which are
payable quarterly in arrears on _________, _________, _________, and _________
each year, commencing _________, 200__ (a "Payment Date"), shall, subject to
receipt thereof by the Agent from the Collateral Agent, be paid to the Person in
whose name this Corporate Units Certificate (or a Predecessor Corporate Units
Certificate) is registered at the close of business on the Record Date for such
Payment Date.
Each Purchase Contract evidenced hereby, unless an Early Settlement has
occurred or a Merger Early Settlement has occurred, obligates the Holder of this
Corporate Units Certificate to purchase, and the Company to sell, on _________,
200__ (the "Stock Purchase Date"), at a price equal to [$25] (the "Stated
Amount"), a number of newly issued shares of Common Stock, $1.00 par value per
share ("Common Stock"), of the Company, equal to the Settlement Rate, unless, on
A-2
or prior to the Stock Purchase Date, there shall have occurred a Termination
Event with respect to the Corporate Units of which such Purchase Contract is a
part, all as provided in the Purchase Contract Agreement and more fully
described on the reverse hereof. The Purchase Price (as defined herein) for the
shares of Common Stock purchased pursuant to each Purchase Contract evidenced
hereby, if not paid earlier, shall be paid on the Stock Purchase Date by
application of payments received in respect of the Pledged Notes, Pledged
Treasury Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, pledged to secure the obligations of the Holder
under such Purchase Contract in accordance with the terms of the Pledge
Agreement.
Payments on the Notes or the appropriate Treasury Consideration or
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
will be payable at the office of the Agent in The City of New York, New York or,
at the option of the Company, by check mailed to the address of the Person
entitled thereto as such address appears on the Corporate Units Register or by
wire transfer to an account specified by the Company.
The Company shall pay on each Payment Date in respect of each Purchase
Contract forming part of a Corporate Unit evidenced hereby an amount (the
"Contract Adjustment Payments") equal to ______% per year of the Stated Amount,
computed on the basis of a 360-day year of twelve 30-day months, subject to
deferral at the option of the Company as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof (provided that if any
date on which Contract Adjustment Payments are to be made on the Purchase
Contracts is not a Business Day, then payment of such Contract Adjustment
Payments payable on that date will be made on the next succeeding day which is a
Business Day, and no interest or payment will be paid in respect of such delay,
except that if such next succeeding Business Day is in the next succeeding
calendar year, then such payment will be made on the immediately preceding
Business Day). Such Contract Adjustment Payments shall be payable to the Person
in whose name this Corporate Units Certificate (or a Predecessor Corporate Units
Certificate) is registered at the close of business on the Record Date for such
Payment Date.
Contract Adjustment Payments will be payable at the office of the Agent in
The City of New York, New York or, at the option of the Company, by check mailed
to the address of the Person entitled thereto as such address appears on the
Corporate Units Register.
Reference is hereby made to the further provisions 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
Agent by manual signature, this Corporate Units Certificate shall not be
entitled to any benefit under the Pledge Agreement or the Purchase Contract
Agreement or be valid or obligatory for any purpose.
A-3
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.
NATIONAL FUEL GAS COMPANY
By:
-------------------------------------------------
Name:
Title:
HOLDER SPECIFIED ABOVE (as to obligations
of such Holder under the Purchase
Contracts evidenced hereby)
By: THE BANK OF NEW YORK, not individually
but solely as Attorney-in-Fact of such Holder
By:
-------------------------------------------------
Name:
Title:
A-4
AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Corporate Units Certificates referred to in the
within-mentioned Purchase Contract Agreement.
Dated: THE BANK OF NEW YORK,
as Purchase Contract Agent and Trustee
By:______________________________
Authorized Signatory
A-5
(FORM OF REVERSE OF CORPORATE UNITS CERTIFICATE)
Each Purchase Contract evidenced hereby is governed by a Purchase Contract
Agreement, dated as of _________, 200__ (as may be supplemented from time to
time, the "Purchase Contract Agreement"), between the Company and The Bank of
New York, as Purchase Contract Agent (including its successors thereunder,
herein called the "Agent"), to which the Purchase Contract Agreement and
supplemental agreements thereto reference is hereby made for a description of
the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Agent, the Company, and the Holders and of the terms upon
which the Corporate Units Certificates are, and are to be, executed and
delivered.
Each Purchase Contract evidenced hereby obligates the Holder of this
Corporate Units Certificate to purchase, and the Company to sell, on the Stock
Purchase Date at a price equal to [$25] (the "Purchase Price"), a number of
shares of Common Stock of the Company equal to the Settlement Rate, unless, on
or prior to the Stock Purchase Date, there shall have occurred a Termination
Event or a Cash Settlement, Early Settlement or Merger Early Settlement with
respect to the Unit of which such Purchase Contract is a part. The "Settlement
Rate" is equal to (a) if the Applicable Market Value (as defined below) is equal
to or greater than ______ (the "Threshold Appreciation Price"), ______ shares of
Common Stock per Purchase Contract, (b) if the Applicable Market Value is less
than the Threshold Appreciation Price, but is greater than ______, the number of
shares of Common Stock per Purchase Contract equal to the Stated Amount divided
by the Applicable Market Value and (c) if the Applicable Market Value is less
than or equal to ______, ______ shares of Common Stock per Purchase Contract, in
each case subject to adjustment as provided in the Purchase Contract Agreement.
No fractional shares of Common Stock will be issued upon settlement of Purchase
Contracts, as provided in the Purchase Contract Agreement.
The "Applicable Market Value" means the average of the Closing Price per
share of Common Stock on each of the 20 consecutive Trading Days ending on the
third Trading Day immediately preceding the Stock Purchase Date or, in the event
of a Cash Merger, the Cash Merger Date.
The "Closing Price" of the Common Stock on any date of determination means
the closing sale price per share (or, if no closing sale price is reported, the
last reported sale price) of the Common Stock on the New York Stock Exchange
(the "NYSE") on such date or, if the Common Stock is not listed for trading on
the NYSE on any such date, as reported in the composite transactions for the
principal United States securities exchange on which the Common Stock is so
listed, or if the Common Stock is not so listed on a United States national or
regional securities exchange, as reported by The Nasdaq Stock Market, or if the
Common Stock is not so reported, the last quoted bid price for the Common Stock
in the over-the-counter market as reported by the National Quotation Bureau or
similar organization, or if such bid price is not available, the market value of
the Common Stock on such date as determined by a nationally recognized
independent investment banking firm retained by the Company for this purpose.
A "Trading Day" means a day on which the Common Stock (A) is not suspended
from trading on any national or regional securities exchange or association or
A-6
over-the-counter market at the close of business and (B) has traded at least
once on the national or regional securities exchange or association or
over-the-counter market that is the primary market for the trading of the Common
Stock at the close of business on such day.
Each Purchase Contract evidenced hereby may be settled prior to the
Stock Purchase Date through Cash Settlement, Early Settlement or Merger Early
Settlement, in accordance with the terms of the Purchase Contract Agreement.
In accordance with the terms of the Purchase Contract Agreement, the Holder
of this Corporate Units Certificate shall pay the Purchase Price for the shares
of Common Stock purchased pursuant to each Purchase Contract evidenced hereby
(i) by effecting a Cash Settlement, Early Settlement or Merger Early Settlement,
(ii) by application of payments received in respect of the Pledged Treasury
Consideration acquired from the proceeds of a remarketing of the related Pledged
Notes underlying the Corporate Units represented by this Corporate Units
Certificate as contemplated by Section 5.4 of the Purchase Contract Agreement,
(iii) if the Holder has elected not to participate in such remarketing, by
application of payments received in respect of the Pledged Treasury
Consideration deposited by such Holder in respect of such Purchase Contract or
(iv) if a Tax Event Redemption has occurred prior to the successful remarketing
of the Notes as contemplated by Section 5.4 of the Purchase Contract Agreement,
by application of payments received in respect of the Pledged Applicable
Ownership Interest in the Treasury Portfolio purchased by the Collateral Agent
on behalf of the Holder of this Corporate Units Certificate. If, as provided in
the Purchase Contract Agreement, upon the occurrence of a Last Failed
Remarketing, the Collateral Agent, for the benefit of the Company, exercises its
rights as a secured creditor with respect to the Pledged Notes related to this
Corporate Units Certificate, any accrued and unpaid interest on such Pledged
Notes will become payable by the Company to the Holder of this Corporate Units
Certificate in the manner provided for in the Purchase Contract Agreement.
The Company shall not be obligated to issue any shares of Common Stock in
respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless the Company shall have received payment in full of the aggregate
Purchase Price for the shares of Common Stock to be purchased thereunder in the
manner herein set forth.
Under and subject to the terms of the Pledge Agreement and the Purchase
Contract Agreement, the Agent will be entitled to exercise the voting and any
other consensual rights pertaining to the Pledged Notes, but only to the extent
instructed by the Holders as described below. Upon receipt of notice of any
meeting at which holders of Notes are entitled to vote or upon the solicitation
of consents, waivers or proxies of holders of Notes, the Agent shall, as soon as
practicable thereafter, mail to the Holders of Corporate Units a notice (a)
containing such information as is contained in the notice or solicitation, (b)
stating that each such Holder on the record date set by the Agent therefor
(which, to the extent possible, shall be the same date as the record date for
determining the holders of Notes entitled to vote) shall be entitled to instruct
the Agent as to the exercise of the voting rights pertaining to the Pledged
A-7
Notes constituting a part of such Holder's Corporate Units and (c) stating the
manner in which such instructions may be given. Upon the written request of the
Holders of Corporate Units on such record date, the Agent shall endeavor insofar
as practicable to vote or cause to be voted, in accordance with the instructions
set forth in such requests, the maximum number of Pledged Notes as to which any
particular voting instructions are received. In the absence of specific
instructions from the Holder of a Corporate Unit, the Agent shall abstain from
voting the Pledged Note evidenced by such Corporate Unit.
The Corporate Units Certificates are issuable only in registered form and
only in denominations of a single Corporate Unit and any integral multiple
thereof. The transfer of any Corporate Units Certificate will be registered and
Corporate Units Certificates may be exchanged as provided in the Purchase
Contract Agreement. The Corporate Units Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents
permitted by the Purchase Contract Agreement. No service charge shall be made
for any such registration of transfer or exchange of a Corporate Units
Certificate, but the Company and the Agent may require payment from the Holder
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Certificates, other than any exchanges not involving any transfer as provided
for in the Purchase Contract Agreement. The Holder of a Corporate Unit may
substitute for the Pledged Notes, Pledged Treasury Consideration or Pledged
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
securing its obligations under the related Purchase Contract Treasury Securities
in accordance with the terms of the Purchase Contract Agreement and the Pledge
Agreement. From and after such Collateral Substitution, the Unit for which such
Pledged Treasury Securities secures the Holder's obligation under the Purchase
Contract shall be referred to as a "Treasury Unit." A Holder that elects to
substitute a Treasury Security for Pledged Notes, Pledged Treasury Consideration
or Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case
may be, thereby creating Treasury Units, shall be responsible for any fees or
expenses payable in connection therewith. Except as provided in the Purchase
Contract Agreement, for so long as the Purchase Contract underlying a Corporate
Unit remains in effect, such Corporate Unit shall not be separable into its
constituent parts, and the rights and obligations of the Holder of such
Corporate Units in respect of the Pledged Note, Pledged Treasury Consideration
or Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case
may be, and the Purchase Contract comprising such Corporate Unit may be
acquired, and may be transferred and exchanged, only as a Corporate Unit.
A Holder of Treasury Units may reestablish Corporate Units at any time from
and after the date of the Purchase Contract Agreement and on or prior to the
second Business Day immediately preceding the Stock Purchase Date by depositing
with the Collateral Agent Notes or the appropriate Treasury Consideration or
Applicable Ownership Interest in the Treasury Portfolio, as the case may be, in
exchange for the release of the Pledged Treasury Securities in accordance with
the terms of the Purchase Contract Agreement and the Pledge Agreement.
Subject to the next succeeding paragraph, the Company shall pay, on each
Payment Date, the Contract Adjustment Payments, if any, payable in respect of
each Purchase Contract to the Person in whose name the Corporate Units
Certificate (or one or more Predecessor Corporate Units Certificates) evidencing
such Purchase Contract is registered on the Corporate Units Register at the
close of business on the Record Date next preceding such Payment Date. The
Contract Adjustment Payments, if any, will be payable at the Corporate Trust
Office or, at the option of the Company, by check mailed to the address of the
Person entitled thereto at such Person's address as it appears on the Corporate
Units Register or by wire transfer to an account appropriately designated by a
prior written notice to such Person.
A-8
The Company shall have the right, at any time prior to the Stock Purchase
Date, to defer the payment of any or all of the Contract Adjustment Payments
otherwise payable on any Payment Date, but only if the Company shall give the
Holders and the Agent written notice of its election to defer each such Contract
Adjustment Payments as provided in the Purchase Contract Agreement. Any Contract
Adjustment Payments so deferred shall, to the extent permitted by law, accrue
additional Contract Adjustment Payments thereon at the rate of ____% per year
(computed on the basis of a 360-day year of twelve 30-day months), compounding
on each succeeding Payment Date, until paid in full (such deferred installments
of Contract Adjustment Payments, if any, together with the additional Contract
Adjustment Payments, if any, accrued thereon, are referred to herein as the
"Deferred Contract Adjustment Payments"). Deferred Contract Adjustment Payments,
if any, shall be due on the next succeeding Payment Date except to the extent
that payment is deferred pursuant to the Purchase Contract Agreement. No
Contract Adjustment Payments may be deferred to a date that is after the Stock
Purchase Date and no such deferral period may end other than on a Payment Date.
In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until a Payment Date prior to the
Stock Purchase Date, then all Deferred Contract Adjustment Payments, if any,
shall be payable to the registered Holders as of the close of business on the
Record Date immediately preceding such Payment Date.
The Company's obligations with respect to Contract Adjustment Payments
(including any accrued or Deferred Contract Adjustment Payments) will be
subordinate and junior in right of payment to the Company's obligations under
any Senior Indebtedness.
In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until the Stock Purchase Date, the
Holder of this Corporate Units Certificate will receive on the Stock Purchase
Date in lieu of a cash payment a number of shares of Common Stock (in addition
to the number of shares of Common Stock equal to the Settlement Rate) equal to
(i) the aggregate amount of Deferred Contract Adjustment Payments payable to the
Holder of this Corporate Units Certificate divided by (ii) the Applicable Market
Value.
In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, then until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and will not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of the Company's Capital Stock other than (i) purchases,
redemptions or acquisitions of shares of the Company's Capital Stock in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of employees, officers, directors or agents
or a stock purchase or dividend reinvestment plan, or the satisfaction by the
Company of its obligations pursuant to any contract or security outstanding on
the date the Company exercises its rights to defer the Contract Adjustment
Payments; (ii) as a result of a reclassification of the Company's Capital Stock
A-9
or the exchange or conversion of one class or series of the Company's Capital
Stock for another class or series of the Company's Capital Stock; (iii) the
purchase of fractional interests in shares of the Company's Capital Stock
pursuant to the conversion or exchange provisions of such Capital Stock or the
security being converted or exchanged; (iv) dividends or distributions in any
series of the Company's Capital Stock (or rights to acquire Capital Stock) or
repurchases, acquisitions or redemptions of the Company's Capital Stock in
connection with the issuance or exchange of any series of the Company's Capital
Stock (or securities convertible into or exchangeable for shares of the
Company's Capital Stock); or (v) redemptions, exchanges or repurchases of any
rights outstanding under a shareholder rights plan or the declaration or payment
thereunder of a dividend or distribution of or with respect to rights in the
future.
The Purchase Contracts and all obligations and rights of the Company and
the Holders thereunder, including, without limitation, the rights of Holders to
receive accumulated Contract Adjustment Payments, if any, or any Deferred
Contract Adjustment Payments and obligations of the Holders to purchase Common
Stock, will immediately and automatically terminate, without the necessity of
any notice or action by any Holder, the Agent or the Company, if, on or prior to
the Stock Purchase Date, a Termination Event shall have occurred. Upon and after
the occurrence of a Termination Event, the Collateral Agent shall release the
Pledged Notes, Pledged Treasury Consideration or Pledged Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, from the Pledge in
accordance with the provisions of the Pledge Agreement. Upon the occurrence of a
Termination Event, the Company shall promptly but in no event later than two
Business Days thereafter give written notice to the Agent, the Collateral Agent
and to the Holders, at their addresses as they appear in the Corporate Units
Register.
Upon registration of transfer of this Corporate Units Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee, except as may be required by the Agent pursuant to the
Purchase Contract Agreement), under the terms of the Purchase Contract
Agreement, the Purchase Contracts evidenced hereby and the Pledge Agreement and
the transferor shall be released from the obligations under the Purchase
Contract Agreement, the Purchase Contracts evidenced by this Corporate Units
Certificate and the Pledge Agreement. The Company covenants and agrees, and the
Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.
The Holder of this Corporate Units Certificate, by its acceptance hereof,
irrevocably authorizes the Agent to enter into and perform the related Purchase
Contracts forming part of the Corporate Units evidenced hereby on its behalf as
its attorney-in-fact (including the execution of Certificates on behalf of such
Holder), agrees to be bound by the terms and provisions thereof, covenants and
agrees to perform its obligations under such Purchase Contracts, consents to the
provisions of the Purchase Contract Agreement, irrevocably authorizes the Agent
to enter into and perform the Pledge Agreement on such Holder's behalf as
attorney-in-fact, and consents to and agrees to be bound by the Pledge of the
Notes, the appropriate Treasury Consideration or Applicable Ownership Interest
in the Treasury Portfolio, as the case may be, underlying this Corporate Units
Certificate pursuant to the Pledge Agreement. The Holder further covenants and
agrees, that, to the extent and in the manner provided in the Purchase Contract
Agreement and the Pledge Agreement, but subject to the terms thereof, payments
in respect of the Pledged Notes, Pledged Treasury Consideration or Pledged
Applicable Ownership Interest in the Treasury Portfolio, as the case may be, to
be paid upon settlement of such Holder's obligations to purchase Common Stock
under the Purchase Contract, shall be paid on the Stock Purchase Date by the
A-10
Collateral Agent to the Company in satisfaction of such Holder's obligations
under such Purchase Contract and such Holder shall acquire no right, title or
interest in such payments. Each Holder of a Corporate Unit, by acceptance
thereof, will be deemed expressly to have withheld any consent to the assumption
(i.e., affirmance) under Section 365 of the Bankruptcy Code or otherwise, of the
Purchase Contract by the Company, its trustee in bankruptcy, any receiver,
liquidator or person or entity performing similar functions in the event that
the Company becomes a debtor under the Bankruptcy Code or subject to other
similar state or federal law providing for reorganization or liquidation.
Each Holder of any Unit, and each Beneficial Owner thereof, by its
acceptance thereof or of its interest therein, further covenants and agrees to
treat (i) itself as the owner of the related Notes, Treasury Consideration,
Applicable Ownership Interest in the Treasury Portfolio or Treasury Securities,
as the case may be, and (ii) the Notes as indebtedness of the Company, in each
case, for United States federal, state and local income and franchise tax
purposes.
Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts.
The Purchase Contracts shall for all purposes be governed by and deemed to
be a contract under, and construed in accordance with, the laws of the State of
New York, without regard to conflicts of laws principles thereof.
The Company, the Agent and its Affiliates and any agent of the Company or
the Agent, may treat the Person in whose name this Corporate Units Certificate
is registered on the Corporate Units Register as the owner of the Corporate
Units evidenced hereby for the purpose of receiving quarterly payments on the
Notes, the Treasury Consideration or the Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, receiving payments of Contract
Adjustment Payments, if any, and any Deferred Contract Adjustment Payments,
performance of the Purchase Contracts and for all other purposes whatsoever,
whether or not any payments in respect thereof shall be overdue and
notwithstanding any notice to the contrary, and neither the Company, the Agent,
such Affiliates nor any agent of the Company, the Agent or such Affiliates shall
be affected by notice to the contrary.
Prior to the purchase of shares of Common Stock under each Purchase
Contract, such Purchase Contracts shall not entitle the Holder to any of the
rights of a holder of shares of Common Stock.
A copy of the Purchase Contract Agreement is available for inspection at
the offices of the Agent.
A-11
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM-- as tenants in common
UNIF GIFT MIN ACT-- Custodian (Minor)
-------------------- --------------------
under Uniform Gifts to Minors Act (State)
-----------------
TEN ENT-- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship and not as
tenants in common
Additional abbreviations may also be used though not in the above list.
-------------------------
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
----------------------------------------------------------------
--------------------------------------------------------------------------------
(Please insert Social Security or Taxpayer I.D. or
other Identifying Number of Assignee)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(Please Print or Type Name and Address Including Postal Zip Code of Assignee)
the within Corporate Units Certificates and all rights thereunder, hereby
irrevocably constituting and appointing
-----------------------------------------
--------------------------------------------------------------------------------
attorney to transfer said Corporate Units Certificates on the books of National
Fuel Gas Company with full power of substitution in the premises.
Dated: _________________ _________________________________________
Signature
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon the face of the within
Corporate Units Certificates in every
particular, without alteration or
enlargement or any change whatsoever.
Signature Guarantee:
-----------------------
Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
A-12
SETTLEMENT INSTRUCTIONS
The undersigned Holder directs that a certificate for shares of Common
Stock deliverable upon settlement on or after the Stock Purchase Date of the
Purchase Contracts underlying the number of Corporate Units evidenced by this
Corporate Units Certificate (after taking into account all Units then held by
such Holder) be registered in the name of, and delivered, together with a check
in payment for any fractional share, to the undersigned at the address indicated
below unless a different name and address have been indicated below. If shares
are to be registered in the name of a Person other than the undersigned, the
undersigned will pay any transfer tax payable incident thereto.
Dated:
------------------ -----------------------------------------
Signature
Signature Guarantee:
--------------------------------
Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
If shares are to be registered in the
name of and delivered to a Person REGISTERED HOLDER
other than the Holder, please (i)
print such Person's name and address
and (ii) provide a guarantee
of your signature:
PLEASE PRINT NAME AND ADDRESS OF REGISTERED HOLDER:
------------------------------ ----------------------------------------
Name Name
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
Address Address
--------------------------------------------------------------------------------
Social Security or other Taxpayer Identification Number, if any
A-13
ELECTION TO SETTLE EARLY
The undersigned Holder of this Corporate Units Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Corporate Units evidenced by this Corporate
Units Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Corporate Units
with an aggregate Stated Amount equal to $1,000 or an integral multiple thereof.
The undersigned Holder directs that a certificate for shares of Common Stock
deliverable upon such Early Settlement (after taking into account all Units then
held by such Holder) be registered in the name of, and delivered, together with
a check in payment for any fractional share and any Corporate Units Certificate
representing any Corporate Units evidenced hereby as to which Early Settlement
of the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below. Pledged Notes, Pledged Treasury Consideration or the Pledged Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, deliverable
upon such Early Settlement will be transferred in accordance with the transfer
instructions set forth below. If shares are to be registered in the name of a
Person other than the undersigned, the undersigned will pay any transfer tax
payable incident thereto.
Dated:
------------------ -----------------------------------------
Signature
Signature Guarantee:
--------------------------------
Number of Units evidenced hereby as to which Early Settlement of the related
Purchase Contracts is being elected:
If shares of Common Stock or Corporate
Units Certificates are to be registered
in the name of and delivered to and REGISTERED HOLDER
Pledged Notes, Pledged Treasury
Consideration or Pledged Applicable
Ownership Interest in the Treasury
Portfolio, as the case may be, are to
be transferred to a Person other than
the Holder, please print such Person's
name and address:
PLEASE PRINT NAME AND ADDRESS OF REGISTERED HOLDER:
------------------------------ ----------------------------------------
Name Name
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
Address Address
--------------------------------------------------------------------------------
Social Security or other Taxpayer Identification Number, if any
Transfer instructions for Pledged Notes, Pledged Treasury Consideration or the
Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case may
be, transferable upon Early Settlement or a Termination Event:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
A-14
[TO BE ATTACHED TO GLOBAL CERTIFICATES]
SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE
The following increases or decreases in this Global Certificate have been
made:
-------------- ----------------- ---------------- ---------------- -------------
STATED AMOUNT
AMOUNT OF AMOUNT OF OF THE GLOBAL
DECREASE IN INCREASE IN CERTIFICATE SIGNATURE OF
STATED AMOUNT STATED AMOUNT FOLLOWING AUTHORIZED
OF THE GLOBAL OF THE GLOBAL SUCH DECREASE OFFICER OF
DATE CERTIFICATE CERTIFICATE OR INCREASE AGENT
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
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A-15
EXHIBIT B
FORM OF TREASURY UNITS CERTIFICATE
(Form of Global Certificate Legend)
[THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED) AND IS REGISTERED IN THE
NAME OF THE CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF
THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company (55 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx) to the Company or
its agent for registration of transfer, exchange or payment, and any Certificate
issued is registered in the name of Cede & Co., or such other name as requested
by an authorized representative of The Depository Trust Company, and any payment
hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede &
Co., has an interest herein.]
NATIONAL FUEL GAS COMPANY
(Form of Face of Treasury Units Certificate)
([$25] Stated Amount)
No.____
CUSIP No. _________
Number of Treasury Units_____
This Treasury Units Certificate certifies that ________ is the registered
Holder of the number of Treasury Units set forth above. Each Treasury Unit
represents (i) a [1/40] undivided beneficial ownership interest in a Treasury
Security, subject to the Pledge of such interest in such Treasury Security by
the Holder pursuant to the Pledge Agreement, and (ii) the rights and obligations
of the Holder under one Purchase Contract with National Fuel Gas Company, a New
Jersey corporation (the "Company"). All capitalized terms used herein which are
defined in the Purchase Contract Agreement have the meaning set forth therein.
Pursuant to the Pledge Agreement, the Treasury Security constituting part
of each Treasury Unit evidenced hereby has been pledged to the Collateral Agent,
for the benefit of the Company, to secure the obligations of the Holder under
the Purchase Contract comprising a part of such Treasury Unit to purchase the
Common Stock of the Company. Prior to the purchase of shares of Common Stock
under each Purchase Contract, such Purchase Contracts shall not entitle the
Holders of Corporate Units Certificates to any of the rights of a holder of
shares of Common Stock, including, without limitation, the right to vote or
B-1
receive any dividends or other payments or to consent or to receive notice as
stockholders in respect of the meetings of stockholders or for the election of
directors of the Company or for any other matter, or any other rights whatsoever
as stockholders of the Company.
Each Purchase Contract evidenced hereby, unless an Early Settlement has
occurred or a Merger Early Settlement has occurred, obligates the Holder of this
Treasury Units Certificate to purchase, and the Company to sell, on _________,
200__ (the "Stock Purchase Date"), at a price equal to [$25] (the "Stated
Amount"), a number of newly issued shares of Common Stock, $1.00 par value per
share ("Common Stock"), of the Company, equal to the Settlement Rate, unless on
or prior to the Stock Purchase Date, there shall have occurred a Termination
Event with respect to the Treasury Units of which such Purchase Contract is a
part, all as provided in the Purchase Contract Agreement and more fully
described on the reverse hereof. The Purchase Price (as defined herein) for the
shares of Common Stock purchased pursuant to each Purchase Contract evidenced
hereby, if not paid earlier, shall be paid on the Stock Purchase Date by
application of payments received in respect of the Pledged Treasury Securities
pledged to secure the obligations of the Holder under such Purchase Contract in
accordance with the terms of the Pledge Agreement.
The Company shall pay on each Payment Date in respect of each Purchase
Contract forming part of a Treasury Unit evidenced hereby an amount (the
"Contract Adjustment Payments") equal to ______% per year of the Stated Amount,
computed on the basis of a 360-day year of twelve 30-day months, subject to
deferral at the option of the Company as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof (provided that if any
date on which Contract Adjustment Payments are to be made on the Purchase
Contracts is not a Business Day, then payment of such Contract Adjustment
Payments payable on that date will be made on the next succeeding day which is a
Business Day, and no interest or payment will be paid in respect of such delay,
except that if such next succeeding Business Day is in the next succeeding
calendar year, then such payment will be made on the immediately preceding
Business Day). Such Contract Adjustment Payments shall be payable to the Person
in whose name this Treasury Units Certificate (or a Predecessor Treasury Units
Certificate) is registered at the close of business on the Record Date for such
Payment Date.
Contract Adjustment Payments will be payable at the office of the Agent in
The City of New York, New York or, at the option of the Company, by check mailed
to the address of the Person entitled thereto as such address appears on the
Corporate Units Register. Reference is hereby made to the further provisions 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
Agent by manual signature, this Treasury Units Certificate shall not be entitled
to any benefit under the Pledge Agreement or the Purchase Contract Agreement or
be valid or obligatory for any purpose.
B-2
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.
NATIONAL FUEL GAS COMPANY
By:
--------------------------------------
Name:
Title:
HOLDER SPECIFIED ABOVE (as to obligations
of such Holder under the Purchase
Contracts evidenced hereby)
By: THE BANK OF NEW YORK, not
individually but solely as
Attorney-in-Fact of such Holder
By:
--------------------------------------
Name:
Title:
B-3
AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Treasury Units Certificates referred to in the
within-mentioned Purchase Contract Agreement.
Dated: THE BANK OF NEW YORK,
as Purchase Contract Agent and Trustee
By:______________________________________
Authorized Signatory
B-4
(FORM OF REVERSE OF TREASURY UNITS CERTIFICATE)
Each Purchase Contract evidenced hereby is governed by a Purchase Contract
Agreement, dated as of _________, 200__ (as may be supplemented from time to
time, the "Purchase Contract Agreement"), between the Company and The Bank of
New York, as Purchase Contract Agent (including its successors thereunder,
herein called the "Agent"), to which the Purchase Contract Agreement and
supplemental agreements thereto reference is hereby made for a description of
the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Agent, the Company and the Holders and of the terms upon which
the Treasury Units Certificates are, and are to be, executed and delivered.
Each Purchase Contract evidenced hereby obligates the Holder of this
Treasury Units Certificate to purchase, and the Company to sell, on the Stock
Purchase Date at a price equal to [$25] (the "Purchase Price"), a number of
shares of Common Stock of the Company equal to the Settlement Rate, unless, on
or prior to the Stock Purchase Date, there shall have occurred a Termination
Event or a Cash Settlement, Early Settlement or Merger Early Settlement with
respect to the Unit of which such Purchase Contract is a part. The "Settlement
Rate" is equal to (a) if the Applicable Market Value (as defined below) is equal
to or greater than ______ (the "Threshold Appreciation Price"), ______ shares of
Common Stock per Purchase Contract, (b) if the Applicable Market Value is less
than the Threshold Appreciation Price, but is greater than ______, the number of
shares of Common Stock per Purchase Contract equal to the Stated Amount divided
by the Applicable Market Value and (c) if the Applicable Market Value is less
than or equal to ______, ______ shares of Common Stock per Purchase Contract, in
each case subject to adjustment as provided in the Purchase Contract Agreement.
No fractional shares of Common Stock will be issued upon settlement of Purchase
Contracts, as provided in the Purchase Contract Agreement.
The "Applicable Market Value" means the average of the Closing Price per
share of Common Stock on each of the 20 consecutive Trading Days ending on the
third Trading Day immediately preceding the Stock Purchase Date or, in the event
of a Cash Merger, the Cash Merger Date.
The "Closing Price" of the Common Stock on any date of determination means
the closing sale price per share (or, if no closing sale price is reported, the
last reported sale price) of the Common Stock on the New York Stock Exchange
(the "NYSE") on such date or, if the Common Stock is not listed for trading on
the NYSE on any such date, as reported in the composite transactions for the
principal United States securities exchange on which the Common Stock is so
listed, or if the Common Stock is not so listed on a United States national or
regional securities exchange, as reported by The Nasdaq Stock Market, or if the
Common Stock is not so reported, the last quoted bid price for the Common Stock
in the over-the-counter market as reported by the National Quotation Bureau or
similar organization, or if such bid price is not available, the market value of
the Common Stock on such date as determined by a nationally recognized
independent investment banking firm retained by the Company for this purpose.
A "Trading Day" means a day on which the Common Stock (A) is not suspended
from trading on any national or regional securities exchange or association or
B-5
over-the-counter market at the close of business and (B) has traded at least
once on the national or regional securities exchange or association or
over-the-counter market that is the primary market for the trading of the Common
Stock at the close of business on such day.
Each Purchase Contract evidenced hereby may be settled prior to the Stock
Purchase Date through Cash Settlement, Early Settlement or Merger Early
Settlement, in accordance with the terms of the Purchase Contract Agreement.
In accordance with the terms of the Purchase Contract Agreement, the Holder
of this Treasury Units Certificate shall pay the Purchase Price for the shares
of Common Stock purchased pursuant to each Purchase Contract evidenced hereby
(i) by effecting a Cash Settlement, Early Settlement or Merger Early Settlement
or (ii) by application of payments received in respect of the Pledged Treasury
Securities underlying the Treasury Units represented by this Treasury Units
Certificate.
The Company shall not be obligated to issue any shares of Common Stock in
respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless the Company shall have received payment in full of the aggregate
Purchase Price for the shares of Common Stock to be purchased thereunder in the
manner herein set forth.
The Treasury Units Certificates are issuable only in registered form and
only in denominations of a single Treasury Unit and any integral multiple
thereof. The transfer of any Treasury Units Certificate will be registered and
Treasury Units Certificates may be exchanged as provided in the Purchase
Contract Agreement. The Treasury Units Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents
permitted by the Purchase Contract Agreement. No service charge shall be made
for any such registration of transfer or exchange of a Treasury Units
Certificate, but the Company and the Agent may require payment from the Holder
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Certificates, other than any exchanges not involving any transfer as provided
for in the Purchase Contract Agreement. The Holder of a Treasury Unit may
substitute for the Pledged Treasury Securities securing its obligations under
the related Purchase Contract Notes or the appropriate Treasury Consideration or
Applicable Ownership Interest in the Treasury Portfolio in accordance with the
terms of the Purchase Contract Agreement and the Pledge Agreement. From and
after such Collateral Substitution, the Unit for which such Pledged Notes,
Pledged Treasury Consideration or Pledged Applicable Ownership Interest in the
Treasury Portfolio secures the Holder's obligation under the Purchase Contract
shall be referred to as a "Corporate Unit." A Holder that elects to substitute
Notes or the appropriate Treasury Consideration or Applicable Ownership Interest
in the Treasury Portfolio, as the case may be, for Pledged Treasury Securities,
thereby reestablishing Corporate Units, shall be responsible for any fees or
expenses payable in connection therewith. Except as provided in the Purchase
Contract Agreement, for so long as the Purchase Contract underlying a Treasury
Unit remains in effect, such Treasury Unit shall not be separable into its
constituent parts, and the rights and obligations of the Holder of such Treasury
Unit in respect of the Pledged Treasury Security and the Purchase Contract
comprising such Treasury Unit may be acquired, and may be transferred and
exchanged, only as a Treasury Unit.
B-6
A Holder of Corporate Units may establish Treasury Units at any time from
and after the date of the Purchase Contract Agreement and on or prior to the
second Business Day immediately preceding the Stock Purchase Date by depositing
with the Collateral Agent Treasury Securities in exchange for the release of the
Pledged Notes or the appropriate Pledged Treasury Consideration or Pledged
Applicable Ownership Interest in the Treasury Portfolio, as the case may be, in
accordance with the terms of the Purchase Contract Agreement and the Pledge
Agreement.
Subject to the next succeeding paragraph, the Company shall pay, on each
Payment Date, the Contract Adjustment Payments, if any, payable in respect of
each Purchase Contract to the Person in whose name the Treasury Units
Certificate (or one or more Predecessor Treasury Units Certificates) evidencing
such Purchase Contract is registered on the Treasury Units Register at the close
of business on the Record Date next preceding such Payment Date. The Contract
Adjustment Payments, if any, will be payable at the Corporate Trust Office or,
at the option of the Company, by check mailed to the address of the Person
entitled thereto at such Person's address as it appears on the Treasury Units
Register or by wire transfer to an account appropriately designated by a prior
written notice to such Person.
The Company shall have the right, at any time prior to the Stock Purchase
Date, to defer the payment of any or all of the Contract Adjustment Payments
otherwise payable on any Payment Date, but only if the Company shall give the
Holders and the Agent written notice of its election to defer each such Contract
Adjustment Payments as provided in the Purchase Contract Agreement. Any Contract
Adjustment Payments so deferred shall, to the extent permitted by law, accrue
additional Contract Adjustment Payments thereon at the rate of ____% per year
(computed on the basis of a 360-day year of twelve 30-day months), compounding
on each succeeding Payment Date, until paid in full (such deferred installments
of Contract Adjustment Payments, if any, together with the additional Contract
Adjustment Payments, if any, accrued thereon, are referred to herein as the
"Deferred Contract Adjustment Payments"). Deferred Contract Adjustment Payments,
if any, shall be due on the next succeeding Payment Date except to the extent
that payment is deferred pursuant to the Purchase Contract Agreement. No
Contract Adjustment Payments may be deferred to a date that is after the Stock
Purchase Date and no such deferral period may end other than on a Payment Date.
In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until a Payment Date prior to the
Stock Purchase Date, then all Deferred Contract Adjustment Payments, if any,
shall be payable to the registered Holders as of the close of business on the
Record Date immediately preceding such Payment Date.
B-7
The Company's obligations with respect to Contract Adjustment Payments
(including any accrued or Deferred Contract Adjustment Payments) will be
subordinate and junior in right of payment to the Company's obligations under
any Senior Indebtedness.
In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until the Stock Purchase Date, the
Holder of this Treasury Units Certificate will receive on the Stock Purchase
Date in lieu of a cash payment a number of shares of Common Stock (in addition
to the number of shares of Common Stock equal to the Settlement Rate) equal to
(i) the aggregate amount of Deferred Contract Adjustment Payments payable to the
Holder of this Treasury Units Certificate divided by (ii) the Applicable Market
Value.
In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and will not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of the Company's Capital Stock other than (i) purchases,
redemptions or acquisitions of shares of the Company's Capital Stock in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of employees, officers, directors or agents
or a stock purchase or dividend reinvestment plan, or the satisfaction by the
Company of its obligations pursuant to any contract or security outstanding on
the date the Company exercises its rights to defer the Contract Adjustment
Payments; (ii) as a result of a reclassification of the Company's Capital Stock
or the exchange or conversion of one class or series of the Company's Capital
Stock for another class or series of the Company's Capital Stock; (iii) the
purchase of fractional interests in shares of the Company's Capital Stock
pursuant to the conversion or exchange provisions of such Capital Stock or the
security being converted or exchanged; (iv) dividends or distributions in any
series of the Company's Capital Stock (or rights to acquire Capital Stock) or
repurchases, acquisitions or redemptions of the Company's Capital Stock in
connection with the issuance or exchange of any series of the Company's Capital
Stock (or securities convertible into or exchangeable for shares of the
Company's Capital Stock); or (v) redemptions, exchanges or repurchases of any
rights outstanding under a shareholder rights plan or the declaration or payment
thereunder of a dividend or distribution of or with respect to rights in the
future.
The Purchase Contracts and all obligations and rights of the Company and
the Holders thereunder, including, without limitation, the rights of Holders to
receive accumulated Contract Adjustment Payments, if any, or any Deferred
Contract Adjustment Payments and obligations of the Holders to purchase Common
Stock, will immediately and automatically terminate, without the necessity of
any notice or action by any Holder, the Agent or the Company, if, on or prior to
the Stock Purchase Date, a Termination Event shall have occurred. Upon and after
the occurrence of a Termination Event, the Collateral Agent shall release the
Pledged Treasury Securities from the Pledge in accordance with the provisions of
the Pledge Agreement. Upon the occurrence of a Termination Event, the Company
shall promptly but in no event later than two Business Days thereafter give
written notice to the Agent, the Collateral Agent and to the Holders, at their
addresses as they appear in the Treasury Units Register.
Upon registration of transfer of this Treasury Units Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee, except as may be required by the Agent pursuant to the
Purchase Contract Agreement), under the terms of the Purchase Contract
Agreement, the Purchase Contracts evidenced hereby and the Pledge Agreement and
the transferor shall be released from the obligations under the Purchase
Contract Agreement, the Purchase Contracts evidenced by this Treasury Units
Certificate and the Pledge Agreement. The Company covenants and agrees, and the
Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.
B-8
The Holder of this Treasury Units Certificate, by its acceptance hereof,
irrevocably authorizes the Agent to enter into and perform the related Purchase
Contracts forming part of the Treasury Units evidenced hereby on its behalf as
its attorney-in-fact (including the execution of Certificates on behalf of such
Holder), agrees to be bound by the terms and provisions thereof, covenants and
agrees to perform its obligations under such Purchase Contracts, consents to the
provisions of the Purchase Contract Agreement, irrevocably authorizes the Agent
to enter into and perform the Pledge Agreement on such Holder's behalf as
attorney-in-fact, and consents to and agrees to be bound by the Pledge of the
Treasury Securities underlying this Treasury Units Certificate pursuant to the
Pledge Agreement. The Holder further covenants and agrees, that, to the extent
and in the manner provided in the Purchase Contract Agreement and the Pledge
Agreement, but subject to the terms thereof, payments in respect of the Pledged
Treasury Securities, to be paid upon settlement of such Holder's obligations to
purchase Common Stock under the Purchase Contract, shall be paid on the Stock
Purchase Date by the Collateral Agent to the Company in satisfaction of such
Holder's obligations under such Purchase Contract and such Holder shall acquire
no right, title or interest in such payments. Each Holder of a Treasury Unit, by
acceptance thereof, will be deemed expressly to have withheld any consent to the
assumption (i.e., affirmance) under Section 365 of the Bankruptcy Code or
otherwise, of the Purchase Contract by the Company, its trustee in bankruptcy,
any receiver, liquidator or person or entity performing similar functions in the
event that the Company becomes a debtor under the Bankruptcy Code or subject to
other similar state or federal law providing for reorganization or liquidation.
Each Holder of any Unit, and each Beneficial Owner thereof, by its
acceptance thereof or of its interest therein, further covenants and agrees to
treat (i) itself as the owner of the related Notes, Treasury Consideration or
Treasury Securities, as the case may be, and (ii) the Notes as indebtedness of
the Company, in each case, for United States federal, state and local income and
franchise tax purposes.
Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts.
The Purchase Contracts shall for all purposes be governed by and deemed to
be a contract under, and construed in accordance with, the laws of the State of
New York, without regard to conflicts of laws principles thereof.
The Company, the Agent and its Affiliates and any agent of the Company or
the Agent may treat the Person in whose name this Treasury Units Certificate is
registered as the owner of the Treasury Units evidenced hereby for the purpose
of receiving Contract Adjustment Payments, if any, and any Deferred Contract
Adjustment Payments performance of the Purchase Contracts and for all other
purposes whatsoever, whether or not any payments in respect thereof shall be
overdue and notwithstanding any notice to the contrary, and neither the Company,
the Agent, such Affiliates nor any agent of the Company, the Agent or such
Affiliates shall be affected by notice to the contrary.
Prior to the purchase of shares of Common Stock under each Purchase
Contract, such Purchase Contracts shall not entitle the Holder to any of the
rights of a holder of shares of Common Stock.
B-9
A copy of the Purchase Contract Agreement is available for inspection at
the offices of the Agent.
B-10
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM-- as tenants in common
UNIF GIFT MIN ACT-- Custodian (Minor)
-------------------- --------------------
under Uniform Gifts to Minors Act (State)
-----------------
TEN ENT-- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship and not as
tenants in common
Additional abbreviations may also be used though not in the above list.
-------------------------
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
----------------------------------------------------------------
--------------------------------------------------------------------------------
(Please insert Social Security or Taxpayer I.D. or
other Identifying Number of Assignee)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(Please Print or Type Name and Address Including Postal Zip Code of Assignee)
the within Corporate Units Certificates and all rights thereunder, hereby
irrevocably constituting and appointing
-----------------------------------------
--------------------------------------------------------------------------------
attorney to transfer said Corporate Units Certificates on the books of National
Fuel Gas Company with full power of substitution in the premises.
Dated: _________________ _________________________________________
Signature
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon the face of the within
Corporate Units Certificates in every
particular, without alteration or
enlargement or any change whatsoever.
Signature Guarantee:
-----------------------
Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
B-11
SETTLEMENT INSTRUCTIONS
The undersigned Holder directs that a certificate for shares of Common
Stock deliverable upon settlement on or after the Stock Purchase Date of the
Purchase Contracts underlying the number of Treasury Units evidenced by this
Treasury Units Certificate (after taking into account all Units then held by
such Holder) be registered in the name of, and delivered, together with a check
in payment for any fractional share, to the undersigned at the address indicated
below unless a different name and address have been indicated below. If shares
are to be registered in the name of a Person other than the undersigned, the
undersigned will pay any transfer tax payable incident thereto.
Dated:
------------------ -----------------------------------------
Signature
Signature Guarantee:
-----------------------------
Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
If shares are to be registered in the
name of and delivered to a Person REGISTERED HOLDER
other than the Holder, please (i)
print such Person's name and address
and (ii) provide a guarantee
of your signature:
PLEASE PRINT NAME AND ADDRESS OF REGISTERED HOLDER:
------------------------------ ----------------------------------------
Name Name
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
Address Address
--------------------------------------------------------------------------------
Social Security or other Taxpayer Identification Number, if any
B-12
ELECTION TO SETTLE EARLY
The undersigned Holder of this Treasury Units Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Treasury Units evidenced by this Treasury
Units Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Treasury Units with
an aggregate Stated Amount equal to $1,000 or an integral multiple thereof. The
undersigned Holder directs that a certificate for shares of Common Stock
deliverable upon such Early Settlement (after taking into account all Units then
held by such Holder) be registered in the name of, and delivered, together with
a check in payment for any fractional share and any Treasury Units Certificate
representing any Treasury Units evidenced hereby as to which Early Settlement of
the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below. Pledged Treasury Securities deliverable upon such Early Settlement will
be transferred in accordance with the transfer instructions set forth below. If
shares are to be registered in the name of a Person other than the undersigned,
the undersigned will pay any transfer tax payable incident thereto.
Dated:
------------------ -----------------------------------------
Signature
Signature Guarantee:
--------------------------------
Number of Units evidenced hereby as to which Early Settlement of the related
Purchase Contracts is being elected:
If shares of Common Stock or
Treasury Units Certificates
are to be registered in the name
of and delivered to and Pledged REGISTERED HOLDER
Notes, Pledged Treasury Consideration
or Pledged Applicable Ownership
Interest in the Treasury Portfolio,
as the case may be, are to be
transferred to a Person other than
the Holder, please print such Person's
name and address:
PLEASE PRINT NAME AND ADDRESS OF REGISTERED HOLDER:
------------------------------ ----------------------------------------
Name Name
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
------------------------------ ----------------------------------------
Address Address
--------------------------------------------------------------------------------
Social Security or other Taxpayer Identification Number, if any
Transfer instructions for Pledged Notes, Pledged Treasury Consideration or the
Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case may
be, transferable upon Early Settlement or a Termination Event:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
B-13
[TO BE ATTACHED TO GLOBAL CERTIFICATES]
SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE
The following increases or decreases in this Global Certificate have
been made:
-------------- ----------------- ---------------- ---------------- -------------
STATED AMOUNT
AMOUNT OF AMOUNT OF OF THE GLOBAL
DECREASE IN INCREASE IN CERTIFICATE SIGNATURE OF
STATED AMOUNT STATED AMOUNT FOLLOWING AUTHORIZED
OF THE GLOBAL OF THE GLOBAL SUCH DECREASE OFFICER OF
DATE CERTIFICATE CERTIFICATE OR INCREASE AGENT
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
-------------- ----------------- ---------------- ---------------- -------------
B-14
EXHIBIT C
INSTRUCTION FROM PURCHASE CONTRACT AGENT TO COLLATERAL AGENT
--------------------,
as Collateral Agent
--------------------
--------------------
Attention:
Telecopy:
Re: Equity Units of National Fuel Gas Company (the "Company")
---------------------------------------------------------
We hereby notify you in accordance with Section 4.1 of the Pledge
Agreement, dated as of _________, 200__, among the Company, you, as Collateral
Agent, Custodial Agent and Securities Intermediary, and us, as Purchase Contract
Agent and as attorney-in-fact for the holders of [Corporate Units] [Treasury
Units] from time to time, that the holder of securities listed below (the
Holder) has elected to substitute [$_______ aggregate principal amount of
Treasury Securities (CUSIP No. _________)] [$_______ principal amount of Notes
or the appropriate Treasury Consideration or Applicable Ownership Interest in
the Treasury Portfolio, as the case may be,] in exchange for the related
[Pledged Notes, Pledged Treasury Consideration or Pledged Applicable Ownership
Interest in the Treasury Portfolio, as the case may be [Pledged Treasury
Securities (CUSIP No. _________)] held by you in accordance with the Pledge
Agreement and has delivered to us a notice stating that the Holder has
transferred [Treasury Securities] [Notes or the appropriate Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be,] to you, as Collateral Agent. We hereby instruct you, upon receipt
of such [Treasury Securities] [Notes, Treasury Consideration or Applicable
Ownership Interest in the Treasury Portfolio, as the case may be], and upon the
payment by such Holder of any applicable fees, to release the [Pledged Notes,
Pledged Treasury Consideration or Pledged Applicable Ownership Interest in the
Treasury Portfolio, as the case may be,] [Treasury Securities] related to such
[Corporate Units] [Treasury Units] to us in accordance with the Holder's
instructions.
Date: THE BANK OF NEW YORK,
------------------- as Collateral Agent
By:
--------------------------------------
Name:
Title:
C-1
Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes or Treasury Consideration or Applicable Ownership
Interest in the Treasury Portfolio, as the case may be,] for the [Pledged Notes,
Pledged Treasury Consideration or Pledged Applicable Ownership Interest in the
Treasury Portfolio, as the case may be,] [Pledged Treasury Securities]:
------------------------------ -----------------------------------------
Name Address
------------------------------ -----------------------------------------
Name Address
------------------------------ -----------------------------------------
------------------------------ -----------------------------------------
--------------------------------------------------------------------------------
Social Security or other Taxpayer Identification Number, if any
C-2
EXHIBIT D
INSTRUCTION TO PURCHASE CONTRACT AGENT
The Bank of New York
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust Administration
Telecopy:
Re: Equity Units of National Fuel Gas Company (the "Company")
---------------------------------------------------------
The undersigned Holder hereby notifies you that it has delivered to
____________________, as Collateral Agent, Custodial Agent and Securities
Intermediary (the "Collateral Agent") [$_________ aggregate principal amount of
Treasury Securities] [$_________ principal amount of Notes or the appropriate
Treasury Consideration or Applicable Ownership Interest in the Treasury
Portfolio, as the case may be,] in exchange for the related [Pledged Notes,
Pledged Treasury Consideration or Pledged Applicable Ownership Interest in the
Treasury Portfolio, as the case may be,] [Pledged Treasury Securities] held by
the Collateral Agent, in accordance with Section 4.1 of the Pledge Agreement,
dated as of _________, 200__ (the "Pledge Agreement"), among you, the Company
and the Collateral Agent. The undersigned Holder has paid the Collateral Agent
all applicable fees relating to such exchange. The undersigned Holder hereby
instructs you to instruct the Collateral Agent to release to you on behalf of
the undersigned Holder the [Pledged Notes, Pledged Treasury Consideration or
Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case may
be,] [Pledged Treasury Securities] related to such [Corporate Units] [Treasury
Units].
Date: By:
----------------- --------------------------------------
Name:
Title:
Signature Guarantee:
-------------------------------
Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
Please print name and address of
Registered Holder:
Name Social Security or other Taxpayer
------------------------------ Identification Number, if any
Address
---------------------------
---------------------------------- ---------------------------------
----------------------------------
D-1
EXHIBIT E
NOTICE TO SETTLE BY SEPARATE CASH
The Bank of New York
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust Administration
Telecopy:
Re: Equity Units of National Fuel Gas Company (the "Company")
---------------------------------------------------------
The undersigned Holder hereby irrevocably notifies you in accordance with
Section 5.4 of the Purchase Contract Agreement, dated as of _________, 200__
among the Company, yourselves, as Purchase Contract Agent, Attorney-in-Fact and
Trustee for the Holders of the Purchase Contracts, that such Holder has elected
to pay to the Collateral Agent, on or prior to 11:00 a.m. New York City time, on
the Business Day immediately preceding the Stock Purchase Date, (in lawful money
of the United States by certified or cashiers check or wire transfer, in each
case in immediately available funds), $_________ as the Purchase Price for the
shares of Common Stock issuable to such Holder by the Company under the related
Purchase Contract on the Stock Purchase Date. The undersigned Holder hereby
instructs you to notify promptly the Collateral Agent of the undersigned
Holder's election to make such cash settlement with respect to the Purchase
Contracts related to such Holder's [Corporate Units].
Date: By:
----------------- --------------------------------------
Name:
Title:
Signature Guarantee:
-------------------
Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
Please print name and address of
Registered Holder:
Name Social Security or other Taxpayer
------------------------------ Identification Number, if any
Address
---------------------------
---------------------------------- ---------------------------------
----------------------------------
E-1
