Exhibit 4(b)
Consumers Power Company, Issuer
and
The Bank of New York, Trustee
INDENTURE
Dated as of January 1, 1996
Subordinated Debt Securities
CROSS REFERENCE SHEET
_____________
Provisions of Trust Indenture Act of 1939 and Indenture to
be dated as of January 1, 1996 between Consumers Power Company and The
Bank of New York:
Section of the Act Section of Indenture
310(a)(1) and (2)............. 6.9
310(a)(3) and (4)............. Inapplicable
310(b)........................ 6.8 and 6.10(a), (b) and (d)
310(c)........................ Inapplicable
311(a)........................ 6.13(a) and (c)(1) and (2)
311(b)........................ 6.13(b)
311(c)........................ Inapplicable
312(a)........................ 4.1 and 4.2(a)
312(b)........................ 4.2(a) and (b)(i) and (ii)
312(c)........................ 4.2(c)
313(a)........................ 4.4(a)
313(b)(1)..................... Inapplicable
313(b)(2)..................... 4.4(b)
313(c)........................ 4.4(c)
313(d)........................ 4.4(d)
314(a)........................ 4.3
314(b)........................ Inapplicable
314(c)(1) and (2)............. 13.5
314(c)(3)..................... Inapplicable
314(d)........................ Inapplicable
314(e)........................ 13.5
314(f)........................ Inapplicable
315(a), (c) and (d)........... 6.1
315(b)........................ 5.11
315(e)........................ 5.12
316(a)(1)..................... 5.9
316(a)(2)..................... Not required
316(a) (last sentence)........ 7.4
316(b)........................ 5.7
316(c)........................ Not required
317(a)........................ 5.2
317(b)........................ 3.4(a) and (b)
318(a)........................ 13.7
________________
* This Cross Reference Sheet is not part of the Indenture.
TABLE OF CONTENTS
_____________
Page
PARTIES 1
RECITALS
Authorization of Indenture 1
Compliance with Legal Requirements 1
Purpose of and Consideration for Indenture 1
ARTICLE ONE
DEFINITIONS 1
Section 1.1 Certain Terms Defined 1
Affiliate 2
Authenticating Agent 2
Board of Directors 2
Board Resolution 2
Business Day 2
Commission 2
Common Securities 2
Common Securities Guarantee 3
Consumers Trust 3
Corporate Trust Office 3
Declaration 3
Depository 3
Event of Default 3
Global Security 3
Government Obligations 3
"Holder", "Holder of Securities",
"Securityholder 4
Indenture 4
Interest Payment Date 4
Issuer 4
Issuer Order 4
Maturity 4
Officers' Certificate 4
Opinion of Counsel 4
Outstanding 5
Person 6
Preferred Securities 6
Preferred Securities Guarantee 6
PPPrincipal 6
Property Trustee 6
Record Date 6
Responsible Officer 6
Security" or "Securities 7
Security Register" and "
Security Registrar 7
Senior Indebtedness 7
Subsidiary 7
Stated Maturity 7
Trust Indenture Act of 1939" or
"Trust Indenture Act 7
Trust Securities 7
Trustee 7
ARTICLE TWO
SECURITIES 7
Section 2.1 Forms Generally 7
Section 2.2 Form of Trustee's Certificate of
Authentication 8
Section 2.3 Amount Unlimited; Issuable in Series 9
Section 2.4 Authentication and Delivery of
Securities 12
Section 2.5 Execution of Securities 14
Section 2.6 Certificate of Authentication 15
Section 2.7 Denomination of Securities; Payments
of Interest 15
Section 2.8 Registration, Transfer and Exchange 16
Section 2.9 Mutilated, Defaced, Destroyed, Lost
and Stolen Securities 19
Section 2.10 Cancellation of Securities; Destruction
Thereof 20
Section 2.11 Temporary Securities 21
Section 2.12 Computation of Interest 21
ARTICLE THREE
COVENANTS OF THE ISSUER 21
Section 3.1 Payment of Principal and Interest 21
Section 3.2 Offices for Payments, etc. 22
Section 3.3 Appointment to Fill a Vacancy in Office
of Trustee 23
Section 3.4 Paying Agents 23
Section 3.5 Limitation on Dividends; Transactions
with Affiliates 24
Section 3.6 Covenants as to Consumers Trust 25
ARTICLE FOUR
SECURITYHOLDERS LISTS AND REPORTS BY THE
ISSUER AND THE TRUSTEE 25
Section 4.1 Issuer to Furnish Trustee Names and
Addresses of Securityholders 25
Section 4.2 Preservation and Disclosure of
Securityholders Lists 26
Section 4.3 Reports by the Issuer 27
Section 4.4 Reports by the Trustee 28
ARTICLE FIVE
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
ON EVENT OF DEFAULT 29
Section 5.1 Event of Default Defined; Acceleration
of Maturity; Waiver of Default 29
Section 5.2 Collection of Indebtedness by Trustee;
Trustee May Prove Debt 32
Section 5.3 Application of Proceeds 34
Section 5.4 Suits for Enforcement 35
Section 5.5 Restoration of Rights on Abandonment
of Proceedings 36
Section 5.6 Limitations on Suits by Securityholders 36
Section 5.7 Unconditional Right of Securityholders
to Receive Principal and Interest and
to Institute Certain Suits 37
Section 5.8 Powers and Remedies Cumulative; Delay
or Omission Not Waiver of Default 37
Section 5.9 Control by Holders of Securities 37
Section 5.10 Waiver of Past Defaults 38
Section 5.11 Trustee to Give Notice of Default, But
May Withhold in Certain Circumstances 38
Section 5.12 Right of Court to Require Filing of
Undertaking to Pay Costs 39
Section 5.13 Waiver of Stay or Extension Laws 39
ARTICLE SIX
CONCERNING THE TRUSTEE 40
Section 6.1 Duties and Responsibilities of the
Trustee; During Default; Prior to
Default 40
Section 6.2 Certain Rights of the Trustee 41
Section 6.3 Trustee Not Responsible for Recitals,
Disposition of Securities or Application
of Proceeds Thereof 42
Section 6.4 Trustee and Agents May Hold Securities;
Collections, etc. 43
Section 6.5 Moneys Held by Trustee 43
Section 6.6 Compensation and Indemnification of
Trustee and Its Prior Claim 43
Section 6.7 Right of Trustee to Rely on Officers'
Certificate, etc. 44
Section 6.8 Qualification of Trustee; Conflicting
Interests 44
Section 6.9 Persons Eligible for Appointment as
Trustee 44
Section 6.10 Resignation and Removal; Appointment of
Successor Trustee 45
Section 6.11 Acceptance of Appointment by Successor
Trustee 46
Section 6.12 Merger, Conversion, Consolidation or
Succession to Business of Trustee 47
Section 6.13 Preferential Collection of Claims Against
the Issuer 48
Section 6.14 Appointment of Authenticating Agent 48
ARTICLE SEVEN
CONCERNING THE SECURITYHOLDERS 49
Section 7.1 Evidence of Action Taken by
Securityholders 49
Section 7.2 Proof of Execution of Instruments and of
Holding of Securities 49
Section 7.3 Holders to Be Treated as Owners 50
Section 7.4 Securities Owned by Issuer Deemed Not
Outstanding 50
Section 7.5 Right of Revocation of Action Taken 51
Section 7.6 Calculation of Original Issue Discount 52
ARTICLE EIGHT
SUPPLEMENTAL INDENTURES 52
Section 8.1 Supplemental Indentures Without Consent
of Securityholders 52
Section 8.2 Supplemental Indentures With Consent of
Securityholders 53
Section 8.3 Effect of Supplemental Indenture 55
Section 8.4 Documents to Be Given to Trustee 55
Section 8.5 Notation on Securities in Respect of
Supplemental Indentures 55
ARTICLE NINE
CONSOLIDATION, MERGER, SALE OR CONVEYANCE 56
Section 9.1 Covenant of Issuer Not to Merge,
Consolidate, Sell or Convey Property
Except Under Certain Conditions 56
Section 9.2 Successor Corporation Substituted for
Issuer 57
Section 9.3 Opinion of Counsel Delivered to Trustee 57
ARTICLE TEN
SATISFACTION AND DISCHARGE OF INDENTURE;
UNCLAIMED MONEYS 58
Section 10.1 Satisfaction and Discharge of Indenture 58
Section 10.2 Application by Trustee of Funds Deposited
for Payment of Securities 61
Section 10.3 Repayment of Moneys Held by Paying Agent 61
Section 10.4 Return of Moneys Held by Trustee and
Paying Agent Unclaimed for Three Years 61
Section 10.5 Indemnity for Government Obligations 62
ARTICLE ELEVEN
REDEMPTION OF SECURITIES AND SINKING FUNDS 62
Section 11.1 Applicability of Article 62
Section 11.2 Notice of Redemption; Partial
Redemptions 62
Section 11.3 Payment of Securities Called for
Redemption 64
Section 11.4 Exclusion of Certain Securities from
Eligibility for Selection for Redemption 64
Section 11.5 Mandatory and Optional Sinking Funds 64
ARTICLE TWELVE
SUBORDINATION 67
Section 12.1 Applicability of Article; Securities
Subordinated to Senior Indebtedness 67
Section 12.2 Issuer Not to Make Payments with Respect
to Subordinated Securities in Certain
Circumstances 68
Section 12.3 Subordinated Securities Subordinated
to Prior Payment of All Senior
Indebtedness on Dissolution, Liquidation
or Reorganization of Issuer 70
Section 12.4 Holders of Subordinated Securities to be
Subrogated to Right of Holders of Senior
Indebtedness 72
Section 12.5 Obligation of the Issuer Unconditional 72
Section 12.6 Trustee Entitled to Assume Payments Not
Prohibited in Absence of Notice 73
Section 12.7 Application by Trustee of Monies or
Government Obligations Deposited with It 74
Section 12.8 Subordination Rights Not Impaired by
Acts or Omissions of Issuer or Holders
of Senior Indebtedness 74
Section 12.9 Securityholders Authorize Trustee to
Effectuate Subordination of Securities 75
Section 12.10 Right of Trustee to Hold Senior
Indebtedness 75
Section 12.11 Article Twelve Not to Prevent Events
of Defaults 76
ARTICLE THIRTEEN
MISCELLANEOUS PROVISIONS 76
Section 13.1 Incorporators, Stockholders, Officers
and Directors of Issuer Exempt from
Individual Liability 76
Section 13.2 Provisions of Indenture for the Sole
Benefit of Parties and Holders of
Securities 76
Section 13.3 Successors and Assigns of Issuer
Bound by Indenture 76
Section 13.4 Notices and Demands on Issuer, Trustee
and Holders of Securities 77
Section 13.5 Officers' Certificates and Opinions
of Counsel; Statements to be
Contained Therein 77
Section 13.6 Payments Due on Saturdays, Sundays
and Holidays 79
Section 13.7 Conflict of any Provision of Indenture
with Trust Indenture Act of 1939 79
Section 13.8 Governing Law 79
Section 13.9 Counterparts 79
Section 13.10 Effect of Headings and Table of
Contents 79
Section 13.11 Separability Clause 80
THIS INDENTURE dated as of January 1, 1996 between
Consumers Power Company, a Michigan corporation (the "Issuer"), and The
Bank of New York, a New York banking corporation, as trustee (the
"Trustee").
W I T N E S S E T H :
WHEREAS, the Issuer has duly authorized the issue from
time to time of its debentures, notes, bonds or other evidences of
indebtedness to be issued in one or more series (the "Securities") up to
such principal amount or amounts as may from time to time be authorized in
accordance with the terms of this Indenture;
WHEREAS, the Issuer has duly authorized the execution and
delivery of this Indenture to provide, among other things, for the
authentication, delivery and administration of the Securities; and
WHEREAS, all things necessary to make this Indenture a
valid indenture and agreement according to its terms have been done;
NOW, THEREFORE:
In consideration of the premises and the purchases of the
Securities by the holders thereof, the Issuer and the Trustee mutually
covenant and agree for the equal and proportionate benefit of the
respective holders from time to time of the Securities as follows:
ARTICLE ONE
DEFINITIONS
Section 1.1 Certain Terms Defined. The following terms
(except as otherwise expressly provided or unless the context otherwise
clearly requires) for all purposes of this Indenture and of any indenture
supplemental hereto shall have the respective meanings specified in this
Section. All other terms used in this Indenture that are defined in the
Trust Indenture Act of 1939, including terms defined therein by reference
to the Securities Act of 1933, as amended (except as herein otherwise
expressly provided or unless the context otherwise requires), shall have
the meanings assigned to such terms in said Trust Indenture Act and in
said Securities Act as in force at the date of this Indenture. All
accounting terms used herein and not expressly defined shall have the
meanings assigned to such terms in accordance with generally accepted
accounting principles, and the term "generally accepted accounting
principles" means such accounting principles as are generally accepted in
the United States of America at the time of any computation. References
to any statute mean such statute as amended at the time and includes any
successor legislation. The words "herein", "hereof" and "hereunder" and
other words of similar import refer to this Indenture as a whole and not
to any particular Article, Section or other subdivision. The terms
defined in this Article include the plural as well as the singular.
"Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of
this definition, "control" when used with respect to any specified Person
means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.
"Authenticating Agent" shall have the meaning set forth in
Section 6.14.
"Board of Directors" means either the Board of Directors
of the Issuer or any committee of such Board duly authorized to act on its
behalf.
"Board Resolution" means a copy of one or more
resolutions, certified by the secretary or an assistant secretary of the
Issuer to have been duly adopted or consented to by the Board of Directors
and to be in full force and effect, and delivered to the Trustee.
"Business Day" means a day on which banking institutions
in New York, New York or Delaware are not authorized or required by law or
regulation to close.
"Commission" means the Securities and Exchange Commission,
as from time to time constituted, created under the Securities Exchange
Act of 1934, or, if at any time after the execution and delivery of this
Indenture such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act of 1939, then the body
performing such duties at such time.
"Common Securities" means undivided beneficial interests
in the assets of a Consumers Trust which rank pari passu with Preferred
Securities issued by such trust; provided, however, that upon the
occurrence of an Event of Default, the rights of holders of Common
Securities to payment in respect of distributions and payments upon
liquidation, redemption and maturity are subordinated to the rights of
holders of Preferred Securities.
"Common Securities Guarantee" means any guarantee that
the Issuer may enter into that operates directly or indirectly for the
benefit of holders of Common Securities of Consumers Trust.
"Consumers Trust" means a Delaware business trust formed
by the Issuer for the purpose of purchasing the Securities of the Issuer.
"Corporate Trust Office" means the office of the Trustee
at which the corporate trust business of the Trustee shall, at any
particular time, be principally administered, which office is, at the date
as of which this Indenture is dated, located at 000 Xxxxxxx Xx., Xxx Xxxx,
Xxx Xxxx 00000.
"Declaration" means, in respect of a Consumers Trust, the
amended and restated declaration of trust of such Consumers Trust or any
other governing instrument of such Trust.
"Depository" means, with respect to the Securities of any
series issuable or issued in the form of one or more Global Securities,
the Person designated as Depository by the Issuer pursuant to Section 2.3,
which must be a clearing agency registered under the Securities Exchange
Act of 1934, as amended, and any other applicable statute or regulation,
until a successor Depository shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Depository" shall
mean each Person who is then a Depository hereunder; and if at any time
there is more than one such Person, "Depository" as used with respect to
the Securities of any such series shall mean each Depository with respect
to the Global Securities of such series.
"Event of Default" means any event or condition specified
as such in Section 5.1.
"Global Security" means a Security evidencing all or a
part of a series of Securities issued to the Depository, or its nominee,
for such series in accordance with Section 2.4, and bearing the legend
prescribed in Section 2.4.
"Government Obligations" means direct obligations of the
United States for the payment of which its full faith and credit is
pledged, or obligations of a person controlled or supervised by and acting
as an agency or instrumentality of the United States and the payment of
which is unconditionally guaranteed by the United States, and shall also
include a depository receipt issued by a bank or trust company as
custodian with respect to any such Government Obligation or a specific
payment of interest on or principal of any such Government Obligation held
by such custodian for the account of a holder of a depository receipt;
provided that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of
the Government Obligation or the specific payment of interest on or
principal of the Government Obligation evidenced by such depository
receipt.
"Holder", "Holder of Securities", "Securityholder" or
other similar terms mean the Person in whose name such Security is
registered in the Security Register kept by the Issuer for that purpose in
accordance with the terms hereof.
"Indenture" means this instrument as originally executed
and delivered or, if amended or supplemented as herein provided, as so
amended or supplemented or both, and shall include the forms and terms of
particular series of Securities established as provided hereunder.
"Interest Payment Date" means (a) the date or dates, if
any, on which interest is to be paid on any Security as established
pursuant to Section 2.3(f), (b) the date of maturity or redemption of such
Security, and (c) only with respect to defaulted interest on such
Security, the date established for the payment of such defaulted interest
pursuant to Section 2.7 hereof.
"Issuer" means (except as otherwise provided in
Article Six) Consumers Power Company, a Michigan corporation, and, subject
to Article Nine, its successors and assigns.
"Issuer Order" means a written statement, request or order
of the Issuer signed in its name by the Chairman, the President or any
Vice President (whether or not designated by a number or numbers or a word
or words added before or after the title "Vice President") or by the
Treasurer of the Issuer.
"Maturity" means, when used with respect to any Security,
the date on which the principal of such Security or an installment of
principal becomes due and payable as therein or herein provided, whether
at the Stated Maturity or by declaration of acceleration, call for
redemption or otherwise.
"Officers' Certificate" means a certificate signed by the
Chairman, the President or any Vice President (whether or not designated
by a number or numbers or a word or words added before or after the title
"Vice President"), and by the Chief Financial Officer, Treasurer, any
Assistant Treasurer, the Secretary or any Assistant Secretary, of the
Issuer and delivered to the Trustee. Except as otherwise provided herein,
each such certificate shall include the statements provided for in
Section 14.5.
"Opinion of Counsel" means an opinion in writing signed by
the counsel of the Issuer as designated by the Board of Directors or by
such other legal counsel who may be an employee of or regular counsel to
the Issuer and who shall be satisfactory to the Trustee. Each such
opinion shall include the statements provided for in Section 13.5, if and
to the extent required thereby.
"Outstanding" (except as otherwise provided in
Section 6.8), when used with reference to Securities, shall, subject to
the provisions of Section 7.4, mean, as of any particular time, all
Securities theretofore authenticated and delivered by the Trustee under
this Indenture, except:
(a) Securities theretofore cancelled by the
Trustee or delivered to the Trustee for cancellation;
(b) Securities, or portions thereof, for the
payment or redemption of which moneys or Government
Obligations (as provided for in Section 10.1) in the
necessary amount shall have been theretofore deposited in
trust with the Trustee or with any paying agent (other
than the Issuer) or shall have been set aside, segregated
and held in trust by the Issuer for the Holders of such
Securities (if the Issuer shall act as its own paying
agent), provided that if such Securities, or portions
thereof, are to be redeemed prior to the Maturity thereof,
notice of such redemption shall have been given as herein
provided, or provision satisfactory to the Trustee shall
have been made for giving such notice; and
(c) Securities which shall have been paid or in
substitution for which other Securities shall have been
authenticated and delivered pursuant to the terms of
Section 2.9 (except with respect to any such Security as
to which proof satisfactory to the Trustee is presented
that such Security is held by a Person in whose hands such
Security is a legal, valid and binding obligation of the
Issuer).
In determining whether the Holders of the requisite
principal amount of Outstanding Securities of any or all series have given
any request, demand, authorization, direction, notice, consent or waiver
hereunder Securities owned by the Issuer or any other obligor upon the
Securities of any Affiliate of the Issuer or of such other obligor shall
be disregarded and deemed not to be Outstanding, except that in
determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver,
only Securities which the Trustee knows to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to
such Securities and that the pledgee is not the Issuer or any other
obligor upon the Securities or an Affiliate of the Issuer or of such other
obligor.
"Person" means 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.
"Preferred Securities" means undivided beneficial
interests in the assets of a Consumers Trust which rank pari passu with
Common Securities issued by such trust; provided however, that upon the
occurrence of an Event of Default, the rights of holders of Common
Securities to payment in respect of distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights of
holders of Preferred Securities.
"Preferred Securities Guarantee" means any guarantee that
the Issuer may enter into that operates directly or indirectly for the
benefit of holders of Preferred Securities of a Consumers Trust.
"principal" means the amount (including, without
limitation, if and to the extent applicable, any premium) that is payable
with respect to a Security as of any date and for any purpose (including,
without limitation, in connection with any sinking fund, upon any
redemption at the option of the Issuer, upon any purchase or exchange at
the option of the Issuer or the Holder of such Security and upon any
acceleration of the Maturity of such Security).
"Property Trustee" means the entity performing the
functions of the Property Trustee of a Consumers Trust under the
applicable Declaration of such Consumers Trust.
"Record Date" shall have the meaning set forth in
Section 2.7.
"Responsible Officer", when used with respect to the
Trustee, means the chairman of the board of directors, any vice chairman
of the board of directors, the chairman of the trust committee, the
chairman of the executive committee, any vice chairman of the executive
committee, the president, any vice president (whether or not designated by
numbers or words added before or after the title "vice president"), the
cashier, the secretary, the treasurer, any trust officer, any assistant
trust officer, any assistant vice president, any assistant cashier, any
assistant secretary, any assistant treasurer or any other officer or
assistant officer of the Trustee customarily performing 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
his knowledge of and familiarity with the particular subject.
"Security" or "Securities" (except as otherwise provided
in Section 6.8) shall have the meaning stated in the first recital of this
Indenture and, more particularly, any Securities that have been
authenticated and delivered under this Indenture.
"Security Register" and "Security Registrar" shall have
the respective meanings set forth in Section 2.8.
"Senior Indebtedness" shall have the meaning set forth in
Section 12.1(b).
"Subsidiary" means a corporation more than 50% of the
outstanding voting stock of which is owned, directly or indirectly, by the
Issuer or by one or more other Subsidiaries. For the purposes of this
definition, "voting stock" means stock which ordinarily has voting power
for the election of directors, whether at all times or only so long as no
senior class of stock has such voting power by reason of any contingency.
"Stated Maturity" means, when used with respect to any
Security or any installment of principal thereof or interest thereon, the
date specified in such Security as the fixed date on which the principal
of such Security or such installment of principal or interest is due and
payable.
"Trust Indenture Act of 1939" or "Trust Indenture Act"
(except as otherwise provided in Sections 8.1 and 8.2) means the Trust
Indenture Act of 1939 as in force at the date as of which this Indenture
was originally executed.
"Trust Securities" means Common Securities and Preferred
Securities.
"Trustee" means the Person identified as the "Trustee" in
the first paragraph hereof and, subject to the provisions of Article Six,
shall also include any successor trustee. "Trustee" shall also mean or
include each Person who is then a trustee hereunder; and if at any time
there is more than one such Person, "Trustee" as used with respect to the
Securities of any series shall mean the trustee with respect to the
Securities of such series.
ARTICLE TWO
SECURITIES
Section 2.1 Forms Generally. The Securities of each
series shall be substantially in such form (not inconsistent with this
Indenture) as shall be established by or pursuant to one or more Board
Resolutions (as set forth in a Board Resolution or, to the extent
established pursuant to rather than set forth in a Board Resolution, an
Officers' Certificate detailing such establishment) or in one or more
indentures supplemental hereto, in each case with such appropriate inser-
tions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have imprinted or otherwise
reproduced thereon such letters, numbers or other marks of identification
and such legend or legends or endorsements, not inconsistent with the
provisions of this Indenture, as may be required to comply with any law or
with any rules or regulations pursuant thereto, or with any rules of any
securities exchange or to conform to general usage, all as may be
determined by the officers executing such Securities as evidenced by their
execution of such Securities.
The definitive Securities shall be printed, lithographed
or engraved on steel engraved borders or may be produced in any other
manner, all as determined by the officers executing such Securities as
evidenced by their execution of such Securities.
Section 2.2 Form of Trustee's Certificate of
Authentication. The Trustee's certificate of authentication on all
Securities shall be in substantially the following form:
"This is one of the Securities of the series designated
herein referred to in the within-mentioned Indenture.
The Bank of New York,
as Trustee
By_____________________________
Authorized Signatory
If at any time there shall be an Authenticating Agent
appointed with respect to any series of Securities, then the Trustee's
certificate of authentication to be borne by the Securities of each such
series shall be substantially as follows:
"This is one of the Securities of the series designated
herein referred to in the within-mentioned Indenture.
_________________________
as Authenticating Agent
By_______________________
Authorized Officer
Section 2.3 Amount Unlimited; Issuable in Series.
(a) The aggregate principal amount of Securities which
may be authenticated and delivered under this Indenture is unlimited.
(b) The Securities may be issued in one or more series
and shall be direct obligations of the Issuer.
(c) Each Security shall be dated and issued as of the
date of its authentication by the Trustee.
(d) Each Security shall bear interest from the later of
its original date of authentication or the most recent Interest Payment
Date to which interest has been paid or duly provided for with respect to
such Security until the principal of such Security is paid or made
available for payment, and interest on each Security shall be payable on
each Interest Payment Date after the date of such Security.
(e) Each Security shall mature on a date specified in the
Security and the principal amount of each outstanding Security shall be
payable on the Maturity specified therein.
(f) There shall be established in or pursuant to one or
more Board Resolutions (and, to the extent established pursuant to rather
than set forth in a Board Resolution, in an Officers' Certificate
detailing such establishment) or established in one or more indentures
supplemental hereto, prior to the initial issuance of Securities of any
series:
(1) the designation of the Securities of such
series, which shall distinguish the Securities of such
series from the Securities of all other series;
(2) any limit upon the aggregate principal
amount of the Securities of such series that may be
authenticated and delivered under this Indenture (except
for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in
lieu of, other Securities of such series pursuant to
Section 2.8, 2.9, 2.11, 8.5 or 11.3);
(3) subject to Section 2.3(e), the date or dates
(and whether fixed or extendible) on which the principal
of the Securities of such series is payable;
(4) the date from which interest on the
Securities of such series shall begin to accrue, the rate
or rates at which the Securities of such series shall bear
interest, if any, the Interest Payment Date or Dates for
the Securities of such series and the Record Date for
interest payable on any Interest Payment Date;
(5) the place or places where the principal of
and any interest on Securities of such series shall be
payable and where such Securities may be registered or
transferred (if in addition to, or other than, as provided
in Section 3.2);
(6) the right, if any, of the Issuer to redeem
or purchase Securities of such series, in whole or in
part, at its option and the period or periods within
which, the price or prices at which and any terms and
conditions upon which Securities of such series may be so
redeemed;
(7) the obligation, if any, of the Issuer to
redeem, purchase or repay Securities of such series
pursuant to any mandatory redemption, sinking fund or
analogous provisions or at the option of a Holder thereof
and the price or prices at which and the period or periods
within which and any terms and conditions upon which
Securities of such series shall be redeemed, purchased or
repaid, in whole or in part, pursuant to such obligation;
(8) if other than denominations of $25 and any
integral multiple thereof, the denominations in which
Securities of such series shall be issuable;
(9) whether the Securities of such series will
be subordinated to the payment of Senior Indebtedness on
the terms and conditions set forth in Article Twelve and
whether such subordination shall be subject to any
provisions in addition to or in lieu of those set forth in
Article Twelve;
(10) whether the Securities of such series
will be issuable as Global Securities;
(11) whether and under what circumstances the
Issuer will pay additional amounts on the Securities of
such series held by a person who is not a U.S. Person in
respect of any tax, assessment or governmental charge
withheld or deducted and, if so, whether the Issuer will
have the option to redeem such Securities rather than pay
such additional amounts;
(12) if the Securities of such series are to be
issuable in definitive form (whether upon original issue
or upon exchange of a temporary Security of such series)
only upon receipt of certain certificates or other
documents or satisfaction of other conditions, and the
form and terms of any such certificates, documents or
conditions;
(13) any trustees, depositaries, authenticating
or paying agents, transfer agents, conversion agents or
registrars or any other agents with respect to the
Securities of such series;
(14) any events of default or covenants with
respect to the Securities of such series other than those
specified herein;
(15) the Person to whom any interest on a
Security of such series shall be payable, if other than
the Person in whose name the Security (or one or more
predecessor Securities) is registered at the close of
business on the Record Date for such interest;
(16) if the Securities of such series shall be
issued in whole or in part in the form of one or more
Global Securities, whether beneficial owners of interests
in any such Global Security may exchange such interests
for Securities of such series of like tenor and of
authorized form and denomination and the circumstances
under which any such changes may occur, if other than in
the manner provided in Section 2.8;
(17) the right of the Issuer, if any, to defer any
payment of principal of or interest on the Securities of such
series, and the maximum length of any such deferral period;
(18) whether any property will be pledged to
secure the Securities; and
(19) any other terms of such series (which terms
shall not be inconsistent with the provisions of this
Indenture).
All Securities of any one series shall be substantially
identical, except as to denomination and except as may otherwise be
provided by or pursuant to the Board Resolution or Officers' Certificate
referred to above or as set forth in any indenture supplemental hereto
referred to above. All Securities of any one series need not be issued at
the same time and may be issued from time to time, consistent with the
terms of this Indenture, if so provided by or pursuant to such Board
Resolution, such Officers' Certificate or in any such indenture
supplemental hereto.
Section 2.4 Authentication and Delivery of Securities.
The Issuer may from time to time deliver Securities of any series,
executed by the Issuer to the Trustee for authentication, together with
the applicable documents referred to below in this Section, and the
Trustee shall thereupon authenticate and make available for delivery such
Securities to or upon the order of the Issuer (contained in the Issuer
Order referred to below in this Section) or pursuant to such procedures
acceptable to the Trustee and to such recipients as may be specified from
time to time by an Issuer Order. If so provided in the Board Resolution,
Officers' Certificate or supplemental indenture establishing the
Securities of any series, the maturity date, interest accrual date,
interest rate, Interest Payment Date or Dates and any other terms of any
or all of the Securities of such series may be determined by or pursuant
to such Issuer Order and procedures. If provided for in such procedures,
such Issuer Order may authorize authentication and delivery pursuant to
instructions (from the Issuer or its duly authorized agent) in writing, by
facsimile or any other method mutually agreed upon by the Issuer and
Trustee. In authenticating the Securities of a series and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive (but, in the case of
subparagraphs 2, 3 and 4 below, only at or before the time of the first
request of the Issuer to the Trustee to authenticate Securities of such
series, however, any request after the first shall be deemed to include
the representation of the Issuer that the document previously delivered
pursuant to subparagraphs 2, 3 and 4 below are still true and in effect)
and (subject to Section 6.1) shall be fully protected in relying upon,
unless and until such documents have been superseded or revoked:
(1) an Issuer Order requesting such authen-
tication and setting forth delivery instructions if the
Securities are not to be delivered to the Issuer.
(2) any Board Resolution, Officers' Certificate
and/or executed supplemental indenture referred to in
Sections 2.1 and 2.3 by or pursuant to which the forms and
terms of the Securities of such series were established;
(3) an Officers' Certificate setting forth the
form or forms and terms of the Securities of such series
stating (a) that such form or forms and terms have been
established pursuant to Sections 2.1 and 2.3 and comply
with this Indenture, (b) the aggregate principal amount of
all of the Securities outstanding under this Indenture and
(c) covering such other matters as the Trustee may
reasonably request; and
(4) at the option of the Issuer, either an
Opinion of Counsel, or a letter addressed to the Trustee
permitting it to rely on an Opinion of Counsel,
substantially to the effect that:
(a) the forms of the Securities
of such series have been duly authorized
and established in conformity with the
provisions of this Indenture;
(b) the terms of the Securities
of such series have been duly authorized
and established in conformity with the
provisions of this Indenture;
(c) when the Securities of such
series have been executed by the Issuer
and authenticated by the Trustee in
accordance with the provisions of this
Indenture and delivered to and duly paid
for by the purchasers thereof, they will
have been duly issued under this
Indenture and will be valid and legally
binding obligations of the Issuer,
enforceable in accordance with their
respective terms, subject to bankruptcy,
insolvency, reorganization and other laws
of general applicability relating to or
affecting the enforcement of creditors'
rights and to general principles of
equity, and will be entitled to the
benefits of this Indenture;
(d) the Indenture has been duly
authorized, executed and delivered by the
Issuer and constitutes a legal, valid and
binding agreement of the Issuer,
enforceable in accordance with its terms,
subject to bankruptcy, insolvency,
reorganization and other laws of general
applicability relating to or affecting
the enforcement of creditors' rights and
to general principles of equity;
(e) the issuance of the
Securities will not result in any default
under this Indenture, or any other
contract, indenture, loan agreement or
other instrument to which the Issuer is a
party or by which it or any of its
property is bound; and
(f) no consent, approval,
authorization, order, registration or
qualification of or with any governmental
agency or body having jurisdiction over
the Issuer is required for the execution
and delivery of the Securities of such
series by the Issuer, except such as have
been obtained (except that no opinion
need be expressed as to state securities
or Blue Sky laws).
The Trustee shall have the right to decline to
authenticate and deliver any Securities of any series under this Section
(other than Securities the forms and terms of which shall have been
established by supplemental indenture) if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken by the
Issuer or if the Trustee in good faith by its board of directors or board
of trustees, executive committee or a trust committee of directors,
trustees or Responsible Officers shall determine that such action would
expose the Trustee to personal liability to existing Holders or would
affect the Trustee's rights, duties or immunities under the Securities of
any such series, this Indenture or otherwise.
If the Issuer shall establish pursuant to Section 2.3 that
the Securities of a series are to be issued in the form of one or more
Global Securities, then the Issuer shall execute and the Trustee shall, in
accordance with this Section and the Issuer Order with respect to such
series, authenticate and make available for delivery one or more Global
Securities that (i) shall be in an aggregate amount equal to the aggregate
principal amount specified in such Issuer Order, (ii) shall be registered
in the name of the Depository therefor or its nominee, (iii) shall be
delivered by the Trustee to such Depository or pursuant to such
Depository's instructions and (iv) shall bear a legend substantially to
the following effect: "Unless and until it is exchanged in whole or in
part for Securities in definitive registered form, this Security may not
be transferred except as a whole by the Depository to the nominee of the
Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository."
Section 2.5 Execution of Securities. The Securities
shall be signed on behalf of the Issuer by both (a) its Chairman, its
President or any Vice President (whether or not designated by a number or
numbers or a word or words added before or after the title "Vice
President"), under its corporate seal reproduced thereon, which need not
be attested and (b) by its Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Secretary or any Assistant Secretary. Such
signatures may be the manual or facsimile signatures of such officers.
Typographical and other minor errors or defects in any such signature
shall not affect the validity or enforceability of any Security that has
been duly authenticated and delivered by the Trustee.
In case any officer of the Issuer who shall have so signed
any of the Securities shall cease to be such officer before the Security
so signed shall be authenticated and delivered by the Trustee or disposed
of by the Issuer, such Security nevertheless may be authenticated and
delivered or disposed of as though the person who signed such Security had
not ceased to be such officer of the Issuer; and any Security may be so
signed on behalf of the Issuer by such persons as, at the actual date of
the execution of such Security, shall be the proper officers of the
Issuer, although at the date of the execution and delivery of this
Indenture any such person was not such an officer.
Section 2.6 Certificate of Authentication. Only such
Securities as shall bear thereon a certificate of authentication
substantially in the form hereinbefore recited, executed by the Trustee by
the manual signature of one of its authorized officers, shall be entitled
to the benefits of this Indenture or be valid or obligatory for any
purpose. The execution of such certificate by the Trustee upon any
Security executed by the Issuer shall be conclusive evidence that the
Security so authenticated has been duly authenticated and delivered
hereunder and that the Holder is entitled to the benefits of this
Indenture. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the
Issuer, and the Issuer shall deliver such Security to the Trustee for
cancellation as provided in Section 2.10, together with a written
statement (which need not comply with Section 14.5 and need not be
accompanied by an Opinion of Counsel) stating that such Security has never
been issued and sold by the Issuer, for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.
Section 2.7 Denomination of Securities; Payments of
Interest. The Securities of each series shall be issuable in registered
form in denominations established as contemplated by Section 2.3. The
Securities of each series shall be numbered, lettered or otherwise
distinguished in such manner or in accordance with such plan as the
officers of the Issuer executing the same may determine with the approval
of the Trustee, as evidenced by the execution and authentication thereof.
The Securities of each series shall bear interest from the
date, and such interest shall be payable on the Interest Payment Dates,
established as contemplated by Section 2.3.
The Person in whose name any Security of any series is
registered at the close of business on any Record Date applicable to such
series with respect to any Interest Payment Date for such series shall be
entitled to receive the interest, if any, payable on such Interest Payment
Date notwithstanding any transfer or exchange of such Security subsequent
to the Record Date and prior to such Interest Payment Date, except if and
to the extent the Issuer shall default in the payment of the interest due
on such Interest Payment Date, in which case such defaulted interest shall
be paid to the Persons in whose names Outstanding Securities of such
series are registered at the close of business on a subsequent Record Date
(which shall be not less than five Business Days prior to the date of
payment of such defaulted interest) established by notice given by mail by
or on behalf of the Issuer to the Holders of Securities of such series not
less than 15 days preceding such subsequent Record Date. The term "Record
Date", as used with respect to any Interest Payment Date (except a date
for payment of defaulted interest) for the Securities of any series, shall
mean the date specified as such in the terms of the Securities of such
series established as contemplated by Section 2.3.
Subject to the foregoing provisions of this Section, each
Security delivered under this Indenture upon registration of transfer of
or in exchange for or in lieu of any other Security shall carry the rights
to interest accrued and unpaid, and to accrue, which were carried by such
other Security.
Section 2.8 Registration, Transfer and Exchange. The
Issuer will keep, or cause to be kept, at the Corporate Trust Office and
at each other office or agency to be maintained for the purpose as
provided in Section 3.2 for each series of Securities a register or
registers (collectively, the "Security Register") in which, subject to
such reasonable regulations as it may prescribe, it will provide for the
registration of Securities of such series and the registration of transfer
of Securities of such series. The Security Register shall be in written
form in the English language or in any other form capable of being
converted into such form within a reasonable time. At all reasonable
times such register or registers not maintained by the Trustee shall be
open for inspection by the Trustee. Unless and until otherwise determined
by the Issuer pursuant to Section 2.3, the Security Register with respect
to each series of Securities shall be kept solely at the Corporate Trust
Office and, for this purpose, the Trustee shall be designated the
"Security Registrar."
Upon due presentation for registration of transfer of any
Security of any series at any such office or agency, the Issuer shall
execute and the Trustee shall authenticate and make available for delivery
in the name of the transferee or transferees a new Security or Securities
of the same series, maturity date and interest rate in authorized
denominations for a like aggregate principal amount.
At the option of the Holder thereof, Securities of any
series (other than a Global Security, except as set forth below) may be
exchanged for one or more Securities of such series in authorized
denominations for a like aggregate principal amount, upon surrender of
such Securities to be exchanged at the office or agency to be maintained
for such purpose in accordance with Section 3.2 and upon payment, if the
Issuer shall so require, of the charges hereinafter provided. Whenever
any Securities are so surrendered for exchange, the Issuer shall execute,
and the Trustee shall authenticate and make available for delivery, the
Securities which the Holder making the exchange is entitled to receive.
All Securities surrendered upon any exchange or transfer provided for in
this Indenture shall be promptly cancelled by the Trustee and the Trustee
will deliver a certificate of cancellation thereof to the Issuer.
All Securities presented for registration of transfer,
exchange, redemption or payment shall (if so required by the Issuer or the
Trustee) be duly endorsed by, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Issuer and the Trustee
duly executed by, the Holder or his attorney duly authorized in writing.
The Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in
connection with any exchange or registration of transfer of Securities,
other than exchanges pursuant to Sections 2.11, 8.5 and 11.2 not involving
any transfer. No service charge shall be made for any such transaction.
The Issuer shall not be required to (a) issue, exchange or
register a transfer of any Securities of any series for a period of 15
days next preceding the first mailing or publication of notice of
redemption of Securities of such series to be redeemed or (b) exchange or
register the transfer of any Securities selected, called or being called
for redemption, in whole or in part, except, in the case of any Security
to be redeemed in part, the portion thereof not so to be redeemed.
Notwithstanding any other provision of this Section,
unless and until it is exchanged in whole or in part for Securities in
definitive registered form, a Global Security representing all or a
portion of the Securities of a series may not be transferred except as a
whole by the Depository for such Global Security to a nominee of such
Depository or by a nominee of such Depository to such Depository or
another nominee of such Depository or by such Depository or any such
nominee to a successor Depository for such Global Security or a nominee of
such successor Depository.
If at any time a Depository for any Securities of a series
represented by one or more Global Securities notifies the Issuer that it
is unwilling or unable to continue as Depository for such Securities or if
at any time any such Depository shall no longer be eligible as a
Depository, the Issuer shall appoint a successor Depository with respect
to the Securities held by such Depository. If a successor Depository is
not appointed by the Issuer within 90 days after the Issuer receives such
notice or becomes aware of such ineligibility, the Securities of such
series shall no longer be represented by one or more Global Securities
held by such Depository, and the Issuer shall execute, and the Trustee,
upon receipt of an Issuer Order for the authentication and delivery of
definitive Securities of such series, shall authenticate and make
available for delivery Securities of such series in definitive registered
form without coupons, in any authorized denominations and in an aggregate
principal amount equal to the principal amount of the Global Security or
Securities held by such Depository in exchange for such Global Security or
Securities.
The Issuer may at any time and in its sole discretion
determine that the Securities of a particular series shall no longer be
represented by a Global Security or Securities. In such event, the Issuer
shall execute, and the Trustee, upon receipt of an Issuer Order for the
authentication and delivery of definitive Securities of such series, shall
authenticate and deliver, Securities of such series in definitive
registered form in any authorized denominations and in an aggregate
principal amount equal to the principal amount of the Global Security or
Securities representing Securities of such series in exchange for such
Global Security or Securities.
If so specified by the Issuer pursuant to Section 2.3 with
respect to Securities of a particular series represented by a Global
Security, the Depository for such Global Security may surrender such
Global Security in exchange in whole or in part for Securities of such
series in definitive registered form on such terms as are acceptable to
the Issuer and such Depository. Thereupon, the Issuer shall execute, and
the Trustee shall authenticate and make available for delivery:
(i) to each Person specified by such Depository
a new Security or Securities of such series, in any
authorized denominations requested by such Person, in an
aggregate principal amount equal to, and in exchange for,
such Person's beneficial interest in the Global Security;
and
(ii) to such Depository a new Global Security in
a denomination equal to the difference between the
principal amount of the surrendered Global Security and
the aggregate principal amount of Securities authenticated
and delivered pursuant to clause (i) above.
Upon the exchange of any Global Security for Securities in
definitive registered form in authorized denominations, such Global
Security shall be cancelled by the Trustee or an agent of the Issuer or
the Trustee. Securities in definitive registered form without coupons
issued in exchange for a Global Security pursuant to this Section shall be
registered in such names and in such authorized denominations as the
Depository for such Global Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee
or an agent of the Issuer or the Trustee. The Trustee or such agent shall
deliver such Securities to or as directed by the Persons in whose names
such Securities are so registered.
All Securities issued upon any registration of transfer or
exchange of Securities shall be valid obligations of the Issuer,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such registration of
transfer or exchange.
Section 2.9 Mutilated, Defaced, Destroyed, Lost and
Stolen Securities. In case any temporary or definitive Security shall
become mutilated, defaced or be destroyed, lost or stolen, the Issuer in
its discretion may execute, and upon receipt of an Issuer Order, the
Trustee shall authenticate and make available for delivery a new Security
of the same series, maturity date and interest rate, bearing a number or
other distinguishing symbol not contemporaneously outstanding, in exchange
and substitution for the mutilated or defaced Security, or in lieu of and
in substitution for the Security so destroyed, lost or stolen. In every
case the applicant for a substitute Security shall furnish to the Issuer
and to the Trustee or any agent of the Issuer or the Trustee such security
or indemnity as may be required by them to indemnify and defend and to
save each of them and any agent of either of them harmless and, in every
case of destruction, loss or theft, evidence to their satisfaction of the
destruction, loss or theft of such Security and of the ownership thereof
and, in the case of mutilation or defacement, shall surrender the Security
to the Trustee or such agent.
Upon the issuance of any substitute Security the Issuer
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee or its agent)
connected therewith. In case any Security which has matured or is about
to mature or has been called for redemption in full shall become mutilated
or defaced or be destroyed, lost or stolen, the Issuer may, instead of
issuing a substitute Security, pay or authorize the payment of the same
(without surrender thereof except in the case of a mutilated or defaced
Security), if the applicant for such payment shall furnish to the Issuer
and to the Trustee or any agent of the Issuer or the Trustee such security
or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, evidence to their
satisfaction of the destruction, loss or theft of such Security and of the
ownership thereof.
Every substitute Security of any series issued pursuant to
the provisions of this Section by virtue of the fact that any such
Security is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Issuer, whether or not the destroyed, lost
or stolen Security shall be at any time enforceable by anyone and shall be
entitled to all the benefits of (but shall be subject to all the
limitations of rights set forth in) this Indenture equally and
proportionately with any and all other Securities of such series duly
authenticated and delivered hereunder. All Securities shall be held and
owned upon the express condition that, to the extent permitted by law, the
foregoing provisions are exclusive with respect to the replacement or
payment of mutilated, defaced, destroyed, lost or stolen Securities and
shall preclude any and all other rights or remedies notwithstanding any
law or statute existing or hereafter enacted to the contrary with respect
to the replacement or payment of negotiable instruments or other
securities without their surrender.
Section 2.10 Cancellation of Securities; Destruction
Thereof. All Securities surrendered for payment, redemption, registration
of transfer or exchange, or for credit against any payment in respect of a
sinking or analogous fund, if surrendered to the Issuer or any agent of
the Issuer or any agent of the Trustee, shall be delivered to the Trustee
or its agent for cancellation or, if surrendered to the Trustee, shall be
cancelled by it; and no Securities shall be issued in lieu thereof except
as expressly permitted by any of the provisions of this Indenture. The
Trustee or its agent shall cancel Securities held by it and deliver a
certificate of cancellation to the Issuer. If the Issuer or its agent
shall acquire any of the Securities, such acquisition shall not operate as
a redemption or satisfaction of the indebtedness represented by such
Securities unless and until the same are delivered to the Trustee or its
agent for cancellation.
Section 2.11 Temporary Securities. Pending the
preparation of definitive Securities for any series, the Issuer may
execute and the Trustee shall authenticate and make available for delivery
temporary Securities for such series (printed, lithographed, typewritten
or otherwise reproduced, in each case in form satisfactory to the
Trustee). Temporary Securities of any series shall be issuable as
registered Securities of any authorized denomination, and substantially in
the form of the definitive Securities of such series but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Issuer with the concurrence of
the Trustee as evidenced by the execution and authentication thereof.
Temporary Securities may contain such references to any provisions of this
Indenture as may be appropriate. Every temporary Security shall be
executed by the Issuer and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as
the definitive Securities. Without unreasonable delay the Issuer shall
execute and shall furnish definitive Securities of such series and
thereupon temporary Securities of such series may be surrendered in
exchange for such definitive Securities in registered form without charge
at each office or agency to be maintained for such purpose in accordance
with Section 3.2 and the Trustee shall authenticate and make available for
delivery in exchange for such temporary Securities of such series an equal
aggregate principal amount of definitive Securities of the same series in
authorized denominations. Until so exchanged, the temporary Securities of
any series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series, unless otherwise established
pursuant to Section 2.3. The provisions of this Section are subject to
any restrictions or limitations on the issue and delivery of temporary
Securities of any series that may be established pursuant to Section 2.3.
Section 2.12 Computation of Interest. Except as
otherwise specified as contemplated by Section 2.3 for Securities of any
series, interest, if any, on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.
ARTICLE THREE
COVENANTS OF THE ISSUER
Section 3.1 Payment of Principal and Interest. The
Issuer covenants and agrees for the benefit of each series of Securities
that it will duly and punctually pay or cause to be paid the principal of,
and interest, if any, on, each of the Securities of such series (together
with any additional amounts payable pursuant to the terms of such
Securities) at the place or places, at the respective times and in the
manner provided in such Securities and in this Indenture. The interest on
Securities (together with any additional amounts payable pursuant to the
terms of such Securities) shall be payable only to or upon the written
order of the Holders thereof and, at the option of the Issuer, may be paid
by wire transfer or by mailing checks for such interest payable to or upon
the written order of such Holders at their last addresses as they appear
on the registry books of the Issuer.
Section 3.2 Offices for Payments, etc. So long as any
Securities are outstanding hereunder, the Issuer will maintain in The City
of New York, State of New York an office or agency where the Securities of
each series may be presented for payment, where the Securities of each
series may be presented for exchange as in this Indenture provided, and
where the Securities of each series may be presented for registration of
transfer as in this Indenture provided.
The Issuer will maintain in The City of New York an office
or agency where notices and demands to or upon the Issuer in respect of
the Securities of any series, or this Indenture may be served.
The Issuer will give to the Trustee prompt written notice
of the location of each such office or agency and of any change of
location thereof. In case the Issuer shall fail to maintain any office or
agency required by this Section to be located in The City of New York,
State of New York or shall fail to give such notice of the location or of
any change in the location of any of the above offices or agencies,
presentations and demands may be made and notices may be served at the
Corporate Trust Office of the Trustee, and, in such event, the Trustee
shall act as the Issuer's agent to receive all such presentations,
surrenders, notices and demands.
The Issuer may from time to time designate one or more
additional offices or agencies where the Securities of any series may be
presented for payment, where the Securities of such series may be
presented for exchange as in this Indenture provided, where the Securities
of such series may be presented for registration of transfer as in this
Indenture provided and the Issuer may from time to time rescind any such
designation; provided, however, that no such designation or rescission
shall in any manner relieve the Issuer of its obligation to maintain any
office or agency provided for in this Section. The Issuer will give to
the Trustee prompt written notice of any such designation or rescission
thereof and of change in the location of any such other office or agency.
Section 3.3 Appointment to Fill a Vacancy in Office of
Trustee. The Issuer, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 6.10, a
Trustee, so that there shall at all times be a Trustee with respect to
each series of Securities hereunder.
Section 3.4 Paying Agents. Whenever the Issuer shall
appoint a paying agent other than the Trustee with respect to the
Securities of any series, it will cause such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with
the Trustee, subject to the provisions of this Section:
(a) that such paying agent will hold all sums
received by it as such agent for the payment of the
principal of or interest, if any, on the Securities of
such series (whether such sums have been paid to it by the
Issuer or by any other obligor on the Securities of such
series) in trust for the benefit of the Holders of the
Securities of such series entitled thereto or of the
Trustee until such sums shall be paid to such Holders or
otherwise disposed of as herein provided;
(b) that such paying agent will give the Trustee
notice of any failure by the Issuer (or by any other
obligor on the Securities of such series) to make any
payment of the principal of or interest on the Securities
of such series when the same shall be due and payable; and
(c) at any time during the continuance of any
such failure, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by
such paying agent.
The Issuer will, on or prior to each due date of the
principal of or interest, if any, on the Securities of any series, deposit
with the paying agent a sum sufficient to pay such principal or interest
so becoming due, such sum to be held in trust for the benefit of the
Holders of the Securities of such series entitled to such principal or
interest, and (unless such paying agent is the Trustee) the Issuer will
promptly notify the Trustee of any failure to take such action.
If the Issuer shall act as its own paying agent with
respect to the Securities of any series, it will, on or before each due
date of the principal of or interest, if any, on the Securities of such
series, set aside, segregate and hold in trust for the benefit of the
Holders of the Securities of such series a sum sufficient to pay such
principal or interest, if any, so becoming due until such sums shall be
paid to such Holders or otherwise disposed of as herein provided. The
Issuer will promptly notify the Trustee of any failure to take such
action.
Anything in this section to the contrary notwithstanding,
but subject to Section 10.1, the Issuer may at any time, for the purpose
of obtaining a satisfaction and discharge with respect to one or more or
all series of Securities hereunder, or for any other reason, pay or cause
to be paid to the Trustee all sums held in trust for any such series by
the Issuer or any paying agent hereunder, as required by this Section,
such sums to be held by the Trustee upon the trusts herein contained, and,
upon such payment by any paying agent to the Trustee, such paying agent
shall be released from all further liability with respect to such money.
Anything in this Section to the contrary notwithstanding,
the agreement to hold sums in trust as provided in this Section is subject
to the provisions of Sections 10.3 and 10.4.
Section 3.5 Limitation on Dividends; Transactions with
Affiliates. (a) If Securities are issued to a Consumer's Trust or a
trustee of such trust in connection with the issuance of Trust Securities
by such Consumers Trust and (i) there shall have occurred any event that
would constitute an Event of Default or (ii) the Company shall be in
default with respect to its payment or any obligations under the Preferred
Securities Guarantee or Common Securities Guarantee relating to such Trust
Securities, then (x) the Company shall not declare or pay any dividend on
, make any distributions with respect to, or redeem, purchase or make a
liquidation payment with respect to, any of its capital stock, (y) the
Company shall not make any payment of interest or principal or premium on,
or repay, repurchase or redeem any debt securities (including guarantees)
issued by the Company which rank pari passu with or junior to such
Securities and (z) the Company shall not make guarantee payments with
respect to the foregoing (other than pursuant to the Preferred Securities
Guarantee).
(b) If Securities are issued to a Consumers Trust or
a trustee of such trust in connection with the issuance of Trust
Securities by such Consumers Trust and the Company shall have given notice
of its election to defer payments of interest on such Securities by
extending the interest payment period as provided in any indenture
supplemental hereto and such period, or any extension thereof, shall be
continuing, then (i) the Company shall not declare or pay any dividend, or
make any distributions with respect to, or redeem, purchase or make a
liquidation payment with respect to, any of its capital stock, (ii) the
Company shall not make any payment of interest or principal or premium on,
or repay, repurchase or redeem any debt securities (including guarantees)
issued by the Company which rank pari passu with or junior to such
Securities and (iii) the Company shall not make any guarantee payments
with respect to the foregoing (other than pursuant to the Preferred
Securities Guarantee), provided, however, the Company may declare and pay
a stock dividend where the dividend stock is the same stock as that on
which the dividend is being paid.
Section 3.6 Covenants as to Consumers Trust. In the
event Securities are issued to a Consumers Trust or a trustee of such
trust, in connection with the issuance of Trust Securities by such trust,
for so long as such Trust Securities remain outstanding, the Company will
(i) maintain 100% direct or indirect ownership of the Common Securities of
such trust; provided, however, that any permitted successor of the Company
under the Indenture may succeed to the Company's ownership of the Common
Securities, (ii) not cause, as sponsor of such trust, or permit, as holder
of Common Securities of such trust, the dissolution, winding-up or
termination of such trust, except in connection with a distribution of
Securities as provided in the Declaration and in connection with certain
mergers, consolidations or amalgamations permitted by the Declaration and
(iii) use its reasonable efforts to cause such trust (a) to remain a
business trust, except in connection with a distribution of Securities,
the redemption of all of the Trust Securities of such Consumers Trust or
certain mergers, consolidations or amalgamations, each as permitted by the
Declaration of such Consumers Trust, and (b) to otherwise continue to be
classified for United States federal income tax purposes as a grantor
trust.
ARTICLE FOUR
SECURITYHOLDERS LISTS AND REPORTS BY THE
ISSUER AND THE TRUSTEE
Section 4.1 Issuer to Furnish Trustee Names and Addresses
of Securityholders. The Issuer and any other obligor on the Securities
covenant and agree that they will furnish or cause to be furnished to the
Trustee a list in such form as the Trustee may reasonably require of the
names and addresses of the Holders of the Securities of each series:
(a) semi-annually and not more than 15 days
after each Record Date for the payment of interest on such
Securities, as of such Record Date and on dates to be
determined pursuant to Section 2.3 for non-interest
bearing Securities, in each year; and
(b) at such other times as the Trustee may
request in writing, within 30 days after receipt by the
Issuer of any such request, as of a date not more than 15
days prior to the time such information is furnished;
provided that if and so long as the Trustee shall be the Security
Registrar for such series such list shall not be required to be furnished.
Section 4.2 Preservation and Disclosure of
Securityholders Lists. (a) The Trustee shall preserve, in as current a
form as is reasonably practicable, all information as to the names and
addresses of the Holders of each series of Securities (i) contained in the
most recent list furnished to it as provided in Section 4.1, (ii) received
by it in the capacity of Security Registrar for such series, if so acting,
and (iii) filed with it within the two preceding years pursuant to Section
4.4(c)(ii). The Trustee may destroy any list furnished to it as provided
in Section 4.1 upon receipt of a new list so furnished.
(b) In case three or more Holders of Securities
(hereinafter referred to as "applicants") apply in writing to the Trustee
and furnish to the Trustee reasonable proof that each such applicant has
owned a Security for a period of at least six months preceding the date of
such application, and such application states that the applicants desire
to communicate with other Holders of Securities of a particular series (in
which case the applicants must all hold Securities of such series) or with
Holders of all Securities with respect to their rights under this
Indenture or under such Securities and such application is accompanied by
a copy of the form of proxy or other communication which such applicants
propose to transmit, then the Trustee shall, within five Business Days
after the receipt of such application, at its election, either
(i) afford to such applicants access to the
information preserved at the time by the Trustee in
accordance with the provisions of subsection (a) of this
Section; or
(ii) inform such applicants as to the
approximate number of Holders of Securities of such series
or of all Securities, as the case may be, whose names and
addresses appear in the information preserved at the time
by the Trustee, in accordance with the provisions of such
subsection (a) and as to the approximate cost of mailing
to such Holders the form of proxy or other communication,
if any, specified in such application.
If the Trustee shall elect not to afford to such
applicants access to such information, the Trustee shall, upon the written
request of such applicants, mail to each Holder of such series or all
Holders of Securities, whose name and address appears in the information
preserved at the time by the Trustee in accordance with the provisions of
such subsection (a) a copy of the form of proxy or other communication
which is specified in such request, with reasonable promptness after a
tender to the Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless
within five days after such tender the Trustee shall mail to such
applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the
opinion of the Trustee, such mailing would be contrary to the best
interests of the Holders of Securities of such series or of all
Securities, as the case may be, or would be in violation of applicable
law. Such written statement shall specify the basis of such opinion. If
the Commission, after opportunity for a hearing upon the objections
specified in the written statement so filed, shall enter an order refusing
to sustain any of such objections or if, after the entry of an order
sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for hearing, that all the objections so
sustained have been met, and shall enter an order so declaring, the
Trustee shall mail copies of such material to all such Holders with
reasonable promptness after the entry of such order and the renewal of
such tender; otherwise the Trustee shall be relieved of any obligation or
duty to such applicants respecting their application.
(c) Each and every Holder of Securities by receiving and
holding the same, agrees with the Issuer and the Trustee that neither the
Issuer nor the Trustee nor any agent of the Issuer or the Trustee shall be
held accountable by reason of the disclosure of any such information as to
the names and addresses of the Holders of Securities in accordance with
the provisions of subsection (b) of this Section, regardless of the source
from which such information was derived, and that the Trustee shall not be
held accountable by reason of mailing any material pursuant to a request
made under such subsection (b).
Section 4.3 Reports by the Issuer. The Issuer covenants:
(a) to file with the Trustee, within 15 days
after the Issuer is required to file the same with the
Commission, copies of the annual reports and of the
information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission
may from time to time by rules and regulations prescribe)
which the Issuer may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934; or if the Issuer is not
required to file information, documents or reports
pursuant to either of such Sections, then to file with the
Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commis-
sion, such of the supplementary and periodic information,
documents, and reports which may be required pursuant to
Section 13 of the Securities Exchange Act of 1934 in
respect of a debt security listed and registered on a
national securities exchange as may be prescribed from
time to time in such rules and regulations;
(b) to file with the Trustee and the Commission,
in accordance with rules and regulations prescribed from
time to time by the Commission, such additional
information, documents and reports with respect to
compliance by the Issuer with the conditions and covenants
provided for in this Indenture as may be required from
time to time by such rules and regulations;
(c) to transmit by mail to the Holders of
Securities within 30 days after the filing thereof with
the Trustee, in the manner and to the extent provided in
Section 4.4(c), such summaries of any information,
documents and reports required to be filed by the Issuer
pursuant to subsections (a) and (b) of this Section as may
be required to be transmitted to such Holders by rules and
regulations prescribed from time to time by the Commis-
sion; and
(d) to furnish to the Trustee, not less often than
annually, a brief certificate from the principal executive
officer, principal financial officer or principal accounting
officer as to his or her knowledge of the Issuer's compliance with
all conditions and covenants under this Indenture (such compliance
to be determined without regard to any period of grace or
requirement of notice provided under this Indenture).
Section 4.4 Reports by the Trustee. (a) Annually, not
later than 60 days after May 15 of each year, the Trustee shall transmit
to the Holders and the Commission a report with respect to events
described in section 313(a) of the Trust Indenture Act, in such manner and to
the extent revised thereunder.
(b) The Trustee shall transmit to the Holders of each
series, as provided in subsection (c) of this Section, a brief report with
respect to the character and amount of any advances (and if the Trustee
elects so to state, the circumstances surrounding the making thereof) made
by the Trustee, as such, since the date of the last report transmitted
pursuant to the provisions of subsection (a) of this Section (or if no
such report has yet been so transmitted, since the date of this Indenture)
for the reimbursement of which it claims or may claim a lien or charge,
prior to that of the Securities of such series, on property or funds held
or collected by it as Trustee and which it has not previously reported
pursuant to this subsection (b), except that the Trustee shall not be
required (but may elect) to report such advances if such advances
remaining unpaid at any time aggregate 10% or less of the principal amount
of the Securities of such series outstanding at such time, such report to
be transmitted within 90 days after such time.
(c) Reports pursuant to this Section shall be transmitted
by mail to all Holders of Securities, as the names and addresses of such
Holders appear upon the Security Register;
(d) A copy of each such report shall, at the time of such
transmission to the Holders, be furnished to the Issuer and be filed by
the Trustee with each stock exchange, if any, upon which the Securities of
any series are listed and also with the Commission. The Issuer agrees to
notify the Trustee when and as the Securities of such series become
admitted to trading on any national securities exchange.
ARTICLE FIVE
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
ON EVENT OF DEFAULT
Section 5.1 Event of Default Defined; Acceleration of
Maturity; Waiver of Default. "Event of Default" with respect to
Securities of any series, wherever used herein, means each of the
following events which shall have occurred and be continuing (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):
(a) default in the payment of any installment of
interest upon any of the Securities of such series as and
when the same shall become due and payable, (whether or
not payment is prohibited by the provisions of Article 12
hereof), and continuance of such default for a period of
30 days; provided, however, that if the Issuer is
permitted by the terms of the Securities of such series to
defer the payment in question, the date on which such
payment is due and payable shall be the date on which the
Issuer is required to make payment following such
deferral, if such deferral has been elected pursuant to
the terms of the Securities; or
(b) default in the payment of all or any part of
the principal of the Securities of such series as and when
the same shall become due and payable (whether or not
payment is prohibited by the provisions of Article 12
hereof), whether at Maturity, upon purchase by the Issuer
at the option of the Holder, upon any redemption, by
declaration or otherwise; or
(c) default in the deposit or payment of any
sinking fund or analogous payment (whether or not payment
is prohibited by the provisions of Article 12 hereof) for
the benefit of the Securities of such series as and when
the same shall become due and payable; or
(d) failure on the part of the Issuer duly to
observe or perform any other of the covenants or
agreements on the part of the Issuer in the Securities of
such series or in this Indenture contained (other than a
covenant or agreement expressly included herein solely for
the benefit of Securities of other series) for a period of
60 days after the date on which written notice specifying
such failure, stating that such notice is a "Notice of
Default" hereunder and demanding that the Issuer remedy
the same, shall have been given by registered or certified
mail, return receipt requested, to the Issuer by the
Trustee, or to the Issuer and the Trustee by the Holders
of not less than 25% in aggregate principal amount of the
Outstanding Securities of all series affected thereby; or
(e) a court having jurisdiction in the premises
shall enter a decree or order for relief in respect of the
Issuer in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or
hereafter in effect, adjudging the Issuer a bankrupt or
insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or
composition of or in respect of the Issuer under any
applicable law, or appointing a receiver, liquidator,
assignee, custodian, trustee or sequestrator (or similar
official) of the Issuer or for any substantial part of the
property of the Issuer, or ordering the winding up or
liquidation of the affairs of the Issuer, and such decree
or order shall remain unstayed and in effect for a period
of 60 consecutive days; or
(f) the Issuer shall commence a voluntary case
or proceeding under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect or any
other case or proceeding to be adjudicated a bankrupt or
insolvent, or consent to the entry of a decree or order
for relief in an involuntary case under any such law, or
to the commencement of any bankruptcy or insolvency case
or proceeding against it, or the filing by it of a
petition or answer or consent seeking reorganization or
relief under any applicable law, or consent to the filing
of such petition or to the appointment or taking
possession by a receiver, liquidator, assignee, custodian,
trustee or sequestrator (or similar official) of the
Issuer or for any substantial part of the property of the
Issuer, or make any general assignment for the benefit of
creditors, or the notice by it in writing of its inability
to pay its debts generally as they become due, or the
taking of any corporate action by the Issuer in
furtherance of any such action; or
(i) in the event Securities are issued to a Consumers
Trust or the trustee of such trust of the Company in connection
with the issuance of Trust Securities by such trust, such trust
shall have voluntarily or involuntarily dissolved, wound-up its
business or otherwise terminated its existence except in
connection with (i) the distribution of Securities to holders of
Trust Securities in liquidation of their interests in such trust,
(ii) the redemption of all outstanding Trust Securities of such
trust, and (iii) mergers, consolidations or amalgamations, each as
permitted by the Declaration of such trust;
then, unless the principal of all the Securities shall have already become
due and payable, either the Trustee or the Holders of not less than 25% in
aggregate principal amount of all the Securities of such series then
Outstanding, by notice in writing to the Issuer (and to the Trustee if
given by such Holders), may declare the entire principal of all the
Securities of such series then Outstanding and interest accrued thereon,
if any, to be due and payable immediately, and upon any such declaration
the same shall become immediately due and payable.
The foregoing paragraph, however, is subject to the
condition that if, at any time after the principal of the Securities of
one or more series shall have been so declared due and payable, and before
any judgment or decree for the payment of the moneys due shall have been
obtained or entered as hereinafter provided, the Issuer shall pay or shall
deposit with the Trustee a sum sufficient to pay all matured installments
of interest upon all the Securities of such series and the principal of
all Securities of such series which shall have become due otherwise than
by acceleration (with interest upon such principal and, to the extent that
payment of such interest is enforceable under applicable law, on overdue
installments of interest at the same rate as the rate of interest
specified in the Securities of such series, to the date of such payment or
deposit) and such amount as shall be sufficient to cover reasonable
compensation to the Trustee, its agents, attorneys and counsel, and all
other expenses and liabilities incurred, and all advances made, by the
Trustee except as a result of negligence or bad faith, and if any and all
Events of Default under this Indenture with respect to such series, other
than the non-payment of the principal of Securities of such series which
shall have become due by acceleration, shall have been cured, waived or
otherwise remedied as provided herein - then, and in every such case, the
Holders of a majority in aggregate principal amount of all the Securities
of such affected series then Outstanding by written notice to the Issuer
and to the Trustee, may direct the Trustee to waive all defaults with
respect to such series and rescind and annul such declaration and its
consequences, but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right
consequent thereon.
Section 5.2 Collection of Indebtedness by Trustee;
Trustee May Prove Debt. The Issuer covenants that (a) in case default
shall be made in the payment of any installment of interest on any of the
Securities of any series when such interest shall have become due and
payable, and such default shall have continued for a period of 30 days, or
(b) in case default shall be made in the payment of all or any part of the
principal of any of the Securities of any series when the same shall have
become due and payable, whether at Maturity, upon redemption, by
declaration or otherwise -- then, upon demand of the Trustee, the Issuer
will pay to the Trustee for the benefit of the Holders of the Securities
of such series the whole amount that then shall have become due and
payable on all Securities of such series for principal or interest, as the
case may be (with interest to the date of such payment upon the overdue
principal and, to the extent that payment of such interest is enforceable
under applicable law, on overdue installments of interest at the same rate
as the rate of interest specified in the Securities of such series); and
in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including reasonable compensation to
the Trustee, its agents, attorneys and counsel, and any expenses and
liabilities incurred by such parties, and all advances made by the Trustee
except as a result of its negligence or bad faith.
Until such demand is made by the Trustee, the Issuer may
pay the principal of and interest on the Securities of such series to the
Holders, whether or not the Securities of such series be overdue.
In case the Issuer shall fail forthwith to pay such
amounts upon such demand, the Trustee, in its own name and as trustee of
an express trust, shall be entitled and empowered to institute any action
or proceedings at law or in equity for the collection of the sums so due
and unpaid, and may prosecute any such action or proceedings to judgment
or final decree, and may enforce any such judgment or final decree against
the Issuer or other obligor upon the Securities of such series and collect
in the manner provided by law out of the property of the Issuer or other
obligor upon the Securities of such series, wherever situated the moneys
adjudged or decreed to be payable.
In case there shall be pending proceedings relative to the
Issuer or any other obligor upon the Securities of any series under Title
11 of the United States Code or any other applicable Federal or state
bankruptcy, insolvency or other similar law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Issuer or its property or such other obligor, or in case
of any other comparable judicial proceedings relative to the Issuer or
such other obligor, or to the creditors or property of the Issuer or such
other obligor, the Trustee, irrespective of whether the principal of the
Securities of any series shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand pursuant to the provisions of this
Section, shall be entitled and empowered, by intervention in such
proceedings or otherwise:
(a) to file and prove a claim or claims for the
whole amount of the principal and interest owing and
unpaid in respect of the Securities of each series, and to
file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee
(including any claim for reasonable compensation to the
Trustee and its agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred,
and all advances made, by the Trustee, except as a result
of negligence or bad faith) and of the Securityholders
allowed in any judicial proceedings relative to the Issuer
or such other obligor, or to the creditors or property of
the Issuer or such other obligor;
(b) unless prohibited by applicable law and
regulations, to vote on behalf of the Holders of the
Securities of each series in any election of a trustee or
a standby trustee in arrangement, reorganization,
liquidation or other bankruptcy or insolvency proceedings
or person performing similar functions in comparable
proceedings; and
(c) to collect and receive any moneys or other
property payable or deliverable on any such claims, and to
distribute all amounts received with respect to the claims
of the Securityholders and of the Trustee on their behalf;
and any trustee, receiver, liquidator, custodian or other
similar official is hereby authorized by each of the
Securityholders to make payments to the Trustee, and, in
the event that the Trustee shall consent to the making of
payments directly to the Securityholders, to pay to the
Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Trustee, and its agents,
attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the
Trustee except, in each case, as a result of negligence or
bad faith.
Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or vote for or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment
or composition affecting the Securities of any series or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding except, as aforesaid, to vote
for the election of a trustee in bankruptcy or similar person.
All rights of action and of asserting claims under this
Indenture, or under any of the Securities of any series may be prosecuted
and enforced by the Trustee without the possession of any of the
Securities of such series or the production thereof at any trial or other
proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of
an express trust, and any recovery of judgment, subject to the payment of
the expenses, disbursements and compensation of the Trustee and its
agents, attorneys and counsel, shall be for the ratable benefit of the
Holders of the Securities in respect of which such action was taken.
In any proceedings brought by the Trustee (and also any
proceedings involving the interpretation of any provision of this
Indenture to which the Trustee shall be a party), the Trustee shall be
held to represent all the Holders of the Securities in respect to which
action was taken, and it shall not be necessary to make any Holders of
such Securities parties to any such proceedings.
Section 5.3 Application of Proceeds. Any moneys
collected by the Trustee pursuant to this Article in respect of the
Securities of any series shall be applied in the following order at the
date or dates fixed by the Trustee and, in case of the distribution of
such moneys on account of principal or interest, upon presentation of the
several Securities in respect of which moneys have been collected and
stamping (or otherwise noting) thereon the payment, and upon surrender
thereof if fully paid, or issuing Securities of the same series in reduced
principal amounts in exchange for the presented Securities if only
partially paid, or upon surrender thereof if fully paid:
FIRST: To the payment of costs and expenses of
collection applicable to such series, including reasonable
compensation to the Trustee and its agents, attorneys and
counsel and of all expenses and liabilities incurred, and
all advances made, by the Trustee except as a result of
negligence or bad faith;
SECOND: In case the principal of the Securities
of such series in respect of which moneys have been
collected shall not have become and be then due and
payable, to the payment of interest, if any, on the
Securities of such series in default in the order of the
maturity of the installments of such interest, with
interest (to the extent that such interest has been
collected by the Trustee and to the extent permitted by
law) upon the overdue installments of interest at the same
rate as the rate of interest specified in such Securities,
such payments to be made ratably to the Persons entitled
thereto, without discrimination or preference;
THIRD: In case the principal of the Securities
of such series in respect of which moneys have been
collected shall have become and be then due and payable,
to the payment of the whole amount then owing and unpaid
upon all the Securities of such series for principal and
interest, if any, with interest upon the overdue
principal, and (to the extent that such interest has been
collected by the Trustee and to the extent permitted by
law) upon overdue installments of interest at the same
rate as the rate of interest specified in the Securities
of such series; and in case such moneys shall be
insufficient to pay in full the whole amount so due and
unpaid upon the Securities of such series, then to the
payment of such principal and interest, without preference
or priority of principal over interest, or of interest
over principal, or of any installment of interest over any
other installment of interest, or of any Security of such
series over any other Security of such series, ratably to
the aggregate of such principal and accrued and unpaid
interest; and
FOURTH: To the payment of the remainder, if any,
to the Issuer or any other Person lawfully entitled
thereto.
Section 5.4 Suits for Enforcement. In case an Event of
Default has occurred, has not been waived and is continuing, the Trustee
may in its discretion proceed to protect and enforce the rights vested in
it by this Indenture by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any of such
rights, either at law or in equity or in bankruptcy or otherwise, whether
for the specific enforcement of any covenant or agreement contained in
this Indenture or in aid of the exercise of any power granted in this
Indenture or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.
Section 5.5 Restoration of Rights on Abandonment of
Proceedings. In case the Trustee or any Holder shall have proceeded to
enforce any right under this Indenture and such proceedings shall have
been discontinued or abandoned for any reason, or shall have been
determined adversely to the Trustee or to such Holder, then, and in every
such case, the Issuer, the Trustee and the Holders shall be restored
respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Issuer, the Trustee and the Holders
shall continue as though no such proceedings had been taken.
Section 5.6 Limitations on Suits by Securityholders. No
Holder of any Security of any series shall have any right by virtue or by
availing of any provision of this Indenture to institute any action or
proceeding at law or in equity or in bankruptcy or otherwise upon or under
or with respect to this Indenture, or for the appointment of a trustee,
receiver, liquidator, custodian or other similar official or for any other
remedy hereunder, unless such Xxxxxx previously shall have given to the
Trustee written notice of default and of the continuance thereof, as
hereinbefore provided, and unless also the Holders of not less than 25% in
aggregate principal amount of the Securities of each affected series then
Outstanding (determined as provided herein and voting as one class) shall
have made written request upon the Trustee to institute such action or
proceedings in its own name as trustee hereunder and shall have offered to
the Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby and the Trustee
for 60 days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such action or proceeding and
no direction inconsistent with such written request shall have been given
to the Trustee pursuant to Section 5.9; it being understood and intended,
and being expressly covenanted by the taker and Holder of every Security
with every other taker and Holder and the Trustee, that no one or more
Holders of Securities of any series shall have any right in any manner
whatever by virtue or by availing of any provision of this Indenture to
affect, disturb or prejudice the rights of any other Holder of Securities
or to obtain or seek to obtain priority over or preference to any other
such Holder or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of
all Holders of Securities of the affected series. For the protection and
enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.
Section 5.7 Unconditional Right of Securityholders to
Receive Principal and Interest and to Institute Certain Suits. Not-
withstanding any other provision in this Indenture and any provision of
any Security, the right of any Holder of any Security to receive payment
of the principal of and interest, if any, on such Security on or after the
respective due dates expressed in such Security or any date fixed for
redemption, or to institute suit for the enforcement of any such payment
on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.
Section 5.8 Powers and Remedies Cumulative; Delay or
Omission Not Waiver of Default. Except as provided in Section 5.6, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders of Securities is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law,
be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.
No delay or omission of the Trustee or of any Holder of
Securities to exercise any right or power accruing upon any Event of
Default occurring and continuing as aforesaid shall impair any such right
or power or shall be construed to be a waiver of any such Event of Default
or an acquiescence therein; and, subject to Section 5.6, every right and
power given by this Indenture or by law to the Trustee or to the Holders
of Securities may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Holders of Securities, as the
case may be.
Section 5.9 Control by Holders of Securities. The
Holders of a majority in aggregate principal amount of the Securities of
each series affected at the time Outstanding (determined as provided
herein and voting as one class) shall have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee
with respect to the Securities of such affected series by this Indenture;
provided that such direction shall not be otherwise than in accordance
with law and the provisions of this Indenture; and provided further that
(subject to the provisions of Section 6.1) the Trustee shall have the
right to decline to follow any such direction if the Trustee, being
advised by counsel of its choice, shall determine that the action or
proceeding so directed may not lawfully be taken or if the Trustee in good
faith by its board of directors, its executive committee or a trust
committee of directors or Responsible Officers of the Trustee shall
determine that the action or proceedings so directed would involve the
Trustee in personal liability or that the actions or forbearances
specified in or pursuant to such direction would be unduly prejudicial to
the interests of Holders of the Securities of all affected series not
joining in the giving of said direction, it being understood that (subject
to Section 6.1) the Trustee shall have no duty to ascertain whether or not
such actions or forbearances are unduly prejudicial to such Holders.
Nothing in this Indenture shall impair the right of the
Trustee in its discretion to take any action deemed proper by the Trustee
and which is not inconsistent with such direction or directions by
Securityholders.
Section 5.10 Waiver of Past Defaults. Prior to the
declaration of acceleration of the Maturity of any Securities as provided
in Section 5.1, the Holders of a majority in aggregate principal amount of
the Securities of all series at the time Outstanding with respect to which
a default or an Event of Default shall have occurred and be continuing
(determined as provided herein and voting as one class) may on behalf of
the Holders of all such affected Securities waive any past default or
Event of Default described in Section 5.1 and its consequences, except a
default or an Event of Default (i) in the payment of the principal of or
interest, if any, on any Security of such series, or (ii) in respect of a
covenant or provision hereof or of any Security which cannot be modified
or amended without the consent of the Holder of each Security affected.
In the case of any such waiver, the Issuer, the Trustee and the Holders of
all such affected Securities shall be restored to their former positions
and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.
Upon any such waiver, such default shall cease to exist
and be deemed to have been cured and not to have occurred, and any Event
of Default arising therefrom shall be deemed to have been cured, and not
to have occurred for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.
Section 5.11 Trustee to Give Notice of Default, But May
Withhold in Certain Circumstances. The Trustee shall, within 90 days
after the occurrence of a default with respect to the Securities of any
series, give notice of all defaults with respect to such series known to
the Trustee to all Holders of Securities of such series in the manner and
to the extent provided in Section 4.4(c), unless in each case such
defaults shall have been cured before the mailing or publication of such
notice (the term "default" for the purpose of this Article being hereby
defined to mean any event or condition which is, or with notice or lapse
of time or both would become, an Event of Default); provided that, except
in the case of default in the payment of the principal of or the interest,
if any, on any of the Securities of such series, or in the payment of any
sinking fund installment or analogous payment on such series, the Trustee
shall be protected in withholding such notice if and so long as the board
of directors, the executive committee or a trust committee of directors or
trustees and/or Responsible Officers of the Trustee in good faith
determines that the withholding of such notice is in the interests of the
Securityholders of such series.
Section 5.12 Right of Court to Require Filing of
Undertaking to Pay Costs. All parties to this Indenture agree, and each
Holder of any Security by his or her acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking
to pay the costs of such suit, and that such court may in its discretion
assess reasonable costs, including reasonable attorneys' fees, against any
party litigant in such suit, having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of
Securityholders of any series holding in the aggregate more than 10% in
aggregate principal amount of the Securities of such series, or, in the
case of any suit relating to or arising under clause (d) or (g) of section
5.1 (if the suit relates to the Securities of more than one but less than
all series), 10% in aggregate principal amount of the Securities then
Outstanding and affected thereby, or, in the case of any suit relating to
or arising under clause (d) or (g) (if the suit relates to all the
Securities then Outstanding), 10% in aggregate principal amount of all
Securities then Outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of or
the interest on any Security on or after the due date expressed in such
Security or any date fixed for redemption.
Section 5.13 Waiver of Stay or Extension Laws. The
Issuer covenants (to the extent that it may lawfully do so) that it will
not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Issuer (to the
extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law
had been enacted.
ARTICLE SIX
CONCERNING THE TRUSTEE
Section 6.1 Duties and Responsibilities of the Trustee;
During Default; Prior to Default. The Trustee, prior to the occurrence of
an Event of Default with respect to the Securities of a particular series
and after the curing or waiving of all Events of Default which may have
occurred with respect to such series, undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture. In
case an Event of Default with respect to the Securities of a particular
series has occurred (which has not been cured or waived), the Trustee
shall exercise with respect to such series such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill
in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.
No provision of this Indenture shall be construed to
relieve the Trustee from liability for its own negligent action, its own
negligent failure to act or its own wilful misconduct, except that
(a) prior to the occurrence of an Event of
Default with respect to the Securities of any series and
after the curing or waiving of all such Events of Default
which may have occurred with respect to such series:
(i) the duties and obligations
of the Trustee with respect to the
Securities of such series shall be deter-
mined solely by the express provisions of
this Indenture, and the Trustee shall not
be liable except for the performance of
such duties and obligations as are
specifically set forth in this Indenture,
and no implied covenants or obligations
shall be read into this Indenture against
the Trustee; and
(ii) in the absence of bad faith on the
part of the Trustee, the Trustee may conclusively
rely, as to the truth of the statements and the
correctness of the opinions expressed therein,
upon any statements, certificates or opinions
furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case
of any such statements, certificates or opinions
which by any provision hereof are specifically
required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same
to determine whether or not they conform to the
requirements of this Indenture;
(b) the Trustee shall not be liable for any
error of judgment made in good faith by a Responsible
Officer or Responsible Officers of the Trustee, unless it
shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; and
(c) the Trustee shall not be liable with respect
to any action taken or omitted to be taken by it in good
faith in accordance with an appropriate direction of the
Holders pursuant to Section 5.9 relating to the time,
method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Indenture.
None of the provisions contained in this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or in
the exercise of any of its rights or powers, if there shall be reasonable
grounds for believing that the repayment of such funds or adequate
indemnity against such liability is not reasonably assured to it.
Section 6.2 Certain Rights of the Trustee. Subject to
Section 6.1:
(a) the Trustee may rely and shall be protected
in acting or refraining from acting upon any resolution,
Officers' Certificate or other certificate, statement,
instrument, opinion, report, notice, request, consent,
order, bond, debenture, note, security or other paper or
document believed by it to be genuine and to have been
signed or presented by the proper party or parties;
(b) any request, direction, order or demand of
the Issuer mentioned herein shall be sufficiently
evidenced by an Officers' Certificate (unless other
evidence in respect thereof be herein specifically
prescribed); and any resolution of the Board of Directors
may be evidenced to the Trustee by a copy thereof
certified by the secretary or an assistant secretary of
the Issuer;
(c) the Trustee may consult with counsel of its
choice and any advice or any Opinion of Counsel shall be
full and complete authorization and protection in respect
of any action taken, suffered or omitted to be taken by it
hereunder in good faith and in accordance with such advice
or Opinion of Counsel;
(d) the Trustee shall be under no obligation to
exercise any of the trusts or powers vested in it by this
Indenture at the request, order or direction of any of the
Holders pursuant to the provisions of this Indenture,
unless such Holders shall have offered to the Trustee
reasonable indemnity against the costs, expenses and
liabilities which might be incurred therein or thereby;
(e) the Trustee shall not be liable for any
action taken or omitted by it in good faith and believed
by it to be authorized or within the discretion, rights or
powers conferred upon it by this Indenture;
(f) prior to the occurrence of an Event of
Default with respect to the Securities of any series and
after the curing or waiving of all such Events of Default,
the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, appraisal,
bond, debenture, note, security or other paper or document
unless requested in writing so to do by the Holders of not
less than a majority in aggregate principal amount of the
Securities of all affected series then Outstanding;
provided that, if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely
to be incurred by it in the making of such investigation
is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require reasonable
indemnity against such costs, expenses or liabilities as a
condition to proceeding; the reasonable expenses of every
such investigation shall be paid by the Issuer or, if paid
by the Trustee, shall be repaid by the Issuer upon demand;
and
(g) the Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either
directly or by or through agents or attorneys not
regularly in its employ, and the Trustee shall not be
responsible for any misconduct or negligence on the part
of any such agent or attorney appointed with due care by
it hereunder.
Section 6.3 Trustee Not Responsible for Recitals,
Disposition of Securities or Application of Proceeds Thereof. The
recitals contained herein and in the Securities, except the Trustee's
certificates of authentication, shall be taken as the statements of the
Issuer, and the Trustee assumes no responsibility for the correctness of
the same. The Trustee makes no representation as to the validity or
sufficiency of this Indenture or of the Securities, other than as to the
due execution and delivery of the Indenture by the Trustee. The Trustee
shall not be accountable for the use or application by the Issuer of any
of the Securities or of the proceeds thereof.
Section 6.4 Trustee and Agents May Hold Securities;
Collections, etc. The Trustee or any agent of the Issuer or the Trustee,
in its individual or any other capacity, may become the owner or pledgee
of Securities with the same rights it would have if it were not the
Trustee or such agent and, subject to Sections 6.8 and 6.13, may otherwise
deal with the Issuer and receive, collect, hold and retain collections
from the Issuer with the same rights it would have if it were not the
Trustee or such agent.
Section 6.5 Moneys Held by Trustee. Subject to the
provisions of Section 10.4, all moneys received by the Trustee shall,
until used or applied as herein provided, be held in trust for the
purposes for which they were received, but need not be segregated from
other funds except to the extent required by mandatory provisions of law.
Neither the Trustee nor any agent of the Issuer or the Trustee shall be
under any liability for interest on any moneys received by it hereunder.
Section 6.6 Compensation and Indemnification of Trustee
and Its Prior Claim. The Issuer covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to,
reasonable compensation (which shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust), and
the Issuer covenants and agrees to pay or reimburse the Trustee upon its
written request for all reasonable expenses, disbursements and advances
incurred or made by or on behalf of it in accordance with any of the
provisions of this Indenture (including the reasonable compensation and
the expenses and disbursements of its counsel and of all agents and other
persons not regularly in its employ) except any such expense, disbursement
or advance as may arise from its negligence or bad faith. The Issuer also
covenants to indemnify the Trustee for, and to hold it harmless against,
any loss, liability or expense incurred without negligence or bad faith on
the part of the Trustee arising out of or in connection with the
acceptance or administration of this Indenture or the trusts hereunder and
the Trustee's duties hereunder, including the costs and expenses of
defending itself against or investigating any claim of liability in the
premises. The obligations of the Issuer under this Section to compensate
and indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall constitute additional
indebtedness hereunder and shall survive the satisfaction and discharge of
this Indenture. Such additional indebtedness shall not be deemed to be
Subordinated Securities, as that term is defined in Section 12.1, and
shall be a senior claim to that of the Securities upon all property and
funds held or collected by the Trustee as such, except funds held in trust
for the benefit of the Holders of particular Securities, and the
Securities are hereby subordinated to such senior claim. When the Trustee
incurs expenses after the occurrence of a default, the expenses are
intended to constitute expenses of administration under any bankruptcy
law.
Section 6.7 Right of Trustee to Rely on Officers'
Certificate, etc. Subject to Sections 6.1 and 6.2, whenever in the
administration of the trusts of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to
taking or suffering or omitting any action hereunder, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may,
in the absence of negligence or bad faith on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers'
Certificate delivered to the Trustee, and such certificate, in the absence
of negligence or bad faith on the part of the Trustee, shall be full
warrant to the Trustee for any action taken, suffered or omitted by it
under the provisions of this Indenture in reliance thereon.
Section 6.8 Qualification of Trustee; Conflicting
Interests. If the Trustee has or shall acquire any "conflicting interest"
within the meaning of Section 310(b) of the Trust Indenture Act, the
Trustee and the Company shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act.
Section 6.9 Persons Eligible for Appointment as Trustee.
There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United
States of America or of any State thereof or the District of Columbia
having a combined capital and surplus of at least $5,000,000, and which is
authorized under such laws to exercise corporate trust powers and is
subject to supervision or examination by Federal, State or District of
Columbia authority. Such corporation shall have its principal place of
business in The City of New York, if there be such a corporation in such
location willing to act upon reasonable and customary terms and
conditions. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then, for the purposes of this
Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Trustee
shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the
effect specified in Section 6.10.
Section 6.10 Resignation and Removal; Appointment of
Successor Trustee. (a) The Trustee, or any trustee or trustees hereafter
appointed, may at any time resign and be discharged of the trusts created
by this Indenture by giving written notice of resignation to the
Issuer and by mailing notice of such resignation to the Holders of the
then Outstanding Securities at their addresses as they shall appear on the
Security registry books. Upon receiving such notice of resignation, the
Issuer shall promptly appoint a successor trustee or trustees with respect
to the applicable series by written instrument, in duplicate, executed by
authority of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee
or trustees. If no successor trustee shall have been so appointed with
respect to any series and shall have accepted appointment within 30 days
after the mailing of such notice of resignation, the resigning trustee may
petition any court of competent jurisdiction for the appointment of a
successor trustee, or any Holder who has been a bona fide Holder of a
Security or Securities of such series for at least six months may, subject
to the provisions of Section 5.12, on behalf of such Xxxxxx and all others
similarly situated, petition any such court for the appointment of a
successor trustee. Such court may thereupon, after such notice, if any,
as it may deem proper and prescribe, appoint a successor trustee.
(b) In case at any time any of the following shall occur:
(i) the Trustee shall fail to comply with the
provisions of Section 6.8 after written request therefor
by the Issuer or by any Holder who has been a bona fide
Holder of a Security or Securities of such series for at
least six months; or
(ii) the Trustee shall cease to be eligible in
accordance with the provisions of Section 6.9 and shall
fail to resign after written request therefor by the
Issuer or by any Holder; or
(iii) the Trustee shall become incapable of
acting or shall be adjudged a bankrupt or insolvent, or a
receiver or liquidator of the Trustee or of its property
shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or
liquidation;
then, in any such case, the Issuer may remove the Trustee with respect to
the Securities of any or all series, as appropriate, and appoint a
successor trustee for such series by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
trustee or trustees, or, subject to the provisions of Section 5.12, any
Holder who has been a bona fide Holder of a Security or Securities of such
series for at least six months may, on behalf of such Xxxxxx and all
others similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper
and prescribe, remove the Trustee and appoint a successor trustee.
(c) The Holders of a majority in aggregate principal
amount of the Securities at the time Outstanding may at any time remove
the Trustee and appoint a successor trustee by delivering to the Trustee
so removed, to the successor trustee so appointed and to the Issuer the
evidence provided for in Section 7.1 of the action in that regard taken by
the Holders.
(d) Any resignation or removal of the Trustee and any
appointment of a successor trustee pursuant to any of the provisions of
this Section shall become effective upon acceptance of appointment by the
successor trustee as provided in Section 6.11.
(e) Except in the case of a default in the payment of the
principal of or interest on any Security, or in the payment of any sinking
or purchase fund installment, the Trustee shall not be required to resign
as provided by Section 6.8 if the Trustee shall have sustained the burden
of proving, on application to the Commission and after opportunity for
hearing thereon, that:
(i) the default under this Indenture may be cured or
waived during a reasonable period and under the procedures
described in such application; and
(ii) a stay of the Trustee's duty to resign will not be
inconsistent with the interests of the Securityholders.
Section 6.11 Acceptance of Appointment by Successor
Trustee. Any successor trustee appointed as provided in Section 6.10
shall execute, acknowledge and deliver to the Issuer and to its
predecessor trustee an instrument accepting such appointment hereunder,
and thereupon the resignation or removal of the predecessor trustee shall
become effective and such successor trustee, without any further act, deed
or conveyance, shall become vested with all rights, powers, trusts and
duties of its predecessor hereunder, with like effect as if originally
named as trustee hereunder; but, nevertheless, on the written request of
the Issuer or of the successor Trustee, upon payment of its charges then
unpaid, the trustee ceasing to act shall, subject to Section 10.4, pay
over and transfer to the successor Trustee all moneys and property at the
time held by it hereunder and shall execute, acknowledge and deliver an
instrument transferring to such successor Trustee all such rights, powers,
trusts and duties. Upon request of any such successor Trustee, the Issuer
shall execute and acknowledge any and all instruments in writing for more
fully and certainly vesting in and confirming to such successor Trustee
all such money, property, rights, powers and trusts. Any Trustee ceasing
to act shall, nevertheless, retain a prior claim upon all property or
funds held or collected by such Trustee for the benefit of such applicable
series to secure any amounts then due it pursuant to the provisions of
Section 6.6.
No successor Trustee shall accept appointment as provided
in this Section unless at the time of such acceptance such successor
trustee shall be qualified under the provisions of Section 6.8 and
eligible under the provisions of Section 6.9.
Upon acceptance of appointment by any successor Trustee as
provided in this Section, the Issuer shall give notice thereof to the
Holders of Securities, by mailing such notice to such Holders at their
addresses as they shall appear on the Security registry books. If the
acceptance of appointment is substantially contemporaneous with the
resignation, then the notice called for by the preceding sentence may be
combined with the notice called for by Section 6.10. If the Issuer fails
to give such notice within 10 days after acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be
given at the expense of the Issuer.
Section 6.12 Merger, Conversion, Consolidation or
Succession to Business of Trustee. Any corporation into which the Trustee
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to
which the Trustee shall be a party, or any corporation succeeding to the
corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided that such corporation shall be qualified under
the provisions of Section 6.8 and eligible under the provisions of
Section 6.9, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.
In case at the time of such succession to the Trustee any
of the Securities of any series shall have been authenticated but not
delivered, any such successor Trustee may adopt the certificate of
authentication of any predecessor Trustee and deliver the Securities so
authenticated; and, in case at that time any of the Securities of any
series shall not have been authenticated, any successor Trustee may
authenticate such Securities either in the name of any predecessor
hereunder or in the name of such successor Trustee; and in all such cases
such certificate of authentication shall have the full force which is
anywhere in the Securities of such series or in this Indenture provided
that the certificate of authentication of the Trustee shall have; provided
that the right to adopt the certification of any predecessor Trustee or to
authenticate Securities of any series in the name of any predecessor
Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.
Section 6.13 Preferential Collection of Claims Against
the Issuer. The Trustee shall comply with its obligations under the
applicable provisions of Section 311 of the Trust Indenture Act.
Section 6.14 Appointment of Authenticating Agent. As
long as any Securities of a series remain Outstanding, the Trustee may, by
an instrument in writing, appoint with the approval of the Issuer an
authenticating agent (the "Authenticating Agent") which shall be
authorized to act on behalf of, but subject to the direction of, the
Trustee to authenticate and deliver Securities of such series, including
Securities issued upon exchange, registration of transfer, partial
redemption or pursuant to Section 2.9. Securities of such series so
authenticated and delivered shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee. Whenever reference is made in this
Indenture to the authentication and delivery of Securities of any series
by the Trustee or to the Trustee's certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent for such series and a
certificate of authentication executed on behalf of the Trustee by such
Authenticating Agent. Such Authenticating Agent shall at all times be a
corporation organized and doing business under the laws of the United
States of America or of any State thereof or of the District of Columbia
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $5,000,000 (determined as
provided in Section 6.9 with respect to the Trustee) and subject to
supervision or examination by Federal or State authority.
Any corporation into which any Authenticating Agent may be
merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to
which any Authenticating Agent shall be a party, or any corporation
succeeding to the corporate agency or corporate trust business of any
Authenticating Agent, shall be the successor to such Authenticating Agent
with respect to all series of Securities for which it served as Authen-
ticating Agent without the execution or filing of any paper or any further
act on the part of the Trustee or such Authenticating Agent.
Any Authenticating Agent may at any time, and if it shall
cease to be eligible hereunder shall, resign by giving written notice of
resignation to the Trustee and to the Issuer. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice
thereof to such Authenticating Agent and the Issuer. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time
any Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall upon receipt of an Issuer
Order appoint a successor Authenticating Agent and shall provide notice of
such appointment to all Holders of Securities affected thereby in the
manner and to the extent provided in Section 6.11 with respect to the
appointment of a successor trustee. Any successor Authenticating Agent
upon acceptance of its appointment hereunder shall become vested with all
rights, powers and duties of its predecessor hereunder, with like effect
as if originally named as an Authenticating Agent. The Authenticating
Agent for the Securities of any series shall have no responsibility or
liability for any action taken by it as such at the direction of the
Trustee.
Sections 6.2, 6.3, 6.4, 6.6 and 7.3 shall be applicable to
any Authenticating Agent.
ARTICLE SEVEN
CONCERNING THE SECURITYHOLDERS
Section 7.1 Evidence of Action Taken by Securityholders.
Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by a
specified percentage in aggregate principal amount of the Holders of one
or more series of Securities may be evidenced (i) by one or more
instruments of substantially similar tenor signed by such specified
percentage of Holders in person or by an agent or proxy duly appointed in
writing; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered
to the Trustee; (ii) by the record of such specified percentage of Holders
voting in favor thereof at any meeting of such Holders duly called and
held by the Trustee; and (iii) by a combination of such instrument or
instruments and any such record of a meeting.
Section 7.2 Proof of Execution of Instruments and of
Holding of Securities. Subject to Sections 6.1 and 6.2, the execution of
any instrument by a Holder or his agent or proxy and proof of the holding
by any Person of any of the Securities of any series shall be sufficient
if made in the following manner:
(a) The fact and date of the execution by any
such Person of any instrument may be proved by the
certificate of any notary public or other officer of any
jurisdiction authorized to take acknowledgments of deeds
or administer oaths that the Person executing such
instrument acknowledged to him the execution thereof, or
by an affidavit of a witness to such execution sworn to
before any such notary or other such officer. Where such
execution is by or on behalf of any legal entity other
than an individual, such certificate or affidavit shall
also constitute sufficient proof of the authority of the
Person executing the same.
(b) The ownership of Securities shall be proved
by the Security Register or by a certificate of the
Security Registrar.
Section 7.3 Holders to Be Treated as Owners. The Issuer,
the Trustee and any agent of the Issuer or the Trustee may deem and treat
the Person in whose name any Security of any series shall be registered
upon the Security Register for such series as the absolute owner of such
Security (whether or not such Security shall be overdue and
notwithstanding any notation of ownership or other writing thereon) for
the purpose of receiving payment of or on account of the principal of and,
subject to the provisions of Section 2.7 of this Indenture, interest, if
any, on such Security and for all other purposes; and none of the Issuer,
the Trustee and any agent of the Issuer or the Trustee shall be affected
by any notice to the contrary. All such payments so made to any such
Person, or upon his order, shall be valid, and, to the extent of the sum
or sums so paid, effectual to satisfy and discharge the liability for
moneys payable upon any such Security.
No holder of any beneficial interest in any Global
Security held on its behalf by a Depository shall have any rights under
this Indenture with respect to such Global Security, and such Depository
may be treated by the Issuer, the Trustee, and any agent of the Issuer or
the Trustee as the owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall impair,
as between a Depository and such holders of beneficial interests, the
operation of customary practices governing the exercise of the rights of
the Depository as holder of any Security.
Section 7.4 Securities Owned by Issuer Deemed Not
Outstanding. In determining whether the Holders of the requisite
aggregate principal amount of Outstanding Securities of one or more series
have concurred in any direction, consent or waiver under this Indenture,
Securities which are owned by the Issuer or any other obligor on the
Securities with respect to which such determination is being made or by
any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Issuer or any other obligor on
the Securities with respect to which such determination is being made
shall be disregarded and deemed not to be Outstanding for the purposes of
any such determination, except that for the purpose of determining whether
the Trustee shall be protected in relying on any such direction, consent
or waiver, only Securities which the Trustee knows are so owned shall be
so disregarded. Securities so owned which have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to
such Securities and that the pledgee is not the Issuer or any other
obligor upon such Securities or any Person directly or indirectly
controlling or controlled by or under direct or indirect common control
with the Issuer or any other obligor on such Securities. In case of a
dispute as to such right, the advice of counsel shall be full protection
in respect of any decision made by the Trustee in accordance with such
advice. Upon request of the Trustee, the Issuer shall furnish to the
Trustee promptly an Officers' Certificate listing and identifying all
Securities, if any, known by the Issuer to be owned or held by or for the
account of any of the above described Persons; and, subject to Sections
6.1 and 6.2, the Trustee shall be entitled to accept such Officers'
Certificate as conclusive evidence of the facts therein set forth and of
the fact that all Securities not listed therein are Outstanding for the
purposes of any such determination.
Section 7.5 Right of Revocation of Action Taken. At any
time prior to (but not after) the evidencing to the Trustee, as provided
in Section 7.1, of the taking of any action by the Holders of the requi-
site percentage in aggregate principal amount of the Securities of one or
more series, as the case may be, specified in this Indenture in connection
with such action, any Holder of a Security the serial number of which is
shown by the evidence to be included among the serial numbers of the
Securities the Holders of which have consented to such action may, by
filing written notice at the Corporate Trust Office and upon proof of
ownership as provided in Section 7.2, revoke such action so far as
concerns such Security. Except as aforesaid, any such action taken by the
Holder of any Security of any series shall be conclusive and binding upon
such Holder and upon all future Holders and owners of such Security and of
any Securities of such series issued in exchange or substitution therefor
or on registration of transfer thereof, irrespective of whether or not any
notation in regard thereto is made upon any such Security. Any action
taken by the Holders of the requisite percentage in aggregate principal
amount of the Securities of one or more series, as the case may be,
specified in this Indenture in connection with such action shall be
conclusively binding upon the Issuer, the Trustee and the Holders of all
the Securities of such series.
Section 7.6 Calculation of Original Issue Discount. The
Company shall file with the Trustee promptly at the end of each calendar
year a written notice specifying the amount of original issue discount
(including daily accruals and accrual periods) accrued on Outstanding
Securities as of the end of such year.
ARTICLE EIGHT
SUPPLEMENTAL INDENTURES
Section 8.1 Supplemental Indentures Without Consent of
Securityholders. The Issuer, when authorized by a resolution of the Board
of Directors (which resolution may provide general terms or parameters for
such action and may provide that the specific terms of such action may be
determined in accordance with or pursuant to an Issuer Order), and the
Trustee may, from time to time and at any time, enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of
the Trust Indenture Act of 1939 as in force at the date of the execution
thereof) for one or more of the following purposes:
(a) to convey, transfer, assign, mortgage or
pledge to the Trustee as security for the Securities of
one or more series any property or assets;
(b) to evidence the succession of another
corporation to the Issuer, or successive successions, and
the assumption by the successor corporation of the
covenants, agreements and obligations of the Issuer
pursuant to Article Nine;
(c) to add to the covenants of the Issuer for
the benefit of the Holders of all or any series of
Securities (and if such covenants are to be for the
benefit of less than all series of Securities, stating
that such covenants are expressly being included solely
for the benefit of such series) such further covenants,
restrictions, conditions or provisions as the Issuer and
the Trustee shall consider to be for the protection of the
Holders of Securities of any series, and to make the
occurrence, or the occurrence and continuance, of a
default in complying with any such additional covenant,
restriction, condition or provision an Event of Default
permitting the enforcement of all or any of the several
remedies provided in this Indenture as herein set forth;
in respect of any such additional covenant, restriction,
condition or provision, such supplemental indenture may
provide for a particular period of grace after default
(which period may be shorter or longer than that allowed
in the case of other defaults) or may provide for an
immediate enforcement upon such an Event of Default or may
limit the remedies available to the Trustee upon such an
Event of Default or may limit the right of the Holders of
a majority in aggregate principal amount of the Securities
of such series to waive such an Event of Default;
(d) to cure any ambiguity or to correct or
supplement any provision contained herein or in any
supplemental indenture which may be defective or
inconsistent with any other provision contained herein or
in any supplemental indenture, or to make such other
provisions as the Issuer may deem necessary or desirable,
with respect to matters or questions arising under this
Indenture, provided that no such action shall adversely
affect the interests of the Holders of the Securities of
any series appertaining thereto;
(e) to establish the form and terms of the
Securities of any series as permitted by Sections 2.1 and
2.3; and
(f) to evidence and provide for the acceptance
of appointment hereunder by a successor Trustee with
respect to the Securities and to add to or change any of
the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts
hereunder by more than one trustee, all as provided in
Section 6.11.
The Trustee is hereby authorized to join with the Issuer
in the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations which may be therein contained and
to accept the conveyance, transfer, assignment, mortgage or pledge of any
property or assets thereunder, but the Trustee shall not be obligated to
enter into any such supplemental indenture which affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of
this Section may be executed without the consent of the Holders of any of
the Securities at the time Outstanding, notwithstanding any of the
provisions of Section 8.2.
Section 8.2 Supplemental Indentures With Consent of
Securityholders. With the consent (evidenced as provided in Article
Seven) of the Holders of not less than a majority in aggregate principal
amount of the Securities of all series at the time Outstanding affected by
such supplemental indenture (voting as one class), the Issuer, when
authorized by a resolution of the Board of Directors (which resolution may
provide general terms or parameters for such action and may provide that
the specific terms of such action may be determined in accordance with or
pursuant to an Issuer Order), and the Trustee may, from time to time and
at any time, enter into an indenture or indentures supplemental hereto
(which shall conform to the provisions of the Trust Indenture Act of 1939
as in force at the date of execution thereof) for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of the Securities of
each such series; provided that no such supplemental indenture shall
(a) change the time of payment of the principal, or any installment of the
principal, of any Security or reduce the principal amount thereof, or
reduce the rate or change the time of payment of interest, if any,
thereon, or reduce any amount payable on the redemption thereof, or make
the principal thereof or the interest thereon payable in any coin or
currency other than that provided in such Security in accordance with the
terms thereof or impair or affect the right to institute suit for the
payment thereof when due, or, if such Security shall so provide, any right
of repayment at the option of the Holder, in each case without the consent
of the Holder of each Security so affected, (b) reduce the percentage in
principal amount of the Outstanding Securities of the affected series, the
consent of whose Holders is required for any such supplemental indenture
or for any waiver provided for in this Indenture, without the consent of
the Holders of each Security so affected or (c) without the consent of the
Holders of each Security so affected, modify any of the provisions of this
Section or Section 5.10, except to increase any such percentage or to
provide that certain other provisions of this Indenture cannot be modified
or waived without the consent of the Holder of each Outstanding Security
affected thereby; provided, however, that this clause shall not be deemed
to require the consent of any Holder with respect to changes in the
references to "the Trustee" and concomitant changes in this Section, or
the deletion of this proviso, in accordance with the requirements of
Sections 6.11 and 8.1(f).
A supplemental indenture which changes or eliminates any
covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more series of Securities, or
which modifies the rights of the Holders of Securities of such series
appertaining to such Securities with respect to such covenant or
provision, shall be deemed not to affect the rights under this Indenture
of the Holders of Securities of any other series.
Upon the request of the Issuer, accompanied by a Board
Resolution complying with the first paragraph of this Section and evidence
of the consent of the Holders of the Securities as aforesaid and such
other documents, if any, as may be required by Section 7.1, the Trustee
shall join with the Issuer in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustee's own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into
such supplemental indenture.
It shall not be necessary for the consent of the Holders
under this Section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such consent shall
approve the substance thereof.
Promptly after the execution by the Issuer and the Trustee
of any supplemental indenture pursuant to the provisions of this Section,
the Trustee shall give notice thereof to the Holders of then Outstanding
Securities of each series affected thereby, by mailing a notice thereof by
first-class mail to such Holders at their addresses as they shall appear
on the Security Register, and in each case such notice shall set forth in
general terms the substance of such supplemental indenture. Any failure
of the Issuer to give such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.
Section 8.3 Effect of Supplemental Indenture. Upon the
execution of any supplemental indenture pursuant to the provisions hereof,
this Indenture shall be and be deemed to be modified and amended in
accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee,
the Issuer and the Holders of Securities of each series affected thereby
shall thereafter be determined, exercised and enforced hereunder subject
in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed
to be part of the terms and conditions of this Indenture for any and all
purposes.
Section 8.4 Documents to Be Given to Trustee. The
Trustee, subject to the provisions of Sections 6.1 and 6.2, may receive an
Officers' Certificate and an Opinion of Counsel as conclusive evidence
that any supplemental indenture executed pursuant to this Article complies
with the applicable provisions of this Indenture.
Section 8.5 Notation on Securities in Respect of
Supplemental Indentures. Securities of any series authenticated and
delivered after the execution of any supplemental indenture pursuant to
the provisions of this Article may bear a notation in form approved by the
Trustee as to any matter provided for by such supplemental indenture. If
the Issuer or the Trustee shall so determine, new Securities of any series
so modified as to conform, in the opinion of the Trustee and the Board of
Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared and executed by the Issuer,
authenticated by the Trustee and delivered in exchange for the Securities
of such series then Outstanding.
ARTICLE NINE
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 9.1 Covenant of Issuer Not to Merge, Consolidate,
Sell or Convey Property Except Under Certain Conditions. Nothing
contained in this Indenture or in any of the Securities shall prevent any
consolidation of the Issuer with, or merger of the Issuer into, any other
corporation or corporations (whether or not affiliated with the Issuer),
or successive consolidations or mergers to which the Issuer or its
successor or successors shall be a party or parties, shall prevent any
sale, lease or conveyance of the property of the Issuer as an entirety or
substantially as an entirety, shall prevent any consolidation of any
Person with, or the merger of any Person into, the Issuer or shall prevent
any sale, lease or conveyance of the property of any Person as an entirety
or substantially as an entirety to the Issuer; provided, that, and the
Issuer hereby covenants and agrees, upon any such consolidation, merger,
sale, lease or conveyance, the due and punctual payment of the principal
of and interest, if any, on all the Securities, according to their tenor,
and the due and punctual performance and observance of all of the
covenants and conditions of this Indenture to be performed or observed by
the Issuer, shall be expressly assumed, by supplemental indenture
satisfactory in form to the Trustee, executed and delivered to the Trustee
by the corporation formed by such consolidation, or into which the Issuer
shall have been merged, or which shall have acquired such property;
provided, further, that the corporation formed by such consolidation or
into which the Issuer merged or the Person which acquired by conveyance or
sale, or which leases, the properties and assets of the Issuer as an
entirety or substantially as an entirety shall be a corporation organized
and existing under the laws of the United States of America, any State
thereof or the District of Columbia; provided, further, that immediately
after giving effect to such transaction, and treating any indebtedness
which becomes an obligation of the Issuer or a Subsidiary as a result of
such transaction as having been incurred by the Issuer or such Subsidiary
at the time of such transaction, no Event of Default, and no event which,
after notice or lapse of time or both, would become an Event of Default,
shall have happened and be continuing; provided, further, if, as a result
of any such consolidation or merger or such conveyance, transfer or lease,
properties or assets of the Issuer would become subject to a mortgage,
pledge, lien, security interest or other encumbrance which would not be
permitted by this Indenture, the Issuer or such successor corporation or
Person, as the case may be, shall take such steps as shall be necessary
effectively to secure the Securities equally and ratably with (or prior
to) all indebtedness secured thereby.
Section 9.2 Successor Corporation Substituted for Issuer.
In case of any consolidation, merger, sale, lease or conveyance referred
to in, and in accordance with, Section 9.1, and following such an
assumption by the successor corporation, such successor corporation shall
succeed to and be substituted for the Issuer, with the same effect as if
it had been named herein as Issuer.
Such successor corporation may cause to be signed, and may
issue either in its own name or in the name of the Issuer prior to such
succession, any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Issuer and delivered to the
Trustee; and, upon the order of such successor corporation, instead of the
Issuer, and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been signed and delivered by the
officers of the Issuer to the Trustee for authentication, and any
Securities which such successor corporation thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All of the
Securities so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Securities theretofore or thereafter
issued in accordance with the terms of this indenture as though all of
such Securities had been issued at the date of the execution hereof.
In case of any such consolidation, merger, sale, lease or
conveyance such changes in phraseology and form (but not in substance) may
be made in the Securities thereafter to be issued as may be appropriate.
In the event of any such sale or conveyance (other than a
conveyance by way of lease), the Issuer or any successor corporation which
shall theretofore have become such in the manner described in this Article
shall be discharged from all obligations and covenants under this
Indenture and the Securities and may be liquidated and dissolved.
Section 9.3 Opinion of Counsel Delivered to Trustee. The
Trustee, subject to the provisions of Sections 6.1 and 6.2, may receive an
Opinion of Counsel as conclusive evidence that any such consolidation,
merger, sale, lease or conveyance, and any such assumption, and any such
liquidation or dissolution, complies with the applicable provisions of
this Indenture and that all conditions precedent herein provided for
relating to such transactions have been complied with.
ARTICLE TEN
SATISFACTION AND DISCHARGE OF INDENTURE;
UNCLAIMED MONEYS
Section 10.1 Satisfaction and Discharge of Indenture.
(A) If at any time (a) the Issuer shall have paid or caused to be paid
the principal of, and interest, if any, on all the Securities of each
series theretofore authenticated, (other than Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided
in Section 2.9), in accordance with the terms of this Indenture and such
Securities or (b) as to Securities not so paid, the Issuer shall have
delivered to the Trustee for cancellation all Securities of each series
theretofore authenticated (other than any Securities which shall have been
destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 2.9) or (c) as to Securities not so paid or delivered
for cancellation, (i) all the Securities of such series shall have become
due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption, and (ii) the Issuer shall have irrevocably deposited or caused
to be deposited with the Trustee as trust funds money in an amount (other
than moneys repaid by the Trustee or any paying agent to the Issuer in
accordance with Section 10.4) or Government Obligations, maturing as to
principal and interest at such times and in such amounts as will insure
the availability of money, or a combination thereof, sufficient in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to
pay (A) the principal and interest, if any, on all Securities of such
series on each date that such principal or interest, if any, is due and
payable and (B) any mandatory sinking fund or analogous payments on the
dates on which such payments are due and payable in accordance with the
terms of this Indenture and the Securities of such series; and if, in any
such case, the Issuer shall also pay or cause to be paid all other sums
payable hereunder by the Issuer then this Indenture shall cease to be of
further effect (except as to (i) rights of registration of transfer and
exchange of Securities, (ii) substitution of mutilated, defaced,
destroyed, lost or stolen Securities, (iii) the rights of Holders of
Securities to receive payments of principal thereof, and interest, if any,
thereon, upon the original stated due dates therefor or any date of
redemption (but not upon acceleration), and remaining rights of such
Holders to receive mandatory sinking fund or analogous payments, if any,
(iv) the rights, obligations, duties and immunities of the Trustee
hereunder, (v) the rights of Holders of Securities as beneficiaries hereof
with respect to the property so deposited with the Trustee and payable to
all or any of them and (vi) the obligations of the Issuer under
Section 3.2) and the Trustee, on demand of the Issuer accompanied by an
Officers' Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with, and at the cost and
expense of the Issuer, shall execute proper instruments acknowledging such
satisfaction and discharge of this Indenture, provided that the rights of
Holders of the Securities to receive amounts in respect of principal of
and interest on the Securities held by them shall not be delayed longer
than required by then applicable mandatory rules or policies of any
national securities exchange upon which the Securities are listed. The
Issuer agrees to reimburse the Trustee for any costs or expenses
thereafter reasonably and properly incurred and to compensate the Trustee
for any services thereafter reasonably and properly rendered by the
Trustee in connection with this Indenture or the Securities.
(B) The following provisions shall apply to the
Securities of each series unless specifically otherwise provided in the
Board Resolution, Officers' Certificate or supplemental indenture relating
thereto provided pursuant to Section 2.3. In addition to discharge of
this Indenture pursuant to the next preceding paragraph (A) the Issuer
shall be deemed to have paid and discharged the entire indebtedness on all
the Securities of such series on the 91st day after the date of making the
deposit referred to in clause (a), and the provisions of this Indenture
with respect to the Securities of such series shall no longer be in effect
(except as to (i) rights of registration of transfer and exchange of
Securities of such series, (ii) substitution of mutilated, defaced,
destroyed, lost or stolen Securities, (iii) the rights of Holders of
Securities of such series appertaining thereto to receive payments of
principal thereof and interest, if any, thereon, upon the original stated
due dates therefor or any date of redemption (but not upon acceleration),
and remaining rights of such Holders to receive mandatory sinking fund or
analogous payments, if any, solely from the trust fund referred to in sub-
paragraph (a) below, (iv) the rights, obligations, duties and immunities
of the Trustee hereunder, (v) the rights of Holders of Securities of such
series as beneficiaries hereof with respect to the property so deposited
with the Trustee and payable to all or any of them and (vi) the
obligations of the Issuer under Section 3.2), and the Trustee, at the cost
and expense of the Issuer, shall, at the Issuer's written request, execute
proper instruments acknowledging the same, if:
(a) the Issuer shall have irrevocably deposited
or caused to be irrevocably deposited with the Trustee as
a trust fund specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the
Securities of such series (i) money in an amount, or
(ii) Government Obligations, maturing as to principal and
interest at such times and in such amounts as will insure
the availability of money, or (iii) a combination thereof,
sufficient in the opinion of a nationally recognized firm
of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay
(A) the principal and interest, if any, on all Securities
of such series on each date that such principal or
interest, if any, is due and payable and (B) any mandatory
sinking fund or analogous payments on the dates on which
such payments are due and payable in accordance with the
terms of this Indenture and the Securities of such series;
(b) no Event of Default or event which, with
notice or lapse of time or both, would become an Event of
Default with respect to the Securities of such series
shall have occurred and be continuing on the date of such
deposit or at any time during the period ending on the
91st day after the date of such deposit (it being
understood that this condition shall not be deemed
satisfied until the expiration of such period);
(c) such deposit shall not result in a breach or
violation of, or constitute a default under, this
Indenture or any other material agreement or instrument to
which the Issuer is a party or by which it is bound;
(d) such deposit shall not cause any Securities
of such series then listed on any national securities
exchange registered under the Securities Exchange Act of
1934, as amended, to be delisted;
(e) the Issuer shall have delivered to the
Trustee an Opinion of Counsel to the effect that (i) if
such deposits shall include Government Obligations in
respect of any government other than the United States of
America, such deposit shall not result in the Issuer, the
Trustee or such trust constituting an "investment company"
under the Investment Company Act of 1940, as amended, and
(ii) if any such deposit occurs more than one year prior
to the stated maturity or redemption date of the
Securities of such series, the Holders of the Securities
of such series then Outstanding will not recognize income,
gain or loss for Federal income tax purposes as a result
of such deposit, defeasance and discharge and will be
subject to Federal income tax on the same amounts, in the
same manner and at the same times as would have been the
case if such deposit, defeasance and discharge had not
occurred; and
(f) the Issuer shall have delivered to the
Trustee an Officers' Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein
provided for relating to the defeasance contemplated by
this paragraph have been complied with.
Section 10.2 Application by Trustee of Funds Deposited
for Payment of Securities. Subject to Section 10.4, all moneys and
Government Obligations deposited with the Trustee (or other trustee), and
all money received by the Trustee in respect of Government Obligations
deposited with the Trustee, pursuant to Section 10.1 in respect of the
Outstanding Securities of a particular series shall be held in trust and
applied by it to the payment, either directly or through any paying agent
(including the Issuer acting as its own paying agent), to the Holders of
such Securities of all sums due and to become due thereon for principal
and interest, if any; but such money need not be segregated from other
funds except to the extent required by law.
Section 10.3 Repayment of Moneys Held by Paying Agent.
In connection with the satisfaction and discharge of this Indenture with
respect to the Securities of any series, all moneys then held by any
paying agent under the provisions of this Indenture with respect to such
series of Securities shall, upon demand of the Issuer, be repaid to it or
paid to the Trustee and thereupon such paying agent shall be released from
all further liability with respect to such moneys.
Section 10.4 Return of Moneys Held by Trustee and Paying
Agent Unclaimed for Three Years. Any moneys deposited with or paid to the
Trustee or any paying agent for the payment of the principal of or
interest, if any, on any Security of any series and not applied but
remaining unclaimed for three years after the date upon which such
principal or interest shall have become due and payable, shall, upon the
written request of the Issuer and unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property law,
be repaid to the Issuer by the Trustee or such paying agent, and any
Holder of the Securities of such series shall, unless otherwise required
by mandatory provisions of applicable escheat or abandoned or unclaimed
property laws, thereafter look only to the Issuer for any payment which
such Holder may be entitled to collect, and all liability of the Trustee
or any paying agent with respect to such moneys shall thereupon cease;
provided, however, that the Trustee or such paying agent, before being
required to make any such repayment with respect to moneys deposited with
it for any payment shall at the expense of the Issuer, mail by first-class
mail to Holders of such Securities at their addresses as they shall appear
on the Security Register for the Securities of such series, notice that
such moneys remain and that, after a date specified therein, which shall
not be less than 30 days from the date of such mailing any unclaimed
balance of such moneys then remaining will be repaid to the Issuer.
Section 10.5 Indemnity for Government Obligations. The
Issuer shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 10.1 or the principal or interest received in respect
of such Government Obligations, other than any such tax, fee or other
charge which by law is for the account of the Holders of the Securities
for whose benefit such Government Obligations are held.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES AND SINKING FUNDS
Section 11.1 Applicability of Article. The provisions of
this Article shall be applicable to the Securities of any series which are
redeemable before their maturity or to any Securities of a series which
have the benefit of a sinking fund, except as otherwise specified as
contemplated by Section 2.3 for Securities of any series.
Section 11.2 Notice of Redemption; Partial Redemptions.
Notice of redemption to the Holders of Securities of any series to be
redeemed as a whole or in part shall be given by mailing notice of such
redemption by first class mail, postage prepaid, at least 30 days and not
more than 60 days prior to the date fixed for redemption, to such Holders
at their last addresses as they shall appear upon the registry books for
such Securities. Any notice which is mailed in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the
Holder receives the notice. Failure to give notice by mail, or any defect
in the notice to the Holder of any Security of any series designated for
redemption as a whole or in part, shall not affect the validity of the
proceedings for the redemption of any other Security of such series.
The notice of redemption to each such Holder shall specify
(a) the principal amount of each Security of such series held by such
Holder to be redeemed, (b) the date fixed for redemption, (c) the
redemption price, (d) that such redemption is pursuant to the mandatory or
optional sinking or other analogous fund, or both, if such be the case,
(e) that interest accrued to the date fixed for redemption will be paid as
specified in such notice, (f) that on and after said date interest thereon
or on the portions thereof to be redeemed will cease to accrue, (g) place
for presentment and (h) the CUSIP number. In case any Security is to be
redeemed in part only, the notice of redemption shall state the portion of
the principal amount thereof to be redeemed and shall state that on and
after the date fixed for redemption, upon surrender of such Security, a
new Security or Securities of such series in authorized denominations for
an aggregate principal amount equal to the unredeemed portion thereof will
be issued.
The notice of redemption of Securities of any series to be
redeemed at the option of the Issuer shall be given by the Issuer or, at
the Issuer's request, by the Trustee in the name and at the expense of the
Issuer.
On or before the redemption date specified in the notice
of redemption given as provided in this Section, the Issuer will deposit
with the Trustee or with one or more paying agents (or, if the Issuer is
acting as its own paying agent, set aside, segregate and hold in trust as
provided in Section 3.4) an amount of money sufficient to redeem on the
redemption date all the Securities of any series so called for redemption
at the applicable redemption price, together with accrued interest to the
date fixed for redemption. The Issuer will deliver to the Trustee at
least 60 days prior (except that the Trustee may in its sole discretion
waive such notice period at any time) to the date fixed for redemption an
Officers' Certificate stating such date, the aggregate principal amount of
Securities of each series to be redeemed and that no Events of Default
with respect to the Securities of such series have occurred (which have
not been waived or cured). In case of a redemption at the option of the
Issuer prior to the expiration of any restriction on such redemption, the
Issuer shall deliver to the Trustee, prior to the giving of any notice of
redemption to Holders pursuant to this Section, an Officers' Certificate
stating that such restriction has been complied with. If less than all
the Securities of any series are to be redeemed, the Trustee shall select,
in such manner as it shall deem appropriate and fair, Securities of such
series to be redeemed in whole or in part. Securities may be redeemed in
part in multiples equal to the minimum authorized denomination for
Securities of such series or any multiple thereof. The Trustee shall
promptly notify the Issuer in writing of the Securities of such series
selected for redemption and, in the case of any Securities of such series
selected for partial redemption, the principal amount thereof to be
redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of
Securities of any series shall relate, in the case of any Security
redeemed or to be redeemed only in part, to the portion of the principal
amount of such Security which has been or is to be redeemed.
Section 11.3 Payment of Securities Called for Redemption.
If notice of redemption has been given as provided in Section 11.2, the
Securities or portions of Securities specified in such notice shall become
due and payable on the date and at the place stated in such notice at the
applicable redemption price, together with interest accrued to the date
fixed for redemption, and on and after said date (unless the Issuer shall
default in the payment of such Securities at the applicable redemption
price, together with interest accrued to said date) interest on the
Securities or portions of Securities so called for redemption shall cease
to accrue and, except as provided in Sections 6.5 and 10.4, such
Securities shall cease from and after the date fixed for redemption to be
entitled to any benefit or security under this Indenture, and the Holders
thereof shall have no right in respect of such Securities except the right
to receive the applicable redemption price thereof and unpaid interest to
the date fixed for redemption. On presentation and surrender of such
Securities at a place of payment specified in said notice, redemption,
such Securities or the specified portions thereof shall be paid and
redeemed by the Issuer at the applicable redemption price, together with
interest accrued thereon to the date fixed for redemption.
If any Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal shall, until paid or
duly provided for, bear interest from the date fixed for redemption at the
rate of interest borne by such Security.
Upon presentation of any Security redeemed in part only,
the Issuer shall execute and the Trustee shall authenticate and make
available for delivery to or on the order of the Holder thereof, at the
expense of the Issuer, a new Security or Securities of such series, of
authorized denominations, in principal amount equal to the unredeemed
portion of the Security so presented.
Section 11.4 Exclusion of Certain Securities from
Eligibility for Selection for Redemption. Securities shall be excluded
from eligibility for selection for redemption if they are identified by
registration and certificate number in an Officers' Certificate delivered
to the Trustee at least 60 days prior to the last date on which notice of
redemption may be given as being owned of record and beneficially by, and
not pledged or hypothecated by either (a) the Issuer or (b) an entity
specifically identified in such Officers' Certificate as an Affiliate of
the Issuer.
Section 11.5 Mandatory and Optional Sinking Funds. The
minimum amount of any sinking fund payment provided for by the terms of
the Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided
for by the terms of the Securities of any series is herein referred to as
an "optional sinking fund payment". The date on which a sinking fund
payment is to be made is herein referred to as the "sinking fund payment
date".
In lieu of making all or any part of any mandatory sinking
fund payment with respect to any series of Securities in cash, the Issuer
may at its option (a) deliver to the Trustee Securities of such series
theretofore purchased or otherwise acquired (except upon redemption
pursuant to the mandatory sinking fund) by the Issuer or receive credit
for Securities of such series (not previously so credited) theretofore
purchased or otherwise acquired (except as aforesaid) by the Issuer and
delivered to the Trustee for cancellation pursuant to Section 2.10, (b)
receive credit for optional sinking fund payments (not previously so
credited) made pursuant to this Section or (c) receive credit for
Securities of such series (not previously so credited) redeemed by the
Issuer through any optional redemption provision contained in the terms of
such series. Securities so delivered or credited shall be received or
credited by the Trustee at the sinking fund redemption price specified in
such Securities.
On or before the 60th day next preceding each sinking fund
payment date for any series, the Issuer will deliver to the Trustee an
Officers' Certificate (which need not contain the statements required by
Section 14.5) (a) specifying the portion of the mandatory sinking fund
payment due on such date to be satisfied by payment of cash and the
portion to be satisfied by credit of Securities of such series and the
basis for such credit, (b) stating that none of the Securities of such
series to be so credited has theretofore been so credited, (c) stating
that no defaults in the payment of interest or Events of Default with
respect to such series have occurred and are continuing (which have not
been waived or cured) and (d) stating whether or not the Issuer intends to
exercise its right to make an optional sinking fund payment on such date
with respect to such series and, if so, specifying the amount of such
optional sinking fund payment which the Issuer intends to pay on or before
the next succeeding sinking fund payment date. Any Securities of such
series to be so credited and required to be delivered to the Trustee in
order for the Issuer to be entitled to credit therefor as aforesaid which
have not theretofore been delivered to the Trustee shall be delivered for
cancellation pursuant to Section 2.10 to the Trustee with such Officers'
Certificate (or reasonably promptly thereafter if acceptable to the
Trustee). Such Officers' Certificate shall be irrevocable, and upon its
receipt by the Trustee the Issuer shall become unconditionally obligated
to make all the cash payments or other deliveries therein referred to, if
any, on or before the next succeeding sinking fund payment date. Failure
of the Issuer, on or before any such 60th day, to deliver such Officers'
Certificate and securities specified in this paragraph, if any, shall not
constitute a default but shall constitute, on and as of such 60th day, the
irrevocable election of the Issuer that (i) the mandatory sinking fund
payment for such series due on the next succeeding sinking fund payment
date shall be paid entirely in cash without the option to deliver or
credit Securities of such series in respect thereof and (ii) the Issuer
will make no optional sinking fund payment with respect to such series on
such date as provided in this Section.
If the sinking fund payment or payments (mandatory or
optional or both) to be made in cash on the next succeeding sinking fund
payment date plus any unused balance of any preceding sinking fund
payments made in cash shall exceed $50,000 and if the Issuer shall so
request with respect to the Securities of any particular series, such cash
shall be applied on the next succeeding sinking fund payment date to the
redemption of Securities of such series at the applicable sinking fund
redemption price, together with accrued interest to the date fixed for
redemption. If such amount shall be $50,000 or less and the Issuer makes
no such request, then such amount shall be carried over until a sum in
excess of $50,000 is available. The Trustee shall select, in the manner
provided in Section 11.2, for redemption on such sinking fund payment date
a sufficient principal amount of Securities of such series to absorb said
cash, as nearly as may be, and shall (if requested in writing by the
Issuer) inform the Issuer of the serial numbers of the Securities of such
series (or portions thereof) so selected. Securities shall be excluded
from eligibility for redemption under this Section if they are identified
by registration and certificate number in an Officers' Certificate
delivered to the Trustee at least 40 days prior to the sinking fund
payment date as being owned of record and beneficially by, and not pledged
or hypothecated by either (a) the Issuer or (b) an entity specifically
identified in such Officers' Certificate as an Affiliate of the Issuer.
The Trustee, in the name and at the expense of the Issuer (or the Issuer,
if it shall so request the Trustee in writing), shall cause notice of
redemption of the Securities of such series to be given in substantially
the manner provided in Section 11.2 (and with the effect provided in
Section 11.3) for the redemption of Securities of such series in part at
the option of the Issuer. The amount of any sinking fund payments not so
applied or allocated to the redemption of Securities of such series shall
be added to the next cash sinking fund payment for such series and,
together with such payment, shall be applied in accordance with the
provisions of this Section. Any and all sinking fund moneys held on the
stated maturity date of the Securities of a particular series (or earlier,
if such maturity is accelerated), which are not held for the payment or
redemption of particular Securities of such series, shall be applied,
together with other moneys, if necessary, sufficient for the purpose, to
the payment of the principal of and interest on the Securities of such
series at maturity.
Unless otherwise provided for, on or before each sinking
fund payment date, the Issuer shall pay to the Trustee in cash or shall
otherwise provide for the payment of all interest accrued to the date
fixed for redemption on Securities to be redeemed on such sinking fund
payment date.
The Trustee shall not redeem or cause to be redeemed
Securities of any series with sinking fund moneys or give any notice of
redemption of Securities of such series by operation of the sinking fund
for such series during the continuance of any Event of Default with
respect to such series except that, if notice of redemption of any
Securities of such series shall theretofore have been given, the Trustee
shall redeem or cause to be redeemed such Securities, provided that the
Trustee or one or more paying agents shall have received from the Issuer a
sum sufficient for such redemption. Except as aforesaid, any moneys in
the sinking fund for such series at the time when any such Event of
Default shall occur, and any moneys thereafter paid into the sinking fund,
shall, during the continuance of such Event of Default, be deemed to have
been collected under Article Five and held for the payment of all
Securities of such series. In case such Event of Default shall have been
waived as provided in Section 5.10 or such Event of Default cured on or
before the 60th day preceding any sinking fund payment date, such moneys
shall thereafter be applied on the next succeeding sinking fund payment
date in accordance with this Section to the redemption of Securities of
such series.
ARTICLE TWELVE
SUBORDINATION
Section 12.1 Applicability of Article; Securities
Subordinated to Senior Indebtedness. (a) This Article Twelve shall apply
only to the Securities of any series which, pursuant to Section 2.3, are
expressly made subject to this Article. Such Securities are referred to
in this Article Twelve as "Subordinated Securities."
(b) The Issuer covenants and agrees, and each Holder of
Subordinated Securities by his acceptance thereof likewise covenants and
agrees, that the indebtedness represented by the Subordinated Securities
and the payment of the principal and interest, if any, on the Subordinated
Securities is subordinated and subject in right, to the extent and in the
manner provided in this Article, to the prior payment in full of all
Senior Indebtedness.
"Senior Indebtedness" means the principal of and premium,
if any, and interest on the following, whether outstanding on the date
hereof or thereafter incurred, created or assumed: (i) indebtedness of
the Issuer for money borrowed by the Issuer (including purchase money
obligations) or evidenced by debentures (other than the Subordinated
Securities), notes, bankers' acceptances or other corporate debt
securities, or similar instruments issued by the Issuer; (ii) all capital
lease obligations of Consumers; (iii) all obligations of Consumers issued
or assumed as the deferred purchase price of property, all conditional
sale obligations of Consumers and all obligations of Consumers under any
title retention agreement (but excluding trade accounts payable arising in
the ordinary course of business); (iv) obligations with respect to letters
of credit; (v) all indebtedness of others of the type referred to in the
preceding clauses (i) through (iv) assumed by or guaranteed in any manner
by the Issuer or in effect guaranteed by the Issuer; (vi) all obligations
of the type referred to in clauses (i) through (v) above of other persons
secured by any lien on any property or asset of Consumers (whether or not
such obligation is assumed by Consumers), except for (1) any such
indebtedness that is by its terms subordinated to or pari passu with the
Subordinated Notes, as the case may be, including all other debt
securities and guaranties in respect of those debt securities, issued to
any other trusts, partnerships or other entities affiliated with Consumers
which act as a financing vehicle of Consumers in connection with the
issuance of preferred securities by such entity or other securities which
rank pari passu with, or junior to, the Preferred Securities, and (2) any
indebtedness between or among Consumers and its affiliates and/or
(vii) renewals, extensions or refundings of any of the indebtedness
referred to in the preceding clauses unless, in the case of any particular
indebtedness, renewal, extension or refunding, under the express
provisions of the instrument creating or evidencing the same or the
assumption or guarantee of the same, or pursuant to which the same is
outstanding, such indebtedness or such renewal, extension or refunding
thereof is not superior in right of payment to the Subordinated
Securities.
This Article shall constitute a continuing obligation to
all Persons who, in reliance upon such provisions become holders of, or
continue to hold, Senior Indebtedness, and such provisions are made for
the benefit of the holders of Senior Indebtedness, and such holders are
made obligees hereunder and they and/or each of them may enforce such
provisions.
Section 12.2 Issuer Not to Make Payments with Respect to
Subordinated Securities in Certain Circumstances. (a) Upon the maturity
of any Senior Indebtedness by lapse of time, acceleration or otherwise,
all principal thereof and premium and interest thereon shall first be paid
in full, or such payment duly provided for in cash in a manner
satisfactory to the holders of such Senior Indebtedness, before any
payment is made on account of the principal of, or interest on,
Subordinated Securities or to acquire any Subordinated Securities or on
account of any sinking fund provisions of any Subordinated Securities
(except payments made in capital stock of the Issuer or in warrants,
rights or options to purchase or acquire capital stock of the Issuer,
sinking fund payments made in Subordinated Securities acquired by the
Issuer before the maturity of such Senior Indebtedness, and payments made
through the exchange of other debt obligations of the Issuer for such
Subordinated Securities in accordance with the terms of such Subordinated
Securities, provided that such debt obligations are subordinated to Senior
Indebtedness at least to the extent that the Subordinated Securities for
which they are exchanged are so subordinated pursuant to this Article
Twelve).
(b) Upon the happening and during the continuation of any
default in payment of the principal of, or interest on, any Senior
Indebtedness when the same becomes due and payable or in the event any
judicial proceeding shall be pending with respect to any such default,
then, unless and until such default shall have been cured or waived or
shall have ceased to exist, no payment shall be made by the Issuer with
respect to the principal of, or interest on, Subordinated Securities or to
acquire any Subordinated Securities or on account of any sinking fund
provisions of Subordinated Securities (except payments made in capital
stock of the Issuer or in warrants, rights, or options to purchase or
acquire capital stock of the Issuer, sinking fund payments made in
Subordinated Securities acquired by the Issuer before such default and
notice thereof, and payments made through the exchange of other debt
obligations of the Issuer for such Subordinated Securities in accordance
with the terms of such Subordinated Securities, provided that such debt
obligations are subordinated to Senior Indebtedness at least to the extent
that the Subordinated Securities for which they are exchanged are so
subordinated pursuant to this Article Twelve).
(c) In the event that, notwithstanding the provisions of
this Section 12.2, the Issuer shall make any payment to the Trustee on
account of the principal of or interest on Subordinated Securities, or on
account of any sinking fund provisions of such Securities, after the
maturity of any Senior Indebtedness as described in Section 12.2(a) above
or after the happening of a default in payment of the principal of or
interest on any Senior Indebtedness as described in Section 12.2(b) above,
then, unless and until all Senior Indebtedness which shall have matured,
and all premium and interest thereon, shall have been paid in full (or the
declaration of acceleration thereof shall have been rescinded or
annulled), or such default shall have been cured or waived or shall have
ceased to exist, such payment (subject to the provisions of Sections 12.6
and 12.7) shall be held by the Trustee, in trust for the benefit of, and
shall be paid forthwith over and delivered to, the holders of such Senior
Indebtedness (pro rata as to each of such holders on the basis of the
respective amounts of Senior Indebtedness held by them) or their
representative or the trustee under the indenture or other agreement (if
any) pursuant to which such Senior Indebtedness may have been issued, as
their respective interests may appear, for application to the payment of
all such Senior Indebtedness remaining unpaid to the extent necessary to
pay the same in full in accordance with its terms, after giving effect to
any concurrent payment or distribution to or for the holders of Senior
Indebtedness. The Issuer shall give prompt written notice to the Trustee
of any default in the payment of principal of or interest on any Senior
Indebtedness.
Section 12.3 Subordinated Securities Subordinated to
Prior Payment of All Senior Indebtedness on Dissolution, Liquidation or
Reorganization of Issuer. Upon any distribution of assets of the Issuer
in any dissolution, winding up, liquidation or reorganization of the
Issuer (whether voluntary or involuntary, in bankruptcy, insolvency or
receivership proceedings or upon an assignment for the benefit of
creditors or otherwise):
(a) the holders of all Senior Indebtedness shall
first be entitled to receive payments in full of the
principal thereof and premium and interest due thereon, or
provision shall be made for such payment, before the
Holders of Subordinated Securities are entitled to receive
any payment on account of the principal of or interest on
such Securities;
(b) any payment or distribution of assets of the
Issuer of any kind or character, whether in cash, property
or securities (other than securities of the Issuer as
reorganized or readjusted or securities of the Issuer or
any other corporation provided for by a plan or
reorganization or readjustment the payment of which is
subordinate, at least to the extent provided in this
Article Twelve with respect to Subordinated Securities, to
the payment in full without diminution or modification by
such plan of all Senior Indebtedness), to which the
Holders of Subordinated Securities or the Trustee on
behalf of the Holders of Subordinated Securities would be
entitled except for the provisions of this Article Twelve
shall be paid or delivered by the liquidating trustee or
agent or other person making such payment or distribution
directly to the holders of Senior Indebtedness or their
representative, or to the trustee under any indenture
under which Senior Indebtedness may have been issued (pro
rata as to each such holder, representative or trustee on
the basis of the respective amounts of unpaid Senior
Indebtedness held or represented by each), to the extent
necessary to make payment in full of all Senior
Indebtedness remaining unpaid, after giving effect to any
concurrent payment or distribution or provision thereof to
the holders of such Senior Indebtedness; and
(c) in the event that notwithstanding the foregoing
provisions of this Section 12.3, any payment or distribution of
assets of the Issuer of any kind or character, whether in cash,
property or securities (other than securities of the Issuer as
reorganized or readjusted or securities of the Issuer or any other
corporation provided for by a plan of reorganization or
readjustment the payment of which is subordinate, at least to the
extent provided in this Article Twelve with respect to
Subordinated Securities, to the payment in full without diminution
or modification by such plan of all Senior Indebtedness), shall be
received by the Trustee or the Holders of the Subordinated
Securities on account of principal of or interest on the
Subordinated Securities before all Senior Indebtedness is paid in
full, or effective provision made for its payment, such payment or
distribution (subject to the provisions of Section 12.6 and 12.7)
shall be received and held in trust for and shall be paid over to
the holders of the Senior Indebtedness remaining unpaid or
unprovided for or their representative, or to the trustee under
any indenture under which such Senior Indebtedness may have been
issued (pro rata as provided in subsection (b) above), for
application to the payment of such Senior Indebtedness until all
such Senior Indebtedness shall have been paid in full, after
giving effect to any concurrent payment or distribution or
provision therefor to the holders of such Senior Indebtedness.
The Issuer shall give prompt written notice to the Trustee
of any dissolution, winding up, liquidation or reorganization of the
Issuer.
The consolidation of the Issuer with, or the merger of the
Issuer into, another corporation or the liquidation or dissolution of the
Issuer following the conveyance or transfer of its property as an
entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided for in Article Nine hereof shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section 12.3 if such other corporation shall, as a part
of such consolidation, merger, conveyance or transfer, comply with the
conditions stated such in Article Nine.
Section 12.4 Holders of Subordinated Securities to be
Subrogated to Right of Holders of Senior Indebtedness. Subject to the
payment in full of all Senior Indebtedness, the Holders of Subordinated
Securities shall be subrogated to the rights of the holders of Senior
Indebtedness to receive payments or distributions of assets of the Issuer
applicable to the Senior Indebtedness until all amounts owing on
Subordinated Securities shall be paid in full, and for the purposes of
such subrogation no payments or distributions to the holders of the Senior
Indebtedness by or on behalf of the Issuer or by or on behalf of the
Holders of Subordinated Securities by virtue of this Article Twelve which
otherwise would have been made to the Holders of Subordinated Securities
shall, as between the Issuer, its creditors other than holders of Senior
Indebtedness and the Holders of Subordinated Securities, be deemed to be
payment by the Issuer to or on account of the Senior Indebtedness, it
being understood that the provisions of this Article Twelve are and are
intended solely for the purpose of defining the relative rights of the
Holders of the Subordinated Securities, on the one hand, and the holders
of the Senior Indebtedness, on the other hand.
Section 12.5 Obligation of the Issuer Unconditional.
Nothing contained in this Article Twelve or elsewhere in this Indenture or
in any Subordinated Security is intended to or shall impair, as among the
Issuer, its creditors other than holders of Senior Indebtedness and the
Holders of Subordinated Securities, the obligation of the Issuer, which is
absolute and unconditional, to pay to the Holders of Subordinated
Securities the principal of, and interest on, Subordinated Securities as
and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the
Holders of Subordinated Securities and creditors of the Issuer other than
the holders of the Senior Indebtedness, nor shall anything herein or
therein prevent the Trustee or the Holder of any Subordinated Security
from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture, subject to the rights, if any, under this
Article Twelve of the holders of Senior Indebtedness in respect of cash,
property or securities of the Issuer received upon the exercise of any
such remedy. Upon any payment or distribution of assets of the Issuer
referred to in this Article Twelve, the Trustee and Holders of
Subordinated Securities shall be entitled to rely upon any order or decree
made by any court of competent jurisdiction in which such dissolution,
winding up, liquidation or reorganization proceedings are pending, or,
subject to the provisions of Section 6.1 and 6.2, a certificate of the
receiver, trustee in bankruptcy, liquidating trustee or agent or other
Person making such payment or distribution to the Trustee or the Holders
of Subordinated Securities, for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of the Senior
Indebtedness and other indebtedness of the Issuer, the amount thereof or
payable thereon, the amount or amounts paid or distributed therein and all
other facts pertinent thereto or to this Article Twelve.
Nothing contained in this Article Twelve or elsewhere in
this Indenture or in any Subordinated Security is intended to or shall
affect the obligation of the Issuer to make, or prevent the Issuer from
making, at any time except during the pendency of any dissolution, winding
up, liquidation or reorganization proceeding, and, except as provided in
subsections (a) and (b) of Section 12.2, payments at any time of the
principal of, or interest on Subordinated Securities.
Section 12.6 Trustee Entitled to Assume Payments Not
Prohibited in Absence of Notice. The Issuer shall give prompt written
notice to the Trustee of any fact known to the Issuer which would prohibit
the making of any payment or distribution to or by the Trustee in respect
of the Subordinated Securities. Notwithstanding the provisions of this
Article Twelve or any provision of this Indenture, the Trustee shall not
at any time be charged with knowledge of the existence of any facts which
would prohibit the making of any payment or distribution to or by the
Trustee, unless at least two Business Days prior to the making of any such
payment, the Trustee shall have received written notice thereof from the
Issuer or from one or more holders of Senior Indebtedness or from any
representative thereof or from any trustee therefor, together with proof
satisfactory to the Trustee of such holding of Senior Indebtedness or of
the authority of such representative or trustee; and, prior to the receipt
of any such written notice, the Trustee, subject to the provisions of
Sections 6.1 and 6.2, shall be entitled to assume conclusively that no
such facts exist. The Trustee shall be entitled to rely on the delivery
to it of a written notice by a Person representing himself to be a holder
of Senior Indebtedness (or a representative or trustee on behalf of the
holder) to establish that such notice has been given by a holder of Senior
Indebtedness (or a representative of or trustee on behalf of any such
holder). In the event that the Trustee determines, in good faith, that
further evidence is required with respect to the right of any Person as a
holder of Senior Indebtedness to participate in any payments or
distribution pursuant of this Article Twelve, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Indebtedness held by such Person, as to the
extent to which such Person is entitled to participate in such payment or
distribution, and as to other facts pertinent to the rights of such Person
under this Article Twelve, and if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment. The
Trustee, however, shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness and nothing in this Article Twelve shall
apply to claims of, or payments to, the Trustee under or pursuant to
Section 6.6.
Section 12.7 Application by Trustee of Monies or
Government Obligations Deposited with It. Money or Government obligations
deposited in trust with the Trustee pursuant to and in accordance with
Section 10.1 shall be for the sole benefit of Securityholders and, to the
extent allocated for the payment of Subordinated Securities, shall not be
subject to the subordination provisions of this Article Twelve, if the
same are deposited in trust prior to the happening of any event specified
in Section 12.2. Otherwise, any deposit of monies or Government
Obligations by the Issuer with the Trustee or any paying agent (whether or
not in trust) for the payment of the principal of, or interest on any
Subordinated Securities shall be subject to the provisions of
Section 12.1, 12.2 and 12.3 except that, if prior to the date on which by
the terms of this Indenture any such monies may become payable for any
purposes (including, without limitation, the payment of the principal of,
or the interest, if any, on any Subordinated Security) the Trustee shall
not have received with respect to such monies the notice provided for in
Section 12.6, then the Trustee or the paying agent shall have full power
and authority to receive such monies and Government Obligations and to
apply the same to the purpose for which they were received, and shall not
be affected by any notice to the contrary which may be received by it on
or after such date. This Section 12.7 shall be construed solely for the
benefit of the Trustee and paying agent and, as to the first sentence
hereof, the Securityholders, and shall not otherwise effect the rights of
holders of Senior Indebtedness.
Section 12.8 Subordination Rights Not Impaired by Acts or
Omissions of Issuer or Holders of Senior Indebtedness. No rights of any
present or future holders of any Senior Indebtedness to enforce
subordination as provided herein shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the
Issuer or by any act or failure to act, in good faith, by any such holders
or by any noncompliance by the Issuer with the terms of this Indenture,
regardless of any knowledge thereof which any such holder may have or be
otherwise charged with.
Without in any way limiting the generality of the
foregoing paragraph, the holders of Senior Indebtedness of the Issuer may,
at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Subordinated Securities, without incurring
responsibility to the Holders of the Subordinated Securities and without
impairing or releasing the subordination provided in this Article Twelve
or the obligations hereunder of the Holders of the Subordinated Securities
to the holders of such Senior Indebtedness, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, such Senior Indebtedness, or
otherwise amend or supplement in any manner such Senior Indebtedness or
any instrument evidencing the same or any agreement under which such
Senior Indebtedness is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing
such Senior Indebtedness; (iii) release any Person liable in any manner
for the collection for such Senior Indebtedness; and (iv) exercise or
refrain from exercising any rights against the Issuer, as the case may be,
and any other Person.
Section 12.9 Securityholders Authorize Trustee to
Effectuate Subordination of Securities. Each Holder of Subordinated
Securities by his acceptance thereof authorizes and expressly directs the
Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article
Twelve and appoints the Trustee his attorney-in-fact for such purpose,
including in the event of any dissolution, winding up, liquidation or
reorganization of the Issuer (whether in bankruptcy, insolvency or
receivership proceedings or upon an assignment for the benefit of
creditors or otherwise) the immediate filing of a claim for the unpaid
balance of his Subordinated Securities in the form required in said
proceedings and causing said claim to be approved. If the Trustee does
not file a proper claim or proof of debt in the form required in such
proceeding prior to 30 days before the expiration of the time to file such
claim or claims, then the holders of Senior Indebtedness have the right to
file and are hereby authorized to file an appropriate claim for and on
behalf of the Holders of said Securities.
Section 12.10 Right of Trustee to Hold Senior
Indebtedness. The Trustee in its individual capacity shall be entitled to
all of the rights set forth in this Article Twelve in respect of any
Senior Indebtedness at any time held by it to the same extent as any other
holder of Senior Indebtedness, and nothing in this Indenture shall be
construed to deprive the Trustee of any of its rights as such holder.
With respect to the holders of Senior Indebtedness of the
Issuer, the Trustee undertakes to perform or to observe only such of its
covenants and obligations as are specifically set forth in this Article
Twelve, and no implied covenants or obligations with respect to the
holders of such Senior Indebtedness shall be read into this Indenture
against the Trustee. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of such Senior Indebtedness and, subject to the
provisions of Sections 12.2 and 12.3, the Trustee shall not be liable to
any holder of such Senior Indebtedness if it shall pay over or deliver to
Holders of Subordinated Securities, the Issuer or any other Person money
or assets to which any holder of such Senior Indebtedness shall be
entitled by virtue of this Article Twelve or otherwise.
Section 12.11 Article Twelve Not to Prevent Events of
Defaults. The failure to make a payment on account of principal or
interest by reason of any provision in this Article Twelve shall not be
construed as preventing the occurrence of an Event of Default under
Section 5.1.
ARTICLE THIRTEEN
MISCELLANEOUS PROVISIONS
Section 13.1 Incorporators, Stockholders, Officers and
Directors of Issuer Exempt from Individual Liability. No recourse under
or upon any obligation, covenant or agreement contained in this Indenture
or in any Security, or because of any indebtedness evidenced thereby,
shall be had against any incorporator, as such, or against any past,
present or future stockholder, officer or director, as such, of the Issuer
or of any successor, either directly or through the Issuer or any
successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and
released by the acceptance of the Securities appertaining thereto by the
Holders thereof and as part of the consideration for the issue of the
Securities appertaining thereto.
Section 13.2 Provisions of Indenture for the Sole Benefit
of Parties and Holders of Securities. Nothing in this Indenture, in the
Securities expressed or implied, shall give or be construed to give to any
Person other than the parties hereto and their successors and the Holders
of the Securities, any legal or equitable right, remedy or claim under
this Indenture or under any covenant or provision herein contained, all
such covenants and provisions being for the sole benefit of the parties
hereto and their successors and of the Holders of the Securities.
Notwithstanding the foregoing, for so long as any Trust Securities remain
outstanding, the Issuer's obligations under this Indenture will also be
for the benefit of the holders of such Trust Securities, and the Issuer
acknowledges and agrees that such holders will be entitled to enforce
certain payment obligations under the Securities directly against the
Issuer to the extent provided in Sections 5(b) and 6(c) of Annex I of the
Declaration dated January 18, 1996.
Section 13.3 Successors and Assigns of Issuer Bound by
Indenture. All the covenants, stipulations, promises and agreements in
this Indenture made by or on behalf of the Issuer shall bind its
successors and assigns, whether so expressed or not.
Section 13.4 Notices and Demands on Issuer, Trustee and
Holders of Securities. Any notice, direction, request or demand which by
any provision of this Indenture is required or permitted to be given or
served by the Trustee or by any Holder of Securities of any series or upon
the Issuer shall be deemed to have been sufficiently given or served by
being deposited postage prepaid in the United States mail, first-class
mail (except as otherwise specifically provided herein), addressed (until
another address of the Issuer is filed by the Issuer with the Trustee) to
Consumers Power Company, 000 Xxxx Xxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxx
00000, Attention: Secretary. Any notice, direction, request or demand by
the Issuer or any Holder of Securities of any series or upon the Trustee
shall be deemed to have been sufficiently given or served by being
deposited postage prepaid in the United States mail, first-class mail
(except as otherwise specifically provided herein), addressed (until
another address of the Trustee is filed by the Trustee with the Issuer) to
The Bank of New York, 000 Xxxxxxx, 00X, Xxx Xxxx, Xxx Xxxx 00000, ATTN:
Corporate Trust, Trustee Administration. Any notice required or permitted
to be given or served by the Issuer or by the Trustee to or upon any
Holders of Securities of any series shall be deemed to have been
sufficiently given or served by being deposited in the United States mail,
first-class mail (except as otherwise specifically provided herein),
addressed at their addresses as they shall appear on the Security
Register.
In any case where notice to the Holders of Securities is
given by mail, neither the failure to mail such notice, nor any defect in
any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
In case, by reason of the suspension of or irregularities
in regular mail service or by reason of any other cause, it shall be
impracticable to mail notice when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be reasonably satisfactory to the Trustee shall be
deemed to be a sufficient giving of such notice.
Section 13.5 Officers' Certificates and Opinions of
Counsel; Statements to be Contained Therein. Except as otherwise
expressly provided by this Indenture, upon any application or demand by
the Issuer to the Trustee to take any action under any of the provisions
of this Indenture, the Issuer shall furnish to the Trustee an Officers'
Certificate stating that all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with and
an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the
case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture
relating to such particular application or demand, no additional
certificate or opinion need be furnished.
Each certificate or opinion provided for in this Indenture
and delivered to the Trustee with respect to compliance with a condition
or covenant provided for in this Indenture (other than certificates
provided pursuant to Section 4.3(d) or Section 11.5) shall include (a) a
statement that the 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
such individual, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or
not such covenant or condition has been complied with and (d) a statement
as to whether or not, in the opinion of such individual, such condition or
covenant has been complied with.
Any certificate, statement or opinion of an officer of the
Issuer may be based, insofar as it relates to legal matters, upon a
certificate or opinion of or representations by counsel, unless such
officer knows that the certificate or opinion of or representations with
respect to the matters upon which his certificate, statement or opinion
may be based as aforesaid are erroneous, or in the exercise of reasonable
care should know that the same are erroneous. Any such certificate,
statement or Opinion of Counsel may be based, insofar as it relates to
factual matters, on information with respect to which is in the possession
of the Issuer, upon the certificate, statement or opinion of or
representations by an officer or officers of the Issuer, unless such
counsel knows that the certificate, statement or opinion or
representations with respect to the matters upon which his certificate,
statement or opinion may be based as aforesaid are erroneous, or in the
exercise of reasonable care should know that the same are erroneous.
Any certificate, statement or opinion of an officer of the
Issuer or of counsel may be based, insofar as it relates to accounting
matters, upon a certificate or opinion of or representations by an
accountant or firm of accountants in the employ of the Issuer, unless such
officer or counsel, as the case may be, knows that the certificate or
opinion or representations with respect to the accounting matters upon
which his certificate, statement or opinion may be based as aforesaid are
erroneous, or in the exercise of reasonable care should know that the same
are erroneous.
Any certificate or opinion of any independent firm of
public accountants filed with and directed to the Trustee shall contain a
statement that such firm is independent.
Section 13.6 Payments Due on Saturdays, Sundays and
Holidays. If the date of maturity of interest on or principal of the
Securities of any series or the date fixed for redemption or repayment of
any such Security shall not be a Business Day, then (notwithstanding any
other provision of this Indenture or of the Securities) payment of such
interest or principal need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made
on the date of maturity or the date fixed for redemption or repayment, and
no interest shall accrue for the period from and after such date except
that, if such Business Day is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day, in each
case with the same force and effect as if made on such date.
Section 13.7 Conflict of any Provision of Indenture with
Trust Indenture Act of 1939. If and to the extent that any provision of
this Indenture limits, qualifies or conflicts with any provision set forth
in Sections 310 to 317, inclusive, of the Trust Indenture Act of 1939,
that impose duties on any person, such provision of the Trust Indenture
Act of 1939 shall control.
Section 13.8 Governing Law. This Indenture and each
Security shall be governed by and deemed to be a contract under, and
construed in accordance with, the laws of the State of Michigan, and for
all purposes shall be construed in accordance with the laws of such State,
except as may otherwise be required by mandatory provisions of law,
provided, however, that the rights, duties and obligations of the Trustee
are governed and construed in accordance with the laws of the State of New
York.
Section 13.9 Counterparts. This Indenture may be
executed in any number of counterparts, each of which shall be an
original; but such counterparts shall together constitute but one and the
same instrument.
Section 13.10 Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.
Section 13.11 Separability Clause. In case any provision
in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above
written.
Consumers Power Company
By /s/ A.M. Xxxxxx
-------------------------------
Xxxx X. Xxxxxx
Title: Senior Vice President
and Chief Financial Officer
[CORPORATE SEAL]
Attest:
By /s/ Xxxxx X. Xxxxxx
--------------------------
Title: Assistant Secretary
THE BANK OF NEW YORK,TRUSTEE
By /s/ Xxxx X. Xxxxxxxxx
--------------------------------
Title: Assistant Treasurer
[CORPORATE SEAL]
Attest:
By /s/ Xxxx Xx Xxxxxx
--------------------------
Title: Xxxx Xx Xxxxxx
Assistant Vice President
STATE OF MICHIGAN )
)ss.
COUNTY OF XXXXX )
On the 18th day of January, 1996, before me personally came Xxxx X.
Xxxxxx, to me known, who, being by me duly sworn, did depose and say that
he resides at Ann Arbor, Michigan; that he is Senior Vice President and
Chief Financial Officer of Consumers Power Company, one of the
corporations described in and which executed the foregoing instrument;
that he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate; that it was so affixed by authority of the
Board of Directors of said corporation; and that he signed his name
thereto by like authority.
[Notarial Seal]
/s/ Xxxxxx Xxx Xxxxx
--------------------------------------
Xxxxxx Xxx Xxxxx
Notary Public, Xxxxx County, Michigan
My Commission Expires: April 23, 1996
STATE OF )
)ss.
COUNTY OF )
On the 22nd day of January, 1996, before me personally came Xxxx X.
Xxxxxxxxx, to me known, who, being by me duly sworn, did depose and say
that he resides at 000 Xxxxxxxx Xxxxxx, Xxxxxxx, X.X., that he is an
Assistant Treasurer of the Bank of New York, one of the corporations
described in and which executed the foregoing instrument; that he knows
the seal of said corporation; that the seal affixed to said instrument is
such corporate; that it was so affixed by authority of the Board of
Directors of said corporation; and that he signed his name thereto by like
authority.
[Notarial Seal]
/s/ Xxxxxxx X. Xxxxxxx
--------------------------------
Notary Public,
My Commission Expires:
Xxxxxxx X. Xxxxxxx
Notary Public, State of New York
NO. 01CA5027729
Qualified in Bronx County
Certificate Filed in New York County
Commission Expires May 16, 1996
====================================
FIRST SUPPLEMENTAL INDENTURE
between
CONSUMERS POWER COMPANY
and
THE BANK OF NEW YORK
Dated as of January 18, 1996
====================================
TABLE OF CONTENTS
Page
ARTICLE I.
DEFINITIONS
SECTION 1.1. Definition of Terms. . . . . . . . . . . . . . . . . 1
ARTICLE II.
GENERAL TERMS AND CONDITIONS OF THE NOTES
SECTION 2.1. Designation and Principal Amount . . . . . . . . . . 3
SECTION 2.2. Maturity . . . . . . . . . . . . . . . . . . . . . . 3
SECTION 2.3. Form and Payment . . . . . . . . . . . . . . . . . . 3
SECTION 2.4. Global Note. . . . . . . . . . . . . . . . . . . . . 3
SECTION 2.5. Interest . . . . . . . . . . . . . . . . . . . . . . 4
ARTICLE III.
REDEMPTION OF THE NOTES
SECTION 3.1. Special Event Redemption . . . . . . . . . . . . . . 5
SECTION 3.2. Optional Redemption by Issuer. . . . . . . . . . . . 5
SECTION 3.3. No Sinking Fund. . . . . . . . . . . . . . . . . . . 6
ARTICLE IV.
EXTENSION OF INTEREST PAYMENT PERIOD
SECTION 4.1. Extension of Interest Payment Period . . . . . . . . 6
SECTION 4.2. Notice of Extension. . . . . . . . . . . . . . . . . 6
ARTICLE V.
EXPENSES
SECTION 5.1. Payment of Expenses. . . . . . . . . . . . . . . . . 7
SECTION 5.2. Payment Upon Resignation or Removal. . . . . . . . . 7
ARTICLE VI.
SUBORDINATION
SECTION 6.1. Agreement to Subordinate . . . . . . . . . . . . . . 8
ARTICLE VII.
COVENANT TO LIST ON EXCHANGE
SECTION 7.1. Listing on an Exchange . . . . . . . . . . . . . . . 8
ARTICLE VIII.
FORM OF NOTES
SECTION 8.1. Form of Note . . . . . . . . . . . . . . . . . . . . 8
ARTICLE IX.
ORIGINAL ISSUE OF NOTES
SECTION 9.1. Original Issue of Notes. . . . . . . . . . . . . . . 13
ARTICLE X.
MISCELLANEOUS
SECTION 10.1 Ratification of Indenture. . . . . . . . . . . . . . 13
SECTION 10.2. Trustee Not Responsible for Recitals . . . . . . . . 13
SECTION 10.3. Governing Law. . . . . . . . . . . . . . . . . . . . 14
SECTION 10.4. Separability . . . . . . . . . . . . . . . . . . . . 14
SECTION 10.5. Counterparts . . . . . . . . . . . . . . . . . . . . 14
FIRST SUPPLEMENTAL INDENTURE, dated as of January 18, 1996,
(the "First Supplemental Indenture"), between Consumers Power Company, a
Michigan Corporation (the "Issuer"), and The Bank of New York, as trustee
(the "Trustee") under the Indenture dated as of January 1, 1996 between
the Issuer and the Trustee (the "Indenture").
WHEREAS, the Issuer executed and delivered the Indenture to
the Trustee to provide for the future issuance of the Issuer's Securities
to be issued from time to time in one or more series as might be
determined by the Issuer under the Indenture, in an unlimited aggregate
principal amount which may be authenticated and delivered as provided in
the Indenture;
WHEREAS, Section 2.3 of the Indenture permits the terms of any
series of Securities to be established in an indenture supplemental to the
Indenture;
WHEREAS, Section 8.1(e) of the Indenture provides that a
supplemental indenture may be entered into by the Issuer and the Trustee
without the consent of any Holders of the Securities to establish the form
and terms of the Securities of any series.
WHEREAS, pursuant to the terms of the Indenture, the Issuer
desires to provide for the establishment of a new series of its Securities
to be known as its 8.36% Subordinated Deferrable Interest Notes due 2015
(the "Notes"), the form and substance of such Notes and the terms,
provisions and conditions thereof to be set forth as provided in the
Indenture and this First Supplemental Indenture;
WHEREAS, Consumers Power Company Financing I, a Delaware
statutory business trust (the "Trust"), has offered to the public $100
million aggregate liquidation amount of its 8.36% Trust Originated
Preferred Securities (the "Preferred Securities"), representing undivided
beneficial interests in the assets of the Trust and proposes to invest the
proceeds from such offering, together with the proceeds of the issuance
and sale by the Trust to the Issuer of $3,092,800 aggregate liquidation
amount of its 8.36% Trust Originated Common Securities, in $103,092,800
aggregate principal amount of the Notes; and
WHEREAS, the Issuer has requested that the Trustee execute and
deliver this First Supplemental Indenture and all requirements necessary
to make this First Supplemental Indenture a valid instrument in accordance
with its terms, and to make the Notes, when executed by the Issuer and
authenticated and delivered by the Trustee, the valid obligations of the
Issuer, have been performed, and the execution and delivery of this First
Supplemental Indenture has been duly authorized in all respects.
NOW THEREFORE, in consideration of the purchase and acceptance
of the Notes by the Holders thereof, and for the purpose of setting forth,
as provided in the Indenture, the form and substance of the Notes and the
terms, provisions and conditions thereof, the Issuer covenants and agrees
with the Trustee as follows:
ARTICLE I.
DEFINITIONS
SECTION 1.1. Definition of Terms.
Unless the context otherwise requires:
(a) a term defined in the Indenture has the same meaning
when used in this First Supplemental Indenture;
(b) a term defined anywhere in this First Supplemental
Indenture has the same meaning throughout;
(c) the singular includes the plural and vice versa;
(d) a reference to a Section or Article is to a Section or
Article of this First Supplemental Indenture;
(e) headings are for convenience of reference only and do
not affect interpretation;
(f) the following terms have the meanings given to them in
the Declaration: (i) Clearing Agency; (ii) Delaware Trustee;
(iii) Redemption Tax Opinion; (iv) No Recognition Opinion; (v) Preferred
Security Certificate; (vi) Property Trustee; (vii) Regular Trustees;
(viii) Special Event; (ix) Tax Event; (x) Underwriting Agreement;
(xi) Investment Company Event; and (xii) Distribution;
(g) the following terms have the meanings given to them in
this Section 1.1(g):
"Additional Interest" shall have the meaning set forth in
Section 2.5.
"Compounded Interest" shall have the meaning set forth in
Section 4.1.
"Coupon Rate" shall have the meaning set forth in Section 2.5.
"Declaration" means the Amended and Restated Declaration of
Trust of Consumers Power Company Financing I, a Delaware statutory
business trust, dated as of January 18, 1996.
"Deferred Interest" shall have the meaning set forth in
Section 4.1.
"Dissolution Event" means that, as a result of the occurrence
and continuation of a Special Event, the Trust is to be dissolved in
accordance with the Declaration, and the Notes held by the Property
Trustee are to be distributed to the holders of the Trust Securities
issued by the Trust pro rata in accordance with the Declaration.
"Extended Interest Payment Period" shall have the meaning set
forth in Section 4.1.
"Global Note" shall have the meaning set forth in Section 2.4.
"Non Book-Entry Preferred Securities" shall have the meaning
set forth in Section 2.4.
"Optional Redemption Price" shall have the meaning set forth
in Section 3.2.
ARTICLE II.
GENERAL TERMS AND CONDITIONS OF THE NOTES
SECTION 2.1. Designation and Principal Amount.
There is hereby authorized and established a series of
unsecured Securities designated the "8.36% Subordinated Deferrable
Interest Notes due 2015", limited in aggregate principal amount to
$103,092,800, (except as contemplated in Section 2(f)(2) of the
Indenture).
SECTION 2.2. Maturity.
The Maturity Date of the notes is December 31, 2015.
SECTION 2.3. Form and Payment.
The Notes shall be issued in fully registered form without
interest coupons. Principal and interest on the Notes issued in
certificated form will be payable, the transfer of such Notes will be
registrable and such Notes will be exchangeable for Notes bearing
identical terms and provisions, at the office or agency of the Trustee in
the Borough of Manhattan, the City of New York; provided, however, that
payment of interest may be made at the option of the Issuer by check
mailed to the Holder at such address as shall appear in the Security
Register or by wire transfer to an account maintained by the Holder.
Notwithstanding the foregoing, so long as the Holder of any Notes is the
Property Trustee, the payment of the principal of and interest (including
Compounded Interest and Additional Interest, if any) on such Notes held by
the Property Trustee will be made at such place and to such account as may
be designated by the Property Trustee.
SECTION 2.4. Global Note.
(a) In connection with a Dissolution Event,
(i) the Notes may be presented to the Trustee by the
Property Trustee in exchange for a global Note in an aggregate
principal amount equal to the aggregate principal amount of all
outstanding Notes (a "Global Note"), to be registered in the name of
the Clearing Agency, or its nominee, and delivered by the Trustee to
the Clearing Agency for crediting to the accounts of its participants
pursuant to the instructions of the Regular Trustees and the Clearing
Agency will act as Depository for the Notes. The Issuer upon any
such presentation, shall execute a Global Note in such aggregate
principal amount and deliver the same to the Trustee for
authentication and delivery in accordance with the Indenture and this
First Supplemental Indenture. Payments on the Notes issued as a
Global Note will be made to the Depositary; and
(ii) if any Preferred Securities are held in non book-
entry certificated form, the Notes may be presented to the Trustee by
the Property Trustee and any Preferred Security Certificate which
represents Preferred Securities other than Preferred Securities held
by the Clearing Agency or its nominee ("Non Book-Entry Preferred
Securities") will be deemed to represent beneficial interests in
Notes presented to the Trustee by the Property Trustee having an
aggregate principal amount equal to the aggregate liquidation amount
of the Non Book-Entry Preferred Securities until such Preferred
Security Certificates are presented to the Security Registrar for
transfer or reissuance at which time such Preferred Security
Certificates will be cancelled and a Note, registered in the name of
the holder of the Preferred Security Certificate or the transferee of
the holder of such Preferred Security Certificate, as the case may
be, with an aggregate principal amount equal to the aggregate
liquidation amount of the Preferred Security Certificate cancelled,
will be executed by the Issuer and delivered to the Trustee for
authentication and delivery in accordance with the Indenture and this
First Supplemental Indenture.
(b) Except as provided in (c) below, a Global Note may be
transferred, in whole but not in part, only to another nominee of the
Depositary, or to a successor Depositary selected or approved by the
Issuer or to a nominee of such successor Depositary.
(c) If at any time the Depositary notifies the Issuer that
it is unwilling or unable to continue as Depositary or if at any time the
Depositary for such series shall no longer be registered or in good
standing under the Securities Exchange Act of 1934, as amended, or other
applicable statute or regulation, and a successor Depositary for such
series is not appointed by the Issuer within 90 days after the Issuer
receives such notice or becomes aware of such condition, as the case may
be, the Issuer will execute, and, subject to Section 2.8 of the Indenture,
the Trustee, upon written notice from the Issuer, will authenticate and
deliver the Notes in definitive registered form, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Note in exchange for such Global Note. In addition,
the Issuer may at any time determine that the Notes shall no longer be
represented by a Global Note. In such event the Issuer will execute, and
subject to Section 2.8 of the Indenture, the Trustee, upon receipt of an
Officers' Certificate evidencing such determination by the Issuer, will
authenticate and deliver the Notes in definitive registered form, in
authorized denominations, and in an aggregate principal amount equal to
the principal amount of the Global Note in exchange for such Global Note.
Upon the exchange of the Global Note for such Notes in definitive
registered form, in authorized denominations, the Global Note shall be
cancelled by the Trustee. Such Notes in definitive registered form issued
in exchange for the Global Note shall be registered in such names and in
such authorized denominations as the Depositary, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the
Trustee. The Trustee shall deliver such Notes to the Depositary for
delivery to the Persons in whose names such Notes are so registered.
SECTION 2.5. Interest.
(a) Each Note will bear interest at the rate of 8.36% per
annum (the "Coupon Rate") from the original date of issuance until the
principal thereof becomes due and payable, and on any overdue principal
and (to the extent that payment of such interest is enforceable under
applicable law) on any overdue installment of interest, at the Coupon
Rate, compounded quarterly, payable (subject to the provisions of
Article IV) quarterly in arrears on March 31, June 30, September 30 and
December 31 of each year (each, an "Interest Payment Date," commencing on
March 31, 1996), to the Person in whose name such Note or any predecessor
Note is registered, at the close of business on the regular record date
for such interest installment, which, in respect of any Notes of which the
Property Trustee is the Holder or a Global Note, shall be the close of
business on the Business Day next preceding that Interest Payment Date.
Notwithstanding the foregoing sentence, if the Preferred Securities are no
longer in book-entry only form or, except if the Notes are held by the
Property Trustee, the Notes are not represented by a Global Note, the
regular record date for such interest installment shall be the fifteenth
day of the month in which the applicable Interest Payment Date occurs.
(b) The amount of interest payable for any period will be
computed on the basis of a 360-day year of twelve 30-day months. Except
as provided in the following sentence, the amount of interest payable for
any period shorter than a full quarterly period for which interest is
computed, will be computed on the basis of the actual number of days
elapsed in such a 90-day period. In the event that any date on which
interest is payable on the Notes is not a Business Day, then payment of
interest payable on such date will be made on the next succeeding day
which is a Business Day (and without any interest or other payment in
respect of any such delay), except that, if such Business Day is in the
next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and
effect as if made on such date.
(c) If, at any time while the Property Trustee is the Holder
of any Notes, the Trust or the Property Trustee is required to pay any
taxes, duties, assessments or governmental charges of whatever nature
(other than withholding taxes) imposed by the United States, or any other
taxing authority, then, in any case, the Issuer will pay as additional
interest ("Additional Interest") on the Notes held by the Property
Trustee, such additional amounts as shall be required so that the net
amounts received and retained by the Trust and the Property Trustee after
paying such taxes, duties, assessments or other governmental charges will
be equal to the amounts the Trust and the Property Trustee would have
received had no such taxes, duties, assessments or other governmental
charges been imposed.
ARTICLE III.
REDEMPTION OF THE NOTES
SECTION 3.1. Special Event Redemption.
If (a) a Tax Event has occurred and is continuing and (i) the
Issuer has received a Redemption Tax Opinion, or (ii) The Regular Trustees
shall have been informed by tax counsel that a No Recognition Opinion
cannot be delivered to the Trust, or (b) an Investment Company Event has
occurred and is continuing, then, notwithstanding Section 3.2(a) but
subject to Section 3.2(b) and Article Eleven of the Indenture, the Issuer
shall have the right upon not less than 30 days' nor more than 60 days'
notice to the Holders of the Notes to redeem the Notes, in whole or in
part, for cash within 90 days' following the occurrence of such Special
Event (the "90 Day Period") at a redemption price equal to 100% of the
principal amount to be redeemed plus any accrued and unpaid interest
thereon to the date of such redemption (the "Redemption Price"), provided
that if at the time there is available to the Issuer or the Trust the
opportunity to eliminate, within the 90 Day Period, the Special Event by
taking some ministerial action ("Ministerial Action"), such as filing a
form or making an election, or pursuing some other similar reasonable
measure which has no adverse effect on the Issuer, the Trust or the
Holders of the Trust Securities issued by the Trust, the Issuer shall
pursue such Ministerial Action in lieu of redemption, and, provided,
further, that the Issuer shall have no right to redeem the Notes while the
Trust is pursuing any Ministerial Action pursuant to its obligations under
the Declaration. The Redemption Price shall be paid prior to 12:00 noon,
New York time, on the date of such redemption or such earlier time as the
Issuer determines, and the Issuer shall deposit with the Trustee an amount
sufficient to pay the Redemption Price by 10:00 a.m., New York time, on
the date such Redemption Price is to be paid.
SECTION 3.2. Optional Redemption by Issuer.
(a) Subject to the provisions of Section 3.2(b) and to the
provisions of Article Eleven of the Indenture, the Issuer shall have the
right to redeem the Notes, in whole or in part, from time to time, on or
after December 31, 2000, at a redemption price equal to 100% of the
principal amount to be redeemed plus any accrued and unpaid interest
thereon to the date of such redemption (the "Optional Redemption Price").
Any redemption pursuant to this paragraph will be made upon not less than
30 days' nor more than 60 days' notice to the Holder of the Notes, at the
Optional Redemption Price. If the Notes are only partially redeemed
pursuant to this Section 3.2, the Notes will be redeemed on a pro rata
basis provided that if at the time of redemption the Notes are registered
as a Global Note, the Depository shall determine, in accordance with its
procedures, the principal amount of such Notes held by each Holder of
Notes to be redeemed. The Optional Redemption Price shall be paid prior
to 12:00 noon, New York time, on the date of such redemption or at such
earlier time as the Issuer determines and the Issuer shall deposit with
the Trustee an amount sufficient to pay the Optional Redemption Price by
10:00 a.m., New York time, on the date such Optional Redemption Price is
to be paid.
(b) If a partial redemption of the Notes would result in the
delisting of the Preferred Securities from any national securities
exchange or other organization on which the Preferred Securities are then
listed, the Issuer shall not be permitted to effect such partial
redemption and may only redeem the Notes in whole.
SECTION 3.3. No Sinking Fund.
The Notes are not entitled to the benefit of any sinking fund.
ARTICLE IV.
EXTENSION OF INTEREST PAYMENT PERIOD
SECTION 4.1. Extension of Interest Payment Period.
The Issuer shall have the right, at any time and from time to
time during the term of the Notes, to defer payments of interest by
extending the interest payment period of such Notes for a period not
exceeding 20 consecutive quarters (the "Extended Interest Payment
Period"), during which Extended Interest Payment Period no interest shall
be due and payable; provided that no Extended Interest Payment Period may
extend beyond the Maturity Date. To the extent permitted by applicable
law, interest, the payment of which has been deferred because of the
extension of the interest payment period pursuant to this Section 4.1,
will bear interest thereon at the Coupon Rate compounded quarterly for
each quarter of the Extended Interest Payment Period ("Compounded
Interest"). At the end of the Extended Interest Payment Period, the
Issuer shall pay all interest accrued and unpaid on the Notes, including
any Additional Interest and Compounded Interest (together, "Deferred
Interest") that shall be payable to the Holders of the Notes in whose
names the Notes are registered in the Security Register on the first
record date after the end of the Extended Interest Payment Period. Prior
to the termination of any Extended Interest Payment Period, the Issuer may
further extend such period, provided that such period together with all
such further extensions thereof shall not exceed 20 consecutive quarters.
Upon the termination of any Extended Interest Payment Period and upon the
payment of all Deferred Interest then due, the Issuer may commence a new
Extended Interest Payment Period, subject to the foregoing requirements.
No interest shall be due and payable during an Extended Interest Payment
Period, except at the end thereof, but the Issuer may prepay at any time
all or any portion of the interest accrued during an Extended Interest
Payment Period.
The limitations set forth in Section 3.5 of the Indenture
shall apply during any Extended Interest Payment Period.
SECTION 4.2. Notice of Extension.
(a) If the Property Trustee is the only registered Holder of
the Notes at the time the Issuer elects an Extended Interest Payment
Period, the Issuer shall give written notice to the Regular Trustees, the
Property Trustee and the Trustee of its election of such Extended Interest
Payment Period one Business Day before the earlier of (i) the next
succeeding date on which Distributions on the Trust Securities issued by
the Trust are payable, or (ii) the date the Trust is required to give
notice of the record date, or the date such Distributions are payable, to
the New York Stock Exchange or other applicable self-regulatory
organization or to holders of the Preferred Securities, but in any event
at least one Business Day before such record date.
(b) If the Property Trustee is not the only Holder of the
Notes at the time the Issuer elects an Extended Interest Payment Period,
the Issuer shall give the Holders of the Notes and the Trustee written
notice of its election of such Extended Interest Payment Period ten
Business Days before the earlier of (i) the next succeeding Interest
Payment Date, or (ii) the date the Issuer is required to give notice of
the record or payment date of such interest payment to the New York Stock
Exchange or other applicable self-regulatory organization or to Holders of
the Notes, but in any event at least 2 Business Days before such record
date.
(c) The quarter in which any notice is given pursuant to
paragraphs (a) or (b) of this Section 4.2 shall be counted as one of the
20 quarters permitted in the maximum Extended Interest Payment Period
permitted under Section 4.1.
ARTICLE V.
EXPENSES
SECTION 5.1. Payment of Expenses.
In connection with the offering, sale and issuance of the
Notes to the Property Trustee and in connection with the sale of the Trust
Securities by the Trust, the Issuer, in its capacity as borrower with
respect to the Notes, shall:
(a) pay all costs and expenses relating to the offering,
sale and issuance of the Notes, including commissions to the underwriters
payable pursuant to the Underwriting Agreement and the Pricing Agreements,
and compensation of the Trustee under the Indenture in accordance with the
provisions of Section 6.6 of the Indenture;
(b) pay all costs and expenses of the Trust (including, but
not limited to, costs and expenses relating to the organization of the
Trust, the offering, sale and issuance of the Trust Securities (including
commissions to the underwriters in connection therewith), the fees and
expenses of the Property Trustee and the Delaware Trustee, the costs and
expenses relating to the operation of the Trust, including without
limitation, costs and expenses of accountants, attorneys, statistical or
bookkeeping services, expenses for printing and engraving and computing or
accounting equipment, paying agent(s), registrar(s), transfer agent(s),
duplicating, travel and telephone and other telecommunications expenses
and costs and expenses incurred in connection with the acquisition,
financing, and disposition of Trust assets);
(c) be primarily liable for any indemnification obligations
arising with respect to the Declaration; and
(d) pay any and all taxes (other than United States
withholding taxes attributable to the Trust or its assets) and all
liabilities, costs and expenses with respect to such taxes of the Trust.
SECTION 5.2. Payment Upon Resignation or Removal.
Upon termination of this First Supplemental Indenture or the
Indenture or the removal or resignation of the Trustee pursuant to Section
6.10 of the Indenture, the Issuer shall pay to the Trustee all amounts
accrued to the date of such termination, removal or resignation. Upon
termination of the Declaration or the removal or resignation of the
Delaware Trustee or the Property Trustee, as the case may be, pursuant to
Section 5.6 of the Declaration, the Issuer shall pay to the Delaware
Trustee or the Property Trustee, as the case may be, all amounts accrued
to the date of such termination, removal or resignation.
ARTICLE VI.
SUBORDINATION
SECTION 6.1. Agreement to Subordinate.
The Issuer covenants and agrees, and each Holder of Notes
issued hereunder, by such Xxxxxx's acceptance thereof likewise covenants
and agrees, that pursuant to Section 2.3(f)(9) of the Indenture all Notes
shall be issued as Subordinated Securities subject to the provisions of
Article Twelve of the Indenture and this Article VI; and each Holder of a
Note by its acceptance thereof accepts and agrees to be bound by such
provisions.
ARTICLE VII.
COVENANT TO LIST ON EXCHANGE
SECTION 7.1. Listing on an Exchange.
In connection with the distribution of the Notes to the
holders of the Preferred Securities upon a Dissolution Event, the Issuer
will use its best efforts to list such Notes on the New York Stock
Exchange or on such other exchange as the Preferred Securities are then
listed.
ARTICLE VIII.
FORM OF NOTES
SECTION 8.1. Form of Note.
The Notes and the Trustee's Certificate of Authentication to
be endorsed thereon are to be substantially in the following forms and the
Notes shall have such additional terms as may be set forth in such form:
(FORM OF FACE OF NOTE)
[IF THE NOTE IS TO BE A GLOBAL NOTES, INSERT - This Note is a
Global Note within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depositary or a nominee of a
Depositary. This Note is exchangeable for Notes registered in the name of
a person other than the Depositary or its nominee only in the limited
circumstances described in the Indenture, and no transfer of this Note
(other than a transfer of this Note as a whole by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary) may be registered except
in limited circumstances.
Unless this Note is presented by an authorized representative
of The Depository Trust Company (00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx) to
the issuer or its agent for registration of transfer, exchange or payment,
and any Note 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.]
No. $
CUSIP NO.
CONSUMERS POWER COMPANY
___% SUBORDINATED DEFERRABLE INTEREST NOTES
DUE 2015
Consumers Power Company, a Michigan corporation (the "Issuer",
which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
______________, or registered assigns, the principal sum of _____________
Dollars ($___________) on _________, ____, and to pay interest on said
principal sum from ____________, 1996, or from the most recent interest
payment date (each such date, an "Interest Payment Date") to which
interest has been paid or duly provided for, quarterly (subject to
deferral as set forth herein) in arrears on March 31, June 30, September
30 and December 31 of each year commencing ___________ at the rate of ___%
per annum until the principal hereof shall have become due and payable,
and on any overdue principal and premium, if any, and (without duplication
and to the extent that payment of such interest is enforceable under
applicable law) on any overdue installment of interest at the same rate
per annum compounded quarterly. The amount of interest payable on any
Interest Payment Date shall be computed on the basis of a 360-day year of
twelve 30-day months. In the event that any date on which interest is
payable on this Note is not a Business Day, then payment of interest
payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or other payment in respect of any
such delay), except that, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding
Business Day, in each case with the same force and effect as if made on
such date. The interest installment so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the person in whose name this Note (or one or more
Predecessor Securities, as defined in said Indenture) is registered at the
close of business on the regular record date for such interest
installment, which shall be the close of business on the business day next
preceding such Interest Payment Date. [IF PURSUANT TO THE PROVISIONS OF
THE INDENTURE THE NOTES ARE NO LONGER REPRESENTED BY A GLOBAL NOTE --
which shall be the close of business on the 15th day of the month in which
such Interest Payment Date occurs.] If and to the extent the Company
shall default in the payment of the interest due on such Interest Payment
Date, interest shall be paid to the person in whose name this Note is
registered at the close of business on a subsequent record date (which
shall not be less than five Business Days prior to the date of payment of
such defaulted interest) established by notice given by mail by or on
behalf of the Company to the Holders of this Note not less than 15 days
preceding such subsequent Record Date. The principal of (and premium, if
any) and the interest on this Note shall be payable at the office or
agency of the Trustee in the Borough of Manhattan, the City of New York
maintained for that purpose in any coin or currency of the United States
of America that at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment of interest may
be made at the option of the Issuer by check mailed to the registered
Holder at such address as shall appear in the Security Register or by wire
transfer to an account maintained by the Holder. Notwithstanding the
foregoing, so long as the Holder of this Note is the Property Trustee, the
payment of the principal of (and premium, if any) and interest on this
Note will be made at such place and to such account as may be designated
by the Property Trustee.
The indebtedness evidenced by this Note is, to the extent
provided in the Indenture, subordinate and junior in right of payment to
the prior payment in full of all Senior Indebtedness, and this Note is
issued subject to the provisions of the Indenture with respect thereto.
Each Holder of this Note, by accepting the same, (a) agrees to and shall
be bound by such provisions, (b) authorizes and directs the Trustee on his
or her behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination so provided and (c) appoints
the Trustee his or her attorney-in-fact for any and all such purposes.
Each Holder hereof, by his or her acceptance hereof, hereby waives all
notice of the acceptance of the subordination provisions contained herein
and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such holder
upon said provisions.
This Note shall not be entitled to any benefit under the
Indenture hereinafter referred to, be valid or become obligatory for any
purpose until the Certificate of Authentication hereon shall have been
signed by or on behalf of the Trustee.
The provisions of this Note are continued on the reverse side
hereof and such continued provisions shall for all purposes have the same
effect as though fully set forth at this place.
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be executed.
Dated:
-----------------
Consumers Power Company
By:
--------------------
Name:
Title:
Attest:
By:
--------------------------
Name:
Title:
(FORM OF CERTIFICATE OF AUTHENTICATION)
CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series of Securities described
in the within-mentioned Indenture.
[ ]
----------------------------
as Trustee
By
------------------------
Authorized Officer
(FORM OF REVERSE OF NOTE)
This Note is one of a duly authorized series of Securities of the
Issuer (herein sometimes referred to as the "Notes"), specified in the
Indenture, all issued or to be issued in one or more series under and
pursuant to an Indenture dated as of _______, 1996, duly executed and
delivered between the Issuer and The Bank of New York, as Trustee (the
"Trustee"), as supplemented by the First Supplemented Indenture dated as
of _______, 1996, between the Issuer and the Trustee (the Indenture as so
supplemented, the "Indenture"), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the
rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Issuer and the Holders of the Notes. By
the terms of the Indenture, the Notes are issuable in series that may vary
as to amount, date of maturity, rate of interest and in other respects as
provided in the Indenture. This series of Notes is limited in aggregate
principal amount as specified in said First Supplemental Indenture.
The Issuer shall have the right to redeem this Note at the option of
the Issuer, without premium or penalty, in whole or in part at any time on
or after ___________, 2000 or at any time in certain circumstances upon
the occurrence of a Special Event, at a redemption price equal to 100% of
the principal amount plus any accrued but unpaid interest, to the date of
such redemption. Any redemption pursuant to this paragraph will be made
upon not less than 30 days nor more than 60 days' notice. If the Notes
are only partially redeemed by the Issuer pursuant to an Optional
Redemption, the Notes will be redeemed pro rata.
In the event of redemption of this Note in part only, a new Note or
Notes of this series for the unredeemed portion hereof will be issued in
the name of the Holder hereof upon the cancellation hereof.
In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Notes may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the
Indenture.
The Indenture contains provisions permitting the Issuer and the
Trustee, with the consent of the Holders of not less than a majority in
aggregate principal amount of the Notes and other Indenture securities of
each series affected at the time Outstanding and affected (voting as one
class), as defined in the Indenture, to execute supplemental indentures
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the
Notes; provided, however, that the Company and the Trustee may not,
without the consent of the Holder of each Note then Outstanding and
affected thereby: (a) change the time of payment of the principal (or any
installment) of any Note, or reduce the principal amount thereof, or
reduce the rate or change the time of payment of interest thereon, or
impair the right to institute suit for the enforcement of any payment on
any Note when due or (b) reduce the percentage in principal amount of the
Notes, the consent of whose Holders is required for any such modification
or for any waiver provided for in the Indenture. The Indenture also
contains provisions providing that prior to the acceleration of the
maturity of any Note or other securities outstanding under the Indenture,
the Holders of a majority in aggregate principal amount of Notes of and
other Securities Outstanding under the Indenture with respect to which a
default or/an Event of Default shall have occurred and be continuing
(voting as one class) may on behalf of the Holders of all such affected
Securities (including the Notes) waive any past default and its
consequences, except a default or an Event of Default in respect of a
covenant or provision of the Indenture or of any Note or other Security
which cannot be modified or amended without the consent of the Holder of
each Note or other Security affected. Any such consent or waiver by the
registered Holder of this Note (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Holder and upon all
future Holders and owners of this Note and of any Note issued in exchange
herefor or in place hereof (whether by registration of transfer or
otherwise), irrespective of whether or not any notation of such consent or
waiver is made upon this Note.
No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Issuer, which
is absolute and unconditional, to pay the principal of and premium, if
any, and interest on this Note at the time and place and at the rate and
in the money herein prescribed.
The Issuer shall have the right at any time during the term of the
Notes and from time to time to extend the interest payment period of such
Notes for up to 20 consecutive quarters (an "Extended Interest Payment
Period"), at the end of which period the Issuer shall pay all interest
then accrued and unpaid (together with interest thereon at the rate
specified for the Notes to the extent that payment of such interest is
enforceable under applicable law). Before the termination of any such
Extended Interest Payment Period, the Issuer may further extend such
Extended Interest Payment Period, provided that such Extended Interest
Payment Period together with all such further extensions thereof shall not
exceed 20 consecutive quarters. At the termination of any such Extended
Interest Payment Period and upon the payment of all accrued and unpaid
interest and any additional amounts then due, the Issuer may commence a
new Extended Interest Payment Period.
As provided in the Indenture and subject to certain limitations
therein set forth, this Note is transferable by the registered Holder
hereof on the Security Register of the Issuer, upon surrender of this Note
for registration of transfer at the office or agency of the Trustee in the
City and State of New York accompanied by a written instrument or
instruments of transfer in form satisfactory to the Issuer or the Trustee
duly executed by the registered Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of authorized
denominations and for the same aggregate principal amount and series will
be issued to the designated transferee or transferees. No service charge
will be made for any such transfer, but the Issuer may require payment of
a sum sufficient to cover any tax or other governmental charge payable in
relation thereto.
Prior to due presentment for registration of transfer of this Note,
the Issuer, the Trustee, any paying agent and the Security Registrar may
deem and treat the registered holder hereof as the absolute owner hereof
(whether or not this Note shall be overdue and notwithstanding any notice
of ownership or writing hereon made by anyone other than the Security
Registrar) for the purpose of receiving payment of or on account of the
principal hereof and premium, if any, and interest due hereon and for all
other purposes, and neither the Issuer nor the Trustee nor any paying
agent nor any Security Registrar shall be affected by any notice to the
contrary.
No recourse shall be had for the payment of the principal of or the
interest on this Note, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future,
as such, of the Issuer or of any predecessor or successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the
issuance hereof, expressly waived and released.
Notes of this series so issued are issuable only in registered form
without coupons in denominations of $25 and any integral multiple thereof.
As provided in the Indenture and subject to certain limitations herein and
therein set forth, Notes of this series so issued are exchangeable for a
like aggregate principal amount of Notes of this series in authorized
denominations, as requested by the Holder surrendering the same.
All terms used in this Note that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
[END OF FORM OF NOTE]
ARTICLE IX.
ORIGINAL ISSUE OF NOTES
SECTION 9.1. Original Issue of Notes.
Notes in the aggregate principal amount of $103,092,800 may, upon
execution of this First Supplemental Indenture, be executed by the Issuer
and delivered to the Trustee for authentication, and the Trustee shall
thereupon authenticate and deliver said Notes to or upon the written order
of the Issuer, in accordance with Section 2.4 of the Indenture.
ARTICLE X.
MISCELLANEOUS
SECTION 10.1 Ratification of Indenture.
The Indenture, as supplemented by this First Supplemental Indenture,
is in all respects ratified and confirmed, and this First Supplemental
Indenture shall be deemed part of the Indenture in the manner and to the
extent herein and therein provided.
SECTION 10.2. Trustee Not Responsible for Recitals.
The recitals herein contained are made by the Issuer and not by the
Trustee, and the Trustee assumes no responsibility for the correctness
thereof. The Trustee makes no representation as to the validity or
sufficiency of this First Supplemental Indenture.
SECTION 10.3. Governing Law.
This First Supplemental Indenture and each Note shall be deemed to be
a contract made under the internal laws of the State of Michigan, and for
all purposes shall be construed in accordance with the laws of said State,
provided, however, that the rights, duties and obligations of the Trustee
are governed and construed in accordance with the laws of the State of New
York.
SECTION 10.4. Separability.
In case any one or more of the provisions contained in this First
Supplemental Indenture or in the Notes shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of
this First Supplemental Indenture or of the Notes, but this First
Supplemental Indenture and the Notes shall be construed as if such invalid
or illegal or unenforceable provision had never been contained herein or
therein.
SECTION 10.5. Counterparts.
This First Supplemental Indenture may be executed in any number of
counterparts each of which shall be an original, but such counterparts
shall together constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed, and their respective corporate
seals to be hereunto affixed and attested, on the date or dates indicated
in the acknowledgements and as of the day and year first above written.
Consumers Power Company
By: /s/ A.M. Xxxxxx
--------------------------
Name: Xxxx X. Xxxxxx
Title: Senior Vice President
and Chief Financial Officer
[Seal]
Attest:
By: /s/ Xxxxx X. Xxxxxx
------------------------------
Xxxxx X. Xxxxxx
Assistant Secretary
The Bank of New York as Trustee
By: /s/Xxxx X. Xxxxxxxxx
---------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Assistant Treasurer
Attest:
By: /s/ Xxxx Xx Xxxxxx
-------------------------
Xxxx Xx Xxxxxx
Assistant Vice President
STATE OF MICHIGAN )
)ss.
COUNTY OF XXXXX )
On the 18th day of January, 1996, before me personally came Xxxx X.
Xxxxxx, to me known, who, being by me duly sworn, did depose and say that
he resides at Ann Arbor, Michigan; that he is Senior Vice President and
Chief Financial Officer of Consumers Power Company, one of the
corporations described in and which executed the foregoing instrument;
that he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate; that it was so affixed by authority of the
Board of Directors of said corporation; and that he signed his name
thereto by like authority.
[Notarial Seal]
/s/ Xxxxxx Xxx Xxxxx
--------------------------------------
Xxxxxx Xxx Xxxxx
Notary Public, Xxxxx County, Michigan
My Commission Expires: April 23, 1996
H:\S-3\EX4-4.C3
STATE OF )
)ss.
COUNTY OF )
On the 22nd day of January, 1996, before me personally came Xxxx X.
Xxxxxxxxx, to me known, who, being by me duly sworn, did depose and say
that he resides at 000 Xxxxxxxx Xxxxxx, Xxxxxxx, X.X., that he is an
Assistant Treasurer of the Bank of New York, one of the corporations
described in and which executed the foregoing instrument; that he knows
the seal of said corporation; that the seal affixed to said instrument is
such corporate; that it was so affixed by authority of the Board of
Directors of said corporation; and that he signed his name thereto by like
authority.
[Notarial Seal]
/s/ Xxxxxxx X. Xxxxxxx
--------------------------------
Notary Public,
My Commission Expires:
Xxxxxxx X. Xxxxxxx
Notary Public, State of New York
No. 01CA5027729
Qualified in Bronx County
Certificate Filed in New York County
Commission Expires May 16, 1996
