EXHIBIT 4.8
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FINOVA CAPITAL CORPORATION
AND
THE FIRST NATIONAL BANK OF CHICAGO
TRUSTEE
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Indenture
Dated as of _____________
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Providing for the Issuance of
Debt Securities
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This Cross Reference Sheet, showing the location in the Indenture of the
provisions inserted pursuant to Section 310-318(a), inclusive, of the Trust
Indenture Act of 1939, is not to be considered a part of the Indenture.
TRUST INDENTURE ACT CROSS REFERENCE SHEET
Sections of Trust Sections of
Indenture Act Indenture
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310(a)(1).................................................. 10.06
310(a)(2).................................................. 10.06
310(a)(3).................................................. Not applicable
310(a)(4).................................................. Not applicable
310(b)..................................................... 10.07
311........................................................ 10.03
312........................................................ 9.02
313........................................................ 9.03
314(a)..................................................... 9.04
314(b)..................................................... Not applicable
314(c)..................................................... 14.03
314(d)..................................................... Not applicable
314(e)..................................................... 14.03
315(a)..................................................... 10.01
315(b)..................................................... 10.11
315(c)..................................................... 10.01
315(d)..................................................... 10.01
315(e)..................................................... 6.08
316(a)..................................................... 6.06 and 7.03
316(b)..................................................... 6.07
317(a)..................................................... 6.03 and 6.04
317(b)..................................................... 5.03
318(a)..................................................... 14.05
TABLE OF CONTENTS*
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PARTIES....................................................................................................... 1
RECITALS...................................................................................................... 1
ARTICLE ONE
DEFINITIONS
SECTION 1.01. Terms ..................................................................................... 2
SECTION 1.02. Definitions.................................................................................... 2
ARTICLE TWO
FORM, EXECUTION, DELIVERY, TRANSFER AND
EXCHANGE OF SECURITIES
SECTION 2.01. Forms Generally; Record Dates; Place of Payment, Denominations and
Numbering of Securities.............................................................. 8
SECTION 2.02. Terms of Series................................................................................ 9
SECTION 2.03. Certificate of Authentication Necessary to Make Securities Valid............................... 11
SECTION 2.04. Form of Certificate of Authentication.......................................................... 11
SECTION 2.05. Registration, Transfer and Exchange of Securities.............................................. 12
SECTION 2.06. Replacing Securities Mutilated, Destroyed, Lost or Stolen...................................... 15
SECTION 2.07. Rights to Interest............................................................................. 15
SECTION 2.08. Temporary Securities........................................................................... 16
ARTICLE THREE
ISSUE OF SECURITIES
SECTION 3.01. Authentication, Delivery and Dating............................................................ 16
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* The Table of Contents is not part of the Indenture.
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ARTICLE FOUR
REDEMPTION OF SECURITIES; SINKING FUND
SECTION 4.01. Applicability of Right of Redemption........................................................... 18
SECTION 4.02. Notice of Redemption........................................................................... 18
SECTION 4.03. Securities of Any Series to be Canceled and Discharged on Specific Conditions.................. 20
SECTION 4.04. Applicability of Sinking Fund.................................................................. 20
SECTION 4.05. Mandatory Sinking Fund Obligation.............................................................. 20
SECTION 4.06. Optional Redemption at Sinking Fund Redemption Price........................................... 20
SECTION 4.07. Application of Sinking Fund Payments........................................................... 21
ARTICLE FIVE
PARTICULAR COVENANTS OF THE COMPANY
SECTION 5.01. To Pay Principal, Premium, if any, and Interest................................................ 22
SECTION 5.02. To Maintain Office or Agency in New York....................................................... 22
SECTION 5.03. The Company, or Paying Agent, to Hold in Trust Moneys for Payment of Principal,
Premium, if any, and Interest........................................................ 23
SECTION 5.04. Restrictions Upon Liens Upon Property of the Company and Restricted Subsidiaries............... 24
SECTION 5.05. Maintenance of Corporate Existence............................................................. 26
SECTION 5.06. Restrictions on Consolidation, Merger, Sale, Et................................................ 26
SECTION 5.07. Annual Statement Concerning Compliance with Covenants.......................................... 27
SECTION 5.08. Compliance with Covenants and Conditions May Be Waived by Holders of Securities................ 27
ARTICLE SIX
REMEDIES OF TRUSTEE AND SECURITYHOLDERS
SECTION 6.01. Events of Default.............................................................................. 27
SECTION 6.02. Acceleration of Maturity of Principal on Default............................................... 29
SECTION 6.03. The Company, Failing for 30 Days to Pay Any Installment of Interest or Sinking Fund
Payment or Failing to Pay Principal When Due, Will Pay to Trustee at its Request
Whole Amount Due..................................................................... 30
SECTION 6.04. Trustee Appointed Attorney-in-Fact for Securityholders to File Claims.......................... 30
SECTION 6.05. Application of Moneys Collected by Trustee..................................................... 31
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SECTION 6.06. Securityholders May Direct Proceedings and Waive Defaults...................................... 32
SECTION 6.07. Limitations on Rights of Securityholders to Institute Proceedings.............................. 32
SECTION 6.08. Assessment of Costs and Attorneys' Fees in Legal Proceedings................................... 33
SECTION 6.09. Remedies Cumulative............................................................................ 33
ARTICLE SEVEN
CONCERNING THE SECURITYHOLDERS
SECTION 7.01. Evidence of Action by Securityholders.......................................................... 34
SECTION 7.02. Proof of Execution of Instruments and of Holding of Securities................................. 34
SECTION 7.03. Securities Owned by the Company or Other Obligor on the Securities to be Disregarded in
Certain Cases........................................................................ 34
SECTION 7.04. Revocation by Securityholders of Consents to Action............................................ 35
ARTICLE EIGHT
SECURITYHOLDERS' MEETINGS
SECTION 8.01. Purposes of Meetings........................................................................... 35
SECTION 8.02. Call of Meetings by Trustee.................................................................... 36
SECTION 8.03. Call of Meetings by Company or Securityholders................................................. 36
SECTION 8.04. Qualifications for Voting...................................................................... 36
SECTION 8.05. Regulation of Meetings......................................................................... 36
SECTION 8.06. Voting ..................................................................................... 37
SECTION 8.07. No Delay of Rights by Meeting.................................................................. 37
ARTICLE NINE
REPORTS BY THE COMPANY AND THE TRUSTEE
AND SECURITYHOLDERS' LISTS
SECTION 9.01. Company to Furnish Trustee Names and Address of Holders........................................ 38
SECTION 9.02. Preservation of Information; Communications to Holders......................................... 38
SECTION 9.03. Reports by Trustee............................................................................. 38
SECTION 9.04. Reports by Company............................................................................. 39
ARTICLE TEN
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CONCERNING THE TRUSTEE
SECTION 10.01. Certain Rights of Trustee..................................................................... 39
SECTION 10.02. Not Responsible for Recitals or Issuance of Securities........................................ 40
SECTION 10.03. May Hold Securities........................................................................... 41
SECTION 10.04. Money Held in Trust........................................................................... 41
SECTION 10.05. Compensation and Reimbursement................................................................ 41
SECTION 10.06. Corporate Trustee Required; Eligibility....................................................... 42
SECTION 10.07. Resignation and Removal; Appointment of Successor............................................. 42
SECTION 10.08. Acceptance of Appointment by Successor........................................................ 43
SECTION 10.09. Merger, Conversion, Consolidation or Succession to Business................................... 45
SECTION 10.10. Appointment of Authenticating Agent........................................................... 45
SECTION 10.11. Notice of Defaults............................................................................ 46
ARTICLE ELEVEN
DEFEASANCE
SECTION 11.01. Discharge of Indenture Upon Payment of Securities............................................. 47
SECTION 11.02. Discharge of Securities of Any Series Upon Deposit of Moneys.................................. 47
SECTION 11.03. Interest on Moneys Deposited.................................................................. 47
ARTICLE TWELVE
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS, DIRECTORS AND EMPLOYEES
SECTION 12.01. Liability Solely Corporate.................................................................... 48
ARTICLE THIRTEEN
SUPPLEMENTAL INDENTURES
SECTION 13.01. Without Consent of Securityholders, the Company and Trustee May Enter Into Supplemental
Indentures for Specified Purposes.................................................... 49
SECTION 13.02. Modification of Indenture by Supplemental Indenture With Consent of Securityholders........... 50
SECTION 13.03. Upon Request of the Company, Trustee to Join in Execution of Supplemental Indenture........... 51
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SECTION 13.04. Effect of Supplemental Indenture.............................................................. 52
SECTION 13.05. Matters Provided for in Supplemental Indenture May Be Noted on Securities, or New
Securities Appropriately Modified May Be Issued in Exchange for Outstanding
Securities........................................................................... 52
SECTION 13.06. Supplemental Indentures to Conform to Trust Indenture Act of 1939............................. 52
ARTICLE FOURTEEN
MISCELLANEOUS PROVISIONS
SECTION 14.01. Consolidation, Merger, Sale or Lease.......................................................... 52
SECTION 14.02. Rights Under Indenture Confined to Parties and Holders of Securities.......................... 53
SECTION 14.03. Evidence of Compliance........................................................................ 53
SECTION 14.04. Cancellation of Securities.................................................................... 54
SECTION 14.05. Provisions Required by Trust Indenture Act of 1939 to Control................................. 54
SECTION 14.06. Action of Authorized Committee Deemed to be Action of Board of Directors...................... 54
SECTION 14.07. Notices ..................................................................................... 55
SECTION 14.08. Act of Holders................................................................................ 55
SECTION 14.09. Payments Due on Non-Business Days............................................................. 56
SECTION 14.10. Execution in Counterparts..................................................................... 56
SECTION 14.11. Indenture Deemed a New York Contract.......................................................... 57
TESTIMONIUM................................................................................................... 58
SIGNATURES AND SEALS.......................................................................................... 58
ACKNOWLEDGEMENTS.............................................................................................. 58
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INDENTURE, dated as of ________________, between FINOVA CAPITAL
CORPORATION, a corporation organized and existing under the laws of the State of
Delaware (hereinafter called the "Company"), party of the first part, and THE
FIRST NATIONAL BANK OF CHICAGO, a national banking association, as trustee
(hereinafter called the "Trustee"), party of the second part.
RECITALS
The Company is authorized and empowered to borrow money for its
corporate purposes and to issue its bonds, debentures, notes and other
obligations for money so borrowed.
The Company has duly authorized the issue, in one or more series as in
this Indenture provided, from time to time of its debt securities (hereinafter
called the "Securities") and, to provide the general terms and conditions upon
which the Securities are to be authenticated, issued and delivered, the Company
has duly authorized the execution and delivery of this Indenture.
The Trustee has power to enter into this Indenture and to accept and
execute the trusts herein created.
The Company represents that all acts and things necessary to make the
Securities, when executed by the Company and authenticated and delivered by the
Trustee as in this Indenture provided and issued, the valid, binding and legal
obligations of the Company, will, at the time of such execution, authentication
and delivery, have been done and performed; that all acts and things necessary
to constitute these presents a valid indenture and agreement according to its
terms have been done and performed; that the execution of this Indenture has in
all respects been duly authorized and the issue hereunder of the Securities
will, at the time of the issue thereof, have in all respects been duly
authorized; and that the Company, in the exercise of each and every legal right
and power in it vested, executes this Indenture and proposes to make, execute,
issue and deliver the Securities.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
That, in consideration of the premises and of the acceptance and
purchase of the Securities by the holders thereof, the Company covenants and
agrees with the Trustee, for the equal benefit of all the holders from time to
time of the Securities, without preference, priority or distinction of any
thereof over any other thereof by reason of priority in time of issuance or
negotiation, or otherwise, as follows:
ARTICLE ONE
DEFINITIONS
SECTION 1.01. Terms. Unless otherwise defined in this Indenture or the
context otherwise requires, all terms used herein shall have the meanings
assigned to them in the Trust Indenture Act of 1939.
SECTION 1.02. Definitions. Unless the context otherwise requires, the
terms defined in this Section 1.02 shall for all purposes of this Indenture have
the meanings hereinafter set forth, the following definitions to be equally
applicable to both the singular and the plural forms of any of the terms herein
defined:
Act:
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The term "Act," when used with respect to any holders, has the meaning
specified in Section 14.08.
Authenticating Agent:
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The term "Authenticating Agent" means the Trustee and/or the
authenticating agent, if any, appointed by the Trustee and acting pursuant to
Section 10.10.
Board Resolution:
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The term "Board Resolution" means a copy of a resolution or resolutions
certified by the Secretary or an Assistant Secretary of the Company to have been
duly adopted by the Board of Directors or any committee of the Board of
Directors (or committee of officers or other representatives of the Company, to
the extent that any such committee or committees have been authorized by the
Board of Directors to establish or approve the matters contemplated by Section
2.02 or any other provision hereof) and to be in full force and effect on the
date of such certification, and delivered to the Trustee.
Business day:
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The term "Business day" shall mean a day which in The City of New York
is not a day on which banking institutions are authorized or obligated by law or
executive order to close.
Commission:
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The term "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 of this Indenture such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.
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Company:
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The term "Company" shall mean FINOVA Capital Corporation and, subject
to the provisions of Section 14.01, shall also include its successors and
assigns.
Consolidated Net Tangible Assets:
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The term "Consolidated Net Tangible Assets" means the total of all
assets reflected on a consolidated balance sheet of the Company and its
consolidated Subsidiaries, prepared in accordance with generally accepted
accounting principles, at their net book values (after deducting related
depreciation, depletion, amortization and all other valuation reserves which, in
accordance with such principles, should be set aside in connection with the
business conducted), but excluding goodwill, unamortized debt discount and all
other like intangible assets, all as determined in accordance with such
principles, less the aggregate of the current liabilities of the Company and its
consolidated Subsidiaries reflected on such balance sheet, all as determined in
accordance with such principles. For purposes of this definition, "current
liabilities" include all indebtedness for money borrowed, incurred, issued,
assumed or guaranteed by the Company and its consolidated Subsidiaries, and
other payables and accruals, in each case payable on demand or due within one
year of the date of determination of Consolidated Net Tangible Assets, but shall
exclude any portion of long-term debt maturing within one year of the date of
such determination, all as reflected on such consolidated balance sheet of the
Company and its consolidated Subsidiaries, prepared in accordance with generally
accepted accounting principles.
Depositary:
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With respect to the Securities of any series issuable or issued in
whole or in part in global form, the Person designated as Depositary by the
Company pursuant to Section 2.02 until a successor Depositary shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Depositary" shall mean or include each Person who is then a Depositary
hereunder, and if at any time there is more than one such Person, "Depositary"
as used with respect to the Securities of any such series shall mean the
"Depositary" with respect to the Securities of that series.
Event of default:
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The term "event of default" shall have the meaning specified in Section
6.01.
Indenture:
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The term "Indenture" or "this Indenture" shall mean this instrument and
all indentures supplemental hereto.
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Interest Payment Date:
----------------------
The term "Interest Payment Date" when used with respect to any Security
shall mean the Stated Maturity of an instalment of interest on such Security.
Lien:
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The term "Lien" means any lien, charge, claim, security interest,
pledge, hypothecation, right of another under any conditional sale or other
title retention agreement, or any other encumbrance affecting title to property.
Without limiting the generality of the foregoing, the sale of property used or
useful in the business of the seller with the intention of retaining the use
thereof under a lease, or any other comparable arrangement commonly referred to
as a "sale and leaseback," shall be deemed to create a Lien on such property.
Mandatory Sinking Fund Payment:
-------------------------------
The term "Mandatory Sinking Fund Payment" shall have the meaning
specified in Section 4.04.
Maturity:
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The term "Maturity," with respect to any Security, shall mean the date
on which the principal of such Security shall become due and payable as therein
and herein provided, whether by declaration, call for redemption or otherwise.
Officers' Certificate:
----------------------
The term "Officers' Certificate," when used with respect to the
Company, shall mean a certificate signed by the Chairman of the Board of
Directors, the President or any Vice President and by the Treasurer, any
Assistant Treasurer, the Controller, any Assistant Controller, the Secretary or
any Assistant Secretary of the Company.
Opinion of Counsel:
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The term "Opinion of Counsel" shall mean an opinion in writing signed
by legal counsel, who may be counsel for the Company.
Optional Sinking Fund Payment:
------------------------------
The term "Optional Sinking Fund Payment" shall have the meaning
specified in Section 4.04.
4
Outstanding:
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The term "outstanding," when used as of any particular time with
reference to Securities, shall mean, as of the date of determination and subject
to Section 7.03, all Securities theretofore authenticated and delivered by the
Trustee under this Indenture, except
(a) Securities or portions thereof for which (i) funds, or as
provided in Section 11.02 hereof, direct obligations of the United
States of America, sufficient to pay the principal thereof, premium, if
any, thereon and all unpaid interest thereon to Maturity or to the date
fixed for the redemption thereof shall have been deposited in trust for
such purpose as provided herein with the Trustee or with any paying
agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own
paying agent), and (ii) in case of redemption, notice of redemption
thereof shall have been duly given or provision satisfactory to the
Trustee for the giving of such notice shall have been made;
(b) Securities which shall have been cancelled or surrendered
to the Trustee for cancellation; and
(c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to
Section 2.05 or 2.06;
provided, however, that in determining whether the holders of the requisite
principal amount of outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned
by the Company or any other obligor upon the Securities or any affiliate of the
Company 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 Company or any other obligor upon the Securities or any
affiliate of the Company or of such other obligor.
Paying agent:
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The term "paying agent" means any Person authorized by the Company to
pay the principal of, or any premium or interest on, or any Additional Amounts
with respect to, any Security or any Coupon on behalf of the Company.
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Person:
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The term "Person" shall mean an individual, a corporation, a
partnership, a joint venture, an association, a joint stock company, a trust, an
unincorporated organization or a government or an agency or political
subdivision thereof.
Principal Office of the Trustee:
--------------------------------
The term "Principal Office of the Trustee," or other similar term,
shall mean the principal corporate trust office of the Trustee at which its
principal trust business is administered. As of the date hereof, the Principal
Office of the Trustee is located at One First Xxxxxxxx Xxxxx #0000, Xxxxxxx, XX
00000 (telephone: (000) 000-0000; telecopier: (312) 407- 1708).
Record Date:
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The term "Record Date" shall mean, with respect to any interest payable
on any Security on any Interest Payment Date, the close of business on the date
specified in such Security or, in the case of defaulted interest, the close of
business on any subsequent record date established as provided in Section 2.01
(in each case whether or not such day is a business day).
Redemption Date:
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The term "Redemption Date" when used with respect to any Security to be
redeemed, in whole or in part, shall mean the date fixed for such redemption by
or pursuant to this Indenture and the terms of such Security.
Redemption Price:
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The term "Redemption Price" when used with respect to any Security to
be redeemed shall mean the price (exclusive of accrued interest) at which it is
to be redeemed pursuant to this Indenture and the terms of such Security.
Responsible Officers:
---------------------
"Responsible Officers" of the Trustee hereunder shall mean and include
the chairman and any vice chairman of the board of directors, the president, the
chairman and any vice chairman of the executive committee of the board of
directors, or any officer in the corporate trust department 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, a
particular subject.
Restricted Subsidiary:
----------------------
The term "Restricted Subsidiary" means any Subsidiary which is
designated as such by Board Resolution and at least a majority of the shares of
Voting Stock of which shall at the time be owned, directly, by the Company or by
one or more Restricted Subsidiaries or by the Company and one or more Restricted
Subsidiaries.
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Security:
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The term "Security" shall mean any note or notes, bond or bonds,
debenture or debentures, or any other evidences of indebtedness, as the case may
be, authenticated and delivered under this Indenture; provided, however, that,
if at any time there is more than one Person acting as Trustee under this
Indenture, "Securities," with respect to any such Person, shall mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.
Security Co-Registrar:
----------------------
The term "Security Co-Registrar" has the meaning specified in Section
2.05.
Security Register; Security Registrar:
--------------------------------------
The terms "Security Register" and "Security Registrar" have the
respective meanings specified in Section 2.05.
Securityholder; holder of Securities; holder; registered holder:
----------------------------------------------------------------
The term "Securityholder" or "holder of Securities" or "holder" or
"registered holder," with respect to a Security, shall mean the Person in whose
name such Security or Securities shall be registered in the register kept for
that purpose hereunder.
Stated Maturity:
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The term "Stated Maturity" when used with respect to any Security or
any instalment of interest thereon shall mean the date specified in such
Security as the fixed date on which the principal (or any portion thereof) of or
premium, if any, on such Security or such instalment of interest is due and
payable.
Subsidiary:
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The term "Subsidiary" shall mean any corporation at least a majority of
the Voting Stock of which shall at the time be owned, directly or indirectly, by
the Company, or one or more Subsidiaries, or by the Company and one or more
Subsidiaries.
Trust Indenture Act of 1939 or Trust Indenture Act:
---------------------------------------------------
The term "Trust Indenture Act of 1939" or "Trust Indenture Act" shall
mean such Act as amended from time to time except as provided in Section 13.06
or otherwise required by law.
7
Trustee:
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The term "Trustee" shall mean the trustee hereunder for the time being,
whether original or successor, and if at any time there is more than one such
trustee, "Trustee" as used with respect to the Securities of any series shall
mean the trustee with respect to Securities of that series.
Unrestricted Subsidiary:
------------------------
The term "Unrestricted Subsidiary" shall mean any Subsidiary other than
a Restricted Subsidiary.
Voting Stock:
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The term "Voting Stock" means stock of any class or classes (however
designated) having ordinary voting power for the election of a majority of the
members of the board of directors (or any governing body) of such corporation,
other than stock having such power only by reason of the happening of a
contingency.
Certain other terms, relating principally to provisions included in
this Indenture in compliance with the Trust Indenture Act of 1939, are defined
in Article Ten.
ARTICLE TWO
FORM, EXECUTION, DELIVERY, TRANSFER AND
EXCHANGE OF SECURITIES
SECTION 2.01. Forms Generally; Record Dates; Place of Payment,
Denominations and Numbering of Securities. The Securities of each series shall
be issuable in registered form and shall be in substantially such form as shall
be established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
or designation and such legends or endorsements printed, lithographed or
engraved thereon as the officers of the Company executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not
inconsistent with the provisions of this Indenture, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto or with
any rule or regulation of any stock exchange on which the Securities may be
listed, or to conform to usage. The Securities shall be issued, except as
otherwise provided with respect to any series of Securities pursuant to Section
2.02, in the denomination of $1,000 and any larger denomination which is an
integral multiple of $1,000 approved by the Company, such approval to be
evidenced by the execution thereof.
8
If Securities of a series are issuable in whole or in part in global
form, any such Security may provide that it shall represent the aggregate amount
of outstanding Securities from time to time endorsed thereon and may also
provide that the aggregate amount of outstanding Securities represented thereby
may from time to time be reduced to reflect exchanges or increased to reflect
the issuance of additional Securities. Any endorsement of a Security in global
form to reflect the amount, or any increase or decrease in the amount, of
outstanding Securities represented thereby shall be made in such manner and by
such Person or Persons, as shall be specified therein or in the Company order of
authentication delivered to the Trustee pursuant to Section 2.04.
The Person in whose name any Security is registered at the close of
business on any Record Date with respect to any Interest Payment Date shall be
entitled to receive the interest payable on such Interest Payment Date
notwithstanding the cancellation of such Security upon any transfer or exchange
thereof subsequent to such Record Date and prior to such Interest Payment Date;
provided, however, that, if and to the extent the Company shall default in the
payment of the interest due on such Interest Payment Date, the defaulted
interest shall be paid to the Persons in whose names the outstanding Securities
are registered on a subsequent record date, such record date to be not less than
5 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 Securities
not less than 15 days preceding such subsequent record date.
The principal of and interest and premium, if any, on the Securities
shall be payable at each office or agency of the Company designated pursuant to
Section 5.02 for such purpose; provided, however, that interest may at the
option of the Company be paid by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register
(including the records of any Security Co-Registrar). Such payments will be made
in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts.
SECTION 2.02. Terms of Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is
unlimited.
The Securities may be issued in one or more series. There shall be
established by or pursuant to a Board Resolution, and set forth in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series:
(a) the title of the Securities of the series (which shall
distinguish the Securities of the series from the Securities of all
other series, except to the extent that additional Securities of an
existing series are being issued);
(b) any limit upon the aggregate principal amount of the
Securities of the series which may be outstanding under this Indenture
(except as otherwise provided in Section 2.06, 2.08, 4.02 or 13.05);
9
(c) the date or dates on which the principal of the Securities
of the series is payable;
(d) the rate or rates at which the Securities of the series
shall bear interest, if any, or the method by which such rate or rates
shall be determined, the date or dates from which such interest shall
accrue, or the method by which such date or dates shall be determined,
the interest payment dates on which such interest shall be payable and
the record dates for the determination of holders to whom interest is
payable;
(e) the place or places where the principal of, premium, if
any, and interest on Securities of the series shall be payable;
(f) the price or prices at which, the period or periods within
which and the terms and conditions upon which Securities of the series
may be redeemed, in whole or in part, at the option of the Company, if
the Company is to have that option;
(g) the obligation, if any, of the Company to redeem, purchase
or repay Securities of the series pursuant to any sinking fund or
analogous provisions or at the option of a holder thereof and the price
or prices at which the period or periods within which and the terms and
conditions upon which Securities of the series shall be redeemed,
purchased or repaid, in whole or in part, pursuant to such obligation;
(h) if other than denominations of $1,000 or any integral
multiple thereof, the denominations in which Securities of the series
shall be issuable;
(i) if other than the principal amount thereof, the portion of
the principal amount of the Securities of the series which shall be
payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 6.02;
(j) the issuance of the Securities of such series in whole or
in part in global form and, if so, the identity of the Depositary for
such Securities in global form, and the terms and conditions, if any,
upon which interests in such Securities in global form may be
exchanged, in whole or in part, for the individual Securities
represented thereby;
(k) any deletions from, modifications of or additions to the
events of default or covenants of the Company with respect to any of
such Securities, whether or not such events of default or covenants are
consistent with the events of default or covenants set forth herein;
(l) the terms and conditions, if any, upon which the payment
of Securities of such series shall be subordinated to other
indebtedness of the Company (including, without limitation, the
indebtedness which ranks senior to such Securities; restrictions on
payments to holders of such Securities while a default with respect to
such senior indebtedness is continuing; restrictions, if any, on
payments to the holders of such securities following an event of
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default; and any requirements for holders of such Securities to remit
certain payments to the holders of such senior indebtedness);
(m) if there is more than one Trustee, the identity of the
Trustee and, if not the Trustee, the identity of each Security
Registrar, paying agent or Authenticating Agent with respect to such
Securities; and
(n) any other terms of the Securities of the 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 such Board Resolution, and set forth in such Officers' Certificate, or in any
such indenture supplemental hereto. If any of the terms of a series of
Securities are established by action taken pursuant to a Board Resolution, a
copy of such Board Resolution shall be delivered to the Trustee at or prior to
the delivery of the Officers' Certificate setting forth the terms of such
series. All Securities of any one series need not be issued at the same time
and, unless otherwise so provided by the Company, a series may be reopened for
issuances of additional Securities of such series or to establish additional
terms of such series of Securities.
SECTION 2.03. Certificate of Authentication Necessary to Make
Securities Valid. The Securities shall be signed in the name and on behalf of
the Company by the manual or facsimile signature of its Chairman of the Board of
Directors, its President or one of its Vice Presidents and by its Secretary or
an Assistant Secretary. The Securities shall then be delivered to the Trustee or
the Authenticating Agent for authentication by it, and thereupon, as provided
herein, the Trustee or the Authenticating Agent shall authenticate and deliver
such Securities. In case any officer of the Company who shall have signed any of
the Securities shall cease to be such officer of the Company before the
Securities so signed shall have been actually authenticated and delivered by the
Trustee or the Authenticating Agent, such Securities may nevertheless be issued,
authenticated and delivered as though the person who signed such Securities had
not ceased to be such officer of the Company; and also any of the Securities may
be signed on behalf of the Company by any person who at the time of the
execution of such Securities shall be the proper officer of the Company, even
though at the date of the execution of this Indenture such person may not have
been such officer of the Company.
SECTION 2.04. Form of Certificate of Authentication. Only such of the
Securities as shall bear thereon a certificate substantially in the form of the
Trustee's certificate of authentication hereinafter recited, executed by the
Trustee or the Authenticating Agent, shall be valid or become obligatory for any
purpose or entitle the holder thereof to any right or benefit under this
Indenture, and the certificate of authentication by the Trustee or the
Authenticating Agent upon any such Security executed on behalf of the Company as
aforesaid shall be conclusive evidence, and the only evidence, that the Security
so authenticated has been duly authenticated and delivered hereunder and that
the holder thereof is entitled to the benefits of this Indenture.
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The Trustee's certificate of authentication on all Securities shall be
in substantially the following form:
This is one of the Securities issued under the Indenture described
herein.
THE FIRST NATIONAL BANK OF CHICAGO
as Trustee
By:
--------------------------------
Authorized Signatory
or (if an Authenticating Agent is appointed pursuant to Section 10.10)
By: (Name of Agent)
as Authenticating Agent
By:
----------------------------------------
Authorized Signatory
SECTION 2.05. Registration, Transfer and Exchange of Securities. The
Company shall cause to be kept a register (herein sometimes referred to as the
"Security Register") in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities and of
transfers of Securities. Unless and until otherwise determined by the Company,
by Board Resolution, the Security Register initially shall be kept at the
Principal Office of the Trustee. The Trustee is hereby appointed "Security
Registrar" for the purpose of registering Securities and transfers of Securities
as herein provided. The Company may appoint one or more "Security Co-Registrars"
for such purpose. The Security Registrar and any Security Co-Registrars are
herein sometimes referred to, and are appointed as, the "Security Registrar."
Upon surrender for registration of transfer of any Security of any
series at any office or agency of the Company designated pursuant to Section
5.02 for such purpose or at the office of any Security Co-Registrar, the Company
shall execute and the Trustee or the Authenticating Agent shall authenticate and
deliver a Security or Securities of such series for a like aggregate principal
amount, in such authorized denomination or denominations and registered in such
name or names as may be requested. The transfer of any security shall not be
valid as against the Company or the Trustee unless registered at such offices or
agency by the registered holder, or by his attorney duly authorized in writing.
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Securities of any series in their several authorized denominations are
exchangeable for a Security or Securities of such series in authorized
denominations and of a like aggregate principal amount. Securities to be
exchanged as aforesaid shall be surrendered for that purpose by the registered
holder thereof at such offices or agency, and the Company shall execute and the
Trustee or the Authenticating Agent shall authenticate and deliver in exchange
therefor the Security or Securities in such authorized denomination or
denominations as the Securityholder making the exchange shall have requested and
shall be entitled to receive. The Company shall not be required to make any
exchange or effect registration of transfer of (i) any Security which shall have
been designated 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, or
(ii) any Security for a period of 15 days next preceding any selection of
Securities for redemption.
Notwithstanding any other provision of this Section, unless and until
it is exchanged in whole or in part for the individual Securities represented
thereby, in definitive form, a Security in global form representing all or a
portion of the Securities of a series may not be transferred except as a whole
by the Depositary for such series to a nominee of such Depositary or by a
nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor Depositary
for such series or a nominee of such successor Depositary.
All Securities presented or surrendered for registration of transfer,
exchange or payment shall (if so required by the Company or the Trustee or any
Security Registrar or Security Co-Registrar or any Authenticating Agent) be duly
endorsed by, or accompanied by a written instrument or instruments of transfer
(in form satisfactory to the Company and the Security Registrar or any Security
Co-Registrar) duly executed by, the registered holder or by his attorney duly
authorized in writing.
If at any time the Depositary for the Securities of a series
represented by one or more Securities in global form notifies the Company that
it is unwilling or unable to continue as Depositary for the Securities of such
series or if at any time the Depositary for the Securities of such series shall
no longer be eligible under Section 2.01, the Company shall appoint a successor
Depositary with respect to the Securities of such series. If a successor
Depositary for the Securities of such series is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such
ineligibility, the Company's election pursuant to Section 2.02 that such
Securities be represented by one or more Securities in global form shall no
longer be effective with respect to the Securities of such series and the
Company will execute, and the Trustee, upon receipt of a Company order for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive form, in
authorized denominations, in an aggregate principal amount and like terms and
tenor equal to the principal amount of the Security or Securities in global form
representing such series in exchange for such Security or Securities in global
form.
The Company may at any time and in its sole discretion determine that
individual Securities of any series issued in global form shall no longer be
represented by such Security or Securities in global form. In such event the
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Company will execute, and the Trustee, upon receipt of a Company order for the
authentication and delivery of definitive Securities of such series and of the
same terms and tenor, will authenticate and deliver Securities of such series in
definitive form, in authorized denominations, and in aggregate principal amount
equal to the principal amount of the Security or Securities in global form
representing such series in exchange for such Security or Securities in global
form.
If specified by the Company pursuant to Section 2.02 with respect to a
series of Securities issued in global form, the Depositary for such series of
Securities may surrender a Security in global form for such series of Securities
in exchange in whole or in part for Securities of such series in definitive form
and of like terms and tenor on such terms as are acceptable to the Company and
such Depositary. Thereupon, the Company shall execute, and the Trustee upon
receipt of a Company order for the authentication and delivery of definitive
Securities of such series, shall authenticate and deliver, without service
charge to the holders:
(a) to each Person specified by such Depositary a new
definitive Security or Securities of the same series and of the same
tenor, in authorized denominations, in aggregate principal amount equal
to and in exchange for such Person's beneficial interest in the
Security in global form; and
(b) to such Depositary a new Security in global form in a
denomination equal to the difference, if any, between the principal
amount of the surrendered Security in global form and the aggregate
principal amount of the definitive Securities delivered to holders
pursuant to clause (a) above.
Upon the exchange of a Security in global form for Securities in
definitive form, such Security in global form shall be cancelled by the Trustee
or an agent of the Company or the Trustee. Securities issued in definitive form
in exchange for a Security in global form pursuant to this Section 2.05 shall be
registered in such names and in such authorized denominations as the Depositary
for such Security in global form, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee or an agent of
the Company or the Trustee in writing. The Trustee or such agent shall deliver
such Securities to or as directed by the Persons in whose names such Securities
are so registered or to the Depositary.
Whenever any securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the holder making the exchange is entitled to receive.
No service charge shall be made for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
applicable tax or other governmental charge payable in connection therewith.
The Company and the Trustee, and the agents of either, may deem and
treat the Person in whose name any Security is registered as the absolute owner
of such Security (whether or not such Security shall be overdue and
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notwithstanding any notation of ownership or other writing thereon) for all
purposes whatsoever (subject to the provisions set forth herein relating to
Record Dates and record dates for the payment of any defaulted interest), and
the Company and the Trustee, and the agents of either, shall not be affected by
any notice to the contrary.
None of the Company, the Trustee, any Authenticating Agent, any paying
agent or the Security Registrar will have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial
ownership interests of a Security in global form or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interest and each
of them may act or refrain from acting without liability on any information
relating to such records provided by the Depositary.
SECTION 2.06. Replacing Securities Mutilated, Destroyed, Lost or
Stolen. In case any temporary or definitive Security of a particular series
shall become mutilated or be destroyed, lost or stolen, then upon the conditions
hereinafter set forth the Company in its discretion may execute, and thereupon
the Trustee or the Authenticating Agent shall authenticate and deliver, a new
Security of the same series of like tenor and principal amount and bearing a
different number, in exchange and substitution for and upon cancellation of the
mutilated Security or in lieu of and substitution for the Security so destroyed,
lost or stolen; provided, however, that if any such mutilated, destroyed, lost
or stolen Security shall have become payable upon the maturity thereof, the
Company may, instead of issuing a substitute Security, pay such Security without
requiring the surrender thereof. The applicant for any substitute Security or
for payment of any such mutilated, destroyed, lost or stolen Security shall
furnish to the Company and to the Trustee evidence satisfactory to them, in
their discretion, of the ownership of and the destruction, loss or theft of such
Security and shall furnish to the Company and to the Trustee indemnity
satisfactory to them, in their discretion, and, if required, shall reimburse the
Company and the Trustee for all expenses (including counsel fees and any tax or
other governmental charge that may be imposed in relation thereto) in connection
with the preparation, issue and authentication of such substitute Security or
the payment of such mutilated, destroyed, lost or stolen Security, and shall
comply with such other reasonable regulations as the Company and the Trustee, or
either of them, may prescribe. Any such new Security delivered pursuant to this
Section 2.06 shall constitute an additional contractual obligation on the part
of the Company, whether or not the allegedly destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be equally and
proportionately entitled to the benefit of this Indenture with all other
Securities of the same series issued 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, destroyed, lost or stolen Securities and shall preclude any and all
other rights or remedies.
SECTION 2.07. Rights to Interest. Subject to the provisions set forth
herein relating to Record Dates and record dates for the payment of any
defaulted interest, each Security delivered pursuant to any provision of this
Indenture in exchange or substitution for, or upon registration of transfer of,
any other Security shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Security.
15
SECTION 2.08. Temporary Securities. Pending the preparation of
definitive Securities of any series the Company may execute and the Trustee or
the Authenticating Agent shall authenticate and deliver temporary Securities of
such series (printed or lithographed). Temporary Securities shall be issuable in
any authorized denomination, and substantially in the form of the definitive
Securities but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Company.
In the case of Securities of any series, such temporary Securities may be in
global form, representing all of the outstanding Securities of such series and
tenor. Every such temporary Security of a particular series shall be
authenticated by the Trustee or the Authenticating Agent upon the same
conditions and in substantially the same manner, and with the same effect, as
the definitive Securities of such series. Without unreasonable delay, and except
in the case of temporary Securities in global form which shall be exchanged in
accordance with the provisions thereof, the Company will execute and deliver to
the Trustee definitive Securities of such series and thereupon any or all
temporary Securities of such series may be surrendered in exchange for
definitive Securities of the same series, at the principal corporate trust
office of the Trustee or any office or agency of the Company designated pursuant
to Section 5.02 for such purpose or at the office of any Security Co- Registrar,
and the Trustee or the Authenticating Agent shall authenticate and deliver in
exchange for such temporary Securities an equal aggregate principal amount of
definitive Securities of the same series. Such exchange shall be made by the
Company at its own expense and without any charge therefor except that the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto. Until so exchanged,
the temporary Securities of a particular series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of
the same series authenticated and delivered hereunder.
ARTICLE THREE
ISSUE OF SECURITIES
SECTION 3.01. Authentication, Delivery and Dating. At any time and from
time to time after the execution and delivery of this Indenture, the Company may
deliver Securities of any series executed by the Company to the Trustee or the
Authenticating Agent for authentication. The Trustee or the Authenticating Agent
shall thereupon authenticate and deliver such Securities to or upon the written
order of the Company, signed by its Chairman of the Board of Directors, its
President or a Vice President, without any further action by the Company. In
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 315 of the Trust Indenture Act)
shall be fully protected in relying upon:
(a) a Board Resolution relating thereto and, if applicable, an
appropriate record of any action taken pursuant to such resolution,
certified by the Secretary or an Assistant Secretary of the Company;
16
(b) an executed supplemental indenture, if any;
(c) an Officers' Certificate; and
(d) an Opinion of Counsel prepared in accordance with Section
14.03, which shall state
(1) that the form and terms of such Securities have
been established by or pursuant to one or more Board
Resolutions, by a supplemental indenture as permitted by
Section 13.01(g), or by both such resolution or resolutions
and such supplemental indenture, in conformity with the
provisions of this Indenture;
(2) that the supplemental indenture, if any, when
executed and delivered by the Company and the Trustee, will
constitute a valid and legally binding obligation of the
Company;
(3) that such Securities, when authenticated and
delivered by the Trustee or the Authenticating Agent and
issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the
Company, enforceable in accordance with their terms, and will
be entitled to the benefits of this Indenture;
(4) that the Company has the corporate power to issue
such Securities, and has duly taken all necessary corporate
action with respect to such issuance;
(5) that the issuance of such Securities will not
contravene the charter or by-laws of the Company or result in
any violation of any of the terms or provisions of any law or
regulation or of any indenture, mortgage or other agreement by
which the Company is bound and under which long-term debt of
the Company as reflected in its latest financial statements on
file with the Securities and Exchange Commission is
outstanding; and
(6) that all requirements of this Indenture
applicable to the Company in respect of the execution and
delivery by the Company of such Securities and of such
supplemental indenture, if any, have been complied with and
that, assuming (a) all requisite corporate authorization on
the part of the Trustee, (b) continued compliance by the
Trustee with the terms of the Indenture specifically
applicable to the Trustee, and (c) due authentication and
delivery of such Securities by the Trustee or the
Authenticating Agent, the execution and delivery of such
supplemental indenture, if any, will not violate the terms of
this Indenture, and that, other than compliance with federal
and state securities laws, no authorization, approval or
consent by any regulatory or statutory or other public
authority is required in connection with the execution and
delivery of such supplemental indenture or for the creation,
17
issuance, authentication and delivery of the Securities
pursuant to this Indenture.
If the Company shall establish pursuant to Section 2.02 that Securities
of a series may be issued in whole or in part in global form, then the Company
shall execute and the Trustee shall, in accordance with this Section and the
Company order of authentication with respect to such series, authenticate and
deliver one or more Securities in global form that (i) shall represent and shall
be denominated in an aggregate amount equal to the aggregate principal amount of
the outstanding Securities of such series and tenor to be represented by one or
more Securities in global form, (ii) shall be registered, in the name of the
Depositary for such Security or Securities in global form or the nominee of such
Depositary, (iii) shall be delivered to such Depositary or pursuant to such
Depositary's instruction, and (iv) shall bear a legend substantially to the
following effect: "Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation ("DTC")
to Issuer or its agent for transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein." Each Depositary designated pursuant
to Section 2.02 for a Security in global form must, at the time of its
designation and at all times while it serves as Depositary, be a clearing agency
registered under the Securities Exchange Act of 1934 and any other applicable
statute or regulation.
The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section if the issue of such Securities pursuant to
this Indenture will affect the Trustee's own rights, duties or immunities under
the Securities and this Indenture or otherwise in a manner which is not
reasonably acceptable to the Trustee.
Each Security shall be dated the date of its authentication.
ARTICLE FOUR
REDEMPTION OF SECURITIES; SINKING FUND
SECTION 4.01. Applicability of Right of Redemption. Redemption of
Securities (other than pursuant to a sinking fund or analogous provision)
permitted by the terms of any series of Securities shall be made in accordance
with such terms and Sections 4.02 and 4.03; provided, however, that if any such
terms of a series of Securities shall conflict with any provision of this
Article, the terms of such series shall govern.
SECTION 4.02. Notice of Redemption. The election of the Company to
redeem any Securities of any series shall be evidenced by or pursuant to a Board
Resolution. If the Company shall elect to redeem the Securities of any series in
18
whole or in part as aforesaid, it shall fix a date for redemption and give
notice of its election so to redeem by mailing or causing to be mailed written
notice, postage prepaid, at least 30 days prior to the redemption date, to all
holders of Securities to be redeemed as a whole or in part, addressed to them at
their respective addresses as the same shall then appear on the Security
Register of the Company. Any notice which shall be mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the holder shall receive such notice. Failure to mail such notice, or any defect
in the notice mailed, to the holder of any Security designated for redemption as
a whole or in part shall not affect the validity of the proceedings for the
redemption of any other Security.
Each notice of redemption shall state such election on the part of the
Company, the Redemption Date and place of payment of the Securities to be
redeemed and the Redemption Price and that the Securities designated in such
notice for redemption are required to be presented on or after such Redemption
Date and at such place for payment and that interest to the Redemption Date on
the Securities and portions of Securities called for redemption will be paid as
specified in said notice and shall cease to accrue thereon on such date. If less
than all the outstanding Securities of a series are to be redeemed, the notice
shall also designate the Securities or portions of Securities that are to be
redeemed. If any Security is to be redeemed in part only, the notice shall also
state that upon presentation of such Security on or after the redemption date at
said place, such Security will be canceled and a new Security or Securities of
the same series, in an aggregate principal amount equal to the unredeemed
portion of such Security will be issued and delivered without charge to the
holder.
Notice having been so given, the Securities and portions of Securities
to be redeemed shall on the Redemption Date specified in such notice become due
and payable at the applicable Redemption Price, together with interest accrued
thereon to the Redemption Date, and from and after the Redemption Date so
specified (unless the Company shall default in the payment of the Redemption
Price of such Securities or any such accrued interest) interest on such
Securities and portions of Securities shall cease to accrue, and upon
presentation of such Securities at said place of payment and redemption in
accordance with said notice, such Securities and portions of Securities shall be
paid by the Company at the applicable Redemption Price, together with interest
accrued to the Redemption Date (except that, if the Redemption Date shall be an
Interest Payment Date, the interest payable on such date shall be paid to the
registered holders of such Securities at the close of business on the applicable
Record Date, subject to the provisions of Section 2.01).
If the Company shall at any time elect to redeem less than all the
Securities of a series then outstanding, it shall at least 45 days prior to the
Redemption Date (unless a shorter notice shall be satisfactory to the Trustee)
notify the Trustee of the principal amount of Securities to be redeemed, and
thereupon the Trustee shall select, in such manner as the Trustee shall deem
appropriate and fair, the Securities (or portions thereof) of such series to be
redeemed. No Security of a denomination of $1,000 shall be redeemed in part and
Securities may be redeemed in part only in integral multiples of $1,000. The
Trustee shall promptly notify the Company in writing of the Securities and
portions of Securities so selected.
19
SECTION 4.03. Securities of Any Series to be Canceled and Discharged on
Specific Conditions. If Securities of any Series at the time outstanding are to
be redeemed under circumstances to which Section 11.02 is applicable, the
Company shall deliver to the Trustee (1) proof satisfactory to the Trustee that
notice of redemption thereof on a specified redemption date has been given as
hereinbefore provided, or (2) proof satisfactory to the Trustee that
arrangements have been made insuring to the satisfaction of the Trustee that
such notice will be so given, or (3) a written instrument in form and substance
satisfactory to the Trustee executed by the Company, and expressed to be
irrevocable, authorizing the Trustee to give such notice for and on behalf of
the Company.
SECTION 4.04. Applicability of Sinking Fund. Redemption of Securities
permitted or required pursuant to a sinking fund for the retirement of
Securities of a series by the terms of such series of Securities shall be made
in accordance with such terms of such series of Securities and this Article;
provided, however, that if any such terms of a series of Securities shall
conflict with any provision of this Article, the terms of such series shall
govern.
The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "Mandatory Sinking
Fund Payment," and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "Optional
Sinking Fund Payment." If provided for by the terms of Securities of any series,
the cash amount of any Mandatory Sinking Fund Payment may be subject to
reduction as provided in Section 4.05.
SECTION 4.05. Mandatory Sinking Fund Obligation. The Company may, at
its option, satisfy any Mandatory Sinking Fund Payment obligation, in whole or
in part, with respect to a particular series of Securities by (1) delivering to
the Trustee outstanding Securities of such series in transferable form
theretofore purchased or otherwise acquired by the Company or redeemed at the
election of the Company pursuant to Section 4.01 or (2) receiving credit for
Securities of such series (not previously so credited) acquired by the Company
and theretofore delivered to the Trustee. The Trustee shall credit such
Mandatory Sinking Fund Payment obligation with an amount equal to the redemption
price specified in such Securities for redemption through operation of the
sinking fund and the amount of such Mandatory Sinking Fund Payment shall be
reduced accordingly. If the Company shall elect so to satisfy any Mandatory
Sinking Fund Payment obligation, it shall deliver to the Trustee not less than
45 days prior to the relevant sinking fund payment date a written notice signed
on behalf of the Company by its Chairman of the Board of Directors, its
President, one of its Vice Presidents, its Treasurer or one of its Assistant
Treasurers, which shall designate the Securities (and portions thereof, if any)
to be so delivered or credited and which shall be accompanied by such Securities
(to the extent not theretofore delivered) in transferable form. In case of the
failure of the Company, at or before the time so required, to give such notice
and deliver such Securities, the Mandatory Sinking Fund Payment obligation shall
be paid entirely in funds.
SECTION 4.06. Optional Redemption at Sinking Fund Redemption Price. In
addition to the sinking fund requirements of Section 4.05, to the extent, if
any, provided for by the terms of a particular series of Securities, the Company
20
may, at its option, make an Optional Sinking Fund Payment with respect to such
Securities. Unless otherwise provided by such terms, (a) to the extent that the
right of the Company to make such Optional Sinking Fund Payment shall not be
exercised in any year, it shall not be cumulative or carried forward to any
subsequent year, and (b) such optional payment shall operate to reduce the
amount of any Mandatory Sinking Fund Payment obligation as to Securities of the
same series. If the Company intends to exercise its right to make such optional
payment in any year it shall deliver to the Trustee not less than 45 days prior
to the relevant sinking fund payment date a certificate signed by its Chairman
of the Board of Directors, its President, one of its Vice Presidents, its
Treasurer or one of its Assistant Treasurers stating that the Company will
exercise such optional right, and specifying the amount which the Company will
pay on or before the next succeeding sinking fund payment date. Such certificate
shall also state that no event of default has occurred and is continuing.
SECTION 4.07. Application of Sinking Fund Payments. If the sinking fund
payment or payments made in funds pursuant to either Section 4.05 or 4.06 with
respect to a particular series of Securities plus any unused balance of any
preceding sinking fund payments made in funds with respect to such series shall
exceed $50,000 (or a lesser sum if the Company shall so request), it shall be
applied by the Trustee on the sinking fund payment date next following the date
of such payment, unless the date of such payment shall be a sinking fund payment
date, in which case such payment shall be applied on such sinking fund payment
date, to the redemption of Securities of such series at the redemption price
specified pursuant to Section 4.04. The Trustee shall select in the manner
provided in Section 4.02, for redemption on such sinking fund payment date, a
sufficient principal amount of Securities of such sinking fund payment date, a
sufficient principal amount of Securities of such series to absorb said funds,
as nearly as may be, and shall, at the expense and in the name of the Company,
thereupon cause notice of redemption of the Securities to be given in
substantially the manner provided in Section 4.02 for the redemption of
Securities in part at the option of the Company, except that the notice of
redemption shall also state that the Securities are being redeemed for the
sinking fund. Any sinking fund moneys not so applied by the Trustee to the
redemption of Securities of such series shall be added to the next sinking fund
payment received in funds by the Trustee and, together with such payment, shall
be applied in accordance with the provisions of this Section 4.07. Any and all
sinking fund moneys held by the Trustee on the last sinking fund payment date
with respect to Securities of such series, and not held for the payment or
redemption of particular Securities of such series, shall be applied by the
Trustee to the payment of the principal of the Securities of such series at
maturity.
On or prior to each sinking fund payment date, the Company shall pay to
the Trustee a sum equal to all interest accrued to the date fixed for redemption
on Securities to be redeemed on such sinking fund payment date pursuant to this
Section 4.07.
The Trustee shall not redeem any Securities of a series with sinking
fund moneys or mail any notice of redemption of Securities of such series by
operation of the sinking fund during the continuance of a default in payment of
interest on any Securities of such series or of any event of default (other than
an event of default occurring as a consequence of this paragraph) of which the
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Trustee has actual knowledge, except that if the notice of redemption of any
Securities of such series shall theretofore have been mailed in accordance with
the provisions hereof, the Trustee shall redeem such Securities if funds
sufficient for that purpose shall be deposited with the Trustee in accordance
with the terms of this Article Four. Except as aforesaid, any moneys in the
sinking fund at the time any such default or event of default shall occur and
any moneys thereafter paid into the sinking fund shall, during the continuance
of such default or event of default, be held as security for the payment of all
the Securities of such series; provided, however, that in case such default or
event of default shall have been cured or waived as provided herein, such moneys
shall thereafter be applied on the next sinking fund payment date on which such
moneys are required to be applied pursuant to the provisions of this Section
4.07.
ARTICLE FIVE
PARTICULAR COVENANTS OF THE COMPANY
The Company hereby covenants and agrees as follows:
SECTION 5.01. To Pay Principal, Premium, if any, and Interest. The
Company will duly and punctually pay the principal of and premium, if any, on
each of the Securities, and the interest which shall have accrued thereon, at
the date and place and in the manner provided in the Securities and in this
Indenture.
SECTION 5.02. To Maintain Office or Agency in New York. The Company
will maintain in the city in the United States in which the Company has its
principal business office and, if (a) required to comply with any law or with
any rule or regulation made pursuant thereto or with any rule or regulation of
any stock exchange on which the Securities may be listed or (b) Securities of
any series are issued in definitive form, in The City of New York, and may
maintain elsewhere, an office or agency where Securities may be presented or
surrendered for payment, where Securities may be surrendered for transfer or
exchange and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of any such office or agency. If at any time the Company shall fail to maintain
such required office or agency, or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Principal Office of the Trustee. The Company hereby initially
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands.
The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all of such purposes and may from time to time rescind such designations;
provided, however, that no such designation shall in any manner result in the
creation of a Security Register or Security Co- Registrar in addition to the
Security Register required to be kept pursuant to Section 2.05 and any Security
Co-Registrar appointed pursuant to Section 2.05. The Company will give prompt
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written notice to the Trustee of any such designation and any change in the
location of any such other office or agency.
SECTION 5.03. The Company, or Paying Agent, to Hold in Trust Moneys for
Payment of Principal, Premium, if any, and Interest. If the Company shall at any
time act as its own paying agent with respect to any series of Securities, then,
on or before the date on which the principal of and premium, if any, or interest
on any of the Securities of that series by their terms or as a result of the
calling thereof for redemption shall become payable, the Company will set apart
and segregate and hold in trust for the benefit of the holders of such
Securities a sum sufficient to pay such principal and premium, if any, or
interest which shall have so become payable and will notify the Trustee of its
failure to act in that regard and of any failure by the Company or any other
obligor upon the Securities of that series to make any such payment. If the
Company shall appoint, and at the time have, a paying agent for the payment of
the principal of and premium, if any, or interest on any series of Securities,
then, on or before the date on which the principal of and premium, if any, or
interest on any of the Securities of that series shall become payable as
aforesaid, whether by their terms or as a result of the calling thereof for
redemption, the Company will pay to such paying agent a sum sufficient to pay
such principal and premium, if any, or interest, to be held in trust for the
benefit of the holders of such Securities. If such paying agent shall be other
than the Trustee, the Company will cause such paying agent to execute and
deliver to the Trustee an instrument in which such paying agent shall agree with
the Trustee, subject to the provisions of this Section 5.03 and of Section
11.03, (1) that such paying agent shall hold all sums held by such paying agent
for the payment of the principal of and premium, if any, or interest on the
Securities of that series in trust for the benefit of the holders of such
Securities; (2) that such paying agent shall give to the Trustee notice of any
default by the Company or any other obligor upon the Securities of that series
in the making of any payment of the principal of and premium, if any, or
interest on the Securities of that series when the same shall have become due
and payable; and (3) that such paying agent shall, at any time during the
continuance of any such default, upon the written request of the Trustee,
deliver to the Trustee all sums so held in trust by it. The Company hereby
appoints The First National Bank of Chicago to act as its paying agent
hereunder.
Anything in this Section 5.03 to the contrary notwithstanding, the
Company may at any time, for the purpose of obtaining a release or satisfaction
of this Indenture or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust by it or by any paying agent other than the
Trustee as required by this Section 5.03, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such paying agent.
Any money deposited with the Trustee or any paying agent, or then held
by the Company, in trust for the payment of the principal of, premium, if any,
or interest on any Security and remaining unclaimed for three years after such
principal, premium, if any, or interest has become due and payable shall be paid
to the Company on Company request, or (if then held by the Company) shall be
discharged from such trust; and the holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such paying agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
23
cease; provided, however, that the Trustee or such paying agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in the Borough of
Manhattan, The City of New York, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.
SECTION 5.04. Restrictions Upon Liens Upon Property of the Company and
Restricted Subsidiaries. The Company will not at any time directly or
indirectly, and will not permit any Restricted Subsidiary to, create, assume,
incur or suffer to be created, assumed or incurred or to exist any Lien upon any
of the properties of any character of the Company or any Restricted Subsidiary
without making effective provision whereby the Securities then outstanding shall
be secured equally and ratably with (or prior to) any other obligation or
indebtedness so secured, so long as such other obligation or indebtedness
remains secured; except, however, that, notwithstanding the foregoing, the
Company or any Restricted Subsidiary, without so securing the Securities, may
(1) lease property to others in the ordinary course of the
business of the Company or any Restricted Subsidiary or lease or
sublease any property if the property subject thereto is not needed by
the Company or any Restricted Subsidiary in the operation of its
business;
(2) create, assume and incur such Liens or permit such Liens
to be created, assumed, incurred or to exist provided, in each case,
the Lien secures indebtedness for borrowed money, including purchase
money indebtedness, which is incurred to finance the acquisition of the
property subject to such Lien and in respect of which the creditor has
no recourse against the Company or any Restricted Subsidiary except
recourse to such property or to the proceeds of any sale or lease of
such property or both;
(3) make any deposit with or give any form of security to any
governmental agency or other body created or approved by law or
governmental regulation in order to enable the Company or such
Restricted Subsidiary to maintain self-insurance, or to participate in
any fund in connection with workmen's compensation, unemployment
insurance, old-age pensions, or other social security, or to share in
any privileges or other benefits available to corporations
participating in any such arrangement, or for any other purpose at any
time required by law or regulation promulgated by any governmental
agency or office as a condition to the transaction of any business or
the exercise of any privilege or license, or deposit assets of the
Company or such Restricted Subsidiary with any surety company or clerk
of any court, or in escrow, as collateral in connection with, or in
lieu of, any bond on appeal by the Company or such Restricted
Subsidiary from any judgment or decree against it, or in connection
with any other proceedings in actions at law or suits in equity by or
against the Company or such Restricted Subsidiary;
24
(4) incur or suffer to be incurred or to exist upon any of its
property or assets (a) Liens for taxes, assessments or other
governmental charges or levies which are not yet due or are payable
without penalty or of which the amount, applicability or validity is
being contested by the Company or such Restricted Subsidiary in good
faith by appropriate proceedings and the Company or such Restricted
Subsidiary shall have set aside on its books reserves which it deems to
be adequate with respect thereto (segregated to the extent required by
generally accepted accounting principles), provided that foreclosure,
distraint, sale or similar proceedings have not been commenced, (b) the
Liens of any judgment, if such judgment shall not have remained
undischarged, or unstayed on appeal or otherwise, for more than six
months, (c) undetermined Liens or charges incident to construction, (d)
materialmen's, mechanics', workmen's, repairmen's or other like Liens
arising in the ordinary course of business in respect of obligations
which are not overdue or which are being contested by the Company or
such Restricted Subsidiary in good faith by appropriate proceedings, or
deposits to obtain the release of such Liens, or (e) any encumbrances
consisting of zoning restrictions, licenses, easements and restrictions
on the use of real property and minor defects and irregularities in the
title thereto, which do not materially impair the use of such property
by the Company or such Restricted Subsidiary in the operation of its
business or the value of such property for the purpose of such
business;
(5) create other Liens incidental to the conduct of its
business or the ownership of its property and assets which were not
incurred in connection with the borrowing of money or the obtaining of
advances or credit, and which do not in the aggregate materially
detract from the value of its property or assets or materially impair
the use thereof in the operation of its business;
(6) create or suffer to be created or to exist in favor of any
lender of moneys or holder of commercial paper of the Company or a
Restricted Subsidiary in the ordinary course of business a banker's
lien or right of offset in the holder of such indebtedness or moneys of
the Company or a Restricted Subsidiary deposited with such lender or
holder in the ordinary course of business;
(7) create or suffer to be created or to exist with respect to
any of its property leasehold or purchase rights, exercisable for a
fair consideration, in favor of any Person which arise in transactions
entered into in the ordinary course of business;
(8) assume any Lien or permit any Lien to be assumed or exist
if any such Lien is on property or shares of stock of a corporation at
the time the corporation becomes a Restricted Subsidiary or merges into
or consolidates with the Company or a Restricted Subsidiary; provided,
however, that any such Lien may not be assumed or permitted to exist if
such Lien is incurred in anticipation of such corporation becoming a
Restricted Subsidiary or in anticipation of such merger or
consolidation;
25
(9) assume any Lien or permit any Lien to be assumed or exist
if any such Lien is on property at the time the Company or a Restricted
Subsidiary acquires the property; provided, however, that any such Lien
may not extend to any other property owned by the Company or a
Restricted Subsidiary at the time such Lien is assumed;
(10) assume, create or suffer to be created or to exist, such
Liens in an amount not to exceed in the aggregate $25,000,000 at any
one time outstanding, excluding Liens covered by other provisions of
clauses (1) through (9) above; and
(11) create or suffer to be created or to exist in favor of
any lender of moneys, any Lien that secures indebtedness of the Company
or a Restricted Subsidiary; provided that the sum of the following does
not exceed 10% of Consolidated Net Tangible Assets: (a) such
indebtedness; plus (b) other indebtedness of the Company and its
Restricted Subsidiaries secured by Liens on property of the Company and
its Restricted Subsidiaries, excluding indebtedness secured by a Lien
existing as of December 31, 1991 and excluding indebtedness secured by
a Lien permitted by one of clauses (1) through (10) above.
SECTION 5.05. Maintenance of Corporate Existence. Subject to Section
5.06, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence and that of each
Subsidiary and the rights and franchises of the Company and its Subsidiaries;
provided, however, that the Company shall not be required to preserve the
corporate existence of any Subsidiary or any such right or franchise if pursuant
to a Board Resolution, the Company shall determine that the preservation thereof
is no longer desirable in the conduct of the business of the Company and the
other Subsidiaries taken as a whole and that the loss thereof is not on balance
materially disadvantageous to the holders.
SECTION 5.06. Restrictions on Consolidation, Merger, Sale, Etc. The
Company will not consolidate with any other corporation or accept a merger of
any other corporation into the Company or permit the Company to be merged into
any other corporation, or sell or lease all or substantially all its assets to
another corporation, or purchase all or substantially all the assets of another
corporation, unless (i) either the Company shall be the continuing corporation,
or the successor, transferee or lessee corporation (if other than the Company)
shall be organized under the laws of the United States or any state thereof or
the District of Columbia and shall expressly assume, by indenture supplemental
hereto, executed and delivered by such corporation prior to or simultaneously
with such consolidation, merger, sale or lease, the due and punctual payment of
the principal of and interest and premium, if any, on all the Securities,
according to their tenor, and the due and punctual performance and observance of
all the covenants and conditions of this Indenture to be performed or observed
by the Company, and (ii) immediately after such consolidation, merger, sale,
lease or purchase the Company or the successor, transferee or lessee corporation
(if other than the Company) would not be in default in the performance of any
covenant or condition of this Indenture. A purchase by a Subsidiary of all or
substantially all of the assets of another corporation shall not be deemed to be
a purchase of such assets by the Company.
26
SECTION 5.07. Annual Statement Concerning Compliance with Covenants.
The Company will deliver to the Trustee, within 120 days after the end of each
fiscal year, a written statement signed by the Chairman of the Board of
Directors, the President, the Principal Financial Officer or Principal
Accounting Officer or the Treasurer or Controller of the Company, stating that
(a) a review of the activities of the Company during such year
with regard to its compliance with this Indenture has been made under
his supervision, and
(b) to the best of his knowledge, based on such review, the
Company has fulfilled all its obligations under this Indenture
throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known
to him and the nature and status thereof.
SECTION 5.08. Compliance with Covenants and Conditions May Be Waived by
Holders of Securities. Anything in this Indenture to the contrary
notwithstanding, the Company or any Restricted Subsidiary may fail or omit in
any particular instance to comply with a covenant or condition set forth in
Section 5.04 or 5.06 with respect to any series of Securities if the Company
shall have obtained and filed with the Trustee, prior to the time of such
failure or omission, evidence (as provided in Article Seven) of the consent of
the holders of at least 662/3% in aggregate principal amount of the Securities
of such series at the time outstanding, either waiving such compliance in such
instance or generally waiving compliance with such covenant or condition, but no
such waiver shall extend to or affect any obligation not waived by the terms of
such waiver or impair any right consequent thereon.
ARTICLE SIX
REMEDIES OF TRUSTEE AND SECURITYHOLDERS
SECTION 6.01. Events of Default. Except where otherwise indicated by
the context or where the term is otherwise defined for a specific purpose, the
term "event of default" as used in this Indenture with respect to Securities of
any series shall mean one of the following described events unless it is either
inapplicable to a particular series or it is specifically deleted or modified in
the supplemental indenture, if any, under which such series of Securities is
issued:
(a) the failure of the Company to pay any instalment of
interest on any Security of such series, when and as the same shall
become payable, which failure shall have continued unremedied for a
period of 30 days;
(b) the failure of the Company to pay the principal of (and
premium, if any, on) any Security of such series, when and as the same
shall become payable, whether at maturity as therein expressed, by call
for redemption (otherwise than pursuant to a sinking fund), by
declaration as authorized by this Indenture or otherwise;
27
(c) the failure of the Company to pay a sinking fund
instalment, if any, when and as the same shall become payable by the
terms of a Security of such series, which failure shall have continued
unremedied for a period of 30 days;
(d) the failure of the Company, subject to the provisions of
Section 5.08, to observe and perform any other of the covenants or
agreements on the part of the Company contained in this Indenture
(other than a covenant or agreement which has been expressly included
in this Indenture solely for the benefit of a series of Securities
other than that series), which failure shall not have been remedied to
the satisfaction of the Trustee, or without provision deemed by the
Trustee to be adequate for the remedying thereof having been made, for
a period of 90 days after written notice shall have been given to the
Company by the Trustee or shall have been given to the Company and the
Trustee by holders of 25% or more in aggregate principal amount of the
Securities of such series then outstanding, specifying such failure and
requiring the Company to remedy the same;
(e) an event of default, as defined in any mortgage, indenture
or instrument, including this Indenture, under which there may be
issued, or by which there may be secured or evidenced, any indebtedness
for money borrowed of the Company, whether such indebtedness now exists
or shall hereafter be created, shall happen and shall result in such
indebtedness in an amount in excess of $15,000,000 becoming or being
declared due and payable prior to the date on which it would otherwise
become due and payable, and such acceleration shall not have been
rescinded or annulled, or such indebtedness shall not have been
discharged, within a period of 10 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the holders of at least 10% in principal
amount of the outstanding Securities of such series a written notice
specifying such event of default and requiring the Company to cause
such acceleration to be rescinded or annulled or to cause such
indebtedness to be discharged;
(f) the entry by a court having jurisdiction in the premises
of a decree or order for relief in respect of the Company in an
involuntary case under the Federal bankruptcy laws, as now or hereafter
constituted, or any other applicable Federal or State bankruptcy,
insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee or
sequestrator (or similar official) of the Company or for substantially
all of its property, or ordering the winding-up or liquidation of its
affairs, which decree or order shall have remained unstayed and in
effect for a period of 90 consecutive days;
(g) the commencement by the Company of a voluntary case under
the Federal bankruptcy laws, as now or hereafter constituted, or any
other applicable Federal or State bankruptcy, insolvency or other
similar law now or hereafter in effect, or the consent by the Company
to the entry of an order for relief in an involuntary case under any
such law, or the consent by the Company to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian or
28
sequestrator (or similar official) of the Company or for substantially
all of its property, or the making by it of an assignment for the
benefit of its creditors; or
(h) the occurrence of any other event of default with respect
to Securities of such series as provided in an Officers' Certificate
delivered pursuant to Section 2.02 or a supplemental indenture
applicable to such series of Securities pursuant to Section 13.01(b).
SECTION 6.02. Acceleration of Maturity of Principal on Default. If any
one or more of the above-described events of default shall happen with respect
to Securities of any series at the time outstanding, then, and in each and every
such case, during the continuance of any such event of default, the Trustee or
the holders of 25% or more in principal amount of the Securities of such series
then outstanding may, and upon the written request of the holders of a majority
in principal amount of such Securities then outstanding the Trustee shall,
declare the principal of all the Securities of such series then outstanding, if
not then due and payable, to be due and payable, and upon any such declaration
the same shall become and be immediately due and payable, anything in this
Indenture or in the Securities of such series contained to the contrary
notwithstanding. This provision, however, is subject to the condition that, if
at any time after the principal of all the Securities of such series shall have
been so declared to be due and payable, all arrears of interest if any, upon all
the Securities of such series (with interest, to the extent that interest
thereon shall be legally enforceable, on any overdue instalment of interest at
the rate borne by the Securities of such series) and the reasonable charges and
expenses of the Trustee, its agents and attorneys, and all other sums payable
under this Indenture (except the principal of the Securities of such series
which would not be due and payable were it not for such declaration), shall be
paid by the Company, and every other default and event of default under this
Indenture shall have been made good to the reasonable satisfaction of the
Trustee or of the holders of a majority in principal amount of the Securities of
such series then outstanding, or provision deemed by the Trustee or by such
holders to be adequate therefor shall have been made, then and in every such
case the holders of a majority in principal amount of the Securities of such
series then outstanding may, on behalf of the holders of all the Securities of
such series, waive the event of default by reason of which the principal of the
Securities of such series shall have been so declared to be due and payable and
may rescind and annul such declaration and its consequences; but no such waiver,
rescission or annulment shall extend to or affect any subsequent default or
event of default or impair any right consequent thereon. Any declaration by the
Trustee pursuant to this Section 6.02 shall be by written notice to the Company,
and any declaration or waiver by the holders of Securities of any series
pursuant to this Section 6.02 shall be by written notice to the Company and the
Trustee.
The Company and the Trustee may, to the extent provided in Section
13.01, enter into one or more indentures supplemental hereto with respect to any
series of the Securities which may provide for additional or different events of
default with respect to such series of Securities.
29
SECTION 6.03. The Company, Failing for 30 Days to Pay Any Installment
of Interest or Sinking Fund Payment or Failing to Pay Principal When Due, Will
Pay to Trustee at its Request Whole Amount Due. If the Company shall fail for a
period of 30 days to pay any instalment of interest on the Securities of any
series or shall fail to pay the principal of and premium, if any, on any of the
Securities of such series when and as the same shall become due and payable,
whether at maturity, or by call for redemption (otherwise than pursuant to the
sinking fund), by declaration as authorized by this Indenture, or otherwise, or
shall fail for a period of 30 days to make any sinking fund payment as to a
series of Securities, then, upon demand by the Trustee, the Company will pay to
the Trustee for the benefit of the holders of Securities of such series then
outstanding the whole amount which then shall have become due and payable on all
the Securities of such series, with interest on the overdue principal and
premium, if any, and (so far as the same may be legally enforceable) on the
overdue installments of interest at the rate borne by the Securities of such
series, and reasonable compensation to the Trustee, its agents and attorneys,
and any other reasonable expenses and liabilities incurred by the Trustee under
this Indenture without negligence or bad faith.
In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any action or proceeding at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor upon the
Securities of such series, and collect the moneys adjudged or decreed to be
payable out of the property of the Company or any other obligor upon the
Securities of such series, and collect the moneys adjudged or decreed to be
payable out of the property of the Company or any other obligor upon the
Securities of such securities, wherever situated, in the manner provided by law.
Every recovery of judgment in any such action or other proceeding, subject to
the payment of the expenses, disbursements and compensation of the Trustee, its
agents and attorneys, shall be for the ratable benefit of the holders of such
series of Securities which shall be the subject of such action or proceeding.
All rights of action upon or under any of the Securities or this Indenture may
be enforced by the Trustee without the possession of any of the Securities and
without the production of any thereof at any trial or any proceeding relative
thereto.
SECTION 6.04. Trustee Appointed Attorney-in-Fact for Securityholders to
File Claims. The Trustee is hereby appointed, and each and every holder of the
Securities, by receiving and holding the same, shall be conclusively deemed to
have appointed the Trustee, the true and lawful attorney-in-fact of such holder,
with authority to make or file (whether or not the Company shall be in default
in respect of the payment of the principal of, or interest on, any of the
Securities), in its own name and as trustee of an express trust or otherwise as
it shall deem advisable, in any receivership, insolvency, liquidation,
bankruptcy, reorganization or other judicial proceeding relative to the Company
or any other obligor upon the Securities or to their respective creditors or
property, any and all claims, proofs of claim, proofs of debt, petitions,
consents, other papers and documents and amendments of any thereof, as may be
necessary or advisable in order to have the claims of the Trustee and of the
holders of the Securities allowed in any such proceeding and to collect and
receive any moneys or other property payable or deliverable on any such claim,
30
and to execute and deliver any and all other papers and documents and to do and
perform any and all other acts and things, as it may deem necessary or advisable
in order to enforce in any such proceeding any of the claims of the Trustee and
of any of such holders in respect of any of the Securities; and any receiver,
assignee, trustee, custodian or debtor in any such proceeding is hereby
authorized, and each and every holder of the Securities, by receiving and
holding the same, shall be conclusively deemed to have authorized any such
receiver, assignee, trustee, custodian or debtor, to make any such payment or
delivery only to or on the order of the Trustee, and to pay to the Trustee any
amount due if for compensation and expenses, including counsel fees, incurred by
it to the date of such payment or delivery; provided, however, that nothing
herein contained shall be deemed to authorize or empower the Trustee to consent
to or accept or adopt, on behalf of any holder of Securities, any plan of
reorganization or readjustment of the Company affecting the Securities or the
rights of any holder thereof, or to authorize or empower the Trustee to vote in
respect of the claim of any holder of any Securities in any such proceeding.
SECTION 6.05. Application of Moneys Collected by Trustee. Any moneys
collected by the Trustee with respect to a series of Securities under this
Article Six shall be applied in the order following, at the date or dates fixed
by the Trustee for the distribution of such moneys, upon presentation of the
several Securities, and stamping thereon the payment, if only partially paid,
and upon surrender thereof if fully paid:
First: To the payment of all costs and expenses in connection
with the collection of such moneys and all amounts due to the Trustee
under Section 10.05.
Second: In case the principal of the outstanding Securities of
such series shall not have become due and be unpaid, to the payment of
interest on the Securities of such series, in the order of the maturity
of the installments of such interest, with interest (to the extent that
such interest has been collected by the Trustee) upon the overdue
installments of interest at the rate borne by such Securities, such
payments to be made ratably to the Persons entitled thereto.
Third: In case the principal of the outstanding Securities of
such series shall have become due, by declaration or otherwise, to the
payment of the whole amount then owing and unpaid upon the Securities
of such series for principal and premium, if any, and interest, with
interest on the overdue principal and premium, if any, and (to the
extent that such interest has been collected by the Trustee) upon
overdue installments of interest at the rate borne by the Securities of
such series, and in case such moneys shall be insufficient to pay in
full the whole amounts so due and unpaid upon the Securities of such
series, then to the payment of such principal and premium, if any, and
interest without preference or priority of principal and premium, if
any, over interest, or of interest over principal and premium, if any,
or of any instalment of interest over any other instalment of interest,
or of any Security of such series over any other Security of such
series, ratably to the aggregate of such principal and premium, if any,
and accrued and unpaid interest.
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Any surplus then remaining shall be paid to the Company or to such other Persons
as shall be entitled to receive it.
SECTION 6.06. Securityholders May Direct Proceedings and Waive
Defaults. The holders of a majority in principal amount of the Securities of any
series at the time outstanding may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee hereunder, or
of exercising any trust or power hereby conferred upon the Trustee with respect
to the Securities of such series, provided, however, that, subject to the
provisions of Section 10.02, the Trustee shall have the right to decline to
follow any such direction if the Trustee being advised by counsel determines
that the action so directed may not lawfully be taken. Prior to any declaration
accelerating the maturity of the Securities of any series, the holders of a
majority in aggregate principal amount of such series of Securities at the time
outstanding may on behalf of the holders of all of the Securities of such series
waive any past default or event of default hereunder and its consequences except
a default in the payment of interest or any premium on or the principal of the
Securities of such series. Upon any such waiver the Company, the Trustee and the
holders of the Securities of such series shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to
any subsequent or other default or event of default or impair any right
consequent thereon. Whenever any default or event of default hereunder shall
have been waived as permitted by this Section 6.06, said default or event of
default shall for all purposes of the Securities of such series and this
Indenture be deemed to have been cured and to be not continuing.
SECTION 6.07. Limitations on Rights of Securityholders to Institute
Proceedings. No holder of any Security of any series shall have any right to
institute any action, suit or proceeding at law or in equity for the execution
of any trust hereunder or for the appointment of a receiver or for any other
remedy hereunder, in each case with respect to an event of default with respect
to such series of Securities, unless such holder previously shall have given to
the Trustee written notice of the happening of one or more of the events of
default herein specified with respect to such series of Securities, and unless
also the holders of 25% in principal amount of the Securities of such series
then outstanding shall have requested the Trustee in writing to take action in
respect of the matter complained of, and unless also there shall been offered to
the Trustee security and indemnity satisfactory to it against the costs,
expenses and liabilities to be incurred therein or thereby, and the Trustee, for
60 days after receipt of such notification, request and offer of indemnity,
shall have neglected or refused to institute any such action, suit or
proceeding; and such notification, request and offer of indemnity are hereby
declared in every such case to be conditions precedent to any such action, suit
or proceeding by any holder of any Security of such series; it being understood
and intended that no one or more of the holders of Securities of such series
shall have any right in any manner whatsoever by his or their action to enforce
any right hereunder, except in the manner herein provided, and that every
action, suit or proceeding at law or in equity shall be instituted, had and
maintained in the manner herein provided and for the equal benefit of all
holders of the outstanding Securities of such series; provided, however, that
nothing in this Indenture or in the Securities of such series contained shall
affect or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, premium, if any, and interest on the
Securities of such series to the respective holders of such Securities at the
32
respective due dates in such Securities stated, or affect or impair the right,
which is also absolute and unconditional, of such holders to institute suit to
enforce the payment thereof; provided, further, that in the event property or
assets are conveyed, transferred, assigned, mortgaged or pledged to the Trustee
as security for one or more series of Securities, no holder of Securities shall
be entitled to take any action or institute any suit to enforce the payment of
his Securities, whether for principal, interest or premium, if any, to the
extent that the taking of such action or the institution or prosecution of any
such suit or the entry of judgment therein would under applicable law result in
a surrender, impairment, waiver or loss of the lien of this Indenture, if any,
upon the trust estate so created by such conveyance, transfer, assignment,
mortgage or pledge, or any part thereof, as security for Securities held by any
other holder.
SECTION 6.08. Assessment of Costs and Attorneys' Fees in Legal
Proceedings. All parties to this Indenture and the holders of the Securities
agree that the court may in its discretion require, in any action, suit or
proceeding for the enforcement of any right or remedy under this Indenture, or
in any action, suit or proceeding against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such action, suit
or proceeding of an undertaking to pay the costs of such action, suit or
proceeding, and that such court may in its discretion assess reasonable costs,
including reasonably attorney's fees, against any party litigant in such action,
suit or proceeding, having due regard to the merits and good faith of the claims
or defenses made by such party litigant; provided, however, that the provisions
of this Section 6.08 shall not apply to any action, suit or proceeding
instituted by the Trustee, to any action, suit or proceeding instituted by any
one or more holders of Securities holding in the aggregate more than 10% in
principal amount of the Securities of any series outstanding, or to any action,
suit or proceeding instituted by any holder of Securities of any series for the
enforcement of the payment of the principal of or premium, if any, or the
interest on, any of the Securities of such series, on or after the respective
due dates expressed in such Securities.
SECTION 6.09. Remedies Cumulative. No remedy herein conferred upon or
reserved to the Trustee or to the holders of Securities of any series is
intended to be exclusive of any other remedy or remedies, and each and every
remedy shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute. No
delay or omission of the Trustee or of any holder of the Securities of any
series to exercise any right or power accruing upon any default or event of
default shall impair any such right or power or shall be construed to be a
waiver of any such default or event of default or an acquiescence therein, and
every power and remedy given by this Article Six to the Trustee and to the
holders of Securities of any series, respectively, may be exercised from time to
time and as often as may be deemed expedient by the Trustee or by the holders of
Securities of such series, as the case may be. In case the Trustee or any holder
of Securities of any series shall have proceeded to enforce any right under this
Indenture and the proceedings for the enforcement thereof shall have been
discontinued or abandoned because of waiver or for any other reason or shall
have been adjudicated adversely to the Trustee or to such holder of Securities,
then and in every such case the Company, the Trustee and the holders of the
Securities of such series shall severally and respectively be restored to their
former positions and rights hereunder and thereafter all rights, remedies and
powers of the Trustee and the holders of the Securities of such series shall
33
continue as though no such proceedings had been taken, except as to any matters
so waived or adjudicated.
ARTICLE SEVEN
CONCERNING THE SECURITYHOLDERS
SECTION 7.01. Evidence of Action by Securityholders. Whenever in this
Indenture it is provided that the holders of a specified percentage or a
majority in aggregate principal amount of the Securities or of any series of
Securities may take any action (including the making of any demand or request,
the giving of any notice, consent or waiver or the taking of any other action),
the fact that at the time of taking any such action the holders of such
specified percentage or majority have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by
Securityholders in person or by agent or proxy appointed in writing, or (b) by
the record of the holders of Securities voting in favor thereof at any meeting
of Securityholders duly called and held in accordance with the provisions of
Article Eight, or (c) by a combination of such instrument or instruments and any
such record of such a meeting of Securityholders.
SECTION 7.02. Proof of Execution of Instruments and of Holding of
Securities. Proof of the execution of any instrument by a Securityholder or his
agent or proxy and proof of the holding by any Person of any of the Securities
shall be sufficient if made in the following manner:
The fact and date of the execution by any person of any such instrument
may be proved (a) by the certificate of any notary public or other officer in
any jurisdiction who, by the laws thereof, has power to take acknowledgements or
proof of deeds to be recorded within such jurisdiction, that the person who
signed such instrument did acknowledge before such notary public or other
officer the execution thereof, or (b) by the affidavit of a witness of such
execution sworn to before any such notary or other officer. Where such execution
is by a person acting in other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority.
The ownership of Securities shall be proved by the Security Register of
such Securities or by a certificate of the Security Registrar thereof.
The Trustee may accept such other proof or may require such additional
proof of any matter referred to in this Section 7.02 as it shall deem
appropriate or necessary.
SECTION 7.03. Securities Owned by the Company or Other Obligor on the
Securities to be Disregarded in Certain Cases. In determining whether the
holders of the requisite principal amount of the Securities have concurred in
any direction, request, waiver or consent under this Indenture, Securities which
are owned by the Company or by any other obligor on the Securities or by any
34
Person directly or indirectly controlling, or controlled by, or under direct or
indirect common control with, the Company or any such other obligor shall be
disregarded, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, request, waiver or consent,
only Securities which the Trustee knows are so owned shall be disregarded.
Securities so owned which have been pledged in good faith may be regarded as
outstanding for the purposes of this Section 7.03 if the pledgee shall establish
to the satisfaction of the Trustee the pledgee's right to vote such Securities
and that the pledgee is not a Person directly or indirectly controlling, or
controlled by, or under direct or indirect common control with, the Company or
any such other obligor. In case of a dispute as to such right, any decision by
the Trustee taken upon the advice of counsel shall be full protection to the
Trustee.
SECTION 7.04. Revocation by Securityholders of Consents to Action. At
any time prior to (but not after) the evidencing to the Trustee, as provided in
Section 7.01, of the taking of any action by the holders of the percentage in
aggregate principal amount of the Securities or of any series of Securities
specified in this Indenture in connection with such action, any holder of a
Security which is shown by the evidence to be included in the Securities the
holders of which have consented to such action may, by filing written notice
with the Trustee at its principal office and upon proof of holding as provided
in Section 7.02, revoke such action so far as concerns such Security. Except as
aforesaid, any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, irrespective of whether or not any notation in regard thereto
is made upon such Security or any Security issued in exchange or substitution
therefor.
ARTICLE EIGHT
SECURITYHOLDERS' MEETINGS
SECTION 8.01. Purposes of Meetings. A meeting of Securityholders may be
called at any time and from time to time pursuant to the provisions of this
Article Eight for any of the following purposes:
(a) to give any notice to the Company or to the Trustee, or to
give any directions to the Trustee, or to consent to the waiving of any
default hereunder and its consequences, or to take any other action
authorized to be taken by Securityholders pursuant to any of the
provisions of Article Six;
(b) to remove the Trustee and nominate a successor trustee
pursuant to the provisions of Article Ten;
(c) to consent to the execution of an indenture or indentures
supplemental hereto pursuant to the provisions of Section 13.02; or
35
(d) to take any other action authorized to be taken by or on
behalf of the holders of any specified aggregate principal amount of
the Securities of any one or more or all series, as the case may be,
under any other provision of this Indenture or under applicable law.
SECTION 8.02. Call of Meetings by Trustee. The Trustee may at any time
call a meeting of Securityholders of all series, that may be affected by the
action proposed to be taken, to take any action specified in Section 8.01, to be
held at such time and at such place as the Trustee shall determine. Notice of
every meeting of the Securityholders of a series, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at
such meeting, shall be mailed to holders of Securities of such series at their
addresses as they shall appear on the Security Register (including the records
of any Security Co-Registrar). Such notice shall be mailed not less than 20 nor
more than 90 days prior to the date fixed for the meeting.
SECTION 8.03. Call of Meetings by Company or Securityholders. In case
at any time the Company, pursuant to a resolution of its Board of Directors, or
the holders of at least 10% in aggregate principal amount of the Securities of a
series then outstanding that may be affected by the action proposed to be taken,
shall have requested the Trustee to call a meeting of Securityholders of such
series, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed the
notice of such meeting within 20 days after receipt of such request, then the
Company or such Securityholders may determine the time and the place for such
meeting and may call such meeting to take any action authorized in Section 8.01,
by mailing notice thereof as provided in Section 8.02.
SECTION 8.04. Qualifications for Voting. To be entitled to vote at any
meeting of Securityholders a Person shall (a) be a holder of one or more
Securities of a series affected by the action proposed to be taken at the
meeting or (b) be a person appointed by an instrument in writing as proxy by a
holder of one or more such Securities. The only persons who shall be entitled to
be present or to speak at any meeting of Securityholders shall be the persons
entitled to vote at such meeting and their counsel and any representatives of
the Trustee and its counsel and any representatives of the Company and its
counsel.
SECTION 8.05. Regulation of Meetings. Notwithstanding any other
provisions of this Indenture, the Trustee may make such reasonable regulations
as it may deem advisable for any meeting of Securityholders, in regard to proof
of the holding of Securities and of the appointment of proxies, and in regard to
the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall think
fit.
The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Securityholders as provided in Section 8.03, in which case the
Company or the Securityholders calling the meeting, as the case may be, shall in
36
like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote of the meeting.
Subject to the provisions of Section 7.03, at any meeting of
Securityholders of a series each Securityholder of such series or such
Securityholder's proxy shall be entitled to one vote for each $1,000 principal
amount of Securities of such series outstanding held or represented by him;
provided, however, that no vote shall be cast or counted at any meeting in
respect of any Security challenged as not outstanding and ruled by the chairman
of the meeting to be not outstanding. The chairman of the meeting shall have no
right to vote other than by virtue of Securities of such series held by him or
instruments in writing as aforesaid duly designating him as the person to vote
on behalf of other Securityholders of such series. At any meeting of the
Securityholders duly called pursuant to the provisions of Section 8.02 or 8.03
the presence of persons holding or representing Securities in an aggregate
principal amount sufficient to take action upon the business for the transaction
of which such meeting was called shall be necessary to constitute a quorum, and
any such meeting may be adjourned from time to time by a majority of those
present, whether or not constituting a quorum, and the meeting may be held as so
adjourned without further notice.
SECTION 8.06. Voting. The vote upon any resolution submitted to any
meeting of Securityholders of a series shall be by written ballots on which
shall be subscribed the signatures of the holders of Securities of such series
or of their representatives by proxy and the principal amounts of the Securities
of such series held or represented by them. The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at
the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all
votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of Securityholders shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was mailed as provided in Section 8.02. The record
shall show the principal amounts of the Securities voting in favor of or against
any resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee.
Any record so signed and verified shall be conclusive evidence of the
matters therein stated.
SECTION 8.07. No Delay of Rights by Meeting. Nothing contained in this
Article Eight shall be deemed or construed to authorize or permit, by reason of
any call of a meeting of Securityholders of any series or any rights expressly
or impliedly conferred hereunder to make such call, any hindrance or delay in
the exercise of any right or rights conferred upon or reserved to the Trustee or
to the Securityholders of such series under any of the provisions of this
Indenture or of the Securities of such series.
37
ARTICLE NINE
REPORTS BY THE COMPANY AND THE TRUSTEE
AND SECURITYHOLDERS' LISTS
SECTION 9.01. Company to Furnish Trustee Names and Address of Holders.
In accordance with Section 312(a) of the Trust Indenture Act, the Company shall
furnish or cause to be furnished to the Trustee:
(a) semi-annually with respect to Securities of each series on
January 15 and July 15 of each year or upon such other dates as are set
forth in or pursuant to the Board Resolution or indenture supplemental
hereto authorizing such series, a list, in each case, in such form as
the Trustee may reasonably require, of the names and addresses of
holders as of the applicable date; and
(b) at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a
list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished;
provided, however, that so long as the Trustee is the Security Registrar no such
list shall be required to be furnished.
SECTION 9.02. Preservation of Information; Communications to Holders.
The Trustee shall comply with the obligations imposed upon it pursuant to
Section 312 of the Trust Indenture Act.
Every holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company, the Trustee, any
paying agent or any Security Registrar shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the
holders of Securities in accordance with Section 312 of the Trust Indenture Act,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under Section 312(b) of the Trust Indenture Act.
SECTION 9.03. Reports by Trustee. (a) Within 60 days after May 15 of
each year commencing with the first May 15 following the first issuance of
Securities, if required by Section 313(a) of the Trust Indenture Act, the
Trustee shall transmit, pursuant to Section 313(c) of the Trust Indenture Act, a
brief report dated as of such May 15 with respect to any of the events specified
in said Section 313(a) which may have occurred since the later of the
immediately preceding May 15 and the date of this Indenture.
(b) The Trustee shall transmit the reports required by Section 313(b)
of the Trust Indenture Act and Section 10.11 hereof at the times specified
therein.
38
(c) Reports pursuant to this Section shall be transmitted in the manner
and to the Persons required by Sections 313(c) and 313(d) of the Trust Indenture
Act.
SECTION 9.04. Reports by Company. The Company, pursuant to Section
314(a) of the Trust Indenture Act, shall:
(a) file with the Trustee, within 15 days after the Company is
required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies
of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Company may
be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934; or, if the
Company is not required to file information, documents or reports
pursuant to either of said Sections, then it shall file with the
Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may
be required pursuant to Section 13 of the Securities Exchange Act of
1934 in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such
rules and regulations;
(b) file with the Trustee and the Commission, in accordance
with rules and regulations prescribed from time to time by the
Commission, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants
of this Indenture as may be required from time to time by such rules
and regulations; and
(c) transmit to the holders within 30 days after the filing
thereof with the Trustee, in the manner and to the extent provided in
Section 313(c) of the Trust Indenture Act, such summaries of any
information, documents and reports required to be filed by the Company
pursuant to paragraphs (1) and (2) of this Section as may be required
by rules and regulations prescribed from time to time by the
Commission.
ARTICLE TEN
CONCERNING THE TRUSTEE
SECTION 10.01. Certain Rights of Trustee. Subject to Sections 315(a)
through 315(d) of the Trust Indenture Act:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, coupon or other paper or document
39
reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(b) any request or direction of the Company mentioned herein
shall be sufficiently evidenced by an Officers' Certificate and any
resolution of the Board of Directors or any committee thereof (or
committee of officers or other representatives of the Company, to the
extent any such committee or committees have been so authorized by the
Board of Directors) may be sufficiently evidenced by a Board
Resolution;
(c) whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or established
prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence shall be herein specifically prescribed)
may, in the absence of bad faith on its part, rely upon an Officers'
Certificate;
(d) the Trustee may consult with counsel and the advice of
such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered
or omitted by it hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by or pursuant to this Indenture
at the request or direction of any of the holders of Securities of any
series pursuant to this Indenture, unless such holders shall have
offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;
(f) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, coupon or other paper or document, but
the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation,
it shall be entitled to examine, during business hours and upon
reasonable notice, the books, records and premises of the Company,
personally or by agent or attorney; and
(g) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be responsible
for any misconduct or negligence on the part of any agent or attorney
appointed with due care by it hereunder.
SECTION 10.02. Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except those referring or
relating to the Trustee or any of its agents, and except for the Trustee's
certificate of authentication, shall be taken as the statements of the Company
and neither the Trustee nor any Authenticating Agent assumes any responsibility
for their correctness. The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the Securities, except that the Trustee
40
represents that it is duly authorized to execute and deliver this Indenture,
authenticate the Securities and perform its obligations hereunder and that the
statements made by it in a Statement of Eligibility and Qualification on Forms
T-1 supplied to the Company are and will be true and accurate, subject to the
qualifications set forth therein. Neither the Trustee nor any Authenticating
Agent shall be accountable for the use or application by the Company of the
Securities or the proceeds thereof.
SECTION 10.03. May Hold Securities. The Trustee, any Authenticating
Agent, any Security Registrar or any other Person that may be an agent of the
Trustee or the Company, in its individual or any other capacity, may become the
owner or pledgee of Securities or Coupons and, subject to Sections 310(b) and
311 of the Trust Indenture Act, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Security
Registrar or such other Person.
SECTION 10.04. Money Held in Trust. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law and, subject to Section 11.02 hereof, may be invested in direct
obligations of the United States of America in such amounts and with such
maturities that will ensure that the principal of such obligations, together
with the income thereon (without consideration of any reinvestment thereof),
will be sufficient to pay all sums due for principal of, premium, if any, and
interest on the Securities, as they become due from time to time. The Trustee
shall be under no liability for interest on any money received by it or for
losses on any investments made by it pursuant to this Section 10.04 except as
otherwise agreed with the Company.
SECTION 10.05. Compensation and Reimbursement. The Company agrees:
(1) to pay to the Trustee from time to time reasonable
compensation for all services rendered by the Trustee hereunder (which
compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);
(2) to reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including
the reasonable compensation and the expenses and disbursements of its
agents and counsel), except any such expense, disbursement or advance
as may be attributable to the Trustee's negligence or bad faith; and
(3) to indemnify the Trustee and its agents for, and to hold
them harmless against, any loss, liability or expense incurred without
negligence or bad faith on their part (excluding, for so long as no
event of default hereunder has occurred and is continuing, any
settlement that has not been approved by the Company in writing prior
to any such settlement) arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending themselves against any
claim or liability in connection with the exercise or performance of
any of their powers or duties hereunder, except to the extent that any
41
such loss, liability or expense was due to the Trustee's negligence or
bad faith.
The obligations of the Company under this Section to compensate and
indemnify the Trustee and each predecessor Trustee for expenses, disbursements
and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture.
SECTION 10.06. Corporate Trustee Required; Eligibility. There shall at
all times be a Trustee hereunder that is a corporation permitted by the Trust
Indenture Act to act as trustee under an indenture qualified under the Trust
Indenture Act and that has a combined capital and surplus (computed in
accordance with Section 310(a)(2) of the Trust Indenture Act) of at least
$25,000,000. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.
SECTION 10.07. Resignation and Removal; Appointment of Successor. (a)
No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee pursuant to Section 10.08.
(b) The Trustee may resign at any time with respect to the Securities
of one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 10.08 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to such
series.
(c) The Trustee may be removed at any time with respect to the
Securities of any series by Act of the holders of a majority in principal amount
of the outstanding Securities of such series, delivered to the Trustee and the
Company.
(d) If at any time:
(1) the Trustee shall fail to comply with the obligations
imposed upon it under Section 310(b) of the Trust Indenture Act with
respect to Securities of any series after written request therefor by
the Company or any holder of a Security of such series who has been a
bona fide holder of a Security of such series for at least six months;
or
(2) the Trustee shall cease to be eligible under Section 10.06
and shall fail to resign after written request therefor by the Company
or any such holder; or
(3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
property shall be appointed or any public officer shall take charge or
42
control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation;
then, in any such case, (i) the Company, by or pursuant to a Board Resolution,
may remove the Trustee with respect to all Securities or the Securities of such
series, or (ii) subject to Section 315(e) of the Trust Indenture Act, any holder
of a Security who has been a bona fide holder of a Security of such series for
at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with
respect to all Securities of such series and the appointment of a successor
Trustee or Trustees.
(e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series which shall occur only with the
express prior written consent of the Company, the Company, by or pursuant to a
Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any
such successor Trustee may be appointed with respect to the Securities of one or
more or all of such series and that at any time there shall be only one Trustee
with respect to the Securities of any particular series) and shall comply with
the applicable requirements of Section 10.08. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the holders of a majority in principal amount of the
outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
10.08, become the successor Trustee with respect to the Securities of such
series and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Securities of any series
shall have been so appointed by the Company or the holders of Securities and
accepted appointment in the manner required by Section 10.08, any holder of a
Security who has been a bona fide holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.
(f) The Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to the
holders of Securities of such series as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor Trustee
with respect to the Securities of such series and the address of its Corporate
Trust Office.
SECTION 10.08. Acceptance of Appointment by Successor. (a) Upon the
appointment hereunder of any successor Trustee with respect to all Securities,
such successor Trustee so appointed shall execute, acknowledge and deliver to
the Company and the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
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conveyance, shall become vested with all the rights, powers, trusts and duties
hereunder of the retiring Trustee; but, on the request of the Company or such
successor Trustee, such retiring Trustee, upon payment of its charges, shall
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee and, subject to Section 5.03,
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder, subject nevertheless to its
claim, if any, provided for in Section 10.05.
(b) Upon the appointment hereunder of any successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and such successor Trustee shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, such successor Trustee all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
as to which the retiring Trustee is not retiring shall continue to be vested in
the retiring Trustee, and (3) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any notice given to, or received by, or any act
or failure to act on the part of any other Trustee hereunder, and, upon the
execution and delivery of such supplemental indenture, the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates other than as hereinafter expressly set forth, and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates; but, on request of the Company or such
successor Trustee, such retiring Trustee, upon payment of its charges with
respect to the Securities of that or those series to which the appointment of
such successor relates and subject to Section 5.03 shall duly assign, transfer
and deliver to such successor Trustee, to the extent contemplated by such
supplemental indenture, the property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.
(c) Upon request of any Person appointed hereunder as a successor
Trustee, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
44
powers and trusts referred to in paragraph (a) or (b) of this Section, as the
case may be.
(d) No Person shall accept its appointment hereunder as a successor
Trustee unless at the time of such acceptance such successor Person shall be
qualified and eligible under this Article.
SECTION 10.09. Merger, Conversion, Consolidation or Succession to
Business. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated
but not delivered by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.
SECTION 10.10. Appointment of Authenticating Agent. The Trustee may
appoint one or more Authenticating Agents acceptable to the Company with respect
to one or more series of Securities which shall be authorized to act on behalf
of the Trustee to authenticate Securities of that or those series issued upon
original issue, exchange, registration of transfer, partial redemption or
pursuant to Section 2.06, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company and,
except as provided in or pursuant to this Indenture, shall at all times be a
corporation that would be permitted by the Trust Indenture Act to act as trustee
under an indenture qualified under the Trust Indenture Act, is authorized under
applicable law and by its charter to act as an Authenticating Agent and has a
combined capital and surplus (computed in accordance with Section 310(a)(2) of
the Trust Indenture Act) of at least $5,000,000. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect specified in this Section.
Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall be the successor of
such Authenticating Agent hereunder, provided such Corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating Agent.
45
An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall (i) mail written notice
of such appointment by first-class mail, postage prepaid, to all holders of
Securities of the series with respect to which such Authenticating Agent shall
serve, as their names and addresses appear in the Security Register. Any
successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.
The provisions of Sections 2.05, 10.02 and 10.03 shall be applicable to
each Authenticating Agent.
If all of the Securities of any series may not be originally issued at
one time, and if the Trustee does not have an office capable of authenticating
Securities upon original issuance located in a Place of Payment where the
Company wishes to have Securities of such series authenticated upon original
issuance, the Trustee, if so requested in writing (which writing need not be
accompanied by or contained in an Officers' Certificate by the Company), shall
appoint in accordance with this Section an Authenticating Agent having an office
in a Place of Payment designated by the Company with respect to such series of
Securities.
The Trustee hereby appoints The First National Bank of Chicago, to act
as Authenticating Agent hereunder.
SECTION 10.11. Notice of Defaults. The Trustee shall, within ninety
days after the occurrence of a default with respect to the Securities of any
series, mail to all holders of Securities of that series entitled to receive
reports pursuant to Section 9.03, notice of all defaults with respect to that
series known to the Trustee, unless such defaults shall have been cured before
the giving of such notice; provided, however, that, except in the case of
default in the payment of the principal of, premium, if any, or interest on any
of the Securities of such series or in the making of any sinking fund payment
with respect to such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors or trustees, the executive
committee, or a trust committee of directors or trustees or Responsible Officers
of the Trustee in good faith determines that the withholding of such notice is
in the interests of the holders of Securities of such series. For the purpose of
this Section, the term "default" means any event which is, or after notice or
lapse of time or both would become, an event of default hereunder.
46
ARTICLE ELEVEN
DEFEASANCE
SECTION 11.01. Discharge of Indenture Upon Payment of Securities. If
and when the principal of, and the premium, if any, and the interest on, all the
Securities outstanding hereunder and all other sums due hereunder shall have
been well and truly paid at the times and in the manner therein and herein
expressed, this Indenture shall cease and determine, and, at the written request
of the Company, accompanied by the Officers' Certificate and Opinion of Counsel
required by Section 14.03, and upon proof being given to the reasonable
satisfaction of the Trustee that all the Securities have been paid or satisfied
and upon payment of the costs, charges and expenses incurred or to be incurred
by the Trustee in relation thereto or in carrying out the provisions of this
Indenture, the Trustee shall cancel this Indenture and execute and deliver to
the company such instruments as shall be requisite to evidence the satisfaction
hereof.
SECTION 11.02. Discharge of Securities of Any Series Upon Deposit of
Moneys. If, at any time after the date hereof, the Company shall deposit with
the Trustee, in trust for the benefit of the holders thereof, (i) funds
sufficient to pay, or (ii) such amount of direct obligations of the United
States of America as will or will together with the income thereon without
consideration of any reinvestment thereof be sufficient to pay, all sums due for
principal of, premium, if any, and interest on the Securities of a particular
series, as they shall become due from time to time, and shall pay all costs,
charges and expenses incurred or to be incurred by the Trustee in relation
thereto or in carrying out the provisions of this Indenture in relation thereto,
this Indenture shall cease to be of further effect with respect to Securities of
such series (except as to (i) rights of registration of transfer, substitution
and exchange of Securities of such series, (ii) rights of holders to receive
payments of principal of, premium, if any, and interest on the Securities of
such series as they shall become due from time to time and other rights, duties
and obligations of Securityholders as beneficiaries hereof with respect to the
amounts so deposited with the Trustee, and (iii) the rights, obligations and
immunities of the Trustee hereunder (for which purposes the Securities of such
series shall be deemed outstanding)), and the Trustee, on the written request of
the Company, accompanied by the Officers' Certificate and Opinion of Counsel
required by Section 14.03, and an Opinion of Counsel to the effect that holders
of the Securities of such series will not recognize income, gain or loss for
Federal income tax purposes as a result of the Company's action under this
Section 11.02 and will be subject to Federal income tax in the same amount, in
the same manner and at the same times as would have been the case if such action
had not been taken, shall execute and deliver to the Company such instruments as
shall be requisite to evidence the satisfaction thereof with respect to
Securities of such series. The Trustee shall apply the moneys so deposited
solely to the payment to the holders of the Securities of such series of all
sums due thereon for principal, premium, if any, and interest, and the Trustee
shall have no claim for itself, for fees, expenses or otherwise, to such moneys
so deposited.
SECTION 11.03. Interest on Moneys Deposited. Neither the Trustee nor
any other paying agent shall be required to pay interest on any moneys deposited
pursuant to the provisions of this Indenture, except such as it shall agree with
47
the Company to pay thereon. Any moneys so deposited for the payment of the
principal of, premium, if any, of interest on the Securities of any series and
remaining unclaimed for three years after the date of the maturity of the
Securities of such series or the date fixed for the redemption of all the
Securities of such series at the time outstanding, as the case may be, shall be
repaid by the Trustee or such other paying agent to the Company upon its written
request and thereafter, anything in this Indenture to the contrary
notwithstanding, any rights of the holders of Securities of such series in
respect of which such moneys shall have been deposited shall be enforceable only
against the Company, and all liability of the Trustee or such other paying agent
with respect to such moneys shall thereafter cease.
Subject to the provisions of the foregoing paragraph, any moneys which
at any time shall be deposited by the Company or on its behalf with the Trustee
or any other paying agent for the purpose of paying the principal of, premium,
if any, and interest on any of the Securities shall be and are hereby assigned,
transferred and set over to the Trustee or such other paying agent in trust for
the respective holders of the Securities for the purpose for which such moneys
shall have been deposited; but such moneys need not be segregated from other
funds except to the extent required by law.
ARTICLE TWELVE
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS, DIRECTORS AND EMPLOYEES
SECTION 12.01. Liability Solely Corporate. No recourse shall be had for
the paying of the principal of, or the premium, if any, or interest on, any
Security or for any claim based thereon or otherwise in respect thereof or of
the indebtedness represented thereby, or upon any obligation, covenant or
agreement of this Indenture, against any incorporator, stockholder, officer,
director or employee, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitutional provision, statute or rule
of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly agreed and understood that this Indenture and the Securities are
solely corporate obligations, and that no personal liability whatsoever shall
attach to, or be incurred by, any incorporator, stockholder, officer, director
or employee, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor
corporation, because of the incurring of the indebtedness hereby authorized or
under or by reason of any of the obligations, covenants, promises or agreements
contained in this Indenture or in any of the Securities or to be implied
herefrom or therefrom, and that all liability, if any, of that character against
every such incorporator, stockholder, officer, director and employee is, by the
acceptance of the Securities and as a condition of, and as part of the
consideration for, the execution of this Indenture and the issue of the
Securities expressly waived and released.
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ARTICLE THIRTEEN
SUPPLEMENTAL INDENTURES
SECTION 13.01. Without Consent of Securityholders, the Company and
Trustee May Enter Into Supplemental Indentures for Specified Purposes. The
Company (when authorized by resolution of its Board of Directors) and the
Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any one
or more of the following purposes:
(a) to add to the covenants and agreements of the Company, to
be observed thereafter and during the period, if any, in such
supplemental indenture or indentures expressed, to surrender any right
or power hereunder conferred upon the Company, and to add events of
default, in each case for the protection or benefit of the holders of
all or any series of the Securities (and if such covenants, agreements,
surrender of rights or powers and events of default are to be for the
benefit of fewer than all series of Securities, stating that such
covenants, agreements, surrender of rights or powers and events of
default are expressly being included for the benefit of such series as
shall be identified therein);
(b) to change or eliminate any provisions of the Indenture
with respect to all or any series of the Securities not then
outstanding (and, if such change is applicable to fewer than all such
series of the Securities, specifying the series to which such change is
applicable), and to specify the rights and remedies of the Trustee and
the holders of such Securities in connection therewith;
(c) to evidence the succession of another corporation to the
Company, the Trustee, or successive successions, and the assumption by
a successor, transferee or lessee corporation of the covenants and
obligations of the Company or Trustee, as the case may be, contained in
the Securities of one or more series or in this Indenture;
(d) to cure any ambiguity or to correct or supplement any
provision contained herein or in any indenture supplemental hereto
which may be defective or inconsistent with any other provision
contained herein or in any supplemental indenture, or to make any other
provision in regard to matters or questions arising under this
Indenture which the Board of Directors of the Company may deem
necessary or desirable and which shall not adversely affect the
interests of the holders of the Securities;
(e) to convey, transfer, assign, mortgage or pledge to the
Trustee as security for the Securities any property or assets which the
Company may be required to convey, transfer, assign, mortgage or pledge
in accordance with the provisions of Section 5.04;
(f) to prohibit the authentication and delivery of additional
series of Securities;
49
(g) to add to or change any of the provisions of this
Indenture to such extent as shall be necessary to permit or facilitate
the issuance of Securities in bearer form, registrable or not
registrable as to principal and with or without interest coupons;
(h) to establish the form and terms of the Securities of any
series as permitted in Sections 2.01 and 2.02, or to authorize the
issuance of additional Securities of a series previously authorized or
to add to the conditions, limitations or restrictions on the authorized
amount, terms or purposes of issue, authentication or delivery of the
Securities of any series, as herein set forth, or other conditions,
limitations or restrictions thereafter to be observed; and
(i) to modify, alter, amend or supplement this Indenture in
any other respect which is not materially adverse to the holders, so
long as such change does not require the consent of the holders
pursuant to any other provision of this Indenture and is not
inconsistent with any other provisions of this Indenture and which, in
the judgment of the Trustee, is not to the prejudice of the Trustee and
maintains adequate protection to the Trustee when the same becomes
operative.
Subject to the provisions of Section 13.03, the Trustee is authorized
to join with the Company in the execution of any such supplemental indenture, to
make the further agreements and stipulations which may be therein contained and
to accept the conveyance, transfer, assignment, mortgage or pledge of any
property or assets thereunder.
Any supplemental indenture authorized by the provisions of this Section
13.01 may be executed by the Company and the Trustee without the consent of the
holders of any of the Securities at the time outstanding, notwithstanding any of
the provisions of Section 13.02.
SECTION 13.02. Modification of Indenture by Supplemental Indenture With
Consent of Securityholders. With the consent (evidenced as provided in Article
Seven) of the holders of not less than 662/3% in aggregate principal amount of
the Securities at the time outstanding which are affected by such indenture
supplemental hereto, the Company, when authorized by a resolution of its Board
of Directors, and the Trustee may from time to time and at any time enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the holders of the
Securities of any series to be affected; provided, however, that no such
supplemental indenture shall (i) extend the fixed maturity of any Securities, or
reduce the rate or extend the time of payment of interest thereon, or reduce the
amount of the principal thereof, or reduce any premium payable upon the
redemption thereof, or make the principal thereof or interest or premium thereon
payable in any coin or currency other than that provided in the Securities, or
impair the right to institute suit for the enforcement of any such payment on or
after the maturity thereof as provided in Section 6.07, without the consent of
the holder of each Security so affected, or (ii) reduce the aforesaid percentage
of Securities of any series, the holders of which are required to consent to any
such supplemental indenture, without the consent of the holders of all the
50
Securities then outstanding, or (iii) modify, without the written consent of the
Trustee, the rights, duties or immunities of the Trustee.
A supplemental indenture which changes or eliminates any provision of
this Indenture which has expressly been included solely for the benefit of one
or more particular series of Securities, or which modifies the rights of the
holders of Securities of such series with respect to such provision, shall be
deemed not to affect the rights under this Indenture of the holders of
Securities of any other series.
It shall not be necessary for the consent of the Securityholders under
this Section 13.02 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 Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section 13.02, the
Company shall mail a notice, setting forth in general terms the substance of
such supplemental indenture, to the holders of Securities affected by such
supplemental indenture at their addresses as the same shall then appear in the
register of the Company. Any failure of the Company to mail such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.
SECTION 13.03. Upon Request of the Company, Trustee to Join in
Execution of Supplemental Indenture. Upon the request of the Company,
accompanied by the Officers' Certificate and Opinion of Counsel required by
Section 14.03 and by
(a) a supplemental indenture duly executed on behalf of the
Company,
(b) a copy of a resolution of the Board of Directors of the
Company, certified by the Secretary or an Assistant Secretary of the
Company, authorizing the execution of said supplemental indenture,
(c) an Opinion of Counsel, stating that said supplemental
indenture complies with, and that the execution thereof is authorized
or permitted by, the provisions of this Indenture, and
(d) if said supplemental indenture shall be executed pursuant
to Section 13.02, evidence (as provided in Article Seven) of the
consent thereto of the Securityholders required to consent thereto as
in Section 13.02 provided,
the Trustee shall join with the Company in the execution of said supplemental
indenture unless said 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 said
supplemental indenture.
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SECTION 13.04. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions of this Article Thirteen,
this Indenture shall be and be deemed to be modified and amended in accordance
therewith and, except as herein otherwise expressly provided, the respective
rights, limitations of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Company and the holders of all of the Securities
or of the Securities of any series affected, as the case may be, 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 13.05. Matters Provided for in Supplemental Indenture May Be
Noted on Securities, or New Securities Appropriately Modified May Be Issued in
Exchange for Outstanding Securities. Securities authenticated and delivered
after the execution of any supplemental indenture pursuant to the provisions of
this Article Thirteen may bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company or the
Trustee shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Board of Directors of the Company, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared by the Company, authenticated by the Trustee and delivered in
exchange for the securities then outstanding in equal aggregate principal
amounts, and such exchange shall be made without cost to the holders of the
Securities.
SECTION 13.06. Supplemental Indentures to Conform to Trust Indenture
Act of 1939. Every supplemental indenture executed pursuant to the provisions of
this Article Thirteen shall conform to the requirements of the Trust Indenture
Act of 1939 as then in effect.
ARTICLE FOURTEEN
MISCELLANEOUS PROVISIONS
SECTION 14.01. Consolidation, Merger, Sale or Lease. Subject to the
provisions of Section 5.06, nothing contained in this Indenture or in the
Securities shall be deemed to prevent the consolidation or merger of the Company
with or into any other corporation, or the merger into the Company of any other
corporation, or the sale or lease by the Company of its property and assets as,
or substantially as, an entirety, or otherwise.
Upon any consolidation or merger, or any sale other than for cash or
lease of all or substantially all of the assets of the Company in accordance
with the provisions of Section 5.06, the corporation formed by such
consolidation or into which the Company shall have been merged or to which such
sale or lease shall have been made shall succeed to and be substituted for the
Company with the same effect as if it had been named herein as a party hereto,
and thereafter from time to time such corporation may exercise each and every
right and power of the Company under this Indenture, in the name of the Company
or in its own name; and any act or proceeding by any provision of this Indenture
52
required or permitted to be done by the Board of Directors or any officer of the
Company may be done with like force and effect by the like board or officer of
any corporation that shall at the time be the successor of the Company
hereunder. In the event of any such sale or conveyance, but not any such lease,
the Company (or any successor corporation which shall theretofore have become
such in the manner described in Section 5.06) shall be discharged from all
obligations and covenants under this Indenture and the Securities and may
thereupon be dissolved and liquidated.
Anything in this Section 14.01 to the contrary notwithstanding, no such
consolidation or merger shall be entered into, and no such conveyance or
transfer shall be made, by the Company with or to another corporation or Person
which has outstanding any obligations secured by a Lien if as a result thereof,
any of the properties of any character owned by the Company immediately prior
thereto would be subject to such Lien, unless simultaneously therewith or prior
thereto effective provision shall be made to secure all of the Securities
equally and ratably with (or prior to) such other secured obligations.
SECTION 14.02. Rights Under Indenture Confined to Parties and Holders
of Securities. Nothing in this Indenture expressed and nothing that may be
implied from any of the provisions hereof is intended, or shall be construed, to
confer upon, or to give to, any Person other than the parties hereto and their
successors and the holders of the Securities any right, remedy or claim under or
by reason of this Indenture or any covenant, condition, stipulation, promise or
agreement hereof, and all covenants, conditions, stipulations, promises and
agreements in this Indenture contained shall be for the sole and exclusive
benefit of the parties hereto and their successors and of the holders of the
Securities.
SECTION 14.03. Evidence of Compliance. As evidence of compliance with
the conditions precedent provided for in this Indenture (including any covenants
compliance with which constitutes a condition precedent) which relate to the
authentication and delivery of the Securities, to the satisfaction and discharge
of this Indenture or to any other action to be taken by the Trustee at the
request or upon the application of the Company, the Company will furnish to the
Trustee an Officers' Certificate, stating that such conditions precedent have
been complied with and an Opinion of Counsel stating that in the opinion of such
Counsel such conditions precedent have been complied with. Such Opinion of
counsel may be in the form and contain such assumptions, qualifications and
limitations as customarily appear in legal opinions issued in the jurisdiction
in which any such opinion of counsel is rendered.
Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include (1) a statement that
the person making such certificate or opinion has read such condition or
covenant; (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based; (3) a statement that, in the opinion of such
person, such examination or investigation as is necessary to enable the
expression of an informed opinion as to whether or not such condition or
covenant has been complied with has been made; and (4) a statement as to whether
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or not, in the opinion of such person, such condition or covenant has been
complied with.
Notwithstanding any provision of this Indenture authorizing the Trustee
conclusively to rely upon any certificates or opinions, the Trustee, before
granting any application by the Company or taking or refraining from taking any
other action in reliance thereon, may require any further evidence or make any
further investigation as to the facts or matters stated therein which it may, in
good faith, deem reasonable in the circumstances, and in connection therewith
the Trustee may examine or cause to be examined the pertinent books, records and
premises of the Company or of any Subsidiary; and the Trustee shall, in any such
case, require such further evidence or make such further investigation as may be
requested by the holders of a majority in principal amount of the Securities
then outstanding, provided that, if payment to the Trustee of the costs,
expenses and liabilities likely to be incurred by it in making such
investigation is not reasonably assured to the Trustee by the security afforded
to it by the terms of this Indenture, the Trustee before making such
investigation may require reasonable indemnity against such costs, expenses and
liabilities. Any further evidence which may be requested by the Trustee pursuant
to any of the provisions of this paragraph shall be furnished by the Company at
its own expense; and any cost, expenses and liabilities incurred by the Trustee
pursuant to any of the provisions of this paragraph shall be paid by the
Company, or, if paid by the Trustee, shall be repaid by the Company, upon
demand, with interest at the highest rate borne by the Securities, and, until
such repayment, shall be secured by a lien on any moneys held by the Trustee
hereunder prior to any rights therein of the holders of Securities.
SECTION 14.04. Cancellation of Securities. All Securities paid,
redeemed, exchanged, surrendered for registration of transfer or retired
pursuant to the sinking fund or otherwise shall, if surrendered to the Company
or to any paying agent, be delivered to the Trustee for cancellation and shall
be cancelled by it or, if surrendered to the Trustee, shall be cancelled by it,
and, except as otherwise provided in Sections 2.04, 2.05, 2.07, 4.02, 4.07 and
13.05, no Securities shall be issued under the Indenture in lieu thereof The
Trustee shall make appropriate notations in its records in respect of all such
Securities and shall destroy such Securities and deliver a certificate of such
destruction to the Company. If the Company shall acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation.
SECTION 14.05. Provisions Required by Trust Indenture Act of 1939 to
Control. If any provision of this Indenture limits, qualifies or conflicts with
any duties under any required provision of the Trust Indenture Act imposed
hereon by Section 318(c) thereof, such required provision shall control.
SECTION 14.06. Action of Authorized Committee Deemed to be Action of
Board of Directors. Whenever action is required by this Indenture by the Board
of Directors of the Company and there is at the time constituted a committee of
the Board of Directors duly authorized to take such action, such action by said
committee shall be deemed to be the action of the Board of Directors and shall
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be sufficient for all purposes of this Indenture where action by the Board of
Directors is specified.
SECTION 14.07. Notices. Any notice or demand authorized by this
Indenture to be given to the Company shall be sufficiently given for all
purposes, if it shall be given or made in writing, by hand, telecopier (with
confirmation of receipt) or certified or registered mail (confirmation of
receipt requested) to the Company addressed to it at X.X. Xxx 0000, 0000 X.
Xxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxx 00000-0000 (telephone: (000) 000-0000;
telecopier: (000) 000-0000) to the attention of its General Counsel or at such
other address as may have been furnished in writing to the Trustee by the
Company. Any notice, direction, request or demand to or upon the Trustee shall
be sufficiently given, for all purposes, if it shall be given or made in
writing, by hand, telecopier (with confirmation of receipt) or certified or
registered mail (confirmation of receipt requested) to The First National Bank
of Chicago, One First Xxxxxxxx Xxxxx #0000, Xxxxxxx, XX 00000 (telephone: (312)
000-0000; telecopier: (312) 407- 1708) to the attention of its Corporate Trust
Office, or at such other address as may have been furnished in writing to the
Company by the Trustee. Any notice required or permitted to be given to
Securityholders shall be sufficiently given if given by first class mail,
postage prepaid, to such holders, at their addresses as the same shall appear on
the Security Register. A failure to give notice with respect to any particular
holder or any defect therein shall not affect the sufficiency of notice given to
any other holder. Notice may be waived in writing by the Person entitled to
receive such notice either before or after such event and such waiver shall be
the equivalent of receipt of such notice.
SECTION 14.08. Act of Holders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by or pursuant to
this Indenture to be given or taken by holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such holders
in person or by an agent duly appointed in writing. Except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments or record or both are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments and
any such record (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the "Act" of the holders signing such instrument
or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, shall
be sufficient for any purpose of this Indenture and (subject to Section 315 of
the Trust Indenture Act) conclusive in favor of the Trustee and the Company and
any agent of the Trustee or the Company, if made in the manner provided in this
Section.
Without limiting the generality of this Section, unless otherwise
provided in or pursuant to this Indenture, a holder, including a Depositary that
is a holder of a global Security, may make, give or take, by a proxy, or
proxies, duly appointed in writing, any request, demand, authorization,
direction, notice, consent, waiver or other action provided in or pursuant to
this Indenture to be made, given or taken by holders, and a Depositary that is a
holder of a global Security may provide for the beneficial owners of interests
in any such global Security to direct such Depositary in taking such action
through such Depositary's standing instructions and customary practices. The
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Depositary shall report only one result of its solicitation of proxies to the
Trustee.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner which the Trustee
deems sufficient and in accordance with such reasonable rules as the Trustee may
determine; and the Trustee may in any instance require further proof with
respect to any of the matters referred to in this Section.
(c) The ownership, principal amount and serial numbers of Securities
held by any Person, and the date of the commencement and the date of the
termination of holding the same, shall be proved by the Security Register.
(d) If the Company shall solicit from the holders of any Securities any
request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company shall, by Board Resolution, fix in advance a record date for the
determination of holders of Securities entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act. Such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the holders of Securities of
record at the close of business on such record date shall be deemed to be
holders for the purpose of determining whether holders of the requisite
proportion of outstanding Securities have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other
Act, and for that purpose the outstanding Securities shall be computed as of
such record date; provided that no such authorization, agreement or consent by
the holders of Securities shall be deemed effective unless it shall become
effective pursuant to the provisions of this Indenture not later than six months
after the record date.
(e) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the holder of any Security shall bind every future
holder of the same Security and the holder of every Security issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done or suffered to be done by the Trustee, any Security
Registrar or the Company in reliance thereon, whether or not notation of such
action is made upon such Security.
SECTION 14.09. Payments Due on Non-Business Days. In any case where the
date of maturity of interest on or principal of the Securities or the date fixed
for redemption of any Securities shall not be a business day, then payment of
interest, principal and premium, if any, may be made on the next succeeding
business day with the same force and effect as if made on the date of maturity
and no interest shall accrue for the period after such date.
SECTION 14.10. Execution in Counterparts. This Indenture may be
executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.
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SECTION 14.11. Indenture Deemed a New York Contract. This Indenture and
each Security shall be deemed to be a contract made under the law of the State
of New York, and for all purposes shall be construed in accordance with the law
of said State.
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IN WITNESS WHEREOF, FINOVA CAPITAL CORPORATION has caused this
Indenture to be executed in its corporate name by one of its officers thereunto
duly authorized and to be attested by its Secretary or one of its Assistant
Secretaries, and The First National Bank of Chicago, has caused this Indenture
to be executed in its corporate name by one of its authorized officers thereunto
duly authorized, all as of _______________.
FINOVA CAPITAL CORPORATION
By:
--------------------------------
Attest:
------------------------------------
THE FIRST NATIONAL BANK OF CHICAGO,
as Trustee
By:
--------------------------------
Attest:
------------------------------------
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