Exhibit 4.2
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OMNICOM GROUP INC.
TO
THE CHASE MANHATTAN BANK
Trustee
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INDENTURE
Dated as of January 3, 1997
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4 1/4% Convertible Subordinated Debentures due 2007
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TABLE OF CONTENTS
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ARTICLE I
DEFINITIONS
Section 1.1 Definitions.................................................... 2
Affiliate................................................ 2
Applicable Price......................................... 2
Board of Directors....................................... 2
Business Day............................................. 2
Closing Price............................................ 3
Commission............................................... 3
Common Stock............................................. 3
Company.................................................. 3
Company Notice........................................... 3
Conversion Price......................................... 3
Custodian................................................ 3
Debenture or Debentures.................................. 3
Debentureholder or holder................................ 3
default.................................................. 4
Defaulted Interest....................................... 4
Depositary............................................... 4
Event of Default......................................... 4
Fundamental Change....................................... 4
Fundamental Change Repayment Date........................ 4
Fundamental Change Repayment Notice...................... 4
Fundamental Change Repayment Price....................... 4
Holder Repayment Date.................................... 4
Holder Repayment Notice.................................. 5
Holder Repayment Price................................... 5
Indenture................................................ 5
Initial Purchaser........................................ 5
Officers' Certificate.................................... 5
Opinion of Counsel....................................... 5
outstanding.............................................. 5
Person................................................... 6
PORTAL Market............................................ 6
Predecessor Debenture.................................... 6
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QIB...................................................... 6
Reference Market Price................................... 6
Register................................................. 6
Registration Rights Agreement............................ 7
Regulation S............................................. 7
Responsible Officer...................................... 7
Restricted Securities.................................... 7
Rule 144A................................................ 7
Securities Act........................................... 7
Senior Indebtedness...................................... 7
Subsidiary............................................... 8
Trading Day.............................................. 8
Trust Indenture Act...................................... 8
Trustee.................................................. 8
ARTICLE II
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION
AND EXCHANGE OF DEBENTURES
Section 2.1 Designation Amount and Issue of Debentures.................... 9
Section 2.2 Form of Debentures............................................ 9
Section 2.3 Date and Denomination of Debentures; Payments of Interest..... 10
Section 2.4 Execution of Debentures....................................... 11
Section 2.5 Exchange and Registration of Transfer of Debentures:
Restrictions on Transfer; Depositary.......................... 12
Section 2.6 Mutilated, Destroyed, Lost or Stolen Debentures............... 20
Section 2.7 Temporary Debentures.......................................... 21
Section 2.8 Cancellation of Debentures Paid, Etc.......................... 22
ARTICLE III
REDEMPTION AND REPAYMENT OF DEBENTURES
Section 3.1 Redemption Prices............................................. 22
Section 3.2 Notice of Redemption; Selection of Debentures................. 23
Section 3.3 Payment of Debentures Called for Redemption................... 24
Section 3.4 Conversion Arrangement on Call for Redemption................. 25
Section 3.5 Repayment at Option of Holders................................ 26
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Section 3.6 Repayment at Option of Holders Upon a Fundamental Change...... 28
Section 3.7 Effect of Holder Repayment Notice or Fundamental Change
Repayment Notice and Withdrawal of Such Notices............... 32
Section 3.8 Covenant to Comply with Securities Laws upon
Purchase of Debentures........................................ 33
Section 3.9 No Sinking Fund............................................... 33
ARTICLE IV
SUBORDINATION OF DEBENTURES
Section 4.1 Agreement of Subordination.................................... 33
Section 4.2 Payments to Debentureholders.................................. 33
Section 4.3 Subrogation of Debentures..................................... 35
Section 4.4 Authorization by Debentureholders............................. 36
Section 4.5 Notice to Trustee............................................. 36
Section 4.6 Trustee's Relation to Senior Indebtedness..................... 37
Section 4.7 No Impairment of Subordination................................ 38
Section 4.8 Certain Conversions Deemed Payment............................ 38
Section 4.9 Senior Indebtedness Entitled to Rely.......................... 38
ARTICLE V
PARTICULAR COVENANTS OF THE COMPANY
Section 5.1 Payment of Principal, Premium and Interest.................... 38
Section 5.2 Offices for Notices and Payments.............................. 39
Section 5.3 Appointments to Fill Vacancies in Trustee's Office............ 39
Section 5.4 Provisions as to Paying Agent................................. 40
Section 5.5 Corporate Existence........................................... 41
Section 5.6 Rule 144A Information Requirement............................. 41
Section 5.7 Stay, Extension and Usury Laws................................ 41
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ARTICLE VI
DEBENTUREHOLDERS' LISTS AND REPORTS BY
THE COMPANY AND THE TRUSTEE
Section 6.1 Debentureholders' Lists....................................... 42
Section 6.2 Preservation and Disclosure of Lists.......................... 42
Section 6.3 Reports by Trustee............................................ 42
Section 6.4 Reports by Company............................................ 43
ARTICLE VII
REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS
IN THE EVENT OF DEFAULT
Section 7.1 Events of Default............................................. 43
Section 7.2 Payment of Debentures on Default; Suit Therefor............... 45
Section 7.3 Application of Monies Collected by Trustee.................... 47
Section 7.4 Proceedings by Debentureholder................................ 48
Section 7.5 Proceedings by Trustee........................................ 49
Section 7.6 Remedies Cumulative and Continuing............................ 49
Section 7.7 Direction of Proceedings and Waiver of Defaults by
Majority of Debentureholders.................................. 49
Section 7.8 Notice of Defaults............................................ 50
Section 7.9 Undertaking to Pay Costs...................................... 50
ARTICLE VIII
CONCERNING THE TRUSTEE
Section 8.1 Duties and Responsibilities of Trustee........................ 51
Section 8.2 Reliance on Documents, Opinions, Etc.......................... 52
Section 8.3 No Responsibility for Recitals, Etc........................... 53
Section 8.4 Trustee, Paying Agents, Conversion Agents or Registrar
May Own Debentures............................................ 53
Section 8.5 Monies to Be Held in Trust.................................... 53
Section 8.6 Compensation and Expenses of Trustee.......................... 54
Section 8.7 Officers' Certificate and Opinion of Counsel as Evidence..... 54
Section 8.8 Conflicting Interests of Trustee.............................. 55
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Section 8.9 Eligibility of Trustee........................................ 55
Section 8.10 Resignation or Removal of Trustee............................. 55
Section 8.11 Acceptance by Successor Trustee............................... 56
Section 8.12 Succession by Merger, Etc..................................... 57
Section 8.13 Limitation on Rights of Trustee as Creditor................... 57
ARTICLE IX
CONCERNING THE DEBENTUREHOLDERS
Section 9.1 Action by Debentureholders.................................... 58
Section 9.2 Proof of Execution by Debentureholders........................ 58
Section 9.3 Who Are Deemed Absolute Owners................................ 58
Section 9.4 Company-Owned Debentures Disregarded.......................... 59
Section 9.5 Revocation of Consents; Future Holders Bound.................. 59
ARTICLE X
DEBENTUREHOLDERS' MEETINGS
Section 10.1 Purposes of Meetings.......................................... 60
Section 10.2 Call of Meetings by Trustee................................... 60
Section 10.3 Call of Meetings by Company or Debentureholders............... 60
Section 10.4 Qualifications for Voting..................................... 61
Section 10.5 Regulations................................................... 61
Section 10.6 Voting........................................................ 62
Section 10.7 No Delay of Rights by Meeting................................. 62
ARTICLE XI
SUPPLEMENTAL INDENTURES
Section 11.1 Supplemental Indentures Without Consent of Debentureholders... 62
Section 11.2 Supplemental Indentures with Consent of Debentureholders...... 64
Section 11.3 Effect of Supplemental Indenture.............................. 65
Section 11.4 Notation on Debentures........................................ 65
Section 11.5 Evidence of Compliance of Supplemental Indenture to Be
Furnished Trustee............................................. 65
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ARTICLE XII
CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
Section 12.1 Company May Consolidate Etc. on Certain Terms................. 65
Section 12.2 Successor Corporation to Be Substituted....................... 66
Section 12.3 Opinion of Counsel to Be Given Trustee........................ 67
ARTICLE XIII
SATISFACTION AND DISCHARGE OF INDENTURE
Section 13.1 Discharge of Indenture........................................ 67
Section 13.2 Deposited Monies to Be Held in Trust by Trustee............... 68
Section 13.3 Paying Agent to Repay Monies Held............................. 68
Section 13.4 Return of Unclaimed Monies.................................... 68
ARTICLE XIV
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
Section 14.1 Indenture and Debentures Solely Corporate Obligations......... 68
ARTICLE XV
CONVERSION OF DEBENTURES
Section 15.1 Right to Convert.............................................. 69
Section 15.2 Exercise of Conversion Privilege; Issuance of Common Stock on
Conversion; No Adjustment for Interest or Dividends........... 69
Section 15.3 Payments in Lieu of Fractional Shares......................... 71
Section 15.4 Conversion Price.............................................. 72
Section 15.5 Adjustment of Conversion Price................................ 72
Section 15.6 Effect of Reclassification, Consolidation, Merger or Sale..... 79
Section 15.7 Taxes on Shares Issued........................................ 80
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Section 15.8 Reservation of Shares; Shares to Be Fully Paid; Compliance
with Governmental Requirements; Listing of Common Stock....... 80
Section 15.9 Responsibility of Trustee..................................... 81
Section 15.10 Notice to Holders Prior to Certain Actions.................... 82
ARTICLE XVI
MISCELLANEOUS PROVISIONS
Section 16.1 Provisions Binding on Company's Successors.................... 82
Section 16.2 Official Acts by Successor Corporation........................ 83
Section 16.3 Addresses for Notices, Etc.................................... 83
Section 16.4 Governing Law................................................. 83
Section 16.5 Evidence of Compliance with Conditions Precedent;
Certificates to Trustee....................................... 83
Section 16.6 Statements Required in Certificate or Opinion................. 83
Section 16.7 Legal Holidays................................................ 84
Section 16.8 No Security Interest Created.................................. 84
Section 16.9 Benefits of Indenture......................................... 84
Section 16.10 Table of Contents, Headings, Etc.............................. 84
Section 16.11 Authenticating Agent.......................................... 84
Section 16.12 Execution in Counterparts..................................... 85
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INDENTURE dated as of January 3, 1997, between Omnicom Group Inc., a New
York corporation (hereinafter sometimes called the "Company", as more fully set
forth in Section 1.1), and The Chase Manhattan Bank, duly organized and existing
under the laws of the State of New York, as trustee hereunder (hereinafter
sometimes called the "Trustee", as more fully set forth in Section 1.1).
W I T N E S S E T H:
WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the issue of its 4 1/4% Convertible Subordinated Debentures due 2007
(hereinafter sometimes called the "Debentures"), in an aggregate principal
amount not to exceed $218,500,000) and, to provide the terms and conditions upon
which the Debentures are to be authenticated, issued and delivered, the Company
has duly authorized the execution and delivery of this Indenture; and
WHEREAS, the Debentures, the certificate of authentication to be borne by
the Debentures, a form of assignment, a form of option to elect repayment on
January 3, 2003, a form of option to elect repayment upon a Fundamental Change,
a form of conversion notice and a certificate of transfer to be borne by the
Debentures are to be substantially in the forms hereinafter provided for; and
WHEREAS, all acts and things necessary to make the Debentures, when
executed by the Company and authenticated and delivered by the Trustee or a duly
authorized authenticating agent, as in this Indenture provided, the valid,
binding and legal obligations of the Company, and to constitute these presents a
valid agreement according to its terms, have been done and performed, and the
execution of this Indenture and the issue hereunder of the Debentures have in
all respects been duly authorized.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
That in order to declare the terms and conditions upon which the Debentures
are, and are to be, authenticated, issued and delivered, and in consideration of
the premises and of the purchase and acceptance of the Debentures by the holders
thereof, the Company covenants and agrees with the Trustee for the equal and
proportionate benefit of the respective holders from time to time of the
Debentures (except as otherwise provided below), as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. The terms defined in this Section 1.1 (except as
herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section 1.1. All other
terms used in this Indenture that are defined in the Trust Indenture Act or
which are by reference therein defined in the Securities Act (except as herein
otherwise
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expressly provided or unless the context otherwise requires) shall have the
meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of the execution of this Indenture. The
words "herein," "hereof," "hereunder," and words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other
Subdivision. The terms defined in this Article include the plural as well as the
singular.
Affiliate: The term "Affiliate" of any specified Person shall mean any
other Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such specified Person. For the purposes of this
definition, "control," when used with respect to any specified Person means the
power to direct or cause the direction of the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling' and
"controlled" have meanings correlative to the foregoing.
Applicable Price: The term "Applicable Price" means (i) in the event of a
Fundamental Change in which the holders of the Common Stock receive cash, the
amount of cash received by the holder of one share of Common Stock and (ii) in
the event of any other Fundamental Change, the arithmetic average of the Closing
Price for the Common Stock during the ten Trading Days immediately prior to the
record date for the determination of the holders of Common Stock entitled to
receive cash, securities, property or other assets in connection with such
Fundamental Change, or, if there is no such record date, the date upon which the
holders of the Common Stock shall have the right to receive cash, securities,
property or other assets in connection with the Fundamental Change.
Board of Directors: The term "Board of Directors" shall mean the Board of
Directors of the Company or a committee of such Board duly authorized to act for
it hereunder.
Business Day: The term "Business Day" means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions
in The City of New York are authorized or obligated by law or executive order to
close or be closed.
Closing Price: The term "Closing Price" shall have the meaning specified in
Section 15.5(h)(1).
Commission: The term "Commission" shall mean the Securities and Exchange
Commission.
Common Stock: The term "Common Stock" shall mean any stock of any class of
the Company which has no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution or
winding up of the Company and which is not subject to redemption by the Company.
Subject to the provisions of Section 15.6, however, shares issuable on
conversion of Debentures shall include only shares of the class designated as
common stock of the Company at the date of this Indenture or shares of any class
or classes
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resulting from any reclassification or reclassifications thereof and which have
no preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the Company
and which are not subject to redemption by the Company; provided that if at any
time there shall be more than one such resulting class, the shares of each such
class then so issuable shall be substantially in the proportion to which the
total number of shares of such class resulting from all such reclassifications
bears to the total number of shares of all such classes resulting from all such
reclassifications.
Company: The term "Company" shall mean Omnicom Group Inc., a New York
corporation, and subject to the provisions of Article XII, shall include its
successors and assigns.
Company Notice: The term "Company Notice" shall have the meaning specified
in Section 3.6(b) .
Conversion Price: The term "Conversion Price" shall have the meaning
specified in Section 15.4.
Custodian: The term "Custodian" shall mean The Chase Manhattan Bank, as
custodian with respect to the Debentures in global form, or any successor entity
thereto.
Debenture or Debentures: The terms "Debenture" or "Debentures" shall mean
any Debenture or Debentures, as the case may be, authenticated and delivered
under this Indenture, including the 000X Xxxxxx Xxxxxxxxx and the Regulation S
Global Debenture.
Debentureholder or holder: The terms "Debentureholder" or "holder" as
applied to any Debenture, or other similar terms (but excluding the term
"beneficial holder"), shall mean any Person in whose name at the time a
particular Debenture is registered on the Debenture registrar's books.
default: The term "default" shall mean any event that is, or after notice
or passage of time, or both, would be, an Event of Default.
Defaulted Interest: The term "Defaulted Interest" has the meaning ascribed
to it in Section 2.3.
Depositary: The term "Depositary" means, with respect to the Debentures
issuable or issued in whole or in part in global form, the Person specified in
Section 2.5(d) as the Depositary with respect to the Debentures, until a
successor shall have been appointed and become such pursuant to the applicable
provisions of this Indenture, and thereafter, "Depositary" shall mean or include
such successor.
Event of Default: The term "Event of Default" shall mean any event
specified in Section 7.1(a), (b), (c), (d) or (e).
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Exchange Act: The term "Exchange Act" shall mean the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder,
as in effect from time to time.
Fundamental Change: The term "Fundamental Change" means the occurrence of
any transaction or event in connection with which all or substantially all the
Common Stock shall be exchanged for, converted into, acquired for or constitute
the right to receive consideration (whether by means of an exchange offer,
liquidation, tender offer, consolidation, merger, combination, reclassification,
recapitalization or otherwise) which is not all or substantially all common
stock listed (or, upon consummation of or immediately following such transaction
or event, which will be listed) on a national securities exchange in the United
States or approved for quotation in the Nasdaq National Market or any similar
system of automated dissemination of quotations of securities prices in the
United States.
Fundamental Change Repayment Date: The term "Fundamental Change Repayment
Date" has the meaning ascribed to it in Section 3.6(a).
Fundamental Change Repayment Notice: The term "Fundamental Change Repayment
Notice" has the meaning ascribed to it in Section 3.6(c).
Fundamental Change Repayment Price: The term "Fundamental Change Repayment
Price" has the meaning ascribed to it in Section 3.6(b).
Holder Repayment Date: The term "Holder Repayment Date" shall mean January
3, 2003.
Holder Repayment Notice: The term "Holder Repayment Notice" has the meaning
ascribed to it in Section 3.5(a).
Holder Repayment Price: The term "Holder Repayment Price" has the meaning
ascribed to it in Section 3.5(a)
Indenture: The term "Indenture" shall mean this instrument as originally
executed or, if amended or supplemented as herein provided, as so amended or
supplemented.
Initial Purchaser: The term "Initial Purchaser" means Xxxxxx Xxxxxxx & Co.
Incorporated.
Officers' Certificate: The term "Officers' Certificate", when used with
respect to the Company, shall mean a certificate signed by the President, the
Chief Executive Officer or the Chief Financial Officer and by the Treasurer or
the Secretary of the Company that meets the requirement of Sections 16.5 and
16.6.
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Opinion of Counsel: The term "Opinion of Counsel" shall mean an opinion in
writing signed by legal counsel, who may be an employee of or counsel to the
Company, or other counsel acceptable to the Trustee which opinion meets the
requirements of Sections 16.5 and 16.6.
outstanding: The term "outstanding," (except as otherwise provided in
Section 8.10) when used with reference to Debentures, shall, subject to the
provisions of Section 9.4, mean, as of any particular time, all Debentures
authenticated and delivered by the Trustee under this Indenture, except
(a) Debentures theretofore canceled by the Trustee or delivered to the
Trustee for cancellation;
(b) Debentures, or portions thereof, (i) for the payment or redemption
of which monies in the necessary amount shall have been deposited in trust
with the Trustee or with any paying agent (other than the Company) or (ii)
which shall have been set aside and segregated in trust by the Company (if
the Company shall act as its own paying agent), provided that if such
Debentures are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as in Article III provided, or provision
satisfactory to the Trustee shall have been made for giving such notice;
(c) Debentures paid or Debentures in lieu of or in substitution for
which other Debentures shall have been authenticated and delivered pursuant
to the terms of Section 2.6 unless proof satisfactory to the Trustee is
presented that any such Debentures are held by bona fide holders in due
course; and
(d) Debentures converted into Common Stock pursuant to Article XV and
Debentures deemed not outstanding pursuant to Article III.
Person: The term "Person" shall mean a corporation, an association, a
partnership, an individual, a joint venture, a joint stock company, a trust, an
unincorporated organization or a government or an agency or a political
subdivision thereof.
PORTAL Market: The term "PORTAL Market" shall mean the Private Offerings,
Resales and Trading through Automated Linkages Market operated by the National
Association of Securities Dealers, Inc. or any successor thereto.
Predecessor Debenture: The term "Predecessor Debenture" of any particular
Debenture shall mean every previous Debenture evidencing all or a portion of the
same debt as that evidenced by such particular Debenture; and, for the purposes
of this definition, any Debenture authenticated and delivered under Section 2.6
in lieu of a lost, destroyed or stolen Debenture shall be deemed to evidence the
same debt as the lost, destroyed or stolen Debenture that it replaces.
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Principal Office of the Trustee: The term "principal office of the
Trustee", or other similar term, shall mean the principal office of the Trustee
at which at any particular time its corporate trust business shall be
administered, which office is, at the date as of which this Indenture is dated,
located at 000 Xxxx 00xx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 10001- 2697.
QIB: The term "QIB" shall mean a "qualified institutional buyer" as defined
in Rule 144A.
Reference Market Price: The term "Reference Market Price" shall initially
mean $30.92 and, in the event of any adjustment to the Conversion Price pursuant
to Sections 15.5(a), (b), (c), (d), (e), (f) or (g), the Reference Market Price
shall also be adjusted so that the ratio of the Reference Market Price to the
Conversion Price after giving effect to any such adjustment shall always be the
same as the ratio of $30.92 to the initial Conversion Price specified in the
form of Debenture attached hereto (without regard to any adjustment thereto).
Register: The term "Register" shall have the meaning specified in Section
2.5(2).
Registration Rights Agreement: The term "Registration Rights Agreement"
means that certain Registration Rights Agreement, dated as of January 3, 1997,
between the Company and the Initial Purchaser.
Regulation S: The term "Regulation S" shall mean Regulation S promulgated
under the Securities Act.
Responsible Officer: The term "Responsible Officer," when used with respect
to the Trustee, shall mean any officer assigned by the Trustee to administer
this Indenture and also shall mean, with respect to a particular trust matter
any other officers to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.
Restricted Securities: The term "Restricted Securities" has the meaning
specified in Section 2.5(d).
Rule 144A: The term "Rule 144A" shall mean Rule 144A promulgated under the
Securities Act.
Securities Act: The term "Securities Act" shall mean the Securities Act of
1933, as amended, and the rules and regulations promulgated thereunder.
Senior Indebtedness: The term "Senior Indebtedness" shall mean the
principal of, premium, if any, interest on, and any other payment due pursuant
to any of the following, whether outstanding at the date hereof or hereafter
incurred or created:
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(a) all indebtedness of the Company for money borrowed (including any
indebtedness secured by a conditional sales contract, mortgage or other
lien which is (i) given to secure all or part of the purchase price of
property subject thereto, whether given to the vendor of such property or
to another or (ii) existing on property at the time of acquisition
thereof);
(b) all indebtedness of the Company evidenced by notes, debentures,
bonds or other securities sold by the Company for money;
(c) all lease obligations of the Company which are capitalized on the
books of the Company in accordance with generally accepted accounting
principles;
(d) all indebtedness of others of the kinds described in either of the
preceding clause (a) or (b) and all lease obligations of others of the kind
described in the preceding clause (c) assumed by or guaranteed in any
manner by the Company or in effect guaranteed by the Company through an
agreement to purchase, contingent or otherwise; and
(e) all renewals, extensions or refundings of indebtedness of the
kinds described in any of the preceding clauses (a), (b) and (d) and all
renewals or extensions of lease obligations of the kinds described in
either of the preceding clauses (c) and (d);
unless, in the case of any particular indebtedness, lease, renewal, extension or
refunding, the instrument or lease creating or evidencing the same or the
assumption or guarantee of the same expressly provides that such indebtedness,
lease, renewal, extension or refunding is not superior in right of payment to,
or is pari passu with, the Debentures.
Subsidiary: The term "Subsidiary" means, with respect to any Person, (i)
any corporation, association or other business entity of which more than 50% of
the total voting power of shares of capital stock entitled (without regard to
the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other subsidiaries of that
Person (or a combination thereof) and (ii) any partnership (a) the sole general
partner or managing general partner of which is such Person or a subsidiary of
such Person or (b) the only general partners of which are such Person or of one
or more subsidiaries of such Person (or any combination thereof).
Trading Day: The term "Trading Day" shall have the meaning specified in
Section 15.5(h)(5).
Trust Indenture Act: The term "Trust Indenture Act" shall mean the Trust
Indenture Act of 1939, as amended, as it was in force at the date of execution
of this Indenture, except as provided in Sections 11.3 and 15.6; provided,
however, that in the event the Trust Indenture Act
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of 1939 is amended after the date hereof, the term "Trust Indenture Act" shall
mean, to the extent required by such amendment, the Trust Indenture Act of 1939
as so amended.
Trustee: The term "Trustee" shall mean The Chase Manhattan Bank and its
successors and any corporation resulting from or surviving any consolidation or
merger to which it or its successors may be a party and any successor trustee at
the time serving as successor trustee hereunder.
The definitions of certain other terms are as specified in Sections 2.5 and
3.5 and Article XV.
ARTICLE II
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION
AND EXCHANGE OF DEBENTURES
Section 2.1 Designation Amount and Issue of Debentures. The Debentures
shall be designated as "4 1/4% Convertible Subordinated Debentures due 2007."
Debentures not to exceed the aggregate principal amount of $190,000,000 (or
$218,500,000 if the Initial Purchaser notifies the Trustee in writing that the
over-allotment option set forth in Section 2 of the Placement Agreement dated
December 11, 1996 (as amended from time to time by the parties thereto) by and
between the Company and the Initial Purchaser is exercised in full) (except
pursuant to Sections 2.5, 2.6, 3.3, 3.5 and 15.2 hereof) upon the execution of
this Indenture, or from time to time thereafter, may be executed by the Company
and delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Debentures to or upon the Trustee's receipt of the
written order of the Company, signed by its President, Chief Executive Officer
or Chief Financial Officer, and the other documents required pursuant to
Sections 16.5 and 16.6 hereof, without any further action of the Company
hereunder.
Section 2.2 Form of Debentures. The Debentures and the Trustee's
certificate of authentication to be borne by such Debentures shall be
substantially in the form set forth in Exhibit A.
Any of the Debentures may have such letters, numbers or other marks of
identification and such notations, legends and endorsements as the officers
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
securities exchange or automated quotation system on which the Debentures may be
listed, or to conform to usage.
Any Debenture in global form shall represent such of the outstanding
Debentures as shall be specified therein and shall provide that it shall
represent the aggregate amount of outstanding
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Debentures from time to time endorsed thereon and that the aggregate amount of
outstanding Debentures represented thereby may from time to time be increased or
reduced to reflect transfers or exchanges permitted hereby. Any endorsement of a
Debenture in global form to reflect the amount of any increase or decrease in
the amount of outstanding Debentures represented thereby shall be made by the
Trustee or the Custodian, at the direction of the Trustee, in such manner and
upon instructions given by the holder of such Debentures in accordance with this
Indenture. Payment of principal of and interest and premium, if any, on any
Debenture in global form shall be made to the holder of such Debenture.
The terms and provisions contained in the form of Debenture attached as
Exhibit A hereto shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Company and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby.
Section 2.3 Date and Denomination of Debentures; Payments of Interest. The
Debentures shall be issuable in registered form without coupons in denominations
of $1,000 principal amount and integral multiples thereof. Every Debenture shall
be dated the date of its authentication and shall bear interest from the
applicable date in each case as specified on the face of the form of Debenture
attached as Exhibit A hereto. Interest on the Debentures shall be computed on
the basis of a 360-day year comprised of twelve 30-day months.
The Person in whose name any Debenture (or its Predecessor Debenture) 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 Debenture upon
any transfer or exchange subsequent to the record date and prior to such
interest payment date. As provided in Section 15.2, and subject to the exception
contained therein, interest shall not be payable to such Person in the case of
any Debenture or Debentures, or portion thereof, which have been called for
redemption and which are converted on a date subsequent to such record date and
prior to such interest payment date. Interest may, as the Company shall specify
to the paying agent in writing be paid either (i) by check mailed to the address
of the Person entitled thereto as it appears on the Register or (ii) by wire
transfer of immediately available funds to an account maintained by such Person
located in the United States; provided, however, that payments to the Depositary
will be made by wire transfer of immediately available funds to the account of
the Depositary or its nominee. The term "record date" with respect to any
interest payment date shall mean the December 19 or June 18 preceding said
January 3 or July 3, respectively.
Any interest on any Debenture which is payable, but is not punctually paid
or duly provided for, on any said January 3 or July 3 (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Debentureholder on the
relevant record date by virtue of his having been such Debentureholder; and such
Defaulted Interest shall be paid by the Company, at its election in each case,
as provided in clause (1) or (2) below;
9
(1) The Company may elect to make payment of any Defaulted Interest to
the Persons in whose names the Debentures (or their respective Predecessor
Debentures) are registered at the close of business on a special record
date for the payment of such Defaulted Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of
the amount of Defaulted Interest proposed to be paid on each Debenture and
the date of the proposed payment (which shall be not less than twenty-five
(25) days after the receipt by the Trustee of such notice, unless the
Trustee shall consent to an earlier date), and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall
make arrangements satisfactory to the Trustee for such deposit prior to the
date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in
this clause provided. Thereupon the Trustee shall fix a special record date
for the payment of such Defaulted Interest which shall be not more than
fifteen (15) days and not less than ten (10) days prior to the date of the
proposed payment and not less than ten (10) days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed,
first-class postage prepaid to each Debentureholder at his address as it
appears on the Register, not less than ten (10) days prior to such special
record date. Notice of the proposed payment of such Defaulted Interest and
the special record date therefor having been so mailed, such Defaulted
Interest shall be paid to the Persons in whose names the Debentures (or
their respective Predecessor Debentures) were registered at the close of
business on such special record date and shall no longer be payable
pursuant to the following clause (2).
(2) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any
securities exchange or automated quotation system on which the Debentures
may be listed or designated for issuance, and upon such notice as may be
required by such exchange or automated quotation system, if, after notice
given by the Company to the Trustee of the proposed payment pursuant to
this clause, such manner of payment shall be deemed practicable by the
Trustee.
Section 2.4 Execution of Debentures. The Debentures shall be signed in the
name and on behalf of the Company by the facsimile signature of its President,
Chief Executive Officer or Chief Financial Officer and attested by the facsimile
signature of its Treasurer or Secretary (which may be printed, engraved or
otherwise reproduced thereon, by facsimile or otherwise). Only such Debentures
as shall bear thereon a certificate of authentication substantially in the form
set forth on the form of Debenture attached as Exhibit A hereto, manually
executed by the Trustee (or an authenticating agent appointed by the Trustee as
provided by Section 16.11), shall be entitled to the benefits of this Indenture
or be valid or obligatory for any purpose. Such certificate by the Trustee (or
such an authenticating agent) upon any Debenture executed by the
10
Company shall be conclusive evidence that the Debenture so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture.
In case any officer of the Company who shall have signed any of the
Debentures shall cease to be such officer before the Debentures so signed shall
have been authenticated and delivered by the Trustee, or disposed of by the
Company, such Debentures nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Debentures had not ceased to be
such officer of the Company; and any Debenture may be signed on behalf of the
Company by such persons as, at the actual date of the execution of such
Debenture, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer.
Section 2.5 Exchange and Registration of Transfer of Debentures:
Restrictions on Transfer; Depositary.
(a) The Company shall keep at its principal office, or shall cause to be
kept, at one of the offices or agencies maintained pursuant to Section 5.2, a
register (the "Register") in which, subject to such reasonable regulations as it
may prescribe, Debentures shall be registered and the transfer of Debentures
shall be registered as in this Article II provided. Such Register shall be in
written form or in any other form capable of being converted into written form
within a reasonable time. At all reasonable times such Register shall be open
for inspection by the Trustee. Upon due presentment for registration of transfer
of any Debenture at any office or agency maintained by the Company pursuant to
Section 5.2, the Company shall execute and register and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new
Debenture or Debentures for an equal aggregate principal amount. The Trustee is
hereby appointed "Debenture registrar" for the purpose of registering Debentures
and transfers of Debentures as herein provided. The Company may appoint one or
more co-registrars in accordance with Section 5.2.
Upon due presentment for registration of transfer of any Debenture to the
Trustee and satisfaction of the requirements for such transfer set forth in this
Section 2.5, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Debentures of any authorized denominations and of a like aggregate principal
amount and bearing such restrictive legends as may be required by this
Indenture, without charge except for any tax or other governmental charge
imposed in connection imposed herewith.
Debentures may be exchanged for a like aggregate principal amount of
Debentures of other authorized denominations. Debentures to be exchanged shall
be surrendered at any office or agency to be maintained by the Company pursuant
to Section 5.2 and the Company shall execute and register and the Trustee shall
authenticate and deliver in exchange therefor the
11
Debenture or Debentures which the Debentureholder making the exchange shall be
entitled to receive, bearing registration numbers not contemporaneously
outstanding.
All Debentures issued upon any registration of transfer or exchange of
Debentures shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Debentures
surrendered upon such registration of transfer or exchange.
All Debentures presented or surrendered for registration of transfer or for
exchange, redemption or conversion shall (if so required by the Company or the
Debenture registrar) be duly endorsed, or be accompanied by a written instrument
or instruments of transfer in form satisfactory to the Company, and the
Debentures shall be duly executed by the Debentureholder thereof or his attorney
duly authorized in writing.
No service charge shall be made for any registration of transfer or
exchange of Debentures, but the Company may require payment of a sum sufficient
to cover any tax, assessment or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Debentures.
Neither the Company nor the Trustee shall be required to exchange or
register a transfer of (i) any Debentures for a period of fifteen (15) days next
preceding any selection of Debentures to be redeemed or (ii) any Debentures or
portions thereof called for redemption pursuant to Article III or (iii) any
Debentures or portion thereof surrendered for conversion pursuant to Article XV
or (iv) any Debentures or portions thereof surrendered for repayment pursuant to
Article III.
(b) So long as the Debentures are eligible for book-entry settlement with
the Depositary, or unless otherwise required by law, all Debentures that are so
eligible may be represented by one or more Debentures in global form registered
in the name of the Depositary or the nominee of the Depositary, except as
otherwise specified below. The transfer and exchange of beneficial interests in
any such Debenture in global form shall be effected through the Depositary in
accordance with this Indenture (including the restrictions on transfer set forth
herein) and the procedures of the Depositary therefor.
Debentures that upon initial issuance are beneficially owned by QIBs will
be represented by a global Debenture (the "144A Global Debenture"), and
Debentures that upon initial issuance are beneficially owned by Non-U.S. Persons
will be represented by another global Debenture (the "Regulation S Global
Debenture"). Transfers of interests in the Debentures between the 000X Xxxxxx
Xxxxxxxxx and the Regulation S Global Debenture will be made in accordance with
the standing instructions and procedures of the Depositary and its participants.
The Trustee shall make appropriate endorsements to reflect increases or
decreases in the principal amounts of such global Debentures as set forth on the
face of the Debenture ("Principal Amount") to reflect any such transfers.
12
Except as provided below, beneficial owners of a Debenture in global form
shall not be entitled to have certificates registered in their names, will not
receive or be entitled to receive physical delivery of certificates in
definitive form and will not be considered holders of such Debentures in global
form.
(c) So long as the Debentures are eligible for book-entry settlement, or
unless otherwise required by law, as set forth in an Officers' Certificate
delivered to the Trustee, upon receipt by the Trustee of any definitive
Debenture or Debentures for registration of transfer, together with (i) the form
of assignment duly completed with an indication that such transfer is being made
pursuant to Rule 144A, the Trustee shall make an endorsement on the 000X Xxxxxx
Xxxxxxxxx to reflect an increase in the aggregate Principal Amount represented
by such 000X Xxxxxx Xxxxxxxxx equal to the principal amount of the definitive
Debenture or Debentures being so transferred, and the Trustee shall cancel such
definitive Debenture or Debentures, in accordance with the standing instructions
and procedures of the Depositary, or (ii) the form of assignment duly completed
with an indication that such transfer is being made pursuant to Regulation S,
the Trustee shall made an endorsement on the Regulation S Global Debenture to
reflect an increase in the aggregate Principal Amount represented by such
Regulation S Global Debenture equal to the principal amount of the definitive
Debenture or Debentures being so transferred, and the Trustee shall cancel such
definitive Debenture or Debentures in accordance with the standing instructions
and procedures of the Depositary. Notwithstanding the foregoing, (i) no
definitive Debenture, or portion thereof, as to which the Trustee was notified
in writing by the Company that the Company or any Affiliate of the Company held
any beneficial interest therein, shall be included in such 000X Xxxxxx Xxxxxxxxx
or Regulations S Global Debenture and (ii) the Trustee shall issue Debentures in
definitive form upon registration of transfer of any beneficial interest in a
Debenture in global form to the Company or any Affiliate of the Company,
provided the Trustee has been notified in writing by the Company or the
transferor that such beneficial interest is being transferred to the Company or
any Affiliate of the Company.
Any Debenture in global form may be endorsed with or have incorporated in
the text thereof such legends or recitals or changes not inconsistent with the
provisions of this Indenture as may be required by the Custodian, the Depositary
or by the National Association of Securities Dealers, Inc. in order for the
Debentures to be tradeable on the PORTAL Market or as may be required for the
Debentures to be tradeable on any other market developed for trading of
securities pursuant to Rule 144A or Regulation S or required to comply with any
applicable law or any regulation thereunder or with the rules and regulations of
any securities exchange or automated quotation system upon which the Debentures
may be listed or traded or to conform with any usage with respect thereto, or to
indicate any special limitations or restrictions to which any particular
Debentures are subject.
(d) Every Debenture that bears or is required under this Section 2.5(d) to
bear the legend set forth in this Section 2.5(d) (together with any Common Stock
issued upon conversion of the Debentures and required to bear the legend set
forth in Section 2.5(e), collectively, the "Restricted Securities") shall be
subject to the restrictions on transfer set forth in this Section 2.5
13
(d) (including those set forth in the legend set forth below) unless such
restrictions on transfer shall be waived by written consent of the Company, and
the holder of each such Restricted Debenture, by such Debentureholder's
acceptance thereof, agrees to be bound by all such restrictions on transfer. As
used in Sections 2.5(d) and 2.5(e), the term "transfer" encompasses any sale,
pledge, transfer or other disposition whatsoever of any Restricted Security.
Until written notification by the Company to the Trustee of the expiration
of the holding period applicable to sales thereof under Rule 144(k) under the
Securities Act (or any successor provision), any certificate evidencing such
Debenture (and all securities issued in exchange therefor or substitution
thereof, other than Common Stock, if any, issued upon conversion thereof, which
shall bear the legend set forth in Section 2.5(e), if applicable) shall bear a
legend in substantially the following form, unless such Debenture has been sold
pursuant to a registration statement that has been declared effective under the
Securities Act (and which continues to be effective at the time of such
transfer), or unless otherwise agreed by the Company (with written notice
thereof by the Company to the Trustee and the Debenture registrar):
THE DEBENTURE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR"
(AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES
ACT) ("INSTITUTIONAL ACCREDITED INVESTOR") OR (C) IT IS NOT A U.S.
PERSON AND IS ACQUIRING THE DEBENTURE EVIDENCED HEREBY IN AN OFFSHORE
TRANSACTION; (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE
HOLDING PERIOD APPLICABLE TO SALES OF THE SECURITY EVIDENCED HEREBY
UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), RESELL OR OTHERWISE TRANSFER THE DEBENTURE EVIDENCED
HEREBY OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH DEBENTURE
EXCEPT (A) TO OMNICOM GROUP INC. OR ANY SUBSIDIARY THEREOF, (B) INSIDE
THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE
WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES
TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER,
FURNISHES TO THE CHASE MANHATTAN BANK, AS TRUSTEE (OR A SUCCESSOR
TRUSTEE, AS APPLICABLE), A SIGNED LETTER CONTAINING CERTAIN
14
REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON
TRANSFER OF THE DEBENTURE EVIDENCED HEREBY (THE FORM OF WHICH LETTER
CAN BE OBTAINED FROM SUCH TRUSTEE OR A SUCCESSOR TRUSTEE, AS
APPLICABLE), (D) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904
UNDER THE SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE) OR (F) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER
(OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(F) ABOVE), IT WILL FURNISH
TO THE CHASE MANHATTAN BANK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS
APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION
AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING
MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (4) AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE DEBENTURE EVIDENCED
HEREBY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND. IN CONNECTION WITH ANY TRANSFER OF THE DEBENTURE EVIDENCED
HEREBY PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO
SALES OF THE DEBENTURE EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE
SECURITIES ACT (OR ANY SUCCESSOR PROVISION), THE HOLDER MUST CHECK THE
APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER
OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO THE CHASE MANHATTAN
BANK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE). IF THE
PROPOSED TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR OR A
PURCHASER WHO IS NOT A U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO THE CHASE MANHATTAN BANK, AS TRUSTEE (OR A
SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS
OR OTHER INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE
TRANSFER OF THE DEBENTURE EVIDENCED HEREBY PURSUANT TO CLAUSE 2(F)
ABOVE OR UPON ANY TRANSFER OF THE DEBENTURE EVIDENCED HEREBY UNDER
RULE 144(K) UNDER THE SECURITIES
15
ACT (OR ANY SUCCESSOR PROVISION), AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS
GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.
Any Debenture (or security issued in exchange or substitution therefor) as
to which such restrictions on transfer shall have expired in accordance with
their terms or as to the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of such Debenture for
exchange to the Debenture registrar in accordance with the provisions of this
Section 2.5, be exchanged for a new Debenture or Debentures, of like tenor and
aggregate principal amount, which shall not bear the restrictive legend required
by this Section 2.5(d).
Notwithstanding any other provisions of this Indenture (other than the
provisions set forth in the second paragraph of Section 2.5(b) and in this
Section 2.5(d)), a Debenture in global form may not be transferred as a whole or
in part except by the Depositary to a nominee of the Depositary or by a nominee
of the Depositary to the Depositary or another nominee of the Depositary or by
the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary.
The Depositary shall be a clearing agency registered under the Exchange
Act. The Company initially appoints The Depository Trust Company to act as
Depositary with respect to the Debentures in global form. Initially, the 000X
Xxxxxx Xxxxxxxxx and the Regulation S Global Debenture shall be issued to the
Depositary, registered in the name of Cede & Co., as the nominee of the
Depositary, and deposited with the Custodian for Cede & Co.
If at any time the Depositary for a Debenture in global form notifies the
Company that it is unwilling or unable to continue as Depositary for such
Debenture, the Company may appoint a successor Depositary with respect to such
Debenture. If a successor Depositary is not appointed by the Company within
ninety (90) days after the Company receives such notice, the Company will
execute, and the Trustee, upon receipt of an Officers' Certificate for the
authentication and delivery of Debentures, will authenticate and deliver,
Debentures in certificated form, in aggregate principal amount equal to the
principal amount of such Debenture in global form, in exchange for such
Debenture in global form.
If a Debenture in certificated form is issued in exchange for any portion
of a Debenture in global form after the close of business at the office or
agency where such exchange occurs on any record date and before the opening of
business at such office or agency on the next succeeding interest payment date,
interest will not be payable on such interest payment date in respect of such
Debenture, but will be payable on such interest payment date, subject to the
provisions of Section 2.3, only to the Person to whom interest in respect of
such portion of such Debenture in global form is payable in accordance with the
provisions of this Indenture.
16
Debentures in certificated form issued in exchange for all or a part of a
Debenture in global form pursuant to this Section 2.5 shall be registered in
such names and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. Upon execution and authentication, the Trustee shall
deliver such Debentures in certificated form to the Persons in whose names such
Debentures in certificated form are so registered.
At such time as all interests in a Debenture in global form have been
redeemed, converted, canceled, exchanged for Debentures in certificated form, or
transferred to a transferee who receives Debentures in certificated form
thereof, such Debenture in global form shall, upon receipt thereof, be canceled
by the Trustee in accordance with standing procedures and instructions existing
between the Depositary and the Custodian. At any time prior to such
cancellation, if any interest in a global Debenture is exchanged for Debentures
in certificated form, redeemed, converted, repaid or canceled, or transferred to
a transferee who receives Debentures in certificated form therefor or any
Debenture in certificated form is exchanged or transferred for part of a
Debenture in global form, the principal amount of such Debenture in global form
shall, in accordance with the standing procedures and instructions existing
between the Depositary and the Custodian, be appropriately reduced or increased,
as the case may be, and an endorsement shall be made on such Debenture in global
form, by the Trustee or the Custodian, at the direction of the Trustee, to
reflect such reduction or increase.
(e) Until written notification by the Company to the Trustee of the
expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision), any stock certificate
representing Common Stock issued upon conversion of such Debenture shall bear a
legend in substantially the following form, unless such Common Stock has been
sold pursuant to a registration statement that has been declared effective under
the Securities Act (and which continues to be effective at the time of such
transfer) or such Common Stock has been issued upon conversion of Debentures
that have been transferred pursuant to a registration statement that has been
declared effective under the Securities Act, or unless otherwise agreed by the
Company (with written notice thereof by the Company to the Trustee and the
Debenture registrar):
THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER
HEREOF AGREES THAT UNTIL THE EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THE SECURITY EVIDENCED HEREBY UNDER RULE 144(K)
UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), (1) IT WILL NOT
RESELL OR OTHERWISE TRANSFER THE COMMON STOCK EVIDENCED HEREBY
17
EXCEPT (A) TO OMNICOM GROUP INC. OR ANY SUBSIDIARY THEREOF, (B) INSIDE
THE UNITED STATES TO A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A, (C)
INSIDE THE UNITED STATES TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS
DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT)
THAT PRIOR TO SUCH TRANSFER FURNISHES TO CHASEMELLON SHAREHOLDER
SERVICES, L.L.C., AS TRANSFER AGENT (OR A SUCCESSOR TRANSFER AGENT, AS
APPLICABLE), A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND
AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THE COMMON
STOCK EVIDENCED HEREBY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM
SUCH TRANSFER AGENT OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), (D)
OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR (F)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE
TIME OF SUCH TRANSFER); (2) PRIOR TO SUCH TRANSFER (OTHER THAN A
TRANSFER PURSUANT TO CLAUSE 1(F) ABOVE), IT WILL FURNISH TO
CHASEMELLON SHAREHOLDER SERVICES, L.L.C., AS TRANSFER AGENT (OR A
SUCCESSOR TRANSFER AGENT, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM
THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN
A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND (3) IT WILL DELIVER TO EACH PERSON TO WHOM THE
COMMON STOCK EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER
PURSUANT TO CLAUSE 1(F) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE
TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY PURSUANT TO CLAUSE 1(F)
ABOVE OR UPON ANY TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY AFTER
THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE
SECURITY EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT
(OR ANY SUCCESSOR PROVISION). AS USED HEREIN, THE TERMS "UNITED
STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY
REGULATION S UNDER THE SECURITIES ACT.
18
Any such Common Stock as to which such restrictions on transfer shall have
expired in accordance with their terms or as to which the conditions for removal
of the foregoing legend set forth therein have been satisfied may, upon
surrender of the certificates representing such shares of Common Stock for
exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of
shares of Common Stock, which shall not bear the restrictive legend required by
this Section 2.5(e).
(f) Any Debenture or Common Stock issued upon the conversion or exchange of
a Debenture that, prior to the expiration of the holding period applicable to
sales thereof under Rule 144(k) under the Securities Act (or any successor
provision), is purchased or owned by the Company or any Affiliate thereof may
not be resold by the Company or such Affiliate unless registered under the
Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction which results in such
Debentures or Common Stock, as the case may be, no longer being "restricted
securities" (as defined under Rule 144).
Section 2.6 Mutilated, Destroyed, Lost or Stolen Debentures. In case any
Debenture shall become mutilated or be apparently destroyed, lost or stolen, the
Company in its discretion may execute, and upon its request the Trustee or an
authenticating agent appointed by the Trustee shall authenticate and deliver, a
new Debenture, bearing a number not contemporaneously outstanding, in exchange
and substitution for the mutilated Debenture, or in lieu of and in substitution
for the Debenture so apparently destroyed, lost or stolen. In every case the
applicant for a substituted Debenture shall furnish to the Company, to the
Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to hold each of them harmless for any loss,
liability, cost or expense caused by or connected with such substitution, and,
in every case of destruction, loss or theft, the applicant shall also furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent
evidence to their satisfaction of the destruction, loss or theft of such
Debenture and of the ownership thereof.
Following receipt by the Trustee or such authenticating agent, as the case
may be, of satisfactory security or indemnity and evidence, as described in the
preceding paragraph, the Trustee or such authenticating agent may authenticate
any such substituted Debenture and deliver such Debenture. Upon the issuance of
any substituted Debenture, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses connected therewith. In case any
Debenture which has matured or is about to mature or has been called for
redemption or is about to be converted into Common Stock shall become mutilated
or be destroyed, lost or stolen, the Company may, instead of issuing a
substitute Debenture, pay or authorize the payment of or convert or authorize
the conversion of the same (without surrender thereof except in the case of a
mutilated Debenture), as the case may be, if the applicant for such payment or
conversion shall furnish to the Company, to the Trustee and, if applicable, to
such authenticating agent such security or indemnity as may be required by them
to save each of them harmless for any loss, liability, cost or expense caused by
or connected with such substitution, and, in case of destruction, loss or theft,
evidence satisfactory to the Company, the Trustee and, if applicable,
19
any paying agent or conversion agent of the destruction, loss or theft of such
Debenture and of the ownership thereof.
Every substitute Debenture issued pursuant to the provisions of this
Section 2.6 by virtue of the fact that any Debenture is destroyed, lost or
stolen shall constitute an additional contractual obligation of the Company,
whether or not the apparently destroyed, lost or stolen Debenture shall be found
at any time, and shall be entitled to all the benefits of (but shall be subject
to all the limitations set forth in) this Indenture equally and proportionately
with any and all other Debentures duly issued hereunder. To the extent permitted
by law, all Debentures shall be held and owned upon the express condition that
the foregoing provisions are exclusive with respect to the replacement or
payment or conversion of mutilated, destroyed, lost or stolen Debentures and
shall preclude any and all other rights or remedies notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the
replacement or payment or conversion of negotiable instruments or other
securities without their surrender.
Section 2.7 Temporary Debentures. Pending the preparation of Debentures in
certificated form, the Company may execute and the Trustee or an authenticating
agent appointed by the Trustee shall, upon the request of the Company,
authenticate and deliver temporary Debentures (printed or lithographed).
Temporary Debentures shall be issuable in any authorized denomination, and
substantially in the form of the Debentures in certificated form, but with such
omissions, insertions and variations as may be appropriate for temporary
Debentures, all as may be determined by the Company. Every such temporary
Debenture shall be executed by the Company and authenticated by the Trustee or
such authenticating agent upon the same conditions and in substantially the same
manner, and with the same effect, as the Debentures in certificated form.
Without unreasonable delay the Company will execute and deliver to the Trustee
or such authenticating agent Debentures in certificated form (other than in the
case of Debentures in global form) and thereupon any or all temporary Debentures
(other than any such Debenture in global form) may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to Section
5.2 and the Trustee or such authenticating agent shall authenticate and deliver
in exchange for such temporary Debentures an equal aggregate principal amount of
Debentures in certificated form. Such exchange shall be made by the Company at
its own expense and without any charge therefor. Until so exchanged, the
temporary Debentures shall in all respects be entitled to the same benefits and
subject to the same limitations under this Indenture as Debentures in
certificated form authenticated and delivered hereunder.
Section 2.8 Cancellation of Debentures Paid, Etc. All Debentures
surrendered for the purpose of payment, redemption, conversion, exchange or
registration of transfer, shall, if surrendered to the Company or any paying
agent or any Debenture registrar or any conversion agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be
promptly canceled by it, and no Debentures shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Indenture. The
Trustee shall destroy canceled Debentures (unless the Company directs it to do
otherwise) and, after such
20
destruction, shall deliver a certificate of such destruction to the Company. If
the Company shall acquire any of the Debentures, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Debentures unless and until the same are delivered to the Trustee for
cancellation.
ARTICLE III
REDEMPTION AND REPAYMENT OF DEBENTURES
Section 3.1 Redemption Prices. The Debentures will not be redeemable at the
option of the Company prior to December 29, 2000. At any time on or after
December 29, 2000 and prior to maturity, the Debentures may (unless theretofore
repaid or converted) be redeemed at the option of the Company as a whole, or
from time to time in part, upon notice as set forth in Section 3.2, and at the
following redemption prices (expressed as percentages of the principal amount),
together in each case with accrued interest to, but excluding, the date fixed
for redemption, if redeemed during the 3-month period beginning:
21
Date Percentage Date Percentage
---- ---------- ---- ----------
January 3, 2001......... 108.324% January 3, 2002......... 110.607%
April 3, 2001........... 108.890% April 3, 2002........... 111.207%
July 3, 2001............ 109.448% July 3, 2002............ 111.801%
October 3, 2001......... 110.031% October 3, 2002......... 112.418%
and 100% on or after January 3, 2003; provided that if the date fixed for
redemption is on January 3 or July 3, then the interest payable on such date
shall be paid to the holder of record on the next preceding December 19 or June
18, respectively. If the date fixed for redemption is on or after December 29,
2000 but before January 3, 2001, the redemption price shall be at 108.324% of
the principal amount with accrued interest to, but excluding, January 3, 2001.
Section 3.2 Notice of Redemption; Selection of Debentures. In case the
Company shall desire to exercise the right to redeem all or, as the case may be,
any part of the Debentures pursuant to Section 3.1 for redemption then it, or at
its request, the Trustee in the name of and at the expense of the Company, shall
mail or cause to be mailed a notice of such redemption at least 30 and not more
than 60 days prior to the date fixed for redemption to the holders of Debentures
so to be redeemed as a whole or in part at their last addresses as the same
appear on the Register. Such mailing shall be by first class mail. The notice if
mailed in the manner herein provided shall be conclusively presumed to have been
duly given, whether or not the holder receives such notice. In any case, failure
to give such notice by mail or any defect in the notice to the holder of any
Debenture designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any other Debenture.
Each such notice of redemption shall specify the principal amount of each
Debenture to be redeemed, the date fixed for redemption which shall be a
Business Day, the redemption price at which Debentures are to be redeemed, the
place or places of payment, that payment will be made upon presentation and
surrender of such Debentures, that interest accrued to, but excluding, the date
fixed for redemption (unless the date fixed for redemption is on or after
December 29, 2000 but before January 3, 2001 in which case with accrued interest
to January 3, 2001) will be paid as specified in said notice, and that on and
after said date (or on or after January 3, 2001, if the date fixed for
redemption is on or after December 29, 2000, but before January 3, 2001)
interest thereon or on the portions thereof to be redeemed will cease to accrue.
Such notice shall also state the current Conversion Price and the date on which
the right to convert such Debentures or portions thereof into Common Stock will
expire. If fewer than all the Debentures are to be redeemed, the notice of
redemption shall identify the Debentures to be redeemed. In case any Debenture
is to be redeemed in part only, the notice of redemption shall state the portion
of the principal amount thereof to be redeemed and shall state that on and after
the date fixed for redemption, upon surrender of such Debenture, a new Debenture
or Debentures in principal amount equal to the unredeemed portion thereof will
be issued.
On or before the date fixed for redemption specified in the notice of
redemption given as provided in this Section 3.2, the Company will deposit with
the Trustee or with one or more
22
paying agents (or, if the Company is acting as its own paying agent, set aside,
segregate and hold in trust as provided in Section 5.4) an amount of money
sufficient to redeem on the date fixed for redemption all the Debentures (or
portions thereof) so called for redemption (other than those theretofore
surrendered for conversion into Common Stock) at the appropriate redemption
price, together with accrued interest to, but excluding, the date fixed for
redemption (or to, but excluding, January 3, 2001, if the date fixed for
redemption is on or after December 29, 2000, but before January 3, 2001);
provided that if such payment is made on the date fixed for redemption it must
be received by the Trustee or paying agent, as the case may be, by 11:00 a.m.
New York City time, on such date. If any Debenture called for redemption is
converted pursuant hereto, any money deposited with the Trustee or any paying
agent or so segregated and held in trust for the redemption of such Debenture
shall be paid to the Company upon its request, or, if then held by the Company
shall be discharged from such trust. If fewer than all the Debentures are to be
redeemed, the Company will give the Trustee written notice not less than 60 days
prior to the date fixed for redemption as to the aggregate principal amount of
Debentures to be redeemed.
If less than all of the outstanding Debentures are to be redeemed, the
Trustee shall select the Debentures to be redeemed in principal amounts of
$1,000 or multiples thereof by lot, pro rata or by another method the Trustee
considers fair and appropriate. If a portion of a holder's Debentures is
selected for partial redemption and such holder converts a portion of such
Debentures, such converted portion shall be deemed to be of the portion selected
for redemption. Debentures must be presented for redemption. If the Company
shall acquire any of the Debentures, such acquisition shall not operate as or be
deemed for any purpose to be a redemption or satisfaction of the indebtedness
represented by such Debentures unless and until the same are delivered to the
Trustee for cancellation. The Debentures (or portions thereof) so selected shall
be deemed duly selected for redemption for all purposes hereof, notwithstanding
that any such Debenture is converted as a whole or in part before the mailing of
the notice of redemption.
Upon any redemption of less than all Debentures, the Company and the
Trustee may treat as outstanding any Debentures surrendered for conversion
during the period of fifteen (15) days next preceding the mailing of a notice of
redemption and may treat as outstanding any Debenture authenticated and
delivered during such period in exchange for the unconverted portion of any
Debenture converted in part during such period.
Section 3.3 Payment of Debentures Called for Redemption. If notice of
redemption has been given as above provided, the Debentures or portions of
Debentures with respect to which such notice has been given shall, unless
theretofore converted into Common Stock pursuant to the terms hereof, become due
and payable on the date fixed for redemption and at the place or places stated
in such notice at the applicable redemption price, together with interest
accrued to, but excluding, the date fixed for redemption (or to, but excluding,
January 3, 2001 if the date fixed for redemption is on or after December 29,
2000, but before January 3, 2001), and on and after said date (unless the
Company shall default in the payment of such Debentures at
23
the redemption price, together with interest accrued to said date) interest on
the Debentures or portion of Debentures so called for redemption shall cease to
accrue and such Debentures shall cease after the close of business on the
Business Day immediately preceding the date fixed for redemption to be
convertible into Common Stock and, except as provided in Sections 8.5 and 13.4,
to be entitled to any benefit or security under this Indenture, and the holders
thereof shall have no right in respect of such Debentures except the right to
receive the redemption price thereof and unpaid interest to, but excluding, the
date fixed for redemption (or to January 3, 2001 if the date fixed for
redemption is on or after December 29, 2000, but before January 3, 2001). On
presentation and surrender of such Debentures at a place of payment in said
notice specified, the said Debentures or the specified portions thereof shall be
paid and redeemed by the Company at the applicable redemption price, together
with interest accrued thereon to, but excluding, the date fixed for redemption
(or to, but excluding, January 3, 2001 if the date fixed for redemption is on or
after December 29, 2000, but before January 3, 2001); provided that, if the
applicable date fixed for redemption is an interest payment date, the
semi-annual payment of interest becoming due on such date shall be payable to
the holders of such Debentures registered as such on the relevant record date
instead of the holders surrendering such Debentures for redemption on such date.
Upon presentation of any Debenture redeemed in part only, the Company shall
execute and the Trustee shall authenticate and deliver to the holder thereof, at
the expense of the Company, a new Debenture or Debentures, of authorized
denominations, in principal amount equal to the unredeemed portion of the
Debenture so presented.
Notwithstanding the foregoing, the Trustee shall not redeem any Debentures
or mail any notice of optional redemption during the continuance of a default in
payment of interest or premium on the Debentures or of any Event of Default. If
any Debenture called for redemption shall not be so paid upon surrender thereof
for redemption, the principal and premium, if any, shall, until paid or duly
provided for, bear interest from the date fixed for redemption at the rate borne
by the Debenture and such Debenture shall remain convertible into Common Stock
until the principal and premium, if any, shall have been paid or duly provided
for.
Section 3.4 Conversion Arrangement on Call for Redemption. In connection
with any redemption of Debentures, the Company may arrange for the purchase and
conversion of any Debentures by an agreement with one or more investment bankers
or other purchasers to purchase such Debentures by paying to the Trustee in
trust for the Debentureholders, on or before the date fixed for redemption (if
such payment is made on the date fixed for redemption it must be received by the
Trustee or paying agent, as the case may be, by 11:00 a.m. New York City time,
on such date), an amount not less than the applicable redemption price, together
with interest accrued to, but excluding, the date fixed for redemption (or to,
but excluding, January 3, 2001 if the date fixed for redemption is on or after
December 29, 2000, but before January 3, 2001), of such Debentures.
Notwithstanding anything to the contrary contained in this Article III, the
obligation of the Company to pay the redemption price of such Debentures,
together with interest accrued to, but excluding, the date fixed for redemption
(or to, but excluding, January 3,
24
2001 if the date fixed for redemption is on or after December 29, 2000, but
before January 3, 2001), shall be deemed to be satisfied and discharged to the
extent such amount is so paid by such purchasers. If such an agreement is
entered into, a copy of which will be filed with the Trustee prior to the date
fixed for redemption, any Debentures not duly surrendered for conversion by the
holders thereof may, at the option of the Company, be deemed, to the fullest
extent permitted by law, acquired by such purchasers from such holders and
(notwithstanding anything to the contrary contained in Article XV) surrendered
by such purchasers for conversion, all as of immediately prior to the close of
business on the date fixed for redemption (and the right to convert any such
Debentures shall be extended through such time), subject to payment of the above
amount as aforesaid. At the direction of the Company, the Trustee shall hold and
dispose of any such amount paid to it in the same manner as it would monies
deposited with it by the Company for the redemption of Debentures. Without the
Trustee's prior written consent, no arrangement between the Company and such
purchasers for the purchase and conversion of any Debentures shall increase or
otherwise affect any of the powers, duties, responsibilities or obligations of
the Trustee as set forth in this Indenture, and the Company agrees to indemnify
the Trustee from, and hold it harmless against, any loss, liability or expense
arising out of or in connection with any such arrangement for the purchase and
conversion of any Debentures between the Company and such purchasers to which
the Trustee has not consented in writing, including the costs and expenses
incurred by the Trustee in the defense of any claim or liability arising out of
or in connection with the exercise or performance of any of its powers, duties,
responsibilities or obligations under this Indenture.
Section 3.5 Repayment at Option of Holders.
(a) Notwithstanding the Company's right of redemption, the holder of a
Debenture may elect to have that Debenture or portions thereof (in the principal
amount of $1,000 or any multiple thereof) repaid by the Company on the Holder
Repayment Date. Any such repayment shall be at a repayment price of 112.418% of
the principal amount thereof (the "Holder Repayment Price") with interest
accrued to, but excluding, the Holder Repayment Date on the repaid Debentures.
For a Debenture to be so repaid at the option of the holder, the Company must
receive at an office of one of the Company's paying agents such Debenture with
the form entitled "Option to Elect Repayment on January 3, 2003" on the reverse
thereof duly completed (a "Holder Repayment Notice"), together with such
Debenture duly endorsed, at any time from the opening of business on the date
that is 20 Business Days prior to the Holder Repayment Date until the close of
business on the Business Day immediately preceding such Holder Repayment Date.
In order to exercise the repayment option with respect to any interest in a
Debenture in global form, the beneficial holder must comply with the applicable
procedures of the Depositary, furnish appropriate endorsements and documentation
if required by the Company or the Trustee or paying agent and such notice shall
not have been withdrawn.
Notwithstanding anything herein to the contrary, any holder delivering to
the paying agent the Holder Repayment Notice contemplated by this Section 3.5(a)
shall have the right at any time prior to the close of business on the Business
Day immediately preceding the Holder
25
Repayment Date to withdraw, in whole or in part, such Holder Repayment Notice by
delivery of a written notice of withdrawal to the paying agent in accordance
with Section 3.7. In order to exercise the withdrawal option with respect to any
interest in a Debenture in global form, the beneficial holder must comply with
the applicable procedures of the Depositary.
All questions as to the validity, eligibility (including time of receipt)
and acceptance of any Debenture for repayment shall be determined by the
Company, whose determination shall be final and binding.
Upon presentation of any Debenture to be repaid in part only, pursuant to
this Section 3.5, the Company shall execute and, upon the Company's written
direction to the Trustee, the Trustee shall authenticate and deliver to the
holder thereof, at the expense of the Company, a new Debenture or Debentures, of
authorized denominations, in principal amount equal to the unrepaid portion of
the Debentures so presented.
On or before the Holder Repayment Date, the Company shall deposit with the
Trustee or with one or more paying agents (or, if the Company is acting as its
own paying agent, set aside, segregate and hold in trust as provided in Section
5.4) an amount of money sufficient to pay the aggregate Holder Repayment Price
including any interest accrued to, but excluding, the Holder Repayment Date of
all the Debentures or portions thereof which are to be repaid as of such Holder
Repayment Date; provided that if such payment is made on the Holder Repayment
Date it must be received by the Trustee or paying agent, as the case may be, by
11:00 a.m. New York City time, on such date.
Payment of the Holder Repayment Price, together with any accrued interest,
for a Debenture for which a Holder Repayment Notice has been delivered and not
withdrawn is conditioned upon book-entry transfer or delivery of such Debenture
(together with necessary endorsements) to the Company's paying agent at its
office at 00 Xxxxx Xxxxxx, Room 000, Xxxxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx, 00000,
or any other office of the paying agent maintained for such purpose, at any time
(whether prior to, on or after the Holder Repayment Date) after delivery of such
Holder Repayment Notice. Payment of the Holder Repayment Price of such Debenture
will be made promptly following the later of the Holder Repayment Date or the
time of book-entry transfer of such Debenture or the time of delivery of the
Debentures by mailing checks or by sending a wire transfer for immediately
available funds to an account maintained in the United States for the amount
payable to the holders of such Debentures entitled thereto as they shall appear
on the Register; provided, however, that payments to the Depositary will be made
by wire transfer of immediately available funds to the account of the Depositary
or its nominee.
26
The paying agent shall promptly notify the Company of the receipt by it of
any Holder Repayment Notice or written notice of withdrawal thereof.
(b) The Company shall use its best efforts to have a notice regarding
repayment at the option of the holders on the Holder Repayment Date published at
least once in each of Bloomberg Business News, Dow Xxxxx News (DJN) and Xxxxxx
Financial Report in The City of New York at least 30 days prior to the Holder
Repayment Date. Each published notice shall specify the Holder Repayment Date,
the price at which the Company shall be obligated to repay Debentures, that the
holder must exercise the repayment right prior to the close of business on the
Business Day immediately preceding the Holder Repayment Date, that the holder
shall have the right to withdraw, in whole or in part, any Debentures
surrendered prior to the close of business on the Business Day immediately
preceding the Holder Repayment Date, a description of the procedure which a
Debentureholder must follow to exercise such repayment right and to withdraw any
surrendered Debentures, the place or places where the holder is to surrender
such holder's Debentures, and the amount of interest accrued on each Debenture
to the Holder Repayment Date. The Company shall promptly deliver a copy of each
published notice to the Trustee.
No failure of the Company to give the foregoing notice and no defect
therein shall limit the Debentureholders' repayment rights or affect the
validity of the proceedings for the repayment of the Debentures pursuant to this
Section 3.5.
Section 3.6 Repayment at Option of Holders Upon a Fundamental Change.
(a) If a Fundamental Change occurs at any time while Debentures are
outstanding, each holder of Debentures shall have the right, at such holder's
option, to require the Company to repay such holder with respect to all (and not
less than all for Debentures in certificated form) such holder's Debentures on
the date (the "Fundamental Change Repayment Date") that is the 45th day (or if
such 45th day is not a Business Day, the next succeeding Business Day) after the
date of the Company Notice of such Fundamental Change. Such repayment shall be
made at the following prices (expressed as percentages of the principal amount)
in the event of a Fundamental Change occurring during the 3-month period
beginning:
Date Percentage Date Percentage
---- ---------- ---- ----------
January 3, 1997......... 100.427% January 3, 1999......... 104.142%
April 3, 1997........... 100.875% April 3, 1999........... 104.646%
July 3, 1997............ 101.315% July 3, 1999............ 105.142%
October 3, 1997......... 101.777% October 3, 1999......... 105.660%
January 3, 1998......... 102.230% January 3, 2000......... 106.171%
April 3, 1998........... 102.705% April 3, 2000........... 106.705%
July 3, 1998............ 103.172% July 3, 2000............ 107.231%
October 3, 1998......... 103.661%
27
at a repayment price of 107.781% of the principal amount if a Fundamental Change
occurs on or after October 3, 2000 but before December 29, 2000, and thereafter
at the redemption price set forth under Section 3.1 which would be applicable to
a redemption at the option of the Company; provided in each case that if the
Applicable Price is less than the Reference Market Price, the Company shall
repay such Debentures at a price equal to the foregoing repayment price
multiplied by the fraction obtained by dividing the Applicable Price by the
Reference Market Price. In each case, the Company shall also pay accrued
interest, if any, on such Debentures to, but excluding, the Fundamental Change
Repayment Date; provided, that if such Fundamental Change Repayment Date is
January 3 or July 3, then the interest payable on such date shall be paid to the
holder of record of the Debenture on the next preceding record date.
(b) On or before the tenth day after the occurrence of a Fundamental
Change, the Company, or, at its written request (which must be received by the
Trustee at least five Business Days prior to the date the Trustee is requested
to give notice as described below), the Trustee in the name of and at the
expense of the Company, shall mail or cause to be mailed to all holders of
record on the date of the Fundamental Change a notice (the "Company Notice") of
the occurrence of such Fundamental Change and of the repayment right at the
option of the holders arising as a result thereof. Such notice shall be mailed
in the manner and with the effect set forth in the first paragraph of Section
3.2. The Company shall also use its best efforts to have a notice published at
least once in each of Bloomberg Business News, Dow Xxxxx News (DJN) and Xxxxxx
Financial Report in The City of New York on or before the tenth day after the
occurrence of a Fundamental Change. The Company shall promptly deliver a copy of
each of the published notices and Company Notice to the Trustee.
Each published notice and Company Notice shall specify the circumstances
constituting the Fundamental Change, the Fundamental Change Repayment Date, the
price at which the Company shall be obligated to repay Debentures (the
"Fundamental Change Repayment Price"), that the holder must exercise the
repayment right before the close of business on the Business Day immediately
preceding the Fundamental Change Repayment Date, that the holder shall have the
right to withdraw any Debentures surrendered prior to the close of business on
the Business Day immediately preceding the Fundamental Change Repayment Date, a
description of the procedure which a Debentureholder must follow to exercise
such repayment right and to withdraw any surrendered Debentures, the place or
places where the holder is to surrender such holder's Debentures, and the amount
of interest accrued on each Debenture to, but excluding, the Fundamental Change
Repayment Date.
No failure of the Company to give the foregoing notices and no defect
therein shall limit the Debentureholders' repayment rights or affect the
validity of the proceedings for the repayment of the Debentures pursuant to this
Section 3.6.
(c) For a Debenture to be repaid at the option of the holder resulting from
a Fundamental Change, the Company must receive at an office of one of the
Company's paying agents such Debenture with a form entitled "Option to Elect
Repayment Upon A Fundamental
28
Change" on the reverse thereof duly completed (the "Fundamental Change Repayment
Notice"), together with such Debenture duly endorsed, at any time from the
opening of business on the date that is on or before the 43rd day after the
Company Notice (or if such 43rd day is not a Business Day, the immediately
preceding Business Day) and such Fundamental Change Repayment Notice shall not
have been withdrawn. In order to exercise the repayment option with respect to
any interest in a Debenture in global form, the beneficial holder must comply
with the applicable procedures of the Depositary, furnish appropriate
endorsements and documentation if required by the Company or the Trustee or
paying agent and such notice shall not have been withdrawn.
Notwithstanding anything herein to the contrary, any holder delivering to
the paying agent the Fundamental Change Repayment Notice contemplated by this
Section 3.6(c) shall have the right at any time prior to the close of business
on the Business Day immediately preceding the Fundamental Change Repayment Date
to withdraw such Fundamental Change Repayment Notice (as to Debentures in
certificated form, withdrawal must be made in full) by delivery of a written
notice of withdrawal to the paying agent in accordance with Section 3.7. In
order to exercise the withdrawal option with respect to any interest in a
Debenture in global form, the beneficial holder must comply with the applicable
procedures of the Depositary.
All questions as to the validity, eligibility (including time of receipt)
and acceptance of any Debenture for repayment shall be determined by the
Company, whose determination shall be final and binding absent manifest error.
(d) On or before the Fundamental Change Repayment Date, the Company will
deposit with the Trustee or with one or more paying agents (or, if the Company
is acting as its own paying agent, set aside, segregate and hold in trust as
provided in Section 5.4) an amount of money sufficient to repay on the
Fundamental Change Repayment Date all the Debentures which are to be repaid on
such date at the appropriate Fundamental Change Repayment Price, together with
accrued interest to, but excluding, the Fundamental Change Repayment Date;
provided that if such payment is made on the Fundamental Change Repayment Date
it must be received by the Trustee or paying agent, as the case may be, by 11:00
a.m. New York City time, on such date. Payment of the Fundamental Change
Repayment Price, together with any accrued interest, for a Debenture for which a
Fundamental Change Repayment Notice has been delivered and not withdrawn is
conditioned upon book-entry transfer or delivery of such Debenture (together
with necessary endorsements) to the Company's paying agent at its office at 00
Xxxxx Xxxxxx, Room 000, Xxxxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, or any other
office of the Company's paying agent maintained for such purpose, at any time
(whether prior to, on or after the Fundamental Change Repayment Date) after
delivery of such Fundamental Change Repayment Notice. Payment of the Fundamental
Change Repayment Price, together with any accrued interest, for such Debenture
will be made promptly following the later of the Fundamental Change Repayment
Date or the time of book-entry transfer or delivery of such Debenture by mailing
checks or by sending a wire transfer for immediately available funds to an
account maintained in the United States for the amount payable to the holders of
such
29
Debentures entitled thereto as they shall appear on the Register; provided,
however, that payments to the Depositary will be made by wire transfer of
immediately available funds to the account of the Depositary or its nominee. If
the Company's paying agent holds, in accordance with the terms of this
Indenture, money sufficient to pay the Fundamental Change Repayment Price,
together with any accrued interest, of such Debenture on the Fundamental Change
Repayment Date, then on and after such date, such Debenture will cease to be
outstanding, and interest on such Debenture shall cease to accrue, and all other
rights of the holder shall terminate (other than the right to receive the
repayment price upon the time of book-entry transfer or delivery of the
Debentures).
(e) In the case of a consolidation, merger, conveyance, transfer or lease
to which Section 15.6 applies, in which the Common Stock of the Company is
changed or exchanged as a result into the right to receive securities, cash or
other property which includes shares of Common Stock of the Company or another
Person that are, or upon issuance will be, traded on a United States national
securities exchange or approved for trading on an established automated
over-the-counter trading market in the United States and such shares constitute
at the time such change or exchange becomes effective in excess of 50% of the
aggregate fair market value of such securities, cash and other property (as
determined by the Company, which determination shall be conclusive and binding),
then the Person formed by such consolidation or resulting from such merger or
which acquires such assets, as the case may be, shall execute and deliver to the
Trustee a supplemental indenture (accompanied by an Opinion of Counsel that such
supplemental indenture complies with the Trust Indenture Act as in force at the
date of execution of such supplemental indenture) modifying the provisions of
this Indenture relating to the right of holders of the Debentures to cause the
Company to repay the Debentures following a Fundamental Change, including
without limitation the applicable provisions of this Section 3.6 and the
definitions of the Applicable Price, Common Stock, Fundamental Change and
Reference Market Price, as appropriate, as determined in good faith by the
Company (which determination shall be conclusive and binding), to make such
provisions apply to the common stock and the issuer thereof if different from
the Company and Common Stock of the Company (in lieu of the Company and the
Common Stock of the Company).
Section 3.7 Effect of Holder Repayment Notice or Fundamental Change
Repayment Notice and Withdrawal of Such Notices. Upon receipt by the Company of
the Holder Repayment Notice or Fundamental Change Repayment Notice specified in
Section 3.5 or Section 3.6, as applicable, the holder of the Debenture in
respect of which such Holder Repayment Notice or Fundamental Change Repayment
Notice, as the case may be, was given shall (unless such Holder Repayment Notice
or Fundamental Change Repayment Notice is withdrawn as specified in the
following paragraph) thereafter be entitled to receive solely the Holder
Repayment Price or Fundamental Change Repayment Price, as the case may be, with
respect to such Debenture. Such Holder Repayment Price or Fundamental Change
Repayment Price shall be paid to such holder promptly following the later of (x)
the Holder Repayment Date or the Fundamental Change Repayment Date, as the case
may be, with respect to such Debenture (provided the conditions in Section 3.5
or Section 3.6, as applicable, have been satisfied) or (y)
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the time of book-entry transfer or (z) time of delivery of such Debenture to the
paying agent by the holder thereof in the manner required by Section 3.5 or
Section 3.6, as applicable. Debentures in respect of which a Holder Repayment
Notice or Fundamental Change Repayment Notice, as the case may be, has been
given by the holder thereof may not be converted on or after the date of the
delivery of such Holder Repayment Notice (or Fundamental Change Repayment
Notice, as the case may be), unless such Holder Repayment Notice (or Fundamental
Change Repayment Notice, as the case may be) has first been validly withdrawn as
specified in the following paragraph.
A Holder Repayment Notice or Fundamental Change Repayment Notice, as the
case may be, may be withdrawn by means of a written notice of withdrawal
delivered to the office of the paying agent at any time prior to the close of
business on the Business Day immediately preceding the Holder Repayment Date or
the Fundamental Change Repayment Date, as the case may be, to which it relates
specifying:
(1) the certificate number of the Debenture in respect of which such
notice of withdrawal is being submitted,
(2) the principal amount of the Debenture with respect to which such
notice of withdrawal is being submitted, and
(3) the principal amount, if any, of such Debenture which remains
subject to the original Holder Repayment Notice and which has been or will
be delivered for purchase by the Company.
A Fundamental Change Notice must be withdrawn in whole and not in part for
Debentures held in certificated form.
There shall be no repayment of any Debentures pursuant to Section 3.5 or
Section 3.6 if there has occurred (prior to, on or after, as the case may be,
the giving, by the holders of such Debentures, of the required Holder Repayment
Notice or Fundamental Change Repayment Notice, as the case may be), and is
continuing an Event of Default (other than a default in the payment of the
Holder Repayment Price or Fundamental Change Repayment Price, as the case may
be, with respect to such Debentures).
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Section 3.8 Covenant to Comply with Securities Laws upon Purchase of
Debentures. In connection with any offer to purchase or redemption of Debentures
under Section 3.4, 3.5 or 3.6 hereof, the Company shall (i) comply with Rule
13e-4 (which term, as used herein, includes any successor provision thereto)
under the Exchange Act, if applicable, (ii) file the related Schedule 13E-4 (or
any successor schedule, form or report) under the Exchange Act, if applicable,
and (iii) otherwise comply with all Federal and state securities laws so as to
permit the rights and obligations under Sections 3.5 and 3.6 to be exercised in
the time and in the manner specified in Sections 3.5 and 3.6.
Section 3.9 No Sinking Fund. The Debentures shall not be entitled to the
benefit of any sinking fund.
ARTICLE IV
SUBORDINATION OF DEBENTURES
Section 4.1 Agreement of Subordination. The Company covenants and agrees,
and each holder of Debentures issued hereunder by his acceptance thereof
likewise covenants and agrees, that all Debentures shall be issued subject to
the provisions of this Article IV; and each Person holding any Debenture,
whether upon original issue or upon transfer or assignment thereof, accepts and
agrees to be bound by such provisions.
The payment of the principal of, premium, if any, and interest on all
Debentures issued hereunder shall, to the extent and in the manner hereinafter
set forth, be subordinated and subject in right of payment to the prior payment
in full of all Senior Indebtedness, whether outstanding at the date of this
Indenture or thereafter incurred.
No provision of this Article IV shall prevent the occurrence of any default
or Event of Default hereunder.
Section 4.2 Payments to Debentureholders. In the event and during the
continuation of any default in the payment of principal, premium, interest or
any other payment due on any Senior Indebtedness continuing beyond the period of
grace, if any, specified in the instrument or lease evidencing such Senior
Indebtedness, then, unless and until such default shall have been cured or
waived or shall have ceased to exist, no payment shall be made by the Company
with respect to the principal of, or premium, if any, or interest on the
Debentures, except payments made pursuant to Article XIII hereof from monies
deposited with the Trustee pursuant thereto prior to the happening of such
default.
Upon any payment by the Company, or distribution of assets of the Company
of any kind or character, whether in cash, property or securities, to creditors
upon any dissolution or winding-up or liquidation or reorganization of the
Company, whether voluntary or involuntary or
32
in bankruptcy, insolvency, receivership or other proceedings, all amounts due or
to become due upon all Senior Indebtedness shall first be paid in full, or
payment thereof provided for in money in accordance with its terms, before any
payment is made on account of the principal (and premium, if any) or interest on
the Debentures (except payments made pursuant to Article XIII hereof from monies
deposited with the Trustee pursuant thereto prior to the happening of such
dissolution, winding-up, liquidation or reorganization); and upon any such
dissolution or winding-up or liquidation or reorganization any payment by the
Company, or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the holders of the Debentures
or the Trustee would be entitled, except for the provisions of this Article IV,
shall (except as aforesaid) be paid by the Company or by any receiver, trustee
in bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the holders of the Debentures or by the Trustee under this
Indenture if received by them or it, directly to the holders of Senior
Indebtedness (pro rata to such holders on the basis of the respective amounts of
Senior Indebtedness held by such holders, as calculated by the Company) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent
necessary to pay all Senior Indebtedness in full, in money or money's worth,
after giving effect to any concurrent payment or distribution to or for the
holders of Senior Indebtedness, before any payment or distribution is made to
the holders of the Debentures or to the Trustee. By reason of such
subordination, in the event of the Company's dissolution, holders of Senior
Indebtedness may receive more, ratably, and holders of the Debentures may
receive less, ratably, than the other creditors of the Company.
In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, prohibited by the foregoing, shall be received by the
Trustee or the holders of the Debentures before all Senior Indebtedness is paid
in full, or provision is made for such payment in money in accordance with its
terms, such payment or distribution shall be held in trust for the benefit of
and shall be paid over or delivered to the holders of Senior Indebtedness or
their representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any Senior Indebtedness
may have been issued, as their respective interests may appear, as calculated by
the Company, for application to the payment of all Senior Indebtedness remaining
unpaid to the extent necessary to pay all Senior Indebtedness in full in money
in accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Indebtedness.
For purposes of this Article IV, the words, "cash, property or securities"
shall not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article IV with respect to
the Debentures to the payment of all Senior Indebtedness which may at the time
be outstanding; provided that (i) the Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment, and
(ii) the rights of the holders of the
33
Senior Indebtedness (other than leases) and of leases which are assumed are not,
without the consent of such holders, altered by such reorganization or
readjustment. The consolidation of the Company with, or the merger of the
Company into, another corporation or the liquidation or dissolution of the
Company following the conveyance or transfer of its property as an entirety, or
substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article XII hereof shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section 4.2
if such other corporation shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article XII hereof.
Nothing in this Section 4.2 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 8.6.
Section 4.3 Subrogation of Debentures. Subject to the payment in full of
all Senior Indebtedness, the rights of the holders of the Debentures shall be
subrogated to the rights of the holders of Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company
applicable to the Senior Indebtedness until the principal of (and premium, if
any) and interest on the Debentures shall be paid in full; and, for the purposes
of such subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the holders of the
Debentures or the Trustee would be entitled except for the provisions of this
Article IV, and no payment over pursuant to the provisions of this Article IV,
to or for the benefit of the holders of Senior Indebtedness by holders of the
Debentures or the Trustee, shall, as between the Company, its creditors other
than holders of Senior Indebtedness, and the holders of the Debentures, be
deemed to be a payment by the Company to or on account of the Senior
Indebtedness. It is understood that the provisions of this Article IV are and
are intended solely for the purpose of defining the relative rights of the
holders of the Debentures, on the one hand, and the holders of the Senior
Indebtedness, on the other hand.
Nothing contained in this Article IV or elsewhere in this Indenture or in
the Debentures is intended to or shall impair, as between the Company, its
creditors other than the holders of Senior Indebtedness, and the holders of the
Debentures, the obligation of the Company, which is absolute and unconditional,
to pay to the holders of the Debentures the principal of (and premium, if any)
and interest on the Debentures as and when the same shall become due and payable
in accordance with their terms, or is intended to or shall affect the relative
rights of the holders of the Debentures and creditors of the Company other than
the holders of the Senior Indebtedness, nor shall anything herein or therein
prevent the Trustee or the holder of any Debenture from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, subject
to the rights, if any, under this Article IV of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received
upon the exercise of any such remedy.
Upon any payment or distribution of assets of the Company referred to in
this Article IV, the Trustee, subject to the provisions of Section 8.1, and the
holders of the Debentures shall be entitled to rely upon any order or decree
made by any court of competent jurisdiction in which
34
such dissolution, winding-up, liquidation or reorganization proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidating
trustee, agent or other Person making such payment or distribution, delivered to
the Trustee or to the holders of the Debentures, for the purpose of ascertaining
the Persons entitled to participate in such distribution, the holders of the
Senior Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article IV.
Section 4.4 Authorization by Debentureholders. Each holder of a Debenture
by his acceptance thereof authorizes and directs the Trustee in his behalf to
take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article IV and appoints the Trustee his
attorney-in-fact for any and all such purposes.
Section 4.5 Notice to Trustee. The Company shall give prompt written notice
to a Responsible Officer of the Trustee of any fact known to the Company which
would prohibit the making of any payment of monies to or by the Trustee in
respect of the Debentures pursuant to the provisions of this Article IV.
Notwithstanding the provisions of this Article IV or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts which would prohibit the making of any payment of monies to or by the
Trustee in respect of the Debentures pursuant to the provisions of this Article
IV, unless and until a Responsible Officer of the Trustee shall have received
written notice thereof at the Principal Office of the Trustee from the Company
or a holder or holders of Senior Indebtedness or from any trustee therefor; and
before the receipt of any such written notice, the Trustee, subject to the
provisions of Section 8.1, shall be entitled in all respects to assume that no
such facts exist; provided that if on a date not fewer than three business days
prior to the date upon which by the terms hereof any such monies may become
payable for any purpose (including, without limitation, the payment of the
principal of (or premium, if any) or interest on any Debenture) the Trustee
shall not have received, with respect to such monies, the notice provided for in
this Section 4.5, then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such
monies and to apply the same to the purpose for which they were received, and
shall not be affected by any notice to the contrary which may be received by it
on or after such prior date.
Notwithstanding anything to the contrary herein set forth, nothing shall
prevent any payment by the Company or the Trustee to the Debentureholders of
monies (A) in connection with a redemption of Debentures if (i) notice of such
redemption has been given pursuant to Article III or Section 13.1 hereof prior
to the receipt by the Trustee of written notice as aforesaid, and (ii) such
notice of redemption is given not earlier than 60 days before the date fixed for
redemption; and (B) in connection with a repayment of a Debenture pursuant to
Article III if, prior to the receipt by the Trustee of a written notice as
aforesaid, the Company has given notice of a Fundamental Change.
35
The Trustee, subject to the provisions of Section 8.1, shall be entitled to
rely on the delivery to it of a written notice by a Person representing himself
to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to
establish that such notice has been given by a holder of Senior Indebtedness or
a trustee on behalf of any such holder or holders. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of Senior Indebtedness to participate in any
payment or distribution pursuant to this Article IV, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee as
to the amount of Senior Indebtedness held by such Person, the extent to which
such Person is entitled to participate in such payment or distribution and any
other facts pertinent to the rights of such Person under this Article IV, and if
such evidence is not furnished the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.
Section 4.6 Trustee's Relation to Senior Indebtedness. The Trustee in its
individual capacity shall be entitled to all the rights set forth in this
Article IV in respect of any Senior Indebtedness at any time held by it, to the
same extent as any other holder of Senior Indebtedness, and nothing or elsewhere
in this Indenture shall deprive the Trustee of any of its rights as such holder.
With respect to the holders of Senior Indebtedness, the Trustee undertakes
to perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article IV, and no implied covenants or
obligations with respect to the holders of Senior Indebtedness shall be read
into this Indenture against the Trustee. The Trustee shall not be deemed to owe
any fiduciary duty to the holders of Senior Indebtedness and, subject to the
provisions of Section 8.1, the Trustee shall not be liable to any holder of
Senior Indebtedness if it shall pay over or deliver to holders of Debentures,
the Company or any other Person money or assets to which any holder of Senior
Indebtedness shall be entitled by virtue of this Article IV or otherwise.
Section 4.7 No Impairment of Subordination. No right of any present or
future holder of any Senior Indebtedness to enforce subordination as herein
provided shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of the Company or by any act or failure to act, in
good faith, by any such holder, or by any noncompliance by the Company with the
terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof which any such holder may have or otherwise be charged with.
Section 4.8 Certain Conversions Deemed Payment. For the purposes of this
Article IV only, (1) the issuance and delivery of junior securities upon
conversion of Debentures in accordance with Article XV shall not be deemed to
constitute a payment or distribution on account of the principal of (or premium,
if any) or interest on Debentures or on account of the purchase or other
acquisition of Debentures, and (2) the payment, issuance or delivery of cash
(except in satisfaction of fractional shares pursuant to Section 15.2), property
or securities (other than junior securities) upon conversion of a Debenture
shall be deemed to constitute payment on account of the principal of such
Debenture. For the purposes of this Section 4.8, the term "junior
36
securities" means (a) shares of any stock of any class of the Company, or (b)
securities of the Company which are subordinated in right of payment to all
Senior Indebtedness which may be outstanding at the time of issuance or delivery
of such securities to substantially the same extent as, or to a greater extent
than, the Debentures are so subordinated as provided in this Article. Nothing
contained in this Article IV or elsewhere in this Indenture or in the Debentures
is intended to or shall impair, as among the Company, its creditors (other than
holders of Senior Indebtedness) and the Debentureholders, the right, which is
absolute and unconditional, of the holder of any Debenture to convert such
Debenture in accordance with Article XV.
Section 4.9 Senior Indebtedness Entitled to Rely. The holders of Senior
Indebtedness shall have the right to rely upon this Article IV, and no amendment
or modification of the provisions contained herein shall diminish the rights of
such holders unless such holders shall have agreed in writing thereto.
ARTICLE V
PARTICULAR COVENANTS OF THE COMPANY
Section 5.1 Payment of Principal, Premium and Interest. The Company
covenants and agrees that it will duly and punctually pay or cause to be paid
the principal of and premium, if any, and interest on each of the Debentures at
the places, at the respective times and in the manner provided herein and in the
Debentures. Each installment of interest on the Debentures due on any
semi-annual interest payment date may be paid either (i) by check mailed to the
address of the Person entitled thereto as it appears on the Register or (ii) by
wire transfer for immediately available funds to an account maintained by such
Person located in the United States; provided, however, that payments to the
Depositary will be made by wire transfer of immediately available funds to the
account of the Depositary or its nominee.
Section 5.2 Offices for Notices and Payments. So long as any of the
Debentures remain outstanding, the Company will maintain in New York, New York,
an office or agency where the Debentures may be presented for payment, and an
office or agency where the Debentures may be presented for registration of
transfer and for exchange and conversion as provided for in this Indenture and
an office or agency where notices and demands to or upon the Company in respect
of the Debentures or of this Indenture may be served. The Company will give to
the Trustee written notice of the location of each such office or agency and of
any change in the location thereof. If the Company shall fail to maintain any
such office or agency or shall fail to give such notice of the location or of
any change in the location thereof, presentations and demands may be made and
notices may be served at the Principal Office of the Trustee.
The Company may also from time to time designate co-registrars and one or
more other offices or agencies where the Debentures may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations. The Company will give prompt
37
written notice of any such designation or rescission and of any change in the
location of any such other office or agency.
The Company hereby initially designates the Trustee as paying agent,
Debenture registrar, Custodian and conversion agent, and the Principal Office of
the Trustee as the office of the Company for each of the aforesaid purposes.
So long as the Trustee is the Debenture registrar, the Trustee agrees to
mail, or cause to be mailed, the notices set forth in Section 8.10(a) and the
third paragraph of Section 8.11. If co-registrars have been appointed in
accordance with this Section, the Trustee shall only mail such notices to the
Company and the holders of Debentures it can identify from its records.
Section 5.3 Appointments to Fill Vacancies in Trustee's Office. The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 8.9, a Trustee, so that there
shall at all times be a Trustee hereunder.
Section 5.4 Provisions as to Paying Agent.
(a) If the Company shall appoint a paying agent other than the Trustee, it
will cause such paying agent to execute and deliver to the Trustee an instrument
in which such agent shall agree with the Trustee, subject to the provisions of
this Section 5.4:
(1) that it will hold all sums held by it as such agent for the
payment of the principal of and premium, if any, or interest on the
Debentures (whether such sums have been paid to it by the Company or
by any other obligor on the Debentures) in trust for the benefit of
the holders of the Debentures;
(2) that it will give the Trustee notice of any failure by the
Company (or by any other obligor on the Debentures) to make any
payment of the principal of and premium, if any, or interest on the
Debentures when the same shall be due and payable; and
(3) that at any time during the continuance of an Event of
Default, upon request of the Trustee, it will forthwith pay to the
Trustee all sums so held in trust.
The Company shall, on or before each due date of the principal of,
premium, if any, or interest on the Debentures, deposit with the paying
agent a sum sufficient to pay such principal, premium, if any, or interest,
and (unless such paying agent is the Trustee) the Company will promptly
notify the Trustee of any failure to take such action.
(b) If the Company shall act as its own paying agent, it will, on or before
each due date of the principal of, premium, if any, or interest on the
Debentures, set aside, segregate and
38
hold in trust for the benefit of the holders of the Debentures a sum sufficient
to pay such principal, premium, if any, or interest so becoming due and will
notify the Trustee of any failure to take such action and of any failure by the
Company (or by any other obligor under the Debentures) to make any payment of
the principal of, premium, if any, or interest on the Debentures when the same
shall become due and payable.
(c) Anything in this Section 5.4 to the contrary notwithstanding, the
Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by the Company or any paying agent hereunder
as required by this Section 5.4, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent
to the Trustee, the Company or such paying agent shall be released from all
further liability with respect to such money.
(d) Anything in this Section 5.4 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 5.4 is subject to
Sections 13.3 and 13.4.
Section 5.5 Corporate Existence. Subject to Article XII, the Company will
do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence.
Section 5.6 Rule 144A Information Requirement. Within the period prior to
the expiration of the holding period applicable to sales thereof under Rule
144(k) under the Securities Act (or any successor provision), the Company
covenants and agrees that it shall, during any period in which it is not subject
to Section 13 or 15(d) under the Exchange Act, make available to any holder or
beneficial holder of Debentures or any Common Stock issued upon conversion
thereof which continue to be Restricted Securities in connection with any sale
thereof and any prospective purchaser of Debentures or such Common Stock from
such holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act upon the request of any holder or beneficial
holder of the Debentures or such Common Stock and it will take such further
action as any holder or beneficial holder of such Debentures or such Common
Stock may reasonably request, all to the extent required from time to time to
enable such holder or beneficial holder to sell its Debentures or Common Stock
without registration under the Securities Act within the limitation of the
exemption provided by Rule 144A, as such Rule may be amended from time to time.
Upon the request of any holder or any beneficial holder of the Debentures or
such Common Stock, the Company will deliver to such holder a written statement
as to whether it has complied with such requirements.
Section 5.7 Stay, Extension and Usury Laws. The Company covenants (to the
extent that it may lawfully do so) that it shall not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, extension or usury law or other law which would prohibit or forgive
the Company from paying all or any portion of the principal of or interest on
the Debentures as contemplated herein, wherever enacted, now or at any time
39
hereafter in force, or which may affect the covenants or the performance of this
Indenture and the Company (to the extent it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not,
by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law has been enacted.
ARTICLE VI
DEBENTUREHOLDERS' LISTS AND REPORTS BY
THE COMPANY AND THE TRUSTEE
Section 6.1 Debentureholders' Lists. The Company covenants and agrees that
it will furnish or cause to be furnished to the Trustee, semiannually, not more
than fifteen (15) days after each June 15 and December 15 in each year beginning
with January 1, 1997, and at such other times as the Trustee may request in
writing, within thirty (30) days after receipt by the Company of any such
request, a list in such form as the Trustee may reasonably require of the names
and addresses of the holders of Debentures as of a date not more than fifteen
days prior to the time such information is furnished, except that no such list
need be furnished so long as the Trustee is acting as Debenture registrar.
Section 6.2 Preservation and Disclosure of Lists.
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Debentures contained in the most recent list furnished to it as provided in
Section 6.1 or maintained by the Trustee in its capacity as Debenture registrar
in respect of the Debentures, if so acting. The Trustee may destroy any list
furnished to it as provided in Section 6.1 upon receipt of a new list so
furnished.
(b) The rights of Debentureholders to communicate with other holders of
Debentures with respect to their rights under this Indenture or under the
Debentures, and the corresponding rights and duties of the Trustee, shall be as
provided by the Trust Indenture Act.
(c) If the Trustee shall be required by law to disclose any information
contained in any list of Debentureholders maintained by it, then each and every
holder of the Debentures by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any paying
agent nor the Debenture registrar shall be held accountable by reason of any
disclosure of information as to names and addresses of holders of Debentures
made pursuant to the Trust Indenture Act.
Section 6.3 Reports by Trustee.
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(a) Within 60 days after May 15 of each year commencing with the year 1997,
the Trustee shall transmit to holders of Debentures such reports dated as of May
15 of the year in which such reports are made concerning the Trustee and its
actions under this Indenture as may be required pursuant to the Trust Indenture
Act at the times and in the manner provided pursuant thereto.
(b) A copy of such report shall, at the time of such transmission to
holders of Debentures, be filed by the Trustee with each stock exchange and
automated quotation system upon which the Debentures are listed and with the
Company. The Company will notify the Trustee in writing within a reasonable time
when the Debentures are listed on any stock exchange or automated quotation
system.
Section 6.4 Reports by Company. The Company shall file with the Trustee
(and the Commission if at any time after the Indenture becomes qualified under
the Trust Indenture Act), and transmit to holders of Debentures, such
information, documents and other reports and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant to such Act; provided that any such information, documents or
reports required to be filed with the Commission pursuant to Section 13 or 15(d)
of the Exchange Act shall be filed with the Trustee within 15 days after the
same is so required to be filed with the Commission.
ARTICLE VII
REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS
IN THE EVENT OF DEFAULT
Section 7.1 Events of Default. In case one or more of the following Events
of Default (whatever the reason for such Event of Default and whether it shall
be voluntary or involuntary or be effected by operation of law or pursuant to
any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body) shall have occurred and be continuing:
(a) default in the payment of any installment of interest upon any of
the Debentures as and when the same shall become due and payable, and
continuance of such default for a period of thirty (30) days, whether or
not such payment is permitted under Article IV hereof; or
(b) default in the payment of the principal of and premium, if any, on
any of the Debentures as and when the same shall become due and payable
either at maturity or in connection with any redemption or repayment
pursuant to Article III, by acceleration or otherwise, whether or not such
payment is permitted under Article IV hereof; or
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(c) failure on the part of the Company duly to observe or perform any
other of the covenants or agreements on the part of the Company in the
Debentures or in this Indenture (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this Section
7.1 specifically dealt with) continued for a period of forty-five (45) days
after the date on which written notice of such failure, requiring the
Company to remedy the same, shall have been given to the Company by the
Trustee, or to the Company and the Trustee by the holders of at least
twenty-five (25) percent in aggregate principal amount of the Debentures at
the time outstanding determined in accordance with Section 9.4; or
(d) the Company shall have commenced a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect
to itself or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian, or other similar official of it or any
substantial part of its property, or shall have consented to any such
relief or to the appointment of or taking possession by any such official
in an involuntary case or other proceeding commenced against it, or shall
make a general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due; or
(e) an involuntary case or other proceeding shall be commenced against
the Company seeking liquidation, reorganization or other relief with
respect to it or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or
any substantial part of its property, and such involuntary case or other
proceeding shall remain undismissed and unstayed for a period of ninety
(90) consecutive days;
then and in each and every such case, unless the principal of all of the
Debentures shall have already become due and payable, either the Trustee or the
holders of not less than 25 percent in aggregate principal amount of the
Debentures then outstanding hereunder determined in accordance with Section 9.4,
by notice in writing to the Company (and to the Trustee if given by
Debentureholders), may declare the principal of all the Debentures and the
interest accrued thereon to be due and payable immediately, and upon any such
declaration the same shall become and shall be immediately due and payable,
anything in this Indenture or in the Debentures contained to the contrary
notwithstanding. This provision, however, is subject to the condition that if,
at any time after the principal of the Debentures shall have been so declared
due and payable, and before any judgment or decree for the payment of the monies
due shall have been obtained or entered as hereinafter provided, the Company
shall pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Debentures and the principal of and
premium, if any, on any and all Debentures which shall have become due otherwise
than by acceleration (with interest on overdue installments of interest (to the
extent that payment of such interest is enforceable under applicable law) and on
such principal and premium, if any, at the rate borne by the Debentures, to the
date of such payment or deposit) and
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amounts due to the Trustee pursuant to Section 8.6, and if any and all defaults
under this Indenture, other than the nonpayment of principal of and premium, if
any, and accrued interest on Debentures which shall have become due by
acceleration, shall have been cured or waived pursuant to Section 7.7 -- then
and in every such case the holders of a majority in aggregate principal amount
of the Debentures then outstanding, by written notice to the Company and to the
Trustee, may waive all defaults or Events of Default and rescind and annul such
declaration and its consequences; but no such waiver or rescission and annulment
shall extend to or shall affect any subsequent default or Event of Default, or
shall impair any right consequent thereon. The Trustee shall not be charged with
knowledge and shall not be deemed to have notice of any default or Event of
Default, except an Event of Default under Section 7.1(a) or (b) in cases where
the Trustee is acting as paying agent, unless written notice thereof stating
that such notice is a "Notice of Default" shall have been given to a Responsible
Officer by the Company or a Debentureholder or any agent of a Debentureholder;
and, in the absence of such written notice, the Trustee may conclusively assume
that there is no default or Event of Default.
In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned because
of such waiver or rescission and annulment or for any other reason or shall have
been determined adversely to the Trustee, then and in every such case the
Company, the holders of Debentures, and the Trustee shall be restored
respectively to their several positions and rights hereunder, and all rights,
remedies and powers of the Company, the holders of Debentures, and the Trustee
shall continue as though no such proceeding had been taken.
Section 7.2 Payment of Debentures on Default; Suit Therefor. The Company
covenants that (a) in case default shall be made in the payment of any
installment of interest upon any of the Debentures as and when the same shall
become due and payable, and such default shall have continued for a period of
thirty (30) days, or (b) in case default shall be made in the payment of the
principal of or premium, if any, on any of the Debentures as and when the same
shall have become due and payable, whether at maturity of the Debentures, or in
connection with any repayment of a Debenture pursuant to Article III or in
connection with any redemption, by declaration or otherwise -- then, upon demand
of the Trustee, the Company will pay to the Trustee, for the benefit of the
holders of the Debentures, the whole amount that then shall have become due and
payable on all such Debentures for principal and premium, if any, or interest,
or both, as the case may be, with interest upon the overdue principal and
premium, if any, and (to the extent that payment of such interest is enforceable
under applicable law) upon the overdue installments of interest at the rate
borne by the Debentures; and, in addition thereto, such further amount as shall
be sufficient to cover the costs and expenses of collection, including a
reasonable compensation to the Trustee, its agents, attorneys and counsel, and
any expenses or liabilities incurred by the Trustee hereunder other than through
its negligence or bad faith. Until such demand by the Trustee, the Company may
pay the principal of and premium, if any, and interest on the Debentures to the
registered holders, whether or not the Debentures are overdue.
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In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on the
Debentures and collect in the manner provided by law out of the property of the
Company or any other obligor on the Debentures wherever situated the monies
adjudged or decreed to be payable.
In case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Debentures under Title
11 of the United States Code, or any other applicable law, or in case a
receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Company or such other obligor, the property of the Company or
such other obligor, or in the case of any other similar judicial proceedings
relative to the Company or such other obligor upon the Debentures, or to the
creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Debentures shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand pursuant to the provisions of
this Section 7.2, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal, premium, if any, and interest owing and unpaid in respect
of the Debentures, and, in case of any judicial proceedings, to file such proofs
of claim and other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee and of the Debentureholders allowed in such
judicial proceedings relative to the Company or any other obligor on the
Debentures, its or their creditors, or its or their property, and to collect and
receive any monies or other property payable or deliverable on any such claims,
and to distribute the same after the deduction of any amounts due the Trustee
under Section 8.6; and any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar official is hereby authorized
by each of the Debentureholders to make such payments to the Trustee, and, in
the event that the Trustee shall consent to the making of such payments directly
to the Debentureholders, to pay to the Trustee any amount due it for
compensation, expenses, advances and disbursements including counsel fees
incurred by it up to the date of such distribution. To the extent that such
payment of reasonable compensation, expenses, advances and disbursements out of
the estate in any such proceedings shall be denied for any reason, payment of
the same shall be secured by a lien on, and shall be paid out of, any and all
distributions, dividends, monies, securities and other property which the
holders of the Debentures may be entitled to receive in such proceedings,
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or adopt on behalf of any Debentureholder any plan of
reorganization or arrangement, affecting the Debentures or the rights of any
Debentureholder, or to authorize the Trustee to vote in respect of the claim of
any Debentureholder in any such proceeding.
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All rights of action and of asserting claims under this Indenture, or under
any of the Debentures, may be enforced by the Trustee without the possession of
any of the Debentures, or the production thereof for any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the holders of the Debentures.
In any proceedings brought by the Trustee (and in any proceedings involving
the interpretation of any provision of this Indenture to which the Trustee shall
be a party) the Trustee shall be held to represent all the holders of the
Debentures, and it shall not be necessary to make any holders of the Debentures
parties to any such proceedings.
Section 7.3 Application of Monies Collected by Trustee. Any monies
collected by the Trustee pursuant to this Article VII shall be applied in the
order following, at the date or dates fixed by the Trustee for the distribution
of such monies, upon presentation of the several Debentures, and stamping
thereon the payment, if only partially paid, and upon surrender thereof if fully
paid:
First: To the payment of all amounts due the Trustee under Section
8.6;
Second: Subject to the provisions of Article IV, in case the principal
of the outstanding Debentures shall not have become due and be unpaid, to
the payment of interest on the Debentures in default in the order of the
maturity of the installments of such interest, with interest (to the extent
that such interest has been collected by the Trustee) upon the overdue
installments of interest at the rate borne by the Debentures, such payments
to be made ratably to the Persons entitled thereto;
Third: Subject to the provisions of Article IV, in case the principal
of the outstanding Debentures shall have become due, by declaration or
otherwise, and be unpaid to the payment of the whole amount then owing and
unpaid upon the Debentures 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 Debentures; and in case
such monies shall be insufficient to pay in full the whole amounts so due
and unpaid upon the Debentures, 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 installment of interest over any other
installment of interest, or of any Debenture over any other Debenture,
ratably to the aggregate of such principal and premium, if any, and accrued
and unpaid interest; and
Fourth: Subject to the provisions of Article IV, to the payment of the
remainder, if any, to the Company or any other Person lawfully entitled
thereto.
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Section 7.4 Proceedings by Debentureholder. No holder of any Debenture
shall have any right by virtue of or by availing of any provision of this
Indenture to institute any suit, action or proceeding in equity or at law upon
or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any
other remedy hereunder, unless such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof, as
hereinbefore provided, and unless also the holders of not less than a majority
in aggregate principal amount of the Debentures then outstanding shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee for sixty (60)
days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding and
no direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 7.7; it being understood and intended, and being
expressly covenanted by the taker and holder of every Debenture with every other
taker and holder and the Trustee, that no one or more holders of Debentures
shall have any right in any manner whatever by virtue of or by availing of any
provision of this Indenture to affect, disturb or prejudice the rights of any
other holder of Debentures, or to obtain or seek to obtain priority over or
preference to any other such holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of Debentures (except as otherwise provided
herein). For the protection and enforcement of this Section 7.4, each and every
Debentureholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.
Notwithstanding any other provisions of this Indenture and any provision of
any Debenture, the right of any holder of any Debenture to receive payment of
the principal of and premium, if any, and interest on such Debenture, on or
after the respective due dates expressed in such Debenture, or to institute suit
for the enforcement of any such payment on or after such respective dates
against the Company shall not be impaired or affected without the consent of
such holder.
Anything in this Indenture or the Debentures to the contrary
notwithstanding, the holder of any Debenture, without the consent of either the
Trustee or the holder of any other Debenture, in his own behalf and for his own
benefit, may enforce, and may institute and maintain any proceeding suitable to
enforce, his rights of conversion as provided herein.
Section 7.5 Proceedings by Trustee. In case of an Event of Default
hereunder the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this
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Indenture, or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.
Section 7.6 Remedies Cumulative and Continuing. Except as provided in
Section 2.6, all powers and remedies given by this Article VII to the Trustee or
to the Debentureholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any thereof or of any other powers and remedies
available to the Trustee or the holders of the Debentures, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission
of the Trustee or of any holder of any of the Debentures to exercise any right
or power accruing upon any default or Event of Default occurring and continuing
as aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or an acquiescence therein; and, subject to the
provisions of Section 7.4, every power and remedy given by this Article VII or
by law to the Trustee or to the Debentureholders may be exercised from time to
time, and as often as shall be deemed expedient, by the Trustee or by the
Debentureholders.
Section 7.7 Direction of Proceedings and Waiver of Defaults by Majority of
Debentureholders. The holders of a majority in aggregate principal amount of the
Debentures at the time outstanding determined in accordance with Section 9.4
shall have the right to direct the time, method, and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee; provided, however, that (subject to the
provisions of Section 8.1) the Trustee shall have the right to decline to follow
any such direction if the Trustee shall be advised by counsel that the action or
proceeding so directed may not lawfully be taken or if the Trustee in good faith
by its board of directors or executive committee, or a trust committee of
directors and/or Responsible Officers shall determine that the action or
proceedings so directed could involve the Trustee in personal liability. Prior
to any declaration accelerating the maturity of the Debentures, the holders of a
majority in aggregate principal amount of the Debentures at the time outstanding
may on behalf of the holders of all of the Debentures waive any past default or
Event of Default hereunder and its consequences except (i) a default in the
payment of interest or premium, if any, on, or the principal of, the Debentures,
(ii) a failure by the Company to convert any Debentures into Common Stock, (iii)
a default in the payment of redemption or repayment price pursuant to Article
III or (iv) a default in respect of a covenant or provision hereof which under
Article XI cannot be modified or amended without the consent of the holders of
all Debentures then outstanding. Upon any such waiver the Company, the Trustee
and the holders of the Debentures shall be restored to their former positions
and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon. Whenever any default or Event of Default hereunder shall have been
waived as permitted by this Section 7.7, said default or Event of Default shall
for all purposes of the Debentures and this Indenture be deemed to have been
cured and to be not continuing; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.
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Section 7.8 Notice of Defaults. The Trustee shall, within ninety (90) days
after the occurrence of a default, mail to all Debentureholders, as the names
and addresses of such holders appear upon the Register, notice of all defaults
known to the Trustee, unless such defaults shall have been cured or waived
before the giving of such notice (the term "defaults" for the purpose of this
Section 7.8 being hereby defined to be the events specified in clauses (a), (b),
(c), (d) and (e) of Section 7.1, not including periods of grace, if any, or the
giving of any notice, or both provided for therein); and provided that, except
in the case of default in the payment of the principal of or premium, if any, or
interest on any of the Debentures, the Trustee shall be protected in withholding
such notice if and so long as the board of directors, the executive committee,
or a trust committee of directors and/or Responsible Officers of the Trustee in
good faith determine that the withholding of such notice is in the interests of
the Debentureholders.
Section 7.9 Undertaking to Pay Costs. All parties to this Indenture agree,
and each holder of any Debenture by his acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party
litigant; provided, that the provisions of this Section 7.9 shall not apply to
any suit instituted by the Trustee, to any suit instituted by any
Debentureholder, or group of Debentureholders, holding in the aggregate more
than ten percent in principal amount of the Debentures at the time outstanding
determined in accordance with Section 9.4, or to any suit instituted by any
Debentureholder for the enforcement of the payment of the principal of or
premium, if any, or interest on any Debenture on or after the due date expressed
in such Debenture or to any suit for the enforcement of the right to convert any
Debenture in accordance with the provisions of Article XV.
ARTICLE VIII
CONCERNING THE TRUSTEE
Section 8.1 Duties and Responsibilities of Trustee. The Trustee, prior to
the occurrence of an Event of Default and after the curing of all Events of
Default which may have occurred, undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture. In case an Event of
Default has occurred (which has not been cured or waived) the Trustee shall
exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.
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No provision of this Indenture shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct, except that
(a) prior to the occurrence of an Event of Default and after the
curing or waiving of all Events of Default which may have occurred:
(1) the duties and obligations of the Trustee shall be determined
solely by the express provisions of this Indenture and the Trust
Indenture Act, and the Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set
forth in this Indenture and no implied covenants or obligations shall
be read into this Indenture and the Trust Indenture Act against the
Trustee; and
(2) in the absence of bad faith on the part of the Trustee, the
Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to
the requirements of this Indenture; but, in the case of any such
certificates or opinions which by any provisions hereof are
specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture;
(b) the Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer or Officers of the Trustee, unless it
shall be proved that the Trustee was negligent in ascertaining the
pertinent facts;
(c) the Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction
of the holders of not less than a majority in principal amount of the
Debentures at the time outstanding determined as provided in Section 9.4
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture; and
(d) whether or not therein provided, every provision of this Indenture
relating to the conduct or affecting the liability of, or affording
protection to, the Trustee shall be subject to the provisions of this
Section.
None of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers, if there is reasonable ground for believing that the
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.
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Section 8.2 Reliance on Documents, Opinions, Etc. Except as otherwise
provided in Section 8.1,
(a) the Trustee may rely and shall be protected in acting upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, bond, debenture, coupon or other paper or document
believed by it to be genuine and to have been signed or presented by the
proper party or parties;
(b) any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officers' Certificate (unless
other evidence in respect thereof be herein specifically prescribed); and
any resolution of the Board of Directors may be evidenced to the Trustee by
a copy thereof certified by the Secretary or the Treasurer of the Company;
(c) the Trustee may consult with counsel and any advice or Opinion of
Counsel shall be full and complete authorization and protection in respect
of any action taken or omitted by it hereunder in good faith and in
accordance with such advice or Opinion of Counsel;
(d) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Debentureholders pursuant to the provisions of this
Indenture, unless such Debentureholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby;
(e) the Trustee shall not be liable for any action taken or omitted by
it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;
(f) prior to the occurrence of an Event of Default hereunder and after
the curing or waiving of all Events of Default, the Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond, debenture, coupon or other paper
or document unless requested in writing to do so by the holders of not less
than a majority in principal amount of the Debentures then outstanding;
provided, however, that if the payment within a reasonable time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it
in the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the
terms of this Indenture, the Trustee may require reasonable indemnity
against such expense or liability as a condition to so proceeding; the
reasonable expenses of every such examination shall be paid by the Company
or, if paid by the Trustee or any predecessor Trustee, shall be repaid by
the Company upon demand; and
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(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 by it with due
care hereunder.
Section 8.3 No Responsibility for Recitals, Etc. The recitals contained
herein and in the Debentures (except in the Trustee's certificate of
authentication) shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Debentures. The Trustee shall not be accountable for the use or application by
the Company of any Debentures or the proceeds of any Debentures authenticated
and delivered by the Trustee in conformity with the provisions of this
Indenture.
Section 8.4 Trustee, Paying Agents, Conversion Agents or Registrar May Own
Debentures. The Trustee, any paying agent, any conversion agent or Debenture
registrar, in its individual or any other capacity, may become the owner or
pledgee of Debentures with the same rights it would have if it were not Trustee,
paying agent, conversion agent or Debenture registrar.
Section 8.5 Monies to Be Held in Trust. Subject to the provisions of
Section 13.4 and Section 4.2, all monies received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which
they were received. Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder;
provided, however, if interest is earned on such monies, the Trustee shall pay
such interest earned to the Company.
Section 8.6 Compensation and Expenses of Trustee. The Company covenants and
agrees to pay to the Trustee from time to time, and the Trustee shall be
entitled to, reasonable compensation for all services rendered by it hereunder
in any capacity (which shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust), and the Company will pay or
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not
regularly in its employ) except any such expense, disbursement or advance as may
arise from its negligence or bad faith. The Company also covenants to indemnify
the Trustee for, and to hold it harmless against, any loss, liability or expense
(including attorneys' fees and expenses) incurred without negligence or bad
faith on the part of the Trustee and arising out of or in connection with the
acceptance or administration of this trust, including the costs and expenses of
enforcing the Indenture against the Company (including this Section 8.6) and
defending itself against or investigating any claim (whether asserted by the
Company, any holder or other Person). The obligations of the Company under this
Section 8.6 to compensate or indemnify the Trustee and to pay or reimburse the
Trustee for expenses, disbursements and advances shall be secured by a lien
prior to that of the Debentures
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upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the holders of particular Debentures. The
obligation of the Company under this Section 8.6 and the liens created hereunder
shall survive the resignation or removal of the Trustee, the satisfaction and
discharge of this Indenture and the termination of this Indenture.
When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 7.1(d) or (e) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
bankruptcy law.
Section 8.7 Officers' Certificate and Opinion of Counsel as Evidence.
Whenever in the administration of the provisions of this Indenture the Trustee
shall deem it necessary or desirable that a matter be proved or established
prior to taking or omitting any action hereunder, such matter (unless additional
evidence in respect thereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate or an Opinion of
Counsel or both delivered to the Trustee, such certificate or opinion, in the
absence of negligence or bad faith on the part of the Trustee, shall be full
warrant to the Trustee for any action taken or omitted by it under the
provisions of this Indenture upon the faith thereof.
Section 8.8 Conflicting Interests of Trustee. If the Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Trustee shall either eliminate such interest or resign, to the extent and in
the manner provided by, and subject to the provisions of, the Trust Indenture
Act and this Indenture.
Section 8.9 Eligibility of Trustee. There shall at all times be a Trustee
hereunder which shall be a Person that is eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus of at least
$50,000,000. If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the 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 8.10 Resignation or Removal of Trustee.
(a) The Trustee may at any time resign by giving written notice of such
resignation to the Company and by mailing notice thereof to the holders of
Debentures at their addresses as they shall appear on the Register. Upon
receiving such notice of resignation, the Company shall promptly appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
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resigning Trustee and one copy to the successor trustee. If no successor trustee
shall have been so appointed and have accepted appointment within sixty (60)
days after the mailing of such notice of resignation to the Debentureholders,
the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor trustee, or any Debentureholder who has been a bona
fide holder of a Debenture or Debentures for at least six months may, subject to
the provisions of Section 7.9, on behalf of himself and all others similarly
situated, petition any such court for the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.
(b) In case at any time any of the following shall occur:
(1) the Trustee shall cease to be eligible in accordance with the
provisions of Section 8.8 and shall fail to resign after written request
therefor by the Company or by any such Debentureholder, or
(2) the Trustee shall become incapable of acting, or shall be adjudged
a bankrupt or insolvent, or a receiver of the Trustee or of its property
shall be appointed, or any public officer shall take charge or control of
the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,
then, in any such case the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, or, subject to the
provisions of Section 7.9, any Debentureholder who has been a bona fide holder
of a Debenture or Debentures for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor trustee. Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee.
(c) The holders of a majority in aggregate principal amount of the
Debentures at the time outstanding may at any time remove the Trustee and
nominate a successor trustee which shall be deemed appointed as successor
trustee unless within ten (10) days after notice to the Company of such
nomination the Company objects thereto, in which case the Trustee so removed or
any Debentureholder, upon the terms and conditions and otherwise as in Section
8.10(a) provided, may petition any court of competent jurisdiction for an
appointment of a successor trustee.
(d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.10 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.11.
53
Section 8.11 Acceptance by Successor Trustee. Any successor trustee
appointed as provided in Section 8.10 shall execute, acknowledge and deliver to
the Company and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all the rights,
powers, duties and obligations of its predecessor hereunder, with like effect as
if originally named as trustee herein; but, nevertheless, on the written request
of the Company or of the successor trustee, the trustee ceasing to act shall,
upon payment of any amounts then due it pursuant to the provisions of Section
8.6, execute and deliver an instrument transferring to such successor trustee
all the rights and powers of the trustee so ceasing to act. Upon request of any
such successor trustee, the Company shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by such
trustee as such trustee to secure any amounts then due it pursuant to the
provisions of Section 8.6.
No successor trustee shall accept appointment as provided in this Section
8.11 unless at the time of such acceptance such successor trustee shall be
qualified under the provisions of Section 8.8 and be eligible under the
provisions of Section 8.9.
Upon acceptance of appointment by a successor trustee as provided in this
Section 8.11, the Company (or the former trustee) shall mail or cause to be
mailed notice of the succession of such trustee hereunder to the holders of
Debentures at their addresses as they shall appear on the Register. If the
Company fails to mail such notice within ten (10) days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Company.
Section 8.12 Succession by Merger, Etc. Any corporation into which the
Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation succeeding to all or substantially
all of the trust business of the Trustee (including any trust created by this
Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, provided that in the case of any corporation succeeding to all
or substantially all of the trust business of the Trustee such corporation shall
be qualified under the provisions of Section 8.8 and eligible under the
provisions of Section 8.9.
In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any of the Debentures shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor trustee or authenticating agent
appointed by such predecessor trustee, and deliver such Debentures so
authenticated; and in case at that time any of the Debentures shall not have
been authenticated, any successor to the Trustee or an authenticating agent
appointed by such successor trustee may
54
authenticate such Debentures either in the name of any predecessor trustee
hereunder or in the name of the successor trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Debentures or
in this Indenture provided that the certificate of the Trustee shall have;
provided, however, that the right to adopt the certificate of authentication of
any predecessor Trustee or authenticate Debentures in the name of any
predecessor Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.
Section 8.13 Limitation on Rights of Trustee as Creditor. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon
the Debentures), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of the claims against the Company (or any
such other obligor).
ARTICLE IX
CONCERNING THE DEBENTUREHOLDERS
Section 9.1 Action by Debentureholders. Whenever in this Indenture it is
provided that the holders of a specified percentage in aggregate principal
amount of the Debentures may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action, the holders
of such specified percentage have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by
Debentureholders in person or by agent or proxy appointed in writing, or (b) by
the record of the holders of Debentures voting in favor thereof at any meeting
of Debentureholders duly called and held in accordance with the provisions of
Article X, or (c) by a combination of such instrument or instruments and any
such record of such a meeting of Debentureholders. Whenever the Company or the
Trustee solicits the taking of any action by the holders of the Debentures, the
Company or the Trustee may fix in advance of such solicitation, a date as the
record date for determining holders entitled to take such action. The record
date shall be not more than fifteen (15) days prior to the date of commencement
of solicitation of such action.
Section 9.2 Proof of Execution by Debentureholders. Subject to the
provisions of Sections 8.1, 8.2 and 10.5, proof of the execution of any
instrument by a Debentureholder or his agent or proxy shall be sufficient if
made in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee. The holding of Debentures shall be proved by the registry of such
Debentures or by a certificate of the Debenture registrar.
The record of any Debentureholders' meeting shall be proved in the manner
provided in Section 10.6.
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Section 9.3 Who Are Deemed Absolute Owners. The Company, the Trustee, any
paying agent, any conversion agent and any Debenture registrar may deem the
Person in whose name such Debenture shall be registered upon the Register to be,
and may treat him as, the absolute owner of such Debenture (whether or not such
Debenture shall be overdue and notwithstanding any notation of ownership or
other writing thereon made by anyone other than the Company or any Debenture
registrar) for the purpose of receiving payment of or on account of the
principal of and premium, if any, and interest on such Debenture, for conversion
of such Debenture and for all other purposes; and neither the Company nor the
Trustee nor any other authenticating agent nor any paying agent nor any
conversion agent nor any Debenture registrar shall be affected by any notice to
the contrary. All such payments so made to any holder for the time being, or
upon his order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for monies payable upon any
such Debenture.
Section 9.4 Company-Owned Debentures Disregarded. In determining whether
the holders of the requisite aggregate principal amount of Debentures have
concurred in any direction, consent, waiver or other action under this
Indenture, Debentures which are owned by the Company or any other obligor on the
Debentures or any Affiliate of the Company or any other obligor on the
Debentures shall be disregarded and deemed not to be outstanding for the purpose
of any such determination; provided that for the purposes of determining whether
the Trustee shall be protected in relying on any such direction, consent, waiver
or other action only Debentures which a Responsible Officer knows are so owned
shall be so disregarded. Debentures so owned which have been pledged in good
faith may be regarded as outstanding for the purposes of this Section 9.4 if the
pledgee shall establish to the satisfaction of the Trustee the pledgee's right
to vote such Debentures and that the pledgee is not the Company, any other
obligor on the Debentures or any Affiliate of the Company or any such other
obligor. In the case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee. Upon
request of the Trustee, the Company shall furnish to the Trustee promptly an
Officers' Certificate listing and identifying all Debentures, if any, known by
the Company to be owned or held by or for the account of any of the above
described persons; and, subject to Section 8.1, the Trustee shall be entitled to
accept such Officers' Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Debentures not listed therein are outstanding
for the purpose of any such determinations.
Section 9.5 Revocation of Consents; Future Holders Bound. At any time
prior to (but not after) the evidencing to the Trustee, as provided in Section
9.1, of the taking of any action by the holders of the percentage in aggregate
principal amount of the Debentures specified in this Indenture in connection
with such action, any holder of a Debenture which is shown by the evidence to be
included in the Debentures 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 9.2, revoke such action so far as
concerns such Debenture. Except as aforesaid, any such action taken by the
holder of any Debenture shall be conclusive and binding upon such holder and
upon all future holders and owners of such Debenture and of any Debentures
issued in exchange or substitution therefor, irrespective of whether any
notation in
56
regard thereto is made upon such Debenture or any Debenture issued in exchange
or substitution therefor.
ARTICLE X
DEBENTUREHOLDERS' MEETINGS
Section 10.1 Purposes of Meetings. A meeting of Debentureholders may be
called at any time and from time to time pursuant to the provisions of this
Article X for any of the following purposes:
(1) 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 Debentureholders pursuant to any of the provisions of Article
VII;
(2) to remove the Trustee and nominate a successor trustee pursuant to
the provisions of Article VIII;
(3) to consent to the execution of an indenture or indentures
supplemental hereto pursuant to the provisions of Section 11.2; or
(4) to take any other action authorized to be taken by or on behalf of
the holders of any specified aggregate principal amount of the Debentures
under any other provision of this Indenture or under applicable law.
Section 10.2 Call of Meetings by Trustee. The Trustee may at any time call
a meeting of Debentureholders to take any action specified in Section 10.1, to
be held at such time and at such place as the Trustee shall determine. Notice of
every meeting of the Debentureholders, setting forth the time and the place of
such meeting and in general terms the action proposed to be taken at such
meeting and the establishment of any record date pursuant to Section 9.1, shall
be mailed to holders of Debentures at their addresses as they shall appear on
the Register. Such notice shall also be mailed to the Company. Such notices
shall be mailed not less than twenty (20) nor more than ninety (90) days prior
to the date fixed for the meeting.
Any meeting of Debentureholders shall be valid without notice if the
holders of all Debentures then outstanding are present in person or by proxy or
if notice is waived before or after the meeting by the holders of all Debentures
outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.
57
Section 10.3 Call of Meetings by Company or Debentureholders. In case at
any time the Company, pursuant to a resolution of its Board of Directors, or the
holders of at least ten percent in aggregate principal amount of the Debentures
then outstanding, shall have requested the Trustee to call a meeting of
Debentureholders, 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 twenty (20) days after receipt of such
request, then the Company or such Debentureholders may determine the time and
the place for such meeting and may call such meeting to take any action
authorized in Section 10.1, by mailing notice thereof as provided in Section
10.2.
Section 10.4 Qualifications for Voting. To be entitled to vote at any
meeting of Debentureholders a Person shall (a) be a holder of one or more
Debentures or (b) be a Person appointed by an instrument in writing as proxy by
a holder of one or more Debentures. The only Persons who shall be entitled to be
present or to speak at any meeting of Debentureholders shall be the Persons
entitled to vote at such meeting and their counsel and any representatives of
the Trustee and its counsel and any representatives of the Company and its
counsel.
Section 10.5 Regulations. Notwithstanding any other provisions of this
Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Debentureholders, in regard to proof of the holding
of Debentures 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 Debentureholders as provided in Section 10.3, in which case the
Company or the Debentureholders calling the meeting, as the case may be, shall
in like manner appoint a temporary chairman. A permanent chairman and a
permanent secretary of the meeting shall be elected by vote of the holders of a
majority in principal amount of the Debentures represented at the meeting and
entitled to vote at the meeting.
Subject to the provisions of Section 9.4, at any meeting each
Debentureholder or proxyholder shall be entitled to one vote for each $1,000
principal amount of Debentures held or represented by him; provided, however,
that no vote shall be cast or counted at any meeting in respect of any Debenture
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 Debentures held by him or instruments in writing as aforesaid duly
designating him as the person to vote on behalf of other Debentureholders. Any
meeting of Debentureholders duly called pursuant to the provisions of Section
10.2 or 10.3 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.
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Section 10.6 Voting. The vote upon any resolution submitted to any meeting
of Debentureholders shall be by written ballot on which shall be subscribed the
signatures of the holders of Debentures or of their representatives by proxy and
the principal amount of the Debentures 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 Debentureholders shall be prepared by the
secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and
affidavits by one or more persons having knowledge of the facts setting forth a
copy of the notice of the meeting and showing that said notice was mailed as
provided in Section 10.2. The record shall show the principal amount of the
Debentures 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, the latter to have attached
thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the
matters therein stated.
Section 10.7 No Delay of Rights by Meeting. Nothing in this Article X
contained shall be deemed or construed to authorize or permit, by reason of any
call of a meeting of Debentureholders 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
Debentureholders under any of the provisions of this Indenture or of the
Debentures.
ARTICLE XI
SUPPLEMENTAL INDENTURES
Section 11.1 Supplemental Indentures Without Consent of Debentureholders.
The Company, when authorized by the resolutions of the Board of Directors, and
the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto for one or more of the following purposes:
(a) to make provision with respect to the conversion rights of the
holders of Debentures pursuant to the requirements of Section 15.6 and the
repayment obligations of the Company pursuant to the requirements of
Section 3.6(e);
(b) subject to Article IV, to convey, transfer, assign, mortgage or
pledge to the Trustee as security for the Debentures, any property or
assets;
59
(c) to evidence the succession of another corporation to the Company,
or successive successions, and the assumption by the successor corporation
of the covenants, agreements and obligations of the Company pursuant to
Article XII;
(d) to add to the covenants of the Company such further covenants,
restrictions or conditions as the Board of Directors and the Trustee shall
consider to be for the benefit of the holders of Debentures, and to make
the occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions or conditions a default or an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided, however, that in
respect of any such additional covenant, restriction or condition such
supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the
case of other defaults) or may provide for an immediate enforcement upon
such default or may limit the remedies available to the Trustee upon such
default;
(e) to provide for the issuance under this Indenture of Debentures in
coupon form (including Debentures registrable as to principal only) and to
provide for exchangeability of such Debentures with the Debentures issued
hereunder in fully registered form and to make all appropriate changes for
such purpose;
(f) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any
supplemental indenture, or to make such other provisions in regard to
matters or questions arising under this Indenture which shall not adversely
affect the interests of the holders of the Debentures in any material
respect;
(g) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Debentures; or
(h) to modify, eliminate or add to the provisions of this Indenture to
such extent as shall be necessary to effect the qualification of this
Indenture under the Trust Indenture Act, or under any similar federal
statute hereafter enacted.
The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not be
obligated to, but may in its discretion, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.
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Any supplemental indenture authorized by the provisions of this Section
11.1 may be executed by the Company and the Trustee without the consent of the
holders of any of the Debentures at the time outstanding, notwithstanding any of
the provisions of Section 11.2.
Section 11.2 Supplemental Indentures with Consent of Debentureholders. With
the consent (evidenced as provided in Article IX) of the holders of not less
than 66 2/3% in aggregate principal amount of the Debentures at the time
outstanding, the Company, when authorized by the resolutions of the Board of
Directors, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of any supplemental indenture or of modifying in any manner
the rights of the holders of the Debentures; provided, however, that no such
supplemental indenture shall (i) extend the fixed maturity of any Debenture, or
reduce the rate or extend the time of payment of interest thereon, or reduce the
principal amount thereof or premium, if any, thereon, or reduce any amount
payable on redemption or on repayment thereof, or impair or affect the right of
any Debentureholder to institute suit for the payment thereof, or make the
principal thereof or interest or premium, if any, thereon payable in any coin or
currency other than that provided in the Debentures, or modify the provisions of
this Indenture with respect to the subordination of the Debentures in a manner
adverse to the Debentureholders, or change the obligation of the Company to make
repayment of any Debenture pursuant to Section 3.5 or 3.6 in a manner adverse to
the holder of Debentures, or impair the right to convert the Debentures into
Common Stock subject to the terms set forth herein, including Section 15.6,
without the consent of the holder of each Debenture so affected, or (ii) reduce
the aforesaid percentage of Debentures, the holders of which are required to
consent to any such supplemental indenture, without the consent of the holders
of all Debentures then outstanding.
Upon the request of the Company, accompanied by a copy of the resolutions
of the Board of Directors certified by its Secretary or Treasurer authorizing
the execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Debentureholders as aforesaid, the Trustee
shall join with the Company in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such supplemental
indenture.
It shall not be necessary for the consent of the Debentureholders under
this Section 11.2 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.
Section 11.3 Effect of Supplemental Indenture. Any supplemental indenture
executed pursuant to the provisions of this Article XI shall comply with the
Trust Indenture Act, as then in effect; provided that this Section 11.3 shall
not require such supplemental indenture or the Trustee to be qualified under the
Trust Indenture Act prior to the time such qualification is in fact required
under the terms of the Trust Indenture Act or the Indenture has been qualified
under
61
the Trust Indenture Act, nor shall it constitute any admission or acknowledgment
by any party to such supplemental indenture that any such qualification is
required prior to the time such qualification is in fact required under the
terms of the Trust Indenture Act or the Indenture has been qualified under the
Trust Indenture Act. Upon the execution of any supplemental indenture pursuant
to the provisions of this Article XI, this Indenture shall be and be deemed to
be modified and amended in accordance therewith and the respective rights,
limitation of rights, obligations, duties and immunities under this Indenture of
the Trustee, the Company and the holders of Debentures shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.
Section 11.4 Notation on Debentures. Debentures authenticated and delivered
after the execution of any supplemental indenture pursuant to the provisions of
this Article XI 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 Debentures so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared and
executed by the Company, authenticated by the Trustee (or an authenticating
agent duly appointed by the Trustee pursuant to Section 16.11) and delivered in
exchange for the Debentures then outstanding, upon surrender of such Debentures
then outstanding.
Section 11.5 Evidence of Compliance of Supplemental Indenture to Be
Furnished Trustee. The Trustee, subject to the provisions of Sections 8.1 and
8.2, may receive an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant hereto
complies with the requirements of this Article XI.
ARTICLE XII
CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
Section 12.1 Company May Consolidate Etc. on Certain Terms. Subject to the
provisions of Section 12.2, nothing contained in this Indenture or in any of the
Debentures shall prevent any consolidation or merger of the Company with or into
any other corporation or corporations (whether or not affiliated with the
Company), or successive consolidations or mergers in which the Company or its
successor or successors shall be a party or parties, or shall prevent any sale,
conveyance or lease (or successive sales, conveyances or leases) of all or
substantially all of the property of the Company, to any other corporation
(whether or not affiliated with the Company) authorized to acquire and operate
the same and which shall be organized under the laws of a State of the United
States or the District of Columbia; however, and the Company hereby covenants
and agrees, that upon any such consolidation, merger, sale, conveyance or lease,
the due and punctual payment of the principal of and premium, if any, and
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interest on all of the Debentures, according to their tenor, and the due and
punctual performance and observance of all of the covenants and conditions of
this Indenture to be performed by the Company, shall be expressly assumed, by
supplemental indenture satisfactory in form to the Trustee, executed and
delivered to the Trustee by the corporation (if other than the Company) formed
by such consolidation, or into which the Company shall have been merged, or by
the corporation which shall have acquired or leased such property, and such
supplemental indenture shall provide for the applicable conversion rights set
forth in Section 15.6.
Section 12.2 Successor Corporation to Be Substituted. In case of any such
consolidation, merger, sale, conveyance or lease and upon the assumption by the
successor corporation, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the due and punctual payment
of the principal of and premium, if any, and interest on all of the Debentures
and the due and punctual performance of all of the covenants and conditions of
this Indenture to be performed by the Company, such successor corporation shall
succeed to and be substituted for the Company, with the same effect as if it had
been named herein as the party of the first part. Such successor corporation
thereupon may cause to be signed, and may issue either in its own name or in the
name of Omnicom Group Inc. any or all of the Debentures issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor corporation instead of the
Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause
to be authenticated and delivered, any Debentures which previously shall have
been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Debentures which such successor corporation thereafter
shall cause to be signed and delivered to the Trustee for that purpose. All the
Debentures so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Debentures theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Debentures had
been issued at the date of the execution hereof. In the event of any such
consolidation, merger, sale, conveyance or lease, the Person named as the
"Company" in the first paragraph of this Indenture or any successor which shall
thereafter have become such in the manner prescribed in this Article XII may be
dissolved, wound up and liquidated at any time thereafter and such Person shall
be released from its liabilities as obligor and maker of the Debentures and from
its obligations under this Indenture.
In case of any such consolidation, merger, sale, conveyance or lease, such
changes in phraseology and form (but not in substance) may be made in the
Debentures thereafter to be issued as may be appropriate.
Section 12.3 Opinion of Counsel to Be Given Trustee. The Trustee shall
receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any such consolidation, merger, sale, conveyance or lease and any
such assumption complies with the provisions of this Article XII.
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ARTICLE XIII
SATISFACTION AND DISCHARGE OF INDENTURE
Section 13.1 Discharge of Indenture. When (a) the Company shall deliver to
the Trustee for cancellation all Debentures theretofore authenticated (other
than any Debentures which shall have been destroyed, lost or stolen and in lieu
of or in substitution for which other Debentures shall have been authenticated
and delivered) and not theretofore canceled, or (b) all the Debentures not
theretofore canceled or delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company shall deposit with the Trustee, in trust, funds sufficient to pay at
maturity or upon redemption of all of the Debentures (other than any Debentures
which shall have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Debentures shall have been authenticated and
delivered) not theretofore canceled or delivered to the Trustee for
cancellation, including principal and premium, if any, and interest due or to
become due to such date of maturity or date fixed for redemption, as the case
may be, and if in either case the Company shall also pay or cause to be paid all
other sums payable hereunder by the Company, then this Indenture shall cease to
be of further effect (except as to (i) remaining rights of registration of
transfer, substitution and exchange and conversion of Debentures, (ii) rights
hereunder of Debentureholders to receive payments of principal of and premium,
if any, and interest on, the Debentures and the other rights, duties and
obligations of Debentureholders, as beneficiaries hereof with respect to the
amounts, if any, so deposited with the Trustee and (iii) the rights, obligations
and immunities of the Trustee hereunder), and the Trustee, on demand of the
Company accompanied by an Officers' Certificate and an Opinion of Counsel as
required by Section 16.5 and at the cost and expense of the Company, shall
execute proper instruments acknowledging satisfaction of and discharging this
Indenture; the Company, however, hereby agreeing to reimburse the Trustee for
any costs or expenses thereafter reasonably and properly incurred by the Trustee
and to compensate the Trustee for any services thereafter reasonably and
properly rendered by the Trustee in connection with this Indenture or the
Debentures.
Section 13.2 Deposited Monies to Be Held in Trust by Trustee. Subject to
Section 13.4, all monies deposited with the Trustee pursuant to Section 13.1,
shall be held in trust and applied by it to the payment, either directly or
through any paying agent (including the Company if acting as its own paying
agent), to the holders of the particular Debentures for the payment or
redemption of which such monies have been deposited with the Trustee, of all
sums due and to become due thereon for principal and interest and premium, if
any.
Section 13.3 Paying Agent to Repay Monies Held. Upon the satisfaction and
discharge of this Indenture, all monies then held by any paying agent of the
Debentures (other than the Trustee) shall, upon demand of the Company, be repaid
to it or paid to the Trustee, and
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thereupon such paying agent shall be released from all further liability with
respect to such monies.
Section 13.4 Return of Unclaimed Monies. Subject to the requirements of
applicable law, any monies deposited with or paid to the Trustee for payment of
the principal of, premium, if any, or interest on Debentures and not applied but
remaining unclaimed by the holders of Debentures for two years after the date
upon which the principal of, premium, if any, or interest on such Debentures, as
the case may be, shall have become due and payable, shall be repaid to the
Company by the Trustee on demand and all liability of the Trustee shall
thereupon cease with respect to such monies; and the holder of any of the
Debentures shall thereafter look only to the Company for any payment which such
holder may be entitled to collect.
ARTICLE XIV
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
Section 14.1 Indenture and Debentures Solely Corporate Obligations. No
recourse for the payment of the principal of or premium, if any, or interest on
any Debenture, or for any claim based thereon or otherwise in respect thereof,
and no recourse under or upon any obligation, covenant or agreement of the
Company in this Indenture or in any supplemental indenture, or in any Debenture,
or because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, officer or director, as such, past,
present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the
Debentures.
ARTICLE XV
CONVERSION OF DEBENTURES
Section 15.1 Right to Convert. Subject to and upon compliance with the
provisions of this Article, the holder of any Debenture shall have the right, at
his option, at any time after ninety (90) days following the latest date of
original issuance and prior to the close of business on January 2, 2007 (except
that, with respect to any Debenture or portion of a Debenture which shall be
called for redemption such right shall terminate, except as provided in Section
15.2 or Section 3.4, at the close of business on the Business Day next preceding
the date fixed for redemption of such Debenture or portion of a Debenture unless
the Company shall default in payment due upon redemption thereof) to convert the
principal amount of any such
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Debenture, or any portion of such principal amount which is $1,000 or a multiple
thereof, into that number of fully paid and non-assessable shares of Common
Stock (as such shares shall then be constituted) at the date of conversion
obtained, by dividing the principal amount of the Debenture or portion thereof
surrendered for conversion by the Conversion Price in effect at such time, by
surrender of the Debenture so to be converted in whole or in part in the manner
provided, together with any required funds, in Section 15.2. A Debenture in
respect of which a holder is exercising the option to require repayment on the
January 3, 2003 or upon a Fundamental Change may be converted only if such
holder withdraws its election to exercise the option to require repayment in
accordance with Sections 3.5, 3.6 and 3.7 hereof. A holder of Debentures is not
entitled to any rights of a holder of Common Stock until such holder has
converted his Debentures to Common Stock, and only to the extent such Debentures
are deemed to have been converted to Common Stock under this Article XV.
Section 15.2 Exercise of Conversion Privilege; Issuance of Common Stock on
Conversion; No Adjustment for Interest or Dividends. In order to exercise the
conversion privilege with respect to any Debenture in certificated form, the
holder of any such Debenture to be converted in whole or in part shall surrender
such Debenture, duly endorsed, at an office or agency maintained by the Company
pursuant to Section 5.2, accompanied by the funds, if any, required by the
penultimate paragraph of this Section 15.2, and shall give written notice of
conversion in the form provided on the Debentures (or such other notice which is
acceptable to the Company) to the Company at such office or agency that the
holder elects to convert such Debenture or the portion thereof specified in said
notice. Such notice shall also state the name or names (with address) in which
the certificate or certificates for shares of Common Stock which shall be
issuable on such conversion shall be issued, and shall be accompanied by
transfer taxes, if required pursuant to Section 15.7. Each such Debenture
surrendered for conversion shall, unless the shares issuable on conversion are
to be issued in the same name as the registration of such Debenture, be duly
endorsed by, or be accompanied by instruments of transfer in form satisfactory
to the Company duly executed by, the holder or its duly authorized attorney.
In order to exercise the conversion privilege with respect to any interest
in a Debenture in global form, the beneficial holder must complete the
appropriate instruction form for conversion pursuant to the Depositary's
book-entry conversion program, deliver by book-entry delivery an interest in
such Debenture in global form, furnish appropriate endorsements and transfer
documents if required by the Company or the Trustee or conversion agent, and pay
the funds, if any, required by this Section 15.2 and any transfer taxes if
required pursuant to Section 15.7.
As promptly as practicable after the surrender of such Debenture and the
receipt of such notice and funds, if any, as aforesaid, the Company shall issue
and shall deliver at such office or agency to such holder, or on his written
order, a certificate or certificates for the number of full shares of Common
Stock issuable upon the conversion of such Debenture or portion thereof in
accordance with the provisions of this Article and a check in payment of any
fractional interest in respect of a share of Common Stock arising upon such
conversion, as provided in Section 15.3.
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In case any Debenture of a denomination greater than $1,000 shall be surrendered
for partial conversion, and subject to Section 2.3, the Company shall execute
and the Trustee shall authenticate and deliver to or upon the written order of
the holder of the Debenture so surrendered, without charge to him, a new
Debenture or Debentures in authorized denominations in an aggregate principal
amount equal to the unconverted portion of the surrendered Debenture.
Each conversion shall be deemed to have been effected as to any such
Debenture (or portion thereof) on the date on which the requirements set forth
above in this Section 15.2 have been satisfied as to such Debenture (or portion
thereof), and the Person in whose name any certificate or certificates for
shares of Common Stock shall be issuable upon such conversion shall be deemed to
have become on said date the holder of record of the shares represented thereby;
provided, however, that any such surrender on any date when the stock transfer
books of the Company shall be closed shall constitute the Person in whose name
the certificates are to be issued as the record holder thereof for all purposes
on the next succeeding day on which such stock transfer books are open, but such
conversion shall be at the Conversion Price in effect on the date upon which
such Debenture shall have been surrendered.
The Company's delivery of the fixed number of shares of Common Stock into
which the Debentures are convertible will be deemed to satisfy the Company's
obligation to pay the principal amount of the Debentures and all accrued
interest and original issue discount that has not previously been (or is not
simultaneously being) paid. The Common Stock is treated as issued first in
payment of accrued interest and original issue discount and then in payment of
principal. Thus, accrued interest and original issue discount are treated as
paid rather than canceled.
Any Debenture or portion thereof surrendered for conversion during the
period from the close of business on the record date for any interest payment
date to the close of business on the Business Day next preceding the following
interest payment date shall (unless such Debenture or portion thereof being
converted shall have been called for redemption on a date fixed for redemption
which occurs during the period from the close of business on such record date to
the close of business on the Business Day next preceding the following interest
payment date) be accompanied by payment, in New York Clearing House funds or
other funds acceptable to the Company, of an amount equal to the interest
otherwise payable on such interest payment date on the principal amount being
converted; provided, however, that no such payment need be made if (i) there
shall exist at the time of conversion a default in the payment of interest on
the Debentures or (ii) the date fixed for redemption is on or after December 29,
2000 but on or before January 3, 2001, the holders who convert on or after
December 26, 2000 will receive, in addition to Common Stock otherwise payable
upon such conversion, accrued interest to, but excluding, January 3, 2001 on the
principal amount of Debentures so converted. An amount equal to such payment
shall be paid by the Company on such interest payment date to the holder of such
Debenture at the close of business on such record date; provided, however, that
if the Company shall default in the payment of interest on such interest payment
date, such amount shall be paid to the Person who made such required payment.
Except as provided above in this
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Section 15.2, no payment or other adjustment shall be made for interest accrued
on any Debenture converted or for dividends on any shares issued upon the
conversion of such Debenture as provided in this Article.
Upon the conversion of an interest in a Debenture in global form, the
Trustee (or other conversion agent appointed by the Company), or the Custodian
at the direction of the Trustee (or other conversion agent appointed by the
Company), shall make a notation on such Debenture in global form as to the
reduction in the principal amount represented thereby. The Company shall notify
the Trustee in writing of any conversions of Debentures effected through any
conversion agent other than the Trustee.
Section 15.3 Payments in Lieu of Fractional Shares. No fractional shares of
Common Stock or scrip representing fractional shares shall be issued upon
conversion of Debentures. If more than one Debenture shall be surrendered for
conversion at one time by the same holder, the number of full shares which shall
be issuable upon conversion shall be computed on the basis of the aggregate
principal amount of the Debentures (or specified portions thereof to the extent
permitted hereby) so surrendered. If any fractional share of stock would be
issuable upon the conversion of any Debenture or Debentures, the Company shall
make an adjustment therefor at the current market value thereof, and such
payment thereof shall be made by check. For these purposes, the current market
value of a share of Common Stock shall be the Closing Price on the first
Business Day immediately preceding the day on which the Debentures (or specified
portions thereof) are deemed to have been converted.
Section 15.4 Conversion Price. The conversion price shall be as specified
in the form of Debenture (herein called the "Conversion Price") attached as
Exhibit A hereto, subject to adjustment as provided in this Article XV.
Section 15.5 Adjustment of Conversion Price. The Conversion Price shall be
adjusted from time to time by the Company as follows:
(a) In case the Company shall (i) pay a dividend, or make a
distribution, in shares of its Common Stock, on its Common Stock, (ii)
subdivide its outstanding Common Stock into a greater number of shares, or
(iii) combine its outstanding Common Stock into a smaller number of shares,
the Conversion Price in effect immediately prior thereto shall be adjusted
so that the holder of any Debenture thereafter surrendered for conversion
shall be entitled to receive the number of shares of Common Stock of the
Company which he would have owned or have been entitled to receive after
the happening of any of the events described above had such Debenture been
converted immediately prior to the happening of such event. An adjustment
made pursuant to this subsection (a) shall become effective immediately
after the record date in the case of a dividend and shall become effective
immediately after the effective date in the case of subdivision or
combination.
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(b) In case the Company shall issue rights or warrants to all holders
of its Common Stock entitling them (for a period expiring within 45 days
after the record date mentioned below) to subscribe for or purchase Common
Stock at a price per share less than the Current Market Price (as defined
below) at the record date for the determination of stockholders entitled to
receive such rights or warrants, the Conversion Price in effect immediately
prior thereto shall be adjusted so that the same shall equal the price
determined by multiplying the Conversion Price in effect immediately prior
to the date of issuance of such rights or warrants by a fraction of which
the numerator shall be the number of shares of Common Stock outstanding on
the date of issuance of such rights or warrants plus the number of shares
which the aggregate offering price of the total number of shares so offered
would purchase at such Current Market Price, and of which the denominator
shall be the number of shares of Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of additional shares of
Common Stock offered for subscription or purchase. Such adjustment shall be
made successively whenever any such rights or warrants are issued, and
shall become effective immediately after such record date. In determining
whether any rights or warrants entitle the holders to subscribe for or
purchase shares of Common Stock at less than such Current Market Price, and
in determining the aggregate offering price of such shares of Common Stock,
there shall be taken into account any consideration received by the Company
for such rights or warrants, the value of such consideration, if other than
cash, to be determined by the Board of Directors. To the extent that no
shares of Common Stock are so delivered after the expiration of such rights
or warrants, the Conversion Price shall be readjusted to the Conversion
Price which would then be in effect if such date fixed for the
determination of stockholders entitled to receive such rights or warrants
had not been fixed.
(c) In case the Company shall distribute to all holders of its Common
Stock any shares of any class of capital stock of the Company (other than
Common Stock) or evidences of its indebtedness or assets (excluding cash
dividends or other distributions to the extent paid from retained earnings
of the Company) or rights or warrants to subscribe for or purchase any of
its securities (excluding those referred to in subsection (b) above), then
in each such case the Conversion Price shall be adjusted so that the same
shall equal the Conversion Price determined by multiplying the Conversion
Price in effect immediately prior to the date of such distribution by a
fraction of which the numerator shall be the Current Market Price of the
Common Stock on the record date mentioned below less the fair market value
on such record date (as determined by the Board of Directors of the
Company, whose determination shall be conclusive, and described in a
certificate filed with the Trustee) of the portion of the capital stock or
assets or evidences of indebtedness so distributed or of such rights or
warrants applicable to one share of Common Stock, and the denominator shall
be the Current Market Price of the Common Stock on such record date. For
purposes of this subsection (c) the period for determining the Current
Market Price shall end immediately prior to the date that is the earlier of
the ex-distribution date and the record date referred to below in this
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subsection. Such adjustment shall become effective immediately after the
record date for the determination of shareholders entitled to receive such
distribution; provided, however, that in the event the numerator shall be
less than one, in lieu of the foregoing adjustment, adequate provision
shall be made so that each holder of Debentures shall have the right to
receive upon conversion the amount of such distribution such holder would
have received had such holder converted each Debenture immediately prior to
the record date. In the event that no such dividend or distribution is so
paid or made, the Conversion Price shall again be adjusted to be the
Conversion Price which would then be in effect if such dividend or
distribution had not occurred.
(d) In case the Company shall, by dividend or otherwise, distribute to
all holders of its Common Stock cash (excluding (x) any quarterly cash
dividend on the Common Stock to the extent the aggregate cash dividend per
share of Common Stock in any fiscal quarter does not exceed the greater of
(A) the amount per share of Common Stock of the next preceding quarterly
cash dividend on the Common Stock to the extent such preceding quarterly
dividend did not require any adjustment of the Conversion Price pursuant to
this subsection (d) (as adjusted to reflect subdivisions or combinations of
the Common Stock), and (B) 3.75% of the average of the Closing Price
(determined in Section 15.5(h)) during the ten Trading Days (as defined in
Section 15.5(h)) next preceding the date of declaration of such dividend
and (y) any dividend or distribution in connection with the liquidation,
dissolution or winding up of the Company, whether voluntary or
involuntary), then, in such case, unless the Company elects to reserve such
cash for distribution to the holders of the Debentures upon the conversion
of the Debentures so that any such holder converting Debentures will
receive upon such conversion, in addition to the shares of Common Stock to
which such holder is entitled, the amount of cash which such holder would
have received if such holder had, immediately prior to the record date for
such distribution of cash, converted its Debentures into Common Stock, the
Conversion Price shall be reduced so that the same shall equal the price
determined by multiplying the Conversion Price in effect immediately prior
to the close of business on such record date by a fraction of which the
numerator shall be the Current Market Price of the Common Stock on the
record date less the amount of cash so distributed (and not excluded as
provided above) applicable to one share of Common Stock and the denominator
shall be such Current Market Price of the Common Stock, such reduction to
be effective immediately prior to the opening of business on the day
following the record date; provided, however, that in the event the portion
of the cash so distributed applicable to one share of Common Stock is equal
to or greater than the Current Market Price of the Common Stock on the
record date, in lieu of the foregoing adjustment, adequate provision shall
be made so that each Debentureholder shall have the right to receive upon
conversion the amount of cash such holder would have received had such
holder converted each Debenture on the record date. In the event that such
dividend or distribution is not so paid or made, the Conversion Price shall
again be adjusted to be the Conversion Price which would then be in effect
if such dividend or distribution had not been declared. If any adjustment
is required to be made as set forth
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in this subsection (d) as a result of a distribution that is a quarterly
dividend, such adjustment shall be based upon the amount by which such
distribution exceeds the amount of the quarterly cash dividend permitted to
be excluded pursuant hereto. If an adjustment is required to be made as set
forth in this subsection (d) above as a result of a distribution that is
not a quarterly dividend, such adjustment shall be based upon the full
amount of the distribution.
(e) In case a tender or exchange offer made by the Company or any
subsidiary of the Company for all or any portion of the Common Stock shall
expire and such tender or exchange offer shall involve the payment by the
Company or such subsidiary of consideration per share of Common Stock
having a fair market value (as determined by the Board of Directors, or to
the extent permitted by applicable law, a duly authorized committee
thereof, whose determination shall be conclusive, and described in a
resolution of the Board of Directors or such duly authorized committee
thereof), as the case may be, at the last time (the "Expiration Time")
tenders or exchanges may be made pursuant to such tender or exchange offer
(as it shall have been amended) that exceeds the Current Market Price of
the Common Stock on the Trading Day next succeeding the Expiration Time,
the Conversion Price shall be reduced so that the same shall equal the
price determined by multiplying the Conversion Price in effect immediately
prior to the Expiration Time by a fraction (which shall not be greater than
one) of which the numerator shall be the number of shares of Common Stock
outstanding (including any tendered or exchanged shares) on the Expiration
Time multiplied by the Current Market Price of the Common Stock on the
Trading Day next succeeding the Expiration Time and the denominator shall
be the sum of (x) the fair market value (determined as aforesaid) of the
aggregate consideration payable to stockholders based on the acceptance (up
to any maximum specified in the terms of the tender or exchange offer) of
all shares validly tendered or exchanged and not withdrawn as of the
Expiration Time (the shares deemed so accepted up to any such maximum,
being referred to as the "Purchased Shares") and (y) the product of the
number of shares of Common Stock outstanding (less any Purchased Shares) on
the Expiration Time and the Current Market Price of the Common Stock on the
Trading Day next succeeding the Expiration Time, such reduction to become
effective immediately prior to the opening of business on the day following
the Expiration Time. In the event that the Company is obligated to purchase
shares pursuant to any such tender or exchange offer, but the Company is
permanently prevented by applicable law from effecting any such purchases
or all such purchases are rescinded, the Conversion Price shall again be
adjusted to be the Conversion Price which would then be in effect if such
tender or exchange offer had not been made.
(f) In case of a tender or exchange offer made by a Person other than
the Company or any Subsidiary for an amount which increases the offeror's
ownership of Common Stock to more than 25% of the Common Stock outstanding
and shall involve the payment by such Person of consideration per share of
Common Stock having a fair market value (as determined by the Board of
Directors, or to the extent permitted by
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applicable law, a duly authorized committee thereof, whose determination
shall be conclusive, and described in a resolution of the Board of
Directors) at the applicable Expiration Time tenders or exchanges may be
made pursuant to such tender or exchange offer (as it shall have been
amended) that exceeds the Current Market Price of the Common Stock on the
Trading Day next succeeding the Expiration Time, and in which, as of the
Expiration Time the Board of Directors is not recommending rejection of the
offer, the Conversion Price shall be reduced so that the same shall equal
the price determined by multiplying the Conversion Price in effect
immediately prior to the Expiration Time by a fraction (which shall not be
greater than one) of which the numerator shall be the number of shares of
Common Stock outstanding (including any tendered or exchanged shares) on
the Expiration Time multiplied by the Current Market Price of the Common
Stock on the Trading Day next succeeding the Expiration Time and the
denominator shall be the sum of (x) the fair market value (determined as
aforesaid) of the aggregate consideration payable to stockholders based on
the acceptance (up to any maximum specified in the terms of the tender or
exchange offer) of all Purchased Shares and (y) the product of the number
of shares of Common Stock outstanding (less any Purchased Shares) on the
Expiration Time and the Current Market Price of the Common Stock on the
Trading Day next succeeding the Expiration Time, such reduction to become
effective immediately prior to the opening of business on the day following
the Expiration Time. In the event that such Person is obligated to purchase
shares pursuant to any such tender or exchange offer, but such Person is
permanently prevented by applicable law from effecting any such purchases
or all such purchases are rescinded, the Conversion Price shall again be
adjusted to be the Conversion Price which would then be in effect if such
tender or exchange offer had not been made. Notwithstanding the foregoing,
the adjustment described in this subsection (f) shall not be made if, as of
the Expiration Time, the offering documents with respect to such offer
disclose a plan or intention to cause the Company to engage in any
transaction described in Article XII.
(g) In case the Company shall issue Common Stock or securities
convertible into, or exchangeable for, Common Stock at a price per share
(or having a conversion or exchange price per share) that is less than the
then Current Market Price of the Common Stock (but excluding, among other
things, issuances: (a) pursuant to any bona fide plan for the benefit of
employees, directors, consultants or other individuals in connection with
employee incentive plans of the Company now or hereafter in effect; (b) to
acquire all or any portion of a business in an arm's-length transaction
between the Company and an unaffiliated third party including, if
applicable, issuances upon exercise of options or warrants assumed in
connection with such an acquisition; (c) in a bona fide public offering
pursuant to a firm commitment underwriting (or a similar type of offering
made pursuant to Rule 144A and/or Regulation S under the Securities Act) or
sales at the market pursuant to a continuous offering stock program; (d)
pursuant to the exercise of warrants, rights (including, without
limitation, earnout rights) or options, or upon the conversion of
convertible securities, which are issued and outstanding on the date
hereof, or which may be issued in the future at fair value and with an
exercise price or
72
conversion price at least equal to the Current Market Price of the Common
Stock at the time of issuance of such warrant, right, option or convertible
security; and (e) pursuant to a dividend reinvestment plan or other plan
hereafter adopted for the reinvestment of dividends or interest provided
that such Common Stock is issued at a price at least equal to 95% of the
market price of the Common Stock at the time of such issuance), the
Conversion Price shall be adjusted so that the holder of each Debenture
shall be entitled to receive, upon the conversion thereof, the number of
shares of Common Stock determined by multiplying (i) the Conversion Price
on the day immediately prior to such date of issuance by (ii) a fraction,
the numerator of which shall be the sum of (1) the number of shares of
Common Stock outstanding on such date and (2) the number of shares of
Common Stock which the aggregate consideration receivable by the Company
for the total number of shares of Common Stock so issued (or into which the
convertible securities may convert) would purchase at such Conversion Price
on such date, and the denominator of which shall be the sum of (A) the
number of shares of Common Stock outstanding on such date and (B) the
number of additional shares of Common Stock issued (or into which the
convertible securities may convert). An adjustment made pursuant to this
subsection (g) shall be made on the next Business Day following the date on
which any such issuance is made and shall be effective retroactively
immediately after the close of business on such date. For purposes of this
subsection (g), the aggregate consideration receivable by the Company in
connection with the issuance of shares of Common Stock or of securities
convertible into shares of Common Stock shall be deemed to be equal to the
sum of the aggregate offering price (before deduction of underwriting
discounts or commissions and expenses payable to third parties) of all such
securities plus the minimum aggregate amount, if any, payable upon
conversion of any such convertible securities into shares of Common Stock.
(h) For purposes of this Section 15.5, the following terms shall have
the meaning indicated:
(1) "Closing Price" means the last reported sale price for each
day shall be (i) the last reported sale price of Common Stock on the
National Market of the National Association of Securities Dealers,
Inc. Automated Quotation System, or any similar system of automated
dissemination of quotations of securities prices then in common use,
if so quoted, or (ii) if not quoted as described in clause (i), the
mean between the high bid and low asked quotations for Common Stock as
reported by the National Quotation Bureau Incorporated if at least two
securities dealers have inserted both bid and asked quotations for
such class of stock on at least 5 of the 10 preceding days, or (iii)
if the Common Stock is listed or admitted for trading on any national
securities exchange, the last sale price, or the closing bid price if
no sale occurred, of such class of stock on the principal securities
exchange on which such class of stock is listed. If the Common Stock
is quoted on a national securities or central market system, in lieu
of a market or quotation system described above, the last reported
sale price shall
73
be determined in the manner set forth in clause (ii) of the preceding
sentence if bid and asked quotations are reported but actual
transactions are not, and in the manner set forth in clause (iii) of
the preceding sentence if actual transactions are reported. If none of
the conditions set forth above is met, the last reported sale price of
Common Stock on any day or the average of such last reported sale
prices for any period shall be the fair market value of such class of
stock as determined by a member firm of the New York Stock Exchange,
Inc. selected by the Company.
(2) "Current Market Price" shall mean the arithmetic average of
the daily Closing Prices per share of Common Stock for the ten
consecutive Trading Days immediately prior to the date in question for
the purpose of any computation under subsections (b), (c), (d), (e),
(f) and (g) above.
(3) "fair market value" shall mean the amount which a willing
buyer would pay a willing seller in an arm's-length transaction.
(4) "Trading Day" with respect to Common Stock means (i) if the
Common Stock is quoted on the National Market of the National
Association of Securities Dealers, Inc., Automated Quotation System or
any similar system of automated dissemination of quotations of
securities prices, days on which trades may be made on such system or
(ii) if the Common Stock is listed or admitted for trading on any
national securities exchange, days on which such national securities
exchange is open for business.
(i) To the extent permitted by applicable law, the Company from time
to time may reduce the Conversion Price by any amount for any period of
time if the period is at least twenty (20) days, the reduction is
irrevocable during the period and the Board of Directors shall have made a
determination that such reduction would be in the best interests of the
Company, which determination shall be conclusive. Whenever the Conversion
Price is reduced pursuant to the preceding sentence, the Company shall mail
to holders of Debentures at his address appearing on the Register a notice
of the reduction at least fifteen (15) days prior to the date the reduced
Conversion Price takes effect, and such notice shall state the reduced
Conversion Price and the period during which it will be in effect.
(j) No adjustment in the Conversion Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in
such price; provided, however, that any adjustments which by reason of this
subsection (j) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under
this Article XV shall be made by the Company and shall be made to the
nearest cent or to the nearest one hundredth of a share, as the case may
be.
74
Anything in this Section 15.5 to the contrary notwithstanding, the
Company shall be entitled to make such reductions in the Conversion Price,
in addition to those required by this Section 15.5, as it in its discretion
shall determine to be advisable in order that any stock dividends,
subdivision of shares, distribution of rights to purchase stock or
securities, or a distribution of securities convertible into or
exchangeable for stock hereafter made by the Company to its stockholders
shall not be taxable.
(k) Whenever the Conversion Price is adjusted, as herein provided, the
Company shall promptly file with the Trustee and any conversion agent other
than the Trustee an Officers' Certificate setting forth the Conversion
Price after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. Promptly after delivery of such
certificate, the Company shall prepare a notice of such adjustment of the
Conversion Price setting forth the adjusted Conversion Price and the date
on which each adjustment becomes effective and shall mail such notice of
such adjustment of the Conversion Price to the holder of each Debenture at
his last address appearing on the Register provided for in Section 2.5 of
this Indenture, within 20 days after execution thereof. Failure to deliver
such notice shall not affect the legality or validity of any such
adjustment.
(l) In any case in which this Section 15.5 provides that an adjustment
shall become effective immediately after a record date for an event, the
Company may defer until the occurrence of such event (i) issuing to the
holder of any Debenture converted after such record date and before the
occurrence of such event the additional shares of Common Stock issuable
upon such conversion by reason of the adjustment required by such event
over and above the Common Stock issuable upon such conversion before giving
effect to such adjustment and (ii) paying to such holder any amount in lieu
of any fraction pursuant to Section 15.3, such payment thereof shall be
made by check.
Section 15.6 Effect of Reclassification, Consolidation, Merger or Sale. If
any of the following events occur, namely (i) any reclassification or change of
outstanding shares of Common Stock (other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of
a subdivision or combination), (ii) any consolidation, merger or combination of
the Company with another corporation as a result of which holders of Common
Stock shall be entitled to receive stock, securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock, or (iii)
any sale or conveyance of the properties and assets of the Company as, or
substantially as, an entirety to any other corporation as a result of which
holders of Common Stock shall be entitled to receive stock, securities or other
property or assets (including cash) with respect to or in exchange for such
Common Stock, then the Company or the successor or purchasing corporation, as
the case may be, shall execute with the Trustee a supplemental indenture (which
shall comply with the Trust Indenture Act as in force at the date of execution
of such supplemental indenture) providing that each Debenture shall be
convertible into the kind and amount of shares of stock and other securities or
property or assets (including cash) receivable upon such reclassification,
change,
75
consolidation, merger, combination, sale or conveyance by a holder of a number
of shares of Common Stock issuable upon conversion of such Debentures
immediately prior to such reclassification, change, consolidation, merger,
combination, sale or conveyance. Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article XV.
The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each holder of Debentures, at his address appearing on
the Register provided for in Section 2.5 of this Indenture.
The above provisions of this Section 15.6 shall similarly apply to
successive reclassifications, consolidations, mergers, combinations, and sales.
If this Section 15.6 applies to any event or occurrence, Section 15.5 shall
not apply.
Section 15.7 Taxes on Shares Issued. The issue of stock certificates on
conversions of Debentures shall be made without charge to the converting
Debentureholder for any U.S. tax in respect of the issue thereof. The Company
shall not, however, be required to pay any tax which may be payable in respect
of any transfer involved in the issue and delivery of stock in any name other
than that of the holder of any Debenture converted, and the Company shall not be
required to issue or deliver any such stock certificate unless and until the
Person or Persons requesting the issue thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid.
Section 15.8 Reservation of Shares; Shares to Be Fully Paid; Compliance
with Governmental Requirements; Listing of Common Stock. The Company shall
provide, free from preemptive rights, out of its authorized but unissued shares,
sufficient shares of Common Stock to provide for the conversion of the
Debentures from time to time as such Debentures are presented for conversion.
Before taking any action which would cause an adjustment reducing the
Conversion Price below the then par value, if any, of the shares of Common Stock
issuable upon conversion of the Debentures, the Company will take all corporate
action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue shares of such Common Stock at such
adjusted Conversion Price.
The Company covenants that all shares of Common Stock which may be issued
upon conversion of Debentures will upon issue be fully paid and non-assessable
by the Company and free from all taxes, liens and charges with respect to the
issue thereof.
The Company covenants that if any shares of Common Stock to be provided for
the purpose of conversion of Debentures hereunder require registration with or
approval of any governmental authority under any Federal or State law before
such shares may be validly issued
76
upon conversion, the Company will in good faith and as expeditiously as possible
endeavor to secure such registration or approval, as the case may be.
The Company further covenants that if at any time the Common Stock shall be
listed on the New York Stock Exchange or any other national securities exchange
the Company will, if permitted by the rules of such exchange, list and keep
listed so long as the Common Stock shall be so listed on such exchange, all
Common Stock issuable upon conversion of the Debentures.
Section 15.9 Responsibility of Trustee. The Trustee and any other
conversion agent shall not at any time be under any duty or responsibility to
any holder of Debentures to determine the Conversion Price or whether any facts
exist which may require any adjustment of the Conversion Price, or with respect
to the nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture
provided to be employed, in making the same. The Trustee and any other
conversion agent shall not be accountable with respect to the validity or value
(or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of
any Debenture; and the Trustee and any other conversion agent make no
representations with respect thereto. Subject to the provisions of Section 8.1,
neither the Trustee nor any conversion agent shall be responsible for any
failure of the Company to issue, transfer or deliver any shares of Common Stock
or stock certificates or other securities or property or cash upon the surrender
of any Debenture for the purpose of conversion or to comply with any of the
duties, responsibilities or covenants of the Company contained in this Article.
Without limiting the generality of the foregoing, neither the Trustee nor any
conversion agent shall be under any responsibility to determine the correctness
of any provisions contained in any supplemental indenture entered into pursuant
to Section 15.6 relating either to the kind or amount of shares of stock or
securities or property (including cash) receivable by Debentureholders upon the
conversion of their Debentures after any event referred to in such Section 15.6
or to any adjustment to be made with respect thereto, but, subject to the
provisions of Section 8.1, may accept as conclusive evidence of the correctness
of any such provisions, and shall be protected in relying upon, the Officers'
Certificate (which the Company shall be obligated to file with the Trustee prior
to the execution of any such supplemental indenture) with respect thereto.
Section 15.10 Notice to Holders Prior to Certain Actions. In case:
(a) the Company shall declare a dividend (or any other distribution)
on its Common Stock (other than in cash out of retained earnings); or
(b) the Company shall authorize the granting to the holders of its
Common Stock of rights or warrants to subscribe for or purchase any share
of any class or any other rights or warrants; or
77
(c) of any reclassification or reorganization of the Common Stock of
the Company (other than a subdivision or combination of its outstanding
Common Stock, or a change in par value, or from par value to no par value,
or from no par value to par value), or of any consolidation or merger to
which the Company is a party and for which approval of any shareholders of
the Company is required, or of the sale or transfer of all or substantially
all of the assets of the Company; or
(d) of the voluntary or involuntary dissolution, liquidation or
winding-up of the Company;
the Company shall cause to be filed with the Trustee and to be mailed to each
holder of Debentures at his address appearing on the Register, provided for in
Section 2.5 of this Indenture, as promptly as possible but in any event at least
fifteen (15) days prior to the applicable date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution or rights or warrants, or, if a record is not to be
taken, the date as of which the holders of Common Stock of record to be entitled
to such dividend, distribution or rights are to be determined, or (y) the date
on which such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding-up is expected to become effective or occur,
and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up. Failure to give such notice,
or any defect therein, shall not affect the legality or validity of such
dividend, distribution, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding-up.
ARTICLE XVI
MISCELLANEOUS PROVISIONS
Section 16.1 Provisions Binding on Company's Successors. All the covenants,
stipulations, promises and agreements in this Indenture contained by the Company
shall bind its successors and assigns whether so expressed or not.
Section 16.2 Official Acts by Successor Corporation. Any act or proceeding
by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be
done and performed with like force and effect by the like board, committee or
officer of any corporation that shall at the time be the lawful sole successor
of the Company.
Section 16.3 Addresses for Notices, Etc. Any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the holders of Debentures on the Company may be given or
served by being deposited postage
78
prepaid by registered or certified mail in a post office letter box addressed
(until another address is filed by the Company with the Trustee) to Omnicom
Group Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 Attention: Secretary.
Any notice, direction, request or demand hereunder to or upon the Trustee shall
be deemed to have been sufficiently given or made, for all purposes, if given or
made in writing at the Principal Office of the Trustee, which office is, at the
date as of which this Indenture is dated, located at The Chase Manhattan Bank.
Attention: .
Section 16.4 Governing Law. This Indenture and each Debenture shall be
deemed to be a contract made under the laws of New York, and for all purposes
shall be construed in accordance with the laws of New York.
Section 16.5 Evidence of Compliance with Conditions Precedent; Certificates
to Trustee. Upon any application or demand by the Company to the Trustee to take
any action under any of the provisions of this Indenture, the Company shall
furnish to the Trustee an Officers' Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, and an Opinion of Counsel stating that, in the
opinion of such counsel, all such conditions precedent have been complied with.
Section 16.6 Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
Trust Indenture Act ss.314(a)(4)) shall comply with the provisions of Trust
Indenture Act ss.314(e) and shall include:
(a) a statement that the Person making such certificate or opinion has
read such covenant or condition;
(b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(c) a statement that, in the opinion of such Person, he or she has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition
has been satisfied; and
(d) a statement as to whether or not, in the opinion of such Person
such condition or covenant has been satisfied.
Section 16.7 Legal Holidays. In any case where the date of maturity of
interest on or principal of the Debentures or the date fixed for redemption or
repayment of any Debenture will be a legal holiday or a day on which banking
institutions in New York, New York are authorized by law or executive order to
close ("Legal Holidays"), then payment of such interest on or principal of the
Debentures need not be made on such date but may be made on the next
79
succeeding day not a Legal Holiday with the same force and effect as if made on
the date of maturity or the date fixed for redemption or repayment and no
interest shall accrue for the period from and after such date.
Section 16.8 No Security Interest Created. Nothing in this Indenture or in
the Debentures, expressed or implied, shall be construed to constitute a
security interest under the Uniform Commercial Code or similar legislation, as
now or hereafter enacted and in effect, in any jurisdiction where property of
the Company or its subsidiaries is located.
Section 16.9 Benefits of Indenture. Nothing in this Indenture or in the
Debentures, expressed or implied, shall give to any Person, other than the
parties hereto, any paying agent, any authenticating agent, any Debenture
registrar and their successors hereunder, the holders of Debentures and the
holders of Senior Indebtedness, any benefit or any legal or equitable right,
remedy or claim under this Indenture.
Section 16.10 Table of Contents, Headings, Etc. The table of contents and
the titles and headings of the articles and sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.
Section 16.11 Authenticating Agent. The Trustee may appoint an
authenticating agent which shall be authorized to act on its behalf and subject
to its direction in the authentication and delivery of Debentures in connection
with the original issuance thereof and transfers and exchanges of Debentures
hereunder, including under Sections 2.4, 2.5, 2.6, 2.7, 3.3 and 3.5, as fully to
all intents and purposes as though the authenticating agent had been expressly
authorized by this Indenture and those Sections to authenticate and deliver
Debentures. For all purposes of this Indenture, the authentication and delivery
of Debentures by the authenticating agent shall be deemed to be authentication
and delivery of such Debentures "by the Trustee" and a certificate of
authentication executed on behalf of the Trustee by an authenticating agent
shall be deemed to satisfy any requirement hereunder or in the Debentures for
the Trustee's certificate of authentication. Such authenticating agent shall at
all times be a Person eligible to serve as trustee hereunder pursuant to Section
8.9.
Any corporation into which any authenticating agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any authenticating agent
shall be a party, or any corporation succeeding to the corporate trust business
of any authenticating agent, shall be the successor of the authenticating agent
hereunder, if such successor corporation is otherwise eligible under this
Section 16.12, without the execution or filing of any paper or any further act
on the part of the parties hereto or the authenticating agent or such successor
corporation.
Any authenticating agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any
80
authenticating agent by giving written notice of termination to such
authenticating agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time any
authenticating agent shall cease to be eligible under this Section, the Trustee
shall either promptly appoint a successor authenticating agent or itself assume
the duties and obligations of the former authenticating agent under this
Indenture, and upon such appointment of a successor authenticating agent, if
made, shall give written notice of such appointment of a successor
authenticating agent to the Company and shall mail notice of such appointment of
a successor authenticating agent to all holders of Debentures as the names and
addresses of such holders appear on the Register.
The Trustee agrees to pay to the authenticating agent from time to time
reasonable compensation for its services (to the extent pre-approved by the
Company in writing), and the Trustee shall be entitled to be reimbursed for such
pre-approved payments, subject to Section 8.6.
The provisions of Sections 8.2, 8.3, 8.4, 9.3 and this Section 16.11 shall
be applicable to any authenticating agent.
Section 16.12 Execution in Counterparts. This Indenture may be executed in
any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.
The Chase Manhattan Bank hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions hereinabove set forth.
81
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of January 3, 1997.
OMNICOM GROUP INC.
By______________________________________
Title:
[CORPORATE SEAL]
Attest:
By__________________________
THE CHASE MANHATTAN BANK
______________________,
TRUSTEE
By______________________________________
Title:
[CORPORATE SEAL]
Attest:
By__________________________
82
EXHIBIT A
THIS DEBENTURE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR FEDERAL INCOME TAX
PURPOSES. THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT IS 12.418% OF THE
DEBENTURE'S PRINCIPAL AMOUNT, THE ISSUE DATE IS JANUARY 3, 1997, AND THE YIELD
FROM THE ISSUE DATE TO JANUARY 3, 2003 IS 6%, COMPOUNDED SEMIANNUALLY (TREATED
AS THE YIELD TO MATURITY FOR TAX PURPOSES).
[For global Debenture only:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 XXXXX XXXXXX, XXX XXXX, XXX XXXX) (THE
"DEPOSITARY," WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES)
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DEPOSITARY AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. (OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]
THE DEBENTURE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS,
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) OR (B) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE
501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) ("INSTITUTIONAL ACCREDITED
INVESTOR") OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THE DEBENTURE
EVIDENCED HEREBY IN AN OFFSHORE TRANSACTION; (2) AGREES THAT IT WILL NOT, PRIOR
TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE SECURITY
EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), RESELL OR OTHERWISE TRANSFER THE DEBENTURE EVIDENCED HEREBY OR THE
COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH DEBENTURE EXCEPT (A) TO OMNICOM
GROUP INC. OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT,
PRIOR TO SUCH TRANSFER, FURNISHES TO THE
CHASE MANHATTAN BANK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), A
SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
RESTRICTIONS ON TRANSFER OF THE DEBENTURE EVIDENCED HEREBY (THE FORM OF WHICH
LETTER CAN BE OBTAINED FROM SUCH TRUSTEE OR A SUCCESSOR TRUSTEE, AS APPLICABLE),
(D) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES
ACT, (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
THE SECURITIES ACT (IF AVAILABLE) OR (F) PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES
TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER
THAN A TRANSFER PURSUANT TO CLAUSE 2(F) ABOVE), IT WILL FURNISH TO THE CHASE
MANHATTAN BANK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS IT MAY REASONABLY REQUIRE
TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN
A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND (4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE DEBENTURE
EVIDENCED HEREBY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND. IN CONNECTION WITH ANY TRANSFER OF THE DEBENTURE EVIDENCED HEREBY PRIOR
TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE DEBENTURE
EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE
HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO
THE CHASE MANHATTAN BANK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE). IF
THE PROPOSED TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR OR A PURCHASER
WHO IS NOT A U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO
THE CHASE MANHATTAN BANK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE),
SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS IT MAY REASONABLY
REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF
THE DEBENTURE EVIDENCED HEREBY PURSUANT TO CLAUSE 2(F) ABOVE OR UPON ANY
TRANSFER OF THE DEBENTURES EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE
SECURITIES ACT (OR ANY SUCCESSOR PROVISION). AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT.
2
OMNICOM GROUP INC.
4 1/4% CONVERTIBLE SUBORDINATED DEBENTURE DUE 2007
No. CUSIP
Omnicom Group Inc., a corporation duly organized and validly existing under
the laws of the State of New York (herein called the "Company"), which term
includes any successor corporation under the Indenture referred to on the
reverse hereof, for value received hereby promises to pay to
____________________ or registered assigns, the principal sum of ____________
($________ ) DOLLARS on January 3, 2007, at the office or agency of the Company
maintained for that purpose in accordance with the terms of the Indenture, or,
at the option of the holder of this Debenture, at the Principal Office, 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, and to pay
interest, semi-annually on January 3 and July 3 of each year, commencing July 3,
1997, on said principal sum at said office or agency, in like coin or currency,
at the rate per annum 4 1/4%, from January 3 or July 3, as the case may be, next
preceding the date of this Debenture to which interest has been paid or duly
provided for, unless the date hereof is a date to which interest has been paid
or duly provided for, in which case from the date of this Debenture, or unless
no interest has been paid or duly provided for on the Debentures, in which case
from January 3, 1997, until payment of said principal sum has been made or duly
provided for. Notwithstanding the foregoing, if the date hereof is after any
December 19 or June 18, as the case may be, and before the following January 3
or July 3, this Debenture shall bear interest from such January 3 or July 3;
provided, however, that if the Company shall default in the payment of interest
due on such January 3 or July 3, then this Debenture shall bear interest from
the next preceding January 3 or July 3 to which interest has been paid or duly
provided for or, if no interest has been paid or duly provided for on such
Debenture, from January 3, 1997. The interest payable on the Debenture pursuant
to the Indenture on any January 3 or July 3 will be paid to the person entitled
thereto as it appears on the Register at the close of business on the record
date, which shall be the December 19 or June 18 (whether or not a Business Day)
next preceding such January 3 or July 3, as provided in the Indenture; provided
that any such interest not punctually paid or duly provided for shall be payable
as provided in the Indenture. Interest may, at the option of the Company, be
paid either (i) by check mailed to the registered address of such person or (ii)
by transfer to an account maintained by such person located in the United
States.
Interest on the Debentures shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.
3
Reference is made to the further provisions of this Debenture set forth on
the reverse hereof, including, without limitation, provisions subordinating the
payment of principal of and premium, if any, and interest on the Debentures to
the prior payment in full of all Senior Indebtedness and provisions giving the
holder of this Debenture the right to convert this Debenture into Common Stock
of the Company on the terms and subject to the limitations referred to on the
reverse hereof and as more fully specified in the Indenture. Such further
provisions shall for all purposes have the same effect as though fully set forth
at this place.
This Debenture shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be construed in accordance with
and governed by the laws of said State.
This Debenture shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been manually signed
by the Trustee or a duly authorized authenticating agent under the Indenture.
4
IN WITNESS WHEREOF, the Company has caused this Debenture to be duly
executed under its corporate seal.
Dated: OMNICOM GROUP INC.
By:__________________________
Attest:__________________________
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Debentures described in the
within_named Indenture.
THE CHASE MANHATTAN BANK, as Trustee
By:________________________________________________
Authorized Officer
By:________________________________________________
As Authenticating Agent (if different from Trustee)
5
[FORM OF REVERSE OF DEBENTURE]
OMNICOM GROUP INC.
4 1/4% CONVERTIBLE SUBORDINATED DEBENTURE DUE 2007
This Debenture is one of a duly authorized issue of Debentures of the
Company, designated as its 4 1/4% Convertible Subordinated Debentures due 2007
(herein called the "Debentures"), limited to the aggregate principal amount of
$218,500,000 all issued or to be issued under and pursuant to an indenture dated
as of January 3, 1997 (herein called the "Indenture"), between the Company and
The Chase Manhattan Bank, as trustee (herein called the "Trustee"), to which the
Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the holders of the
Debentures. Capitalized terms used in this Debenture and not defined herein have
the meaning ascribed thereto in the Indenture.
The Chase Manhattan Bank, the Trustee under the Indenture, has been
appointed by the Company as paying agent, conversion agent, Debenture registrar
and Custodian with regard to the Debentures.
In case an Event of Default shall have occurred and be continuing, the
principal of and accrued interest on all Debentures may be declared, and upon
said declaration shall become, due and payable, in the manner, with the effect
and subject to the conditions provided in the Indenture.
With the consent of the holders of not less than 66 2/3% in aggregate
principal amount of the Debentures at the time outstanding, the Company, when
authorized by resolutions of the Board of Directors, and the Trustee from time
to time and at any time may enter into an indenture or indentures supplemental
to the Indenture for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the Debentures; provided, however, that no such supplemental indenture shall (i)
extend the fixed maturity of any Debenture, or reduce the rate or extend the
time of payment of interest thereon, or reduce the principal amount thereof or
premium, if any, thereon, or reduce any amount payable on redemption or on
repayment thereof, or impair or affect the right of any Debentureholder to
institute suit for the payment thereof, or make the principal thereof or
interest or premium, if any, thereon payable in any coin or currency other than
that provided in the Debenture, or modify the provisions of the Indenture with
respect to the subordination of the Debentures in a manner adverse to the
Debentureholders, or change the obligation of the Company to make repayment of
any Debenture on a Fundamental Change Repayment Date or the Holder Repayment
Date in a manner adverse to the holder of the Debentures, or impair the right to
convert the Debentures into Common Stock subject to the terms set forth in the
Indenture, including Section 15.6 thereof, without the consent of the holder of
each Debenture so affected or (ii) reduce the
1
aforesaid percentage of Debentures, the holders of which are required to consent
to any such supplemental indenture, without the consent of the holders of all
Debentures then outstanding. If any Event of Default shall have occurred and be
continuing, the Trustee or the holders of not less than 25 percent in aggregate
principal amount of the Debentures then outstanding, by notice in writing to the
Company (and to the Trustee if given by Debentureholders), may declare the
principal of all the Debentures and the interest accrued thereon to be due and
payable immediately, and upon any such declaration the same shall become and
shall be immediately due and payable, anything in the Indenture or in this
Debenture contained to the contrary notwithstanding. It is also provided in the
Indenture that, prior to any declaration accelerating the maturity of the
Debentures, the holders of a majority in aggregate principal amount of the
Debentures at the time outstanding may on behalf of the holders of all of the
Debentures waive any past default or Event of Default under the Indenture and
its consequences except a default in the payment of interest or any premium on
or the principal of any of the Debentures, a default in the payment of a
redemption or repayment price pursuant to Article III thereof, a failure by the
Company to convert any Debentures into Common Stock or a default in respect of a
covenant or provision in the Indenture which under Article XI thereof cannot be
modified or amended without the consent of holders of all Debentures
outstanding. The holders of a majority in principal amount of the Debentures
then outstanding shall have the right to direct the time, method of conducting
any proceedings for any remedy available to the Trustee subject to certain
limitations specified in the Indenture. Any such consent or waiver by the holder
of this Debenture (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such holder and upon all future holders and owners
of this Debenture and any Debentures which may be issued in exchange or
substitute hereof, irrespective of whether or not any notation thereof is made
upon this Debenture or such other Debentures.
The indebtedness evidenced by the Debentures is subordinate to the prior
payment in full of all Senior Indebtedness. During the continuance beyond any
applicable grace period of any default in the payment of principal, premium,
interest or any other payment due on any Senior Indebtedness, no payment of
principal of, or premium if any, or interest on the Debentures shall be made by
the Company. In addition, upon any distribution of assets of the Company upon
any dissolution, winding up, liquidation or reorganization, the payment of the
principal of, or premium, if any, and interest on the Debentures is to be
subordinated to the extent provided in the Indenture in right of payment to the
prior payment in full of all Senior Indebtedness. By reason of such
subordination, in the event of the Company's dissolution, holders of Senior
Indebtedness may receive more, ratably, and holders of the Debentures may
receive less, ratably, than the other creditors of the Company. Such
subordination will not prevent the occurrence of any Event of Default under the
Indenture. Each holder of this Debenture, by accepting the same, agrees to and
shall be bound by such provisions and authorizes the Trustee on its behalf to
take such action as may be necessary or appropriate to effectuate the
subordination so provided and appoints the Trustee its attorney-in-fact for such
purpose.
No reference herein to the Indenture and no provision of this Debenture or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and
2
unconditional, to pay the principal of and any premium and interest on this
Debenture at the place, at the respective times, at the rate and in the coin or
currency herein prescribed.
The Debentures are issuable in registered form without coupons in
denominations of $1,000 and any integral multiple of $1,000.
The Debentures will not be redeemable at the option of the Company prior to
December 29, 2000. The Debentures are not entitled to any sinking fund. At any
time on or after December 29, 2000 and prior to maturity, the Debentures may
(unless theretofore repaid or converted) be redeemed at the option of the
Company as a whole, or from time to time in part, upon notice, as described
below, at the following redemption prices (expressed as percentages of the
principal amount), together in each case with accrued interest to, but
excluding, the date fixed for redemption, if redeemed during the 3-month period
beginning:
Date Percentage Date Percentage
---- ---------- ---- ----------
January 3, 2001......... 108.324% January 3, 2002......... 110.607%
April 3, 2001........... 108.890% April 3, 2002........... 111.207%
July 3, 2001............ 109.448% July 3, 2002............ 111.801%
October 3, 2001......... 110.031% October 3, 2002......... 112.418%
and 100% on or after January 3, 2003; provided that if the date fixed for
redemption is on January 3 or July 3, then the interest payable on such date
shall be paid to the holder of record on the next preceding December 19 or June
18, respectively. If the date fixed for redemption is on or after December 29,
2000 but before January 3, 2001, the redemption price shall be at 108.324% of
the principal amount with accrued interest to, but excluding, January 3, 2001.
In case the Company shall desire to exercise the right to redeem all or, as
the case may be, any part of the Debentures for redemption then it, or at its
request, the Trustee in the name of and at the expense of the Company, shall
mail or cause to be mailed a notice of such redemption at least 30 and not more
than 60 days prior to the date fixed for redemption to the holders of Debentures
so to be redeemed as a whole or in part at their last addresses as the same
appear on the Register. Such mailing shall be by first class mail. The notice if
mailed in the manner herein provided shall be conclusively presumed to have been
duly given, whether or not the holder receives such notice. In any case, failure
to give such notice by mail or any defect in the notice to the holder of any
Debenture designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any other Debenture.
If notice of redemption has been given as above provided, the Debentures or
portions of Debentures with respect to which such notice has been given shall,
unless theretofore converted into Common Stock pursuant to the terms hereof,
become due and payable on the date fixed for redemption and at the place or
places stated in such notice at the applicable redemption price, together with
interest accrued to, but excluding, the date fixed for redemption (or to, but
excluding, January 3, 2001 if the date fixed for redemption is on or after
December 29, 2000, but
3
before January 3, 2001), and on and after said date (unless the Company shall
default in the payment of such Debentures at the redemption price, together with
interest accrued to said date) interest on the Debentures or portion of
Debentures so called for redemption shall cease to accrue and such Debentures
shall cease after the close of business on the Business Day immediately
preceding the date fixed for redemption to be convertible into Common Stock and,
except as provided in Sections 8.5 and 13.4 of the Indenture, to be entitled to
any benefit or security under the Indenture, and the holders thereof shall have
no right in respect of such Debentures except the right to receive the
redemption price thereof and unpaid interest to, but excluding, the date fixed
for redemption (or to January 3, 2001 if the date fixed for redemption is on or
after December 29, 2000, but before January 3, 2001). On presentation and
surrender of such Debentures at a place of payment in said notice specified, the
said Debentures or the specified portions thereof shall be paid and redeemed by
the Company at the applicable redemption price, together with interest accrued
thereon to, but excluding, the date fixed for redemption (or to, but excluding,
January 3, 2001 if the date fixed for redemption is on or after December 29,
2000, but before January 3, 2001); provided that, if the applicable date fixed
for redemption is an interest payment date, the semi-annual payment of interest
becoming due on such date shall be payable to the holders of such Debentures
registered as such on the relevant record date instead of the holders
surrendering such Debentures for redemption on such date.
Notwithstanding the Company's right of redemption, the holder of a
Debenture may elect to have that Debenture or portions thereof (in the principal
amount of $1,000 or any multiple thereof) repaid by the Company on January 3,
2003 (the "Holder Repayment Date"). Any such repayment shall be at a repayment
price of 112.418% of the principal amount thereof (the "Holder Repayment Price")
with interest accrued to, but excluding, the Holder Repayment Date on the repaid
Debentures. For a Debenture to be so repaid at the option of the holder, the
Company must receive at the office of one of the Company's paying agents such
Debenture with a form entitled "Option to Elect Repayment on January 3, 2003" on
the reverse thereof duly completed (the "Holder Repayment Notice"), together
with such Debenture duly endorsed, at any time from the opening of business on
the date that is 20 Business Days prior to the Holder Repayment Date until the
close of business on the Business Day immediately preceding such Holder
Repayment Date and such Holder Repayment Notice must not have been withdrawn. In
order to exercise the repayment option with respect to any interest in a
Debenture in global form, the beneficial holder must comply with the applicable
procedures of the Depositary, furnish appropriate endorsements and documentation
if required by the Company or the Trustee or paying agent and such notice shall
not have been withdrawn.
Any holder delivering to the paying agent a Holder Repayment Notice shall
have the right at any time prior to the close of business on the Business Day
immediately preceding the Holder Repayment Date to withdraw, in whole or in
part, such Holder Repayment Notice by delivery of a written notice of withdrawal
to the paying agent. In order to exercise the withdrawal option with respect to
any interest in a Debenture in global form, the beneficial holder must comply
with the applicable procedures of the Depositary. All questions as to the
validity, eligibility
4
(including time of receipt) and acceptance of any Debenture for repayment shall
be determined by the Company, whose determination shall be final and binding.
Payment of the Holder Repayment Price, together with any accrued interest,
for a Debenture for which a Holder Repayment Notice has been delivered and not
withdrawn is conditioned upon book-entry transfer or delivery of such Debenture
(together with necessary endorsements) to the Company's paying agent at its
office at 00 Xxxxx Xxxxxx, Room 000, Xxxxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx, 00000,
or any other office of the paying agent maintained for such purpose, at any time
(whether prior to, on or after the Holder Repayment Date) after delivery of such
Holder Repayment Notice. Payment of the Holder Repayment Price, together with
any accrued interest, for such Debenture will be made promptly following the
later of the Holder Repayment Date or the time of book-entry transfer or
delivery of such Debenture by mailing checks or by sending a wire transfer for
immediately available funds to an account maintained in the United States for
the amount payable to the holders of such Debentures entitled thereto as they
shall appear on the Register. If the paying agent holds, in accordance with the
terms of the Indenture, money sufficient to pay the repayment price of such
Debenture on the Holder Repayment Date, then on and after such date, such
Debenture will cease to be outstanding, and interest on such Debenture shall
cease to accrue, and all other rights of the holder shall terminate (other than
the right to receive the repayment price upon the time of book-entry transfer or
delivery of the Debentures).
The Company shall use its best efforts to have a notice regarding repayment
at the option of the holders on the Holder Repayment Date published at least
once in each of Bloomberg Business News, Dow Xxxxx News (DJN) and Xxxxxx
Financial Report in The City of New York at least 30 days prior to the Holder
Repayment Date. No failure of the Company to give the foregoing notice and no
defect therein shall limit the Debentureholders' repayment rights or affect the
validity of the proceedings for the repayment of the Debentures.
If a Fundamental Change occurs at any time while Debentures are
outstanding, each holder of Debentures shall have the right, at such holder's
option, to require the Company to repay such holder with respect to all (and not
less than all for Debentures in certificated form) such holder's Debentures on
the date (the "Fundamental Change Repayment Date") that is the 45th day (or, if
such 45th day is not a Business Day, the next succeeding Business Day) after the
Company Notice (as defined below) of such Fundamental Change. Such repayment
shall be made at the following prices (expressed as percentages of the principal
amount) in the event of a Fundamental Change occurring during the 3-month period
beginning:
Date Percentage Date Percentage
---- ---------- ---- ----------
January 3, 1997......... 100.427% January 3, 1999......... 104.142%
April 3, 1997........... 100.875% April 3, 1999........... 104.646%
July 3, 1997............ 101.315% July 3, 1999............ 105.142%
October 3, 1997......... 101.777% October 3, 1999......... 105.660%
January 3, 1998......... 102.230% January 3, 2000......... 106.171%
5
Date Percentage Date Percentage
---- ---------- ---- ----------
April 3, 1998........... 102.705% April 3, 2000........... 106.705%
July 3, 1998............ 103.172% July 3, 2000............ 107.231%
October 3, 1998......... 103.661%
and at a repayment price of 107.781% of the principal amount if a Fundamental
Change occurs on or after October 3, 2000 but before December 29, 2000, and
thereafter at the redemption price which would be applicable to a redemption at
the option of the Company; provided in each case that if the Applicable Price is
less than the Reference Market Price, the Company shall repay such Debentures at
a price equal to the foregoing repayment price multiplied by the fraction
obtained by dividing the Applicable Price by the Reference Market Price. In each
case, the Company shall pay accrued interest, if any, on such Debentures to, but
excluding, the Fundamental Change Repayment Date; provided that if such
Fundamental Change Repayment Date is January 3 or July 3, then the interest
payable on such date shall be paid to the holder of record of the Debenture on
the next preceding record date. On or before the tenth day after the occurrence
of a Fundamental Change, the Company, or, at its written request, the Trustee in
the name of and at the expense of the Company, shall mail or cause to be mailed
to all holders of record on the date of the Fundamental Change a notice (the
"Company Notice") of the occurrence of such Fundamental Change and of the
repayment right at the option of the holders arising as a result thereof. The
Company shall also use its best efforts to have a notice published at least once
in each of Bloomberg Business News, Dow Xxxxx News (DJN) and Xxxxxx Financial
Report in The City of New York on or before the tenth day after the occurrence
of a Fundamental Change. The Company shall promptly deliver a copy of each of
the published notices and Company Notice to the Trustee. No failure of the
Company to give the foregoing notices and no defect therein shall limit the
Debentureholders' repayment rights or affect the validity of the proceedings for
the repayment of the Debentures.
For a Debenture to be repaid at the option of the holder resulting from a
Fundamental Change, the Company must receive at the office of one of the
Company's paying agents such Debenture with a form entitled "Option to Elect
Repayment Upon a Fundamental Change" on the reverse thereof duly completed (the
"Fundamental Change Repayment Notice") together with such Debenture, duly
endorsed at any time from the opening of business on the date that is on or
before the 43rd day after the Company Notice (or if such 43rd day is not a
Business Day, the immediately preceding Business Day) and such Fundamental
Change Repayment Notice shall not have been withdrawn. In order to exercise the
repayment option with respect to any interest in a Debenture in global form, the
beneficial holder must comply with the applicable procedures of the Depositary,
furnish appropriate endorsements and documentation if required by the Company or
the Trustee or paying agent and such notice shall not have been withdrawn.
Any holder delivering to the paying agent a Fundamental Change Repayment
Notice shall have the right at any time prior to the close of business on the
Business Day immediately preceding the Fundamental Change Repayment Date to
withdraw such Fundamental Change Repayment Notice (as to Debentures in
certificated form, withdrawal must be made in fully) by
6
delivery of a written notice of withdrawal to the paying agent. In order to
exercise the withdrawal option with respect to any interest in a Debenture in
global form, the beneficial holder must comply with the applicable procedures of
the Depositary. All questions as to the validity, eligibility (including time of
receipt) and acceptance of any Debenture for repayment shall be determined by
the Company, whose determination shall be final and binding.
Payment of the Fundamental Change Repayment Price, together with any
accrued interest, for a Debenture for which a Fundamental Change Repayment
Notice has been delivered and not withdrawn is conditioned upon book-entry
transfer or delivery of such Debenture (together with necessary endorsements) to
the Company's paying agent at its office at 00 Xxxxx Xxxxxx, Room 000, Xxxxx
Xxxxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, or any other office of the Company's paying
agent maintained for such purpose, at any time (whether prior to, on or after
the Fundamental Change Repayment Date) after delivery of such Fundamental Change
Repayment Notice. Payment of the Fundamental Change Repayment Price, together
with any accrued interest, for such Debenture will be made promptly following
the later of the Fundamental Change Repayment Date or the time of book-entry
transfer or delivery of such Debenture by mailing checks or by sending a wire
transfer for immediately available funds to an account maintained in the United
States for the amount payable to the holders of such Debentures entitled thereto
as they shall appear on the Register. If the Company's paying agent holds, in
accordance with the terms of the Indenture, money sufficient to pay the
Fundamental Change Repayment Price, together with any accrued interest of such
Debenture on the Fundamental Change Repayment Date, then on and after such date,
such Debenture will cease to be outstanding, and interest on such Debenture
shall cease to accrue, and all other rights of the holder shall terminate (other
than the right to receive the repayment price upon the time of book-entry
transfer or delivery of the Debentures).
Subject to and upon compliance with the provisions of the Indenture, the
holder hereof shall have the right, at its option, at any time after 90 days
following the latest date of original issuance of the Debentures and prior to
the close of business on January 2, 2007, or, as to all or any portion hereof
called for redemption, prior to the close of business on the Business Day
immediately preceding the date fixed for redemption (unless the Company shall
default in payment due upon redemption thereof), to convert the principal hereof
or any portion of such principal which is $1,000 or an integral multiple hereof,
into that number of shares of Common Stock (as said shares shall then be
constituted) at the date of conversion, obtained by dividing the principal
amount of this Debenture or portion hereof surrendered for by the Conversion
Price or such Conversion Price as adjusted from time to time as provided in the
Indenture, by surrender of the Debenture so to be converted in whole or in part
in the manner provided, together with any required funds, if any, under the
Indenture. A Debenture in respect of which a holder is exercising the option to
require repayment on January 3, 2003 or upon a Fundamental Change may be
converted only if such holder withdraws its election to exercise the option to
require repayment in accordance with the terms of the Indenture. A holder of
Debentures is not entitled to any rights of a holder of Common Stock until such
holder has converted its Debentures to
7
Common Stock, and only to the extent such Debentures are deemed to have
converted to Common Stock under Article XV of the Indenture.
In order to exercise the conversion privilege with respect to any Debenture
in certificated form, the holder of any such Debenture to be converted in whole
or in part shall surrender such Debenture, duly endorsed, at an office or agency
maintained by the Company accompanied by any funds required under the Indenture
and shall give written notice of conversion in the form provided on the
Debentures (or such other notice which is acceptable to the Company) to the
Company at such office or agency that the holder elects to convert such
Debenture or the portion thereof specified in said notice. Such notice shall
also state the name or names (with address) in which the certificate or
certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued, and shall be accompanied by transfer taxes, if
required pursuant to Section 15.7 of the Indenture. Each such Debenture
surrendered for conversion shall, unless the shares issuable on conversion are
to be issued in the same name as the registration of such Debenture, be duly
endorsed by, or be accompanied by instruments of transfer in form satisfactory
to the Company duly executed by, the holder or its duly authorized attorney. In
order to exercise the conversion privilege with respect to any interest in a
Debenture in global form, the beneficial holder must comply with the applicable
procedures of the Depositary, furnish appropriate endorsements and transfer
documents if required by the Company or the Trustee or conversion agent, and pay
funds or taxes, if any, required under the Indenture. The Company's delivery of
the fixed number of shares of Common Stock into which the Debentures are
convertible will be deemed to satisfy the Company's obligation to pay the
principal amount of the Debentures and all accrued interest and original issue
discount that has not previously been (or is not simultaneously being) paid. The
Common Stock is treated as issued first in payment of accrued interest and
original issue discount and then in payment of principal. Thus, accrued interest
and original issue discount are treated as paid rather than canceled. As
promptly as practicable after the surrender of such Debenture and the receipt of
such notice and funds, if any, as aforesaid, the Company shall issue and shall
deliver at such office or agency to such holder, or on its written order, a
certificate or certificates for the number of full shares of Common Stock
issuable upon the conversion of such Debenture or portion thereof in accordance
with the provisions of Article XV of the Indenture and a check in payment of any
fractional interest in respect of a share of Common Stock arising upon such
conversion, as provided in Section 15.3 of the Indenture. In case any Debenture
of a denomination greater than $1,000 shall be surrendered for partial
conversion, and subject to Section 2.3 of the Indenture, the Company shall
execute and the Trustee shall authenticate and deliver to or upon the written
order of the holder of the Debenture so surrendered, without charge to him, a
new Debenture or Debentures in authorized denominations in an aggregate
principal amount equal to the unconverted portion of the surrendered Debenture.
Each conversion shall be deemed to have been effected as to any such
Debenture (or portion thereof) on the date on which the requirements set forth
in Section 15.2 of the Indenture have been satisfied as to such Debenture (or
portion thereof), and the Person in whose name any certificate or certificates
for shares of Common Stock shall be issuable upon such conversion
8
shall be deemed to have become on said date the holder of record of the shares
represented thereby; provided, however, that any such surrender on any date when
the stock transfer books of the Company shall be closed shall constitute the
Person in whose name the certificates are to be issued as the record holder
thereof for all purposes on the next succeeding day on which such stock transfer
books are open, but such conversion shall be at the Conversion Price in effect
on the date upon which such Debenture shall have been surrendered. Any Debenture
or portion thereof surrendered for conversion during the period from the close
of business on the record date for any interest payment date to the close of
business on the Business Day next preceding the following interest payment date
shall (unless such Debenture or portion thereof being converted shall have been
called for redemption on a date fixed for redemption which occurs during the
period from the close of business on such record date to the close of business
on the Business Day next preceding the following interest payment date) be
accompanied by payment, in New York Clearing House funds or other funds
acceptable to the Company, of an amount equal to the interest otherwise payable
on such interest payment date on the principal amount being converted; provided,
however, that no such payment need be made if (i) there shall exist at the time
of conversion a default in the payment of interest on the Debentures or (ii) the
date fixed for redemption is on or after December 29, 2000 but on or before
January 3, 2001, the holders who convert on or after December 26, 2000 will
receive, in addition to Common Stock otherwise payable upon such conversion,
accrued interest to, but excluding, January 3, 2001 on the principal amount of
Debentures so converted. An amount equal to such payment shall be paid by the
Company on such interest payment date to the holder of such Debenture at the
close of business on such record date; provided, however, that if the Company
shall default in the payment of interest on such interest payment date, such
amount shall be paid to the Person who made such required payment. Except as
described in the Indenture and herein, no payment or adjustment will be made on
conversion of any Debenture for interest accrued thereon or for dividends on any
Common Stock issued upon such conversion of such Debentures.
No fractional shares of Common Stock or scrip representing fractional
shares shall be issued upon conversion of Debentures. If any fractional share of
stock would be issuable upon the conversion of any Debenture or Debentures, the
Company shall make an adjustment therefor at the current market value thereof,
and such payment shall be made by check. For these purposes, the current market
value of a share of Common Stock shall be the Closing Price on the first
Business Day immediately preceding the day on which the Debentures (or specified
portions thereof) are deemed to have been converted.
Any Debentures called for redemption, unless surrendered for conversion on
or before the close of business on the Business Day immediately preceding the
date fixed for redemption, may, upon an agreement between the Company and one or
more investment bankers or other purchasers, be deemed to be purchased from the
holder of such Debentures at an amount equal to the applicable redemption price,
together with accrued interest to, but excluding, the date fixed for redemption,
by such investment bankers or other purchasers who may agree with the Company to
purchase such Debentures from the holders thereof and convert them into Common
9
Stock of the Company and to make payment for such Debentures as aforesaid to the
Trustee in trust for such holders, all in accordance with the terms of the
Indenture.
Upon due presentment for registration of transfer of any Debenture to the
Trustee and satisfaction of the requirements for such transfer set forth in
Section 2.5 of the Indenture, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Debentures of any authorized denominations and of a
like aggregate principal amount and bearing such restrictive legends as may be
required by the Indenture, without charge except for any tax or other
governmental charge imposed in connection therewith.
The Company, the Trustee, any authenticating agent, any paying agent, any
conversion agent and any Debenture registrar may deem the Person in whose name
this Debenture shall be registered upon the Register to be, and treat him as the
absolute owner of this Debenture (whether or not this Debenture shall be overdue
and notwithstanding any notation of ownership or other writing hereon made by
anyone other than the Company or any Debenture registrar), for the purpose of
receiving payment hereof, or on account hereof, and premium, if any, and
interest hereon, for the conversion hereof and for all other purposes, and
neither the Company nor the Trustee nor any other authenticating agent nor any
paying agent nor any other conversion agent nor any Debenture registrar shall be
affected by any notice to the contrary. All payments made to or upon the order
of such registered holder shall be valid, and, to the extent of the sum or sums
paid, effectual to satisfy and discharge liability for monies payable on this
Debenture.
No recourse for the payment of the principal of or any premium or interest
on this Debenture, or for any claim based hereon or otherwise in respect hereof,
and no recourse under or upon any obligation, covenant or agreement of the
Company in the Indenture or any indenture supplemental thereto or in any
Debenture, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, employee, agent, officer or
director or subsidiary, as such, past, present or future, of the Company or of
any successor corporation, either directly or through the Company or any
successor corporation, whether by virtue of any constitution, statute or rule of
law or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.
10
ABBREVIATIONS
The following abbreviations, when used in the inscription of the face of
this Debenture, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT--______ Custodian of ____
TEN ENT - as tenants by the (Cust) (Minor)
entireties Under Uniform Gifts to Minors Act
JT TEN - as joint tenants with
right of survivorship __________________________________
and not as tenants in (State)
common
Additional abbreviations may also be used
though not in the above list.
11
CONVERSION NOTICE
To: OMNICOM GROUP INC.
The undersigned registered owner of this Debenture hereby irrevocably
exercises the option to convert this Debenture, or the portion hereof (which is
$1,000 or an integral multiple thereof) below designated, into shares of Common
Stock of Omnicom Group Inc. in accordance with the terms of the Indenture
referred to in this Debenture, and directs that the shares issuable and
deliverable upon such conversion, together with any check in payment for
fractional shares and any Debentures representing any unconverted principal
amount hereof, be issued and delivered to the registered holder hereof unless a
different name has been indicated below. If shares or any portion of this
Debenture not converted are to be issued in the name of a person other than the
undersigned, the undersigned will complete the appropriate section below and pay
all transfer taxes payable with respect thereto. Any amount required to be paid
to the undersigned on account of interest accompanies this Debenture.
Dated:____________________
_________________________________
_________________________________
Signature(s)
Signature(s) must be guaranteed by a
commercial bank or trust company or a
member firm of a major stock exchange if
shares of Common Stock are to be issued,
or Debentures to be delivered, other than
to and in the name of the registered
holder.
_________________________________
Signature Guarantee
Fill in for registration of shares of Common Stock if to be issued, and
Debentures if to be delivered, other than to and in the name of the registered
holder:
_____________________________
(Name)
_____________________________
(Xxxxxx Xxxxxxx)
_____________________________
(City, State and Zip Code)
Please print name and address
Principal amount to be converted
(if less than all): $___________
_________________________________
Social Security or Other Taxpayer
Identification Number
2
OPTION TO ELECT REPAYMENT
ON JANUARY 3, 2003
To: OMNICOM GROUP INC.
The undersigned registered owner of this Debenture hereby irrevocably
requests and instructs Omnicom Group Inc. (the "Company") to repay the within
Debenture or portion thereof (which is $1,000 or an integral multiple thereof)
below designated, in accordance with the terms of the Indenture referred to in
this Debenture at the repayment price, together with accrued interest to, but
excluding, such date, to the registered holder hereof.
Dated: ______________________ _____________________________________
_____________________________________
Signature(s)
NOTICE: The above signatures of the
holder(s) hereof must correspond with the
name as written upon the face of the
Debenture in every particular without
alteration or enlargement or any change
whatever.
Principal amount to be repaid (if less
than all):
$________________________________
_________________________________
Social Security or Other Taxpayer
Identification Number
OPTION TO ELECT REPAYMENT
UPON A FUNDAMENTAL CHANGE
To: OMNICOM GROUP INC.
The undersigned registered owner of this Debenture hereby irrevocably
acknowledges receipt of a notice from Omnicom Group Inc. (the "Company") as to
the occurrence of a Fundamental Change with respect to the Company and requests
and instructs the Company to repay the entire principal amount of this Debenture
below designated, in accordance with the terms of the Indenture referred to in
this Debenture at the repayment price, together with accrued interest to, but
excluding, such date, to the registered holder hereof.
Dated: ______________________ _____________________________________
_____________________________________
Signature(s)
NOTICE: The above signatures of the
holder(s) hereof must correspond with the
name as written upon the face of the
Debenture in every particular without
alteration or enlargement or any change
whatever.
Principal amount to be repaid (not less
than all for Debentures in certificated
form):
$_________________________________
__________________________________
Social Security or Other Taxpayer
Identification Number
ASSIGNMENT
For value received ________________________ hereby sell(s), assign(s) and
transfer(s) unto _____________________ (Please insert social security or other
Taxpayer Identification Number of assignee) the within Debenture, and hereby
irrevocably constitutes and appoints ________________ attorney to transfer the
said Debenture on the books of Omnicom Group Inc. with full power of
substitution in the premises.
In connection with any transfer of the Debenture within the period prior to
the expiration of the holding period applicable to sales thereof under Rule
144(k) under the Securities Act of 1933, as amended (or any successor
provision), the undersigned confirms that such Debenture is being transferred:
[ ] To Omnicom Group Inc. or a subsidiary thereof; or
[ ] Pursuant to and in compliance with Rule 144A under the Securities Act
of 1933, as amended; or
[ ] To an Institutional Accredited Investor pursuant to and in compliance
with the Securities Act of 1933, as amended; or
[ ] Pursuant to and in compliance with Regulation S under the Securities
Act of 1933, as amended; or
[ ] Pursuant to and in compliance with Rule 144 under the Securities Act
of 1933, as amended;
and unless the box below is checked, the undersigned confirms that such
Debenture is not being transferred to an "affiliate" of Omnicom Group Inc. as
defined in Rule 144 under the Securities Act of 1933, as amended (an
"Affiliate").
[ ] The transferee is an Affiliate of Omnicom Group Inc.
Dated:____________________
_________________________________
_________________________________
Signature(s)
Signature(s) must be guaranteed by a
commercial bank or trust company or a
member firm of a major stock exchange if
shares of Common Stock are to be issued,
or Debentures to be delivered, other than
to and in the name of the registered
holder.
_________________________________
Signature Guarantee
