EXHIBIT 4.5
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FORM OF
SUBORDINATED INDENTURE
Between
LEXAR MEDIA, INC.
and
U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE
Dated as of ____________________
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TABLE OF CONTENTS
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ARTICLE ONE DEFINITIONS ............................................... 1
SECTION 1.01. Certain Terms Defined ................................. 1
"Affiliate" ............................................... 2
"Agent" ................................................... 2
"Authenticating Agent" .................................... 2
"Authorized Newspaper" .................................... 2
"Board of Directors" 2
"Board Resolution" ........................................ 2
"Business Day" ............................................ 2
"Commission" .............................................. 2
"Company" ................................................. 2
"Company Order" ........................................... 3
"covenant defeasance" ..................................... 3
"Coupon" .................................................. 3
"Defaulted Interest" ...................................... 3
"Depository" .............................................. 3
"ECU" ..................................................... 3
"Euro" or "euro" .......................................... 3
"Event of Default" ........................................ 3
"Exchange Act" ............................................ 3
"Foreign Currency" ........................................ 3
"Holder" "Holder of Subordinated Securities,"
"Subordinated Securityholder" ........................... 3
"Interest Payment Date" ................................... 4
"IRS" ..................................................... 4
"Judgment Currency" ....................................... 4
"Offier's Certificate" .................................... 4
"Opinion of Counsel" ...................................... 4
"Original Issue Date" ..................................... 4
"Original Issue Discount Subordinated Security" ........... 4
"Outstanding" ............................................. 4
"Paying Agent" ............................................ 5
"Periodic Offering" ....................................... 5
"Person" .................................................. 5
"Predecessor Subordinated Security" ....................... 5
"prinipal" ................................................ 5
"Principal Office of the Trustee" ......................... 5
"Record Date" ............................................. 6
"Register" ................................................ 6
"Registered Global Subordinated Security" ................. 6
"Registered Subordinated Security" ........................ 6
"Required Currency" ....................................... 6
"Responsible Officer" ..................................... 6
"Senior Indebtedness ...................................... 6
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TABLE OF CONTENTS
(CONTINUED)
"Special Record Date" ....................................................................... 6
"Stated Maturity" ........................................................................... 6
"Subordinated Indenture" .................................................................... 7
"Subordinated Security" or "Subordinated Securities" ........................................ 7
"Supplemental Subordinated Indenture" ....................................................... 7
"Trustee" ................................................................................... 7
"Trust Indenture Act" ....................................................................... 7
"United States Dollars" ..................................................................... 7
"Unregistered Subordinated Security" ........................................................ 7
"U.S. Government Obligations" ............................................................... 7
"Yield to Maturity" ......................................................................... 7
ARTICLE TWO ISSUE, DESCRIPTION, EXECUTION, REGISTRATION, TRANSFER AND EXCHANGE OF
SUBORDINATED SECURITIES ................................................................... 7
SECTION 2.01. Form Of Subordinated Securities and Trustee's Certificate Of Authentication .......... 7
SECTION 2.02. Form of Trustee's Certificate of Authentication ...................................... 8
SECTION 2.03. Amount Unlimited, Issuable in Series ................................................. 8
SECTION 2.04. Authentication and Delivery of Subordinated Indentures ............................... 11
SECTION 2.05. Execution of Subordinated Securities ................................................. 13
SECTION 2.06. Certificate of Authentication ........................................................ 14
SECTION 2.07. Denominations; Payment of Interest on Subordinated Securities ........................ 14
SECTION 2.08. Registration, Transfer and Exchange of Subordinated Securities ....................... 16
SECTION 2.09. Mutilated, Defaced, Destroyed, Lost and Stolen Subordinated Securities ............... 18
SECTION 2.10. Cancellation and Destruction of Surrendered Subordinated Securities .................. 19
SECTION 2.11. Temporary Subordinated Securities .................................................... 19
SECTION 2.12. Subordinated Securities in Global Form; Depositories ................................. 20
SECTION 2.13. CUSIP Numbers ........................................................................ 23
SECTION 2.14. Series May Include Tranches .......................................................... 23
ARTICLE THREE REDEMPTION OF SUBORDINATED SECURITIES AND SINKING FUNDS ................................... 23
SECTION 3.01. Applicability of Article ............................................................. 23
SECTION 3.02. Notice of Redemption; Partial Redemptions ............................................ 23
SECTION 3.03. Payment of Subordinated Securities Called for Redemption ............................. 25
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SECTION 3.04. Exclusion of Certain Subordinated Securities From Eligibility
for Selection for Redemption ....................................................... 26
SECTION 3.05. Mandatory and Optional Sinking Funds ................................................. 26
ARTICLE FOUR PARTICULAR COVENANTS OF THE COMPANY ........................................................ 28
SECTION 4.01. Payment of Principal of and Interest on Subordinated Securities ...................... 28
SECTION 4.02. Corporate Existence of the Company; Consolidation, Merger,
Sale or Transfer ................................................................... 29
SECTION 4.03. Maintenance of Offices or Agencies for Transfer, Registration, Exchange and
Payment of Subordinated Securities ................................................. 29
SECTION 4.04. Appointment to Fill a Vacancy in the Office of Trustee ............................... 30
SECTION 4.05. Duties of Paying Agent ............................................................... 30
SECTION 4.06. Notice of Default .................................................................... 31
SECTION 4.07. Maintenance of Properties ............................................................ 31
SECTION 4.08. Payment of Taxes and Other Claims .................................................... 32
SECTION 4.09. Luxembourg Publications .............................................................. 32
ARTICLE FIVE SUBORDINATED SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND
THE TRUSTEE .............................................................................. 32
SECTION 5.01. Company to Furnish Trustee Information as to the Names and Addresses of
Subordinated Securityholders ....................................................... 32
SECTION 5.02. Preservation of Information; Communication to Subordinated
Securityholders .................................................................... 32
SECTION 5.03. Reports by Company ................................................................... 34
SECTION 5.04. Reports by Trustee ................................................................... 34
ARTICLE SIX REMEDIES OF THE TRUSTEE AND SUBORDINATED
SECURITYHOLDERS ON EVENT OF DEFAULT ....................................................... 36
SECTION 6.01. Events of Default; Acceleration, Waiver of Default And
Restoration of Position and Rights ................................................. 36
SECTION 6.02. Covenant of Company to Pay to Trustee Whole Amount Due on Subordinated Securities
on Default in Payment of Interest or Principal ....................................... 39
SECTION 6.03. Trustee May File Proofs of Claim ..................................................... 40
SECTION 6.04. Trustee May Enforce Claims Without Possession of Subordinated Securities ............. 41
SECTION 6.05. Application of Moneys Collected by Trustee ........................................... 41
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SECTION 6.06. Limitation on Suits by Holders of Subordinated Securities ............................ 42
SECTION 6.07. Rights and Remedies Cumulative ....................................................... 43
SECTION 6.08. Delay or Omission Not Waiver ......................................................... 43
SECTION 6.09. Control by Holders; Waiver of Past Defaults .......................................... 43
SECTION 6.10. Trustee to Give Notice of Defaults Known to it, But May
Withhold in Certain Circumstances .................................................. 44
SECTION 6.11. Requirement of an Undertaking to Pay Costs in Certain Suits Under the Subordinated
Indenture or Against the Trustee ................................................... 44
SECTION 6.12. Waiver of Stay, or Extension Laws .................................................... 45
ARTICLE SEVEN CONCERNING THE TRUSTEE .................................................................... 45
SECTION 7.01. Certain Duties and Responsibilities of Trustee ....................................... 45
SECTION 7.02. Certain Rights of Trustee ............................................................ 46
SECTION 7.03. Trustee Not Responsible for Recitals or Application of Proceeds ...................... 47
SECTION 7.04. Trustee May Own Subordinated Securities or Coupons ................................... 47
SECTION 7.05. Moneys Received by Trustee to be Held in Trust ....................................... 47
SECTION 7.06. Trustee Entitled to Compensation, Reimbursement and Indemnity ........................ 47
SECTION 7.07. Right of Trustee to Rely on Officer's Certificate Where No Other Evidence
Specifically Prescribed ............................................................ 48
SECTION 7.08. Disqualification; Conflicting Interest ............................................... 48
SECTION 7.09. Requirements for Eligibility of Trustee .............................................. 54
SECTION 7.10. Resignation and Removal of Trustee; Appointment of
Successor .......................................................................... 54
SECTION 7.11. Acceptance of Appointment by Successor Trustee ....................................... 55
SECTION 7.12. Successor to Trustee by Merger, Consolidation or Succession
to Business ........................................................................ 56
SECTION 7.13. Preferential Collection of Claims Against Company .................................... 56
SECTION 7.14. Appointment of Authenticating Agent .................................................. 60
ARTICLE EIGHT CONCERNING THE SUBORDINATED SECURITYHOLDERS ............................................... 62
SECTION 8.01. Evidence of Action by Subordinated Securityholders ................................... 62
SECTION 8.02. Proof of Execution of Instruments and of Holding of Subordinated Securities .......... 62
SECTION 8.03. Who May be Deemed Owners of Subordinated Securities .................................. 62
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SECTION 8.04. Subordinated Securities Owned by the Company or Controlled or Controlling Persons
Disregarded for Certain Purposes ................................................... 63
SECTION 8.05. Instruments Executed by Subordinated Securityholders Bind Future Holders ............. 64
ARTICLE NINE SUBORDINATED SECURITYHOLDERS' MEETINGS ..................................................... 64
SECTION 9.01. Purposes for Which Meetings May be Called ............................................ 64
SECTION 9.02. Manner of Calling Meetings ........................................................... 65
SECTION 9.03. Call of Meeting by the Company or Subordinated Securityholders ....................... 65
SECTION 9.04. Who May Attend and Vote at Meetings .................................................. 65
SECTION 9.05. Regulations May be Made by Trustee; Conduct of the Meeting; Voting Rights -
Adjournment ........................................................................ 65
SECTION 9.06. Manner of Voting at Meetings and Record to be Kept ................................... 66
SECTION 9.07. Exercise of Rights of Trustee and Subordinated Securityholders Not to be
Hindered or Delayed ................................................................ 67
ARTICLE TEN SUPPLEMENTAL SUBORDINATED INDENTURES ........................................................ 67
SECTION 10.01. Purposes for Which Supplemental Subordinated Indentures May be Entered into
Without Consent of Subordinated Securityholders ................................... 67
SECTION 10.02. Modification of Subordinated Indenture With Consent of Holders of
Subordinated Securities ........................................................... 68
SECTION 10.03. Effect of Supplemental Subordinated Indentures ...................................... 70
SECTION 10.04. Subordinated Securities May Bear Notation of Changes by Supplemental
Subordinated Indentures ........................................................... 70
ARTICLE ELEVEN DISCHARGE; DEFEASANCE .................................................................... 71
SECTION 11.01. Satisfaction and Discharge of Subordinated Indenture ................................ 71
SECTION 11.02. Application by Trustee of Funds Deposited for Payment of Subordinated Securities .... 74
SECTION 11.03. Repayment of Moneys Held by Paying Agent ............................................ 75
SECTION 11.04. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years ........... 75
SECTION 11.05. Indemnity for U.S. Government of Obligations ........................................ 75
ARTICLE TWELVE IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS .......................... 75
SECTION 12.01. Incorporators, Stockholders, Officers and Directors of Company Exempt from
Individual Liability .............................................................. 75
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ARTICLE THIRTEEN MISCELLANEOUS PROVISIONS ............................................................... 76
SECTION 13.01. Successors and Assigns of the Company Bound by Subordinated Indenture ............... 76
SECTION 13.02. Notices; Effectiveness .............................................................. 76
SECTION 13.03. Compliance Certificates and Opinions ................................................ 77
SECTION 13.04. Days on Which Payment to be Made, Notice Given or Other
Action Taken ...................................................................... 78
SECTION 13.05. Provisions Required by Trust Indenture Act to Control ............................... 78
SECTION 13.06. Governing Law ....................................................................... 78
SECTION 13.07. Effect of Headings .................................................................. 78
SECTION 13.08. Subordinated Securities in a Foreign Currency or in ECU ............................. 78
SECTION 13.09. Judgment Currency ................................................................... 79
SECTION 13.10. Provisions of the Subordinated Indenture and Subordinated Securities for the Sole
Benefit of the Parties and the Subordinated Securityholders ....................... 80
SECTION 13.11. Subordinated Indenture May be Executed in Counterparts .............................. 80
ARTICLE FOURTEEN SUBORDINATION OF SECURITIES ............................................................ 80
SECTION 14.01. Securities Subordinated to Senior Indebtedness ...................................... 80
SECTION 14.02. Subrogation ......................................................................... 81
SECTION 14.03. Obligation of the Company Unconditional ............................................. 82
SECTION 14.04. Payments on Securities Permitted .................................................... 82
SECTION 14.05. Effectuation of Subordinated by Trustee ............................................. 82
SECTION 14.06. Knowledge of Trustee ................................................................ 82
SECTION 14.07. Trustee May Hold Senior Indebtedness ................................................ 83
SECTION 14.08. Rights of Holder of Senior Indebtedness Not Impaired ................................ 83
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THIS SUBORDINATED INDENTURE, dated as of ________________, between LEXAR
MEDIA, INC., a Delaware corporation (the "Company"), and U.S. Bank National
Association, a national banking association duly organized and existing under
the laws of the United States, as trustee (the "Trustee").
WITNESSETH:
WHEREAS, the Company has duly authorized the issuance, sale, execution and
delivery, from time to time, of its unsecured evidences of subordinated
indebtedness (hereinafter referred to as the "Subordinated Securities"), without
limit as to principal amount, issuable in one or more series, the amount and
terms of each such series to be determined as hereinafter provided; and, to
provide the terms and conditions upon which the Subordinated Securities are to
be issued, authenticated and delivered, the Company has duly authorized the
execution of this Subordinated Indenture; and
WHEREAS, all acts and things necessary to make the Subordinated Securities,
when executed by the Company and authenticated and delivered by the Trustee as
in this Subordinated Indenture provided, the valid, binding and legal
subordinated obligations of the Company, and to constitute this Subordinated
Indenture a valid indenture and agreement according to its terms, have been done
and performed, and the execution of this Subordinated Indenture and the issuance
hereunder of the Subordinated Securities have in all respects been duly
authorized;
NOW, THEREFORE, THIS SUBORDINATED INDENTURE
WITNESSETH:
That in order to declare the terms and conditions upon which the
Subordinated Securities are to be issued, authenticated and delivered, and in
consideration of the premises and of the purchase and acceptance of the
Subordinated Securities 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 Subordinated Securities or of any series
thereof, as follows:
ARTICLE ONE
DEFINITIONS
SECTION 1.01. Certain Terms Defined. For all purposes of this Subordinated
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:
(a) the terms defined in this Article One have the meanings assigned to
them in this Article One, and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein;
(c) all accounting terms not otherwise defined herein shall have the
meanings assigned to them and all computations herein provided for shall be
made, in accordance with
generally accepted accounting principles, and the term "generally accepted
accounting principles" shall mean such principles as they exist at the date of
applicability thereof; and
(d) the words "herein", "hereof" and "hereunder" and other words of similar
import refer to this Subordinated Indenture as a whole and not to any particular
Article, Section or other subdivision.
"Affiliate" of any Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlling", "controlled by" and "under common
control with") when used with respect to any Person means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise.
"Agent" means any Registrar, Paying Agent, transfer agent or Authenticating
Agent.
"Authenticating Agent" shall the meaning set forth in Section 7.14.
"Authorized Newspaper" means a newspaper (which, in the case of The City of
New York, will, if practicable, be The Wall Street Journal (Eastern Edition) and
in the case of London, will, if practicable, be the Financial Times (London
Edition) and, in the case of Luxembourg, will, if practicable be the Luxembourg
Wort and published in an official language of the country of publication
customarily published at least once a day for at least five days in each
calendar week and of general circulation in The City of New York, London or
Luxembourg, as applicable. If it shall be impractical in the opinion of the
Trustee to make any publication of any notice required hereby in an Authorized
Newspaper, any publication or other notice in lieu thereof which is made or
given with the approval of the Trustee shall constitute a sufficient publication
of such notice.
"Board of Directors" shall mean the Board of Directors of the Company, or
any duly authorized committee of such Board of Directors.
"Board Resolution" shall mean on or more resolutions of the Board of
Directors of the Company certified by the Secretary or by an Assistant Secretary
of the Company to have been duly adopted by the Board of Directors of the
Company and to be in full force and effect on the date of such certification.
"Business Day" means, with respect to any Subordinated Security, a day that
is not a day on which banking institutions in the city (or in any of the cities,
if more than one) in which amounts are payable, as specified in the form of such
Subordinated Security, are authorized or required by any applicable law or
regulation to be closed.
"Commission" shall mean the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or if at any time
after the execution of this Subordinated Indenture such Commission is not
existing and performing the duties theretofore assigned to it under the Trust
Indenture Act, then the body performing such duties at such time.
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"Company" shall mean Lexar Media, Inc., a Delaware corporation, until a
successor corporation shall have become such pursuant to the applicable
provisions hereof, and thereafter "Company" shall mean such successor Company.
"Company Order" means a written statement, request or order of the Company
signed in its name by the Chairman of the Board of Directors of the Company, the
President or Chief Executive Officer, any Vice President or the Treasurer of the
Company.
"covenant defeasance" shall have the meaning set forth in Section 11.01.
"Coupon" means any interest coupon appertaining to an Unregistered
Subordinated Security.
"Defaulted Interest" shall have the meaning set forth in Section 2.07.
"Depository" shall mean, with respect to the Subordinated Securities of any
series issuable or issued in whole or in part in the form of one or more
Registered Global Subordinated Securities, the Person designated as Depository
by the Company pursuant to Section 2.03 of this Subordinated Indenture until a
successor Depository shall have become such pursuant to the applicable
provisions of this Subordinated Indenture, and thereafter the term "Depository"
shall mean or include each Person who is then a Depository hereunder, and if at
any time there is more than one such Person, "Depository" as used with respect
to the Subordinated Securities of any such series shall mean the Depository with
respect to the Subordinated Securities of that series.
"ECU" means the European Currency Unit as defined and revised from time to
time by the European Monetary System of the European Community and/or Euros.
"Euro" or "euro" means the currency adopted by those countries
participating in the third stage of the European Monetary Union.
"Event of Default" with respect to Subordinated Securities of any series
shall mean any event specified as such in Section 6.01 and any other event as
may be established with respect to the securities of such series as permitted by
Section 2.03. An Event of Default shall "exist" if an Event of Default shall
have occurred and be continuing.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Foreign Currency" means a currency issued by the government of a country
other than the United States of America.
"Holder," "Holder of Subordinated Securities," "Subordinated
Securityholder" or any other similar term means (a) in the case of any
Registered Subordinated Security, the person in whose name such Subordinated
Security is registered in the Register kept by the Company for that purpose in
accordance with the terms hereof, and (b) in the case of any Unregistered
Subordinated Security, the bearer of such Subordinated Security, or any Coupon
appertaining thereto, as the case may be.
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"Interest Payment Date" when used with respect to any Subordinated Security
means the Stated Maturity of an installment of interest on such Subordinated
Security.
"IRS" means the Internal Revenue Service of the United States Department of
the Treasury, or any successor entity.
"Judgment Currency" has the meaning set forth in Section 13.09.
"Officer's Certificate" shall mean a certificate signed by the Chairman of
the Board of Directors of the Company, any Vice-Chairman of the Board of
Directors of the Company, the President or Chief Executive Officer or any
Vice-President, the Treasurer, any Assistant Treasurer, the Secretary or any
Assistant Secretary of the Company. Each such certificate shall include the
statements provided for in Section 13.03, if and to the extent required by the
provisions of such Section.
"Opinion of Counsel" shall mean a written opinion of legal counsel who may
be an employee of the Company or other counsel satisfactory to the Trustee. Each
such opinion shall include the statements provided for in Section 13.03, if and
to the extent required by the provisions of such Section.
"Original Issue Date" of any Subordinated Security (or portion thereof)
means the earlier of (a) the date of such Subordinated Security or (b) the date
of any Subordinated Security (or portion thereof) for which such Subordinated
Security was issued (directly or indirectly) on registration of transfer,
exchange or substitution.
"Original Issue Discount Subordinated Security" shall mean (a) any
Subordinated Security which provides for an amount less than the principal
amount thereof to be due and payable upon declaration of acceleration of the
maturity thereof pursuant to Section 6.01 or (b) any other Subordinated Security
which for United States Federal income tax purposes would be considered an
original issue discount security.
"Outstanding" when used with reference to Subordinated Securities shall,
subject to the provisions of Section 8.04, mean, as of the date of
determination, all Subordinated Securities theretofore authenticated and
delivered under this Subordinated Indenture, except:
(a) Subordinated Securities theretofore canceled by the Trustee or
delivered to the Trustee for cancellation;
(b) Subordinated Securities, or portions thereof, for whose payment or
redemption moneys or U.S. Government Obligations (as provided in Section 11.01)
in the necessary amount have been theretofore deposited with the Trustee or with
any Paying Agent (other than the Company) or shall have been set aside,
segregated and held in trust by the Company (if the Company shall act as its own
Paying Agent) in trust for the Holders of such Subordinated Securities, provided
that if such Subordinated Securities or portions thereof, are to be redeemed
prior to the Stated Maturity thereof, notice of such redemption has been duly
given as provided in Article Three hereof, or provision therefor satisfactory to
the Trustee has been made;
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(c) Subordinated Securities in exchange for or in lieu of which other
Subordinated Securities shall have been authenticated and delivered under this
Subordinated Indenture; and
(d) Subordinated Securities alleged to have been destroyed, lost or stolen
which have been paid as provided in Section 2.07 hereof.
In determining whether the Holders of the requisite principal amount of
Outstanding Subordinated Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Subordinated Security that shall be deemed
to be Outstanding for such purposes shall be the amount of the principal thereof
that would be due and payable as of the date of such determination as if a
declaration of acceleration of the maturity thereof pursuant to Section 6.01 had
been made.
"Paying Agent" means any Person authorized by the Company to pay the
principal of and any interest and premium, if any, on any Subordinated
Securities on behalf of the Company.
"Periodic Offering" means an offering of Subordinated Securities of a
series from time to time, the specific terms of which Subordinated Securities,
including, without limitation, the rate or rates of interest, if any, thereon,
the stated maturity or maturities thereof and the redemption provisions, if any,
with respect thereto, are to be determined by the Company or its agents upon the
issuance of such Subordinated Securities.
"Person" shall mean an individual, a corporation, a partnership, a limited
liability company, a joint venture, an association, a joint stock company, a
trust, an unincorporated organization, or a government or any agency, authority
or political subdivision thereof.
"Predecessor Subordinated Security" of any particular Subordinated Security
means every previous Subordinated Security evidencing all or a portion of the
same debt as that evidenced by such particular Subordinated Security; and, for
the purposes of this definition, any Subordinated Security authenticated and
delivered under Section 2.04 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Subordinated Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Subordinated Security.
"principal" whenever used with reference to the Subordinated Securities or
any Subordinated Security or any portion thereof, shall be deemed to include
"and premium, if any," provided, however, that such inclusion of premium, if
any, shall under no circumstances result in the double counting of such premium
for the purpose of any calculation required hereunder.
"Principal Office of the Trustee" shall mean the office of the Trustee at
which at any particular time the trust created by this Indenture shall be
administered, except that with respect to presentation of Subordinated
Securities for payment such term shall mean the office or agency of the Trustee
designated for that purpose. The present address of the office at which the
trust created by this Indenture is administered is 000 Xxxx 0xx Xxxxxx, 00xx
Xxxxx, Xxx Xxxxxxx, XX 00000, attention: Corporate Trust Services.
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"Record Date" for the interest payable on any Interest Payment Date on any
series of Subordinated Securities shall mean the date specified as such in the
Subordinated Securities of such series.
"Register" shall mean the books for the registration and transfer of
Subordinated Securities which books are kept by the Trustee pursuant to Section
2.08.
"Registered Global Subordinated Security" means a Subordinated Security
evidencing all or a portion of a series of Registered Subordinated Securities,
issued to the Depositary for such series in accordance with Section 2.12, and
bearing the legend prescribed in Section 2.12 and any other legend required by
the Depositary for such series.
"Registered Subordinated Security" means any Subordinated Security
registered on the Register of the Company.
"Required Currency" shall have the meaning set forth in Section 13.09.
"Responsible Officer" when used with respect to the Trustee shall mean an
officer in the Principal Office of the Trustee or any other officer of the
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer of the Trustee to whom such matter is
referred because of such Person's knowledge of and familiarity with the
particular subject.
"Senior Indebtedness" means (i) the principal of and premium, if any, and
unpaid interest on indebtedness for money borrowed, (ii) purchase money and
similar obligations, (iii) obligations under capital leases, (iv) guarantees,
assumptions or purchase commitments relating to, or other transactions as a
result of which the Company is responsible for the payment of, such indebtedness
of others, (v) renewals, extensions and refunding of any such indebtedness, (vi)
interest or obligations in respect of any such indebtedness accruing after the
commencement of any insolvency or bankruptcy proceedings; and (vii) obligations
associated with derivative products such as interest rate and currency exchange
contracts, foreign exchange contracts, commodity contracts, and similar
arrangements, unless, in each case, the instrument by which the Company
incurred, assumed or guaranteed the indebtedness or obligations described in
clauses (i) through (vii) hereof expressly provides that such indebtedness or
obligation is subordinate or junior in right or payment to any other
indebtedness or obligation is subordinate or junior in right of payment to any
other indebtedness or obligations of the Company.
"Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 2.07.
"Stated Maturity" when used with respect to any Subordinated Security or
any installment of interest thereon means the date specified in such
Subordinated Security as the fixed date on which the principal of such
Subordinated Security or such installment of interest is due and payable.
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"Subordinated Indenture" shall mean this instrument as originally executed,
or as it may from time to time be supplemented, modified or amended, as provided
herein, and shall include the form and terms of particular series of
Subordinated Securities established in accordance with the provisions of
Sections 2.03 and 2.04.
"Subordinated Security" or "Subordinated Securities" shall mean any
security or securities of the Company without regard to series, authenticated
and delivered under this Subordinated Indenture.
"Supplemental Subordinated Indenture" shall mean an indenture supplemental
hereto as such Supplemental Subordinated Indenture may be originally executed,
or as it may from time to time be supplemented, modified or amended, as provided
herein and therein.
"Trustee" shall mean the party named as such in the first paragraph of this
Subordinated Indenture until a successor Trustee shall have become such pursuant
to the applicable provisions of this Subordinated Indenture, and thereafter
"Trustee" shall mean such successor Trustee. "Trustee" shall also mean or
include each Person who is then a trustee hereunder, and, if at any time there
is more than one such Person, "Trustee" as used with respect to the Subordinated
Securities of any series shall mean the trustee with respect to the Subordinated
Securities of such series.
"Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended as of the date of this Subordinated Indenture.
"United States Dollars" shall mean the lawful currency of the United States
of America.
"Unregistered Subordinated Security" means any Subordinated Security other
than a Registered Subordinated Security.
"U.S. Government Obligations" shall have the meaning set forth in Section
11.01.
"Yield to Maturity" means the yield to maturity on a series of securities,
calculated at the time of issuance of such series, or, if applicable, at the
most recent redetermination of interest on such series, and calculated in
accordance with accepted financial practice.
ARTICLE TWO
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION,
TRANSFER AND EXCHANGE OF SUBORDINATED SECURITIES
SECTION 2.01. Form of Subordinated Securities and Trustee's Certificate of
Authentication. The Subordinated Securities of each series and the Coupons, if
any, to be attached thereto shall be substantially in such form (not
inconsistent with this Subordinated Indenture) as shall be established by or
pursuant to one or more Board Resolutions and as set forth in an Officer's
Certificate or Supplemental Subordinated Indenture, in each case with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Subordinated Indenture, and may have such letters,
numbers or other marks of identification or designation and such legends or
endorsements thereon as the Board of Directors
7
may deem appropriate and as are not inconsistent with the provisions of this
Subordinated Indenture, or as may be required to comply with any law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Subordinated Securities of such series may be
listed, or to conform to usage all as may be determined by the officers
executing such Subordinated Securities and Coupons, if any, as evidenced by
their execution of such Subordinated Securities and Coupons.
The definitive Subordinated Securities and Coupons, if any, and each Global
Subordinated Security may be printed, lithographed or fully or partly engraved
or produced in any other manner, all as determined by the officers executing
such Subordinated Securities and Coupons, if any, as evidenced by their
execution thereof.
SECTION 2.02. Form of Trustee's Certificate of Authentication. The
Trustee's certificate of authentication on all Subordinated Securities shall be
in substantially the following form:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Subordinated Securities, of the series designated
herein, referred to in the within-mentioned Subordinated Indenture.
U.S. Bank National Association, as Trustee
By
---------------------------------------
Authorized Signatory
SECTION 2.03. Amount Unlimited, Issuable in Series.
(a) The aggregate principal amount of Subordinated Securities which may be
authenticated and delivered under this Subordinated Indenture is not limited.
The Subordinated Securities may be issued in one or more series.
The following terms and provisions of each series of Subordinated
Securities shall be established in or pursuant to one or more Board Resolutions
and set forth in an Officer's Certificate detailing such establishment or
established in one or more Supplemental Subordinated Indentures prior to the
issuance of Subordinated Securities of any series:
(1) the designation of the series of Subordinated Securities of the
series (which shall distinguish the Subordinated Securities of such series from
all other series of Subordinated Securities) and which may be part of a series
of Subordinated Securities previously issued;
(2) any limit upon the aggregate principal amount of the particular
series of Subordinated Securities which may be executed, authenticated and
delivered under this Subordinated Indenture; provided, however, that nothing
contained in this Section 2.03 or elsewhere in this Subordinated Indenture or in
the Subordinated Securities or in an Officer's Certificate or in a Supplemental
Subordinated Indenture is intended to or shall limit execution by
8
the Company or authentication and delivery by the Trustee of Subordinated
Securities under the circumstances contemplated by Sections 2.08, 2.09, 2.11,
3.03 and 10.04;
(3) if other than United States Dollars, the coin, currency or
currencies or composite currency in which principal of and interest and any
premium on such series of Subordinated Securities shall be payable (including,
but not limited to, any Foreign Currency or ECU);
(4) the Stated Maturity for payment of principal of such series of
Subordinated Securities and any sinking fund or analogous provisions;
(5) the rate or rates at which such series of Subordinated Securities
shall bear interest, if any, the date or dates from which such interest shall
accrue, on which such interest shall be payable, the terms and conditions of any
deferral of interest and the additional interest, if any, thereon, the right, if
any, of the Company to extend the time for payment of interest, the terms and
duration of such extension rights and (in the case of Registered Subordinated
Securities) the date or dates on which a record shall be taken for the
determination of Holders to whom interest is payable and/or the method by which
such rate or rates or date or dates shall be determined;
(6) the place or places where the principal of and any interest on
Subordinated Securities of any series shall be payable, where such Subordinated
Securities may be surrendered for registration of transfer, where such
Subordinated Securities may be surrendered for exchange and where notice and
demands to or upon the Company, in respect of such Subordinated Securities, and
this Subordinated Indenture may be served, if other than as provided in Section
4.03;
(7) the right, if any, of the Company to redeem Subordinated
Securities, in whole or in part, at its option and the period or periods within
which, the price or prices at which and any terms and conditions upon which
Subordinated Securities of the series may be so redeemed, pursuant to any
sinking fund or otherwise;
(8) the obligation, if any, of the Company to redeem, purchase or
repay Subordinated Securities of the series pursuant to any mandatory
redemption, sinking fund or analogous provisions or at the option of a Holder
thereof and the price or prices at which and the period or periods within which
and any terms and conditions upon which Subordinated Securities of the series
shall be redeemed, purchased or repaid, in whole or in part, pursuant to such
obligation;
(9) if other than denominations of $1,000 or [Euro] 1,000, as the case
may be, and any integral multiple thereof, in the case of Registered
Subordinated Securities, or $1,000 and $5,000 or [Euro] 1,000 and [Euro] 5,000
in the case of Unregistered Subordinated Securities, the denominations in which
such series of Subordinated Securities shall be issuable;
(10) the percentage of the principal amount at which the Subordinated
Securities will be issued, and, if other than the principal amount thereof, the
portion of the principal amount of such series of Subordinated Securities which
shall be payable upon declaration of acceleration of the maturity thereof
pursuant to Section 6.01;
9
(11) if other than the coin, currency or currencies in which the
Subordinated Securities of the series are denominated, the coin, currency or
currencies in which payment of the principal of or interest on the Subordinated
Securities of such series shall be payable, including composite currencies or
currency units;
(12) if the principal or interest on the Subordinated Securities of
the series are to be payable, at the election of the Company or a Holder
thereof, in a coin or currency other than that in which the Subordinated
Securities are denominated, the period or periods within which, and the terms
and conditions upon which, such election may be made;
(13) if the amount of payments or principal of and interest on the
Subordinated Securities of the series may be determined with reference to an
index or formula based on a coin, currency, composite currency or currency unit
other than that in which the Subordinated Securities of the series are
denominated, the manner in which such amounts shall be determined;
(14) whether the Subordinated Securities of the series will be
issuable as Registered Subordinated Securities (and if so, whether such
Subordinated Securities will be issuable as Registered Global Subordinated
Securities, the Depository for such Registered Global Securities and any
additional terms and conditions relating to such Registered Global Subordinated
Securities not set forth in this Subordinated Indenture) or Unregistered
Subordinated Securities (with or without Coupons), or any combination of the
foregoing, any restrictions applicable to the offer, sale or delivery of
Unregistered Subordinated Securities or the payment of interest thereon and, if
other than as provided in Section 2.08, the terms upon which Unregistered
Subordinated Securities of any series may be exchanged for Registered
Subordinated Securities of such series and vice versa;
(15) whether and under what circumstances the Company will pay
additional amounts on the Subordinated Securities of the series held by a person
who is not a U.S. person in respect of any tax, assessment or governmental
charge withheld or deducted and, if so, whether the Company will have the option
to redeem the Subordinated Securities of the series rather than pay such
additional amounts;
(16) if the Subordinated Securities of the series are to be issuable
in definitive form (whether upon original issue or upon exchange of a temporary
Subordinated Security of such series) only upon receipt of certain certificates
or other documents or satisfaction of other conditions, the form and terms of
such certificates, documents or conditions;
(17) any trustees, depositaries, authenticating or paying agents,
transfer agents or registrars of any other agents with respect to the
Subordinated Securities of such series;
(18) any additional events of default or covenants with respect to the
Subordinated Securities of a particular series not set forth herein;
(19) the terms of subordination applicable to such series of
Subordinated Securities;
(20) the terms and conditions, if any, upon which any Subordinated
Securities of such series may or shall be converted or exchanged into other
instruments or other forms of
10
property of the Company or its subsidiaries, including without limitation,
securities of another Person held by the Company or its Affiliates, and if so
the terms thereof; and
(21) any other terms of such series of Subordinated Securities (which
terms shall not be inconsistent with the provisions of this Subordinated
Indenture).
(b) All Subordinated Securities of any one series and Coupons, if any,
appertaining thereto shall be substantially identical except that any series may
have serial maturities and different interest rates for different maturities and
except in the case of Registered Subordinated Securities as to denomination and
the differences herein specified between Registered Global Subordinated
Securities and Registered Subordinated Securities issued in definitive form and
except as may otherwise be provided in or pursuant to such Board Resolution and
set forth in such Officer's Certificate or Supplemental Subordinated Indenture
relating to such series of Subordinated Securities. All Subordinated Securities
of any one series need not be issued at the same time, and, unless otherwise
provided in the Officer's Certificate or Supplemental Subordinated Indenture
relating to such series, a series may be reopened for issuances of additional
Subordinated Securities of such series.
SECTION 2.04. Authentication and Delivery of Subordinated Indentures.
At any time and from time to time after the execution and delivery of this
Subordinated Indenture, the Company may deliver any series of Subordinated
Securities having attached thereto appropriate Coupons, if any, executed by the
Company to the Trustee for authentication by it together with the applicable
documents referred to below in this Section 2.04, and the Trustee shall
thereupon authenticate and deliver said Subordinated Securities (or if only a
single Subordinated Security, such Subordinated Security) and Coupons, if any,
to or upon the written order of the Company, signed by an officer of the
Company, without any further corporate action. The maturity date, original issue
date, interest rate and any other terms of the Subordinated Securities of such
series and Coupons, if any, appertaining thereto shall be determined by or
pursuant to such Company Order and procedures. If provided for in such
procedures, such Company Order may authorize authentication and delivery
pursuant to oral or electronic instructions from the Company or its duly
authorized agent or agents, which instructions, if oral, shall be promptly
confirmed in writing. In authenticating such Subordinated Securities and
accepting the additional responsibilities under this Subordinated Indenture in
relation to such Subordinated Securities, the Trustee shall be entitled to
receive (in the case of subparagraphs (2), (3) and (4) below only at or before
the time of the first request of the Company to the Trustee to authenticate
Subordinated Securities of such series) and (subject to Section 7.01) shall be
fully protected in relying upon, the following enumerated documents unless and
until such documents have been superseded or revoked:
(1) a Company Order requesting such authentication and setting forth
delivery instructions if the Subordinated Securities and Coupons, if any, are
not to be delivered to the Company, provided that, with respect to Subordinated
Securities of a series subject to a Periodic Offering, (a) such Company Order
may be delivered by the Company to the Trustee prior to the delivery to the
Trustee of such Subordinated Securities for authentication and delivery, (b) the
Trustee shall authenticate and deliver Subordinated Securities of such series
for original issue from time to time, in an aggregate principal amount not
exceeding the aggregate principal
11
amount established for such series, pursuant to a Company Order or pursuant to
procedures acceptable to the Trustee as may be specified from time to time by a
Company Order, (c) the maturity date or dates, original issue date or dates,
interest rate or rates and any other terms of Subordinated Securities of such
series shall be determined by a Company Order or pursuant to such procedures and
(d) if provided for in such procedures, such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which instructions, if oral,
shall be promptly confirmed in writing;
(2) any Board Resolution, Officer's Certificate and/or executed
Supplemental Subordinated Indenture referred to in Section 2.01 and 2.03 by or
pursuant to which the forms and terms of the Subordinated Securities and
Coupons, if any, were established;
(3) an Officer's Certificate setting forth the form or forms and terms
of the Subordinated Securities and Coupons, if any, stating that the form or
forms and terms of the Subordinated Securities and Coupons, if any, have been
established pursuant to Sections 2.01 and 2.03 and comply with this Subordinated
Indenture, and covering such other matters as the Trustee may reasonably
request;
(4) At the option of the Company, either one or more Opinions of
Counsel, or a letter addressed to the Trustee permitting it to rely on one or
more Opinions of Counsel, substantially to the effect that:
(a) the form or forms of the Subordinated Securities and Coupons,
if any, have been duly authorized and established in conformity with the
provisions of this Subordinated Indenture;
(b) in the case of an underwritten offering, the terms of the
Subordinated Securities have been duly authorized and established in conformity
with the provisions of this Subordinated Indenture, and, in the case of an
offering that is not underwritten, certain terms of the Subordinated Securities
have been established pursuant to a Board Resolution, an Officer's Certificate
or a Supplemental Subordinated Indenture in accordance with this Subordinated
Indenture, and when such other terms as are to be established pursuant to
procedures set forth in a Company Order shall have been established, all such
terms will have been duly authorized by the Company and will have been
established in conformity with the provisions of this Subordinated Indenture;
(c) this Indenture and such Subordinated Securities, when
executed and issued by the Company and authenticated by the Trustee in
accordance with the provisions of this Subordinated Indenture and duly paid for
by the purchasers thereof, and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and binding obligations of the
Company, except as any rights thereunder may be limited by the effect of
bankruptcy, insolvency, reorganization, receivership, conservatorship,
arrangement, moratorium or other laws affecting or relating to the rights of
creditors generally; the rules governing the availability of specific
performance, injunctive relief or other equitable remedies and general
principles of equity, regardless of whether considered in a proceeding in equity
or at law; the effect of applicable court decisions invoking statutes or
principles of equity, which have held that certain
12
covenants and provisions of agreements are unenforceable where the breach of
such covenants or provisions imposes restrictions or burdens upon a borrower,
and it cannot be demonstrated that the enforcement of such restrictions or
burdens is necessary for the protection of the creditor, or which have held that
the creditor's enforcement of such covenants or provisions under the
circumstances would have violated the creditor's covenants of good faith and
fair dealing implied under California law; and the effect of California statutes
and rules of law which cannot be waived prospectively by a borrower, and such
counsel need express no opinion with regard to the enforceability of Section
7.06 or of a judgment denominated in a currency other than United States
Dollars; and
(d) the Company has complied with all applicable Federal laws and
requirements in respect of the execution and delivery of such Subordinated
Securities;
(5) if the Securities are to be secured, a supplemental indenture
conforming to the requirements of Section 314 of the Trust Indenture Act, and
such other documents as may be required by Section 314; and
(6) if the Securities are to be convertible, a supplemental indenture
conforming to the requirements of Section 314 of the Trust Indenture Act, and
such other documents as may be required by Section 314.
In rendering such opinions, any counsel may qualify any opinions as to
enforceability by stating that such enforceability may be limited by bankruptcy,
insolvency, reorganization, liquidation, moratorium, fraudulent transfer and
other similar laws affecting the rights and remedies of creditors and is subject
to general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law). Such counsel may rely upon
opinions of other counsel (copies of which shall be delivered to the Trustee)
reasonably satisfactory to the Trustee, in which case the opinion shall state
that such counsel believes he and the Trustee are entitled so to rely. Such
counsel may also state that, insofar as such opinion involves factual matters,
he has relied, to the extent he deems proper, upon certificates of officers of
the Company and its subsidiaries and certificates of public officials.
The Trustee shall have the right to decline to authenticate and deliver
any Subordinated Securities under this section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken by the Company or
if the Trustee in good faith by its board of directors or board of trustees,
executive committee or a trust committee of directors or trustees shall
determine that such action would expose the Trustee to personal liability to
existing Holders or would affect the Trustee's own rights, duties or immunities
under the Subordinated Securities, this Subordinated Indenture or otherwise.
SECTION 2.05. Execution of Subordinated Securities. The Subordinated
Securities and each Coupon appertaining thereto, if any, shall be executed
manually or in facsimile, by any two of the Chairman of the Board, Chief
Executive Officer, the President, and Vice President, the Secretary, any
Assistant Secretary, the Chief Financial Officer, the Treasurer or any Assistant
Treasurer of the Company under its corporate seal (except in the case of
Coupons), which may be affixed thereto or printed, engraved or otherwise
reproduced thereon, by facsimile or otherwise. Only such Subordinated Securities
or Coupons, if any, as shall bear thereon a certificate of authentication
substantially in the form recited herein, executed by the Trustee manually by an
authorized officer, shall be entitled to the benefits of this Subordinated
Indenture or be valid or obligatory for any purpose. Such certificate of
authentication of the Trustee upon any Subordinated Security or Coupon, if any,
executed by the Company shall be conclusive evidence that the Subordinated
Security or Coupon so authenticated has been duly authenticated and delivered
hereunder and that the Holder is entitled to the benefits of this Subordinated
Indenture. Typographical or other errors or defects in the seal or facsimile
signature on any
13
Subordinated Security or in the text thereof shall not affect the validity or
enforceability of such Subordinated Security if it has been duly authenticated
and delivered by the Trustee.
In case any officer of the Company who shall have signed any of the
Subordinated Securities or Coupons, if any, (manually or in facsimile) shall
cease to be such officer before the Subordinated Securities or Coupons so signed
shall have been authenticated and delivered by the Trustee, or disposed of by
the Company, such Subordinated Securities or Coupons nevertheless may be
authenticated and delivered or disposed of as though the Person who signed such
Subordinated Securities or Coupons had not ceased to be such officer of the
Company. Also, any Subordinated Security or Coupon may be signed on behalf of
the Company by such Persons as on the actual date of execution of such
Subordinated Security or Coupon shall be the proper officers of the Company,
although at the date of the execution of this Subordinated Indenture or on the
nominal date of such Subordinated Security any such Person was not such officer.
SECTION 2.06. Certificate of Authentication. Only such Subordinated
Securities as shall bear thereon a certificate of authentication substantially
in the form hereinbefore recited, executed by the Trustee by the manual
signature of one of its authorized officers, shall be entitled to the benefits
of this Subordinated Indenture or be valid or obligatory for any purpose. No
Coupon shall be entitled to the benefits of this Subordinated Indenture or shall
be valid and obligatory for any purpose until the certificate of authentication
on the Subordinated Security to which such Coupon appertains shall have been
duly executed by the Trustee. The execution of such certificate by the Trustee
upon any Subordinated Security executed by the Company shall be conclusive
evidence that the Subordinated Security so authenticated has been duly
authenticated and delivered hereunder and that the Holder is entitled to the
benefits of this Subordinated Indenture.
SECTION 2.07. Denominations; Payment of Interest on Subordinated
Securities.
(a) The Subordinated Securities of each series may be issued as Registered
Subordinated Securities or Unregistered Subordinated Securities in denominations
all as shall be specified as contemplated by Section 2.03. In the absence of
such provisions with respect to the Registered Subordinated Securities of any
series, the Subordinated Securities of such series (other than any Registered
Global Subordinated Securities) shall be issued in denominations of $1,000 (or
[Euro] 1,000, as applicable) and any integral multiple thereof. If denominations
of Unregistered Subordinated Securities of any series are not so established,
such Subordinated Securities shall be issuable in denominations of $1,000 and
$5,000 (or [Euro] 1,000 and [Euro] 5,000). The Subordinated Securities of each
series shall be numbered, lettered or otherwise distinguished in such manner or
in accordance with such plan as the officers of the Company executing the same
may determine with the approval of the Trustee, as evidenced by the execution
and authentication thereof.
(b) If the Subordinated Securities of any series shall bear interest, each
Subordinated Security of such series shall bear interest from the applicable
date at the rate per annum specified in the Officer's Certificate or
Supplemental Subordinated Indenture with respect to such series of Subordinated
Securities. Unless otherwise specified in the Officer's Certificate or
Supplemental Subordinated Indenture with respect to the Subordinated Securities
of any series, interest on the Subordinated Securities of such series shall be
computed on the basis of a 360-day year of
14
twelve 30-day months. Such interest shall be payable on the Interest Payment
Dates specified in the Officer's Certificate or Supplemental Subordinated
Indenture with respect to such series of Subordinated Securities. The Person in
whose name any Subordinated Security (or one or more Predecessor Subordinated
Securities) is registered at the close of business on the applicable Record Date
for the series of which such Subordinated Security is a part shall be entitled
to receive the interest payable thereon on such Interest Payment Date
notwithstanding the cancellation of such Subordinated Security upon any transfer
or exchange thereof subsequent to such Record Date and prior to such Interest
Payment Date unless such Subordinated Security shall have been called for
redemption on a Redemption Date which is subsequent to such Record Date and
prior to such Interest Payment Date or unless the Company shall default in the
payment of interest due on such Interest Payment Date on any Subordinated
Security of such series.
Any interest on any Subordinated Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
registered Holder on the relevant Record Date solely by virtue of such Holder
having been such Holder; and such Defaulted Interest may be paid by the Company,
at its election in each case, as provided in clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest on the
Subordinated Securities of any series to the Persons in whose names such
Subordinated Securities (or their respective Predecessor Subordinated
Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Subordinated Security and the
date of the proposed payment (which date shall be such as will enable the
Trustee to comply with the next sentence hereof), 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 subsection
provided. Thereupon the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 nor less than 10 days
prior to the date of the proposed payment and not less than 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 Holder of a Subordinated Security of such
series at such Holder's address as it appears in the Register not less than 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 mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
the Subordinated Securities of such series are registered on such Special Record
Date and shall no longer be payable pursuant to the following subsection (2).
(2) The Company may make payment of any Defaulted Interest on the
Subordinated Securities of any series in any other lawful manner not
inconsistent with the requirements of any securities exchange on which such
Subordinated Securities may be listed and upon such notice as may be required by
such exchange, if, after notice given by the Company to the Trustee of the
15
proposed payment pursuant to this subsection, such payment shall be deemed
practicable by the Trustee.
Interest on Subordinated Securities of any series that bear interest may be
paid by mailing a check to the address of the person entitled thereto as such
address shall appear in the Register.
Subject to the foregoing provisions of this Section 2.07, each Subordinated
Security delivered under this Subordinated Indenture upon transfer of or in
exchange for or in lieu of any other Subordinated Security shall carry all the
rights to interest accrued and unpaid, and to accrue, which were carried by such
other Subordinated Security and each such Subordinated Security shall bear
interest from such date, such that neither gain nor loss in interest shall
result from such transfer, exchange or substitution.
SECTION 2.08. Registration, Transfer and Exchange of Subordinated
Securities. Except as specifically otherwise provided herein with respect to
Registered Global Subordinated Securities, Subordinated Securities of any series
may be exchanged for a like aggregate principal amount of Subordinated
Securities of the same series of other authorized denominations. Subordinated
Securities to be exchanged shall be surrendered at the offices or agencies to be
maintained in accordance with the provisions of Section 4.03 and the Company
shall execute the Subordinated Security or Subordinated Securities, and the
Trustee shall authenticate and deliver in exchange therefor the Subordinated
Security or Subordinated Securities which the Subordinated Securityholder making
the exchange shall be entitled to receive.
The Company shall cause the Trustee to keep or cause to be kept, at one or
more of the offices or agencies to be maintained by the Trustee in accordance
with the provisions of Section 4.04 with respect to the Subordinated Securities
of each series, the Register in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of the
Registered Subordinated Securities of such series and the transfer of Registered
Subordinated Securities of such series as in this Article provided. The 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 the Register
shall be open for inspection by the Trustee and any registrar of the
Subordinated Securities of such series other than the Trustee. Upon due
presentment for transfer of any Subordinated Security of any series at the
offices or agencies of the Company to be maintained in accordance with Section
4.03 with respect to the Registered Subordinated Securities of such series, the
Company shall execute a new Subordinated Security and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new
Subordinated Security or Registered Subordinated Securities of the same series
for a like aggregate principal amount of authorized denominations.
Notwithstanding any other provisions of this Section 2.08, unless and until it
is exchanged in whole or in part for Registered Subordinated Securities in
definitive form, a Global Subordinated Security representing all or a portion of
the Registered Subordinated Securities of a series may not be transferred except
as a whole by the Depository for such series to a nominee of such Depository or
by a nominee of such Depository to such Depository or another nominee of such
Depository or by such Depository or any such nominee to a successor Depository
for such series or a nominee of such successor Depository.
16
Unregistered Subordinated Securities (except for any temporary global
Unregistered Subordinated Securities) and Coupons (except for Coupons attached
to any temporary global Unregistered Subordinated Securities) shall be
transferable by delivery.
At the option of the Holder thereof, Registered Subordinated Securities of
any series (other than a Registered Global Subordinated Security, except as set
forth below) may be exchanged for a Registered Subordinated Security or
Registered Subordinated Securities of such series and tenor having authorized
denominations and an equal aggregate principal amount, upon surrender of such
Registered Subordinated Securities to be exchanged at the agency of the Company
that shall be maintained for such purpose in accordance with Section 4.03 and
upon payment, if the Company shall so require, of the charges hereinafter
provided. If the Subordinated Securities of any series are issued in both
registered and unregistered form, except as otherwise established pursuant to
Section 2.03, at the option of the Holder thereof, Unregistered Subordinated
Securities of any series may be exchanged for Registered Subordinated Securities
of such series and tenor having authorized denominations and an equal aggregate
principal amount, upon surrender of such Unregistered Subordinated Securities to
be exchanged at the agency of the Company that shall be maintained for such
purpose in accordance with Section 4.03, with, in the case of Unregistered
Subordinated Securities that have Coupons attached, all unmatured Coupons and
all matured Coupons in default thereto appertaining, and upon payment, if the
Company shall so require, of the charges hereinafter provided. At the option of
the Holder thereof, if Unregistered Subordinated Securities of any series,
maturity date, interest rate and original issue date are issued in more than one
authorized denomination, except as otherwise established pursuant to Section
2.03, such Unregistered Subordinated Securities may be exchanged for
Unregistered Subordinated Securities of such series and tenor having authorized
denominations and an equal aggregate principal amount, upon surrender of such
Unregistered Subordinated Securities to be exchanged at the agency of the
Company that shall be maintained for such purpose in accordance with Section
4.03, with, in the case of Unregistered Subordinated Securities that have
Coupons attached, all unmatured Coupons and all matured Coupons in default
thereto appertaining, and upon payment, if the Company shall so require, of the
charges hereinafter provided. Registered Subordinated Securities of any series
may not be exchanged for Unregistered Subordinated Securities of such series
unless (1) otherwise specified pursuant to Section 2.03 and (2) the Company has
delivered to the Trustee an Opinion of Counsel that (x) the Company has received
from the IRS a ruling or (y) since the date hereof, there has been a change in
the applicable United States federal income tax law, in either case to the
effect that the inclusion of terms permitting Registered Subordinated Securities
to be exchanged for Unregistered Subordinated Securities would result in no
United States federal income tax effect adverse to the Company or to any Holder.
Whenever any Subordinated Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the
Subordinated Securities which the Holder making the exchange is entitled to
receive. All Subordinated Securities and Coupons, if any, surrendered upon any
exchange or transfer provided for in this Subordinated Indenture shall be
promptly cancelled and disposed of by the Trustee, and the Trustee shall deliver
a certificate of disposition thereof to the Company.
All Registered Subordinated Securities of any series presented or
surrendered for exchange, transfer, redemption, conversion or payment shall, if
so required by the Company or any registrar of the Subordinated Securities of
such series, be accompanied by a written
17
instrument or instruments of transfer, in form satisfactory to the Company and
such registrar, duly executed by the registered Holder or by such Person's
attorney duly authorized in writing.
No service charge shall be made for any exchange or registration of
transfer of Subordinated Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto.
The Company shall not be required to exchange or transfer (a) any
Subordinated Securities of any series during a period beginning at the opening
of business 15 days before the day of the first publication or the mailing (if
there is no publication) of a notice of redemption of Subordinated Securities of
such series and ending at the close of business on the day of such publication
or mailing or (b) any Subordinated Securities called or selected for redemption
in whole or in part, except, in the case of Subordinated Securities called for
redemption in part, the portion thereof not so called for redemption in whole or
in part or during a period beginning at the opening of business on any Record
Date for such series and ending at the close of business on the relevant
Interest Payment Date therefor.
SECTION 2.09. Mutilated, Defaced, Destroyed, Lost and Stolen Subordinated
Securities. In case any temporary or definitive Subordinated Security or any
Coupon appertaining to any Subordinated Security shall be mutilated, defaced,
destroyed, lost or stolen, the Company in its discretion may execute and, upon
the written request of any officer of the Company, the Trustee shall
authenticate and delivery, a new Subordinated Security of the same series,
maturity date, interest rate and original issue date, bearing a number or other
distinguishing symbol not contemporaneously outstanding, in exchange and
substitution for the mutilated or defaced Subordinated Security, or in lieu of
and in substitution for the Subordinated Security so destroyed, lost or stolen
with Coupons corresponding to the Coupons appertaining to the Subordinated
Securities so mutilated, defaced, destroyed, lost or stolen, or in exchange or
substitution for the Subordinated Security to which such mutilated, defaced,
destroyed, lost or stolen Coupon appertained, with Coupons appertaining thereto
corresponding to the Coupons so mutilated, defaced, destroyed, lost or stolen.
In every case the applicant for a substitute Subordinated Security or Coupon
shall furnish to the Company and to the Trustee and any agent of the Company or
the Trustee such security or indemnity as may be required by them to indemnify
and defend and to save each of them harmless and, in every case of destruction,
loss or theft, evidence to their satisfaction of the destruction, loss or theft
of such Subordinated Security or Coupon and of the ownership thereof, and in the
case of mutilation or defacement shall surrender the Subordinated Security and
related Coupons to the Trustee or such agent.
Upon the issuance of any substitute Subordinated Security or Coupon, 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 (including the fees and expenses of the Trustee) or its agent connected
therewith. In case any Subordinated Security or Coupon which has matured or is
about to mature or has been called for redemption in full shall become mutilated
or defaced or be destroyed, lost or stolen, the Company may instead of issuing a
substitute Subordinated Security, pay or authorize the payment of the same or
the relevant Coupon (without surrender thereof except in the case of a mutilated
or defaced Subordinated Security or Coupon), if the applicant for such payment
shall furnish to the Company and to the Trustee and any agent of the Company or
the Trustee such security or indemnity as any of them
18
may require to save each of them harmless, and, in every case of destruction,
loss or theft, the applicant shall also furnish to the Company and to the
Trustee and any agent of the Company or the Trustee evidence to their
satisfaction of the destruction, loss or theft of such Subordinated Security or
Coupons and of the ownership thereof.
Every substitute Subordinated Security or Coupon of any series issued
pursuant to the provisions of this Section by virtue of the fact that any such
Subordinated Security or Coupon is destroyed, lost or stolen shall constitute an
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Subordinated Security or Coupon shall be at any time enforceable
by anyone and shall be entitled to all the benefits of (but shall be subject to
all the limitations of rights set forth in) this Subordinated Indenture equally
and proportionately with any and all other Subordinated Securities or Coupons of
such series duly authenticated and delivered hereunder. All Subordinated
Securities and Coupons shall be held and owned upon the express condition that,
to the extent permitted by law, the foregoing provisions are exclusive with
respect to the replacement or payment of mutilated, defaced or destroyed, lost
or stolen Subordinated Securities and Coupons and shall preclude any and all
other rights or remedies notwithstanding any law or statue existing or hereafter
enacted to the contrary with respect to the replacement or payment of negotiable
instruments or other securities without their surrender.
SECTION 2.10. Cancellation and Destruction of Surrendered Subordinated
Securities. All Subordinated Securities and Coupons surrendered for payment,
redemption, transfer, conversion or exchange, or for credit against any payment
in respect of a sinking or analogous fund, if any, shall, if surrendered to the
Company, the Trustee or any agent of the Company or of the Trustee, be delivered
to the Trustee, and the same, together with Subordinated Securities surrendered
to the Trustee for cancellation, shall be canceled by it and thereafter disposed
of by it as directed by the Company, and no Subordinated Securities or Coupons
shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Subordinated Indenture. The Trustee shall destroy canceled
Subordinated Securities and Coupons and deliver a certificate of destruction
thereof to the Company unless by an Officer's Certificate of the Company, the
Company shall direct that canceled Subordinated Securities be returned to it. If
the Company shall purchase or otherwise acquire any of the Subordinated
Securities and Coupons, however, such purchase or acquisition shall not operate
as a payment, redemption or satisfaction of the indebtedness represented by such
Subordinated Securities or Coupons unless and until the Company, at its option
shall deliver or surrender the same to the Trustee for cancellation.
SECTION 2.11. Temporary Subordinated Securities. Pending the preparation of
definitive Subordinated Securities of any series, the Company may execute and
the Trustee shall authenticate and deliver temporary Subordinated Securities of
such series which are printed, lithographed, typewritten or otherwise produced,
in each case satisfactory to the Trustee. Temporary Subordinated Securities of
any series shall be issuable as Registered Subordinated Securities without
coupons, or as Unregistered Subordinated Securities with or without coupons
attached thereto of any authorized denomination, and substantially in the form
of the definitive Subordinated Securities of such series but with such
appropriate omissions, insertions, substitutions and other variations as the
officers executing such Subordinated Securities may determine, as evidenced by
their execution of such Subordinated Securities. Every such temporary
Subordinated Security shall be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with the same effect, as
the definitive Subordinated
19
Securities. If temporary Subordinated Securities are issued, the Company will
cause definitive Subordinated Securities to be prepared without unreasonable
delay. After the preparation of definitive Subordinated Securities, the
temporary Subordinated Securities of such series shall be exchangeable for
definitive Subordinated Securities upon surrender of the temporary Subordinated
Securities without charge to the Holder at the offices or agencies to be
maintained by the Trustee as provided in Section 4.03 with respect to the
Subordinated Securities of such series and in the case of Unregistered
Subordinated Securities, at any agency maintained by the Company for such
purpose as specified pursuant to Section 2.03. Upon surrender for cancellation
of any one or more temporary Subordinated Securities the Company shall execute
and the Trustee shall authenticate and deliver in exchange for such temporary
Subordinated Securities an equal aggregate principal amount of definitive
Subordinated Securities of such series and in the case of Unregistered
Subordinated Securities, having attached thereto any appropriate Coupons. Until
so exchanged, the temporary Subordinated Securities of any series shall in all
respects be entitled to the benefits of this Subordinated Indenture and interest
thereon, when and as payable, shall be paid to the registered owners thereof.
The provisions of this Section are subject to any restrictions or limitations on
the issue and delivery of temporary Unregistered Subordinated Securities of any
series that may be established pursuant to Section 2.03 (including any provision
that Unregistered Subordinated Securities of such series initially be issued in
the form of a single global Unregistered Subordinated Security to be delivered
to a depositary or agency located outside the United States and the procedures
pursuant to which definitive or global Unregistered Subordinated Securities of
such series would be issued in exchange for such temporary global Unregistered
Subordinated Security).
SECTION 2.12. Subordinated Securities in Global Form; Depositories. (a)
Each Registered Global Subordinated Security shall: (i) represent and be
denominated in an aggregate amount equal to the aggregate principal amount of
the Subordinated Securities of the series to be represented by such Registered
Global Subordinated Security, (ii) be registered in the name of either the
Depository for such Registered Global Subordinated Security or the nominee of
such Depository, (iii) be delivered by the Trustee to such Depository or
pursuant to such Depository's written instruction and (iv) bear a legend
substantially to the following effect: "Unless and until it is exchanged in
whole or in part for Subordinated Securities in definitive form, this Registered
Global Subordinated Security may not be transferred except as a whole by the
Depository to a nominee of the Depository or by a nominee of the Depository to
the Depository or another nominee of the Depository or by the Depository or any
nominee to a successor Depository or a nominee of any successor Depository." The
notation of the record owner's interest in such Registered Global Subordinated
Security upon the original issuance thereof shall be deemed to be delivery in
connection with the original issuance of each beneficial owner's interest in
such Registered Global Subordinated Security. Without limiting the foregoing,
the Company and the Trustee shall have no responsibility, obligation or
liability with respect to: (x) the maintenance, review or accuracy of the
records of the Depository or of any of its participating organizations with
respect to any ownership interest in or payments with respect to such Registered
Global Subordinated Security, (y) any communication with or delivery of any
notice (including notices of redemption) with respect to the series of
Subordinated Securities represented by the Registered Global Subordinated
Security to any Person having any ownership interest in such Registered Global
Subordinated Security or to any of the Depository's participating organizations
or (z) any payment made on account of any beneficial ownership interest in such
Registered Global Subordinated Security.
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(b) If any Subordinated Security of a series is issuable in the form of a
Registered Global Subordinated Security or Subordinated Securities, each such
Registered Global Subordinated Security may provide that it shall represent the
aggregate amount of Outstanding Subordinated Securities of such series from time
to time endorsed thereon and may also provide that the aggregate amount of
Outstanding Subordinated Securities of such series represented thereby may from
time to time be reduced to reflect exchanges. Any endorsement of a Registered
Global Subordinated Security to reflect the amount of Outstanding Subordinated
Securities of a series represented thereby shall be made by the Trustee and in
such manner as shall be specified on such Registered Global Subordinated
Security. Any instructions by the Company with respect to a Registered Global
Subordinated Security, after its initial issuance, shall be in writing but need
not comply with Section 13.03 of this Subordinated Indenture.
(c) Each Depository designated pursuant to the provisions of Section 2.03
of this Subordinated Indenture for a Registered Global Subordinated Security
must, at the time of its designation and at all times while it serves as a
depositary, be a clearing agency registered under the Exchange Act, and any
other applicable statute or regulation. If at any time the Depository for the
Subordinated Securities of a series notifies the Company that it is unwilling or
unable to continue as Depository for the Subordinated Securities of such series
or if at any time the Depository for the Subordinated Securities of such series
shall no longer be eligible under this Section 2.12, the Company shall appoint a
successor Depository with respect to the Subordinated Securities of such series.
If a successor Depository for the Subordinated Securities of such series is not
appointed by the Company within 90 days after the Company receives such notice
or learns of such ineligibility, the Company shall execute and the Company shall
direct the Trustee to authenticate and deliver definitive Subordinated
Securities of such series in authorized denominations in exchange for the
Registered Global Subordinated Security or Subordinated Securities. Upon receipt
of such direction, the Trustee shall thereupon authenticate and deliver the
definitive Subordinated Securities of such series in the same aggregate
principal amount as the Registered Global Subordinated Security or Subordinated
Securities representing such series in exchange for such Registered Global
Subordinated Security or Subordinated Securities, in accordance with the
provisions of subsection (e) of this Section 2.12, without any further corporate
action by the Company.
(d) The Company may at any time and in its sole discretion determine that
the Registered Subordinated Securities of any series issued in the form of one
or more Registered Global Subordinated Securities shall no longer be represented
by such Registered Global Subordinated Security or Subordinated Securities. In
such event, the Company will execute and upon receipt of a written order from
the Company, the Trustee shall thereupon authenticate and deliver Subordinated
Securities of such series in definitive form and in authorized denominations in
an aggregate principal amount equal to the principal amount of the Registered
Global Subordinated Security or Subordinated Securities representing such series
in exchange for such Registered Global Subordinated Security or Subordinated
Securities, in accordance with the provisions of subsection (e) of this Section
2.12 without any further corporate action by the Company.
(e) Upon any exchange hereunder of the Registered Global Subordinated
Security or Subordinated Securities for Subordinated Securities in definitive
form, such Registered Global Subordinated Security or Subordinated Securities
shall be canceled by the Trustee. Registered
21
Subordinated Securities issued hereunder in exchange for the Registered Global
Subordinated Security or Subordinated Securities shall be registered in such
names and in such authorized denominations as the Depository for such Registered
Global Subordinated Security, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such definitive Subordinated Securities in exchange for the
Registered Global Subordinated Security or Subordinated Securities to the
persons in whose name such definitive Subordinated Securities have been
registered in accordance with the directions of the Depository.
(f) Any time the Registered Subordinated Securities of any series are not
in the form of Registered Global Subordinated Securities pursuant to the
preceding two paragraphs, the Company agrees to supply the Trustee with a
reasonable supply of certified Registered Subordinated Securities without the
legend required by this Section 2.12 and the Trustee agrees to hold such
Registered Subordinated Securities in safekeeping until authenticated and
delivered pursuant to the terms of this Subordinated Indenture.
If established by the Company pursuant to Section 2.03 with respect to any
Registered Global Subordinated Security, the Depositary for such Registered
Global Subordinated Security may surrender such Registered Global Subordinated
Security in exchange in whole or in part for Subordinated Securities of the same
series and tenor in definitive registered form on such terms as are acceptable
to the Company and such Depositary. Thereupon, the Company shall execute, and
the Trustee shall authenticate and deliver, without service charge,
(i) to the Person specified by such Depositary new Registered
Subordinated Securities of the same series and tenor, of any authorized
denominations as requested by such Person, in an aggregate principal amount
equal to and in exchange for such Person's beneficial interest in the
Registered Global Subordinated Security; and
(ii) to such Depositary a new Registered Global Subordinated Security
in a denomination equal to the difference, if any, between the principal
amount of the surrendered Registered Global Subordinated Security and the
aggregate principal amount of Registered Subordinated Securities
authenticated and delivered pursuant to clause (i) above.
Registered Subordinated Securities issued in exchange for a Registered
Global Subordinated Security pursuant to this Section 2.12 shall be registered
in such names and in such authorized denominations as the Depositary for such
Registered Global Subordinated Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee or an
agent of the Company or the Trustee. The Trustee or such agent shall deliver
such Subordinated Securities to or as directed by the Persons in whose names
such Subordinated Securities are so registered.
All Subordinated Securities issued upon any transfer or exchange of
Subordinated Securities shall be valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as the
Subordinated Securities surrendered upon such transfer or exchange.
22
Notwithstanding anything herein or in the forms or terms of any
Subordinated Securities to the contrary, none of the Company, the Trustee or any
agent of the Company or the Trustee shall be required to exchange any
Unregistered Subordinated Security for a Registered Subordinated Security if
such exchange would result in adverse Federal income tax consequences to the
Company (such as, for example, the inability of the Company to deduct from its
income, as computed for Federal income tax purposes, the interest payable on the
Unregistered Subordinated Securities) under then applicable United States
Federal income tax laws. The Trustee and any such agent shall be entitled to
rely on an Officers' Certificate or an Opinion of Counsel in determining such
result.
SECTION 2.13. CUSIP Numbers. The Company in issuing the Subordinated
Securities may use "CUSIP" and "CINS" numbers (if then generally in use), and
the Trustee shall use CUSIP numbers or CINS numbers, as the case may be, in
notices of redemption or exchange as a convenience to Holders and no
representation shall be made as to the correctness of such numbers either as
printed on the Subordinated Securities or as contained in any notice of
redemption or exchange.
SECTION 2.14. Series May Include Tranches. A series of Subordinated
Securities may include one or more tranches (each a "tranche") of Subordinated
Securities, including Subordinated Securities issued in a Periodic Offering. The
Subordinated Securities of different tranches may have one or more different
terms, including authentication dates and public offering prices, but all the
Subordinated Securities within each such tranche shall have identical terms,
including authentication date and public offering price. Notwithstanding any
other provisions of this Subordinated Indenture, with respect to Sections 2.05
through 2.12, 3.01 through 3.06, 4.03, 6.01 through 6.12, 10.02 and 11.01
through 11.05, if any series of Subordinated Securities includes more than one
tranche, all provisions of such sections applicable to any series of
Subordinated Securities shall be deemed equally applicable to each tranche of
any series of Subordinated Securities in the same manner as though originally
designated a series unless otherwise provided with respect to such series or
tranche pursuant to Section 2.03. In particular, and without limiting the scope
of the next preceding sentence, any of the provisions of such sections which
provide for or permit action to be taken with respect to a series of
Subordinated Securities shall also be deemed to provide for and permit such
action to be taken instead only with respect to Subordinated Securities of one
or more tranches within that series (and such provisions shall be deemed
satisfied thereby), even if no comparable action is taken with respect to
Subordinated Securities in the remaining tranches of that series.
ARTICLE THREE
REDEMPTION OF SUBORDINATED SECURITIES AND SINKING FUNDS
SECTION 3.01. Applicability of Article. The provisions of this Article
shall be applicable to the Subordinated Securities of any series which are
redeemable before their Stated Maturity or to any sinking fund for the
retirement of Subordinated Securities of a series except as otherwise specified
as contemplated by Section 2.03 for Subordinated Securities of such series.
SECTION 3.02. Notice of Redemption; Partial Redemptions. Notice of
redemption to the Holders of Registered Subordinated Securities of any series to
be redeemed as a whole or in
23
part at the option of the Company shall be given by mailing notice of such
redemption by first class mail, postage prepaid, at least 30 days and not more
than 60 days prior to the date fixed for redemption to such Holders of
Subordinated Securities of such series at their last addresses as they shall
appear upon the Register. Notice of redemption to the Holders of Unregistered
Subordinated Securities to be redeemed as a whole or in part, who have filed
their names and addresses with the Trustee pursuant to Section 313(c)(2) of the
Trust Indenture Act shall be given by mailing notice of such redemption, by
first class mail, postage prepaid, at least 30 days and not more than 60 prior
to the date fixed for redemption, to such Holders at such addresses as were so
furnished to the Trustee (and, in the case of any such notice given by the
Company, the Trustee shall make such information available to the Company for
such purpose). Notice of redemption to all other Holders of Unregistered
Subordinated Securities shall be published in an Authorized Newspaper in the
Borough of Manhattan, The City of New York and in an Authorized Newspaper in
London (and, if required by Section 4.09, in an Authorized Newspaper in
Luxembourg), in each case, once in each of three successive calendar weeks, the
first publication to be not less than 30 nor more than 60 days prior to the date
fixed for redemption. Any notice which is mailed in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the
Holder receives the notice. Failure to give notice by mail, or any defect in the
notice to the Holder of any Subordinated Security of a series designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of such Subordinated Security of such series.
The notice of redemption to each such Holder shall specify the principal
amount of each Subordinated Security of such series held by such Holder to be
redeemed, the date fixed for redemption, the redemption price, the place or
places of payment, that payment will be made upon presentation and surrender of
such Subordinated Securities and, in the case of Subordinated Securities with
Coupons attached thereto, of all Coupons appertaining thereto maturing after the
date fixed for redemption, that such redemption is pursuant to the mandatory or
optional sinking fund, or both, if such be the case, that interest accrued to
the date fixed for redemption will be paid as specified in such notice and that
on and after said date interest thereon or on the portions thereof to be
redeemed will cease to accrue. In case any Subordinated Security of a series 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 Subordinated Security, a
new Subordinated Security or Subordinated Securities of such series in principal
amount equal to the unredeemed portion thereof will be issued.
The notice of redemption of Subordinated Securities of any series to be
redeemed at the option of the Company shall be given by the Company or, at the
Company's request, by the Trustee in the name and at the expense of the Company.
On or before the redemption date specified in the notice of redemption
given as provided in this Section, 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 holder in trust as provided in Section 4.05) an
amount of money sufficient to redeem on the redemption date all the Subordinated
Securities of such series so called for redemption at the appropriate redemption
price, together with accrued interest to the date fixed for redemption. The
Company will deliver to the Trustee at least 70 days prior to the date fixed for
redemption, or such shorter period as shall be acceptable to the Trustee, an
Officer's Certificate stating the aggregate principal amount
24
of Subordinated Securities to be redeemed. In case of a redemption at the
election of the Company prior to the expiration of any restriction on such
redemption, the Company shall deliver to the Trustee, prior to the giving of any
notice of redemption to Holders pursuant to this Section, an Officer's
Certificate stating that such restriction has been complied with.
If less than all the Subordinated Securities of a series are to be
redeemed, the Trustee shall select, in such manner as it shall deem appropriate
and fair, in its sole discretion, Subordinated Securities of such series to be
redeemed in whole or in part. Subordinated Securities may be redeemed in part in
multiples equal to the minimum authorized denomination for Subordinated
Securities of such series or any multiple thereof. The Trustee shall promptly
notify the Company in writing of the Subordinated Securities of such series
selected for redemption and, in the case of any Subordinated Securities of such
series selected for partial redemption, the principal amount thereof to be
redeemed. For all purposes of this Subordinated Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Subordinated
Securities of any series shall relate, in the case of any Subordinated Security
redeemed or to be redeemed only in part, to the portion of the principal amount
of such Subordinated Security which has been or is to be redeemed.
SECTION 3.03. Payment of Subordinated Securities Called for Redemption. If
notice of redemption has been given as above provided, the Subordinated
Securities or portions of Subordinated Securities specified in such notice shall
become due and payable on the date and at the place stated in such notice at the
applicable redemption price, together with interest accrued to the date fixed
for redemption, and on and after said date (unless the Company shall default in
the payment of such Subordinated Securities at the redemption price, together
with interest accrued to said date) interest on the Subordinated Securities or
portions of Subordinated Securities so called for redemption shall cease to
accrue, and the unmatured Coupons, if any, appertaining thereto shall be void,
and, except as provided in Sections 7.05 and 11.04, such Subordinated Securities
shall cease from and after the date fixed for redemption to be entitled to any
benefit or security under this Subordinated Indenture, and the Holders thereof
shall have no right in respect of such Subordinated Securities except the right
to receive the redemption price thereof and unpaid interest to the date fixed
for redemption. On presentation and surrender of such Subordinated Securities at
a place of payment specified in said notice, together with all Coupons, if any,
appertaining thereto maturing after the date fixed for redemption, said
Subordinated Securities or the specified portions thereof shall be paid and
redeemed by the Company at the applicable redemption price, together with
interest accrued thereon to the date fixed for redemption; provided, that
payment of interest becoming due on or prior to the date fixed for redemption
shall be payable in the case of Subordinated Securities with Coupons attached
thereto, to the Holders of the Coupons for such interest upon surrender thereof,
and in the case of Registered Subordinated Securities, to the Holder of such
Registered Subordinated Securities registered as such on the relevant record
date, subject to the terms and provisions of Section 2.03 and 2.07 hereof.
If any Subordinated Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the date fixed for redemption at the rate of
interest or Yield to Maturity (in the case of an Original Issue Discount
Subordinated Security) borne by such Subordinated Security.
25
If any Subordinated Security with Coupons attached thereto is surrendered
for redemption and is not accompanied by all appurtenant Coupons maturing after
the date fixed for redemption, the surrender of such missing Coupon or Coupons
may be waived by the Company and the Trustee, if there be furnished to each of
them such security or indemnity as they may require to save each of them
harmless.
Upon presentation of any Subordinated Security redeemed in part only, the
Company shall execute and the Trustee shall authenticate and deliver to or on
the order of the Holder thereof, at the expense of the Company, a new
Subordinated Security or Subordinated Securities of such series, of authorized
denominations, in principal amount equal to the unredeemed portion of the
Subordinated Security so presented.
SECTION 3.04. Exclusion of Certain Subordinated Securities From Eligibility
for Selection for Redemption. Subordinated Securities shall be excluded from
eligibility for selection for redemption if they are identified by registration
and certificate number in an Officer's Certificate delivered to the Trustee at
least 40 days prior to the last date on which notice of redemption may be given
as being owned of record and beneficially by, and not pledged or hypothecated
by, either (a) the Company or (b) an entity specifically identified in such
written statement as directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company.
SECTION 3.05. Mandatory and Optional Sinking Funds. The minimum amount of
any sinking fund payment provided for by the terms of the Subordinated
Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of the Subordinated Securities of any series herein referred to as an
"optional sinking fund payment." The date on which a sinking fund payment is to
be made is herein referred to as the "sinking fund payment date."
In lieu of making all or any part of any mandatory sinking fund payment
with respect to any series of Subordinated Securities in cash, the Company may
at its option (a) deliver to the Trustee Subordinated Securities of such series
theretofore purchased or otherwise acquired (except upon redemption pursuant to
the mandatory sinking fund) by the Company or receive credit for Subordinated
Securities of such series (not previously so credited) theretofore purchased or
otherwise acquired (except as aforesaid) by the Company and delivered to the
Trustee for cancellation pursuant to Section 2.10, (b) receive credit for
optional sinking fund payments (not previously so credited) made pursuant to
this Section, or (c) receive credit for Subordinated Securities of such series
(not previously so credited) redeemed by the Company through any optional
redemption provision contained in the terms of such series. Subordinated
Securities so delivered or credited shall be received or credited by the Trustee
at the sinking fund redemption price specified in such Subordinated Securities.
On or before the 60th day next preceding each sinking fund payment date for
any series, the Company will deliver to the Trustee an Officer's Certificate
(which need not contain the statements required by Section 13.03) (a) specifying
the portion of the mandatory sinking fund payment to be satisfied by payment of
cash and the portion to be satisfied by credit of Subordinated Securities of
such series and the basis for such credit, (b) stating that none of the
Subordinated Securities of such series has theretofore been so credited, (c)
stating that no
26
defaults in the payment of interest or Events of Default with respect to such
series have occurred (which have not been waived or cured) and are continuing
and (d) stating whether or not the Company intends to exercise its right to make
an optional sinking fund payment with respect to such series and, if so,
specifying the amount of such optional sinking fund payment which the Company
intends to pay on or before the next succeeding sinking fund payment date. Any
Subordinated Securities of such series to be credited and required to be
delivered to the Trustee in order for the Company to be entitled to credit
therefor as aforesaid which have not theretofore been delivered to the Trustee
shall be delivered for cancellation pursuant to Section 2.10 to the Trustee with
such Officer's Certificate (or reasonably promptly thereafter if acceptable to
the Trustee). Such Officer's Certificate shall be irrevocable and upon its
receipt by the Trustee the Company shall become unconditionally obligated to
make all the cash payments or payments therein referred to, if any, on or before
the next succeeding sinking fund payment date. Failure of the Company, on or
before any such 60th day, to deliver such Officer's Certificate and Subordinated
Securities specified in this paragraph, if any, shall not constitute a default
but shall constitute, on and as of such date, the irrevocable election of the
Company (i) that the mandatory sinking fund payment for such series due on the
next succeeding sinking fund payment date shall be paid entirely in cash without
the option to deliver or credit Subordinated Securities of such series in
respect thereof and (ii) that the Company will make no optional sinking fund
payment with respect to such series as provided in this Section.
If the sinking fund payment or payments (mandatory or optional or both) to
be made in cash on the next succeeding sinking fund payment date plus any unused
balance of any preceding sinking fund payments made in cash shall exceed $50,000
(or the equivalent thereof in any Foreign Currency or ECU) or a lesser sum in
United States Dollars (or the equivalent thereof in any Foreign Currency or ECU)
if the Company shall so request with respect to the Subordinated Securities of
any particular series, such cash shall be applied on the next succeeding sinking
fund payment date to the redemption of Subordinated Securities of such series at
the sinking fund redemption price together with accrued interest to the date
fixed for redemption. If such amount shall be $50,000 (or the equivalent thereof
in any Foreign Currency or ECU) or less and the Company makes no such request
then it shall be carried over until a sum in excess of $50,000 (or the
equivalent thereof in any Foreign Currency or ECU) is available. The Trustee
shall select, in the manner provided in Section 3.02, for redemption on such
sinking fund payment date a sufficient principal amount of Subordinated
Securities of such series to absorb said cash, as nearly as may be, and shall
(if requested in writing by the Company) inform the Company of the serial
numbers of the Subordinated Securities of such series (or portions thereof) so
selected. Subordinated Securities shall be excluded from eligibility for
redemption under this Section if they are identified by registration and
certificate number in an Officer's Certificate delivered to the Trustee at least
60 days prior to the sinking fund payment date as being owned of record and
beneficially by, and not pledged or hypothecated by, either (a) the Company or
(b) an entity specifically identified in such Officer's Certificate as directly
or indirectly controlling or controlled by or under direct or indirect common
control with the Company. The Trustee, in the name and at the expense of the
Company (or the Company, if it shall so request the Trustee in writing) shall
cause notice of redemption of the Subordinated Securities of such series to be
given in substantially the manner provided in Section 3.02 (and with the effect
provided in Section 3.03) for the redemption of Subordinated Securities of such
series in part at the option of the Company. The amount of any sinking fund
payments not so applied or allocated to the redemption of Subordinated
Securities of such series shall be added to
27
the next cash sinking fund payment for such series and, together with such
payment, shall be applied in accordance with the provisions of this Section. Any
and all sinking fund moneys held on the Stated Maturity date of the Subordinated
Securities of any particular series (or earlier, if such maturity is
accelerated), which are not held for the payment or redemption of particular
Subordinated Securities of such series shall be applied, together with other
moneys, if necessary, sufficient for the purpose, to the payment of the
principal of, and interest on, the Subordinated Securities of such series at its
Stated Maturity.
On or before each sinking fund payment date, the Company shall pay to the
Trustee in cash or shall otherwise provide for the payment of all interest
accrued to the date fixed for redemption on Subordinated Securities to be
redeemed on the next following sinking fund payment date.
The Trustee shall not redeem or cause to be redeemed any Subordinated
Securities of a series with sinking fund moneys or give any notice of redemption
of Subordinated Securities for such series by operation of the sinking fund
during the continuance of a default in payment of interest on such Subordinated
Securities or of any Event of Default except that, where the giving of notice of
redemption of any Subordinated Securities shall theretofore have been made, the
Trustee shall redeem or cause to be redeemed such Subordinated Securities,
provided that it shall have received from the Company a sum sufficient for such
redemption. Except as aforesaid, any moneys in the sinking fund for such series
at the time when any such default or Event of Default shall occur, and any
moneys thereafter paid into the sinking fund, shall, during the continuance of
such default or Event of Default be deemed to have been collected under Article
5 and held for the payment of all such Subordinated Securities. In case such
Event of Default shall have been waived as provided in Section 6.09 or the
default cured on or before the sixtieth day preceding the sinking fund payment
date in any year, such moneys shall thereafter be applied on the next succeeding
sinking fund payment date in accordance with this Section to the redemption of
such Subordinated Securities.
ARTICLE FOUR
PARTICULAR COVENANTS OF THE COMPANY
SECTION 4.01. Payment of Principal of and Interest on Subordinated
Securities. The Company covenants that it will duly and punctually pay or cause
to be paid the principal of and any interest and premium on each of the
Subordinated Securities in accordance with the terms of the Subordinated
Securities and in the Coupons, if any, appertaining thereto and this
Subordinated Indenture. Except with respect to any Registered Global
Subordinated Securities, if the Subordinated Securities of any series bear
interest, each installment of interest on the Subordinated Securities of such
series may, at the option of the Company, be paid by mailing a check or checks
for such interest payable to the Person entitled thereto pursuant to Section
2.07 to the address of such Person as it appears on the Register of such series
on the applicable Record Date for such interest payment. The interest on
Securities with Coupons attached (together with any additional amounts payable
pursuant to the terms of such Securities) shall be payable only upon
presentation and surrender of the several Coupons for such interest installments
as are evidenced thereby as they severally mature. If any temporary Unregistered
Security provides that interest thereon may be paid while such Security is in
temporary form, the
28
interest on any such temporary Unregistered Security (together with any
additional amounts payable pursuant to the terms of such Security) shall be
paid, as to the installments of interest evidenced by Coupons attached thereto,
if any, only upon presentation and surrender thereof, and, as to the other
installments of interest, if any, only upon presentation of such Securities for
notation thereon of the payment of such interest, in each case subject to any
restrictions that may be established pursuant to Section 2.03. The interest, if
any, on Registered Securities (together with any additional amounts payable
pursuant to the terms of such Securities) shall be payable only to or upon the
written order of the Holders thereof and, at the option of the Company, may be
paid by wire transfer or by mailing checks for such interest payable to or upon
the written order of such Holders at their last addresses as they appear on the
Register of the Company.
SECTION 4.02. Corporate Existence of the Company; Consolidation, Merger,
Sale or Transfer. The Company covenants that so long as any of the Subordinated
Securities are Outstanding, it will maintain its existence, will not dissolve,
sell or otherwise dispose of all or substantially all of its assets and will not
consolidate with or merge into another entity or permit one or more other
entities to consolidate with or merge into it; provided that the Company may,
without violating the covenants in this Section 4.02 contained, consolidate with
or merge into another entity or permit one or more other entities to consolidate
with or merge into it, or sell or otherwise transfer to another entity all or
substantially all of its assets as an entirety and thereafter dissolve, if the
surviving, resulting or transferee entity, as the case may be, (i) shall be
organized and existing under the laws of one of the States of the United States
of America, (ii) assumes, if such entity is not the Company, all of the
obligations of the Company hereunder and (iii) is not, after such transaction,
otherwise in default under any provisions hereof.
SECTION 4.03. Maintenance of Offices or Agencies for Transfer,
Registration, Exchange and Payment of Subordinated Securities. So long as any of
the Subordinated Securities shall remain Outstanding, the Company covenants that
it will cause the Trustee to maintain an office or agency in either The City of
New York, State of New York, or the City and County of Los Angeles, State of
California, where the Subordinated Securities may be presented for registration,
exchange and transfer as in this Subordinated Indenture provided, and where
notices and demands to or upon the Trustee in respect of the Subordinated
Securities or of this Subordinated Indenture may be served, and where the
Subordinated Securities may be presented for payment. In case the Trustee shall
fail to maintain any such office or agency, presentations and demands may be
made and notices may be served at the principal office of the Company.
The Company will maintain one or more agencies in a city or cities located
outside the United States (including any city in which such an agency is
required to be maintained under the rules of any stock exchange on which the
Securities of any series are listed) where the Unregistered Securities, if any,
of each series and Coupons, if any, appertaining thereto may be presented for
payment. No payment on any Unregistered Security or Coupon will be made upon
presentation of such Unregistered Security or Coupon at an agency of the Company
within the United States nor will any payment be made by transfer to an account
in, or by mail to an address in, the United States unless, pursuant to
applicable United States laws and regulations then in effect, such payment can
be made without adverse tax consequences to the Company. Notwithstanding the
foregoing, if full payment in United States Dollars at each agency maintained by
the Company outside the United States for payment on such Unregistered
29
Securities or Coupons appertaining thereto is illegal or effectively precluded
by exchange controls or other similar restrictions, payments in United States
Dollars of Unregistered Securities of any series and coupons appertaining
thereto which are payable in United States Dollars may be made at an agency of
the Company maintained in the City of New York.
The Company will maintain in the Borough of Manhattan, The City of New
York, an office or agency where notices and demands to or upon the Company in
respect of the Subordinated Securities of any series, the Coupons appertaining
thereto or this Subordinated 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 of location thereof. In case the Company
shall fail to maintain any agency required by this Section to be located in the
Borough of Manhattan, The City of New York or the City and County of Los
Angeles, or shall fail to give such notice of the location or for any change in
the location of any of the above agencies, presentations and demands may be made
and notices may be served at the Principal Office of the Trustee.
The Company may from time to time designate one or more additional offices
or agencies where the Subordinated Securities of a series and any Coupons
appertaining thereto may be presented for payment, where the Subordinated
Securities of that series may be presented for exchange as provided in this
Subordinated Indenture and pursuant to Section 2.04 and where the Registered
Subordinated Securities of that series may be presented for registration of
transfer as in this Subordinated Indenture provided, and the Company may from
time to time rescind any such designation, as the Company may deem desirable or
expedient; provided, that no such designation or rescission shall in any manner
relieve the Company of its obligations to maintain the agencies provided for in
this Section. The Company shall give to the Trustee prompt written notice of any
such designation or rescission thereof.
SECTION 4.04. Appointment to Fill a Vacancy in the Office of Trustee. The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
covenants that it will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall at all times be a Trustee with respect to the
Outstanding Subordinated Securities.
SECTION 4.05. Duties of Paying Agent. (a) If the Company shall appoint a
Paying Agent other than the Trustee with respect to Subordinated Securities of
any series, it will cause such Paying Agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject
to the provisions of this Section 4.05 and Section 11.04,
(1) that it will hold all sums held by it as such agent for the payment of
the principal of or interest, if any, on the Subordinated Securities of such
series (whether such sums have been paid to it by the Company or by any other
obligor on the Subordinated Securities of such series) in trust for the benefit
of the Holders of the Subordinated Securities entitled to such principal or
interest and will notify the Trustee of the receipt of sums to be so held,
(2) that it will give the Trustee notice of any failure by the Company (or
by any other obligor on the Subordinated Securities of such series) to make any
payment of the
30
principal of or interest on the Subordinated Securities of such series when the
same shall be due and payable, and
(3) that it will at any time during the continuance of any Event of
Default, upon the written request of the Trustee, deliver to the Trustee all
sums so held in trust by it.
(b) Whenever the Company shall have one or more Paying Agents with respect
to the Subordinated Securities of any series, it will, prior to each due date of
the principal of or any interest on the Subordinated Securities of such series,
deposit with a Paying Agent of such series a sum sufficient to pay the principal
or interest so becoming due, such sum to be held in trust for the benefit of the
Holders of Subordinated Securities entitled to such principal or interest, and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.
(c) If the Company shall act as its own Paying Agent with respect to the
Subordinated Securities of any series, it will, on or before each due date of
the principal of or interest on the Subordinated Securities of such series, set
aside, segregate and hold in trust for the benefit of the Holders of the
Subordinated Securities of such series or the Coupons appertaining thereto a sum
sufficient to pay such principal or interest so becoming due. The Company will
promptly notify the Trustee of any failure to take such action.
(d) Anything in this Section 4.05 to the contrary notwithstanding, the
Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Subordinated Indenture with respect to one or more or all
series of Subordinated Securities hereunder, or for any other reason, pay or
cause to be paid to the Trustee all sums held in trust for such series by it, or
any Paying Agent hereunder, as required by this Section 4.05, and such sums are
to be held by the Trustee upon the trust herein contained.
SECTION 4.06. Notice of Default. The Company covenants that, as soon as is
practicable, the Company will furnish the Trustee notice of any event which is
an Event of Default or which with the giving of notice or the passage of time or
both would constitute an Event of Default which has occurred and is continuing
on the date of such notice, which notice shall set forth the nature of such
event and the action which the Company proposes to take with respect thereto.
SECTION 4.07. Maintenance of Properties. The Company will cause all
properties used in or useful in the conduct of its business to be maintained and
kept in good condition, repair, and working order and supplied with all
necessary equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary, so that the business carried on in connection
therewith may be properly and advantageously conducted at all time except to the
extent that the Company may be prevented from so doing by circumstances beyond
its control; provided, that nothing in this Section shall prevent the Company
from discontinuing the operation or maintenance of any of such properties, or
disposing of any of them, if such discontinuance or disposal is, in the judgment
of the Company desirable in the conduct of the business of the Company and not
disadvantageous in any material respect to the Subordinated Securityholders.
31
SECTION 4.08. Payment of Taxes and Other Claims. The Company will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent: (a) all taxes, assessments and governmental charges levied or
imposed upon the Company or upon the income, profits or property of the Company;
and (b) all lawful claims for labor, materials, and supplies, which, if unpaid,
might by law become a lien upon the property of the Company; provided, that the
Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount, applicability
or validity is being contested in good faith by appropriate proceedings; and
provided further that the Company shall not be required to cause to be paid or
discharged any such tax, assessment, charge or claim if the Company shall
determine that such payment is not advantageous to the conduct of the business
of the Company taken as a whole and that the failure so to pay or discharge is
not disadvantageous in any material respect to the Subordinated Securityholders.
SECTION 4.09. Luxembourg Publications. In the event of the publication of
any notice pursuant to Section 3.02, 6.10, 7.10(a), 7.11 and 10.02, the party
making such publication in the Borough of Manhattan, The City of New York and
London shall also, to the extent that notice is required to be given to Holders
of Subordinated Securities of any series by applicable Luxembourg law or stock
exchange regulation, as evidenced by an Officer's Certificate delivered to such
party, make a similar publication in Luxembourg.
ARTICLE FIVE
SUBORDINATED SECURITYHOLDERS' LISTS AND REPORTS
BY THE COMPANY AND THE TRUSTEE
SECTION 5.01. Company to Furnish Trustee Information as to the Names and
Addresses of Subordinated Securityholders. The Company will furnish or cause to
be furnished to the Trustee, not less than 45 days nor more than 60 days after
each date (month and day) specified as an Interest Payment Date for the
Subordinated Securities of the first series issued under this Subordinated
Indenture (whether or not any Subordinated Securities of that series are then
Outstanding), but in no event less frequently than semiannually, and at such
other times as the Trustee may request in writing, within 30 days after receipt
by the Company of any such request, a list in such form as the Trustee may
reasonably require containing all the information in the possession or control
of the Company, or any of its Paying Agents other than the Trustee, as to the
names and addresses of the Holders of Subordinated Securities, obtained since
the date as of which the next previous list, if any, was furnished, excluding
from any such list the names and addresses received by the Trustee in its
capacity as registrar (if so acting). Any such list may be dated as of a date
not more than 15 days prior to the time such information is furnished and need
not include information received after such date.
SECTION 5.02. Preservation of Information; Communication to Subordinated
Securityholders. (a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Subordinated
Securities of each series (1) contained in the most recent list furnished to it
as provided in Section 5.01, (2) received by the Trustee in the capacity of
Paying Agent or registrar (if so acting) and (3) filed with the Trustee within
the two preceding years as provided for in Section 5.04(c). The Trustee may
destroy any list furnished to it as provided in Section 5.01 upon receipt of a
new list so furnished.
32
(b) If three or more Holders of Subordinated Securities (hereinafter
referred to as "applicants") apply in writing to the Trustee, and furnish to the
Trustee reasonable proof that each such applicant has owned a Subordinated
Security for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to
communicate with other Holders of Subordinated Securities of any series or with
Holders of all Subordinated Securities with respect to their rights under this
Subordinated Indenture or under such Subordinated Securities, and is accompanied
by a copy of the form of proxy or other communication which such applicants
propose to transmit, then the Trustee shall, within five Business Days after the
receipt of such application, at its election, either:
(1) afford such applicants access to the information preserved at the time
by the Trustee in accordance with the provisions of subsection (a) of this
Section 5.02; or
(2) inform such applicants as to the approximate number of Holders of
Subordinated Securities of such series or all Subordinated Securities, as the
case may be, whose names and addresses appear in the information preserved at
the time by the Trustee in accordance with the provisions of subsection (a) of
this Section 5.02, and as to the approximate cost of mailing to such
Subordinated Securityholders the form of proxy or other communications, if any,
specified in such application.
If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each of the Holders of Subordinated Securities of such series, or all
Subordinated Securities, as the case may be, whose name and address appear in
the information preserved at the time by the Trustee in accordance with the
provisions of subsection (a) of this Section 5.02, a copy of the form of proxy
or other communication which is specified in such request, with reasonable
promptness after a tender to the Trustee of the material to be mailed and of
payment, or provision for the payment, of the reasonable expenses of mailing,
unless within five days after such tender, the Trustee shall mail to such
applicants and file with the Commission, together with a copy of the material to
be mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary to the best interests of the Holders of
Subordinated Securities of such series or all Subordinated Securities, as the
case may be, or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed,
shall enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, the Trustee shall
mail copies of such material to all such Subordinated Securityholders with
reasonable promptness after the entry of such order and the renewal of such
tender; otherwise the Trustee shall be relieved of any obligation or duty to
such applicants respecting their application.
(c) Each and every Holder of the Subordinated Securities, 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 any registrar shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders of Subordinated Securities in accordance with the
provisions of subsection (b) of this Section 5.02, regardless of the source
33
from which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
said subsection (b).
SECTION 5.03. Reports by Company. (a) The Company covenants and agrees to
file with the Trustee within 15 days after the Company is required to file the
same with the Commission, copies of the annual reports and of the information,
documents and other reports (or copies of such portions of any of the foregoing
as the Commission may from time to time by rules and regulations prescribe)
which the Company may be required to file with the Commission pursuant to
Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not
required to file information, documents or reports pursuant to either of such
sections, then to file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such of
the supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations.
(b) The Company covenants and agrees to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by the Commission, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants provided
for in this Subordinated Indenture as may be required from time to time by such
rules and regulations.
(c) The Company covenants and agrees to transmit to the Holders of
Subordinated Securities within 30 days after the filing thereof with the
Trustee, in the manner and to the extent provided in subsection (c) of Section
5.04 with respect to reports pursuant to subsection (a) of said Section 5.04,
such summaries of any information, documents and reports required to be filed by
the Company pursuant to subsections (a) and (b) of this Section 5.03 as may be
required by rules and regulations prescribed from time to time by the
Commission.
(d) The Company and any other obligor on the Subordinated Securities each
covenant and agree to furnish to the Trustee, not less than annually, a brief
certificate from the principal executive officer, principal financial officer or
principal accounting officer as to his or her knowledge of the Company's
compliance with all conditions and covenants of this Subordinated Indenture
(which compliance shall be determined without regard to any period of grace or
requirement of notice as provided in this Subordinated Indenture). Such
certificates need not comply with Section 13.03 of this Subordinated Indenture.
SECTION 5.04. Reports by Trustee. (a) On or before the first July 15th
following the date of execution of this Subordinated Indenture, and on or before
July 15 in every year thereafter, if and so long as any Subordinated Securities
are Outstanding hereunder, the Trustee shall transmit to the Subordinated
Securityholders as hereinafter in this Section 5.04 provided, a brief report
dated as of the preceding May 15 with respect to any of the following events
which may have occurred within the previous 12 months (but if no such event has
occurred within such period no report need be transmitted):
(1) any change to its eligibility under Section 7.09, and its
qualifications under Section 7.08;
34
(2) the creation of or any material change to a relationship specified in
paragraph (1) through (10) of Section 7.08(d);
(3) the character and amount of any advances (and if the Trustee elects so
to state, the circumstances surrounding the making thereof) made by the Trustee
(as such) which remain unpaid on the date of such report, and for the
reimbursement of which it claims or may claim a lien or charge, prior to that of
the Subordinated Securities of any series, on any property or funds held or
collected by it as Trustee, except that the Trustee shall not be required (but
may elect) to state such advances if such advances so remaining unpaid aggregate
not more than one-half of one percent of the principal amount of the
Subordinated Securities of such series Outstanding on the date of such report;
(4) the amount, interest rate and maturity date of all other indebtedness
owing by the Company (or by any other obligor on the Subordinated Securities) to
the Trustee in its individual capacity, on the date of such report, with a brief
description of any property held as collateral security therefor, except
indebtedness based upon a creditor relationship arising in any manner described
in paragraph (2), (3), (4) or (6) of subsection (b) of Section 7.13;
(5) any change to the property and funds, if any, physically in the
possession of the Trustee (as such) on the date of such report;
(6) any additional issue of Subordinated Securities which the Trustee has
not previously reported; and
(7) any action taken by the Trustee in the performance of its duties under
this Subordinated Indenture which it has not previously reported and which in
its opinion materially affects the Subordinated Securities, except action in
respect of a default, notice of which has been or is to be withheld by it in
accordance with the provisions of Section 6.10.
(b) The Trustee shall transmit to the Subordinated Securityholders, as
hereinafter provided, a brief report with respect to the character and amount of
any advances (and if the Trustee elects so to state, the circumstances
surrounding the making thereof) made by the Trustee (as such) since the date of
the last report transmitted pursuant to the provisions of subsection (a) of this
Section 5.04 (or if no such report has yet been so transmitted, since the date
of execution of this Subordinated Indenture), for the reimbursement of which it
claims or may claim a lien or charge prior to that of the Subordinated
Securities of any series on property or funds held or collected by it as
Trustee, and which it has not previously reported pursuant to this subsection,
except that the Trustee shall not be required (but may elect) to report such
advances if such advances remaining unpaid at any time aggregate ten percent or
less of the principal amount of Subordinated Securities of such series
Outstanding at such time, such report to be transmitted within 90 days after
such time.
(c) Reports pursuant to this Section 5.04 shall be transmitted by mail (i)
to all Holders of Subordinated Securities of any series, as the names and
addresses of such Holders shall appear upon the Register of the Subordinated
Securities of such series, (ii) to such Holders of Subordinated Securities as
have, within the two years preceding such transmission, filed their names and
addresses with the Trustee for that purpose and (iii) except in the case of
reports
35
pursuant to subsection (b) of this Section 5.04 to each Holder whose name and
address are preserved at the time by the Trustee as provided in Section 5.02(a)
hereof.
(d) A copy of each such report shall, at the time of such transmission to
Subordinated Securityholders, be filed by the Trustee with each stock exchange
upon which the Subordinated Securities of any series are listed and also with
the Commission. The Company will notify the Trustee when and as the Subordinated
Securities of any series become listed on any stock exchange.
ARTICLE SIX
REMEDIES OF THE TRUSTEE AND SUBORDINATED
SECURITYHOLDERS ON EVENT OF DEFAULT
SECTION 6.01. Events of Default; Acceleration, Waiver of Default and
Restoration of Position and Rights. The term "Event of Default" whenever used
herein with respect to any particular series of Subordinated Securities shall
mean any one of the following events:
(a) default in the payment of any installment of interest on any
Subordinated Security of such series as and when the same shall become due and
payable, and continuance of such default for a period of 30 days provided
however, that an extension of one or more Interest Payment Dates by the Company
in accordance with the provisions of any Supplemental Subordinated Indenture,
shall not constitute an Event of Default; or
(b) default in the payment of all or any part of the principal of or any
premium on any Subordinated Security of such series as and when the same shall
become due and payable whether at maturity, by proceedings for redemption, by
declaration or otherwise, provided however, that an extension of the Stated
Maturity for payment of principal of Subordinated Securities of such series in
accordance with the provisions of any Supplemental Subordinated Indenture, shall
not constitute an Event of Default; or
(c) default in the satisfaction of any sinking fund payment obligation
relating to such series of Subordinated Securities, when and as such obligation
shall become due and payable provided however, that an extension of the Stated
Maturity for payment of any sinking fund payment with respect to Subordinated
Securities of such series in accordance with the provisions of any Supplemental
Subordinated Indenture, shall not constitute an Event of Default; or
(d) failure on the part of the Company to observe or perform in any
material respect any other of the covenants or agreements on its part in the
Subordinated Securities or in this Subordinated Indenture (including any
Supplemental Subordinated Indenture or pursuant to any Officer's Certificate, as
contemplated by Section 2.03) specifically contained for the benefit of the
Holders of the Subordinated Securities of such series, for a period of 60 days
after there has been given, by registered or certified mail, to the Company by
the Trustee, or to the Company and the Trustee by the Holders of not less than
25% in principal amount of the Subordinated Securities of such series and all
other series so benefited (all series voting as one class) at the time
Outstanding under this Subordinated Indenture a written notice specifying such
failure and stating that such is a "Notice of Default" hereunder; or
36
(e) the entry by a court having jurisdiction in the premises of a decree or
order for relief in respect of the Company in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Company or for any substantial part of
its property, or ordering the winding up or liquidation of its affairs, if such
decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or
(f) the commencement by the Company of a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or the Company's consent to the entry of an order for relief in any
involuntary case under any such law, or its consent to the appointment of or
taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or similar official) of the Company or for any substantial part of
its property, or the making by the Company of any general assignment for the
benefit of creditors, or its failure generally to pay its debts as they become
due or the taking by the Company of any corporate action in furtherance of any
of the foregoing; or
(g) any other Event of Default provided in the Officer's Certificate or
Supplemental Subordinated Indenture under which such series of Subordinated is
issued or in the form of Subordinated Security for such series.
If an Event of Default described in clause (a), (b) or (c) shall have
occurred and be continuing with respect to any one or more series of Outstanding
Subordinated Securities, then and in each and every such case, unless the
principal amount of all the Subordinated Securities of each series as to which
there is an Event of Default shall have already become due and payable, either
the Trustee or the Holders of not less than 25% in principal amount of the
Subordinated Securities of such series then Outstanding hereunder (each such
series voting as a separate class) by notice in writing to the Company (and to
the Trustee if given by Subordinated Securityholders) may declare the principal
amount (or, if the Subordinated Securities of any such series are Original Issue
Discount Subordinated Securities, such portion of the principal amount as may be
specified in the terms of such series) of all the Subordinated Securities of
such series, together with any accrued interest, to be due and payable
immediately, and upon any such declaration the same shall be immediately due and
payable, anything in this Subordinated Indenture or in the Subordinated
Securities of such series contained to the contrary notwithstanding.
Except as otherwise provided in the terms of any series of Subordinated
Securities pursuant to Section 2.03, if an Event of Default described in clause
(d) or (g) above with respect to all series of Subordinated Securities then
Outstanding, occurs and is continuing, then, and in each and every such case,
unless the principal of all of the Subordinated Securities shall have already
become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of all of the Subordinated Securities then
Outstanding hereunder (treated as one class) by notice in writing to the Company
(and to the Trustee if given by Securityholders), may declare the entire
principal (or, if the Subordinated Securities of any series are Original Issue
Discount Securities, such portion of the principal amount as may be specified in
the terms of such series) of all of the Subordinated Securities then
Outstanding, and the interest accrued thereon, if any, to be due and payable
immediately, and upon such declaration, the same shall become immediately due
and payable. If an Event of Default described in
37
clause (e) or (f) above occurs and is continuing, then the principal amount of
all of the Subordinated Securities then Outstanding, and the interest accrued
thereon, if any, shall become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder.
If an Event of Default described in clause (d) or (g) occurs and is
continuing, which Event of Default is with respect to less than all series of
Subordinated Securities then Outstanding, then, and in each and every such case,
except for any series of Subordinated Securities the principal of which shall
have already become due and payable, either the Trustee or the Holders of not
less than 25% in aggregate principal amount of the Subordinated Securities of
each such affected series then Outstanding hereunder (each such series voting as
a separate class) by notice in writing to the Company (and to the Trustee if
given by Securityholders), may declare the entire principal (or, if the
Securities of such series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of such series) of all
Securities of such series, and the interest accrued thereon, if any, to be due
and payable immediately, and upon any such declaration, the same shall become
immediately due and payable.
The foregoing provisions, however, are subject to the condition that if, at
any time after the principal amount (or, if the Subordinated Securities are
Original Issue Discount Subordinated Securities, such portion of the principal
as may be specified in the terms thereof of the Subordinated Securities of any
one or more series (or of all the Subordinated Securities, as the case may be)
shall have been so declared due and payable, and before any judgment or decree
for the payment of moneys 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 Subordinated
Securities of such series (or upon all the Subordinated Securities, as the case
may be) and the principal of any and all Subordinated Securities of such series
(or of any and all the Subordinated Securities, as the case may be) which shall
have become due otherwise than by declaration (with interest on overdue
installments of interest to the extent permitted by law and on such principal at
the rate or rates of interest borne by, or prescribed therefor in the
Subordinated Securities of such series to the date of such payment or deposit)
and interest upon such principal and, to the extent that payment of such
interest is enforceable under applicable law, on overdue installments of
interest, at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of such
series (or at the respective rates of interest or Yields to Maturity of all the
Securities, as the case may be) to the date of such payment or deposit; and the
amounts payable to the Trustee under Section 7.06 and any and all defaults under
the Subordinated Indenture with respect to Subordinated Securities of such
series (or all Subordinated Securities, as the case may be), other than the
non-payment of principal of and any accrued interest on Subordinated Securities
of such series (or any Subordinated Securities, as the case may be) which shall
have become due by declaration shall have been cured, remedied or waived as
provided in Section 6.09 -- then and in every such case the Holders of a
majority in principal amount of the Subordinated Securities of such series (or
of all the Subordinated Securities, as the case may be) then Outstanding (such
series or all series voting as one class if more than one series are so
entitled) by written notice to the Company and to the Trustee, may rescind and
annul such declaration and its consequences; but no such rescission and
annulment
38
shall extend to or shall affect any subsequent default, or shall impair any
right consequent thereon.
For all purposes under this Subordinated Indenture, if a portion of the
principal of any Original Issue Discount Securities shall have been accelerated
and declared due and payable pursuant to the provisions hereof, then, from and
after such declaration, unless such declaration has been rescinded and annulled,
the principal amount of such Original Issue Discount Securities shall be deemed,
for all purposes hereunder, to be such portion of the principal thereof as shall
be due and payable as a result of such acceleration, and payment of such portion
of the principal thereof as shall be due and payable as a result of such
acceleration, together with interest, if any, thereon and all other amounts
owing thereunder, shall constitute payment in full of such Original Issue
Discount Securities.
In case the Trustee shall have proceeded to enforce any right under this
Subordinated Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such case
the Company, the Trustee and the Holders of the Subordinated Securities of such
series (or of all the Subordinated Securities, as the case may be) shall be
restored respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Company and the Trustee and the Holders of
the Subordinated Securities of such series (or of all the Subordinated
Securities, as the case may be) shall continue as though no such proceedings had
been taken.
SECTION 6.02. Covenant of Company to Pay to Trustee Whole Amount Due on
Subordinated Securities on Default in Payment of Interest or Principal. The
Company covenants that:
(a) in case default shall be made in the payment of any installment of
interest on any of the Subordinated Securities of any series as and when the
same shall become due and payable and which payment has not been extended in
accordance with the provisions of a Supplemental Subordinated Indenture, and
such default shall have continued for a period of 30 days; or
(b) in case default shall be made in the payment of all or any part of the
principal of any of the Subordinated Securities of any series when the same
shall have become due and payable and which payment has not been extended in
accordance with the provisions of a Supplemental Subordinated Indenture, whether
at the Stated Maturity of such series or by any call for redemption or by
declaration of acceleration or otherwise; or
(c) in case default shall be made in the satisfaction of any sinking fund
obligation when and as such obligation becomes due and payable and which payment
has not been extended in accordance with the provisions of a Supplemental
Subordinated Indenture, upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the Holders of the Subordinated Securities of such
series, the whole amount that then shall have become due and payable on all such
Subordinated Securities of such series and such Coupons, for principal (and any
premium) and interest and for any overdue sinking fund payment together with
interest upon the overdue principal and installments of interest (to the extent
permitted by law) at the rate
39
or rates of interest borne by or Yield to Maturity (in the case of Original
Issue Discount Subordinated Securities), or prescribed therefor in, the
Subordinated Securities of such series; and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expense of collection,
including a reasonable compensation to the Trustee, its agents and counsel, and
any expenses or liabilities incurred, and all advances made, by the Trustee
hereunder other than through its negligence or bad faith.
In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as Trustee of an express trust, shall
be entitled and empowered to institute any 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 proceedings to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor upon such
Subordinated Securities, and collect in the manner provided by law out of the
property of the Company or any other obligor upon such Subordinated Securities
wherever situated the moneys adjudged or decreed to be payable.
If an Event of Default with respect to Subordinated Securities of any
series occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders of Subordinated
Securities of such series by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this
Subordinated Indenture or in aid of the exercise of any power granted herein, or
to enforce any other proper remedy.
SECTION 6.03. Trustee May File Proofs of Claim. In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other similar judicial proceeding
relative to the Company or any other obligor upon the Subordinated Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Subordinated Securities of
any series shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
on the Company for the payment of overdue principal or interest) shall be
entitled and empowered, to the fullest extent permitted by law, by intervention
in such proceeding or otherwise:
(a) to file and prove a claim for the whole amount of principal (and
premium, if any) and interest owing and unpaid in respect of the Subordinated
Securities (or, if the Subordinated Securities are Original Issue Discount
Subordinated Securities, such portion of the principal amount as may be
specified in the terms of such Subordinated Securities) and to file such other
papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and of the
Holders allowed in such judicial proceeding; and
(b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;
40
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.06.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the
Subordinated Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.
SECTION 6.04. Trustee May Enforce Claims Without Possession of Subordinated
Securities. All rights of action and claims under this Subordinated Indenture or
the Subordinated Securities of any series or Coupons appertaining to such
Subordinated Securities, may be prosecuted and enforced by the Trustee to the
fullest extent permitted by law without the possession of any of the
Subordinated Securities of any series or Coupons appertaining to such
Subordinated Securities, or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Subordinated Securities or Coupons in
respect of which such judgment has been recovered.
SECTION 6.05. Application of Moneys Collected by Trustee. Any moneys
collected by the Trustee pursuant to Section 6.02 shall be applied in the order
following, at the date or dates fixed by the Trustee for the distribution of
such moneys, upon presentation of the several Subordinated Securities or Coupons
appertaining to such Subordinated Securities in respect of which moneys have
been collected, and stamping thereon the payment, if only partially paid, and
upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due to the Trustee under Section 7.06;
SECOND: In case the principal of the Outstanding Subordinated Securities in
respect of which moneys have been collected shall not have become due and be
unpaid, to the payment of any interest on such Subordinated Securities, in the
order of the maturity of the installments of such interest, with interest upon
the overdue installments of interest (so far as permitted by law and to the
extent that such interest has been collected by the Trustee at the rate or rates
of interest borne by or Yield to Maturity (in the case of Original Issue
Discount Subordinated Securities) of such Subordinated Securities or prescribed
therefor therein) such payments to be made ratably to the Persons entitled
thereto, without discrimination or preference;
THIRD: In case the principal of the Outstanding Subordinated Securities in
respect of which such moneys have been collected shall have become due, by
declaration or otherwise, to the payment of the whole amount then owing and
unpaid upon such Subordinated
41
Securities for principal and interest, if any, with interest on the overdue
principal and any installments of interest (so far as permitted by law and to
the extent that such interest has been collected by the Trustee) at the rate or
rates of interest borne by or Yield to Maturity (in the case of Original Issue
Discount Subordinated Securities), or prescribed therefor in, such Subordinated
Securities; and in case such moneys shall be insufficient to pay in full the
whole amount so due and unpaid upon such Subordinated Securities, then to the
payment of such principal and interest or Yield to Maturity, without preference
or priority of principal over interest or Yield to Maturity, or of interest or
Yield to Maturity over principal, or of any installment of interest over any
other installment of interest, or of any Subordinated Security over any other
Subordinated Security, ratably to the aggregate of such principal and accrued
and unpaid interest or Yield to Maturity; and
FOURTH: To the payment of the remainder, with appropriate interest to the
Company or its successors or assigns, or to whomsoever may be lawfully entitled
to receive the same, or as a court of competent jurisdiction may direct.
SECTION 6.06. Limitation on Suits by Holders of Subordinated Securities. No
Holder of any Subordinated Security of any series or of any Coupon appertaining
thereto shall have any right by virtue or by availing of any provision of this
Subordinated Indenture to institute any suit, action or proceeding in equity or
at law upon or under or with respect to this Subordinated Indenture or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless
such Holder previously shall have given to the Trustee written notice of a
continuing Event of Default, as hereinbefore provided, and unless also the
Holders of not less than 25% in principal amount of the Subordinated Securities
of such series 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 (including the reasonable fees of counsel for the Trustee), and the
Trustee, for 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 this Section 6.06; it being understood and
intended, and being expressly covenanted by the taker and Holder of every
Subordinated Security or Coupon with every other taker and Holder and the
Trustee, that no one or more Holders of Subordinated Securities of any series or
Coupons appertaining to such Subordinated Securities shall have any right in any
manner whatever by virtue or by availing of any provision of this Subordinated
Indenture to affect, disturb or prejudice the rights of the Holders of any other
of such Subordinated Securities or Coupons appertaining to such Subordinated
Securities, or to obtain or seek to obtain priority over or preference to any
other such Holder, or to enforce any right under this Subordinated Indenture,
except in the manner herein provided and for the equal, ratable and common
benefit of all Holders of Subordinated Securities of the applicable series and
Coupons appertaining to such Subordinated Securities. For the protection and
enforcement of the provisions of this Section 6.06, each and every Holder and
the Trustee shall be entitled to such relief as can be given either at law or in
equity.
Notwithstanding any other provisions in this Subordinated Indenture, the
right of any Holder of any Subordinated Security or Coupon to receive payment of
the principal of and interest on such Subordinated Security or Coupon on or
after the respective due dates expressed
42
in such Subordinated Security (or, in the case of redemption, on or after the
date fixed for redemption), or to institute suit for the enforcement of any such
payment on or after such respective dates shall not be impaired or affected
without the consent of such Holder.
SECTION 6.07. Rights and Remedies Cumulative. All powers and remedies given
by this Article Six to the Trustee or to the Holders 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, by
judicial proceedings or otherwise, to enforce the performance or observance of
the covenants and agreements contained in this Subordinated Indenture, and no
delay or omission of the Trustee or of any Holder of any of the Subordinated
Securities or Coupons to exercise any right or power accruing upon any 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 6.06, every power and remedy
given by this Article Six or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Holders. The assertion or employment of any right or remedy
hereunder or otherwise shall not prevent the concurrent assertion or employment
of any other appropriate right or remedy.
SECTION 6.08. Delay or Omission Not Waiver. No delay or omission of the
Trustee or of any Holder of any Subordinated Securities or Coupons to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Subject to the provisions of Section 6.06, every right and
remedy given by this Article Six or by law to the Trustee or to the Holders may
be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.
SECTION 6.09. Control by Holders; Waiver of Past Defaults. The Holders of a
majority in principal amount of the Subordinated Securities of all series
(voting as one class) at the time Outstanding (determined as provided in Section
8.04) 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 Section
7.01 the Trustee shall have the right to decline to follow any such direction if
the Trustee in reliance upon an Opinion of Counsel determines that the action so
directed may not lawfully be taken, or if the Trustee in good faith shall, by a
Responsible Officer or Officers of the Trustee, determine that the proceedings
so directed would be illegal or involve it in personal liability or be unduly
prejudicial to the rights of Holders not parties to such direction, and provided
further that nothing in this Subordinated Indenture shall impair the right of
the Trustee to take any action deemed proper by the Trustee and which is not
inconsistent with such direction by the Holders.
The Company may set a special record date for purposes of determining the
identity of the Holders of Subordinated Securities entitled to vote or consent
to any action by vote or consent authorized or permitted by this Section 6.09.
Such record date shall be the later of 15 days prior to the first solicitation
of such consent or the date of the most recent list of Holders furnished to the
Trustee pursuant to Section 5.01 of this Subordinated Indenture prior to such
solicitation.
43
The Holders of not less than a majority in principal amount of the
Subordinated Securities of any series at the time Outstanding (determined as
provided in Section 8.04) may on behalf of the Holders of all the Subordinated
Securities of such series waive any past Event of Default with respect to such
series and its consequences (subject to Section 6.02), except a continuing Event
of Default specified in Section 6.01(a), (b) or (c), or in respect of a covenant
or provision of this Subordinated Indenture which under Article Ten cannot be
modified or amended without the consent of the Holder of each Subordinated
Security so affected. Upon any such waiver, the Company, the Trustee and the
Holders of the Subordinated Securities of such series shall be restored to their
former positions and rights hereunder, respectively, and such Event of Default
shall be deemed to have been cured and not continuing for every purpose of this
Subordinated Indenture; but no such waiver shall extend to any subsequent or
other Event of Default or impair any right consequent thereon.
SECTION 6.10. Trustee to Give Notice of Defaults Known to it, but May
Withhold in Certain Circumstances. The Trustee shall, within 90 days after the
occurrence of a default with respect to the Subordinated Securities of any
series, give notice of all defaults with respect to that series known to the
Trustee (i) if any Unregistered Subordinated Securities of that series are then
Outstanding, to the Holders thereof, by publication at least once in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and at
least once in an Authorized Newspaper in London (and, if required by Section
4.09, at least once in an Authorized Newspaper in Luxembourg) and (ii) to all
Holders of Subordinated Securities of such series in the manner and to the
extent provided in Section 313(c) of the Trust Indenture Act, unless in each
case such defaults shall have been cured before the mailing or publication of
such notice (the term "default" for the purpose of this Section being hereby
defined to mean any event or condition which is, or with notice or lapse of time
or both would become, an Event of Default); provided, that, except in the case
of default in the payment of the principal of or interest on any of the
Subordinated Securities of such series, or in the payment of any sinking fund
installment on such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee, or a
trust committee of directors or trustees and/or Responsible Officers of the
Trustee in good faith determines that the withholding of such notice is in the
interests of the Subordinated Securityholders of such series.
SECTION 6.11. Requirement of an Undertaking to Pay Costs in Certain Suits
Under the Subordinated Indenture or Against the Trustee. All parties to this
Subordinated Indenture agree, and each Holder of any Subordinated Security by
such Holder's 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 Subordinated 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;
but the provisions of this Section 6.11 shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Holder of Subordinated Securities
of any series, or group of such Holders, holding in the aggregate more than ten
percent in principal amount of the Subordinated Securities of such series
Outstanding, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of or any interest or premium on any Subordinated
44
Security, on or after the due date expressed in such Subordinated Security or
for such interest (or in the case of any redemption, on or after the dated fixed
for redemption).
SECTION 6.12. Waiver of Stay, or Extension Laws. The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereinafter in
force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law and covenants that they will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.
ARTICLE SEVEN
CONCERNING THE TRUSTEE
SECTION 7.01. Certain Duties and Responsibilities of Trustee. The Trustee,
prior to the occurrence of an Event of Default and after the curing, remedying
or waiving 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
Subordinated Indenture. In case an Event of Default has occurred (which has not
been cured, remedied or waived), the Trustee shall exercise such of the rights
and powers vested in it by this Subordinated 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 or her own affairs.
No provision of this Subordinated 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, provided, however, that:
(a) prior to the occurrence of an Event of Default and after the curing,
remedying or waving 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 Subordinated Indenture and the Trustee
shall not be liable except for the performance of such duties and obligations as
are specifically set forth in this Subordinated Indenture, and no implied
covenants or obligations shall be read into this Subordinated Indenture 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 Subordinated Indenture;
but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Subordinated Indenture;
45
(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; and
(c) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of Subordinated Securities pursuant to Section 6.09 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 Subordinated Indenture.
None of the provisions contained in this Subordinated 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 hereunder 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.
SECTION 7.02. Certain Rights of Trustee. Except as otherwise provided in
Section 7.01:
(a) The Trustee may rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, debenture, note 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 Officer's Certificate (unless other
evidence in respect thereof shall be herein specifically prescribed); and any
resolution of the Board of Directors may be evidenced to the Trustee by a Board
Resolution;
(c) The Trustee may consult with counsel and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in accordance with such written 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 Subordinated Indenture at the request, order or
direction of any of the Subordinated Securityholders, pursuant to the provisions
of this Subordinated Indenture, unless such Subordinated Securityholders 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 Subordinated Indenture;
(f) The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, debenture,
note or other paper or document, unless requested in writing so to do by the
Holders of Subordinated Securities pursuant to Section 6.09; provided,
46
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 Subordinated
Indenture, the Trustee may require reasonable indemnity against such costs,
expenses or liabilities as a condition to such proceeding; and provided further,
that nothing in this subsection (f) shall require the Trustee to give the
Subordinated Securityholders any notice other than that required by Section
6.10. The reasonable expense of every such examination shall be paid by the
Company or, if paid by the Trustee, shall be reimbursed by the Company upon
demand;
(g) The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder; and
(h) The Trustee shall be under no responsibility for the approval by it in
good faith of any expert for any of the purposes expressed in this Subordinated
Indenture.
SECTION 7.03. Trustee Not Responsible for Recitals or Application of
Proceeds. The recitals contained herein and in the Subordinated Securities
(other than the certificate of authentication on the Subordinated Securities)
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 Subordinated Indenture
or of the Subordinated Securities. The Trustee shall not be accountable for the
use or application by the Company of any of the Subordinated Securities or of
the proceeds thereof.
SECTION 7.04. Trustee May Own Subordinated Securities or Coupons. The
Trustee, any Paying Agent, registrar or any agent of the Company or of the
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Subordinated Securities or Coupons with the same rights it would have
if it were not Trustee, Paying Agent, registrar or such other agent.
SECTION 7.05. Moneys Received by Trustee to be Held in Trust. Moneys held
by the Trustee in trust 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 except as otherwise agreed with the Company.
SECTION 7.06. Trustee Entitled to Compensation, Reimbursement and
Indemnity. The Company agrees to pay to the Trustee from time to time reasonable
compensation (which shall not be limited by any provision of law in regard to
the compensation of a trustee of any 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 connection with
the acceptance or administration of its trust under this Subordinated 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 agrees to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or bad faith
on the
47
part of the Trustee and arising out of or in connection with the acceptance or
administration of this trust, including the reasonable costs and expenses of
defending itself against any claim of liability in the premises. The obligations
of the Company under this Section to compensate the Trustee, to pay or reimburse
the Trustee for expenses, disbursements and advances and to indemnify and hold
harmless the Trustee shall constitute additional indebtedness hereunder and
shall survive the satisfaction and discharge of this Subordinated Indenture.
Such additional indebtedness shall be secured by a lien prior to that of the
Subordinated Securities upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the payment of principal of or
interest or redemption premium on particular Subordinated Securities.
SECTION 7.07. Right of Trustee to Rely on Officer's Certificate Where No
Other Evidence Specifically Prescribed. Except as otherwise provided in Section
7.01, whenever in the administration of the provisions of this Subordinated
Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking, suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the
part of the Trustee, be deemed to be conclusively proved and established by an
Officer's Certificate of the Company delivered to the Trustee, and such
Officer's Certificate, in the absence of negligence or bad faith on the part of
the Trustee, shall be full warrant to the Trustee for any action taken, suffered
or omitted by it under the provisions of this Subordinated Indenture upon the
faith thereof.
SECTION 7.08. Disqualification; Conflicting Interest. (a) If the Trustee
has or shall acquire any conflicting interest, as defined in this Section 7.08,
it shall, within 90 days after ascertaining that it has such conflicting
interest, and if the Event of Default to which such conflicting interest relates
has not been cured or duly waived or otherwise eliminated before the end of such
90-day period, the Trustee shall either eliminate such conflicting interest or,
except as otherwise provided in this Section 7.08, resign in the manner and with
the effect specified in Section 7.10, such resignation to become effective upon
the appointment of a successor trustee and such successor's acceptance of such
appointment, and the Company shall take prompt steps to appoint a successor in
accordance with Section 7.10.
(b) In the event that the Trustee shall fail to comply with the provisions
of subsection (a) of this Section 7.08, the Trustee shall, within ten days after
the expiration of such 90-day period, transmit notice of such failure to the
Subordinated Securityholders in the manner and to the extent provided in
subsection (c) of Section 5.04 with respect to reports pursuant to subsection
(a) of said Section 5.04.
(c) Subject to the provisions of Section 6.11 of this Subordinated
Indenture, unless the Trustee's duty to resign is stayed as provided in
subsection (f) of this Section 7.08, any Holder who has been a bona fide Holder
of Subordinated Securities for at least six months may, on such Holder's behalf
and on behalf of all other Holders similarly situated, petition any court of
competent jurisdiction for the removal of such Trustee and the appointment of a
successor, if such Trustee fails after written request thereof by such Holder to
comply with the provisions of subsection (a) of this Section 7.08.
(d) For the purposes of this Section 7.08 the Trustee shall be deemed to
have a conflicting interest with respect to the Subordinated Securities of any
series if an Event of
48
Default (exclusive of any period of grace or requirement of notice) has occurred
with respect to Subordinated Securities of such series and:
(1) the Trustee is trustee under another indenture under which any other
securities, or certificates of interest or participation in any other
securities, of the Company or any other obligor on the Subordinated Securities
are outstanding or is trustee for more than one outstanding series of
securities, as hereinafter defined, under a single indenture of the Company or
any other obligor on the Subordinated Securities, unless such other indenture is
a collateral trust indenture under which the only collateral consists of
Subordinated Securities issued under this Subordinated Indenture, provided that
there shall be excluded from the operation of this paragraph, this Subordinated
Indenture with respect to the Subordinated Securities of any other series
Outstanding, and any other indenture or indentures under which other securities,
or certificates of interest or participation in other securities, of the Company
or any other obligor on the Subordinated Securities are outstanding, if (A) this
Subordinated Indenture is and such other indenture or indentures (and all series
of securities issued thereunder) are wholly unsecured and rank equally, and such
other indenture or indentures (and such series) are hereafter qualified under
the Trust Indenture Act, unless the Commission shall have found and declared by
order pursuant to subsection (b) of Section 305 or subsection (c) of Section 307
of the Trust Indenture Act, that differences exist between the provisions of
this Subordinated Indenture with respect to Subordinated Securities of such
series and one or more other series, or the provisions of this Subordinated
Indenture and the provisions of such other indenture or indentures (or such
series), which are so likely to involve a material conflict of interest as to
make it necessary in the public interest or for the protection of investors to
disqualify the Trustee from acting as such under this Subordinated Indenture
with respect to Subordinated Securities of such series and such other series, or
under this Subordinated Indenture and such other indenture or indentures, or (B)
the Company shall have sustained the burden of proving, on application to the
Commission and after opportunity for hearing thereon, that the trusteeship under
this Subordinated Indenture with respect to Subordinated Securities of such
series and such other series, or under this Subordinated Indenture and such
other indenture, is not so likely to involve a material conflict of interest as
to make it necessary in the public interest or for the protection of investors
to disqualify the Trustee from acting as such under this Subordinated Indenture
with respect to Subordinated Securities of such series and such other series, or
under this Subordinated Indenture and one of such indentures;
(2) the Trustee or any of its directors or executive officers is an
underwriter for the Company or any other obligor on the Subordinated Securities;
(3) the Trustee directly or indirectly controls or is directly or
indirectly controlled by or is under direct or indirect common control with an
underwriter for the Company or any other obligor on the Subordinated Securities;
(4) the Trustee or any of its directors or executive officers is a
director, officer, partner, employee, appointee or representative of the Company
or any other obligor on the Subordinated Securities, or of an underwriter (other
than the Trustee itself) for the Company or any other obligor on the
49
Subordinated Securities who is currently engaged in the business of
underwriting, except that (A) one individual may be a director and/or an
executive officer of the Trustee and a director and/or an executive officer of
the Company or any other obligor on the Subordinated Securities, but may not be
at the same time an executive officer of both the Trustee and the Company or any
other obligor on the Subordinated Securities; (B) if and so long as the number
of directors of the Trustee in office is more than nine, one additional
individual may be a director and/or an executive officer of the Trustee and a
director of the Company or any other obligor on the Subordinated Securities; and
(C) the Trustee may be designated by the Company or any other obligor on the
Subordinated Securities or by an underwriter for the Company or any other
obligor on the Subordinated Securities to act in the capacity of transfer agent,
registrar, custodian, paying agent, fiscal agent, escrow agent or depositary, or
in any other similar capacity, or, subject to the provisions of paragraph (1) of
this subsection (d), to act as trustee whether under an indenture or otherwise;
(5) ten percent or more of the voting securities of the Trustee is
beneficially owned either by the Company or any other obligor on the
Subordinated Securities or by any director, partner or executive officer
thereof, or 20% or more of such voting securities is beneficially owned,
collectively, by any two or more of such Persons; or ten percent or more of the
voting securities of the Trustee is beneficially owned either by an underwriter
for the Company or any other obligor on the Subordinated Securities or by any
director, partner or executive officer thereof or is beneficially owned,
collectively, by any two or more such Persons;
(6) the Trustee is the beneficial owner of, or holds as collateral security
for an obligation which is in default, as hereinafter defined, (A) five percent
or more of the voting securities, or ten percent or more of any other class of
security, of the Company or any other obligor on the Subordinated Securities,
not including the Subordinated Securities issued under this Subordinated
Indenture and securities issued under any other indenture under which the
Trustee is also trustee, or (B) ten percent or more of any class of security of
an underwriter for the Company or any other obligor on the Subordinated
Securities;
(7) the Trustee is the beneficial owner of, or holds as collateral security
for an obligation which is in default, as hereinafter defined, five percent or
more of the voting securities of any Person who, to the knowledge of the
Trustee, owns ten percent or more of the voting securities of, or controls
directly or indirectly or is under direct or indirect common control with the
Company or any other obligor on the Subordinated Securities;
(8) the Trustee is the beneficial owner of, or holds as collateral security
for an obligation which is in default, as hereinafter defined, ten percent or
more of any class of security of any Person who, to the knowledge of the
Trustee, owns 50% or more of the voting securities of the Company or any other
obligor on the Subordinated Securities;
(9) the Trustee owns on the date of the occurrence of such Event of Default
(exclusive of any period of grace or requirement of notice) or any anniversary
thereof while such Event of Default remains outstanding, in the capacity of
executor, administrator, testamentary or inter vivos trustee, guardian,
committee or conservator, or in any other similar capacity an aggregate of 25%
or more of the voting securities or of any class of security, of any Person, the
beneficial ownership of a specified percentage of which would have constituted a
conflicting interest under paragraph (6), (7) or (8) of this subsection (d). As
to any such securities of which the Trustee acquired ownership through becoming
executor, administrator or testamentary trustee of an estate which included
them, the provisions of the preceding sentence shall not
50
apply, for a period of two years from the date of such acquisition, to the
extent that such securities included in such estate do not exceed 25% of such
voting securities or 25% of any such class of security. Promptly after the date
of the occurrence of any such Event of Default and annually in each succeeding
year that the Subordinated Securities or any series thereof remain in default,
the Trustee shall make a check of its holdings of such securities in any of the
above-mentioned capacities as of such date. If the Company or any other obligor
on the Subordinated Securities fails to make payment in full of principal of or
interest on any of the Subordinated Securities when and as the same become due
and payable and such failure continues for 30 days thereafter, the Trustee shall
make a prompt check of its holdings of such securities in any of the
above-mentioned capacities as of the date of the expiration of such 30-day
period, and after such date, notwithstanding the foregoing provisions of this
paragraph (9), all such securities so held by the Trustee, with sole or joint
control over such securities vested in it, shall, but only so long as such
failure shall continue, be considered as though beneficially owned by the
Trustee for the purposes of paragraphs (6), (7) and (8) of this subsection (d);
or
(10) except under the circumstances described in paragraphs (1), (3), (4),
(5) or (6) of Section 7.13(b), the Trustee shall be or become a creditor of the
Company or any other obligor on the Subordinated Securities.
The specifications of percentages in paragraphs (5) to (9), inclusive, of
this subsection (d) shall not be construed as indicating that the ownership of
such percentages of the securities of a Person is or is not necessary or
sufficient to constitute direct or indirect control for the purposes of
paragraph (3) or (7) of this subsection (d).
For the purposes of paragraphs (6), (7), (8) and (9) of this subsection (d)
only, (A) the terms "security" and "securities" shall include only such
securities as are generally known as corporate securities, but shall not include
any note or other evidence of indebtedness issued to evidence an obligation to
repay moneys lent to a Person by one or more banks, trust companies or banking
firms, or any certificate of interest or participation in any such note or
evidence of indebtedness; (B) an obligation shall be deemed to be in default
when a default in payment of principal shall have continued for 30 days or more
and shall not have been cured; and (C) the Trustee shall not be deemed to be the
owner or Holder of (i) any security which it holds as collateral security (as
trustee or otherwise) for an obligation which is not in default as defined in
clause (B) above, or (ii) any security which it holds as collateral security
under this Subordinated Indenture, irrespective of any default hereunder, or
(iii) any security which it holds as agent for collection, or as custodian,
escrow agent or depositary, or in any similar representative capacity.
(e) For the purposes of this Section 7.08:
(1) The term "underwriter" when used with reference to the Company or
any other obligor on the Subordinated Securities shall mean every Person who,
within one year prior to the time as of which the determination is made, has
purchased from the Company or any other obligor on the Subordinated Securities
with a view to, or has offered or sold for the Company or any other obligor on
the Subordinated Securities in connection with, the distribution of any security
of the Company or any other obligor on the Subordinated Securities outstanding
at such time, or has participated or has had a direct or indirect participation
in any such undertaking, or has participated or has had a participation in the
direct or indirect underwriting of
51
any such undertaking, but such term shall not include a Person whose interest
was limited to a commission from an underwriter or dealer not in excess of the
usual and customary distributors' or sellers' commission.
(2) The term "director" shall mean any director of a Company or any
individual performing similar functions with respect to any organization whether
incorporated or unincorporated.
(3) The term "trust" shall include only a trust where the interest or
interests of the beneficiary or beneficiaries are evidenced by a security.
(4) The term "voting security" shall mean any security presently entitling
the owner or Holder thereof to vote in the direction or management of the
affairs of a Person, or any security issued under or pursuant to any trust,
agreement or arrangement whereby a trustee or trustees or agent or agents for
the owner or Holder of such security are presently entitled to vote in the
direction or management of the affairs of a Person.
(5) The term "executive officer" shall mean the president, every
vice-president, every trust officer, the cashier, the secretary and the
treasurer of a Company, and any individual customarily performing similar
functions with respect to any organization whether incorporated or
unincorporated, but shall not include the chairman of the board of directors.
(6) Except for purposes of paragraphs (6), (7), (8) and (9) of subsection
(d) of this Section 7.08, the term "security" or "securities" shall mean any
note, stock, treasury stock, bond, debenture, evidence of indebtedness,
certificate of interest or participation in any profit-sharing agreement,
collateral-trust certificate, pre-organization certificate or subscription,
transferable share, investment contract, voting-trust certificate, certificate
of deposit for a security, fractional undivided interest in oil, gas or other
mineral rights, or, in general, any interest or instrument commonly known as a
"security" or any certificate of interest or participation in, temporary or
interim certificate for, receipt for, guarantee of, or warrant or right to
subscribe to or purchase, any of the foregoing.
(7) For the purpose of subsection (d)(1) of this Section 7.08, the term
"series of securities" or "series" means a series, class or group of securities
issuable under an indenture pursuant to whose terms Holders of one such series
may vote to direct the indenture trustee, or otherwise take action pursuant to a
vote of such holders, separately from holders of another such series; provided,
that "series of securities" or "series" shall not include any series of
securities issuable under an indenture if all such series rank equally and are
wholly unsecured.
The percentages of voting securities and other securities specified in this
Section shall be calculated in accordance with the following provisions:
(A) A specified percentage of the voting securities of the Trustee, the
Company or any other Person referred to in this Section 7.08 (each of whom is
referred to as a "Person" in this paragraph) means such amount of the
outstanding voting securities of such Person as entitles the Holder or Holders
thereof to cast such specified percentage of the aggregate votes which the
Holders of all the outstanding voting securities of such Person are entitled to
cast in the direction or management of the affairs of such Person.
52
(B) A specified percentage of a class of securities of a Person means such
percentage of the aggregate amount of securities of the class outstanding.
(C) The term "amount", when used in regard to securities, means the
principal amount if relating to evidences of indebtedness, the number of shares
if relating to capital shares, and the number of units if relating to any other
kind of security.
(D) The term "outstanding" means issued and not held by or for the account
of the issuer. The following securities shall not be deemed outstanding within
the meaning of this definition:
(i) Subordinated Securities of an issuer held in a sinking fund
relating to securities of the issuer of the same class;
(ii) Subordinated Securities of an issuer held in a sinking fund
relating to another class of securities of the issuer, if the obligation
evidenced by such other class of securities is not in default as to principal or
interest or otherwise;
(iii) Subordinated Securities pledged by the issuer thereof as security
for an obligation of the issuer not in default as to principal or interest or
otherwise; and
(iv) Subordinated Securities held in escrow if placed in escrow by the
issuer thereof; provided, however, that any voting securities of an issuer shall
be deemed outstanding if any Person other than the issuer is entitled to
exercise the voting rights thereof.
(E) A security shall be deemed to be of the same class as another security
if both securities confer upon the Holder or Holders thereof substantially the
same rights and privileges, provided, however, that, in the case of secured
evidences of indebtedness, all of which are issued under a single indenture,
differences in the interest rates or maturity dates of various series thereof
shall not be deemed sufficient to constitute such series different classes, and
provided further that, in the case of unsecured evidences of indebtedness,
differences in the interest rate or maturity dates thereof shall not be deemed
sufficient to constitute them securities of different classes, whether or not
they are issued under a single indenture.
(f) Except in the case of a default in the payment of the principal of or
interest on any Subordinated Securities, or in the payment of any sinking or
purchase fund installment, the Trustee shall not be required to resign as
provided by this Section 7.08 if the Trustee shall have sustained the burden of
proving, on application to the Commission and after opportunity for hearing
thereon, that (i) the default under this Subordinated Indenture may be cured or
waived during a reasonable period and under the procedures described in such
application, and (ii) a stay of the Trustee's duty to resign will not be
inconsistent with the interests of Holders of such series of Subordinated
Securities. The filing of such an application shall automatically stay the
performance of the duty to resign until the Commission orders otherwise. Any
resignation of the Trustee shall become effective only upon the appointment of a
successor trustee and such successor's acceptance of such appointment.
53
SECTION 7.09. Requirements for Eligibility of Trustee. There shall always
be at least one Trustee hereunder. The Trustee hereunder shall at all times be a
Company organized and doing business as a commercial bank under the laws of the
United States of America or any state thereof or of the District of Columbia or
a Company or other Person permitted to act as a trustee by the Commission and,
in each case, authorized under such laws to exercise corporate trust powers,
having (or, in the case of a subsidiary of a bank holding company, its bank
holding company parent shall have) a combined capital and surplus of at least
$50,000,000, and subject to supervision or examination by Federal, State or
District of Columbia authority. If such Company or bank holding company parent
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such Company or
bank holding company parent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. No
obligor on the Subordinated Securities or Person directly or indirectly
controlling, controlled by or under common control with such obligor shall serve
as Trustee. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 7.09, the Trustee shall resign
immediately in the manner and with the effect specified in this Article Seven.
SECTION 7.10. Resignation and Removal of Trustee; Appointment of Successor.
(a) The Trustee, or any trustee or trustees hereafter appointed, may at any time
resign with respect to one or more or all series of Subordinated Securities by
giving written notice of resignation to the Company and (i) if any Unregistered
Subordinated Securities of a series affected are then Outstanding, by giving
notice of such resignation to the Holders thereof, by publication at least once
in an Authorized Newspaper in the Borough of Manhattan, The City of New York,
and at least once in an Authorized Newspaper in London (and, if required by
Section 4.09, at least once in an Authorized Newspaper in Luxembourg), (ii) if
any Unregistered Subordinated Securities of a series affected are then
Outstanding, by mailing notice of such resignation to the Holders thereof who
have filed their names and addresses with the Trustee pursuant to Section
313(c)(2) of the Trust Indenture Act at such addresses as were so furnished to
the Trustee and (iii) by mailing notice of such resignation to the Holders of
then Outstanding Registered Securities of each series affected at their
addresses as they shall appear on the registry books. Upon receiving such notice
of resignation, the Company shall promptly appoint a successor trustee or
trustees with respect to the applicable series by written instrument in
duplicate, executed by authority of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee or trustees. If no successor trustee shall have been so
appointed with respect to any series and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee, or any Subordinated Securityholder who has been a bona fide Holder of a
Subordinated Security or Subordinated Securities of the applicable series for at
least six months may, subject to the provisions of Section 5.12, 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 fail to comply with the provisions of subsection
(a) of Section 7.08 after written request therefor by the Company or by any
Subordinated
54
Securityholder who has been a bona fide Holder of a Subordinated Security or
Subordinated Securities of the applicable series for at least six months; or
(2) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.09 and shall fail to resign after written request
therefor by the Company or by any such Subordinated Securityholder; or
(3) the Trustee shall become incapable of acting, or shall be adjudged
a bankrupt or insolvent, or a receiver of the Trustee or of its property shall
be appointed, or any public officer shall take charge or control of the Trustee
or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation; or
(4) the Company shall determine that the Trustee has failed to perform
its obligations under this Subordinated Indenture in any material respect, then,
in any such case, the Company may remove the Trustee and appoint a successor
trustee by written instrument executed by an authorized officer of the Company,
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
6.11, any Subordinated Securityholder who has been a bona fide Holder of a
Subordinated Security or Subordinated Securities of the affected series for at
least six months may, on such Person's behalf and on behalf of all others
similarly situated, petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor trustee with respect to such
series. 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 principal amount of the Subordinated
Securities Outstanding (determined as provided in Section 8.04) may at any time
remove the Trustee and appoint a successor trustee by written instrument or
instruments signed by such Holders or their attorneys-in-fact duly authorized,
or by the affidavits of the permanent chairman and secretary of a meeting of the
Subordinated Securityholders evidencing the vote upon a resolution or
resolutions submitted thereto with respect to such removal and appointment (as
provided in Article Nine), and by delivery thereof to the Trustee so removed, to
the successor trustee and to the Company.
(d) Any resignation or removal of the Trustee and any appointment of a
successor trustee pursuant to any of the provisions of this Section 7.10 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 7.11.
SECTION 7.11. Acceptance of Appointment by Successor Trustee. Any successor
trustee appointed as provided in Section 7.10 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 with respect to such series 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 7.06, execute and deliver an instrument
transferring to such successor trustee all the rights and powers with respect to
the trustee so
55
ceasing to act. Upon written 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 to secure any amounts then due it
pursuant to the provisions of Section 7.06.
No successor trustee shall accept appointment as provided in this Section
7.11 unless at the time of such acceptance such successor trustee shall be
qualified under the provisions of Section 7.08 and eligible under the provisions
of Section 7.09.
Upon acceptance of appointment by a successor trustee as provided in this
Section 7.11, the Company shall give notice thereof (a) if any Unregistered
Subordinated Securities of a series affected are then Outstanding, to the
Holders thereof, by publication of such notice at least once in an Authorized
Newspaper in the Borough of Manhattan, The City of New York and at least once in
an Authorized Newspaper in London (and, if required by Section 3.09, at least
once in an Authorized Newspaper in Luxembourg), (b) if any Unregistered
Subordinated Securities of a series affected are then Outstanding, to the
Holders thereof who have filed their names and addresses with the Trustee
pursuant to Section 313(c)(2) of the Trust Indenture Act, by mailing such notice
to such Holders at such addresses as were so furnished to the Trustee (and the
Trustee shall make such information available to the Company for such purpose)
and (c) to the Holders of Registered Subordinated Securities of each series
affected, by mailing such notice to such Holders at their addresses as they
shall appear on the registry books. If the acceptance of appointment is
substantially contemporaneous with the resignation, then the notice called for
by the preceding sentence may be combined with the notice called for by Section
7.10. If the Company fails to give such notice within ten days after acceptance
of appointment by the successor trustee, the successor trustee shall cause such
notice to be given at the expense of the Company.
SECTION 7.12. Successor to Trustee by Merger, Consolidation or Succession
to Business. Any Company into which the Trustee may be merged or converted or
with which it may be consolidated, or any Company resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
Company succeeding to all or substantially all of the corporate trust business
of the Trustee (including the administration of the trust created by this
Indenture), shall be the successor of the Trustee hereunder, provided such
Company shall be qualified under the provisions of Section 7.08 and eligible
under the provisions of Section 7.09, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.
In case at the time such successor to the Trustee shall succeed to the
trusts created by this Subordinated Indenture any of the Subordinated Securities
shall have been authenticated but not delivered, any such successor to the
Trustee may adopt the certificate of authentication of any predecessor Trustee,
and deliver such Subordinated Securities so authenticated; and in case at that
time any of the Subordinated Securities shall not have been authenticated, any
successor to the Trustee may authenticate such Subordinated Securities either in
the name of any predecessor 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 Subordinated Securities or in this Subordinated 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 to authenticate
56
Subordinated Securities in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, conversion or consolidation.
SECTION 7.13. Preferential Collection of Claims Against Company. (a)
Subject to the provisions of subsection (b) of this Section 7.13, if the Trustee
shall be or shall become a creditor, directly or indirectly, secured or
unsecured, of the Company or any other obligor on the Subordinated Securities
within three months prior to a default, as defined in subsection (c) of this
Section 7.13, or subsequent to such a default, then, unless and until such
default shall be cured, the Trustee shall set apart and hold in a special
account for the benefit of the Trustee individually, the Holders of the
Subordinated Securities for which it is acting as Trustee, and the holders of
other indenture securities (as defined in subsection (c) of this Section 7.13):
(1) an amount equal to any and all reductions in the amount due and
owing upon any claim as such creditor in respect of principal or interest,
effected after the beginning of such three months' period, and valid as against
the Company or such other obligor on the Subordinated Securities and its other
creditors, except any such reduction resulting from the receipt or disposition
of any property described in paragraph (2) of this subsection, or from the
exercise of any right of set-off which the Trustee could have exercised if a
petition in bankruptcy had been filed by or against the Company or such other
obligor on the Subordinated Securities upon the date of such default; and
(2) all property received by the Trustee in respect of any claims as
such creditor, either as security therefor, or in satisfaction or composition
thereof, or otherwise, after the beginning of such three months' period, or an
amount equal to the proceeds of any such property if disposed of, subject,
however, to the rights, if any, of the Company or such other obligor on the
Subordinated Securities and their respective other creditors in such property or
such proceeds.
Nothing herein contained, however, shall affect the right of the Trustee:
(A) to retain for its own account (i) payments made on account of any
such claim by any Person (other than the Company or such other obligor on the
Subordinated Securities) who is liable thereon, and (ii) the proceeds of the
bona fide sale of any such claim by the Trustee to a third Person, and (iii)
distributions made in cash, securities or other property in respect of claims
filed against the Company or such other obligor on the Subordinated Securities
in bankruptcy or receivership or in proceedings for reorganization pursuant to
Title 11 of the United States Code or applicable State laws;
(B) to realize, for its own account, upon any property held by it as
security for any such claim, if such property was so held prior to the beginning
of such three months' period;
(C) to realize, for its own account, but only to the extent of the claim
hereinafter mentioned, upon any property held by it as security for any such
claim, if such claim was created after the beginning of such three months'
period and such property was received as security therefor simultaneously with
the creation thereof, and if the Trustee shall sustain the burden of proving
that at the time such property was so received, the Trustee had no reasonable
57
cause to believe that a default, as defined in subsection (c) of this Section
7.13, would occur within three months; or
(D) to receive payment on any claim referred to in paragraph (B) or (C),
against the release of any property held as security for such claim as provided
in such paragraph (B) or (C), as the case may be, to the extent of the fair
value of such property.
For the purposes of paragraphs (B), (C) and (D), property substituted after
the beginning of such three months' period for property held as security at the
time of such substitution shall, to the extent of the fair value of the property
released, have the same status as the property released, and to the extent that
any claim referred to in any of such paragraphs is created in renewal of or in
substitution for or for the purpose of repaying or refunding any preexisting
claim of the Trustee as such creditor, such claim shall have the same status as
such preexisting claim.
If the Trustee shall be required to account, the funds and property held in
such special account and the proceeds thereof shall be apportioned among the
Trustee, the Holders of Subordinated Securities for which it is acting as
Trustee, and the holders of other indenture securities in such manner that the
Trustee, such Subordinated Securityholders and the holders of other indenture
securities realize, as a result of payments from such special account and
payments of dividends on claims filed against the Company or such other obligor
on the Subordinated Securities in bankruptcy or receivership or in proceedings
for reorganization pursuant to Title 11 of the United States Code or applicable
State law, the same percentage of their respective claims, figured before
crediting to the claim of the Trustee anything on account of the receipt by it
from the Company or such other obligor on the Subordinated Securities of the
funds and property in such special account and before crediting to the
respective claims of the Trustee, such Subordinated Securityholders, and the
holders of other indenture securities dividends on claims filed against the
Company or such other obligor on the Subordinated Securities in bankruptcy or
receivership or in proceedings for reorganization pursuant to Title 11 of the
United States Code or applicable State law, but after crediting thereon receipts
on account of the indebtedness represented by their respective claims from all
sources other than from such dividends and from the funds and property so held
in such special account. As used in this paragraph, with respect to any claim,
the term "dividends" shall include any distribution with respect to such claim
in bankruptcy or receivership or in proceedings for reorganization pursuant to
Title 11 of the United States Code or applicable State law, whether such
distribution is made in cash, securities or other property, but shall not
include any such distribution with respect to the secured portion, if any, of
such claim. The court in which such bankruptcy, receivership or proceeding for
reorganization is pending shall have jurisdiction (i) to apportion among the
Trustee, such Subordinated Securityholders, and the holders of other indenture
securities, in accordance with the provisions of this paragraph, the funds and
property held in such special account and the proceeds thereof, or (ii) in lieu
of such apportionment in whole or in part, to give to the provisions of this
paragraph due consideration in determining the fairness of the distributions to
be made to the Trustee, such Subordinated Securityholders and the holders of
other indenture securities with respect to their respective claims, in which
event it shall not be necessary to liquidate or to appraise the value of any
securities or other property held in such special account or as security for any
such claim, or to make a specific allocation of such distributions as between
the secured and unsecured portions of such claim, or otherwise to apply the
provisions of this paragraph as a mathematical formula.
58
Any Trustee who has resigned or been removed after the beginning of such
three months' period shall be subject to the provisions of this subsection (a)
as though such resignation or removal had not occurred. If any Trustee has
resigned or been removed prior to the beginning of such three months' period, it
shall be subject to the provisions of this subsection (a) if and only if the
following conditions exist:
(i) the receipt of property or reduction of claim which would have
given rise to the obligation to account, if such Trustee had continued, as
trustee, occurred after the beginning of such three months' period; and
(ii) such receipt of property or reduction of claim occurred within
three months after such resignation or removal.
In every case commenced under the Bankruptcy Act of 1898, or any
amendment thereto enacted prior to November 6, 1978, all references to periods
of three months shall be deemed to be references to periods of four months.
(b) There shall be excluded from the operation of subsection (a) of this
Section 7.13 a creditor relationship arising from:
(1) the ownership or acquisition of securities issued under any
indenture, or any security or securities having a maturity of one year or more
at the time of acquisition by the Trustee;
(2) advances authorized by a receivership or bankruptcy court of
competent jurisdiction, or by this Subordinated Indenture, for the purpose of
preserving any property which shall at any time be subject to the lien of this
Subordinated Indenture or of discharging tax liens or other prior liens or
encumbrances thereon, if notice of such advance and of the circumstances
surrounding the making thereof is given to the Subordinated Securityholders at
the time and in the manner provided in Section 5.04(c) with respect to reports
pursuant to subsections (a) and (b) thereof, respectively;
(3) disbursements made in the ordinary course of business in the
capacity of trustee under an indenture, transfer agent, registrar, custodian,
paying agent, fiscal agent or depositary, or other similar capacity;
(4) an indebtedness created as a result of services rendered or premises
rented, or an indebtedness created as a result of goods or securities sold in a
cash transaction as defined in subsection (c) of this Section 7.13;
(5) the ownership of stock or of other securities of a Company organized
under the provisions of Section 25(a) of the Federal Reserve Act, as amended,
which is directly or indirectly a creditor of the Company or any other obligor
on the Subordinated Securities; and
(6) the acquisition, ownership, acceptance or negotiation of any drafts,
bills of exchange, acceptances or obligations which fall within the
classification of self-liquidating paper as defined in subsection (c) of this
Section 7.13.
59
(c) As used in this Section 7.13 the following terms shall be accorded the
following definitions:
(1) the term "default" shall mean any failure to make payment in full of
the principal of or interest on any of the Subordinated Securities or on the
other indenture securities when and as such principal or interest becomes due
and payable.
(2) the term "other indenture securities" shall mean securities upon
which the Company or any other obligor on the Subordinated Securities is an
"obligor" (as defined in the Trust Indenture Act) outstanding under any other
indenture (A) under which the Trustee is also trustee, (B) which contains
provisions substantially similar to the provisions of subsection (a) of this
Section 7.13, and (C) under which a default exists at the time of the
apportionment of the funds and property held in said special account.
(3) the term "cash transaction" shall mean any transaction in which full
payment for goods or securities sold is made within seven days after delivery of
the goods or securities in currency or in checks or other orders drawn upon
banks or bankers and payable upon demand.
(4) the term "self-liquidating paper" shall mean any draft, xxxx of
exchange, acceptance or obligation which is made, drawn, negotiated or incurred
by the Company or any other obligor on the Subordinated Securities for the
purpose of financing the purchase, processing, manufacture, shipment, storage or
sale of goods, wares or merchandise and which is secured by documents evidencing
title to, possession of, or a lien upon, the goods, wares or merchandise or the
receivables or proceeds arising from the sale of the goods, wares or merchandise
previously constituting the security, provided the security is received by the
Trustee simultaneously with the creation of the creditor relationship with the
Company or any other obligor on the Subordinated Securities arising from the
making, drawing, negotiating or incurring of the draft, xxxx of exchange,
acceptance or obligation.
SECTION 7.14. Appointment of Authenticating Agent. As long as any
Subordinated Securities of a series remain Outstanding, the Trustee may, by an
instrument in writing, appoint with the approval of the Company an
authenticating agent (the "Authenticating Agent") which shall be authorized to
act on behalf of the Trustee to authenticate Subordinated Securities, including
Subordinated Securities issued upon exchange, registration of transfer, partial
redemption or pursuant to Section 2.09. Subordinated Securities of each such
series authenticated by such Authenticating Agent shall be entitled to the
benefits of this Subordinated Indenture and shall be valid and obligatory for
all purposes as if authenticated by the Trustee. Whenever reference is made in
this Subordinated Indenture to the authentication and delivery of Subordinated
Securities of any series by the Trustee or to the Trustee's Certificate of
Authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent for such series and
a Certificate of Authentication executed on behalf of the Trustee by such
Authenticating Agent. Such Authenticating Agent shall at all times be a
corporation organized and doing business under the laws of the United States of
America or of any State, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $45,000,000
(determined as (or in the case of a subsidiary of a bank holding company, its
bank holding company parent shall have) provided in
60
Section 7.09 with respect to the Trustee) and subject to supervision or
examination by Federal or State authority.
Any corporation into which any Authenticating Agent may be merged or
converted, or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which any Authenticating Agent
(including the agency contemplated by this Indenture) shall be a party, or any
corporation succeeding to the corporate agency business of any Authenticating
Agent, shall continue to be the authenticating Agent with respect to all series
of Subordinated Securities for which it served as Authenticating Agent without
the execution or filing of any paper or any further act on the part of the
Trustee or such Authenticating Agent. Any Authenticating Agent may at any time,
and if it shall cease to be eligible shall, resign by giving written notice of
resignation to the Trustee and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or
in case in any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 7.14 with respect to one or more
series of Subordinated Securities, the Trustee shall upon receipt of a Company
Order appoint a successor Authenticating Agent and the Company shall provide
notice of such appointment to all Holders of Subordinated Securities of such
series in the manner and to the extent provided in Section 13.02. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all rights, powers, duties and responsibilities of its predecessor
hereunder, with like effect as if originally named as Authenticating Agent. The
Company agrees to pay to the Authenticating Agent for such series from time to
time reasonable compensation. The Authenticating Agent for the Subordinated
Securities of any series shall have no responsibility or liability for any
action taken by it as such at the direction of the Trustee.
If an appointment is made with respect to one or more series pursuant to
this Section, the Subordinated Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication substantially in the following form:
This is one of the Subordinated Securities described in the
within-mentioned Subordinated Indenture.
U.S. Bank National Association, as Trustee
By
----------------------------------------
As Authenticating Agent
By
----------------------------------------
Authorized Signatory
Sections 7.02, 7.03, 7.04, 7.06 and 8.03 shall be applicable to any
Authenticating Agent.
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ARTICLE EIGHT
CONCERNING THE SUBORDINATED SECURITYHOLDERS
SECTION 8.01. Evidence of Action by Subordinated Securityholders. Whenever
in this Subordinated Indenture it is provided that the Holders of a specified
percentage in principal amount of the Subordinated Securities of any or all
series 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 such Subordinated
Securityholders in Person or by agent or proxy appointed in writing, or (b) by
the record of such Holders of Subordinated Securities voting in favor thereof at
any meeting of such Subordinated Securityholders duly called and held in
accordance with the provisions of Article Nine, or (c) by a combination of such
instrument or instruments and any such record of such a meeting of such
Subordinated Securityholders.
SECTION 8.02. Proof of Execution of Instruments and of Holding of
Subordinated Securities. Subject to the provisions of Sections 7.01, 7.02 and
9.05, proof of the execution of any instrument by a Subordinated Securityholder
or such Holder's agent or proxy and proof of the holding by any Person of any of
the Subordinated Securities shall be sufficient if made in the following manner:
(a) The fact and date of the execution by any such Person of any instrument
may be proved in any reasonable manner acceptable to the Trustee;
(b) The ownership of Subordinated Securities of any series (including
Registered Global Subordinated Securities) shall be proved by the Register of
such Subordinated Securities of such series, or by certificates of the
Subordinated Security registrar or registrars thereof.
The Trustee shall not be bound to recognize any Person as a Subordinated
Securityholder unless and until such Person's title to the Subordinated
Securities held by it is proved in the manner in this Article Eight provided.
The record of any Subordinated Securityholders' meeting shall be proved in
the manner provided in Section 9.06.
The Trustee may accept such other proof or require such additional proof of
any matter referred to in this Section 8.02 as it shall deem reasonable.
SECTION 8.03. Who May be Deemed Owners of Subordinated Securities. Prior to
due presentment for transfer of any Subordinated Security, the Company, the
Trustee and any agent of the Company or the Trustee may deem and treat the
Person in whose name such Subordinated Security shall be registered upon the
Register of Subordinated Securities of the series of which such Subordinated
Security is a part as the absolute owner of such Subordinated Security (whether
or not such Subordinated Security shall be overdue and notwithstanding any
notation of ownership or other writing thereon) for the purpose of receiving
payment of or on account of the principal of and interest, subject to the
provisions of this Subordinated Indenture, on such
62
Subordinated Security and for all other purposes; and neither the Company nor
the Trustee nor any agent of the Company or the Trustee shall be affected by any
notice to the contrary. All such payments so made to any such Holder for the
time being, or upon such Holder's order, shall be valid, and, to the extent of
the sum or sums so paid, effectual to satisfy and discharge the liability of
moneys payable upon any such Subordinated Security. The Company, the Trustee and
any agent of the Company or the Trustee may treat the Holder of any Unregistered
Subordinated Security and the Holder of any Coupon as the absolute owner of such
Unregistered Subordinated Security or Coupon (whether or not such Unregistered
Subordinated Security or Coupon shall be overdue) for the purpose of receiving
payment thereof or on account thereof and for all other purposes and neither the
Company, the Trustee, nor any agent of the Company or the Trustee shall be
affected by any notice to the contrary. All such payments so made to any such
person, or upon his order, shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for moneys payable
upon any such Unregistered Subordinated Security or Coupon.
If the Subordinated Securities of any series are issued in the form of one
or more Registered Global Subordinated Securities, the Depository therefor may
grant proxies to Persons having a beneficial ownership in such Registered Global
Subordinated Security or Subordinated Securities for purposes of voting or
otherwise responding to any request for consent, waiver or other action which
the Holder of such Registered Subordinated Security is entitled to grant or take
under this Subordinated Indenture and the Trustee shall accept such proxies for
the purposes granted; provided that neither the Trustee nor the Company shall
have any obligation with respect to the grant of or solicitation by the
Depository of such proxies.
SECTION 8.04. Subordinated Securities Owned by the Company or Controlled or
Controlling Persons Disregarded for Certain Purposes. In determining whether the
Holders of the requisite principal amount of Subordinated Securities have
concurred in any demand, direction, request, notice, vote, consent, waiver or
other action under this Subordinated Indenture, Subordinated Securities which
are owned by the Company or any other obligor on the Subordinated Securities or
by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company or any other obligor on the
Subordinated Securities 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
demand, direction, request, notice, vote, consent, waiver or other action, only
Subordinated Securities which a Responsible Officer of the Trustee assigned to
its principal office knows are so owned shall be so disregarded. Subordinated
Securities so owned which have been pledged in good faith may be regarded as
Outstanding for the purposes of this Section 8.04, if the pledgee shall
establish to the satisfaction of the Trustee the pledgee's right to vote such
Subordinated Securities and that the pledgee is not a Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or any such other obligor.
Upon request of the Trustee, the Company shall furnish to the Trustee
promptly an Officer's Certificate listing and identifying all Subordinated
Securities, if any, known by the Company to be owned or held by or for the
account of the Company or any other obligor on the Subordinated Securities or by
any Person directly or indirectly controlling or controlled by or under direct
or indirect common control with the Company or any other obligor on the
63
Subordinated Securities; and, subject to the provisions of Section 7.01, the
Trustee shall be entitled to accept such Officer's Certificate as conclusive
evidence of the facts therein set forth and of the fact that all Subordinated
Securities not listed therein are Outstanding for the purpose of any such
determination.
SECTION 8.05. Instruments Executed by Subordinated Securityholders Bind
Future Holders. At any time prior to (but not after) the evidencing to the
Trustee, as provided in Section 8.01, of the taking of any action by the Holders
of the percentage in principal amount of the Subordinated Securities specified
in this Subordinated Indenture in connection with such action, any Holder of a
Subordinated Security which is shown by the evidence to be included in the
Subordinated Securities the Holders of which have consented to such action may,
by filing written notice with the Trustee at its principal office and upon proof
of holding as provided in Section 8.02, revoke such action so far as concerns
such Subordinated Security. Except as aforesaid any such action taken by the
Holder of any Subordinated Security and any direction, demand, request, notice,
waiver, consent, vote or other action of the Holder of any Subordinated Security
which by any provisions of this Subordinated Indenture is required or permitted
to be given shall be conclusive and binding upon such Holder and upon all future
Holders and owners of such Subordinated Security, and of any Subordinated
Security issued in lieu thereof, irrespective of whether any notation in regard
thereto is made upon such Subordinated Security. Any action taken by the Holders
of the percentage in principal amount of the Subordinated Securities of any or
all series specified in this Subordinated Indenture in connection with such
action shall be conclusively binding upon the Company, the Trustee and the
Holders of all of the Subordinated Securities of such series subject, however,
to the provisions of Section 7.01.
ARTICLE NINE
SUBORDINATED SECURITYHOLDERS' MEETINGS
SECTION 9.01. Purposes for Which Meetings May be Called. A meeting of
Holders of Subordinated Securities of any or all series may be called at any
time and from time to time pursuant to the provisions of this Article for any of
the following purposes:
(a) to give any notice to the Company or to the Trustee, or to give any
directions to the Trustee, or to consent to the waiving of any default hereunder
and its consequences, or to take any other action authorized to be taken by
Holders of Subordinated Securities of any or all series, as the case may be,
pursuant to any of the provisions of Article Six;
(b) to remove the Trustee and appoint a successor trustee pursuant to the
provisions of Article Seven;
(c) to consent to the execution of an indenture or indentures supplemental
hereto pursuant to the provisions of Section 10.02; or
(d) to take any other action authorized to be taken by or on behalf of the
Holders of any specified principal amount of the Subordinated Securities of any
or all series,
64
as the case may be, under any other provision of this Subordinated Indenture or
under applicable law.
SECTION 9.02. Manner of Calling Meetings. The Trustee may at any time call
a meeting of Subordinated Securityholders to take any action specified in
Section 9.01, to be held at such time and at such place in The City of New York,
New York, as the Trustee shall determine. Notice of every meeting of
Subordinated Securityholders, setting forth the time and place of such meeting
and in general terms the action proposed to be taken at such meeting, shall be
mailed not less than 20 nor more than 60 days prior to the date fixed for the
meeting.
SECTION 9.03. Call of Meeting by the Company or Subordinated
Securityholders. In case at any time the Company pursuant to a resolution of its
Board of Directors, or the Holders of not less than ten percent in principal
amount of the Subordinated Securities of any or all series, as the case may be,
then Outstanding, shall have requested the Trustee to call a meeting of Holders
of Subordinated Securities of any or all series, as the case may be, to take any
action authorized in Section 9.01 by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall not
have mailed notice of such meeting within 20 days after receipt of such request,
then the Company or such Holders of Subordinated Securities in the amount above
specified may determine the time and place in either the City and County of Los
Angeles, California or The City of New York, New York for such meeting and may
call such meeting to take any action authorized in Section 9.01, by mailing (and
publishing, if required) notice thereof as provided in Section 9.02.
SECTION 9.04. Who May Attend and Vote at Meetings. To be entitled to vote
at any meeting of Subordinated Securityholders a Person shall (a) be a Holder of
one or more Subordinated Securities with respect to which the meeting is being
held; or (b) be a Person appointed by an instrument in writing as proxy by such
Holder of one or more Subordinated Securities. The only Persons who shall be
entitled to be present or to speak at any meeting of Subordinated
Securityholders shall be the Persons entitled to vote at such meeting and their
counsel and any representatives of the Trustee and its counsel and any
representatives of the Company and its counsel.
SECTION 9.05. Regulations May be Made by Trustee; Conduct of the Meeting;
Voting Rights - Adjournment. Notwithstanding any other provisions of this
Subordinated Indenture, the Trustee may make such reasonable regulations as it
may deem advisable for any meeting of Subordinated Securityholders, in regard to
proof of the holding of Subordinated Securities and of the appointment of
proxies, and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall think fit. Except as otherwise permitted or required by any such
regulations, the holding of Subordinated Securities shall be proved in the
manner specified in Section 8.02. and the appointment of any proxy shall be
proved in the manner specified in said Section 8.02; provided, however, that
such regulations may provide that written instruments appointing proxies regular
on their face, may be presumed valid and genuine without the proof hereinabove
or in said Section 8.02 specified.
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
Subordinated
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Securityholders as provided in Section 9.03, in which case the Company or the
Subordinated Securityholders 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 majority vote of the meeting.
Subject to the provisions of Section 8.04, at any meeting each Subordinated
Securityholder or proxy shall be entitled to one vote for each $1,000 (or [Euro]
1,000) principal amount (in the case of Original Issue Discount Subordinated
Securities, such principal amount shall be equal to such portion of the
principal amount as may be specified in the terms of such series) of
Subordinated Securities held or represented by such Holder; provided, however,
that no vote shall be cast or counted at any meeting in respect of any
Subordinated Security challenged as not Outstanding and ruled by the chairman of
the meeting to be not Outstanding. The chairman of the meeting shall have no
right to vote other than by virtue of Subordinated Securities held by such
Person or instruments in writing as aforesaid duly designating such Person as
the Person to vote on behalf of other Subordinated Securityholders. Any meeting
of Subordinated Securityholders duly called pursuant to the provisions of
Section 9.02 or 9.03 may be adjourned from time to time, and the meeting may be
held so adjourned without further notice.
At any meeting of Subordinated Securityholders, the presence of Persons
holding or representing Subordinated Securities in principal amount sufficient
to take action on the business for the transaction of which such meeting was
called shall constitute a quorum, but, if less than a quorum is present, the
Persons holding or representing a majority in principal amount of the
Subordinated Securities represented at the meeting may adjourn such meeting with
the same effect for all intents and purposes, as though a quorum had been
present.
SECTION 9.06. Manner of Voting at Meetings and Record to be Kept. The vote
upon any resolution submitted to any meeting of Subordinated Securityholders
shall be by written ballots on which shall be subscribed the signatures of the
Holders of Subordinated Securities or of their representatives by proxy and the
principal amount or principal amounts of the Subordinated Securities held or
represented by them. The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or against
any resolution and who shall make and file with the secretary of the meeting
their verified written reports in duplicate of all votes cast at the meeting. A
record in duplicate of the proceedings of each meeting of Subordinated
Securityholders shall be prepared by the secretary of the meeting and there
shall be attached to said record the original reports of the inspectors of votes
on any vote by ballot taken thereat and affidavits by one or more Persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was mailed as provided in Section 9.02. The record
shall show the principal amount or principal amounts of the Subordinated
Securities voting in favor of or against any resolution. The record shall be
signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one copy thereof shall be delivered to the Company and the other
to the Trustee to be preserved by the Trustee.
Any record so signed and verified shall be conclusive evidence of the
matters therein stated.
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SECTION 9.07. Exercise of Rights of Trustee and Subordinated
Securityholders Not to be Hindered or Delayed. Nothing in this Article Nine
contained shall be deemed or construed to authorize or permit, by reason of any
call of a meeting of Subordinated Securityholders or any rights expressly or
impliedly conferred hereunder to make such call, any hindrances or delay in the
exercise of any right or rights conferred upon or reserved to the Trustee or to
the Subordinated Securityholders under any of the provisions of this
Subordinated Indenture or of the Subordinated Securities.
ARTICLE TEN
SUPPLEMENTAL SUBORDINATED INDENTURES
SECTION 10.01. Purposes for Which Supplemental Subordinated Indentures May
be Entered into Without Consent of Subordinated Securityholders. Without the
consent of the Holders of any Subordinated Securities, the Company and the
Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall comply with the provisions of the
Trust Indenture Act as then in effect) for one or more of the following
purposes:
(a) to convey, transfer, assign, mortgage or pledge to the Trustee as
security for the Subordinated Securities of one or more series any property or
assets;
(b) if deemed appropriate by the Company or required by law, to
evidence the succession of another Company to the Company or successive
successions and the assumption by the successor Company of the covenants,
agreements and obligations of the Company pursuant to Article Four hereof;
(c) to add to the covenants of the Company such further covenants,
restrictions or conditions as its Board of Directors and the Trustee shall
consider to be for the protection of the Holders of all or any series of
Subordinated Securities or Coupons (and if such covenants, restrictions or
conditions are to be for the benefit of less than all series of Subordinated
Securities, stating that such covenants, restrictions or conditions are
expressly being included solely for the benefit of such series), and to make the
occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions or conditions an Event of Default permitting
the enforcement of all or any of the several remedies provided in this
Subordinated Indenture as herein set forth; provided, however, that in respect
to any such additional covenant, restriction or condition such Supplemental
Subordinated 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;
(d) to add or change any of the provisions of this Subordinated
Indenture to such extent as shall be necessary to facilitate the issuance of
Subordinated Securities in (i) global form or (ii) bearer form, registerable or
not registerable as to principal or principal and interest, and with or without
coupons;
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(e) to change or eliminate any of the provisions of this Subordinated
Indenture; provided, however, that any such change or elimination shall become
effective only when there is no Subordinated Security of any series Outstanding
created prior to the execution of such Supplemental Subordinated Indenture which
is entitled to the benefit of such provision;
(f) to establish the form or terms of Subordinated Securities of any
series or the Coupons appertaining to such Subordinated Securities as permitted
by Sections 2.01 and 2.03;
(g) to appoint, at the request of the Trustee, a successor Trustee for
a particular series of Subordinated Securities to act as such pursuant to the
provisions of this Subordinated Indenture and to add to or change the provisions
of this Subordinated Indenture to such extent as shall be necessary to
facilitate the performance of the duties of such trustee; and
(h) to cure any ambiguity or to correct or supplement any provisions
contained herein or in any Supplemental Subordinated Indenture which may be
defective or inconsistent with any other provision contained herein or in any
Supplemental Subordinated Indenture, or to make such other provisions in regard
to matters or questions arising under this Subordinated Indenture or any
Supplemental Subordinated Indenture which shall not adversely affect the
interests of the Holders of the Subordinated Securities or Coupons.
SECTION 10.02. Modification of Subordinated Indenture With Consent of
Holders of Subordinated Securities. With the consent (evidenced as provided in
Section 8.01) of the Holders of not less than a majority in principal amount of
the Subordinated Securities of all series at the time Outstanding (determined as
provided in Section 8.04) affected by such Supplemental Subordinated Indenture
(voting as one class), the Company and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto (which shall
comply with the provisions of the Trust Indenture Act as then in effect) for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Subordinated Indenture or of any Supplemental
Subordinated Indenture or of modifying in any manner the rights of the Holders
of the Subordinated Securities of each such series or the Coupons appertaining
to such Subordinated Securities; provided, however, that no such Supplemental
Subordinated Indenture shall, without the consent of the Holders of each
Outstanding Subordinated Security affect thereby:
(a) change the Stated Maturity of the principal of, or any installment
of principal of or interest on, any Subordinated Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Subordinated Security or any other Subordinated Security
which would be due and payable upon a declaration of acceleration of the Stated
Maturity thereof pursuant to Section 6.01, or change any place of payment where,
or the coin or currency in which, any Subordinated Security or any premium or
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the date fixed for redemption), or modify
the provisions of this Subordinated Indenture with respect to this subordination
of the Subordinated Securities in a manner adverse to the Holders, or
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(b) Reduce the percentage in principal amount of the Outstanding
Subordinated Securities the consent of the Holders of which is required for any
such Supplemental Subordinated Indenture, or the consent of the Holders of which
is required for any waiver (of compliance with certain provisions of this
Subordinated Indenture or certain defaults hereunder and their consequences)
provided for in this Subordinated Indenture or
(c) Change the time of payment or reduce the amount of any minimum
sinking account or fund payment or
(d) Modify any of the provisions of this Section 10.02, except to
increase any such percentage or to provide that certain other provisions of this
Subordinated Indenture cannot be modified or waived without the consent of the
Holder of each Subordinated Security affected thereby.
A supplemental indenture which changes or eliminates any covenant or other
provision of this Subordinated Indenture which has expressly been included
solely for the benefit of one or more particular series of Subordinated
Securities, or which modifies the rights of Holders of Subordinated Securities
of such series, or of Coupons appertaining to such Subordinated Securities, with
respect to such covenant or provision, shall be deemed not to affect the rights
under this Subordinated Indenture of the Holders of Subordinated Securities of
any other series or of the Coupons appertaining to such Subordinated Securities.
Upon the request of the Company, accompanied by a copy of a resolution of
the Board of Directors (which resolution may provide general terms or parameters
for such action and may provide that the specific terms of such action may be
determined in accordance with or pursuant to a Company Order) certified by the
secretary or an assistant secretary of the Company authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of the Holders of the Subordinated Securities as
aforesaid and other documents, if any, required by Section 8.01, 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 Subordinated 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 Securityholders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such consent shall approve the substance thereof.
Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions to this Section, the Trustee
shall give notice thereof (i) to the Holders of then Outstanding Registered
Subordinated Securities of each series affected thereby, by mailing a notice
thereof by first-class mail to such Holders at their addresses as they shall
appear on the Security Register, (ii) if any Unregistered Subordinated
Securities of a series affected thereby are then Outstanding, to the Holders
thereof who have filed their names and addresses with the Trustee pursuant to
Section 313(c)(2) of the Trust Indenture Act, by mailing a notice thereof by
first-class mail to such Holders at such addresses as were so furnished to the
Trustee and (iii) if any Unregistered Subordinated Securities of a series
affected thereby are then
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Outstanding, to all Holders thereof, by publication of a notice thereof at least
once in an Authorized Newspaper in the Borough of Manhattan, The City of New
York and at least once in an Authorized Newspaper in London (and, if required by
Section 4.09, at least once in an Authorized Newspaper in Luxembourg), and in
each case such notice shall set forth in general terms the substance of such
supplemental indenture. Any failure of the Company to give such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.
SECTION 10.03. Effect of Supplemental Subordinated Indentures. Upon the
execution of any Supplemental Subordinated Indenture pursuant to the provisions
of this Article Ten, this Subordinated Indenture shall be and be deemed to be
modified and amended in accordance therewith and the respective rights,
limitations of rights, obligations, duties and immunities under this
Subordinated Indenture of the Trustee, the Company and the Holders of
Subordinated Securities 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 Subordinated Indenture shall
be and be deemed to be part of the terms and conditions of this Subordinated
Indenture for any and all purposes.
The Trustee shall be entitled to receive, and subject to the provisions of
Section 7.01 shall be entitled to rely upon, an Opinion of Counsel as conclusive
evidence that any such Supplemental Subordinated Indenture complies with the
provisions of this Article Ten and that the Subordinated Securities affected by
the Supplemental Subordinated Indenture, when such Subordinated Securities are
authenticated and delivered by the Trustee and executed and issued by the
Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will be valid and binding obligations of the Company, except as any
rights thereunder may be limited by bankruptcy, insolvency and other similar
laws affecting the enforcement of creditors' rights generally and by general
equity principles.
SECTION 10.04. Subordinated Securities May Bear Notation of Changes by
Supplemental Subordinated Indentures. Subordinated Securities authenticated and
delivered after the execution of any Supplemental Subordinated Indenture
pursuant to the provisions of this Article Ten, or after any action taken at a
Subordinated Securityholders' meeting pursuant to Article Nine, may bear a
notation in form approved by the Trustee as to any matter provided for in such
Supplemental Subordinated Indenture or as to any action taken at any such
meeting. If the Company or the Trustee shall so determine, new Subordinated
Securities so modified as to conform, in the opinion of the Trustee and the
Company, to any modification of this Subordinated Indenture contained in any
such Supplemental Subordinated Indenture may be prepared by the Company,
authenticated by the Trustee and delivered in exchange for the Subordinated
Securities then Outstanding.
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ARTICLE ELEVEN
DISCHARGE; DEFEASANCE
SECTION 11.01. Satisfaction and Discharge of Subordinated Indenture.
(A) If at any time (i) the Company shall have paid or caused to be
paid the principal of and interest on all the Subordinated Securities of any
series Outstanding hereunder and all unmatured Coupons appertaining thereto
(other than Subordinated Securities of such series and Coupons appertaining
thereto which have been destroyed, lost or stolen and which have been replaced
or paid as provided in Section 2.09) as and when the same shall have become due
and payable, or (ii) the Company shall have delivered to the Trustee for
cancellation all Subordinated Securities of any series theretofore authenticated
and all unmatured Coupons appertaining thereto (other than any Subordinated
Securities of such series and Coupons appertaining thereto which shall have been
destroyed, lost or stolen and which shall have been replaced or paid as provided
in Section 2.09) or (iii) in the case of any series of Subordinated Securities
where the exact amount (including the currency of payment) of principal of and
interest due on which can be determined at the time of making the deposit
referred to in clause (b) below, (a) all the Subordinated Securities of such
series and all unmatured Coupons appertaining thereto not theretofore 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 (b) the Company shall have irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust the
entire amount in (i) cash (other than moneys repaid by the Trustee or any Paying
Agent to the Company in accordance with Section 11.04), (ii) in the case of any
series of Subordinated Securities the payments on which may only be made in
Dollars, direct obligations of the United States of America, backed by its full
faith and credit ("U.S. Government Obligations"), maturing as to principal and
interest at such times and in such amounts as will insure the availability of
cash sufficient to pay at such Maturity or upon such redemption, as the case may
be, or (iii) a combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay (a) the principal and
interest on all Subordinated Securities of such series and Coupons appertaining
thereto on each date that such principal or interest is due and payable and (b)
any mandatory sinking fund payments on the dates on which such payments are due
and payable in accordance with the terms of the Subordinated Indenture and the
Subordinated Securities of such series; (x) the principal and interest on all
Subordinated Securities of such series and Coupons appertaining thereto on each
date that such principal or interest is due and payable and (y) any mandatory
sinking fund payments on the dates on which such payments are due and payable in
accordance with the terms of the Subordinated Indenture and the Subordinated
Securities of such series; and if, in any such case, the Company shall also pay
or cause to be paid all other sums payable hereunder by the Company, then this
Subordinated Indenture shall cease to be of further effect (except as to (i)
rights of registration of transfer and exchange of Subordinated Securities of
such series and of Coupons appertaining thereto and the Company's right of
optional redemption, if any, (ii) substitution of mutilated, defaced, destroyed,
lost or stolen Subordinated Securities or Coupons, (iii) rights of Holders of
Subordinated Securities and Coupons appertaining thereto to receive payments of
principal thereof and interest thereon, upon the original stated due dates
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therefore (but not upon acceleration), and remaining rights of the Holders to
receive mandatory sinking fund payments, if any, (iv) any optional redemption
rights of such series of Subordinated Securities to the extent to be exercised
to make such call for redemption within one year, (v) the rights, obligations,
duties and immunities of the Trustee hereunder, including those under Section
6.6, (vi) the rights of the Holders of securities of such series and Coupons
appertaining thereto as beneficiaries hereof with respect to the property so
deposited with the Trustee payable to all or any of them, and (vii) the
obligations of the Company under Section 4.03 and the Trustee, on demand of the
Company accompanied by an Officer's Certificate and an Opinion of Counsel and at
the cost and expense of the Company, shall execute proper instruments
acknowledging such satisfaction of and discharging this Subordinated Indenture;
provided, that the rights of Holders of the Subordinated Securities and Coupons
to receive amounts in respect of principal of and interest on the Subordinated
Securities and Coupons held by them shall not be delayed longer than required by
then applicable mandatory rules or policies of any securities exchange upon
which the Subordinated Securities are listed. The Company agrees to reimburse
the Trustee for any costs or expenses thereafter reasonably and properly
incurred and to compensate the Trustee for any services thereafter reasonably
and properly rendered by the Trustee in connection with this Subordinated
Indenture or the Subordinated Securities of such series.
(B) The following provisions shall apply to the Subordinated Securities of
each series unless specifically otherwise provided in an Officer's Certificate
or indenture supplemental hereto provided pursuant to Section 2.03. In addition
to discharge of the Subordinated Indenture pursuant to the next preceding
paragraph, in the case of any series of Subordinated Securities the exact
amounts (including the currency of payment) of principal of and interest due on
which can be determined at the time of making the deposit referred to in clause
(a) below, the Company shall be deemed to have paid and discharged the entire
indebtedness on all the Subordinated Securities of such a series and the Coupons
appertaining thereto on the date of the deposit referred to in clause (a) below,
and the provisions of this Subordinated Indenture with respect to the
Subordinated Securities of such series and Coupons appertaining thereto shall no
longer be in effect (except as to (i) rights of registration of transfer and
exchange of Subordinated Securities of such series and of Coupons appertaining
thereto and the Company's right of optional redemption, if any, (ii)
substitution of mutilated, defaced, destroyed, lost or stolen Subordinated
Securities or Coupons, (iii) rights of Holders of Subordinated Securities and
Coupons appertaining thereto to receive payments of principal thereof and
interest thereon, upon the original stated due dates therefor (but not upon
acceleration), and remaining rights of the Holders to receive mandatory sinking
fund payments, if any, (iv) any optional redemption rights of such series of
Subordinated Securities to the extent to be exercised to make such call for
redemption within one year, (v) the rights, obligations, duties and immunities
of the Trustee hereunder, (vi) the rights of the Holders of Subordinated
Securities of such series and Coupons appertaining thereto as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to all
or any of them and (vii) the obligations of the Company under Section 4.03 and
the Trustee, at the expense of the Company, shall at the Company's request,
execute proper instruments acknowledging the same, if
(a) with reference to this provision the Company has irrevocably
deposited or caused to be irrevocably deposited with the Trustee as trust
funds in trust, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of the
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Subordinated Securities of such series and Coupons appertaining thereto (i)
cash in an amount, or (ii) in the case of any series of Subordinated
Securities the payments on which may only be made in United States Dollars,
U.S. Government Obligations, maturing as to principal and interest at such
times and in such amounts as will insure the availability of cash or (iii)
a combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay (a) the principal
and interest on all Subordinated Securities of such series and Coupons
appertaining thereto on each date that such principal or interest is due
and payable and (b) any mandatory sinking fund payments on the dates on
which such payments are due and payable in accordance with the terms of the
Subordinated Indenture and the Subordinated Securities of such series;
(b) such deposit will not result in a breach or violation of, or
constitute a default under, any agreement or instrument to which the
Company is a party or by which it is bound;
(c) the Company has delivered to the Trustee an Opinion of Counsel
based on the fact that (x) the Company has received from, or there has been
published by, the IRS a ruling or (y) since the date hereof, there has been
a change in the applicable Federal income tax law, in either case to the
effect that, and such opinion shall confirm that, the Holders of the
Subordinated Securities of such series and Coupons appertaining thereto
will not recognize income, gain or loss for United States Federal income
tax purposes as a result of such deposit, defeasance and discharge and will
be subject to United States Federal income tax on the same amount and in
the same manner and at the same times, as would have been the case if such
deposit, defeasance and discharge had not occurred; and
(d) the Company has delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the defeasance contemplated by this
provision have been complied with.
(C) The Company shall be released from its obligations under
Sections 4.02 and unless otherwise provided for in the Board Resolution,
Officer's Certificate or Subordinated Indenture supplemental hereto establishing
such series of Subordinated Securities, from all covenants and other obligations
referred to in Section 2.03(18) or 2.03(20) with respect to such series of
Subordinated Securities, and any Coupons appertaining thereto, outstanding on
and after the date the conditions set forth below are satisfied (hereinafter,
"covenant defeasance"). For this purpose, such covenant defeasance means that,
with respect to the Outstanding Subordinated Securities of any series, the
Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in such Section, whether directly or
indirectly by reason of any reference elsewhere herein to such Section or by
reason of any reference in such Section to any other provision herein or in any
other document and such omission to comply shall not constitute an Event of
Default under Section 6.01, but the remainder of this Subordinated Indenture and
such Subordinated Securities and Coupons shall be unaffected thereby. The
following shall be the conditions to application of this subsection C of this
Section 11.01:
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(a) The Company has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the holders of the Subordinated
Securities of such series and coupons appertaining thereto, (i) cash in an
amount, or (ii) in the case of any series of Subordinated Securities the
payments on which may only be made in United States Dollars, U.S.
Government Obligations maturing as to principal and interest at such times
and in such amounts as will insure the availability of cash or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay (a) the principal and interest on
all Subordinated Securities of such series and Coupons appertaining thereof
and (b) any mandatory sinking fund payments on the day on which such
payments are due and payable in accordance with the terms of the
Subordinated Indenture and the Subordinated Securities of such series;
(b) No Event of Default or event which with notice or lapse of
time or both would become an Event of Default with respect to the
Subordinated Securities shall have occurred and be continuing on the date
of such deposit;
(c) Such covenant defeasance shall not cause the Trustee to have a
conflicting interest as defined in Section 7.08 and for purposes of the
Trust Indenture Act with respect to any securities of the Company;
(d) Such covenant defeasance shall not result in a breach or
violation of, or constitute a default under, this Subordinated
Indenture or any other agreement or instrument to which the Company is a
party or by which it is bound;
(e) Such covenant defeasance shall not cause any Subordinated
Securities then listed on any registered national securities exchange under
the Exchange Act to be delisted;
(f) The Company shall have delivered to the Trustee an Officer's
Certificate and Opinion of Counsel to the effect that the Holders of the
Subordinated Securities of such series and Coupons appertaining thereto
will not recognize income, gain or loss for United States Federal income
tax purposes as a result of such covenant defeasance and will be subject to
United States Federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such covenant
defeasance had not occurred; and
(g) The Company shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the covenant defeasance contemplated by
this provision have been complied with.
SECTION 11.02. Application by Trustee of Funds Deposited for Payment of
Subordinated Securities. Subject to Section 11.04, all moneys deposited with the
Trustee (for other trustee) pursuant to Section 11.01 shall be held in trust and
applied by it to the payment, either directly or through any Paying
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Agent (including the Company acting as its own Paying Agent), to the Holders of
the particular Subordinated Securities of such series and of Coupons
appertaining thereto for the payment or redemption of which such moneys have
been deposited with the Trustee, of all sums due and to become due thereon for
principal and interest; but such money need not be segregated from other funds
except to the extent required by law.
SECTION 11.03. Repayment of Moneys Held by Paying Agent. In connection with
the satisfaction and discharge of this Subordinated Indenture with respect to
Subordinated Securities of any series, all moneys then held by any Paying Agent
under the provisions of this Subordinated Indenture with respect to such series
of Subordinated Securities shall, upon demand of the Company, be repaid to it or
paid to the Trustee and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.
SECTION 11.04. Return of Moneys Held by Trustee and Paying Agent Unclaimed
for Two Years. Any moneys deposited with or paid to the Trustee or any Paying
Agent for the payment of the principal of and any premium and interest on any
Subordinated Security and any series of Coupons attached thereto and not so
applied but remaining unclaimed under applicable law shall be transferred by the
Trustee to the appropriate Persons in accordance with applicable laws, and the
Holder of such Subordinated Security of such series and of any Coupons
appertaining thereto shall thereafter look only to such Persons for any payment
which such Holder may be entitled to collect and all liability of the Trustee
and such Paying Agent with respect to such moneys shall thereupon cease.
SECTION 11.05. Indemnity for U.S. Government of Obligations. The Company
shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to
Section 11.01 or the principal or interest received in respect of such
obligations.
ARTICLE TWELVE
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS
AND DIRECTORS
SECTION 12.01. Incorporators, Stockholders, Officers and Directors of
Company Exempt From Individual Liability. No recourse under or upon any
obligation, covenant or agreement of this Subordinated Indenture, or of any
Subordinated Security, or for any claim based thereon or otherwise in respect
thereof, shall be had against any incorporator, stockholder, officer or
director, as such past, present or future, of the Company, either directly or
through the Company, 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 this Subordinated Indenture and the obligations issued
hereunder are solely corporate obligations, and that no personal liability
whatever shall attach to, or is or shall be incurred by, the incorporators,
stockholders, officers or directors, as such, of the Company because of the
creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Subordinated Indenture or
in any of the Subordinated Securities or implied therefrom; and that any and all
such personal liability of every name and nature, either at common law or in
equity or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, stockholder, officer or director, as such,
because of the creation
75
of the indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Subordinated Indenture or in any of
the Subordinated Securities or implied therefrom are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Subordinated Indenture and the issue of such Subordinated Securities.
ARTICLE THIRTEEN
MISCELLANEOUS PROVISIONS
SECTION 13.01. Successors and Assigns of the Company bound by Subordinated
Indenture. All the covenants, stipulations, promises and agreements in this
Subordinated Indenture contained by or in behalf of the Company shall bind its
successors and assigns, whether so expressed or not.
SECTION 13.02. Notices; Effectiveness. Any notice or demand which by any
provision of this Subordinated Indenture is required or permitted to be given or
served by the Trustee or by the Holders of Subordinated Securities to or on the
Company, or by the Company or by the Holders of Subordinated Securities to the
Trustee or upon the Depository by the Company or the Trustee may be
electronically communicated or hand delivered or sent by overnight courier,
addressed to the relevant party as provided in this Section 13.02.
All communications intended for the Company shall be sent to:
Lexar Media, Inc.
00000 Xxxxxxx Xxxxxxx
Xxxxxxx, XX 00000
Attention: General Counsel
Fax Number: (000) 000-0000
All communications intended for the Trustee shall be sent to:
U.S. Bank National Association
000 Xxxx 0xx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attention: Corporate Trust Services
(Lexar Media, Inc.
Subordinated Securities)
Fax Number: (000) 000-0000
or at any other address of which any of the foregoing shall have notified the
others in any manner prescribed in this Section 13.02.
For all purposes of this Subordinated Indenture, a notice or communication
will be deemed effective:
(a) if delivered by hand or sent by overnight courier, on the day it is
delivered unless (i) that day is not a Business Day in the city specified (a
"Local Business Day") in the address for notice provided by the recipient or
(ii) if delivered after the close of business on a Local Business Day, then on
the next succeeding Local Business Day or
76
(b) if sent by facsimile transmission, on the date transmitted, provided
that oral or written confirmation of receipt is obtained by the sender unless
the date of transmission and confirmation is not a Local Business Day, in which
case, on the next succeeding Local Business Day.
Any notice, direction, requires, demand, consent or waiver by the Company,
any Subordinated Securityholder to or upon the Trustee shall be deemed to have
been sufficiently given, made or filed, for all purposes, if given, made or
filed in writing at the Principal Office of the Trustee in accordance with the
provisions of this Section 13.02.
Any notice, request, consent or waiver by the Company or the Trustee upon
the Depository shall have been sufficiently given, made or filed, for all
purposes, if give or made in accordance with the provisions of this Section
13.02 at the address shown for such Depository in the Register or at such other
address as the Depository shall have provided for purposes of notice.
SECTION 13.03. Compliance Certificates and Opinions. Upon on any request or
application by the Company to the Trustee to take any action under any of the
provisions of this Subordinated Indenture, the Company shall furnish to the
Trustee an Officer's Certificate stating that all conditions precedent, if any,
provided for in this Subordinated 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, except that in
the case of any such application or demand as to which the furnishing of such
document is specifically required by any provision of this Subordinated
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.
Each certificate or opinion provided for in this Subordinated Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Subordinated Indenture (other than a certificate provided
pursuant to Section 5.03(d) 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 such Person to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and (d) a statement as to whether or not, in the opinion of
such Person, such condition or covenant has been complied with.
Any certificate, statement or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of
or representations by counsel, unless such officer knows that the certificate or
opinion or representations with respect to the matters upon which such
certificate, statement or opinion may be based as aforesaid are erroneous, or in
the exercise of reasonable care should know that the same are erroneous. Any
certificate, statement or Opinion of Counsel may be based, insofar as it relates
to factual matters, upon the certificate, statement or opinion of or
representations by an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows that the certificate, statement or opinion or
representations with respect to the matters upon which such Person's
certificate, statement or opinion may be
77
based as aforesaid are erroneous, or in the exercise of reasonable care should
know that the same are erroneous.
Any certificate, statement or opinion of an officer of the Company or of
counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants, unless such officer or counsel, as the case may be, knows that the
certificate or opinion or representations with respect to the accounting matters
upon which his or her certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that
the same are erroneous. Any certificate or opinion of any firm of independent
public accountants filed with the Trustee shall contain a statement that such
firm is independent.
SECTION 13.04. Days on Which Payment to be Made, Notice Given or Other
Action Taken. If any date on which a payment is to be made, notice given or
other action taken hereunder is a Saturday, Sunday or legal holiday in the state
in which the payment, notice or other action is to be made, given or taken, then
such payment, notice or other action shall be made, given or taken on the next
succeeding Business Day in such state, and in the case of any payment, no
interest shall accrue for the delay.
SECTION 13.05. Provisions Required by Trust Indenture Act to Control. If
and to the extent that any provision of this Subordinated Indenture limits,
qualifies or conflicts with another provision included in this Subordinated
Indenture which is required to be included in this Subordinated Indenture by any
of Sections 310 to 317, inclusive, of the Trust Indenture Act such required
provision shall control.
SECTION 13.06. Governing Law. THIS SUBORDINATED INDENTURE AND EACH
SUBORDINATED SECURITY 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 THE LAWS OF SAID STATE.
SECTION 13.07. Effect of Headings. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.
SECTION 13.08. Subordinated Securities in a Foreign Currency or in ECU.
Unless otherwise specified in an Officer's Certificate delivered pursuant to
Section 2.03 of this Subordinated Indenture with respect to a particular series
of Subordinated Securities, whenever for purposes of this Subordinated Indenture
any action may be taken by the Holders of a specified percentage in aggregate
principal amount of Subordinated Securities of all series or all series affected
by a particular action at the time Outstanding and, at such time, there are
Outstanding Subordinated Securities of any series which are denominated in a
coin or currency other than United States Dollars (including ECUs), then the
principal amount of Subordinated Securities of such series which shall be deemed
to be Outstanding for the purpose of taking such action shall be that amount of
United States Dollars that could be obtained for such amount at the Market
Exchange Rate. For purposes of this Section 13.08, Market Exchange Rate shall
mean the noon United States Dollar buying rate in The City of New York for cable
transfers of that currency as published by the Federal Reserve Bank of New York;
provided, in the case of ECUs, Market Exchange Rate shall mean the rate of
exchange determined by the Commission of the
78
European Communities (or any successor thereto) as published in the Official
Journal of the European Communities (such publication or any successor
publication, the "Journal"). If such Market Exchange Rate is not available for
any reason with respect to such currency, the Trustee shall use, in its sole
discretion and without liability on its part, such quotation of the Federal
Reserve Bank of New York or, in the case of ECUs, the rate of exchange as
published in the Journal, as of the most recent available date, or quotations
or, in the case of ECUs, rates of exchange from one or more major banks in The
City of New York or in the country of issue of the currency in question, which
for purposes of the ECU shall be Brussels, Belgium, or such other quotations or,
in the case of ECU, rates of exchange as the Trustee shall deem appropriate. The
provisions of this paragraph shall apply in determining the equivalent principal
amount in respect of Subordinated Securities of a series denominated in a
currency other than Dollars in connection with any action taken by Holders of
Subordinated Securities pursuant to the terms of this Subordinated Indenture.
All decisions and determinations of the Trustee regarding the Market
Exchange Rate or any alternative determination provided for in the preceding
paragraph shall be in its sole discretion and shall, in the absence of manifest
error, be conclusive to the extent permitted by law for all purposes and
irrevocably binding upon the Company and all Holders.
SECTION 13.09. Judgment Currency. The Company agrees, to the fullest extent
that it may effectively do so under applicable law, that (a) if for the purpose
of obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of or interest on the Subordinated Securities of any
series (the "Required Currency"), into a currency in which a judgment will be
rendered (the "Judgment Currency"), the rate of exchange used shall be the rate
at which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the Required Currency with the Judgment Currency on the
day on which final unappealable judgment is entered, unless such day is not a
New York Banking Day, then, to the extent permitted by applicable law, the rate
of exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the New York Banking Day preceding the
day on which final unappealable judgment is entered and (b) its obligations
under this Subordinated Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, or any recovery pursuant to
any judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such tender
or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Subordinated Indenture. For purposes
of the foregoing, "New York Banking Day" means any day except a Saturday, Sunday
or a legal holiday in The City of New York or a day on which banking
institutions in The City of New York are authorized or required by law or
executive order to close.
79
SECTION 13.10. Provisions of the Subordinated Indenture and Subordinated
Securities for the Sole Benefit of the Parties and the Subordinated
Securityholders. Nothing in this Subordinated Indenture or in the Subordinated
Securities, expressed or implied, shall give or be construed to give any Person,
firm or Company, other than the parties hereto and the Holders of the
Subordinated Securities, any legal or equitable right, remedy or claim under or
in respect of this Subordinated Indenture, or under any covenant, condition and
provision herein contained; all its covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the Holders of the
Subordinated Securities.
SECTION 13.11. Subordinated Indenture May be Executed in Counterparts. This
Subordinated 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.
ARTICLE FOURTEEN
SUBORDINATION OF SECURITIES
SECTION 14.01. Subordinated Securities Subordinated to Senior Indebtedness.
The Company covenants and agrees, and each Holder of Subordinated Securities, by
his acceptance thereof, likewise covenants and agrees, that the indebtedness
represented by the Subordinated Securities and the payment of the principal of
(and premium, if any) in respect of each and all of the Subordinated Securities
is hereby expressly subordinated, to the extent and in the manner hereinafter
set forth, in right of payment to the prior payment in full of Senior
Indebtedness.
In the event (a) of any distribution of assets of the Company upon any
dissolution, winding up, liquidation or reorganization of the Company whether in
bankruptcy, insolvency, reorganization or receivership proceeding or upon an
assignment for the benefit of creditors or any other marshalling of the assets
and liabilities of the Company or otherwise, except a distribution in connection
with a member or consolidation or a conveyance or transfer of all or
substantially all of the properties of the Company which complies with the
requirements of Section 4.02, or (b) that a default shall have occurred and be
continuing with respect to the payment of principal of (or premium, if any) in
respect of any Senior Indebtedness, or (c) that the principal of the
Subordinated Securities of any series (or in the case of Original Issue Discount
Securities, the portion of the principal amount thereof referred to in Section
6.01) shall have been declared due and payable pursuant to Section 6.01 and such
declaration shall not have been rescinded and annulled as provided in Section
6.01, then:
(1) in a circumstance described in the foregoing clause (a) or (b) the
holders of all Senior Indebtedness, and in the circumstance described in the
foregoing clause (c) the holders of all Senior Indebtedness outstanding at the
time the principal of such Subordinated Securities (or in the case of Original
Issue Discount Securities, such portion of the principal amount) shall have been
so declared due and payable, shall first be entitled to receive payment of the
full amount due thereon in respect of principal, premium (if any), interest, or
provision shall be made for such payment in money or money's worth, before the
Holders of any of the Subordinated Securities are entitled to receive any
payment on account of the principal of (or premium, if any) or interest payable
in respect of the indebtedness evidenced by the Subordinated Securities;
80
(2) any payment by, or distribution of assets of, the Company of any kind
of character, whether in cash, property or securities (other than securities 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 subordinate, at least to the extent provided in this Article
with respect to the securities, to the payment of all Senior Indebtedness,
provided that the rights of the holders of the Senior Indebtedness are not
altered by such reorganization or readjustment), to which the Holders of any of
the Subordinated Securities would be entitled except for the provisions of this
Article shall be paid or delivered by the person making such payment or
distribution, whether a trustee in bankruptcy, a receive or liquidating trustee
or otherwise, directly to the holders of such Senior Indebtedness or their
representative or representatives or to the trustee or trustees under any
indenture under which any instrument evidencing any of such Senior Indebtedness
may have been issued, ratably according to the aggregate amounts remaining
unpaid on account of such Senior Indebtedness held or represented by each, to
the extent necessary to make payment in full of all Senior Indebtedness
remaining unpaid after giving effect to any concurrent payment or distribution
(or provision therefore) to the holders of such Senior Indebtedness, before any
payment or distribution is made to the Holders of the indebtedness evidenced by
the Subordinated Securities under this Subordinated Indenture; and
(3) in the event that, notwithstanding the foregoing, any payment by, or
distribution of assets of, the Company of any kind of character, whether in
cash, property or securities (other than securities of the Company as
reorganized or readjusted or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustments the payment of which
is subordinate, at least to the extent provided in this Article with respect to
the Subordinated Securities, to the payment of all Senior Indebtedness, provided
that the rights of the holders of Senior Indebtedness are not altered by such
reorganization or readjustment), shall be received by the Holders of any of the
Subordinated Securities before all Senior Indebtedness is paid in full, such
payment or distribution shall be paid over to the holders of such Senior
Indebtedness or their representative or representatives or to the trustee or
trustees under any indenture under which any instruments evidencing any of such
Senior Indebtedness may have been issued, ratably as aforesaid, for application
to the payment of all Senior Indebtedness remaining unpaid until all such Senior
Indebtedness shall have been paid in full, after giving effect to any concurrent
payment or distribution (or provision therefor) to the holders of such Senior
Indebtedness.
SECTION 14.02. Subrogation. Subject to the payment in full of all Senior
Indebtedness to which the indebtedness evidenced by the securities is in the
circumstances subordinated as provided in Section 14.01, the Holders of the
Subordinated Securities shall be subrogated to the rights of the holders of such
Senior Indebtedness to receive payments or distributions of cash, property or
Subordinated Securities of the Company applicable to such Senior Indebtedness
until all amounts owing on the Subordinated Securities shall be paid in full,
and, as between the Company, its creditors other than holders of such Senior
Indebtedness, and the Holders of the Subordinated Securities, no such payment or
distribution made to the holders of such Senior Indebtedness by virtue of this
Article which otherwise would have been made to the Holders of the Subordinated
Securities shall be deemed to be a payment by the Company on account of such
Senior Indebtedness, it being understood that the provisions of this Article are
and are intended
81
solely for the purpose of defining the relative rights of the Holders of the
Subordinated Securities, on the one hand, and the holders of Senior
Indebtedness.
SECTION 14.03. Obligation of the Company Unconditional. Nothing contained
in this Article or elsewhere in this Subordinated Indenture or in the
Subordinated Securities is intended to or shall impair, as between the Company,
its creditors other than the holders of Senior Indebtedness, and the Holders of
the Subordinated Securities, the obligation of the Company, which is absolute
and unconditional, to pay to the Holders of the Subordinated Securities the
principal of (and premium, if any) and interest payable in the respect of the
Subordinated Securities as and when the same shall become due and payable in
accordance with their terms, or is intended to or shall affect the relative
rights of the Holders of the Subordinated Securities and creditors of the
Company other than the holders of Senior Indebtedness nor shall anything herein
or therein prevent the Trustee or the Holder of any Security from exercising all
remedies otherwise permitted by applicable law upon default under this
Subordinated Indenture, subject to the rights, if any, under this Article of the
holders of Senior Indebtedness in respect of cash, property or Subordinated
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, the Trustee and the Holders of the Subordinated Securities shall
be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which any such dissolution, winding up, liquidation or
reorganization proceeding affecting the affairs of the Company is pending or
upon a certificate of the trustee in bankruptcy, receiver, assignee for the
benefit of creditors, liquidating trustee or agent or other person making any
payment or distribution, delivered to the Trustee or to the Holders of the
Subordinated Securities, for the purpose of ascertaining the persons entitled to
participate in such payment or distribution, the holders of the Senior
Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount paid or distributed thereon and all other facts
pertinent thereto or to this Article.
SECTION 14.04. Payments on Subordinated Securities Permitted. Nothing
contained in this Article or elsewhere in this Subordinated Indenture, or in any
of the Subordinated Securities, shall affect the obligation of the Company to
make, or prevent the Company from making, payment of the principal of (or
premium, if any) or interest payable in respect of the Subordinated Securities
in accordance with the provisions hereof and thereof, except as otherwise
provided in this Article.
SECTION 14.05. Effectuation of Subordinated by Trustee. Each holder of the
Subordinated Securities, 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 and appoints the Trustee
his attorney-in-fact for any and all such purposes.
SECTION 14.06. Knowledge of Trustee. Notwithstanding the provisions of this
Article or any other provisions of this Subordinated Indenture, the Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness and shall not be charged with knowledge of the existence of any
facts which would prohibit the making of any payment or moneys to or by the
Trustee, or the taking of any other action by the Trustee, unless and until the
82
Trustee shall have received written notice thereof from the Company, any Holder
of Subordinated Securities, any paying or conversion agent of the Company or the
holder or representative of any class of Senior Indebtedness; provided, however,
that if the Trustee shall not have received the notice provided for in this
Section at least three Business Days prior to the date upon which, by the terms
hereof, any money may become payable for any purpose (including, without
limitation, the payment of the principal of (or premium, if any) or interest on
any Subordinated Security) then, anything herein contained to the contrary
notwithstanding, the Trustee shall have all power and authority to receive such
money and to apply the same to the purpose for which such money was received and
shall not be affected by any notice to the contrary which may be received by it
during or after such three Business Day period.
SECTION 14.07. Trustee May Hold Senior Indebtedness. The trustee in its
individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Indebtedness at the time held by it, to the
same extent ads any other holder of Senior Indebtedness, and nothing in Section
313 of the Trust Indenture Act or elsewhere in this Subordinated Indenture shall
deprive the Trustee of any of its rights as such holder.
Nothing in this Article shall subordinate any claims of, or payments to,
the Trustee (under or pursuant to Section 7.06) to Senior Indebtedness.
SECTION 14.08. Rights of Holders of Senior Indebtedness Not Impaired. No
right of any present or future holder of any Senior Indebtedness to enforce the
subordination herein shall at any time or in any way be prejudiced or impaired
by any act or failure to act on the part of the Company or by any non-compliance
by the Company with the terms, provisions and covenants of this Subordinated
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.
[Signature page follows]
83
IN WITNESS WHEREOF, LEXAR MEDIA, INC. has caused this Subordinated
Indenture to be signed by its Chairperson of the Board or any Vice-Chairpeople
of the Board or its President or Chief Financial Officer or one of its
Vice-Presidents and U.S. Bank National Association has caused this Subordinated
Indenture to be signed and acknowledged by one of its officers, all as of the
day and year first written above.
LEXAR MEDIA, INC.
By
---------------------------------
Name:
Title:
U.S. Bank National Association, as
Trustee
By
---------------------------------
Name:
Title:
84
TABLE SHOWING REFLECTION IN THIS SUBORDINATED INDENTURE OF
CERTAIN PROVISIONS OF THE TRUST INDENTURE ACT OF 1939*
Section of Section
Indenture of Act
--------------------------------------------------------------------------------
310(a)(1) ..................................................... 7.09
310(a)(2) ..................................................... 7.09
310(a)(3) ..................................................... Inapplicable
310(a)(4) ..................................................... Inapplicable
310(a)(5) ..................................................... 7.09
310(b) ..................................................... 7.08, 7.10
310(c) ..................................................... Inapplicable
311(a) ..................................................... 7.13(a), 7.13(c)
311(b) ..................................................... 7.13(b), 7.13(c)
311(c) ..................................................... Inapplicable
312(a) ..................................................... 5.01, 5.02(a)
312(b) ..................................................... 5.02(b)
312(c) ..................................................... 5.02(c)
313(a) ..................................................... 5.04(a)
313(b)(1) ..................................................... Inapplicable
313(b)(2) ..................................................... 5.04(b)
313(c) ..................................................... 5.04(c)
313(d) ..................................................... 5.04(d)
314(a)(1) ..................................................... 5.03(a)
314(a)(2) ..................................................... 5.03(b)
314(a)(3) ..................................................... 5.03(c)
314(a)(4) ..................................................... 5.03(d)
314(b) ..................................................... Inapplicable
314(c) ..................................................... 13.03
314(d) ..................................................... Inapplicable
314(e) ..................................................... 13.03
314(f) ..................................................... Omitted
315(a) ..................................................... 7.01
315(b) ..................................................... 6.10
315(c) ..................................................... 7.01
315(d) ..................................................... 7.01
315(e) ..................................................... 6.11
316(a)(1) ..................................................... 6.09
316(a)(2) ..................................................... Omitted
316(b) ..................................................... 6.06
316(c) ..................................................... 6.09
317(a) ..................................................... 6.02, 6.03
317(b) ..................................................... 4.06
318(a) ..................................................... 13.05
----------------------------------
* This Table is not part of the Subordinated Indenture.
