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EXHIBIT 4.01
FORM OF NOTE
THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION ("DTC"), TO A NOMINEE OF DTC OR BY DTC OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
TO XXXXXXX XXXXX XXXXXX HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
No. R-1 INITIAL PRINCIPAL AMOUNT
CUSIP [ ] REPRESENTED $[ ]
representing [ ] ELKS
($10 per ELKS)
XXXXXXX XXXXX XXXXXX HOLDINGS INC.
Equity Linked Securities (ELKS[ ]) based upon
the Common Stock of Juniper Networks, Inc. due [ ], 2002
Xxxxxxx Xxxxx Xxxxxx Holdings Inc., a New York corporation (hereinafter
referred to as the "Company", which term includes any successor corporation
under the Indenture herein referred to), for value received and on condition
that this Note is not redeemed by the Company prior to [ ], 2002 (the "Stated
Maturity Date"), hereby promises to pay to CEDE & CO., or its registered
assigns, the Maturity Payment (as defined below), on the Stated Maturity Date.
This Note will bear semi-annual payments of interest, is not subject to any
sinking fund, is not subject to redemption at the option of the Holder thereof
prior to the Stated Maturity Date, and is not subject to the defeasance
provisions of the Indenture.
Payment of the Maturity Payment with respect to this Note shall be made
upon presentation and surrender of this Note at the corporate trust office of
the Trustee in the Borough of Manhattan, The City and State of New York, in such
coin or currency of the United States as at the time of payment is legal tender
for payment of public and private debts or, if applicable, in the common stock
of Juniper Networks, Inc. ("Juniper").
This Note is one of the series of Equity Linked Securities based upon the
common stock of Juniper Networks, Inc. due [ ], 2002 (the "ELKS").
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COUPON
A coupon of $[ ] per ELKS will be paid in cash on [ ], 2001 and a coupon of
$[ ] per ELKS will be paid in cash on [ ], 2002. The [ ], 2001 coupon will be
composed of $[ ] of interest and a partial payment of an option premium in the
amount of $[ ]. The [ ], 2002 coupon will be composed of $[ ] of interest and a
partial payment of an option premium in the amount of $[ ]. Coupon payments will
be payable to the persons in whose names the ELKS are registered at the close of
business on the Business Day preceding each Interest Payment Date. If an
Interest Payment Date falls on a day that is not a Business Day, the coupon
payment to be made on such Interest Payment Date will be made on the next
succeeding Business Day with the same force and effect as if made on such
Interest Payment Date, and no additional interest will accrue as a result of
such delayed payment.
"Business Day" means any day that is not a Saturday, a Sunday or a day on
which the AMEX or banking institutions or trust companies in the City of New
York are authorized or obligated by law or executive order to close.
The interest portion of the coupon will represent interest accruing at a
rate of [ ]% per annum from May 30, 2001 or from the most recent Interest
Payment Date to which the interest portion of the coupon has been paid or
provided for until maturity. The interest portion of the coupon will be computed
on the basis of a 360-day year of twelve 30-day months.
PAYMENT AT MATURITY
On the Stated Maturity Date, Holders of the ELKS will receive for each ELKS
the Maturity Payment described below.
DETERMINATION OF THE MATURITY PAYMENT
The Maturity Payment for each ELKS equals either:
- a number of shares of Juniper common stock equal to the Exchange Rate,
if the price of Juniper common stock at any time after May 24, 2001
until the third Trading Day before the Stated Maturity Date (whether
intra-day or at the close of trading on any day) is less than or equal
to $[ ], or
- $10 in cash.
In lieu of any fractional share of Juniper common stock otherwise payable
in respect of any ELKS, at the Stated Maturity Date, the Holder of this Note
will receive an amount in cash equal to the value of such fractional share of
Juniper common stock, based on the Closing Price of Juniper common stock on the
third Trading Day before the Stated Maturity Date. The number of full shares of
Juniper common stock, and any cash in lieu of a fractional share, to be
delivered at the Stated Maturity Date to the Holder of this Note will be
calculated based on the aggregate number of ELKS held by such Holder.
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The "Closing Price" of Juniper common stock on any date of determination
will be the daily closing sale price or, if no closing sale price is reported,
the last reported sale price of one share of Juniper common stock as reported on
the Nasdaq National Market. If Juniper common stock is not quoted on the Nasdaq
on that date of determination, the Closing Price will be the last reported sale
price as reported in the composite transactions for the principal U.S. exchange
on which Juniper common stock is listed. If Juniper common stock is not listed
on a U.S. national or regional securities exchange, the Closing Price will be
the last quoted bid price for Juniper common stock in the over-the-counter
market as reported by the National Quotation Bureau or a similar organization.
The "Exchange Rate" will equal [ ].
The "Initial Share Price" will equal $[ ], the price per share of Juniper
common stock at the market close on May 24, 2001.
A "Trading Day" means a day on which (1) Juniper common stock is not
suspended from trading on any national or regional securities exchange,
securities market or association or over-the-counter market at the close of
business and (2) Juniper common stock has traded at least once on the national
or regional securities exchange or association or over-the-counter market that
is the primary market for the trading of the security.
DILUTION ADJUSTMENTS
If Xxxxxxx, after the closing date of the offering of the ELKS,
(1) pays a stock dividend or makes a distribution with respect to its
common stock in shares of the stock,
(2) subdivides or splits the outstanding shares of its common stock into a
greater number of shares,
(3) combines the outstanding shares of the common stock into a smaller
number of shares, or
(4) issues by reclassification of shares of its common stock any shares of
other common stock of Juniper,
then, in each of these cases, the Exchange Rate will be multiplied by a dilution
adjustment equal to a fraction, the numerator of which will be the number of
shares of common stock outstanding immediately after the event, plus, in the
case of a reclassification referred to in (4) above, the number of shares of
other common stock of Juniper, and the denominator of which will be the number
of shares of common stock outstanding immediately before the event.
If Xxxxxxx, after the closing date, issues, or declares a record date in
respect of an issuance of, rights or warrants to all holders of its common stock
entitling them to subscribe for or purchase shares of its common stock at a
price per share less than the Then-Current Market Price of the common stock,
other than rights to purchase common stock pursuant to a plan for the
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reinvestment of dividends or interest, then, in each of these cases, the
Exchange Rate will be multiplied by a dilution adjustment equal to a fraction,
the numerator of which will be the number of shares of common stock outstanding
immediately before the adjustment is effected, plus the number of additional
shares of common stock offered for subscription or purchase pursuant to the
rights or warrants, and the denominator of which will be the number of shares of
common stock outstanding immediately before the adjustment is effected by reason
of the issuance of the rights or warrants, plus the number of additional shares
of common stock which the aggregate offering price of the total number of shares
of common stock offered for subscription or purchase pursuant to the rights or
warrants would purchase at the Then-Current Market Price of the common stock,
which will be determined by multiplying the total number of shares so offered
for subscription or purchase by the exercise price of the rights or warrants and
dividing the product obtained by the Then-Current Market Price. To the extent
that, after the expiration of the rights or warrants, the shares of common stock
offered thereby have not been delivered, the Exchange Rate will be further
adjusted to equal the Exchange Rate which would have been in effect had the
adjustment for the issuance of the rights or warrants been made upon the basis
of delivery of only the number of shares of common stock actually delivered.
If Juniper, after the closing date, declares or pays a dividend or makes a
distribution to all holders of the common stock of any class of its capital
stock, the capital stock of one or more of its subsidiaries, evidences of its
indebtedness or other non-cash assets, excluding any dividends or distributions
referred to in the above paragraph, or issues to all holders of its common stock
rights or warrants to subscribe for or purchase any of its or one or more of its
subsidiaries' securities, other than rights or warrants referred to in the above
paragraph, then, in each of these cases, the Exchange Rate will be multiplied by
a dilution adjustment equal to a fraction, the numerator of which will be the
Then-Current Market Price of one share of the common stock, and the denominator
of which will be the Then-Current Market Price of one share of the common stock,
less the fair market value (as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company, whose
determination will be final) as of the time the adjustment is effected of the
portion of the capital stock, assets, evidences of indebtedness, rights or
warrants so distributed or issued applicable to one share of common stock.
Notwithstanding the foregoing, in the event that, with respect to any
dividend or distribution to which the above paragraph would otherwise apply, the
denominator in the fraction referred to in the above formula is less than $1.00
or is a negative number, then the Company may, at its option, elect to have the
adjustment provided by this paragraph not be made and in lieu of this
adjustment, at maturity, each Holder of the ELKS will be entitled to receive an
additional amount of cash equal to the product of the number of ELKS held by the
holder multiplied by the fair market value of the capital stock, indebtedness,
assets, rights or warrants (determined, as of the date this dividend or
distribution is made, by a nationally recognized independent investment banking
firm retained for this purpose by the Company, whose determination will be
final) so distributed or issued applicable to a number of shares of Juniper
common stock equal to the Exchange Rate.
If Xxxxxxx, after the closing date, declares a record date in respect of a
distribution of cash, other than any Permitted Dividends described below, any
cash distributed in consideration
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of fractional shares of common stock and any cash distributed in a
Reorganization Event referred to below, by dividend or otherwise, to all holders
of its common stock, or makes an Excess Purchase Payment, then the Exchange Rate
will be multiplied by a dilution adjustment equal to a fraction, the numerator
of which will be the Then-Current Market Price of the common stock, and the
denominator of which will be the Then-Current Market Price of the common stock
on the record date less the amount of the distribution applicable to one share
of common stock which would not be a Permitted Dividend, or, in the case of an
Excess Purchase Payment, less the aggregate amount of the Excess Purchase
Payment for which adjustment is being made at the time divided by the number of
shares of Juniper common stock outstanding on the record date.
For the purposes of these adjustments:
A "Permitted Dividend" is any quarterly cash dividend in respect of Juniper
common stock, other than a quarterly cash dividend that exceeds the immediately
preceding quarterly cash dividend, and then only to the extent that the per
share amount of this dividend results in an annualized dividend yield on the
common stock in excess of 10%.
An "Excess Purchase Payment" is the excess, if any, of (x) the cash and the
value (as determined by a nationally recognized independent investment banking
firm retained for this purpose by the Company, whose determination will be
final) of all other consideration paid by Xxxxxxx with respect to one share of
common stock acquired in a tender offer or exchange offer by Xxxxxxx, over (y)
the Then-Current Market price of the common stock.
Notwithstanding the foregoing, in the event that, with respect to any
dividend or distribution or Excess Purchase Payment to which the fifth paragraph
in this section would otherwise apply, the denominator in the fraction referred
to in the formula in that paragraph is less than $1.00 or is a negative number,
then the Company may, at its option, elect to have the adjustment provided by
the fifth paragraph in this section not be made and in lieu of this adjustment,
at maturity, each Holder of the ELKS will be entitled to receive an additional
amount of cash equal to the product of the number of ELKS held by the Holder
multiplied by the sum of the amount of cash plus the fair market value of other
consideration (determined, as of the date this dividend or distribution is made,
by a nationally recognized independent investment banking firm retained for this
purpose by the Company, whose determination will be final) so distributed or
applied to the acquisition of the common stock in the tender offer or exchange
offer applicable to a number of shares of Juniper common stock equal to the
Exchange Rate.
Each dilution adjustment will be effected as follows:
- in the case of any dividend, distribution or issuance, at the opening
of business on the Business Day next following the record date for
determination of holders of Juniper common stock entitled to receive
this dividend, distribution or issuance or, if the announcement of
this dividend, distribution, or issuance is after this record date, at
the time this dividend, distribution or issuance was announced by
Xxxxxxx,
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- in the case of any subdivision, split, combination or
reclassification, on the effective date of the transaction,
- in the case of any Excess Purchase Payment for which Xxxxxxx
announces, at or prior to the time it commences the relevant share
repurchase, the repurchase price per share for shares proposed to be
repurchased, on the date of the announcement, and
- in the case of any other Excess Purchase Payment, on the date that the
holders of the repurchased shares become entitled to payment in
respect thereof.
All dilution adjustments will be rounded upward or downward to the nearest
1/10,000th or, if there is not a nearest 1/10,000th, to the next lower
1/10,000th. No adjustment in the Exchange Rate will be required unless the
adjustment would require an increase or decrease of at least one percent
therein, provided, however, that any adjustments which by reason of this
sentence are not required to be made will be carried forward (on a percentage
basis) and taken into account in any subsequent adjustment. If any announcement
or declaration of a record date in respect of a dividend, distribution, issuance
or repurchase requiring an adjustment as described herein is subsequently
canceled by Juniper, or this dividend, distribution, issuance or repurchase
fails to receive requisite approvals or fails to occur for any other reason,
then, upon the cancellation, failure of approval or failure to occur, the
Exchange Rate will be further adjusted to the Exchange Rate which would then
have been in effect had adjustment for the event not been made. If a
Reorganization Event described below occurs after the occurrence of one or more
events requiring an adjustment as described herein, the dilution adjustments
previously applied to the Exchange Rate will not be rescinded but will be
applied to the new Exchange Rate provided for below.
The "Then-Current Market Price" of the common stock, for the purpose of
applying any dilution adjustment, means the average closing price per share of
common stock for the 10 Trading Days immediately before this adjustment is
effected or, in the case of an adjustment effected at the opening of business on
the Business Day next following a record date, immediately before the earlier of
the date the adjustment is effected and the related Ex-Date.
The "Ex-Date" with respect to any dividend, distribution or issuance is the
first date on which the shares of the common stock trade in the regular way on
their principal market without the right to receive this dividend, distribution
or issuance.
In the event of any of the following "Reorganization Events":
- any consolidation or merger of Juniper, or any surviving entity or
subsequent surviving entity of Juniper, with or into another entity,
other than a merger or consolidation in which Juniper is the
continuing corporation and in which the common stock outstanding
immediately before the merger or consolidation is not exchanged for
cash, securities or other property of Juniper or another issuer,
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- any sale, transfer, lease or conveyance to another corporation of the
property of Juniper or any successor as an entirety or substantially
as an entirety,
- any statutory exchange of securities of Juniper or any successor of
Juniper with another issuer, other than in connection with a merger or
acquisition, or
- any liquidation, dissolution or winding up of Juniper or any successor
of Xxxxxxx,
each Holder of the ELKS will have the right to receive cash in an amount per $10
principal amount of ELKS equal to the Exchange Rate multiplied by the
Transaction Value (as defined below).
The "Transaction Value" will be the sum of:
(1) for any cash received in a Reorganization Event, the amount of cash
received per share of common stock,
(2) for any property other than cash or Marketable Securities received in
a Reorganization Event, an amount equal to the market value on the
date the Reorganization Event is consummated of that property received
per share of common stock, as determined by a nationally recognized
independent investment banking firm retained for this purpose by the
Company, whose determination will be final, and
(3) for any Marketable Securities received in a Reorganization Event, an
amount equal to the Closing Price per share of these Marketable
Securities on the Trading Day immediately prior to the maturity date
or Exchange Date multiplied by the number of these Marketable
Securities received for each share of common stock.
"Marketable Securities" are any perpetual equity securities or debt
securities with a stated maturity after the maturity date, in each case that are
listed on a U.S. national securities exchange or reported by the Nasdaq Stock
Market. The number of shares of any equity securities constituting Marketable
Securities included in the calculation of Transaction Value pursuant to clause
(3) above will be adjusted if any event occurs with respect to the Marketable
Securities or the issuer of the Marketable Securities between the time of the
Reorganization Event and maturity that would have required an adjustment as
described above, had it occurred with respect to the Juniper common stock or
Juniper. Adjustment for these subsequent events will be as nearly equivalent as
practicable to the adjustments described above.
The "Closing Price" of Marketable Securities on any date of determination
will be the daily closing sale price or, if no closing sale price is reported,
the last reported sale price of a share of Marketable Security on the applicable
U.S. securities exchange. If the Marketable Securities are not quoted on the
U.S. securities exchange on that date of determination, the Closing Price will
be the last reported sale price as reported in the composite transactions for
the principal U.S. exchange on which the Marketable Securities are listed. If
the Marketable Securities are not listed on a U.S. national or regional
securities exchange, the Closing Price will
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be the last quoted bid price for the Marketable Securities in the
over-the-counter market as reported by the National Quotation Bureau or a
similar organization.
GENERAL
This Note is one of a duly authorized issue of Debt Securities of the
Company, issued and to be issued in one or more series under a Senior Debt
Indenture, dated as of October 27, 1993, as supplemented by a First Supplemental
Indenture, dated as of November 28, 1997, a Second Supplemental Indenture, dated
as of July 1, 1999, and as further supplemented from time to time (the
"Indenture"), between the Company and The Bank of New York, as Trustee (the
"Trustee", which term includes any successor trustee under the Indenture), to
which Indenture reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the ELKS, and the terms upon which the ELKS are,
and are to be, authenticated and delivered.
If an Event of Default with respect to the ELKS shall have occurred and be
continuing, the principal of the ELKS may be declared due and payable in the
manner and with the effect provided in the Indenture. In such case, the amount
declared due and payable upon any acceleration permitted by the Indenture will
be determined by the calculation agent for the ELKS and will be equal to, with
respect to this Note, the Maturity Payment calculated as though the Stated
Maturity Date of this Note were the date of early repayment. In case of default
at Maturity of this Note, this Note shall bear interest, payable upon demand of
the beneficial owners of this Note in accordance with the terms of the ELKS,
from and after Maturity through the date when payment of such amount has been
made or duly provided for, at the rate of [ ]% per annum on the unpaid amount
(or the cash equivalent of such unpaid amount) due.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Debt Securities of each series to
be affected under the Indenture at any time by the Company and a majority in
aggregate principal amount of the Debt Securities at the time Outstanding of
each series affected thereby. The Indenture also contains provisions permitting
the Holders of specified percentages in aggregate principal amount of the Debt
Securities of any series at the time Outstanding, on behalf of the Holders of
all Debt Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note.
The Holder of this Note may not enforce such Xxxxxx's rights pursuant to
the Indenture or the Notes except as provided in the Indenture. No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company to pay the Maturity Payment with
respect to this Note, and to pay any interest on any overdue amount thereof at
the time, place and rate, and in the coin or currency, herein prescribed.
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All terms used in this Note which are defined in the Indenture but not in
this Note shall have the meanings assigned to them in the Indenture.
Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.
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IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
XXXXXXX XXXXX XXXXXX HOLDINGS
INC.
By:
-------------------------------------
Name:
Title:
Corporate Seal
Attest:
By:
-------------------------------------
Name:
Title:
Dated: May 30, 2001
CERTIFICATE OF AUTHENTICATION
This is one of the Notes referred to in
the within-mentioned Indenture.
The Bank of New York,
as Trustee
By:
---------------------------------
Authorized Signatory
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