EXHIBIT 4.1
================================================================================
XXXXXX CORPORATION
AND
U.S. BANK NATIONAL ASSOCIATION,
Trustee
INDENTURE
Dated as of _______, 2003
$100,000,000
Subordinated Investment Notes
================================================================================
TABLE OF CONTENTS
ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION....................... 1
SECTION 1.1 Definitions................................................................... 1
SECTION 1.2 Compliance Certificates and Opinions.......................................... 6
SECTION 1.3 Form of Documents Delivered to Trustee........................................ 7
SECTION 1.4 Action by Holders............................................................. 7
SECTION 1.5 Notices, etc., to Trustee and Company......................................... 8
SECTION 1.6 Notices to Holders; Waiver.................................................... 9
SECTION 1.7 Conflict with Trust Indenture Act............................................. 9
SECTION 1.8 Effect of Headings and Table of Contents...................................... 10
SECTION 1.9 Successors and Assigns........................................................ 10
SECTION 1.10 Separability Clause........................................................... 10
SECTION 1.11 Benefits of Indenture......................................................... 10
SECTION 1.12 Legal Holidays................................................................ 10
SECTION 1.13 Governing Law................................................................. 10
ARTICLE II THE INVESTMENT NOTES.......................................................... 10
SECTION 2.1 General Terms of Investment Notes............................................. 10
SECTION 2.2 Confirmation Statement........................................................ 13
SECTION 2.3 Registrar and Paying Agent.................................................... 13
SECTION 2.4 Transfer and Exchange......................................................... 13
SECTION 2.5 Payment of Interest and Principal; Interest and Principal Rights
Preserved..................................................................... 14
SECTION 2.6 Defaulted Interest............................................................ 15
SECTION 2.7 Book-Entry Registration....................................................... 16
SECTION 2.8 Periodic Statements........................................................... 16
SECTION 2.9 Mutilated, Destroyed, Lost and Stolen Investment Notes........................ 17
SECTION 2.10 Holder Lists.................................................................. 17
SECTION 2.11 Cancellation.................................................................. 17
SECTION 2.12 Execution, Authentication and Delivery........................................ 18
ARTICLE III COVENANTS..................................................................... 18
SECTION 3.1 Payment of Principal and Interest............................................. 18
SECTION 3.2 Maintenance of Office or Agency............................................... 18
SECTION 3.3 Money for Investment Note Payments to be Held in Trust........................ 19
SECTION 3.4 Payment of Taxes and Other Claims............................................. 20
SECTION 3.5 Maintenance of Properties..................................................... 20
SECTION 3.6 Statement as to Compliance.................................................... 20
SECTION 3.7 Corporate Existence........................................................... 21
SECTION 3.8 Restrictions on Dividends, Redemptions and Other Payments..................... 21
ARTICLE IV HOLDERS' LISTS AND REPORTS BY THE TRUSTEE AND THE COMPANY..................... 21
SECTION 4.1 Company to Furnish Trustee Names and Addresses of Holders..................... 21
SECTION 4.2 Preservation of Information; Communications to Holders........................ 22
SECTION 4.3 Reports by Trustee............................................................ 22
SECTION 4.4 Reports by Company............................................................ 22
-i-
ARTICLE V REMEDIES...................................................................... 23
SECTION 5.1 Events of Default............................................................. 23
SECTION 5.2 Acceleration of Maturity; Rescission and Annulment............................ 24
SECTION 5.3 Suits for Enforcement by Trustee.............................................. 25
SECTION 5.4 Trustee May File Proofs of Claim.............................................. 25
SECTION 5.5 Trustee May Enforce Claims Without Possession of Investment Notes............. 26
SECTION 5.6 Application of Money Collected................................................ 26
SECTION 5.7 Limitation on Suits........................................................... 26
SECTION 5.8 Unconditional Right of Holders to Receive Principal and Interest.............. 27
SECTION 5.9 Restoration of Rights and Remedies............................................ 27
SECTION 5.10 Rights and Remedies Cumulative................................................ 27
SECTION 5.11 Delay or Omission Not A Waiver................................................ 27
SECTION 5.12 Control by Holders............................................................ 28
SECTION 5.13 Waiver of Past Defaults....................................................... 28
SECTION 5.14 Undertaking for Costs......................................................... 28
SECTION 5.15 Waiver of Stay or Extension Laws.............................................. 29
ARTICLE VI THE TRUSTEE................................................................... 29
SECTION 6.1 Certain Duties and Responsibilities........................................... 29
SECTION 6.2 Notice of Defaults............................................................ 30
SECTION 6.3 Certain Rights of Trustee..................................................... 30
SECTION 6.4 Not Responsible for Recitals or Issuance of Investment Notes.................. 31
SECTION 6.5 May Hold Investment Notes..................................................... 32
SECTION 6.6 Money Held in Trust........................................................... 32
SECTION 6.7 Compensation and Reimbursement................................................ 32
SECTION 6.8 Corporate Trustee Required; Eligibility; Disqualification..................... 32
SECTION 6.9 Resignation and Removal; Appointment of Successor............................. 33
SECTION 6.10 Acceptance of Appointment by Successor........................................ 34
SECTION 6.11 Merger, Conversion, Consolidation or Succession to Business of Trustee........ 35
SECTION 6.12 Preferential Collection of Claims against Company............................. 35
ARTICLE VII SUPPLEMENTAL INDENTURES....................................................... 35
SECTION 7.1 Supplemental Indentures Without Consent of Holders............................ 35
SECTION 7.2 Supplemental Indentures With Consent of Holders............................... 36
SECTION 7.3 Execution of Supplemental Indentures.......................................... 37
SECTION 7.4 Effect of Supplemental Indentures............................................. 37
SECTION 7.5 Conformity with Trust Indenture Act........................................... 38
SECTION 7.6 Notation on or Exchange of Investment Notes................................... 38
SECTION 7.7 Subordination Unimpaired...................................................... 38
ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE.......................... 38
SECTION 8.1 Company May Consolidate, etc., Only on Certain Terms.......................... 38
SECTION 8.2 Successor Corporation Substituted............................................. 39
SECTION 8.3 Limitation on Lease of Properties as Entirety................................. 39
-ii-
ARTICLE IX DISCHARGE OF INDENTURE........................................................ 39
SECTION 9.1 Termination of Company's Obligations.......................................... 39
SECTION 9.2 Application of Trust Money.................................................... 40
SECTION 9.3 Repayment to Company.......................................................... 40
SECTION 9.4 Reinstatement................................................................. 41
ARTICLE X SUBORDINATION OF INVESTMENT NOTES............................................. 41
SECTION 10.1 Subordination................................................................. 41
SECTION 10.2 Distribution of Assets, etc................................................... 41
SECTION 10.3 Subrogation................................................................... 43
SECTION 10.4 Obligation of the Company Unconditional....................................... 43
SECTION 10.5 Payments on Investment Notes Permitted........................................ 44
SECTION 10.6 Effectuation of Subordination by Trustee...................................... 44
SECTION 10.7 Knowledge of Trustee.......................................................... 44
SECTION 10.8 Trustee May Hold Senior Indebtedness.......................................... 44
SECTION 10.9 Rights of Holders of Senior Indebtedness Not Impaired......................... 44
SECTION 10.10 Alteration of Senior Indebtedness............................................. 44
SECTION 10.11 Article Applicable to Paying Agents........................................... 45
SECTION 10.12 Trustee Not Fiduciary for Holders of Senior Indebtedness...................... 45
ARTICLE XI REDEMPTION.................................................................... 45
SECTION 11.1 Redemption at the Company's Option............................................ 45
SECTION 11.2 Notices to Trustee............................................................ 45
SECTION 11.3 Selection of Investment Notes to be Redeemed.................................. 45
SECTION 11.4 Notice of Redemption.......................................................... 46
SECTION 11.5 Effect of Notice of Redemption................................................ 46
SECTION 11.6 Deposit of Redemption Price................................................... 47
SECTION 11.7 Investment Notes Redeemed in Part............................................. 47
SECTION 11.8 Repurchasing of Investment Notes.............................................. 47
SECTION 11.9 Redemption at the Election of Holder upon Death or Total Permanent
Disability.................................................................... 47
ARTICLE XII IMMUNITY OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS................... 48
SECTION 12.1 Exemption from Individual Liability........................................... 48
ARTICLE XIII INVESTMENT NOTES IN DEFINITIVE FORM........................................... 49
SECTION 13.1 Forms Generally............................................................... 49
-iii-
THIS INDENTURE, dated as of ___________, 2003, by and between Xxxxxx
Corporation, a corporation duly organized and existing under the laws of the
State of Florida ("the Company"), and U.S. Bank National Association, a national
banking association, as trustee (the "Trustee").
The Company and the Trustee agree as follows for the benefit of each
other and for the equal and ratable benefit of the Holders of the unsecured
Subordinated Investment Notes of the Company issued pursuant to the Company's
Registration Statement on Form S-1 declared effective by the Securities and
Exchange Commission on or about ______, 2003:
ARTICLE I
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 1.1 Definitions.
For all purposes of this Indenture and of any indenture supplemental
hereto, except as otherwise expressly provided or unless the context otherwise
requires:
(1) the terms defined in this Article have the meanings
assigned to them in this Article, and include the plural as well as the
singular;
(2) the term "this Indenture" means this instrument as
originally executed or as it may from time to time be supplemented or
amended by one or more indentures supplemental hereto entered into
pursuant to the applicable provisions hereof;
(3) 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;
(4) all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with generally
accepted accounting principles in effect on the date of execution of
this Indenture; and
(5) all references in this instrument to designated
"Articles", "Sections" and other subdivisions are to the designated
Articles, Sections and other subdivisions of this instrument as
originally executed; the words "herein", "hereof" and "hereunder" and
other words of similar import refer to this Indenture as a whole and
not to any particular Article, Section or other subdivision;
"Account" means the record of beneficial ownership of an Investment
Note maintained by the Company.
"Act" when used with respect to any Holder has the meaning specified in
Section 1.4.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the
-1-
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 specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise.
"Authorized Newspaper" means a newspaper of general circulation in the
relevant area, printed in the English language and customarily published on each
Business Day, whether or not published on Saturdays, Sundays or holidays.
Whenever successive weekly publications in an Authorized Newspaper are required
hereunder they may be made (unless otherwise expressly provided herein) on the
same or different days of the week and in the same or different Authorized
Newspapers.
"Board of Directors" means either the board of directors of the Company
or any duly authorized committee of that board.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day" means each day which is neither a Saturday, Sunday nor
other day on which banking institutions in the State of Florida are authorized
by law or required by executive order to close.
"Capital Stock" means any and all shares, interests, participation
rights or other equivalents (however designated) of corporate stock.
"Capitalized Lease Obligation" means any lease obligation of a Person
incurred with respect to any property (whether real, personal or mixed) acquired
or leased by such Person and used in its business that is required to be
recorded as a capitalized lease in accordance with generally accepted accounting
principles.
"Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Securities Exchange Act of 1934, or if at
any time after the execution of this instrument such Commission is not existing
and performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties on such date.
"Company" means Xxxxxx Corporation until a successor corporation shall
have become such pursuant to the applicable provisions of this Indenture, and
thereafter "Company" shall mean such successor corporation.
"Company Request", "Company Order" and "Company Consent" mean,
respectively, a written request, order or consent signed in the name of the
Company by its Chairman of the Board of Directors, President or a Vice
President, and delivered to the Trustee.
-2-
"Confirmation Statement" has the meaning specified in Section 2.2.
"Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.
"Defaulted Interest" has the meaning specified in Section 2.6.
"Event of Default" has the meaning specified in Section 5.1.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Holder" means a Person in whose name an Investment Note is registered
in the Register.
"Indebtedness" means (i) all Obligations of the Company for borrowed
money (whether or not the recourse of the lender is to the whole of the assets
of the Company or only to a portion thereof), (ii) all indebtedness of the
Company which is evidenced by a note, debenture, bond or other similar
instrument, including Capitalized Lease Obligations, (iii) all indebtedness of
the Company representing the unpaid balance of the purchase price of any goods
or other property or balance owed for any services rendered, (iv) all
indebtedness of the Company, including Capitalized Lease Obligations incurred,
assumed or given in an acquisition (whether by way of purchase, merger or
otherwise) of any business, real property or other assets, (v) any indebtedness
of others described in the preceding clauses (i), (ii), (iii) and (iv) that the
Company has guaranteed or for which it is otherwise liable and (vi) any
amendment, renewal, extension, deferral, modification, restructuring or
refunding of any such indebtedness, obligation or guarantee.
"Interest Accrual Date" means with respect to any Investment Note, the
date the Company accepts funds for the purchase of the Investment Note if such
funds are received by 3:00 p.m. (EDT) on a Business Day, or if such funds are
not so received, on the next Business Day.
"Interest Payment Date" means such date as determined by the Holder and
the Company or, if such day is not a Business Day, the Business Day immediately
following such day.
"Investment Note" or "Investment Notes" means the subordinated
investment notes issued and delivered under this Indenture.
"Maturity Date" when used with respect to any Investment Note means the
date specified in such Investment Note as the fixed date on which the principal
of such Investment Note is due and payable, as such Maturity Date may be
extended or renewed as provided herein.
"Maturity Record Date" means, with respect to an Investment Note,
fifteen (15) days prior to the Maturity Date or redemption date applicable to
such Investment Note.
-3-
"Obligations" means, with respect to any Indebtedness, any principal,
premium, interest, penalties, fees and other liabilities payable from time to
time and obligations performable under the documentation governing such
Indebtedness.
"Officers' Certificate" means a certificate signed by the Chairman of
the Board of Directors, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Controller, an Assistant Controller, the Secretary
or an Assistant Secretary of the Company, and delivered to the Trustee.
"Opinion of Counsel" means a written opinion of counsel, who may,
except as otherwise expressly provided in this Indenture, be counsel for the
Company.
"Outstanding" when used with respect to the Investment Notes means, as
of the date of determination, the outstanding balances of all Accounts
representing the Investment Notes maintained by the Registrar (or, if Accounts
are exchanged for fully registered notes in definitive form pursuant to Section
2.7(b) hereof, then all Investment Notes theretofore authenticated and delivered
under this Indenture) except:
(i) Investment Notes the principal amount of which is
considered paid under Section 3.1 hereof; and
(ii) Investment Notes for whose payment money in the
necessary amount has been theretofore deposited with the Trustee or any
Paying Agent in trust for the Holders of such Investment Notes;
provided, however, that in determining whether the Holders of the requisite
principal amount of Investment Notes Outstanding have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Investment Notes
owned by the Company or any other obligor upon the Investment Notes or any
Affiliate of the Company or such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Investment Notes which the Trustee knows to be
so owned shall be so disregarded.
"Paying Agent" means any Person authorized by the Company to pay the
principal of or interest on any Investment Notes on behalf of the Company. The
Company or any of its subsidiaries may act as Paying Agent.
"Person" means any individual, corporation, partnership, joint venture,
limited liability company, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"Place of Payment" means a city or political subdivision thereof
designated as such by the Company in accordance with the terms of this
Indenture.
-4-
"Principal Corporate Trust Office" means the principal corporate trust
office of the Trustee at the location set forth in Section 1.5 or at such other
location as the Trustee may from time to time designate by written notice to the
Company.
"Redemption Price" means, with respect to any Investment Note to be
redeemed, the principal amount of such Investment Note plus any premium thereon
plus the interest accrued but unpaid to the date of such redemption.
"Register" and "Registrar" shall have the meanings specified in Section
2.3.
"Regular Record Date" for the interest payable on any Interest Payment
Date means the close of business on the date fifteen (15) days prior to such
Interest Payment Date.
"Responsible Officer" when used with respect to the Trustee means the
chairman or the vice chairman of the board of directors, the chairman or vice
chairman of the executive committee of the board of directors, the president,
any vice-president, the secretary, any assistant secretary, the treasurer, any
assistant treasurer, the cashier, any assistant cashier, any trust officer or
assistant trust officer, the controller and any assistant controller 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 to whom such matter is
referred because of his knowledge of and familiarity with the particular
subject.
"Responsible Officer of the Company" shall mean the Chairman or Vice
Chairman of the Board of Directors, the President, any Vice-President, the
Treasurer, the Controller or the Secretary of the Company.
"Senior Indebtedness" means any and all Indebtedness of the Company
(whether outstanding on the date hereof or hereafter created), except for any
particular Indebtedness, which expressly provides that such Indebtedness shall
be subordinate or shall rank pari passu in right of payment to the Investment
Notes.
"Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 2.6.
"Subsidiary" means, with respect to the Company, any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, officers or trustees
thereof is at the time owned in the aggregate, directly or indirectly, by the
Company and its Subsidiaries.
"Total Permanent Disability" means a determination by a physician
acceptable to the Company that the Holder of an Investment Note, who was
gainfully employed on a full-time basis at the date of issuance of such
Investment Note is unable to work on a full time basis during the succeeding
twenty-four (24) months. For purposes of this definition, "working on a
full-time basis"
-5-
shall mean working at least forty (40) hours per week. An acceptable physician
shall be an unaffiliated third party with experience in matters related to the
condition which resulted in the disability.
"Trustee" means U.S. Bank National Association, a national banking
association, until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Trustee" shall mean
such successor Trustee.
"Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939
(15 U.S.C. Sections 77aaa-77bbbb), as in force at the date as of which this
instrument was executed, except as provided in Section 7.5.
"U.S. Government Obligations" means direct obligations of the United
States of America for the payment of which the full faith and credit of the
United States of America is pledged.
"Vice President" when used with respect to the Company or the Trustee
means any vice president, whether or not designated by a number or a word or
words added before or after the title "vice president".
SECTION 1.2 Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee at the Trustee's request an Officers' Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Indenture relating to such particular application or request, no
additional certificate or opinion need be furnished.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(a) a statement that each individual signing such
certificate or opinion has read such covenant or condition and the
definitions herein relating thereto;
(b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; and
(c) a statement as to whether, in the opinion of each
such individual, such condition or covenant has been complied with.
-6-
SECTION 1.3 Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate 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, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such counsel's certificate or opinion is
based are erroneous. Any such certificate or Opinion of Counsel may be based,
insofar as it relates to factual matters, upon a certificate 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, or in the exercise of reasonable care should
know, that such certificate or opinion or representations are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
SECTION 1.4 Action by Holders.
(a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by (i) one or more instruments of
substantially similar tenor signed by such Holders in person or by agent or
proxy duly appointed in writing. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Sections 6.1 and 6.3) conclusive in
favor of the Trustee and the Company, if made in the manner provided in this
Section.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of any notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by an officer of a corporation or association or a member of a
partnership or an employee of a public or governmental agency on behalf of such
corporation, association, partnership or agency, or by an agent or fiduciary,
such certificate or affidavit shall also constitute sufficient
-7-
proof of his authority. The fact and date of the execution of any such
instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.
(c) The ownership of Investment Notes shall be proved by the
Register or by a certificate of the Registrar thereof.
(d) At any time prior to the taking of any action by the Holders
of the percentage in aggregate principal amount of the Investment Notes
specified in this Indenture in connection with such action, any Holder which has
consented to such action may, by filing written notice with the Trustee at its
Principal Corporate Trust Office and upon proof of holding as provided in this
Section 1.4, revoke such action so far as concerns such Investment Notes. Except
as aforesaid, any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Investment Note shall be conclusive
and binding upon such Holder and upon all future Holders of such Investment Note
and of every Investment Note issued upon the registration of transfer thereof or
in exchange therefor or in lieu thereof, in respect of anything done, omitted or
suffered to be done by the Trustee or the Company in reliance thereon, whether
or not notation of such action is made upon such Investment Note. Any action
taken by the Holders of the percentage in aggregate principal amount of the
Investment Notes specified in the Indenture in connection with such action shall
be conclusive and binding upon the Company, the Trustee and the Holders of all
of the Investment Notes.
(e) If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other action, the
Company may, at its option, by or pursuant to a Board Resolution, fix in advance
a record date for the determination of Holders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other action, but
the Company shall have no obligation to do so. If such a record date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after such record date, but only Holders of record
at the close of business on such record date shall be deemed to be the Holders
for the purposes of determining whether Holders of the requisite proportion of
Outstanding Investment Notes have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other
action, and for that purpose the Outstanding Investment Notes shall be computed
as of such record date; provided that no such authorization, agreement or
consent by the Holders on such record date shall be deemed effective unless it
shall become effective pursuant to the provisions of this Indenture not later
than six (6) months after the record date.
SECTION 1.5 Notices, etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be
sufficient for every purpose hereunder if and only if made, given,
furnished or filed in writing to or with the
-8-
Corporate Trust Department of the Trustee at the Principal Corporate
Trust Office which at the date of this Indenture is EP-MN-WS3C, 00
Xxxxxxxxxx Xxxxxx, Xx. Xxxx, Xxxxxxxxx 00000, attention: Xxxxxxx
Xxxxxxxx, or
(2) the Company by the Trustee or by any Holder shall be
sufficient for every purpose hereunder if in writing and mailed,
first-class, postage prepaid, to the Company addressed to it at 0000
Xxxx Xxxxxxx Xxxxxxxxx, Xx. Xxxxxxxxxx, Xxxxxxx 00000, to the attention
of the Corporate Secretary, or at any other address furnished in
writing to the Trustee by the Company with a copy to Xxxxxxx Xxxxxx
Xxxxxx Xxxxxxxx Xxxxxxxx & Xxxxxxxxx, P.A., 000 Xxxx Xxxxxxx Xxxxxx,
Xxxxx, Xxxxxxx 00000, attention: Xxxxxx X. Xxxxxx.
SECTION 1.6 Notices to Holders; Waiver.
Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first class, postage prepaid, to each Holder affected
by such event, at his address as it appears on the Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Holders is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
In case, by reason of the suspension of or irregularities in regular
mail service, it shall be impractical to mail notice of any event to Holders
when such notice is required to be given pursuant to any provision of this
Indenture, then any manner of giving such notice as shall be satisfactory to the
Trustee shall be deemed to be a sufficient giving of such notice.
In case, by reason of the suspension of publication of any Authorized
Newspaper, or by reason of any other cause, it shall be impossible to make
publication of any notice in an Authorized Newspaper or Authorized Newspapers as
required by this Indenture, then such method of publication or notification as
shall be made with the approval of the Trustee shall constitute a sufficient
publication of such notice.
SECTION 1.7 Conflict with Trust Indenture Act.
This Indenture is subject to the TIA and if any provision hereof
limits, qualifies or conflicts with another provision hereof which is required
to be included in this Indenture by any of the provisions of TIA, such required
provision shall control.
-9-
SECTION 1.8 Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.
SECTION 1.9 Successors and Assigns.
All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.
SECTION 1.10 Separability Clause.
In case any provision in this Indenture or in the Investment Notes
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.
SECTION 1.11 Benefits of Indenture.
Nothing in this Indenture or in the Investment Notes, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, the holders of Senior Indebtedness and the Holders of
Investment Notes, any benefit or any legal or equitable right, remedy or claim
under this Indenture.
SECTION 1.12 Legal Holidays.
In any case where the date of an Interest Payment Date or the Maturity
Date of any Investment Note shall not be a Business Day, then (notwithstanding
any other provision of the Investment Notes or this Indenture) payment of the
principal of, or interest on, any Investment Notes need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the nominal date of any such Interest Payment Date or
Maturity Date.
SECTION 1.13 Governing Law.
This Indenture and the Investment Notes issued hereunder shall be
controlled, construed and enforced in accordance with the laws of the State of
Florida applicable to contracts made and to be performed entirely in that State.
ARTICLE II
THE INVESTMENT NOTES
SECTION 2.1 General Terms of the Investment Notes.
(a) The outstanding aggregate principal amount of Investment Notes
outstanding at any time is limited to $100 million, provided, however, that the
Company and the Trustee may, without
-10-
the consent of any Holder, increase such aggregate principal amount of
Investment Notes which may be outstanding at any time. The Investment Notes may
be subject to notations, legends or endorsements required by law, stock exchange
rule, agreements to which the Company is subject or usage.
(b) The Investment Notes (i) shall not be evidenced by a
promissory note, (ii) are non-negotiable debt instruments and (iii) absent an
exchange for fully registered notes in definitive form pursuant to Section
2.7(b) hereof, shall only be issued in book-entry form. The record of beneficial
ownership of the Investment Notes shall be maintained and updated by the Company
through the establishment and maintenance of Accounts. Each Investment Note
shall be in such denominations as may be designated from time to time by the
Company but in no event in an original denomination less than $10,000. Separate
purchases may not be cumulated to satisfy the minimum denomination requirements.
(c) The Company shall designate, from time to time upon issuance
of Investment Notes, the term, maturity dated and interest rate provisions of a
series of Investment Notes and the term, maturity date and interest rate of each
Investment Note shall be indicated in a prospectus or supplemental prospectus
relating to the offer of the Investment Note. The term, maturity date and
interest rate of each Investment Note shall be confirmed in a Confirmation
Statement. The Company, without affecting the terms of any Outstanding
Investment Notes, reserves the right to vary the interest rate of subsequently
issued Investment Notes.
Each Investment Note shall bear interest from and commencing on its
Interest Accrual Date at its respective designated rate of interest. The
interest rate will be fixed for the term of the Investment Notes upon issuance.
Interest on an Investment Note shall be simple interest and the Holder
thereof may elect to have interest paid monthly, on the fifteenth day of each
calendar month; quarterly, on January 15, April 15, July 15 and October 15;
semi-annually, on January 15 and July 15; annually, on January 15; or upon
maturity. A Holder may change this election once during the term of the
Investment Note. To the extent any applicable interest payment date is not a
Business Day, then interest shall be paid instead on the next succeeding
Business Day.
(d) An Investment Note shall be renewed automatically for the same
term, and shall be deemed to have been renewed by the Holder thereof as of the
Maturity Date unless (i) the Holder has requested repayment of the Investment
Note in writing no earlier than ninety (90) days and no later than sixty (60)
days prior to the Maturity Date of such Investment Note (subject, however, to
Section 2.1(e) below), (ii) the Company has noticed its intention to repay such
Investment Note at least seven (7) days prior to the Maturity Date or (iii) the
Company has previously exercised its right pursuant to Section 2.1(e) below to
extend the Maturity Date of the Investment Note for an additional one (1) year
period. An Investment Note will continue to renew, as described herein, absent a
permitted action by either the Holder or the Company. All interest otherwise
payable to the Holder on the Maturity Date shall be paid to the Holder on such
date, and thereafter interest shall continue to accrue from the first day of
such renewed term. Such Investment Note, as renewed, will continue subject to
-11-
all of its provisions, including provisions relating to payment of interest and
redemption, and shall retain the same interest rate established in connection
with its original term.
The Company shall provide each Holder a written notice at least ninety
(90) days prior to the Maturity Date of the Investment Note held by such Holder
notifying such Holder (i) of the pending maturity of the Investment Note and
(ii) that the automatic renewal provision described in the preceding paragraph
will take effect unless the Holder requests payment or the Company elects to
repay the Investment Note (as described in the preceding paragraph). If the
Company gives notice to a Holder of the Company's intention to repay an
Investment Note at maturity, no interest will accrue after the Maturity Date for
such Investment Note.
(e) Notwithstanding the election of a Holder to request repayment
of his or her Investment Note on the Maturity Date, the Company may elect, in
its discretion, at any time prior to the Maturity Date of an Investment Note, to
extend the Maturity Date of such Investment Note for an additional one (1) year
period by providing the Holder written notice of such election no later than
five (5) days prior to the Maturity Date. The Company's right to extend the
Maturity Date of an Investment Note for the additional one (1) year period may
be exercised only once, and after the Maturity Date of an Investment Note has
been extended for the additional one (1) year period by the Company pursuant to
this provision, such Investment Note shall not be subject to any additional
extensions or renewals of its Maturity Date, including the automatic renewal
provisions of Section 2.1(d) hereof. All interest otherwise payable to the
Holder on the Maturity Date shall be paid to the Holder on such date, and
thereafter interest shall continue to accrue from the first day of such extended
term. Such Investment Note, as extended, will continue subject to all of its
provisions, including provisions relating to payment of interest and redemption,
and shall retain the same interest rate established at the time of its original
issuance.
(f) At its option, the Company may redeem an Investment Note in
whole or in part, at any time at a redemption price equal to the principal
amount of such Investment Note plus the interest accrued but unpaid to the date
of redemption. Investment Notes with a remaining duration of more than twelve
(12) months are subject to early repayment at the election (i) of the Holder
upon the occurrence of a Total Permanent Disability of such Holder (or if such
Investment Note is held jointly, upon the Total Permanent Disability of one of
such record Holders), (ii) of a Holder's estate after a Holder's death or (iii)
if such Investment Note is held jointly, of a Holder upon the death of the other
joint Holder. Otherwise, Holders will have no right to demand early repayment.
The Company may modify its policy on redemptions after death or Total Permanent
Disability provided that any change in such policy shall not affect any
Outstanding Investment Note.
(g) The Investment Notes are junior in right of payment to the
Company's existing and future Senior Indebtedness.
(h) The Investment Notes are not guaranteed or secured by any lien
on any of the Company's assets. The Company will not be required to contribute,
as a means of repaying the Investment Notes upon the Maturity Date, funds to a
separate fund, such as a sinking fund.
-12-
(i) The terms and provisions contained in the Investment Notes
shall constitute, and are hereby expressly made, a part of this Indenture and to
the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, and the Holders by accepting the Investment Notes,
expressly agree to such terms and provisions and to be bound thereby. In case of
a conflict, the provisions of this Indenture shall control.
SECTION 2.2 Confirmation Statement.
An Investment Note shall not be validly issued until an Account is
established by the Company in the name of the purchaser. Promptly after
issuance, a confirmation statement (a "Confirmation Statement") confirming the
issuance of the Investment Note shall be delivered to the purchaser.
SECTION 2.3 Registrar and Paying Agent.
The Company shall maintain (i) an office or agency where Investment
Notes may be presented for registration of transfer or for exchange
("Registrar") and (ii) an office or agency where Investment Notes may be
presented for payment ("Paying Agent"). The Registrar shall keep a register (the
"Register") of the Investment Notes and of their transfer and exchange. The
Register shall contain a list of all of the Accounts reflecting the beneficial
ownership of the Investment Notes. The Company may appoint one or more
co-registrars and one or more additional paying agents. The term "Registrar"
includes any co-registrar, and the term "Paying Agent" includes any additional
paying agent. The Company may change any Paying Agent or Registrar without prior
notice to any Holder; provided that the Company shall promptly notify the
Holders of the name and address of any Agent not a party to this Indenture. The
Company may act as Paying Agent and/or Registrar. In the event the Company uses
any Agent other than the Company or the Trustee, the Company shall enter into an
appropriate agency agreement with such Agent, which agreement shall incorporate
the provisions of the TIA. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall notify the Trustee of the
name and address of any such Agent. If the Company fails to maintain a Registrar
or Paying Agent, or fails to give the foregoing notice, the Trustee shall act as
such, and shall be entitled to appropriate compensation in accordance with
Section 6.7 hereof.
The Company shall be the initial Registrar and Paying Agent. The
Company initially appoints the Trustee as agent for service of notices and
demands in connection with the Investment Notes. The Company shall act as Paying
Agent until such time as the Company gives the Trustee written notice otherwise.
SECTION 2.4 Transfer and Exchange.
(a) The Investment Notes are non-negotiable instruments and cannot
be transferred without the prior written consent of the Company, except for
involuntary transfers or transfers by operation of law. Requests to the Company
for the transfer of the Accounts maintained for the benefit of the Holders of
the Investment Notes shall be:
-13-
(i) duly executed by the current holder of the Account,
as reflected on the Register as of the date of receipt of such transfer request,
or his attorney duly authorized in writing;
(ii) accompanied by the written consent of the Company to
the transfer; and
(iii) if requested by the Company, an opinion of Holder's
counsel (which counsel shall be reasonably acceptable to the Company) that the
transfer does not violate any applicable securities laws and/or a signature
guarantee.
Upon transfer of an Investment Note, the Company will provide the new registered
owner of the Investment Note with a Confirmation Statement which will evidence
the transfer of the Account on the Company's records.
(b) The Company may assess service charges to a Holder for any
registration of transfer or exchange, and the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith.
(c) The Company shall treat the individual or entity listed on
each Account maintained by or on behalf of the Company as the absolute owner of
the Investment Note represented thereby for purposes of receiving payments
thereon and for all other purposes whatsoever.
SECTION 2.5 Payment of Interest and Principal; Interest and
Principal Rights Preserved.
(a) Each Investment Note shall bear interest from and commencing
on its Interest Accrual Date at such rate of interest as the Company shall
determine from time to time; provided, however, that the interest rate will be
fixed for the term of the Investment Notes upon issuance and shall be specified
in the relevant Confirmation Statement. The Holder of an Investment Note may
elect to have interest paid monthly, quarterly, semi-annually, annually, or upon
maturity as specified upon issuance and confirmed in the Confirmation Statement.
To the extent any applicable interest payment date is not a Business Day, then
interest shall be paid instead on the next succeeding Business Day.
(b) Each Investment Note shall accrue interest at the rate
specified for such Investment Note and such interest shall be payable on each
Interest Payment Date, until the principal thereof becomes due and payable. Any
installment of interest payable on an Investment Note that is caused to be
punctually paid or duly provided for by the Company on the applicable Interest
Payment Date shall be paid to the Holder in whose name such Investment Note is
registered in the Register on the applicable Regular Record Date with respect to
the Investment Notes outstanding, by check mailed to such Holder's address as it
appears in the Register on such Regular Record Date. The payment of any interest
payable in connection with the payment of any principal payable with respect to
such Investment Note on a Maturity Date or redemption date shall be payable as
provided below. Any installment of interest not punctually paid or duly provided
for shall be payable in the manner and to the Holders specified in Section 2.6.
-14-
(c) Each of the Investment Notes shall have a Maturity Date of
principal as established at the time of issuance. The principal of each
Investment Note shall be paid in full no later than the Maturity Date originally
indicated in the Confirmation Statement unless the term of such Investment Note
is renewed or extended pursuant to Section 2.1(d) or (e) hereof or such
Investment Note becomes due and payable at an earlier date by acceleration,
redemption or otherwise.
(d) The principal payment made on any Investment Note on any
Maturity Date (or the Redemption Price of any Investment Note required to be
redeemed), and any accrued interest thereon, shall be payable on or after the
Maturity Date or redemption date therefor at the office or agency of the Company
maintained by it for such purpose or at the office of any Paying Agent for such
Investment Note.
(e) Notwithstanding any of the foregoing provisions with respect
to payments of principal of and interest on the Investment Notes, if the
Investment Notes have become or been declared due and payable following an Event
of Default, then payments of principal of and interest on the Investment Notes
shall be made in accordance with Article V hereof.
(f) All computations of interest due with respect to any
Investment Note shall be computed as simple interest on the basis of a 360-day
year of twelve 30-day months.
(g) The Company shall pay the principal and interest on the
Investment Notes by check mailed to each Holder's address as it appears in the
Investment Note Register on the applicable Regular Record Date.
SECTION 2.6 Defaulted Interest.
If the Company defaults in a payment of interest on any Investment
Note, it shall pay the defaulted interest plus, to the extent lawful, any
interest payable on the defaulted interest (together, the "Defaulted Interest"),
to the Holder of such Investment Note on a subsequent Special Record Date, which
date shall be at the earliest practicable date but in all events at least five
(5) Business Days prior to the payment date, in each case at the rate provided
in the Investment Note. The Company shall, with written notification to the
Trustee, fix or cause to be fixed each such Special Record Date and payment
date. At least fifteen (15) days before any such Special Record Date, the
Company (or the Trustee, in the name of and at the expense of the Company) shall
mail to Holders a notice that states (i) the Special Record Date, (ii) the
related payment date and (iii) the amount of such interest to be paid.
-15-
SECTION 2.7 Book-Entry Registration.
(a) The Registrar shall maintain a book-entry registration and
transfer system through the establishment of Accounts for the benefit of Holders
of Investment Notes as the sole method of recording the ownership and transfer
of ownership interests in such Investment Notes. The registered owners of the
Accounts established by the Company in connection with the purchase or transfer
of the Investment Notes shall be deemed to be the Holders of the Investment
Notes outstanding for all purposes under this Indenture. The Company shall
promptly notify the Registrar (if the Registrar is other than the Company) of
the acceptance of a subscriber's order to purchase an Investment Note and the
Company shall credit its book-entry registration and transfer system to the
Account of each Investment Note purchaser, the principal amount of such
Investment Note owned of record by the purchaser. The total amount of any
principal and/or interest due and payable to book-entry owners of the Accounts
maintained by the Company as provided in this Indenture shall be credited to
such Accounts by the Company within the time frames provided in this Indenture.
If the Trustee is not acting as Registrar, the Company shall notify the
Trustee no less frequently than monthly of the establishment of new Accounts and
the transfer of existing Accounts.
(b) Book-entry interests in the Accounts evidencing ownership of
the Investment Notes are exchangeable for fully registered notes in definitive
form in those names as the Company directs only if:
(1) the Company, at its option, advises the Trustee in
writing of the Company's election to terminate the book-entry system; or
(2) after the occurrence of an Event of Default under the
Indenture: (i) Holders aggregating more than a majority of the Outstanding
amount of the Investment Notes advise the Trustee in writing that the
continuation of a book-entry system is no longer in the best interests of such
Holders of the Investment Notes and (ii) the Trustee notifies all Holders of the
occurrence of any such Event of Default and the availability of definitive notes
to Holders of the Investment Notes requesting such notes in definitive form.
(c) Subject to the exception described above in Section 2.7(b)
hereof, the book-entry interests in the Investment Notes shall not otherwise be
exchangeable for fully registered notes in definitive form.
SECTION 2.8 Periodic Statements.
The Company shall send each Holder via U.S. mail no later than the
thirtieth (30th) day after each calendar year end in which such Holder had an
Outstanding balance in such Holder's Account, a statement which indicates as of
the calendar year end preceding the mailing: (i) the balance of such Account of
each Investment Note and (ii) any accrued interest.
-16-
SECTION 2.9 Mutilated, Destroyed, Lost and Stolen Investment
Notes.
(a) In the event that Investment Notes have been issued in
definitive form pursuant to Section 2.7(b) hereof, and if (i) any mutilated
Investment Note is surrendered to the Trustee, or if the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any
Investment Note, and (ii) there is delivered to the Company and the Trustee such
security or indemnity as may be required by them to save each of them harmless,
then, in the absence of notice to the Company or the Trustee that such
Investment Note has been acquired by a bona fide purchaser, the Company shall
execute and upon its request the Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Investment Note, a new Investment Note of like tenor and principal amount,
bearing a number not contemporaneously outstanding.
(b) In case any such mutilated, destroyed, lost or stolen
Investment Note has become or is about to become due and payable, the Company in
its discretion may, instead of issuing a new Investment Note, pay or authorize
the payment of such Investment Note (without surrender thereof except in the
case of a mutilated Investment Note) if the applicant for such payment shall
furnish to the Company such security or indemnity as it may require to save it
harmless and, in the case of destruction, loss or theft, evidence to the
satisfaction of the Company of the destruction, loss or theft of such Investment
Note and of the ownership thereof.
(c) Upon the issuance of any new Investment Note under this
Section 2.9, 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) connected
therewith.
(d) The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Investment
Notes.
SECTION 2.10 Holder Lists.
The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
the Holders of the Investment Notes and shall otherwise comply with TIA
'312(a).
SECTION 2.11 Cancellation.
At any time, the Company may notify the Trustee of the cancellation of
Investment Notes and, in the event fully registered notes in definitive form
have been issued pursuant to Section 2.7(b) hereof, the Company may deliver
Investment Notes to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Investment Notes in definitive form
surrendered to them for registration of transfer, exchange or payment. The
Trustee shall cancel all Investment Notes surrendered for transfer, exchange,
payment, replacement or cancellation and shall
-17-
destroy such canceled Investment Notes (subject to the record retention
requirement of the Exchange Act) and deliver a certificate of such destruction
to the Company, unless the Company otherwise directs.
SECTION 2.12 Execution, Authentication and Delivery.
Investment Notes issued in definitive form pursuant to Section 2.7(b)
hereof, bearing the manual or facsimile signatures of individuals who were at
any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Investment Notes or did
not hold such offices at the date of such Investment Notes. At any time and from
time to time after the execution and delivery of this Indenture and subject to
Section 2.7(b), the Company may deliver such Investment Notes executed by the
Company to the Trustee for authentication, together with a Company Order of the
authentication and delivery of such Investment Notes; and the Trustee shall
authenticate and deliver such Investment Notes as in this Indenture provided and
not otherwise. All Investment Notes shall be dated the date of their
authentication. No Investment Note in definitive form shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose, unless
there appears on such Investment Note a certificate of authentication executed
by the Trustee; and such certificate upon any Investment Note in definitive form
shall be conclusive evidence, and the only evidence, that such has been duly
authenticated and delivered hereunder.
ARTICLE III
COVENANTS
SECTION 3.1 Payment of Principal and Interest.
The Company will duly and punctually pay the principal of and interest
on the Investment Notes in accordance with the terms of the Investment Notes and
this Indenture. Principal and interest shall be considered paid on the date due
if the Paying Agent, if other than the Company, holds at least one Business Day
before that date money deposited by the Company in immediately available funds
and designated for and sufficient to pay all principal and interest then due;
provided, however, that principal and interest shall not be considered paid
within the meaning of this Section 3.1 if money is held by the Paying Agent for
the benefit of holders of Senior Debt pursuant to the provisions of Article X
hereof. Such Paying Agent shall return to the Company, no later than five (5)
days following the date of payment, any money (including accrued interest) that
exceeds such amount of principal and interest paid on the Investment Notes in
accordance with this Section 3.1.
SECTION 3.2 Maintenance of Office or Agency.
The Company will maintain an office or agency in the Place of Payment
where notices and demands to or upon the Company in respect of the Investment
Notes and this Indenture may be served and where Investment Notes may be
surrendered for payment and for registration of transfer or for exchange. The
Company will give prompt written notice to the Trustee of the location, and of
any change in the location, of such office or agency. If at any time the Company
shall fail to
-18-
maintain such office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, notices and demands may be made or served
at the Principal Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such notices, demands,
presentations and surrenders.
SECTION 3.3 Money for Investment Note Payments to be Held in
Trust.
If the Company shall at any time act as its own Paying Agent, it will,
on or before each due date of the principal of or interest on any of the
Investment Notes, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided, and will promptly notify the Trustee of its action or failure
to so act.
Whenever the Company shall have one or more Paying Agents, it will,
prior to each due date of the principal of or interest on any of the Investment
Notes, deposit with a Paying Agent a sum sufficient to pay the principal or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such sums, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its action or failure so to act.
The Company will cause each Paying Agent other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will:
(1) hold all sums held by it for the payment of principal
of or interest on the Investment Notes in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons
or otherwise disposed of as herein provided;
(2) give the Trustee notice of any default by the Company
(or any other obligor upon the Investment Notes) in the making of any
payment of principal or interest; and
(3) at any time during the continuance of any such
default, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same terms as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of or interest on any
Investment Note and remaining unclaimed for two (2) years after such principal
or interest has become due and payable, shall be paid to the
-19-
Company upon Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Investment Note shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in an Authorized Newspaper in
the Place of Payment, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than thirty (30) days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.
The Trustee and the Paying Agent shall promptly pay to the
Company upon Company Request any excess money or securities held by them at any
time.
SECTION 3.4 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, all material taxes, assessments and
governmental charges levied or imposed upon it or upon its income, profits or
property; provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment or charge
whose amount, applicability or validity is being contested in good faith by
appropriate proceedings.
SECTION 3.5 Maintenance of Properties.
The Company will, in all material respects, cause all its properties
and the properties of its Subsidiaries used or useful in the conduct of the
business of the Company and its Subsidiaries 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 times; provided, however, that
nothing in this Section shall prevent the Company or a Subsidiary from
discontinuing the operation and maintenance of any of its properties if such
discontinuance is, in the judgment of the Company, desirable in the conduct of
its business and is not disadvantageous in any material respect to the Holders.
SECTION 3.6 Statement as to Compliance.
The Company will deliver to the Trustee, within one hundred twenty
(120) days after the end of each fiscal year of the Company, a written statement
signed by the President or a Vice President and by the Chief Financial Officer,
the Treasurer, an Assistant Treasurer, the Controller or an Assistant Controller
of the Company, stating, as to each signatory thereof, that:
(1) a review of the activities of the Company during such
year and of performance under this Indenture has been made under his or
her supervision, and
-20-
(2) to the best of his or her knowledge, based on such
review, the Company has performed and fulfilled all of its obligations
under this Indenture throughout such year, or, if an Event of Default
shall have occurred, specifying each such Event of Default known to the
signatory and the nature and status thereof.
The Company will, so long as any of the Investment Notes are
Outstanding, deliver to the Trustee, forthwith upon becoming aware of any Event
of Default, an Officer's Certificate specifying such Event of Default.
SECTION 3.7 Corporate Existence.
Subject to Article VIII, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect the corporate
existence, rights (charter and statutory) and franchises of the Company and it
Subsidiaries; provided, however, that the Company shall not be required to
preserve any right or franchise of the Company or its Subsidiaries if the Board
of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company or its Subsidiaries and
that the loss thereof is not disadvantageous in any material respect to the
Holders.
SECTION 3.8 Restrictions on Dividends, Redemptions and Other
Payments.
The Company shall not declare or pay any dividends on, or purchase,
redeem or otherwise acquire for value, any of its Capital Stock now or hereafter
outstanding (other than redemption or repurchase of the Investment Notes in
accordance with the terms of this Indenture) or return any capital to holders of
its Capital Stock as such, or make any distribution of assets to holders of its
Capital Stock as such, unless, on the date of any such dividend declaration (a
"Declaration Date") or the date of any such purchase, redemption, payment or
distribution specified above the Company is not in default in the payment of
interest on the Investment Notes and no Event of Default has occurred and is
continuing.
ARTICLE IV
HOLDERS' LISTS AND REPORTS BY THE
TRUSTEE AND THE COMPANY
SECTION 4.1 Company to Furnish Trustee Names and Addresses of
Holders.
The Company shall furnish or cause to be furnished to the Trustee,
within ten (10) days after the end of each quarter during the term of this
Indenture and as of such other times as the Trustee may request in writing, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Investment Notes and the aggregate principal amount
outstanding as of such quarter end; provided, however, that the Company shall
not be required to furnish the Trustee the names and addresses of the Holders of
Investment Notes if the Trustee receives such names and addresses in its
capacity as Registrar. The Company shall otherwise comply with TIA '312(a).
-21-
SECTION 4.2 Preservation of Information; Communications to
Holders.
(a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders of Investment Notes
contained in the most recent list furnished to the Trustee as provided in
Section 4.1 and the names and addresses of Holders of Investment Notes received
by the Trustee at any time that it is acting as Registrar (if so acting). The
Trustee may destroy any list furnished to it as provided in Section 4.1 upon
receipt of a new list so furnished.
(b) The Trustee shall comply with Section 312(b) of the TIA. The
Trustee, the Company, and any other Person shall have the protection of Section
312(c) of the TIA.
SECTION 4.3 Reports by Trustee.
(a) So long as the Investment Notes are Outstanding, within sixty
(60) days after May 15 of each year (the "Reporting Date"), the Trustee shall,
if required by Section 313(a) of the TIA, transmit by mail to the Company and
all Holders, as their names and addresses appear in the Register, a brief report
dated as of such Reporting Date that complies with Section 313(a) of the TIA.
(b) A copy of each such report shall, at the time of such
transmission to the Company and the Holders, be filed by the Trustee with each
securities exchange upon which the Investment Notes are listed, and also with
the Commission. The Company will notify the Trustee when the Investment Notes
are listed on any securities exchange.
SECTION 4.4 Reports by Company.
The Company will:
(1) file with the Trustee, within fifteen (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 said Sections, then it will file with the Trustee and the
Commission, in accordance with the 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 securities listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations;
(2) 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 of this Indenture as
may be required from time to time by such rules and regulations; and
-22-
(3) transmit by mail to all Holders as their names and
addresses appear in the Register, such summaries of any information, documents
and reports required to be filed by the Company pursuant to paragraphs (1) and
(2) of this Section as may be required by rules and regulations prescribed from
time to time by the Commission.
(4) furnish to the Trustee, not less often than annually,
a 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 set forth in Article III of this
Indenture. For purposes of this paragraph, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under
the Indenture.
ARTICLE V
REMEDIES
SECTION 5.1 Events of Default
"Event of Default", wherever used herein means any one of the following
events, continued for the period of time, if any, and after the giving of the
notice, if any, therein designated, (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):
(1) default in the payment of any interest upon any
Investment Note when it becomes due and payable, and continuance of
such default for a period of thirty (30) days; or
(2) default in the payment of the principal of any
Investment Note at its Maturity Date and continuance of such default
for a period of thirty (30) days; or
(3) default in the performance, or breach, of any
material covenant or warranty of the Company in this Indenture (other
than a covenant or warranty a default in the performance or the breach
of which is elsewhere in this Section specifically dealt with), and
continuance of such default or breach for a period of sixty (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 at least a majority in aggregate principal amount of the Investment
Notes then Outstanding, a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is
a "Notice of Default" hereunder; or
(4) the entry of a decree or order by a court having
jurisdiction in the premises adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect
of the Company under the Federal Bankruptcy Act or any other applicable
Federal or State law, or appointing a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Company or of
any substantial part of its property, or ordering the winding up or
-23-
liquidation of its affairs, and the continuance of any such decree or
order unstayed and in effect for a period of ninety (90) consecutive
days; or
(5) the institution by the Company of proceedings to be
adjudicated a bankrupt or insolvent, or the consent by it to the
institution of bankruptcy or insolvency proceedings against it, or the
filing by it of a petition or answer or consent seeking reorganization
or relief under the Federal Bankruptcy Act or any other similar
applicable Federal or State law, or the consent by it to the filing of
any such petition or to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator (or other similar official) of the
Company or of any substantial part of its property, or the making by it
of an assignment for the benefit of creditors, or the admission by it
in writing of its inability to pay its debts generally as they become
due, or the taking of corporate action by the Company in furtherance of
any such action.
SECTION 5.2 Acceleration of Maturity; Rescission and Annulment.
If an Event of Default described in paragraphs (1), (2), (4) or (5) of
Section 5.1 occurs and is continuing, then and in every such case the Trustee or
the Holders of not less than a majority in aggregate principal amount of the
Investment Notes then Outstanding may declare the principal of all the
Investment Notes to be due and payable immediately, by a notice in writing to
the Company (and to the Trustee if given by the Holders), and upon any such
declaration, such principal shall become immediately due and payable.
At any time after such a declaration of acceleration has been made and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter in this Article provided, the Holders of a majority
in principal amount of the Investment Notes then Outstanding, by written notice
to the Company and the Trustee, may rescind and annul such declaration and its
consequences if:
(1) the Company has paid or deposited with the Trustee a
sum sufficient to pay:
(a) all overdue interest on all Investment
Notes;
(b) the principal of any Investment Notes which
have become due otherwise than by such declaration of
acceleration and interest thereon at the rate borne by the
Investment Notes; and
(c) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and
counsel; and
(2) all Events of Default, other than the non-payment of
the principal of Investment Notes which have become due solely by such
acceleration, have been cured or waived as provided in Section 5.13.
-24-
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
SECTION 5.3 Suits for Enforcement by Trustee.
If an Event of Default occurs and is continuing, the Trustee may in its
discretion proceed to protect and enforce its rights and the rights of the
Holders 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 Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.
SECTION 5.4 Trustee May File Proofs of Claim.
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company, or any other obligor upon the
Investment Notes or the property of the Company or of such other obligor or
their creditors, the Trustee (irrespective of whether the principal of the
Investment Notes 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, by intervention in such proceeding or
otherwise,
(1) to file and prove a claim for the whole amount of
principal and interest owing and unpaid in respect of the Investment
Notes and to file such other papers or documents as may be necessary or
advisable in order to have the claim 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
(2) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same;
and any 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 to 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 6.7.
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 Investment
Notes or the rights of any Holder thereof, or to authorize the Trustee to vote
in respect of the claim of any in any such proceeding.
-25-
SECTION 5.5 Trustee May Enforce Claims Without Possession of
Investment Notes.
All rights of action and claims under this Indenture or the Investment
Notes may be prosecuted and enforced by the Trustee. The Trustee will retain
such enforcement rights without the possession of any of the Investment Notes or
the production thereof in any proceeding relating thereto. 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 Investment Notes in respect of which such judgment has been recovered.
SECTION 5.6 Application of Money Collected.
Any money collected by the Trustee pursuant to this Article shall,
subject to Article X, be applied in the following order, at the date or dates
fixed by the Trustee:
First: To the Trustee for amounts due under Section 6.7;
Second: To the Holders for amounts then due and unpaid upon
the Investment Notes for principal and interest, in respect of which or for the
benefit of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Investment Notes for principal and interest, respectively; and
Third: To the Company.
SECTION 5.7 Limitation on Suits.
No Holder of any Investment Note shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:
(1) such Holder has previously given written notice to
the Trustee and the Company of a continuing Event of Default;
(2) the Holders of not less than a majority in aggregate
principal amount of the Outstanding Investment Notes shall have made
written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee
reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request;
(4) the Trustee for sixty (60) days after its receipt of
such notice, request and offer of indemnity has failed to institute any
such proceedings; and
-26-
(5) no direction inconsistent with such written request
has been given to the Trustee during such sixty (60) day period by the
Holders of a majority in principal amount of the Outstanding Investment
Notes;
it being understood and intended that no one or more Holders of Investment Notes
shall have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders or to obtain or to seek to obtain priority or preference over any
other Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all the Holders of
Investment Notes.
SECTION 5.8 Unconditional Right of Holders to Receive Principal
and Interest.
Notwithstanding any other provision in this Indenture, the Holder of
any Investment Note shall have the right which is absolute and unconditional to
receive payment of the principal of and interest on such Investment Note on the
Maturity Date expressed in any Investment Note, as such Maturity Date may be
extended or renewed in accordance with this Indenture and to institute suit for
the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder.
SECTION 5.9 Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case the Company, the
Trustee and the Holders shall, subject to any determination in such proceeding,
be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.
SECTION 5.10 Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Investment Notes in Section 2.9 hereof,
no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
SECTION 5.11 Delay or Omission Not A Waiver.
No delay or omission of the Trustee or of any Holder 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. Every right and remedy given by this Article or by law
-27-
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 5.12 Control by Holders.
The Holders of a majority in principal amount of the Outstanding
Investment Notes 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 that:
(1) such direction shall not be in conflict with any rule
of law or with this Indenture; and
(2) the Trustee may take any other action deemed proper
by the Trustee which is not inconsistent with such direction.
SECTION 5.13 Waiver of Past Defaults.
The Holders of a majority in principal amount of the Outstanding
Investment Notes may, on behalf of the Holders of all the Investment Notes,
waive any past default hereunder and its consequences, except a default:
(1) in the payment of the principal of or interest on any
Investment Note; or
(2) in respect of a covenant or provision hereof which
under Article VII cannot be modified or amended without the consent of
the Holders of each Outstanding Investment Note affected.
Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
SECTION 5.14 Undertaking for Costs.
All parties to this Indenture agree, and each Holder of any Investment
Note by his acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than ten percent (10%) in principal amount of the Outstanding
Investment Notes, or to any suit instituted by any Holder for the enforcement of
the
-28-
payment of the principal of, or interest on, any Investment Note on or after the
Maturity Date expressed in such Investment Note.
SECTION 5.15 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 hereafter 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 it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.
ARTICLE VI
THE TRUSTEE
SECTION 6.1 Certain Duties and Responsibilities.
(a) Except during the continuance of an Event of Default,
(1) the Trustee undertakes to perform such duties and
only such duties as are specifically set forth in this Indenture, and
no implied covenants or obligations shall be read into this Indenture
against the Trustee, and
(2) in the absence of bad faith on its part, the Trustee
may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of
this Indenture; but in the case of any such certificates or opinions
which by any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this
Indenture.
(b) In case an Event of Default has occurred and is continuing,
the Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.
(c) No provision of this Indenture shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:
(1) this Subsection shall not be construed to limit the
effect of Subsection (a) of this Section;
-29-
(2) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it shall
be proved that the Trustee was negligent in ascertaining the pertinent
facts;
(3) the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of not less than a majority in
principal amount of the Outstanding Investment Notes relating to the
time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture; and
(d) no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.
(e) Whether or not therein expressly so provided, every provision
of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section.
SECTION 6.2 Notice of Defaults.
Within ninety (90) days after the occurrence of any default hereunder,
the Trustee shall transmit by mail to all Holders, as their names and addresses
appear in the Register, notice of such default hereunder known to the Trustee,
unless such default shall have been cured or waived; provided, however, that,
except in the case of any default of the character specified in Section 5.1(1)
or (2), 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 Responsible Officers of the Trustee in good faith determine that
the withholding of such notice is in the interests of the Holders; and provided,
further, that in the case of any default of the character specified in Section
5.1(3), no such notice to Holders shall be given until at least sixty (60) days
after the occurrence thereof. For the purpose of this Section, "default" means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.
SECTION 6.3 Certain Rights of Trustee.
Except as otherwise provided in Section 6.1:
(1) the Trustee may rely and shall be protected in acting
or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, Confirmation Statement, Investment 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;
-30-
(2) any request or direction of the Company mentioned
herein shall be sufficiently evidenced by a Company Request or Company
Order and any resolution of the Board of Directors shall be
sufficiently evidenced by a Board Resolution;
(3) whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or established
prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon an Officers'
Certificate;
(4) 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 reliance
thereon;
(5) the Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture at the
request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee reasonable
Investment Note or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with such
request or direction;
(6) the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, Confirmation Statement, Investment
Note or other paper or document but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters
as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or
attorney;
(7) 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
(8) the Trustee shall have no duty to inquire as to the
performance of the Company's covenants in Article III hereof. In
addition, the Trustee shall not be deemed to have knowledge of any
Event of Default except any Event of Default of which the Trustee shall
have received written notification or obtained actual knowledge.
SECTION 6.4 Not Responsible for Recitals or Issuance of
Investment Notes.
The recitals contained herein and in any Investment Notes issued in
definitive form pursuant to Section 2.7(b) hereof, except the certificates of
authentication, shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture, the
Confirmation Statements or of
-31-
the Investment Notes. The Trustee shall not be accountable for the use or
application by the Company of Investment Notes or the proceeds thereof.
SECTION 6.5 May Hold Investment Notes.
The Trustee, any Paying Agent, Registrar or any other agent of the
Company, in its individual or any other capacity, may become the owner or
pledgee of Investment Notes and, subject to Sections 6.8 and 6.12, if operative,
may otherwise deal with the Company with the same rights it would have if it
were not Trustee, Paying Agent, Registrar or such other agent.
SECTION 6.6 Money Held in Trust.
Money held by the Trustee in trust hereunder shall be held in a
separate interest-bearing account and such funds shall at all times be
segregated from all other funds and assets owned or held by the Trustee. Any
interest on any money received by the Trustee hereunder shall be for the benefit
of the Company and shall be paid to the Company upon Company Request.
SECTION 6.7 Compensation and Reimbursement.
The Company agrees:
(1) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);
(2) except as otherwise expressly provided herein, to
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the
reasonable compensation and the expenses and disbursements of its
agents and counsel), except any such expense, disbursement or advance
as may be attributable to its negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or
bad faith on its part, arising out of or in connection with the
acceptance or administration of this trust, including the costs and
expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or
duties hereunder.
SECTION 6.8 Corporate Trustee Required; Eligibility;
Disqualification.
There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America or of any State or Territory or of the District of Columbia or a
corporation or other person permitted to act as Trustee by the Commission,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000, and subject to supervision or
examination by Federal or Xxxxx, Xxxxxxxxxxx xx
-00-
Xxxxxxxx xx Xxxxxxxx authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. Neither the Company nor any of its Affiliates shall
serve as Trustee hereunder. The Trustee shall be subject to the provisions of
Section 310(b) of the Trust Indenture Act. This Indenture shall always have a
Trustee who satisfies the requirements of Section 310(a)(1) of the Trust
Indenture Act.
If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.
SECTION 6.9 Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of
a successor trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee under Section 6.10.
(b) The Trustee may resign at any time by giving written notice
thereof to the Company. If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within thirty (30) days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.
(c) The Trustee may be removed at any time by Act of the Holders
of a majority in principal amount of the Outstanding Investment Notes, delivered
to the Trustee and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with the provisions
of Section 310(b) of the Trust Indenture Act after written request
therefor by the Company or by any Holder who has been a bona fide
Holder of an Investment Note or Investment Notes for at least six (6)
months; or
(2) the Trustee shall cease to be eligible under Section
310(a) of the Trust Indenture Act and shall fail to resign after
written request therefor by the Company or by any such Holder; or
(3) the Trustee shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee
or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation;
then, in any such case, (i) the Company, by a Board Resolution, may remove the
Trustee and appoint a successor trustee, or (ii) subject to the provisions of
Section 5.14, any Holder who has been a bona
-33-
fide Holder of an Investment Note for at least six (6) months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
trustee.
(e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee. If,
within one (1) year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Investment Notes
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment, become
successor Trustee and supersede the successor Trustee appointed by the Company.
If no successor Trustee shall have been so appointed by the Company or the
Holders and accepted appointment in the manner hereinafter provided, any Holder
who has been a bona fide Holder of an Investment Note for at least six (6)
months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the appointment of a successor Trustee.
(f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Investment Notes as their names and addresses appear in the Register.
Each notice shall indicate the name of the successor Trustee and the address of
its Principal Corporate Trust Office.
SECTION 6.10 Acceptance of Appointment by Successor.
Every successor Trustee appointed hereunder shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the registration or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee; but, on request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee, and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder, subject nevertheless to its lien, if any,
provided for in Section 6.7. Upon request of any such successor Trustee, the
Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all of such rights, power
and trusts.
No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article VI.
-34-
SECTION 6.11 Merger, Conversion, Consolidation or Succession to
Business of Trustee.
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article VI, without the execution or filing of any paper or any further act on
the part of any of the parties hereto.
SECTION 6.12 Preferential Collection of Claims against Company.
The Trustee shall comply with Section 311(a) of the Trust Indenture
Act, excluding any creditor relationship listed in Section 311(b) of the Trust
Indenture Act. A trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent indicated therein.
ARTICLE VII
SUPPLEMENTAL INDENTURES
SECTION 7.1 Supplemental Indentures Without Consent of Holders.
Without the consent of the Holders of any Investment Notes, the
Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental hereto, in
form satisfactory to the Trustee, for any of the following purposes:
(1) to establish the form or terms of the Investment
Notes not inconsistent with the terms of this
Indenture;
(2) to cure any ambiguity, defect or inconsistency;
(3) to evidence the succession of another corporation to
the Company, and the assumption by any such successor
of the covenants of the Company contained herein and
in the Investment Notes;
(4) to provide for additional uncertificated or
certificated Investment Notes;
(5) to make any change that does not adversely affect the
legal rights hereunder of any Holder, including but
not limited to an increase in the aggregate dollar
amount of Investment Notes which may be outstanding
under this Indenture;
(6) to modify or eliminate the right of the estate of a
Holder or a Holder to cause the Company to redeem an
Investment Note upon the death or Total Permanent
Disability of a Holder pursuant to Article XI;
provided, however,
-35-
that the Company may not modify or eliminate such
right, as it may be in effect on the Issue Date, with
respect to any Investment Note which was issued with
such right. After an amendment under this subsection
7.1(6) becomes effective, the Company may mail to the
Holders of each Investment Note then outstanding a
notice briefly describing the amendment; or
(7) to comply with any requirements of the SEC in
connection with the qualification of this Indenture
under the TIA.
The Trustee is hereby authorized to join with the Company in the
execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations which may be therein contained and to accept the
conveyance, transfer, assignment, mortgage or pledge of any property thereunder,
but the Trustee shall not be obligated to, but may in its discretion, enter into
any such supplemental indenture which affects the Trustee's own rights, duties
or immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section
7.1 may be executed by the Company and the Trustee without the consent of the
Holders of any of the Investment Notes at the time Outstanding, notwithstanding
any of the provisions of Section 7.2.
SECTION 7.2 Supplemental Indentures With Consent of Holders.
With the consent of the Holders of at least a majority in principal
amount of the Outstanding Investment Notes, by Act of said Holders delivered to
the Company and the Trustee, the Company, when authorized by a Board Resolution,
and the Trustee may amend this Indenture or the Investment Notes and enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of the
Investment Notes under this Indenture.
However, without the consent of the Holder of each Investment Note
affected, an amendment or waiver under this Section 7.2 may not (with respect to
any Investment Note held by a nonconsenting Holder):
(1) reduce the principal amount of Investment Notes whose
Holders must consent to an amendment, supplement or
waiver;
(2) reduce the rate of or change the time for payment of
interest, including default interest, on any
Investment Note;
(3) reduce the principal of or change the fixed maturity
of any Investment Note or alter the redemption
provisions or the price at which the Company shall
offer to purchase such Investment Note;
(4) make any Investment Note payable in money other than
U.S. Dollars;
-36-
(5) make any change in Article X that adversely affects
the rights of any Holders;
(6) waive a Default or Event of Default in the payment of
principal of or interest on, or redemption payment
with respect to, any Investment Note (except a
rescission of acceleration of the Investment Notes by
the Holders of at least a majority in aggregate
principal amount of the Investment Notes and a waiver
of the payment default that resulted from such
acceleration);
(7) modify the provisions of this Section 7.2; or
(8) make any change in Section 5.8 or 5.13 above.
It shall not be necessary for the consent of the Holders under this
Section 7.2 to approve the particular form of any proposed amendment or waiver,
but it shall be sufficient if such consent approves the substance thereof.
After an amendment or waiver under this Section 7.2 becomes effective,
the Company shall mail to the Holders of each Investment Note affected thereby a
notice briefly describing the amendment or waiver. Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture or waiver. Subject to
Sections 5.8 and 5.13 hereof, the Holders of a majority in principal amount of
the Investment Notes then outstanding may waive compliance in a particular
instance by the Company with any provision of this Indenture or the Investment
Notes.
SECTION 7.3 Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 6.1) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.
SECTION 7.4 Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and the respective
rights, limitations of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Company and the Holders of Investment Notes shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and such supplemental indenture
shall form a part of this Indenture for any and all purposes; and every Holder
of Investment Notes theretofore or thereafter issued and delivered thereunder
shall be bound thereby.
-37-
SECTION 7.5 Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the TIA as then in effect.
SECTION 7.6 Notation on or Exchange of Investment Notes.
The Company or the Trustee may place an appropriate notation about an
amendment or waiver on any Investment Note, if certificated, or any Account
statement. Failure to make any such notation or issue a new note shall not
affect the validity and effect of such amendment or waiver.
SECTION 7.7 Subordination Unimpaired.
No supplemental indenture executed pursuant to this Article shall
affect the superior position of the holders of Senior Indebtedness with respect
to such Investment Notes.
ARTICLE VIII
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 8.1 Company May Consolidate, etc., Only on Certain Terms
The Company shall not consolidate with or merge into any other Person
or convey or transfer its property and assets substantially as an entirety to
any Person, unless:
(1) the Person formed by such consolidation or into which
the Company is merged or the Person which acquires by conveyance or
transfer the properties and assets of the Company substantially as an
entirety shall be a Person organized and existing under the laws of the
United States of America or any State or the District of Columbia, and
shall expressly assume, by an indenture supplemental hereto, executed
and delivered to the Trustee, in form satisfactory to the Trustee, the
due and punctual payment of the principal of and interest on all the
Investment Notes and the performance of every covenant of this
Indenture on the part of the Company to be performed or observed;
(2) immediately after giving effect to such transaction,
no Event of Default, and no event which, after notice or lapse of time
or both, would become an Event of Default, shall have happened and be
continuing; and
(3) the Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel each stating that such
consolidation, merger, conveyance or transfer and such supplemental
indenture comply with this Article VIII and that all conditions
precedent herein provided for relating to such transaction have been
complied with.
-38-
SECTION 8.2 Successor Person Substituted.
Upon any consolidation or merger of the Company into another Person, or
any conveyance or transfer of the properties and assets of the Company
substantially as an entirety in accordance with Section 8.1, the successor
Person formed by such consolidation or into which the Company is merged or to
which such conveyance or transfer is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company
herein.
SECTION 8.3 Limitation on Lease of Properties as Entirety.
The Company shall not lease its properties and assets substantially as
an entirety to any Person.
ARTICLE IX
DISCHARGE OF INDENTURE
SECTION 9.1 Termination of Company's Obligations.
This Indenture shall cease to be of further effect (except that the
Company's obligations under Sections 6.7 and 9.4, and the Company's, Trustee's
and Paying Agent's obligations under Section 9.3 shall survive) when all
outstanding Investment Notes have been paid in full and the Company has paid all
sums payable by the Company hereunder. In addition, the Company may terminate
all of its obligations under this Indenture if:
(1) the Company irrevocably deposits in trust with the Trustee or
at the option of the Trustee, with a trustee reasonably satisfactory to the
Trustee and the Company under the terms of an irrevocable trust agreement in
form and substance satisfactory to the Trustee, money or U.S. Government
Obligations sufficient (as certified by an independent public accountant
designated by the Company) to pay principal and interest and premium, if any, on
the Investment Notes to maturity or redemption, as the case may be, and to pay
all other sums payable by it hereunder, provided that (i) the trustee of the
irrevocable trust shall have been irrevocably instructed to pay such money or
the proceeds of such U.S. Government Obligations to the Trustee and (ii) the
Trustee shall have been irrevocably instructed to apply such money or the
proceeds of such U.S. Government Obligations to the payment of said principal
and interest and premium, if any, with respect to the Investment Notes;
(2) the Company delivers to the Trustee an Officers' Certificate
stating that all conditions precedent to satisfaction and discharge of this
Indenture have been complied with;
(3) no Event of Default or event (including such deposit) which,
with notice or lapse of time, or both, would become an Event of Default with
respect to the Investment Notes shall have occurred and be continuing on the
date of such deposit; and
-39-
(4) the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that Holders of the Investment Notes will not recognize
income, gain or loss for Federal income tax purposes as a result of the
Company's exercise of its option under this Section 9.1 and will be subject to
Federal income tax in the same amount, in the same manner and at the same times
as would have been the case if such option had not been exercised;
then, this Indenture shall cease to be of further effect (except as provided in
this paragraph), and the Trustee, on demand of the Company, shall execute proper
instruments acknowledging confirmation of and discharge under this Indenture.
The Company may make the deposit only if Article X hereof does not prohibit such
payment. However, the Company's obligations in Sections 2.3, 2.4, 2.5, 3.1, 3.2,
3.3, 6.7, 6.9, 9.3 and 9.4 and the Trustee's and Paying Agent's obligations in
Section 9.3 shall survive until the Investment Notes are no longer outstanding.
Thereafter, only the Company's obligations in Section 6.7 and 9.4 and the
Company's, Trustee's and Paying Agent's obligations in Section 9.3 shall
survive.
After such irrevocable deposit made pursuant to this Section 9.1 and
satisfaction of the other conditions set forth herein, the Trustee upon written
request shall acknowledge in writing the discharge of the Company's obligations
under this Indenture except for those surviving obligations specified above.
In order to have money available on a payment date to pay principal or
interest or premium, if any, on the Investment Notes, the U.S. Government
Obligations shall be payable as to principal or interest at least one (1)
Business Day before such payment date in such amounts as will provide the
necessary money. U.S. Government Obligations shall not be callable at the
issuer's option.
SECTION 9.2 Application of Trust Money.
The Trustee or a trustee satisfactory to the Trustee and the Company
shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 9.1. It shall apply the deposited money and the money from
U.S. Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal and interest on the Investment Notes.
SECTION 9.3 Repayment to Company.
The Trustee and the Paying Agent shall promptly pay to the Company upon
written request any excess money or securities held by them at any time.
The Trustee and the Paying Agent shall pay to the Company upon written
request any money held by them for the payment of principal or interest or
premium, if any, that remains unclaimed for two (2) years after the date upon
which such payment shall have become due; provided, however, that the Company
shall have either caused notice of such payment to be mailed to each Holder
entitled thereto no less than thirty (30) days prior to such repayment or within
such period shall have published such notice in an Authorized Newspaper. After
payment to the Company, Holders entitled to the money must look to the Company
for payment as general creditors unless an applicable
-40-
abandoned property law designates another Person, and all liability of the
Trustee and such Paying Agent with respect to such money shall cease.
SECTION 9.4 Reinstatement.
If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Section 9.2 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's obligations under this Indenture and the Investment Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 9.1
until such time as the Trustee or Paying Agent is permitted to apply all such
money or U.S. Government Obligations in accordance with Section 9.2; provided,
however, that if the Company has made any payment of interest or premium, if
any, on or principal of any Investment Note because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Investment Notes to receive such payment, as long as no money is owed to
the Trustee by the Company, from the money or U.S. Government Obligations held
by the Trustee or Paying Agent.
ARTICLE X
SUBORDINATION OF INVESTMENT NOTES
SECTION 10.1 Subordination.
The Company covenants and agrees, and each Holder of Investment Notes,
by his acceptance thereof, likewise covenants and agrees, that the indebtedness
represented by the Investment Notes and the payment of the principal of and
interest on each and all of the Investment Notes is expressly subordinated, to
the extent and in the manner hereinafter set forth, in right of payment to the
prior payment in full of all Senior Indebtedness, and that the subordination is
for the benefit of the holders of Senior Indebtedness.
SECTION 10.2 Distribution of Assets, etc.
No payment on account of principal of or interest or premium, if any,
on the Investment Notes shall be made, and no Investment Notes shall be
purchased or otherwise acquired, and no funds shall be set aside for the
purchase of any Investment Notes, either directly or indirectly, by the Company,
if a default in the payment of the principal of or premium, if any, or interest
on any Senior Indebtedness shall have occurred and continued beyond any
applicable period of grace so as to entitle the holder of such Senior
Indebtedness to accelerate its maturity, unless and until such default shall
have been cured or waived or shall have ceased to exist or moneys for the
payment thereof shall have been duly set aside.
In the event of any distribution of assets of the Company upon any
dissolution, winding up, total or partial liquidation, or reorganization of the
Company, whether in bankruptcy, insolvency or receivership proceedings, or upon
any assignment for the benefit of creditors or any other marshaling of the
assets and liabilities of the Company, or otherwise,
-41-
(1) all of the principal of and premium, if any, and
interest on all Senior Indebtedness shall first be paid in full or moneys for
the full payment thereof shall have been duly set aside before any payment is
made upon the principal of or interest or premium, if any, on any Investment
Note, and
(2) any payment or distribution of assets or securities
of the Company of any kind or character, whether in cash, property or securities
(other than securities of the Company as reorganized or readjusted, or
securities of the Company or of any other corporation provided for by a plan of
reorganization or readjustment, the payment of which is subordinated to the
payment of all principal of and premium, if any, and interest on such Senior
Indebtedness as may at the time be outstanding and to any securities issued in
respect thereof under any such plan of reorganization or readjustment, provided
that the obligations represented by all notes or other evidences of Senior
Indebtedness are assumed by the new corporation, if any, resulting from any such
reorganization or readjustment and provided further that the rights of the
holders of Senior Indebtedness are not, without the consent of such holders,
altered by such reorganization or readjustment), to which the Holders would be
entitled except for the provisions of this Article, shall be paid by the
liquidating trustee or agent or other Person making such payment or
distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee
or otherwise, to the holders of Senior Indebtedness (pro rata to each such
holder on the basis of the respective amounts of Senior Indebtedness held by
such holder) or their representatives, to the extent necessary to pay the
principal of and premium, if any, and interest on all Senior Indebtedness in
full, after giving effect to any concurrent payment or distribution to the
holders of Senior Indebtedness, before any payment or distribution is made to
the Holders or to the Trustee.
If the payment of principal of and any interest on the Investment Notes
is accelerated because of an Event of Default, no payment on account of
principal of or interest on the Investment Notes shall be made until all of the
principal of and premium, if any, and interest on all Senior Indebtedness has
been paid in full or due provision has been made for such payment.
In the event that, notwithstanding the foregoing, any payment or
distribution of any character on any Investment Note, whether in cash,
securities or other property (other than securities of the Company as
reorganized or readjusted, or securities of the Company or of any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated to the payment of all principal of and premium,
if any, and interest on such Senior Indebtedness as may at the time be
outstanding and to any securities issued in respect thereof under any such plan
of reorganization or readjustment provided that the obligations represented by
all notes or other evidences of Senior Indebtedness are assumed by the new
corporation, if any, resulting from any such reorganization or readjustment and
provided further that the rights of the holders of Senior Indebtedness are not,
without the consent of such holders, altered by such reorganization or
readjustment), shall be received by the Trustee or any Holder in contravention
of any of the terms hereof, such payment or distribution or Investment Note
shall be received in trust for the benefit of, and shall be paid over or
delivered and transferred to, the holders of the Senior Indebtedness at the time
outstanding in accordance with priorities then existing among such holders for
application to the
-42-
payment of all Senior Indebtedness remaining unpaid, to the extent necessary to
pay all such Senior Indebtedness in full. In the event of the failure of the
Trustees or any Holder to endorse or assign any such payment, distribution or
Investment Note, each holder of Senior Indebtedness is hereby irrevocably
authorized to endorse or assign the same.
SECTION 10.3 Subrogation.
Subject to the payment in full of all Senior Indebtedness, the Holders
shall be subrogated (equally and ratably with the holders of all indebtedness of
the Company which, by its express terms, ranks on a parity with the Investment
Notes and is entitled to like rights of subrogation) to the rights of the
holders of Senior Indebtedness to receive payments or distributions of cash,
property or securities of the Company applicable to the Senior Indebtedness
until all amounts owing on the Investment Notes shall be paid in full, and, as
between the Company, its creditors other than holders of Senior Indebtedness,
and the Holders, no such payment or distribution made to the holders of Senior
Indebtedness by virtue of this Article which otherwise would have been made to
the Holders, shall be deemed to be a payment by the Company on account of the
Senior Indebtedness, it being understood that the provisions of this Article are
and are intended solely for the purpose of defining the relative rights of the
Holders, on the one hand, and the holders of the Senior Indebtedness, on the
other hand.
SECTION 10.4 Obligation of the Company Unconditional.
Nothing contained in this Article or elsewhere in this Indenture or in
the Investment Notes is intended to or shall impair, as between the Company, its
creditors other than the holders of Senior Indebtedness, and the Holders, the
obligation of the Company, which is absolute and unconditional, to pay to the
Holders the principal of and interest and premium, if any, on the Investment
Notes as and when the same shall become due and payable in accordance with their
terms, or affect the relative rights of the Holders and creditors of the Company
other than the holders of Senior Indebtedness, nor shall anything herein or
therein prevent the Trustee or any Holder from exercising all remedies otherwise
permitted by applicable law upon an Event of Default under this Indenture,
subject to the rights, if any, under this Article of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received
upon the exercise of any such remedy.
Upon any payment or distribution of assets of the Company referred to
in this Article, the Trustee and the Holders 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 and the Trustee, subject to the provisions of
Section 6.1, and the Holders shall be entitled to rely upon a certificate of the
liquidating trustee or agent or other person making any payment or distribution
to the Trustee or to the Holders for the purpose of ascertaining the persons
entitled to participate in such payment or distribution, the holders of 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.
-43-
SECTION 10.5 Payments on Investment Notes Permitted.
Nothing contained in this Article or elsewhere in this Indenture or in
any of the Investment Notes shall affect the obligation of the Company to make,
or prevent the Company from making, payment of the principal of or interest or
premium, if any, on the Investment Notes in accordance with the provisions
hereof, except as otherwise provided in this Article.
SECTION 10.6 Effectuation of Subordination by Trustee.
Each Holder of Investment Notes, by his acceptance thereof, authorizes
and directs the Trustee on his behalf to take such action at the request of the
Company 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 10.7 Knowledge of Trustee.
Notwithstanding the provisions of this Article or any other provisions
of this Indenture, but subject to the provisions of Section 6.1, the Trustee
shall not be charged with knowledge of the existence of any facts which would
prohibit the making of any payment of moneys to or by the Trustee, or the taking
of any other action by the Trustee under this Article X, unless and until the
Trustee shall have received written notice thereof, in the manner required by
Section 1.5, from the Company, any Holder, any Paying Agent, any Registrar or
the holder or representative of any class of Senior Indebtedness.
SECTION 10.8 Trustee May Hold Senior Indebtedness.
The Trustee 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 as any other holder of Senior Indebtedness, and nothing in Section
6.12 or elsewhere in this Indenture shall deprive the Trustee of any of its
rights as such holder.
SECTION 10.9 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
Indenture, regardless of any knowledge thereof any such holders may have or be
otherwise charged with.
SECTION 10.10 Alteration of Senior Indebtedness.
The Holders of any Senior Indebtedness may extend, renew, modify or
amend the terms of such Senior Indebtedness or any Investment Note therefor and
may release, sell or exchange such Investment Note and otherwise deal freely
with the Company, all without notice to or consent of the
-44-
Holders and without affecting the liabilities and obligations of the Company,
the Trustee or the Holders under this Indenture or the Investment Notes.
SECTION 10.11 Article Applicable to Paying Agents.
In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article shall in such case (unless the context shall otherwise
require) be construed as extending to and including such Paying Agent within its
meaning as fully for all intents and purposes as if such Paying Agent were named
in this Article in addition to or in place of the Trustee, provided, however,
that Sections 10.7, 10.8, and 10.10 shall not apply to the Company if it acts as
Paying Agent.
SECTION 10.12 Trustee Not Fiduciary for Holders of Senior
Indebtedness.
The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness and shall not be liable to any such holders if
the Trustee shall in good faith mistakenly pay over or distribute to Holders of
Investment Notes or to the Company or to any other person cash, property or
securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article X or otherwise.
ARTICLE XI
REDEMPTION
SECTION 11.1 Redemption of Investment Notes.
The Company may redeem, in whole or in part, any Investment Note at any
time and from time to time, in accordance with any notice requirement provided
in Sections 11.2 and 11.4 hereof and at a Redemption Price equal to the
principal amount of such Investment Note plus interest accrued but unpaid to the
redemption date.
SECTION 11.2 Notices to Trustee.
If the Company elects to redeem Investment Notes pursuant to Section
11.1 hereof, it shall furnish to the Trustee, at least thirty (30) days but not
more than sixty (60) days before a redemption date, an Officers' Certificate
setting forth the redemption date, the principal amount of Investment Notes to
be redeemed and the redemption price.
SECTION 11.3 Selection of Investment Notes to be Redeemed.
If less than all of the Investment Notes are to be redeemed, the
Company shall select the Investment Notes to be redeemed or, if the Company does
not do so, the Trustee shall select the Investment Notes to be redeemed among
the Holders of the Investment Notes pro rata or in accordance with a method the
Trustee considers fair and appropriate (and in such manner as complies with
applicable legal and stock exchange requirements, if any). In the event of
partial
-45-
redemption by lot, the particular Investment Notes to be redeemed shall be
selected, unless otherwise provided herein, not less than thirty (30) nor more
than sixty (60) days prior to the redemption date by the Trustee from the
outstanding Investment Notes not previously called for redemption.
The Trustee shall promptly notify the Company in writing of the
Investment Notes selected for redemption and, in the case of any Investment Note
selected for partial redemption, the principal amount thereof to be redeemed.
SECTION 11.4 Notice of Redemption.
At least thirty (30) days but not more than sixty (60) days before a
redemption date, the Company shall mail a notice of redemption to each Holder
whose Investment Notes are to be redeemed.
The notice shall identify the Investment Notes to be redeemed and shall
state:
(1) the redemption date;
(2) the Redemption Price;
(3) if any Investment Note is being redeemed in part, the
portion of the principal amount of such Investment Note to be redeemed and that,
after the redemption date, an appropriate adjustment will be made to such
Holder's Account or, if such Investment Note was in definitive form, upon
surrender of such Investment Note, a new Investment Note or Investment Notes in
principal amount equal to the unredeemed portion will be issued;
(4) the name and address of the Paying Agent;
(5) any Investment Notes in definitive form that were
called for redemption must be surrendered to the Paying Agent to collect the
Redemption Price; and
(6) that interest on Investment Notes called for
redemption ceases to accrue on and after the redemption date.
At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided, however, that the
Company shall deliver to the Trustee, at least thirty-five (35) days (or such
fewer days as the Trustee may agree) prior to the redemption date, an Officers'
Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in the preceding paragraph.
SECTION 11.5 Effect of Notice of Redemption.
Once notice of redemption is mailed, Investment Notes called for
redemption become due and payable on the redemption date at the Redemption
Price.
-46-
SECTION 11.6 Deposit of Redemption Price.
One (1) Business Date prior to the redemption date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the
Redemption Price of all Investment Notes to be redeemed on that date. The
Trustee or the Paying Agent shall return to the Company any money not required
for that purpose.
If the Company complies with the preceding paragraph, interest on the
Investment Notes to be redeemed will cease to accrue on the applicable
redemption date. If any Investment Notes called for redemption shall not be so
paid upon surrender for redemption because of the failure of the Company to
comply with the preceding paragraph, interest will be paid on the unpaid
principal, from the redemption date until such principal is paid, and on any
interest not paid on such unpaid principal, in each case at the rate provided in
the Investment Notes and in Sections 2.1 and 2.5 hereof.
SECTION 11.7 Investment Notes Redeemed in Part.
An appropriate adjustment will be made to the Account of a Holder when
an Investment Note is redeemed in part. In the case of definitive Investment
Notes redeemed in part, upon surrender of such Investment Note, the Company
shall issue and the Trustee shall authenticate for the Holder at the expense of
the Company a new Investment Note equal in principal amount to the unredeemed
portion of the Investment Note surrendered.
SECTION 11.8 Repurchasing of Investment Notes.
Nothing herein shall prohibit the Company from repurchasing from time
to time all or any portion of the Investment Notes in privately negotiated
transactions.
SECTION 11.9 Redemption of Investment Notes at the Election of
Holder upon Death or Total Permanent Disability.
Except as set forth in this Section 11.9, a Holder shall have no right
to cause the Company to redeem an Investment Note prior to the Maturity Date of
such Investment Note. However, upon the death or Total Permanent Disability of a
Holder of an Investment Note, the estate of such Holder (in the event of death)
or such Holder (in the event of Total Permanent Disability) may require the
Company to redeem, in whole and not in part, the Investment Note held by such
Holder provided that such Investment Note has a remaining maturity of greater
than twelve (12) months at the time of such death or Disability by delivering to
the Company an irrevocable election (a "Redemption Election") requiring the
Company to make such redemption. In the event an Investment Note is held jointly
by two or more Persons, such Investment Note shall be subject to the elective
redemption provisions of this Article XI upon the death or Total Permanent
Disability of either joint Holder. Upon receipt of a Redemption Election, the
Company shall designate the redemption date for such Investment Note, which
redemption date shall be no more than fifteen (15) days after (i) in the event
of death, the
-47-
Company's receipt of the Redemption Election or (ii) in the event of Total
Permanent Disability, the determination of Total Permanent Disability, and shall
pay the Redemption Price to the estate of the Holder or the Holder, as the case
may be. The Redemption Price payable with respect to a redemption pursuant to
this Section 11.9 shall be the principal amount of such redeemed Investment Note
plus the interest accrued but unpaid to the date of redemption. No interest
shall accrue on an Investment Note to be redeemed under this Article XI for any
period of time after the redemption date for such Investment Note provided the
Company has tendered the Redemption Price to the Estate of the Holder or to the
Holder, as the case may be.
ARTICLE XII
IMMUNITY OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS
SECTION 12.1 Exemption from Individual Liability.
No Affiliate, officer, director, employee or stockholder, as such, of
the Company, or its Subsidiaries, shall have any liability for any obligations
of the Company under the Investment Notes or this Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each
Holder by accepting an Investment Note hereby expressly waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of the Investment Notes.
This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
-48-
ARTICLE XIII
INVESTMENT NOTES IN DEFINITIVE FORM
SECTION 13.1 Forms Generally.
The Investment Notes are non-negotiable debt instruments and shall be
issued only in book-entry form. However, in the event of an exchange of the
Investment Notes for fully registered notes in definitive form pursuant to
Section 2.7(b) hereof, the Investment Notes shall be in such form and contain
the terms of such Investment Notes, including without limitation those terms set
forth in Article II hereof, and any other provisions as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon, as may be
required to comply with the rules of any securities exchange, or as may,
consistent herewith, be determined by the officers executing such Investment
Notes, as evidenced by their execution of the Investment Notes. Any such
Investment Notes in definitive form shall contain a certificate of
authentication in such form as the Trustee and the Company shall determine. Any
portion of the text of any Investment Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Investment
Note. The definitive Investment Notes shall be printed, lithographed or engraved
on steel engaged borders or may be produced in any other manner, all as
determined by the officers executing such Investment Notes as evidenced by their
execution of such Investment Notes.
-49-
IN WITNESS WHEREOF, the parties have caused this Indenture to be duly
executed and attested, all as of the day and year first above written.
XXXXXX CORPORATION
By:_____________________________
Name:
Title:
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
By:_____________________________
Name:
Title:
-50-
