Exhibit 4.1
EXECUTION COPY
THE GREENBRIER COMPANIES, INC.,
as Issuer
AND
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
Dated as of April 5, 2011
3.50% Convertible Senior Notes due 2018
TABLE OF CONTENTS
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ARTICLE 1 Definitions; Interpretations |
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1 |
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Section 1.01. |
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Definitions |
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1 |
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Section 1.02. |
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References to Interest |
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10 |
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ARTICLE 2 Issue, Description, Execution, Registration and Exchange of Notes |
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11 |
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Section 2.01. |
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Designation and Amount |
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11 |
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Section 2.02. |
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Form of Notes |
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11 |
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Section 2.03. |
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Date and Denomination of Notes; Payments of Interest |
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11 |
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Section 2.04. |
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Execution, Authentication and Delivery of Notes |
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13 |
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Section 2.05. |
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Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary |
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13 |
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Section 2.06. |
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Mutilated, Destroyed, Lost or Stolen Notes |
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18 |
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Section 2.07. |
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Temporary Notes |
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19 |
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Section 2.08. |
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Cancellation of Notes Paid, Etc. |
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20 |
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Section 2.09. |
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CUSIP and ISIN Numbers |
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20 |
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Section 2.10. |
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Additional Notes; Purchases |
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20 |
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ARTICLE 3 Satisfaction and Discharge |
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21 |
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Section 3.01. |
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Satisfaction and Discharge |
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21 |
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Section 3.02. |
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Deposited Monies To Be Held In Trust |
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21 |
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Section 3.03. |
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Return Of Unclaimed Monies |
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21 |
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ARTICLE 4 Particular Covenants of the Company |
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22 |
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Section 4.01. |
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Payment of Principal and Interest |
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22 |
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Section 4.02. |
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Corporate Existence |
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22 |
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Section 4.03. |
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Rule 144A Information Requirement and Reports |
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22 |
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i
Table of Contents
(Continued)
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Page |
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Section 4.04. |
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Compliance Certificate |
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23 |
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Section 4.05. |
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Maintenance of Office or Agency |
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23 |
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Section 4.06. |
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Paying Agents |
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23 |
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Section 4.07. |
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Appointment to Fill Vacancy in Office of Trustee |
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24 |
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ARTICLE 5 Holders’ Lists and Reports by the Company and the Trustee |
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24 |
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Section 5.01. |
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Company to Furnish Trustee Names and Addresses of Holders |
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24 |
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Section 5.02. |
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Preservation Of Information; Communications With Holders |
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25 |
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Section 5.03. |
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Reports by the Trustee |
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25 |
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ARTICLE 6 Default and Remedies |
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25 |
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Section 6.01. |
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Events of Default |
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25 |
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Section 6.02. |
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Acceleration of Maturity; Rescission and Annulment |
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27 |
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Section 6.03. |
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Other Remedies |
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28 |
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Section 6.04. |
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Waiver of Past Defaults |
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28 |
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Section 6.05. |
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Control by Majority |
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29 |
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Section 6.06. |
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Limitation On Suit |
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29 |
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Section 6.07. |
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Unconditional Rights of Holders to Receive Payment and to Convert |
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30 |
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Section 6.08. |
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Collection of Indebtedness and Suits For Enforcement By the Trustee |
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30 |
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Section 6.09. |
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Trustee May File Proofs of Claim |
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31 |
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Section 6.10. |
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Restoration of Rights and Remedies |
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31 |
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Section 6.11. |
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Rights and Remedies Cumulative |
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32 |
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Section 6.12. |
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Delay or Omission Not Waiver |
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32 |
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Section 6.13. |
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Application of Money Collected |
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32 |
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ii
Table of Contents
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Page |
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Section 6.14. |
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Undertaking For Costs |
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32 |
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Section 6.15. |
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Waiver of Stay or Extension Laws |
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33 |
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Section 6.16. |
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Notice of Default |
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33 |
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ARTICLE 7 Concerning the Trustee |
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33 |
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Section 7.01. |
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Certain Duties and Responsibilities of Trustee |
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33 |
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Section 7.02. |
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Certain Rights of Trustee |
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34 |
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Section 7.03. |
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Trustee Not Responsible for Recitals or Issuance or Notes |
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36 |
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Section 7.04. |
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May Hold Notes |
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36 |
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Section 7.05. |
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Moneys Held in Trust |
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36 |
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Section 7.06. |
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Compensation and Reimbursement |
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37 |
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Section 7.07. |
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Reliance on Officers’ Certificate and Opinions |
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37 |
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Section 7.08. |
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Corporate Trustee Required; Eligibility |
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38 |
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Section 7.09. |
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Resignation and Removal; Appointment of Successor |
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38 |
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Section 7.10. |
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Acceptance of Appointment By Successor |
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39 |
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Section 7.11. |
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Merger, Conversion, Consolidation or Succession to Business |
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40 |
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Section 7.12. |
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Preferential Collection of Claims Against the Company |
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41 |
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ARTICLE 8 Concerning the Holders |
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41 |
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Section 8.01. |
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Evidence of Action by Holders |
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41 |
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Section 8.02. |
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Proof of Execution by Holders |
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41 |
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Section 8.03. |
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Who May be Deemed Owners |
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42 |
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Section 8.04. |
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Certain Notes Owned by Company Disregarded |
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42 |
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Section 8.05. |
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Actions Binding on Future Holders |
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42 |
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ARTICLE 9 Amendments; Supplements And Waivers |
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43 |
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iii
Table of Contents
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Page |
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Section 9.01. |
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Without Consent of Holders |
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43 |
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Section 9.02. |
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With Consent of Holders |
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44 |
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Section 9.03. |
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Effect of Supplemental Indentures |
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45 |
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Section 9.04. |
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Notes Affected by Supplemental Indentures |
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45 |
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Section 9.05. |
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Execution of Supplemental Indentures |
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45 |
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ARTICLE 10 Consolidation; Merger; Conveyance; Transfer Or Lease |
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46 |
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Section 10.01. |
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Company May Consolidate, Etc., Only on Certain Terms |
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46 |
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Section 10.02. |
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Successor Substituted |
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46 |
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ARTICLE 11 Omitted |
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47 |
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ARTICLE 12 Additional Interest |
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47 |
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Section 12.01. |
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Additional Interest |
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47 |
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ARTICLE 13 Conversion of Notes |
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48 |
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Section 13.01. |
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Conversion Privilege and Conversion Rate |
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48 |
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Section 13.02. |
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Make-Whole Fundamental Change Premium |
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49 |
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Section 13.03. |
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Conversion Procedure |
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50 |
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Section 13.04. |
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Fractional Shares |
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52 |
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Section 13.05. |
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Taxes on Conversion |
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52 |
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Section 13.06. |
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Company to Provide Common Stock |
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52 |
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Section 13.07. |
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Adjustment of Conversion Rate |
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52 |
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Section 13.08. |
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When No Adjustment is Required |
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58 |
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Section 13.09. |
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Notice of Adjustment |
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59 |
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Section 13.10. |
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Notice of Certain Transactions |
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59 |
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Section 13.11. |
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Effect of Reclassification, Consolidation, Merger or Sale On Conversion Privilege |
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59 |
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iv
Table of Contents
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Page |
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Section 13.12. |
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Trustee’s Disclaimer |
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60 |
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Section 13.13. |
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Voluntary Increase; NYSE Compliance |
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61 |
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Section 13.14. |
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Rights Plan |
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61 |
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ARTICLE 14 Omitted |
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61 |
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ARTICLE 15 Omitted |
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61 |
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ARTICLE 16 Repurchase Of Notes Upon a Fundamental Change |
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61 |
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Section 16.01. |
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Repurchase of Notes at Option of the Holder Upon a Fundamental Change |
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61 |
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Section 16.02. |
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Withdrawal of Fundamental Change Repurchase Notice |
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63 |
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Section 16.03. |
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Deposit of Fundamental Change Repurchase Price |
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64 |
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Section 16.04. |
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Repayment to the Company |
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64 |
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Section 16.05. |
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Notes Repurchased In Part |
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65 |
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Section 16.06. |
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Covenant to Comply with Applicable Laws Upon Repurchase of Notes |
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65 |
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ARTICLE 17 Meeting Of Holders Of Notes |
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65 |
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Section 17.01. |
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Purposes For Which Meetings May Be Called |
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65 |
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Section 17.02. |
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Call Notice and Place of Meetings |
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65 |
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Section 17.03. |
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Persons Entitled to Vote at Meetings |
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66 |
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Section 17.04. |
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Quorum; Action |
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66 |
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Section 17.05. |
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Determination of Voting Rights; Conduct and Adjournment of Meetings |
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66 |
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Section 17.06. |
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Counting Votes and Recording Action of Meetings |
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67 |
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ARTICLE 18 Miscellaneous Provisions |
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68 |
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Section 18.01. |
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Provisions Binding on Company’s Successors |
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68 |
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Section 18.02. |
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Official Acts by Successor |
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68 |
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v
Table of Contents
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Page |
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Section 18.03. |
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Notices |
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68 |
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Section 18.04. |
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Governing Law |
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68 |
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Section 18.05. |
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Evidence of Compliance with Conditions Precedent; Certificates and Opinions of Counsel to Trustee |
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68 |
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Section 18.06. |
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Legal Holidays |
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69 |
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Section 18.07. |
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No Security Interest Created |
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69 |
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Section 18.08. |
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Benefits of Indenture |
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69 |
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Section 18.09. |
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Table of Contents, Headings, Etc. |
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69 |
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Section 18.10. |
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Execution in Counterparts |
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69 |
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Section 18.11. |
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Severability |
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70 |
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Section 18.12. |
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Waiver of Jury Trial |
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70 |
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Section 18.13. |
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Consent to Jurisdiction |
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70 |
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Section 18.14. |
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Force Majeure |
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70 |
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Section 18.15. |
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Calculations |
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70 |
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Section 18.16. |
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U.S.A. Patriot Act |
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71 |
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Section 18.17. |
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No Personal Liability of Stockholders, Employees, Officers or Directors |
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71 |
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vi
INDENTURE dated as of April 5, 2011 between The Greenbrier Companies, Inc., an Oregon
corporation, as issuer (the “
Company”) and U.S. Bank National Association, a national banking
association, as trustee (the “
Trustee”).
That in order to declare the terms and conditions upon which the Notes are, and are to be,
authenticated, issued and delivered, and in consideration of the premises and of the purchase and
acceptance of the Notes by the Holders thereof, the Company covenants and agrees with the Trustee
for the equal and proportionate benefit of the respective Holders from time to time of the Notes
(except as otherwise provided below), as follows:
ARTICLE 1
Definitions; Interpretations
Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section
1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or that
are by reference therein defined in the Securities Act (except as herein otherwise expressly
provided or unless the context otherwise requires) shall have the meanings assigned to such terms
in said Trust Indenture Act and in the Securities Act as in force at the date of the execution of
this Indenture. The words “herein,” “hereof,” “hereunder,” and words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other subdivision. The
terms defined in this Article include the plural as well as the singular.
1
Unless otherwise noted, references to “U.S. Dollars” or “$” shall mean the currency of the
United States.
“Additional Interest” shall have the meaning specified in Section 12.01(a).
“Additional Interest Event” shall have the meaning specified in Section 12.01(a).
“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
purposes of this definition, “control,” when used with respect to any specified Person means the
power to direct or cause the direction of the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.
“Agent Members” shall have the meaning specified in Section 2.05(b).
“Applicable Procedures” means, with respect to any conversion, repurchase, transfer or
exchange of beneficial ownership interests in a Global Note, the rules and procedures of the
Depositary, to the extent applicable to such conversion, transfer or exchange.
“Bankruptcy Law” shall have the meaning specified in Section 6.01.
“Board of Directors” means the Board of Directors of the Company or any duly authorized
committee of such 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.
“
Business Day” means any day other than a Saturday, a Sunday or a day on which the Paying
Agent or the Federal Reserve Bank of
New York is authorized or required by law or executive order
to close or be closed.
“Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated) the
equity of such Person, but excluding any debt securities convertible into such equity.
“Cash” or “cash” means such coin or currency of the United States as at any time of payment is
legal tender for the payment of public and private debts.
“Change of Control” means the occurrence of any of the following events from and after the
Issue Date:
(i) the acquisition by any “person”, including any syndicate or group deemed to be a
“person” under Section 13(d)(3) of the Exchange Act, of beneficial ownership (determined in
accordance with the definition of “beneficial owner” in Rule 13d-3 under the Exchange Act),
directly or indirectly, through a purchase, merger or other acquisition
2
transaction or series of transactions of shares of the Company’s Capital Stock
entitling that person to exercise 50% or more of the total voting power of all shares of the
Company’s Voting Stock, other than any acquisition by the Company, any Subsidiary of the
Company or any of the Company’s employee benefit plans;
(ii) any (A) recapitalization, reclassification or change of the Common Stock (other
than changes resulting from a subdivision or combination) as a result of which the Common
Stock would be converted into, or exchanged for, stock, other securities, other property or
assets or (B) share exchange with, consolidation with, or merger with or into, another
Person or any merger of another Person into the Company, or (C) conveyance, transfer, sale,
lease or other disposition of all or substantially all of the Company’s and its
Subsidiaries’ properties and assets to another Person; provided that any transaction (1)
pursuant to which holders of the Company’s Capital Stock immediately prior to a transaction
that is a share exchange, consolidation or merger have the entitlement to exercise, directly
or indirectly, 50% or more of the total voting power of all shares of the Voting Stock of
the continuing or surviving Person immediately after such transaction in substantially the
same proportions as such entitlement immediately prior to such transaction or (2) where
Common Stock is not changed or exchanged except to the extent necessary to reflect a change
in the Company’s jurisdiction of incorporation, shall in either case not be a Change of
Control pursuant to this clause (ii);
(iii) the Company’s stockholders pass a resolution approving a plan of liquidation or
dissolution; or
(iv) Continuing Directors cease to constitute at least a majority of the Board of
Directors.
Notwithstanding anything to the contrary set forth herein, a Change of Control shall be deemed
not to have occurred if, in the case of a merger or consolidation, at least 90% of the
consideration (excluding cash payments for fractional shares and cash payments pursuant to
dissenters’ appraisal rights) received or to be received in connection with such merger or
consolidation constituting a Change of Control consists of shares of common stock traded or quoted
on any of The
New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market
(or any of their respective successors), or which shall be so traded or quoted when issued or
exchanged in connection with such Change in Control, and as a result of the transaction or
transactions the Notes become convertible solely into such consideration, excluding cash payments
for fractional shares and cash payments pursuant to dissenters’ appraisal rights.
“Clause A Distribution” shall have the meaning specified in Section 13.07(c).
“Clause B Distribution” shall have the meaning specified in Section 13.07(c).
“Clause C Distribution” shall have the meaning specified in Section 13.07(c).
“
close of business” means 5:00 p.m. (
New York City time).
“Commission” means the Securities and Exchange Commission.
3
“Common Stock” means the shares of common stock of the Company, without par value, as it
exists on the date of this Indenture or any other shares of Capital Stock of the Company into which
the Common Stock shall be reclassified or changed.
“Company” means The Greenbrier Companies, Inc., a corporation duly organized and existing
under the laws of the State of Oregon, until a successor Person shall replace it pursuant to the
applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person.
“Company Order” means a written order of the Company, delivered to the Trustee and signed by
(a) two Officers of the Company or (b) one Officer of the Company and one of the Treasurer, any
Assistant Treasurer, the Secretary, any Assistant Secretary or the Controller of the Company.
“Continuing Director” means a director who either was a member of the Board of Directors on
March 30, 2011 or who becomes a member of the Board of Directors subsequent to that date and whose
election, appointment or nomination for election by the stockholders of the Company is duly
approved by a majority of the Continuing Directors on the Board of Directors at the time of such
approval, either by a specific vote or by approval of the proxy statement issued by the Company on
behalf of the entire Board of Directors in which such individual is named as nominee for director.
Solely for purposes of this definition, the phrase “or a committee of such board duly authorized to
act for it hereunder” of the definition of Board of Directors shall be disregarded.
“Conversion Agent” means the office or agency designated by the Company pursuant to Section
4.05 where Notes may be presented for conversion.
“Conversion Date” shall have the meaning specified in Section 13.03(a).
“Conversion Price” per share of Common Stock as of any day means the result obtained by
dividing (i) $1,000 by (ii) the then applicable Conversion Rate.
“Conversion Rate” means the rate at which shares of Common Stock shall be delivered upon
conversion, which rate shall be initially 26.2838 shares of Common Stock for each $1,000 principal
amount of Notes, as adjusted from time to time pursuant to the provisions of this Indenture.
“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its
corporate trust business shall be principally administered, which office at the date hereof is
located at U.S. Bank Corporate Trust Services, 000 XX Xxx Xxxxxx, XX-XX-X0XX, Xxxxxxxx, Xxxxxx
00000 or such other office as it shall notify the Company in writing.
“Custodian” means the Trustee, as custodian for DTC, with respect to the Global Notes, or any
successor entity thereto.
“Default” means any event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.
4
“Defaulted Interest” means any interest on any Note that is payable, but is not punctually
paid or duly provided for, on any April 1 or October 1.
“Depositary” means, with respect to the Global Notes, the Person specified in Section 2.05(c)
as the Depositary with respect to such Notes, until a successor shall have been appointed and
become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary”
shall mean or include such successor.
“DTC” shall have the meaning specified in Section 2.05(c).
“Event of Default” shall have the meaning specified in Section 6.01.
“
Ex-Dividend Date” means the first date on which shares of Common Stock trade on The
New York
Stock Exchange, or on the applicable stock exchange on which Common Stock is then traded, regular
way, without the right to receive the issuance, dividend or distribution in question from the
Company.
“Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations
promulgated thereunder, in each case as amended.
“Expiration Date” shall have the meaning specified in Section 13.07(e).
“Expiration Time” shall have the meaning specified in Section 13.07(e).
“Form of Assignment and Transfer” shall mean the “Form of Assignment and Transfer” attached as
Attachment 3 to the Form of Note attached hereto as Exhibit A.
“Form of Fundamental Change Repurchase Notice” shall mean the “Form of Fundamental Change
Repurchase Notice” attached as Attachment 2 to the Form of Note attached hereto as Exhibit A.
“Form of Note” shall mean the “Form of Note” attached hereto as Exhibit A.
“Form of Notice of Conversion” shall mean the “Form of Notice of Conversion” attached as
Attachment 1 to the Form of Note attached hereto as Exhibit A.
“Fundamental Change” means the occurrence of either a Change of Control or a Termination of
Trading.
“Fundamental Change Company Notice” shall have the meaning specified in Section 16.01(b).
“Fundamental Change Effective Date” means the date on which any Fundamental Change becomes
effective.
“Fundamental Change Repurchase Date” shall have the meaning specified in Section 16.01(a).
5
“Fundamental Change Repurchase Notice” shall have the meaning specified in Section
16.01(c)(i).
“Fundamental Change Repurchase Price” of any Note, means 100% of the principal amount of the
Note to be repurchased plus unpaid interest, if any, accrued and unpaid to, but excluding, the
Fundamental Change Repurchase Date; provided that if the Fundamental Change Repurchase Date is
after a Regular Record Date and on or prior to the corresponding Interest Payment Date, the
Fundamental Change Repurchase Price shall not include any accrued and unpaid interest.
“Global Note” shall have the meaning specified in Section 2.05(b).
“Holder” or “Holder of a Note” means the person in whose name a Note is registered on the Note
Registrar’s books.
“Indenture” means this instrument as originally executed or, if amended or supplemented as
herein provided, as so amended or supplemented.
“Initial Purchasers” means Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated and Xxxxxxx,
Sachs & Co.
“Interest Payment Date” means each April 1 and October 1 of each year, beginning on October 1,
2011; provided, however, that if any Interest Payment Date falls on a date that is not a Business
Day, such payment of interest shall be postponed until the next succeeding Business Day, and no
interest or other amount shall be paid as a result of such postponement.
“Issue Date” of any Note means the date on which the Note was originally issued or deemed
issued as set forth on the face of the Note.
“Last Reported Sale Price” of the Common Stock on any date means the closing sale price per
share of the Common Stock (or if no closing sale price is reported, the average of the bid and ask
prices per share or, if more than one in either case, the average of the average bid and the
average ask prices per share) on such date reported in composite transactions for the primary
exchange or quotation system on which the Common Stock is then traded or quoted. If the Common
Stock is not so traded or quoted on such date, the “Last Reported Sale Price” shall be the last
quoted bid price for the Common Stock in the over-the-counter market on the relevant date as
reported by Pink OTC Markets Inc. or a similar organization. If the Common Stock is not so quoted,
the “Last Reported Sale Price” shall be the average of the mid-point of the last bid and ask prices
for the Common Stock on such date from each of at least three nationally recognized independent
investment banking firms selected by the Company for this purpose.
“
Make-Whole Fundamental Change” means any Fundamental Change (other than pursuant to clauses
(iii) and (iv) of the definition of Change of Control) where, if applicable, more than 10% of the
consideration (excluding cash payments for fractional shares and cash payments pursuant to
dissenters’ appraisal rights) received or to be received by the shareholders of the Company in
connection with such Fundamental Change consists of cash or assets other than common stock traded
or quoted on any of The
New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ
Global Market (or any of their respective successors).
6
“Make-Whole Fundamental Change Effective Date” means the date on which any Make-Whole
Fundamental Change becomes effective.
“Make-Whole Fundamental Change Notice” shall have the meaning specified in Section 13.01(d).
“Make-Whole Fundamental Change Premium” shall have the meaning specified in Section 13.02.
“
Market Disruption Event” means (a) a failure by the primary exchange or quotation system on
which the Common Stock trades or is quoted to open for trading during its regular trading session
or (b) the occurrence or existence, prior to 1:00 p.m.,
New York City time, on any Trading Day for
the Common Stock, of an aggregate one half-hour period of any suspension or limitation imposed on
trading (by reason of movements in price exceeding limits permitted by the stock exchange or
otherwise) in the Common Stock or in any options, contracts or future contracts relating to the
Common Stock.
“Maturity Date” means April 1, 2018.
“Note” or “Notes” shall have the meaning specified in the first “Whereas” clause of this
Indenture.
“Note Register” shall have the meaning specified in Section 2.05(a).
“Note Registrar” shall have the meaning specified in Section 2.05(a).
“Offering Memorandum” means the final offering memorandum dated March 30, 2011, relating to
the offering and sale of the Notes pursuant to the Purchase Agreement.
“Officer” means, with respect to the Company, the President, the Chief Executive Officer, the
Chief Financial Officer, the Secretary, any Executive or Senior Vice President or any Vice
President (whether or not designated by a number or numbers or word or words added before or after
the title “Vice President”).
“Officers’ Certificate,” when used with respect to the Company, means a certificate that is
delivered to the Trustee and that is signed by (a) two Officers of the Company or (b) one Officer
of the Company and one of the Treasurer, any Assistant Treasurer, the Secretary, any Assistant
Secretary or the Controller of the Company. Each such certificate shall include the statements
provided for in Section 18.05 if and to the extent required by the provisions of such Section. One
of the Officers giving an Officers’ Certificate pursuant to Section 4.04 shall be the principal
executive, financial or accounting officer of the Company.
“
open of business” means 9:00 a.m. (
New York City time).
“Opinion of Counsel” means a written opinion, subject to customary exceptions, from legal
counsel who is reasonably acceptable to the Trustee that is delivered to the Trustee in accordance
with the terms hereof. The counsel may be an employee of or counsel to the
7
Company or the Trustee. Each such opinion shall include the statements provided for in
Section 18.05 if and to the extent required by the provisions thereof.
“Outstanding,” when used with reference to Notes, shall, subject to the provisions of Section
8.04, mean, as of any particular time, all Notes authenticated and delivered by the Trustee under
this Indenture, except:
(i) Notes theretofore canceled by the Trustee or accepted by the Trustee for
cancellation;
(ii) Notes, or portions thereof, that have become due and payable and in respect of
which monies in the necessary amount shall have been deposited in trust with the Trustee or
with any Paying Agent (other than the Company) or shall have been set aside and segregated
in trust by the Company (if the Company shall act as its own Paying Agent);
(iii) Notes that have been paid pursuant to Section 2.08 or Notes in lieu of which, or
in substitution for which, other Notes shall have been authenticated and delivered pursuant
to the terms of Section 2.06 unless proof satisfactory to the Trustee is presented that any
such Notes are held by protected purchasers in due course;
(iv) Notes converted pursuant to Article 13 and required to be canceled pursuant to
Section 2.08; and
(v) Notes repurchased by the Company pursuant to the penultimate sentence of Section
2.10.
“Paying Agent” means the office or agency designated by the Company pursuant to Section 4.05
where Notes may be presented for payment.
“Person” or “person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any syndicate or group that would be
deemed to be a “person” under Section 13(d)(3) of the Exchange Act or any other entity.
“Physical Notes” means certificated Notes in registered form issued in denominations of $2,000
principal amount and greater integral multiples of $1,000.
“Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.06 in lieu of or in exchange for a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note that it replaces.
“Purchase Agreement” means that certain Purchase Agreement, dated as of March 30, 2011, among
the Company and the Initial Purchasers.
“Receiver” shall have the meaning specified in Section 6.01.
8
“Reference Property” shall have the meaning specified in Section 13.11.
“Regular Record Date” means, with respect to any Interest Payment Date, the March 15 or
September 15 (whether or not such day is a Business Day) immediately preceding such Interest
Payment Date.
“Resale Restriction Termination Date” shall have the meaning specified in Section 2.05(c).
“Responsible Officer” means any officer within the corporate trust department of the Trustee,
including any vice president, assistant vice president, assistant secretary, assistant treasurer,
trust officer or any other officer of the Trustee who customarily performs functions similar to
those performed by the Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such Person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this
Indenture.
“Restricted Securities” shall have the meaning specified in Section 2.05(c).
“Restrictive Legend” means the legend set forth in Section 2.05(c).
“Rights” means any common stock or preferred stock purchase right or warrant, as the case may
be, that all or substantially all shares of Common Stock may be entitled to receive under a Rights
Plan.
“Rights Plan” means any common stock or preferred stock rights plan or any similar plan in
effect as of the date of this Indenture or adopted by the Company after the date hereof or any
replacement or successor rights plan.
“Rule 144” means Rule 144 as promulgated under the Securities Act.
“Rule 144A” means Rule 144A as promulgated under the Securities Act.
“Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated
thereunder, in each case as amended.
“Significant Subsidiary” means any Subsidiary of the Company that satisfies the criteria of a
“significant subsidiary” set forth in Rule 1-02(w) of Regulation S-X under the Exchange Act.
“Special Interest” shall have the meaning specified in Section 6.02.
“Spin-Off” shall have the meaning specified in Section 13.07(c).
“Stock Price” means the price paid or deemed to be paid per share of the Common Stock in
connection with a Make-Whole Fundamental Change, subject to adjustment and as determined pursuant
to Section 13.02.
9
“Subsidiary” means, with respect to any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Capital Stock
or other interests (including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, general partners or trustees
thereof is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such
Person and one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such
Person.
“
Termination of Trading” means the Common Stock (or other common stock into which the Notes
are convertible) ceases to be listed or quoted on any of The
New York Stock Exchange, The NASDAQ
Global Select Market or The NASDAQ Global Market (or any of their respective successors).
“Trading Day” means a day during which trading in the Common Stock generally occurs on the
primary exchange or quotation system on which the Common Stock is then traded or quoted and there
is no Market Disruption Event or, if the Common Stock is not then so traded or quoted, on the
principal other market on which the Common Stock is then traded. If the Common Stock is not so
traded, “Trading Day” means a Business Day.
“transfer” shall have the meaning specified in Section 2.05(c).
“Trigger Event” shall have the meaning specified in Section 13.07(c).
“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.
“Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder.
“United States” means the United States of America.
“Valuation Period” shall have the meaning specified in Section 13.07(c).
“Voting Stock” of a Person means all classes of Capital Stock of such Person then outstanding
and entitled (without regard to the occurrence of any contingency within the control of such person
to satisfy) to vote generally in the election of directors, managers or trustees thereof.
Section 1.02. References to Interest. Any reference to the payment of interest on, or in
respect of, any Note in this Indenture shall be deemed to include mention of the payment of Special
Interest (if applicable) and Additional Interest (if applicable) if, in such context, Special
Interest and Additional Interest, as applicable, was, or would be, payable pursuant to Section 6.02
and Section 12.01, respectively. An express mention of the payment of Special Interest (if
applicable) or Additional Interest (if applicable) in any provision hereof shall not be construed
as excluding Additional Interest or Special Interest, as applicable, in those provisions hereof
where such express mention is not made.
10
ARTICLE 2
Issue, Description, Execution, Registration and Exchange of Notes
Section 2.01. Designation and Amount. The Notes shall be designated as the “3.50% Convertible
Senior Notes due 2018.” The aggregate principal amount of Notes that may be authenticated and
delivered under this Indenture is initially limited to $230,000,000, subject to Section 2.10 and
except for Notes authenticated and delivered upon registration or transfer of, or in exchange for,
or in lieu of other Notes pursuant to Section 2.05, Section 2.06, Section 2.07, Section 9.04,
Section 13.03(e) and Section 16.05.
Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the respective forms set forth in Exhibit A, which
are incorporated in and made a part of this Indenture.
Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends or endorsements as the Officer executing the same may approve (execution thereof
to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this
Indenture, or as may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange or automated quotation
system on which the Notes may be listed or designated for issuance, or as may be required by the
Custodian or the Depositary, or to conform to usage or to indicate any special limitations or
restrictions to which any particular Notes are subject.
The Global Note shall represent such principal amount of the Outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate principal amount of
Outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of
Outstanding Notes represented thereby may from time to time be increased or reduced to reflect
repurchases, conversions, transfers, exchanges or issuances of additional Notes permitted hereby.
Any endorsement of the Global Note to reflect the amount of any increase or decrease in the amount
of Outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the
direction of the Trustee, in such manner and upon written instructions given by the Holder of such
Notes in accordance with this Indenture. Payment of principal (including any Fundamental Change
Repurchase Price, if applicable) of, and accrued and unpaid interest, if any, on, the Global Note
shall be made to the Holder of such Note on the date of payment, unless a record date or other
means of determining Holders eligible to receive payment is provided for herein.
The terms and provisions contained in the Form of Note attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable,
the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.
Section 2.03. Date and Denomination of Notes; Payments of Interest. The Notes shall be
issuable in registered form without coupons in denominations of $2,000 principal amount and greater
integral multiples of $1,000. Each Note shall be dated the date of its authentication and shall
bear interest from the date specified on the face of the Form of Note
11
attached as Exhibit A hereto. Interest on the Notes shall be computed on the basis of a
360-day year comprised of twelve 30-day months.
The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register
at the close of business on any Regular Record Date with respect to any Interest Payment Date shall
be entitled to receive the interest payable on such Interest Payment Date. Interest shall be
payable at the office of the Paying Agent, which shall initially be the Corporate Trust Office of
the Trustee as the Company’s Paying Agent and Note Registrar. The Company shall pay interest on
any Physical Notes (i) to the Person entitled thereto having an aggregate principal amount of
$2,000,000 or less, by check mailed to such Person at the address set forth in the Note Register
and (ii) to the Person entitled thereto having an aggregate principal amount of more than
$2,000,000, either by check mailed to such Person or, upon application by such Person to the Note
Registrar not later than the relevant Regular Record Date, by wire transfer in immediately
available funds to such Person’s account within the United States, which application and wire
transfer instructions shall remain in effect until such Person notifies, in writing, the Note
Registrar to the contrary.
Any Defaulted Interest shall forthwith cease to be payable to the Holder of such Note on the
relevant Regular Record Date by virtue of its having been such Holder, and such Defaulted Interest
shall be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Notes (or their respective Predecessor Notes) are registered at the close of business on
a special record date for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not
less than 20 days after the receipt by the Trustee of such notice, unless the Trustee shall consent
to an earlier date), and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause provided.
Thereupon the Company shall fix a special record date for the payment of such Defaulted Interest
which shall be not more than fifteen days and not less than ten days prior to the date of the
proposed payment, and not less than ten days after the receipt by the Trustee of the notice of the
proposed payment. The Company shall promptly notify the Trustee in writing of such special record
date and the Trustee, in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the special record date therefor to be sent or
mailed, first-class postage prepaid, to each Holder at its address as it appears in the Note
Register, not less than ten days prior to such special record date. Notice of the proposed payment
of such Defaulted Interest and the special record date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on such special record date and shall no
longer be payable pursuant to the following clause (2) of this Section 2.03.
12
(2) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Notes may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, if, after written notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.
Section 2.04. Execution, Authentication and Delivery of Notes. The Notes shall be signed in
the name and on behalf of the Company by the manual or facsimile signature of any Officer.
At any time and from time to time after the date of the execution and delivery of this
Indenture, the Company may, in accordance with the terms of this Indenture, deliver additional
Notes executed by the Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Notes, and the Trustee in accordance with such Company
Order shall authenticate and deliver such Notes, without any further action by the Company
hereunder.
Only such Notes as shall bear thereon a certificate of authentication substantially in the
form set forth on the Form of Note attached as Exhibit A hereto, executed manually by a Responsible
Officer of the Trustee (or an authorized officer of an authenticating agent appointed by the
Trustee), shall be entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate of authentication executed by the Trustee (or such an authenticating
agent) upon any Note executed by the Company shall be conclusive evidence that the Note so
authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled
to the benefits of this Indenture.
All Notes shall be dated that date of their authentication.
In case any Officer of the Company who shall have signed any of the Notes shall cease to be
such Officer before the Notes so signed shall have been authenticated and delivered by the Trustee,
or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or
disposed of as though the Person who signed such Notes had not ceased to be such Officer of the
Company; and any Note may be signed on behalf of the Company by such Person as, at the actual date
of the execution of such Note, shall be an Officer of the Company, although at the date of the
execution of this Indenture any such person was not such an Officer.
The Trustee shall have the right to decline to authenticate and deliver any Notes under this
Indenture if the Trustee, being advised by counsel, determines that such action may not lawfully be
taken or if the Trustee in good faith shall determine that such action would expose the Trustee to
personal liability to existing Holders.
Section 2.05. Exchange and Registration of Transfer of Notes; Restrictions on Transfer;
Depositary. (a) The Company shall cause to be kept at the Corporate Trust Office a register (the
register maintained in such office or in any other office or agency of the Company being herein
sometimes collectively referred to as the “Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide
13
for the registration of Notes and of transfers of Notes. The Note Register shall be in
written form or in any form capable of being converted into written form within a reasonable period
of time. The Trustee is hereby appointed “Note Registrar” for the purpose of registering Notes and
transfers of Notes as herein provided. The Company may appoint a new Note Registrar without prior
notice to Holders. The Company may appoint one or more co-registrars.
Upon surrender for registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section
2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized denominations and of
a like aggregate principal amount.
Upon the registration of transfer, exchange or replacement of Notes not bearing or deemed not
to bear the Restrictive Legend, the Note Registrar shall deliver Notes that do not bear the
Restrictive Legend. Upon the registration of transfer, exchange or replacement of Notes bearing the
Restrictive Legend, the Note Registrar shall deliver only Notes that bear the Restrictive Legend
unless there is delivered to the Note Registrar an Opinion of Counsel reasonably satisfactory to
the Company and the Trustee to the effect that neither the Restrictive Legend nor the related
restrictions on transfer are required in order to maintain compliance with the provisions of the
Securities Act.
Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 4.05. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes that
the Holder making the exchange is entitled to receive, bearing registration numbers not
contemporaneously outstanding.
All Notes presented or surrendered for registration of transfer or for exchange, purchase or
conversion shall (if so required by the Company, the Trustee, the Note Registrar or any
co-registrar) be duly endorsed, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and duly executed, by the Holder thereof or its
attorney-in-fact duly authorized in writing.
No service charge shall be charged by the Company, the Trustee or the Notes Registrar to the
Holder for any exchange or registration of transfer of Notes, but the Holder may be required by the
Company, the Trustee, the Notes Registrar or otherwise to pay a sum sufficient to cover any tax,
assessments or other governmental charges that may be imposed in connection therewith as a result
of the name of the Holder of the new Notes issued upon such exchange or registration of transfer of
Notes being different from the name of the Holder of the old Notes presented or surrendered for
such exchange or registration of transfer.
None of the Company, the Trustee, the Note Registrar or any co-registrar shall be required to
exchange or register a transfer of any Notes surrendered for conversion or repurchase except for
any portion of that Note that is not being repurchased or converted, as the case may be.
14
All Notes issued upon any registration of transfer or exchange of Notes in accordance with
this Indenture shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture as the Notes surrendered upon such registration
of transfer or exchange. For greater certainty, all Notes issued upon any registration of transfer
or exchange of Notes shall be issued as evidence of the same continuing indebtedness of the Company
under this Indenture and in no circumstances is the Company obligated under the Indenture to repay
the principal amount of the exchanged Notes by virtue of the registration of a transfer or
exchange.
(b) So long as the Notes are eligible for book-entry settlement with the Depositary, unless
otherwise required by law or except as provided in Section 2.05(c), all Notes shall be represented
by one or more Notes in global form (each, a “Global Note”) registered in the name of the
Depositary or the nominee of the Depositary. The transfer and exchange of beneficial interests in
a Global Note that does not involve the issuance of a Physical Note shall be effected through the
Depositary (but not the Trustee or the Custodian) in accordance with this Indenture (including the
restrictions on transfer set forth herein) and the procedures of the Depositary therefor.
Beneficial interests in the Global Note shall be held only in minimum denominations of $2,000 and
greater integral multiples of $1,000. Members of, or participants in, the Depositary (“Agent
Members”) shall have no rights under this Indenture with respect to any Global Note held on their
behalf by the Depositary, or the Trustee as its custodian, or under the Global Note, and the
Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee
as the absolute owner of the Global Note for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other authorization furnished by
the Depositary or impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of any Holder.
(c) Every Note that bears or is required under this Section 2.05(c) to bear the Restrictive
Legend (together with any Common Stock issued upon conversion of the Notes and required to bear a
similar legend, the “Restricted Securities”) shall be subject to the restrictions on transfer set
forth in this Section 2.05(c) (including the restrictions set forth in the Restrictive Legend), and
the holder of each such Restricted Security, by such holder’s acceptance thereof, agrees to be
bound by all such restrictions on transfer. As used in this Section 2.05(c), the term “transfer”
encompasses any sale, pledge, transfer or other disposition whatsoever of any Restricted Security.
Until the date (the “Resale Restriction Termination Date”) that is the later of (1) the date
that is one year after the Issue Date of a Note (including, if applicable, through exercise by the
Initial Purchasers of their option to purchase additional Notes pursuant to the Purchase Agreement)
and (2) such later date, if any, as may be required by applicable laws, any certificate evidencing
such Note (and all securities issued in exchange therefor or substitution thereof, and all shares
of Common Stock, if any, issued upon conversion thereof, if applicable) shall bear a legend in
substantially the following form (unless such Note or shares of Common Stock, if any, have been
transferred pursuant to a registration statement that has become or been declared effective under
the Securities Act and that continues to be effective at the time of such transfer, pursuant to the
exemption from registration provided by Rule 144 or any similar provision then
15
in force under the Securities Act, or unless otherwise agreed by the Company in writing, with
written notice thereof to the Trustee):
THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER XXXXXXX 0 XX XXX XXXXXX XXXXXX SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.
THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH
SECURITY, MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a) INSIDE THE UNITED STATES TO
A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES
ACT, (b) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (d) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE
COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A)
ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144
FOR RESALE OF THE SECURITY EVIDENCED HEREBY.
Any Common Stock issued upon conversion of any Note prior to the Resale Restriction
Termination Date shall bear a legend in form and substance similar to the Restrictive Legend.
No transfer of any Note prior to the Resale Restriction Termination Date will be registered by
the Note Registrar unless the applicable box on the Form of Assignment and Transfer has been
checked.
Notwithstanding anything to the contrary contained in this Indenture or a Note (except for
Section 2.05(d)), after the Resale Restriction Termination Date with respect to a Note, such Note
(or security issued in exchange or substitution therefor) as to which such restrictions on transfer
shall have expired in accordance with their terms may, upon surrender of such Note for
16
exchange to the Note Registrar in accordance with the provisions of this Section 2.05, be
exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which shall not
bear the Restrictive Legend and the CUSIP number for which shall be the applicable unrestricted
CUSIP number.
Notwithstanding any other provisions of this Indenture (other than the provisions set forth in
this Section 2.05(c)), a Global Note may not be transferred as a whole or in part except by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.
The Depositary shall be a clearing agency registered under the Exchange Act. The Company
initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the
Global Note. Initially, the Global Notes shall be issued to the Depositary, registered in the name
of Cede & Co., as the nominee of the Depositary, and deposited with the Trustee as custodian for
DTC.
If (i) the Depositary notifies the Company at any time that the Depositary is unwilling or
unable to continue as depositary for the Global Notes and a successor depositary is not appointed
within 90 days, (ii) the Depositary ceases to be registered as a clearing agency under the Exchange
Act and a successor depositary is not appointed within 90 days or (iii) an Event of Default with
respect to the Notes has occurred and is continuing, in each case, upon the request of the
beneficial owner of the Notes, the Company shall execute, and the Trustee, upon receipt of an
Officers’ Certificate and a Company Order for the authentication and delivery of Notes, shall
authenticate and deliver Physical Notes to each such beneficial owner of the related Notes (or a
portion thereof) in an aggregate principal amount equal to the principal amount of such Global
Note, in exchange for such Global Note, and upon delivery of the Global Note to the Trustee such
Global Note shall be canceled.
Physical Notes issued in exchange for all or a part of the Global Note pursuant to this
Section 2.05(c) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee in writing. Upon execution and authentication, the Trustee shall deliver such
Physical Notes to the Persons in whose names such Notes are so registered.
At such time as all interests in a Global Note have been converted, canceled, repurchased or
transferred, such Global Note shall be, upon receipt thereof, canceled by the Trustee in accordance
with standing procedures and instructions existing between the Depositary and the Custodian. At
any time prior to such cancellation, if any interest in a Global Note is exchanged for Physical
Notes, converted, canceled, repurchased or transferred to a transferee who receives Physical Notes
therefor or any Physical Note is exchanged or transferred for part of such Global Note, the
principal amount of such Global Note shall, in accordance with the standing procedures and
instructions existing between the Depositary and the Custodian, be appropriately reduced or
increased, as the case may be, and an endorsement shall be made on such Global Note, by the Trustee
or the Custodian, at the direction of the Trustee, to reflect such reduction or increase.
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None of the Company, the Trustee, nor any agent of the Company or the Trustee shall have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.
(d) The Company may cause the removal of the Restrictive Legend from any Global Note at any
time on or after the Resale Restriction Termination Date by: (i) instructing the Trustee in writing
to remove the Restrictive Legend from such Global Note; (ii) providing to the Trustee and the
Depositary written notice to change the CUSIP number for the Notes to the applicable unrestricted
CUSIP number; and (iii) complying with any Applicable Procedures for delegending or otherwise
exchanging such Global Note for a Global Note not bearing the Restrictive Legend (including DTC’s
mandatory exchange process, if applicable); whereupon the Restrictive Legend shall be deemed
removed from any Global Notes and there shall be no requirement that any Common Stock into which
such Global Notes are convertible bear a legend in form and substance similar to the Restrictive
Legend, in each case without any further action on the part of the Holders.
(e) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Note (including any transfers between or among
Depositary participants or beneficial owners of interests in any Global Note) other than to require
delivery of such certificates and other documentation or evidence as are expressly required by, and
to do so if and when expressly required by the terms of, this Indenture, and to examine the same to
determine substantial compliance as to form with the express requirements hereof.
(f) The Company shall not, and shall not permit any of its “affiliates” within the meaning of
Rule 144, to resell any of the Notes that constitute “restricted securities” under Rule 144 that
have been reacquired by them.
Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become
mutilated or be destroyed, lost or stolen, the Company in its discretion may execute, and upon a
Company Order the Trustee or an authenticating agent appointed by the Trustee shall authenticate
and deliver, a new Note, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed,
lost or stolen. In every case the applicant for a substituted Note shall furnish to the Company,
to the Trustee and, if applicable, to the authenticating agent, such security or indemnity as may
be required by them to save each of them harmless from any loss, liability, cost or expense caused
by or connected with such substitution, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Company, to the Trustee and, if applicable, to the
authenticating agent, evidence to their satisfaction of the destruction, loss or theft of such Note
and of the ownership thereof.
The Trustee or the authenticating agent, if applicable, may authenticate any such substituted
Note and deliver the same upon the receipt of such security or indemnity as the Trustee, the
Company and, if applicable, the authenticating agent may require. Upon the issuance of any
substitute Note, the Company or the Trustee may require the payment by the
18
Holder of a sum sufficient to cover any tax, assessment or other governmental charge that may
be imposed in relation thereto and any other expenses connected therewith. In case any Note that
has matured or is about to mature or has been tendered for repurchase upon a Fundamental Change or
is about to be converted shall become mutilated or be destroyed, lost or stolen, the Company may,
in its sole discretion, instead of issuing a substitute Note, pay or authorize the payment of or
convert or authorize the conversion of the same (without surrender thereof except in the case of a
mutilated Note), as the case may be, if the applicant for such payment or conversion shall furnish
to the Company, to the Trustee and, if applicable, to the authenticating agent, such security or
indemnity as may be required by them to save each of them harmless for any loss, liability, cost or
expense caused by or connected with such substitution, and, in every case of destruction, loss or
theft, evidence satisfactory to the Company, the Trustee and, if applicable, any Paying Agent or
Conversion Agent evidence of their satisfaction of the destruction, loss or theft of such Note and
of the ownership thereof.
Every substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the
fact that any Note is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any
time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other Notes duly issued
hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement, payment,
conversion or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and
all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement, payment or conversion of negotiable instruments or
other securities without their surrender.
For greater certainty, every substitute Note issued pursuant to the provisions of this Section
2.06 by virtue of the fact that any Note is mutilated, destroyed, lost or stolen shall be issued as
evidence of the same continuing indebtedness of the Company under this Indenture and in no
circumstances is the Company obligated under the Indenture to repay the principal amount of the
substituted Note by virtue of such mutilation, destruction or loss.
Section 2.07. Temporary Notes. Pending the preparation of Physical Notes, the Company may
execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon written
request of the Company, authenticate and deliver temporary Notes (printed or lithographed).
Temporary Notes shall be issuable in any authorized denomination, and substantially in the form of
the Physical Notes but with such omissions, insertions and variations as may be appropriate for
temporary Notes, all as may be determined by the Company. Every such temporary Note shall be
executed by the Company and authenticated by the Trustee or such authenticating agent upon the same
conditions and in substantially the same manner, and with the same effect, as the Physical Notes.
Without unreasonable delay, the Company shall execute and deliver to the Trustee or such
authenticating agent Physical Notes (other than any Global Note) and thereupon any or all temporary
Notes (other than any Global Note) may be surrendered in exchange therefor, at each office or
agency maintained by the Company pursuant to Section 4.05 and the Trustee or such authenticating
agent shall authenticate and deliver in exchange for such temporary Notes an equal aggregate
principal amount of Physical Notes. Such exchange shall be made by the Company at its own expense
and without any charge
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therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the
same benefits and subject to the same limitations under this Indenture as Physical Notes
authenticated and delivered hereunder.
For greater certainty, each Note issued pursuant to the provisions of this Section 2.07 in
exchange for a temporary Note shall be issued as evidence of the same continuing indebtedness of
the Company under this Indenture and in no circumstances is the Company obligated under the
Indenture to repay the principal amount of the temporary Note by virtue of the exchange.
Section 2.08. Cancellation of Notes Paid, Etc. All Notes surrendered for the purpose of
payment, repurchase, conversion, exchange or registration of transfer, shall, if surrendered to the
Company or any Paying Agent or any Note Registrar or any Conversion Agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled
by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall dispose of canceled Notes in accordance with its
customary procedures and, after such cancellation, shall deliver a written confirmation of such
cancellation to the Company, at the Company’s written request. If the Company shall acquire any of
the Notes, such acquisition shall not operate as satisfaction of the indebtedness represented by
such Notes unless and until the same are delivered to the Trustee for cancellation.
Section 2.09. CUSIP and ISIN Numbers. The Company in issuing the Notes may use “CUSIP” and
“ISIN” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” and “ISIN”
numbers in all notices issued to Holders of the Notes as a convenience to such Holders; provided
that any such notice may state that no representation is made as to the correctness of such numbers
either as printed on the Notes or on such notice and that reliance may be placed only on the other
identification numbers printed on the Notes. The Company shall promptly notify the Trustee in
writing of any change in the “CUSIP” or “ISIN” numbers.
Any Notes that are, when issued, Restricted Securities shall be issued with a restricted CUSIP
number. Until such time as the Restrictive Legend is removed from such Notes pursuant to the terms
of this Indenture, the restricted CUSIP shall be the CUSIP number for such Notes. After the Company
causes the removal of the Restrictive Legend from such Notes the CUSIP number for such Notes shall
be an unrestricted CUSIP number.
Section 2.10. Additional Notes; Purchases. The Company may, without the consent of the
Holders of the Notes and notwithstanding Section 2.01, issue additional Notes hereunder with the
same terms and with the same CUSIP and ISIN number as the Notes initially issued hereunder in an
unlimited aggregate principal amount, which shall form the same series with the Notes initially
issued hereunder; provided that no such additional Notes may be issued unless they are fungible
with the Notes initially issued hereunder for U.S. federal income tax purposes. Prior to the
issuance of any such additional Notes, the Company shall deliver to the Trustee a Company Order, an
Opinion of Counsel (with respect to the enforceability of such additional notes) and an Officers’
Certificate to the effect that such issuance of additional Notes complies with the provisions of
the Indenture (including this Section 2.10). In addition, the Company may, to the extent permitted
by law, directly or indirectly (regardless of whether such
20
Notes are surrendered to the Company), from time to time purchase the Notes in open market
purchases or negotiated transactions without prior notice to Holders. The Company shall cause any
Notes so repurchased (other than Notes purchased pursuant to cash-settled swaps or other
derivatives) to be surrendered to the Trustee for cancellation in accordance with Section 2.08 and
any Notes so repurchased by the Company shall be deemed to be no longer Outstanding under this
Indenture.
ARTICLE 3
Section 3.01.
Satisfaction and Discharge. This Indenture shall upon request of the Company
contained in an Officers’ Certificate cease to be of further effect, and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture, when (a) (i) the Company delivers to the Trustee all Outstanding Notes (other
than Notes replaced pursuant to Section 2.06) for cancellation; or (ii) the Company has deposited
with the Trustee or delivered to Holders of Notes, as applicable, after the Notes have become due
and payable, whether at the Maturity Date or any Fundamental Change Repurchase Date, or upon
conversion or otherwise, cash and/or (in the case of conversion) shares of Common Stock (together
with cash in lieu of fractional shares), as applicable, sufficient to pay all of the Outstanding
Notes and all other sums payable under this Indenture by the Company; and (b) the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with. Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 7.06 shall survive such
satisfaction and discharge.
Section 3.02.
Deposited Monies To Be Held In Trust. Subject to Section 3.03 hereof, all
monies deposited with the Trustee pursuant to Section 3.01 hereof shall be held in trust and
applied by it to the payment, either directly or through any Paying Agent (including the Company if
acting as its own Paying Agent), to the Holders for the payment of which such monies have been
deposited with the Trustee, of all sums due and to become due thereon for principal and interest.
All monies deposited with the Trustee pursuant to Section 3.01 hereof (and held by it or any Paying
Agent) for the payment of Notes subsequently converted shall be returned to the Company upon
written request of the Company.
Section 3.03.
Return Of Unclaimed Monies. The Trustee and the Paying Agent shall pay to the
Company upon written request any money held by them for the payment of principal of, or accrued and
unpaid interest on, the Notes that remains unclaimed for two years after the date upon which such
payment shall have become due. Notwithstanding the foregoing, the Trustee and Paying Agent shall
have the right to withhold payment of such money to the Company until the Trustee or Paying Agent
at the expense of the Company publishes in a newspaper of general circulation in
New York City, or
mails to each Holder, a notice stating that such money shall be repaid to the Company if unclaimed
after a date no less than 30 days from the publication of such press release or mailing. After
payment to the Company by the Trustee or Paying Agent, all liability of the Trustee and the Paying
Agent with respect to such money
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shall cease, and Holders entitled to the money must look to the Company for payment as general
creditors, subject to applicable law.
ARTICLE 4
Particular Covenants of the Company
Section 4.01.
Payment of Principal and Interest. (a) The Company shall promptly make all
payments in respect of the Notes on the dates and in the manner provided in the Notes and this
Indenture. A payment of principal or interest shall be considered paid on the date it is due if
the Paying Agent holds by 11:00 a.m. (
New York City time) on that date money or securities,
deposited by or on behalf of the Company sufficient to make the payment. The Company shall, to the
fullest extent permitted by law, pay interest in immediately available funds on any overdue
principal amount and interest at the annual rate borne by the Notes compounded semiannually, which
interest shall accrue from the date such overdue amount was originally due to the date payment of
such amount, including interest thereon, has been made or duly provided for. All such interest
shall be payable on demand.
(b) Payment of the principal of and interest, if any, on the Notes shall be made at the office
or agency of the Company maintained for that purpose, which shall initially be at the Trustee’s
Corporate Trust Office, in such immediately available coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that, subject to Section 2.03, the Company may pay principal and interest in
respect of any Physical Note by check or wire transfer payable in such money. Notwithstanding the
foregoing, so long as the Notes are registered in the name of a Depositary or its nominee, all
payments thereon shall be made by wire transfer of immediately available funds to the account of
the Depositary or its nominee.
Section 4.02. Corporate Existence. Subject to Article 10 hereof, the Company shall do or
cause to be done all things necessary to preserve and keep in full force and effect its corporate
existence and rights (charter and statutory); provided, however, that the Company shall not be
required to preserve any such right or franchise if the Company determines that the preservation
thereof is no longer desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.
Section 4.03. Rule 144A Information Requirement and Reports. (a) At any time the Company is
not subject to Sections 13 or 15(d) of the Exchange Act, the Company shall, so long as any of the
Notes or any shares of Common Stock issuable upon conversion thereof shall, at such time,
constitute “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act,
upon written request, provide to any Holder, beneficial owner or prospective purchaser of such
Notes or any shares of Common Stock issued upon conversion of such Notes, the information required
to be delivered pursuant to Rule 144A(d)(4) under the Securities Act to facilitate the resale of
such Notes or shares of Common Stock pursuant to Rule 144A under the Securities Act.
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(b) The Company shall furnish to the Trustee within 15 calendar days after the Company is
required to file any documents or reports with the Commission pursuant to Sections 13 or 15(d) of
the Exchange Act (giving effect to all applicable grace periods provided under the Exchange Act
including that provided by Rule 12b-25 under the Exchange Act) copies of such documents or reports.
Any such document or report that the Company files with the Commission through the Commission’s
XXXXX system shall be deemed furnished to the Trustee for purposes of this Section 4.03(b) at the
time such documents are filed or furnished via the Commission’s XXXXX system; provided that the
Trustee shall have no responsibility for determining whether such filing has taken place, nor shall
the Trustee have any liability for the timeliness or content of any filing or report hereunder.
Section 4.04. Compliance Certificate. The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year of the Company an Officers’ Certificate stating whether or not, to the
knowledge of such officer, the Company is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture and, if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.
Within five Business Days of an Officer of the Company coming to have actual knowledge of a Default
or Event of Default, regardless of the date, the Company shall deliver an Officers’ Certificate to
the Trustee specifying such Default or Event of Default and the nature and status thereof.
Section 4.05. Maintenance of Office or Agency. So long as any Notes remain Outstanding, the Company agrees
to maintain an office or agency with respect to such Notes and at such other location or locations
as may be designated as provided in this Section 4.05, where (i) Notes may be presented for
conversion (the Person accepting such conversions being the “Conversion Agent”), (ii) Notes may be
presented for payment (whether upon repurchase, at the Maturity Date, upon acceleration or
otherwise) (the Person accepting such presentments being the “Paying Agent”), (iii) Notes may be
presented as herein above authorized for registration of transfer and exchange and (iv) notices and
demands to or upon the Company in respect of the Notes and this Indenture may be given or served,
such designation to continue with respect to such office or agency until the Company shall, by
written notice signed by any two officers authorized to sign an Officers’ Certificate and delivered
to the Trustee, designate some other office or agency for such purposes or any of them. If at any
time the Company shall fail to maintain any such required 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 Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its
agent to receive all such presentations, notices and demands. The Company initially appoints the
Corporate Trust Office of the Trustee as Conversion Agent and Paying Agent with respect to the
Notes.
Section 4.06. Paying Agents. (a) If the Company shall appoint one or more Paying Agents for the Notes,
other than the Trustee, the Company shall cause each such Paying Agent to execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section 4.06:
(i) that it shall hold all sums held by it as agent for the payment of the principal of
or interest on the Notes (whether such sums have been paid to it by the
23
Company or by any
other obligor of such Notes) in trust for the benefit of the Persons entitled thereto;
(ii) that it shall give the Trustee written notice of any failure by the Company to
make any payment of the principal of or interest on the Notes when the same shall be due and
payable;
(iii) that it shall, at any time during the continuance of any failure referred to in
the preceding paragraph (a)(ii) above, upon the written request of the Trustee, forthwith
pay to the Trustee all sums so held in trust by such Paying Agent; and
(iv) that it shall perform all other duties of a Paying Agent as set forth in this
Indenture.
(b) If the Company shall act as its own Paying Agent with respect to any Notes, it shall on or
before each due date of the principal of or interest on the Notes, set aside, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum sufficient to pay such principal or
interest so becoming due on Notes until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and shall promptly notify the Trustee in writing of such action, or
any failure to take such action. The Trustee shall have no liability or responsibility for the
action or inaction of any Paying Agent (that is not the Trustee).
(c) Notwithstanding anything in this Section 4.06 to the contrary, (i) the agreement to hold
sums in trust as provided in this Section 4.06 is subject to the provisions of Section 3.02 and
Section 3.03 and (ii) 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 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 and conditions as those upon which such sums were held by the
Company or such Paying Agent; and, upon such payment by the Company or any Paying Agent to the
Trustee, the Company or such Paying Agent shall be released from all further liability with respect
to such money.
Section 4.07. Appointment to Fill Vacancy in Office of Trustee. The Company, whenever necessary to avoid or
fill a vacancy in the office of Trustee, shall appoint, in the manner provided in Section 7.09, a
Trustee, so that there shall at all times be a Trustee hereunder.
ARTICLE 5
Holders’ Lists and Reports by the Company and the Trustee
Section 5.01. Company to Furnish Trustee Names and Addresses of Holders. The Company shall furnish or cause
to be furnished to the Trustee (a) within ten days after each Regular Record Date, a list, in such
form as the Trustee may reasonably require, of the names and addresses of the Holders as of such
regular record date, provided that the Company shall not be obligated to furnish or cause to
furnish such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the
Company and (b) at such other times as the Trustee may request in writing within 30 days after the
receipt
24
by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished; provided, however, that, in either
case, no such list need be furnished for any Notes for which the Trustee shall be the Note
Registrar.
Section 5.02. Preservation Of Information; Communications With Holders.
(a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the Holders of Notes contained in the most recent list
furnished to it as provided in Section 5.01 and as to the names and addresses of Holders of Notes
received by the Trustee in its capacity as Note Registrar (if acting in such capacity).
(b) The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt
of a new list so furnished.
(c) The rights of Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Notes, and the corresponding rights and duties of the Trustee, shall be
as provided by the Trust Indenture Act.
(d) Every Holder, by receiving and holding a Note, agrees with the Company and the Trustee
that neither the Company nor the Trustee nor any agent of either of them shall be held accountable
by reason of any disclosure of information as to names and addresses of Holders made pursuant
hereto or otherwise in accordance with the Trust Indenture Act.
Section 5.03. Reports by the Trustee.
(a) On or before June 1 in each year, commencing June 1, 2011, in which any of the Notes are
Outstanding, the Trustee shall transmit by mail, first-class postage prepaid, to the Holders, as
their names and addresses appear upon the Note Register, a brief report dated as of the preceding
April 1, if and to the extent required under Section 313(a) of the Trust Indenture Act.
(b) The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.
(c) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with the Company, with each securities exchange upon which any Notes are listed (if so
listed) and also with the Securities and Exchange Commission. The Company agrees to promptly
notify the Trustee in writing when any Notes become listed on any securities exchange and of any
delisting thereof.
ARTICLE 6
Section 6.01.
Events of Default. An “
Event of Default” shall occur when any of the following occurs:
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(a) the Company fails to pay when due the principal of any of the Notes at the Maturity Date,
upon exercise of a repurchase right hereunder or otherwise;
(b) the Company fails to pay an installment of interest on any of the Notes for 30 days or
more after the date when due;
(c) the Company fails to deliver when due all shares of Common Stock, together with cash
instead of fractional shares, and/or other property, if applicable, deliverable or payable, as the
case may be, upon conversion of the Notes pursuant to Article 13, which failure continues for a
period of five Business Days;
(d) the Company fails to provide a Fundamental Change Company Notice when due pursuant to
Section 16.01;
(e) the Company fails to comply with its obligations under Section 10.01;
(f) the Company fails to perform or observe any other term, covenant or agreement contained in
the Notes or this Indenture for a period of 60 days after written notice of such failure, requiring
the Company to remedy the same, shall have been given to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the
then-Outstanding Notes;
(g) default by the Company or any Subsidiary of the Company with respect to any mortgage,
agreement or other instrument under which there may be outstanding, or by which there may be
secured or evidenced, any indebtedness for borrowed money in excess of $50.0 million in the
aggregate of the Company and/or any such Subsidiary, whether such indebtedness now exists or shall
hereafter be created (i) resulting in such indebtedness becoming or being declared due and payable
or (ii) constituting a failure to pay the principal or interest of any such debt when due and
payable at its stated maturity, upon required repurchase, upon declaration of acceleration or
otherwise; provided, however, that if such default ceases or is cured, waived, rescinded or
annulled, then any Default or Event of Default under this clause (g) shall be deemed no longer to
be continuing;
(h) an involuntary case or other proceeding shall be commenced against the Company or any
Significant Subsidiary (or any group of the Company’s Subsidiaries that, taken together, would
constitute a Significant Subsidiary) seeking liquidation, reorganization or other relief with
respect to the Company or any Significant Subsidiary (or any group of the Company’s Subsidiaries
that, taken together, would constitute a Significant Subsidiary) or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of the Company or any Significant
Subsidiary (or any group of the Company’s Subsidiaries that, taken together,
would constitute a Significant Subsidiary) or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for a period of 30
consecutive days; or
(i) the Company or any Significant Subsidiary (or any group of the Company’s Subsidiaries
that, taken together, would constitute a Significant Subsidiary) pursuant to or within the meaning
of any Bankruptcy Law:
26
(i) commences as a debtor a voluntary case or proceeding;
(ii) consents to the entry of an order for relief against it in an involuntary case or
proceeding or the commencement of any case against it;
(iii) consents to the appointment of a Receiver of it or for all or substantially all
of its property;
(iv) makes a general assignment for the benefit of its creditors;
(v) files a petition in bankruptcy or answer or consent seeking reorganization or
relief; or
(vi) consents to the filing of such a petition or the appointment of or taking
possession by a Receiver.
The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto)
or any similar federal or state law for the relief of debtors. The term “Receiver” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.
Section 6.02.
Acceleration of Maturity; Rescission and Annulment. If an Event of Default with respect to
Outstanding Notes (other than an Event of Default specified Section 6.01(h) or Section 6.01(i)
hereof in respect of the Company) occurs and is continuing, the Trustee or the Holders of at least
25% in aggregate principal amount of the then-Outstanding Notes, by written notice to the Trustee,
may declare the Notes due and payable at their principal amount plus any accrued and unpaid
interest, and thereupon the Trustee may, at its discretion, proceed to protect and enforce the
rights of the Holders by the appropriate judicial proceedings. Such declaration may be rescinded
and annulled with the written consent of the Holders of a majority in aggregate principal amount of
the then-Outstanding Notes, subject to the provisions of this Indenture.
If an Event of Default specified in Section 6.01(h) or Section 6.01(i) hereof occurs and is
continuing, then all unpaid principal of, and accrued and unpaid interest on, the Outstanding Notes
shall become immediately due and payable, without any declaration or other act on the part of the
Trustee or any Holder.
Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default specified in Section 6.01(f) relating to the failure by the Company to comply with its
reporting obligations under Section 4.03 and for any failure to comply with the
requirements of Section 314(a)(1) of the Trust Indenture Act, shall (i) for the first 90 days
after the occurrence of such an Event of Default, consist exclusively of the right to receive
special interest on Notes (the “Special Interest”) at an annual rate equal to 0.25% per annum of
the principal amount of the Outstanding Notes, and (ii) for the next 90 days after the expiration
of such 90-day period, consist exclusively of the right to receive Special Interest on the Notes at
an annual rate equal to 0.50% per annum of the principal amount of the Outstanding Notes.
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The Special Interest shall be paid semiannually in arrears, with the first semiannual payment
due on the first Interest Payment Date following the date on which the Special Interest began to
accrue on any Notes. The Special Interest shall accrue on all Outstanding Notes from, and
including, the date on which an Event of Default relating to a failure to comply with the reporting
obligations under Section 4.03 or a failure to comply with the requirements of Section 314(a)(1) of
the Trust Indenture Act first occurs to, but not including, the 180th day thereafter (or such
earlier date on which the Event of Default relating to such reporting obligations shall have been
cured or waived). On such 180th day (or earlier, if such Event of Default is cured or waived
pursuant to Section 6.04 prior to such 180th day), such Special Interest will cease to accrue and,
if such Event of Default relating to such reporting obligations has not been cured or waived prior
to such 180th day, the Notes shall be subject to acceleration as provided above in this Section
6.02. The provisions described in this paragraph shall not affect the rights of the Holders in the
event of the occurrence of any other Event of Default. In the event the Company does not elect to
pay Special Interest upon an Event of Default in accordance with this paragraph, the Notes will be
subject to acceleration as provided in this Section 6.02. If the Company elects to pay Special
Interest as the sole remedy for an Event of Default specified in Section 6.01(d) relating to the
failure by the Company to comply with its obligations under Section 4.03 or any failure to comply
with the requirements of Section 314(a)(1) of the Trust Indenture Act, the Company shall notify in
writing, in the manner provided for in Section 18.03, the Holders and the Trustee of such election
at any time on or before the close of business on the date on which such Event of Default first
occurs. If the Company fails to timely give such notice, the Notes shall be subject to
acceleration as provided in this Section 6.02.
The Holders of a majority in aggregate principal amount of the then-Outstanding Notes by
written notice to the Trustee may rescind and annul an acceleration and its consequences if:
(1) all existing Events of Default, other than the nonpayment of principal (including the
Fundamental Change Repurchase Price, if applicable) of or interest on the Notes which has become
due solely because of the acceleration, have been remedied, cured or waived; and
(2) the rescission would not conflict with any judgment or decree of a court of competent
jurisdiction;
provided, however, that in the event such declaration of acceleration has been made based on the
existence of an Event of Default under Section 6.01(g) hereof and such Event of Default has been
remedied, cured or waived in accordance with Section 6.01(g) hereof, then, without any further
action by the Holders, such declaration of acceleration shall be rescinded automatically and the
consequences of such declaration shall be annulled. No such rescission or annulment shall affect
any subsequent Default or impair any right consequent thereon.
Section 6.03.
Other Remedies. If an Event of Default with respect to Outstanding Notes occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of principal of, or interest on, the Notes or to enforce the performance of any
provision of the Notes.
Section 6.04.
Waiver of Past Defaults. The Holders, either (a) through the written consent of not less than
a majority in aggregate principal amount of the Notes then
28
Outstanding or (b) by the adoption of a
resolution, at a meeting of Holders of the Notes then Outstanding at which a quorum is present, by
the Holders of at least a majority in aggregate principal amount of the Outstanding Notes
represented at such meeting, may, on behalf of the Holders of all of the Notes, waive an existing
Default or Event of Default, except a Default or Event of Default:
(1) in the payment of the principal of (including Fundamental Change Repurchase Price, if
applicable), or interest on, any Note;
(2) in respect of the right to convert any Note in accordance with Article 13; or
(3) in respect of the covenants or provisions hereof which, under Section 9.02 hereof, cannot
be modified or amended without the consent of the Holder of each Outstanding 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; provided,
however, that no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.
Section 6.05.
Control by Majority. The Holders, either (a) through the written consent of not less than a
majority in aggregate principal amount of the Notes then Outstanding, or (b) by the adoption of a
resolution, at a meeting of Holders of the Notes then Outstanding at which a quorum is present, by
the Holders of at least a majority in aggregate principal amount of the Outstanding Notes
represented at such meeting, 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, subject to the provisions of this Indenture. However, the Trustee may
refuse to follow any direction that:
(a) conflicts with any law or with this Indenture;
(b) the Trustee determines may be unduly prejudicial to the rights of the Holders not joining
therein; or
(c) in the Trustee’s reasonable judgment may expose the Trustee to personal liability.
The Trustee may take any other action deemed proper by the Trustee which is not inconsistent
with such direction.
Section 6.06.
Limitation On Suit. No Holder of any Note may pursue any remedy with respect to this
Indenture or the Notes (including instituting any proceeding, judicial
or otherwise, with respect to this Indenture or for the appointment of a receiver or trustee),
except, in the case of a Default or Event of Default in the payment of the principal of (including
the Fundamental Change Repurchase Price, if applicable), or interest on, the Notes or Default in
the delivery of the shares of Common Stock and payment of cash in lieu of fractional shares due
upon conversion of Notes, unless:
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(a) such Holder has previously given written notice to the Trustee of an Event of Default that
is continuing;
(b) the Holders of at least 25% in aggregate principal amount of the Notes then Outstanding
shall have made a written request to the Trustee to pursue the remedy;
(c) such Holder or Holders have offered the Trustee security or indemnity reasonably
satisfactory to the Trustee against any costs, liabilities or expenses incurred in complying with
such request;
(d) the Trustee does not, within 60 days after receipt of the request and offer of indemnity,
receive an inconsistent direction from the Holders of a majority in principal amount of the Notes;
and
(e) the Trustee has failed to comply with the request for 60 days after the receipt of such
request and an offer of indemnity.
A Holder of Notes may not use this Indenture to prejudice the rights of another Holder of
Notes or to obtain a preference or priority over another Holder of Notes (it being understood that
the Trustee does not have an affirmative duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders).
Notwithstanding any other provision in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal amount (including
the Fundamental Change Repurchase Price, if applicable), interest and the Make-Whole Fundamental
Change Premium, if any, in respect of the Notes held by such Holder, on or after the respective due
dates expressed in the Notes and this Indenture, and to convert such Note in accordance with
Article 13, and to bring suit for the enforcement of any such payment on or after such respective
due dates or for the right to convert in accordance with Article 13, and shall not be impaired or
affected without the consent of such Holder.
Section 6.08.
Collection of Indebtedness and Suits For Enforcement By the Trustee. The Company covenants
that if an Event of Default occurs under Section 6.01(a) or Section 6.01(b), then the Company
shall, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Notes, the
whole amount then due and payable (as expressed therein or as a result of any acceleration effected
pursuant to Section 6.02 hereof) on such Notes for principal (including the Fundamental Change
Repurchase Price, if applicable) and interest and, to the extent that payment of such interest
shall be legally enforceable, interest on any
overdue principal (including the Fundamental Change Repurchase Price, if applicable) and on
any overdue interest, in each case at the rate borne by the Notes from the required payment date,
and, in addition thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel.
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If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company and collect the moneys adjudged or decreed to be payable in
the manner provided by law out of the property of the Company, wherever situated.
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 of Notes 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 6.09.
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 the property of the Company or its creditors, the Trustee
(irrespective of whether the principal of the Notes (including the Fundamental Change Repurchase
Price, if applicable) 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 (including
the Fundamental Change Repurchase Price, if applicable) and interest owing and unpaid in respect of
the Notes and to file such other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due to the
Trustee hereunder) and of the Holders of Notes allowed in such judicial proceeding, and (2) to
collect and receive any moneys or other property payable or deliverable on any such claim and to
distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceedings is hereby authorized by each Holder of
Notes 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 of Notes, 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 this Indenture.
Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to
or accept, or adopt on behalf of any Holder of a Note, any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize
the Trustee to vote in respect of the claim of any Holder of a Note in any such proceeding.
Section 6.10.
Restoration of Rights and Remedies. If the Trustee or any Holder of a Note 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, subject to any determination in such proceeding, the
Company, the Trustee and the Holders of Notes shall be restored severally and respectively to their
former positions hereunder and thereafter all rights
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and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.
Section 6.11.
Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes in Section 2.06, no right or remedy
conferred in this Indenture upon or reserved to the Trustee or to the Holders of Notes 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
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 6.12.
Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any
Note 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 any acquiescence therein. Every
right and remedy given by this Article 6 or by law to the Trustee or to the Holders of Notes may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders of Notes, as the case may be.
Section 6.13.
Application of Money Collected. Any money and property collected by the Trustee pursuant to
this Article 6 shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money and property on account of principal (including the
Fundamental Change Repurchase Price, if applicable) or interest, upon presentation of the Notes and
the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:
FIRST: To the payment of all amounts due the Trustee, including its agents and counsel;
SECOND: To the payment of the amounts then due and unpaid for principal (including the
Fundamental Change Repurchase Price, if applicable) of and interest on the Notes 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 Notes for principal
(including the Fundamental Change Repurchase Price, if applicable) and interest, respectively; and
THIRD: Any remaining amounts shall be repaid to the Company.
Section 6.14.
Undertaking For Costs. All parties to this Indenture agree, and each Holder of any Note by
such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee with respect to the Notes, 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 and expenses, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section 6.14 shall not apply to any suit
instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of
32
Holders, holding in the aggregate more than 10% in aggregate principal amount
of the Notes then Outstanding, or to any suit instituted by any Holder of any Note for the
enforcement of the payment of the principal of (including the Fundamental Change Repurchase Price,
if applicable), or interest on, any Note on or after the stated maturity expressed in such Note or
on or after a Fundamental Change Repurchase Date (in the case of Notes the Company is required to
repurchase pursuant to Article 16) or for the enforcement of the right to convert any Note in
accordance with Article 13.
Section 6.15.
Waiver of Stay or Extension Laws. The Company covenants (to the extent that it may lawfully
do so) that it shall not at any time insist upon, or plead, or in any manner whatsoever claim to
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 shall not hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of every such power as
though no such law had been enacted.
Section 6.16.
Notice of Default. If any Default or any Event of Default occurs and is continuing and if
such Default or Event of Default is actually known to a Responsible Officer of the Trustee, the
Trustee shall within 90 days of the occurrence of a Default or Event of Default, mail to each
Holder notice of all uncured Defaults or Events of Default known to the Trustee, unless such
Default or Event of Default has been cured;
provided,
however, that, except in the case of a
default in the payment of the principal of (including the Fundamental Change Repurchase Price, if
applicable), or interest on, any Note, the Trustee shall be protected in withholding such notice if
the Trustee in good faith determines that the withholding of such notice is in the interest of such
Holders.
ARTICLE 7
Section 7.01.
Certain Duties and Responsibilities of Trustee. (a) The Trustee, prior to the occurrence of
an Event of Default and after the curing of all Events of Default that may have occurred, shall
undertake to perform with respect to the Notes such duties and only such duties as are specifically
set forth in this Indenture, and no implied covenants shall be read into this Indenture against the
Trustee. In case an Event of Default has occurred (that has not been cured or waived), the Trustee
shall exercise with respect to the Notes 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 person would
exercise or use under the circumstances in the conduct of his or her own affairs.
(b) 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:
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(i) prior to the occurrence of an Event of Default and after the curing or waiving of
all such Events of Default that may have occurred:
(A) the duties and obligations of the Trustee shall with respect to the Notes
be determined solely by the express provisions of this Indenture, and the Trustee
shall not be liable with respect to the Notes except for the performance of such
duties and obligations as are specifically set forth in this Indenture and subject
to the terms of this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and
(B) in the absence of bad faith on the part of the Trustee, the Trustee may
with respect to the Notes conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture; but
in the case of any such certificates or opinions that 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 (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein);
(ii) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts;
(iii) 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 Notes at the time Outstanding 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 with respect
to the Notes; and
(iv) none of the provisions contained in this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or powers if there
is reasonable ground for believing that the repayment of such funds or liability is not
reasonably assured to it under the terms of this Indenture or adequate indemnity against
such risk is not reasonably assured to it.
(a) the Trustee may rely conclusively and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond, security or other paper or document believed by it to
be genuine and to have been signed or presented by the proper party or parties;
34
(b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company by
any authorized officer of the Company (unless other evidence in respect thereof is specifically
prescribed herein);
(c) the Trustee may consult with counsel of its selection and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken or suffered or omitted hereunder in good faith and in reliance thereon;
(d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Holders pursuant to the
provisions of this Indenture, unless such Holders shall have offered the Trustee security or
indemnity satisfactory to the Trustee against the costs, expenses and liabilities that may be
incurred therein or thereby;
(e) the Trustee shall not be liable for any action taken or omitted to be taken by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture;
(f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond, security, or other papers or documents, unless requested in writing so to do
by the Holders of not less than a majority in principal amount of the Outstanding Notes affected
thereby (determined as provided in Section 8.04) 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; provided, however,
that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee,
not reasonably assured to the Trustee by the security afforded to it by the terms of this
Indenture, the Trustee may require indemnity reasonably satisfactory to the Trustee against such
costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every
such investigation shall be paid by the Company or, if paid by the Trustee, shall be repaid by the
Company upon demand;
(g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, attorneys or other professionals or consultants
and may retain such parties in furtherance of its administration hereunder and the Trustee shall
not be responsible for any misconduct or negligence on the part of any such agent, attorney or
other professional appointed with due care by it hereunder;
(h) in no event shall the Trustee be responsible or liable for special, indirect, punitive or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action;
35
(i) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder;
(j) the Trustee shall not be required to give any bond or surety in respect of the performance
of its powers and duties hereunder; and
(k) the Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.
In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of
Default except (1) any Event of Default occurring pursuant to Section 6.01(a) and 6.01(b) or (2)
any Default or Event of Default of which the Trustee shall have received written notification in
the manner set forth in this Indenture or a Responsible Officer of the Trustee shall have obtained
actual knowledge. Delivery of reports, information and documents to the Trustee under Section 4.03
is for informational purposes only and the information and the Trustee’s receipt of the foregoing
shall not constitute constructive notice of any information contained therein, or determinable from
information contained therein including the Company’s compliance with any of their covenants
thereunder (as to which the Trustee is entitled to rely conclusively on an Officers’ Certificate).
(a) The recitals contained herein and in the Notes shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for the correctness of the same.
(b) The Trustee makes no representations as to the validity or sufficiency of this Indenture
or of the Notes.
(c) The Trustee shall not be accountable for the use or application by the Company of any of
the Notes or of the proceeds of such Notes, or for the use or application of any moneys paid over
by the Trustee in accordance with any provision of this Indenture, or for the use or application of
any moneys received by any Paying Agent other than the Trustee, acting in such capacity.
Section 7.04.
May Hold Notes. The Trustee or any Paying Agent or Note Registrar, in its individual or any
other capacity, may become the owner or pledgee of Notes with the same rights it would have if it
were not Trustee, Paying Agent or Note Registrar.
Section 7.05.
Moneys Held in Trust. Subject to the provisions of Section 3.03, all moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for the purposes for
which they were received, but need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on
any moneys received by it hereunder except such as it may agree to in writing with the Company
to pay thereon.
36
(a) The Company covenants and agrees to pay to the Trustee, and the Trustee shall receive,
such compensation (which shall not be limited by any provision of law in regard to the compensation
of a trustee of an express trust) as the Company and the Trustee may from time to time agree in
writing, for all services rendered by it in the execution of the trusts hereby created and in the
exercise and performance of any of the powers and duties hereunder of the Trustee, and, except as
otherwise expressly provided herein, the Company shall pay or reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the reasonable compensation and
the expenses and disbursements of its counsel and of all Persons not regularly in its employ),
except any such expense, disbursement or advance as may arise from its negligence, willful
misconduct or bad faith and except as the Company and Trustee may from time to time agree in
writing. The Company also covenants to indemnify the Trustee (and its officers, agents, directors
and employees) for, and to hold it harmless against, any loss, liability or expense incurred
without negligence, willful misconduct or bad faith on the part of the Trustee and arising out of
or in connection with the acceptance or administration of this trust, including the reasonable
costs and expenses of defending itself against any claim (whether asserted by the Company, any
Holder or any other Person) of liability in the premises.
(b) The obligations of the Company under this Section 7.06 to compensate and indemnify the
Trustee and to pay or reimburse the Trustee for reasonable expenses, disbursements and advances
shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured
by a lien prior to that of the Notes upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the Holders.
(c) The Company covenants and agrees to indemnify the Trustee for, and hold it harmless from
and against, any loss, liability or expense reasonably incurred by it arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder or the
performance of its duties hereunder, including the reasonable 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 except to the extent any such loss, liability or expense may be
attributable to its negligence, willful misconduct or bad faith.
(d) In addition and without prejudice to the rights provided to the Trustee under any of the
provisions of this Indenture, when the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 6.01(h) or Section 6.01(i), the expenses (including
the reasonable charges and expenses of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable federal and state
bankruptcy, insolvency or other similar law.
(e) The Company’s obligations under this Section 7.06 and the lien referred to in Section
7.06(b) shall survive the resignation or removal of the Trustee, the discharge of the Company’s
obligations under Article 3 of this Indenture and/or the termination of this Indenture.
37
Indenture the Trustee shall deem it
reasonably necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting to take any action hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of negligence, willful misconduct or
bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate and Opinion of Counsel delivered to the Trustee and such certificate or
opinion, in the absence of negligence, willful misconduct or bad faith on the part of the Trustee,
shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it
under the provisions of this Indenture upon the faith thereof.
Section 7.08.
Corporate Trustee Required; Eligibility. There shall at all times be a Trustee with respect
to the Notes issued hereunder which shall at all times be a corporation organized and doing
business under the laws of the United States of America or any state or territory thereof or of the
District of Columbia, or a corporation or other Person that is eligible to act as such under the
Trust Indenture Act and permitted to act as trustee by the Securities and Exchange Commission,
authorized under such laws to exercise corporate trust powers, having a combined capital and
surplus of at least fifty million U.S. dollars ($50,000,000), and subject to supervision or
examination by federal, state, territorial or District of Columbia authority.
If such corporation or other Person 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 7.08, the combined capital and surplus of such corporation or other Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as Trustee. In case at
any time the Trustee shall cease to be eligible in accordance with the provisions of this Section
7.08, the Trustee shall resign immediately in the manner and with the effect specified in Section
7.09.
(a) The Trustee or any successor hereafter appointed may at any time resign with respect to
the Notes by giving written notice thereof to the Company. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee with respect to the Notes by
written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If
no successor trustee shall have been so appointed and have accepted appointment within 30 days
after the mailing of such notice of resignation, the resigning Trustee, at the expense of the
Company, may petition any court of competent jurisdiction for the appointment of a successor
trustee with respect to the Notes, or any Holder who has been a bona fide Holder of Notes for at
least six months may on behalf of himself and all others similarly situated, petition any such
court for the appointment of a successor trustee. Such court may thereupon after such notice, if
any, as it may deem proper and prescribe, appoint a successor trustee.
(b) In case at any time any one of the following shall occur:
38
(i) the Trustee shall fail to comply with the provisions of Section 7.08 after written
request therefor by the Company or by any Holder who has been a bona fide Holder of Notes
for at least six months;
(ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 7.08 and shall fail to resign after written request therefor by the Company or by
any such Holder; or
(iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of
its property shall be appointed or consented to, or any public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case, the Company may remove the Trustee with
respect to the Notes and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall be delivered
to the Trustee so removed and one copy to the successor trustee, or any Holder who has been
a bona fide Holder of Notes for at least six months may, on behalf of that Holder and all
others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee. Such court may thereupon after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.
(c) The Holders of a majority in aggregate principal amount of the Notes at the time
Outstanding may at any time remove the Trustee by so notifying the Trustee and the Company in
writing and may nominate a successor Trustee that shall be deemed appointed as successor trustee
unless within ten days after notice to the Company of such nomination the Company objects thereto,
in which case the Trustee so removed, at the expense of the Company, or any Holder, upon the terms
and conditions and otherwise as in Section 7.09(a) provided, may petition any court of competent
jurisdiction for an appointment of a successor trustee.
(d) Any resignation or removal of the Trustee and appointment of a successor trustee with
respect to the Notes pursuant to any of the provisions of this Section 7.09 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section 7.10.
(a) In case of the appointment hereunder of a successor trustee with respect to all Notes,
every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and
to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on the written 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. The trustee shall have no liability or
responsibility for the action or inaction of any successor Trustee.
39
(b) In case of the appointment hereunder of a successor trustee with respect to some, but not
all of the Notes, the Company, the retiring Trustee and each successor trustee with respect to such
Notes shall execute and deliver an indenture supplemental hereto wherein each successor trustee
shall accept such appointment and which (i) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, each successor trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Notes to which the
appointment of such successor trustee relates, (ii) shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Notes as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee and (iii) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in
such supplemental indenture shall constitute such Trustees co-trustees of the same trust, that each
such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible
for any act or failure to act on the part of any other Trustee hereunder; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein, such retiring Trustee shall with respect to
the Notes to which the appointment of such successor trustee relates have no further responsibility
for the exercise of rights and powers or for the performance of the duties and obligations vested
in the Trustee under this Indenture, and each such successor trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Notes to which the appointment of such successor trustee relates; but,
on request of the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent contemplated by such supplemental
indenture, the property and money held by such retiring Trustee hereunder with respect to the Notes
to which the appointment of such successor trustee relates.
(c) 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
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section 7.10, as the
case may be.
(d) 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 7.
(e) Upon acceptance of appointment by a successor trustee as provided in this Section 7.10,
the Company shall transmit notice of the succession of such trustee hereunder by mail, first-class
postage prepaid, to the Holders, as their names and addresses appear upon the Note Register. If
the Company fails to transmit such notice within ten days after acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be transmitted at the expense
of the Company.
Section 7.11.
Merger, Conversion, Consolidation or Succession to Business. Any corporation into which the
Trustee may be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or
40
substantially all the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified
under the provisions of Section 7.08 and eligible under the provisions of Section 7.08, without the
execution or filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding. In case any Notes shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and deliver the Notes so
authenticated with the same effect as if such successor Trustee had itself authenticated such
Notes.
Section 7.12.
Preferential Collection of Claims Against the Company. The Trustee shall comply with Section
311(a) of the Trust Indenture Act, excluding any creditor relationship described 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 included therein.
ARTICLE 8
Section 8.01.
Evidence of Action by Holders. Whenever in this Indenture it is provided that the Holders of
a majority or specified percentage in aggregate principal amount of the Notes may take any action
(including the making of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such action the Holders of
such majority or specified percentage of such Notes have joined therein may be evidenced by any
instrument or any number of instruments of similar tenor executed by such Holders of such Notes in
person or by agent or proxy appointed in writing.
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, as evidenced by an
Officers’ Certificate, fix in advance a record date for such Notes 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 the record date, but only the Holders of record at the close of business on the
record date shall be deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding 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 Notes shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Holders on the record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after the record date.
Section 8.02.
Proof of Execution by Holders. Subject to the provisions of Section 8.01, proof of the
execution of any instrument by a Holder (such proof will not require
41
notarization) or his agent or
proxy and proof of the holding by any Person of any of the Notes shall be sufficient if made in the
following manner:
(a) The fact and date of the execution by any such Person of any instrument may be proved in
any reasonable manner acceptable to the Trustee.
(b) The ownership of Notes shall be proved by the Note Register or by a certificate of the
Note Registrar thereof.
The Trustee may require such additional proof of any matter referred to in this Section 8.02
as it shall deem necessary.
Section 8.03.
Who May be Deemed Owners. Prior to the due presentment for registration of transfer of any
Note, the Company, the Trustee, any Paying Agent and any Note Registrar may deem and treat the
Person in whose name such Note shall be registered upon the books of the Note Registrar as the
absolute owner of such Note (whether or not such Note shall be overdue and notwithstanding any
notice of ownership or writing thereon made by anyone other than the Note Registrar) for the
purpose of receiving payment of or on account of the principal of (including the Fundamental Change
Repurchase Price, if applicable), and interest on, such Note and for all other purposes; and
neither the Company nor the Trustee nor any paying agent nor any Note Registrar shall be affected
by any notice to the contrary.
Section 8.04.
Certain Notes Owned by Company Disregarded. In determining whether the Holders of the
requisite aggregate principal amount of Notes have concurred in any direction, consent or waiver
under this Indenture, the Notes that are owned by the Company or any other obligor on the Notes or
by any Affiliate of the Company or any other obligor on the Notes shall be disregarded and deemed
not to be Outstanding for the purpose of any such determination, except that for the purpose of
determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver, only Notes that a Responsible Officer of the Trustee actually knows are so owned shall be
so disregarded. The Notes so owned that have been pledged in good faith may be regarded as
Outstanding for the purposes of this Section 8.04, if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Notes and that the
pledgee is not a Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any such other obligor. In case of a dispute as to
such right, any decision by the Trustee taken upon the advice of counsel shall be full protection
to the Trustee.
Section 8.05.
Actions Binding on Future Holders. At any time prior to (but not after) the evidencing to the
Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the majority or
percentage in aggregate principal amount of the Notes specified in this Indenture in connection
with such action, any Holder of a Note that is shown by the evidence to be included in the Notes
the Holders of which have consented to such action may, by filing written notice with the Trustee,
and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such
Note. Except as aforesaid any such action taken by the Holder of any Note shall be conclusive and
binding upon such Holder and upon all future
Holders and owners of such Note, and of any Note issued in exchange therefor, on registration
of transfer thereof or in place thereof, irrespective of whether or not any notation in regard
thereto
42
is made upon such Note. Any action taken by the Holders of the majority or percentage in
aggregate principal amount of the Notes specified in this Indenture in connection with such
action shall be conclusively binding upon the Company, the Trustee and the Holders.
ARTICLE 9
Section 9.01.
Without Consent of Holders. The Company and the Trustee may amend or supplement this
Indenture or the Notes without notice to or consent of any Holder of a Note for any of the
following purposes:
(a) to add to the covenants of the Company for the benefit of the Holders of Notes;
(b) to surrender any right or power herein conferred upon the Company;
(c) to make provision with respect to the conversion rights of the Holders of Notes pursuant
to Section 13.11 hereof;
(d) to provide for the assumption of the Company’s obligations to the Holders of Notes in the
case of a merger, consolidation, conveyance, transfer or lease pursuant to Article 10 hereof;
(e) to increase the Conversion Rate; provided, however, that such increase in the Conversion
Rate shall not adversely affect the interests of the Holders of Notes in any material respect;
(f) to comply with the requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act;
(g) to cure any ambiguity or correct or supplement any provision herein which may be
inconsistent with any other provision herein or which is otherwise defective; provided that such
action pursuant to this clause (g) does not adversely affect the interests of the Holders of Notes
in any material respect; provided further that any amendment made solely to conform the provisions
of this Indenture to the description thereof set forth under the caption “Description of Notes” in
the Offering Memorandum shall be deemed not to adversely affect the interest of the Holders if the
Company delivers an Officers’ Certificate to the Trustee certifying that such amendment is made
solely to so conform the provisions of this Indenture;
(h) adding guarantees with respect to the Notes;
(i) securing the Notes;
(j) to add or modify any other provisions which the Company and the Trustee may deem necessary
or desirable and which shall not adversely affect the interests of the Holders of Notes in any
material respect; or
43
(k) conform as necessary the Indenture and the form or terms of the Notes to the description
thereof set forth under the caption “Description of Notes” in the Offering Memorandum.
After an amendment, supplement or waiver under this Section 9.01 becomes effective, the
Company or, at the written request of the Company, the Trustee shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement 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 amendment, supplement or waiver.
Section 9.02.
With Consent of Holders. Except as provided below in this Section 9.02, this Indenture or the
Notes may be amended or supplemented, and noncompliance by the Company in any particular instance
with any provision of this Indenture or the Notes may be waived, in each case (i) with the written
consent of the Holders of at least a majority in aggregate principal amount of the Notes then
Outstanding or (ii) by the adoption of a resolution, at a meeting of Holders of the Notes then
Outstanding at which a quorum is present, by the Holders of a majority in aggregate principal
amount of the Outstanding Notes represented at such meeting.
Without the written consent or the affirmative vote of each Holder of an affected Note, an
amendment, supplement or waiver to this Indenture or the Notes may not:
(a) change the stated maturity of the principal of, or the time of payment of any installment
of interest on, any Note;
(b) reduce the principal amount of any Note;
(c) reduce the interest rate or interest on any Note;
(d) change the currency of payment of principal of or interest on any Note;
(e) change the ranking of the Notes;
(f) impair the right receive, or institute suit for the enforcement of any payment with
respect to, or the conversion of, any Note;
(g) except as otherwise permitted by Section 13.11 hereof, adversely affect the right to
convert any Note as provided in Article 13 hereof;
(h) reduce the Fundamental Change Repurchase Price or otherwise adversely affect the right of
Holders to require the Company to repurchase the Notes in the event of a Fundamental Change;
(i) modify any of the provisions of this Section 9.02, Section 6.04 or Section 6.12, except to
increase any percentage contained herein or therein or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder of each Note affected
thereby; or
44
(j) reduce the percentage in aggregate principal amount of the Outstanding Notes required for
the adoption of a resolution or the quorum required at any meeting of Holders of Notes at which a
resolution is adopted.
It shall not be necessary for the consent of Holders of Notes under this Section 9.02 to
approve the particular form of any proposed modification, amendment or waiver, but it shall be
sufficient if such act shall approve the substance thereof.
After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company, or, at the written request of the Company, the Trustee, shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement 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 amendment, supplement or waiver.
Section 9.03.
Effect of Supplemental Indentures. Upon the execution of any supplemental indenture pursuant
to the provisions of this Article 9 or Section 10.01 this Indenture shall be and be deemed to be
modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company and the Holders
of Notes affected thereby shall thereafter be determined, exercised and enforced hereunder subject
in all respects to such modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.
Section 9.04.
Notes Affected by Supplemental Indentures. Notes affected by a supplemental indenture,
authenticated and delivered after the execution of such supplemental indenture pursuant to the
provisions of this Article 9 or Section 10.01, may bear a notation in form approved by the Company
as to any matter provided for in such supplemental indenture;
provided such form meets the
requirements of any securities exchange upon which such Notes may be listed. If the Company shall
so determine, new securities so modified as to conform, in the opinion of the Board of Directors,
to any modification of this Indenture contained in any such supplemental indenture may be prepared
by the Company, authenticated by the Trustee and delivered in exchange for the Notes then
Outstanding.
Section 9.05.
Execution of Supplemental Indentures. Upon the request of the Company, accompanied by its
Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing
with the Trustee of evidence of the consent of Holders required to consent thereto as aforesaid (if
such consent is required pursuant to this Article), the Trustee shall join with the Company in the
execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may
in its discretion but shall not be obligated to enter into such supplemental indenture. The
Trustee, subject to the provisions of Section 7.01, shall receive and will be fully protected in
conclusively relying upon an Officers’ Certificate and an Opinion of Counsel stating that any
supplemental indenture executed pursuant to this Article is authorized or permitted by the terms of
this Article 9 and constitutes a valid, binding and legal obligation, enforceable against the
Company (subject to customary qualifications).
45
Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Company shall
transmit by mail, first class postage prepaid, a notice, setting forth in general
terms the substance of such supplemental indenture, to the Holders of all Notes
affected thereby as their names and addresses appear upon the Note Register. 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.
ARTICLE 10
Section 10.01.
Company May Consolidate, Etc., Only on Certain Terms. The
Company may not, without the consent of the Holders, consolidate with, merge into or
convey, transfer or lease all or substantially all of the property and assets of the
Company and its Subsidiaries, taken as a whole, to another Person (other than a
transfer of all or substantially all of the assets of the Company and its
Subsidiaries, taken as a whole, to one or more direct or indirect wholly-owned
Subsidiaries) unless:
(a) either (1) the Company shall be the resulting or surviving corporation or (2)
the Person (if other than the Company) formed by such consolidation or into which the
Company is merged, or the Person which acquires by transfer or lease all or
substantially all of the property and assets of the Company, shall (i) be a
corporation, limited liability company, partnership or trust organized and existing
under the laws of the United States of America or any State thereof or the District of
Columbia, in each case, that is treated as a corporation for U.S. federal income tax
purposes, and the property into which the Notes are convertible shall be the stock or
other equity of an entity that is treated as a corporation for U.S. federal income tax
purposes, and (ii) expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, the
obligations of the Company under the Notes and this Indenture;
(b) at the time of, and after giving effect to, such transaction, no Default or
Event of Default shall have occurred and be continuing; and
(c) if the Company will not be the resulting or surviving corporation, the
Company shall have, at or prior to the effective date of such consolidation, merger,
conveyance, transfer or lease, delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease complies with this Article 10 and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture complies
with this Article 10, and that all conditions precedent herein provided for relating
to such transaction have been complied with.
Section 10.02.
Successor Substituted. Upon any consolidation of the Company with,
or merger of the Company into, any other Person or any conveyance, transfer or lease of
all or substantially all of the properties and assets of the Company and its
Subsidiaries, taken as a whole, in accordance with Section 10.01, the successor Person
formed by such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of,
46
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter, except in the case of a
lease, and except for obligations the predecessor Person may have under a
supplemental indenture, the predecessor Person shall be relieved of all obligations
and covenants under the Indenture and the Notes.
ARTICLE 11
Omitted
ARTICLE 12
Section 12.01.
Additional Interest. (a) If, at any time during the
six-month period beginning on, and including, the date that is six months after the
last date of original issuance of the Notes and ending on the date that is one year
after the last date of the original issuance of the Notes, the Company either (i) fails
to timely file any periodic report that the Company is required to file with the
Commission under Section 13 or 15(d) of the Exchange Act, as applicable (after giving
effect to all applicable grace periods thereunder and other than reports on Form 8-K),
or (ii) the Notes are not otherwise freely tradable pursuant to Rule 144 by Holders of
the Notes other than the Company’s Affiliates, or under the terms of this Indenture or
the Notes, then in either case (an “
Additional Interest Event”), the Company shall pay
additional interest on the Notes (the “
Additional Interest ”). Such Additional Interest
will accrue on the Notes at the rate of 0.25% per annum of the principal amount of
Notes Outstanding for each day during the first 90-day period (or portion thereof) for
which an Additional Interest Event has occurred and is continuing, which rate shall
increase by an additional 0.25% per annum of the principal amount of the Notes, up to a
maximum of 0.50% per annum of the principal amount of the Notes for each day thereafter
for which an Additional Interest Event has occurred and is continuing.
(b) Unless:
(i) the Restrictive Legend on the Notes has been removed; or
(ii) the Notes are freely tradable pursuant to Rule 144 by Holders other
than the Company’s Affiliates (without restrictions pursuant to
U.S. securities
law or the terms of this Indenture or the Notes), on or after the 365th day after
the last date of original issuance of the Notes, an Additional Interest Event
shall be deemed to have occurred and the Company shall pay Additional Interest on
the Notes at an annual rate equal to 0.50% of the aggregate principal amount of
the Notes Outstanding for each day until the Notes are freely tradable as
described above.
(c) Notwithstanding the foregoing, the Company shall not be required to pay
Additional Interest on any date if (i) the Company has filed a shelf registration
statement for the resale of the Notes and any shares of Common Stock issued upon
conversion of the Notes, (ii) such shelf registration statement is effective and usable
by Holders of the Notes identified therein as selling securityholders for the resale of
the Notes and any shares of Common Stock issued
47
upon conversion of the Notes and (iii) such Holders may register the resale of
their Notes under such shelf registration statement on terms customary for the resale
of convertible securities offered in reliance on Rule 144A.
(d) Under no circumstances will the combined rate of Additional Interest or
Special Interest exceed 1.00% per annum.
(e) Additional Interest shall be payable in arrears on each Interest Payment
Date following accrual in the same manner as regular interest on the Notes.
(f) The Company shall provide written notice to the Trustee prior to paying
any Additional Interest.
ARTICLE 13
Section 13.01.
Conversion Privilege and Conversion Rate. (a) Subject to
and upon compliance with the provisions of this Article 13, each Holder of a Note
shall have the right, at such Holder’s option, to convert any or all of such Holder’s
Notes at the Conversion Rate during the periods set forth in Section 13.01(b).
(b) The conversion rights pursuant to this Article 13 shall commence on the Issue
Date of the Notes and expire at the close of business on the Business Day immediately
preceding the Maturity Date, subject to the provisions of this Indenture and, in the
case of conversion of any Global Note, to any Applicable Procedures. If a Note is
submitted or presented for purchase pursuant to Article 16, subject to the last
paragraph of Section 13.03(b), such conversion right shall terminate at the close of
business on the Business Day prior to the Fundamental Change Repurchase Date for such
Note, as the case may be (unless the Company shall fail to make the Fundamental Change
Repurchase Price payment when due in accordance with Article 16, if applicable, in
which case the conversion right shall terminate at the close of business on the
Business Day prior to the date such failure is cured and such Note is repurchased).
(c) A Holder may convert fewer than all of such Holder’s Notes only if (i) the
principal amount of Notes converted is an integral multiple of $1,000 and (ii) the
portion of such Holder’s Notes not so converted is in a minimum principal amount of
$2,000. Provisions of this Indenture that apply to conversion of all of a Note also
apply to conversion of a portion of a Note.
(d) A Holder of Notes is not entitled to any rights of a holder of Common Stock
until such Holder has converted its Notes into Common Stock, and only to the extent
such Notes are deemed to have been converted into Common Stock pursuant to this
Article 13.
(e) The Conversion Rate shall be adjusted in certain instances as provided in Section
13.02 and Section 13.07.
(f) By delivering the number of shares of Common Stock issuable on conversion to
the Trustee, plus a cash payment for any fractional share, the Company shall be deemed
to have
48
satisfied its obligation to pay the principal amount of the Notes so converted
and its obligation to pay accrued and unpaid interest attributable to the period from
the most recent Interest Payment Date through the Conversion Date (which amount will be
deemed paid in full rather than canceled, extinguished or forfeited).
Section 13.02.
Make-Whole Fundamental Change Premium. (a) If the Make-Whole
Fundamental Change Effective Date for any Make -Whole Fundamental Change shall have
occurred, then the Company shall calculate and pay a “
Make- Whole Fundamental Change
Premium” to the Holders of the Notes who convert their Notes in connection with such
Make-Whole Fundamental Change by adding such Make-Whole Fundamental Change Premium to
the Conversion Rate for such Notes. A conversion of Notes shall be deemed for these
purposes to be “in connection with” such Make-Whole Fundamental Change if the relevant
Notice of Conversion delivered pursuant to Section 13.03(a) is received by the
Conversion Agent on, or subsequent to, the relevant Make-Whole Fundamental Change
Effective Date but before the related Fundamental Change Purchase Date. The Fundamental
Make-Whole Change Premium shall be in addition to, and not in substitution for, any
cash, securities or other assets otherwise due to Holders of Notes upon conversion. The
number of additional shares of Common Stock per $1,000 principal amount of Notes
constituting the Make-Whole Fundamental Change Premium shall be determined by reference
to the table set forth in Section 13.02(b), based on the Make-Whole Fundamental Change
Effective Date and the Stock Price. If the holders of Common Stock receive only cash in
the Make-Whole Fundamental Change, the Stock Price shall be the cash amount paid per
share of Common Stock in connection with such Make-Whole Fundamental Change. Otherwise,
the Stock Price shall be equal to the average Last Reported Sale Price of the Common
Stock over the ten Trading Day period ending on the Trading Day immediately preceding,
and excluding, the applicable Make-Whole Fundamental Change Effective Date.
(b) The following table sets forth the number of Additional Shares to be received
per $1,000 principal amount of Notes pursuant to this Section 13.02(b) for each Stock
Price and Make-Whole Fundamental Change Effective Date set forth below:
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Effective Date |
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$27.67 |
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$35.00 |
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$38.05 |
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$45.00 |
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$50.00 |
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$60.00 |
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$80.00 |
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$100.00 |
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$150.00 |
|
$200.00 |
April 5, 2011
|
|
|
9.8564 |
|
|
|
6.6551 |
|
|
|
5.8103 |
|
|
|
4.4641 |
|
|
|
3.8069 |
|
|
|
2.9203 |
|
|
|
1.9626 |
|
|
|
1.4564 |
|
|
|
0.8138 |
|
|
|
0.5042 |
|
April 1, 2012
|
|
|
9.8564 |
|
|
|
6.4199 |
|
|
|
5.5416 |
|
|
|
4.1694 |
|
|
|
3.5171 |
|
|
|
2.6602 |
|
|
|
1.7713 |
|
|
|
1.3136 |
|
|
|
0.7382 |
|
|
|
0.4604 |
|
April 1, 2013
|
|
|
9.8564 |
|
|
|
6.1637 |
|
|
|
5.2387 |
|
|
|
3.8296 |
|
|
|
3.1817 |
|
|
|
2.3617 |
|
|
|
1.5507 |
|
|
|
1.1498 |
|
|
|
0.6504 |
|
|
|
0.4085 |
|
April 1, 2014
|
|
|
9.8564 |
|
|
|
5.8478 |
|
|
|
4.8649 |
|
|
|
3.4133 |
|
|
|
2.7748 |
|
|
|
2.0053 |
|
|
|
1.2984 |
|
|
|
0.9630 |
|
|
|
0.5490 |
|
|
|
0.3471 |
|
April 1, 2015
|
|
|
9.8564 |
|
|
|
5.4240 |
|
|
|
4.3734 |
|
|
|
2.8848 |
|
|
|
2.2696 |
|
|
|
1.5801 |
|
|
|
1.0112 |
|
|
|
0.7525 |
|
|
|
0.4329 |
|
|
|
0.2754 |
|
April 1, 2016
|
|
|
9.8564 |
|
|
|
4.8248 |
|
|
|
3.6946 |
|
|
|
2.1924 |
|
|
|
1.6336 |
|
|
|
1.0793 |
|
|
|
0.6925 |
|
|
|
0.5205 |
|
|
|
0.3024 |
|
|
|
0.1935 |
|
April 1, 2017
|
|
|
9.8564 |
|
|
|
3.8347 |
|
|
|
2.6220 |
|
|
|
1.2206 |
|
|
|
0.8179 |
|
|
|
0.5210 |
|
|
|
0.3539 |
|
|
|
0.2695 |
|
|
|
0.1574 |
|
|
|
0.1012 |
|
April 1, 2018
|
|
|
9.8564 |
|
|
|
2.2876 |
|
|
|
0.0000 |
|
|
|
0.0000 |
|
|
|
0.0000 |
|
|
|
0.0000 |
|
|
|
0.0000 |
|
|
|
0.0000 |
|
|
|
0.0000 |
|
|
|
0.0000 |
|
The exact Stock Prices and Make-Whole Fundamental Change Effective Dates
may not be set forth in the table above, in which case:
(i) if the Stock Price is between two Stock Prices in the table above or the
Make-Whole Fundamental Change Effective Date is between two Make-Whole
Fundamental Change Effective Dates in the table above, the Make-Whole Fundamental
Change Premiums shall be determined by a straight-line interpolation between the
Make-Whole Fundamental Change Premiums set forth for the higher and lower Stock
Prices
49
and the earlier and later Make-Whole Fundamental Change
Effective Dates, as applicable, based on a 365-day year;
(ii) if the Stock Price is greater than $200.00 per share (subject to
adjustment in the same manner as the Stock Prices set forth in the column
headings of the table above pursuant to subsection (c) below), no Make-Whole
Fundamental Change Premium shall be added to the Conversion Rate; and
(iii) if the Stock Price is less than $27.67 per share (subject to
adjustment in the same manner as the Stock Prices set forth in the column
headings of the table above pursuant to subsection (c) below), no Make-Whole
Fundamental Change Premium shall be added to the Conversion Rate.
(c) The Stock Prices set forth in the first row of the table above in Section
13.02(b) shall be adjusted, as of any date on which the Conversion Rate of the Notes is
adjusted other than an adjustment to the Conversion Rate by adding the Make-Whole
Fundamental Change Premium. The adjusted Stock Prices shall equal the Stock Prices
applicable immediately prior to such adjustment multiplied by a fraction, the numerator
of which is the Conversion Rate immediately prior to the adjustment giving rise to the
Stock Price adjustment and the denominator of which is the Conversion Rate as so
adjusted. The Make-Whole Fundamental Change Premiums set forth in the table above shall
be adjusted in the same manner as the Conversion Rate as set forth in Section 13.07
hereof, other than as a result of an adjustment to the Conversion Rate by adding the
Make-Whole Fundamental Change Premium.
(d) The Company, or, at the written request of the Company, the Trustee, shall
mail written notice of the anticipated Make-Whole Fundamental Change Effective Date of
any Make-Whole Fundamental Change to the Holders (with a copy to the Trustee if
applicable) as promptly as practicable following the date the Company publicly
announces such Make-Whole Fundamental Change, but in no event less than 20 days prior
to the anticipated Make-Whole Fundamental Change Effective Date (the “Make-Whole
Fundamental Change Notice”).
(e) Notwithstanding the foregoing, in no event shall the Conversion Rate
exceed 36.1402 per $1,000 principal amount as a result of this Section 13.02,
subject to proportional adjustment in the same manner as the Conversion Rate as set
forth in Section 13.07 hereof.
(f) The Make-Whole Fundamental Change Premium shall be delivered upon the
settlement date for the conversion.
Section 13.03.
Conversion Procedure. (a) To convert a Physical Note, a Holder must
(1) complete and manually sign the Notice of Conversion on the back of the Note, or
facsimile of such Notice of Conversion, and deliver such Notice of Conversion to the
Conversion Agent, which shall become irrevocable upon receipt by the Conversion Agent,
(2) surrender the Note to the Conversion Agent, (3) furnish appropriate endorsements
and transfer documents if required by the Note Registrar or the Conversion Agent, (4)
pay an amount equal to the interest payable on the next Interest Payment Date to which
the Holder is not entitled as required by Section 13.03(c) and (5) pay all transfer or
similar taxes, if required pursuant to Section 13.05. Anything herein to the contrary
notwithstanding, in the case of Global Notes,
50
Notices of Conversion may be delivered and such Notes may be surrendered for
conversion in accordance with clauses (3), (4) and (5) of this Section 13.03(a) and
the Applicable Procedures as in effect from time to time. The date on which the
Holder satisfies all the applicable requirements set forth in this Section 13.03(a)
is the “Conversion Date.”
(b) Each conversion shall be deemed to have been effected as to any Notes
surrendered for conversion on the Conversion Date, the person in whose name the shares
of Common Stock shall be issuable upon conversion shall be deemed to be the holder of
record of such Common Stock as of the close of business on such Conversion Date, and
the Company shall deliver the consideration due in respect of any conversion on the
third Business Day immediately following the relevant Conversion Date; provided,
however, that no surrender of a Note on any Conversion Date when the stock transfer
books of the Company shall be closed shall be effective to constitute the person or
persons entitled to receive the shares of Common Stock upon conversion as the record
holder or holders of such shares of Common Stock on such date, but such surrender shall
be effective to constitute the person or persons entitled to receive such shares of
Common Stock as the record holder or holders thereof for all purposes at the close of
business on the next succeeding day on which such stock transfer books are open. Upon
conversion of a Note, such person shall no longer be the Holder of such Note and (i)
such Note will cease to be Outstanding, (ii) interest will cease to accrue on such Note
and (iii) all other rights of such person in respect of such Note will terminate (other
than the right to receive the consideration due upon conversion of such Note). Except
as set forth in this Indenture, no payment or adjustment will be made for dividends or
distributions declared or made on shares of Common Stock issued upon conversion of a
Note prior to the issuance of such shares.
A Holder that has delivered a Fundamental Change Repurchase Notice pursuant to
Section 16.01 with respect to a Note may not surrender such Note for conversion until
such Holder has withdrawn the Fundamental Change Repurchase Notice in accordance with
Section 16.01.
(c) Holders of Notes surrendered for conversion (in whole or in part) during the
period from the close of business on any Regular Record Date to the open of business on
the next succeeding Interest Payment Date will receive the semiannual interest payable
on the principal amount of such Notes being surrendered for conversion on the
corresponding Interest Payment Date notwithstanding the conversion. Upon surrender of
any such Notes for conversion, such Notes shall also be accompanied by payment in funds
to the Conversion Agent acceptable to the Company of an amount equal to the interest
payable on such corresponding Interest Payment Date (but excluding any overdue interest
on the principal amount of such Note so converted if any overdue interest exists at the
time such Holder surrenders such Note for conversion); provided, however, that no such
payment need be made (i) if the Company has specified a Fundamental Change Repurchase
Date that is after such Regular Record Date and on or prior to the next succeeding
Interest Payment Date, or (ii) if conversion occurs after the last Regular Record Date
prior to the Maturity Date. Except as otherwise provided in this Section 13.03(c), no
payment or adjustment will be made for accrued interest on a converted Note and any
such accrued interest shall be deemed satisfied and extinguished.
(d) Subject to Section 13.03(c), nothing in this Section 13.03 shall affect the
right of a Holder in whose name any Note is registered at the close of business on a
Regular Record Date
51
to receive the interest payable on such Note on the related Interest Payment
Date in accordance with the terms of this Indenture and the Notes. If a Holder
converts more than one Note at the same time, the number of shares of Common Stock
issuable upon the conversion (and the amount of any cash in lieu of fractional shares
pursuant to Section 13.04) shall be based on the aggregate principal amount of all
Notes so converted.
(e) In the case of any Note which is converted in part only, upon such conversion
the Company shall execute and the Trustee shall authenticate and deliver to the Holder
thereof, without service charge, a new Note or Notes of authorized denominations in an
aggregate principal amount equal to, and in exchange for, the unconverted portion of
the principal amount of such Note.
Section 13.04.
Fractional Shares. No fractional shares of Common Stock shall be
issued upon conversion of any Note or Notes. Instead of any fractional share of Common
Stock which would otherwise be issued upon conversion of any Note or Notes (or
specified portions thereof), the Company shall pay a cash adjustment in respect of such
fraction (calculated to the nearest one-100th of a share) in an amount equal to the
same fraction of the Last Reported Sale Price of the Common Stock as of the Business
Day preceding the Conversion Date.
Section 13.05.
Taxes on Conversion. Except as provided in the next sentence, the
Company shall pay any and all documentary, stamp or similar issue or transfer tax due
and duties on the issuance of shares of Common Stock upon conversion of Notes pursuant
hereto. A Holder delivering a Note for conversion shall be liable for and shall be
required to pay any tax or duty which may be payable in respect of any transfer
involved in the issue and delivery of shares of Common Stock in a name other than that
of the Holder of the Note or Notes to be converted, and no such issue or delivery shall
be made unless the Person requesting such issue has paid to the Company the amount of
any such tax or duty, or has established to the satisfaction of the Company that such
tax or duty has been paid.
Section 13.06.
Company to Provide Common Stock. (a) The Company shall, prior to
issuance of any Notes hereunder, and from time to time as may be necessary, reserve,
out of its authorized but unissued Common Stock, a sufficient number of shares of
Common Stock to permit the conversion of all Outstanding Notes into shares of Common
Stock.
(b) All shares of Common Stock delivered upon conversion of the Notes shall be
newly issued shares, shall be duly authorized, validly issued, fully paid and
nonassessable and shall be free from preemptive or similar rights and free of any lien
or adverse claim as the result of any action by the Company.
Section 13.07.
Adjustment of Conversion Rate. The Conversion Rate shall be
adjusted from time to time by the Company if any of the following events occurs, except
that the Company shall not make any adjustments to the Conversion Rate if Holders of
the Notes participate (other than in the case of a share split or share combination),
at the same time and upon the same terms as holders of the Common Stock and solely as a
result of holding the Notes, in any of the transactions described in this Section
13.07, without having to convert their Notes,
52
as if they held a number of shares of Common Stock equal to the Conversion
Rate, multiplied by the principal amount (expressed in thousands) of Notes held by
such Holder.
(a) If the Company issues shares of Common Stock as a dividend or distribution on
shares of Common Stock, or effects a share split or share combination, the Conversion
Rate shall be adjusted based on the following formula:
where,
|
|
|
|
|
CR0
|
|
=
|
|
the applicable Conversion Rate in
effect immediately prior to the open of business on the Ex-Dividend
Date for such dividend or distribution, or immediately prior to the open of business on the effective date of such share split or share combination, as the case may be; |
|
|
|
|
|
CR1
|
|
=
|
|
the applicable Conversion Rate in
effect immediately after the open of business on the Ex-Dividend Date
for such dividend or distribution, or immediately after the open of business on the effective date of such share split or share combination, as the case may be; |
|
|
|
|
|
OS0
|
|
=
|
|
the number of shares of Common
Stock outstanding immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution, or immediately prior to the effective date of such share split or share combination, as the case may be; and |
|
|
|
|
|
OS1
|
|
=
|
|
the number of shares of Common
Stock outstanding immediately after giving effect to such dividend, distribution, share split or share combination, as the case may be. |
Any adjustments made pursuant to this Section 13.07(a) shall become
effective immediately after (x) the open of business on the Ex-Dividend Date for such
dividend or distribution or (y) the open of business on the effective date of such
split or combination, as applicable. If any dividend or distribution described in this
Section 13.07(a) is declared but not so paid or made, effective as of the date the
Board of Directors determines not to pay such dividend or distribution, the new
Conversion Rate shall again be adjusted to the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared.
(b) If the Company distributes to all or substantially all holders of Common Stock
any rights, options or warrants entitling them to purchase, for a period of not more
than 45 days after the Ex-Dividend Date for the distribution, shares of Common Stock at
a price per share less than the average of the Last Reported Sale Prices of the Common
Stock for the ten consecutive Trading Day period ending on the Trading Day immediately
preceding the announcement date for such distribution, the Conversion Rate shall be
adjusted based on the following formula:
|
|
|
|
|
CR1 = CR0 x
|
|
OS0 + X
|
|
|
|
OS0 + Y |
|
|
where,
|
|
|
|
|
CR0
|
|
=
|
|
the Conversion Rate in effect
immediately prior to the open of business on the Ex-Dividend Date for such distribution; |
|
|
|
|
|
CR1
|
|
=
|
|
the new Conversion Rate in effect
immediately after the open of business on the Ex-Dividend Date for such distribution; |
|
|
|
|
|
OS0
|
|
=
|
|
the number of shares of Common Stock outstanding immediately prior to the open of business on the Ex-Dividend Date for such distribution; |
|
|
|
|
|
X
|
|
=
|
|
the total number of shares of Common Stock issuable pursuant to such rights, options or warrants; and |
53
|
|
|
|
|
Y
|
|
=
|
|
the number of shares of Common Stock equal to the aggregate price payable to
exercise such rights, options or warrants divided by the average of the Last
Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on the Trading Day immediately preceding the declaration date for
such distribution. |
For purposes of this Section 13.07(b), in determining whether any rights,
options or warrants entitle the holders to subscribe for or purchase shares of Common
Stock at less than the average of the Last Reported Sale Prices of the Common Stock for
the applicable ten consecutive Trading Day period, there shall be taken into account
any consideration received by the Company for such rights, options or warrants and any
amount payable on exercise thereof, with the value of such consideration if other than
cash, to be determined by the Board of Directors.
Any adjustment made pursuant to this Section 13.07(b) shall be made successively
whenever any such rights, options or warrants are distributed and shall become
effective immediately after the open of business on the Ex-Dividend Date for such
distribution. To the extent that shares of Common Stock are not delivered after the
expiration of such rights, options or warrants, the Conversion Rate shall be decreased
to the Conversion Rate that would then be in effect had the increase with respect to
the issuance of such rights, options or warrants been made on the basis of delivery of
only the number of shares of Common Stock actually delivered. If such rights, options
or warrants are not so distributed, the Conversion Rate shall be decreased to the
Conversion Rate that would then be in effect if the Ex-Dividend Date for such
distribution had not occurred.
(c) If the Company distributes shares of its Capital Stock, evidences of its
indebtedness or other assets or property of the Company or rights, options or warrants
to acquire its Capital Stock or other securities, to all or substantially all holders
of the Common Stock, excluding:
(i) dividends, distributions (including share splits), rights, options or
warrants as to which an adjustment is effected in Section 13.07(a), Section
13.07(b) or Section 13.07(e);
(ii) dividends or distributions covered by Section 13.07(d);
(iii) dividends or distributions that constitute Reference Property
following an event described in Section 13.11; and
(iv) Spin-Offs to which the provisions set forth below in this Section
13.07(c)
shall apply,
then the applicable Conversion Rate shall be adjusted based on the following formula:
|
|
|
|
|
CR1 = CR0 x
|
|
XX0
|
|
|
|
XX0 – FMV |
|
|
where,
|
|
|
|
|
CR0
|
|
=
|
|
the applicable Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend
Date for such distribution; |
54
|
|
|
|
|
CR1
|
|
=
|
|
the applicable Conversion Rate in effect immediately after the open of business on the Ex-Dividend Date
for such distribution; |
|
SP0
|
|
=
|
|
the average of the Last Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such
distribution; and |
|
FMV
|
|
=
|
|
the fair market value (as determined in good faith by the Board of Directors) of the shares of Capital
Stock, evidences of indebtedness, assets, property, rights, options or warrants distributed with
respect to
each outstanding share of Common Stock as of the open of business on the Ex-Dividend Date for such
distribution. |
Any adjustment made under the portion of this Section 13.07(c) above
shall become effective immediately after the open of business on the Ex-Dividend Date
for such distribution. If such distribution is not so paid or made, the Conversion
Rate shall be decreased to the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared.
If “FMV” as set forth above is equal to or greater than
“SP0” as set forth above, in lieu of the foregoing adjustment,
Holders of the Notes shall receive, in respect of each $1,000 principal amount of
Notes, at the same time and upon the same terms as holders of Common Stock, the amount
and kind of the Company’s Capital Stock, evidences of its indebtedness, other assets
or property of the Company or rights, options or warrants to acquire the Company’s
Capital Stock or other securities that such Holder would have received if such Holder
owned a number of shares of Common Stock equal to the applicable Conversion Rate in
effect immediately prior to the open of business on the Ex-Dividend Date for the
distribution.
With respect to an adjustment pursuant to this Section 13.07(c) where there has
been a payment of a dividend or other distribution on the Common Stock of shares of
the Capital Stock of any class or series, or similar equity interest, of or relating
to a Subsidiary or other business unit that are, or, when issued, will be, traded or
quoted on any national or regional securities exchange or other market (a “Spin-Off”),
the applicable Conversion Rate shall instead be adjusted based on the following
formula:
|
|
|
|
|
CR1 = CR0 x
|
|
FMV0 + MP0
|
|
|
|
MP0 |
|
|
where,
|
|
|
|
|
CR0
|
|
=
|
|
the applicable Conversion Rate in effect immediately prior to the end of the Valuation Period; |
|
CR1
|
|
=
|
|
the applicable Conversion Rate in effect immediately after the end of the Valuation Period; |
|
FMV0
|
|
=
|
|
the average of the Last Reported Sale Prices of the Capital Stock of the Company or similar equity
interest distributed to holders of Common Stock applicable to one share of Common Stock (determined
by reference to the definition of Last Reported Sale Price as set forth in Section 1.01 as if references
therein to Common Stock were to such Capital Stock or similar equity interest) over the first ten
consecutive Trading Day period immediately following the Ex-Dividend Date for such Spin-Off (such
period, the “Valuation Period”); and |
|
MP0
|
|
=
|
|
the average of the Last Reported Sale Prices of Common Stock over the Valuation Period. |
Such adjustment shall occur immediately after the tenth Trading Day
immediately following the Ex-Dividend Date of such Spin-Off; provided that, for
purposes of determining the Conversion Rate in respect of any conversion during the ten
Trading Days following the Ex-
55
Dividend Date of any Spin-Off, references within the previous paragraph related
to “Spin-Offs” to ten Trading Days shall be deemed replaced with such lesser number of
Trading Days as have elapsed between the Ex-Dividend Date of such Spin-Off and the
relevant Conversion Date. If any such dividend or distribution described in the
preceding paragraph of this Section 13.07(c) is declared but not paid or made, the new
Conversion Rate shall be readjusted to be the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared.
For purposes of this Section 13.07(c) (and subject in all respect to Section
13.14), rights, options or warrants distributed by the Company to all holders of its
Common Stock entitling them to subscribe for or purchase shares of the Company’s
Capital Stock, including Common Stock (either initially or under certain
circumstances), which rights, options or warrants, until the occurrence of a specified
event or events (“Trigger Event”), (i) are deemed to be transferred with such shares of
the Common Stock, (ii) are not exercisable, and (iii) are also issued in respect of
future issuances of the Common Stock, shall be deemed not to have been distributed for
purposes of this Section 13.07(c) (and no adjustment to the Conversion Rate under this
Section 13.07(c) shall be required) until the occurrence of the earliest Trigger Event,
whereupon such rights, options or warrants shall be deemed to have been distributed and
an appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this Section 13.07(c). If any such right, option or warrant, including any such
existing rights, options or warrants distributed prior to the date of this Indenture,
are subject to events, upon the occurrence of which such rights, options or warrants
become exercisable to purchase different securities, evidences of indebtedness or other
assets, then the date of the occurrence of any and each such event shall be deemed to
be the date of distribution and Ex-Dividend Date with respect to new rights, options or
warrants with such rights (in which case the existing rights, options or warrants shall
be deemed to terminate and expire on such date without exercise by any of the holders
thereof). In addition, in the event of any distribution (or deemed distribution) of
rights, options or warrants, or any Trigger Event or other event of the type described
in the immediately preceding sentence with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion
Rate under this Section 13.07(c) was made, (1) in the case of any such rights, options
or warrants that shall all have been redeemed or purchased without exercise by any
holders thereof, upon such final redemption or purchase (x) the Conversion Rate shall
be readjusted as if such rights, options or warrants had not been issued and (y) the
Conversion Rate shall then again be readjusted to give effect to such distribution,
deemed distribution or Trigger Event, as the case may be, as though it were a cash
distribution, equal to the per share redemption or purchase price received by a holder
or holders of Common Stock with respect to such rights, options or warrants (assuming
such holder had retained such rights, options or warrants), made to all holders of
Common Stock as of the date of such redemption or purchase, and (2) in the case of such
rights, options or warrants that shall have expired or been terminated without exercise
by any holders thereof, the Conversion Rate shall be readjusted as if such rights,
options and warrants had not been issued.
For purposes of Section 13.07(a), Section 13.07(b) and this Section 13.07(c), any
dividend or distribution to which this Section 13.07(c) is applicable that also
includes one or both of:
(A) a dividend or distribution of shares of Common Stock to which Section
13.07(a) is applicable (the “Clause A Distribution”); or
56
(B) a dividend or distribution of rights, options or warrants to which
Section 13.07(b) is applicable (the “Clause B Distribution”),
then (1) such dividend or distribution, other than the Clause A Distribution and the
Clause B Distribution, shall be deemed to be a dividend or distribution to which this
Section 13.07(c) is applicable (the “Clause C Distribution”) and any Conversion Rate
adjustment required by this Section 13.07(c) with respect to such Clause C Distribution
shall then be made, and (2) the Clause A Distribution and Clause B Distribution shall
be deemed to immediately follow the Clause C Distribution and any Conversion Rate
adjustment required by Section 13.07(a) and Section 13.07(b) with respect thereto shall
then be made, except that, if determined by the Company (I) the
“Ex-Dividend Date” of
the Clause A Distribution and the Clause B Distribution shall be deemed to be the
Ex-Dividend Date of the Clause C Distribution and (II) any shares of Common Stock
included in the Clause A Distribution or Clause B Distribution shall be deemed not to
be “outstanding immediately prior to such dividend, distribution, share split or share
combination, as the case may be” within the meaning of Section 13.07(a) or “outstanding
immediately prior to the open of business on the Ex-Dividend Date for such
distribution” within the meaning of Section 13.07(b).
(d) If any cash dividend or distribution is made to all or substantially all
holders of Common Stock, the Conversion Rate shall be adjusted based on the
following formula:
where,
|
|
|
|
|
CR0
|
|
=
|
|
the applicable Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend
Date for such dividend or distribution; |
|
|
|
|
|
CR1
|
|
=
|
|
the applicable Conversion Rate in effect immediately after the open of business on the Ex-Dividend Date
for such dividend or distribution; |
|
|
|
|
|
SP0
|
|
=
|
|
the average of the Last Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such
dividend or distribution; and |
|
|
|
|
|
C
|
|
=
|
|
the amount in cash per share of Common Stock the Company distributes to holders of Common Stock. |
An adjustment to the Conversion Rate made pursuant to this Section
13.07(d) shall become effective immediately after the open of business on the
Ex-Dividend Date for the applicable dividend or distribution. If any dividend or
distribution described in this Section 13.07(d) is declared but not so paid or made,
the new Conversion Rate shall be readjusted to the Conversion Rate that would then be
in effect if such dividend or distribution had not been declared.
If “C” as set forth above is equal to or greater than
“SP0” as set forth above, in lieu of the foregoing adjustment,
each Holder of a Note shall receive, for each $1,000 principal amount of Notes, at the
same time and upon the same terms as holders of shares of Common Stock, the amount of
cash that such Holder would have received if such Holder owned a number of shares of
Common Stock equal to the applicable Conversion Rate in effect immediately prior to
the open of business on the Ex-Dividend Date for such cash dividend or distribution.
57
(e) If the Company or any of its Subsidiaries makes a payment in respect
of a tender or exchange offer for Common Stock, to the extent that the cash and value
of any other consideration included in the payment per share of Common Stock exceeds
the Last Reported Sale Price of the Common Stock on the Trading Day next succeeding
the last date on which tenders or exchanges may be made pursuant to such tender or
exchange offer (the “Expiration Date”), the Conversion Rate shall be increased based
on the following formula:
|
|
|
|
|
CR1 = CR0 x
|
|
AC + (SP1 x OS1)
|
|
|
|
OS0 x SP1 |
|
|
where,
|
|
|
|
|
CR0
|
|
=
|
|
the applicable Conversion Rate in effect immediately prior to the open of business on the Trading Day
next succeeding the Expiration Date; |
|
CR1
|
|
=
|
|
the applicable Conversion Rate in effect immediately after the open of business on the Trading Day next
succeeding the Expiration Date; |
|
AC
|
|
=
|
|
the aggregate value of all cash and any other consideration (as determined by the Board of Directors) paid
or payable for shares purchased in such tender offer or exchange offer; |
|
OS0
|
|
=
|
|
the number of shares of Common Stock outstanding immediately prior to time (the “Expiration Time”)
such tender or exchange offer expires (prior to giving effect to such tender offer or exchange offer); |
|
OS1
|
|
=
|
|
the number of shares of Common Stock outstanding immediately after the Expiration Time (after giving
effect to such tender offer or exchange offer); and |
|
SP1
|
|
=
|
|
the Last Reported Sale Price of the Common Stock on the Trading Day next succeeding the Expiration
Date. |
The adjustment to the Conversion Rate under this Section 13.07(e) shall
become effective immediately following the close of business on the Trading Day next
succeeding the Expiration Date. If the Company or one of its Subsidiaries is obligated
to purchase Common Stock pursuant to any such tender or exchange offer but is
permanently prevented by applicable law from effecting any such purchase or all such
purchases are rescinded, the new Conversion Rate shall be readjusted to be the
Conversion Rate that would be in effect if such tender or exchange offer had not been
made.
Section 13.08.
When No Adjustment is Required. (a) No adjustment in the Conversion
Rate shall be required unless such adjustment would require an increase or decrease of
at least 1% in the Conversion Rate as last adjusted;
provided,
however, that any
adjustments which would be required to be made but for this Section 13.08(a) shall be
carried forward and taken into account in any subsequent adjustment and any carry
forward amount shall be paid to the Holder upon conversion regardless of the 1%
threshold. All calculations under this Article 13 shall be made to the nearest cent or
to the nearest 1/10,000th of a share.
(b) If the application of the foregoing formulas in Section 13.07 would result in
a decrease in the Conversion Rate, no adjustment to the Conversion Rate shall be made
(except on account of share combinations).
(c) No adjustment to the Conversion Rate shall be made unless as specifically
set forth in Section 13.07 and Section 13.02. Without limiting the foregoing, no
adjustment to the Conversion Rate need be made:
58
(i) upon the issuance of any shares of Common Stock pursuant to any present or
future plan providing for the reinvestment of dividends or interest payable on securities of
the Company and the investment of additional optional amounts in shares of Common Stock
under any plan;
(ii) upon the issuance of any shares of Common Stock or options or rights to purchase
shares of Common Stock pursuant to any present or future employee, director or consultant
benefit plan or program or employee stock purchase plan of, or assumed by, the Company or
any of its Subsidiaries;
(iii) upon the issuance of any shares of Common Stock pursuant to any option, warrant,
right, or exercisable, exchangeable or convertible security not described in clause (ii)
above and outstanding as of the Issue Date;
(iv) upon the issuance of Rights under the Rights Plan unless, prior to conversion, the
Rights issued under the Rights Plan have separated from the Common Stock;
(v) for a change in the par value of the Common Stock; or
(vi) for accrued and unpaid interest (including any Special Interest and Additional
Interest, if applicable).
Section 13.09.
Notice of Adjustment. Whenever the Conversion Rate or conversion privilege is required to be
adjusted pursuant to this Indenture, the Company shall promptly mail to Holders a notice of the
adjustment and file with the Trustee an Officers’ Certificate briefly stating the facts requiring
the adjustment, the adjusted Conversion Rate and the manner of computing it. Failure to mail such
notice or any defect therein shall not affect the validity of any such adjustment. Unless and
until the Trustee shall receive an Officers’ Certificate setting forth an adjustment of the
Conversion Rate, the Trustee may assume without inquiry that the Conversion Rate has not been
adjusted and that the last Conversion Rate of which it has knowledge remains in effect.
Section 13.10.
Notice of Certain Transactions. In the event that there is a dissolution or liquidation of
the Company, the Company shall mail to Holders and file with the Trustee a written notice stating
the proposed effective date. The Company shall mail such notice at least 20 days before such
proposed effective date. Failure to mail such notice or any defect therein shall not affect the
validity of any transaction referred to in this Section 13.10.
(a) any recapitalization, reclassification or change of the outstanding shares of Common Stock
(other than changes resulting from a subdivision or combination);
(b) any consolidation, merger, or combination involving the Company;
59
(c) any sale, conveyance or lease to any third party of all or substantially all of the
property and assets of the Company and its Subsidiaries; or
(d) any statutory share exchange,
in each case as a result of which holders of Common Stock shall be entitled to receive stock, other
securities or other property or assets (including cash or any combination thereof) (the “Reference
Property”) with respect to or in exchange for such Common Stock, the Holders of the Notes then
Outstanding shall be entitled thereafter to convert those Notes into the kind and amount of shares
of stock, other securities or other property or assets (including cash or any combination thereof)
which they would have owned or been entitled to receive upon such transaction had such notes been
converted into Common Stock immediately prior to such transaction. In the event holders of Common
Stock have the opportunity to elect the form of consideration to be received in such transaction,
the Reference Property shall be deemed to be the weighted average of the types and amounts of
consideration received by the holders of Common Stock that affirmatively make such election. The
Company shall notify the Holders of the weighted average as soon as practicable after such
determination is made. The Company may not become a party to any such transaction unless its terms
are consistent with the preceding. None of the foregoing provisions shall affect the right of a
Holder of Notes to convert its Notes into shares of Common Stock prior to the effective date of
such transaction.
The above provisions of this Section 13.11 shall similarly apply to successive
recapitalizations, reclassifications, mergers, consolidations, statutory share exchanges,
combinations, sales and conveyances.
If this Section 13.11 applies to any event or occurrence, Section 13.07 hereof shall not
apply.
Section 13.12.
Trustee’s Disclaimer. (a) The Trustee shall have no duty to determine, or liability in
connection therewith, when an adjustment under this Article 13 should be made, how it should be
made or what such adjustment should be, but may accept as conclusive evidence of that fact or the
correctness of any such adjustment, and shall be protected in conclusively relying upon, an
Officers’ Certificate, including the Officers’ Certificate with respect thereto which the Company
is obligated to file with the Trustee pursuant to Section 13.09. Unless and until the Trustee
receives such Officers’ Certificate delivered pursuant to Section 13.09, the Trustee may assume
without inquiry that no such adjustment has been made and the last Conversion Rate of which the
Trustee has knowledge remains in effect. The Trustee makes no representation as to the validity or
value of any securities or assets issued upon conversion of Notes, and the Trustee shall not be
responsible for the Company’s failure to comply with any provisions of this Article 13.
(b) The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to Section 13.11, but may
accept as conclusive evidence of the correctness thereof, and shall be fully protected in
conclusively relying upon, the Officers’ Certificate and Opinion of Counsel, with respect thereto
which the Company are obligated to file with the Trustee pursuant to Section 13.11 and Section
10.01, respectively.
60
Section 13.13.
Voluntary Increase; NYSE Compliance. (a) Subject to Section 9.01(e), the Company from time to
time may increase the Conversion Rate, to the extent permitted by law and subject to any applicable
stockholder approval requirements pursuant to the listing standards of The New York Stock Exchange
or such other United States securities exchange on which the Common Stock is traded, by any amount
for any period of at least 20 days, if the Board of Directors determines that such increase shall
be in the Company’s best interests. The Company may (but is not required to) make such increase in
the Conversion Rate (in addition to others provided in this Indenture) as the Board of Directors
deems advisable to avoid or diminish any income tax to holders of Common Stock resulting from a
dividend or distribution of stock, or rights to acquire stock, or similar event;
provided,
however,
that in no event may the Company increase the Conversion Rate such that it causes the Conversion
Price to be less than the par value of a share of Common Stock. The Company shall provide at least
15 days’ written notice to Holders and the Trustee of any increase under this Section 13.13.
(b) The Company may not take any voluntary actions that would result in an adjustment to the
Conversion Rate pursuant to Section 13.07 without complying, if applicable, with the stockholder
approval rules of The New York Stock Exchange and any similar rule of any United States securities
exchange on which the Common Stock is listed at the relevant time. In accordance with such listing
standards, this restriction shall apply at any time when the Notes are Outstanding, regardless of
whether the Company then has a class of securities listed on The New York Stock Exchange.
Section 13.14.
Rights Plan. To the extent that the Company has a Rights Plan in effect upon conversion of
the Notes into Common Stock, the Holders shall receive upon conversion of the Notes, the Rights
under the Rights Plan, unless prior to conversion, the Rights have separated from the Common Stock,
in which case, and only in such case, the Conversion Rate shall be adjusted at the time of
separation as if the Company distributed to all or substantially all holders of Common Stock shares
of the Company’s Capital Stock, evidences of indebtedness or other assets or property of ours or
rights, options or warrants to acquire the Company’s Capital Stock or other securities as described
in Section 13.07(c) above, subject to readjustment in the event of the expiration, termination or
redemption of such Rights.
ARTICLE 14
Omitted
ARTICLE 15
Omitted
ARTICLE 16
61
repurchase all or any of such Holder’s Notes at the Fundamental Change Repurchase Price, on
the date specified by the Company that is not less than 20 days and not more than 35 days after the
date of the Fundamental Change Company Notice pursuant to Section 16.01(b) (the “Fundamental Change
Repurchase Date”). If the Fundamental Change Repurchase Date is after a Regular Record Date and on
or prior to the corresponding Interest Payment Date, the Company shall pay accrued and unpaid
interest to the Holder of a Note of record at the close of business on such Regular Record Date and
the Fundamental Change Repurchase Price shall be 100% of the principal amount of the Notes to be
repurchased. A Holder may require the Company to repurchase fewer than all of such Holder’s Notes
only if (i) the principal amount of Notes to be repurchased is an integral multiple of $1,000 and
(ii) the portion of such Holder’s Notes not to be repurchased is in a minimum principal amount of
$2,000.
(b) On or before the 15th day after the Fundamental Change Effective Date, the Company, or, at
the request of the Company, the Trustee, shall mail a written notice by first-class mail of the
occurrence of the Fundamental Change, and of the repurchase right arising therefrom, to the
Trustee, Paying Agent and to each Holder at the address shown in the Note Register of the Note
Registrar (and to beneficial owners as required by applicable law) (the “Fundamental Change Company
Notice”). Simultaneously with providing such Fundamental Change Company Notice, the Company shall
publish a notice containing the information that is required in the Fundamental Change Company
Notice in a newspaper of general circulation in The City of New York or publish information on a
website of the Company or through such other public medium the Company may use at that time. The
Fundamental Change Company Notice shall set forth the Holder’s right to require the Company to
purchase the Notes and specify:
(i) the events causing such Fundamental Change;
(ii) the date of such Fundamental Change;
(iii) the last date by which the Fundamental Repurchase Notice must be delivered to
elect the repurchase option pursuant to this Section 16.01;
(iv) the Fundamental Change Repurchase Price;
(v) the Fundamental Change Repurchase Date;
(vi) the name and address of each Paying Agent and Conversion Agent, if applicable;
(vii) that the Notes with respect to which a Fundamental Change Repurchase Notice has
been delivered by a Holder may be converted only if the Holder withdraws the Fundamental
Change Repurchase Notice in accordance with the terms of this Indenture; and
(viii) the procedures that the Holder must follow to require the Company to repurchase
its Notes under this Section 16.01.
At the Company’s written request, the Trustee shall give such Fundamental Change Company
Notice in the Company’s name and at the Company’s expense; provided that, unless
62
otherwise agreed by the Trustee, the Company makes such request at least five Business Days
prior to the date by which such Fundamental Change Company Notice must be given to the Holders in
accordance with this Section 16.01; provided, further, that the text of such Fundamental Change
Company Notice shall be prepared by the Company. If any of the Notes is in the form of a Global
Note, then the Company shall modify such notice to the extent necessary to accord with the
Applicable Procedures relating to the purchase of Global Notes.
No failure of the Company to give the foregoing notices or defect therein shall limit any
Holder’s right to exercise its right to cause the Company to repurchase such Holder’s Notes
pursuant to this Section 16.01.
Each Fundamental Change Repurchase Notice shall state:
(A) in the case of Physical Notes, the certificate numbers of the Notes to be
delivered for repurchase;
(B) the portion of the principal amount of the Notes to be repurchased, which
must be $1,000 or an integral multiple thereof (provided that any portion of a
Holder’s Note not to be repurchased is in the minimum principal amount of $2,000);
and
(C) that the Notes are to be repurchased by the Company pursuant to the
applicable provisions of the Notes and this Indenture
provided, however, that if the Notes are Global Notes, the Repurchase Notice must comply with
appropriate Depositary procedures..
Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Fundamental Change Repurchase Notice contemplated by this Section 16.01 shall have the right to
withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the
close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date
by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 16.02.
The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental
Change Repurchase Notice or written notice of withdrawal thereof.
63
(a) A Fundamental Change Repurchase Notice may be withdrawn (in whole or in part) by means of
a written notice of withdrawal delivered to the Corporate Trust Office of the Paying Agent in
accordance with this Section 16.02 at any time prior to the close of business on the Business Day
immediately preceding the Fundamental Change Repurchase Date specifying:
(i) the principal amount of the Notes with respect to which such notice of withdrawal
is being submitted;
(ii) if Physical Notes have been issued, the certificate number of the Note in respect
of which such notice of withdrawal is being submitted; and
(iii) the principal amount, if any, of such Note that remains subject to the original
Fundamental Change Repurchase Notice, which portion must be in principal amounts of $1,000
or an integral multiple of $1,000 (provided that any portion of a Holder’s Note not to be
repurchased is in the minimum principal amount of $2,000);
provided, however, that if the Notes are Global Notes, the notice must comply with appropriate
procedures of the Depositary.
Section 16.03.
Deposit of Fundamental Change Repurchase Price. (a) The Company shall deposit with the
Trustee (or other Paying Agent appointed by the Company, or if the Company is acting as its own
Paying Agent, set aside, segregate and hold in trust as provided in Section 4.06(b)) on or prior to
11:00 a.m., New York City time, on the Fundamental Change Repurchase Date, as the case may be, an
amount of money sufficient to repurchase all of the Notes to be repurchased at the appropriate
Fundamental Change Repurchase Price. Subject to receipt of funds and/or Notes by the Trustee (or
other Paying Agent appointed by the Company), payment for Notes surrendered for repurchase will be
made on the later of (i) the Fundamental Change Repurchase Date with respect to such Note (
provided
the Holder has satisfied the conditions in Section 16.01) and (ii) the time of book-entry transfer
or the delivery of such Note to the Trustee (or other Paying Agent appointed by the Company) by the
Holder thereof in the manner required by Section 16.01, by mailing checks for the amount payable to
the Holders of such Notes entitled thereto as they shall appear in the Note Register;
provided,
however, that payments to the Depositary shall be made by wire transfer of immediately available
funds to the account of the Depositary or its nominee.
(b) If by 11:00 a.m. New York City time, on the Fundamental Change Repurchase Date the Trustee
(or other Paying Agent appointed by the Company) holds money sufficient to make payment on all the
Notes or portions thereof that are to be repurchased on such Fundamental Change Repurchase Date
then (i) such Notes will cease to be Outstanding, (ii) interest will cease to accrue on such Notes
(whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to
the Trustee or Paying Agent) and (iii) all other rights of the Holders of such Notes will terminate
(other than the right to receive the Fundamental Change Repurchase Price).
Section 16.04.
Repayment to the Company. To the extent that the aggregate amount of cash deposited by the
Company pursuant to Section 16.03 exceeds the aggregate Fundamental Change Repurchase Price of the
Notes or portions thereof that the
64
Company is obligated to repurchase pursuant to this Article 16, then promptly after the
relevant Fundamental Change Repurchase Date the Paying Agent shall return any such excess cash to
the Company.
Section 16.05.
Notes Repurchased In Part. Upon surrender of any Note that is to be repurchased only in part
in accordance with Section 16.01, and promptly after the Fundamental Change Repurchase Date, the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Note,
without service charge, a new Note or Notes, of such authorized denomination or denominations as
may be requested by such Holder (which must be equal to $2,000 principal amount or greater integral
multiples of $1,000), in aggregate principal amount equal to, and in exchange for, the portion of
the principal amount of the Note so surrendered that is not repurchased.
(a) comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer rules
under the Exchange Act;
(b) file a Schedule TO or any successor or similar schedule; and
(c) otherwise comply with all federal and state securities laws in connection with any offer
by the Company to repurchase the Notes;
in each case, so as to permit the rights and obligations under this Article 16 to be exercised in
the time and in the manner specified in this Article 16.
ARTICLE 17
Section 17.01.
Purposes For Which Meetings May Be Called. A meeting of Holders of Notes may be called at any
time and from time to time pursuant to this Article 17 to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by this Indenture to be
made, given or taken by Holders of Notes.
Notwithstanding anything contained in this Article 17, the Trustee may, during the pendency of
a Default or an Event of Default, call a meeting of Holders of Notes in accordance with its
standard practices.
Section 17.02.
Call Notice and Place of Meetings. (a) The Trustee may at any time call a meeting of Holders
of Notes for any purpose specified in Section 17.01 hereof, to be held at such time and at such
place in The City of New York. Notice of every meeting of Holders of Notes, setting forth the time
and the place of such meeting, in general terms the action proposed to be taken at such meeting and
the percentage of the principal amount of the then-Outstanding Notes which shall constitute a
quorum at such meeting, shall be given, in the
65
manner provided in the Indenture, not less than 21 nor more than 180 days prior to the date
fixed for the meeting.
(b) In case at any time the Company, pursuant to a resolution of the Board of Directors, or
the Holders of at least 10% in principal amount of the Notes then Outstanding shall have requested
the Trustee in writing to call a meeting of the Holders of Notes for any purpose specified in
Section 17.01 hereof, by written request setting forth in reasonable detail the action proposed to
be taken at the meeting, and the Trustee shall not have made the first publication of the notice of
such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause
the meeting to be held as provided herein, then the Company or the Holders of Notes in the amount
specified, as the case may be, may determine the time and the place in The City of New York for
such meeting and may call such meeting for such purposes by giving notice thereof as provided in
Section 17.02(a).
Section 17.03.
Persons Entitled to Vote at Meetings. To be entitled to vote at any meeting of Holders of
Notes, a Person shall be (a) a Holder of one or more Outstanding Notes or (b) a Person appointed by
an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Notes by such
Holder or Holders. The only Persons who shall be entitled to be present or to speak at any meeting
of Holders shall be the Persons entitled to vote at such meeting and their counsel, any
representatives of the Trustee and its counsel and any representatives of the Company and its
counsel.
Section 17.04.
Quorum; Action. The Persons entitled to vote a majority in principal amount of the
then-Outstanding Notes shall constitute a quorum. In the absence of a quorum within 30 minutes of
the time appointed for any such meeting, the meeting shall, if convened at the request of Holders
of Notes, be dissolved. In any other case, the meeting may be adjourned for a period of not less
than ten days as determined by the chairman of the meeting prior to the adjournment of such
meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be
further adjourned for a period of not less than ten days as determined by the chairman of the
meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 17.02(a) hereof, except that such notice
need be given only once and not less than five days prior to the date on which the meeting is
scheduled to be reconvened.
At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid, any resolution and all matters (except as limited by the third paragraph of Section 9.02
hereof) shall be effectively passed and decided if passed or decided by the Persons entitled to
vote not less than a majority in principal amount of Notes then Outstanding represented and voting
at such meeting.
Any resolution passed or decisions taken at any meeting of Holders of Notes duly held in
accordance with this Section 17.04 shall be binding on all the Holders of Notes, whether or not
present or represented at the meeting.
66
Notes in regard to proof of the holding of Notes and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall deem appropriate.
(b) The Trustee shall, by an instrument in writing, appoint a temporary chairman (which may be
the Trustee) of the meeting, unless the meeting shall have been called by the Company or by Holders
of Notes as provided in Section 17.02 hereof, in which case the Company or the Holders of Notes
calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Notes represented at the
meeting.
(c) At any meeting, each Holder of a Note or proxy shall be entitled to one vote for each
$1,000 principal amount of Notes held or represented by him; provided, however, that no vote shall
be cast or counted at any meeting in respect of any Note challenged as not Outstanding and ruled by
the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right
to vote, except as a Holder of a Note or proxy.
(d) Any meeting of Holders of Notes duly called pursuant to Section 17.02 hereof at which a
quorum is present may be adjourned from time to time by Persons entitled to vote a majority in
principal amount of the then-Outstanding Notes represented at the meeting, and the meeting may be
held as so adjourned without further notice.
Section 17.06.
Counting Votes and Recording Action of Meetings. The vote upon any resolution submitted to
any meeting of Holders of Notes shall be by written ballots on which shall be subscribed the
signatures of the Holders of Notes or of their representatives by proxy and the principal amounts
and serial numbers of the Outstanding Notes held or represented by them. The permanent chairman of
the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for
or against any resolution and who shall make and file with the secretary of the meeting their
verified written reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Notes shall be prepared by the
secretary of the meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons
having knowledge of the facts setting forth a copy of the notice of the meeting and showing that
said notice was given as provided in Section 17.02 hereof and, if applicable, Section 17.04 hereof.
Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary
of the meeting and one such copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the matters therein stated.
67
ARTICLE 18
Section 18.01.
Provisions Binding on Company’s Successors. All the covenants, stipulations, promises and
agreements of the Company contained in this Indenture shall bind its successors and assigns whether
so expressed or not.
Section 18.02.
Official Acts by Successor. Any act or proceeding by any provision of this Indenture
authorized or required to be done or performed by any board, committee or officer of the Company
shall and may be done and performed with like force and effect by the like board, committee or
officer of any corporation or other entity that shall at the time be the lawful sole successor of
the Company.
Section 18.03.
Notices. Except as otherwise expressly provided herein, any notice, request or demand that by
any provision of this Indenture is required or permitted to be given, made or served by the Trustee
or by the Holders or by any other Person pursuant to this Indenture to or on the Company may be
given or served by being deposited in first-class mail, postage prepaid, addressed (until another
address is filed in writing by the Company with the Trustee), as follows: The Greenbrier Companies,
Inc., Xxx Xxxxxxxxxxxx Xxxxx, Xxxxx 000, Xxxx Xxxxxx, Xxxxxx 00000. Any notice, election, request
or demand by the Company or any Holder or by any other Person pursuant to this Indenture to or upon
the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or
made in writing at the Corporate Trust Office of the Trustee. Except as otherwise expressly
provided herein, any notice or communication to a Holder of a Note may be given or served by being
deposited in first-class mail, postage prepaid, or by electronic means, addressed at the Holder’s
address as it appears in the Note Register.
Section 18.04.
Governing Law. THIS INDENTURE AND EACH NOTE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING
UNDER OR RELATED TO THIS INDENTURE OR ANY NOTE, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PROVISIONS THEREOF TO THE EXTENT
THAT SUCH PROVISIONS WOULD RESULT IN THE SELECTION OF THE LAW OF A DIFFERENT JURISDICTION AS THE
GOVERNING LAW OF THIS INDENTURE AND THE NOTES.
Upon any application or demand by the Company to the Trustee to take any action under any of
the provisions of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
and an Opinion of Counsel stating that all conditions precedent (including any covenants compliance
with which constitutes a condition precedent) which relate to such action, if any, provided for in
this Indenture have been complied with; provided that no such Opinion of Counsel shall be required
in connection with the issuance of Notes on the Issue Date.
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Each Officers’ Certificate and Opinion of Counsel provided for by or on behalf of the Company
in this Indenture and delivered to the Trustee with respect to compliance with a condition or
covenant provided for in this Indenture (other than the Officers’ Certificates provided for in
Section 4.04) shall include (a) a statement that the Person making such certification or opinion
has read such covenant or condition; (b) a brief statement as to the nature and scope of the
examination or investigation upon which the statement contained in such certificate or opinion is
based; (c) a statement that, in the judgment of such person, he or she has made such examination or
investigation as is necessary to enable him or her to express an informed judgment as to whether or
not such covenant or condition has been complied with; and (d) a statement as to whether or not, in
the judgment of such Person, such covenant or condition has been complied with.
Notwithstanding anything to the contrary in this Section 18.05, if any provision in this
Indenture specifically provides that the Trustee shall or may receive an Opinion of Counsel in
connection with any action to be taken by the Trustee or the Company hereunder, the Trustee shall
be entitled to, or entitled to request, such Opinion of Counsel.
Section 18.06.
Legal Holidays. In any case where any Interest Payment Date, Fundamental Change Repurchase
Date, Conversion Date or Maturity Date is not a Business Day, then any action to be taken on such
date need not be taken on such date, but may be taken on the next succeeding Business Day with the
same force and effect as if taken on such date, and no interest shall accrue for the period from
and after such date.
Section 18.07.
No Security Interest Created. Nothing in this Indenture or in the Notes, expressed or
implied, shall be construed to constitute a security interest under the Uniform Commercial Code or
similar legislation, as now or hereafter enacted and in effect, in any jurisdiction.
Section 18.08.
Benefits of Indenture. Nothing in this Indenture or in the Notes, expressed or implied, shall
give to any Person, other than the parties hereto, any Paying Agent, any Conversion Agent, any
authenticating agent, any Note Registrar and their successors hereunder and the Holders of the
Notes, any benefit or any legal or equitable right, remedy or claim under this Indenture.
Section 18.09.
Table of Contents, Headings, Etc. The table of contents and the titles and headings of the
articles and sections of this Indenture have been inserted for convenience of reference only, are
not to be considered a part hereof, and shall in no way modify or restrict any of the terms or
provisions hereof.
Section 18.10.
Execution in Counterparts. This Indenture may be executed in any number of counterparts, each
of which shall be an original, but such counterparts shall together constitute but one and the same
instrument. The exchange of copies of this Indenture and of signature pages by facsimile or PDF
transmission shall constitute effective execution and delivery of this Indenture as to the parties
hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the
parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for
all purposes.
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Section 18.11.
Severability. In the event any provision of this Indenture or in the Notes shall be invalid,
illegal or unenforceable, then (to the extent permitted by law) the validity, legality or
enforceability of the remaining provisions shall not in any way be affected or impaired.
Section 18.12.
Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED
HEREBY.
Section 18.13.
Consent to Jurisdiction. (a) The Company hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State court or federal
court of the United States sitting in the State and City of New York, County and Borough of
Manhattan, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Indenture or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding may be heard and determined in such state court sitting in the
State and City of New York, County and Borough of Manhattan or, to the extent permitted by law, in
such federal court sitting in the State and City of New York, County and Borough of Manhattan.
Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.
(b) The Company hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Indenture or the Notes
in any New York State or federal court. Each of the parties hereto hereby irrevocably waives, to
the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.
Section 18.14.
Force Majeure. In no event shall the Trustee be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or
indirectly, forces beyond its control, including, without limitation, strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts that are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.
Section 18.15.
Calculations. Except as explicitly stated herein, the Company shall be responsible for making
all calculations required pursuant to this Indenture and the Notes, including, without limitation,
calculations with respect to determinations of the Conversion Price and Conversion Rate applicable
to the Notes. The Company shall make all such calculations in good faith and, absent manifest
error, the Company’s calculations shall be binding on the Trustee and the Holders. The Company
shall provide a written schedule of such
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calculations to the Trustee, and the Trustee shall be entitled to conclusively rely upon the
accuracy of the Company’s calculations without responsibility for independent verification thereof.
The Trustee shall forward a copy of such calculations to any Holder upon such Holder’s written
request.
Section 18.16.
U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the
U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the
funding of terrorism and money laundering, is required to obtain, verify, and record information
that identifies each person or legal entity that establishes a relationship or opens an account
with the Trustee. The parties to this Indenture agree that they will provide the Trustee with such
information as it may request in order for the Trustee to satisfy the requirements of the U.S.A.
Patriot Act.
Section 18.17.
No Personal Liability of Stockholders, Employees, Officers or Directors. None of the
Company’s direct or indirect stockholders, employees, officers or directors, as such, past, present
or future, shall have any personal liability for the obligations of the Company under the Indenture
or the Notes solely by reason of his or its status as such stockholder, employee, officer or
director.
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THE GREENBRIER COMPANIES, INC., as Issuer
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By: |
/s/ Xxxx X. Xxxxxxxxxx
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Name: |
Xxxx X. Xxxxxxxxxx |
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Title: |
Executive Vice President and Chief
Financial Officer |
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U.S. BANK NATIONAL ASSOCIATION, as Trustee
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By: |
/s/ Xxxxx X. XxXxxxxx
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Name: |
Xxxxx X. XxXxxxxx |
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Title: |
Vice President |
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EXHIBIT A
[FORM OF FACE OF NOTE]
[INCLUDE IF A GLOBAL NOTE]
[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]
[INCLUDE IF A RESTRICTED SECURITY]
THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER XXXXXXX 0 XX XXX XXXXXX XXXXXX SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.
THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH
SECURITY, MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a) INSIDE THE UNITED STATES TO
A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES
ACT, (b) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (d) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE
COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF
THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.
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THE GREENBRIER COMPANIES, INC.
3.50% Convertible Senior Note due 2018
No.
CUSIP No. 393657 AG6
ISIN No. US393657AG64
The Greenbrier Companies, Inc., a corporation duly organized and validly existing under the
laws of the state of Oregon (herein called the “Company,” which term includes any successor
corporation or other entity under the Indenture referred to on the reverse hereof), for value
received hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of $[
] (which amount may from time to time be increased or decreased to such other principal
amounts as permitted by the Indenture by adjustments made on the records of the Trustee or the
Custodian of the Depositary as set forth in Schedule A hereto, in accordance with the rules and
procedures of the Depositary) on April 1, 2018, and interest thereon as set forth below.
This Note shall bear interest at the rate of 3.50% per year from April 5, 2011, or from the most
recent date to which interest had been paid or provided for to, but excluding, the next scheduled
Interest Payment Date until April 1, 2018 or the Fundamental Change Repurchase Date, as applicable.
Interest is payable semiannually in arrears on each April 1 and October1 (or if any such day is
not a Business Day, the immediately following Business Day), commencing October 1, 2011, to Holders
of record at the close of business on the preceding March 15 and September 15 (whether or not such
day is a Business Day), respectively. Interest shall include Additional Interest and Special
Interest, in each case if applicable in accordance with the terms of the Indenture.
Interest not paid when due and any interest on principal or interest not paid when due will be
paid to Holders on a special record date, which will be the 15th day preceding the day fixed by the
Company for the payment of such interest, whether or not such day is a Business Day. At least 15
days before a special record date, the Company will send to each Holder and to the Trustee a notice
that sets forth the special record date, the payment date and the amount of interest to be paid.
Payment of the principal of, and accrued and unpaid interest on, this Note shall be made at
the office or agency of the Company maintained for that purpose in such lawful money of the United
States of America as at the time of payment shall be legal tender for the payment of public and
private debts; provided that interest on any Physical Notes shall be paid (i) to the Person
entitled thereto having an aggregate principal amount of $2,000,000 or less, by check mailed to
such Person at the address set forth in the Note Register and (ii) to the Person entitled thereto
having an aggregate principal amount of more than $2,000,000, either by check mailed to such Person
or, upon application by such Person to the Note Registrar not later than the relevant Regular
Record Date, by wire transfer in immediately available funds to such Person’s account within the
United States, which application and wire transfer instructions shall remain in effect until such
Person notifies, in writing, the Note Registrar to the contrary.
Reference is made to the further provisions of this Note set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Note the right to convert this
Note into shares of Common Stock (together with cash in lieu of fractional shares) on the terms and
subject to the limitations set forth in the Indenture. Such further provisions shall for all
purposes have the same effect as though fully set forth at this place.
THIS NOTE AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS NOTE SHALL BE
GOVERNED BY AND BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICTS
OF LAWS PROVISIONS THEREOF TO THE EXTENT THAT SUCH PROVISIONS WOULD RESULT IN THE SELECTION OF THE
LAW OF A DIFFERENT JURISDICTION AS THE GOVERNING LAW OF THIS NOTE.
This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.
[Remainder of page intentionally left blank]
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THE GREENBRIER COMPANIES, INC.
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By: |
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Name: |
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Dated:
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TRUSTEE’S CERTIFICATE OF AUTHENTICATION
U.S. BANK NATIONAL ASSOCIATION
as Trustee, certifies that this is one of the Notes
described in the within-named Indenture.
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Authorized Signatory |
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[FORM OF REVERSE OF NOTE]
THE GREENBRIER COMPANIES, INC.
3.50% Convertible Senior Note due 2018
This Note is one of a duly authorized issue of the Notes of the Company, designated as its
3.50% Convertible Senior Notes due 2018 (herein called the “Notes”), initially limited to the
aggregate principal amount of $230,000,000, all issued or to be issued under and pursuant to an
Indenture dated as of April 5, 2011 (herein called the “Indenture”), between the Company and U.S.
Bank National Association (herein called the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders
of the Notes. Additional Notes may be issued in an unlimited aggregate principal amount, subject
to certain conditions specified in the Indenture.
In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of and accrued and unpaid interest, if any, on all Notes may be declared,
by either the Trustee or Holders of not less than 25% in aggregate principal amount of Notes then
outstanding, and upon said declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions and certain exceptions set forth in the Indenture.
Subject to the terms and conditions of the Indenture, the Company will make all payments and
deliveries in respect of the Fundamental Change Repurchase Price and the principal amount on the
Maturity Date, as the case may be, to the Holder who surrenders a Note to a Paying Agent to collect
such payments in respect of the Note. The Company will pay cash amounts in money of the United
States that at the time of payment is legal tender for payment of public and private debts.
The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the Holders of the Notes, and in other circumstances, with
the consent of the Holders of not less than a majority in aggregate principal amount of the Notes
at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
modifying the terms of the Indenture and the Notes as described therein. It is also provided in
the Indenture that, subject to certain exceptions, the Holders of a majority in aggregate principal
amount of the Notes at the time outstanding may on behalf of the Holders of all of the Notes waive
any past Default or Event of Default under the Indenture and its consequences.
No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of (including the Fundamental Change Repurchase Price, if applicable), and accrued and
unpaid interest on, this Note at the place, at the respective times, at the rate and in the lawful
money herein prescribed or to satisfy its obligation to convert the Notes.
The Notes are issuable in registered form without coupons in denominations of $2,000 principal
amount and greater integral multiples of $1,000. At the office or agency of the Company referred
to on the face hereof, and in the manner and subject to the limitations
provided in the Indenture, Notes may be exchanged for a like aggregate principal amount of
Notes of other authorized denominations, without payment of any service charge but, if required by
the Company or Trustee, with payment of a sum sufficient to cover any tax, assessments or other
governmental charges that may be imposed in connection therewith as a result of the name of the
Holders of the new Notes issued upon such exchange of Notes being different from the name of the
Holder of the old Notes surrendered for such exchange.
The Notes are not subject to redemption at the option of the Company and there will be no
sinking fund.
Upon the occurrence of a Fundamental Change, each Holder shall have the right, at such
Holder’s option, to require the Company to repurchase for cash all of such Holder’s Notes or any
portion thereof on the Fundamental Change Repurchase Date at a price equal to the Fundamental
Change Repurchase Price. However, a Holder may only require the Company to repurchase fewer than
all of such Holder’s Notes if (i) the principal amount of Notes to be repurchased is an integral
multiple of $1,000 and (ii) the portion of such Holder’s Notes not to be repurchased is in a
minimum principal amount of $2,000.
Subject to the provisions of the Indenture, during certain periods and upon the occurrence of
certain conditions specified in the Indenture, the Holder hereof has the right, at its option,
prior to the close of business on the Business Day immediately preceding the Maturity Date, to
convert any Notes or portion thereof, into shares of Common Stock (together with cash in lieu of
fractional shares) at a Conversion Rate specified in the Indenture, as adjusted from time to time
as provided in the Indenture; provided that a Holder may only convert fewer than all of such
Holder’s Notes if (i) the principal amount of Notes to be converted is an integral multiple of
$1,000 and (ii) the portion of such Holder’s Notes not to be converted is in a minimum principal
amount of $2,000.
Terms used in this Note and defined in the Indenture are used herein as therein defined.
ABBREVIATIONS
The following abbreviations, when used in the inscription of the face of this Note, shall be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM = as tenants in common
UNIF GIFT MIN ACT = Uniform Gifts to Minors Act
CUST = Custodian
TEN ENT = as tenants by the entireties
JT TEN = joint tenants with right of survivorship and not as tenants in common
Additional abbreviations may also be used though not in the above list.
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