1
EXHIBIT 4.1
SOLECTRON CORPORATION
Liquid Yield Option(TM) Notes due 2020
(Zero Coupon-Senior)
--------------------------------------
Supplemental Indenture
Dated as of May 8, 2000
Supplementing that certain
Indenture
Dated as of May 8, 2000
--------------------------------------
STATE STREET BANK AND TRUST COMPANY OF CALIFORNIA, N.A.,
TRUSTEE
-----------------------------------------------
(TM)Trademark of Xxxxxxx Xxxxx & Co., Inc.
2
TABLE OF CONTENTS
PAGE
----
ARTICLE ONE ISSUANCE OF XXXXX..................................................................... 3
Section 101..................................Issuance of XXXXx; Principal Amount; Maturity 3
Section 102...................No Interest on the XXXXx; Accrual of Original Issue Discount 4
ARTICLE TWO CERTAIN DEFINITIONS................................................................... 4
Section 201............................................................Certain Definitions 4
Section 202..............................................................Other Definitions 6
ARTICLE THREE CERTAIN COVENANTS................................................................... 7
Section 301.......................................................Registration and Listing 7
ARTICLE FOUR ..................................................................................... 7
Section 401............................................................Right of Redemption 7
Section 402..................................Conversion Arrangement on Call for Redemption 8
ARTICLE FIVE ..................................................................................... 9
Section 501...........................................................Conversion Privilege 9
Section 502...........................................................Conversion Procedure 10
Section 503.........................................Adjustment for Change in Capital Stock 12
Section 504....................................................Adjustment for Rights Issue 12
Section 505.............................................Adjustment for Other Distributions 14
Section 506................................................When Adjustment May Be Deferred 16
Section 507....................................................When No Adjustment Required 16
Section 508...........................................................Notice of Adjustment 16
Section 509.............................................................Voluntary Increase 17
Section 5010..............................Reorganization of Company; Special Distributions 17
Section 5011......................................................Simultaneous Adjustments 18
Section 5012........................................................Successive Adjustments 18
Section 5013...............Rights Issued in Respect of Common Stock Issued Upon Conversion 18
ARTICLE SIX ...................................................................................... 18
Section 601......................................Purchase of XXXXx at Option of the Holder 19
Section 602...............Purchase of XXXXx at Option of the Holder upon Change in Control 25
-i-
3
TABLE OF CONTENTS
(CONTINUED)
PAGE
----
Section 603.................Effect of Purchase Notice or Change in Control Purchase Notice 27
Section 604..................Deposit of Purchase Price or Change in Control Purchase Price 29
Section 605........................................................XXXXx Purchased in Part 29
Section 606.................Covenant to Comply with Securities Laws Upon Purchase of XXXXx 29
Section 607.......................................................Repayment to the Company 29
ARTICLE SEVEN .................................................................................... 30
Section 701...................Optional Conversion to Semiannual Coupon LYON Upon Tax Event 30
Section 702.................................Payment of Interest; Interest Rights Preserved 30
ARTICLE EIGHT .................................................................................... 31
Section 801..............................................................Events of Default 32
Section 802......................................................Acceleration of the XXXXx 33
ARTICLE NINE ..................................................................................... 33
Section 901....................................................Consent of Holders Required 33
Section 902.........................................Applicability of Defeasance Provisions 34
Section 903...........................................Restrictive Covenants Not Applicable 34
Section 904.......................................Reference to and Effect on the Indenture 34
Section 905....................................................Waiver of Certain Covenants 34
Section 906.........................Supplemental Indenture May be Executed In Counterparts 35
Section 907.............................................................Effect of Headings 35
-ii-
4
This Supplemental Indenture, dated as of May 8, 2000 (the "Supplemental
Indenture"), between Solectron Corporation, a corporation duly organized and
existing under the laws of the State of Delaware (the "Company"), and State
Street Bank and Trust Company of California, N.A., a national banking
association organized and existing under the laws of the United States of
America, as Trustee (the "Trustee"), supplementing that certain Indenture, dated
as of May 8, 2000, between the Company and the Trustee (the "Indenture").
RECITALS
A. The Company has duly authorized the execution and delivery of the
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes, or other evidences of indebtedness to be issued in one or
more series as provided for in the Indenture.
B. The Indenture provides that the Securities of each series shall be in
substantially the form set forth in the Indenture, or in such other form as may
be established by or pursuant to a Board Resolution or in one or more
supplemental indentures thereto, in each case with such appropriate insertions,
omissions, substitutions, and other variations as are required or permitted by
the Indenture, and may have such letters, numbers, or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined to be required by the officers executing
such securities, as evidenced by their execution thereof.
C. The Company and the Trustee have agreed that the Company shall issue
and deliver, and the Trustee shall authenticate, Securities denominated "Liquid
Yield Option(TM) Notes due 2020 (Zero Coupon-Senior)" (the "XXXXx") pursuant to
the terms of this Supplemental Indenture and substantially in the form set forth
in Exhibit A below, in each case with such appropriate insertions, omissions,
substitutions, and other variations as are required or permitted by the
Indenture and this Supplemental Indenture, and with such letters, numbers, or
other marks of identification and such legends or endorsements placed thereon as
may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of such Securities.
ARTICLE ONE
ISSUANCE OF XXXXX
Section 101. ISSUANCE OF XXXXX; PRINCIPAL AMOUNT; MATURITY.
(a) On May 8, 2000, the Company shall issue and deliver to the Trustee,
and the Trustee shall authenticate, XXXXx substantially in the form set forth in
Exhibit A below, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by the Indenture
and this Supplemental Indenture, and with such letters, numbers, or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any XXXXx exchange or as may,
3
5
consistently herewith, be determined by the officers executing such XXXXx, as
evidenced by their execution of such XXXXx.
(b) The XXXXx shall be issued in the aggregate Principal Amount at
Maturity of $3,500,000,000 (or $4,025,000,000 if the over-allotment option set
forth in Section 2(b) of the Underwriting Agreement dated May 2, 2000 (as
amended from time to time by the parties thereto) by and between the Company and
Xxxxxxx Xxxxx & Co. Inc. is exercised in full) and shall mature on May 8, 2020.
The XXXXx shall be issued only in denominations of $1,000 Principal Amount at
Maturity and any integral multiple thereof.
Section 102. NO INTEREST ON THE XXXXX; ACCRUAL OF ORIGINAL ISSUE DISCOUNT.
(a) The XXXXx shall not bear interest except as specified in paragraphs 1
or 10 of the XXXXx. Original Issue Discount (the difference between the Issue
Price and the Principal Amount at Maturity of the XXXXx), in the period during
which a LYON remains outstanding, shall accrue at 2-3/4% per annum, on a
semiannual bond equivalent basis using a 360-day year composed of twelve 30-day
months, from the Issue Date of this LYON.
(b) The Company shall promptly make all payments in respect of the XXXXx
on the dates and in the manner provided in the XXXXx or pursuant to this
Indenture and Supplemental Indenture. Principal Amount at Maturity, Restated
Principal Amount, Issue Price Plus accrued Original Issue Discount, Redemption
Price, Purchase Price, Change in Control Purchase Price and interest, if any,
shall be considered paid on the applicable date due if on such date (or in the
case of a Purchase Price or Change in Control Purchase Price, on the Business
Day following the applicable Purchase Date or Change in Control Purchase Date,
as the case may be) the Trustee or the Paying Agent holds, in accordance with
this Indenture and Supplemental Indenture, money or securities, if permitted
hereunder, sufficient to pay all such amounts then due.
(c) The Company shall, to the extent permitted by law, pay interest on
overdue amounts at the rate per annum set forth in paragraph 1 of the XXXXx,
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. The accrual for such interest on overdue amounts shall be in lieu of,
and not in addition to, the continued accrual of Original Issue Discount.
ARTICLE TWO
CERTAIN DEFINITIONS
Section 201. CERTAIN DEFINITIONS
The terms defined in this Section 201 (except as herein otherwise expressly
provided or unless the context of this Supplemental Indenture otherwise
requires) for all purposes of this Supplemental Indenture and of any indenture
supplemental hereto have the respective meanings specified in this Section 201.
All other terms used in this Supplemental Indenture that are
-4-
6
defined in the Indenture or the Trust Indenture Act, either directly or by
reference therein (except as herein otherwise expressly provided or unless the
context of this Supplemental Indenture otherwise requires), have the respective
meanings assigned to such terms in the Indenture or the Trust Indenture Act, as
the case may be, as in force at the date of this Supplemental Indenture as
originally executed.
"Capital Stock" for any corporation means any and all shares, interest,
rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) stock issued by that corporation.
"Conversion Agent" means State Street Bank and Trust Company of California,
N.A., or any successor entity thereto.
"Debt" means with respect to the Company at any date, without duplication,
obligations (other than nonrecourse obligations) for borrowed money or evidenced
by bonds, debentures, notes or similar instruments.
"Issue Date" of any LYON means the date on which the LYON was originally
issued or deemed issued as set forth on the face of the LYON.
"Issue Price" of any LYON means, in connection with the original issuance
of such LYON, the initial issue price at which the LYON is sold as set forth on
the face of the LYON.
"Original Issue Discount" of any LYON means the difference between the
Issue Price and the Principal Amount at Maturity of the LYON as set forth on the
face of the LYON.
"Principal Amount at Maturity" of a LYON means the Principal Amount at
Maturity as set forth on the face of the LYON.
"Redemption Date" or "redemption date" shall mean the date specified for
redemption of the XXXXx in accordance with the terms of the XXXXx and this
Indenture.
"Redemption Price" or "redemption price" shall have the meaning set forth
in paragraph 5 of the XXXXx.
"SEC" means the Securities and Exchange Commission.
"Special Record Date" means for the payment of any Defaulted Interest, the
date fixed by the Trustee pursuant to Section 702(b).
"Stated Maturity", when used with respect to any LYON, means the date
specified in such LYON as the fixed date on which an amount equal to the
Principal Amount at Maturity of such LYON is due and payable.
-5-
7
"Supplemental Indenture" means this Supplemental Indenture, as amended or
supplemented from time to time in accordance with the terms hereof, including
the provisions of the Trust Indenture Act that are deemed to be part hereof,
supplementing that certain Indenture, dated as of May 8, 2000 between the
Company and the Trustee.
"Tax Event" means that the Company shall have received an opinion from
independent tax counsel experienced in such matters to the effect that, on or
after May 8, 2000, as a result of (a) any amendment to, or change (including any
announced prospective change) in, the laws (or any regulations thereunder) of
the United States or any political subdivision or taxing authority thereof or
therein or (b) any amendment to, or change in, an interpretation or application
of such laws or regulations by any legislative body, court, governmental agency
or regulatory authority, in each case which amendment or change is enacted,
promulgated, issued or announced or which interpretation is issued or announced
or which action is taken, on or after May 8, 2000, there is more than an
insubstantial risk that interest (including Original Issue Discount) payable on
the XXXXx either (i) would not be deductible on a current accrual basis or (ii)
would not be deductible under any other method, in either case in whole or in
part, by the Company (by reason of deferral, disallowance, or otherwise) for
United States Federal income tax purposes.
"Trading Day" means a day during which trading in securities generally
occurs on the New York Stock Exchange or, if the Common Stock is not listed on
the New York Stock Exchange, on the principal other national or regional
securities exchange on which the Common Stock is then listed or, if the Common
Stock is not listed on a national or regional securities exchange, on the
National Association of Securities Dealers Automated Quotation System or, if the
Common Stock is not quoted on the National Association of Securities Dealers
Automated Quotation System, on the principal other market on which the Common
Stock is then traded.
Section 202. OTHER DEFINITIONS.
Defined in
Term Section
---- -----------
"Associate"..................................................... 602(a)
"Average Quoted Price".......................................... 501
"Bankruptcy Law"................................................ 801
"beneficial owner".............................................. 602(a)
"cash".......................................................... 601(b)
"Change in Control"............................................. 602(a)
"Change in Control Purchase Date"............................... 602(a)
"Change in Control Purchase Notice"............................. 602(c)
"Change in Control Purchase Price".............................. 602(a)
"Company Notice"................................................ 601(e)
"Company Notice Date"........................................... 601(c)
"Conversion Date"............................................... 502
"Conversion Rate"............................................... 501
"Custodian"..................................................... 801
"Defaulted Interest"............................................ 702(b)
-6-
8
"Ex-Dividend Time".............................................. 501
"Extraordinary Cash Dividend"................................... 505
"Interest Payment Date"......................................... 701
"Legal Holiday"................................................. 502
"Market Price".................................................. 601(d)
"Option Exercise Date".......................................... 701
"Purchase Date"................................................. 601(a)
"Purchase Notice"............................................... 601(a)(1)
"Purchase Price"................................................ 601(a)
"Quoted Price".................................................. 501
"Regular Record Date"........................................... 701
"Restated Principal Amount"..................................... 701
"Rights"........................................................ 513
"Rights Agreement".............................................. 513
"Sale Price".................................................... 601(d)
"Tax Event Date"................................................ 701
"Time of Determination"......................................... 501
ARTICLE THREE
CERTAIN COVENANTS
The following covenant shall be applicable to the Company for so long as
any of the XXXXx are outstanding. Nothing in this paragraph will, however,
affect the Company's obligations under any provision of the Indenture or, except
for Article Three hereof, this Supplemental Indenture.
Section 301. REGISTRATION AND LISTING.
The Company (i) will effect all registrations with, and obtain all
approvals by, all governmental authorities that may be necessary under any
United States Federal or state law (including the Securities Act, the Exchange
Act and state securities and Blue Sky laws) before the shares of Common Stock
issuable upon conversion of XXXXx may be lawfully issued and delivered, and
thereafter publicly traded, and qualified or listed as contemplated by clause
(ii); and (ii) will list the shares of Common Stock required to be issued and
delivered upon conversion of the XXXXx prior to such issuance or delivery on The
Nasdaq National Market or such other exchange or automated quotation as the
Common Stock is then listed at such date of conversion.
ARTICLE FOUR
REDEMPTION OF XXXXX
Section 401. RIGHT OF REDEMPTION.
-7-
9
The XXXXx will not be subject to redemption prior to May 8, 2003 and will
be redeemable on and after such date at the option of the Company, in whole or
in part, upon not less than 15 nor more than 60 days' notice to the Holders.
The table below shows redemption prices of a LYON on May 8, 2003, at each
May 8 thereafter prior to maturity and at maturity on May 8, 2020. These prices
reflect the accrued Original Issue Discount calculated to each such date. The
redemption price of a LYON redeemed between such dates would include an
additional amount reflecting the additional Original Issue Discount accrued
since the next preceding date in the table.
(2)
Accrued (3)
(1) Original Redemption
LYON Issue Discount Price
Issue Price at 2 3/4% (1)+(2)
----------- -------------- -----------
Redemption Date
---------------
May 8, 2003...................................... $ 579.12 $ 49.45 $ 628.57
May 8, 2004...................................... 579.12 66.85 645.97
May 8, 2005...................................... 579.12 84.74 663.86
May 8, 2006...................................... 579.12 103.12 682.24
May 8, 2007...................................... 579.12 122.01 701.13
May 8, 2008...................................... 579.12 141.43 720.55
May 8, 2009...................................... 579.12 161.38 740.50
May 8, 2010...................................... 579.12 181.88 761.00
May 8, 2011...................................... 579.12 202.95 782.07
May 8, 2012...................................... 579.12 224.60 803.72
May 8, 2013...................................... 579.12 246.86 825.98
May 8, 2014...................................... 579.12 269.73 848.85
May 8, 2015...................................... 579.12 293.23 872.35
May 8, 2016...................................... 579.12 317.39 896.51
May 8, 2017...................................... 579.12 342.21 921.33
May 8, 2018...................................... 579.12 367.72 946.84
May 8, 2019...................................... 579.12 393.94 973.06
At Stated Maturity............................... $ 579.12 $ 420.88 $ 1,000.00
If converted to semiannual coupon XXXXx following the occurrence of a Tax
Event, the XXXXx will be redeemable at the restated principal amount plus
accrued and unpaid interest from the date of the conversion through the
redemption date. However, in no event may the XXXXx be redeemed prior to May 8,
2003.
Section 402. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION.
In connection with any redemption of XXXXx, the Company may arrange for the
purchase and conversion of any XXXXx called for redemption by an agreement with
one or more investment bankers or other purchasers to purchase such XXXXx by
paying to the Trustee in trust for the Holders, on or before the close of
business on the Redemption Date, an amount that,
-8-
10
together with any amounts deposited with the Trustee by the Company for the
redemption of such XXXXx, is not less than the Redemption Price, of such XXXXx.
Notwithstanding anything to the contrary contained in this Article Three, the
obligation of the Company to pay the Redemption Price of such XXXXx, shall be
deemed to be satisfied and discharged to the extent such amount is so paid by
such purchasers. If such an agreement is entered into, any XXXXx not duly
surrendered for conversion by the Holders thereof may, at the option of the
Company, be deemed, to the fullest extent permitted by law, acquired by such
purchasers from such Holders and (notwithstanding anything to the contrary
contained in Article 11 of the Indenture) surrendered by such purchasers for
conversion, all as of immediately prior to the close of business on the
Redemption Date, subject to payment of the above amount as aforesaid. The
Trustee shall hold and pay to the Holders whose XXXXx are selected for
redemption any such amount paid to it for purchase and conversion in the same
manner as it would moneys deposited with it by the Company for the redemption of
XXXXx. Without the Trustee's prior written consent, no arrangement between the
Company and such purchasers for the purchase and conversion of any XXXXx shall
increase or otherwise affect any of the powers, duties, responsibilities or
obligations of the Trustee as set forth in this Indenture, and the Company
agrees to indemnify the Trustee from, and hold it harmless against, any loss,
liability or expense arising out of or in connection with any such arrangement
for the purchase and conversion of any XXXXx between the Company and such
purchasers, including the costs and expenses incurred by the Trustee in the
defense of any claim or liability arising out of or in connection with the
exercise or performance of any of its powers, duties, responsibilities or
obligations under this Indenture.
ARTICLE FIVE
CONVERSION OF XXXXX
Section 501. CONVERSION PRIVILEGE.
A Holder of a LYON may convert such LYON into Common Stock at any time
during the period stated in paragraph 8 of the XXXXx. The number of shares of
Common Stock issuable upon conversion of a LYON per $1,000 of Principal Amount
at Maturity thereof (the "Conversion Rate") shall be that set forth in paragraph
8 in the XXXXx, subject to adjustment as herein set forth.
A Holder may convert a portion of the Principal Amount at Maturity of a
LYON if the portion is $1,000 or an integral multiple of $1,000. Provisions of
this Supplemental Indenture that apply to conversion of all of a LYON also apply
to conversion of a portion of a LYON.
"Quoted Price" means, for any given day, the last reported per share sale
price (or, if no sale price is reported, the average of the bid and ask prices
or, if more than one in either case, the average of the average bid and average
ask prices) on such day of the Common Stock on the New York Stock Exchange
Composite Tape or, in the event shares of Common Stock are not listed on the New
York Stock Exchange, in the composite transactions for such other national or
regional securities exchange upon which the Common Stock is listed, or, if the
shares of Common Stock are not listed on a national or regional securities
exchange, as quoted on the
-9-
11
National Association of Securities Dealers Automated Quotation System or by the
National Quotation Bureau Incorporated. In the absence of such quotations, the
Company shall be entitled to determine the Quoted Price on the basis of such
quotations as it considers appropriate.
"Average Quoted Price" means the average of the Quoted Prices of the Common
Stock for the shorter of
(i) 30 consecutive Trading Days ending on the last full Trading Day
prior to the Time of Determination with respect to the rights, warrants or
options or distribution in respect of which the Average Quoted Price is being
calculated, or
(ii) the period (x) commencing on the date next succeeding the first
public announcement of (a) the issuance of rights, warrants or options or (b)
the distribution, in each case, in respect of which the Average Quoted Price is
being calculated and (y) proceeding through the last full Trading Day prior to
the Time of Determination with respect to the rights, warrants or options or
distribution in respect of which the Average Quoted Price is being calculated
(excluding days within such period, if any, which are not Trading Days), or
(iii) the period, if any, (x) commencing on the date next succeeding
the Ex-Dividend Time with respect to the next preceding (a) issuance of rights,
warrants or options or (b) distribution, in each case, for which an adjustment
is required by the provisions of Section 503(4), 504 or 505 and (y) proceeding
through the last full Trading Day prior to the Time of Determination with
respect to the rights, warrants or options or distribution in respect of which
the Average Quoted Price is being calculated (excluding days within such period,
if any, which are not Trading Days).
In the event that the Ex-Dividend Time (or in the case of a subdivision,
combination or reclassification, the effective date with respect thereto) with
respect to a dividend, subdivision, combination or reclassification to which
Section 503(1), (2), (3) or (5) applies occurs during the period applicable for
calculating "Average Quoted Price" pursuant to the definition in the preceding
sentence, "Average Quoted Price" shall be calculated for such period in a manner
determined by the Board of Directors to reflect the impact of such dividend,
subdivision, combination or reclassification on the Quoted Price of the Common
Stock during such period.
"Time of Determination" means the time and date of the earlier of (i) the
determination of stockholders entitled to receive rights, warrants or options or
a distribution, in each case, to which Section 504 or 505 applies and (ii) the
time ("Ex-Dividend Time") immediately prior to the commencement of "ex-dividend"
trading for such rights, warrants or options or distribution on the New York
Stock Exchange or such other national or regional exchange or market on which
the Common Stock is then listed or quoted.
Section 502. CONVERSION PROCEDURE.
To convert a LYON a Holder must satisfy the requirements in paragraph 8 of
the XXXXx. The date on which the Holder satisfies all those requirements is the
conversion date (the "Conversion Date"). As soon as practicable after the
Conversion Date, the Company shall
-10-
12
deliver to the Holder, through the Conversion Agent, a certificate for the
number of full shares of Common Stock issuable upon the conversion and cash in
lieu of any fractional share determined pursuant to Section 14.3 of the
Indenture. The Company shall determine such full number of shares and the
amounts of the required cash with respect to any fractional share, and shall set
forth such information in a certificate delivered to the Conversion Agent. The
Person in whose name the certificate is registered shall be treated as a
stockholder of record on and after the Conversion Date; provided, however, that
no surrender of a LYON on any 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 such 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; such conversion shall be at the Conversion Rate in effect on the date
that such LYON shall have been surrendered for conversion, as if the stock
transfer books of the Company had not been closed. Upon conversion of a LYON,
such Person shall no longer be a Holder of such LYON.
No payment or adjustment will be made for dividends on, or other
distributions with respect to, any Common Stock except as provided in this
Article Five. On conversion of a LYON, that portion of accrued Original Issue
Discount (or interest, if the Company has exercised its option provided for in
Section 701) attributable to the period from the Issue Date (or, if the Company
has exercised the option provided for in Section 701, the later of (x) the date
of such exercise and (y) the date on which interest was last paid) of the LYON
through the Conversion Date with respect to the converted LYON shall not be
cancelled, extinguished or forfeited, but rather shall be deemed to be paid in
full to the Holder thereof through delivery of the Common Stock (together with
the cash payment, if any, in lieu of fractional shares) in exchange for the LYON
being converted pursuant to the provisions hereof; and the fair market value of
such shares of Common Stock (together with any such cash payment in lieu of
fractional shares) shall be treated as issued, to the extent thereof, first in
exchange for Original Issue Discount (or interest, if the Company has exercised
its option provided for in Section 701) accrued through the Conversion Date, and
the balance, if any, of such fair market value of such Common Stock (and any
such cash payment) shall be treated as issued in exchange for the Issue Price of
the LYON being converted pursuant to the provisions hereof.
If the Holder converts more than one LYON at the same time, the number of
shares of Common Stock issuable upon the conversion shall be based on the total
Principal Amount at Maturity of the XXXXx converted.
If the last day on which a LYON may be converted is a day other than a
Business Day (a "Legal Holiday"), the LYON may be surrendered on the next
succeeding day that is not a Legal Holiday.
Upon surrender of a LYON that is converted in part, the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder, a new
LYON in an authorized denomination equal in Principal Amount at Maturity to the
unconverted portion of the LYON surrendered.
-11-
13
All shares of Common Stock delivered upon conversion of the XXXXx shall be
newly issued shares or treasury shares, shall be duly and validly issued and
fully paid and nonassessable and shall be free from preemptive rights and free
of any lien or adverse claim.
Section 503. ADJUSTMENT FOR CHANGE IN CAPITAL STOCK.
If, after the Issue Date of the XXXXx, the Company:
(1) pays a dividend or makes a distribution on its Common Stock in
shares of its Common Stock;
(2) subdivides its outstanding shares of Common Stock into a greater
number of shares;
(3) combines its outstanding shares of Common Stock into a smaller
number of shares;
(4) pays a dividend or makes a distribution on its Common Stock in
shares of its Capital Stock (other than Common Stock or rights, warrants or
options for its Capital Stock); or
(5) issues by reclassification of its Common Stock any shares of its
Capital Stock (other than rights, warrants or options for its Capital Stock),
then the conversion privilege and the Conversion Rate in effect immediately
prior to such action shall be adjusted so that the Holder of a LYON thereafter
converted may receive the number of shares of Capital Stock of the Company which
such Holder would have owned immediately following such action if such Holder
had converted the LYON immediately prior to such action.
The adjustment shall become effective immediately after the record date in
the case of a dividend or distribution and immediately after the effective date
in the case of a subdivision, combination or reclassification.
If after an adjustment a Holder of a LYON upon conversion of such LYON may
receive shares of two or more classes of Capital Stock of the Company, the
Conversion Rate shall thereafter be subject to adjustment upon the occurrence of
an action taken with respect to any such class of Capital Stock as is
contemplated by this Article Five with respect to the Common Stock, on terms
comparable to those applicable to Common Stock in this Article Five.
Section 504. ADJUSTMENT FOR RIGHTS ISSUE.
If after the Issue Date of the XXXXx, the Company distributes any rights,
warrants or options to all holders of its Common Stock entitling them, for a
period expiring within 60 days after the record date for such distribution, to
purchase shares of Common Stock at a price per share less than the Quoted Price
as of the Time of Determination, the Conversion Rate shall be adjusted in
accordance with the formula:
-12-
14
R' = R x (O + N)
---------------
(O + (N x P)/M)
where:
R' = the adjusted Conversion Rate.
R = the current Conversion Rate.
O = the number of shares of Common Stock outstanding on the record
date for the distribution to which this Section 504 is being
applied.
N = the number of additional shares of Common Stock offered pursuant
to the distribution.
P = the offering price per share of the additional shares.
M = the Average Quoted Price, minus, in the case of (i) a
distribution to which Section 503(4) applies or (ii) a
distribution to which Section 505 applies, for which, in each
case, (x) the record date shall occur on or before the record
date for the distribution to which this Section 504 applies and
(y) the Ex-Dividend Time shall occur on or after the date of the
Time of Determination for the distribution to which this Section
504 applies, the fair market value (on the record date for the
distribution to which this Section 504 applies) of the
(1) Capital Stock of the Company distributed in respect of
each share of Common Stock in such Section 503(4)
distribution and
(2) assets of the Company or debt securities or any
rights, warrants or options to purchase securities of the
Company distributed in respect of each share of Common
Stock in such Section 505 distribution.
The Board of Directors shall determine fair market values for the
purposes of this Section 504.
The adjustment shall become effective immediately after the record date for
the determination of shareholders entitled to receive the rights, warrants or
options to which this Section 504 applies. If all of the shares of Common Stock
subject to such rights, warrants or options have not been issued when such
rights, warrants or options expire, then the Conversion Rate shall promptly be
readjusted to the Conversion Rate which would then be in effect had the
adjustment upon the issuance of such rights, warrants or options been made on
the basis of the actual number of shares of Common Stock issued upon the
exercise of such rights, warrants or options.
-13-
15
No adjustment shall be made under this Section 504 if the application of
the formula stated above in this Section 504 would result in a value of R' that
is equal to or less than the value of R.
Section 505. ADJUSTMENT FOR OTHER DISTRIBUTIONS.
If, after the Issue Date of the XXXXx, the Company distributes to all
holders of its Common Stock any of its assets, or debt securities or any rights,
warrants or options to purchase securities of the Company (including securities
or cash, but excluding (x) distributions of Capital Stock referred to in Section
503 and distributions of rights, warrants or options referred to in Section 504
and (y) cash dividends or other cash distributions that are paid out of
consolidated current net earnings or earnings retained in the business as shown
on the books of the Company unless such cash dividends or other cash
distributions are Extraordinary Cash Dividends) the Conversion Rate shall be
adjusted, subject to the provisions of the last paragraph of this Section 505,
in accordance with the formula:
R' = R x M
-------
M - F
where:
R' = the adjusted Conversion Rate.
R = the current Conversion Rate.
M = the Average Quoted Price, minus, in the case of a distribution to
which Section 503(4) applies, for which (i) the record date shall
occur on or before the record
date for the distribution to which this Section 505 applies and
(ii) the Ex-Dividend Time shall occur on or after the date of the
Time of Determination for the distribution to which this Section
505 applies, the fair market value (on the record date for the
distribution to which this Section 505 applies) of any Capital
Stock of the Company distributed in respect of each share of
Common Stock in such Section 503(4) distribution.
F = the fair market value (on the record date for the distribution to
which this Section 505 applies) of the assets, securities,
rights, warrants or options to be distributed in respect of each
share of Common Stock in the distribution to which this Section
505 is being applied (including, in the case of cash dividends or
other cash distributions giving rise to an adjustment, all such
cash distributed concurrently).
The Board of Directors shall determine fair market values for the
purposes of this Section 505.
-14-
16
The adjustment shall become effective immediately after the record date for
the determination of shareholders entitled to receive the distribution to which
this Section 505 applies.
For purposes of this Section 505, the term "Extraordinary Cash Dividend"
shall mean any cash dividend with respect to the Common Stock the amount of
which, together with the aggregate amount of cash dividends on the Common Stock
to be aggregated with such cash dividend in accordance with the provisions of
this paragraph, equals or exceeds the threshold percentages set forth in item
(i) or (ii) below:
(i) If, upon the date prior to the Ex-Dividend Time with respect to a cash
dividend on the Common Stock, the aggregate amount of such cash dividend
together with the amounts of all cash dividends on the Common Stock with
Ex-Dividend Times occurring in the 85 consecutive day period ending on the date
prior to the Ex-Dividend Time with respect to the cash dividend to which this
provision is being applied equals or exceeds on a per share basis 12.5% of the
average of the Quoted Prices during the period beginning on the date after the
first such Ex-Dividend Time in such period and ending on the date prior to the
Ex-Dividend Time with respect to the cash dividend to which this provision is
being applied (except that if no other cash dividend has had an Ex-Dividend Time
occurring in such period, the period for calculating the average of the Quoted
Prices shall be the period commencing 85 days prior to the date prior to the
Ex-Dividend Time with respect to the cash dividend to which this provision is
being applied), such cash dividend together with each other cash dividend with
an Ex-Dividend Time occurring in such 85 day period shall be deemed to be an
Extraordinary Cash Dividend and for purposes of applying the formula set forth
above in this Section 505, the value of "F" shall be equal to (w) the aggregate
amount of such cash dividend together with the amounts of the other cash
dividends with Ex-Dividend Times occurring in such period minus (x) the
aggregate amount of such other cash dividends with Ex-Dividend Times occurring
in such period for which a prior adjustment in the Conversion Rate was
previously made under this Section 505.
(ii) If, upon the date prior to the Ex-Dividend Time with respect to a
cash dividend on the Common Stock, the aggregate amount of such cash dividend
together with the amounts of all cash dividends on the Common Stock with
Ex-Dividend Times occurring in the 365 consecutive day period ending on the date
prior to the Ex-Dividend Time with respect to the cash dividend to which this
provision is being applied equals or exceeds on a per share basis 25% of the
average of the Quoted Prices during the period beginning on the date after the
first such Ex-Dividend Time in such period and ending on the date prior to the
Ex-Dividend Time with respect to the cash dividend to which this provision is
being applied (except that if no other cash dividend has had an Ex-Dividend Time
occurring in such period, the period for calculating the average of the Quoted
Prices shall be the period commencing 365 days prior to the date prior to the
Ex-Dividend Time with respect to the cash dividend to which this provision is
being applied), such cash dividend together with each other cash dividend with
an Ex-Dividend Time occurring in such 365 day period shall be deemed to be an
Extraordinary Cash Dividend and for purposes of applying the formula set forth
above in this Section 505, the value of "F" shall be equal to (y) the aggregate
amount of such cash dividend together with the amounts of the other cash
dividends with Ex-Dividend Times occurring in such period minus (z) the
aggregate
-15-
17
amount of such other cash dividends with Ex-Dividend Times occurring in such
period for which a prior adjustment in the Conversion Rate was previously made
under this Section 505.
In making the determinations required by items (i) and (ii) above, the
amount of cash dividends paid on a per share basis and the average of the Quoted
Prices, in each case during the period specified in item (i) or (ii) above, as
applicable, shall be appropriately adjusted to reflect the occurrence during
such period of any event described in Section 503.
In the event that, with respect to any distribution to which this Section
505 would otherwise apply, the difference "M-F" as defined in the above formula
is less than $1.00 or "F" is equal to or greater than "M", then the adjustment
provided by this Section 505 shall not be made and in lieu thereof the
provisions of Section 5010 shall apply to such distribution.
Section 506. WHEN ADJUSTMENT MAY BE DEFERRED.
No adjustment in the Conversion Rate need be made unless the adjustment
would require an increase or decrease of at least 1% in the Conversion Rate. Any
adjustments that are not made shall be carried forward and taken into account in
any subsequent adjustment.
All calculations under this Article Five shall be made to the nearest cent
or to the nearest 1/1,000th of a share, as the case may be.
Section 507. WHEN NO ADJUSTMENT REQUIRED.
No adjustment need be made for a transaction referred to in Section 503,
504, 505 or 5011 if Holders are to participate in the transaction on a basis and
with notice that the Board of Directors determines to be fair and appropriate in
light of the basis and notice on which holders of Common Stock participate in
the transaction. Such participation by Holders may include participation upon
conversion provided that an adjustment shall be made at such time as the Holders
are no longer entitled to participate.
No adjustment need be made for rights to purchase Common Stock pursuant to
a Company plan for reinvestment of dividends or interest.
No adjustment need be made for a change in the par value or no par value of
the Common Stock.
To the extent the XXXXx become convertible pursuant to this Article Five
into cash, no adjustment need be made thereafter as to the cash. Interest will
not accrue on the cash.
Section 508. NOTICE OF ADJUSTMENT.
Whenever the Conversion Rate is adjusted, the Company shall promptly mail
to Holders a notice of the adjustment. The Company shall file with the Trustee
and the Conversion Agent such notice and a certificate from the Company's
independent public accountants briefly stating the facts requiring the
adjustment and the manner of computing it. The certificate shall be
-16-
18
conclusive evidence that the adjustment is correct. Neither the Trustee nor any
Conversion Agent shall be under any duty or responsibility with respect to any
such certificate except to exhibit the same to any Holder desiring inspection
thereof. Unless and until the Trustee shall receive such notice and certificate
with respect to an adjustment of the Conversion Rate or a notice of a voluntary
increase pursuant to Section 509, the Trustee may assume without inquiry that
the Conversion Rate has not been adjusted.
Section 509. VOLUNTARY INCREASE.
The Company from time to time may increase the Conversion Rate by any
amount for any period of time. Whenever the Conversion Rate is increased, the
Company shall mail to Holders and file with the Trustee and the Conversion Agent
a notice of the increase. The Company shall mail the notice at least 15 days
before the date the increased Conversion Rate takes effect. The notice shall
state the increased Conversion Rate and the period it will be in effect.
A voluntary increase of the Conversion Rate does not change or adjust the
Conversion Rate otherwise in effect for purposes of Section 503, 504 or 505.
Section 5010. REORGANIZATION OF COMPANY; SPECIAL DISTRIBUTIONS.
The provisions of Section 14.9 of the Indenture shall not be applicable to
the XXXXx.
If the Company is a party to a transaction subject to Article 8 of the
Indenture (other than a sale of all or substantially all of the assets of the
Company in a transaction in which the holders of Common Stock immediately prior
to such transaction do not receive securities, cash or other assets of the
Company or any other Person) or a merger or binding share exchange which
reclassifies or changes its outstanding Common Stock, the Person obligated to
deliver securities, cash or other assets upon conversion of the XXXXx shall
enter into a supplemental indenture. If the issuer of securities deliverable
upon conversion of XXXXx is an Affiliate of the successor Company, that issuer
shall join in the supplemental indenture.
The supplemental indenture shall provide that the Holder of a LYON may
convert it into the kind and amount of securities, cash or other assets which
such Holder would have received immediately after the consolidation, merger,
binding share exchange or transfer if such Holder had converted the LYON
immediately before the effective date of the transaction, assuming (to the
extent applicable) that such Holder (i) was not a constituent Person or an
Affiliate of a constituent Person to such transaction; (ii) made no election
with respect thereto; and (iii) was treated alike with the plurality of
non-electing Holders. The supplemental indenture shall provide for adjustments
which shall be as nearly equivalent as may be practical to the adjustments
provided for in this Article Five. The successor Company shall mail to Holders a
notice briefly describing the supplemental indenture.
If this Section applies, neither Section 503 nor 504 applies.
-17-
19
If the Company makes a distribution to all holders of its Common Stock of
any of its assets, or debt securities or any rights, warrants or options to
purchase securities of the Company that, but for the provisions of the last
paragraph of Section 505, would otherwise result in an adjustment in the
Conversion Rate pursuant to the provisions of Section 505, then, from and after
the record date for determining the holders of Common Stock entitled to receive
the distribution, a Holder of a LYON that converts such LYON in accordance with
the provisions of this Indenture shall upon such conversion be entitled to
receive, in addition to the shares of Common Stock into which the LYON is
convertible, the kind and amount of securities, cash or other assets comprising
the distribution that such Holder would have received if such Holder had
converted the LYON immediately prior to the record date for determining the
holders of Common Stock entitled to receive the distribution.
Section 5011. SIMULTANEOUS ADJUSTMENTS.
In the event that this Article Five requires adjustments to the Conversion
Rate under more than one of Sections 503(4), 504 or 505, and the record dates
for the distributions giving rise to such adjustments shall occur on the same
date, then such adjustments shall be made by applying, first, the provisions of
Section 503, second, the provisions of Section 505 and, third, the provisions of
Section 504.
Section 5012. SUCCESSIVE ADJUSTMENTS.
After an adjustment to the Conversion Rate under this Article Five, any
subsequent event requiring an adjustment under this Article Five shall cause an
adjustment to the Conversion Rate as so adjusted.
Section 5013. RIGHTS ISSUED IN RESPECT OF COMMON STOCK ISSUED UPON CONVERSION.
Each share of Common Stock issued upon conversion of XXXXx pursuant to this
Article Five shall be entitled to receive the appropriate number of common stock
or preferred stock purchase rights, as the case may be (the "Rights"), if any,
and the certificates representing the Common Stock issued upon such conversion
shall bear such legends, if any, in each case as may be provided by the terms of
any shareholder rights agreement adopted by the Company, as the same may be
amended from time to time (in each case, a "Rights Agreement"). Provided that
such Rights Agreement requires that each share of Common Stock issued upon
conversion of XXXXx at any time prior to the distribution of separate
certificates representing the Rights be entitled to receive such Rights, then,
notwithstanding anything else to the contrary in this Article Five, there shall
not be any adjustment to the conversion privilege or Conversion Rate as a result
of the issuance of Rights, the distribution of separate certificates
representing the Rights, the exercise or redemption of such Rights in accordance
with any such Rights Agreement, or the termination or invalidation of such
Rights.
ARTICLE SIX
PURCHASE OF XXXXX AT OPTION OF HOLDER
Section 601. PURCHASE OF XXXXX AT OPTION OF THE HOLDER.
-18-
20
(a) General. XXXXx shall be purchased by the Company pursuant to paragraph
6 of the XXXXx as of May 8, 2003 and May 8, 2010 (each, a "Purchase Date"), at
the purchase price specified therein (each, a "Purchase Price"), at the option
of the Holder thereof, upon:
(1) delivery to the Paying Agent, by the Holder of a written notice
of purchase (a "Purchase Notice") at any time from the opening of business on
the date that is 20 Business Days prior to a Purchase Date until the close of
business on such Purchase Date stating:
(A) the certificate number of the LYON which the Holder will
deliver to be purchased,
(B) the portion of the Principal Amount at Maturity of the LYON
which the Holder will deliver to be purchased, which portion must be $1,000 or
an integral multiple thereof,
(C) that such LYON shall be purchased as of the Purchase Date
pursuant to the terms and conditions specified in paragraph 6 of the XXXXx and
in this Supplemental Indenture, and
(D) in the event the Company elects, pursuant to Section 601(b),
to pay the Purchase Price to be paid as of such Purchase Date, in whole or in
part, in shares of Common Stock but such portion of the Purchase Price shall
ultimately be payable to such Holder entirely in cash because any of the
conditions to payment of the Purchase Price in Common Stock is not satisfied
prior to the close of business on such Purchase Date, as set forth in Section
601(d), whether such Holder elects (i) to withdraw such Purchase Notice as to
some or all of the XXXXx to which such Purchase Notice relates (stating the
Principal Amount at Maturity and certificate numbers of the XXXXx as to which
such withdrawal shall relate), or (ii) to receive cash in respect of the entire
Purchase Price for all XXXXx (or portions thereof) to which such Purchase Notice
relates; and
(2) delivery of such LYON to the Paying Agent prior to, on or after
the Purchase Date (together with all necessary endorsements) at the offices of
the Paying Agent, such delivery being a condition to receipt by the Holder of
the Purchase Price therefor; provided, however, that such Purchase Price shall
be so paid pursuant to this Section 601 only if the LYON so delivered to the
Paying Agent shall conform in all respects to the description thereof in the
related Purchase Notice.
If a Holder, in such Holder's Purchase Notice and in any written notice of
withdrawal delivered by such Holder pursuant to the terms of Section 603, fails
to indicate such Holder's choice with respect to the election set forth in
clause (D) of Section 601(a)(1), such Holder shall be deemed to have elected to
receive cash in respect of the Purchase Price for all XXXXx subject to such
Purchase Notice in the circumstances set forth in such clause (D).
-19-
21
The Company shall purchase from the Holder thereof, pursuant to this
Section 601, a portion of a LYON if the Principal Amount at Maturity of such
portion is $1,000 or an integral multiple of $1,000. Provisions of this
Supplemental Indenture that apply to the purchase of all of a LYON also apply to
the purchase of such portion of such LYON.
Any purchase by the Company contemplated pursuant to the provisions of this
Section 601 shall be consummated by the delivery of the consideration to be
received by the Holder promptly following the later of the Purchase Date and the
time of delivery of the LYON.
Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent the Purchase Notice contemplated by this Section 601(a) shall
have the right to withdraw such Purchase Notice at any time prior to the close
of business on the Purchase Date by delivery of a written notice of withdrawal
to the Paying Agent in accordance with Section 603.
The Paying Agent shall promptly notify the Company of the receipt by it of
any Purchase Notice or written notice of withdrawal thereof.
(b) Company's Right to Elect Manner of Payment of Purchase Price. The
XXXXx to be purchased pursuant to Section 601(a) may be paid for, at the
election of the Company, in U.S. legal tender ("cash") or Common Stock, or in
any combination of cash and Common Stock, subject to the conditions set forth in
Sections 601(c) and (d). The Company shall designate, in the Company Notice
delivered pursuant to Section 601(e), whether the Company will purchase the
XXXXx for cash or Common Stock, or, if a combination thereof, the percentages of
the Purchase Price of XXXXx in respect of which it will pay in cash or Common
Stock; provided that the Company will pay cash for fractional interests in
Common Stock. For purposes of determining the existence of potential fractional
interests, all XXXXx subject to purchase by the Company held by a Holder shall
be considered together (no matter how many separate certificates are to be
presented). Each Holder whose XXXXx are purchased pursuant to this Section 601
shall receive the same percentage of cash or Common Stock in payment of the
Purchase Price for such XXXXx, except (i) as provided in Section 601(d) with
regard to the payment of cash in lieu of fractional shares of Common Stock and
(ii) in the event that the Company is unable to purchase the XXXXx of a Holder
or Holders for Common Stock because any necessary qualifications or
registrations of the Common Stock under applicable state securities laws cannot
be obtained, the Company may purchase the XXXXx of such Holder or Holders for
cash. The Company may not change its election with respect to the consideration
(or components or percentages of components thereof) to be paid once the Company
has given its Company Notice to Holders except pursuant to this Section 601(b)
or pursuant to Section 601(d) in the event of a failure to satisfy, prior to the
close of business on the Purchase Date, any condition to the payment of the
Purchase Price, in whole or in part, in Common Stock.
At least three Business Days before the Company Notice Date, the Company
shall deliver an Officers' Certificate to the Trustee specifying:
(i) the manner of payment selected by the Company,
-20-
22
(ii) the information required by Section 601(e),
(iii) if the Company elects to pay the Purchase Price, or a specified
percentage thereof, in Common Stock, that the conditions to such manner of
payment set forth in Section 601(d) have been or will be complied with, and
(iv) whether the Company desires the Trustee to give the Company
Notice required by Section 601(e).
(c) Purchase with Cash. On each Purchase Date, at the option of the
Company, the Purchase Price of XXXXx in respect of which a Purchase Notice
pursuant to Section 601(a) has been given, or a specified percentage thereof,
may be paid by the Company with cash equal to the aggregate Purchase Price of
such XXXXx. If the Company elects to purchase XXXXx with cash, the Company
Notice, as provided in Section 601(e), shall be sent to Holders (and to
beneficial owners as required by applicable law) not less than 20 Business Days
prior to such Purchase Date (the "Company Notice Date").
(d) Payment by Issuance of Common Stock. On each Purchase Date, at the
option of the Company, the Purchase Price of XXXXx in respect of which a
Purchase Notice pursuant to Section 601(a) has been given, or a specified
percentage thereof, may be paid by the Company by the issuance of a number of
shares of Common Stock equal to the quotient obtained by dividing (i) the amount
of cash to which the Holders would have been entitled had the Company elected to
pay all or such specified percentage, as the case may be, of the Purchase Price
of such XXXXx in cash by (ii) the Market Price of a share of Common Stock,
subject to the next succeeding paragraph.
The Company will not issue a fractional share of Common Stock in payment of
the Purchase Price. Instead the Company will pay cash for the current market
value of the fractional share. The current market value of a fraction of a share
shall be determined by multiplying the Market Price by such fraction and
rounding the product to the nearest whole cent. It is understood that if a
Holder elects to have more than one LYON purchased, the number of shares of
Common Stock shall be based on the aggregate amount of XXXXx to be purchased.
If the Company elects to purchase the XXXXx by the issuance of shares of
Common Stock, the Company Notice, as provided in Section 601(e), shall be sent
to the Holders (and to beneficial owners as required by applicable law) not
later than the Company Notice Date.
The Company's right to exercise its election to purchase the XXXXx pursuant
to Section 601 through the issuance of shares of Common Stock shall be
conditioned upon:
(i) the Company's not having given its Company Notice of an election
to pay entirely in cash and its giving of timely Company Notice of election to
purchase all or a specified percentage of the XXXXx with Common Stock as
provided herein;
-21-
23
(ii) the registration of the shares of Common Stock to be issued in
respect of the payment of the Purchase Price under the Securities Act or the
Exchange Act, in each case, if required;
(iii) any necessary qualification or registration under applicable
state securities laws or the availability of an exemption from such
qualification and registration; and
(iv) the receipt by the Trustee of an Officers' Certificate and an
Opinion of Counsel each stating that (A) the terms of the issuance of the Common
Stock are in conformity with this Supplemental Indenture and (B) the shares of
Common Stock to be issued by the Company in payment of the Purchase Price in
respect of XXXXx have been duly authorized and, when issued and delivered
pursuant to the terms of this Supplemental Indenture in payment of the Purchase
Price in respect of the XXXXx, xxxx be validly issued, fully paid and
non-assessable and, to the best of such counsel's knowledge, free from
preemptive rights, and, in the case of such Officer's Certificate, stating that
conditions (i), (ii) and (iii) above and the condition set forth in the second
succeeding sentence have been satisfied and, in the case of such Opinion of
Counsel, stating that conditions (ii) and (iii) above has been satisfied.
Such Officers' Certificate shall also set forth the number of shares of
Common Stock to be issued for each $1,000 Principal Amount at Maturity of XXXXx
and the Sale Price of a share of Common Stock on each Trading Day during the
period commencing on the first Trading Day of the period during which the Market
Price is calculated and ending on the applicable Purchase Date. The Company may
pay the Purchase Price (or any portion thereof) in Common Stock only if the
information necessary to calculate the Market Price is published in a daily
newspaper of national circulation. If the foregoing conditions are not satisfied
with respect to a Holder or Holders prior to the close of business on the
Purchase Date and the Company has elected to purchase the XXXXx pursuant to this
Section 601 through the issuance of shares of Common Stock, the Company shall
pay the entire Purchase Price of the XXXXx of such Holder or Holders in cash.
The "Market Price" means the average of the Sale Prices of the Common Stock
for the five Trading Day period ending on (if the third Business Day prior to
the applicable Purchase Date is a Trading Day, or if not, then on the last
Trading Day prior to) the third Business Day prior to the applicable Purchase
Date, appropriately adjusted to take into account the occurrence, during the
period commencing on the first of such Trading Days during such five Trading Day
period and ending on such Purchase Date, of any event described in Section 503,
504 or 505; subject, however, to the conditions set forth in Sections 506 and
507.
The "Sale Price" of the Common Stock on any date means the closing per
share sale price (or, if no closing sale price is reported, the average of the
bid and ask prices or, if more than one in either case, the average of the
average bid and average ask prices) on such date as reported in the composite
transactions for the principal United States securities exchange on which the
Common Stock is traded or, if the Common Stock is not listed on a United States
national or regional securities exchange, as reported by the National
Association of Securities Dealers Automated Quotation System.
-22-
24
(e) Notice of Election. The Company's notice of election to purchase with
cash or Common Stock or any combination thereof shall be sent to the Holders
(and to beneficial owners as required by applicable law) in the manner provided
in Sections 1.5 and 1.6 of the Indenture at the time specified in Section 601(c)
or (d), as applicable (the "Company Notice"). Such Company Notice shall state
the manner of payment elected and shall contain the following information:
In the event the Company has elected to pay the Purchase Price (or a
specified percentage thereof) with Common Stock, the Company Notice shall:
(1) state that each Holder will receive Common Stock with a Market
Price determined as of a specified date prior to the Purchase Date equal to such
specified percentage of the Purchase Price of the XXXXx held by such Holder
(except any cash amount to be paid in lieu of fractional shares);
(2) set forth the method of calculating the Market Price of the
Common Stock; and
(3) state that because the Market Price of Common Stock will be
determined prior to the Purchase Date, Holders will bear the market risk with
respect to the value of the Common Stock to be received from the date such
Market Price is determined to the Purchase Date.
In any case, each Company Notice shall include a form of Purchase Notice to
be completed by a Holder and shall state:
(i) the Purchase Price and the Conversion Rate;
(ii) the name and address of the Paying Agent and the Conversion
Agent;
(iii) that XXXXx as to which a Purchase Notice has been given may be
converted pursuant to Article Five hereof only if the applicable Purchase Notice
has been withdrawn in accordance with the terms of this Indenture;
(iv) that XXXXx must be surrendered to the Paying Agent to collect
payment;
(v) that the Purchase Price for any security as to which a Purchase
Notice has been given and not withdrawn will be paid promptly following the
later of the Purchase Date and the time of surrender of such LYON as described
in (iv);
(vi) the procedures the Holder must follow to exercise rights under
Section 601 and a brief description of those rights;
(vii) briefly, the conversion rights of the XXXXx;
-23-
25
(viii) the procedures for withdrawing a Purchase Notice (including,
without limitation, for a conditional withdrawal pursuant to the terms of
Section 601(a)(1)(D) or Section 603); and
(ix) the CUSIP number or numbers of the XXXXx being purchased.
At the Company's request, the Trustee shall give such Company Notice in the
Company's name and at the Company's expense; provided, however, that, in all
cases, the text of such Company Notice shall be prepared by the Company.
Upon determination of the actual number of shares of Common Stock to be
issued for each $1,000 Principal Amount at Maturity of XXXXx, the Company will
publish such determination on the Company's Web site on the World Wide Web.
(f) Covenants of the Company. All shares of Common Stock delivered upon
purchase of the XXXXx shall be newly issued shares or treasury shares, shall be
duly authorized, validly issued, fully paid and nonassessable and shall be free
from preemptive rights and free of any lien or adverse claim.
The Company shall use its best efforts to list or cause to have quoted any
shares of Common Stock to be issued to purchase XXXXx on each national
securities exchange or over-the-counter or other domestic market on which the
Common Stock is then listed or quoted.
(g) Procedure upon Purchase. The Company shall deposit cash (in respect of
a cash purchase under Section 601(c) or for fractional interests, as applicable)
or shares of Common Stock, or a combination thereof, as applicable, at the time
and in the manner Section 604 sufficient to pay the aggregate Purchase Price of
all XXXXx to be purchased pursuant to this Section 601. As soon as practicable
after the Purchase Date, the Company shall deliver to each Holder entitled to
receive Common Stock through the Paying Agent, a certificate for the number of
full shares of Common Stock issuable in payment of the Purchase Price and cash
in lieu of any fractional interests. The Person in whose name the certificate
for Common Stock is registered shall be treated as a holder of record of shares
of Common Stock on the Business Day following the Purchase Date. Subject to
Section 601(d), no payment or adjustment will be made for dividends on the
Common Stock the record date for which occurred on or prior to the Purchase
Date.
(h) Taxes. If a Holder of a LYON is paid in Common Stock, the Company
shall pay any documentary, stamp or similar issue or transfer tax due on such
issue of shares of Common Stock. However, the Holder shall pay any such tax
which is due because the Holder requests the shares of Common Stock to be issued
in a name other than the Holder's name. The Paying Agent may refuse to deliver
the certificates representing the Common Stock being issued in a name other than
the Holder's name until the Paying Agent receives a sum sufficient to pay any
tax which will be due because the shares of Common Stock are to be issued in a
name other than the Holder's name. Nothing herein shall preclude any income tax
withholding required by law or regulations.
-24-
26
Section 602. PURCHASE OF XXXXX AT OPTION OF THE HOLDER UPON CHANGE IN CONTROL.
(1) If on or prior to May 8, 2003 there shall have occurred a Change in
Control, XXXXx shall be purchased by the Company, at the option of the Holder
thereof, at the purchase price specified in paragraph 6 of the XXXXx (the
"Change in Control Purchase Price"), as of the date that is 35 Business Days
after the occurrence of the Change in Control (the "Change in Control Purchase
Date"), subject to satisfaction by or on behalf of the Holder of the
requirements set forth in Section 602(c).
A "Change in Control" shall be deemed to have occurred at such time as
either of the following events shall occur:
(i) There shall be consummated any consolidation or merger of the
Company pursuant to which the Common Stock would be converted into cash,
securities or other property, in each case other than a consolidation or merger
of the Company in which the holders of the Common Stock immediately prior to the
consolidation or merger have, directly or indirectly, at least a majority of the
total voting power in the aggregate of all classes of capital stock of the
continuing or surviving corporation immediately after such consolidation or
merger; or
(ii) There is a report filed on Schedule 13D or 14D-1 (or any
successor schedule, form or report) pursuant to the Exchange Act, disclosing
that any person (for the purposes of this Section 602 only, as the term "person"
is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has become
the beneficial owner (as the term "beneficial owner" is defined under Rule 13d-3
or any successor rule or regulation promulgated under the Exchange Act) of 50%
or more of the voting power of the Common Stock then outstanding; provided,
however, that a person shall not be deemed beneficial owner of, or to own
beneficially, (A) any securities tendered pursuant to a tender or exchange offer
made by or on behalf of such person or any of such person's Affiliates or
Associates until such tendered securities are accepted for purchase or exchange
thereunder, or (B) any securities if such beneficial ownership (1) arises solely
as a result of a revocable proxy delivered in response to a proxy or consent
solicitation made pursuant to the applicable rules and regulations under the
Exchange Act, and (2) is not also then reportable on Schedule 13D (or any
successor schedule) under the Exchange Act.
Notwithstanding the foregoing provisions of this Section 602, a Change in
Control shall not be deemed to have occurred by virtue of the Company, any
Subsidiary, any employee stock ownership plan or any other employee benefit plan
of the Company or any Subsidiary, or any person holding Common Stock for or
pursuant to the terms of any such employee benefit plan, filing or becoming
obligated to file a report under or in response to Schedule 13D or Schedule
14D-1 (or any successor schedule, form or report) under the Exchange Act
disclosing beneficial ownership by it of shares of Common Stock, whether in
excess of 50% or otherwise.
"Associate" shall have the meaning ascribed to such term in Rule 12b-2 of
the General Rules and Regulations under the Exchange Act, as in effect on the
date hereof.
-25-
27
(b) Within 15 Business Days after the occurrence of a Change in Control,
the Company shall mail a written notice of Change in Control by first-class mail
to the Trustee and to each Holder (and to beneficial owners as required by
applicable law). The notice shall include a form of Change in Control Purchase
Notice to be completed by the Holder and shall state:
(1) briefly, the events causing a Change in Control and the date of
such Change in Control;
(2) the date by which the Change in Control Purchase Notice pursuant
to this Section 602 must be given;
(3) the Change in Control Purchase Date;
(4) the Change in Control Purchase Price;
(5) the name and address of the Paying Agent and the Conversion
Agent;
(6) the Conversion Rate and any adjustments thereto;
(7) that XXXXx as to which a Change in Control Purchase Notice has
been given may be converted pursuant to Article Five hereof only if the Change
in Control Purchase Notice has been withdrawn in accordance with the terms of
this Indenture;
(8) that XXXXx must be surrendered to the Paying Agent to collect
payment;
(9) that the Change in Control Purchase Price for any LYON as to
which a Change in Control Purchase Notice has been duly given and not withdrawn
will be paid promptly following the later of the Change in Control Purchase Date
and the time of surrender of such LYON as described in (8);
(10) briefly, the procedures the Holder must follow to exercise rights
under this Section 602;
(11) briefly, the conversion rights of the XXXXx;
(12) the procedures for withdrawing a Change in Control Purchase
Notice; and
(13) the CUSIP number or numbers of the XXXXx being purchased.
(c) A Holder may exercise its rights specified in Section 602(a) upon
delivery of a written notice of purchase (a "Change in Control Purchase Notice")
to the Paying Agent at any time prior to the close of business on the Change in
Control Purchase Date, stating:
-26-
28
(1) the certificate number of the LYON which the Holder will deliver
to be purchased;
(2) the portion of the Principal Amount at Maturity of the LYON which
the Holder will deliver to be purchased, which portion must be $1,000 or an
integral multiple thereof; and
(3) that such LYON shall be purchased pursuant to the terms and
conditions specified in paragraph 6 of the XXXXx.
The delivery of such LYON to the Paying Agent prior to, on or after the
Change in Control Purchase Date (together with all necessary endorsements) at
the offices of the Paying Agent shall be a condition to the receipt by the
Holder of the Change in Control Purchase Price therefor; provided, however, that
such Change in Control Purchase Price shall be so paid pursuant to this Section
602 only if the LYON so delivered to the Paying Agent shall conform in all
respects to the description thereof set forth in the related Change in Control
Purchase Notice.
The Company shall purchase from the Holder thereof, pursuant to this
Section 602, a portion of a LYON if the Principal Amount at Maturity of such
portion is $1,000 or an integral multiple of $1,000. Provisions of this
Supplemental Indenture that apply to the purchase of all of a LYON also apply to
the purchase of such portion of such LYON.
Any purchase by the Company contemplated pursuant to the provisions of this
Section 602 shall be consummated by the delivery of the consideration to be
received by the Holder promptly following the later of the Change in Control
Purchase Date and the time of delivery of the LYON to the Paying Agent in
accordance with this Section 602.
Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent the Change in Control Purchase Notice contemplated by this
Section 602(c) shall have the right to withdraw such Change in Control Purchase
Notice at any time prior to the close of business on the Change in Control
Purchase Date by delivery of a written notice of withdrawal to the Paying Agent
in accordance with Section 603.
The Paying Agent shall promptly notify the Company of the receipt by it of
any Change in Control Purchase Notice or written withdrawal thereof.
Section 603. EFFECT OF PURCHASE NOTICE OR CHANGE IN CONTROL PURCHASE NOTICE.
Upon receipt by the Paying Agent of the Purchase Notice or Change in
Control Purchase Notice specified in Section 601(a) or Section 602(c), as
applicable, the Holder of the LYON in respect of which such Purchase Notice or
Change in Control Purchase Notice, as the case may be, was given shall (unless
such Purchase Notice or Change in Control Purchase Notice is withdrawn as
specified in the following two paragraphs) thereafter be entitled to receive
solely the Purchase Price or Change in Control Purchase Price, as the case may
be, with respect to such LYON. Such Purchase Price or Change in Control Purchase
Price shall be paid to such Holder, subject to receipts of funds and/or
securities by the Paying Agent, promptly following the later of
-27-
29
(x) the Purchase Date or the Change in Control Purchase Date, as the case may
be, with respect to such LYON (provided the conditions in Section 601(a) or
Section 602(c), as applicable, have been satisfied) and (y) the time of delivery
of such LYON to the Paying Agent by the Holder thereof in the manner required by
Section 601(a) or Section 602(c), as applicable. XXXXx in respect of which a
Purchase Notice or Change in Control Purchase Notice, as the case may be, has
been given by the Holder thereof may not be converted pursuant to Article Five
hereof on or after the date of the delivery of such Purchase Notice or Change in
Control Purchase Notice, as the case may be, unless such Purchase Notice or
Change in Control Purchase Notice, as the case may be, has first been validly
withdrawn as specified in the following two paragraphs.
A Purchase Notice or Change in Control Purchase Notice, as the case may be,
may be withdrawn by means of a written notice of withdrawal delivered to the
office of the Paying Agent in accordance with the Purchase Notice or Change in
Control Purchase Notice, as the case may be, at any time prior to the close of
business on the Purchase Date or the Change in Control Purchase Date, as the
case may be, specifying:
(1) the certificate number of the LYON in respect of which such
notice of withdrawal is being submitted,
(2) the Principal Amount at Maturity of the LYON with respect to
which such notice of withdrawal is being submitted, and
(3) the Principal Amount at Maturity, if any, of such LYON which
remains subject to the original Purchase Notice or Change in
Control Purchase Notice, as the case may be, and which has been
or will be delivered for purchase by the Company.
A written notice of withdrawal of a Purchase Notice may be in the form set
forth in the preceding paragraph or may be in the form of (i) a conditional
withdrawal contained in a Purchase Notice pursuant to the terms of Section
601(a)(1)(D) or (ii) a conditional withdrawal containing the information set
forth in Section 601(a)(1)(D) and the preceding paragraph and contained in a
written notice of withdrawal delivered to the Paying Agent as set forth in the
preceding paragraph.
There shall be no purchase of any XXXXx pursuant to Section 601 (other than
through the issuance of Common Stock in payment of the Purchase Price, including
cash in lieu of fractional shares) or 602 if there has occurred (prior to, on or
after, as the case may be, the giving, by the Holders of such XXXXx, of the
required Purchase Notice or Change in Control Purchase Notice, as the case may
be) and is continuing an Event of Default (other than a default in the payment
of the Purchase Price or Change in Control Purchase Price, as the case may be,
with respect to such XXXXx). The Paying Agent will promptly return to the
respective Holders thereof any XXXXx (x) with respect to which a Purchase Notice
or Change in Control Purchase Notice, as the case may be, has been withdrawn in
compliance with this Supplemental Indenture, or (y) held by it during the
continuance of an Event of Default (other than a default in the payment of the
Purchase Price or Change in Control Purchase Price, as the case may be, with
-28-
30
respect to such XXXXx) in which case, upon such return, the Purchase Notice or
Change in Control Purchase Notice with respect thereto shall be deemed to have
been withdrawn.
Section 604. DEPOSIT OF PURCHASE PRICE OR CHANGE IN CONTROL PURCHASE PRICE.
Prior to Noon (local time in The City of New York) on the Business Day
following the Purchase Date or the Change in Control Purchase, as the case may
be, the Company shall deposit with the Trustee or with the Paying Agent (or, if
the Company or a Subsidiary or an Affiliate of either of them is acting as the
Paying Agent, shall segregate and hold in trust an amount of money (in
immediately available funds if deposited on such Business Day) or Common Stock,
if permitted hereunder, sufficient to pay the aggregate Purchase Price or Change
in Control Purchase Price, as the case may be, of all the XXXXx or portions
thereof which are to be purchased as of the Purchase Date or Change in Control
Purchase Date, as the case may be.
Section 605. XXXXX PURCHASED IN PART.
Any LYON which is to be purchased only in part shall be surrendered at the
office of the Paying Agent (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or such Xxxxxx's
attorney duly authorized in writing) and the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such LYON, without
service charge, a new LYON or XXXXx, of any authorized denomination as requested
by such Xxxxxx in aggregate Principal Amount at Maturity equal to, and in
exchange for, the portion of the Principal Amount at Maturity of the LYON so
surrendered which is not purchased.
Section 606. COVENANT TO COMPLY WITH SECURITIES LAWS UPON PURCHASE OF XXXXX.
In connection with any offer to purchase or purchase of XXXXx under Section
601 or 602 hereof (provided that such offer or purchase constitutes an "issuer
tender offer" for purposes of Rule 13e-4 (which term, as used herein, includes
any successor provision thereto) under the Exchange Act at the time of such
offer or purchase), the Company shall (i) comply with Rule 13e-4 and Rule 14e-1
under the Exchange Act, (ii) file the related Schedule TO (or any successor
schedule, form or report) under the Exchange Act, and (iii) otherwise comply
with all Federal and state securities laws so as to permit the rights and
obligations under Sections 601 and 602 to be exercised in the time and in the
manner specified in Sections 601 and 602.
Section 607. REPAYMENT TO THE COMPANY.
The Trustee and the Paying Agent shall return to the Company any cash or
shares of Common Stock that remain as provided in the Indenture, together with
interest or dividends, if any, thereon, held by them for the payment of the
Purchase Price or Change in Control Purchase Price, as the case may be;
provided, however, that to the extent that the aggregate amount of cash or
shares of Common Stock deposited by the Company pursuant to Section 604 exceeds
the aggregate Purchase Price or Change in Control Purchase Price, as the case
may be, of XXXXx or portions thereof which the Company is obligated to purchase
as of the Purchase Date or Change in Control Purchase Date, as the case may be,
then promptly after the Business Day following
-29-
31
the Purchase Date or Change in Control Purchase Date, as the case may be, the
Trustee shall return any such excess to the Company together with interest or
dividends, if any, thereon.
ARTICLE SEVEN
SPECIAL TAX EVENT CONVERSION
Section 701. OPTIONAL CONVERSION TO SEMIANNUAL COUPON LYON UPON TAX EVENT.
From and after (i) the date (the "Tax Event Date") of the occurrence of a
Tax Event and (ii) the date the Company exercises such option, whichever is
later (the "Option Exercise Date"), at the option of the Company, interest in
lieu of future Original Issue Discount shall accrue at the rate of 2 3/4% per
annum on a restated principal amount per $1,000 original Principal Amount at
Maturity (the "Restated Principal Amount") equal to the Issue Price plus
Original Issue Discount accrued through the Option Exercise Date and shall be
payable semiannually on May 8 and November 8 of each year (each an "Interest
Payment Date") to holders of record at the close of business on April 23 or
October 24 (each a "Regular Record Date") immediately preceding such Interest
Payment Date. Interest will be computed on the basis of a 360-day year comprised
of twelve 30-day months and will accrue from the most recent date on which
interest has been paid or, if no interest has been paid, from the Option
Exercise Date. Within 15 days of the occurrence of a Tax Event, the Company
shall mail a written notice of such Tax Event by first-class mail to the Trustee
and within 15 days of its exercise of such option the Company shall mail a
written notice of the Option Exercise Date by first-class mail to the Trustee
and Holders of the XXXXx. From and after the Option Exercise Date, (i) the
Company shall be obligated to pay at Stated Maturity, in lieu of the Principal
Amount at Maturity of a LYON, the Restated Principal Amount thereof and (ii)
"Issue Price and accrued Original Issue Discount," "Issue Price plus Original
Issue Discount" or similar words, as used herein, shall mean Restated Principal
Amount plus accrued and unpaid interest with respect to any LYON. XXXXx
authenticated and delivered after the Option Exercise Date may, and shall if
required by the Trustee, bear a notation in a form approved by the Trustee as to
the conversion of the XXXXx to semiannual coupon notes.
Section 702. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.
(a) Interest on any LYON that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that LYON is registered at the close of business on the Regular Record Date
for such interest at the office or agency of the Company maintained for such
purpose. Each installment of interest on any LYON shall be paid in same-day
funds by transfer to an account maintained by the payee located inside the
United States. In the case of a permanent Global LYON, interest payable on any
Interest Payment Date will be paid to the Depositary, with respect to that
portion of such permanent Global LYON held for its account by Cede & Co. for the
purpose of permitting such party to credit the interest received by it in
respect of such permanent Global LYON to the accounts of the beneficial owners
thereof.
(b) Except as otherwise specified with respect to the XXXXx, any interest
on any LYON that is payable, but is not punctually paid or duly provided for,
within 30
-30-
32
days following on any Interest Payment Date (herein called "Defaulted Interest",
which term shall include any accrued and unpaid interest that has accrued on
such defaulted amount in accordance with paragraph 1 of the XXXXx), shall
forthwith cease to be payable to the registered Holder thereof on the relevant
Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company, as 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 XXXXx 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 LYON and the date of the proposed payment (which shall not be less than 20
days after such notice is received by the Trustee), and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit 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 Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first-class postage prepaid, to each Holder of XXXXx at his address as
it appears on the list of Holders maintained pursuant to Section 3.5 of the
Indenture not less than 10 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor
having been mailed as aforesaid, such Defaulted Interest shall be paid to the
Persons in whose names the XXXXx are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the following
clause (2).
(2) The Company may make payment of any Defaulted Interest on
the XXXXx in any other lawful manner not inconsistent with the requirements of
any securities exchange on which such XXXXx may be listed, and upon such notice
as may be required by such exchange, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section and Section 3.5 of the
Indenture, each LYON delivered under this Indenture upon registration of
transfer of or in exchange for or in lieu of any other LYON shall carry the
rights to interest accrued and unpaid, and to accrue, which were carried by such
other LYON.
ARTICLE EIGHT
EVENTS OF DEFAULT
-31-
33
Section 801. EVENTS OF DEFAULT.
The following will be Events of Default under the Supplemental Indenture:
(a) after exercise of its option pursuant to Section 701 of this
Supplemental Indenture following a Tax Event, the Company defaults in the
payment of interest upon any LYON when such interest becomes due and payable,
and such default continues for a period of 30 days;
(b) the Company defaults in the payment of the Principal Amount at
Maturity (or, if the XXXXx have been converted to semiannual coupon notes
following a Tax Event pursuant to Article Seven, the Restated Principal Amount),
Issue Price plus accrued Original Issue Discount, Redemption Price, Purchase
Price or Change in Control Purchase Price on any LYON when the same becomes due
and payable at its Stated Maturity, upon redemption, upon declaration, when due
for purchase by the Company or otherwise;
(c) the Company fails to comply with any of its agreements in the XXXXx or
this Indenture or Supplemental Indenture (other than those referred to in
clauses (a) and (b) above) and such failure continues for 60 days after receipt
by the Company of a Notice of Default;
(d) (1) failure of the Company to make any payment by the end of any
applicable grace period after maturity of Debt in an amount in excess of
$100,000,000 and continuance of such failure, or (2) the acceleration of Debt in
an amount in excess of $100,000,000 because of a default with respect to such
Debt without such Debt having been discharges or such acceleration having been
cured, waived, rescinded or annulled, in the case of (1) or (2) above, for a
period of 30 days after receipt by the Company of a Notice of Default; provided,
however, that if any such failure or acceleration referred to in (1) or (2)
above shall cease or be cured, waived, rescinded or annulled, then the Event of
Default by reason thereof shall be deemed not to have occurred; or
(e) the Company pursuant to or under or within the meaning of any
Bankruptcy Law:
(i) commences 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 Custodian of it or for any
substantial part 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
-32-
34
(vi) consents to the filing of such petition or the appointment of or
taking possession by a Custodian; or
(f) a court of competent jurisdiction enters and order or decree under any
Bankruptcy Law that:
(i) is for relief against the Company in an involuntary case or
proceeding, or adjudicates the Company insolvent or bankrupt;
(ii) appoints a Custodian of the Company or for any substantial part
of its property; or
(iii) orders the winding up or liquidation of the Company;
and the order or decree remains unstayed and in effect for 60 days.
"Bankruptcy Law" means Title 11, United States Code, or any similar Federal
or state law for the relief of debtors.
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.
A Default under clause (c) or clause (d) above is not an Event of Default
until the Trustee notifies the Company, or the Holders of at least 25% in
aggregate Principal Amount at Maturity of the XXXXx at the time outstanding
notify the Company and the Trustee, of the default and the Company does not cure
such default (and such default is not waived) within the time specified in
clause (c) or clause (d) above after actual receipt of such notice. Any such
notice must specify the default, demand that it be remedied and state that such
notice is a "Notice of Default."
Section 5.1 of the Indenture shall not be applicable to the XXXXx.
Section 802. ACCELERATION OF THE XXXXX.
In the event of acceleration of the XXXXx pursuant to Article Five of the
Indenture (other than in the event that the XXXXx have been converted to
semiannual coupon notes following a Tax Event pursuant to Article Seven), the
Issue Price plus accrued Original Issue Discount on the XXXXx shall be due and
payable upon the occurrence of those specified events resulting in such
acceleration as provided in Article Five of the Indenture.
ARTICLE NINE
MISCELLANEOUS
Section 901. CONSENT OF HOLDERS REQUIRED.
In addition to those modifications or amendments requiring the consent of the
Holder of each Outstanding LYON effected thereby specified in Section 9.2 of the
Indenture, no
-33-
35
such Supplemental Indenture shall, without the consent of the Holder of each
outstanding LYON affected thereby:
(1) make any change in the manner or rate of accrual in
connection with Original Issue Discount, reduce the rate of interest referred to
in paragraph 1 of the XXXXx, reduce the rate of interest referred to in Section
701 upon the occurrence of a Tax Event, or extend the time for payment of
Original Issue Discount or interest, if any, on any LYON;
(2) make any LYON payable in money or securities other than that
stated in the LYON;
(3) make any change that adversely affects the right to require
the Company to purchase the XXXXx in accordance with the terms thereof and this
Indenture and Supplemental Indenture.
(4) impair the right to institute suit for the enforcement of
any payment with respect to, or conversion of, the XXXXx.
Section 902. APPLICABILITY OF DEFEASANCE PROVISIONS.
Each of the defeasance and covenant defeasance provisions of Article
Thirteen of the Indenture shall apply to the XXXXx.
Section 903. RESTRICTIVE COVENANTS NOT APPLICABLE.
The covenants set forth in Section 10.8 and Section 10.9 of the Indenture
shall not apply to the XXXXx.
Section 904. REFERENCE TO AND EFFECT ON THE INDENTURE.
This Supplemental Indenture shall be construed as supplemental to the
Indenture and all the terms and conditions of this Supplemental Indenture shall
be deemed to be part of the terms and conditions of the Indenture. Except as set
forth herein, the Indenture heretofore executed and delivered is hereby (i)
incorporated by reference in this Supplemental Indenture and (ii) ratified,
approved and confirmed.
Section 905. WAIVER OF CERTAIN COVENANTS.
The Company may omit in any particular instance to comply with any term,
provision, or condition set forth in Article Three hereof if the Holders of a
majority in principal amount of the outstanding XXXXx shall, by Act of such
Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision, or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of
-34-
36
the Trustee in respect of any such term, provision, or condition shall remain in
full force and effect.
Section 906. SUPPLEMENTAL INDENTURE MAY BE EXECUTED IN COUNTERPARTS.
This instrument 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.
Section 907. EFFECT OF HEADINGS.
The Article and Section headings herein are for convenience only and shall
not affect the construction hereof.
-35-
37
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed all as of the day and year first above written.
Solectron Corporation
By:_______________________________________
Name:
Title:
State Street Bank and Trust Company of
California, N.A., as Trustee
By:_______________________________________
Name:
Title:
-36-
38
EXHIBIT A-1
[FORM OF FACE OF GLOBAL SECURITY]
FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE
AMOUNT OF ORIGINAL ISSUE DISCOUNT WITH RESPECT TO EACH $1,000 OF PRINCIPAL
AMOUNT AT MATURITY OF THIS SECURITY IS $420.88, THE ISSUE DATE IS MAY 8, 2000,
THE YIELD TO MATURITY IS 2 3/4%.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY TO THE ISSUER 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 THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.
A-1
39
SOLECTRON CORPORATION
Liquid Yield Option(TM) Note due 2020
[(Zero Coupon-Senior)]
No. CUSIP:__________
Issue Date: May 8, 2000 Original Issue Discount: $420.88
Issue Price: $579.12 (for each $1,000 Principal
(for each $1,000 Principal Amount at Maturity)
Amount at Maturity)
SOLECTRON CORPORATION, a Delaware corporation, promises to pay to
___________________________ or registered assigns, the Principal Amount at
Maturity of _________________________ Dollars on May 8, 2020.
This Security shall not bear interest except as specified on the other
side of this Security. Original Issue Discount will accrue as specified on the
other side of this Security. This Security is convertible as specified on the
other side of this Security.
A-2
40
Additional provisions of this Security are set forth on the other side
of this Security.
SOLECTRON CORPORATION
By:__________________________
Title:
Attest:
_______________________________
Title:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
STATE STREET BANK AND TRUST COMPANY OF CALIFORNIA, N.A.
as Trustee, certifies that this is one of the Securities
referred to in the within-mentioned Indenture.
By: ________________________
Authorized Signatory
Dated: ________________________
A-3
41
[FORM OF REVERSE SIDE OF SECURITY]
Liquid Yield Option(TM) Note Due 2020
(Zero Coupon-Senior)
1. Interest.
This Security shall not bear interest, except as specified in this
paragraph or in paragraph 10 hereof. If the Principal Amount at Maturity hereof
or any portion of such Principal Amount at Maturity is not paid when due
(whether upon acceleration pursuant to Section 5.2 of the Indenture, upon the
date set for payment of the Redemption Price pursuant to paragraph 5 hereof,
upon the date set for payment of the Purchase Price or Change in Control
Purchase Price pursuant to paragraph 6 hereof or upon the Stated Maturity of
this Security) or if interest due hereon or any portion of such interest is not
paid when due in accordance with paragraph 10 hereof, then in each such case the
overdue amount shall, to the extent permitted by law, bear interest at the rate
of 2 3/4% per annum, compounded semi-annually, 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. The accrual of such interest on overdue
amounts shall be in lieu of, and not in addition to, the continued accrual of
Original Issue Discount.
Original Issue Discount (the difference between the Issue Price and the
Principal Amount at Maturity of the Security), in the period during which a
Security remains outstanding, shall accrue at 2 3/4% per annum, on a semiannual
bond equivalent basis using a 360-day year composed of twelve 30-day months,
from the Issue Date of this Security.
2. Method of Payment.
Subject to the terms and conditions of the Indenture, the Company will
make payments in respect of Redemption Prices, Purchase Prices, Change in
Control Purchase Prices and at Stated Maturity to Holders who surrender
Securities to a Paying Agent to collect such payments in respect of the
Securities. 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.
However, the Company may make such cash payments by check payable in such money.
3. Paying Agent, Conversion Agent and Registrar.
Initially, State Street Bank and Trust Company of California, N.A., a
national banking association organized under the laws of the United States (the
"Trustee"), will act as Paying Agent, Conversion Agent and Security Registrar.
The Company or any of its Subsidiaries or any of their Affiliates may act as
Paying Agent, Conversion Agent, Security Registrar or co-registrar.
42
4. Indenture.
The Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of May 8, 2000 (herein called the
"Indenture," which term shall have the meaning assigned to it in such
instrument), between the Company and State Street Bank and Trust Company of
California, N.A., as Trustee (herein called the "Trustee," which term includes
any successor trustee under the Indenture), and reference is hereby made to the
Indenture and all indentures supplemental thereto for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee, and the Holders of Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof, limited in
aggregate Principal Amount at Maturity to $3,500,000,000, subject to Section
101(b) of the Supplemental Indenture, and is issued pursuant to a Supplemental
Trust Indenture supplementing the Indenture, dated as of May 8, 2000, from the
Company to Trustee relating to the issuance of the Liquid Yield Option(TM) Notes
due 2020 (Zero Coupon-Senior) of this series (the "Supplemental Indenture").
Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture and the Supplemental Indenture. The Securities are
subject to all such terms, and Holders are referred to the Indenture, the
Supplemental Indenture and the Trust Indenture Act for a statement of those
terms.
The Securities are general unsecured obligations of the Company. The
Indenture does not limit other indebtedness of the Company, secured or
unsecured.
5. Redemption at the Option of the Company.
No sinking fund is provided for the Securities. The Securities are
redeemable as a whole, or from time to time in part, at any time at the option
of the Company at the Redemption Prices set forth below, provided that the
Securities are not redeemable prior to May 8, 2003.
The table below shows Redemption Prices of a Security per $1,000
Principal Amount at Maturity on the dates shown below and at Stated Maturity,
which prices reflect accrued Original Issue Discount calculated to each such
date. The Redemption Price of a Security redeemed between such dates shall
include an additional amount reflecting the additional Original Issue Discount
accrued since the next preceding date in the table.
(TM) Trademark of Xxxxxxx Xxxxx & Co., Inc.
-2-
43
(2)
(1) Accrued Original (3)
LYON Issue Discount Redemption Price
Redemption Date Issue Price at 2 3/4% (1) + (2)
--------------- ----------- --------- ---------
May 8, 2003........................... $ 579.12 $ 49.45 $ 628.57
May 8, 2004........................... 579.12 66.85 645.97
May 8, 2005........................... 579.12 84.74 663.86
May 8, 2006........................... 579.12 103.12 682.24
May 8, 2007........................... 579.12 122.01 701.13
May 8, 2008........................... 579.12 141.43 720.55
May 8, 2009........................... 579.12 161.38 740.50
May 8, 2010........................... 579.12 181.88 761.00
May 8, 2011........................... 579.12 202.95 782.07
May 8, 2012........................... 579.12 224.60 803.72
May 8, 2013........................... 579.12 246.86 825.98
May 8, 2014........................... 579.12 269.73 848.85
May 8, 2015........................... 579.12 293.23 872.35
May 8, 2016........................... 579.12 317.39 896.51
May 8, 2017........................... 579.12 342.21 921.33
May 8, 2018........................... 579.12 367.72 946.84
May 8, 2019........................... 579.12 393.94 973.06
At Stated Maturity.................... $ 579.12 $ 420.88 $ 1,000.00
If converted to a semiannual coupon note following the occurrence of
a Tax Event, this Security will be redeemable at the Restated Principal Amount
plus accrued and unpaid interest from the date of such conversion through the
Redemption Date; but in no event will this Security be redeemable before May 8,
2003.
6. Purchase By the Company at the Option of the Holder.
Subject to the terms and conditions of the Supplemental Indenture,
the Company shall become obligated to purchase, at the option of the Holder, the
Securities held by such Holder on the following Purchase Dates and at the
following Purchase Prices per $1,000 Principal Amount at Maturity, upon delivery
of a Purchase Notice containing the information set forth in the Supplemental
Indenture, at any time from the opening of business on the date that is 20
Business Days prior to such Purchase Date until the close of business on such
Purchase Date and upon delivery of the Securities to the Paying Agent by the
Holder as set forth in the Indenture.
Purchase Date Purchase Price
------------- --------------
May 8, 2003......................... $ 628.57
May 8, 2010......................... $ 761.00
-3-
44
The Purchase Price (equal to the Issue Price plus accrued Original
Issue Discount to the Purchase Date) may be paid, at the option of the Company,
in cash or by the issuance and delivery of shares of Common Stock of the
Company, or in any combination thereof.
If prior to a Purchase Date this Security has been converted to a
semiannual coupon note following the occurrence of a Tax Event, the Purchase
Price will be equal to the Restated Principal Amount plus accrued and unpaid
interest from the date of conversion to the Purchase Date.
At the option of the Holder and subject to the terms and conditions
of the Supplemental Indenture, the Company shall become obligated to purchase
the Securities held by such Holder 35 Business Days after the occurrence of a
Change in Control of the Company occurring on or prior to May 8, 2003 for a
Change in Control Purchase Price equal to the Issue Price plus accrued Original
Issue Discount to the Change in Control Purchase Date, which Change in Control
Purchase Price shall be paid in cash. If prior to a Change in Control Purchase
Date this Security has been converted to a semiannual coupon note following the
occurrence of a Tax Event, the Change in Control Purchase Price shall be equal
to the Restated Principal Amount plus accrued and unpaid interest from the date
of conversion to the Change in Control Purchase Date.
Holders have the right to withdraw any Purchase Notice or Change in
Control Purchase Notice, as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture.
If cash (and/or securities if permitted under the Supplemental
Indenture) sufficient to pay the Purchase Price or Change in Control Purchase
Price, as the case may be, of all Securities or portions thereof to be purchased
as of the Purchase Date or the Change in Control Purchase Date, as the case may
be, is deposited with the Paying Agent on the Business Day following the
Purchase Date or the Change in Control Purchase Date, as the case may be,
Original Issue Discount ceases to accrue on such Securities (or portions
thereof) immediately after such Purchase Date or Change in Control Purchase
Date, as the case may be, and the Holder thereof shall have no other rights as
such (other than the right to receive the Purchase Price or Change in Control
Purchase Price, as the case may be, upon surrender of such Security).
7. Notice of Redemption.
Notice of redemption will be mailed at least 15 days but not more
than 60 days before the Redemption Date to each Holder of Securities to be
redeemed at the Holder's registered address. If money sufficient to pay the
Redemption Price of all Securities (or portions thereof) to be redeemed on the
Redemption Date is deposited with the Paying Agent prior to or on the Redemption
Date, immediately after such Redemption Date Original Issue Discount ceases to
accrue on such Securities or portions thereof. Securities in denominations
larger than $1,000 of Principal Amount at Maturity may be redeemed in part but
only in integral multiples of $1,000 of Principal Amount at Maturity.
-4-
45
8. Conversion.
Subject to the next two succeeding sentences, a Holder of a Security
may convert it into Common Stock of the Company at any time before the close of
business on May 8, 2020. If the Security is called for redemption, the Holder
may convert it at any time before the close of business on the Redemption Date.
A Security in respect of which a Holder has delivered a Purchase Notice or
Change in Control Purchase Notice exercising the option of such Holder to
require the Company to purchase such Security may be converted only if such
notice of exercise is withdrawn in accordance with the terms of the Indenture
and the Supplemental Indenture.
The initial Conversion Rate is 12.3309 shares of Common Stock per
$1,000 Principal Amount at Maturity, subject to adjustment in certain events
described in the Indenture. The Company will deliver cash or a check in lieu of
any fractional share of Common Stock.
In the event the Company exercises its option pursuant to Section
701 of the Supplemental Indenture to have interest in lieu of Original Issue
Discount accrue on the Security following a Tax Event, the Holder will be
entitled on conversion to receive the same number of shares of Common Stock such
Holder would have received if the Company had not exercised such option. If the
Company exercises such option, Securities surrendered for conversion during the
period from the close of business on any Regular Record Date next preceding any
Interest Payment Date to the opening of business of such Interest Payment Date
(except Securities to be redeemed on a date within such period) must be
accompanied by payment of an amount equal to the interest thereon that the
registered Holder is to receive. Except where Securities surrendered for
conversion must be accompanied by payment as described above, no interest on
converted Securities will be payable by the Company on any Interest Payment Date
subsequent to the date of conversion.
To convert a Security, a Holder must (1) complete and manually sign
the conversion notice below (or complete and manually sign a facsimile of such
notice) and deliver such notice to the Conversion Agent, (2) surrender the
Security to the Conversion Agent, (3) furnish appropriate endorsements and
transfer documents if required by the Conversion Agent, the Company or the
Trustee and (4) pay any transfer or similar tax, if required.
A Holder may convert a portion of a Security if the Principal Amount
at Maturity of such portion is $1,000 or an integral multiple of $1,000. No
payment or adjustment will be made for dividends on the Common Stock except as
provided in the Indenture. On conversion of a Security, that portion of accrued
Original Issue Discount (or interest if the Company has exercised its option
provided for in paragraph 10 hereof) attributable to the period from the Issue
Date (or, if the Company has exercised the option referred to in paragraph 10
hereof, the later of (x) the date of such exercise and (y) the date on which
interest was last paid) through the Conversion Date with respect to the
converted Security shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the Holder thereof through the delivery of
the Common Stock (together with the cash payment, if any, in lieu of fractional
shares) in exchange for the Security being converted pursuant to the terms
hereof; and the fair market value of such shares of Common Stock (together with
any such cash payment in lieu of fractional shares) shall be treated as issued,
to the extent
-5-
46
thereof, first in exchange for Original Issue Discount (or interest, if the
Company has exercised its option provided for in paragraph 10 hereof) accrued
through the Conversion Date, and the balance, if any, of such fair market value
of such Common Stock (and any such cash payment) shall be treated as issued in
exchange for the Issue Price of the Security being converted pursuant to the
provisions hereof.
The Conversion Rate will be adjusted for dividends or distributions
on Common Stock payable in Common Stock or other Capital Stock; subdivisions,
combinations or certain reclassifications of Common Stock; distributions to all
holders of Common Stock of certain rights to purchase Common Stock for a period
expiring within 60 days at less than the Quoted Price at the Time of
Determination; and distributions to such holders of assets or debt securities of
the Company or certain rights to purchase securities of the Company (excluding
certain cash dividends or distributions). However, no adjustment need be made if
Holders may participate in the transaction or in certain other cases. The
Company from time to time may voluntarily increase the Conversion Rate.
If the Company is a party to a consolidation, merger or binding
share exchange or a transfer of all or substantially all of its assets, or upon
certain distributions described in the Indenture, the right to convert a
Security into Common Stock may be changed into a right to convert it into
securities, cash or other assets of the Company or another Person.
9. Conversion Arrangement on Call for Redemption.
Any Securities called for redemption, unless surrendered for
conversion before the close of business on the Redemption Date, may be deemed to
be purchased from the Holders of such Securities at an amount not less than the
Redemption Price, by one or more investment bankers or other purchasers who may
agree with the Company to purchase such Securities from the Holders, to convert
them into Common Stock of the Company and to make payment for such Securities to
the Trustee in trust for such Holders.
10. Tax Event
(a) From and after (i) the date (the "Tax Event Date") of the
occurrence of a Tax Event and (ii) the date the Company exercises such option,
whichever is later (the "Option Exercise Date"), at the option of the Company,
interest in lieu of future Original Issue Discount shall accrue at the rate of 2
3/4% per annum on a principal amount per Security (the "Restated Principal
Amount") equal to the Issue Price plus Original Issue Discount accrued through
the Option Exercise Date and shall be payable semiannually on May 8 and November
8 of each year (each an "Interest Payment Date") to holders of record at the
close of business on April 23 and October 24 (each a "Regular Record Date") or
immediately preceding such Interest Payment Date. Interest will be computed on
the basis of a 360-day year comprised of twelve 30-day months and will accrue
from the most recent date to which interest has been paid or, if no interest has
been paid, from the Option Exercise Date.
-6-
47
(b) Interest on any Security that is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person
in whose name that Security is registered at the close of business on the
Regular Record Date for such interest at the office or agency of the Company
maintained for such purpose. Each installment of interest on any Security shall
be paid in same-day funds by transfer to an account maintained by the payee
located inside the United States.
(c) Except as otherwise specified with respect to the Securities,
any Defaulted Interest on any Security shall forthwith cease to be payable to
the registered Holder thereof on the relevant Regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the Company
as provided for in Section 702(b) of the Supplemental Indenture.
11. Denominations; Transfer; Exchange.
The Securities are in fully registered form, without coupons, in
denominations of $1,000 of Principal Amount at Maturity and integral multiples
of $1,000. A Holder may transfer or exchange Securities in accordance with the
Indenture. The Security Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Security Registrar need
not transfer or exchange any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security not to be
redeemed) or any Securities in respect of which a Purchase Notice or Change in
Control Purchase Notice has been given and not withdrawn (except, in the case of
a Security to be purchased in part, the portion of the Security not to be
purchased) or any Securities for a period of 15 days before a selection of
Securities to be redeemed.
12. Persons Deemed Owners.
The registered Holder of this Security may be treated as the owner
of this Security for all purposes.
13. Amendment; Waiver.
Subject to certain exceptions set forth in the Indenture and the
Supplemental Indenture, (i) the Indenture, the Supplemental Indenture or the
Securities may be amended with the written consent of the Holders of at least a
majority in aggregate Principal Amount at Maturity of the Securities at the time
outstanding and (ii) certain defaults may be waived with the written consent of
the Holders of a majority in aggregate Principal Amount at Maturity of the
Securities at the time outstanding. Subject to certain exceptions set forth in
the Indenture, without the consent of any Holder, the Company and the Trustee
may amend the Indenture, the Supplemental Indenture or the Securities as set
forth in the Indenture.
-7-
48
14. Defaults.
Events of Default include (i) if the Securities have been converted
to semiannual coupon notes following a Tax Event, default in the payment of
interest which default continues for a period of 30 days; (ii) default in
payment of the Principal Amount at Maturity (or, if the Securities have been
converted to semiannual coupon notes following a Tax Event, the Restated
Principal Amount), Issue Price plus accrued Original Issue Discount, Redemption
Price, Purchase Price or Change in Control Purchase Price, as the case may be,
in respect of the Securities when the same becomes due and payable; (iii)
failure by the Company to comply with other agreements in the Indenture, the
Supplemental Indenture or the Securities, subject to notice and lapse of time;
(iv) failure of the Company to make any payment by the end of any applicable
grace period after maturity of Debt in an amount in excess of $100,000,000, or
(b) the acceleration of Debt in an amount in excess of $100,000,000 because of a
default with respect to such Debt without such Debt having been discharged or
such acceleration having been cured, waived, rescinded or annulled, subject to
notice and lapse of time; provided, however, that if any such failure or
acceleration referred to in (a) or (b) above shall cease or be cured, waived,
rescinded or annulled, then the Event of Default by reason thereof shall be
deemed not to have occurred; and (v) certain events of bankruptcy or insolvency.
If an Event of Default occurs and is continuing, the Trustee, or the Holders of
at least 25% in aggregate Principal Amount at Maturity of the Securities at the
time outstanding, may declare all the Securities to be due and payable
immediately. Certain events of bankruptcy or insolvency are Events of Default
which will result in the Securities becoming due and payable immediately upon
the occurrence of such Events of Default.
15. Trustee Dealings with the Company.
Subject to certain limitations imposed by the Trust Indenture Act,
the Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.
16. No Recourse Against Others.
A director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under
the Securities or the Indenture or the Supplemental Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By
accepting a Security, each Holder waives and releases all such liability. The
waiver and release are part of the consideration for the issue of the
Securities.
17. Authentication.
This Security shall not be valid until an authorized officer of the
Trustee manually signs the Trustee's Certificate of Authentication on the other
side of this Security.
-8-
49
18. Abbreviations.
Customary abbreviations may be used in the name of a Holder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).
19. GOVERNING LAW.
THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE, THE
SUPPLEMENTAL INDENTURE AND THIS SECURITY, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS.
---------------
The Company will furnish to any Holder upon written request and
without charge a copy of the Supplemental Indenture which has in it the text of
this Security in larger type. Requests may be made to:
Solectron Corporation
000 Xxxxxxxxx Xxxxx
Xxxxxxxx, Xxxxxxxxxx 00000
Attention: Chief Financial Officer
-9-
50
ASSIGNMENT FORM
To assign this Security, fill in the form below:
I or we assign and transfer this Security to
________________________________________________
________________________________________________
(Insert assignee's soc. sec. or tax ID no.)
________________________________________________
________________________________________________
________________________________________________
(Print or type assignee's name, address and zip code)
and irrevocably appoint ____________________ agent to
transfer this Security on the books of the Company. The
agent may substitute another to act for him.
Date: _____________________
Your Signature:_________________________________________________________
____________________________________________________________________________
(Sign exactly as your name appears on the other side of this Security)
Signature(s) must be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership in
an approved signature guarantee medallion program) pursuant to Securities and
Exchange Commission Rule 17Ad-15.
-10-
51
CONVERSION NOTICE
To convert this Security into Common Stock of the Company, check the box:
[ ]
To convert only part of this Security, state the Principal Amount at Maturity to
be converted (which must be $1,000 or an integral multiple of $1,000)
$__________________________
If you want the stock certificate made out in another Person's name, fill in the
form below:
________________________________________________________________________________
________________________________________________________________________________
(Insert other Person's soc. sec. or tax ID no.)
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type assignee's name, address and zip code)
Date: _______________________
Your Signature:_________________________________________________________
________________________________________________________________________
(Sign exactly as your name appears on the other side of this Security)
Signature(s) must be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program) pursuant to
Securities and Exchange Commission Rule 17Ad-15.
-11-
