EXHIBIT 4.1
==============================================
ST. XXXX BANCORP, INC.
and
XXXXXX TRUST AND SAVINGS BANK, Trustee
-------------
INDENTURE
Dated as of _______________, 1997
-------------
Providing for Issuance of
Debt Securities in Series
===============================================
Reconciliation and tie between Indenture, dated as of ____________, 1996, and
the Trust Indenture Act of 1939, as amended.
Trust Indenture Act Indenture
of 1939 Section Section
310(a)(1) 6.12
(a)(2) 6.12
(a)(3) TIA
(a)(4) Not Applicable
TIA
(a)(5) 6.10; 6.12; TIA
(b) 6.10
(c) Not Applicable
311(a) TIA
(b) TIA
(c) Not Applicable
312(a) 6.8; 6.16
(b) 6.16; TIA
(c) 6.16; TIA
313(a) 6.7; 8.7; TIA
(b) TIA
(c) 1.6; TIA
(d) TIA
314(a) 9.6; 9.7; TIA
(b) Not Applicable
(c)(1) 1.2
(c)(2) 1.2
(c)(3) Not Applicable
(d) Not Applicable
(e) 1.2
(f) Not Applicable
315(a) 6.1; TIA
(b) 6.6
(c) TIA
(d)(1) 6.1; TIA
(d)(2) 6.1; TIA
(d)(3) 6.1; TIA
(e) TIA
316(a)(last sentence) 1.1
(a)(1)(A) 5.2; 5.8
(a)(1)(B) 5.7
(b) 5.9; 5.10
(c) 1.4; TIA
317(a)(1) 5.3
(a)(2) 5.4
(b) 9.3
318(a) 1.11
(b) TIA
(c) 1.11; TIA
-----------------------
This reconciliation and tie section does not constitute part
of the Indenture.
TABLE OF CONTENTS
ARTICLE 1 Definitions and Other Provisions of General
Application........................................................ 1
Section 1.1 Definitions....................................... 1
Section 1.2 Compliance Certificates and Opinions.............. 9
Section 1.3 Form of Documents Delivered to Trustee............ 10
Section 1.4 Acts of Holders................................... 11
Section 1.5 Notices, etc., to Trustee and Company............. 12
Section 1.6 Notice to Holders; Waiver......................... 12
Section 1.7 Headings and Table of Contents.................... 13
Section 1.8 Successors and Assigns............................ 13
Section 1.9 Separability...................................... 13
Section 1.10 Benefits of Indenture............................. 13
Section 1.11 Governing Law..................................... 14
Section 1.12 Legal Holidays.................................... 14
Section 1.13 Incorporators, Stockholders, Officers and
Directors of the Company Exempt from
Individual Liability. 14
ARTICLE 2 Security Forms.................................... 15
Section 2.1 Forms Generally................................... 15
Section 2.2 Form of Trustee's Certificate of
Authentication.................................... 15
Section 2.3 Securities in Global Form......................... 15
ARTICLE 3 The Securities.................................... 17
Section 3.1 Amount Unlimited; Issuable in Series.............. 17
Section 3.2 Denominations..................................... 20
Section 3.3 Execution, Authentication, Delivery and Dating.... 20
Section 3.4 Temporary Securities.............................. 23
Section 3.5 Registration, Registration of Transfer and
Exchange.......................................... 24
Section 3.6 Replacement Securities............................ 27
Section 3.7 Payment of Interest; Interest Rights Preserved.... 28
Section 3.8 Persons Deemed Owners............................. 29
Section 3.9 Cancellation...................................... 30
Section 3.10 Computation of Interest........................... 30
Section 3.11 CUSIP Numbers..................................... 30
ARTICLE 4 Satisfaction and Discharge; Defeasance............ 30
Section 4.1 Termination of Company's Obligations Under
-i-
the Indenture..................................... 30
Section 4.2 Application of Trust Funds........................ 32
Section 4.3 Applicability of Defeasance Provisions............ 32
Section 4.4 Defeasance and Discharge.......................... 32
Section 4.5 Covenant Defeasance............................... 33
Section 4.6 Conditions to Defeasance or Covenant
Defeasance........................................ 33
Section 4.7 Deposited Money and Government Obligations
to be Held in Trust............................... 35
Section 4.8 Transfers and Distribution at Company Request..... 36
ARTICLE 5 Defaults and Remedies............................. 37
Section 5.1 Events of Default................................. 37
Section 5.2 Acceleration; Rescission and Annulment............ 38
Section 5.3 Collection of Indebtedness and Suits for
Enforcement by Trustee............................ 39
Section 5.4 Trustee May File Proofs of Claim.................. 40
Section 5.5 Trustee May Enforce Claims Without
Possession of Securities.......................... 40
Section 5.6 Delay or Omission not Waiver...................... 40
Section 5.7 Waiver of Past Defaults........................... 40
Section 5.8 Control by Majority............................... 40
Section 5.9 Limitation on Suits by Holders.................... 41
Section 5.10 Rights of Holders to Receive Payment.............. 42
Section 5.11 Application of Money Collected.................... 42
Section 5.12 Restoration of Rights and Remedies................ 42
Section 5.13 Rights and Remedies Cumulative.................... 42
ARTICLE 6 The Trustee....................................... 43
Section 6.1 Certain Duties and Responsibilities............... 43
Section 6.2 Rights of Trustee................................. 44
Section 6.3 Trustee May Hold Securities....................... 46
Section 6.4 Money Held in Trust............................... 46
Section 6.5 Trustee's Disclaimer.............................. 46
Section 6.6 Notice of Defaults................................ 46
Section 6.7 Reports by Trustee to Holders..................... 47
Section 6.8 Securityholder Lists.............................. 47
Section 6.9 Compensation and Indemnity........................ 47
Section 6.10 Replacement of Trustee............................ 48
Section 6.11 Acceptance of Appointment by Successor............ 50
Section 6.12 Eligibility; Disqualification..................... 51
Section 6.13 Merger, Conversion, Consolidation or
Succession to Business............................ 52
Section 6.14 Appointment of Authenticating Agent............... 52
Section 6.15 Trustee's Application for Instructions from
the Company....................................... 54
-ii-
Section 6.16 Preservation of Information; Communications
to Holders........................................ 54
ARTICLE 7 Consolidation, Merger or Sale by the Company...... 55
Section 7.1 Consolidation, Merger or Sale of Assets
Permitted......................................... 55
ARTICLE 8 Supplemental Indentures........................... 56
Section 8.1 Supplemental Indentures Without Consent of Holders 56
Section 8.2 With Consent of Holders........................... 57
Section 8.3 Compliance with Trust Indenture Act............... 58
Section 8.4 Execution of Supplemental Indentures.............. 58
Section 8.5 Effect of Supplemental Indentures................. 58
Section 8.6 Reference in Securities to Supplemental Indentures 59
Section 8.7 Notice to Holders................................. 59
ARTICLE 9 Covenants......................................... 59
Section 9.1 Payment of Principal, Premium, if any, and
Interest.......................................... 59
Section 9.2 Maintenance of Office or Agency................... 59
Section 9.3 Money for Securities to Be Held in Trust;
Unclaimed Money................................... 60
Section 9.4 Corporate Existence............................... 62
Section 9.5 Insurance......................................... 62
Section 9.6 Reports by the Company............................ 62
Section 9.7 Annual Review Certificate; Notice of Default...... 63
Section 9.8 Provision of Financial Statements................. 63
Section 9.9 Limitation on Liens............................... 64
Section 9.10 Ownership of Material Subsidiary Stock............ 66
Section 9.11 Transactions with Affiliates...................... 67
Section 9.12 Limitation on Sale or Issuance, etc............... 67
Section 9.13 Waiver of Certain Covenants....................... 68
ARTICLE 10 Redemption........................................ 68
Section 10.1 Applicability of Article......................... 68
Section 10.2 Election to Redeem; Notice to Trustee............ 68
Section 10.3 Selection of Securities to Be Redeemed........... 69
Section 10.4 Notice of Redemption............................. 69
Section 10.5 Deposit of Redemption Price...................... 70
Section 10.6 Securities Payable on Redemption Date............ 70
Section 10.7 Securities Redeemed in Part...................... 71
-iii-
ARTICLE 11 Sinking Funds.................................... 71
Section 11.1 Applicability of Article......................... 71
Section 11.2 Satisfaction of Sinking Fund Payments with
Securities....................................... 72
Section 11.3 Redemption of Securities for Sinking
Fund............................................. 72
-iv-
INDENTURE, dated as of _______________, 1997, from ST. XXXX BANCORP, INC.,
a Delaware corporation (the "Company"), and XXXXXX TRUST AND SAVINGS BANK, as
Trustee (the "Trustee").
Recitals
--------
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its debentures, notes
or other evidences of indebtedness (the "Securities") to be issued in one or
more series as herein provided.
All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.
This Indenture is subject to the provisions of the Trust Indenture Act that
are required to be a part of this Indenture and, to the extent applicable, shall
be governed by such provisions.
For and in consideration of the premises and the purchase of the Securities
by the Holders thereof, it is mutually covenanted and agreed, for the equal and
ratable benefit of the Holders of the Securities or of any series thereof, as
follows:
ARTICLE 1
Definitions and Other Provisions
--------------------------------
of General Application
----------------------
Section 1.1 Definitions. (a) For all purposes of this Indenture, except as
-----------
otherwise expressly provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(3) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles, and, except as otherwise herein expressly provided, the term
"generally
accepted accounting principles" with respect to any computation required or
permitted hereunder shall mean such principles as are generally accepted at
the date of such computation; and
(4) the words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.
"Affiliate" of any specified Person means any other Person directly or
---------
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.
"Bank" means (a) St. Xxxx Federal Bank For Savings, a federally chartered
----
stock savings institution, so long as it is a Subsidiary of the Company, or any
successor thereto so long as such successor is a Subsidiary of the Company; and
(b) any bank or savings or depository institution that is or shall become an
Affiliate of the Company.
"Authenticating Agent" means any authenticating agent appointed by the
--------------------
Trustee pursuant to Section 6.14.
"Board" or "Board of Directors" means the Board of Directors of the
----- ------------------
Company, an Executive Committee thereof or any other duly authorized committee
thereof.
"Board Resolution" means a copy of a resolution of the Board of Directors,
----------------
certified by the Corporate Secretary or an Assistant Secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification, and delivered to the Trustee.
"Business Day", when used with respect to any Place of Payment or any other
------------
particular location referred to in this Indenture or in the Securities, means,
unless otherwise specified with respect to any Securities pursuant to Section
3.1, each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in that Place of Payment or particular location are
authorized or obligated by law, executive order or regulation to close.
-2-
"Commission" means the Securities and Exchange Commission, as from time to
----------
time constituted, or, if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.
"Company" means the Person named as the Company in the first paragraph of
-------
this Indenture until a successor corporation shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Company" means such
-------
successor corporation.
"Company Order" and "Company Request" mean, respectively, a written order
------------- ---------------
or request signed in the name of the Company by the Chairman of the Board, the
President, any Executive Vice President or any Senior Vice President, signing
alone, by any Vice President signing together with the Treasurer, any Assistant
Treasurer, the Corporate Secretary or any Assistant Secretary of the Company,
or, with respect to Sections 3.3, 3.4, 3.5 and 6.1, any other employee of the
Company named in an Officers' Certificate and delivered to the Trustee.
"Corporate Trust Office" means the office of the Trustee in which at any
----------------------
particular time its corporate trust business shall be principally administered,
which office at the date hereof is located at 000 Xxxx Xxxxxx Xxxxxx, Xxxxxxx,
Xxxxxxxx 00000, Attention: Indenture Trust Division.
"corporation" includes corporations, associations, partnerships, limited
-----------
liability companies, joint stock companies and business trusts.
"Default" means any event which is, or after notice or passage of time, or
-------
both, would be, an Event of Default.
"Depositary", when used with respect to the Securities of or within any
----------
series issuable or issued in whole or in part in global form, means the Person
designated as Depositary by the Company pursuant to Section 3.1 until a
successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter shall mean or include each Person
which is then a Depositary hereunder, and if at any time there is more than one
such Person, shall be a collective reference to such Persons.
"Dollar" or "$" means the coin or currency of the United States of America
------ -
as at the time of payment is legal tender for the payment of public and private
debts.
-3-
"Government Obligations" means securities which are (i) direct obligations
----------------------
of the United States for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of the United States, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States, each of which are not callable or redeemable at the option of the issuer
thereof, and shall also include (A) a depositary receipt issued by a bank or
trust company as custodian with respect to any such Government Obligation or a
specific payment of interest on or principal of any such Government Obligation
held by such custodian for the account of the holder of a depositary receipt,
provided, however, that (except as required by law) such custodian is not
-------- -------
authorized to make any deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian in respect of the
Government Obligation evidenced by such depositary receipt, (B) securities that
are backed by United States government obligations as collateral under an
arrangement by which the interest and principal payments on the collateral
generally flow immediately through to the holder of the security, and (C) money
market funds, so long as such funds are rated Aaa by Moody's (so long as Xxxxx'x
is a rating agency) and AAAm by Standard & Poor's (so long as Standard & Poor's
is a rating agency), and any other funds for which the Trustee or an Affiliate
of the Trustee serves as an investment advisor, administrator, shareholder
servicing agent and/or custodian or subcustodian, provided that any shares of
such funds have a credit rating of at least Aaa by Moody's (so long as Xxxxx'x
is a rating agency) and AAAm by Standard & Poor's (so long as Standard & Poor's
is a rating agency) and notwithstanding that the Trustee or an Affiliate of the
Trustee charges and collects fees and expenses from such funds for services
rendered. The Company hereby specifically authorizes the Trustee or an
Affiliate of the Trustee to charge and collect all fees and expenses from such
funds for services rendered to such funds.
"Holder" means a Person in whose name a Security is registered on the
------
Register.
"Indenture" means this instrument as originally executed or as it may from
---------
time to time be supplemented, amended or modified by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and, unless the context otherwise requires, shall include the terms of a
particular series of Securities established as contemplated by Section 3.1.
-4-
"interest", when used with respect to an Original Issue Discount Security
--------
which by its terms bears interest only after Maturity, means interest payable
after Maturity.
"Interest Payment Date", when used with respect to any Security, means the
---------------------
Stated Maturity of an installment of interest on such Security.
"Material Subsidiary" means, at any particular time, any Subsidiary that,
-------------------
together with any Subsidiaries of such Subsidiary (i) accounted for more than
five percent (5%) of the consolidated income of the Company for its most
recently completed fiscal year, or (ii) owned more than five percent (5%) of the
consolidated assets of the Company as at the end of such fiscal year, all as
calculated in accordance with generally accepted accounting principles.
"Maturity", where used with respect to any Security, means the date on
--------
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.
"Officer" means the Chairman of the Board of Directors, the President, any
-------
Executive Vice President, any Senior Vice President, any Vice President, the
Corporate Secretary, any Assistant Secretary, the Treasurer or any Assistant
Treasurer of the Company.
"Officers' Certificate" means a certificate signed by the Chairman of the
---------------------
Board, the President, any Executive Vice President or any Senior Vice President,
signing alone, or by any Vice President signing together with the Corporate
Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of
the Company.
"Opinion of Counsel" means a written opinion of legal counsel, who may be
------------------
(a) counsel for the Company or (b) other counsel designated by the Company or
the Trustee. Any counsel for the Company may be an employee of the Company.
"Original Issue Discount Security" means any Security which provides for an
--------------------------------
amount less than the stated principal thereof to be due and payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 5.2.
"Outstanding", when used with respect to Securities, means, as of the date
-----------
of determination, all Securities theretofore authenticated and delivered under
this Indenture, except:
-5-
(i) Securities theretofore cancelled by the Trustee or delivered to
the Trustee for cancellation;
(ii) Securities, or portions thereof, for whose payment or redemption
money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall act as its own
Paying Agent) for the Holders of such Securities; provided, however, that,
-------- -------
if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture and such Securities or provisions
therefor satisfactory to the Trustee have been made;
(iii) Securities, except to the extent provided in Sections 4.4 and
4.5, with respect to which the Company has effected defeasance and/or
covenant defeasance as provided in Article 4; and
(iv) Securities which have been paid pursuant to Section 3.6 or in
exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser
in whose hands such Securities are valid obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
-------- -------
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, or whether
sufficient funds are available for redemption or for any other purpose, and for
the purpose of making the calculations required by Section 313 of the Trust
Indenture Act, the principal amount of any Original Issue Discount Securities
that may be counted in making such determination or calculation and that shall
be deemed to be Outstanding for such purpose shall be equal to the amount of
principal thereof that would be (or shall have been declared to be) due and
payable, at the time of such determination, upon a declaration of acceleration
of the maturity thereof pursuant to Section 5.2, and Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of the Company
or of such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in making
such calculation or in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded
-6-
and Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Securities and that the pledgee
is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor.
"Paying Agent" means any Person authorized by the Company to pay the
------------
principal of, premium, if any, or interest on any Securities on behalf of the
Company.
"Periodic Offering" means an offering of Securities of a series from time
-----------------
to time, the specific terms of which Securities, including, without limitation,
the rate or rates of interest or formula for determining the rate or rates of
interest thereon, if any, the Stated Maturity or Stated Maturities thereof, the
original issue date or dates thereof, the redemption provisions, if any, with
respect thereto, and any other terms specified as contemplated by Section 3.1
with respect thereto, are to be determined by the Company upon the issuance of
such Securities.
"Person" means any individual, corporation, partnership, joint venture,
------
association, limited liability company, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"Place of Payment", when used with respect to the Securities of or within
----------------
any series, means the place or places where, subject to the provisions of
Section 9.2, the principal of, premium, if any, and interest on such Securities
are payable as specified as contemplated by Section 3.1.
"Predecessor Security" of any particular Security means every previous
--------------------
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.
"Redemption Date", when used with respect to any Security to be redeemed,
---------------
means the date fixed for such redemption by or pursuant to this Indenture.
"Redemption Price", when used with respect to any Security to be redeemed
----------------
in whole or in part, means the price at which it is to be redeemed pursuant to
this Indenture.
-7-
"Regular Record Date" for the interest payable on any Interest Payment Date
-------------------
on the Securities of or within any series means the date specified for that
purpose as contemplated by Section 3.1.
"Responsible Officer", when used with respect to the Trustee, shall mean
-------------------
the chairman or any vice chairman of the board of directors, the chairman or any
vice chairman of the executive committee of the board of directors, the chairman
of the trust committee, the president, any senior vice president, any vice
president, any assistant vice president, the secretary, the treasurer, any
assistant treasurer, the cashier, any assistant cashier, any senior trust
officer, any trust officer, the controller, any assistant controller, or any
other officer of the Trustee customarily performing functions similar to those
performed by the persons who at the time shall be such officers, respectively,
and also means, with respect to a particular corporate trust matter, any other
officer to whom such corporate trust matter is referred because of his knowledge
of and familiarity with the particular subject.
"Security" or "Securities" has the meaning stated in the first recital of
-------- ----------
this Indenture and more particularly means any Security or Securities of the
Company issued, authenticated and delivered under this Indenture.
"Special Record Date" for the payment of any Defaulted Interest on the
-------------------
Securities of any series means a date fixed by the Trustee pursuant to Section
3.7.
"Stated Maturity", when used with respect to any Security or any
---------------
installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such installment of principal or interest is due and payable.
"Subsidiary" means any corporation or Bank of which the Company at the time
----------
owns or controls, directly or indirectly, more than 50% of the shares of
outstanding stock having general voting power under ordinary circumstances to
elect a majority of the Board of Directors of such corporation (irrespective of
whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency).
"Trust Indenture Act" means the Trust Indenture Act of 1939 and any
-------------------
reference herein to such Act or a particular provision thereof shall mean such
Act or provision, as the case may be, as amended or replaced from time to time
or as supplemented from
-8-
time to time by rules or regulations adopted by the Commission under or in
furtherance of the purposes of such Act or provision, as the case may be.
"Trustee" means the party named as such in the first paragraph of this
-------
Indenture until a successor Trustee replaces it pursuant to the applicable
provisions of this Indenture, and thereafter "Trustee" means or includes such
-------
successor Trustee and if, at any time, there is more than one Trustee, "Trustee"
as used with respect to the Securities of any series shall mean the Trustee with
respect to the Securities of that series.
"United States" means, unless otherwise specified with respect to the
-------------
Securities of any series as contemplated by Section 3.1, the United States of
America (including the States and the District of Columbia), its territories,
its possessions and other areas subject to its jurisdiction.
(b) The following terms shall have the meanings specified in the Sections
referred to opposite such term below:
Term Section
---- -------
"Act" 1.4(a)
"Bankruptcy Law" 5.1
"covenant defeasance" 4.5
"Custodian" 5.1
"Defaulted Interest" 3.7(b)
"defeasance" 4.4
"Event of Default" 5.1
"Exchange Act" 9.6(a)
"Register" 3.5
"Registrar" 3.5
Section 1.2 Compliance Certificates and Opinions. Upon any application or
------------------------------------
request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officers'
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion
of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.
-9-
Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than pursuant to Sections 2.3,
3.3 and 9.7) shall include:
(1) a statement that each individual signing such certificate or
opinion has read such condition or covenant and the definitions herein
relating thereto;
(2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(3) a statement that, in the opinion of each such individual, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such condition or covenant
has been complied with; and
(4) a statement as to whether or not, in the opinion of each such
individual, such condition or covenant has been complied with.
Section 1.3 Form of Documents Delivered to Trustee. In any case where
--------------------------------------
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations as to such matters are
erroneous.
-10-
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
Section 1.4 Acts of Holders. (a) Any request, demand, authorization,
---------------
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are received by the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Section 315 of the Trust Indenture
Act) conclusive in favor of the Trustee and the Company if made in the manner
provided in this Section.
(b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is
by a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other reasonable manner which the Trustee deems sufficient.
(c) The ownership, principal amount and serial numbers of Securities held
by any Person, and the date of commencement of such Person's holding the same,
shall be proved by the Register.
(d) Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Security shall bind every future Holder of the
same Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security.
-11-
(e) The Company may, in the circumstances permitted by the Trust Indenture
Act, fix a record date for the determination of Holders entitled to make or give
any request, demand, authorization, direction, notice, consent or waiver or to
take any other Act authorized or permitted to be made, given or taken by the
Holders, but the Company shall have no obligation to do so. If such a record
date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before, on or after such record date, but only
the Holders of record at the close of business on such record date (or their
duly designated proxies) shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite proportion of Outstanding
Securities have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that
purpose the Outstanding Securities shall be computed as of such record date.
Section 1.5 Notices, etc., to Trustee and Company. Any request, demand,
-------------------------------------
authorization, direction, notice, consent, waiver or other Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing
to or with the Trustee at its Corporate Trust Office, or
(2) the Company by the Trustee or by any Holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided) if
in writing and mailed, first class postage prepaid, to the Company
addressed to it at St. Xxxx Bancorp, Inc., 0000 Xxxx Xxxxx Xxxxxx, Xxxxxxx,
Xxxxxxxx 00000, Attention: Chief Financial Officer or at any other address
previously furnished in writing to the Trustee by the Company.
Section 1.6 Notice to Holders; Waiver. Where this Indenture provides for
-------------------------
notice to Holders of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to each such Holder affected by such event, at his address as
it appears in the Register, within the time prescribed for the giving of such
notice.
Neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders of Securities. Any notice mailed to a Holder in
the manner herein
-12-
prescribed shall be conclusively deemed to have been received by such Holder,
whether or not such Holder actually receives such notice.
If by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice as provided above,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.
Any request, demand, authorization, direction, notice, consent, waiver or
other Act required or permitted under this Indenture shall be in the English
language.
Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be equivalent of such notice. Waivers
of notice by Holders shall be filed with the Trustee, but such filing shall not
be a condition precedent to the validity of any action taken in reliance upon
such waiver.
Section 1.7 Headings and Table of Contents. The Article and Section
------------------------------
headings herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.
Section 1.8 Successors and Assigns. All covenants and agreements in this
----------------------
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.
Section 1.9 Separability. In case any provision of this Indenture or the
------------
Securities shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
Section 1.10 Benefits of Indenture. Nothing in this Indenture or in the
---------------------
Securities, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the Registrar, any Paying Agent and the
Holders, any benefit or any legal or equitable right, remedy or claim under this
Indenture.
Section 1.11 Governing Law. THIS INDENTURE AND THE SECURITIES SHALL BE
-------------
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS
AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF ILLINOIS, WITHOUT
REGARD TO PRINCIPLES OF CONFLICT OF LAWS. This Indenture is subject to the
Trust Indenture Act and if any provision hereof limits, qualifies
-13-
or conflicts with a provision of the Trust Indenture Act that is required under
the Trust Indenture Act to be part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or
excludes any provision of the Trust Indenture Act that may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or excluded.
Section 1.12 Legal Holidays. Unless otherwise specifically provided for
--------------
with respect to any series of Securities, in any case where any Interest Payment
Date, Redemption Date, sinking fund payment date, Stated Maturity or Maturity of
any Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or any Security, other
than a provision in the Securities of any series which specifically states that
such provision shall apply in lieu of this Section) payment of principal,
premium, if any, or interest need not be made at such Place of Payment on such
date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on such date; and no interest
shall accrue on the amount so payable for the period from and after such
Interest Payment Date, Redemption Date, sinking fund payment date, Stated
Maturity or Maturity, as the case may be.
Section 1.13 Incorporators, Stockholders, Officers and Directors of the
----------------------------------------------------------
Company Exempt from Individual Liability. No recourse under or upon any
----------------------------------------
obligation, covenant or agreement of or contained in this Indenture or of or
contained in any Security, or for any claim based thereon or otherwise in
respect thereof, or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or any successor Person, either directly or through the Company or any
successor Person, whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Securities.
-14-
ARTICLE 2
Security Forms
--------------
Section 2.1 Forms Generally. The Securities of each series shall be
---------------
in substantially such form (including global form) as shall be established by
delivery to the Trustee of an Officers' Certificate or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture. Such Securities may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as the Company
may deem appropriate and as are not inconsistent with this Indenture, or as may
be required to comply with the rules of any securities exchange, all as
determined by the officers executing such Securities as evidenced by their
execution of the Securities. If temporary Securities of any series are issued
as permitted by Section 3.4, the form thereof also shall be established as
provided in the preceding sentences. If the forms of Securities of any series
are established by an Officers' Certificate, such Officers' Certificate shall be
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 3.3 for the authentication and delivery of such
Securities.
The permanent Securities, if any, shall be printed, lithographed or
engraved or produced by any combination of these methods or may be produced in
any other manner, all as determined by the officers executing such Securities,
as evidenced by their execution of such Securities.
Section 2.2 Form of Trustee's Certificate of Authentication. The
-----------------------------------------------
Trustee's certificate of authentication shall be in substantially the following
form:
This is one of the Securities of a series issued under the within-mentioned
Indenture.
,
--------------------------------
as Trustee
By:
------------------------
Authorized Signatory
Section 2.3 Securities in Global Form. If Securities of or within a
-------------------------
series are issuable in whole or in part in temporary or permanent global form,
as specified as contemplated by Section
-15-
3.1, then, notwithstanding clause (8) of Section 3.1(b) and the provisions of
Section 3.2, any such Security shall represent such of the Outstanding
Securities of such series as shall be specified therein and may provide that it
shall represent the aggregate amount of Outstanding Securities from time to time
endorsed thereon and that the aggregate amount of Outstanding Securities
represented thereby may from time to time be reduced to reflect exchanges. Any
endorsement of a Security in global form to reflect the amount, or any increase
or decrease in the amount, or changes in the rights of Holders, of Outstanding
Securities represented thereby, shall be made by the Trustee in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to Section 3.3
or 3.4. Subject to the provisions of Sections 3.3, 3.4 and 3.5, the Trustee
shall deliver and redeliver any Security in global form in the manner and upon
instructions given by the Person or Persons specified therein or in the
applicable Company Order. Any instructions by the Company with respect to
endorsement or delivery or redelivery of a Security in global form shall be in
writing (which need not comply with Section 1.2 hereof and need not be
accompanied by an Opinion of Counsel).
The provisions of the last paragraph of Section 3.3 shall apply to any
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions (which need not comply with Section 1.2 and
need not be accompanied by an Opinion of Counsel) with regard to the reduction
or increase in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last paragraph of Section 3.3.
Every Security in global form authenticated and delivered hereunder shall
bear a legend in substantially the following form:
THIS SECURITY IS A SECURITY ISSUED IN GLOBAL FORM AS CONTEMPLATED BY AND
WITHIN THE MEANING OF THE INDENTURE DATED AS OF __________ ___, 1997,
BETWEEN ST. XXXX BANCORP, INC. AND XXXXXX TRUST AND SAVINGS BANK, AS
TRUSTEE (THE "INDENTURE"), AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR
A NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED
OR EXCHANGED FOR SECURITIES IN THE NAME OF, ANY PERSON OTHER THAN THE
DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY
SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR
IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY
-16-
SHALL BE A SECURITY ISSUED IN GLOBAL FORM SUBJECT TO THE FOREGOING, EXCEPT
IN SUCH LIMITED CIRCUMSTANCES.
ARTICLE 3
The Securities
--------------
Section 3.1 Amount Unlimited; Issuable in Series. (a) The aggregate
------------------------------------
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited. The Securities may be issued from time to time in
one or more series.
(b) The following matters shall be established and (subject to Section 3.3)
set forth, or determined in the manner provided, in an Officers' Certificate, a
Board Resolution or one or more indentures supplemental hereto:
(1) the title of the Securities of the series (which title shall
distinguish the Securities of the series from all other Securities);
(2) any limit upon the aggregate principal amount of the Securities of
the series which may be authenticated and delivered under this Indenture
(which limit shall not pertain to (i) Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 3.4, 3.5, 3.6, 8.6
or 10.7, and (ii) any Securities which, pursuant to the last paragraph of
Section 3.3, are deemed never to have been authenticated and delivered
hereunder);
(3) the date or dates on which the principal of the Securities of the
series is payable or the method of determination thereof;
(4) the rate or rates at which the Securities of the series shall bear
interest, if any, or the method of calculating such rate or rates of
interest, the date or dates from which such interest shall accrue or the
method by which such date or dates shall be determined, the Interest
Payment Dates on which any such interest shall be payable and the Regular
Record Date, if any, for the interest payable on any Security of such
series on any Interest Payment Date;
(5) the place or places where, subject to the provisions of Section
9.2, the principal of, premium, if
-17-
any, and interest, if any, on Securities of the series shall be payable;
(6) the period or periods within which, the price or prices at which,
and the other terms and conditions upon which, Securities of the series may
be redeemed, in whole or in part, at the option of the Company and, if
other than as provided in Section 10.3, the manner in which the particular
Securities of such series (if less than all Securities of such series are
to be redeemed) are to be selected for redemption;
(7) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous
provisions or upon the happening of a specified event or at the option of a
Holder thereof and the period or periods within which, the price or prices
at which, and the other terms and conditions upon which, Securities of the
series shall be redeemed or purchased, in whole or in part, pursuant to
such obligation;
(8) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Securities of the series shall be
issuable;
(9) if other than the principal amount thereof, the portion of the
principal amount of the Securities of the series which shall be payable
upon declaration of acceleration thereof pursuant to Section 5.2 or the
method by which such portion shall be determined;
(10) if other than as provided in Section 3.7, the Person to whom any
interest on any Security of the series shall be payable, and the extent to
which, or the manner in which (including any certification requirement and
other terms and conditions under which), any interest payable on a
temporary or permanent global Security on an Interest Payment Date will be
paid if other than in the manner provided in Section 2.3 and Section 3.4,
as applicable;
(11) provisions, if any, granting special rights to the Holders of
Securities of the series upon the occurrence of such events as may be
specified;
(12) any deletions from, modifications of or additions to the Events
of Default set forth in Section 5.1 or covenants of the Company set forth
in Article 9 pertaining to the Securities of the series;
-18-
(13) if other than as provided in Sections 4.4 and 4.5, the means of
defeasance or covenant defeasance as may be specified for the Securities of
or within the series;
(14) if other than the Trustee, the identity of the Registrar and any
Paying Agent;
(15) whether Securities of the series shall be issued in whole or in
part in temporary or permanent global form and, if so, (i) the initial
Depositary for such global Securities and (ii) if other than as provided in
Section 3.4 or 3.5, as applicable, whether and the circumstance under which
beneficial owners of interests in any Securities of the series in temporary
or permanent global form may exchange such interests for Securities of such
series and of like tenor of any authorized form and denomination; and
(16) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture), including without
limitation any terms which may be required by or advisable under United
States laws or regulations or advisable in connection with the marketing of
Securities of the series.
(c) All Securities of any one series shall be substantially identical
except as to denomination and the rate or rates of interest, if any, and Stated
Maturity, the date from which interest, if any, shall accrue and except as may
otherwise be provided in or pursuant to an Officers' Certificate or a Board
Resolution pursuant to this Section 3.1 or in an indenture supplemental hereto.
All Securities of any one series need not be issued at the same time and, unless
otherwise provided, a series may be reopened, without the consent of the
Holders, for issuances of additional Securities of such series or for the
establishment of additional terms with respect to the Securities of such series.
(d) If any of the terms of the Securities of any series are
established by action taken pursuant to a Board Resolution, a copy of such Board
Resolution shall be certified by the Corporate Secretary or an Assistant
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers' Certificate setting forth, or providing the manner for
determining, the terms of the Securities of such series, and, if requested by
the Trustee, an appropriate record of any action taken pursuant thereto in
connection with the issuance of any Securities of such series shall be delivered
to the Trustee prior to the authentication and delivery thereof. With respect
to Securities of a series subject to a Periodic Offering, such Board
-19-
Resolution or Officers' Certificate may provide general terms for Securities of
such series and provide either that the specific terms of particular Securities
of such series shall be specified in a Company Order or that such terms shall be
determined by the Company, or one or more of the Company's agents designated in
an Officers' Certificate, in accordance with the Company Order as contemplated
by the first proviso of the third paragraph of Section 3.3.
Section 3.2 Denominations. Unless otherwise provided as contemplated by
-------------
Section 3.1, any Securities of a series shall be issuable in denominations of
$1,000 and any integral multiple thereof.
Section 3.3 Execution, Authentication, Delivery and Dating. Securities
----------------------------------------------
shall be executed on behalf of the Company by the Chairman, the President, any
Executive Vice President, any Senior Vice President or the Treasurer and
attested to by the Corporate Secretary or Assistant Secretary of the Company.
The Company's seal shall be affixed to the Securities, or a facsimile of such
seal shall be reproduced on the Securities. The signatures of such officers on
the Securities may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.
At any time and from time to time, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and the delivery of such Securities,
and the Trustee in accordance with the Company Order shall authenticate and
deliver such Securities; provided, however, that in the case of Securities
-------- -------
offered in a Periodic Offering, the Trustee shall authenticate and deliver such
Securities from time to time in accordance with such other procedures
(including, without limitation, the receipt by the Trustee of oral or electronic
instructions from the Company or its duly authorized agents, thereafter promptly
confirmed in writing) acceptable to the Trustee as may be specified by or
pursuant to a Company Order delivered to the Trustee prior to the time of the
first authentication of Securities of such series.
If the form or terms of the Securities of a series have been established by
or pursuant to one or more Officers' Certificates or one or more Board
Resolutions as permitted by Sections 2.1 and
-20-
3.1, in authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 315(a) through (d)
of the Trust Indenture Act) shall be fully protected in relying upon, an Opinion
of Counsel stating,
(1) that the forms and terms of such Securities have been established
in conformity with the provisions of this Indenture; and
(2) that such Securities when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid and
legally binding obligations of the Company, enforceable in accordance with
their terms, subject to customary exceptions;
provided, however, that, with respect to Securities of a series subject to a
-------- -------
Periodic Offering, the Trustee shall be entitled to receive such Opinion of
Counsel only once at or prior to the time of the first authentication of
Securities of such series and that the Opinion of Counsel above may state:
(x) that the forms of such Securities have been, and the terms of such
Securities (when established in accordance with such procedures as may be
specified from time to time in a Company Order, all as contemplated by and
in accordance with a Board Resolution or an Officers' Certificate pursuant
to Section 3.1, as the case may be) will have been, established in
conformity with the provisions of this Indenture; and
(y) that such Securities, when (1) executed by the Company, (2)
completed, authenticated and delivered by the Trustee in accordance with
this Indenture, and (3) issued by the Company in the manner and subject to
any conditions specified in such Opinion of Counsel, will constitute valid
and legally binding obligations of the Company, enforceable in accordance
with their terms, subject to customary exceptions.
With respect to Securities of a series subject to a Periodic Offering, the
Trustee may conclusively rely, as to the authorization by the Company of any of
such Securities, the form and terms thereof and the legality, validity, binding
effect and enforceability thereof, upon such Opinion of Counsel and any other
documents delivered pursuant to Sections 2.1 and 3.1, as
-21-
applicable, at or prior to the time of the first authentication of Securities of
such series unless and until it has received written notification that such
opinion or other documents have been superseded or revoked. In connection with
the authentication and delivery of Securities of a series subject to a Periodic
Offering, the Trustee shall be entitled to assume that the Company's
instructions to authenticate and deliver such Securities do not violate any
rules, regulations or orders of any governmental agency or commission having
jurisdiction over the Company.
If the form or terms of the Securities of a series have been established by
or pursuant to one or more Officers' Certificates or one or more Board
Resolutions as permitted by Sections 2.1 and 3.1, the Trustee shall have the
right to decline to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will adversely affect the Trustee's own rights,
duties or immunities under this Indenture or otherwise in a manner which is not
reasonably acceptable to the Trustee.
If all of the Securities of any series are not to be issued at one time, it
shall not be necessary to deliver the Officers' Certificate or the Board
Resolution otherwise required pursuant to Section 3.1 at or prior to the time of
the authentication of each Security of such series if such Officers' Certificate
or Board Resolution is delivered at or prior to the authentication upon original
issuance of the first Security of such series to be issued.
If the Company shall establish pursuant to Section 3.1 that the Securities
of a series are to be issued in whole or in part in global form, then the
Company shall execute and the Trustee shall, in accordance with this Section and
the Company Order with respect to such series, authenticate and deliver one or
more Securities in global form that (i) shall represent and shall be denominated
in an amount equal to the aggregate principal amount of the initially issued
Outstanding Securities of such series to be represented by such Security or
Securities in global form, (ii) shall be registered in the name of the
Depositary for such Security or Securities in global form or the nominee of such
Depositary, and (iii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary's instruction.
Each Depositary designated pursuant to Section 3.1 for a Security in global
form must, at the time of its designation and at all times while it serves as
Depositary, be a clearing agency registered under the Securities Exchange Act of
1934, as amended, and any other applicable statute or regulation. The Trustee
-22-
shall have no responsibility to determine if the Depositary is so registered.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefits under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the manual signature of one of the authorized signatories of the
Trustee or an Authenticating Agent. Such signature upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered under this Indenture and is entitled to the benefits
of this Indenture.
Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 3.9 together with a written statement (which need not comply
with Section 1.2 and need not be accompanied by an Opinion of Counsel) stating
that such Security has never been issued and sold by the Company, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall not be entitled to the benefits
of this Indenture.
Section 3.4 Temporary Securities. Pending the preparation of definitive
--------------------
Securities of any series, the Company may execute and, upon Company Order, the
Trustee shall authenticate and deliver temporary Securities of such series which
are printed, lithographed, typewritten, mimeographed or otherwise produced, in
any authorized denomination, substantially of the tenor and form, of the
definitive Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as conclusively evidenced by their
execution of such Securities. In the case of Securities of any series, such
temporary Securities may be in global form.
Except in the case of temporary Securities in global form, each of which
shall be exchanged in accordance with the provisions thereof, if temporary
Securities of any series are issued, the Company will cause permanent Securities
of such series to be prepared without unreasonable delay. After preparation of
such permanent Securities, the temporary Securities shall be exchangeable for
such permanent Securities of like tenor upon surrender of the temporary
Securities of such series at the office or agency of the Company pursuant to
Section 9.2 in a Place of Payment for such series, without charge to the Holder.
Upon
-23-
surrender for cancellation of any one or more temporary Securities of any
series, the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor a like principal amount of permanent Securities of the same
series of authorized denominations and of like tenor. Until so exchanged, the
temporary Securities of any series shall in all respects be entitled to the same
benefits under this Indenture as permanent Securities of such series except as
otherwise specified as contemplated by Section 3.1.
Section 3.5 Registration, Registration of Transfer and Exchange. The
---------------------------------------------------
Company shall cause to be kept at the Corporate Trust Office of the Trustee or
in any office or agency to be maintained by the Company in accordance with
Section 9.2 in a Place of Payment, a register (the "Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration of Securities and the registration of transfers of
Securities. The Register shall be in written form or any other form capable of
being converted into written form within a reasonable time. The Trustee is
hereby initially appointed "Registrar" for the purpose of registering Securities
and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security of any series
at the office or agency maintained pursuant to Section 9.2 in a Place of Payment
for that series, the Company shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Securities of the same series, of any authorized denominations and of a
like aggregate principal amount and tenor.
At the option of the Holder, Securities of any series (except a Security in
global form) may be exchanged for other Securities of the same series, of any
authorized denominations and of a like aggregate principal amount containing
identical terms and provisions, upon surrender of the Securities to be exchanged
at such office or agency. Whenever any Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.
Notwithstanding any other provision of this Section, unless and until it is
exchanged in whole or in part for Securities in certificated form in the
circumstances described below, a Security in global form representing all or a
portion of the Securities of a series may not be transferred except as a whole
by the Depositary for such series to a nominee of such Depositary or by a
nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor
-24-
Depositary for such series or a nominee of such successor Depositary.
If at any time the Depositary for the Securities of a series notifies the
Company that it is unwilling or unable to continue as Depositary for the
Securities of such series or if at any time the Depositary for the Securities of
such series shall no longer be eligible under Section 3.3, the Company shall
appoint a successor Depositary with respect to the Securities of such series.
If a successor Depositary for the Securities of such series is not appointed by
the Company within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company's election pursuant to Section
3.1(b)(15) shall no longer be effective with respect to the Securities of such
series and the Company shall execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of certificated Securities of such
series of like tenor, shall authenticate and deliver Securities of such series
of like tenor in certificated form, in authorized denominations and in an
aggregate principal amount equal to the principal amount of the Security or
Securities of such series of like tenor in global form in exchange for such
Security or Securities in global form.
The Company may at any time in its sole discretion determine that
Securities of a series issued in global form shall no longer be represented by
such a Security or Securities in global form. In such event, the Company shall
execute, and the Trustee, upon receipt of a Company Order for the authentication
and delivery of certificated Securities of such series of like tenor, shall
authenticate and deliver, Securities of such series of like tenor in
certificated form, in authorized denominations and in an aggregate principal
amount equal to the principal amount of the Security or Securities of such
series of like tenor in global form in exchange for such Security or Securities
in global form.
If specified by the Company pursuant to Section 3.1 with respect to a
series of Securities, the Depositary for such series may surrender a Security in
global form of such series in exchange in whole or in part for Securities of
such series in certificated form on such terms as are acceptable to the Company
and such Depositary. Thereupon, the Company shall execute, and the Trustee
shall authenticate and deliver, without service charge,
(i) to each Person specified by such Depositary a new certificated
Security or Securities of the same series of like tenor, of any
authorized denomination as requested by such Person in aggregate
principal amount equal to and in exchange for such Person's beneficial
interest in the Security in global form; and
-25-
(ii) to such Depositary a new Security in global form of like tenor in a
denomination equal to the difference, if any, between the principal amount of
the surrendered Security in global form and the aggregate principal amount of
certificated Securities delivered to Holders thereof.
Upon the exchange of a Security in global form for Securities in
certificated form, such Security in global form shall be cancelled by the
Trustee. Securities in certificated form issued in exchange for a Security in
global form pursuant to this Section shall be registered in such names and in
such authorized denominations as the Depositary for such Security in global
form, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee. The Trustee shall deliver such
Securities to the Persons in whose names such Securities are so registered.
All Securities issued upon any registration of transfer or upon any
exchange of Securities shall be the valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as the
securities surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration or transfer or for
exchange shall (if so required by the Company, the Registrar or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Registrar and the Trustee duly executed by the Holder
thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of transfer or for any
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration or transfer or exchange of Securities, other than
exchanges pursuant to Section 3.4, 8.6 or 10.7 not involving any transfer.
The Company shall not be required (i) to issue, register the transfer of,
or exchange any Securities for a period beginning at the opening of business 15
days before the day of the mailing of a notice of redemption of Securities of
like tenor and of the series of which such Security is a part selected for
redemption under Section 10.3 and ending at the close of business on the day of
such mailing or (ii) to register the transfer of or exchange any Security so
selected for redemption, in whole or in part, except the unredeemed portion of
any Security being redeemed in part.
-26-
Section 3.6 Replacement Securities. If a mutilated Security is
----------------------
surrendered to the Trustee, together with, in proper cases, such security or
indemnity as may be required by the Company or the Trustee to save each of them
and any agent of either of them harmless, the Company shall execute and the
Trustee shall authenticate and deliver a replacement Security of the same series
and principal amount and date of maturity, if the Trustee's requirements are
met.
If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver in lieu of any such destroyed, lost or stolen Security a replacement
Security of the same series and principal amount, containing identical terms and
provisions as the destroyed, lost or stolen Security.
In case any such mutilated, destroyed lost or stolen Security has become or
is about to become due and payable, the Company in its discretion may, instead
of issuing a new Security, pay such Security.
Upon the issuance of any new Security under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee or the Registrar) connected therewith.
Every new Security of any series issued pursuant to this Section in lieu of
any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.
Section 3.7 Payment of Interest; Interest Rights Preserved. (a) Unless
----------------------------------------------
otherwise specified as contemplated by Section 3.1, interest, if any, on any
Security which is payable, and is
-27-
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest at the office or agency maintained for such purpose pursuant
to Section 9.2; provided, however, that, at the option of the Company, interest
-------- -------
on any series of Securities that bear interest may be paid (i) by check mailed
to the address of the Person entitled thereto as it shall appear on the Register
of Holders of Securities of such series, or (ii) to the extent specified as
contemplated by Section 3.1, by wire transfer to an account maintained by the
Person entitled thereto as specified in the Register of Holders of Securities of
such series.
(b) Unless otherwise specified as contemplated by Section 3.1, any
interest on any Security of any series which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of his having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to
the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Security of such series and the date of the proposed payment, and
at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause (1) 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
Securities of
-28-
such series at his address as it appears in the Register, not less than 10
days prior to such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names
the Securities of such series (or their respective Predecessor Securities)
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
Securities of any series to the Persons in whose names the Securities of
such series (or their respective Predecessor Securities) are registered at
the close of business on a specified date in any other lawful manner not
inconsistent with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by such
exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause (2), such manner of payment shall
be deemed practicable by the Trustee.
(c) Subject to the foregoing provisions of this Section and Section
3.5, each Security delivered under this Indenture upon registration of transfer
of or in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.
Section 3.8 Persons Deemed Owners. Prior to due presentment of any
---------------------
Security for registration of transfer, the Company, the Trustee and any agent of
the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of
principal of, premium, if any, and (subject to Sections 3.5 and 3.7) interest on
such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.
No holder of any beneficial interest in any global Security held on its
behalf by a Depositary shall have any rights under this Indenture with respect
to such global Security, and such Depositary may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the owner of such global
Security for all purposes whatsoever. None of the Company, the Trustee or any
agent of the Company or the Trustee shall have any responsibility or liability
for any aspect of the records relating to or payments made on account of
beneficial ownership interests of a Security in
-29-
global form, or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.
Section 3.9 Cancellation. The Company at any time may deliver Securities
------------
to the Trustee for cancellation. The Registrar and any Paying Agent shall
forward to the Trustee any Securities surrendered to them for replacement, for
registration of transfer, or for exchange or payment. The Trustee shall cancel
all Securities surrendered for replacement, for registration of transfer, or for
exchange, payment, redemption or cancellation and may dispose of cancelled
Securities and issue a certificate of destruction to the Company. The Company
may not issue new Securities to replace Securities that it has paid or delivered
to the Trustee for cancellation, except as expressly permitted in the terms of
Securities for any particular series or as permitted pursuant to the terms of
this Indenture.
Section 3.10 Computation of Interest. Except as otherwise specified as
-----------------------
contemplated by Section 3.1, interest on any Securities of a series that bear
interest shall be computed on the basis of a 360-day year of twelve 30-day
months.
Section 3.11 CUSIP Numbers. The Company in issuing the Securities may use
-------------
"CUSIP" numbers (in addition to the other identification numbers printed on the
Securities), and, if so, the Trustee shall use "CUSIP" numbers in notices of
redemption as a convenience to Holders; provided, however, that any such notice
-------- -------
may state that no representation is made as to the correctness of such "CUSIP"
numbers either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such "CUSIP" numbers.
ARTICLE 4
Satisfaction and Discharge; Defeasance
--------------------------------------
Section 4.1 Termination of Company's Obligations Under the Indenture.
--------------------------------------------------------
Except as otherwise specified as contemplated by Section 3.1, this Indenture
shall upon a Company Request cease to be of further effect with respect to
Securities of or within any series (except as to any surviving rights of
registration of transfer or exchange of such Securities and replacement of such
Securities which may have been destroyed, lost, stolen or mutilated, as herein
expressly provided for) and the Trustee, at the expense of the Company, shall
execute proper instruments
-30-
acknowledging satisfaction and discharge of this Indenture with respect to such
Securities when:
(1) either
(A) all such Securities previously authenticated and delivered
(other than (i) such Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section
3.6, and (ii) such Securities for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company
and thereafter repaid to the Company or discharged from such trust, as
provided in Section 9.3) have been delivered to the Trustee for
cancellation; or
(B) all such Securities not theretofore delivered to the Trustee
cancelled or for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity
within one year, or
(iii) if redeemable at the option of the Company, are to be
called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the
Company,
and the Company, in the case of (i), (ii) or (iii) above, has
irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust for the purpose, an amount sufficient to pay and
discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal, premium, if
any, and interest, with respect thereto, to the date of such deposit
(in the case of Securities which have become due and payable) or to
the Stated Maturity or Redemption Date, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company with respect to such Securities; and
(3) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent
herein provided for
-31-
relating to the satisfaction and discharge of this Indenture as to such
series have been complied with.
Notwithstanding the satisfaction and discharge of this Indenture with respect to
any series of Securities, the obligation of the Company to the Trustee and any
predecessor Trustee under Section 6.9, the obligations of the Company to any
Authenticating Agent under Section 6.14 and, if money shall have been deposited
with the Trustee pursuant to subclause (B) of clause (1) of this Section, the
obligations of the Trustee under Section 4.2 and the last paragraph of Section
9.3 shall survive.
Section 4.2 Application of Trust Funds. Subject to the provisions of the
--------------------------
last paragraph of Section 9.3, all money deposited with the Trustee pursuant to
Section 4.1 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal, premium, if any, and any interest for whose payment such money has
been deposited with or received by the Trustee, but such money need not be
segregated from other funds except to the extent required by law.
Section 4.3 Applicability of Defeasance Provisions. Unless otherwise
--------------------------------------
specified as contemplated by Section 3.1, the provisions of Sections 4.4 and
4.5, together with the provisions of Sections 4.6 through 4.8 inclusive, shall
be applicable to the Securities of or within a series.
Section 4.4 Defeasance and Discharge. The Company, at its option, shall
------------------------
be deemed to have been discharged from its obligations with respect to the
Securities of or within a series on and after the date the conditions set forth
in Section 4.6 are satisfied (hereinafter "defeasance"). For this purpose, such
defeasance means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by such Securities which shall thereafter be
deemed to be "Outstanding" only for the purposes this Article 4, and to have
satisfied all its other obligations under such Securities and this Indenture
insofar as such Securities are concerned (and the Trustee, at the expense of the
Company, shall on a Company Order execute proper instruments acknowledging the
same), except the following which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of such Securities to receive,
solely from the trust funds described in Section 4.6(a) and as more fully set
forth in such Section, payments in respect of the principal of, premium, if any,
and interest, if any, on such Securities when such payments are due; (b) the
rights, powers,
-32-
trusts, duties and immunities of the Trustee hereunder; and (c) this Article 4.
Subject to compliance with this Article 4, the Company may exercise its option
under this Section notwithstanding the prior exercise of its option under
Section 4.5 with respect to such Securities.
Section 4.5 Covenant Defeasance. The Company, at its option, shall be
-------------------
released from its obligations under Sections 7.1, 9.4, 9.5, 9.8, 9.9, 9.10,
9.11, 9.12 and 9.13 and, if specified pursuant to Section 3.1, its obligations
under any other covenants, with respect to such Securities on and after the date
the conditions set forth in Section 4.6 are satisfied (hereinafter "covenant
defeasance"), and such Securities shall thereafter be deemed to be not
"Outstanding" for the purposes of any request, demand, authorization, direction,
notice, consent, waiver or other Act of Holders (and the consequences of any
thereof) in connection with Sections 7.1, 9.4, 9.5, 9.8, 9.9, 9.10, 9.11, 9.12
and 9.13 or such other covenants, but shall continue to be deemed "Outstanding"
for all other purposes hereunder. For this purpose, such covenant defeasance
means that, with respect to such Securities, the Company may omit to comply with
and shall have no liability in respect of any term, provision, condition or
limitation set forth in any such Section or such other covenants, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
Section or such other covenants or by reason of any reference in any such
Section or such other covenants to any other provision herein or in any other
document or otherwise and such omission to comply shall not constitute a Default
or an Event of Default under Section 5.1(3) or 5.1(7) or otherwise, as the case
may be, but, except as specified above, the remainder of this Indenture and such
Securities shall be unaffected thereby.
Section 4.6 Conditions to Defeasance or Covenant Defeasance. The
-----------------------------------------------
following shall be the conditions to application of Section 4.4 or Section 4.5
to any Securities of or within a series:
(a) The Company shall have deposited or caused to be deposited
irrevocably with the Trustee (or another trustee satisfying the
requirements of Section 6.12 who shall agree to comply with, and shall be
entitled to the benefits of, the provisions of Sections 4.3 through 4.8
inclusive and the last paragraph of Section 9.3 applicable to the Trustee,
for purposes of such Sections also a "Trustee") as trust funds in trust for
the purpose of making the payments referred to in clauses (x) and (y) of
this Section 4.6(a), specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of such Securities, with instructions
-33-
to the Trustee as to the application thereof, (A) money in an amount, or
(B) Government Obligations which through the payment of interest and
principal in respect thereof in accordance with their terms will provide,
not later than one day before the due date of any payment referred to in
clause (x) or (y) of this Section 4.6(a), money in an amount or (C) a
combination thereof in an amount, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to
pay and discharge, and which shall be applied by the Trustee to pay and
discharge, (x) the principal of, premium, if any, and interest, if any, on
such Securities on the Maturity of such principal or installment of
principal or interest and (y) any mandatory sinking fund payments
applicable to such Securities on the day on which such payments are due and
payable in accordance with the terms of this Indenture and such Securities.
Before such a deposit the Company may make arrangements satisfactory to the
Trustee for the redemption of Securities at a future date or dates in
accordance with Article 10 which shall be given effect in applying the
foregoing.
(b) Such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a Default or Event of Default under
this Indenture or result in a breach or violation of, or constitute a
default under, any other material agreement or instrument to which the
Company is a party or by which it is bound.
(c) No Default or Event of Default under Section 5.1(5) or 5.1(6) with
respect to such Securities shall have occurred and be continuing during the
period commencing on the date of such deposit and ending on the 91st day
after such date (it being understood that this condition shall not be
deemed satisfied until the expiration of such period).
(d) In the case of an exercise by the Company of its option under
Section 4.4, the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel to the effect that (i) the Company
has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of execution of this Indenture,
there has been a change in the applicable Federal income tax law, in either
case to the effect that, and based thereon such opinion shall confirm that,
the Holders of such Securities will not recognize income, gain or loss for
Federal income tax purposes as a result of such defeasance and will be
subject to Federal income tax on the
-34-
same amount and in the same manner and at the same times, as would have
been the case if such deposit, defeasance and discharge had not occurred.
(e) In the case of an exercise by the Company of its option under
Section 4.5, the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that the Holders of such Securities will not
recognize income, gain or loss for Federal income tax purposes as a result
of such covenant defeasance and will be subject to Federal income tax on
the same amounts, in the same manner and at the same times as would have
been the case if such covenant defeasance had not occurred.
(f) The Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance under Section 4.4 or the covenant defeasance
under Section 4.5 (as the case may be) have been complied with and an
Opinion of Counsel to the effect that either (i) as a result of a deposit
pursuant to subsection (a) above and the related exercise of the Company's
option under Section 4.4 or Section 4.5 (as the case may be), registration
is not required under the Investment Company Act of 1940, as amended, by
the Company, with respect to the trust funds representing such deposit or
by the Trustee for such trust funds or (ii) all necessary registrations
under said Act have been effected.
(g) Such defeasance or covenant defeasance shall be effected in
compliance with any additional or substitute terms, conditions or
limitations which may be imposed on the Company in connection therewith as
contemplated by Section 3.1.
Section 4.7 Deposited Money and Government Obligations to be Held in
--------------------------------------------------------
Trust. Subject to the provisions of the last paragraph of Section 9.3, all
money and Government Obligations (or other property as may be provided pursuant
to Section 3.1) (including the proceeds thereof) deposited with the Trustee
pursuant to Section 4.6 in respect of any Securities of or within any series
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Holders of such Securities of
all sums due and to become due thereon in respect of principal, premium, if any,
and interest, if any, but such money need not be segregated from other funds
except to the extent required by law.
-35-
Section 4.8 Transfers and Distribution at Company Request. To the extent
---------------------------------------------
permitted by the Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 76, as amended or interpreted by the Financial
Accounting Standards Board from time to time, or any successor thereto
("Standard No. 76"), or to the extent permitted by the Commission, the Trustee
shall, from time to time, take one or more of the following actions as specified
in a Company Request:
(a) The Trustee shall retransfer, reassign and deliver to the Company
any securities deposited with the Trustee pursuant to Section 4.6(a),
provided that the Company shall, in substitution therefor, simultaneously
transfer, assign and deliver to the Trustee other Government Obligations
appropriate to satisfy the Company's obligations in respect of the relevant
Securities.
(b) The Trustee (and any Paying Agent) shall promptly pay to the
Company upon a Company Request any excess money or securities held by them
at any time, including, without limitation, any assets deposited with the
Trustee pursuant to Section 4.6(a) exceeding those necessary for the
purposes of Section 4.6(a).
The Trustee shall not take the actions described in subsections (a) and (b) of
this Section 4.8 unless it shall have first received a written report of Ernst &
Young, or another nationally recognized independent public accounting firm, (i)
expressing their opinion that the contemplated action is permitted by Standard
No. 76 or the Commission, for transactions accounted for as extinguishment of
debt under the circumstances described in paragraph 3.c of Standard No. 76 or
any successor provision, and (ii) verifying the accuracy, after giving effect to
such action or actions, of the computations which demonstrate that the amounts
remaining to be earned on any Government Obligations deposited with the Trustee
pursuant to Section 4.6(a) will be, when taken together with any money deposited
with the Trustee pursuant to Section 4.6(a), sufficient for purposes of Section
4.6(a).
ARTICLE 5
Defaults and Remedies
---------------------
Section 5.1 Events of Default. An "Event of Default" occurs with respect
-----------------
to the Securities of any series if (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or
-36-
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):
(1) the Company defaults in the payment of interest on any Security of
that series when the same becomes due and payable and such default
continues for a period of 30 days;
(2) the Company defaults in the payment of the principal of or
premium, if any, on any Security of that series when the same becomes due
and payable at its Maturity or on redemption or otherwise, or in the
payment of a mandatory sinking fund payment when and as due by the terms of
the Securities of that series;
(3) the Company defaults in the performance of, or breaches, any
covenant or warranty of the Company in this Indenture with respect to any
Security of that series (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with), and such default or breach continues for a period of 60 days
after there has been given, by registered or certified mail, to the Company
by the Trustee or to the Company and the Trustee by the Holders of at least
33% in principal amount of the Outstanding Securities of that series, a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a "Notice of Default" hereunder;
(4) the Company defaults under the terms of any agreement or
instrument under which there may be issued or by which there may be secured
or evidenced any indebtedness for money borrowed (excluding for such
purposes non recourse indebtedness having in the aggregate an outstanding
principal amount of less than $25,000,000), whether such indebtedness now
exists or shall hereafter be created, having an outstanding principal
amount of $25,000,000 or more in the aggregate, and such indebtedness shall
be accelerated so that the same shall be or become due and payable prior to
the date on which the same would otherwise become due and payable and such
acceleration is not rescinded or annulled within ten days (or sixty (60)
days if the default is not caused by a failure to pay when due principal or
interest on such indebtedness within the applicable grace period) after
there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least
33% in aggregate principal amount of the Outstanding Securities of that
series, a written notice specifying such
-37-
default and stating that such notice is a "Notice of Default" hereunder (it
being understood however, that, subject to the provisions of Section 6.1,
the Trustee shall not be deemed to have knowledge of such default under
such agreement or instrument unless a Responsible Officer of the Trustee
shall have received written notice thereof from the Company, from any
Holder, from the holder of any such indebtedness or from the trustee under
any such agreement or instrument); provided, however, that if such default
-------- -------
under such agreement or instrument is remedied or cured by the Company or
waived by the holders of such indebtedness, then the Event of Default
hereunder by reason thereof shall be deemed likewise to have been thereupon
remedied, cured or waived without further action upon the part of either
the Trustee or any of the Holders of the Securities of that series;
(5) the Company pursuant to or within the meaning of any Bankruptcy
Law (A) commences a voluntary case as to itself, (B) consents to the entry
of an order for relief against it in an involuntary case, (c) consents to
the appointment of a Custodian of it or for all or substantially all of its
property, or (D) makes a general assignment for the benefit of its
creditors;
(6) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that (A) is for relief against the Company in an
involuntary case, (B) appoints a Custodian of the Company or for all or
substantially all of its property, or (C) orders the liquidation of the
Company; and the order or decree remains unstayed and in effect for 90
days;
(7) a court or agency or supervisory authority of competent
jurisdiction over the Company or a Bank shall enter a decree or order for
the appointment of a conservator or receiver or liquidator in any
insolvency proceedings, readjustment of debt, marshalling of assets and
liabilities or similar proceedings relating to a Bank or all or
substantially all of its property, or for the winding-up or liquidation of
its affairs or a Bank shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of its debt,
marshalling of assets and liabilities or similar proceedings relating to
the Bank or all or substantially all of its property or a Bank shall file a
petition to take advantage of any applicable insolvency or reorganization
statute as to its affairs or voluntarily suspend payment of all or
substantially all of its obligations; or
-38-
(8) any other Event of Default provided as contemplated by Section 3.1
with respect to Securities of that series.
The term "Bankruptcy Law" means title 11, U.S. Code, or any similar federal
or state law for the relief of debtors. The term "Custodian" means any
receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
Law.
Section 5.2 Acceleration; Rescission and Annulment. If an Event of
--------------------------------------
Default with respect to the Securities of any series at the time Outstanding
occurs and is continuing, the Trustee or the Holders of at least 33% in
aggregate principal amount of all of the Outstanding Securities of that series,
by written notice to the Company (and, if given by the Holders, to the Trustee),
may declare the principal amount (or, if the Securities of that series are
Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of that series) of all the Securities of that series
to be due and payable and upon any such declaration such principal amount (or,
in the case of Original Issue Discount Securities, such specified amount) shall
be immediately due and payable.
At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in aggregate principal amount of the
Outstanding Securities of that series, by written notice to the Trustee, may
rescind and annul such declaration and its consequences if all existing Defaults
and Events of Default with respect to Securities of that series, other than the
non-payment of the principal amount (or, in the case of Original Discount
Securities, such specified amount) of Securities of that series which have
become due solely by such declaration of acceleration, have been cured or waived
as provided in Section 5.7. No such rescission shall affect any subsequent
Default or impair any right consequent thereon.
Section 5.3 Collection of Indebtedness and Suits for Enforcement by
-------------------------------------------------------
Trustee. The Company covenants that if:
-------
(1) default is made in the payment of any interest on any Security
when such interest becomes due and payable and such default continues for a
period of 30 days, or
(2) default is made in the payment of the principal of (or premium, if
any, on) any Security at the Maturity thereof,
-39-
the Company will, upon demand of the Trustee, pay to it, for the benefit of
the Holders of such Securities, the whole amount then due and payable on such
Securities for principal, premium, if any, and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal and premium, if any, and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.
If an Event of Default with respect to Securities of any series occurs and
is continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.
Section 5.4 Trustee May File Proofs of Claim. The Trustee may file such
--------------------------------
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee and the Holders of Securities allowed
in any judicial proceedings relating to the Company, its creditors or its
property.
Section 5.5 Trustee May Enforce Claims Without Possession of Securities.
-----------------------------------------------------------
All rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto.
Section 5.6 Delay or Omission not Waiver. No delay or omission by the
----------------------------
Trustee or any Holder of any Securities to exercise any right or remedy accruing
upon an Event of Default shall impair any such right or remedy or constitute a
waiver of or an acquiescence in any such Event of Default.
Section 5.7 Waiver of Past Defaults. The Holders of a majority in
-----------------------
aggregate principal amount of Outstanding Securities of any series by notice to
the Trustee may waive on behalf of the Holders of all Securities of such series
a past Default or Event of Default with respect to that series and its
consequences except (i) a Default or Event of Default in the payment of the
principal of, premium, if any, or interest on any Security of such series or
(ii) in respect of a covenant or provision hereof
-40-
which pursuant to Section 8.2 cannot be amended or modified without the consent
of the Holder of each Outstanding Security of such series adversely affected.
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture.
Section 5.8 Control by Majority. The Holders of a majority in aggregate
-------------------
principal amount of the Outstanding Securities of each series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on it
with respect to Securities of that series; provided, however, that (a) the
-------- -------
Trustee may refuse to follow any direction that conflicts with law or this
Indenture, (b) subject to the provisions of Article 6, the Trustee may refuse to
follow any direction that is unduly prejudicial to the rights of the Holders of
Securities of such series not joining in such direction, it being understood
that the Trustee shall have no duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders or that would in the good
faith judgment of the Trustee have a substantial likelihood of involving the
Trustee in personal liability and (c) the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction.
Section 5.9 Limitation on Suits by Holders. No Holder of any Security of
------------------------------
any series shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless:
(1) the Holder has previously given written notice to the Trustee of a
continuing Event of Default with respect to the Securities of that series;
(2) the Holders of at least 33% in aggregate principal amount of the
Outstanding Securities of that series shall have made a written request to
the Trustee to institute proceedings in respect of such Event of Default in
its own name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense to be,
or which may be, incurred by the Trustee in pursuing the remedy;
-41-
(4) the Trustee for 60 days after its receipt of such notice, request
and the offer of indemnity has failed to institute any such proceedings;
and
(5) during such 60-day period, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of that series has not given
to the Trustee a direction inconsistent with such written request.
No one or more Holders of the Securities of any series shall have any right
in any manner whatever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other of such
Holders, or to obtain or to seek to obtain priority or preference over any other
of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all of such
Holders.
Section 5.10 Rights of Holders to Receive Payment. Notwithstanding any
------------------------------------
other provision of this Indenture, the right of any Holder of a Security to
receive payment of principal of, premium, if any, and, subject to Sections 3.5
and 3.7, interest on such Security, on or after the respective due dates
expressed in such Security (or, in case of redemption, on the Redemption Date),
or, subject to Section 5.9, to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.
Section 5.11 Application of Money Collected. If the Trustee collects any
------------------------------
money pursuant to this Article, it shall pay out the money in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal, premiums, if any, or
interest, upon presentation of the Securities and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:
First: to the Trustee for amounts due under Section 6.9;
-----
Second: to Holders of Securities of a series in respect of which or
------
for the benefit of which such money has been collected for amounts due and
unpaid on such Securities for principal of, premium, if any, and interest,
ratably, without preference or priority of any kind, according to the
amounts due and payable on such Securities for principal, premium, if any,
and interest, respectively; and
-42-
Third: to the Company.
-----
Section 5.12 Restoration of Rights and Remedies. If the Trustee or any
----------------------------------
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Trustee or to such Holder, then and in
every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders shall be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.
Section 5.13 Rights and Remedies Cumulative. Except as otherwise provided
------------------------------
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities in the last paragraph of Section 3.6, no right or remedy
herein conferred upon or reserved to the Trustee or the Holders is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
ARTICLE 6
The Trustee
-----------
Section 6.1 Certain Duties and Responsibilities. (a) With respect to
-----------------------------------
Securities of any series, except during the continuance of an Event of Default
with respect to the Securities of such series,
(1) the Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the
Trustee; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any
-43-
such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture.
(b) In case an Event of Default has occurred and is continuing with
respect to the Securities of any series, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture with respect to the
Securities of such series, and use the same degree of care and skill in
their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his own affairs.
(c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:
------
(1) this subsection shall not be construed to limit the effect of
subsection (a) of this Section;
(2) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be proved
that the Trustee was negligent in ascertaining the pertinent facts;
and
(3) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it with respect to the Securities of
any series in good faith in accordance with the direction of the
Holders of a majority in principal amount of the Outstanding
Securities of such series relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this
Indenture.
(d) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.
(e) Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of
this Section.
-44-
Section 6.2 Rights of Trustee. Subject to the provisions of the Trust
-----------------
Indenture Act:
(a) The Trustee may conclusively rely and shall be protected in acting
or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or
parties.
(b) Any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or a Company Order (other than
delivery of any Security to the Trustee for authentication and delivery
pursuant to Section 3.3, which shall be sufficiently evidenced as provided
therein) and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution.
(c) Whenever in the administration of this Indenture the Trustee shall
deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other
evidence be herein specifically prescribed) may, in the absence of bad
faith on its part, rely upon an Officers' Certificate.
(d) Before the Trustee acts or refrains from acting, the Trustee may
consult with counsel of its selection and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon.
(e) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall
have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.
(f) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts
-45-
or matters as it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or
attorney, at the Company's expense.
(g) The Trustee may act through agents or attorneys and shall not be
responsible for the misconduct or negligence of any agent or attorney
appointed with due care by it hereunder.
(h) The Trustee shall not be charged with knowledge of any Default or
Event of Default with respect to the Securities of any series for which it
is acting as Trustee unless either (i) a Responsible Officer of the Trustee
shall have "actual knowledge" of the Default or Event of Default, or (ii)
written notice of such Default or Event of Default shall have been given to
the Trustee by the Company or by any Holder of Securities of that series or
any other series, or, in the event of a default pursuant to Section 5.1(4),
by the holder of any other indebtedness of the Company or by the trustee of
any other agreement or instrument to which the Company is a party. As used
herein, the term "actual knowledge" means the actual fact or state of
knowing, without any duty to make any investigation or inquiry with regard
thereto.
(i) The Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be authorized or within its
rights or powers conferred on it by this Indenture.
(j) The Trustee shall not be required to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its
duties hereunder, or in the exercise of its rights or powers, if it shall
have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured
to it.
Section 6.3 Trustee May Hold Securities. The Trustee, any Paying Agent,
---------------------------
any Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company,
an Affiliate or Subsidiary with the same rights it would have if it were not
Trustee, Paying Agent, Registrar or such other agent.
Section 6.4 Money Held in Trust. Money held by the Trustee in trust
-------------------
hereunder need not be segregated from other funds except
-46-
to the extent required by law. The Trustee shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed with
the Company.
Section 6.5 Trustee's Disclaimer. The recitals contained herein and in
--------------------
the Securities, except the Trustee's certificates of authentication, shall be
taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representation as to
the validity or adequacy of this Indenture or the Securities. The Trustee shall
not be accountable for the Company's use of the proceeds from the Securities or
for monies paid over to the Company pursuant to the Indenture.
Section 6.6 Notice of Defaults. If a Default occurs and is continuing
------------------
with respect to the Securities of any series and if it is known to the Trustee,
as contemplated by Section 6.2(h), the Trustee shall, within 90 days after it
occurs, transmit, in the manner and to the extent provided in Section 313(c) of
the Trust Indenture Act, notice of all uncured or unwaived Defaults known to it;
provided, however, that, except in the case of a Default in payment on the
-------- -------
Securities of any series, the Trustee may withhold the notice if and so long as
the board of directors, the executive committee or a trust committee of its
directors and/or its Responsible Officers in good faith determines that
withholding such notice is in the interests of Holders of Securities of that
series; provided further, however, that, in the case of any default or breach of
-------- ------- -------
the character specified in Section 5.1(3) with respect to the Securities of such
series, no such notice to Holders shall be given until at least 60 days after
the occurrence thereof.
Section 6.7 Reports by Trustee to Holders. Within 60 days after each
-----------------------------
January 31 of each year commencing with the first January 31 after the first
issuance of Securities pursuant to this Indenture, the Trustee shall transmit by
mail to all Holders of Securities as provided in Section 313(c) of the Trust
Indenture Act a brief report dated as of such January 31, if required by Section
313(a) of the Trust Indenture Act. The Trustee also shall comply with Sections
313(b) and 313(d) of the Trust Indenture Act. A copy of each such report shall,
at the time of such transmission to Holders, be filed by the Trustee with the
Company. The Company will notify the Trustee when any series of Securities are
listed on any stock exchange.
Section 6.8 Securityholder Lists. The Trustee shall preserve in as
--------------------
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Holders of Securities of each series. If the
Trustee is not the
-47-
Registrar, the Company shall furnish to the Trustee semiannually on or before
the last day of June and December in each year, and at such other times as the
Trustee may request in writing, a list, in such form and as of such date as the
Trustee may reasonably require, containing all the information in the possession
of the Registrar, the Company or any of its Paying Agents other than the Trustee
as to the names and addresses of Holders of Securities of each series.
Section 6.9 Compensation and Indemnity. (a) The Company shall pay to the
--------------------------
Trustee from time to time such compensation as shall be agreed between the
Company and the Trustee for all services rendered by it hereunder. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it in connection
with the performance of its duties under this Indenture, except any such expense
as may be attributable to its negligence or bad faith. Such expenses shall
include the reasonable compensation and expenses of the Trustee's agents and
counsel.
(b) The Company shall indemnify the Trustee for and hold it harmless
against, any loss or liability incurred by it without negligence or bad faith on
its part arising out of or in connection with its acceptance or administration
of the trust or trusts hereunder. The Trustee shall notify the Company promptly
of any claim for which it may seek indemnity. The Company shall defend the
claim and the Trustee shall cooperate in the defense. The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel. The Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld or delayed.
(c) The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee through negligence or bad faith.
(d) To secure the payment obligations of the Company pursuant to this
Section, the Trustee shall have a lien prior to the Securities of any series on
all money or property held or collected by the Trustee, except that held in
trust to pay principal, premium, if any, and interest on particular Securities.
(e) When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 5.1(5) or Section 5.1(6), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the
-48-
services are intended to constitute expenses of administration under any
applicable Federal or state bankruptcy, insolvency or other similar law.
(f) The provisions of this Section shall survive the termination of this
Indenture.
Section 6.10 Replacement of Trustee. (a) The resignation or removal of
----------------------
the Trustee and the appointment of a successor Trustee shall become effective
only upon the successor Trustee's acceptance of appointment as provided in
Section 6.11.
(b) The Trustee may resign at any time with respect to the Securities of
any series by giving written notice thereof to the Company. If the instrument
of acceptance by a successor Trustee required by Section 6.11 shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.
(c) The Holders of a majority in aggregate principal amount of the
Outstanding Securities of any series may remove the Trustee with respect to that
series by so notifying the Trustee and the Company and may appoint a successor
Trustee for such series with the Company's consent.
(d) If at any time:
(1) the Trustee fails to comply with Section 310(b) of the Trust
Indenture Act with respect to the Securities of a series after written
request therefor by the Company or by any Holder of a Security of such
series who has been a bona fide Holder of a Security of such series for at
least six months, or
(2) the Trustee with respect to the Securities of any series shall
cease to be eligible under Section 310(a) of the Trust Indenture Act and
shall fail to resign after written request therefor by the Company or by
any Holder of a Security of such series who has been a bona fide Holder of
a Security of such series for at least six months; or
(3) the Trustee with respect to the Securities of any series becomes
incapable of acting, is adjudged a bankrupt or an insolvent or a receiver
or public officer takes charge of the Trustee or its property or affairs
for the purpose of rehabilitation, conservation or liquidation,
-49-
then, in any such case, (i) the Company by or pursuant to a Board Resolution may
remove the Trustee with respect to all Securities, or (ii) subject to Section
315(e) of the Trust Indenture Act, any Holder who has been a bona fide Holder of
a Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee with respect to all Securities of such series and the
appointment of a successor Trustee or Trustees.
(e) If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, with respect to Securities of one or more
series, the Company, by or pursuant to Board Resolution, shall promptly appoint
a successor Trustee with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time
there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 6.11. If,
within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Trustee with
respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with
respect to the Securities of any series shall have been so appointed by the
Company or the Holders and accepted appointment in the manner required by
Section 6.11, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.
Section 6.11 Acceptance of Appointment by Successor. (a) In case of the
--------------------------------------
appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment.
Thereupon, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee, without further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee; but, on the request of the Company or the successor Trustee,
such
-50-
retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee, and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee
hereunder.
(b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and such successor Trustee shall execute and deliver an
indenture supplemental hereto wherein such successor Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, such successor Trustee all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates, (ii) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
as to which the retiring Trustee is not retiring shall continue to be vested in
the retiring Trustee, and (iii) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees as co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.
(c) Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in
paragraph (a) or (b) of this Section, as the case may be.
-51-
(d) No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under the
Trust Indenture Act and this Article.
(e) The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Securities of any series and each appointment of
a successor Trustee with respect to the Securities of any series in the manner
provided for notices to the Holders of Securities in Section 1.6. Each notice
shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.
Section 6.12 Eligibility; Disqualification. There shall at all times be a
-----------------------------
Trustee hereunder which shall be eligible to act as Trustee under Section 310(a)
of the Trust Indenture Act. If a corporation publishes reports of condition at
least annually, pursuant to law or the requirements of Federal, State,
Territorial or District of Columbia supervising or examining authority, then for
the purposes of Section 310(a)(2) of the Trust Indenture Act, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect specified in this Article.
Section 6.13 Merger, Conversion, Consolidation or Succession to Business.
-----------------------------------------------------------
Any corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
Section 6.14 Appointment of Authenticating Agent. The Trustee may appoint
-----------------------------------
an Authenticating Agent or Agents with respect to one or more series of
Securities which shall be
-52-
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon original issue, exchange, registration of transfer or partial
redemption thereof, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as
if authenticated by the Trustee hereunder. Any such appointment shall be
evidenced by an instrument in writing signed by a Responsible Officer of the
Trustee, a copy of which instrument shall be promptly furnished to the Company.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee's certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and, except as may
otherwise be provided pursuant to Section 3.1, shall at all times be a bank or
trust company or corporation organized and doing business and in good standing
under the laws of the United States of America or of any State or the District
of Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less that $1,500,000 and subject to
supervision or examination by Federal or State authorities. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or the requirements of the aforesaid supervising or examining authority,
then, for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.
Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency or corporate trust business of an Authenticating Agent,
shall continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or further act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent for any series of Securities may at any time resign
by giving written notice of resignation to the
-53-
Trustee for such series and to the Company. The Trustee for any series of
Securities may at any time terminate the agency of an Authenticating Agent by
giving written notice of termination to such Authenticating Agent and to the
Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time such Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, the Trustee for such
series may appoint a successor Authenticating Agent which shall be acceptable to
the Company and shall give notice of such appointment to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve in the manner set forth in Section 1.6. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested with all
the rights, powers and duties of its predecessor hereunder, with like effect as
if originally named as an Authenticating Agent herein. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of
this Section.
The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation as may be agreed to in writing with the Company,
including reimbursement of its reasonable expenses for its services under this
Section.
If an appointment with respect to one or more series is made pursuant to
this Section, the Securities of such series may have endorsed thereon, in
addition to or in lieu of the Trustee's certificate of authentication, an
alternate certificate of authentication substantially in the following form:
This is one of the Securities of a series issued under the within-mentioned
Indenture.
, as Trustee
---------------------
By
---------------------------
as Authenticating Agent
By
---------------------------
Authorized Signatory
Section 6.15 Trustee's Application for Instructions from the Company. Any
-------------------------------------------------------
application by the Trustee for written instructions from the Company may, at the
option of the Trustee, set forth in writing any action proposed to be taken or
omitted by the Trustee under this Indenture and the date on and/or after which
such action shall be taken or such omission shall be
-54-
effective. The Trustee shall not be liable for any action taken by, or omission
of, the Trustee in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than
15 Business Days after the date any officer of the Company actually receives
such application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.
Section 6.16 Preservation of Information; Communications to Holders. (a)
------------------------------------------------------
The Trustee shall comply with the obligations imposed upon it pursuant to
Section 312 of the Trust Indenture Act.
(b) Every Holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company nor the Trustee shall
be held accountable by reason of the disclosure of any such information as to
the names and addresses of the Holders in accordance with Section 312 of the
Trust Indenture Act, regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 312(b) of the Trust
Indenture Act.
ARTICLE 7
Consolidation, Merger or Sale by the Company
--------------------------------------------
Section 7.1 Consolidation, Merger or Sale of Assets Permitted. The
-------------------------------------------------
Company may merge or consolidate with or into any other corporation or sell,
convey, transfer or otherwise dispose of all or substantially all of its assets
to any Person, if (i) (A) in the case of a merger or consolidation, the Company
is the surviving corporation or (B) in the case of a merger or consolidation
where the Company is not the surviving corporation and in the case of any such
sale, conveyance, transfer or other disposition, the successor or acquiring
corporation is a corporation organized and existing under the laws of the United
States or a State thereof and such corporation expressly assumes by supplemental
indenture all the obligations of the Company under the Securities and under this
Indenture or such assumption is provided by law, (ii) immediately thereafter,
giving effect to such merger or consolidation, or such sale, conveyance,
transfer or other disposition, no Default or Event of Default shall have
occurred and be continuing, and (iii) the Company has delivered to the Trustee
an Officers' Certificate and an Opinion of Counsel
-55-
each stating that such merger or consolidation, or such sale, conveyance,
transfer or other disposition complies with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied
with. In the event of the assumption by a successor corporation of the
obligations of the Company as provided in clause (i)(B) of the immediately
preceding sentence, such successor corporation shall succeed to and be
substituted for the Company hereunder and under the Securities and all such
obligations of the Company shall terminate.
ARTICLE 8
Supplemental Indentures
-----------------------
Section 8.1 Supplemental Indentures Without Consent of Holders. Without
--------------------------------------------------
the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into indentures
supplemental hereto, in form reasonably satisfactory to the Trustee, for any of
the following purposes:
(1) to evidence the succession of another corporation to the Company
and the assumption by any such successor of the covenants of the Company
herein and in the Securities; or
(2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (and if such covenants are to be
for the benefit of less than all series of Securities, stating that such
covenants are expressly being included solely for the benefit of such
series), or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default with respect to all or any
series of Securities; or
(4) to add to or change any of the provisions of this Indenture to
such extent as shall be necessary to facilitate the issuance of Securities
in global form; or
(5) to add to, change or eliminate any of the provisions of this
Indenture; provided, however, that any such addition, change or elimination
-------- -------
shall become effective only when there is no Security Outstanding of any
series created prior to the execution of such supplemental
-56-
indenture which is entitled to the benefit of such provision; or
(6) to secure the Securities; or
(7) to establish the form or terms of Securities of any series as
permitted by Sections 2.1 and 3.1; or
(8) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one or
more series and to add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of
the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 6.11;
(9) to correct or supplement any provision herein which may be
inconsistent with any other provision herein or to make any other
provisions with respect to matters or questions arising under this
Indenture, provided, however, such action shall not adversely affect the
-------- -------
interests of the Holders of Securities of any series in any material
respect; or to cure any ambiguity or correct any mistake; or
(10) to modify, eliminate or add to the provisions of this Indenture
to such extent as shall be necessary to effect the qualification of this
Indenture under the Trust Indenture Act or under any similar Federal
statute subsequently enacted, and to add to this Indenture such other
provisions as may be expressly required under the Trust Indenture Act.
Section 8.2 With Consent of Holders. With the written consent of the
-----------------------
Holders of a majority of the aggregate principal amount of the Outstanding
Securities of each series adversely affected by such supplemental indenture, the
Company and the Trustee may enter into an indenture or indentures supplemental
hereto to add any provisions to or to change or eliminate any provisions of this
Indenture or of any other indenture supplemental hereto or to modify the rights
of the Holders of Securities of each such series; provided, however, that
-------- -------
without the consent of the Holder of each Outstanding Security of such series
adversely affected thereby, an amendment under this Section may not:
(1) change the Stated Maturity of the principal of, or any installment
of principal of or interest on, any Security, or reduce the principal
amount thereof or the rate of interest thereon or any premium payable upon
the
-57-
redemption thereof, or reduce the amount of the principal of an Original
Issue Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.2, or impair the
right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date);
(2) reduce the percentage in aggregate principal amount of the
Outstanding Securities of any series, the consent of whose Holders is
required for any such supplemental indenture, or the consent of whose
Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences)
provided for in this Indenture;
(3) change any obligation of the Company to maintain an office or
agency in the places and for the purposes specified in Section 9.2; or
(4) make any change in Section 5.7 or this Section 8.2 except to
increase any percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holders
of each Outstanding Security of such series adversely affected thereby.
A supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture, which has expressly been included solely for the
benefit of one or more particular series of Securities, or that modifies the
rights of the Holders of Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
It is not necessary under this Section 8.2 for the Holders to consent to
the particular form of any proposed supplemental indenture, but it is sufficient
if they consent to the substance thereof.
Section 8.3 Compliance with Trust Indenture Act. Every supplemental
-----------------------------------
indenture executed pursuant to this Article shall comply with the requirements
of the Trust Indenture Act as then in effect.
Section 8.4 Execution of Supplemental Indentures. In executing, or
------------------------------------
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the
-58-
modification thereby of the trusts created by this Indenture, the Trustee shall
be entitled to receive, and (subject to Section 315 of the Trust Indenture Act)
shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
Section 8.5 Effect of Supplemental Indentures. Upon the execution of any
---------------------------------
supplemental indenture under this Article, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.
Section 8.6 Reference in Securities to Supplemental Indentures.
--------------------------------------------------
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities of any series so modified as to conform, in the opinion of the
Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series.
Section 8.7 Notice to Holders. Promptly after the execution by the
-----------------
Company and the Trustee of any supplemental indenture under Section 8.2 with
respect to the Securities of any series, the Company shall transmit to all
Holders of such Securities a notice, in accordance with Section 1.6, setting
forth in general terms the substance of such supplemental indenture.
ARTICLE 9
Covenants
---------
Section 9.1 Payment of Principal, Premium, if any, and Interest. The
---------------------------------------------------
Company covenants and agrees for the benefit of the Holders of each series of
Securities that it will duly and punctually pay the principal of, premium, if
any, and interest on the Securities of that series in accordance with the terms
of the Securities of such series and this Indenture. An installment of
-59-
principal or interest shall be considered paid on the date it is due if the
Trustee or Paying Agent holds on that date money designated for and sufficient
to pay the installment.
Section 9.2 Maintenance of Office or Agency. The Company will maintain in
-------------------------------
each Place of Payment for any series of Securities an office or agency where
Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served. The Company will
give prompt written notice to the Trustee of the location and any change in the
location of any such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.
The Company may also from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
-------- -------
any manner relieve the Company of its obligation to maintain an office or agency
in each Place of Payment for Securities of any series for such purposes. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or
agency.
Unless otherwise specified as contemplated by Section 3.1, the Company
hereby initially designates as the Place of Payment for each series of Debt
Securities, the City of Chicago, Illinois.
Unless otherwise specified as contemplated by Section 3.1, the Trustee
shall initially serve as Paying Agent.
Section 9.3 Money for Securities to Be Held in Trust; Unclaimed Money. If
---------------------------------------------------------
the Company shall at any time act as its own Paying Agent with respect to any
series of Securities, it will, on or before each due date of the principal of,
premium, if any, or interest on any of the Securities of that series, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal, premium, if any, or interest so becoming due
until such sums shall be paid to such
-60-
Persons or otherwise disposed of as herein provided, and will promptly notify
the Trustee in writing of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents with respect to
any series of Securities, it will, prior to or on each due date of the
principal, and premium, if any, or interest on any Securities of such series,
deposit with a Paying Agent a sum sufficient to pay the principal, and premium,
if any, or interest so becoming due, such sum to be held in trust for the
benefit of the Persons entitled to such principal, premium or interest, and
(unless such Paying Agent is the Trustee) the Company promptly will notify the
Trustee of its action or failure so to act.
The Company will cause each Paying Agent for any series of Securities other
than the Trustee to execute and deliver to the Trustee an instrument in which
such Paying Agent shall agree with the Trustee, subject to the provisions of
this Section, that such Paying Agent will:
(1) hold all sums held by it for the payment of the principal of,
premium, if any, or interest on Securities of that series in trust for the
benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as herein provided;
(2) give the Trustee notice of any Default by the Company (or any
other obligor upon the Securities of that series) in the making of any
payment of principal, premium, if any, or interest on the Securities; and
(3) at any time during the continuance of any such Default, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or by a Company
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by
the Company or such Paying Agent, such sums to be held by the Trustee upon the
same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such
money.
Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of any
-61-
principal, premium or interest on any Security of any series and remaining
unclaimed for two years after such principal, premium, if any, or interest has
become due and payable shall be paid to the Company on a Company Request, or (if
then held by the Company) shall be discharged from such trust; and the Holder of
such Security shall thereafter, as an unsecured general creditor, look only to
the Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or
-------- -------
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in The City of Chicago, Illinois, or cause to be mailed to such
Holder, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.
Section 9.4 Corporate Existence . Subject to Article 7, the Company will
--------------------
at all times do or cause to be done all things necessary to preserve and keep in
full force and effect its corporate existence and its rights and franchises;
provided, however, that nothing in this Section 9.4 shall prevent the
-------- -------
abandonment or termination of any right or franchise of the Company if, in the
determination of the Company, such abandonment or termination is in the best
interests of the Company and does not materially adversely affect the ability of
the Company to operate its business or to fulfill its obligations hereunder.
Section 9.5 Insurance. The Company covenants and agrees that it will
---------
maintain, and cause each of its Subsidiaries to maintain, insurance with
responsible and reputable insurance companies or associations or through a
program of self-insurance in such amounts and covering such risks as, in the
determination of the Company, are consistent with sound business practice for
corporations engaged in the same or a similar business similarly situated.
Section 9.6 Reports by the Company. The Company covenants:
----------------------
(a) to file with the Trustee, within 30 days after the Company is
required to file the same with the Commission, copies of the annual reports
and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) which the Company may be required to file
with the Commission pursuant to Section 13
-62-
or Section 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"); or, if the Company is not required to file information,
documents or reports pursuant to either of such sections, then to file with
the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such of the supplementary
and periodic information, documents and reports which may be required
pursuant to Section 13 of the Exchange Act in respect of a security listed
and registered on a national securities exchange as may be prescribed from
time to time in such rules and regulations;
(b) to file with the Trustee and the Commission, in accordance with
the rules and regulations prescribed from time to time by the Commission,
such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants provided for in
this Indenture, as may be required from time to time by such rules and
regulations; and
(c) to transmit to all Holders of Securities, within 30 days after the
filing thereof with the Trustee, in the manner and to the extent provided
in Section 313(c) of the Trust Indenture Act, such summaries of any
information, documents and reports required to be filed by the Company
pursuant to subsections (a) and (b) of this Section 9.6, as may be required
by rules and regulations prescribed from time to time by the Commission.
Section 9.7 Annual Review Certificate; Notice of Default. The Company
--------------------------------------------
covenants and agrees to deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company, a brief certificate from the principal
executive officer, principal financial officer or principal accounting officer
as to his or her knowledge of the Company's compliance with all conditions and
covenants under this Indenture. For purposes of this Section 9.7, such
compliance shall be determined without regard to any period of grace or
requirement of notice provided under this Indenture. The Company shall file
with the Trustee written notice of the occurrence of any Event of Default within
45 Business Days of its becoming aware of any such Event of Default.
Section 9.8 Provision of Financial Statements. If the Company is not
---------------------------------
required to file with the Commission periodic reports and other information
pursuant to Section 13(a), 13(c) or 15(d) of the Exchange Act, the Company shall
furnish without cost to each Holder and file with the Trustee (i) within 135
days after the end of each fiscal year, annual reports containing the
-63-
information required to be contained in Items 1, 2, 3, 6, 7, 8 and 9 of Form 10-
K promulgated under the Exchange Act, or substantially the same information
required to be contained in comparable items of any successor form, (ii) within
60 days after the end of each of the first three fiscal quarters of each fiscal
year, quarterly reports containing the information required to be contained in
Form 10-Q promulgated under the Exchange Act, or substantially the same
information required to be contained in any successor form, and (iii) promptly
from the time after the occurrence of an event required to be therein reported,
such other reports containing information required to be contained in Form 8-K
promulgated under the Exchange Act, or substantially the same information
required to be contained in any successor form.
Section 9.9 Limitation on Liens. (a) The Company will not issue, assume
-------------------
or guarantee any indebtedness for borrowed money (referred to in this Section
9.9 as "indebtedness") secured by a mortgage, encumbrance, security interest,
pledge, lien or charge (referred to in this Section 9.9 as a "pledge" or
"pledges") of or upon any property of the Company whether such property is owned
at the date of this Indenture or thereafter acquired, without making effective
provision whereby the Securities (together with, if the Company shall so
determine, any other indebtedness issued, assumed or guaranteed by the Company
and then existing or thereafter created) shall be secured by such pledge equally
and ratably with (or, at the option of the Company, prior to) such indebtedness,
so long as such indebtedness shall be so secured; provided, however, that the
-------- -------
foregoing shall not apply to any of the following:
(1) pledges upon any shares of capital stock or indebtedness acquired
by the Company after the date of this Indenture (A) to secure the payment
of all or any part of the purchase price of such shares of capital stock or
indebtedness upon the acquisition thereof by the Company, or (B) to secure
any indebtedness issued, assumed or guaranteed by the Company prior to, at
the time of, or within 360 days after the acquisition of such shares of
capital stock or indebtedness, which indebtedness is issued, assumed or
guaranteed for the purpose of financing or refinancing all or any part of
the purchase price of such shares of capital stock or indebtedness;
(2) pledges of or upon shares of capital stock or indebtedness, which
pledges exist at the time of acquisition of such shares or indebtedness by
the Company;
(3) pledges of or upon any property of a corporation, which pledges
exist at the time such corporation is merged
-64-
with or into or consolidated with the Company or which pledges exist at the
time of a sale or transfer of the properties of a corporation as an
entirety or substantially as an entirety to the Company;
(4) mortgages existing on the date of execution of this Indenture;
and
(5) any extension, renewal, substitution, refinancing, refunding or
replacement (or successive extensions, renewals, substitutions,
refinancings, refundings or replacements) (each a "refinancing") in whole
or in part of any pledge existing at the date of the Indenture or any
pledge referred to in the foregoing clauses (1) through (4), inclusive,
provided, however, that the principal amount of indebtedness secured
-------- -------
thereby shall not exceed the principal amount of indebtedness so secured at
the time of the refinancing plus the aggregate amount of premiums, other
payments, costs and expenses required to be paid or incurred in connection
with the refinancing, and that the refinancing shall be limited to all or a
part of the shares of capital stock or indebtedness which was subject to
the pledge so extended, renewed, substituted, refinanced, refunded or
replaced.
(b) Notwithstanding the provisions of subsection (a) of this Section, the
Company may, without equally and ratably securing the Securities, issue, assume
or guarantee indebtedness secured by a pledge not excepted by clauses (1)
through (5), so long as after giving effect thereto, the Company will own at
least 80% of the capital stock of all of its Material Subsidiaries then issued
and outstanding, free and clear of any pledge.
Section 9.10 Ownership of Material Subsidiary Stock. The Company
--------------------------------------
covenants that it will not take any action which would result in a decrease in
the percentage of the outstanding shares of voting stock of any Material
Subsidiary directly or indirectly owned by the Company, except as the result of
(1) the issuance of directors' qualifying shares, (2) the declaration and
payment of patronage refunds, (3) the purchase or retirement of shares with the
proceeds of newly issued shares, or (4) the sale of capital stock at a price
determined by the Company (which determination may be evidenced by a resolution
of the Company's Board of Directors) to be the fair value thereof.
Section 9.11 Transactions with Affiliates. The Company covenants that it
----------------------------
will not enter into any transaction, including, without limitation, the
purchase, sale or exchange of property or
-65-
the rendering of any service, with any Affiliate of the Company or any
Subsidiary except in the ordinary course of business and upon fair and
reasonable terms taking into account the nature of the Company's or the
Subsidiary's business.
Section 9.12 Limitation on Sale or Issuance of Capital Stock or
--------------------------------------------------
Convertible Securities of and Merger or Sale of Assets by, a Bank. The Company
-----------------------------------------------------------------
covenants that it will not:
(1) nor will it permit any Bank to, issue, sell, transfer, assign,
pledge or otherwise dispose of any shares of capital stock of any class of
a Bank or any securities convertible or exchangeable into shares of capital
stock of any class of a Bank unless after giving effect to such transaction
and to shares issuable upon conversion or exchange of outstanding
securities convertible or exchangeable into such capital stock (including
such securities, if any, which may be the subject of such transaction), at
least 80% of the outstanding shares of capital stock of each class of such
Bank shall be owned at that time by the Company; or
(2) permit a Bank to merge or consolidate or convey or transfer all
or substantially all of its assets, unless at least 80% of the capital
stock of each class (after giving effect to such transaction and to shares
issuable upon conversion or exchange of outstanding securities convertible
or exchangeable into capital stock, including such securities, if any,
which may be issued in such transaction) of the surviving corporation in
the case of a merger or consolidation or of the transferee corporation in
the case of a conveyance or transfer, shall be owned at that time by the
Company.
Section 9.13 Waiver of Certain Covenants. The Company may fail or omit in
---------------------------
any particular instance to comply with the covenants set forth in this Article
IX (other than Sections 9.1, 9.2 and 9.4) with respect to any series of
Securities if the Company shall have obtained and filed with the Trustee prior
to the time for such compliance the consent in writing of the Holders of at
least a majority in aggregate principal amount of all of the Securities of such
series at the time Outstanding either waiving such compliance in such instance
or generally waiving compliance with such covenant or covenants, but no such
waiver shall extend to or affect any obligation not expressly waived or impair
any right consequent thereon.
-66-
ARTICLE 10
Redemption
----------
Section 10.1 Applicability of Article. Securities of any series which are
------------------------
redeemable before their Stated Maturity shall be redeemable in accordance with
their terms and (except as otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article.
Section 10.2 Election to Redeem; Notice to Trustee. The election of the
-------------------------------------
Company to redeem any Securities shall be evidenced by or pursuant to a Board
Resolution or an Officers' Certificate. In the case of any redemption at the
election of the Company of less than all the Securities of any series, the
Company shall, at least 45 days prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of such Redemption Date, of the principal amount of Securities of
such series to be redeemed and, if applicable, of the tenor of the Securities to
be redeemed. In the case of any redemption of Securities (a) prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities, or (b) pursuant to an election of the Company which is subject to a
condition specified in the terms at such Securities, the Company shall furnish
the Trustee with an Officers' Certificate evidencing compliance with such
restriction or condition.
Section 10.3 Selection of Securities to Be Redeemed. Unless otherwise
--------------------------------------
specified as contemplated by Section 3.1, if less than all the Securities of a
series with the same original issue date, interest rate and Stated Maturity are
to be redeemed, the Trustee, not more than 45 days prior to the Redemption Date,
shall select the Securities of the series to be redeemed in such manner as the
Trustee shall deem fair and appropriate. The Trustee shall make the selection
from the Securities of the series that are Outstanding and that have not
previously been called for redemption and may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series.
The Trustee shall promptly notify the Company and the Registrar in writing
of the Securities selected by the Trustee for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be
redeemed.
-67-
For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion
of the principal amount of such Securities which has been or is to be redeemed.
Section 10.4 Notice of Redemption. Unless otherwise specified as
--------------------
contemplated by Section 3.1, notice of redemption shall be given in the manner
provided in Section 1.6 not less than 30 days nor more than 60 days prior to the
Redemption Date to the Holders of the Securities of any series to be redeemed.
All notices of redemption shall state:
(1) the Redemption Date;
(2) the Redemption Price;
(3) if fewer than all the Outstanding Securities of a series are to be
redeemed, the identification (and, in the case of partial redemption, the
principal amounts) of the particular Security or Securities to be redeemed;
(4) in case any Security is to be redeemed in part only, the notice
which relates to such Security shall state that on and after the Redemption
Date, upon surrender of such Security, the Holder will receive, without a
charge, a new Security or Securities of such series of authorized
denominations for the principal amount thereof remaining unredeemed;
(5) the Place or Places of Payment where such Securities maturing
after the Redemption Date are to be surrendered for payment for the
Redemption Price;
(6) that Securities of the series called for redemption must be
surrendered to the Paying Agent to collect the Redemption Price;
(7) that, on the Redemption Date, the Redemption Price will become due
and payable upon each such Security, or the portion thereof, to be redeemed
and, if applicable, that interest thereon will cease to accrue on and after
said date;
(8) that the redemption is for a sinking fund, if such is the case;
and
-68-
(9) if applicable, the CUSIP number for the Securities of the series
called for redemption.
Notice of redemption of Securities to be redeemed shall be given by the
Company or, at the Company's request, by the Trustee in the name and at the
expense of the Company.
Section 10.5 Deposit of Redemption Price. On or prior to any Redemption
---------------------------
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 9.3) an amount of money sufficient to pay on the Redemption
Date the Redemption Price of, and (unless the Redemption Date shall be an
Interest Payment Date) interest accrued to the Redemption Date on, all
Securities or portions thereof which are to be redeemed on that date.
Section 10.6 Securities Payable on Redemption Date. Notice of redemption
-------------------------------------
having been given as aforesaid, the Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified, and from and after such date (unless the Company shall default in the
payment of the Redemption Price and accrued interest) such Securities shall
cease to bear interest. Upon surrender of any such Security for redemption in
accordance with said notice, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date;
provided, however, that installments of interest on Securities whose Stated
-------- -------
Maturity is prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.7.
If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal (and premium, if any) shall, until paid,
bear interest from the Redemption Date at the rate prescribed therefor in the
Security.
Section 10.7 Securities Redeemed in Part. Upon surrender of a Security
---------------------------
that is redeemed in part at any Place of Payment therefor (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 his attorney duly authorized in writing), the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
that Security, without service charge, a new Security or Securities of the same
series, the same form and the same Maturity in any authorized denomination equal
in
-69-
aggregate principal amount to the unredeemed portion of the principal of the
Security surrendered.
ARTICLE 11
Sinking Funds
-------------
Section 11.1 Applicability of Article. The provisions of this Article
------------------------
shall be applicable to any sinking fund for the retirement of Securities of a
series except as otherwise specified as contemplated by Section 3.1 for
Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment", and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment". Except as otherwise specified by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 11.2. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.
Section 11.2 Satisfaction of Sinking Fund Payments with Securities. The
-----------------------------------------------------
Company (a) may deliver Outstanding Securities of a series (other than any such
Securities previously called for redemption), and (b) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series; provided that such Securities have not been previously so credited.
--------
Such Securities shall be received and credited for such purpose by the Trustee
at the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.
Section 11.3 Redemption of Securities for Sinking Fund. Not less than 60
-----------------------------------------
days prior to each sinking fund payment date for any series of Securities
(unless a shorter period shall be satisfactory to the Trustee), the Company
shall deliver to the Trustee an Officers' Certificate specifying the amount of
the
-70-
next ensuing sinking fund payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by payment of cash
and the portion thereof, if any, which is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 11.2 and shall also
deliver to the Trustee any Securities to be so credited and not theretofore
delivered to the Trustee. Not less than 30 days before each such sinking fund
payment date (unless a shorter period shall be satisfactory to the Trustee), the
Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 10.3 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 10.4. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 10.5, 10.6 and 10.7.
----------------------
This Indenture may be executed with counterpart signature pages or in any
number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, all as of the day and year first above written.
ST. XXXX BANCORP, INC.
By:
---------------------------------
Name:
Title:
XXXXXX TRUST AND SAVINGS BANK, as Trustee
By:
---------------------------------
Name:
Title:
-71-
