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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 22, 1999
REGISTRATION STATEMENT NO. 333-____________
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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RANGE RESOURCES CORPORATION
RANGE OPERATING COMPANY RANGE GAS COMPANY
RANGE PRODUCTION COMPANY LOMAK FINANCING TRUST
BUFFALO OILFIELD SERVICES, INC. RRC OPERATING COMPANY
RANGE ENERGY SERVICES COMPANY RANGE ENERGY VENTURES CORPORATION
RANGE RESOURCES DEVELOPMENT COMPANY GULFSTAR ENERGY, INC.
RANGE ENERGY I, INC. GULFSTAR SEISMIC, INC.
RANGE GATHERING & PROCESSING COMPANY
(exact name of registrants as specified in their charters)
DELAWARE 34-1312571
OHIO 34-1198756
DELAWARE 75-1722213
OHIO 34-1458616
DELAWARE 75-2423912
DELAWARE 34-1772901
DELAWARE 52-1996729
DELAWARE 52-2016991
DELAWARE 52-2016989
DELAWARE __________
OHIO 34-1570492
DELAWARE 76-0405733
DELAWARE 76-0328570
DELAWARE 76-0428570
(state or jurisdiction of incorporation or organization) (I.R.S. employer identification no.)
JOHN H. PINKERTON
RANGE RESOURCES CORPORATION
500 THROCKMORTON STREET 500 THROCKMORTON STREET
FORT WORTH, TEXAS 76102 FORT WORTH, TEXAS 76102
(817) 870-2601 (817) 870-2601
(address, including zip code, and telephone number, including (name, address, including zip code, and telephone number,
area code of registrants' principal executive offices) including area code, of agent for service)
Copy to:
J. MARK METTS
VINSON & ELKINS L.L.P.
2300 FIRST CITY TOWER
1001 FANNIN
HOUSTON, TEXAS 77002-6760
(713) 758-2222
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time after the registration statement becomes effective. If the only
securities being registered on this Form are being offered pursuant to
dividend or interest reinvestment plans, please check the
following box: [ ]
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If any of the securities being registered on this form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box: [X]
If this form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act of 1933, please check
the following box and list the Securities Act registration statement number of
the earlier effective registration statement for the same offering. [ ]
If this form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act of 1933, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. [X]
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CALCULATION OF REGISTRATION FEE
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PROPOSED PROPOSED
TITLE OF EACH CLASS OF SECURITIES AMOUNT TO MAXIMUM MAXIMUM AMOUNT OF
TO BE REGISTERED BE REGISTERED OFFERING PRICE AGGREGATE REGISTRATION FEE
PER UNIT (1) OFFERING PRICE (2)
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Debt Securities (3)......................
Preferred Stock, par value $1.00 per share
(4)(5).......................................
Depositary Shares (5).................... (6) (6) (6) (6)
Common Stock, par value $.01 per share (7)
Warrants (8).............................
Guarantees of Debt Securities (9)........
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Total.................................... $125,000,000 (10) 100% $125,000,000(10) $34,750
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Footnotes to Table on next page
THE REGISTRANTS HEREBY AMEND THIS REGISTRATION STATEMENT ON THE DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANTS
SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON THE DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING
PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.
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Footnotes to table from cover page
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(1) The proposed maximum offering price per unit will be determined from
time to time by Range Resources Corporation in connection with the
issuance by Range Resources Corporation of the securities registered
hereunder.
(2) The proposed maximum aggregate offering price has been estimated
solely for the purpose of calculating the registration fee pursuant to
Rule 457(o) under the Securities Act of 1933.
(3) Subject to note (10) below, there is being registered hereunder an
indeterminate principal amount of Debt Securities. If any Debt
Securities are issued at an original issue discount, then the offering
price shall be in the greater principal amount as shall result in an
aggregate initial offering price not to exceed $125,000,000 less the
dollar amount of any securities previously issued hereunder.
(4) Subject to note (10) below, there is being registered hereunder an
indeterminate number of shares of Preferred Stock as may be sold, from
time to time, by Range Resources Corporation.
(5) Subject to note (10) below, there is being registered hereunder an
indeterminate number of Depositary Shares to be evidenced by
Depositary Receipts issued pursuant to a Deposit Agreement. If Range
Resources Corporation elects to offer to the public fractional
interests in shares of Preferred Stock registered hereunder,
Depositary Receipts will be distributed to those persons purchasing
the fractional interests and the shares of Preferred Stock will be
issued to the depositary under the Deposit Agreement.
(6) Not applicable pursuant to General Instruction II.D. of Form S-3.
(7) Subject to note (10) below, there is being registered hereunder an
indeterminate number of shares of Common Stock as may be sold, from
time to time, by Range Resources Corporation. There are also being
registered hereunder an indeterminate number of shares of Common Stock
as shall be issuable upon conversion or redemption of Preferred Stock
or Debt Securities registered hereunder.
(8) Subject to note (10) below, there is being registered hereunder an
indeterminate amount and number of Warrants, representing rights to
purchase Debt Securities, Preferred Stock, or Common Stock registered
hereunder.
(9) Subject to (10) below, there is being registered hereunder an
indeterminate principal amount of Guarantees of Debt Securities.
(10) In no event will the aggregate initial offering price of all
securities issued from time to time pursuant to this Registration
Statement exceed $125,000,000 or the equivalent thereof in one or more
foreign currencies, foreign currency units, or composite currencies.
The aggregate amount of Common Stock registered hereunder is further
limited to that which is permissible under Rule 415(a)(4) under the
Securities Act of 1933. The securities registered hereunder may be
sold separately or as units with other securities registered
hereunder.
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SUBJECT TO COMPLETION, DATED APRIL 22, 1999
PROSPECTUS
RANGE RESOURCES CORPORATION
$125,000,000
DEBT SECURITIES
COMMON STOCK
PREFERRED STOCK
DEPOSITARY SHARES
WARRANTS
GUARANTEES OF DEBT SECURITIES
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Range Resources Corporation ("Range") may offer and sell from time to time
in one or more classes or series and in amounts, at prices and on terms that we
will determine at the time of the offering, with an aggregate initial offering
price of up to $125,000,000:
o debt securities;
o common stock;
o preferred stock;
o depositary shares relating to preferred stock of Range;
o warrants to purchase debt securities, common stock or preferred
stock; and
o guarantees of one or more subsidiaries of Range of the payment of debt
securities issued by Range.
We will provide specific terms of these securities in supplements to this
prospectus. You should read this prospectus and any supplement carefully before
you invest.
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Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.
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This prospectus is dated __________, 1999.
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RED HERRING LANGUAGE FOR PROSPECTUS COVER PAGE
The information in this prospectus is not complete and may be changed. We
may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an
offer to sell these securities and it is not soliciting an offer to buy these
securities in any state where the offer or sale is not permitted.
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TABLE OF CONTENTS
About this Prospectus.........................................................................................2
Where You Can Find More Information...........................................................................2
Range.........................................................................................................3
Use of Proceeds...............................................................................................3
Ratio of Earnings To Fixed Charges and Earnings to Fixed Charges and Preferred Stock Dividends................4
Description of Debt Securities................................................................................4
Description of Capital Stock.................................................................................12
Description of Depositary Shares.............................................................................13
Description of Warrants......................................................................................15
Description of Guarantees....................................................................................17
Plan of Distribution.........................................................................................18
Legal Matters................................................................................................19
Experts......................................................................................................19
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission (the "SEC") using a "shelf" registration
process. Under this shelf process, we may, over the next two years, sell any
combination of the securities described in this prospectus in one or more
offerings up to a total dollar amount of $125,000,000. This prospectus provides
you with a general description of the securities we may offer. Each time we
sell securities, we will provide a prospectus supplement that will contain
specific information about the terms of that offering. The prospectus
supplement may also add, update or change information contained in this
prospectus. You should read both this prospectus and any prospectus supplement
together with additional information described under the heading "Where You Can
Find More Information."
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other
information with the SEC. Our SEC filings are available to the public over the
Internet at the SEC's web site at http:// www.sec.gov. You may also read and
copy any document we file with the SEC at its public reference rooms in
Washington, D.C., New York, New York and Chicago, Illinois. Please call the SEC
at 1-800-SEC-0330 for further information on the public reference rooms. Our
filings with the SEC are also available at the office of the New York Stock
Exchange. For more information on obtaining copies of our public filings at the
New York Stock Exchange, you should call (212) 656-5060.
The SEC allows us to "incorporate by reference" the information we file
with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
an important part of this prospectus, and information that we file later with
the SEC will automatically update and supersede this information. We
incorporate by reference the documents listed below and any future filings made
with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange
Act of 1934 until we sell all of the securities.
o Annual Report on Form 10-K for the year ended December 31, 1998, dated
March 15, 1999; and
o The description of Range's common stock contained in the registration
statement on Form 8-A, dated July 16, 1996.
You may request a copy of these filings (other than an exhibit to a filing
unless that exhibit is specifically incorporated by reference into that filing)
at no cost, by writing or telephoning us at the following address:
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Range Resources Corporation
500 Throckmorton Street
Fort Worth, Texas 76102
Attention: Corporate Secretary
(817) 870-2601
You should rely only on the information incorporated by reference or
provided in this prospectus or any prospectus supplement. We have not
authorized anyone else to provide you with different information. We are only
offering these securities in states where the offer is permitted. You should
not assume that the information in this prospectus or any prospectus supplement
is accurate as of any date other than the date on the front of those documents.
RANGE
Range is an independent oil and gas company operating in the Appalachian,
Permian, Midcontinent and Gulf Coast regions of the United States. Range seeks
to build value through a balanced approach of low-risk development and
acquisition, higher-risk exploitation and exploration, and the financing of
smaller independent producers.
In order to effectively implement its operating strategy, Range has
concentrated its activities in selected geographic areas. In our core areas, we
have established separate business units, each with operating, engineering,
geological, land and acquisition expertise. At December 31, 1998, Range had
combined proved reserves totaling 796 Bcfe, having an estimated pre-tax present
value at constant prices of $555 million. On an Mcfe basis, on that date, the
reserves were 80% natural gas, were 80% operated by Range and had a reserve
life index in excess of 13 years.
In August 1998, we changed our name from Lomak Petroleum, Inc. to Range
Resources Corporation. Range's common stock is listed on the New York Stock
Exchange under the symbol "RRC." Our executive offices and operating
headquarters are located at 500 Throckmorton Street, Fort Worth, Texas 76102,
and our telephone number at those offices is (817) 870-2601.
USE OF PROCEEDS
Unless we specify otherwise in the applicable prospectus supplement, the
net proceeds from the sale of offered securities will be used for general
corporate purposes, which may include:
o repaying debt;
o redeeming or repurchasing securities of Range or any subsidiary;
o providing working capital; and
o funding expenditures, including paying for exploration, development and
acquisitions.
We may temporarily invest the net proceeds we receive from any offering of
securities or use the net proceeds to repay short-term debt until we can use
them for their stated purposes.
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RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Our consolidated ratios of earnings to fixed charges and earnings to fixed
charges and preferred stock dividends for each of the periods indicated are as
follows:
YEAR ENDED DECEMBER 31
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1994 1995 1996 1997 1998
---- ---- ---- ---- ----
Ratio of earnings to fixed charges..................... 2.0x 2.1x 3.6x (a) (a)
Ratio of earnings to fixed charges and preferred
stock dividends...................................... 1.7x 1.9x 2.7x (a) (a)
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(a) The ratio indicates a less than one-to-one coverage because the
earnings were inadequate to cover the fixed charges for the period.
Our historical earnings for the years ended December 31, 1997 and 1998
were insufficient to cover our fixed charges. The amounts of the
deficiencies were $35.2 million and $229.6 million in 1997 and 1998,
respectively, for the ratio of earnings to fixed charges and $37.5
million and $232.0 million, respectively, for the ratio of earnings to
fixed charges and preferred stock dividends.
These ratios are based on continuing operations. "Earnings" is determined
by adding:
o income before income taxes, and
o fixed charges, net of interest capitalized.
"Fixed charges" consist of interest (whether expensed or capitalized) and that
portion of rentals considered to be representative of the interest factor.
"Fixed charges and preferred stock dividends" represent fixed charges (as
described above) and preferred stock dividend requirements of Range.
DESCRIPTION OF DEBT SECURITIES
The debt securities will be issued under an indenture between us and a
trustee chosen by us. The trustee for each series of debt securities will be
identified in the applicable prospectus supplement.
The following description highlights the general terms and provisions of
the debt securities. The summary is not complete. When debt securities are
offered in the future, the prospectus supplement will explain the particular
terms of those securities and the extent to which these general provisions may
apply.
The form of the indenture has been filed as an exhibit to the registration
statement and you should read the indenture for provisions that may be
important to you. Capitalized terms used in the summary have the meanings
specified in the indenture.
GENERAL
Any debt securities we offer will be our direct, unsecured general
obligations. The debt securities will be either senior debt securities or
subordinated debt securities. The senior debt securities will rank equally with
all of our other senior and unsubordinated debt. The subordinated debt
securities will have a junior position to all of our Senior Indebtedness.
The indenture does not limit the aggregate principal amount of debt
securities that can be issued. The debt securities may be issued in one or more
series as may be authorized from time to time by Range.
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A prospectus supplement and a supplemental indenture relating to any series
of debt securities being offered will include specific terms relating to the
offering. These terms will include some or all of the following:
o the title of the debt securities;
o the total principal amount of the debt securities;
o the dates on which the principal and premium, if any, of the debt
securities will be payable;
o the interest rate (or method of determining the rate) which the debt
securities will bear and the interest payment dates for the debt
securities;
o the place where we will pay (or the method of payment of) principal,
premium and interest on the debt securities;
o any optional redemption periods and prices;
o whether we will issue the debt securities in registered or bearer form;
o any special provisions relating to bearer securities or global
securities representing individual bearer securities;
o any sinking fund or other provisions that would obligate us to
repurchase or otherwise redeem the debt securities;
o any rights of the holders of the debt securities to convert or exchange
the debt securities into or for other securities or property and the
terms and conditions of the conversion or exchange;
o the denominations in which we will issue the debt securities, if other
than $1,000 and any integral multiple thereof;
o the manner in which we will determine the amounts of principal, premium
or interest payments on the debt securities if these amounts may be
determined by reference to an index or based on a formula;
o if prior to maturity the actual principal amount of the debt securities
payable at maturity is not determinable, the manner in which we will
determine the deemed principal amount of the debt securities payable at
maturity;
o any changes or additions to the defeasance or discharge provisions;
o the currency in which we will pay principal, premium and interest on
the debt securities if other than the United States dollar;
o if other than the entire principal amount, the portion of the principal
amount of the debt securities (a) payable if the maturity of the debt
securities is accelerated or (b) provable in bankruptcy;
o any provisions relating to any security provided for the debt
securities;
o any change in or addition to the events of default;
o whether we will issue the debt securities in the form of global
securities and the terms and conditions of the global securities;
o any trustees, authenticating or paying agents, transfer agents or
registrars with respect to the debt securities;
o any change or addition to the covenants, definitions or to the
provisions relating to our consolidation, merger, sale or conveyance of
assets;
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o the terms of any guarantee of the debt securities;
o any subordination provisions relating to the debt securities;
o the dates for certain required reports to the trustee relating to debt
securities which do not bear interest; and
o any other terms of the debt securities.
The indenture does not limit the amount of debt securities that may be
issued. The indenture allows debt securities to be issued up to the principal
amount that may be authorized by us.
We may issue debt securities at a discount below their stated principal
amount. Even if we do not issue the debt securities below their stated
principal amount, for United States federal income tax purposes the debt
securities may be deemed to have been issued with a discount because of certain
interest payment characteristics. We will describe in a prospectus supplement
the United States federal income tax considerations applicable to debt
securities issued at a discount or deemed to be issued at a discount. We will
also describe in a prospectus supplement the special United States federal
income tax considerations or other restrictions or terms applicable to debt
securities issuable in bearer form, offered exclusively to foreigners or
denominated in a foreign currency.
DENOMINATIONS, REGISTRATION, TRANSFER AND PAYMENT
Range may issue the debt securities in registered form without coupons, in
bearer form with or without coupons or in the form of one or more global
securities, as described below under the heading "Global Securities." Unless
specified by us otherwise in the prospectus supplement, registered securities
denominated in U.S. dollars will be issued only in denominations of $1,000 or
any integral multiple of $1,000. Global securities will be issued in a
denomination equal to the total principal amount of outstanding debt securities
of the series represented by the global security. The denomination of debt
securities denominated in a foreign or composite currency will be described in
a prospectus supplement. If debt securities are issuable as bearer securities,
certain special limitations and considerations, which will be described in a
prospectus supplement, will apply.
You may present registered securities for exchange or transfer at the
corporate trust office of the trustee or at any other office or agency
maintained by us for such purpose, without payment of any service charge except
for any tax or governmental charge. Bearer securities will be transferable only
by delivery. We will describe the specific terms for the exchange of bearer
securities in a prospectus supplement.
Range will pay principal and any premium and interest on registered
securities at the corporate trust office of the trustee or at any other office
or agency maintained by us for such purpose. Range may choose to make any
interest payment on a registered security (a) by check mailed to the address of
the holder as such address shall appear in the register or (b) if provided in
the prospectus supplement, by wire transfer to an account maintained by the
holder as specified in the register. Range will make interest payments to the
person in whose name the debt security is registered at the close of business
on the day specified by Range.
We will make no payment of principal, premium or interest on bearer
securities at any of our offices or agencies in the United States or by check
mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States.
GLOBAL SECURITIES
We may issue the debt securities in whole or in part in the form of one or
more global securities. A global security is a security, typically held by a
depositary, that represents the beneficial interests of a number of purchasers
of such security. We may issue the global securities in either registered or
bearer form and in either temporary or permanent form. We will deposit global
securities with the depositary identified in the prospectus supplement. Unless
it is exchanged in whole or in part for debt securities in definitive form, a
global certificate may generally be transferred only as a whole unless it is
being transferred to certain nominees of the depositary.
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We will describe the specific terms of the depositary arrangement with
respect to a series of debt securities in a prospectus supplement. We expect
that the following provisions will generally apply to depositary arrangements.
After we issue a global security, the depositary will credit on its
book-entry registration and transfer system the respective principal amounts of
the debt securities represented by such global security to the accounts of
persons that have accounts with such depositary ("participants"). The
underwriters or agents participating in the distribution of the debt securities
will designate the accounts to be credited. If we offer and sell the debt
securities directly or through agents, either we or our agents will designate
the accounts. Ownership of beneficial interests in a global security will be
limited to participants or persons that may hold interests through
participants. Ownership of beneficial interests in the global security will be
shown on, and the transfer of that ownership will be effected only through,
records maintained by the depositary and its participants.
We and the trustee will treat the depositary or its nominee as the sole
owner or holder of the debt securities represented by a global security. Except
as set forth below, owners of beneficial interests in a global security will
not be entitled to have the debt securities represented by such global security
registered in their names, will not receive or be entitled to receive physical
delivery of such debt securities in definitive form and will not be considered
the owners or holders of the debt securities. The laws of some States require
that certain purchasers of securities take physical delivery of the securities.
Such laws may impair the ability to transfer beneficial interests in a global
security.
Principal, any premium and any interest payments on debt securities
represented by a global security registered in the name of a depositary or its
nominee will be made to such depositary or its nominee as the registered owner
of such global security.
We expect that the depositary or its nominee, upon receipt of any payments,
will immediately credit participants' accounts with payments in amounts
proportionate to their respective beneficial interests in the principal amount
of the global security as shown on the depositary's or its nominee's records.
We also expect that payments by participants to owners of beneficial interest
in the global security will be governed by standing instructions and customary
practices, as is the case with the securities held for the accounts of
customers registered in "street names" and will be the responsibility of such
participants.
If the depositary is at any time unwilling or unable to continue as
depositary and a successor depositary is not appointed by Range within ninety
days, Range will issue individual debt securities in exchange for such global
security. In addition, Range may at any time in its sole discretion determine
not to have any of the debt securities of a series represented by global
securities and, in such event, will issue debt securities of such series in
exchange for such global security.
None of Range, the trustee or any paying agent will have any responsibility
or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests in such global security or for
maintaining, supervising or reviewing any records relating to such beneficial
ownership interests. No such person will be liable for any delay by the
depositary or any of its participants in identifying the owners of beneficial
interests in a global security, and Range, the trustee and any paying agent may
conclusively rely on instructions from the depositary or its nominee for all
purposes.
SUBORDINATION
Debt securities may be subordinated to Senior Indebtedness to the extent
set forth in the applicable prospectus supplement. Range currently conducts
substantially all its operations through subsidiaries, and, subject to the
terms of any guarantee that may be entered into in connection with the issuance
of a series of debt securities, the holders of debt securities, whether or not
subordinated debt securities, will generally have a junior position to the
creditors of Range's subsidiaries.
Under the indenture, payment of the principal, interest and any premium on
the subordinated debt securities will generally be subordinated and junior in
right of payment to the prior payment in full of all debt of Range designated
as "Senior Indebtedness." Upon distribution of Range's assets to our creditors
or upon the liquidation or dissolution of Range or in a bankruptcy or similar
proceedings relating to Range or its property, holders of our Senior
Indebtedness
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will be entitled to receive payment in full in cash before the holders of the
subordinated debt securities can receive any payment with respect to the
subordinated debt securities. The indenture also provides that no payment of
principal, interest and any premium on the subordinated indebtedness securities
may be made in the event:
o we fail to pay the principal, interest or any premium on any senior
indebtedness within any applicable grace period, or
o any other default on Senior Indebtedness occurs and the maturity of the
Senior Indebtedness is accelerated.
Additionally, if we otherwise have a default with respect to Senior
Indebtedness and the maturity of the Senior Indebtedness could be accelerated
as a result of such default, then the representatives of the holders of such
indebtedness that has been designated as "Designated Senior Indebtedness" may
require that we suspend any payment on the subordinated debt securities for a
period of 180 days. Not more than one blockage period may occur in any
consecutive 360-day period.
Senior Indebtedness means our indebtedness that is designated as such by
our board of directors or in a supplemental indenture at the time that the
terms of the subordinated debt are established. The indenture will not limit
the amount of Senior Indebtedness that we may incur.
By reason of the subordination, in the event of Range's insolvency, our
creditors who are holders of senior indebtedness, as well as certain general
creditors, may recover more, ratably, than the holders of the subordinated debt
securities.
CONSOLIDATION, MERGER OR SALE OF ASSETS
The indenture generally permits a consolidation or merger between us and
another corporation or other entity. It also permits the sale or lease by us of
all or substantially all of our property and assets. If this happens, the
remaining or acquiring corporation or other entity shall assume all of our
responsibilities and liabilities under the indenture including the payment of
all amounts due on the debt securities and performance of the covenants in the
indenture.
We are only permitted to consolidate or merge with or into any other entity
or sell all or substantially all of our assets according to the terms and
conditions of the indenture. The remaining or acquiring entity will be
substituted for us in the indenture with the same effect as if it had been an
original party to the indenture. Thereafter, the successor entity may exercise
our rights and powers under the indenture, in our name or in its own name. Any
act or proceeding required or permitted to be done by our board of directors or
any of our officers may be done by the board or officers of the successor
entity. If we consolidate or merge with or into any other entity or sell all or
substantially all of our assets, we shall be released from all our liabilities
and obligations under the indenture and under the debt securities.
MODIFICATION OF INDENTURE
We may modify the indenture, without prior notice to or consent of any
holders, for any of the following purposes:
o to evidence the succession of another person to our rights and the
assumption by the successor of our covenants and obligations in the
indenture and the debt securities;
o to add to the covenants for the benefit of the holders of the debt
securities or to surrender any right or power conferred upon us in the
indenture;
o to add any events of default;
o to cure any ambiguity, defect or inconsistency, to secure the debt
securities, or to make any change that does adversely affect the rights
of any holders;
o to modify or amend the indenture to permit the qualification of the
indenture or any supplemental indenture under the Trust Indenture Act;
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o to add to or change any provision of the indenture to provide that
bearer securities may be registerable as to principal, to change or
eliminate any restrictions on the payment of principal or premium with
respect to registered securities or of principal, premium or interest
with respect to bearer securities, or to permit registered securities
to be exchanged for bearer securities, so long as any such action does
not adversely affect the interests of the holders of debt securities
nor permit or facilitate the issuance of debt securities of any series
in uncertificated form;
o to comply with the provisions of the indenture relating to
consolidations, mergers and sales of assets;
o in the case of subordinated debt securities, to make any change in the
provisions of the indenture relating to subordination that would limit
or terminate the benefits available to any holder of senior debt under
such provisions;
o to add guarantees for any or all of the debt securities or to secure
any or all of the debt securities;
o to make any change that does not adversely affect the rights of any
holder;
o to add to, change or eliminate any provision of the indenture, so long
as any such addition, change or elimination will (a) neither apply to
any debt security of any series created prior to the modification which
is entitled to the benefit of the provision nor modify the rights of
the holders of any such debt security with respect to the provision or
(b) become effective only when there is no debt security outstanding;
o to evidence and provide for a successor or other trustee with respect
to the debt securities of one or more series and to add to or change
any provision of the indenture to provide for or facilitate the
administration of the indenture by more than one trustee;
o to establish the form or terms of debt securities and coupons of any
series; and
o to provide for uncertificated debt securities in addition to or in
place of certificated debt securities.
We may modify and amend the indenture with the written consent of at least
a majority in principal amount of the outstanding debt securities of each
series affected by the modifications or amendments; provided, however, that
such modifications may not, without the consent of the holder of each
outstanding debt security of each series affected thereby:
o reduce the percentage in principal amount of debt securities of any
series whose holders must consent to an amendment;
o reduce the rate of or extend the time for payment of interest on any
debt security or coupon or reduce the amount of any payment to be made
with respect to any coupon;
o reduce the principal of or extend the stated maturity of any debt
security;
o reduce the premium payable upon the redemption of any debt security or
change the time at which any debt security may or shall be redeemed;
o make any debt security or coupon payable in a currency other than that
stated in the debt security;
o in the case of any subordinated debt security or related coupons, make
any change in the subordination provisions of the indenture that
adversely affects the rights of any holder under the provisions;
o release any security that may have been granted with respect to the
debt securities;
o impair the right of a holder of debt securities to receive payment of
principal of and interest on such holder's debt securities on or after
the due dates therefor or to institute suit for the enforcement of or
with respect to such holder's debt securities;
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o make any change in the provisions of the indenture relating to waivers
of defaults or amendments that require unanimous consent;
o change any obligation of Range provided for in the indenture to pay
additional interest with respect to bearer securities; or
o limit the obligation of Range to maintain a paying agency outside the
United States for payment on bearer securities or limit the obligation
of Range to redeem certain bearer securities.
EVENTS OF DEFAULT
"Event of Default", with respect to any series of debt securities,
means any of the following:
o failure to pay interest on any debt security of that series for 30
days;
o failure to pay the principal or any premium on any debt security of
that series when due;
o failure to deposit any sinking fund payment when due;
o failure to comply with the provisions of the indenture relating to
consolidations, mergers and sales of assets;
o failure to perform any other covenant with respect to that series in
the indenture that continues for 90 days after being given written
notice;
o certain events in bankruptcy, insolvency or reorganization of Range or
a significant subsidiary that has guaranteed the payment of such series
of debt securities;
o the entry of a judgment in excess of $20 million against Range or such
significant subsidiary which is not covered by insurance and not
discharged, waived or stayed; or
o any other event of default included in the indenture or any
supplemental indenture.
An event of default for a particular series of debt securities does not
necessarily constitute an event of default for any other series of debt
securities issued under the indenture.
If an event of default relating to certain events in bankruptcy, insolvency
or reorganization of Range occurs and continues, the entire principal of all
the debt securities of all series will be due and payable immediately. If any
other event of default for any series of debt securities occurs and continues,
the trustee or the holders of at least 25% in aggregate principal amount of the
debt securities of the series may declare the entire principal of all the debt
securities of that series to be due and payable immediately. If this happens,
subject to certain conditions, the holders of a majority of the aggregate
principal amount of the debt securities of that series can void the
declaration. The trustee may withhold notice to the holders of debt securities
of any default (except in the payment of principal or interest or in the making
of any sinking fund payment) if it considers such withholding of notice to be
in the interests of the holders.
Other than its duties in case of a default, a trustee is not obligated to
exercise any of its rights or powers under the indenture at the request, order
or direction of any holders, unless the holders offer the trustee reasonable
indemnity. If they provide this reasonable indemnification, the holders of a
majority in principal amount of any series of debt securities may direct the
time, method and place of conducting any proceeding or any remedy available to
the trustee, or exercising any power conferred upon the trustee, for any series
of debt securities.
No holder of any debt security can institute any action or proceeding with
respect to the indenture unless the holder gives written notice of an event of
default to the trustee, the holders of at least 25% in aggregate principal
amount of the outstanding debt securities of the applicable series shall have
requested the trustee to institute the action or proceeding and has
appropriately indemnified the trustee, and the trustee has failed to institute
the action or proceeding within a specified time period.
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SATISFACTION AND DISCHARGE OF THE INDENTURE; DEFEASANCE
Discharge. With certain exceptions, we will be discharged from our
obligations under the indenture with respect to any series of debt securities
by either paying the principal of, any premium and interest on all of the
outstanding debt securities of such series when due and payable or delivering
to the trustee all outstanding debt securities of such series for cancellation.
Legal Defeasance. We may be discharged from our obligations on the debt
securities of any series at any time if we deposit with the trustee sufficient
cash or government obligations to pay the principal of, any premium and
interest on the debt securities of that series to the stated maturity date or a
redemption date for the debt securities of that series. If that happens,
payment of the debt securities of such series may not be accelerated because of
an event specified as an event of default with respect to such debt securities,
and the holders of the debt securities of such series will not be entitled to
the benefits of the indenture, except for registration of transfer and exchange
of debt securities and replacement of lost, stolen or mutilated debt
securities.
We may be discharged only if, among other things, we have delivered to the
trustee an opinion of counsel stating that we have received from the United
States Internal Revenue Service a ruling or, since the date of execution of the
indenture, there has been a change in the applicable federal income tax law, in
either case to the effect that the holders of the debt securities of that
series will not recognize income, gain or loss for federal income tax purposes
as a result of the defeasance.
Covenant Defeasance. We may omit to comply with certain restrictive
covenants contained in the indenture and any omission to comply with those
covenants will not constitute a default or event of default with respect to the
debt securities of any series. We may omit to comply with such covenants only
if, among other things:
o we deposit with the trustee sufficient cash or government obligations
to pay the principal of, any premium and interest on the debt
securities of that series to the stated maturity date or a redemption
date for the debt securities of that series; and
o we deliver to the trustee an opinion of counsel to the effect that the
holders of the debt securities of the series will not recognize
income, gain or loss for federal income tax purposes as a result of
the covenant defeasance.
Effect of Discharge and Defeasance. Under federal income tax law as of the
date of this prospectus, a discharge may be treated as an exchange of the
related debt securities. Each holder might be required to recognize gain or
loss equal to the difference between the holder's cost or other tax basis for
the debt securities and the value of the holder's interest in the trust.
Holders might be required to include as income a different amount than would be
includable without the discharge. Prospective investors are urged to consult
their own tax advisors as to the tax consequences of a discharge, including the
applicability and effect of tax laws other than the federal income tax law.
THE TRUSTEE
We may appoint a separate trustee for any series of debt securities. We may
maintain banking and other commercial relationships with the trustee and its
affiliates in the ordinary course of business and the trustee may own debt
securities and serve as trustee under our other indentures.
GOVERNING LAW
The indenture and the debt securities will be governed by and construed in
accordance with the laws of the State of New York.
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DESCRIPTION OF CAPITAL STOCK
At April 9, 1999, our authorized capital stock consisted of:
o 10,000,000 shares of preferred stock, par value $1.00 per share, of
which 1,149,840 shares designated as $2.03 Convertible Exchangeable
Preferred Stock, Series C, were outstanding; and
o 50,000,000 shares of common stock, par value $.01 per share, of which
36,298,304 shares were outstanding.
COMMON STOCK
Dividends. Common stockholders may receive dividends when declared by the
board of directors. Dividends may be paid in cash, stock or other form. In
certain cases, common stockholders may not receive dividends until we have
satisfied our obligations to any preferred stockholders. Certain of our debt
instruments restrict the payment of cash dividends.
Voting Rights. Each share of common stock is entitled to one vote in the
election of directors and other matters. Common stockholders are not entitled
to cumulative voting rights.
Fully Paid. All outstanding shares of common stock are fully paid and
non-assessable. Any additional common stock we offer under this Prospectus and
issue will also be fully paid and non-assessable.
Other Rights. Common stockholders are not entitled to preemptive rights. If
we liquidate, dissolve or wind-up our business, either voluntarily or not,
common stockholders will share equally in the assets remaining after we pay our
creditors and preferred stockholders.
Listing. Our outstanding shares of common stock are listed on the New York
Stock Exchange under the symbol "RRC." Any additional common stock we issue
will also be listed on the NYSE.
PREFERRED STOCK
The following sets forth certain general terms and provisions of our
authorized serial preferred stock. If we offer preferred stock, the specific
designations and rights will be described in the prospectus supplement.
Our board of directors can, without approval of stockholders, issue one or
more series of serial preferred stock. The board can also determine the number
of shares of each series and the rights, preferences and limitations of each
series including the dividend rights, voting rights, conversion rights,
redemption rights and any liquidation preferences of any series of preferred
stock, the number of shares constituting each series and the terms and
conditions of issue.
One series of serial preferred stock, designed $2.03 Convertible
Exchangeable Preferred Stock, Series C, is currently outstanding. That series
has the following principal terms:
o Dividends. The $2.03 Convertible Preferred Stock bears an annual dividend
rate of $2.03 payable quarterly. If dividends have not been paid on the $2.03
Convertible Preferred Stock, then we cannot redeem or pay dividends on our
common stock or other shares of stock ranking junior to the $2.03 Convertible
Preferred Stock.
o Voting Rights. The holders of the $2.03 Convertible Preferred Stock are
entitled to one vote for each share owned. Additionally, if dividends remain
unpaid for six full quarterly periods, or if any future class of preferred
stockholders is entitled to elect members of the board of directors based on
actual missed and unpaid dividends, the number of members of our board of
directors will be increased to such number as may be necessary to entitle the
holders of the $2.03 Convertible Preferred Stock and such other future
preferred stockholders, voting as a single class, to elect one-third of the
members of the board of directors. No new serial preferred stock can be created
with rights superior to those of the $2.03 Convertible Preferred Stock, as to
dividends and liquidation rights, without the approval of the holders of a
majority of the Convertible Preferred Stock.
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o Conversion. Each share is convertible into our common stock at a
conversion price of $9.50 per share, subject to adjustment under certain
circumstances. The conversion price will be reduced for a limited period (but
to not less than $5.21) if a change in control or fundamental change of Range
occurs at a time that the market price of our common stock is less than the
conversion price.
o Exchange. Range may exchange the $2.03 Convertible Preferred Stock
for an aggregate of $28,750,000 principal amount of our 8.125% Convertible
Subordinated Notes due December 31, 2005.
o Redemption. We can redeem shares of $2.03 Convertible Preferred
Stock at redemption prices declining from $26.00 in 1999 to $25.00 per shares
in 2003 and thereafter, plus cumulative unpaid dividends.
o Liquidation. In any liquidation, dissolution or winding-up, a holder
of $2.03 Convertible Preferred Stock will be entitled to receive a liquidation
preference of $25.00 per share before any distribution to the holders of our
common stock.
CERTAIN PROVISIONS OF OUR CERTIFICATE OF INCORPORATION AND LAW
Certain provisions in our Certificate of Incorporation may have the effect
of encouraging persons considering unsolicited tender offers or other
unilateral takeover proposals to negotiate with our board of directors rather
than pursue non-negotiated takeover attempts. The Certificate of Incorporation
provides that, unless the board of directors has previously approved of the
transaction, certain mergers, consolidations, sales or leases of all
substantially all of our assets with or to a party who owns (or whose
affiliates or associates own) 5% or more of a class of our stock require the
affirmative vote of the holders of at least 80% of our voting stock.
As a corporation organized under the laws of the State of Delaware, we are
subject to Section 203 of the General Corporation Law of the State of Delaware
which restricts certain business combinations between us and an "interested
stockholder" (in general, a stockholder owning 15% or more of our outstanding
voting stock) or that stockholder's affiliates or associates for a period of
three years following the date on which the stockholder becomes an "interested
stockholder." The restrictions do not apply if:
o prior to an interested stockholder becoming such, our board of
directors approves either the business combination or the transaction
in which the stockholder becomes an interested stockholder;
o upon consummation of the transaction in which the stockholder becomes
an interested stockholder, the interested stockholder owns at least
85% of our voting stock outstanding at the time the transaction
commenced, subject to certain exceptions; or
o on or after the date an interested stockholder becomes such, the
business combination is both approved by our board of directors and
authorized at an annual or special meeting of our stockholders (and
not by written consent) by the affirmative vote of at least 66 2/3% of
the outstanding voting stock not owned by the interested stockholder.
DESCRIPTION OF DEPOSITARY SHARES
GENERAL
We may, at our option, elect to offer fractional shares of serial preferred
stock, rather than full shares of serial preferred stock. If we do, we will
issue to the public receipts for depositary shares, and each of these
depositary shares will represent a fraction of a share of a particular series
of preferred stock. We will specify that fraction in the prospectus supplement.
The shares of any series of preferred stock underlying the depositary
shares will be deposited under a deposit agreement between us and a depositary
selected by us. The depositary will be a bank or trust company and will have
its principal office in the United States and a combined capital and surplus of
at least $50 million. Subject to the terms
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of the deposit agreement, each owner of a depositary share will be entitled, in
proportion to the applicable fractional interest in shares of preferred stock
underlying that depositary share, to all the rights and preferences of the
preferred stock underlying that depositary share. Those rights include
dividend, voting, redemption, conversion and liquidation rights.
The depositary shares will be evidenced by depositary receipts issued under
the deposit agreement. We will issue depositary receipts to those persons who
purchase the fractional interests in the preferred stock underlying the
depositary shares, in accordance with the terms of the offering.
The following summary of the deposit agreement, the depositary shares and
the depositary receipts is not complete. You should refer to the forms of the
deposit agreement and depositary receipts that are filed as exhibits to the
registration statement.
DIVIDENDS AND OTHER DISTRIBUTIONS
The depositary will distribute all cash dividends or other cash
distributions received in respect of the preferred stock to the record holders
of related depositary shares in proportion to the number of depositary shares
owned by those holders.
If we make a distribution other than in cash, the depositary will
distribute property received by it to the record holders of depositary shares
that are entitled to receive the distribution, unless the depositary determines
that it is not feasible to make the distribution. If this occurs, the
depositary may, with our approval, sell the property and distribute the net
proceeds from the sale to the applicable holders.
REDEMPTION OF DEPOSITARY SHARES
Whenever we redeem shares of preferred stock that are held by the
depositary, the depositary will redeem, as of the same redemption date, the
number of depositary shares representing the shares of preferred stock so
redeemed. The redemption price per depositary share will be equal to the
applicable fraction of the redemption price per share payable with respect to
that series of the preferred stock. If fewer than all the depositary shares are
to be redeemed, the depositary will select the depositary shares to be redeemed
by lot or pro rata as determined by the depositary.
Depositary shares called for redemption will no longer be outstanding after
the applicable redemption date, and all rights of the holders of those
depositary shares will cease, except the right to receive any money,
securities, or other property upon surrender to the depositary of the
depositary receipts evidencing those depositary shares.
VOTING THE PREFERRED STOCK
Upon receipt of notice of any meeting at which the holders of preferred
stock are entitled to vote, the depositary will mail the information contained
in the notice of meeting to the record holders of the depositary shares
underlying that preferred stock. Each record holder of those depositary shares
on the record date (which will be the same date as the record date for the
preferred stock) will be entitled to instruct the depositary as to the exercise
of the voting rights pertaining to the amount of the preferred stock underlying
that holder's depositary shares. The depositary will try, as far as
practicable, to vote the number of shares of preferred stock underlying those
depositary shares in accordance with those instructions, and we will agree to
take all action which the depositary deems necessary in order to enable the
depositary to do so. The depositary will not vote the shares of preferred stock
to the extent it does not receive specific instructions from the holders of
depositary shares underlying the preferred stock.
AMENDMENT AND TERMINATION OF THE DEPOSIT AGREEMENT
We and the depositary may amend the form of depositary receipt evidencing
the depositary shares and any provision of the deposit agreement at any time.
However, any amendment that materially and adversely alters the rights of the
holders of depositary shares will not be effective unless the amendment has
been approved by the holders of at least a majority of the depositary shares
then outstanding. The deposit agreement may be terminated by us or by the
depositary only if (a) all outstanding depositary shares have been redeemed or
(b) there has been a final distribution of the
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underlying preferred stock in connection with our liquidation, dissolution or
winding up and the preferred stock has been distributed to the holders of
depositary receipts.
CHARGES OF DEPOSITARY
We will pay all transfer and other taxes and governmental charges arising
solely from the existence of the depositary arrangements. We will also pay
charges of the depositary in connection with the initial deposit of the
preferred stock and any redemption of the preferred stock. Holders of
depositary receipts will be required to pay transfer and other taxes and
governmental charges and such other charges as are expressly provided in the
deposit agreement to be for their accounts.
RESIGNATION AND REMOVAL OF DEPOSITARY
The depositary may resign at any time by delivering a notice to us of its
election to do so. We may remove the depositary at any time. Any such
resignation or removal will take effect upon the appointment of a successor
depositary and its acceptance of its appointment. We must appoint a successor
depositary within 60 days after delivery of the notice of resignation or
removal. The successor depositary must be a bank or trust company having its
principal office in the United States and having a combined capital and surplus
of at least $50 million.
MISCELLANEOUS
The depositary will be required to forward to holders of depositary
receipts all reports and communications from us that we deliver to the
depositary and that we are required to furnish to the holders of the preferred
stock.
Neither we nor the depositary will be liable if either of us is prevented
or delayed by law or any circumstance beyond our control in performing our
respective obligations under the deposit agreement. Our obligations and those
of the depositary will be limited to performing in good faith our respective
duties under the deposit agreement. Neither we nor the depositary will be
obligated to prosecute or defend any legal proceeding relating to any
depositary shares or preferred stock unless satisfactory indemnity is
furnished. We and the depositary may rely upon written advice of counsel or
accountants, or upon information provided by persons presenting preferred stock
for deposit, holders of depositary receipts or other persons we believe to be
competent and on documents we believe to be genuine.
DESCRIPTION OF WARRANTS
We may issue warrants to purchase debt securities ("debt warrants"),
preferred stock ("preferred stock warrants"), or common stock ("common stock
warrants," and collectively with the preferred stock warrants, the "stock
warrants". We may issue warrants independently or together with any other
securities we offer pursuant to a prospectus supplement and the warrants may be
attached to or separate from the securities. We will issue each series of
warrants under a separate warrant agreement that we will enter into with a bank
or trust company, as warrant agent. We will describe additional terms of the
warrants and the applicable warrant agreements in the applicable prospectus
supplement.
DEBT WARRANTS
We will describe in the applicable prospectus supplement the terms of the
debt warrants being offered, the warrant agreement relating to the debt
warrants and the debt warrant certificates representing the debt warrants,
which may include the following:
o the title of the debt warrants;
o the price or prices at which the debt warrants will be issued;
o the aggregate number of the debt warrants;
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o the designation and terms of the debt securities purchasable upon
exercise of the debt warrants, and the procedures and conditions
relating to the exercise of the debt warrants;
o the designation and terms of any related debt securities with which the
debt warrants are issued, and the number of the debt warrants issued
with each security;
o the date, if any, on and after which the debt warrants and the related
debt securities will be separately transferable;
o the principal amount of debt securities purchasable upon exercise of
each debt warrant, and the price at which the principal amount of the
debt securities may be purchased upon exercise;
o the date on which the right to exercise the debt warrants will
commence, and the date on which the right will expire;
o the maximum or minimum number of the debt warrants which may be
exercised at any time;
o whether the debt warrants represented by the debt warrant certificates
or debt securities that may be issued upon exercise of the debt
warrants will be issued in registered or bearer form;
o information with respect to book-entry procedures, if any;
o the currency or currency units in which the offering price, if any, and
the exercise price are payable;
o a discussion of the material United States federal income tax
considerations applicable to the exercise of the debt warrants;
o the antidilution provisions of the debt warrants, if any;
o the redemption or call provisions, if any, applicable to the debt
warrants; and
o any other terms of the debt warrants, including terms, procedures and
limitations relating to the exercise of the debt warrants.
Holders may exchange debt warrant certificates for new debt warrant
certificates of different denominations, and may exercise debt warrants at the
corporate trust office of the warrant agent or any other office indicated in
the applicable prospectus supplement. Prior to the exercise of their debt
warrants, holders of debt warrants will not have any of the rights of holders
of the securities purchasable upon the exercise and will not be entitled to
payments principal, premium or interest on the securities purchasable upon the
exercise.
STOCK WARRANTS
We will describe in the applicable prospectus supplement the terms of the
preferred stock warrants or common stock warrants being offered, which may
include the following:
o the title of the warrants;
o the price or prices at which the warrants will be issued;
o the aggregate number of the warrants issued;
o the designation and terms of the preferred stock or common stock for
which the warrants are exercisable;
o if applicable, the designation and terms of the preferred stock or
common stock with which the warrants are issued and the number of the
warrants issued with each share of preferred stock or common stock;
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o if applicable, the date on and after which the warrants and the related
preferred stock or common stock will be separately transferable;
o the number of shares of preferred stock or common stock purchasable
upon exercise of the warrants and the exercise price of the warrants;
o the date on which the right to exercise the warrants will commence, and
the date on which the right will expire;
o the maximum or minimum number of the warrants which may be exercised at
any time;
o the currency or currency units in which the offering price, if any, and
the exercise price are payable;
o if applicable, a discussion of the material United States federal
income tax considerations applicable to the exercise of the warrants;
o any antidilution provisions of the warrants;
o any redemption or call provisions applicable to the warrants; and
o any other terms of the warrants, including terms, procedures and
limitations relating to the exchange and exercise of the warrants.
EXERCISE OF WARRANTS
Each warrant will entitle the holder of the warrant to purchase for cash at
the exercise price set forth in the applicable prospectus supplement the
principal amount of debt securities or shares of preferred stock or common
stock being offered. Holders may exercise warrants at any time up to the close
of business on the expiration date set forth in the applicable prospectus
supplement. After the close of business on the expiration date, unexercised
warrants are void.
Holders may exercise warrants as set forth in the prospectus supplement
relating to the warrants being offered. Upon receipt of payment and the warrant
certificate properly completed and duly executed at the corporate trust office
of the warrant agent or any other office indicated in the prospectus
supplement, we will, as soon as practicable, forward the debt securities or
shares of preferred stock or common stock purchasable upon the exercise of the
warrant. If less than all of the warrants represented by the warrant
certificate are exercised, we will issue a new warrant certificate for the
remaining warrants.
DESCRIPTION OF GUARANTEES
One or more subsidiaries of Range may issue guarantees in connection with
debt securities offered by any prospectus supplement. The following summary of
certain provisions of the guarantees does not purport to be complete and is
subject to, and qualified in its entirety by reference to, the provisions of
the form of guarantee that will be filed with the SEC in connection with the
offering of guarantees. Each guarantee will be issued pursuant to the
indenture. The prospectus supplement for a particular issue of debt securities
will describe the terms of the related guarantees, including the following:
o the series of debt securities to which the guarantees apply;
o whether the guarantees are secured or unsecured;
o whether the guarantees are conditional or unconditional;
o whether the guarantees are senior or subordinate to other guarantees or
debt;
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o the terms under which the guarantees may be amended, modified, waived,
released or otherwise terminated, if different from the provisions
applicable to the guaranteed debt securities; and
o any additional terms of the guarantees.
PLAN OF DISTRIBUTION
We may sell the offered securities within or outside the United States (a)
through agents; (b) through underwriters or dealers; or (c) directly to one or
more purchasers.
BY AGENTS
Offered securities may be sold through agents designated by us. Unless
otherwise indicated in the prospectus supplement, the agents will act on a best
efforts basis to solicit purchases for the period of their appointment.
BY UNDERWRITERS OR DEALERS
If underwriters are used in the sale, the offered securities will be
acquired by the underwriters for their own account. The underwriters may resell
the securities in one or more transactions, including negotiated transactions,
at a fixed public offering price or at varying prices determined at the time of
sale. The obligations of the underwriters to purchase the securities will be
subject to certain conditions. Unless otherwise indicated in the prospectus
supplement, the underwriters will be obligated to purchase all the securities
of the series offered if any of the securities are purchased. Any initial
public offering price and any discounts or concessions allowed or re-allowed or
paid to dealers may be changed from time to time.
We may also sell the offered securities pursuant to one or more standby
agreements with one or more underwriters in connection with the call,
redemption or exchange of a specified class or series of any securities of
Range. In a standby agreement, the underwriter or underwriters would agree
either:
o to purchase from Range up to the number of shares of common stock that
would be issuable upon conversion or exchange of all the shares of the
class or series of securities of Range at an agreed price per share of
common stock; or
o to purchase from Range up to a specified dollar amount of offered
securities at an agreed price per offered security, which price may be
fixed or may be established by formula or other method and which may or
may not relate to market prices of the common stock or any other
security of Range than outstanding.
The underwriter or underwriters would also agree, if applicable, to convert
or exchange any securities of the class or series held or purchased by the
underwriter or underwriters into or for common stock or other security of Range.
The underwriter or underwriters may assist in the solicitation of conversions or
exchanges by holders of the class or series of securities.
If dealers are used in the sale of offered securities with respect to which
this prospectus is delivered, we will sell the offered securities to the
dealers as principals. The dealers may then resell the offered securities to
the public at varying prices to be determined by the dealers at the time of
resale. The names of the dealers and the terms of the transaction will be set
forth in the prospectus supplement thereto.
DIRECT SALES; RIGHTS OFFERINGS
Offered securities may also be sold directly by us. In this case, no
underwriters or agents would be involved. We may sell offered securities upon
the exercise of rights which may be issued to our securityholders.
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GENERAL INFORMATION
Underwriters, dealers and agents that participate in the distribution of
the offered securities may be underwriters as defined in the Securities Act of
1933, and any discounts or commissions received by them from us and any profit
on the resale of the offered securities by them may be treated as underwriting
discounts and commissions under the Securities Act of 1933. Any underwriters or
agents will be identified and their compensation described in a prospectus
supplement.
Representatives of the underwriters through whom the offered securities are
sold for public offering and sale may engage in over-allotment, stabilizing
transactions, syndicate short covering transactions and penalty bids in
accordance with Regulation M under the Securities Exchange Act of 1934.
Over-allotment involves syndicate sales in excess of the offering size, which
creates a syndicate short position. Stabilizing transactions permit bids to
purchase the offered securities so long as the stabilizing bids do not exceed a
specified maximum. Syndicate covering transactions involve purchases of the
offered securities in the open market after the distribution has been completed
in order to cover syndicate short positions. Penalty bids permit the
representative of the underwriters to reclaim a selling concession from a
syndicate member when the offered securities originally sold by such syndicate
member are purchased in a syndicate covering transaction to cover syndicate
short positions. Such stabilizing transactions, syndicate covering transactions
and penalty bids may cause the price of the offered securities to be higher
than it would otherwise be in the absence of such transactions. These
transactions may be effected on a national securities exchange and, if
commenced, may be discontinued at any time.
We may have agreements with the underwriters, dealers and agents to
indemnify them against certain civil liabilities, including liabilities under
the Securities Act of 1933, or to contribute with respect to payments which the
underwriters, dealers or agents may be required to make.
Underwriters, dealers and agents may engage in transactions with, or
perform services for, us or our subsidiaries in the ordinary course of their
businesses.
The offered securities may or may not be listed on a national securities
exchange. Any underwriters or agents to or through whom the offered securities
are sold for public offering and sale may make a market in such offered
securities, but such underwriters or agents will not be obligated to do so and
may discontinue any market making at any time without notice. No assurances can
be given that there will be a market for the offered securities.
LEGAL MATTERS
Our legal counsel, Vinson & Elkins L.L.P., Houston, Texas or another
counsel named in the prospectus supplement, will pass upon certain legal
matters in connection with the offered securities. Any underwriters will be
advised about issues relating to any offering by their own legal counsel.
EXPERTS
Arthur Andersen LLP, independent public accountants, have audited our
financial statements for the year ended December 31, 1998 incorporated by
reference in this prospectus. These financial statements are incorporated by
reference herein in reliance upon their report and upon their authority as
experts in accounting and auditing.
19
24
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14 -- OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table sets forth those expenses to be incurred by the
registrant, Range Resources Corporation ("Range"), in connection with the
issuance and distribution of the securities being registered. Except for the
SEC registration fee, all amounts shown are estimates.
SEC registration fee $ 34,750
Accounting fees and expenses 25,000
Legal fees and expenses 150,000
Transfer agent's fees and expenses 10,000
Blue Sky fees and expenses, including counsel fees 7,500
Fees of rating agencies 20,000
Listing fees 15,000
Printing and engraving expenses 35,000
Miscellaneous 10,000
--------
Total................................... $307,250
========
ITEM 15 -- INDEMNIFICATION OF DIRECTORS AND OFFICERS
Section 145 of the Delaware General Corporation Law authorizes, among other
things, a corporation to indemnity any person ("indemnitee") who was or is
party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the corporation),
by reason of the fact that such person is or was an officer or director of such
corporation, or is or was serving at the request of such corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise. The indemnity may include expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by such person in connection with such action,
suit or proceeding, provided that he acted in good faith and in a manner he
reasonably believes to be in or not opposed to the best interests of the
corporation and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. A Delaware corporation
may indemnify past or present officers and directors of such corporation or of
another corporation or other enterprise at the former corporation's request, in
an action by or in the right of the corporation to procure a judgment in its
favor under the same conditions, except that no indemnification is permitted
without judicial approval if such person is adjudged to be liable to the
corporation. Where an officer or director is successful on the merits or
otherwise in defense of any action referred to above, or in defense of any
claim, issue or matter therein, the corporation must indemnify him against the
expenses (including attorneys' fees) which he actually and reasonably incurred
in connection therewith. Section 145 further provides that any indemnification
shall be made by the corporation only as authorized in each specific case upon
a determination by the (i) stockholders, (ii) Board of Directors by a majority
vote of a quorum consisting of directors who were not parties to such action,
suit or proceeding or (iii) independent counsel if a quorum of disinterested
directors so directs. The indemnification pursuant to Section 145 is not
exclusive of other rights of indemnification to which a person may be entitled.
Section 145 of the DGCL also empowers Range to purchase and maintain
insurance on behalf of any person who is or was an officer or director of Range
against liability asserted against or incurred by him in any such capacity,
whether or not Range would have the power to indemnify such officer or director
against liability under the provisions of Section 145.
Article SEVENTH, section (5) of Range's Certificate of Incorporation
provides:
Any former, present or future director, officer or employee of the Company
or the legal representative of any such director, officer or employee shall be
indemnified by the Company.
II-1
25
(a) against reasonable costs, disbursements and counsel fees
paid or incurred where such person has been successful on the merits or
otherwise in any pending, threatened or completed civil, criminal,
administrative or arbitrative action, suit or proceeding, and any
appeal therein and any inquiry or investigation which could lead to
such action, suit or proceeding, or in defense of any claim, issue or
matter therein, by reason of such person being or having been such
director, officer or employee, and
(b) with respect to any such action, suit, proceeding,
inquiry or investigation for which indemnification is not made under
(a) above, against reasonable costs, disbursements (which shall
include amounts paid in satisfaction of settlements, judgments, fines
and penalties, exclusive, however, of any amount paid or payable to
the Company) and counsel fees if such person also had no reasonable
cause to believe the conduct was unlawful, with the determination as
to whether the applicable standard of conduct was met to be made by a
majority of the members of the Board of Directors (sitting as a
committee of the Board) who were not parties to such inquiry,
investigation, action, suit or proceeding or by any one or more
disinterested counsel to whom the question may be referred to the
Board of Directors; provided, however, in connection with any
proceeding by or in the right of the Company, no indemnification shall
be provided as to any person adjudged by any court to be liable for
negligence or misconduct except as and to the extent determined by
such court.
Article EIGHTH of Range's Certificate of Incorporation provides:
No director of the Company shall be liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except for liability (i) for any breach of the director's duty of loyalty to
the Corporation or its stockholders, (ii) for acts or omissions not in good
faith or which involve intentional misconduct or a knowing violation of law,
(iii) under Section 174 of the Delaware General Corporation Law, or (iv) for
any transaction form which the director derived an improper personal benefit.
This paragraph shall not eliminate or limit the liability of a director for any
act or omission occurring prior to the effective date of its adoption. If the
General Corporation Law of the State of Delaware is hereafter amended to
authorize corporate action further limiting or eliminating the personal
liability of directors, then the liability of a director to the Corporation
shall be limited or eliminated to the fullest extent permitted by the General
Corporation Law of the State of Delaware, as so amended from time to time. No
repeal or modification of this Article VIII, directly or by adoption of an
inconsistent provision of this Certificate of Incorporation, by the
stockholders of the Corporation shall be effective with respect to any cause of
action, suit, claim or other matter, but for this Article VIII, would accrue or
arise prior to such repeal or modification.
Article XII of Range's Bylaws provides that each director, officer,
employee and agent of Range shall be indemnified by Range to the fullest extent
permitted by Delaware law, including any changes in Delaware law adopted in the
future. All directors of Range have executed an indemnification agreement the
form of which was approved by stockholders at Range's 1994 annual stockholders
meeting.
Article XII of Range's Bylaws also allows Range to purchase liability
insurance for officers and directors and an insurance policy is currently in
place.
The preceding discussion of Range's Certificate of Incorporation, Section
145 of the General Corporation Law of the State of Delaware, our Bylaws and the
indemnification agreements is not intended to be exhaustive and is qualified in
its entirety by the Certificate of Incorporation, the Bylaws, Section 145 of
the General Corporation Law of the State of Delaware, and the indemnification
agreements.
ITEM 16 -- EXHIBITS
There are filed with this Registration Statement the following exhibits:
EXHIBIT
NUMBER DESCRIPTION
------ -----------
1.1* -- Form of Equity Underwriting Agreement.
1.2* -- Form of Debt Securities Underwriting Agreement
4.1 -- Certificate of Incorporation dated March 24, 1980 (incorporated by
reference to Range's Registration Statement (No. 33-31558)
II-2
26
4.2 -- Certificate of Amendment of Certificate of Incorporation dated July
22, 1981 (incorporated by reference to Range's Registration Statement (No.
33-31558))
4.3 -- Certificate of Amendment of Certificate of Incorporation dated
September 8, 1982 (incorporated by reference to Range's Registration
Statement (No. 33-31558))
4.4 -- Certificate of Amendment of Certificate of Incorporation dated July 22,
1981 (incorporated by reference to Range's Registration Statement (No.
33-31558))
4.5 -- Certificate of Amendment of Certificate of Incorporation dated August
31, 1989 (incorporated by reference to Range's Registration Statement
(No. 33-31558))
4.6 -- Certificate of Amendment of Certificate of Incorporation dated May 30,
1991 (incorporated by reference to Range's Registration Statement (No.
333-20257))
4.7 -- Certificate of Amendment of Certificate of Incorporation dated
November 20, 1992 (incorporated by reference to Range's Registration
Statement (No. 333-20257))
4.8 -- Certificate of Amendment of Certificate of Incorporation dated May 24,
1996 (incorporated by reference to Range's Registration Statement (No.
333-20257))
4.9 -- Certificate of Amendment of Certificate of Incorporation dated October
2, 1996 (incorporated by reference to Range's Registration Statement
(No. 333-20257))
4.10 -- Restated Certificate of Incorporation as required by Item 102 of
Regulation S-T (incorporated by reference to Range's Registration
Statement (No. 333-20257))
4.11 -- Certificate of Amendment of Certificate of Incorporation dated August
25, 1998 (incorporated by reference to Range's Registration Statement
(No. 333-62439))
4.12 -- Amended and Restated By-Laws of Range (incorporated by reference to
Range's Registration Statement (No. 33-31558))
4.13** -- Form of Indenture between Range and one or more commercial banks to be
named, as trustee.
4.14* -- Form of Senior Debt Security.
4.15* -- Form of Subordinated Debt Security.
4.16* -- Form of Deposit Agreement.
4.17* -- Form of Depositary Receipt.
4.18* -- Form of Warrant Agreement.
4.19* -- Form of Warrant Certificate.
4.20* -- Form of Guarantee.
5.1** -- Form of opinion of Vinson & Elkins L.L.P. as to the legality of the securities
to be registered.
12.1** -- Computation of Ratios of Earnings to Fixed Charges and Earnings to Fixed Charges
and Preferred Stock Dividends.
23.1** -- Consent of Arthur Andersen LLP.
23.2** -- Consent of Vinson & Elkins L.L.P. (included in the opinion filed as Exhibit 5.1
to this Registration Statement).
24.1 -- Powers of Attorney of directors and officers of Range and Subsidiary
Guarantors (included in signature pages).
25.1* -- Form T-1 Statement for Eligibility under Trust Indenture Act of 1939 of
Trustee.
----------
* To be filed.
** Filed herewith.
II-3
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ITEM 17 -- UNDERTAKINGS
The undersigned registrants hereby undertake:
(a) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(1) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(2) To reflect in the prospectus any facts or events arising after the
effective date of this registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in this
registration statement; and
(3) To include any material information with respect to the plan of
distribution not previously disclosed in this registration statement or any
material change to such information in this registration statement;
provided, however, that clauses (1) and (2) above do not apply if the
information required to be included in a post-effective amendment by those
clauses is contained in periodic reports filed by the registrants pursuant to
Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference into this registration statement;
(b) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein, and
the offering of the securities at that time shall be deemed to be the initial
bona fide offering thereof; and
(c) To remove from registration by means of a post-effective amendment any
of the securities being registered that remain unsold at the termination of the
offering.
The undersigned registrants hereby undertake that, for purposes of
determining any liability under the Securities Act of 1933, each filing of
Range's annual report pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 that is incorporated by reference in this registration
statement shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of the securities at that time
shall be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers, and controlling persons of
the registrants pursuant to the provisions described in Item 15 above or
otherwise, the registrants have been advised that in the opinion of the SEC
such indemnification is against public policy as expressed in the Securities
Act of 1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrants of expenses incurred or paid by a director, officer, or controlling
person of the registrant in the successful defense of any action, suit, or
proceeding) is asserted by the director, officer, or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act of 1933 and will be governed by the final adjudication of the
issue.
The undersigned registrants hereby undertake to file an application for
the purpose of determining the eligibility of the trustee to act under
subsection (a) of Section 310 of the Trust Indenture Act of 1939 in accordance
with the rules and regulations prescribed by the SEC under Section 305(b)(2) of
the Trust Indenture Act of 1939.
II-4
28
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form S-3 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in Fort Worth, Texas, on April 22, 1999.
RANGE RESOURCES CORPORATION
By: /s/ John H. Pinkerton
---------------------------------------
John H. Pinkerton
President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated. Each person whose signature appears
below authorizes and appoints each of John H. Pinkerton and Thomas W. Stoelk,
and each of them severally, acting alone and without the other, as his
attorney-in-fact to execute in the name of such person and to file any
amendments and post effective amendments to this Registration Statement
necessary or advisable to enable the Registrant to comply with the Securities
Act of 1933 and any rules, regulations and requirements of the registration of
the securities which are the subject of this Registration Statement (including
any additional registration statement filed pursuant to Rule 462 of the
Securities Act of 1933) which amendments and post effective amendments may make
such changes in the Registration Statement as such attorney-in-fact may deem
appropriate.
SIGNATURE TITLE DATE
- -------------------------------------------- ----------------------------------------- -------------------
/s/ Thomas J. Edelman Chairman and Chairman of the Board April 22, 1999
- --------------------------------------------
Thomas J. Edelman
/s/ John H. Pinkerton Chief Executive Officer, President and April 22, 1999
- -------------------------------------------- Director
John H. Pinkerton
/s/ Michael V. Ronca Chief Operating Officer, and Director April 22, 1999
- --------------------------------------------
Michael V. Ronca
/s/ Thomas W. Stoelk Chief Financial Officer and Senior Vice April 22, 1999
- -------------------------------------------- President - Finance & Administration
Thomas W. Stoelk
/s/ Geoffrey T. Doke Chief Accounting Officer and Vice April 22, 1999
- -------------------------------------------- President and Controller
Geoffrey T. Doke
/s/ Robert E. Aikman Director April 22, 1999
- --------------------------------------------
Robert E. Aikman
/s/ Allen Finkelson Director April 22, 1999
- --------------------------------------------
Allen Finkelson
/s/ Anthony V. Dub Director April 22, 1999
- --------------------------------------------
Anthony V. Dub
/s/ Ben A. Guill Director April 22, 1999
- --------------------------------------------
Ben A. Guill
/s/ Jonathan S. Linker Director April 22, 1999
- --------------------------------------------
Jonathan S. Linker
29
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, each of the
registrants certify that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in Fort Worth, Texas, on April 22, 1999.
RANGE OPERATING COMPANY
RANGE PRODUCTION COMPANY
BUFFALO OILFIELD SERVICES, INC.
RANGE ENERGY SERVICES COMPANY
RANGE RESOURCES DEVELOPMENT COMPANY
RANGE ENERGY I, INC.
RANGE GATHERING & PROCESSING COMPANY
RANGE GAS COMPANY
RRC OPERATING COMPANY
RANGE ENERGY VENTURES CORPORATION
GULFSTAR ENERGY, INC.
GULFSTAR SEISMIC, INC.
By: /s/ John H. Pinkerton
-----------------------------------------
John H. Pinkerton
President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated. Each person whose signature appears
below authorizes and appoints each of John H. Pinkerton and Thomas W. Stoelk,
and each of them severally, acting alone and without the other, as his
attorney-in-fact to execute in the name of such person and to file any
amendments and post effective amendments to this Registration Statement
necessary or advisable to enable the Registrant to comply with the Securities
Act of 1933 and any rules, regulations and requirements of the registration of
the securities which are the subject of this Registration Statement (including
any additional registration statement filed pursuant to Rule 462 of the
Securities Act of 1933) which amendments and post effective amendments may make
such changes in the Registration Statement as such attorney-in-fact may deem
appropriate.
SIGNATURE TITLE DATE
- -------------------------------------------- --------------------------------------- -----------------------
/s/ John H. Pinkerton Director, Chief Executive Officer and April 22, 1999
- -------------------------------------------- President (principal executive officer)
John H. Pinkerton
/s/ Thomas W. Stoelk Director and Senior Vice President - April 22, 1999
- -------------------------------------------- Finance (principal financial and
Thomas W. Stoelk accounting officer)
/s/ Michael V. Ronca Director and Chief Operating Officer April 22, 1999
- --------------------------------------------
Michael V. Ronca
30
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for the filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Fort Worth, State of Texas, on April 22, 1999.
LOMAK FINANCING TRUST
By: /s/ John H. Pinkerton
--------------------------------------
John H. Pinkerton, Trustee
By: /s/ Thomas W. Stoelk
--------------------------------------
Thomas W. Stoelk, Trustee
31
INDEX TO EXHIBITS
Exhibit Number Description
- -------------- -----------
4.13 Indenture
5.1 Opinion of Vinson & Elkins L.L.P.
12.1 Computation of Ratios of Earnings to Fixed Charges and Earnings to Fixed Charges and
Preferred Dividends
23.1 Consent of Independent Public Accountants
1
EXHIBIT 4.13
- --------------------------------------------------------------------------------
RANGE RESOURCES CORPORATION
AND
-------------------------------------
AS TRUSTEE
----------
INDENTURE
DATED AS OF _____________________
-----------
DEBT SECURITIES
- --------------------------------------------------------------------------------
2
TABLE OF CONTENTS*
RECITALS OF THE COMPANY.......................................................1
ARTICLE I
DEFINITIONS
Section 1.01. Certain Terms Defined.......................................1
Section 1.02. Incorporation by Reference of Trust Indenture Act..........10
Section 1.03. Rules of Construction......................................10
ARTICLE II
DEBT SECURITIES
Section 2.01. Forms Generally............................................11
Section 2.02. Form of Trustee's Certificate of Authentication............11
Section 2.03. Principal Amount; Issuable in Series.......................12
Section 2.04. Execution of Debt Securities...............................15
Section 2.05. Authentication and Delivery of Debt Securities.............16
Section 2.06. Denomination of Debt Securities............................17
Section 2.07. Registration of Transfer and Exchange......................17
Section 2.08. Temporary Debt Securities..................................19
Section 2.09. Mutilated, Destroyed, Lost or Stolen Debt Securities.......20
Section 2.10. Cancelation of Surrendered Debt Securities.................21
Section 2.11. Provisions of the Indenture and Debt Securities for
the Sole Benefit of the Parties and the Holders............21
Section 2.12. Payment of Interest; Interest Rights Preserved.............21
Section 2.13. Securities Denominated in Foreign Currencies...............23
Section 2.14. Wire Transfers.............................................23
Section 2.15. Securities Issuable in the Form of a Global Security.......23
Section 2.16. Medium Term Securities.....................................26
Section 2.17. Defaulted Interest.........................................27
Section 2.18. Judgments..................................................28
Section 2.19. CUSIP Numbers..............................................28
ARTICLE III
REDEMPTION OF DEBT SECURITIES
Section 3.01. Applicability of Article...................................29
Section 3.02. Tax Redemption; Special Tax Redemption.....................29
- -----------------
* The Table of Contents is not part of the Indenture.
i
3
Section 3.03. Notice of Redemption; Selection of Debt Securities.........31
Section 3.04. Payment of Debt Securities Called for Redemption...........33
Section 3.05. Mandatory and Optional Sinking Funds.......................34
Section 3.06. Redemption of Debt Securities for Sinking Fund.............34
ARTICLE IV
PARTICULAR COVENANTS OF THE COMPANY
Section 4.01. Payment of Principal of, and Premium, If Any, and
Interest on, Debt Securities...............................36
Section 4.02. Maintenance of Offices or Agencies for Registration
of Transfer, Exchange and Payment of Debt Securities.......37
Section 4.03. Appointment to Fill a Vacancy in the Office of Trustee.....37
Section 4.04. Duties of Paying Agents, etc...............................37
Section 4.05. Statement by Officers as to Default........................38
Section 4.06. Payment of Additional Interest.............................39
Section 4.07. Further Instruments and Acts...............................40
Section 4.08. Existence..................................................40
ARTICLE V
HOLDERS' LISTS AND REPORTS
BY THE COMPANY AND THE TRUSTEE
Section 5.01. Company to Furnish Trustee Information as to Names and
Addresses of Holders; Preservation of Information..........41
Section 5.02. Communications to Holders..................................41
Section 5.03. Reports by Company.........................................41
Section 5.04. Reports by Trustee.........................................42
Section 5.05. Record Dates for Action by Holders.........................42
ARTICLE VI
REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT
Section 6.01. Events of Default..........................................43
Section 6.02. Collection of Indebtedness by Trustee, etc.................45
Section 6.03. Application of Moneys Collected by Trustee.................47
Section 6.04. Limitation on Suits by Holders.............................47
Section 6.05. Remedies Cumulative; Delay or Omission in Exercise of
Rights Not a Waiver of Default.............................48
Section 6.06. Rights of Holders of Majority in Principal Amount of
Debt Securities to Direct Trustee and to Waive Default.....48
Section 6.07. Trustee to Give Notice of Defaults Known to It, but
May Withhold Such Notice in Certain Circumstances..........49
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Section 6.08. Requirement of an Undertaking To Pay Costs in Certain
Suits under the Indenture or Against the Trustee...........49
ARTICLE VII
CONCERNING THE TRUSTEE
Section 7.01. Certain Duties and Responsibilities........................50
Section 7.02. Certain Rights of Trustee..................................51
Section 7.03. Trustee Not Liable for Recitals in Indenture or in
Debt Securities............................................52
Section 7.04. Trustee, Paying Agent or Registrar May Own Debt
Securities.................................................52
Section 7.05. Moneys Received by Trustee to Be Held in Trust.............52
Section 7.06. Compensation and Reimbursement.............................53
Section 7.07. Right of Trustee to Rely on an Officers' Certificate
Where No Other Evidence Specifically Prescribed............53
Section 7.08. Separate Trustee; Replacement of Trustee...................53
Section 7.09. Successor Trustee by Merger................................55
Section 7.10. Eligibility; Disqualification..............................55
Section 7.11. Preferential Collection of Claims Against Company..........55
Section 7.12. Compliance with Tax Laws...................................55
ARTICLE VIII
CONCERNING THE HOLDERS
Section 8.01. Evidence of Action by Holders..............................56
Section 8.02. Proof of Execution of Instruments and of Holding of
Debt Securities............................................56
Section 8.03. Who May Be Deemed Owner of Debt Securities.................56
Section 8.04. Instruments Executed by Holders Bind Future Holders........57
ARTICLE IX
SUPPLEMENTAL INDENTURES
Section 9.01. Purposes for Which Supplemental Indenture May Be
Entered into Without Consent of Holders....................58
Section 9.02. Modification of Indenture with Consent of Holders of
Debt Securities............................................60
Section 9.03. Effect of Supplemental Indentures..........................61
Section 9.04. Debt Securities May Bear Notation of Changes by
Supplemental Indentures....................................62
Section 9.05. Payment for Consent........................................62
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ARTICLE X
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 10.01. Consolidations and Mergers of the Company..................62
Section 10.02. Rights and Duties of Successor Corporation.................63
ARTICLE XI
SATISFACTION AND DISCHARGE OF
INDENTURE; DEFEASANCE; UNCLAIMED MONEYS
Section 11.01. Applicability of Article...................................63
Section 11.02. Satisfaction and Discharge of Indenture; Defeasance........64
Section 11.03. Conditions of Defeasance...................................65
Section 11.04. Application of Trust Money.................................66
Section 11.05. Repayment to Company.......................................66
Section 11.06. Indemnity for U.S. Government Obligations..................66
Section 11.07. Reinstatement..............................................66
ARTICLE XII
SUBORDINATION OF DEBT SECURITIES
Section 12.01. Applicability of Article; Agreement To Subordinate.........67
Section 12.02. Liquidation, Dissolution, Bankruptcy.......................67
Section 12.03. Default on Senior Indebtedness.............................67
Section 12.04. Acceleration of Payment of Debt Securities.................68
Section 12.05. When Distribution Must Be Paid Over........................68
Section 12.06. Subrogation................................................68
Section 12.07. Relative Rights............................................69
Section 12.08. Subordination May Not Be Impaired by Company...............69
Section 12.09. Rights of Trustee and Paying Agent.........................69
Section 12.10. Distribution or Notice to Representative...................69
Section 12.11. Article XII Not to Prevent Defaults or Limit Right to
Accelerate.................................................69
Section 12.12. Trust Moneys Not Subordinated..............................70
Section 12.13. Trustee Entitled to Rely...................................70
Section 12.14. Trustee to Effectuate Subordination........................70
Section 12.15. Trustee Not Fiduciary for Holders of Senior Indebtedness...70
Section 12.16. Reliance by Holders of Senior Indebtedness on
Subordination Provisions...................................70
iv
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ARTICLE XIII
GUARANTEE OF DEBT SECURITIES
Section 13.01. Applicability of Article...................................71
Section 13.02. Unconditional Guarantee....................................71
Section 13.03. Execution and Delivery of Subsidiary Guarantees............73
Section 13.04. Limitation on Merger or Consolidation......................73
Section 13.05. Release of Subsidiary Guarantors...........................74
Section 13.06. Limitation of Subsidiary Guarantor's Liability.............74
Section 13.07. Contribution...............................................74
Section 13.08. Subordination of Guarantees................................75
ARTICLE XIV
MISCELLANEOUS PROVISIONS
Section 14.01. Successors and Assigns of Company Bound by Indenture.......75
Section 14.02. Acts of Board, Committee or Officer of Successor
Company Valid..............................................75
Section 14.03. Required Notices or Demands................................75
Section 14.04. Indenture and Debt Securities to Be Construed in
Accordance with the Laws of the State of New York..........76
Section 14.05. Officers' Certificate and Opinion of Counsel to Be
Furnished upon Application or Demand by the Company........76
Section 14.06. Payments Due on Legal Holidays.............................77
Section 14.07. Provisions Required by Trust Indenture Act to Control......77
Section 14.08. Computation of Interest on Debt Securities.................77
Section 14.09. Rules by Trustee, Paying Agent and Registrar...............77
Section 14.10. No Recourse Against Others.................................77
Section 14.11. Severability...............................................77
Section 14.12. Effect of Headings.........................................77
Section 14.13. Indenture May Be Executed in Counterparts..................77
v
7
RANGE RESOURCES CORPORATION
DEBT SECURITIES
CROSS REFERENCE SHEET*
This Cross Reference Sheet shows the location in the Indenture of the provisions
inserted pursuant to Sections 310-318(a), inclusive of the Trust Indenture Act
of 1939.
INDENTURE
TIA SECTION SECTION
----------- -------
310 (a)(1)................................................................................. 7.10
(a)(2)................................................................................. 7.10
(a)(3)................................................................................. 7.10
(a)(4)................................................................................. 7.10
(a)(5)................................................................................. 7.10
(b).................................................................................... 7.10
(c).................................................................................... N.A.**
311 (a).................................................................................... 7.11
(b).................................................................................... 7.11
(c).................................................................................... N.A.
312 (a).................................................................................... 5.01
(b).................................................................................... 5.02
(c).................................................................................... 5.02
313 (a).................................................................................... 5.04
(b)(1)................................................................................. 5.04
(b)(2)................................................................................. 5.04
(c).................................................................................... 14.03
(d).................................................................................... 5.04
314 (a)(1)................................................................................. 5.03(a)
(a)(2)................................................................................. 5.03(b)
(a)(3)................................................................................. 5.03(a) & (b)
& 13.03
(a)(4)................................................................................. 4.05
(b).................................................................................... N.A.
- --------
* The Cross Reference Sheet is not part of the Indenture.
** N.A. means "Not Applicable."
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INDENTURE
TIA SECTION SECTION
----------- -------
(c)(1)................................................................................. 14.05
(c)(2)................................................................................. 14.05
(c)(3)................................................................................. N.A.
(d).................................................................................... N.A.
(e).................................................................................... 14.05
(f).................................................................................... 4.06
315 (a).................................................................................... 7.01(a)
(b).................................................................................... 6.07 & 13.03
(c).................................................................................... 7.01
(d).................................................................................... 7.01
(e).................................................................................... 6.08
316 (a) (last sentence).................................................................... 1.01
(a)(1)(A).............................................................................. 6.06
(a)(1)(B).............................................................................. 6.06
(a)(2)................................................................................. 9.01(d)
(b).................................................................................... 6.04
(c).................................................................................... 5.05
317 (a)(1)................................................................................. 6.02
(a)(2)................................................................................. 6.02
(b).................................................................................... 4.04
318 (a).................................................................................... 14.07
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9
INDENTURE, dated as of _________________, between RANGE RESOURCES
CORPORATION, a corporation duly organized and existing under the laws of the
State of Delaware (hereinafter sometimes called the "Company"), and
____________________________, a ___________________________ (hereinafter
sometimes called the "Trustee").
RECITALS OF THE COMPANY
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, bonds or other evidences of indebtedness to be issued in one or more
series unlimited as to principal amount (herein called the "Debt Securities"),
as in this Indenture provided.
All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH
That in order to declare the terms and conditions upon which the Debt
Securities are authenticated, issued and delivered, and in consideration of the
premises, and of the purchase and acceptance of the Debt Securities by the
holders thereof, the Company and the Trustee covenant and agree with each other,
for the benefit of the respective Holders from time to time of the Debt
Securities or any series thereof, as follows:
ARTICLE I
DEFINITIONS
Section 1.01. CERTAIN TERMS DEFINED. The terms defined in this Section
1.01 (except as herein otherwise expressly provided or unless the context
otherwise requires) for all purposes of this Indenture and of any Indenture
supplemental hereto shall have the respective meanings specified in this Section
1.01. All other terms used in this Indenture which are defined in the Trust
Indenture Act or which are by reference therein defined in the Securities Act
(except as herein otherwise expressly provided or unless the context otherwise
requires), shall have the meanings assigned to such terms in the Trust Indenture
Act and in the Securities Act as in force as of the date of original execution
of this Indenture.
"Affiliate" of any specified Person means any other Person, directly or
indirectly, controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any 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.
1
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"Authorized Newspaper" means a newspaper in an official language of the
country of publication customarily published at least once a day, and
customarily published for at least five days in each calendar week, and of
general circulation in such city or cities specified pursuant to Section 2.03
with respect to the Debt Securities of any series. Where successive publications
are required to be made in Authorized Newspapers, the successive publications
may be made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any business day in such city.
"Bearer Holder" means, with respect to any Bearer Security or Coupon,
the bearer thereof.
"Bearer Security" means any Debt Security (with or without Coupons),
title to which passes by delivery only, but does not include any Coupons.
"Board of Directors" means either the Board of Directors of the Company
or any duly authorized committee or subcommittee of such Board, except as the
context may otherwise require.
"business day" means, when used with respect to any Place of Payment
specified pursuant to Section 2.03, any day that is not a Saturday, a Sunday or
a legal holiday or a day on which banking institutions or trust companies in
such Place of Payment are authorized or obligated by law to close, except as
otherwise specified pursuant to Section 2.03.
"Capital Stock" of any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or
interests (including partnership interests) in (however designated) equity of
such Person, including any Preferred Stock, but excluding any debt securities
convertible into such equity.
"Capitalized Lease Obligation" means an obligation that is required to
be classified and accounted for as a capitalized lease for financial reporting
purposes in accordance with GAAP.
"Commodity Price Protection Agreement" means, in respect of any Person,
any forward contract, commodity swap agreement, commodity option agreement or
other similar agreement or arrangement designed to protect such Person against
fluctuations in commodity prices.
"Common Stock" means the common stock, par value $.01 per share, of the
Company, which stock is currently listed on the New York Stock Exchange.
"Company" means Range Resources Corporation, a Delaware corporation,
and, subject to the provisions of Article X, shall also include its successors
and assigns.
"Company Order" means a written order of the Company, signed by its
Chairman of the Board, Vice Chairman, President or any Vice President and by its
Treasurer, Secretary, any Assistant Treasurer or any Assistant Secretary.
"corporate trust office of the trustee" or other similar term means the
office of the Trustee at which the corporate trust business of the Trustee
shall, at any particular time, be principally
2
11
administered in the United States of America, except that with respect to the
presentation of Debt Securities for payment or for registration of transfer and
exchange, such term shall also mean the office of the Trustee or the Trustee's
agent in the Borough of Manhattan, the City and State of New York, at which at
any particular time its corporate agency business shall be conducted.
"Coupon" means any interest coupon appertaining to any Bearer Security.
"Coupon Security" means any Bearer Security authenticated and delivered
with one or more Coupons appertaining thereto.
"Currency" means Dollars or Foreign Currency.
"Currency Exchange Protection Agreement" means, in respect of any
Person, any foreign exchange contract, currency swap agreement, currency option
or other similar agreement or arrangement designed to protect such Person
against fluctuations in currency exchange rates.
"Debt Security" or "Debt Securities" has the meaning stated in the
first recital of this Indenture and more particularly means any debt security or
debt securities, as the case may be of any series authenticated and delivered
under this Indenture.
"Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.
"Depositary" means, unless otherwise specified by the Company pursuant
to either Section 2.03 or 2.15, with respect to registered Debt Securities of
any series issuable or issued in whole or in part in the form of one or more
Global Securities, The Depository Trust Company, New York, New York, or any
successor thereto registered as a clearing agency under the Exchange Act or
other applicable statute or regulations.
"Designated Senior Indebtedness" means any Senior Indebtedness which,
at the date of determination, has an aggregate principal amount outstanding of,
or under which, at the date of determination, the holders thereof are committed
to lend up to, at least $25 million and is specifically designated by the
Company in the instrument evidencing or governing such Senior Indebtedness as
"Designated Senior Indebtedness" for purposes of this Indenture and has been
designated as "Designated Senior Indebtedness" for purposes of this Indenture in
an Officers' Certificate received by the Trustee.
"Dollar" or "$" means such currency of the United States as at the time
of payment is legal tender for the payment of public and private debts.
"Dollar Equivalent" means, with respect to any monetary amount in a
Foreign Currency, at any time for the determination thereof, the amount of
Dollars obtained by converting such Foreign Currency involved in such
computation into Dollars at the spot rate for the purchase of Dollars with the
applicable Foreign Currency as quoted by _________________ (unless another
comparable
3
12
financial institution is designated by the Company) in New York, New York at
approximately 11:00 a.m. (New York time) on the date two business days prior to
such determination.
"Euro" means the lawful currency of the participating member states of
the European Union, or its successors that adopt a single currency in accordance
with the Treaty establishing the European Community, as amended by the Treaty on
European Union that was signed on February 7, 1992.
"Event of Default" has the meaning specified in Section 6.01.
"Exchange Act" means the Securities Exchange Act of 1934.
"Floating Rate Security" means a Debt Security that provides for the
payment of interest at a variable rate determined periodically by reference to
an interest rate index specified pursuant to Section 2.03.
"Foreign Currency" means a currency issued by the government of any
country other than the United States or a composite currency the value of which
is determined by reference to the values of the currencies of any group of
countries.
"GAAP" means generally accepted accounting principles in the United
States as in effect as of the date on which the Debt Securities of the
applicable series are issued, including those set forth in (i) the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants, (ii) statements and pronouncements of the
Financial Accounting Standards Board, (iii) such other statements by such other
entity as approved by a significant segment of the accounting profession and
(iv) the rules and regulations of the SEC governing the inclusion of financial
statements (including pro forma financial statements) in periodic reports
required to be filed pursuant to Section 13 of the Exchange Act, including
opinions and pronouncements in staff accounting bulletins and similar written
statements from the accounting staff of the SEC. All ratios and computations
based on GAAP contained in this Indenture shall be computed in conformity with
GAAP consistently applied.
"Global Security" means with respect to any series of Debt Securities
issued hereunder, a Debt Security which is executed by the Company and
authenticated and delivered by the Trustee to the Depositary or pursuant to the
Depositary's instruction, all in accordance with this Indenture and any
Indentures supplemental hereto, or resolution of the Board of Directors and set
forth in an Officers' Certificate, which shall be registered in the name of the
Depositary or its nominee and which shall represent, and shall be denominated in
an amount equal to the aggregate principal amount of, all the Outstanding Debt
Securities of such series or any portion thereof, in either case having the same
terms, including, without limitation, the same original issue date, date or
dates on which principal is due and interest rate or method of determining
interest.
"Government Contract Lien" means any Lien required by any contract,
statute, regulation or order in order to permit the Company or any of its
Subsidiaries to perform any contract or subcontract made by it with or at the
request of the United States or any State thereof or any department, agency or
instrumentality of either or to secure partial, progress, advance or other
4
13
payments by the Company or any of its Subsidiaries to the United States or any
State thereof or any department, agency or instrumentality of either pursuant to
the provisions of any contract, statute, regulation or order.
"Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness or other obligation
of any other Person and any obligation, direct or indirect, contingent or
otherwise, of such Person (a) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Indebtedness or other obligation of such other
Person (whether arising by virtue of partnership arrangements, or by agreement
to keep-well, to purchase assets, goods, securities or services, to take-or-pay,
or to maintain financial statement conditions or otherwise) or (b) entered into
for purposes of assuring in any other manner the obligee of such Indebtedness or
other obligation of the payment thereof or to protect such obligee against loss
in respect thereof (in whole or in part); provided, however, that the term
"Guarantee" shall not include endorsements for collection or deposit in the
ordinary course of business. The term "Guarantee" used as a verb has a
corresponding meaning.
"Hedging Obligations" of any Person means the obligations of such
Person pursuant to any Interest Rate Protection Agreement, Currency Exchange
Protection Agreement, Commodity Price Protection Agreement or other similar
agreement.
"Holder," "Holder of Debt Securities" or other similar terms means,
with respect to a Registered Security, the Registered Holder and, with respect
to a Bearer Security or a Coupon, the Bearer Holder.
"Indebtedness" means, with respect to any Person, at any date, any of
the following, without duplication: (i) any liability, contingent or otherwise,
of such Person (A) for borrowed money (whether or not the recourse of the lender
is to the whole of the assets of such Person or only to a portion thereof), (B)
evidenced by a note, bond, debenture or similar instrument, or (C) for the
payment of money relating to a Capitalized Lease Obligation or other obligation
(whether issued or assumed) relating to the deferred purchase price of property;
(ii) all conditional sale obligations and all obligations under any title
retention agreement (even if the rights and remedies of the seller under such
agreement in the event of default are limited to repossession or sale of such
property); (iii) all obligations for the reimbursement of any obligor on any
letter of credit, banker's acceptance or similar credit transaction other than
as entered into in the ordinary course of business; (iv) all indebtedness of
others secured by (or for which the holder of such indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on any asset or
property (including, without limitation, leasehold interests and any other
tangible or intangible property) of such Person, whether or not such
indebtedness is assumed by such Person or is not otherwise such Person's legal
liability; provided that if the obligations so secured have not been assumed in
full by such Person or are otherwise not such Person's legal liability in full,
the amount of such indebtedness for the purposes of this definition shall be
limited to the lesser of the amount of such indebtedness secured by such Lien or
the fair market value of the assets or the property securing such lien; (v) all
indebtedness of others (including all interest and dividends on any Indebtedness
or Preferred Stock of any other Person the payment of which is) guaranteed,
directly or indirectly, by such Person or that is otherwise its legal liability
or which such Person has agreed to purchase or repurchase or in respect
5
14
of which such Person has agreed contingently to supply or advance funds; and
(vi) to the extent not otherwise included in this definition, obligations in
respect of Hedging Obligations. Indebtedness shall not include (a) accounts
payable arising in the ordinary course of business, and (b) any obligations in
respect of prepayments for gas or oil production or gas or oil imbalances.
"Indenture" means this instrument as originally executed, or, if
amended or supplemented as herein provided, as so amended or supplemented and
shall include the form and terms of particular series of Debt Securities as
contemplated hereunder, whether or not a supplemental Indenture is entered into
with respect thereto.
"Interest" includes, when used with respect to a Bearer Security, any
additional interest payable on such Bearer Security pursuant to Section 3.02 or
4.06.
"Interest Rate Protection Agreement" means, in respect of any Person,
any interest rate swap agreement, interest rate option agreement, interest rate
cap agreement, interest rate collar agreement, interest rate floor agreement or
other similar agreement or arrangement designed to protect such Person against
fluctuations in interest rates.
"Lien" means any mortgage, pledge, security interest, encumbrance,
lien, charge or adverse claim affecting title or resulting in an encumbrance
against real or personal property or a security interest of any kind (including,
without limitation, any conditional sale or other title retention agreement or
lease in the nature thereof or any filing or agreement to file a financing
statement as debtor under the Uniform Commercial Code or any similar statute
other than to reflect ownership by a third party of property leased to the
Company or any of its Subsidiaries under a lease that is not in the nature of a
conditional sale or title retention agreement).
"Officers' Certificate" means a certificate signed by the Chairman of
the Board, the Vice Chairman, the President or any Vice President and by the
Treasurer, the Secretary or any Assistant Treasurer or Assistant Secretary of
the Company. Each such certificate shall include the statements provided for in
Section 13.05, if applicable.
"Opinion of Counsel" means an opinion in writing signed by legal
counsel for the Company (which counsel may be an employee of the Company), or
outside counsel for the Company. Each such opinion shall include the statements
provided for in Section 13.05, if applicable.
"Original Issue Discount Debt Security" means any Debt Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the maturity thereof pursuant to
Section 6.01.
"Outstanding", when used with respect to any series of Debt Securities,
means, as of the date of determination, all Debt Securities of that series
theretofore authenticated and delivered under this Indenture, except:
(a) Debt Securities of that series theretofore canceled by the
Trustee or delivered to the Trustee for cancellation;
6
15
(b) Debt Securities of that series 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 Debt Securities; provided, that, if such Debt Securities are
to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made; and
(c) Debt Securities of that series which have been paid pursuant to
Section 2.09 or in exchange for or in lieu of which other Debt Securities have
been authenticated and delivered pursuant to this Indenture, other than any such
Debt Securities in respect of which there shall have been presented to the
Trustee proof satisfactory to it that such Debt Securities are held by a bona
fide purchaser in whose hands such Debt Securities are valid obligations of the
Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Debt Securities of any series have given any
request, demand, authorization, direction, notice, consent or waiver hereunder,
Debt Securities owned by the Company or any other obligor upon the Debt
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 relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Debt Securities which
a responsible officer of the Trustee actually knows to be so owned shall be so
disregarded. Debt 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 Debt Securities and
that the pledgee is not the Company or any other obligor upon the Debt
Securities or an Affiliate of the Company or of such other obligor. In
determining whether the Holders of the requisite principal amount of Outstanding
Debt Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, the principal amount of an Original Issue
Discount Debt Security that shall be deemed to be Outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as of
the date of such determination upon a declaration of acceleration of the
maturity thereof pursuant to Section 6.01. In determining whether the Holders of
the requisite principal amount of the Outstanding Debt Securities of any series
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, the principal amount of a Debt Security denominated in one or
more foreign currencies or currency units that shall be deemed to be Outstanding
for such purposes shall be the Dollar Equivalent, determined in the manner
provided as contemplated by Section 2.03 on the date of original issuance of
such Debt Security, of the principal amount (or, in the case of any Original
Issue Discount Security, the Dollar Equivalent on the date of original issuance
of such Security of the amount determined as provided in the preceding sentence
above) of such Debt Security.
"pari passu", as applied to the ranking of any Indebtedness of a Person
in relation to other Indebtedness of such Person, means that each such
Indebtedness either (a) is not subordinate in right of payment to any
Indebtedness or (b) is subordinate in right of payment to the same Indebtedness
as is the other, and is so subordinate to the same extent, and is not
subordinate in right of payment to each other or to any Indebtedness as to which
the other is not so subordinate.
7
16
"Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, government
or any agency or political subdivision thereof or any other entity.
"Place of Payment" means, when used with respect to the Debt Securities
of any series, the place or places where the principal of, and premium, if any,
and interest on, the Debt Securities of that series are payable as specified
pursuant to Section 2.03.
"Preferred Stock", as applied to the Capital Stock of any Person, means
Capital Stock of any class or classes (however designated) which is preferred as
to the payment of dividends or distributions, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over shares of Capital Stock of any other class of such Person.
"Registered Holder" means the Person in whose name a Registered
Security is registered in the Debt Security Register (as defined in Section
2.07(a)).
"Registered Security" means any Debt Security registered as to
principal and interest in the Debt Security Register (as defined in Section
2.07(a)).
"Registrar" has the meaning set forth in Section 2.07(a).
"Representative" means the trustee, agent or representative (if any)
for an issue of Senior Indebtedness.
"responsible officer", when used with respect to the Trustee, means any
Account Manager or any officer within the corporate trust trustee administration
group of the Trustee, including any Vice President, any Assistant Vice
President, any Treasurer, any Assistant Treasurer, any trust officer or any
other officer of the Trustee performing functions similar to those performed by
the persons who at the time shall be such officers, and any other officer of the
Trustee to whom corporate trust matters are referred because of his knowledge of
and familiarity with the particular subject.
"Securities Act" means the Securities Act of 1933.
"Senior Indebtedness" means, as to any series of Debt Securities
subordinated pursuant to the provisions of Article XII, the Indebtedness of the
Company identified as Senior Indebtedness in the resolution of the Board of
Directors and accompanying Officers' Certificate or supplemental Indenture
setting forth the terms, including as to Subordination, of such series.
"Significant Subsidiary" means a Subsidiary of any Person that would be
a "significant subsidiary" as defined in Rule 405 under the Securities Act as in
effect on the date of this Indenture.
"Stated Maturity" means, with respect to any security, the date
specified in such security as the fixed date on which the payment of principal
of such security is due and payable, including pursuant to any mandatory
redemption provision (but excluding any provision providing for the
8
17
repurchase of such security at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such
contingency has occurred).
"Subsidiary" of any Person means (i) any Person of which more than 50%
of the total voting power of shares of Capital Stock entitled (without regard to
the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more of the Subsidiaries of that Person or a
combination thereof, and (ii) any partnership, joint venture or other Person in
which such Person or one or more of the Subsidiaries of that Person or a
combination thereof has the power to control by contract or otherwise the board
of directors or equivalent governing body or otherwise controls such entity.
"Subsidiary Guarantee" means the guarantee of the Subsidiary Guarantors
as provided in Article XIII.
"Subsidiary Guarantors" means any Subsidiary of the Company that
executes a Subsidiary Guarantee in accordance with the provisions of this
Indenture, and their respective successors and assigns.
"Trustee" initially means ____________________ and any other Person or
Persons appointed as such from time to time pursuant to Section 7.08, and,
subject to the provisions of Article VII, includes its or their successors and
assigns. If at any time there is more than one such Person, "Trustee" as used
with respect to the Debt Securities of any series shall mean the Trustee with
respect to the Debt Securities of that series.
"Trust Indenture Act" (except as herein otherwise expressly provided)
means the Trust Indenture Act of 1939 as in force at the date of this Indenture
as originally executed and, to the extent required by law, as amended.
"United States" means the United States of America (including the
States and the District of Columbia), its territories, its possessions and other
areas subject to its jurisdiction.
"United States Alien" means any Person who, for United States Federal
income tax purposes, is a foreign corporation, a nonresident alien individual, a
nonresident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more members of which is, for United States Federal income
tax purposes, a foreign corporation, a nonresident alien individual or a
nonresident alien fiduciary of a foreign estate or trust.
"U.S. Government Obligations" means direct obligations (or certificates
representing an ownership interest in such obligations) of the United States of
America (including any agency or instrumentality thereof) for the payment of
which the full faith and credit of the United States of America is pledged and
which are not callable at the issuer's option.
9
18
"Yield to Maturity" means the yield to maturity, calculated at the time
of issuance of a series of Debt Securities, or, if applicable, at the most
recent redetermination of interest on such series and calculated in accordance
with accepted financial practice.
Section 1.02. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT. This
Indenture is subject to the mandatory provisions of the Trust Indenture Act
which are incorporated by reference in and made a part of this Indenture. The
following Trust Indenture Act terms have the following meanings:
"indenture securities" means the Debt Securities.
"indenture security holder" means a Holder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the Trustee.
"obligor" on the indenture securities means the Company and any other
obligor on the Debt Securities.
All other Trust Indenture Act terms used in this Indenture that are
defined by the Trust Indenture Act, reference to another statute or defined by
rules of the Securities and Exchange Commission have the meanings assigned to
them by such definitions.
Section 1.03. RULES OF CONSTRUCTION. Unless the context otherwise
requires:
(a) a term has the meaning assigned to it;
(b) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
(c) "or" is not exclusive;
(d) "including" means including without limitation;
(e) words in the singular include the plural and words in the
plural include the singular;
(f) 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;
(g) the masculine gender includes the feminine and the neuter;
(h) a "day" means a calendar day; and
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19
(i) references to agreements and other instruments include
subsequent amendments and waivers but only to the extent not prohibited by this
Indenture.
ARTICLE II
DEBT SECURITIES
Section 2.01. FORMS GENERALLY. The Debt Securities and Coupons, if any,
of each series shall be in substantially the form established without the
approval of any Holder by or pursuant to a resolution of the Board of Directors
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, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon as
the Company may deem appropriate (and, if not contained in a supplemental
Indenture entered into in accordance with Article IX, as are not prohibited by
the provisions of this Indenture) or as may be required or appropriate to comply
with any law or with any rules made pursuant thereto or with any rules of any
securities exchange on which such series of Debt Securities may be listed, or to
conform to general usage, or as may, consistently herewith, be determined by the
officers executing such Debt Securities and Coupons, as evidenced by their
execution of the Debt Securities and Coupons.
The definitive Debt Securities of each series and Coupons, if any,
shall be typewritten, printed, lithographed or engraved on steel engraved
borders or may be produced in any other manner, all as determined by the
officers executing such Debt Securities and Coupons, as evidenced by their
execution of such Debt Securities and Coupons.
Each Bearer Security and each Coupon shall bear a legend substantially
to the following effect: "Any United States Person who holds this obligation
will be subject to limitations under the United States Federal income tax laws,
including the limitations provided in Sections 165(j) and 1287(a) of the
Internal Revenue Code."
Section 2.02. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION. The
Trustee's Certificate of Authentication on all Debt Securities authenticated by
the Trustee shall be in substantially the following form:
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TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein
referred to in the within-mentioned Indenture.
Dated:
------------------------------------
As Trustee
By:
---------------------------------------
Authorized Signature
Section 2.03. PRINCIPAL AMOUNT; ISSUABLE IN SERIES. The aggregate
principal amount of Debt Securities which may be issued, executed,
authenticated, delivered and outstanding under this Indenture is unlimited.
The Debt Securities may be issued in one or more series. There shall be
established, without the approval of any Holders, in or pursuant to a resolution
of the Board of Directors and set forth in an Officers' Certificate, or
established in one or more Indentures supplemental hereto, prior to the issuance
of Debt Securities of any series any or all of the following:
(a) the title of the Debt Securities of the series (which shall
distinguish the Debt Securities of the series from all other Debt Securities);
(b) any limit upon the aggregate principal amount of the Debt
Securities of the series which may be authenticated and delivered under this
Indenture (except for Debt Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Debt
Securities of the series pursuant to this Article II);
(c) the date or dates on which the principal and premium, if any,
of the Debt Securities of the series are payable;
(d) the rate or rates (which may be fixed or variable) at which the
Debt Securities of the series shall bear interest, if any, or the method of
determining such rate or rates, the date or dates from which such interest shall
accrue, the interest payment dates on which such interest shall be payable, or
the method by which such date will be determined, in the case of Registered
Securities, the record dates for the determination of Holders thereof to whom
such interest is payable; and the basis upon which interest will be calculated
if other than that of a 360-day year of twelve thirty-day months;
(e) the place or places, if any, in addition to or instead of the
corporate trust office of the Trustee (in the case of Registered Securities) or
the principal London office of the Trustee (in
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the case of Bearer Securities), where the principal of, and premium, if any, and
interest on, Debt Securities of the series shall be payable;
(f) the price or prices at which, the period or periods within
which and the terms and conditions upon which Debt Securities of the series may
be redeemed, in whole or in part, at the option of the Company or otherwise;
(g) whether Debt Securities of the series are to be issued as
Registered Securities or Bearer Securities or both, and, if Bearer Securities
are to be issued, whether Coupons will be attached thereto, whether Bearer
Securities of the series may be exchanged for Registered Securities of the
series and the circumstances under which and the places at which any such
exchanges, if permitted, may be made;
(h) if any Debt Securities of the series are to be issued as Bearer
Securities or as one or more Global Securities representing individual Bearer
Securities of the series, (i) whether the provisions of Sections 3.02 and 4.06
or other provisions for payment of additional interest or tax redemptions shall
apply and, if other provisions shall apply, such other provisions; (ii) whether
interest in respect of any portion of a temporary Bearer Security of the series
(delivered pursuant to Section 2.08) payable in respect of any interest payment
date prior to the exchange of such temporary Bearer Security for definitive
Bearer Securities of the series shall be paid to any clearing organization with
respect to the portion of such temporary Bearer Security held for its account
and, in such event, the terms and conditions (including any certification
requirements) upon which any such interest payment received by a clearing
organization will be credited to the Persons entitled to interest payable on
such interest payment date; and (iii) the terms upon which a temporary Bearer
Security may be exchanged for one or more definitive Bearer Securities of the
series;
(i) the obligation, if any, of the Company to redeem, purchase or
repay Debt Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof, and the price or prices at
which and the period or periods within which and the terms and conditions upon
which Debt Securities of the series shall be redeemed, purchased or repaid, in
whole or in part, pursuant to such obligations;
(j) the terms, if any, upon which the Debt Securities of the series
may be convertible into or exchanged for Common Stock, Preferred Stock (which
may be represented by depositary shares), other Debt Securities or warrants for
Common Stock, Preferred Stock or Indebtedness or other securities of any kind of
the Company or any other obligor and the terms and conditions upon which such
conversion or exchange shall be effected, including the initial conversion or
exchange price or rate, the conversion or exchange period and any other
provision in addition to or in lieu of those described herein;
(k) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Debt Securities of the series shall be
issuable;
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(l) if the amount of principal of or any premium or interest on
Debt Securities of the series may be determined with reference to an index or
pursuant to a formula, the manner in which such amounts will be determined;
(m) if the principal amount payable at the Stated Maturity of Debt
Securities of the series will not be determinable as of any one or more dates
prior to such Stated Maturity, the amount which will be deemed to be such
principal amount as of any such date for any purpose, including the principal
amount thereof which will be due and payable upon any maturity other than the
Stated Maturity or which will be deemed to be Outstanding as of any such date
(or, in any such case, the manner in which such deemed principal amount is to be
determined); and the manner of determining the equivalent thereof in the
currency of the United States of America for purposes of the definition of
Dollar Equivalent;
(n) any changes or additions to Article XI, including the addition
of additional covenants that may be subject to the covenant defeasance option
pursuant to Section 11.02(b)(ii);
(o) if other than such coin or Currency of the United States as at
the time of payment is legal tender for payment of public and private debts, the
coin or Currency or Currencies or units of two or more Currencies in which
payment of the principal of, and premium, if any, and interest on, Debt
Securities of the series shall be payable;
(p) if other than the principal amount thereof, the portion of the
principal amount of Debt Securities of the series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.01 or
provable in bankruptcy pursuant to Section 6.02;
(q) the terms, if any, of the transfer, mortgage, pledge or
assignment as security for the Debt Securities of the series of any properties,
assets, moneys, proceeds, securities or other collateral, including whether
certain provisions of the Trust Indenture Act are applicable and any
corresponding changes to provisions of this Indenture as currently in effect;
(r) any addition to or change in the Events of Default with respect
to the Debt Securities of the series and any change in the right of the Trustee
or the Holders to declare the principal of, and premium and interest on, such
Debt Securities due and payable;
(s) if the Debt Securities of the series shall be issued in whole
or in part in the form of a Global Security or Securities, the terms and
conditions, if any, upon which such Global Security or Securities may be
exchanged in whole or in part for other individual Debt Securities in definitive
registered form; and the Depositary for such Global Security or Securities and
the form of any legend or legends to be borne by any such Global Security or
Securities in addition to or in lieu of the legend referred to in Section 2.15;
(t) any trustees, authenticating or paying agents, transfer agents
or registrars;
(u) the applicability of, and any addition to or change in the
covenants and definitions currently set forth in this Indenture or in the terms
currently set forth in Article X,
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including conditioning any merger, conveyance, transfer or lease permitted by
Article X upon the satisfaction of an Indebtedness coverage standard by the
Company and Successor Company (as defined in Article X);
(v) the terms, if any, of any Guarantee of the payment of principal
of, and premium, if any, and interest on, Debt Securities of the series and any
corresponding changes to the provisions of this Indenture as currently in
effect;
(w) the subordination, if any, of the Debt Securities of the series
pursuant to Article XII and any changes or additions to Article XII;
(x) with regard to Debt Securities of the series that do not bear
interest, the dates for certain required reports to the Trustee; and
(y) any other terms of the Debt Securities of the series (which
terms shall not be prohibited by the provisions of this Indenture).
All Debt Securities of any one series and the Coupons, if any,
appertaining thereto shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to such resolution of the
Board of Directors and as set forth in such Officers' Certificate or in any such
Indenture supplemental hereto.
Section 2.04. EXECUTION OF DEBT SECURITIES. The Debt Securities and the
Coupons, if any, shall be signed on behalf of the Company by its Chairman of the
Board, its Vice Chairman, its President or a Vice President and by its
Secretary, an Assistant Secretary, a Treasurer or an Assistant Treasurer. Such
signatures upon the Debt Securities and Coupons may be the manual or facsimile
signatures of the present or any future such authorized officers and may be
imprinted or otherwise reproduced on the Debt Securities and Coupons. The seal
of the Company, if any, may be in the form of a facsimile thereof and may be
impressed, affixed, imprinted or otherwise reproduced on the Debt Securities and
Coupons.
Only such Debt Securities and Coupons as shall bear thereon a
certificate of authentication substantially in the form hereinbefore recited,
signed manually by the Trustee, shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the
Trustee upon any Debt Security or Coupon executed by the Company shall be
conclusive evidence that the Debt Security or Coupon so authenticated has been
duly authenticated and delivered hereunder.
In case any officer of the Company who shall have signed any of the
Debt Securities or Coupons shall cease to be such officer before the Debt
Securities or Coupons so signed shall have been authenticated and delivered by
the Trustee, or disposed of by the Company, such Debt Securities or Coupons
nevertheless may be authenticated and delivered or disposed of as though the
Person who signed such Debt Securities or Coupons had not ceased to be such
officer of the Company; and any Debt Security or Coupon may be signed on behalf
of the Company by such Persons as, at the actual date of the execution of such
Debt Security or Coupon, shall be the proper
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officers of the Company, although at the date of such Debt Security or Coupon or
of the execution of this Indenture any such Person was not such officer.
Section 2.05. AUTHENTICATION AND DELIVERY OF DEBT SECURITIES. At any
time and from time to time after the execution and delivery of this Indenture,
the Company may deliver Debt Securities, with appropriate Coupons, if any, of
any series executed by the Company to the Trustee for authentication, and the
Trustee shall thereupon authenticate and deliver such Debt Securities and
Coupons to or upon a Company Order. In authenticating such Debt Securities and
Coupons, and accepting the additional responsibilities under this Indenture in
relation to such Debt Securities and Coupons, the Trustee shall be entitled to
receive, and (subject to Section 7.01) shall be fully protected in relying upon:
(a) a copy of any resolution or resolutions of the Board of
Directors, certified by the Secretary or Assistant Secretary of the Company,
authorizing the terms of issuance of any series of Debt Securities and Coupons;
(b) an executed supplemental Indenture, if any;
(c) an Officers' Certificate; and
(d) an Opinion of Counsel prepared in accordance with Section 13.05
which shall state:
(i) that the terms of such Debt Securities and Coupons have
been established by or pursuant to a resolution of the Board of
Directors or by a supplemental Indenture as permitted by Section 2.03
in conformity with the provisions of this Indenture; and
(ii) that such Debt Securities and Coupons, 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 except as (A) the
enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, or similar laws
affecting the enforcement of creditors' rights generally and (B) rights
of acceleration and the availability of equitable remedies may be
limited by equitable principles (whether in a proceeding at law or in
equity);
Such Opinion of Counsel need express no opinion as to whether a court
in the United States would render a money judgment in a currency other than that
of the United States.
The Trustee shall have the right to decline to authenticate and deliver
any Debt Securities or Coupons under this Section 2.05 if the Trustee, being
advised by counsel, determines that such action may not lawfully be taken or if
the Trustee in good faith by its board of directors or trustees, executive
committee or a trust committee of directors, trustees or vice presidents shall
determine that such action would expose the Trustee to personal liability to
existing Holders.
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The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate Debt Securities and Coupons, if any, of any
series. Unless limited by the terms of such appointment, an authenticating agent
may authenticate Debt Securities whenever the Trustee may do so. Each reference
in this Indenture to authentication by the Trustee includes authentication by
such agent. An authenticating agent has the same rights as any Registrar, paying
agent or agent for service of notices and demands.
Unless otherwise provided in the form of Debt Security for any series,
each Debt Security shall be dated the date of its authentication.
Section 2.06. DENOMINATION OF DEBT SECURITIES. Unless otherwise
provided in the form of Debt Security for any series, the Debt Securities of
each series shall be issuable only as Registered Securities in such
denominations as shall be specified or contemplated by Section 2.03. In the
absence of any such specification with respect to the Debt Securities of any
series, the Debt Securities of such series shall be issuable in denominations of
$1,000 and any integral multiple thereof.
Section 2.07. REGISTRATION OF TRANSFER AND EXCHANGE. (a) The Company
shall keep or cause to be kept a register for each series of Registered
Securities issued hereunder (hereinafter collectively referred to as the "Debt
Security Register"), in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Registered
Securities and the transfer of Registered Securities as in this Article II
provided. At all reasonable times the Debt Security Register shall be open for
inspection by the Trustee. Subject to Section 2.15, upon due presentment for
registration of transfer of any Registered Security at any office or agency to
be maintained by the Company in accordance with the provisions of Section 4.02,
the Company shall execute and the Trustee shall authenticate and deliver in the
name of the transferee or transferees a new Registered Security or Registered
Securities of authorized denominations for a like aggregate principal amount. In
no event may Registered Securities, including Registered Securities received in
exchange for Bearer Securities, be exchanged for Bearer Securities.
Unless and until otherwise determined by the Company by resolution of
the Board of Directors, the register of the Company for the purpose of
registration, exchange or registration of transfer of the Registered Securities
shall be kept at the corporate trust office of the Trustee and, for this
purpose, the Trustee shall be designated "Registrar".
Registered Securities of any series (other than a Global Security,
except as set forth below) may be exchanged for a like aggregate principal
amount of Registered Securities of the same series of other authorized
denominations. Subject to Section 2.15, Registered Securities to be exchanged
shall be surrendered at the office or agency to be maintained by the Company as
provided in Section 4.02, and the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor the Registered Security or
Registered Securities which the Holder making the exchange shall be entitled to
receive.
At the option of the Holder of Bearer Securities of any series, except
as otherwise specified as contemplated by Section 2.03(h) or 2.03(s) with
respect to a Global Security representing Bearer
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Securities, Bearer Securities of such series may be exchanged for Registered
Securities (if the Debt Securities of such series are issuable as Registered
Securities) or Bearer Securities of the same series, of any authorized
denomination or denominations, of like tenor and aggregate principal amount,
upon surrender of the Bearer Securities to be exchanged at the office or agency
of the Company maintained for such purpose, with all unmatured Coupons and all
matured Coupons in Default thereto appertaining; provided, however, that
delivery of a Bearer Security shall occur only outside the United States. If
such Holder is unable to produce any such unmatured Coupon or Coupons or matured
Coupon or Coupons in Default, such exchange may be effected if such Holder's
Bearer Securities are accompanied by payment in funds acceptable to the Company
and the Trustee in an amount equal to the face amount of such missing Coupon or
Coupons, or the surrender of such missing Coupon or Coupons may be waived by the
Company and the Trustee if there be furnished to them such security or indemnity
as they may require to save each of them and any paying agent harmless. If
thereafter such Holder shall surrender to any paying agent any such missing
Coupon in respect of which such a payment shall have been made, such Holder
shall be entitled to receive the amount of such payment; provided, however,
that, except as otherwise provided in Section 2.12, interest represented by
Coupons shall be payable only upon presentation and surrender of those Coupons
at an office or agency located outside the United States.
Whenever any Debt Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the Debt
Securities that the Holder making the exchange is entitled to receive.
Notwithstanding the foregoing, the exchange of Bearer Securities for
Registered Securities will be subject to the provisions of United States income
tax laws and regulations applicable to Debt Securities in effect at the time of
such exchange.
(b) All Registered Securities presented or surrendered for
registration of transfer, exchange or payment shall (if so required by the
Company, the Trustee or the Registrar) be duly endorsed or be accompanied by a
written instrument or instruments of transfer, in form satisfactory to the
Company, the Trustee and the Registrar, duly executed by the Registered Holder
or his attorney duly authorized in writing.
All Debt Securities issued in exchange for or upon transfer of Debt
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture as the Debt
Securities surrendered for such exchange or transfer.
No service charge shall be made for any exchange or registration of
transfer of Debt Securities (except as provided by Section 2.09), but the
Company may require payment of a sum sufficient to cover any tax, fee,
assessment or other governmental charge that may be imposed in relation thereto,
other than those expressly provided in this Indenture to be made at the
Company's own expense or without expense or without charge to the Holders.
The Company shall not be required (i) to issue, register the transfer
of or exchange any Debt Securities for a period of 15 days next preceding any
mailing of notice of redemption of Debt Securities of such series or (ii) to
register the transfer of or exchange any Debt Securities selected,
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called or being called for redemption; provided, however, that, if specified
pursuant to Section 2.03, any Bearer Securities of any series that are
exchangeable for Registered Securities and that are called for redemption
pursuant to Section 3.02 may, to the extent permitted by applicable law, be
exchanged for one or more Registered Securities of such series during the period
preceding the redemption date therefor.
Prior to the due presentation for registration of transfer of any Debt
Security, the Company, the Trustee, any paying agent or any Registrar may deem
and treat the Person in whose name a Debt Security is registered as the absolute
owner of such Debt Security for the purpose of receiving payment of principal
of, and premium, if any, and interest on, such Debt Security and for all other
purposes whatsoever, whether or not such Debt Security is overdue, and none of
the Company, the Trustee, any paying agent or Registrar shall be affected by
notice to the contrary.
None of the Company, the Trustee, any agent of the Trustee, any paying
agent or any Registrar will have any responsibility or liability for any aspect
of the records relating to, or payments made on account of, beneficial ownership
interests of a Global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.
Section 2.08. TEMPORARY DEBT SECURITIES. Pending the preparation of
definitive Debt Securities of any series, the Company may execute and the
Trustee shall authenticate and deliver temporary Debt Securities (printed,
lithographed, photocopied, typewritten or otherwise produced) of any authorized
denomination, and substantially in the form of the definitive Debt Securities in
lieu of which they are issued, in registered form or, if authorized, in bearer
form with one or more Coupons or without Coupons, and with such omissions,
insertions and variations as may be appropriate for temporary Debt Securities
and Coupons, all as may be determined by the Company with the concurrence of the
Trustee. Temporary Debt Securities and Coupons may contain such reference to any
provisions of this Indenture as may be appropriate. Every temporary Debt
Security shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Debt Securities.
If temporary Debt Securities of any series are issued, the Company will
cause definitive Debt Securities of such series to be prepared without
unreasonable delay. Except as otherwise specified as contemplated by Section
2.03(h)(iii) with respect to a series of Debt Securities issuable as Bearer
Securities or as one or more Global Securities representing individual Bearer
Securities of the series, (a) after the preparation of definitive Debt
Securities of such series, the temporary Debt Securities of such series shall be
exchangeable for definitive Debt Securities of such series upon surrender of the
temporary Debt Securities of such series at the office or agency of the Company
at a Place of Payment for such series, without charge to the Holder thereof,
except as provided in Section 2.07 in connection with a transfer and except that
a Person receiving definitive Bearer Securities shall bear the cost of
insurance, postage, transportation and the like unless otherwise specified
pursuant to Section 2.03, and (b) upon surrender for cancellation of any one or
more temporary Debt Securities of any series (accompanied by any unmatured
Coupons appertaining thereto), the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Debt Securities of the same series of authorized denominations and of
like tenor; provided, however, that no definitive Bearer Security shall be
delivered in exchange
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for a temporary Registered Security; and provided, further, however, that
delivery of a Global Security representing individual Bearer Securities or a
Bearer Security shall occur only outside the United States. Until so exchanged,
temporary Debt Securities of any series shall in all respects be entitled to the
same benefits under this Indenture as definitive Debt Securities of such series,
except as otherwise specified as contemplated by Section 2.03(h)(ii) with
respect to the payment of interest on Global Securities in temporary form.
Unless otherwise specified pursuant to Section 2.03, the Company will
execute and deliver each definitive Global Security representing individual
Bearer Securities and each Bearer Security to the Trustee at its principal
office in London or such other place outside the United States specified
pursuant to Section 2.03.
Upon any exchange of a portion of a temporary Global Security for a
definitive Global Security or for the individual Debt Securities represented
thereby pursuant to Section 2.07 or this Section 2.08, the temporary Global
Security shall be endorsed by the Trustee to reflect the reduction of the
principal amount evidenced thereby, whereupon the principal amount of such
temporary Global Security shall be reduced for all purposes by the amount to be
exchanged and endorsed.
Section 2.09. MUTILATED, DESTROYED, LOST OR STOLEN DEBT SECURITIES. If
(a) any mutilated Debt Security or any mutilated Coupon with the Coupon Security
to which it appertains (and all unmatured Coupons attached thereto) is
surrendered to the Trustee at its corporate trust office (in the case of
Registered Securities) or at its principal [London] office (in the case of
Bearer Securities) or (b) the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Debt Security or any
Coupon, and there is delivered to the Company and the Trustee such security or
indemnity as may be required by them to save each of them and any paying agent
harmless, and neither the Company nor the Trustee receives notice that such Debt
Security or Coupon has been acquired by a bona fide purchaser, then the Company
shall execute and, upon a Company Order, the Trustee shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Debt Security or in exchange for the Coupon Security to which such
mutilated, destroyed, lost or stolen Coupon appertained, a new Debt Security of
the same series of like tenor, form, terms and principal amount, bearing a
number not contemporaneously Outstanding, and, in the case of a Coupon Security,
with such Coupons attached thereto that neither gain nor loss in interest shall
result from such exchange or substitution. Upon the issuance of any substituted
Debt Security, the Company may require the payment of a sum sufficient to cover
any tax, fee, assessment or other governmental charge that may be imposed in
relation thereto and any other expenses connected therewith. In case any Debt
Security or Coupon which has matured or is about to mature or which has been
called for redemption shall become mutilated or be destroyed, lost or stolen,
the Company may, instead of issuing a substituted Debt Security or Coupon, pay
or authorize the payment of the same (without surrender thereof except in the
case of a mutilated Debt Security or Coupon) if the applicant for such payment
shall furnish the Company and the Trustee with such security or indemnity as
either may require to save it harmless from all risk, however remote, and, in
case of destruction, loss or theft, evidence to the satisfaction of the Company
and the Trustee of the destruction, loss or theft of such Debt Security or
Coupon and of the ownership thereof; provided, however, that payment of
principal of, and premium, if any, and interest on,
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Bearer Securities or Coupons shall, except as otherwise provided in Section
2.12, be payable only at an office or agency located outside the United States.
Every substituted Debt Security of any series, with its Coupons, if
any, issued pursuant to the provisions of this Section 2.09 by virtue of the
fact that any Debt Security or Coupon is destroyed, lost or stolen shall
constitute an original additional contractual obligation of the Company, whether
or not the destroyed, lost or stolen Debt Security or Coupon shall be found at
any time, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Debt Securities of that series and
Coupons, if any, duly issued hereunder. All Debt Securities and Coupons, if any,
shall be held and owned upon the express condition that the foregoing provisions
are exclusive with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Debt Securities or Coupons, and shall preclude any and
all other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.
Section 2.10. CANCELATION OF SURRENDERED DEBT SECURITIES. All Debt
Securities surrendered for payment, redemption, registration of transfer or
exchange and all Coupons surrendered for payment or exchange shall, if
surrendered to the Company or any paying agent or a Registrar, be delivered to
the Trustee for cancellation by it, or if surrendered to the Trustee, shall be
canceled by it, and no Debt Securities or Coupons shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this
Indenture. All canceled Debt Securities and Coupons held by the Trustee shall be
destroyed (subject to the record retention requirements of the Exchange Act) and
certification of their destruction delivered to the Company, unless otherwise
directed. On request of the Company, the Trustee shall deliver to the Company
canceled Debt Securities and Coupons held by the Trustee. If the Company shall
acquire any of the Debt Securities or Coupons, however, such acquisition shall
not operate as a redemption or satisfaction of the indebtedness represented
thereby unless and until the same are delivered or surrendered to the Trustee
for cancellation. The Company may not issue new Debt Securities or Coupons to
replace Debt Securities or Coupons it has redeemed, paid or delivered to the
Trustee for cancellation.
Section 2.11. PROVISIONS OF THE INDENTURE AND DEBT SECURITIES FOR THE
SOLE BENEFIT OF THE PARTIES AND THE HOLDERS. Nothing in this Indenture or in the
Debt Securities or Coupons, expressed or implied, shall give or be construed to
give to any Person, other than the parties hereto, the Holders or any Registrar
or paying agent, any legal or equitable right, remedy or claim under or in
respect of this Indenture, or under any covenant, condition or provision herein
contained; all its covenants, conditions and provisions being for the sole
benefit of the parties hereto, the Holders and any Registrar and paying agents.
Section 2.12. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. (a)
Interest on any Registered Security that is payable and is punctually paid or
duly provided for on any interest payment date shall be paid to the Person in
whose name such Registered Security is registered at the close of business on
the regular record date for such interest notwithstanding the cancellation of
such Registered Security upon any transfer or exchange subsequent to the regular
record date. In case a Coupon Security of any series is surrendered in exchange
for a Registered Security of such series after the close of business (at an
office or agency in a Place of Payment for such series) on any
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regular record date and before the opening of business (at such office or
agency) on the next succeeding interest payment date, such Coupon Security shall
be surrendered without the Coupon relating to such interest payment date and
interest will not be payable on such interest payment date in respect of the
Registered Security issued in exchange for such Coupon Security, but will be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture. Payment of interest on Registered Securities shall
be made at the corporate trust office of the Trustee (except as otherwise
specified pursuant to Section 2.03), or at the option of the Company, by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Debt Security Register or, if provided pursuant to Section 2.03
and in accordance with arrangements satisfactory to the Trustee, at the option
of the Registered Holder by wire transfer to an account designated by the
Registered Holder.
(b) No interest shall be payable with respect to a Bearer Security
or Coupon unless such certification requirements as are specified pursuant to
Section 2.03(h)(iii) are satisfied with respect to such Bearer Security or
Coupon. Interest on any Coupon Security that is payable and is punctually paid
or duly provided for on any interest payment date shall be paid to the Holder of
the Coupon that has matured on such interest payment date upon surrender of such
Coupon on such interest payment date at the principal [London] office of the
Trustee or at such other Place of Payment outside the United States specified
pursuant to Section 2.03.
Interest on any Bearer Security (other than a Coupon Security) that is
payable and is punctually paid or duly provided for on any interest payment date
shall be paid to the Holder of the Bearer Security upon presentation of such
Bearer Security and notation thereon on such interest payment date at the
principal [London] office of the Trustee or at such other Place of Payment
outside the United States specified pursuant to Section 2.03.
Unless otherwise specified pursuant to Section 2.03, at the direction
of the Holder of any Bearer Security or Coupon payable in Dollars, and subject
to applicable laws and regulations, payments in respect of such Bearer Security
or Coupon will be made by check drawn on a bank in New York, New York, or, in
accordance with arrangements satisfactory to the Trustee, by wire transfer to a
Dollar account maintained by such Holder with a bank outside the United States.
If such payment at the offices of all paying agents outside the United States
becomes illegal or is effectively precluded because of the imposition of
exchange controls or similar restrictions on the full payment or receipt of such
amounts in Dollars, then, to the extent permitted by United States tax law, the
Company will appoint an office or agent in the United States at which such
payment may be made. Unless otherwise specified pursuant to Section 2.03, at the
direction of the Holder of any Bearer Security or Coupon payable in a Foreign
Currency, payment on such Bearer Security or Coupon will be made by a check
drawn on a bank outside the United States or, in accordance with arrangements
satisfactory to the Trustee, by wire transfer to an appropriate account
maintained by such Holder outside the United States. Except as provided in this
paragraph, no payment on any Bearer Security or Coupon will be made by mail to
an address in the United States or by transfer to an account in the United
States.
(c) Subject to the foregoing provisions of this Section 2.12 and
Section 2.17, each Debt Security of a particular series delivered under this
Indenture upon registration of transfer of or
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in exchange for or in lieu of any other Debt Security of the same series shall
carry the rights to interest accrued and unpaid, and to accrue, which were
carried by such other Debt Security.
Section 2.13. SECURITIES DENOMINATED IN FOREIGN CURRENCIES. (a) Except
as otherwise specified pursuant to Section 2.03 for Bearer Securities of any
series, payment of the principal of, and premium, if any, and interest on,
Bearer Securities of such series denominated in any Currency will be made in
such Currency.
(b) Except as otherwise specified pursuant to Section 2.03 for
Registered Securities of any series, payment of the principal of, and premium,
if any, and interest on, Registered Securities of such series will be made in
Dollars.
(c) For the purposes of calculating the principal amount of Debt
Securities of any series denominated in a Foreign Currency or in units of two or
more Foreign Currencies (including Euro) for any purpose under this Indenture,
the principal amount of such Debt Securities at any time Outstanding shall be
deemed to be the Dollar Equivalent of such principal amount as of the date of
any such calculation.
In the event any Foreign Currency or currencies or units of two or more
Currencies in which any payment with respect to any series of Debt Securities
may be made ceases to be a freely convertible Currency on United States Currency
markets, for any date thereafter on which payment of principal of, or premium,
if any, or interest on, the Debt Securities of a series is due, the Company
shall select the Currency of payment for use on such date, all as provided in
the Debt Securities of such series. In such event, the Company shall, as
provided in the Debt Securities of such series, notify the Trustee of the
Currency which it has selected to constitute the funds necessary to meet the
Company's obligations on such payment date and of the amount of such Currency to
be paid. Such amount shall be determined as provided in the Debt Securities of
such series. The payment to the Trustee with respect to such payment date shall
be made by the Company solely in the Currency so selected.
Section 2.14. WIRE TRANSFERS. Notwithstanding any other provision to
the contrary in this Indenture, the Company may make any payment of monies
required to be deposited with the Trustee on account of principal of, or
premium, if any, or interest on, the Debt Securities (whether pursuant to
optional or mandatory redemption payments, interest payments or otherwise) by
wire transfer in immediately available funds to an account designated by the
Trustee on or before the date such moneys are to be paid to the Holders of the
Debt Securities in accordance with the terms hereof.
Section 2.15. SECURITIES ISSUABLE IN THE FORM OF A GLOBAL SECURITY. (a)
If the Company shall establish pursuant to Sections 2.01 and 2.03 that the Debt
Securities of a particular series are to be issued in whole or in part in the
form of one or more Global Securities, then the Company shall execute and the
Trustee or its agent shall, in accordance with Section 2.05, authenticate and
deliver, such Global Security or Securities, which (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
the Outstanding Debt Securities of such series to be represented by such Global
Security or Securities, or such portion thereof as the Company shall specify in
an Officer's Certificate, (ii) shall be registered in the name of the Depositary
for such
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Global Security or Securities or its nominee, (iii) shall be delivered by the
Trustee or its agent to the Depositary or pursuant to the Depositary's
instruction and (iv) shall bear a legend substantially to the following effect:
'UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF', or such other legend as may then
be required by the Depositary for such Global Security or Securities.
(b) Notwithstanding any other provision of this Section 2.15 or of
Section 2.07 to the contrary, and subject to the provisions of paragraph (c)
below, unless the terms of a Global Security expressly permit such Global
Security to be exchanged in whole or in part for definitive Debt Securities in
registered form, a Global Security may be transferred, in whole but not in part
and in the manner provided in Section 2.07, only by the Depositary to a nominee
of the Depositary for such Global Security, or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary, or by the Depositary or a
nominee of the Depositary to a successor Depositary for such Global Security
selected or approved by the Company, or to a nominee of such successor
Depositary.
(c) (i) If at any time the Depositary for a Global Security or
Securities notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Security or Securities or if at
any time the Depositary for the Debt Securities for such series shall
no longer be eligible or in good standing under the Exchange Act or
other applicable statute, rule or regulation, the Company shall appoint
a successor Depositary with respect to such Global Security or
Securities. If a successor Depositary for such Global Security or
Securities is not appointed by the Company within 90 days after the
Company receives such notice or becomes aware of such ineligibility,
the Company shall execute, and the Trustee or its agent, upon receipt
of a Company Order for the authentication and delivery of such
individual Debt Securities of such series in exchange for such Global
Security, will authenticate and deliver, individual Debt Securities of
such series of like tenor and terms in definitive form in an aggregate
principal amount equal to the principal amount of the Global Security
in exchange for such Global Security or Securities.
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(ii) The Company may at any time and in its sole discretion
determine that the Debt Securities of any series or portion thereof
issued or issuable in the form of one or more Global Securities shall
no longer be represented by such Global Security or Securities. In such
event the Company will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of individual Debt
Securities of such series in exchange in whole or in part for such
Global Security, will authenticate and deliver individual Debt
Securities of such series of like tenor and terms in definitive form in
an aggregate principal amount equal to the principal amount of such
series or portion thereof in exchange for such Global Security or
Securities.
(iii) If specified by the Company pursuant to Sections 2.01
and 2.03 with respect to Debt Securities issued or issuable in the form
of a Global Security, the Depositary for such Global Security may
surrender such Global Security in exchange in whole or in part for
individual Debt Securities of such series of like tenor and terms in
definitive form on such terms as are acceptable to the Company, the
Trustee and such Depositary. Thereupon the Company shall execute, and
the Trustee or its agent upon receipt of a Company Order for the
authentication and delivery of definitive Debt Securities of such
series shall authenticate and deliver, without service charge, (A) to
each Person specified by such Depositary a new Debt Security or
Securities of the same series of like tenor and terms and 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 Global Security; and (B) to such Depositary a new
Global Security of like tenor and terms and in an authorized
denomination equal to the difference, if any, between the principal
amount of the surrendered Global Security and the aggregate principal
amount of Debt Securities delivered to Holders thereof.
(iv) In any exchange provided for in any of the preceding
three paragraphs, the Company will execute and the Trustee or its agent
will authenticate and deliver individual Debt Securities. In case a
Coupon Security of any series is surrendered in exchange for a
Registered Security of such series after the close of business (at an
office or agency in a Place of Payment for such series) on any special
record date and before the opening of business (at such office or
agency) on the related proposed date of payment of Defaulted Interest,
such Coupon Security shall be surrendered without the Coupon relating
to such proposed date of payment and Defaulted Interest will not be
payable on such proposed date of payment in respect of the Registered
Security issued in exchange for such Coupon Security, but will be
payable only to the Holder of such Coupon when due in accordance with
the provisions of this Indenture. Upon the exchange of the entire
principal amount of a Global Security for individual Debt Securities,
such Global Security shall be canceled by the Trustee or its agent.
Except as provided in the preceding paragraph, Registered Securities
issued in exchange for a Global Security pursuant to this Section 2.15
shall be registered in such names and in such authorized denominations
as the Depositary for such Global Security, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct
the Trustee or the Registrar. The Trustee or the Registrar shall
deliver such Registered Securities to the Persons in whose names such
Registered Securities are so registered.
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(v) Payments in respect of the principal of and interest on
any Debt Securities registered in the name of the Depositary or its
nominee will be payable to the Depositary or such nominee in its
capacity as the registered owner of such Global Security. The Company
and the Trustee may treat the Person in whose name the Debt Securities,
including the Global Security, are registered as the owner thereof for
the purpose of receiving such payments and for any and all other
purposes whatsoever. None of the Company, the Trustee, any Registrar,
the paying agent or any agent of the Company or the Trustee will have
any responsibility or liability for (A) any aspect of the records
relating to or payments made on account of the beneficial ownership
interests of the Global Security by the Depositary or its nominee or
any of the Depositary's direct or indirect participants, or for
maintaining, supervising or reviewing any records of the Depositary,
its nominee or any of its direct or indirect participants relating to
the beneficial ownership interests of the Global Security, (B) the
payments to the beneficial owners of the Global Security of amounts
paid to the Depositary or its nominee, or (C) any other matter relating
to the actions and practices of the Depositary, its nominee or any of
its direct or indirect participants. None of the Company, the Trustee
or any such agent will be liable for any delay by the Depositary, its
nominee, or any of its direct or indirect participants in identifying
the beneficial owners of the Debt Securities, and the Company and the
Trustee may conclusively rely on, and will be protected in relying on,
instructions from the Depositary or its nominee for all purposes
(including with respect to the registration and delivery, and the
respective principal amounts, of the Debt Securities to be issued).
The Trustee shall deliver individual Bearer Securities issued in
exchange for a Global Security pursuant to this Section 2.15 to the Persons and
in such authorized denominations as the Depositary for such Global Security,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee; provided, however, that individual Bearer Securities
shall be delivered in exchange for a Global Security only in accordance with the
procedures as may be specified pursuant to Section 2.03.
Notwithstanding the foregoing, the exchange of Bearer Securities for
Registered Securities will be subject to the provisions of United States income
tax laws and regulations applicable to debt Securities in effect at the time of
such exchange.
Section 2.16. MEDIUM TERM SECURITIES. Notwithstanding any contrary
provision herein, if all Debt Securities of a series are not to be originally
issued at one time, it shall not be necessary for the Company to deliver to the
Trustee an Officers' Certificate, resolutions of the Board of Directors,
supplemental Indenture, Opinion of Counsel or written order or any other
document otherwise required pursuant to Section 2.01, 2.03, 2.05 or 13.05 at or
prior to the time of authentication of each Debt Security of such series if such
documents are delivered to the Trustee or its agent at or prior to the
authentication upon original issuance of the first such Debt Security of such
series to be issued; provided, that any subsequent request by the Company to the
Trustee to authenticate Debt Securities of such series upon original issuance
shall constitute a representation and warranty by the Company that, as of the
date of such request, the statements made in the Officers' Certificate delivered
pursuant to Section 2.05 or 13.05 shall be true and correct as if made on such
date and that the Opinion of Counsel delivered at or prior to such time of
authentication of
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an original issuance of Debt Securities shall specifically state that it shall
relate to all subsequent issuances of Debt Securities of such series that are
identical to the Debt Securities issued in the first issuance of Debt Securities
of such series.
A Company Order delivered by the Company to the Trustee in the
circumstances set forth in the preceding paragraph, may provide that Debt
Securities which are the subject thereof will be authenticated and delivered by
the Trustee or its agent on original issue from time to time upon the telephonic
or written order of Persons designated in such written order (any such
telephonic instructions to be promptly confirmed in writing by such Person) and
that such Persons are authorized to determine, consistent with the Officers'
Certificate, supplemental Indenture or resolution of the Board of Directors
relating to such written order, such terms and conditions of such Debt
Securities as are specified in such Officers' Certificate, supplemental
Indenture or such resolution.
Section 2.17. DEFAULTED INTEREST. (a) Any interest on any Debt Security
of a particular series which is payable, but is not punctually paid or duly
provided for, on the dates and in the manner provided in the Debt Securities of
such series and in this Indenture (herein called "Defaulted Interest") shall, if
such Debt Security is a Registered Security, forthwith cease to be payable to
the Registered Holder thereof on the relevant record date by virtue of having
been such Registered Holder, and such Defaulted Interest (plus interest on such
Defaulted Interest to the extent lawful) may be paid by the Company, at its
election in each case, as provided in clause (i) or (ii) below:
(i) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Registered Securities of
such series 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 promptly notify the Trustee
in writing of the amount of Defaulted Interest proposed to be paid on
each such Registered 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 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 pre-paid, to
each Holder thereof at its address as it appears in the Security
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 Registered
Securities of such series are registered at the close of business on
such special record date. In case a Coupon Security of any such series
is surrendered in exchange for a Registered Security of such series
after the close of business
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(at an office or agency in a Place of Payment for such series) on any
special record date and before the opening of business (at such office
or agency) on the related proposed date of payment of Defaulted
Interest, such Coupon Security shall be surrendered without the Coupon
relating to such proposed date of payment and Defaulted Interest will
not be payable on such proposed date of payment in respect of the
Registered Security issued in exchange for such Coupon Security, but
will be payable only to the Holder of such Coupon when due in
accordance with the provisions of this Indenture.
(ii) The Company may make payment of any Defaulted Interest on
the Registered Securities of such series in any other lawful manner not
inconsistent with the requirements of any securities exchange on which
the Registered Securities of such series may be listed, and upon such
notice as may be required by such exchange, if, after notice given by
the Company to the Trustee of the proposed payment pursuant to this
clause, such manner of payment shall be deemed practicable by the
Trustee.
(b) Any Defaulted Interest payable in respect of Bearer Securities
of any series shall be payable pursuant to such procedures as may be
satisfactory to the Trustee in such manner that there is no discrimination
between the Holders of Registered Securities (if any) and Bearer Securities of
such series, and notice of the payment date therefor shall be given by the
Trustee, in the name and at the expense of the Company, in the manner provided
in Section 13.03 not more than 25 days and not less than 20 days prior to the
date of the proposed payment.
Section 2.18. JUDGMENTS. The Company may provide pursuant to Section
2.03 for Debt Securities of any series that (a) the obligation, if any, of the
Company to pay the principal of, and premium, if any, and interest on, the Debt
Securities of any series in a Foreign Currency or Dollars (the "Designated
Currency") as may be specified pursuant to Section 2.03 is of the essence and
agrees that, to the fullest extent possible under applicable law, judgments in
respect of Debt Securities of such series shall be given in the Designated
Currency; (b) the obligation of the Company to make payments in the Designated
Currency of the principal of, and premium, if any, and interest on, such Debt
Securities shall, notwithstanding any payment in any other Currency (whether
pursuant to a judgment or otherwise), be discharged only to the extent of the
amount in the Designated Currency that the Holder receiving such payment may, in
accordance with normal banking procedures, purchase with the sum paid in such
other Currency (after any premium and cost of exchange) on the business day in
the country of issue of the Designated Currency or in the international banking
community (in the case of a composite currency) immediately following the day on
which such Holder receives such payment; (c) if the amount in the Designated
Currency that may be so purchased for any reason falls short of the amount
originally due, the Company shall pay such additional amounts as may be
necessary to compensate for such shortfall; and (d) any obligation of the
Company not discharged by such payment shall be due as a separate and
independent obligation and, until discharged as provided herein, shall continue
in full force and effect.
Section 2.19. CUSIP NUMBERS. The Company in issuing the Securities may
use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall
use "CUSIP" numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the
accuracy of such numbers either as printed on the Securities or as
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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 numbers.
The Company will promptly notify the Trustee of any change in the "CUSIP"
numbers.
ARTICLE III
REDEMPTION OF DEBT SECURITIES
Section 3.01. APPLICABILITY OF ARTICLE. The provisions of this Article
shall be applicable to the Debt Securities of any series which are redeemable
before their Stated Maturity except as otherwise specified as contemplated by
Section 2.03 for Debt Securities of such series.
Section 3.02. TAX REDEMPTION; SPECIAL TAX REDEMPTION. (a) Unless
otherwise specified pursuant to Section 2.03, Bearer Securities of any series
may be redeemed at the option of the Company in whole, but not in part, at any
time, on giving not less than 30 or more than 60 days' notice in accordance with
Section 3.03 (which notice shall be irrevocable), at the redemption price
thereof (calculated without premium), if the Company has or will become
obligated to pay additional interest on such Bearer Securities pursuant to
Section 4.06 as a result of any change in, or amendment to, the laws (or any
regulations or rulings promulgated thereunder) of the United States or any
political subdivision or taxing authority thereof or therein, or any change in
the application or official interpretation of such laws, regulations or rulings,
which change or amendment becomes effective on or after the date on which any
Person (including any Person acting as underwriter, broker or dealer) agrees to
purchase any of such Bearer Securities pursuant to their original issuance, and
such obligation cannot be avoided by the Company taking reasonable measures
available to it; provided, that no such notice of redemption shall be given
earlier than 90 days prior to the earliest date on which the Company would be
obligated to pay such additional interest were a payment in respect of the
Bearer Securities of that series then due. Prior to the publication of any
notice of redemption pursuant to this Section 3.02(a), the Company shall deliver
to the Trustee (i) an Officers' Certificate stating that the Company is entitled
to effect such redemption and setting forth a statement of facts showing that
the conditions precedent to the right of the Company so to redeem have occurred
and (ii) an Opinion of Counsel to the effect that the Company has or will become
obligated to pay such additional interest as a result of such change or
amendment.
(b) Unless otherwise specified pursuant to Section 2.03, if the
Company shall determine that any payment made outside the United States by the
Company or any of its paying agents in respect of any Bearer Security or Coupon
would, under any present or future laws or regulations of the United States, be
subject to any certification, documentation, information or other reporting
requirement of any kind, the effect of which requirement is the disclosure to
the Company, any paying agent or any governmental authority of the nationality,
residence or identity of a beneficial owner of such Bearer Security or Coupon
that is a United States Alien (other than such a requirement (i) that would not
be applicable to a payment made by the Company or any one of its paying agents
(A) directly to the beneficial owner or (B) to a custodian, nominee or other
agent of the beneficial owner, or (ii) that can be satisfied by such custodian,
nominee or other agent certifying
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to the effect that the beneficial owner is a United States Alien; provided,
that, in any case referred to in clause (i)(B) or (ii), payment by the
custodian, nominee or agent to the beneficial owner is not otherwise subject to
any such requirement), then the Company shall elect either (A) to redeem such
Bearer Security or Coupon in whole, but not in part, at the redemption price
thereof (calculated without premium) or (B) if the conditions of the next
succeeding paragraph are satisfied, to pay the additional interest specified in
such paragraph. The Company shall make such determination as soon as practicable
and publish prompt notice thereof (the "Determination Notice"), stating the
effective date of such certification, documentation, information or other
reporting requirement, whether the Company elects to redeem the Bearer Security
or Coupon or to pay the additional interest specified in the next succeeding
paragraph and (if applicable) the last date by which the redemption of the
Bearer Security or Coupon must take place, as provided in the next succeeding
sentence. If any Bearer Security or Coupon is to be redeemed pursuant to this
paragraph, the redemption shall take place on such date, not later than one year
after the publication of the Determination Notice, as the Company shall specify
by notice given to the Trustee at least 60 days before the redemption date.
Notice of such redemption shall be given by the Company to the Holders of the
Bearer Security or Coupon not more than 60 days or less than 30 days prior to
the redemption date. Notwithstanding the foregoing, the Company shall not so
redeem the Bearer Security or Coupon if the Company shall subsequently
determine, not less than 30 days prior to the redemption date, that subsequent
payments on the Bearer Security or Coupon would not be subject to any such
certification, documentation, information or other reporting requirement, in
which case the Company shall publish prompt notice of such subsequent
determination, and any earlier redemption notice given pursuant to this
paragraph shall be revoked and of no further effect. Prior to the publication of
any Determination Notice pursuant to this paragraph, the Company shall deliver
to the Trustee (1) an Officers' Certificate stating that the Company is entitled
to make such determination and setting forth a statement of facts showing that
the conditions precedent to the obligation of the Company to redeem the Bearer
Security or Coupon or to pay the additional interest specified in the next
succeeding paragraph have occurred and (2) an Opinion of Counsel to the effect
that such conditions have occurred.
If and so long as the certification, documentation, information or
other reporting requirement referred to in the preceding paragraph would be
fully satisfied by payment of a backup withholding tax or similar charge, the
Company may elect to pay as additional interest such amounts as may be necessary
so that every net payment made outside the United States following the effective
date of such requirement by the Company or any of its paying agents in respect
of any Bearer Security or Coupon of which the beneficial owner is a United
States Alien (but without any requirement that the nationality, residence or
identity of such beneficial owner be disclosed to the Company, any paying agent
or any governmental authority), after deduction or withholding for or on account
of such backup withholding tax or similar charge that (x) would not be
applicable in the circumstances referred to in the parenthetical clause of the
first sentence of the preceding paragraph or (y) is imposed as a result of
presentation of any such Bearer Security or Coupon for payment more than 15 days
after the date on which such payment became due and payable or on which payment
thereof was duly provided for, whichever occurred later), will not be less than
the amount provided in any such Bearer Security or Coupon to be then due and
payable. If the Company elects to pay additional interest pursuant to this
paragraph, the Company shall have the right to redeem the Bearer Security or
Coupon at any time in whole, but not in part, at the redemption price thereof
(calculated without premium), subject to the provisions of the last three
sentences of the immediately preceding
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paragraph. If the Company elects to pay additional interest pursuant to this
paragraph and the condition specified in the first sentence of this paragraph
should no longer be satisfied, then the Company shall redeem the Bearer Security
or Coupon in whole, but not in part, at the redemption price thereof (calculated
without premium), subject to the provisions of the last three sentences of the
immediately preceding paragraph. Any redemption payments made by the Company
pursuant to the two immediately preceding sentences shall be subject to the
continuing obligation of the Company to pay additional interest pursuant to this
paragraph. If the Company elects to, or is required to, redeem the Bearer
Security or Coupon pursuant to this paragraph, it shall publish prompt notice
thereof. If the Bearer Security or Coupon is to be redeemed pursuant to this
paragraph, the redemption shall take place on such date, not later than one year
after publication of the notice of redemption, as the Company shall specify by
notice to the Trustee at least 60 days prior to the redemption date.
Section 3.03. NOTICE OF REDEMPTION; SELECTION OF DEBT SECURITIES. In
case the Company shall desire to exercise the right to redeem all or, as the
case may be, any part of the Debt Securities of any series in accordance with
their terms, a resolution of the Board of Directors of the Company or a
supplemental Indenture, the Company shall fix a date for redemption and shall
give notice of such redemption at least 30 and not more than 60 days prior to
the date fixed for redemption to the Holders of Debt Securities of such series
so to be redeemed as a whole or in part, in the manner provided in Section
13.03. The notice if given in the manner herein provided shall be conclusively
presumed to have been duly given, whether or not the Holder receives such
notice. In any case, failure to give such notice or any defect in the notice to
the Holder of any Debt Security of a series designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption
of any other Debt Security of such series.
Each such notice of redemption shall specify
(a) the date fixed for redemption,
(b) the redemption price at which Debt Securities of such series are
to be redeemed,
(c) the Place or Places of Payment that payment will be made upon
presentation and surrender of such Debt Securities,
(d) that the redemption is for a sinking fund payment (if
applicable),
(e) that, unless otherwise specified in such notice, Coupon
Securities of any series, if any, surrendered for redemption must be accompanied
by all Coupons maturing subsequent to the date fixed for redemption, failing
which the amount of any such missing Coupon or Coupons will be deducted from the
redemption price,
(f) if the Bearer Securities of any series are to be redeemed and
any Registered Securities of such series are not to be redeemed, and if such
Bearer Securities may be exchanged for
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Registered Securities not subject to redemption on the applicable redemption
date pursuant to Section 2.15(c) or otherwise, the last date on which such
exchanges may be made,
(g) that, if the Company defaults in making such redemption payment
or if the Debt Securities of that series are subordinated pursuant to the terms
of Article XII, the paying agent is prohibited from making such payment pursuant
to the terms of this Indenture,
(h) that on and after said date any interest thereon or on the
portions thereof to be redeemed will cease to accrue,
(i) that in the case of Original Issue Discount Securities original
issue discount accrued after the date fixed for redemption will cease to accrue,
the terms of the Debt Securities of that series pursuant to which the Debt
Securities of that series are being redeemed, and
(j) that no representation is made as to the correctness or accuracy
of the CUSIP number, if any, listed in such notice or printed on the Debt
Securities of that series.
If less than all the Debt Securities of a series are to be redeemed the
notice of redemption shall specify the CUSIP numbers of the Debt Securities of
that series to be redeemed. In case any Debt Security of a series is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Debt Security, a new Debt
Security or Debt Securities of that series in principal amount equal to the
unredeemed portion thereof, and in the case of a Bearer Security with
appropriate Coupons, if any, will be issued.
At least 60 days before the redemption date unless the Trustee consents
to a shorter period, the Company shall give notice to the Trustee of the
redemption date, the principal amount of Debt Securities to be redeemed and the
series and terms of the Debt Securities pursuant to which such redemption will
occur. Such notice shall be accompanied by an Officers' Certificate and an
Opinion of Counsel from the Company to the effect that such redemption will
comply with the conditions herein. If fewer than all the Debt Securities of a
series are to be redeemed, the record date relating to such redemption shall be
selected by the Company and given to the Trustee, which record date shall be not
less than 15 days after the date of notice to the Trustee.
On or prior to the redemption date for any Registered Securities, 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) an
amount of money in the Currency in which such Debt Securities are denominated
(except as provided pursuant to Section 2.03) sufficient to pay the redemption
price of such Registered Securities or any portions thereof that are to be
redeemed on that date. In the case of any redemption pertaining to Bearer
Securities or Coupon Securities, the Company shall, no later than the business
day prior to such redemption date, deposit with the Trustee or with a paying
agent (other than the Company) an amount of money in the Currency in which such
Debt Securities are denominated (except as provided pursuant to Section 2.03)
sufficient to pay the redemption price of such Bearer or Coupon Securities or
any portion thereof that are to be redeemed on the redemption date.
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If less than all the Debt Securities of like tenor and terms of a
series are to be redeemed (other than pursuant to mandatory sinking fund
redemptions) the Trustee shall select, on a pro rata basis, by lot or by such
other method as in its sole discretion it shall deem appropriate and fair, the
Debt Securities of that series or portions thereof (in multiples of $1,000) to
be redeemed. In any case where more than one Registered Security of such series
is registered in the same name, the Trustee in its discretion may treat the
aggregate principal amount so registered as if it were represented by one
Registered Security of such series. The Trustee shall promptly notify the
Company in writing of the Debt Securities selected for redemption and, in the
case of any Debt Securities selected for partial redemption, the principal
amount thereof to be redeemed. If any Debt Security called for redemption shall
not be so paid upon surrender thereof on such redemption date, the principal,
premium, if any, and interest shall bear interest until paid from the redemption
date at the rate borne by the Debt Securities of that series. If less than all
the Debt Securities of unlike tenor and terms of a series are to be redeemed,
the particular Debt Securities to be redeemed shall be selected by the Company.
Provisions of this Indenture that apply to Debt Securities called for redemption
also apply to portions of Debt Securities called for redemption.
Section 3.04. PAYMENT OF DEBT SECURITIES CALLED FOR REDEMPTION. If
notice of redemption has been given as provided in Section 3.03, the Debt
Securities or portions of Debt Securities of the series with respect to which
such notice has been given shall become due and payable on the date and at the
Place or Places of Payment stated in such notice at the applicable redemption
price, together with any interest accrued to the date fixed for redemption, and
on and after said date (unless the Company shall default in the payment of such
Debt Securities at the applicable redemption price, together with any interest
accrued to said date) any interest on the Debt Securities or portions of Debt
Securities of any series so called for redemption shall cease to accrue, any
original issue discount in the case of Original Issue Discount Securities shall
cease to accrue and any Coupons for such interest appertaining to any Coupon
Securities to be redeemed, except to the extent described below, shall be void.
On presentation and surrender of such Debt Securities at the Place or Places of
Payment in said notice specified, the said Debt Securities or the specified
portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with any interest accrued thereon to the date fixed
for redemption.
If any Coupon Security surrendered for redemption shall not be
accompanied by all Coupons appertaining thereto maturing on or after the
applicable redemption date, the redemption price for such Coupon Security may be
reduced by an amount equal to the face amount of all such missing Coupons. If
thereafter the Holder of such Coupon shall surrender to any paying agent outside
the United States any such missing Coupon in respect of which a deduction shall
have been made from the redemption price, such Holder shall be entitled to
receive the amount so deducted. The surrender of such missing Coupon or Coupons
may be waived by the Company and the Trustee, if there be furnished to them such
security or indemnity as they may require to save each of them and any paying
agent harmless.
Any Debt Security that is to be redeemed only in part shall be
surrendered at the corporate trust office or such other office or agency of the
Company as is specified pursuant to Section 2.03 (in the case of Registered
Securities) and at the principal London office of the Trustee or such other
office or agency of the Company outside the United States as is specified
pursuant to Section 2.03
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(in the case of Bearer Securities) with, if the Company, the Registrar or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company, the Registrar and the Trustee duly executed
by, the Holder thereof or his attorney duly authorized in writing, and the
Company shall execute, and the Trustee shall authenticate and deliver to the
Holder of such Debt Security without service charge, a new Debt Security or Debt
Securities of the same series, of like tenor and form, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Debt Security
so surrendered, and, in the case of a Coupon Security, with appropriate Coupons
attached; except that if a Global Security is so surrendered, the Company shall
execute, and the Trustee shall authenticate and deliver to the Depositary for
such Global Security, without service charge, a new Global Security in a
denomination equal to and in exchange for the unredeemed portion of the
principal of the Global Security so surrendered. In the case of a Debt Security
providing appropriate space for such notation, at the option of the Holder
thereof, the Trustee, in lieu of delivering a new Debt Security or Debt
Securities as aforesaid, may make a notation on such Debt Security of the
payment of the redeemed portion thereof.
Section 3.05. MANDATORY AND OPTIONAL SINKING FUNDS. The minimum amount
of any sinking fund payment provided for by the terms of Debt Securities of any
series, resolution of the Board of Directors or a supplemental Indenture 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 Debt Securities of
any series, resolution of the Board of Directors or a supplemental Indenture is
herein referred to as an "optional sinking fund payment".
Unless otherwise specified in the terms of Debt Securities of any
series or the related resolution or supplemental indenture, in lieu of making
all or any part of any mandatory sinking fund payment with respect to any Debt
Securities of such series in cash, the Company may at its option (a) deliver to
the Trustee Debt Securities of that series (together with the unmatured Coupons,
if any, appertaining thereto) theretofore purchased or otherwise acquired by the
Company or (b) receive credit for the principal amount of Debt Securities of
that series which have been redeemed either at the election of the Company
pursuant to the terms of such Debt Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such Debt
Securities, resolution or supplemental Indenture; provided, that such Debt
Securities have not been previously so credited. Such Debt Securities shall be
received and credited for such purpose by the Trustee at the redemption price
specified in such Debt Securities, resolution or supplemental Indenture for
redemption through operation of the sinking fund and the amount of such
mandatory sinking fund payment shall be reduced accordingly.
Section 3.06. REDEMPTION OF DEBT SECURITIES FOR SINKING FUND. Not less
than 60 days prior to each sinking fund payment date for any series of Debt
Securities, the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, any resolution or supplemental Indenture,
the portion thereof, if any, which is to be satisfied by payment of cash in the
Currency in which the Debt Securities of such series are denominated (except as
provided pursuant to Section 2.03) and the portion thereof, if any, which is to
be satisfied by delivering and crediting Debt Securities of that series pursuant
to this Section 3.06 (which Debt Securities, if not previously redeemed, will
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accompany such certificate) and whether the Company intends to exercise its
right to make any permitted optional sinking fund payment with respect to such
series. Such certificate shall also state that no Event of Default has occurred
and is continuing with respect to such series. Such certificate shall be
irrevocable and upon its delivery the Company shall be obligated to make the
cash payment or payments therein referred to, if any, on or before the next
succeeding sinking fund payment date. Failure of the Company to deliver such
certificate (or to deliver the Debt Securities and Coupons, if any, specified in
this paragraph) shall not constitute a Default, but such failure shall require
that the sinking fund payment due on the next succeeding sinking fund payment
date for that series shall be paid entirely in cash and shall be sufficient to
redeem the principal amount of such Debt Securities subject to a mandatory
sinking fund payment without the option to deliver or credit Debt Securities as
provided in this Section 3.06 and without the right to make any optional sinking
fund payment, if any, with respect to such series.
Any sinking fund payment or payments (mandatory or optional) made in
cash plus any unused balance of any preceding sinking fund payments made in cash
which shall equal or exceed $100,000 (or a lesser sum if the Company shall so
request) with respect to the Debt Securities of any particular series shall be
applied by the Trustee on the sinking fund payment date on which such payment is
made (or, if such payment is made before a sinking fund payment date, on the
sinking fund payment date following the date of such payment) to the redemption
of such Debt Securities at the Redemption Price specified in such Debt
Securities, resolution or supplemental Indenture for operation of the sinking
fund together with any accrued interest to the date fixed for redemption. Any
sinking fund moneys not so applied or allocated by the Trustee to the redemption
of Debt Securities shall be added to the next cash sinking fund payment received
by the Trustee for such series and, together with such payment, shall be applied
in accordance with the provisions of this Section 3.06. Any and all sinking fund
moneys with respect to the Debt Securities of any particular series held by the
Trustee on the last sinking fund payment date with respect to Debt Securities of
such series and not held for the payment or redemption of particular Debt
Securities shall be applied by the Trustee, together with other moneys, if
necessary, to be deposited sufficient for the purpose, to the payment of the
principal of the Debt Securities of that series at its Stated Maturity.
The Trustee shall select the Debt Securities to be redeemed upon such
sinking fund payment date in the manner specified in the last paragraph of
Section 3.03 and the Company shall cause notice of the redemption thereof to be
given in the manner provided in Section 3.03 except that the notice of
redemption shall also state that the Debt Securities are being redeemed by
operation of the sinking fund. Such notice having been duly given, the
redemption of such Debt Securities shall be made upon the terms and in the
manner stated in Section 3.04.
At least one business day before each sinking fund payment date, the
Company shall pay to the Trustee (or, if the Company is acting as its own paying
agent, the Company shall segregate and hold in trust) in cash a sum in the
Currency in which the Debt Securities of such series are denominated (except as
provided pursuant to Section 2.03) equal to any interest accrued to the date
fixed for redemption of Debt Securities or portions thereof to be redeemed on
such sinking fund payment date pursuant to this Section 3.06.
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The Trustee shall not redeem any Debt Securities of a series with
sinking fund moneys or mail any notice of redemption of such Debt Securities by
operation of the sinking fund for such series during the continuance of a
Default in payment of interest on such Debt Securities or of any Event of
Default (other than an Event of Default occurring as a consequence of this
paragraph) with respect to such Debt Securities, except that if the notice of
redemption of any such Debt Securities shall theretofore have been mailed in
accordance with the provisions hereof, the Trustee shall redeem such Debt
Securities if cash sufficient for that purpose shall be deposited with the
Trustee for that purpose in accordance with the terms of this Article III.
Except as aforesaid, any moneys in the sinking fund for such series at the time
when any such Default or Event of Default shall occur and any moneys thereafter
paid into such sinking fund shall, during the continuance of such Default or
Event of Default, be held as security for the payment of such Debt Securities;
provided, however, that in case such Event of Default or Default shall have been
cured or waived as provided herein, such moneys shall thereafter be applied on
the next sinking fund payment date for such Debt Securities on which such moneys
may be applied pursuant to the provisions of this Section 3.06.
ARTICLE IV
PARTICULAR COVENANTS OF THE COMPANY
Section 4.01. PAYMENT OF PRINCIPAL OF, AND PREMIUM, IF ANY, AND
INTEREST ON, DEBT SECURITIES. The Company, for the benefit of each series of
Debt Securities, will duly and punctually pay or cause to be paid the principal
of, and premium, if any, and interest on, each of the Debt Securities and pay
any Coupons at the place, at the respective times and in the manner provided
herein, in the Debt Securities and in the Coupons. Each installment of interest
on the Debt Securities may be paid by mailing checks for such interest payable
to the Person entitled thereto pursuant to Section 2.07(a) to the address of
such Person as it appears on the Debt Security Register or by a wire transfer as
provided in Section 2.12. Any interest due on Coupon Securities on or before the
Stated Maturity of the related Debt Security, other than additional interest, if
any, payable as provided in Section 4.06 in respect of principal of, or premium,
if any, on such a Debt Security, shall be payable only upon presentation and
surrender of the several Coupons for such interest installments as are evidenced
thereby as they severally mature.
Principal, premium and interest of Debt Securities of any series shall
be considered paid on the date due if on such date the Trustee or any paying
agent holds in accordance with this Indenture money sufficient to pay in the
Currency in which the Debt Securities of such series are denominated (except as
provided pursuant to Section 2.03) all principal, premium and interest then due
and, in the case of Debt Securities subordinated pursuant to the terms of
Article XII, the Trustee or such paying agent, as the case may be, is not
prohibited from paying such money to the Holders on that date pursuant to the
terms of this Indenture.
The Company shall pay interest on overdue principal at the rate
specified therefor in the Debt Securities and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.
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Section 4.02. MAINTENANCE OF OFFICES OR AGENCIES FOR REGISTRATION OF
TRANSFER, EXCHANGE AND PAYMENT OF DEBT SECURITIES. The Company will maintain in
each Place of Payment for any series of Debt Securities and Coupons, if any, an
office or agency where Debt Securities and Coupons of such series (but, except
as otherwise provided in Section 2.12, unless such Place of Payment is located
outside the United States, not Bearer Securities or Coupons) may be presented or
surrendered for payment, where Debt Securities of such series may be surrendered
for transfer or exchange and where notices and demands to or upon the Company in
respect of the Debt Securities and Coupons of such series and this Indenture may
be served. So long as any Bearer Securities of any series remain outstanding,
the Company will maintain for such purposes one or more offices or agencies
outside the United States in such city or cities specified pursuant to Section
2.03 and, if any Bearer Securities are listed on a securities exchange that
requires an office or agency for the payment of principal of, and premium, if
any, or interest on, such Bearer Securities in a location other than the
location of an office or agency specified pursuant to Section 2.03, the Company
will maintain for such purposes an office or agency in such location so long as
any Bearer Securities are listed on such securities exchange and such exchange
so requires. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of 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 (in the case of Registered Securities) and at the
principal London office of the Trustee (in the case of Bearer Securities), and
the Company hereby appoints the Trustee as its agent to receive all
presentations, surrenders, notices and demands.
The Company may also from time to time designate different or
additional offices or agencies to be maintained for such purposes (in or outside
of such Place of Payment), and may from time to time rescind any such
designation; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligations described in the preceding
paragraph. The Company will give prompt written notice to the Trustee of any
such additional designation or rescission of designation and any change in the
location of any such different or additional office or agency.
Section 4.03. APPOINTMENT TO FILL A VACANCY IN THE OFFICE OF TRUSTEE.
The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so
that there shall at all times be a Trustee hereunder with respect to each series
of Debt Securities.
Section 4.04. DUTIES OF PAYING AGENTS, ETC. (a) The Company shall cause
each paying agent, if any, other than the Trustee, to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject
to the provisions of this Section 4.04,
(i) that it will hold all sums held by it as such agent for
the payment of the principal of, and premium, if any, or interest on,
the Debt Securities of any series and the payment of any related
Coupons (whether such sums have been paid to it by the Company or by
any other obligor on the Debt Securities or Coupons of such series) in
trust for the benefit of the Holders of the Debt Securities and Coupons
of such series;
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(ii) that it will give the Trustee notice of any failure by
the Company (or by any other obligor on the Debt Securities or Coupons
of such series) to make any payment of the principal of, and premium,
if any, or interest on, the Debt Securities of such series or any
payment on any related Coupons when the same shall be due and payable;
and
(iii) that it will at any time during the continuance of an
Event of Default, upon the written request of the Trustee, forthwith
pay to the Trustee all sums so held by it as such agent.
(b) If the Company shall act as its own paying agent, it will, on or
before each due date of the principal of, and premium, if any, or interest on,
the Debt Securities and Coupons, if any, of any series, set aside, segregate and
hold in trust for the benefit of the Holders of the Debt Securities and Coupons
of such series a sum sufficient to pay such principal, premium, if any, or
interest so becoming due. The Company will promptly notify the Trustee of any
failure by the Company to take such action or the failure by any other obligor
on such Debt Securities or Coupons to make any payment of the principal of, and
premium, if any, or interest on, such Debt Securities or Coupons when the same
shall be due and payable.
(c) Anything in this Section 4.04 to the contrary notwithstanding,
the Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by it or any paying agent, as required by
this Section 4.04, 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.
(d) Whenever the Company shall have one or more paying agents with
respect to any series of Debt Securities and Coupons, it will, prior to each due
date of the principal of, and premium, if any, or interest on, any Debt
Securities of such series, deposit with any such paying agent a sum sufficient
to pay the principal, premium or interest so becoming due, such sum to be held
in trust for the benefit of the Persons entitled thereto, and (unless any such
paying agent is the Trustee) the Company will promptly notify the Trustee of its
action or failure so to act.
(e) Anything in this Section 4.04 to the contrary notwithstanding,
the agreement to hold sums in trust as provided in this Section 4.04 is subject
to the provisions of Section 11.05.
Section 4.05. STATEMENT BY OFFICERS AS TO DEFAULT. The Company will
deliver to the Trustee, on or before a date not more than four months after the
end of each fiscal year of the Company (currently on a calendar year basis)
ending after the date hereof, an Officers' Certificate stating, as to each
officer signing such certificate, that (a) in the course of his performance of
his duties as an officer of the Company he would normally have knowledge of any
Default, (b) whether or not to the best of his knowledge any Default occurred
during such year and (c) if to the best of his knowledge the Company is in
Default, specifying all such Defaults, their status and what action the Company
is taking or proposes to take with respect thereto. The Company also shall
comply with Section 314(a)(4) of the Trust Indenture Act.
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Section 4.06. PAYMENT OF ADDITIONAL INTEREST. Unless otherwise provided
pursuant to Section 2.03, the provisions of this Section 4.06 shall be
applicable to Bearer Securities of any series.
The Company will, subject to the exceptions and limitations set forth
below, pay as additional interest to the Holder of any Bearer Security or Coupon
that is a United States Alien such amounts as may be necessary so that every net
payment on such Bearer Security or Coupon, after deduction or withholding for or
on account of any present or future tax, assessment or other governmental charge
imposed upon or as a result of such payment by the United States (or any
political subdivision or taxing authority thereof or therein), will not be less
than the amount provided in such Bearer Security or Coupon to be then due and
payable. However, the Company will not be required to make any such payment of
additional interest for or on account of:
(a) any tax, fee, assessment or other governmental charge that
would not have been imposed but for (i) the existence of any present or former
connection between such Holder (or between a fiduciary, settlor or beneficiary
of, or a Person holding a power over, such Holder, if such Holder is an estate
or a trust, or a member or shareholder of such Holder, if such Holder is a
partnership or corporation) and the United States, including such Holder (or
such fiduciary, settlor, beneficiary, Person holding a power, member or
shareholder) being or having been a citizen or resident thereof or being or
having been engaged in trade or business or present therein or having or having
had a permanent establishment therein or (ii) such Holder's past or present
status for United States Federal income tax purposes as a personal holding
company, foreign personal holding company or private foundation or other
tax-exempt organization with respect to the United States or as a corporation
that accumulates earnings to avoid United States Federal income tax;
(b) any estate, inheritance, gift, sales, transfer or personal
property tax or any similar tax, assessment or other governmental charge;
(c) any tax, fee, assessment or other governmental charge that
would not have been imposed but for the presentation by the Holder of a Bearer
Security or Coupon for payment more than 15 days after the date on which such
payment became due and payable or on which payment thereof was duly provided
for, whichever occurs later;
(d) any tax, fee, assessment or other governmental charge that is
payable otherwise than by deduction or withholding from a payment on a Bearer
Security or Coupon;
(e) any tax, fee, assessment or other governmental charge that
would not have been imposed but for a failure to comply with applicable
certification, documentation, information or other reporting requirement
concerning the nationality, residence, identity or connection with the United
States of the Holder or beneficial owner of a Bearer Security or Coupon if,
without regard to any tax treaty, such compliance is required by statute or
regulation of the United States as a precondition to relief or exemption from
such tax, assessment or other governmental charge; or
(f) any tax, fee, assessment or other governmental charge imposed
on a Holder that actually or constructively owns ten percent or more of the
combined voting power of all classes
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of stock of the Company or that is a controlled foreign corporation related to
the Company through stock ownership;
nor shall additional interest be paid with respect to a payment on a Bearer
Security or Coupon to a Holder that is a fiduciary or partnership or other than
the sole beneficial owner of such payment to the extent a beneficiary or settlor
with respect to such fiduciary or a member of such partnership or a beneficial
owner would not have been entitled to the additional interest had such
beneficiary, settlor, member or beneficial owner been the Holder of such Bearer
Security or Coupon.
Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of, or premium, if any, or interest on, any Debt
Security or payment with respect to any Coupon of any series, such mention shall
be deemed to include mention of the payment of additional interest provided for
in the terms of such Debt Securities and this Section 4.06 to the extent that,
in such context, additional interest is, was or would be payable in respect
thereof pursuant to the provisions of this Section 4.06 and express mention of
the payment of additional interest (if applicable) in any provisions hereof
shall not be construed as excluding additional interest in those provisions
hereof where such express mention is not made.
If the payment of additional interest becomes required in respect of
the Debt Securities or Coupons of a series, at least ten days prior to the first
interest payment date with respect to which such additional interest will be
payable (or if the Debt Securities of that series will not bear interest prior
to its Stated Maturity, the first day on which a payment of principal, and
premium, if any, is made and on which such additional interest will be payable),
and at least ten days prior to each date of payment of principal, and premium,
if any, or interest if there has been any change with respect to the matters set
forth in the below-mentioned Officers' Certificate, the Company will furnish the
Trustee and each paying agent with an Officers' Certificate that shall specify
by country the amount, if any, required to be withheld on such payments to
Holders of Debt Securities or Coupons that are United States Aliens, and the
Company will pay to the Trustee or such paying agent the additional interest, if
any, required by the terms of such Debt Securities and this Section 4.06. The
Company covenants to indemnify the Trustee and any paying agent for, and to hold
them harmless against, any and all loss, liability or expense reasonably
incurred without negligence or bad faith on their part arising out of or in
connection with actions taken or omitted by any of them in reliance on any
Officers' Certificate furnished pursuant to this Section 4.06.
Section 4.07. FURTHER INSTRUMENTS AND ACTS. The Company will, upon
request of the Trustee, execute and deliver such further instruments and do such
further acts as may reasonably be necessary or proper to carry out more
effectually the purposes of this Indenture.
Section 4.08. EXISTENCE. Subject to Article X, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence, rights (charter and statutory) and franchises; provided,
however, that the Company shall not be required to preserve any such right or
franchise if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
that the loss thereof is not disadvantageous in any material respect to the
Holders.
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ARTICLE V
HOLDERS' LISTS AND REPORTS
BY THE COMPANY AND THE TRUSTEE
Section 5.01. COMPANY TO FURNISH TRUSTEE INFORMATION AS TO NAMES AND
ADDRESSES OF HOLDERS; PRESERVATION OF INFORMATION. The Company covenants and
agrees that it will furnish or cause to be furnished to the Trustee with respect
to the Registered Securities of each series:
(a) not more than 15 days after each record date with respect to
the payment of interest, if any, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Registered Holders as of
such record date, and
(b) at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a list of
similar form and contents as of a date not more than 15 days prior to the time
such list is furnished;
provided, however, that so long as the Trustee shall be the Registrar, such
lists shall not be required to be furnished.
The Company shall also be required to furnish to the Trustee at all
such times set forth above all information in the possession or control of the
Company or any of its paying agents other than the Trustee as to the names and
addresses of the Bearer Holders of all series; provided, however, that the
Company shall have no obligation to investigate any matter relating to any
Bearer Holders.
The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the Holders (i)
contained in the most recent list furnished to it as provided in this Section
5.01 or (ii) received by it in the capacity of paying agent or Registrar (if so
acting) hereunder.
The Trustee may destroy any list furnished to it as provided in this
Section 5.01 upon receipt of a new list so furnished.
Section 5.02. COMMUNICATIONS TO HOLDERS. Holders may communicate
pursuant to Section 312(b) of the Trust Indenture Act with other Holders with
respect to their rights under this Indenture or the Debt Securities. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
Section 312(c) of the Trust Indenture Act.
Section 5.03. REPORTS BY COMPANY. (a) The Company covenants and agrees,
and any obligor hereunder shall covenant and agree, to file with the Trustee and
the Holders (in the manner and to the extent provided in Section 5.04), within
15 days after the Company or such obligor, as the case may be, is required to
file the same with the Securities and Exchange 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 said Commission may from time to time by
rules and regulations prescribe) which the Company or such obligor, as the case
may be, may be required to file with said
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Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if
the Company or such obligor, as the case may be, is not required to file
information, documents or reports pursuant to either of such Sections, then to
file with the Trustee, the Holders (in the manner and to the extent provided in
Section 5.04) and said Commission, in accordance with rules and regulations
prescribed from time to time by said 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) The Company covenants and agrees, and any obligor hereunder
shall covenant and agree, to file with the Trustee, the Holders (in the manner
and to the extent provided in Section 5.04) and the Securities and Exchange
Commission, in accordance with the rules and regulations prescribed from time to
time by said Commission, such additional information, documents, and reports
with respect to compliance by the Company or such obligor, as the case may be,
with the conditions and covenants provided for in this Indenture as may be
required from time to time by such rules and regulations.
Section 5.04. REPORTS BY TRUSTEE. As promptly as practicable after each
January 1 beginning with the January 1 following the date of this Indenture, and
in any event prior to February 15 in each year, the Trustee shall mail to each
Holder a brief report dated as of January 1 that complies with Section 313(a) of
the Trust Indenture Act. The Trustee also shall comply with Section 313(b) of
the Trust Indenture Act.
Reports pursuant to this Section 5.04 shall be transmitted by mail:
(a) to all Registered Holders, as the names and addresses of such
Holders appear in the Debt Security Register;
(b) to such Bearer Holders of any series as have, within two years
preceding such transmission, filed their names and addresses with the Trustee
for such series for that purpose; and
(c) except in the cases of reports under Section 313(b)(2) of the
Trust Indenture Act, to each Holder of a Debt Security of any series whose name
and address appear in the information preserved at the time by the Trustee in
accordance with Section 5.02.
A copy of each report at the time of its mailing to Holders shall be
filed with the Securities and Exchange Commission and each stock exchange (if
any) on which the Debt Securities of any series are listed. The Company agrees
to notify promptly the Trustee whenever the Debt Securities of any series become
listed on any stock exchange and of any delisting thereof.
Section 5.05. RECORD DATES FOR ACTION BY HOLDERS. If the Company shall
solicit from the holders of Debt Securities of any series any action (including
the making of any demand or request, the giving of any direction, notice,
consent or waiver or the taking of any other action), the Company may, at its
option, by resolution of the Board of Directors, fix in advance a record date
for the determination of Holders of Debt Securities entitled to take such
action, but the Company shall have
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no obligation to do so. Any such record date shall be fixed at the Company's
discretion. If such a record date is fixed, such action may be sought or given
before or after the record date, but only the Holders of Debt Securities of
record at the close of business on such record date shall be deemed to be
Holders of Debt Securities for the purpose of determining whether Holders of the
requisite proportion of Debt Securities of such series Outstanding have
authorized or agreed or consented to such action, and for that purpose the Debt
Securities of such series Outstanding shall be computed as of such record date.
ARTICLE VI
REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT
Section 6.01. EVENTS OF DEFAULT. If any one or more of the following
shall have occurred and be continuing with respect to Debt Securities of any
series (each of the following, an "Event of Default"):
(a) default in the payment of any installment of interest upon any
Debt Securities of that series or any payment with respect to the related
Coupons, if any, as and when the same shall become due and payable, whether or
not such payment shall be prohibited by Article XII, if applicable, and
continuance of such default for a period of 30 days; or
(b) default in the payment of the principal of or premium, if any,
on any Debt Securities of that series as and when the same shall become due and
payable, whether at maturity, upon redemption, by declaration, upon required
repurchase or otherwise, whether or not such payment shall be prohibited by
Article XII, if applicable; or
(c) default in the payment of any sinking fund payment with respect
to any Debt Securities of that series as and when the same shall become due and
payable; or
(d) failure on the part of the Company to comply with Article X; or
(e) failure on the part of the Company duly to observe or perform
any other of the covenants or agreements on the part of the Company in the Debt
Securities of that series, in any resolution of the Board of Directors
authorizing the issuance of that series of Debt Securities, in this Indenture
with respect to such series or in any supplemental Indenture with respect to
such series (other than a covenant a default in the performance of which is
elsewhere in this Section specifically dealt with), continuing for a period of
90 days after the date on which written notice specifying such failure and
requiring the Company to remedy the same shall have 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 25% in aggregate principal amount of the Debt
Securities of that series at the time Outstanding; or
(f) the Company or any of its Significant Subsidiaries that
Guarantees the payment of a series of Debt Securities shall (i) voluntarily
commence any proceeding or file any
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petition seeking relief under Title 11 of the United States Code or any other
Federal or State bankruptcy, insolvency or similar law, (ii) consent to the
institution of, or fail to controvert within the time and in the manner
prescribed by law, any such proceeding or the filing of any such petition, (iii)
apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator or similar official for the Company or any such Significant
Subsidiary or for a substantial part of its property, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors, (vi)
admit in writing its inability to pay its debts as they become due, (vii) take
corporate action for the purpose of effecting any of the foregoing, or (viii)
take any comparable action under any foreign laws relating to insolvency; or
(g) the entry of an order or decree by a court having competent
jurisdiction for (i) relief in respect of the Company or any of its Significant
Subsidiaries that guarantees the payment of a series of Debt Securities or a
substantial part of any of their property under Title 11 of the United States
Code or any other Federal or State bankruptcy, insolvency or similar law, (ii)
the appointment of a receiver, trustee, custodian, sequestrator or similar
official for the Company or any such Significant Subsidiary or for a substantial
part of any of their property (except any decree or order appointing such
official of any Significant Subsidiary pursuant to a plan under which the assets
and operations of such Significant Subsidiary are transferred to or combined
with another Subsidiary or Subsidiaries of the Company or to the Company) or
(iii) the winding-up or liquidation of the Company or any such Significant
Subsidiary (except any decree or order approving or ordering the winding up or
liquidation of the affairs of a Significant Subsidiary pursuant to a plan under
which the assets and operations of such Significant Subsidiary are transferred
to or combined with another Subsidiary or Subsidiaries of the Company or to the
Company); and such order or decree shall continue unstayed and in effect for 60
consecutive days; or any similar relief is granted under any foreign laws and
the order or decree stays in effect for 60 consecutive days; or
(h) any judgment or decree for the payment of money in excess of
$20,000,000 or its Dollar Equivalent at the time is entered against the Company
or any Significant Subsidiary of the Company that guarantees the payment of a
series of Debt Securities by a court or courts of competent jurisdiction, which
judgment is not covered by insurance, and is not discharged and either (i) an
enforcement proceeding has been commenced by any creditor upon such judgment or
decree or (ii) there is a period of 90 days following the entry of such judgment
or decree during which such judgment or decree is not discharged, waived or the
execution thereof stayed and, in the case of (i) or (ii), such default continues
for 10 days after the date on which written notice specifying such failure and
requiring the Company to remedy the same shall have 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 25% in aggregate principal amount of the Debt
Securities of that series at the time Outstanding; or
(i) any other Event of Default provided with respect to Debt
Securities of that series;
then and in each and every case that an Event of Default described in clause
(a), (b), (c), (d), (e), (h) or (i) with respect to Debt Securities of that
series at the time Outstanding occurs and is continuing,
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unless the principal of and interest on all the Debt Securities of that series
shall have already become due and payable, either the Trustee or the Holders of
not less than 25% in aggregate principal amount of the Debt Securities of that
series then Outstanding hereunder, by notice in writing to the Company (and to
the Trustee if given by Holders), may declare the principal of (or, if the Debt
Securities of that series are Original Issue Discount Debt Securities, such
portion of the principal amount as may be specified in the terms of that series)
and interest on all the Debt Securities of that series to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, anything in this Indenture or in the Debt
Securities or Coupons appertaining thereto of that series contained to the
contrary notwithstanding. If an Event of Default described in clause (f) or (g)
occurs, then and in each and every such case, unless the principal of and
interest on all the Debt Securities shall have become due and payable, the
principal of (or, if any Debt Securities are Original Issue Discount Debt
Securities, such portion of the principal amount as may be specified in the
terms thereto) and interest on all the Debt Securities then Outstanding
hereunder shall ipso facto become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holders, anything in
this Indenture or in the Debt Securities contained to the contrary
notwithstanding.
The Holders of a majority in aggregate principal amount of the Debt
Securities of a particular series by notice to the Trustee may rescind an
acceleration and its consequences if the rescission would not conflict with any
judgment or decree already rendered and if all existing Events of Default have
been cured or waived except nonpayment of principal or interest that has become
due solely because of acceleration. Upon any such rescission, the parties hereto
shall be restored respectively to their several positions and rights hereunder,
and all rights, remedies and powers of the parties hereto shall continue as
though no such proceeding had been taken.
In case the Trustee or any Holder shall have proceeded to enforce any
right under this Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee or such Holder, then and in
every such case the parties hereto shall be restored respectively to their
several positions and rights hereunder, and all rights, remedies and powers of
the parties hereto shall continue as though no such proceeding had been taken.
The foregoing Events of Default shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary or
involuntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body.
Section 6.02. COLLECTION OF INDEBTEDNESS BY TRUSTEE, ETC. If an Event
of Default occurs and is continuing, the Trustee, in its own name and as trustee
of an express trust, shall be entitled and empowered to institute any action or
proceedings at law or in equity for the collection of the sums so due and unpaid
or enforce the performance of any provision of the Debt Securities of the
affected series or this Indenture, and may prosecute any such action or
proceedings to judgment or final decree, and may enforce any such judgment or
final decree against the Company or any other obligor upon the Debt Securities,
and the Coupons, if any, appertaining thereto, of such series (and collect in
the manner provided by law out of the property of the Company or any other
obligor upon
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the Debt Securities and Coupons of such series wherever situated
the moneys adjudged or decreed to be payable).
In case there shall be pending proceedings for the bankruptcy or for
the reorganization of the Company or any other obligor upon the Debt Securities
and Coupons, if any, of any series under Title 11 of the United States Code or
any other Federal or State bankruptcy, insolvency or similar law, or in case a
receiver, trustee or other similar official shall have been appointed for its
property, or in case of any other similar judicial proceedings relative to the
Company or any other obligor upon the Debt Securities of any series, its
creditors or its property, the Trustee, irrespective of whether the principal of
Debt Securities and Coupons, if any, of any series shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand pursuant to the provisions of this
Section 6.02, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal, premium, if any, and interest (or, if the Debt Securities
of such series are Original Issue Discount Debt Securities, such portion of the
principal amount as may be specified in the terms of such series) owing and
unpaid in respect of the Debt Securities and Coupons of such series, and to file
such other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee (including any claim for reasonable compensation to
the Trustee, its agents, attorneys and counsel, and for reimbursement of all
expenses and liabilities Incurred, and all advances made, by the Trustee except
as a result of its negligence or bad faith) and of the Holders thereof allowed
in any such judicial proceedings relative to the Company, or any other obligor
upon the Debt Securities and Coupons of such series, its creditors or its
property, and to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute all amounts received with
respect to the claims of such Holders and of the Trustee on their behalf, and
any receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of such Holders to make payments to the Trustee, and, in the
event that the Trustee shall consent to the making of payments directly to such
Holders, to pay to the Trustee such amount as shall be sufficient to cover
reasonable compensation to the Trustee, its agents, attorneys and counsel, and
all other reasonable expenses and liabilities Incurred, and all advances made,
by the Trustee except as a result of its negligence or bad faith.
All rights of action and of asserting claims under this Indenture, or
under any of the Debt Securities and the Coupons, if any, appertaining thereto,
of any series, may be enforced by the Trustee without the possession of any such
Debt Securities or Coupons, or the production thereof in any trial or other
proceedings relative thereto, and any such action or proceedings instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment (except for any amounts payable to the Trustee pursuant
to Section 7.06) shall be for the ratable benefit of the Holders of all the Debt
Securities or Coupons in respect of which such action was taken.
In case of an Event of Default hereunder the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement
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contained in this Indenture or in aid of the exercise of any power granted in
this Indenture, or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.
Section 6.03. APPLICATION OF MONEYS COLLECTED BY TRUSTEE. Any moneys or
other property collected by the Trustee pursuant to Section 6.02 with respect to
Debt Securities and Coupons, if any, of any series shall be applied, after
giving effect to the provisions of Article XII, if applicable, in the order
following, at the date or dates fixed by the Trustee for the distribution of
such moneys or other property, upon presentation of the several Debt Securities
or Coupons of such series in respect of which moneys or other property have been
collected, and the notation thereon of the payment, if only partially paid, and
upon surrender thereof if fully paid:
FIRST: To the payment of all money due the Trustee pursuant
to Section 7.06;
SECOND: In case the principal of the Outstanding Debt
Securities in respect of which such moneys have been collected shall not have
become due, to the payment of interest on the Debt Securities or Coupons of such
series in the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments of interest at the rate or Yield to Maturity (in
the case of Original Issue Discount Debt Securities) borne by the Debt
Securities or Coupons of such series, such payments to be made ratably to the
Persons entitled thereto, without discrimination or preference;
THIRD: In case the principal of the Outstanding Debt
Securities in respect of which such moneys have been collected shall have become
due, by declaration or otherwise, to the payment of the whole amount then owing
and unpaid upon the Debt Securities or Coupons of such series for principal and
premium, if any, and interest, with interest on the overdue principal and
premium, if any, and (to the extent that such interest has been collected by the
Trustee) upon overdue installments of interest at the rate or Yield to Maturity
(in the case of Original Issue Discount Debt Securities) borne by the Debt
Securities or Coupons of such series; and, in case such moneys shall be
insufficient to pay in full the whole amount so due and unpaid upon the Debt
Securities and Coupons of such series, then to the payment of such principal and
premium, if any, and interest, without preference or priority of principal and
premium, if any, over interest, or of interest over principal and premium, if
any, or of any installment of interest over any other installment of interest,
or of any Debt Security or Coupon of such series over any Debt Security or
Coupon of such series, ratably to the aggregate of such principal and premium,
if any, and interest; and
FOURTH: The remainder, if any, shall be paid to the Company,
its successors or assigns, or to whomsoever may be lawfully entitled to receive
the same, or as a court of competent jurisdiction may direct.
The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.03. At least 15 days before such record date,
the Company shall mail to each Holder and the Trustee a notice that states the
record date, the payment date and amount to be paid.
Section 6.04. LIMITATION ON SUITS BY HOLDERS. No Holder of any Debt
Security or Coupon of any series shall have any right by virtue or by availing
of any provision of this Indenture to
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institute any action or proceeding at law or in equity or in bankruptcy or
otherwise, upon or under or with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless
such Holder previously shall have given to the Trustee written notice of an
Event of Default with respect to Debt Securities of that same series and of the
continuance thereof and unless the Holders of not less than 25% in aggregate
principal amount of the Outstanding Debt Securities of that series shall have
made written request upon the Trustee to institute such action or proceedings in
respect of such Event of Default in its own name as Trustee hereunder and shall
have offered to the Trustee such reasonable indemnity as it may require against
the costs, expenses and liabilities to be Incurred therein or thereby, and the
Trustee, for 60 days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such action or proceedings and no
direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 6.06; it being understood and intended, and being
expressly covenanted by the Holder of every Debt Security or Coupon with every
other Holder and the Trustee, that no one or more Holders shall have any right
in any manner whatever by virtue or by availing of any provision of this
Indenture to affect, disturb or prejudice the rights of any Holders, or to
obtain or seek to obtain priority over or preference to any other such Holder,
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal, ratable and common benefit of all such Holders. For
the protection and enforcement of the provisions of this Section 6.04, each and
every Holder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.
Notwithstanding any other provision in this Indenture, however, the
right of any Holder of any Debt Security or Coupon to receive payment of the
principal of, and premium, if any, and (subject to Section 2.12) interest on,
such Debt Security or Coupon, on or after the respective due dates expressed in
such Debt Security, and to institute 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 6.05. REMEDIES CUMULATIVE; DELAY OR OMISSION IN EXERCISE OF
RIGHTS NOT A WAIVER OF DEFAULT. All powers and remedies given by this Article VI
to the Trustee or to the Holders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any thereof or of any other powers and
remedies available to the Trustee or the Holders, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture, and no delay or omission of the Trustee
or of any Holder to exercise any right or power accruing upon any Default
occurring and continuing as aforesaid, shall impair any such right or power, or
shall be construed to be a waiver of any such Default or an acquiescence
therein; and, subject to the provisions of Section 6.04, every power and remedy
given by this Article VI or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Holders.
Section 6.06. RIGHTS OF HOLDERS OF MAJORITY IN PRINCIPAL AMOUNT OF DEBT
SECURITIES TO DIRECT TRUSTEE AND TO WAIVE DEFAULT. The Holders of a majority in
aggregate principal amount of the Debt Securities of any series at the time
Outstanding shall have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee, with respect to the Debt Securities
of such series; provided, however, that such direction shall not be otherwise
than in accordance with law and
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the provisions of this Indenture, and that subject to the provisions of Section
7.01, the Trustee shall have the right to decline to follow any such direction
if the Trustee being advised by counsel shall determine that the action so
directed may not lawfully be taken, or if the Trustee shall by a responsible
officer or officers determine that the action so directed would involve it in
personal liability or would be unjustly prejudicial to Holders of Debt
Securities of such series not taking part in such direction; and provided,
further, however, that nothing in this Indenture contained shall impair the
right of the Trustee to take any action deemed proper by the Trustee and which
is not inconsistent with such direction by such Holders. Prior to the
acceleration of the maturity of the Debt Securities of any series, as provided
in Section 6.01, the Holders of a majority in aggregate principal amount of the
Debt Securities of that series at the time Outstanding may on behalf of the
Holders of all the Debt Securities and any related Coupons of that series waive
any past Default or Event of Default and its consequences for that series
specified in the terms thereof as contemplated by Section 2.03, except (a) a
Default in the payment of the principal of, and premium, if any, or interest on,
any of the Debt Securities or in the payment of any related Coupon and (b) a
Default in respect of a provision that under Section 9.02 cannot be amended
without the consent of each Holder affected thereby. In case of any such waiver,
such Default shall cease to exist, any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture, and the
Company, the Trustee and the Holders of the Debt Securities of that series shall
be restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.
Section 6.07. TRUSTEE TO GIVE NOTICE OF DEFAULTS KNOWN TO IT, BUT MAY
WITHHOLD SUCH NOTICE IN CERTAIN CIRCUMSTANCES. The Trustee shall, within 90 days
after the occurrence of a Default known to it with respect to a series of Debt
Securities or Coupons, if any, give to the Holders thereof, in the manner
provided in Section 13.03, notice of all Defaults with respect to such series
known to the Trustee, unless such Defaults shall have been cured or waived
before the giving of such notice; provided, that, except in the case of Default
in the payment of the principal of, or premium, if any, or interest on, any of
the Debt Securities or Coupons of such series or in the making of any sinking
fund payment with respect to the Debt Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a committee of directors or responsible
officers of the Trustee in good faith determine that the withholding of such
notice is in the interests of the Holders thereof.
Section 6.08. REQUIREMENT OF AN UNDERTAKING TO PAY COSTS IN CERTAIN
SUITS UNDER THE INDENTURE OR AGAINST THE TRUSTEE. All parties to this Indenture
agree, and each Holder of any Debt Security or Coupon by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Trustee for any action taken or omitted by it as Trustee,
the filing by any party litigant in such suit of an undertaking to pay the costs
of such suit in the manner and to the extent provided in the Trust Indenture
Act, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section 6.08
shall not apply to any suit instituted by the Trustee, to any suit instituted by
any Holder, or group of Holders, holding in the aggregate more than ten percent
in principal amount of the Outstanding Debt Securities of that series or to any
suit instituted by any
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Holder for the enforcement of the payment of the principal of, or premium, if
any, or interest on, any Debt Security or Coupon on or after the due date for
such payment expressed in such Debt Security or Coupon.
ARTICLE VII
CONCERNING THE TRUSTEE
Section 7.01. CERTAIN DUTIES AND RESPONSIBILITIES. The Trustee, prior
to the occurrence of an Event of Default and after the curing or waiving of all
Events of Default which may have occurred, undertakes to perform such duties and
only such duties as are specifically set forth in this Indenture. In case an
Event of Default has occurred (which has not been cured or waived), the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.
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 wilful misconduct, except that:
(a) this subsection shall not be construed to limit the
effect of the first paragraph of this Section 7.01;
(b) prior to the occurrence of an Event of Default with
respect to the Debt Securities of a series and after the curing or waiving of
all Events of Default with respect to such series which may have occurred:
(i) the duties and obligations of the Trustee with
respect to Debt Securities and Coupons, if any, of any series shall be
determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable except for the performance of such duties
and obligations with respect to such series as are specifically set
forth in this Indenture, and no implied covenants or obligations with
respect to such series shall be read into this Indenture against the
Trustee; and
(ii) in the absence of bad faith on the part of the
Trustee, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
any certificates or opinions furnished to the Trustee and conforming to
the requirements of this Indenture; but in the case of any such
certificates or opinions 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; but the Trustee shall examine the
evidence furnished to it pursuant to Section 5.03 to determine whether
or not such evidence conforms to the requirement of this Indenture;
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(iii) the Trustee shall not be liable for an 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
(iv) the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it with respect to Debt
Securities of any series in good faith in accordance with the direction
of the Holders of not less than a majority in aggregate principal
amount of the Outstanding Debt Securities of that 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 with respect to Debt Securities
of such series.
None of the provisions of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any Personal financial liability
in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if there shall be reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.
Section 7.02. CERTAIN RIGHTS OF TRUSTEE. Except as otherwise provided
in Section 7.01:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note or other paper or document (whether in its original or facsimile form)
believed by it to be genuine and to have been signed or presented by the proper
party or parties;
(b) any request, direction, order or demand of the Company
mentioned herein shall be sufficiently evidenced by a Company Order (unless
other evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of the Company;
(c) the Trustee may consult with counsel of its selection, and the
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or suffered or
omitted by it hereunder in good faith and in accordance with such advice or
Opinion of Counsel;
(d) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Holders of Debt Securities or Coupons of any series
pursuant to the provisions of this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be Incurred therein or thereby;
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(e) the Trustee shall not be liable for any action taken or omitted
by it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;
(f) prior to the occurrence of an Event of Default and after
the curing of all Events of Default which may have occurred, 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, approval or other paper or document, unless
requested in writing to do so by the Holders of a majority in aggregate
principal amount of the then Outstanding Debt Securities of a series affected by
such matter; provided, however, that if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely to be Incurred by it in
the making of such investigation is not, in the opinion of the Trustee,
reasonably assured to the Trustee by the security afforded to it by the terms of
this Indenture, the Trustee may require reasonable indemnity against such costs,
expenses or liabilities as a condition to so proceeding. The reasonable expense
of every such investigation shall be paid by the Company or, if paid by the
Trustee, shall be repaid by the Company upon demand;
(g) the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed by it with due care
hereunder; and
(h) if any property other than cash shall at any time be subject to
a Lien in favor of the Holders, the Trustee, if and to the extent authorized by
a receivership or bankruptcy court of competent jurisdiction or by the
supplemental instrument subjecting such property to such lien, shall be entitled
to make advances for the purpose of preserving such property or of discharging
tax Liens or other prior Liens or encumbrances thereon.
Section 7.03. TRUSTEE NOT LIABLE FOR RECITALS IN INDENTURE OR IN DEBT
SECURITIES. The recitals contained herein, in the Debt Securities (except the
Trustee's certificate of authentication) and in any Coupons shall be taken as
the statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the Debt Securities or Coupons, if any,
of any series. The Trustee shall not be accountable for the use or application
by the Company of any of the Debt Securities or of the proceeds thereof.
Section 7.04. TRUSTEE, PAYING AGENT OR REGISTRAR MAY OWN DEBT
SECURITIES. The Trustee or any paying agent or Registrar, in its individual or
any other capacity, may become the owner or pledgee of Debt Securities or
Coupons and subject to the provisions of the Trust Indenture Act relating to
conflicts of interest and preferential claims may otherwise deal with the
Company with the same rights it would have if it were not Trustee, paying agent
or Registrar.
Section 7.05. MONEYS RECEIVED BY TRUSTEE TO BE HELD IN TRUST. Subject
to the provisions of Section 11.05, all moneys received by the Trustee shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received, but need not be segregated from other
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funds except to the extent required by law. The Trustee shall be under no
liability for interest on any moneys received by it hereunder. So long as no
Event of Default shall have occurred and be continuing, all interest allowed on
any such moneys shall be paid from time to time to the Company upon a Company
Order.
Section 7.06. COMPENSATION AND REIMBURSEMENT. The Company covenants and
agrees to pay in Dollars to the Trustee from time to time, and the Trustee shall
be entitled to, reasonable compensation for all services rendered by it
hereunder (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and, except as otherwise
expressly provided herein, the Company will pay or reimburse in Dollars the
Trustee upon its request for all reasonable expenses, disbursements and advances
Incurred or made by the Trustee in accordance with any of the provisions of this
Indenture (including the reasonable compensation and the expenses and
disbursements of its agents, attorneys and counsel and of all Persons not
regularly in its employ) except any such expense, disbursement or advances as
may arise from its negligence or bad faith. The Company also covenants to
indemnify in Dollars the Trustee and any predecessor Trustee for, and to hold it
harmless against, any and all loss, liability, claim, damage or expense Incurred
without negligence, wilful misconduct or bad faith on the part of the Trustee,
arising out of or in connection with the acceptance or administration of this
trust or trusts hereunder, including the reasonable costs and expenses of
defending itself against any claim of liability in connection with the exercise
or performance of any of its powers or duties hereunder. The obligations of the
Company under this Section 7.06 to compensate and indemnify the Trustee and to
pay or reimburse the Trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture. The Company and the Holders agree that such
additional indebtedness shall be secured by a Lien prior to that of the Debt
Securities and Coupons, if any, upon all property and funds held or collected by
the Trustee, as such, except funds held in trust for the payment of principal
of, and premium, if any, or interest on, particular Debt Securities and Coupons.
When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(g) or (h) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any bankruptcy, insolvency, reorganization or other similar
law.
Section 7.07. RIGHT OF TRUSTEE TO RELY ON AN OFFICERS' CERTIFICATE
WHERE NO OTHER EVIDENCE SPECIFICALLY PRESCRIBED. Except as otherwise provided in
Section 7.01, whenever in the administration of the provisions of this Indenture
the Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering or omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or bad faith on the part of the
Trustee, be deemed to be conclusively proved and established by an Officers'
Certificate delivered to the Trustee and such certificate, in the absence of
negligence or bad faith on the part of the Trustee, shall be full warrant to the
Trustee for any action taken, suffered or omitted by it under the provisions of
this Indenture upon the faith thereof.
Section 7.08. SEPARATE TRUSTEE; REPLACEMENT OF TRUSTEE. The Company
may, but need not, appoint a separate Trustee for any one or more series of Debt
Securities. The Trustee may resign
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with respect to one or more or all series of Debt Securities at any time by
giving notice to the Company. The Holders of a majority in principal amount of
the Debt Securities of a particular series may remove the Trustee for such
series and only such series by so notifying the Trustee and may appoint a
successor Trustee. The Company shall remove the Trustee if:
(a) the Trustee fails to comply with Section 7.10;
(b) the Trustee is adjudged bankrupt or insolvent;
(c) a receiver or other public officer takes charge of the
Trustee or its property; or
(d) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns, is removed by the Company or by the Holders of
a majority in principal amount of the Debt Securities of a particular series and
such Holders do not reasonably promptly appoint a successor Trustee, or if a
vacancy exists in the office of Trustee for any reason (the Trustee in such
event being referred to herein as the retiring Trustee), the Company shall
promptly appoint a successor Trustee. No resignation or removal of the Trustee
and no appointment of a successor Trustee shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of this Section 7.08.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders of Debt Securities of each applicable series. The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the Lien provided for in Section 7.06.
If a successor Trustee does not take office within 60 days after the
retiring Trustee gives notice of resignation or is removed, the retiring Trustee
or the Holders of 25% in principal amount of the Debt Securities of any
applicable series may petition any court of competent jurisdiction for the
appointment of a successor Trustee for the Debt Securities of such series.
If the Trustee fails to comply with Section 7.10, any Holder of Debt
Securities of any applicable series may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee for the Debt Securities of such series.
Notwithstanding the replacement of the Trustee pursuant to this Section
7.08, the Company's obligations under Section 7.06 shall continue for the
benefit of the retiring Trustee.
In the case of the appointment hereunder of a separate or successor
trustee with respect to the Debt Securities of one or more series, the Company,
any retiring Trustee and each successor or separate Trustee with respect to the
Debt Securities of any applicable series shall execute and deliver an Indenture
supplemental hereto (i) which shall contain such provisions as shall be deemed
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necessary or desirable to confirm that all the rights, powers, trusts and duties
of any retiring Trustee with respect to the Debt Securities of any series as to
which any such retiring Trustee is not retiring shall continue to be vested in
such retiring Trustee and (ii) that shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one trustee, it being
understood that nothing herein or in such supplemental Indenture shall
constitute such Trustees co-trustees of the same trust and that each such
separate, retiring or successor 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.
Section 7.09. SUCCESSOR TRUSTEE BY MERGER. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation or banking
association without any further act shall be the successor Trustee.
In case at the time such successor or successors by merger, conversion
or consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Debt Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Debt Securities so
authenticated; and in case at that time any of the Debt Securities shall not
have been authenticated, any successor to the Trustee may authenticate such Debt
Securities either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the
full force which it is anywhere in the Debt Securities or in this Indenture
provided that the certificate of the Trustee shall have.
Section 7.10. ELIGIBILITY; DISQUALIFICATION. The Trustee shall at all
times satisfy the requirements of Section 310(a) of the Trust Indenture Act. The
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition. No obligor upon
the Debt Securities or Coupons, if any, of a particular series or Person
directly or indirectly controlling, controlled by or under common control with
such obligor shall serve as Trustee upon the Debt Securities and Coupons of such
series. The Trustee shall comply with Section 310(b) of the Trust Indenture Act;
provided, however, that there shall be excluded from the operation of Section
310(b)(1) of the Trust Indenture Act this Indenture or any indenture or
indentures under which other securities or certificates of interest or
participation in other securities of the Company are outstanding if the
requirements for such exclusion set forth in Section 310(b)(1) of the Trust
Indenture Act are met.
Section 7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. The
Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding
any creditor relationship listed in Section 311(b) of the Trust Indenture Act. A
Trustee who has resigned or been removed shall be subject to Section 311(a) of
the Trust Indenture Act to the extent indicated therein.
Section 7.12. COMPLIANCE WITH TAX LAWS. The Trustee hereby agrees to
comply with all U.S. Federal income tax information reporting and withholding
requirements applicable to it with respect to payments of premium (if any) and
interest on the Debt Securities, whether acting as Trustee, Security Registrar,
paying agent or otherwise with respect to the Debt Securities.
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ARTICLE VIII
CONCERNING THE HOLDERS
Section 8.01. EVIDENCE OF ACTION BY HOLDERS. Whenever in this Indenture
it is provided that the Holders of a specified percentage in aggregate principal
amount of the Debt Securities of any or all series may take action (including
the making of any demand or request, the giving of any direction, notice,
consent or waiver or the taking of any other action) the fact that at the time
of taking any such action the Holders of such specified percentage have joined
therein may be evidenced (a) by any instrument or any number of instruments of
similar tenor executed by Holders in Person or by agent or proxy appointed in
writing, (b) by the record of the Holders voting in favor thereof at any meeting
of Holders duly called and held in accordance with the provisions of Section
5.02 or (c) by a combination of such instrument or instruments and any such
record of such a meeting of Holders.
Section 8.02. PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF DEBT
SECURITIES. Subject to the provisions of Sections 7.01, 7.02 and 13.11, proof of
the execution of any instrument by a Holder or his agent or proxy shall be
sufficient if made in accordance with such reasonable rules and regulations as
may be prescribed by the Trustee or in such manner as shall be satisfactory to
the Trustee.
The ownership of Registered Securities of any series shall be proved by
the Debt Security Register or by a certificate of the Registrar for such series.
The ownership of Bearer Securities shall be proved by production of
such Bearer Securities or by a certificate executed by any bank or trust
company, which certificate shall be dated and shall state on the date thereof a
Bearer Security bearing a specified identifying number or other mark was
deposited with or exhibited to the Person executing such certificate by the
Person named in such certificate, or by any other proof of possession reasonably
satisfactory to the Trustee. The holding by the Person named in any such
certificate of any Bearer Security specified therein shall be presumed to
continue for a period of one year unless at the time of determination of such
holding (a) another certificate bearing a later date issued in respect of the
same Bearer Security shall be produced, (b) such Bearer Security shall be
produced by some other Person, (c) such Bearer Security shall have been
registered on the Debt Security Register, if, pursuant to Section 2.03, such
Bearer Security can be so registered, or (d) such Bearer Security shall have
been canceled or paid.
The Trustee may require such additional proof of any matter referred to
in this Section 8.02 as it shall deem necessary.
Section 8.03. WHO MAY BE DEEMED OWNER OF DEBT SECURITIES. Prior to due
presentment for registration of transfer of any Registered Security, the
Company, the Trustee, any paying agent and any Registrar may deem and treat the
Person in whose name any Registered Security shall be registered upon the books
of the Company as the absolute owner of such Registered Security (whether or not
such Registered Security shall be overdue and notwithstanding any notation of
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ownership or other writing thereon) for the purpose of receiving payment of or
on account of the principal of and premium, if any, and (subject to Section
2.03) interest on such Registered Security and for all other purposes, and
neither the Company nor the Trustee nor any paying agent nor any Registrar shall
be affected by any notice to the contrary; and all such payments so made to any
such Holder for the time being, or upon his order, shall be valid and, to the
extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for moneys payable upon any such Registered Security.
The Company, the Trustee and any paying agent may deem and treat the
Holder of any Bearer Security or Coupon as the absolute owner of such Bearer
Security or Coupon (whether or not such Debt Security shall be overdue and
notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of or on account of the principal of and premium,
if any, and (subject to Section 2.03) interest on such Bearer Security or Coupon
and for all other purposes, and neither the Company nor the Trustee nor any
paying agent shall be affected by any notice to the contrary; and all such
payments so made to any such Holder for the time being, or upon his order, shall
be valid and, to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for moneys payable upon any such Bearer Security or
Coupon.
None of the Company, the Trustee, any paying agent or the Registrar
will have any responsibility or liability for any aspect of the records relating
to or payments made on account of beneficial ownership interests in a Global
Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests.
Section 8.04. INSTRUMENTS EXECUTED BY HOLDERS BIND FUTURE HOLDERS. At
any time prior to (but not after) the evidencing to the Trustee, as provided in
Section 8.01, of the taking of any action by the Holders of the percentage in
aggregate principal amount of the Debt Securities of any series specified in
this Indenture in connection with such action and subject to the following
paragraph, any Holder of a Debt Security which is shown by the evidence to be
included in the Debt Securities the Holders of which have consented to such
action may, by filing written notice with the Trustee at its corporate trust
office and upon proof of holding as provided in Section 8.02, revoke such action
so far as concerns such Debt Security. Except as aforesaid any such action taken
by the Holder of any Debt Security shall be conclusive and binding upon such
Holder and upon all future Holders and owners of such Debt Security and all
past, present and future Holders of Coupons, if any, appertaining thereto, and
of any Debt Security issued upon transfer thereof or in exchange or substitution
therefor, irrespective of whether or not any notation in regard thereto is made
upon such Debt Security or such other Debt Securities or Coupons. Any action
taken by the Holders of the percentage in aggregate principal amount of the Debt
Securities of any series specified in this Indenture in connection with such
action shall be conclusively binding upon the Company, the Trustee and the
Holders of all the Securities and Coupons of such series.
The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders of Registered Securities entitled to give
their consent or take any other action required or permitted to be taken
pursuant to this Indenture. If a record date is fixed, then notwithstanding the
immediately preceding paragraph, those Persons who were Holders of Registered
Securities at such record date (or their duly designated proxies), and only
those Persons,
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shall be entitled to give such consent or to revoke any consent previously given
or to take any such action, whether or not such Persons continue to be Holders
of Registered Securities after such record date. No such consent shall be valid
or effective for more than 120 days after such record date unless the consent of
the Holders of the percentage in aggregate principal amount of the Debt
Securities of such series specified in this Indenture shall have been received
within such 120-day period.
ARTICLE IX
SUPPLEMENTAL INDENTURES
Section 9.01. PURPOSES FOR WHICH SUPPLEMENTAL INDENTURE MAY BE ENTERED
INTO WITHOUT CONSENT OF HOLDERS. The Company, when authorized by a resolution of
the Board of Directors, and the Trustee may from time to time and at any time,
without the consent of Holders, enter into an Indenture or Indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as in force at the date of the execution thereof) for one or more
of the following purposes:
(a) to evidence the succession pursuant to Article X of another
Person to the Company, or successive successions, and the assumption by the
Successor Company (as defined in Section 10.01) of the covenants, agreements and
obligations of the Company in this Indenture and in the Debt Securities;
(b) to surrender any right or power herein conferred upon the
Company, to add to the covenants of the Company such further covenants,
restrictions, conditions or provisions for the protection of the Holders of all
or any series of Debt Securities and the Coupons, if any, appertaining thereto
(and if such covenants are to be for the benefit of less than all series of Debt
Securities, stating that such covenants are expressly being included solely for
the benefit of such series) as the Board of Directors shall consider to be for
the protection of the Holders of such Debt Securities, and to make the
occurrence, or the occurrence and continuance, of a Default in any of such
additional covenants, restrictions, conditions or provisions a Default or an
Event of Default permitting the enforcement of all or any of the several
remedies provided in this Indenture; provided, that in respect of any such
additional covenant, restriction, condition or provision such supplemental
Indenture may provide for a particular period of grace after Default (which
period may be shorter or longer than that allowed in the case of other Defaults)
or may provide for an immediate enforcement upon such Default or may limit the
remedies available to the Trustee upon such Default or may limit the right of
the Holders of a majority in aggregate principal amount of any or all series of
Debt Securities to waive such default;
(c) to cure any ambiguity or omission or to correct or supplement
any provision contained herein, in any supplemental Indenture or in any Debt
Securities of any series that may be defective or inconsistent with any other
provision contained herein, in any supplemental Indenture or in the Debt
Securities of such series; to convey, transfer, assign, mortgage or pledge any
property to or with the Trustee, or to make such other provisions in regard to
matters or questions arising
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under this Indenture as shall not adversely affect the interests of any Holders
of Debt Securities of any series;
(d) to modify or amend this Indenture in such a manner as to permit
the qualification of this Indenture or any Indenture supplemental hereto under
the Trust Indenture Act as then in effect, except that nothing herein contained
shall permit or authorize the inclusion in any Indenture supplemental hereto of
the provisions referred to in Section 316(a)(2) of the Trust Indenture Act;
(e) to add to or change any of the provisions of this Indenture to
provide that Bearer Securities may be registerable as to principal, to change or
eliminate any restrictions on the payment of principal of, or premium, if any,
on, Registered Securities or of principal of, or premium, if any, or interest
on, Bearer Securities or to permit Registered Securities to be exchanged for
Bearer Securities; provided, that any such action shall not adversely affect the
interests of the Holders of Debt Securities or any Coupons of any series in any
material respect or permit or facilitate the issuance of Debt Securities of any
series in uncertificated form;
(f) to comply with Article X;
(g) in the case of any Debt Securities and Coupons, if any,
appertaining thereto subordinated pursuant to Article XII, to make any change in
Article XII that would limit or terminate the benefits available to any holder
of Senior Indebtedness (or Representatives therefor) under Article XII;
(h) to add Guarantees with respect to any or all of the Debt
Securities or to secure any or all of the Debt Securities;
(i) to make any change that does not adversely affect the rights of
any Holder;
(j) to add to, change or eliminate any of the provisions of this
Indenture in respect of one or more series of Debt Securities; provided,
however, that any such addition, change or elimination not otherwise permitted
under this Section 9.01 shall (i) neither (A) apply to any Debt Security of any
series created prior to the execution of such supplemental indenture and
entitled to the benefit of such provision nor (B) modify the rights of the
Holder of any such Debt Security with respect to such provision or (ii) shall
become effective only when there is no such Debt Security Outstanding;
(k) to evidence and provide for the acceptance of appointment
hereunder by a successor or separate Trustee with respect to the Debt 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;
(l) to establish the form or terms of Debt Securities and Coupons,
if any, of any series as permitted by Sections 2.01 and 2.03; and
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(m) to provide for uncertificated Debt Securities in addition to or
in place of certificated Debt Securities (provided that the uncertificated Debt
Securities are issued in registered form for purposes of Section 163(f) of the
Internal Revenue Code of 1986, as amended, or in a manner such that the
uncertificated Debt Securities are described in Section 163(f)(2)(B) of the
Internal Revenue Code of 1986, as amended).
The Trustee is hereby authorized to join with the Company in the
execution of any such supplemental Indenture, to make any further appropriate
agreements and stipulations which may be therein contained and to accept the
conveyance, transfer, assignment, mortgage or pledge of any property thereunder,
but the Trustee shall not be obligated to enter into any such supplemental
Indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.
Any supplemental Indenture authorized by the provisions of this Section
9.01 may be executed by the Company and the Trustee without the consent of the
Holders of any of the Debt Securities or Coupons, if any, appertaining thereto
at the time Outstanding, notwithstanding any of the provisions of Section 9.02.
In the case of Debt Securities or Coupons, if any, appertaining thereto
subordinated pursuant to Article XII, an amendment under this Section 9.01 may
not make any change that adversely affects the rights under Article XII of any
holder of Senior Indebtedness then outstanding unless the holders of such Senior
Indebtedness (or any group or Representative thereof authorized to give a
consent) consent to such change.
After an amendment under this Section 9.01 becomes effective, the
Company shall mail to Holders of Debt Securities of each series affected thereby
a notice briefly describing such amendment. The failure to give such notice to
all such Holders, or any defect therein, shall not impair or affect the validity
of an amendment under this Section 9.01.
Section 9.02. MODIFICATION OF INDENTURE WITH CONSENT OF HOLDERS OF DEBT
SECURITIES. Without notice to any Holder but with the consent (evidenced as
provided in Section 8.01) of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series
affected by such supplemental Indenture, the Company, when authorized by a
resolution of the Board of Directors, and the Trustee may from time to time and
at any time enter into an Indenture or Indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act as in force at the
date of execution thereof) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental Indenture or of modifying in any manner the rights of the
Holders of the Debt Securities of such series; provided, that no such
supplemental Indenture, without the consent of the Holders of each Debt Security
so affected, shall (a) reduce the percentage in principal amount of Debt
Securities of any series whose Holders must consent to an amendment; (b) reduce
the rate of or extend the time for payment of interest on any Debt Security or
Coupon or reduce the amount of any payment to be made with respect to any
Coupon; (c) reduce the principal of or extend the Stated Maturity of any Debt
Security; (d) reduce the premium payable upon the redemption of any Debt
Security or change the time at which any Debt Security may or shall be redeemed
in accordance with
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Article III; (e) make any Debt Security or Coupon payable in Currency other than
that stated in the Debt Security; (f) in the case of any Debt Security or
Coupons, if any, appertaining thereto subordinated pursuant to Article XII, make
any change in Article XII that adversely affects the rights of any Holder under
Article XII; (g) release any security that may have been granted in respect of
the Debt Securities; (h) impair the right of a Holder of Debt Securities to
receive payment of principal of and interest on such Holder's Debt Securities on
or after the due dates therefor or to institute suit for the enforcement of or
with respect to such Holder's Debt Securities; (i) make any change in Section
6.06 or this Section 9.02; (j) change any obligation of the Company to pay
additional interest pursuant to Section 4.06; or (k) limit the obligation of the
Company to maintain a paying agency outside the United States for payment on
Bearer Securities as provided in Section 4.02 or limit the obligation of the
Company to redeem a Bearer Security as provided in Section 3.02(b).
A supplemental Indenture which changes or eliminates any covenant or
other provision of this Indenture which has been expressly included solely for
the benefit of one or more particular series of Debt Securities and Coupons, if
any, or which modifies the rights of the Holders of Debt Securities and Coupons
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 Debt Securities
and Coupons, if any, of any other series.
Upon the request of the Company, accompanied by a copy of a resolution
of the Board of Directors authorizing the execution of any such supplemental
Indenture, and upon the filing with the Trustee of evidence of the consent of
Holders as aforesaid, the Trustee shall join with the Company in the execution
of such supplemental Indenture unless such supplemental Indenture affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise, in
which case the Trustee may in its discretion but shall not be obligated to enter
into such supplemental Indenture.
It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed supplemental
Indenture, but it shall be sufficient if such consent shall approve the
substance thereof.
In the case of any Debt Securities or Coupons, if any, appertaining
thereto, subordinated pursuant to Article XII, an amendment under this Section
9.02 may not make any change that adversely affects the rights under Article XII
of any holder of Senior Indebtedness then outstanding unless the holders of such
Senior Indebtedness (or any group or Representative thereof authorized to give a
consent) consent to such change.
After an amendment under this Section 9.02 becomes effective, the
Company shall mail to Holders of Debt Securities of each series affected thereby
a notice briefly describing such amendment. The failure to give such notice to
all such Holders, or any defect therein, shall not impair or affect the validity
of an amendment under this Section 9.02.
Section 9.03. EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution of
any supplemental Indenture pursuant to the provisions of this Article IX, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the Holders
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shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental Indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.
The Trustee, subject to the provisions of Sections 7.01 and 7.02, may
receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any such supplemental Indenture complies with the provisions of
this Article IX.
Section 9.04. DEBT SECURITIES MAY BEAR NOTATION OF CHANGES BY
SUPPLEMENTAL INDENTURES. Debt Securities and Coupons, if any, of any series
authenticated and delivered after the execution of any supplemental Indenture
pursuant to the provisions of this Article IX 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. New Debt Securities and Coupons of
any series so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any modification of this Indenture contained in any such
supplemental Indenture may be prepared and executed by the Company,
authenticated by the Trustee and delivered in exchange for the Debt Securities
and Coupons of such series then Outstanding. Failure to make the appropriate
notation or to issue a new Debt Security or Coupon of such series shall not
affect the validity of such amendment.
Section 9.05. PAYMENT FOR CONSENT. Neither the Company nor any
Affiliate of the Company shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Debt Securities or Coupons, if any,
appertaining thereto unless such consideration is offered to be paid to all
Holders that so consent, waive or agree to amend in the time frame set forth in
solicitation documents relating to such consent, waiver or agreement.
ARTICLE X
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 10.01. CONSOLIDATIONS AND MERGERS OF THE COMPANY. The Company
shall not consolidate with or merge with or into any Person, or convey, transfer
or lease all or substantially all its assets, or permit any Person to
consolidate with or merge into or convey, transfer or lease substantially all
its assets to the Company, unless: (a) either (i) the Company shall be the
continuing Person in the case of a merger or (ii) the resulting, surviving or
transferee Person if other than the Company (the "Successor Company") shall be a
corporation, limited partnership or limited liability company organized and
existing under the laws of the United States, any State thereof or the District
of Columbia and the Successor Company shall expressly assume, by an Indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, all the obligations of the Company under the Debt Securities and
Coupons, if any, according to their tenor, and this Indenture; (b) immediately
after giving effect to such transaction (and treating any Indebtedness which
becomes an obligation of the Successor Company or any Subsidiary of the Company
as a
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result of such transaction as having been Incurred by the Successor Company or
such Subsidiary at the time of such transaction), no Default or Event of Default
would occur or be continuing; (c) the Successor Company waives any right to
redeem any Bearer Security under circumstances in which the Successor Company
would be entitled to redeem such Bearer Security but the Company would not have
been so entitled to redeem if the consolidation, merger, conveyance, transfer or
lease had not occurred; and (d) the Company shall have delivered to the Trustee
an Officers' Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental Indenture (if any)
comply with this Indenture.
Section 10.02. RIGHTS AND DUTIES OF SUCCESSOR CORPORATION. In case of
any consolidation or merger, or conveyance or transfer of the assets of the
Company as an entirety or virtually as an entirety in accordance with Section
10.01, the Successor Company shall succeed to and be substituted for the
Company, with the same effect as if it had been named herein as the party of the
first part, and the predecessor corporation shall be relieved of any further
obligation under the Indenture and the Securities. The Successor Company
thereupon may cause to be signed, and may issue either in its own name or in the
name of the Company, any or all the Debt Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of the Successor Company, instead of the Company,
and subject to all the terms, conditions and limitations in this Indenture
prescribed, the Trustee shall authenticate and shall deliver any Debt Securities
and Coupons, if any, appertaining thereto, which previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication, and any Debt Securities and Coupons, if any, appertaining
thereto, which the Successor Company thereafter shall cause to be signed and
delivered to the Trustee for that purpose. All the Debt Securities and Coupons,
if any, appertaining thereto so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Debt Securities and Coupons, if
any, appertaining thereto theretofore or thereafter issued in accordance with
the terms of this Indenture as though all such Debt Securities and Coupons had
been issued at the date of the execution hereof.
In case of any such consolidation, merger, sale or conveyance such
changes in phraseology and form (but not in substance) may be made in the Debt
Securities and Coupons, if any, appertaining thereto thereafter to be issued as
may be appropriate.
ARTICLE XI
SATISFACTION AND DISCHARGE OF
INDENTURE; DEFEASANCE; UNCLAIMED MONEYS
Section 11.01. APPLICABILITY OF ARTICLE. If, pursuant to Section 2.03,
provision is made for the defeasance of Debt Securities of a series and if the
Debt Securities of such series are Registered Securities and denominated and
payable only in Dollars (except as provided pursuant to Section 2.03), then the
provisions of this Article XI relating to defeasance of Debt Securities shall be
applicable except as otherwise specified pursuant to Section 2.03 for Debt
Securities of such series. Defeasance provisions, if any, for Debt Securities
denominated in a Foreign Currency or for Bearer Securities may be specified
pursuant to Section 2.03.
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Section 11.02. SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE. (a)
If at any time (i) the Company shall have delivered to the Trustee for
cancellation all Debt Securities of any series theretofore authenticated and
delivered (other than (A) Coupons appertaining to Bearer Securities of such
series called for redemption and maturing after the relevant redemption date,
surrender of which has been waived, (B) any Debt Securities and Coupons of such
series which shall have been destroyed, lost or stolen and which shall have been
replaced or paid as provided in Section 2.09 and (C) Debt Securities and Coupons
for whose payment money has theretofore been deposited in trust and thereafter
repaid to the Company as provided in Section 11.05) or (ii) all Debt Securities
and the Coupons, if any, of such series not theretofore delivered to the Trustee
for cancellation shall have become due and payable, or are by their terms to
become due and payable within one year or are to be called for redemption within
one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption, and the Company shall deposit with the Trustee as trust funds the
entire amount in the Currency in which such Debt Securities are denominated
(except as otherwise provided pursuant to Section 2.03) sufficient to pay at
maturity or upon redemption all Debt Securities of such series not theretofore
delivered to the Trustee for cancellation, including principal and premium, if
any, and interest due or to become due on such date of maturity or redemption
date, as the case may be, and if in either case the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then this
Indenture shall cease to be of further effect (except as to any surviving rights
of registration of transfer or exchange of such Debt Securities herein expressly
provided for and rights to receive payments of principal of, and premium, if
any, and interest on, such Debt Securities and any right to receive additional
interest as provided in Section 4.06) with respect to the Debt Securities of
such series, and the Trustee, on demand of the Company accompanied by an
Officers' Certificate and an Opinion of Counsel and at the cost and expense of
the Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture.
(b) Subject to Sections 11.02(c), 11.03 and 11.07, the Company at
any time may terminate, with respect to Debt Securities of a particular series,
all its obligations under the Debt Securities of such series and this Indenture
with respect to the Debt Securities of such series ("legal defeasance option")
or the operation of Sections 6.01(d), (e), (h) and (i) and the covenants
relating to a series of Debt Securities ("covenant defeasance option"). The
Company may exercise its legal defeasance option notwithstanding its prior
exercise of its covenant defeasance option.
If the Company exercises its legal defeasance option, payment of the
Debt Securities of the defeased series may not be accelerated because of an
Event of Default. If the Company exercises its covenant defeasance option,
payment of the Debt Securities of the defeased series may not be accelerated
because of an Event of Default specified in Sections 6.01(d), (e), (f), (i) and
(j) (except to the extent covenants or agreements referenced in such Sections
remain applicable).
Upon satisfaction of the conditions set forth herein and upon request
of the Company, the Trustee shall acknowledge in writing the discharge of those
obligations that the Company terminates.
(c) Notwithstanding clauses (a) and (b) above, the Company's
obligations in Sections 2.07, 2.09, 4.02, 4.04, 5.01, 7.06, 7.10, 11.05, 11.06
and 11.07 shall survive until the Debt
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Securities of the defeased series have been paid in full. Thereafter, the
Company's obligations in Sections 7.06, 11.05 and 11.06 shall survive.
Section 11.03. CONDITIONS OF DEFEASANCE. The Company may exercise its
legal defeasance option or its covenant defeasance option with respect to Debt
Securities of a particular series only if:
(a) the Company irrevocably deposits in trust with the Trustee cash
or U.S. Government Obligations for the payment of principal of, and premium, if
any, and interest on, the Debt Securities of such series to maturity or
redemption, as the case may be;
(b) the Company delivers to the Trustee a certificate from a
nationally recognized firm of independent accountants expressing their opinion
that the payments of principal and interest when due and without reinvestment on
the deposited U.S. Government Obligations plus any deposited money without
investment will provide cash at such times and in such amounts as will be
sufficient to pay the principal, premium and interest when due on all the Debt
Securities of such series to maturity or redemption, as the case may be;
(c) 123 days pass after the deposit is made and during the 123-day
period no Default specified in Section 6.01(f) or (g) with respect to the
Company occurs which is continuing at the end of the period;
(d) no Default has occurred and is continuing on the date of such
deposit and after giving effect thereto;
(e) if the Debt Securities of such series are subordinated pursuant
to Article XII, the deposit is not prohibited by Article XII;
(f) the Company delivers to the Trustee an Opinion of Counsel to
the effect that the trust resulting from the deposit does not constitute, or is
qualified as, a regulated investment company under the Investment Company Act
of 1940;
(g) in the event of the legal defeasance option, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (i) the Company
has received from the Internal Revenue Service a ruling, or (ii) since the date
of this Indenture there has been a change in the applicable Federal income tax
law, in either case of the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of Debt Securities of such series 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 same
amounts, in the same manner and at the same times as would have been the case if
such defeasance had not occurred;
(h) in the event of the covenant defeasance option, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of Debt Securities of such series 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
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same manner and at the same times as would have been the case if such covenant
defeasance had not occurred; and
(i) the Company delivers to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent to the
defeasance and discharge of the Debt Securities of such series as contemplated
by this Article XI have been complied with.
Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Debt Securities of such series
at a future date in accordance with Article III.
Section 11.04. APPLICATION OF TRUST MONEY. The Trustee shall hold in
trust money or U.S. Government Obligations deposited with it pursuant to this
Article XI. It shall apply the deposited money and the money from U.S.
Government Obligations through any paying agent and in accordance with this
Indenture to the payment of principal of, and premium, if any, and interest on,
the Debt Securities and Coupons, if any, of the defeased series. In the event
the Debt Securities and Coupons, if any, of the defeased series are subordinated
pursuant to Article XII, money and securities so held in trust are not subject
to Article XII.
Section 11.05. REPAYMENT TO COMPANY. The Trustee and any paying agent
shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.
Subject to any applicable abandoned property law, the Trustee and any
paying agent shall pay to the Company upon request any money held by them for
the payment of principal, premium or interest that remains unclaimed for two
years, and, thereafter, Holders entitled to such money must look to the Company
for payment as general creditors.
Section 11.06. INDEMNITY FOR U.S. GOVERNMENT OBLIGATIONS. The Company
shall pay and shall indemnify the Trustee and the Holders against any tax, fee
or other change imposed on or assessed against deposited U.S. Government
Obligations or the principal and interest received on such U.S. Government
Obligations.
Section 11.07. REINSTATEMENT. If the Trustee or any paying agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article XI by reason of any legal proceeding or by reason of any order or
judgment of any court or government authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Debt Securities of the defeased series shall be revived and
reinstated as though no deposit had occurred pursuant to this Article XI until
such time as the Trustee or any paying agent is permitted to apply all such
money or U.S. Government Obligations in accordance with this Article XI.
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ARTICLE XII
SUBORDINATION OF DEBT SECURITIES
Section 12.01. APPLICABILITY OF ARTICLE; AGREEMENT TO SUBORDINATE. The
provisions of this Article XII shall be applicable to the Debt Securities of any
series (Debt Securities of such series referred to in this Article XII as
"Subordinated Debt Securities") designated, pursuant to Section 2.03, as
subordinated to Senior Indebtedness. Each Holder by accepting a Subordinated
Debt Security agrees that the Indebtedness evidenced by such Subordinated Debt
Security is subordinated in right of payment, to the extent and in the manner
provided in this Article XII, to the prior payment of all Senior Indebtedness
and that the subordination is for the benefit of and enforceable by the holders
of Senior Indebtedness. All provisions of this Article XII shall be subject to
Section 12.12.
Section 12.02. LIQUIDATION, DISSOLUTION, BANKRUPTCY. Upon any payment
or distribution of the assets of the Company to creditors upon a total or
partial liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:
(a) holders of Senior Indebtedness shall be entitled to receive
payment in full in cash of the Senior Indebtedness (including interest (if any),
accruing on or after the commencement of a proceeding in bankruptcy, whether or
not allowed as a claim against the Company in such bankruptcy proceeding) before
Holders of Subordinated Debt Securities shall be entitled to receive any payment
of principal of, or premium, if any, or interest on, the Subordinated Debt
Securities; and
(b) until the Senior Indebtedness is paid in full, any distribution
to which Holders of Subordinated Debt Securities would be entitled but for this
Article XII shall be made to holders of Senior Indebtedness as their interests
may appear, except that such Holders may receive shares of stock and any debt
securities that are subordinated to Senior Indebtedness to at least the same
extent as the Subordinated Debt Securities.
Section 12.03. DEFAULT ON SENIOR INDEBTEDNESS. The Company may not pay
the principal of, or premium, if any, or interest on, the Subordinated Debt
Securities or make any deposit pursuant to Article XI and may not repurchase,
redeem or otherwise retire (except, in the case of Subordinated Debt Securities
that provide for a mandatory sinking fund pursuant to Section 3.05, by the
delivery of Subordinated Debt Securities by the Company to the Trustee pursuant
to the first paragraph of Section 3.06) any Debt Securities (collectively, "pay
the Subordinated Debt Securities") if (a) any principal, premium or interest in
respect of Senior Indebtedness is not paid within any applicable grace period
(including at maturity) or (b) any other default on Senior Indebtedness occurs
and the maturity of such Senior Indebtedness is accelerated in accordance with
its terms unless, in either case, (i) the default has been cured or waived and
any such acceleration has been rescinded or (ii) such Senior Indebtedness has
been paid in full in cash; provided, however, that the Company may pay the
Subordinated Debt Securities without regard to the foregoing if the Company and
the Trustee receive written notice approving such payment from the
Representative of each issue of Designated Senior Indebtedness. During the
continuance of any default (other than a default
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described in clause (a) or (b) of the preceding sentence) with respect to any
Senior Indebtedness pursuant to which the maturity thereof may be accelerated
immediately without further notice (except such notice as may be required to
effect such acceleration) or the expiration of any applicable grace periods, the
Company may not pay the Subordinated Debt Securities for a period (a "Payment
Blockage Period") commencing upon the receipt by the Company and the Trustee of
written notice of such default from the Representative of any Designated Senior
Indebtedness specifying an election to effect a Payment Blockage Period (a
"Blockage Notice") and ending 179 days thereafter (or earlier if such Payment
Blockage Period is terminated (A) by written notice to the Trustee and the
Company from the Person or Persons who gave such Blockage Notice, (B) by
repayment in full in cash of such Designated Senior Indebtedness or (C) because
the default giving rise to such Blockage Notice is no longer continuing).
Notwithstanding the provisions described in the immediately preceding sentence
(but subject to the provisions contained in the first sentence of this Section
12.03), unless the holders of such Designated Senior Indebtedness or the
Representative of such holders shall have accelerated the maturity of such
Designated Senior Indebtedness, the Company may resume payments on the
Subordinated Debt Securities after such Payment Blockage Period. Not more than
one Blockage Notice may be given in any consecutive 360-day period, irrespective
of the number of defaults with respect to any number of issues of Senior
Indebtedness during such period. For purposes of this Section 12.03, no default
or event of default which existed or was continuing on the date of the
commencement of any Payment Blockage Period with respect to the Senior
Indebtedness initiating such Payment Blockage Period shall be, or be made, the
basis of the commencement of a subsequent Payment Blockage Period by the
Representative of such Senior Indebtedness, whether or not within a period of
360 consecutive days, unless such default or event of default shall have been
cured or waived for a period of not less than 90 consecutive days.
Section 12.04. ACCELERATION OF PAYMENT OF DEBT SECURITIES. If payment
of the Subordinated Debt Securities is accelerated because of an Event of
Default, the Company or the Trustee shall promptly notify the holders of the
Designated Senior Indebtedness (or their Representatives) of the acceleration.
Section 12.05. WHEN DISTRIBUTION MUST BE PAID OVER. If a distribution
is made to Holders of Subordinated Debt Securities that because of this Article
XII should not have been made to them, the Holders who receive such distribution
shall hold it in trust for holders of Senior Indebtedness and pay it over to
them as their interests may appear.
Section 12.06. SUBROGATION. After all Senior Indebtedness is paid in
full and until the Subordinated Debt Securities are paid in full, Holders
thereof shall be subrogated to the rights of holders of Senior Indebtedness to
receive distributions applicable to Senior Indebtedness. A distribution made
under this Article XII to holders of Senior Indebtedness which otherwise would
have been made to Holders of Subordinated Debt Securities is not, as between the
Company and such Holders, a payment by the Company on Senior Indebtedness.
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Section 12.07. RELATIVE RIGHTS. This Article XII defines the relative
rights of Holders of Subordinated Debt Securities and holders of Senior
Indebtedness. Nothing in this Indenture shall:
(a) impair, as between the Company and Holders of either
Subordinated Debt Securities or Debt Securities, the obligation of the Company,
which is absolute and unconditional, to pay principal of, and premium, if any,
and interest on, the Subordinated Debt Securities and the Debt Securities in
accordance with their terms; or
(b) prevent the Trustee or any Holder of either Subordinated Debt
Securities or Debt Securities from exercising its available remedies upon a
Default, subject to the rights of holders of Senior Indebtedness to receive
distributions otherwise payable to Holders of Subordinated Debt Securities.
Section 12.08. SUBORDINATION MAY NOT BE IMPAIRED BY COMPANY. No right
of any holder of Senior Indebtedness to enforce the subordination of the
Indebtedness evidenced by the Subordinated Debt Securities shall be impaired by
any act or failure to act by the Company or by its failure to comply with this
Indenture.
Section 12.09. RIGHTS OF TRUSTEE AND PAYING AGENT. Notwithstanding
Section 12.03, the Trustee or any paying agent may continue to make payments on
Subordinated Debt Securities and shall not be charged with knowledge of the
existence of facts that would prohibit the making of any such payments unless,
not less than two business days prior to the date of such payment, a responsible
officer of the Trustee receives notice satisfactory to it that payments may not
be made under this Article XII. The Company, the Registrar, any paying agent, a
Representative or a holder of Senior Indebtedness may give the notice; provided,
however, that, if an issue of Senior Indebtedness has a Representative, only the
Representative may give the notice.
The Trustee in its individual or any other capacity may hold Senior
Indebtedness with the same rights it would have if it were not Trustee. The
Registrar and any paying agent may do the same with like rights. The Trustee
shall be entitled to all the rights set forth in this Article XII with respect
to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness; and nothing in Article VII
shall deprive the Trustee of any of its rights as such holder. Nothing in this
Article XII shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 7.06.
Section 12.10. DISTRIBUTION OR NOTICE TO REPRESENTATIVE. Whenever a
distribution is to be made or a notice given to holders of Senior Indebtedness,
the distribution may be made and the notice given to their Representative (if
any).
Section 12.11. ARTICLE XII NOT TO PREVENT DEFAULTS OR LIMIT RIGHT TO
ACCELERATE. The failure to make a payment pursuant to the Debt Securities by
reason of any provision in this Article XII shall not be construed as preventing
the occurrence of a Default. Nothing in this Article XII shall have any effect
on the right of the Holders or the Trustee to accelerate the maturity of either
the Subordinated Debt Securities or the Debt Securities, as the case may be.
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Section 12.12. TRUST MONEYS NOT SUBORDINATED. Notwithstanding anything
contained herein to the contrary, payments from money or the proceeds of U.S.
Government Obligations held in trust under Article XI by the Trustee for the
payment of principal of, and premium, if any, and interest on, the Subordinated
Debt Securities or the Debt Securities shall not be subordinated to the prior
payment of any Senior Indebtedness or subject to the restrictions set forth in
this Article XII, and none of the Holders thereof shall be obligated to pay over
any such amount to the Company or any holder of Senior Indebtedness of the
Company or any other creditor of the Company.
Section 12.13. TRUSTEE ENTITLED TO RELY. Upon any payment or
distribution pursuant to this Article XII, the Trustee and the Holders shall be
entitled to rely (a) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 12.02
are pending, (b) upon a certificate of the liquidating trustee or agent or other
Person making such payment or distribution to the Trustee or to such Holders or
(c) upon the Representatives for the holders of Senior Indebtedness for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness and other Indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article
XII. In the event that the Trustee determines, in good faith, that evidence is
required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article XII, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and other facts pertinent to the rights of such
Person under this Article XII, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment. The provisions of Sections
7.01 and 7.02 shall be applicable to all actions or omissions of actions by the
Trustee pursuant to this Article XII.
Section 12.14. TRUSTEE TO EFFECTUATE SUBORDINATION. Each Holder by
accepting a Subordinated Debt Security authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination between the Holders of Subordinated Debt Securities
and the holders of Senior Indebtedness as provided in this Article XII and
appoints the Trustee as attorney-in-fact for any and all such purposes.
Section 12.15. TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR
INDEBTEDNESS. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness and shall not be liable to any such holders if it
shall mistakenly pay over or distribute to Holders of Subordinated Debt
Securities or the Company or any other Person, money or assets to which any
holders of Senior Indebtedness shall be entitled by virtue of this Article XII
or otherwise.
Section 12.16. RELIANCE BY HOLDERS OF SENIOR INDEBTEDNESS ON
SUBORDINATION PROVISIONS. Each Holder by accepting a Subordinated Debt Security
acknowledges and agrees that the foregoing subordination provisions are, and are
intended to be, an inducement and a consideration to each holder of any Senior
Indebtedness, whether such Senior Indebtedness was created or acquired before or
after the issuance of the Subordinated Debt Securities, to acquire and continue
to hold, or to continue to hold, such Senior Indebtedness and such holder of
Senior Indebtedness shall be deemed
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conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness.
ARTICLE XIII
GUARANTEE OF DEBT SECURITIES
Section 13.01. APPLICABILITY OF ARTICLE. The provisions of this Article
XIII shall be applicable to the Debt Securities of any series the payment of
which is guaranteed by a Subsidiary Guarantor pursuant to Section 2.03. The
Company may cause any of its Subsidiaries to become a Subsidiary Guarantor with
respect to the Debt Securities of any series. Any such Subsidiary shall become a
Subsidiary Guarantor by executing and delivering to the Trustee (a) a
supplemental indenture, in form and substance satisfactory to, and executed by,
the Trustee and executed by the Company, which subjects such Subsidiary to the
provisions of this Indenture as a Subsidiary Guarantor and (b) an Opinion of
Counsel to the effect that such supplemental indenture has been duly authorized
and executed by such Subsidiary and constitutes the legal, valid, binding and
enforceable obligation of such Subsidiary (subject to customary exceptions
concerning creditors' rights and equitable principles).
Section 13.02. UNCONDITIONAL GUARANTEE. Each Subsidiary Guarantor that
delivers such a supplemental indenture with respect to a series of Debt
Securities hereby jointly and severally unconditionally Guarantees to each
Holder of such Debt Security authenticated and delivered by the Trustee, and to
the Trustee on behalf of such Holder, the full and punctual payment of the
principal of and premium, if any, and interest on such Debt Security when and as
the same shall become due and payable, whether at the Stated Maturity, by
acceleration, call for redemption, purchase or otherwise, in accordance with the
terms of such Security and of this Indenture. In case of the failure of the
Company punctually to make any such payment, each Subsidiary Guarantor hereby
jointly and severally agrees to pay or cause such payment to be made punctually
when and as the same shall become due and payable, whether at the Stated
Maturity, by acceleration, call for redemption, purchase or otherwise, and as if
such payment were made by the Company.
Each Subsidiary Guarantor that delivers such a supplemental indenture
with respect to a series of Debt Securities hereby jointly and severally agrees
that its obligations hereunder shall be unconditional, irrespective of the
validity, regularity or enforceability of such Debt Securities or this
Indenture, the absence of any action to enforce the same, any exchange, release
or non-perfection of any Lien on any collateral for, or any release or amendment
or waiver of any term of any other Guarantee of all or any of the Debt
Securities, or any consent to departure from any requirement of any other
Guarantee of all or any of the Debt Securities, the election by the Trustee or
any of the Holders in any proceeding under Chapter 11 of the Federal Bankruptcy
Code, or the application of Section 1111(b)(2) of the Federal Bankruptcy Code,
any borrowing or grant of a security interest by the Company, as
debtor-in-possession, under Section 364 of the Federal Bankruptcy Code, the
disallowance, under Section 502 of the Federal Bankruptcy Code, of all or any
portion of the claims of the Trustee or any of the Holders for payment of any of
the Securities (including, without
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limitation, any interest, or premium thereon), any waiver or consent by the
Holder of such Debt Security or by the Trustee with respect to any provisions
thereof or of this Indenture or with respect to the provisions of this Article
XIII as they apply to any other Subsidiary Guarantor, the obtaining of any
judgment against the Company or any action to enforce the same or any other
circumstances which might otherwise constitute a legal or equitable discharge or
defense of a guarantor. Each such Subsidiary Guarantor hereby waives the
benefits of diligence, presentment, demand of payment, any requirement that the
Trustee or any of the Holders protect, secure, perfect or insure any security
interest in or other Lien on any property subject thereto or exhaust any right
or take any action against the Company or any other Person, filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right
to require a proceeding first against the Company, protest or notice with
respect to such Security or the Indebtedness evidenced thereby and all demands
whatsoever, and covenants that its Subsidiary Guarantee will not be discharged
in respect of such Debt Security except by complete performance of the
obligations contained in such Debt Security and in such Subsidiary Guarantee.
Each Subsidiary Guarantor hereby agrees that, in the event of a default in
payment of principal of or premium, if any, or interest on such Debt Security,
whether at their Stated Maturity, by acceleration, call for redemption, purchase
or otherwise, legal proceedings may be instituted by the Trustee on behalf of,
or by, the Holder of such Security, subject to the terms and conditions set
forth in this Indenture, directly against all or any of the Subsidiary
Guarantors to enforce their respective Subsidiary Guarantees without first
proceeding against the Company. Each Subsidiary Guarantor agrees that if, after
the occurrence and during the continuance of an Event of Default, the Trustee or
any of the Holders are prevented by applicable law from exercising their
respective rights to accelerate the maturity of the Debt Securities guaranteed
by such Subsidiary Guarantor, to collect interest on such Debt Securities, or to
enforce or exercise any other right or remedy with respect to such Debt
Securities, such Subsidiary Guarantor agrees to pay to the Trustee for the
account of the Holders, upon demand therefor, the amount that would otherwise
have been due and payable had such rights and remedies been permitted to be
exercised by the Trustee or any of the Holders.
Each Subsidiary Guarantor shall be subrogated to all rights of the
Holders of the Debt Securities against the Company in respect of any amounts
paid by that Subsidiary Guarantor on account of such Debt Securities pursuant to
the provisions of its Subsidiary Guarantee of this Indenture; provided, however,
that no Subsidiary Guarantor shall be entitled to enforce or to receive any
payments arising out of, or based upon, such right of subrogation until the
principal of and premium, if any, and interest, if any, on all Debt Securities
issued hereunder related to such Subsidiary Guarantee shall have been paid in
full.
Each Subsidiary Guarantee shall remain in full force and effect and
continue to be effective if any petition is filed by or against the Company for
liquidation or reorganization, if the Company becomes insolvent or makes an
assignment for the benefit of creditors or if a receiver or trustee is appointed
for all or any significant part of the Company's assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as
the case may be, if at any time payment and performance of the Securities is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by an obligee on the Securities whether as a "voidable
preference," "fraudulent transfer," or otherwise, all as though such payment or
performance has not been made. If any payment, or any part thereof, is
rescinded, reduced, restored or returned, the
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Securities shall, to the fullest extent permitted by law, be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.
The Subsidiary Guarantors shall have the right to seek contribution
from any non-paying Subsidiary Guarantor so long as the exercise of such right
does not impair the rights of the Holders under the Subsidiary Guarantees or
under this Article XIII in accordance with Section 13.07.
Section 13.03. EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEES. The
Subsidiary Guarantee to be endorsed on the Debt Securities shall be set forth in
a resolution of the Board of Directors or a supplemental indenture authorizing
the series of Debt Securities relating to such Subsidiary Guarantee. Each
Subsidiary Guarantor that delivers a supplemental indenture with respect to a
series of Debt Securities pursuant to Section 13.01 hereby agrees to execute its
Subsidiary Guarantee, in a form established pursuant to the resolution or
supplemental indenture referred to in the preceding sentence, to be endorsed on
each such Debt Security authenticated and delivered by the Trustee.
The Subsidiary Guarantee shall be executed on behalf of each respective
Subsidiary Guarantor by any one of such Subsidiary Guarantor's Officers,
attested by its secretary or assistant secretary. The signature of any or all of
these Officers on the Subsidiary Guarantee may be manual or facsimile. A
Subsidiary Guarantee bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of a Subsidiary Guarantor shall bind
such Subsidiary Guarantor, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of the
Debt Security on which such Subsidiary Guarantee is endorsed or did not hold
such offices at the date of such Subsidiary Guarantee.
The delivery of any Security by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Subsidiary Guarantee
endorsed thereon on behalf of the Subsidiary Guarantors. Each Subsidiary
Guarantor hereby jointly and severally agrees that its Subsidiary Guarantee set
forth in Section 13.1 shall remain in full force and effect notwithstanding any
failure to endorse a Subsidiary Guarantee on any Security.
Section 13.04. LIMITATION ON MERGER OR CONSOLIDATION. No Subsidiary
Guarantor (in this Section 13.4, the "Subject Subsidiary Guarantor") may
consolidate with or merge with or into (whether or not the Subject Subsidiary
Guarantor is the surviving Person), or sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all the properties of the Subject
Subsidiary Guarantor to another Person (other than the Company or another
Subsidiary Guarantor), whether or not affiliated with the Subject Subsidiary
Guarantor, unless:(i) the Person formed by or surviving any such consolidation
or merger (if other than the Subject Subsidiary Guarantor) assumes all the
obligations of the Subject Subsidiary Guarantor under the Debt Securities
guaranteed by such Subject Subsidiary Guarantor pursuant to a supplemental
indenture, in form and substance satisfactory to the Trustee; and (ii)
immediately after giving effect to such transaction, no Default or Event of
Default exists.
Except as set forth in Articles VIII hereof, nothing contained in this
Indenture or in any of the Securities shall prevent any consolidation or merger
of a Subsidiary Guarantor with or into the
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Company or another Subsidiary Guarantor or shall prevent any sale or conveyance
of the property of a Subsidiary Guarantor as an entirety or substantially as an
entirety to the Company or another Subsidiary Guarantor.
Section 13.05. RELEASE OF SUBSIDIARY GUARANTORS. (a) In the event of a
sale or other disposition of all the properties and assets of any Subsidiary
Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of all the Equity Interests of any Subsidiary Guarantor, in each
case subject to and as permitted by the terms of this Indenture, including,
without limitation, Section 13.04, and upon delivery by the Company to the
Trustee of an Officers' Certificate and an Opinion of Counsel to the effect that
such consolidation, merger, sale or other disposition was made in accordance
with Section 13.04 hereof, the Trustee shall execute any documents reasonably
required in order to evidence the release of that Subsidiary Guarantor (in the
event of a sale of or other disposition, by way of such a merger, consolidation
or otherwise, of all the equity interests of that Subsidiary Guarantor) from its
obligations under its Subsidiary Guarantees endorsed on the appropriate Debt
Securities and under this Article XIII.
(b) Concurrently with the legal or the covenant defeasance of the
Securities under Section 11.2 hereof, the Subsidiary Guarantors shall be
released from all of their obligations under their Subsidiary Guarantees
endorsed on the Debt Securities and under this Article XIII.
Section 13.06. LIMITATION OF SUBSIDIARY GUARANTOR'S LIABILITY. Each
Subsidiary Guarantor, and by its acceptance hereof each Holder, hereby confirms
that it is the intention of all such parties that the Guarantee by that
Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute a
fraudulent transfer or conveyance for purposes of the Federal Bankruptcy Code,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar Federal or state law. To effectuate the foregoing intention, the
Holders and such Subsidiary Guarantor hereby irrevocably agree that the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee shall be
limited to the maximum amount that, after giving effect to all other contingent
and fixed liabilities of such Subsidiary Guarantor and after giving effect to
any collections from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the obligations of such other Subsidiary Guarantor under
its Subsidiary Guarantee or pursuant to Section 13.7, result in the obligations
of that Subsidiary Guarantor under its Subsidiary Guarantee not constituting
such a fraudulent transfer or conveyance under federal or state law.
Section 13.07. CONTRIBUTION. In order to provide for just and equitable
contribution among the Subsidiary Guarantors, the Subsidiary Guarantors agree,
inter se, that in the event any payment or distribution is made by any
Subsidiary Guarantor (a "Funding Subsidiary Guarantor") under its Subsidiary
Guarantee with respect to a series of Debt Securities, and so long as the
exercise of such right does not impair the rights of the Holders under the
Subsidiary Guarantees or under this Article XIII, such Funding Subsidiary
Guarantor shall be entitled to a contribution from all other Subsidiary
Guarantors of such series in a pro rata amount, based on the net assets of each
Subsidiary Guarantor (including the Funding Subsidiary Guarantor), determined in
accordance with GAAP, subject to Section 13.03, for all payments, damages and
expenses incurred by that Funding Subsidiary Guarantor in discharging the
Company's obligations with respect to the Debt Securities of such series or any
other Subsidiary Guarantor's obligations with respect to its Subsidiary
Guarantee.
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Section 13.08. SUBORDINATION OF GUARANTEES. If Article XII is
applicable to a series of Debt Securities, then unless otherwise provided
pursuant to Section 2.03, the obligations of each of the Subsidiary Guarantors
under its Guarantee with respect to such series of Subordinated Debt Securities
pursuant to this Article XIII shall be junior and subordinated to the Senior
Indebtedness of the Subsidiary Guarantor pursuant to Article XII hereof. For the
purposes of the foregoing sentence, the Trustee and the Holders shall have the
right to receive and/or retain payments or distributions by or on behalf of any
of such Subsidiary Guarantor only at such time as they may receive and/or retain
payments in respect of such series of Subordinated Debt Securities pursuant to
this Indenture, including Article XII hereof.
ARTICLE XIV
MISCELLANEOUS PROVISIONS
Section 14.01. SUCCESSORS AND ASSIGNS OF COMPANY BOUND BY INDENTURE.
All the covenants, stipulations, promises and agreements in this Indenture
contained by or in behalf of the Company or the Trustee shall bind its
successors and assigns, whether so expressed or not.
Section 14.02. ACTS OF BOARD, COMMITTEE OR OFFICER OF SUCCESSOR COMPANY
VALID. Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
like board, committee or officer of any Successor Company.
Section 14.03. REQUIRED NOTICES OR DEMANDS. Except as otherwise
expressly provided in this Indenture, any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the Holders to or on the Company may be given or served by
being deposited postage prepaid in a post office letter box in the United States
addressed (until another address is filed by the Company with the Trustee) as
follows: Range Resources Corporation, 500 Throckmorton Street, Fort Worth, Texas
76102, Attention: Chief Financial Officer. Except as otherwise expressly
provided in this Indenture, any notice, direction, request or demand by the
Company or by any Holder to or upon the Trustee may be given or made, for all
purposes, by being deposited postage prepaid in a post office letter box in the
United States addressed to the corporate trust office of the Trustee initially
at ________________________; Attention: Corporate Trust Trustee Administration.
The Company or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.
Any notice required or permitted to a Registered Holder by the Company
or the Trustee pursuant to the provisions of this Indenture shall be deemed to
be properly mailed by being deposited postage prepaid in a post office letter
box in the United States addressed to such Holder at the address of such Holder
as shown on the Debt Security Register. Any report pursuant to Section 313 of
the Trust Indenture Act shall be transmitted in compliance with subsection (c)
therein.
Any notice required or permitted to a Bearer Holder by the Company or
the Trustee pursuant to this Indenture shall be deemed to be properly given if
published on two separate business days in
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an Authorized Newspaper or Newspapers in such Place or Places of Payment
specified pursuant to Section 2.03, the first such publication to be not earlier
than the earliest date and not later than two business days prior to the latest
date prescribed for the giving of such notice. Notwithstanding the foregoing,
any notice to Holders of Floating Rate Debt Securities regarding the
determination of a periodic rate of interest, if such notice is required
pursuant to Section 2.03, shall be sufficiently given if given in the manner
specified pursuant to Section 2.03.
In the event of suspension of regular mail service or by reason of any
other cause it shall be impracticable to give notice by mail, then such
notification as shall be given with the approval of the Trustee shall constitute
sufficient notice for every purpose hereunder.
In the event of suspension of publication of any Authorized Newspaper
or by reason of any other cause it shall be impracticable to give notice by
publication, then such notification as shall be given with the approval of the
Trustee shall constitute sufficient notice for every purpose hereunder.
Failure to mail a notice or communication to a Holder or any defect in
it or any defect in any notice by publication as to a Holder shall not affect
the sufficiency of such notice with respect to other Holders. If a notice or
communication is mailed or published in the manner provided above, it is
conclusively presumed duly given.
Section 14.04. INDENTURE AND DEBT SECURITIES TO BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. This Indenture, each Debt
Security and each Coupon and Subsidiary Guarantee shall be deemed to be New York
contracts, and for all purposes shall be construed in accordance with the laws
of said State (without reference to principles of conflicts of law).
Section 14.05. OFFICERS' CERTIFICATE AND OPINION OF COUNSEL TO BE
FURNISHED UPON APPLICATION OR DEMAND BY THE COMPANY. Upon any application or
demand by the Company to the Trustee to take any action under any of the
provisions of this Indenture, the Company shall furnish to the Trustee an
Officers' Certificate stating that all conditions precedent 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 have been complied with, except that in the case of any such
application or demand as to which the furnishing of such document is
specifically required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.
Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include (a) a statement that the Person
making such certificate or opinion has read such covenant or condition, (b) a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based, (c) a statement that, in the opinion of such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with and (d) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.
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Section 14.06. PAYMENTS DUE ON LEGAL HOLIDAYS. In any case where the
date of maturity of interest on or principal of and premium, if any, on the Debt
Securities of a series or the date fixed for redemption or repayment of any Debt
Security or the making of any sinking fund payment shall not be a business day
at any Place of Payment for the Debt Securities of such series, then payment of
interest or principal and premium, if any, or the making of such sinking fund
payment need not be made on such date at such Place of Payment, 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 the date of maturity or the date fixed for redemption,
and no interest shall accrue for the period after such date. If a record date is
not a business day, the record date shall not be affected.
Section 14.07. PROVISIONS REQUIRED BY TRUST INDENTURE ACT TO CONTROL.
If and to the extent that any provision of this Indenture limits, qualifies or
conflicts with another provision included in this Indenture which is required to
be included in this Indenture by any of Sections 310 to 318, inclusive, of the
Trust Indenture Act, such required provision shall control.
Section 14.08. COMPUTATION OF INTEREST ON DEBT SECURITIES. Interest, if
any, on the Debt Securities shall be computed on the basis of a 360-day year of
twelve 30-day months, except as may otherwise be provided pursuant to Section
2.03.
Section 14.09. RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR. The
Trustee may make reasonable rules for action by or a meeting of Holders. The
Registrar and any paying agent may make reasonable rules for their functions.
Section 14.10. NO RECOURSE AGAINST OTHERS. An incorporator or any past,
present or future director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under
the Debt Securities, the Coupons or this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a
Debt Security or Coupon, each Holder shall waive and release all such liability.
The waiver and release shall be part of the consideration for the issue of the
Debt Securities and Coupons.
Section 14.11. SEVERABILITY. In case any provision in this Indenture,
the Debt Securities or the Coupons 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 14.12. EFFECT OF HEADINGS. The article and section headings
herein and in the Table of Contents are for convenience only and shall not
affect the construction hereof.
Section 14.13. INDENTURE MAY BE EXECUTED IN COUNTERPARTS. This
Indenture may be executed in any number of counterparts, each of which shall be
an original; but such counterparts shall together constitute but one and the
same instrument.
The Trustee hereby accepts the trusts in this Indenture upon the terms
and conditions herein set forth.
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly signed as of the date first written above.
RANGE RESOURCES CORPORATION,
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
, as Trustee
--------------------------
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
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1
EXHIBIT 5.1
[VINSON & ELKINS L.L.P. LETTERHEAD]
April 22, 1999
(214) 220-7700 (214) 220-7753
Range Resources Corporation
500 Throckmorton Street
Fort Worth, Texas 76102
Range Resources Corporation
Registration Statement on Form S-3
Debt Securities
Common Stock, par value $.01 per share
Preferred Stock, par value $1.00 per share
Depositary Shares
Warrants
Guarantees of Debt Securities
Ladies and Gentlemen:
We have acted as counsel for Range Resources Corporation, a Delaware
corporation (the "Company"), in connection with the registration under the
Securities Act of 1933 (the "Securities Act"), on a Registration Statement on
Form S-3 (the "Registration Statement") of the offer and sale from time to time
pursuant to Rule 415 under the Securities Act of the following securities for an
aggregate initial offering price not to exceed $125,000,000: (i) debt securities
of the Company ("Debt Securities"); (ii) shares of common stock, par value $.01
per share, of the Company ("Common Stock"); (iii) shares of preferred stock, par
value $1.00 per share, of the Company ("Preferred Stock"); (iv) depositary
shares representing fractional interests in Preferred Stock ("Depositary
Shares");(v) warrants to purchase Debt Securities, Preferred Stock or Common
Stock (the "Warrants"); and (vi) guarantees of Debt Securities (the "Guarantees"
and, together with the Debt Securities, Preferred Stock, Depositary Shares,
Common Stock and Warrants, the "Securities").
For purposes of rendering the opinions contained in this letter, we
have reviewed those agreements, records and documents as we have deemed relevant
in order to render the opinions set forth herein, including but not limited to
(a) the Certificate of Incorporation and the Bylaws of the Company, (b) the
Certificate of Incorporation and the Bylaws of the subsidiaries of the Company
that are listed on the signature pages of the Registration Statement (the
"Subsidiaries Guarantors"), and
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Range Resources Corporation
April 22, 1999
Page 2
(c) the Indenture in the form of Exhibit 4.2 to the Registration Statement to be
executed by the Company and the trustee (the "Indenture"), pursuant to which
Debt Securities may be issued.
As to certain questions of fact material to our opinions that we have
not independently established, we have relied upon certificates from officers of
the Company and the Subsidiary Guarantors and upon certificates of public
officials.
In rendering the following opinions, we have assumed (a) all
information contained in all documents reviewed by us is true and correct, (b)
the genuineness of all signatures on all documents reviewed by us, (c) the
authenticity and completeness of all documents submitted to us as originals, (d)
the conformity to authentic originals of all documents submitted to us as
certified or photostatic copies, (e) each natural person signing any document
reviewed by us had the legal capacity to do so, and (f) each person signing in a
representative capacity any document reviewed by us had authority to sign in
such capacity.
Based on the foregoing, and subject to the assumptions, exceptions and
qualifications stated below, we are of the opinion that:
1. With respect to Debt Securities to be issued under the Indenture,
when (a) the Indenture has been duly authorized and validly executed and
delivered by the Company to the trustee, (b) the Indenture has been duly
qualified under the Trust Indenture Act of 1939, (c) the Company's Board of
Directors or, to the extent permitted by Section 141(c) of the General
Corporation Law of the State of Delaware, a duly constituted and acting
committee thereof (such Board of Directors or committee being hereinafter
referred to as the "Board") has taken all necessary corporate action to approve
the issuance and terms of such Debt Securities, the terms of the offering
thereof and related matters, and (d) such Debt Securities have been duly
executed, authenticated, issued and delivered in accordance with the provisions
of the Indenture and the applicable definitive purchase, underwriting or similar
agreement approved by the Board upon payment of the consideration therefor
provided for therein, such Debt Securities will be legally issued and will
constitute valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms.
2. With respect to shares of Common Stock, when both (a) the Board has
taken all necessary corporate action to approve the issuance of and the terms of
the offering of the shares of Common Stock and related matters and (b)
certificates representing the shares of Common Stock have been duly executed,
countersigned, registered and delivered either (i) in accordance with the
applicable definitive purchase, underwriting or similar agreement approved by
the Company's Board upon payment of the consideration therefor (not less than
the par value of the Common Stock) provided for therein or (ii) upon conversion
or exercise of any other Security, in accordance with the terms of such Security
or the instrument governing such Security providing for such conversion or
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Range Resources Corporation
April 22, 1999
Page 3
exercise as approved by the Board, for the consideration approved by the Board
(not less than the par value of the Common Stock), then the shares of Common
Stock will be legally issued, fully paid and nonassessable.
3. With respect to shares of Preferred Stock, when both (a) the Board
has taken all necessary corporate action to approve the issuance and terms of
the shares of Preferred Stock, the terms of the offering thereof, and related
matters, including the adoption of a Certificate of Designation relating to such
Preferred Stock (a "Certificate") and the filing of the Certificate with the
Secretary of State of the State of Delaware, and (b) certificates representing
the shares of Preferred Stock have been duly executed, countersigned, registered
and delivered either (i) in accordance with the applicable definitive purchase,
underwriting or similar agreement approved by the Board upon payment of the
consideration therefor (not less than the par value of the Preferred Stock)
provided for therein or (ii) upon conversion or exercise of any other Security,
in accordance with the terms of such Security or the instrument governing such
Security providing for such conversion or exercise as approved by the Board, for
the consideration approved by the Board (not less than the par value of the
Preferred Stock), then the shares of Preferred Stock will be legally issued,
fully paid and non assessable.
4. With respect to Depositary Shares, when (a) the Board has taken all
necessary corporate action to approve the issuance and terms of the Depositary
Shares, the terms of the offering thereof, and related matters, including the
adoption of a Certificate relating to the Preferred Stock underlying such
Depositary Shares and the filing of the Certificate with the Secretary of State
of the State of Delaware, (b) the Depositary Agreement or Agreements relating to
the Depositary Shares and the related Depositary Receipts have been duly
authorized and validly executed and delivered by the Company and the Depositary
appointed by the Company, (c) the shares of Preferred Stock underlying such
Depositary Shares have been deposited with a bank or trust company (which meets
the requirements for the Depositary forth in the Registration Statement) under
the applicable Depositary Agreements, and (d) the Depositary Receipts
representing the Depositary Shares have been duly executed, countersigned,
registered and delivered in accordance with the appropriate Depositary Agreement
and the applicable definitive purchase, underwriting or similar agreements
approved by the Board upon payment of the consideration therefore provided for
therein, the Depositary Shares will be legally issued.
5. With respect to the Warrants, when (a) the Board has taken all
necessary corporate action to approve the creation of and the issuance and terms
of the Warrants, the terms of the offering thereof, and related matters (b) the
warrant agreement or agreements relating to the Warrants have been duly
authorized and validly executed and delivered by the Company and the warrant
agent appointed by the Company, and (c) the Warrants or certificates
representing the Warrants have been duly executed, countersigned, registered and
delivered in accordance with the appropriate warrant agreement or agreements and
the applicable definitive purchase, underwriting or similar agreement
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Range Resources Corporation
April 22, 1999
Page 4
approved by the Company's Board upon payment of the consideration therefor
provided for therein, the Warrants will be legally issued.
6. With respect to Guarantees, when (a) the Indenture or an appropriate
supplemental indenture, if any, has been duly authorized and validly executed
and delivered by a Subsidiary Guarantor to the Trustee, (b) such Subsidiary
Guarantor's Board of Directors has taken all necessary corporate action to
approve the issuance and terms of such Guarantees, the terms of the offering
thereof and related matters, (c) the related Debt Securities have been properly
issued as contemplated in paragraph 1 of this opinion, and (d) the Subsidiary
Guarantees have been duly executed, issued and delivered in accordance with the
provisions of the Indenture (if applicable) and the applicable definitive
purchase, underwriting or similar agreement approved by such Subsidiary
Guarantor's Board of Directors upon the payment of the consideration therefor
provided for therein, such Subsidiary Guarantees will be legally enforceable
against the Guarantor in accordance with their terms.
The opinions expressed above are subject in all respects to the
following assumption, exceptions and qualifications:
a. We have assumed that (a) the Registration Statement and any
amendments thereto (including post-effective amendments) will have become
effective and comply with all applicable laws; (b) the Registration Statement
will be effective and will comply with all applicable laws at the time the
Securities are offered or issued as contemplated by the Registration Statement
(if such offering or issuance requires the delivery of a prospectus under the
Securities Act or pursuant to any other law); (c) a Prospectus Supplement will
have been prepared and filed with the Securities and Exchange Commission
describing the Securities offered thereby and will comply with all applicable
laws; (d) all Securities will be issued and sold in compliance with applicable
federal and state securities laws and in the manner stated in the Registration
Statement and the appropriate Prospectus Supplement; (e) a definitive purchase,
underwriting or similar agreement with respect to any Securities offered or
issued will have been duly authorized and validly executed and delivered by the
Company and the other parties thereto; and (f) any Securities issuable upon
conversion, exchange or exercise of any Security being offered or issued will be
duly authorized, created and, if appropriate, reserved for issuance upon such
conversion, exchange or exercise.
b. In rendering the opinions in paragraph 1 and 6, we have assumed that
the trustee is or, at the time the Indenture is signed, will be qualified to act
as trustee under the Indenture and that the trustee has or will have duly
executed and delivered the Indenture.
c. The enforceability of the Indenture and the Subsidiary Guarantees
and provisions thereof may be limited by bankruptcy, insolvency, reorganization,
fraudulent transfer, moratorium or other similar laws now or hereinafter in
effect relating to or affecting enforcement of creditors'
5
Range Resources Corporation
April 22, 1999
Page 5
rights generally and by general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law). Such principles
or equity include, without limitation, concepts of materiality, reasonableness,
good faith and fair dealing, and also to the possible unavailability of specific
performance or injunctive relief.
d. We express no opinion with respect to (a) the enforceability of
provisions in the Indenture, Subsidiary Guarantees, or any other agreement or
instrument with respect to delay or omission of enforcement of rights or
remedies, or waivers of notices or defenses, or waivers of benefits of, or other
rights that cannot be effectively waived under, applicable laws; (b) the
enforceability of indemnification provisions to the extent they purport to
relate to liabilities resulting from or based upon negligence or any violation
of federal or state securities or blue sky laws or (c) the enforceability of
Sections 2.18, 11.07 and 14.11 of the Indenture.
e. We note that the Indenture by its terms purports to be governed by
the laws of the State of New York and that the terms of the Warrants and
Guarantees, when determined, may be governed by the laws of a jurisdiction other
than the State of Texas or other than the General Corporation Law of the State
of Delaware. While we express no opinion with respect to the laws of the State
of New York or such other jurisdictions in rendering these opinions, we have
assumed that the internal laws of the State of New York and such other
jurisdictions are the same as the internal laws of the State of Texas. We have
not conducted any analysis to determine whether that assumption is correct.
f. The opinions expressed in this letter are limited to the laws of the
State of Texas, the General Corporation Law of the State of Delaware, and the
federal laws of the United States of America.
We consent to the filing of this opinion of counsel as Exhibit 5.1 to
the Registration Statement. We also consent to the reference to this firm under
the heading "Legal Opinions" in the Prospectus forming a part of the
Registration Statement. In giving this consent, we do not admit that this firm
is in the category of persons whose consent is required under Section 7 of the
Securities Act or the rules and regulations of the Securities and Exchange
Commission promulgated thereunder.
This opinion is rendered on the date hereof and we disclaim any duty to
advise you regarding any changes in the matters addressed herein.
Very truly yours,
/s/ VINSON & ELKINS L.L.P.
1
EXHIBIT 12.1
RANGE RESOURCES CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO
FIXED CHARGES AND PREFERRED DIVIDENDS
(IN THOUSANDS)
Year Ended December 31,
--------------------------------------------------------------------------
Earnings: 1994 1995 1996 1997 1998
Income before taxes $2,758 $6,172 $19,449 $(35,163) $(229,618)
Interest expense 2,807 5,584 7,487 27,175 42,189
----- ----- ------ ------ -------
Earnings 5,565 11,756 26,936 (7,988) (187,429)
Fixed charges
Interest expense 2,807 5,584 7,487 27,175 42,189
Earning-to-fixed charges 2.0x 2.1x 3.6x (a) (a)
Earnings-to-fixed charges and
preferred stock dividends
Earnings:
Income before taxes $2,758 $6,172 $19,449 $(35,163) $(229,618)
Interest expense 2,807 5,584 7,487 27,175 42,189
----- ----- ----- ------ -------
Earnings 5,565 11,756 26,936 (7,988) (187,429)
Fixed charges and preferred stock
dividends
Interest expense 2,807 5,584 7,487 27,175 42,189
Preferred stock dividends 375 731 2,454 2,334 2,334
----- ----- ----- ------ ------
3,182 6,315 9,941 29,509 44,523
Earnings-to-fixed charges and preferred
stock dividends 1.7x 1.9x 2.7x (a) (a)
(a) The ratio indicates a less than one-to-one coverage because the
earnings were inadequate to cover the fixed charges for the period. Our
historical earnings for the years ended December 31, 1997 and 1998 were
insufficient to cover our fixed charges. The amounts of the
deficiencies were $35.2 million and $229.6 million in 1997 and 1998,
respectively, for the ratio of earnings to fixed charges and $37.5
million and $232.0 million, respectively, for the ratio of earnings to
fixed charges and preferred stock dividends.
1
EXHIBIT 23.1
ARTHUR ANDERSEN LLP
Arthur Andersen LLP
Suite 1800
200 Public Square
Cleveland, OH 44114
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use of our
report (and to all reference to our Firm) incorporated by reference in this
registration statement.
ARTHUR ANDERSEN LLP
Cleveland, Ohio
April 19, 1999
