Registration No. 333-
As filed with the Securities and Exchange Commission on September 4, 2009
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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The Procter & Gamble Company
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Procter & Gamble International Funding SCA
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(Exact Name of Registrant as Specified in Its Charter)
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(Exact Name of Registrant as Specified in Its Charter)
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Ohio
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Luxembourg
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(State or Other Jurisdiction of Incorporation or Organization)
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(State or Other Jurisdiction of Incorporation or Organization)
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31-0411980
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Not Applicable
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(I.R.S. Employer Identification No.)
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(I.R.S. Employer Identification No.)
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One Procter & Gamble Plaza, Cincinnati, Ohio 45202
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26, boulevard Royal, L-2449 Luxembourg,
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(513) 983-1100
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00-352-22-99-99-5241
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(Address, Including Zip Code, and Telephone Number,
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(Address, Including Zip Code, and Telephone Number,
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Including Area Code, of Registrants Principal Executive Offices)
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Including Area Code, of Registrants Principal Executive Offices)
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Steven W. Jemison, Secretary
The Procter & Gamble Company
One Procter & Gamble Plaza, Cincinnati, Ohio 45202
(513) 983-7854
(Name, address, including zip code, and telephone number,
Including area code, of agent for service)
Copies to:
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Valerie Ford Jacob, Esq.
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Susan S. Whaley, Esq.
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Daniel J. Bursky, Esq.
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The Procter & Gamble Company
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Fried, Frank, Harris, Shriver & Jacobson LLP
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One Procter & Gamble Plaza
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One New York Plaza
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Cincinnati, Ohio 45202
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New York, New York 10004
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(513) 983-7695
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(212) 859-8000
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Approximate date of commencement of proposed sale to the public:
From time to time after the
effective date of this registration statement.
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.
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If this Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering.
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If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
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If this Form is a registration statement pursuant to General Instruction I.D. or a
post-effective amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box.
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If this Form is a post-effective amendment to a registration statement filed pursuant to
General Instruction I.D. filed to register additional securities or additional classes of
securities pursuant to Rule 413(b) under the Securities Act, check the following box.
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large
accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the
Exchange Act. (Check one):
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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(Do not check if a smaller reporting company)
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CALCULATION OF REGISTRATION FEE
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Proposed
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Maximum
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Proposed
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Amount of
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Title of Each Class of Securities To Be
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Amount To Be
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Offering Price
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Maximum
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Registration
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Registered
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Registered
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Per Unit
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Offering Price
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Fee
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The Procter & Gamble Company:
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Debt Securities
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(1)
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(1)
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(1)
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(1)
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Guarantees with respect to Debt Securities
of Procter & Gamble International Funding
SCA (2) (3)
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(1)
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(1)
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(1)
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(1)
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Procter & Gamble International Funding SCA:
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Debt Securities
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(1)
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(1)
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(1)
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(1)
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(1)
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An indeterminate aggregate initial offering price or number of the securities of each
identified class is being registered as may from time to time be offered at indeterminate
prices. In accordance with Rules 456(b) and 457(r), the Registrants are deferring payment of
all of the registration fees.
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(2)
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The Procter & Gamble Company will fully and unconditionally guarantee on a senior unsecured
basis all payment of principal, premium, if any, and interest obligations with respect to the
debt securities of Procter & Gamble International Funding SCA.
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(3)
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No separate filing fee is required pursuant to Rule 457(n) under the Securities Act.
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PROSPECTUS
The Procter & Gamble Company
Debt Securities
Procter & Gamble International Funding SCA
Debt Securities
fully and unconditionally guaranteed by
The Procter & Gamble Company
The Procter & Gamble Company may, from time to time, sell debt securities in one or more
offerings pursuant to this prospectus. Procter & Gamble International Funding SCA may, from time to
time, sell in one or more offerings pursuant to this prospectus debt securities fully and
unconditionally guaranteed by The Procter & Gamble Company. The specific terms of any securities
to be offered will be provided in supplements to this prospectus. You should read this prospectus
and any prospectus supplement carefully before you invest.
This prospectus may not be used to offer and sell securities unless accompanied by a
prospectus supplement.
The debt securities may be sold directly or through agents, underwriters or dealers.
Investing in debt securities involves risks. You should consider the risk factors described
in any accompanying prospectus supplement or any documents incorporated by reference.
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.
This prospectus is dated September 4, 2009.
TABLE OF CONTENTS
This prospectus is part of a registration statement that we filed with the SEC utilizing a
shelf registration process. Under this shelf process, The Procter & Gamble Company may, from time
to time, sell in one or more offerings, debt securities. In addition, Procter & Gamble
International Funding SCA may, from time to time, sell in one or more offerings, debt securities
fully and unconditionally guaranteed by The Procter & Gamble Company.
This prospectus provides you with a general description of the securities that may be offered.
Each time securities are sold, a prospectus supplement will be provided that will contain specific
information about the terms of that offering, including the specific amounts, prices and terms of
the securities offered. The prospectus supplement may also add, update or change information
contained in this prospectus.
You should carefully read both this prospectus and any prospectus supplement together with
additional information described below under the heading Where You Can Find More Information.
In this prospectus supplement and the accompanying prospectus, unless we otherwise specify or
the context otherwise requires, references to:
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Procter & Gamble, P&G, the Company, we, us, and our are, except as otherwise indicated
in the section captioned Description of PGIF Debt Securities, to The Procter & Gamble Company and
its subsidiaries;
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PGIF are to Procter & Gamble International Funding SCA, an indirect wholly owned finance
subsidiary of Procter & Gamble;
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fiscal followed by a specific year are to our fiscal year ended or ending June 30 of that year; and
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dollars, $, and U.S.$ are to United States dollars.
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THE PROCTER & GAMBLE COMPANY
The Procter & Gamble Company was incorporated in Ohio in 1905, having been built from a
business founded in 1837 by William Procter and James Gamble. Today, the Company manufactures and
markets a broad range of consumer products in many countries throughout the world. Our principal
executive offices are located at One Procter & Gamble Plaza, Cincinnati, Ohio 45202, and our
telephone number is (513) 983-1100.
PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
Procter & Gamble International Funding SCA, a Luxembourg
société en commandite par actions
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having its registered office at 26, boulevard Royal, L-2449 Luxembourg, registered with the
Luxembourg trade and companies register under number B 114 825, is an indirect wholly owned finance
subsidiary of Procter & Gamble, which conducts no independent operations other than its financing
activities. PGIFs telephone number is 00-352-22-99-99-5241.
RECENT DEVELOPMENTS
On August 24, 2009, we announced an agreement for the sale of P&Gs global pharmaceuticals
business to Warner Chilcott for an up-front cash payment of $3.1 billion, subject to adjustment per
the agreement between the companies. P&Gs pharmaceuticals
business had revenues of approximately $2.3 billion for the year ended June 30, 2009. The
completion of the transaction is subject to certain regulatory approvals and other conditions set
forth in the agreement.
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FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact included or incorporated by reference
in this prospectus, are forward-looking statements, as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such statements are based on financial data, market
assumptions and business plans available only as of the time the statements are made, which may
become out of date or incomplete. Neither we, nor PGIF assume any obligation to update any
forward-looking statement as a result of new information, future events or other factors.
Forward-looking statements are inherently uncertain, and investors must recognize that events could
differ significantly from our expectations. In addition to the risks and uncertainties noted in
this prospectus and the documents incorporated herein by reference, there are certain factors that
could cause actual results to differ materially from those anticipated by some of the statements
made. These include: (1) the ability to achieve business plans, including growing existing sales
and volume profitably despite high levels of competitive activity, especially with respect to the
product categories and geographical markets (including developing markets) in which the Company has
chosen to focus; (2) the ability to successfully manage ongoing acquisition and divestiture
activities to achieve the cost and growth synergies in accordance with the stated goals of these
transactions without impacting the delivery of base business objectives; (3) the ability to
successfully manage ongoing organizational changes designed to support the Companys growth
strategies, while successfully identifying, developing and retaining key employees; (4) the ability
to manage and maintain key customer relationships; (5) the ability to maintain key manufacturing
and supply sources (including sole supplier and plant manufacturing sources); (6) the ability to
successfully manage regulatory, tax and legal requirements and matters (including product
liability, patent, intellectual property, competition law matters, and tax policy), and to resolve
pending matters within current estimates; (7) the ability to successfully implement, achieve and
sustain cost improvement plans in manufacturing and overhead areas, including the Companys
outsourcing projects; (8) the ability to successfully manage currency (including currency issues in
certain countries, such as Venezuela, China and India), debt, interest rate and commodity cost
exposures and significant credit or liquidity issues; (9) the ability to manage continued global
political and/or economic uncertainty and disruptions, especially in the Companys significant
geographical markets, as well as any political and/or economic uncertainty and disruptions due to a
global or regional credit crisis or terrorist and other hostile activities; (10) the ability to
successfully manage competitive factors, including prices, promotional incentives and trade terms
for products; (11) the ability to obtain patents and respond to technological advances attained by
competitors and patents granted to competitors; (12) the ability to successfully manage increases
in the prices of raw materials used to make the Companys products; (13) the ability to stay close
to consumers in an era of increased media fragmentation; (14) the ability to stay on the leading
edge of innovation and maintain a positive reputation on our brands; and (15) the ability to rely
on and maintain key information technology systems. For additional information concerning factors
that could cause actual results to materially differ from those projected herein, please refer to
our most recent 10-K, 10-Q and 8-K reports incorporated by reference herein.
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USE OF PROCEEDS
Unless otherwise indicated in the applicable prospectus supplement, we will use the net
proceeds from the sale of securities offered by this prospectus by Procter & Gamble or PGIF for
general corporate purposes.
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DESCRIPTION OF PROCTER & GAMBLE DEBT SECURITIES
This section describes the general terms and provisions of any debt securities that we may
offer in the future. A prospectus supplement relating to a particular series of debt securities
will describe the specific terms of that particular series and the extent to which the general
terms and provisions apply to that particular series.
General
We
expect to issue the debt securities under an indenture, dated as of September 3, 2009,
between us and Deutsche Bank Trust Company Americas, as trustee. We have filed a copy of the
indenture as an exhibit to the registration statement of which this prospectus forms a part. The
following summaries of various provisions of the indenture are not complete. You should read the
indenture for a more complete understanding of the provisions described in this section. The
indenture itself, not this description or the description in the prospectus supplement, defines
your rights as a holder of debt securities. Parenthetical section and article numbers in this
description refer to sections and articles in the indenture.
The debt securities will be unsecured obligations of Procter & Gamble. The indenture does not
limit the amount of debt securities that we may issue under the indenture. The indenture provides
that we may issue debt securities from time to time in one or more series.
Terms of a Particular Series
Each prospectus supplement relating to a particular series of debt securities will include
specific information relating to the offering. This information will include some or all of the
following terms of the debt securities of the series:
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the title of the debt securities;
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any limit on the total principal amount of the debt securities;
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the date or dates on which the debt securities will mature;
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the rate or rates, which may be fixed or variable, at which the debt
securities will bear interest, if any, and the date or dates from
which interest will accrue;
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the dates on which interest, if any, will be payable and the regular record dates for interest payments;
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any mandatory or optional sinking fund or similar provisions;
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any optional or mandatory redemption provisions, including the price
at which, the periods within which, and the terms and conditions upon
which we may redeem or repurchase the debt securities;
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the terms and conditions upon which the debt securities may be
repayable prior to final maturity at the option of the holder;
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the portion of the principal amount of the debt securities that will
be payable upon acceleration of maturity, if other than the entire
principal amount;
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provisions allowing us to defease the debt securities or certain
restrictive covenants and certain events of default under the
indenture;
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if other than in United States dollars, the currency or currencies,
including composite currencies, of
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payment of principal of and
premium, if any, and interest on the debt securities;
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the U.S. federal income tax consequences and other special
considerations applicable to any debt securities denominated in a
currency or currencies other than United States dollars;
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any index used to determine the amount of payments of principal of and
premium, if any, and interest, if any, on the debt securities;
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if the debt securities will be issuable only in the form of a global
security as described below, the depository or its nominee with
respect to the debt securities and the circumstances under which the
global security may be registered for transfer or exchange in the name
of a person other than the depository or its nominee;
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any deletions, modifications of or additions to the events of default
or covenants contained in the indenture; and
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any other terms of the debt securities. (Section 301)
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Payment of Principal, Premium and Interest
Unless otherwise indicated in the prospectus supplement, principal of and premium, if any, and
interest, if any, on the debt securities will be payable, and the debt securities will be
exchangeable and transfers of debt securities will be registrable, at the office of the trustee at
60 Wall Street, MSNYC60-2710, New York, New York 10005. At our option, however, payment of interest
may be made by:
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check mailed to the address of the person entitled thereto in whose
name the debt security is registered at the close of business on the
regular record date at the address in the security register; or
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wire transfer of immediately available funds to an account specified
in writing to us and the trustee from any holder of debt securities
prior to the relevant record date. (Sections 301, 305 and 1002)
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Any payment of principal and premium, if any, and interest, if any, required to be made on a
day that is not a business day need not be made on that day, but may be made on the next succeeding
business day with the same force and effect as if made on the non-business day. No interest will
accrue for the period from and after the non-business day. (Section 113)
Unless otherwise indicated in the prospectus supplement relating to the particular series of
debt securities, we will issue the debt securities only in fully registered form, without coupons,
in denominations of $2,000 or any multiple of $1,000. (Section 302) We will not require a service
charge for any transfer or exchange of the debt securities, but we may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with any transfer or
exchange. (Section 305)
Original Issue Discount Securities
Debt securities may be issued under the indenture as original issue discount securities to be
offered and sold at a substantial discount from their stated principal amount. An original issue
discount security under the indenture includes any security which provides for an amount less than
its principal amount to be due and payable upon a declaration of acceleration upon the occurrence
of an event of default. In addition, under regulations of the U.S. Treasury Department it is
possible that debt securities which are offered and sold at their stated principal amount
would, under certain circumstances, be treated as issued at an original issue discount for
U.S. federal income tax purposes, and special rules may apply to debt securities which are
considered to be issued as investment units. U.S. federal income tax consequences and other
special considerations applicable to any such original issue discount securities, or other debt
securities treated as issued at an original issue discount, and to investment units will be
described in the applicable prospectus supplement.
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Book-Entry Debt Securities
The debt securities of a series may be issued in the form of one or more global securities
that will be deposited with a depository or its nominee identified in the prospectus supplement
relating to the debt securities. In this case, one or more global securities will be issued in a
denomination or total denominations equal to the portion of the total principal amount of
outstanding debt securities to be represented by the global security or securities. Unless and
until it is exchanged in whole or in part for debt securities in definitive registered form, a
global security may not be registered for transfer or exchange except as a whole by the depository
for the global security to a nominee of the depository and except in the circumstances described in
the prospectus supplement relating to the debt securities. We will describe in the prospectus
supplement the terms of any depositary arrangement and the rights and limitations of owners of
beneficial interests in any global debt security. (Sections 204 and 305)
Restrictive Covenants
In this section we describe the principal covenants that will apply to the debt securities
unless the prospectus supplement for a particular series of debt securities states otherwise. We
make use of several defined terms in this section. The definitions for these terms are located at
the end of this section under Definitions Applicable to Covenants.
Restrictions on Secured Debt
If we or any Domestic Subsidiary shall incur, issue, assume or guarantee any Debt secured by a
Mortgage on any Principal Domestic Manufacturing Property of ours or any Domestic Subsidiarys or on any shares of stock of any Domestic
Subsidiary that owns a Principal Domestic Manufacturing Property, we will secure, or cause such
Domestic Subsidiary to secure, the debt securities then outstanding equally and ratably with (or
prior to) such Debt. However, we will not be restricted by this covenant if, after giving effect to
the particular Debt so secured the total amount of all Debt so secured, together with all
Attributable Debt in respect of sale and leaseback transactions involving Principal Domestic
Manufacturing Properties, would not exceed 15% of our and our consolidated subsidiaries
Consolidated Net Tangible Assets.
In addition, the restriction will not apply to, and there shall be excluded in computing
secured Debt for the purpose of the restriction, Debt secured by
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with respect to any series of debt securities, Mortgages existing on
the date of the original issuance of the debt securities of such
series;
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(2)
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Mortgages on property of, or on any shares of stock of, any
corporation existing at the time the corporation becomes a Domestic
Subsidiary or at the time it is merged into or consolidated with us or
a Domestic Subsidiary;
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(3)
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Mortgages in favor of us or a Domestic Subsidiary;
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(4)
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Mortgages in favor of U.S., State or foreign governmental bodies to
secure progress or advance payments;
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(5)
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Mortgages on property or shares of stock existing at the time of their
acquisition, including acquisition through merger or consolidation,
purchase money Mortgages and construction or improvement cost
Mortgages; and
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(6)
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any extension, renewal or refunding of any Mortgage referred to in the
immediately preceding clauses (1) through (5), inclusive. (Section
1004)
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The indenture does not restrict the incurrence of unsecured debt by us or our subsidiaries.
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Restrictions on Sales and Leasebacks
Neither we nor any Domestic Subsidiary may enter into any sale and leaseback transaction
involving any Principal Domestic Manufacturing Property, the completion of construction and
commencement of full operation of which has occurred more than 180 days prior to the transaction,
unless
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we or the Domestic Subsidiary could incur a lien on the property under
the restrictions described above under Restrictions on Secured Debt
in an amount equal to the Attributable Debt with respect to the sale
and leaseback transaction without equally and ratably securing the
debt securities then outstanding, or
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we, within 180 days, apply to either (or a combination of) the
investment in one or more other Principal Domestic Manufacturing
Properties or the retirement of our Funded Debt an amount not less
than the greater of (1) the net proceeds of the sale of the Principal
Domestic Manufacturing Property leased pursuant to such arrangement or
(2) the fair market value of the Principal Domestic Manufacturing
Property so leased, subject to credits for various voluntary
retirements of Funded Debt.
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This restriction will not apply to any sale and leaseback transaction
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between us and a Domestic Subsidiary,
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between Domestic Subsidiaries, or
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involving the taking back of a lease for a period of less than three years. (Section 1005)
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Definitions Applicable to Covenants
The term Attributable Debt means the lesser of (1) the fair market value of the Principal
Domestic Manufacturing Property sold and leased back at the time of entering into a sale and
leaseback transaction and (2) the total net amount of rent, discounted at 10% per annum compounded
annually, required to be paid during the remaining term of any lease.
The term Consolidated Net Tangible Assets means our total assets, less net goodwill and
other intangible assets, less total current liabilities, all as described on our and our
consolidated subsidiaries most recent balance sheet and calculated based on positions as reported
in our consolidated financial statements in accordance with generally accepted accounting
principles.
The term Debt means notes, bonds, debentures or other similar evidences of indebtedness for
money borrowed.
The term Domestic Subsidiary means any of our subsidiaries except a subsidiary which neither
transacts any substantial portion of its business nor regularly maintains any substantial portion
of its fixed assets within the United States or which is engaged primarily in financing our and our
subsidiaries operations outside the United States.
The term Funded Debt means Debt having a maturity of more than 12 months from its date of
creation.
The term Mortgage means pledges, mortgages and other liens.
The term Principal Domestic Manufacturing Property means any facility (together with the
land on which it is erected and fixtures comprising a part of the land) used primarily for
manufacturing or processing, located in the United States, owned or leased by us or one of our
subsidiaries and having a gross book value in excess of 1.0% of Consolidated Net Tangible Assets.
However, the term Principal Domestic Manufacturing Property does not include any facility or
portion of a facility (1) which is financed by obligations the interest on which is exempt from
U.S. federal income tax pursuant to Section 103 of the Internal Revenue Code of 1986, as amended
(or any
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predecessor or successor provision thereof), or (2) which, in the opinion of our board of
directors, is not of material importance to the total business conducted by us and our subsidiaries
as an entirety.
Events of Default
Any one of the following are events of default under the indenture with respect to debt
securities of any series:
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our failure to pay principal of or premium, if any, on any debt security of that series when due;
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(2)
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our failure to pay any interest on any debt security of that series when due, continued for 30 days;
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(3)
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our failure to deposit any sinking fund payment, when due, in respect
of any debt security of that series;
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(4)
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our failure to perform any other of our covenants in the indenture
which affects or is applicable to the debt securities of that series,
other than a covenant included in the indenture solely for the benefit
of other series of debt securities, continued for 90 days after
written notice as provided in the indenture;
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(5)
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certain events involving bankruptcy, insolvency or reorganization; and
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(6)
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any other event of default provided with respect to debt securities of that series. (Section 501)
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If an event of default with respect to outstanding debt securities of any series shall occur
and be continuing, either the trustee or the holders of at least 25% in principal amount of the
outstanding debt securities of that series may declare the principal amount (or, if the debt
securities of that series are original issue discount securities, the portion of the principal
amount as may be specified in the terms of that series) of all the debt securities of that series
to be due and payable immediately. At any time after a declaration of acceleration with respect to
debt securities of any series has been made, but before a judgment or decree based on acceleration
has been obtained, the holders of a majority in principal amount of the outstanding debt securities
of that series may, under some circumstances, rescind and annul the acceleration. (Section 502) For
information as to waiver of defaults, see the section below entitled
Modification and Waiver.
A prospectus supplement relating to each series of debt securities which are original issue
discount securities will describe the particular provisions relating to acceleration of the
maturity of a portion of the principal amount of such original issue discount securities upon the
occurrence of an event of default and its continuation.
During default, the trustee has a duty to act with the required standard of care. Otherwise,
the indenture provides that the trustee will be under no obligation to exercise any of its rights
or powers under the indenture at the request or direction of any of the holders, unless the holders
shall have offered to the trustee reasonable indemnity.
(Section 603) If the provisions for indemnification of the trustee have been satisfied, the
holders of a majority in principal amount of the outstanding debt securities of any series will
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 that series. (Section 512)
We will furnish to the trustee annually a certificate as to our compliance with all conditions
and covenants under the indenture. (Section 1007)
Defeasance
The prospectus supplement will state if any defeasance provision will apply to the debt
securities. Defeasance refers to the discharge of some or all of our obligations under the
indenture.
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Defeasance and Discharge
We will be discharged from any and all obligations in respect of the debt securities of any
series if we deposit with the trustee, in trust, money and/or U.S. government securities which
through the payment of interest and principal will provide money in an amount sufficient to pay the
principal of and premium, if any, and each installment of interest on the debt securities of the
series on the dates those payments are due and payable.
If we defease a series of debt securities, the holders of the debt securities of the series
will not be entitled to the benefits of the indenture, except for
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the rights of holders to receive from the trust funds payment of
principal, premium and interest on the debt securities,
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our obligation to register the transfer or exchange of debt securities of the series,
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our obligation to replace stolen, lost or mutilated debt securities of the series,
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our obligation to maintain paying agencies,
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our obligation to hold monies for payment in trust, and
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the rights of holders to benefit, as applicable, from the rights,
powers, trusts, duties and immunities of the trustee.
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We may defease a series of debt securities only if, among other things, we have delivered to
the Trustee an opinion of counsel to the effect that we have received from, or there has been
published by, the U.S. Internal Revenue Service a ruling to the effect that holders and beneficial
owners of the debt securities of the series will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of the deposit, defeasance and discharge and will be
subject to U.S. federal income tax on the same amount and in the same manner and at the same times
as would have been the case if the deposit, defeasance and discharge had not occurred. (Section
403)
Defeasance of Covenants and Events of Default
We may omit to comply with the covenants described above under Restrictions on Secured Debt
(Section 1004) and Restrictions on Sales and Leasebacks (Section 1005), and the failure to comply
with these covenants will not be deemed an event of default (Section 501(4)), if we deposit with
the trustee, in trust, money and/or U.S. government securities which through the payment of
interest and principal will provide money in an amount
sufficient to pay the principal of and premium, if any, and each installment of interest on
the debt securities of the series on the dates those payments are due and payable. Our obligations
under the indenture and the debt securities of the series will remain in full force and effect,
other than with respect to the defeased covenants and related events of default.
We may defease the covenants and the related events of default described above only if, among
other things, we have delivered to the trustee an opinion of counsel, who may be our employee or
counsel, to the effect that the holders and beneficial owners of the debt securities of the series
will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the
deposit and defeasance of the covenants and events of default, and the holders and beneficial
owners of the debt securities of the series will be subject to U.S. federal income tax on the same
amount and in the same manner and at the same times as would have been the case if the deposit and
defeasance had not occurred. (Section 1006)
If we choose covenant defeasance with respect to the debt securities of any series as
described above and the debt securities of the series are declared due and payable because of the
occurrence of any event of default other than the event of default described in clause (4) under
Events of Default, the amount of money and U.S. government securities on deposit with the trustee
will be sufficient to pay amounts due on the debt securities of the
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series at the time of their
stated maturity. The amount on deposit with the trustee may not be sufficient to pay amounts due on
the debt securities of the series at the time of the acceleration resulting from the event of
default. However, we will remain liable for these payments.
Modification and Waiver
Procter & Gamble and the trustee may make modifications of and amendments to the indenture if
the holders of at least a majority in principal amount of the outstanding debt securities of each
series affected by the modification or amendment consent to the modification or amendment.
However, the consent of the holder of each debt security affected will be required for any
modification or amendment that
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changes the stated maturity of the principal of, or any installment of
principal of or interest on, any debt security,
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reduces the principal amount of, or the premium, if any, or interest, if any, on, any debt security,
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reduces the amount of principal of an original issue discount security
payable upon acceleration of the maturity of the security,
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changes the place or currency of payment of principal of, or premium,
if any, or interest, if any, on, any debt security,
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impairs the right to institute suit for the enforcement of any payment on any debt security, or
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reduces the percentage in principal amount of debt securities of any
series necessary to modify or amend the indenture or to waive
compliance with various provisions of the indenture or to waive
various defaults. (Section 902)
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Without the consent of any holder of debt securities, we and the trustee may make
modifications or amendments to the indenture in order to
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evidence the succession of another person to us and the assumption by
that person of the covenants in the indenture,
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add to the covenants for the benefit of the holders,
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add additional events of default,
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permit or facilitate the issuance of securities in bearer form or uncertificated form,
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add to, change, or eliminate any provision of the indenture in respect
of a series of debt securities to be created in the future,
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secure the securities as required by Restrictions on Secured Debt,
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establish the form or terms of securities of any series,
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evidence the appointment of a successor trustee, or
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cure any ambiguity, correct or supplement any provision which may be
inconsistent with another provision, or make any other provision,
provided that any action may not adversely affect the interests of
holders of debt securities in any material respect.
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10
The holders of at least a majority in principal amount of the outstanding debt securities of
any series may on behalf of the holders of all debt securities of that series waive compliance by
us with various restrictive provisions of the indenture. (Section 1008)
The holders of a majority in principal amount of the outstanding debt securities of any series
may on behalf of the holders of all debt securities of that series waive any past default with
respect to that series, except
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a default in the payment of the principal of or premium, if any, or
interest on any debt security of that series, or
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a default in respect of a provision which under the indenture cannot
be modified or amended without the consent of the holder of each
outstanding debt security of that series that would be affected.
(Section 513)
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Consolidation, Merger and Sale of Assets
If the conditions below are met, we may, without the consent of any holders of outstanding
debt securities:
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consolidate or merge with or into another entity, or
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transfer or lease our assets as an entirety to another entity.
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We have agreed that we will engage in a consolidation, merger or transfer or lease of assets
as an entirety only if
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either we are the surviving entity or the entity formed by the
consolidation or into which we are merged or which acquires or leases
our assets is a corporation, partnership, limited liability company or
trust organized and existing under the laws of any United States
jurisdiction and assumes our obligations on the debt securities and
under the indenture,
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after giving effect to the transaction no event of default would have happened and be continuing, and
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various other conditions are met. (Article Eight)
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Regarding the Trustee
Deutsche Bank Trust Company Americas is the trustee under the indenture, and also serves as
trustee under the indenture relating to the debt securities of PGIF. In addition, affiliates of
Deutsche Bank Trust Company Americas may perform various commercial banking and investment banking
services for Procter & Gamble and its subsidiaries from time to time in the ordinary course of
business.
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DESCRIPTION OF PGIF DEBT SECURITIES
This section describes the general terms and provisions of any debt securities that PGIF may
offer in the future. A prospectus supplement relating to a particular series of debt securities
will describe the specific terms of that particular series and the extent to which the general
terms and provisions apply to that particular series. In this section, references to PGIF, we,
our or us refer solely to Procter & Gamble International Funding SCA, and references to
Procter & Gamble refer to The Procter & Gamble Company.
General
We
expect to issue the debt securities under an indenture, dated as of September 3,
2009, among PGIF, as issuer, Procter & Gamble, as guarantor and Deutsche Bank Trust Company
Americas, as trustee. We have filed a copy of the indenture as an exhibit to the registration
statement of which this prospectus forms a part. The following summaries of various provisions of
the indenture are not complete. You should read the indenture for a more complete understanding of
the provisions described in this section. The indenture itself, not this description or the
description in the prospectus supplement, defines your rights as a holder of debt securities.
Parenthetical section and article numbers in this description refer to sections and articles in the
indenture.
The debt securities will be unsecured obligations of PGIF and will be fully and
unconditionally guaranteed by The Procter & Gamble Company. The indenture does not limit the amount
of debt securities that we may issue under the indenture. The indenture provides that we may issue
debt securities from time to time in one or more series.
Terms of a Particular Series
Each prospectus supplement relating to a particular series of debt securities will include
specific information relating to the offering. This information will include some or all of the
following terms of the debt securities of the series:
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the title of the debt securities;
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any limit on the total principal amount of the debt securities;
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the date or dates on which the debt securities will mature;
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the rate or rates, which may be fixed or variable, at which the debt
securities will bear interest, if any, and the date or dates from
which interest will accrue;
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the dates on which interest, if any, will be payable and the regular record dates for interest payments;
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any mandatory or optional sinking fund or similar provisions;
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any optional or mandatory redemption provisions, including the price
at which, the periods within which, and the terms and conditions upon
which we may redeem or repurchase the debt securities;
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the terms and conditions upon which the debt securities may be
repayable prior to final maturity at the option of the holder;
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the portion of the principal amount of the debt securities that will
be payable upon acceleration of maturity, if other than the entire
principal amount;
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provisions allowing us to defease the debt securities or certain
restrictive covenants and certain events of default under the
indenture;
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if other than in United States dollars, the currency or currencies,
including composite currencies, of payment of principal of and
premium, if any, and interest on the debt securities;
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the U.S. federal income tax consequences and other special
considerations applicable to any debt securities denominated in a
currency or currencies other than United States dollars;
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any index used to determine the amount of payments of principal of and
premium, if any, and interest, if any, on the debt securities;
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whether the debt securities will be guaranteed by any person and, if
so, the identity of the person and the terms and conditions upon which
the debt securities will be guaranteed;
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if the debt securities will be issuable only in the form of a global
security as described below, the depository or its nominee with
respect to the debt securities and the circumstances under which the
global security may be registered for transfer or exchange in the name
of a person other than the depository or its nominee;
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any deletions, modifications of or additions to the events of default
or covenants contained in the indenture; and
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any other terms of the debt securities. (Section 301)
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Payment of Principal, Premium and Interest
Unless otherwise indicated in the prospectus supplement, principal of and premium, if any, and
interest, if any, on the debt securities will be payable, and the debt securities will be
exchangeable and transfers of debt securities will be registrable, at the office of the trustee at
60 Wall Street, MSNYC60-2710, New York, New York 10005. At our option, however, payment of interest
may be made by:
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check mailed to the address of the person entitled thereto in whose
name the debt security is registered at the close of business on the
regular record date at the address in the security register; or
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wire transfer of immediately available funds to an account specified
in writing to us and the trustee from any holder of debt securities
prior to the relevant record date. (Sections 301, 305 and 1002)
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Any payment of principal and premium, if any, and interest, if any, required to be made on a
day that is not a business day need not be made on that day, but may be made on the next succeeding
business day with the same force and effect as if made on the non-business day. No interest will
accrue for the period from and after the non-business day. (Section 113)
Unless otherwise indicated in the prospectus supplement relating to the particular series of
debt securities, we will issue the debt securities only in fully registered form, without coupons,
in denominations of $2,000 or any multiple of $1,000. (Section 302) We will not require a service
charge for any transfer or exchange of the debt securities, but we may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with any transfer or
exchange. (Section 305)
Guarantee
Procter & Gamble will fully and unconditionally guarantee the due and punctual payment of
principal of and premium, if any, and interest on the debt securities on a senior unsecured basis,
when and as the same become due and payable, whether on a maturity date, by declaration or
acceleration, upon redemption, repurchase or otherwise, and all other obligations of PGIF under the
indenture.
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Original Issue Discount Securities
Debt securities may be issued under the indenture as original issue discount securities to be
offered and sold at a substantial discount from their stated principal amount. An original issue
discount security under the indenture includes any security which provides for an amount less than
its principal amount to be due and payable upon a declaration of acceleration upon the occurrence
of an event of default. In addition, under regulations of the U.S. Treasury Department it is
possible that debt securities which are offered and sold at their stated principal amount would,
under certain circumstances, be treated as issued at an original issue discount for federal income
tax purposes, and special rules may apply to debt securities which are considered to be issued as
investment units. Federal income tax consequences and other special considerations applicable to
any such original issue discount securities, or other debt securities treated as issued at an
original issue discount, and to investment units will be described in the applicable prospectus
supplement.
Additional Amounts
All payments made by PGIF under or with respect to the debt securities will be made free and
clear of and without withholding or deduction for or on account of any present or future taxes,
duties, levies, imposts, assessments or other governmental charges of whatever nature imposed or
levied by or on behalf of Luxembourg (or any political subdivision or taxing authority thereof or
therein) and any interest, penalties and other liabilities with respect thereto (hereinafter
collectively, Taxes) unless PGIF is required to withhold or deduct Taxes by law (including any
law or directive of the European Union) or by the interpretation or administration thereof. In the
event that PGIF is required to so withhold or deduct any amount for or on account of any Taxes from
any payment under or with respect to the debt securities PGIF will pay such additional amounts
(referred to herein as Additional Amounts) as may be necessary so that the net amount (including
Additional Amounts) received by each holder of the debt securities after such withholding or
deduction will equal the amount that such holder would have received if such Taxes had not been
required to be withheld or deducted; provided, however, that PGIF will not be required to pay any
such Additional Amounts with respect to any payment to a holder of a debt security for or on
account of:
(a) any Taxes that would not have been so imposed, deducted or withheld but for the existence of
any present or former personal or business connection between such holder or the beneficial owner
of such debt security, as the case may be, and Luxembourg (or any political subdivision or taxing
authority thereof or therein) other than the mere receipt of such payment or the ownership or
holding of such debt security;
(b) any estate, inheritance, net wealth, gift, sales, value added, transfer, stamp, excise or
personal property tax or any similar Taxes;
(c) any Taxes that are payable otherwise than by withholding or deduction from a payment to such
holder or the beneficial owner of such debt security;
(d) any Taxes imposed, deducted or withheld as a result of the failure of such holder or the
beneficial owner of such debt security to duly and timely comply with any applicable certification,
information, identification, documentation or other reporting requirements concerning the
nationality, residence, identity or connection with Luxembourg (or any political subdivision or
taxing authority thereof or therein) of such holder or the beneficial owner of such debt security,
as the case may be, or to make any valid or timely declaration or similar claim, if such compliance
or such declaration or similar claim is required by a statute, treaty, regulation or administrative
practice of Luxembourg (or any political subdivision or taxing authority thereof or therein) as a
precondition to relief or exemption from all or part of such Taxes;
(e) any Taxes which would not have been so imposed, deducted or withheld but for the presentation
of such debt security for payment on a date more than 10 days after the date on which such payment
became due and payable or the date on which payment is duly provided for, whichever occurs later;
(f) any Taxes required to be withheld pursuant to a law in effect as of the date hereof, including
any withholding under the European Council Directive 2003/48/EC or any other Directive on the
taxation of savings
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implementing the conclusions of the ECOFIN council meeting of 26th-27th
November, 2000, or any law implementing or complying with, or introduced in order to conform to,
such Directive;
(g) any Taxes required to be deducted or withheld by any paying agent from any payment in respect
of such debt security if such payment could be made without such withholding by at least one other
paying agent;
(h) any Taxes imposed on or deducted or withheld from a payment to such holder or the beneficial
owner of such debt security that is not the sole beneficial owner of such debt security or is a
fiduciary, partnership, limited liability company or other similar entity, but only to the extent
that a beneficial owner of such debt security, a beneficiary or settlor with respect to such
fiduciary or member of such partnership, limited liability company or similar entity would not have
been entitled to the payment of Additional Amounts had such beneficial owner, settlor, beneficiary
or member received directly its beneficial or distributive share of such payment; or
(i) any combination of (a), (b), (c), (d), (e), (f), (g) and (h) above.
PGIF will also make any applicable withholding or deduction and remit the full amount deducted
or withheld to the relevant taxing authority in accordance with applicable law. PGIF will furnish
to the trustee, within 30 days after the date the payment of any Taxes deducted or withheld is due
pursuant to applicable law, certified copies of tax receipts evidencing payment of such Taxes or,
if such tax receipts are not reasonably available to PGIF, such other documentation reasonably
acceptable to the trustee evidencing such payment by PGIF.
PGIF will pay any issue, registration, documentation, stamp or other similar taxes or duties
imposed by Luxembourg (or any political subdivision or taxing authority thereof or therein) in
connection with the execution, delivery, payment or performance of the indenture, the debt
securities or the guarantee and shall indemnify each holder and beneficial owner of the debt
securities for all liabilities arising from any failure to pay, or delay in paying, such taxes or
duties.
Redemption for Changes in Withholding Taxes
The debt securities also may be redeemed at the option of PGIF, in whole but not in part, at a
redemption price equal to 100% of the principal amount of the debt securities to be redeemed,
together with interest accrued and unpaid to the date fixed for redemption, at any time, on giving
not less than 30 nor more than 60 days notice (which notice shall be irrevocable), if (a) PGIF has
or will become obligated to pay Additional Amounts as a result of any change in or amendment to the
laws, treaties, regulations or rulings of Luxembourg or any political subdivision or any taxing
authority thereof or therein affecting taxation, or any change in or amendment to an official
application, interpretation, administration or enforcement of such laws, treaties, regulations or
rulings (including a holding by a court of competent jurisdiction), which change or amendment
becomes effective on or after the date specified in the prospectus supplement or (b) any action
shall have been taken by any taxing authority, or any action has been brought in a court of
competent jurisdiction, in Luxembourg or any political subdivision or taxing authority thereof or
therein, including any of those actions specified in (a) above (whether or not such action was
taken or brought with respect to PGIF) or any change, clarification, amendment, application or
interpretation of such laws, treaties, regulations or rulings shall be officially proposed, in any
case on or after the date specified in the prospectus supplement, which results in a substantial
likelihood that PGIF will be required to pay Additional Amounts on the next interest payment date;
provided, however, that no such notice of redemption shall be given earlier than 90 days prior to
the earliest date on which PGIF would be, in the case of a redemption for the reasons specified in
(a) above, or there would be a substantial likelihood that PGIF would be, in the case of a
redemption for the reasons specified in (b) above, obligated to pay such Additional Amounts if a
payment in respect of the debt securities were then due. Prior to the publication of any notice of
redemption pursuant to this paragraph, PGIF shall deliver to the trustee a
certificate signed by a duly authorized officer of PGIF stating that PGIF is entitled to
effect such redemption and setting forth a statement of facts showing that the conditions precedent
of the right of PGIF so to redeem have occurred.
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Book-Entry Debt Securities
The debt securities of a series may be issued in the form of one or more global securities
that will be deposited with a depository or its nominee identified in the prospectus supplement
relating to the debt securities. In this case, one or more global securities will be issued in a
denomination or total denominations equal to the portion of the total principal amount of
outstanding debt securities to be represented by the global security or securities. Unless and
until it is exchanged in whole or in part for debt securities in definitive registered form, a
global security may not be registered for transfer or exchange except as a whole by the depository
for the global security to a nominee of the depository and except in the circumstances described in
the prospectus supplement relating to the debt securities. We will describe in the prospectus
supplement the terms of any depositary arrangement and the rights and limitations of owners of
beneficial interests in any global debt security. (Sections 204 and 305)
Restrictive Covenants
In this section we describe the principal covenants that will apply to the debt securities
unless the prospectus supplement for a particular series of debt securities states otherwise. We
make use of several defined terms in this section. The definitions for these terms are located at
the end of this section under Definitions Applicable to Covenants.
Restrictions on Secured Debt
If Procter & Gamble or any Domestic Subsidiary shall incur, issue, assume or guarantee any
Debt secured by a Mortgage on any Principal Domestic Manufacturing
Property of Procter & Gambles or any Domestic Subsidiarys or on any shares of
stock of any Domestic Subsidiary that owns a Principal Domestic Manufacturing Property, we will
cause Procter & Gamble or such Domestic Subsidiary to secure the debt securities then outstanding
and/or the Procter & Gamble guarantee of the debt securities then outstanding, as the case may be,
equally and ratably with (or prior to) such Debt. However, this restriction will not apply if,
after giving effect to the particular Debt so secured the total amount of all Debt so secured,
together with all Attributable Debt in respect of sale and leaseback transactions involving
Principal Domestic Manufacturing Properties, would not exceed 15% of Procter & Gambles and its
consolidated subsidiaries Consolidated Net Tangible Assets.
In addition, the restriction will not apply to, and there shall be excluded in computing
secured Debt for the purpose of the restriction, Debt secured by
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with respect to any series of debt securities, Mortgages existing on
the date of the original issuance of the debt securities of such
series;
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(2)
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Mortgages on property of, or on any shares of stock of, any
corporation existing at the time the corporation becomes a Domestic
Subsidiary or at the time it is merged into or consolidated with
Procter & Gamble or a Domestic Subsidiary;
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(3)
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Mortgages in favor of Procter & Gamble or a Domestic Subsidiary;
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(4)
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Mortgages in favor of U.S., State or foreign governmental bodies to
secure progress or advance payments;
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(5)
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Mortgages on property or shares of stock existing at the time of their
acquisition, including acquisition through merger or consolidation,
purchase money Mortgages and construction or improvement cost
Mortgages; and
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(6)
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any extension, renewal or refunding of any Mortgage referred to in the
immediately preceding clauses (1) through (5), inclusive. (Section
1004)
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The indenture does not restrict the incurrence of unsecured debt by us or the incurrence of
unsecured debt by Procter & Gamble or its other subsidiaries.
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Restrictions on Sales and Leasebacks
Neither Procter & Gamble nor any Domestic Subsidiary may enter into any sale and leaseback
transaction involving any Principal Domestic Manufacturing Property, the completion of construction
and commencement of full operation of which has occurred more than 180 days prior to the
transaction, unless
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Procter & Gamble or the Domestic Subsidiary could incur a lien on the
property under the restrictions described above under Restrictions on
Secured Debt in an amount equal to the Attributable Debt with respect
to the sale and leaseback transaction without equally and ratably
securing the debt securities then outstandings, or
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within 180 days, Procter & Gamble applies to either (or a combination
of) the investment in one or more other Principal Domestic
Manufacturing Properties or the retirement of Funded Debt of Procter &
Gamble an amount not less than the greater of (1) the net proceeds of
the sale of the Principal Domestic Manufacturing Property leased
pursuant to such arrangement or (2) the fair market value of the
Principal Domestic Manufacturing Property so leased, subject to
credits for various voluntary retirements of Funded Debt of Procter &
Gamble.
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This restriction will not apply to any sale and leaseback transaction
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between Procter & Gamble and a Domestic Subsidiary,
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between Domestic Subsidiaries or
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involving the taking back of a lease for a period of less than three years. (Section 1005)
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PGIF
PGIF may not engage in any business activities other than those related to (a) financing the
business and operations of Procter & Gamble or any of its subsidiaries, (b) the establishment and
maintenance of its existence, and (c) any activities related or ancillary thereto or necessary in
connection therewith.
Definitions Applicable to Covenants
The term Attributable Debt means the lesser of (1) the fair market value of the Principal
Domestic Manufacturing Property sold and leased back at the time of entering into a sale and
leaseback transaction and (2) the total net amount of rent, discounted at 10% per annum compounded
annually, required to be paid during the remaining term of any lease.
The term Consolidated Net Tangible Assets means Procter & Gambles total assets, less net
goodwill and other intangible assets, less total current liabilities, all as described on Procter &
Gambles and its consolidated
subsidiaries most recent balance sheet and calculated based on positions as reported in
Procter & Gambles consolidated financial statements in accordance with generally accepted
accounting principles.
The term Debt means notes, bonds, debentures or other similar evidences of indebtedness for
money borrowed.
The term Domestic Subsidiary means any subsidiary of Procter & Gamble except (i) PGIF and
(ii) a subsidiary which neither transacts any substantial portion of its business nor regularly
maintains any substantial portion of its fixed assets within the United States or which is engaged
primarily in financing Procter & Gamble and Procter & Gambles subsidiaries operations outside the
United States.
17
The term Funded Debt means Debt having a maturity of more than 12 months from its date of
creation.
The term Mortgage means pledges, mortgages and other liens.
The term Principal Domestic Manufacturing Property means any facility (together with the
land on which it is erected and fixtures comprising a part of the land) used primarily for
manufacturing or processing, located in the United States, owned or leased by Procter & Gamble or
one of its subsidiaries and having a gross book value in excess of 1.0% of Consolidated Net
Tangible Assets. However, the term Principal Domestic Manufacturing Property does not include any
facility or portion of a facility (1) which is financed by obligations the interest on which is
exempt from U.S. federal income tax pursuant to Section 103 of the Internal Revenue Code of 1986,
as amended (or any predecessor or successor provision thereof), or (2) which, in the opinion of the
board of directors of Procter & Gamble, is not of material importance to the total business
conducted by Procter & Gamble and its subsidiaries as an entirety.
Events of Default
Any one of the following are events of default under the indenture with respect to each series of
debt securities:
(1)
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the failure to pay principal of or premium, if any, on any debt security of that series when due;
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(2)
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the failure to pay any interest on any debt security of that series when due, continued for 30 days;
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(3)
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the failure to deposit any sinking fund payment, when due, in respect of any debt security of that
series;
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(4)
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the failure by us or Procter & Gamble to perform any other of the covenants in the indenture which
affects or is applicable to the debt securities of that series, other than a covenant included in
the indenture solely for the benefit of other series of debt securities, continued for 90 days
after written notice as provided in the indenture;
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(5)
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release of Procter & Gamble from its obligations in respect of its guarantee of any debt security
of that series;
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(6)
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certain events involving bankruptcy, insolvency or reorganization of us or Procter & Gamble; and
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(7)
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any other event of default provided with respect to debt securities of that series. (Section 501)
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If an event of default with respect to outstanding debt securities of any series shall occur
and be continuing, either the trustee or the holders of at least 25% in principal amount of the
outstanding debt securities of that series may declare the principal amount (or, if the debt
securities of that series are original issue discount securities, the portion of the principal
amount as may be specified in the terms of that series) of all the debt securities of that series
to be due and payable immediately. At any time after a declaration of acceleration with respect to
debt securities of
any series has been made, but before a judgment or decree based on acceleration has been
obtained, the holders of a majority in principal amount of the outstanding debt securities of that
series may, under some circumstances, rescind and annul the acceleration. (Section 502) For
information as to waiver of defaults, see the section below entitled
Modification and Waiver.
A prospectus supplement relating to each series of debt securities which are original issue
discount securities will describe the particular provisions relating to acceleration of the
maturity of a portion of the principal amount of such original issue discount securities upon the
occurrence of an event of default and its continuation.
During a default, the trustee has a duty to act with the required standard of care. Otherwise,
the indenture provides that the trustee will be under no obligation to exercise any of its rights
or powers under the indenture at the request or direction of any of the holders, unless the holders
shall have offered to the trustee reasonable indemnity.
18
(Section 603) If the provisions for
indemnification of the trustee have been satisfied, the holders of a majority in principal amount
of the outstanding debt securities of any series will 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 that series. (Section
512)
We and Procter & Gamble will furnish to the trustee annually a certificate as to the
compliance by us and Procter & Gamble with all conditions and covenants under the indenture.
(Section 1007)
Defeasance
The prospectus supplement will state if any defeasance provision will apply to the debt
securities. Defeasance refers to the discharge of some or all of our obligations under the
indenture and Procter & Gambles obligations in respect of its guarantee of the debt securities.
Defeasance and Discharge
We will be discharged from any and all obligations in respect of the debt securities of any
series, and Procter & Gamble will be discharged from any and all obligations in respect of its
guarantee of the debt securities of any series, if we or Procter & Gamble deposit with the trustee,
in trust, money and/or U.S. government securities which through the payment of interest and
principal will provide money in an amount sufficient to pay the principal of and premium, if any,
and each installment of interest on the debt securities of the series on the dates those payments
are due and payable.
If a series of debt securities is defeased, the holders of the debt securities of the series
will not be entitled to the benefits of the indenture, except for
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the rights of holders to receive from the trust funds payment of
principal, premium and interest on the debt securities,
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the rights of holders to receive any Additional Amounts,
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the obligation to register the transfer or exchange of debt securities of the series,
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the obligation to replace stolen, lost or mutilated debt securities of the series,
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the obligation to maintain paying agencies,
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the obligation to hold monies for payment in trust, and
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the rights of holders to benefit, as applicable, from the rights,
powers, trusts, duties and immunities of the trustee.
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A series of debt securities may be defeased only if, among other things, we have delivered to
the Trustee an opinion of counsel to the effect that we have received from, or there has been
published by, the Internal Revenue Service a ruling to the effect that holders and beneficial
owners of the debt securities of the series will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of the deposit, defeasance and discharge and will be
subject to federal income tax on the same amount and in the same manner and at the same times as
would have been the case if the deposit, defeasance and discharge had not occurred. (Section 403)
Defeasance of Covenants and Events of Default
We and Procter & Gamble may omit to comply with the covenants described above under
Restrictions on Secured Debt (Section 1004) and Restrictions on Sales and Leasebacks (Section
1005), and the failure to comply
19
with these covenants will not be deemed an event of default
(Section 501(4)), if we or Procter & Gamble deposit with the trustee, in trust, money and/or U.S.
government securities which through the payment of interest and principal will provide money in an
amount sufficient to pay the principal of and premium, if any, and each installment of interest on
the debt securities of the series on the dates those payments are due and payable. Our obligations
under the indenture and the debt securities of the series, and Procter & Gambles obligations in
respect of its guarantee of the debt securities of the series, will remain in full force and
effect, other than with respect to the defeased covenants and related events of default.
The covenants and the related events of default described above may be defeased only if, among
other things, we have delivered to the trustee an opinion of counsel, who may be our employee or
counsel, to the effect that the holders and beneficial owners of the debt securities of the series
will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the
deposit and defeasance of the covenants and events of default, and the holders and beneficial
owners of the debt securities of the series will be subject to U.S. federal income tax on the same
amount and in the same manner and at the same times as would have been the case if the deposit and
defeasance had not occurred. (Section 1006)
If we choose covenant defeasance with respect to the debt securities of any series as
described above and the debt securities of the series are declared due and payable because of the
occurrence of any event of default other than the event of default described in clause (4) under
Events of Default, the amount of money and U.S. government securities on deposit with the trustee
will be sufficient to pay amounts due on the debt securities of the series at the time of their
stated maturity. The amount on deposit with the trustee may not be sufficient to pay amounts due on
the debt securities of the series at the time of the acceleration resulting from the event of
default. However, we and Procter & Gamble will remain liable for these payments.
Modification and Waiver
PGIF, Procter & Gamble and the trustee may make modifications of and amendments to the
indenture if the holders of at least a majority in principal amount of the outstanding debt
securities of each series affected by the modification or amendment consent to the modification or
amendment.
However, the consent of the holder of each debt security affected will be required for any
modification or amendment that
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changes the stated maturity of the principal of, or any installment of
principal of or interest on, any debt security,
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reduces the principal amount of, or the premium, if any, or interest, if any, on, any debt security,
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reduces the amount of principal of an original issue discount security
payable upon acceleration of the maturity of the security,
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changes the place or currency of payment of principal of, or premium, if any, or interest, if
any, on, any debt security,
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releases Procter & Gamble from its obligation in respect of the guarantee of any debt security,
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impairs the right to institute suit for the enforcement of any payment on any debt security, or
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reduces the percentage in principal amount of debt securities of any
series necessary to modify or amend the indenture or to waive
compliance with various provisions of the indenture or to waive
various defaults. (Section 902)
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Without the consent of any holder of debt securities, PGIF, Procter & Gamble and the trustee
may make modifications or amendments to the indenture in order to
20
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evidence the succession of another person to us or Procter & Gamble,
as the case may be, and the assumption by that person of the covenants
in the indenture,
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add to the covenants for the benefit of the holders,
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add additional events of default,
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permit or facilitate the issuance of securities in bearer form or uncertificated form,
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add to, change, or eliminate any provision of the indenture in respect
of a series of debt securities to be created in the future,
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secure the securities or the Procter & Gamble guarantee of the
securities as required by Restrictions on Secured Debt,
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establish the form or terms of securities of any series,
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evidence the appointment of a successor trustee, or
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cure any ambiguity, correct or supplement any provision which may be
inconsistent with another provision, or make any other provision,
provided that any action may not adversely affect the interests of
holders of debt securities in any material respect.
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The holders of at least a majority in principal amount of the outstanding debt securities of
any series may on behalf of the holders of all debt securities of that series waive compliance by
us or Procter & Gamble with various restrictive provisions of the indenture. (Section 1008)
The holders of a majority in principal amount of the outstanding debt securities of any series
may on behalf of the holders of all debt securities of that series waive any past default with
respect to that series, except
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a default in the payment of the principal of or premium, if any, or
interest on any debt security of that series, or
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a default in respect of a provision which under the indenture cannot
be modified or amended without the consent of the holder of each
outstanding debt security of that series that would be affected.
(Section 513)
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Consolidation, Merger and Sale of Assets
If the conditions below are met, PGIF and Procter & Gamble, as the case may be, may, without
the consent of any holders of outstanding debt securities:
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consolidate or merge with or into another entity, or
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transfer or lease their assets as an entirety to another entity.
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PGIF may engage in a consolidation, merger or transfer or lease of assets as an entirety only
if
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either PGIF is the surviving entity or the entity formed by the
consolidation or into which we are merged or which acquires or leases
our assets is either Procter & Gamble or a corporation, partnership,
limited liability company, or trust wholly owned by Procter & Gamble
and organized and existing under the laws of any United States
jurisdiction or any member country of the European Union and assumes
our obligations on the debt securities and under the indenture,
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after giving effect to the transaction no event of default would have happened and be continuing, and
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various other conditions are met. (Article Eight)
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In addition, Procter & Gamble may engage in a consolidation, merger or transfer or lease of
assets as an entirety only if
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either Procter & Gamble is the surviving entity or the entity formed
by the consolidation or into which Procter & Gamble is merged or which
acquires or leases Procter & Gambles assets is a corporation,
partnership, limited liability company or trust organized and existing
under the laws of any United States jurisdiction and assumes all
obligations of Procter & Gamble under the indenture and its guarantee
of the debt securities,
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after giving effect to the transaction no event of default would have happened and be continuing, and
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various other conditions are met. (Sections 1102 and 1103)
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Regarding the Trustee
Deutsche Bank Trust Company Americas is the trustee under the indenture, and also serves as
trustee under the indenture relating to the debt securities of Procter & Gamble. In addition,
affiliates of Deutsche Bank Trust Company Americas may perform various commercial banking and
investment banking services for Procter & Gamble and its subsidiaries from time to time in the
ordinary course of business.
22
PLAN OF DISTRIBUTION
General
We and/or PGIF may sell debt securities in one or more transactions from time to time to or
through underwriters, who may act as principals or agents, directly to other purchasers or through
agents to other purchasers.
A prospectus supplement relating to a particular offering of debt securities may include the
following information:
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the terms of the offering,
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the names of any underwriters or agents,
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the purchase price of the securities,
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the net proceeds from the sale of the securities,
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any delayed delivery arrangements,
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any underwriting discounts and other items constituting underwriters compensation,
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any initial public offering price, and
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any discounts or concessions allowed or reallowed or paid to dealers.
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The distribution of the debt securities may be effected from time to time in one or more
transactions at a fixed price or prices, which may be changed, at market prices prevailing at the
time of sale, at prices related to prevailing market prices or at negotiated prices.
Underwriting Compensation
In connection with the sale of debt securities, underwriters may receive compensation from us,
PGIF or from purchasers for whom they may act as agents, in the form of discounts, concessions or
commissions. Underwriters may sell debt securities to or through dealers, and the dealers may
receive compensation in the form of discounts, concessions or commissions from the underwriters
and/or commissions from the purchasers for whom they may act as agents.
Underwriters, dealers and agents that participate in the distribution of debt securities may
be deemed to be underwriters under the Securities Act. Any discounts or commissions that they
receive from us and/or PGIF and any profit that they receive on the resale of debt securities may
be deemed to be underwriting discounts and commissions under the Securities Act. If any entity is
deemed an underwriter or any amounts deemed underwriting discounts and commissions, the prospectus
supplement will identify the underwriter or agent and describe the compensation received from us
and/or PGIF.
Indemnification
We and/or PGIF may enter agreements under which underwriters and agents who participate in the
distribution of debt securities may be entitled to indemnification by us and/or PGIF against
various liabilities, including liabilities under the Securities Act, and to contribution with
respect to payments which the underwriters, dealers or agents may be required to make.
23
Related Transactions
Various of the underwriters who participate in the distribution of debt securities, and their
affiliates, may perform various commercial banking and investment banking services for us and PGIF
from time to time in the ordinary course of business.
Delayed Delivery Contracts
We and PGIF may authorize underwriters or other persons acting as our agents to solicit offers
by institutions to purchase debt securities from us and/or PGIF pursuant to contracts providing for
payment and delivery on a future date. These institutions may include commercial and savings banks,
insurance companies, pension funds, investment companies, educational and charitable institutions
and others, but in all cases we and/or PGIF must approve these institutions. The obligations of any
purchaser under any of these contracts will be subject to the condition that the purchase of the
debt securities shall not at the time of delivery be prohibited under the laws of the jurisdiction
to which such purchaser is subject. The underwriters and other agents will not have any
responsibility in respect of the validity or performance of these contracts.
No Established Trading Market
The debt securities, when first issued, will have no established trading market. Any
underwriters or agents to or through whom we and/or PGIF sell debt securities for public offering
and sale may make a market in the securities but will not be obligated to do so and may discontinue
any market making at any time without notice. No assurance can be given as to the liquidity of the
trading market for the debt securities.
Price Stabilization and Short Positions
If underwriters or dealers are used in the sale, until the distribution of the securities is
completed, rules of the Securities and Exchange Commission may limit the ability of any
underwriters to bid for and purchase the securities. As an exception to these rules,
representatives of any underwriters are permitted to engage in transactions that stabilize the
price of the securities. These transactions may consist of bids or purchases for the purpose of
pegging, fixing or maintaining the price of the securities. If the underwriters create a short
position in the securities in connection with the offering, i.e., if they sell more securities than
are set forth on the cover page of the prospectus supplement, the representatives of the
underwriters may reduce that short position by purchasing securities in the open market.
We and PGIF make no representation or prediction as to the direction or magnitude of any
effect that the transactions described above may have on the price of the securities. In addition,
we and PGIF make no representation that the representatives of any underwriters will engage in
these transactions or that these transactions, once commenced, will not be discontinued without
notice.
24
LEGAL OPINIONS
In connection with particular offerings of the securities in the future, and if stated in the
applicable prospectus supplement, the validity of those securities may be passed upon for The
Procter & Gamble Company by Susan S. Whaley, Associate General Counsel or any Counsel, Senior
Counsel or Associate General Counsel of the Company, for Procter & Gamble International Funding SCA
by Arendt & Medernach, Luxembourg counsel for Procter & Gamble and PGIF, and with respect to
matters of New York law, by Fried, Frank, Harris, Shriver & Jacobson LLP. In addition, the validity
of those securities may be passed upon for any underwriters or agents by Fried, Frank, Harris,
Shriver & Jacobson LLP or other counsel for the underwriters. Ms. Whaley or other counsel for the
Company may rely as to matters of New York law upon the opinion of Fried, Frank, Harris, Shriver &
Jacobson LLP or other counsel for the underwriters, and may rely as to matters of Luxembourg law
upon the opinion of Arendt & Medernach. Fried, Frank, Harris, Shriver & Jacobson LLP or other
counsel for the underwriters may rely as to matters of Ohio law upon the opinion of Ms. Whaley or
other counsel for the Company, and may rely as to matters of Luxembourg law upon the opinion of
Arendt & Medernach. Fried, Frank, Harris, Shriver & Jacobson LLP performs legal services for
Procter & Gamble and its subsidiaries from time to time.
EXPERTS
The financial statements incorporated in this prospectus by reference from The Procter & Gamble
Companys Annual Report on Form 10-K and the effectiveness of The Procter & Gamble Companys internal control over financial reporting have been audited by Deloitte & Touche LLP, an independent
registered public accounting firm, as stated in their reports, which are incorporated herein by
reference. Such financial statements have been so incorporated in reliance upon the reports of such firm given upon their
authority as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
Procter & Gamble files annual, quarterly and special reports, proxy statements and other
information with the SEC. PGIF does not and will not file separate reports with the SEC. You may
read and copy materials that Procter & Gamble has filed with the SEC, including the registration
statement, at the following public reference room of the SEC:
100 F Street, N.E.
Washington, DC 20549
Please telephone the SEC at 1-800-SEC-0330 for further information on the public reference room.
The SEC also maintains an Internet site at http://www.sec.gov that contains reports, proxy
statements and other information regarding issuers that file electronically with the SEC. You may
find our reports, proxy statements and other information at this SEC website.
In addition, you can obtain our reports, proxy statements and other information about Procter
& Gamble at the offices of the New York Stock Exchange, 20 Broad Street, New York, New York 10005.
The SEC allows us to incorporate by reference into this document the information which
Procter & Gamble filed with the SEC. This means that we can disclose important information by
referring you to those documents. Any information referred to in this way is considered part of
this prospectus from the date we file that document. The information incorporated by reference is
an important part of this prospectus and information that Procter & Gamble files later with the SEC
will automatically update and supersede this information. We incorporate by reference the documents
listed below:
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our Annual Report on Form 10-K for the year ended June 30, 2009
(including portions of our Annual Report to Shareholders for the year
ended June 30, 2009 incorporated by reference therein); and
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25
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our Current Reports on Form 8-K filed on August 12, 2009 and August 28, 2009.
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In addition to the documents listed above, we also incorporate by reference any future filings
Procter & Gamble makes with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934 (excluding any information furnished pursuant to Item 2.02 or Item 7.01 on any
Current Report on Form 8-K) until we and/or PGIF have sold all of the offered securities to which
this prospectus relates or the offering is otherwise terminated.
You may request a copy of these filings (other than exhibits, unless that exhibit is
specifically incorporated by reference into the filing), at no cost, by writing us at the following
address or telephoning us at (513) 983-2414:
The Procter & Gamble Company
Attn: Investor Relations
One Procter & Gamble Plaza
Cincinnati, Ohio 45202
You may also get a copy of these reports from our website at http://www.pg.com. Please note,
however, that we have not incorporated any other information by reference from our website, other
than the documents listed above.
You should rely only on the information incorporated by reference or provided in this
prospectus or any prospectus supplement. We have not authorized anyone to provide you with
different information. We are not making an offer of these securities in any state where the offer
is not permitted. You should not assume the information in this prospectus or any supplemental
prospectus is accurate as of any date other than the date on the front of those documents.
26
PART II
Information Not Required in Prospectus
Item 14.
Other Expenses of Issuance and Distribution
The following is a statement of the expenses (all of which are estimated) to be incurred by
the
Registrants in connection with the distribution of the securities registered under this
registration statement:
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Amount
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to be paid
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SEC registration fee
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$
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(1
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Legal fees and expenses
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75,000
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Fees and
expenses of qualification under state securities laws (including legal fees)
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10,000
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Accounting fees and expenses
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10,000
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Printing fees
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2,500
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Trustees fees and expenses
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15,000
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Miscellaneous
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25,000
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Total
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$
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137,500
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(1)
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Deferred in accordance with Rules 456(b) and 457(r) under the Securities Act.
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Item 15.
Indemnification of Directors and Officers
Procter & Gamble
Ohio Revised Code
Section 1701.13(E) of the Ohio Revised Code provides as follows:
(E)(1) A corporation may indemnify or agree to indemnify any person who was or is a 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 he is or was a director, officer,
employee, or agent of the corporation, or is or was serving at the request of the corporation as a
director, trustee, officer, employee, member, manager, or agent of another corporation, domestic or
foreign, nonprofit or for profit, a limited liability company, or a partnership, joint venture,
trust, or other enterprise, against expenses, including attorneys fees, judgments, fines, and
amounts paid in settlement actually and reasonably incurred by him in connection with such action,
suit, or proceeding, if he acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the corporation, and, with respect to any criminal action or
proceeding, if he had no reasonable cause to believe his conduct was unlawful. The termination of
any action, suit, or proceeding by judgment, order, settlement, or conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did
not act in good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or proceeding, he had
reasonable cause to believe that his conduct was unlawful.
(2) A corporation may indemnify or agree to indemnify any person who was or is a party, or is
threatened to be made a party, to any threatened, pending, or completed action or suit by or in the
right of the corporation to procure
II-1
a judgment in its favor, by reason of the fact that he is or was a director, officer, employee, or
agent of the corporation, or is or was serving at the request of the corporation as a director,
trustee, officer, employee, member, manager, or agent of another corporation, domestic or foreign,
nonprofit or for profit, a limited liability company, or a partnership, joint venture, trust, or
other enterprise, against expenses, including attorneys fees, actually and reasonably incurred by
him in connection with the defense or settlement of such action or suit, if he acted in good faith
and in a manner he reasonably believed to be in or not opposed to the best interests of the
corporation, except that no indemnification shall be made in respect of any of the following:
(a) Any claim, issue, or matter as to which such person is adjudged to be liable for
negligence or misconduct in the performance of his duty to the corporation unless, and only to the
extent that, the court of common pleas or the court in which such action or suit was brought
determines, upon application, that, despite the adjudication of liability, but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to indemnity for such
expenses as the court of common pleas or such other court shall deem proper;
(b) Any action or suit in which the only liability asserted against a director is pursuant to
section 1701.95 of the Revised Code.
(3) To the extent that a director, trustee, officer, employee, member, manager, or agent has
been successful on the merits or otherwise in defense of any action, suit, or proceeding referred
to in division (E)(1) or (2) of this section, or in defense of any claim, issue, or matter therein,
he shall be indemnified against expenses, including attorneys fees, actually and reasonably
incurred by him in connection with the action, suit, or proceeding.
(4) Any indemnification under division (E)(1) or (2) of this section, unless ordered by a
court, shall be made by the corporation only as authorized in the specific case, upon a
determination that indemnification of the director, trustee, officer, employee, member, manager, or
agent is proper in the circumstances because he has met the applicable standard of conduct set
forth in division (E)(1) or (2) of this section. Such determination shall be made as follows:
(a) By a majority vote of a quorum consisting of directors of the indemnifying corporation who
were not and are not parties to or threatened with the action, suit, or proceeding referred to in
division (E)(1) or (2) of this section;
(b) If the quorum described in division (E)(4)(a) of this section is not obtainable or if a
majority vote of a quorum of disinterested directors so directs, in a written opinion by
independent legal counsel other than an attorney, or a firm having associated with it an attorney,
who has been retained by or who has performed services for the corporation or any person to be
indemnified within the past five years;
(c) By the shareholders;
(d) By the court of common pleas or the court in which the action, suit, or proceeding
referred to in division (E)(1) or (2) of this section was brought.
Any determination made by the disinterested directors under division (E)(4)(a) or by
independent legal counsel under division (E)(4)(b) of this section shall be promptly communicated
to the person who threatened or brought the action or suit by or in the right of the corporation
under division (E)(2) of this section, and, within ten days after receipt of such notification,
such person shall have the right to petition the court of common pleas or the court in which such
action or suit was brought to review the reasonableness of such determination.
(5)(a) Unless at the time of a directors act or omission that is the subject of an action,
suit, or proceeding referred to in division (E)(1) or (2) of this section, the articles or the
regulations of a corporation state, by specific reference to this division, that the provisions of
this division do not apply to the corporation and unless the only liability asserted against a
director in an action, suit, or proceeding referred to in division (E)(1) or (2) of this section is
pursuant to section 1701.95 of the Revised Code, expenses, including attorneys fees, incurred by a
director in defending the action, suit, or proceeding shall be paid by the corporation as they are
incurred, in advance of the final
II-2
disposition of the action, suit, or proceeding, upon receipt of an undertaking by or on behalf of
the director in which he agrees to do both of the following:
(i) Repay such amount if it is proved by clear and convincing evidence in a court of competent
jurisdiction that his action or failure to act involved an act or omission undertaken with
deliberate intent to cause injury to the corporation or undertaken with reckless disregard for the
best interests of the corporation;
(ii) Reasonably cooperate with the corporation concerning the action, suit, or proceeding.
(b) Expenses, including attorneys fees, incurred by a director, trustee, officer, employee,
member, manager, or agent in defending any action, suit, or proceeding referred to in division
(E)(1) or (2) of this section, may be paid by the corporation as they are incurred, in advance of
the final disposition of the action, suit, or proceeding, as authorized by the directors in the
specific case, upon receipt of an undertaking by or on behalf of the director, trustee, officer,
employee, member, manager, or agent to repay such amount, if it ultimately is determined that he is
not entitled to be indemnified by the corporation.
(6) The indemnification authorized by this section shall not be exclusive of, and shall be in
addition to, any other rights granted to those seeking indemnification under the articles, the
regulations, any agreement, a vote of shareholders or disinterested directors, or otherwise, both
as to action in their official capacities and as to action in another capacity while holding their
offices or positions, and shall continue as to a person who has ceased to be a director, trustee,
officer, employee, member, manager, or agent and shall inure to the benefit of the heirs,
executors, and administrators of such a person.
(7) A corporation may purchase and maintain insurance or furnish similar protection,
including, but not limited to, trust funds, letters of credit, or self-insurance, on behalf of or
for any person who is or was a director, officer, employee, or agent of the corporation, or is or
was serving at the request of the corporation as a director, trustee, officer, employee, member,
manager, or agent of another corporation, domestic or foreign, nonprofit or for profit, a limited
liability company, or a partnership, joint venture, trust, or other enterprise, against any
liability asserted against him and incurred by him in any such capacity, or arising out of his
status as such, whether or not the corporation would have the power to indemnify him against such
liability under this section. Insurance may be purchased from or maintained with a person in which
the corporation has a financial interest.
(8) The authority of a corporation to indemnify persons pursuant to division (E)(1) or (2) of
this section does not limit the payment of expenses as they are incurred, indemnification,
insurance, or other protection that may be provided pursuant to divisions (E)(5), (6), and (7) of
this section. Divisions (E)(1) and (2) of this section do not create any obligation to repay or
return payments made by the corporation pursuant to division (E)(5), (6), or (7).
(9) As used in division (E) of this section, corporation includes all constituent entities
in a consolidation or merger and the new or surviving corporation, so that any person who is or was
a director, officer, employee, trustee, member, manager, or agent of such a constituent entity, or
is or was serving at the request of such constituent entity as a director, trustee, officer,
employee, member, manager, or agent of another corporation, domestic or foreign, nonprofit or for
profit, a limited liability company, or a partnership, joint venture, trust, or other enterprise,
shall stand in the same position under this section with respect to the new or surviving
corporation as he would if he had served the new or surviving corporation in the same capacity.
Section 1701.13(F)(7) of the Ohio Revised Code provides as follows:
(F) In carrying out the purposes stated in its articles and subject to limitations prescribed
by law or in its articles, a corporation may:
(7) Resist a change or potential change in control of the corporation if the directors by a
majority vote of a quorum determine that the change or potential change is opposed to or not in the
best interests of the corporation:
II-3
(a) Upon consideration of the interests of the corporations shareholders and any of the
matters set forth in division (E) of section 1701.59 of the Revised Code; or
(b) Because the amount or nature of the indebtedness and other obligations to which the
corporation or any successor or the property of either may become subject in connection with the
change or potential change in control provides reasonable grounds to believe that, within a
reasonable period of time, any of the following would apply:
(i) The assets of the corporation or any successor would be or become less than its
liabilities plus its stated capital, if any;
(ii) The corporation or any successor would be or become insolvent;
(iii) Any voluntary or involuntary proceeding under the federal bankruptcy laws concerning the
corporation or any successor would be commenced by any person.
Section 1701.59 of the Ohio Revised Code provides as follows:
(A) Except where the law, the articles, or the regulations require action to be authorized or
taken by shareholders, all of the authority of a corporation shall be exercised by or under the
direction of its directors. For their own government, the directors may adopt bylaws that are not
inconsistent with the articles or the regulations. The selection of a time frame for the
achievement of corporate goals shall be the responsibility of the directors.
(B) A director shall perform the directors duties as a director, including the duties as a
member of any committee of the directors upon which the director may serve, in good faith, in a
manner the director reasonably believes to be in or not opposed to the best interests of the
corporation, and with the care that an ordinarily prudent person in a like position would use under
similar circumstances. In performing a directors duties, a director is entitled to rely on
information, opinions, reports, or statements, including financial statements and other financial
data, that are prepared or presented by any of the following:
(1) One or more directors, officers, or employees of the corporation who the director
reasonably believes are reliable and competent in the matters prepared or presented;
(2) Counsel, public accountants, or other persons as to matters that the director reasonably
believes are within the persons professional or expert competence;
(3) A committee of the directors upon which the director does not serve, duly established in
accordance with a provision of the articles or the regulations, as to matters within its designated
authority, which committee the director reasonably believes to merit confidence.
(C) For purposes of division (B) of this section, the following apply:
(1) A director shall not be found to have violated the directors duties under division (B) of
this section unless it is proved by clear and convincing evidence that the director has not acted
in good faith, in a manner the director reasonably believes to be in or not opposed to the best
interests of the corporation, or with the care that an ordinarily prudent person in a like position
would use under similar circumstances, in any action brought against a director, including actions
involving or affecting any of the following:
(a) A change or potential change in control of the corporation, including a determination to
resist a change or potential change in control made pursuant to division (F)(7) of section 1701.13
of the Revised Code;
(b) A termination or potential termination of the directors service to the corporation as a
director;
(c) The directors service in any other position or relationship with the corporation.
II-4
(2) A director shall not be considered to be acting in good faith if the director has
knowledge concerning the matter in question that would cause reliance on information, opinions,
reports, or statements that are prepared or presented by the persons described in divisions (B)(1)
to (3) of this section to be unwarranted.
(3) Nothing contained in this division limits relief available under section 1701.60 of the
Revised Code.
(D) A director shall be liable in damages for any action that the director takes or fails to
take as a director only if it is proved by clear and convincing evidence in a court of competent
jurisdiction that the directors action or failure to act involved an act or omission undertaken
with deliberate intent to cause injury to the corporation or undertaken with reckless disregard for
the best interests of the corporation. Nothing contained in this division affects the liability of
directors under section 1701.95 of the Revised Code or limits relief available under section
1701.60 of the Revised Code. This division does not apply if, and only to the extent that, at the
time of a directors act or omission that is the subject of complaint, the articles or the
regulations of the corporation state by specific reference to this division that the provisions of
this division do not apply to the corporation.
(E) For purposes of this section, a director, in determining what the director reasonably believes
to be in the best interests of the corporation, shall consider the interests of the corporations
shareholders and, in the directors discretion, may consider any of the following:
(1) The interests of the corporations employees, suppliers, creditors, and customers;
(2) The economy of the state and nation;
(3) Community and societal considerations;
(4) The long-term as well as short-term interests of the corporation and its shareholders,
including the possibility that these interests may be best served by the continued independence of
the corporation.
(F) Nothing contained in division (C) or (D) of this section affects the duties of either of
the following:
(1) A director who acts in any capacity other than the directors capacity as a director;
(2) A director of a corporation that does not have issued and outstanding shares that are
listed on a national securities exchange or are regularly quoted in an over-the-counter market by
one or more members of a national or affiliated securities association, who votes for or assents to
any action taken by the directors of the corporation that, in connection with a change in control
of the corporation, directly results in the holder or holders of a majority of the outstanding
shares of the corporation receiving a greater consideration for their shares than other
shareholders.
Section 1701.95 of the Ohio Revised Code provides as follows:
(A)(1) In addition to any other liabilities imposed by law upon directors of a corporation and
except as provided in division (B) of this section, directors shall be jointly and severally liable
to the corporation as provided in division (A)(2) of this section if they vote for or assent to any
of the following:
(a) The payment of a dividend or distribution, the making of a distribution of assets to
shareholders, or the purchase or redemption of the corporations own shares, contrary in any such
case to law or the articles;
(b) A distribution of assets to shareholders during the winding up of the affairs of the
corporation, on dissolution or otherwise, without the payment of all known obligations of the
corporation or without making adequate provision for their payment;
(c) The making of a loan, other than in the usual course of business, to an officer, director,
or shareholder of the corporation, other than in either of the following cases:
II-5
(i) In the case of a savings and loan association or of a corporation engaged in banking or in
the making of loans generally;
(ii) At the time of the making of the loan, a majority of the disinterested directors of the
corporation voted for the loan and, taking into account the terms and provisions of the loan and
other relevant factors, determined that the making of the loan could reasonably be expected to
benefit the corporation.
(2)(a) In cases under division (A)(1)(a) of this section, directors shall be jointly and
severally liable up to the amount of the dividend, distribution, or other payment, in excess of the
amount that could have been paid or distributed without violation of law or the articles but not in
excess of the amount that would inure to the benefit of the creditors of the corporation if it was
insolvent at the time of the payment or distribution or there was reasonable ground to believe that
by that action it would be rendered insolvent, plus the amount that was paid or distributed to
holders of shares of any class in violation of the rights of holders of shares of any other class.
(b) In cases under division (A)(1)(b) of this section, directors shall be jointly and
severally liable to the extent that the obligations of the corporation that are not otherwise
barred by statute are not paid or for the payment of which adequate provision has not been made.
(c) In cases under division (A)(1)(c) of this section, directors shall be jointly and
severally liable for the amount of the loan with interest on it at the rate specified in section
1343.03 of the Revised Code until the amount has been paid.
(B)(1) A director is not liable under division (A)(1)(a) or (b) of this section if, in
determining the amount available for any dividend, purchase, redemption, or distribution to
shareholders, the director in good faith relied on a financial statement of the corporation
prepared by an officer or employee of the corporation in charge of its accounts or certified by a
public accountant or firm of public accountants, the director in good faith considered the assets
to be of their book value, or the director followed what the director believed to be sound
accounting and business practice.
(2) A director is not liable under division (A)(1)(c) of this section for making any loan to,
or guaranteeing any loan to or other obligation of, an employee stock ownership plan, as defined in
section 4975(e)(7) of the Internal Revenue Code.
(C) A director who is present at a meeting of the directors or a committee of the directors at
which action on any matter is authorized or taken and who has not voted for or against the action
shall be presumed to have voted for the action unless that directors written dissent from the
action is filed, either during the meeting or within a reasonable time after the adjournment of the
meeting, with the person acting as secretary of the meeting or with the secretary of the
corporation.
(D) A shareholder who knowingly receives any dividend, distribution, or payment made contrary
to law or the articles shall be liable to the corporation for the amount received by that
shareholder that is in excess of the amount that could have been paid or distributed without
violation of law or the articles.
(E) A director against whom a claim is asserted under or pursuant to this section and who is
held liable on the claim shall be entitled to contribution, on equitable principles, from other
directors who also are liable. In addition, any director against whom a claim is asserted under or
pursuant to this section or who is held liable shall have a right of contribution from the
shareholders who knowingly received any dividend, distribution, or payment made contrary to law or
the articles, and those shareholders as among themselves also shall be entitled to contribution in
proportion to the amounts received by them respectively.
(F) No action shall be brought by or on behalf of a corporation upon any cause of action
arising under division (A)(1)(a) or (b) of this section at any time after two years from the day on
which the violation occurs.
II-6
(G) Nothing contained in this section shall preclude a creditor whose claim is unpaid from
exercising the rights that that creditor otherwise would have by law to enforce that creditors
claim against assets of the corporation paid or distributed to shareholders.
(H) The failure of a corporation to observe corporate formalities relating to meetings of
directors or shareholders in connection with the management of the corporations affairs shall not
be considered a factor tending to establish that the shareholders have personal liability for
corporate obligations.
The Procter & Gamble Company Regulations
Section 8 of Article III of The Procter & Gamble Companys Regulations provides as follows:
Section 8. Indemnification of Directors and Officers. The Company shall indemnify each present
and future Director and officer, his heirs, executors and administrators against all costs,
expenses (including attorneys fees), judgments, and liabilities, reasonably incurred by or imposed
on him in connection with or arising out of any claim or any action, suit or proceeding, civil or
criminal, in which he may be or become involved by reason of his being or having been a Director or
officer of the Company, or of any of its subsidiary companies, or of any other company in which he
served or serves as a Director or officer at the request of the Company, irrespective of whether or
not he continues to be a Director or an officer at the time he incurs or becomes subjected to such
costs, expenses (including attorneys fees), judgments, and liabilities; but such indemnification
shall not be operative with respect to any matter as to which in any such action, suit or
proceeding he shall have been finally adjudged to have been derelict in the performance of his
duties as such Director or officer. Such indemnification shall apply when the adjudication in such
action, suit or proceeding is otherwise than on the merits and also shall apply when a settlement
or compromise is effected, but in such cases indemnification shall be made only if the Board of
Directors of the Company, acting at a meeting at which a majority of the quorum of the Board is
unaffected by self interest, shall find that such Director or officer has not been derelict in the
performance of his duty as such Director or officer with respect to the matter involved, and shall
adopt a resolution to that effect and in cases of settlement or compromise shall also approve the
same; in cases of settlement or compromise such indemnification shall not include reimbursement of
any amounts which by the terms of the settlement or compromise are paid or payable to the Company
itself by the Director or officer (or in the case of a Director or officer of a subsidiary or
another company in which such Director or officer is serving at the Request of the Company any
amounts paid or payable by such Director or officer to such company). If the Board of Directors as
herein provided refuses or fails to act or is unable to act due to the self interest of some or all
of its members, the Company at its expense shall obtain the opinion of counsel and indemnification
shall be had only if it is the opinion of such counsel that the Director or officer has not been
derelict in the performance of his duties as such Director or officer with respect to the matter
involved.
The right of indemnification provided for in this section shall not be exclusive of other
rights to which any director or officer may be entitled as a matter of law and such rights, if any,
shall also inure to the benefit of the heirs, executors or administrators of any such director or
officer.
Other
The Companys Directors, officers and certain other key employees of the Company are insured
by directors and officers liability insurance policies. The Company pays the premiums for this
insurance.
The form of Underwriting Agreement of the Company provides for indemnification of the Company
and its directors, officers and certain other persons under certain circumstances described therein
by each underwriter participating in an offering of Debt Securities.
II-7
PGIF
General Liability Principles for Managers of a Luxembourg société en commandite par actions
(S.C.A.)
The managers of an S.C.A. are liable in accordance with the general provisions on
directors/managers liability. Article 59, first paragraph of the Luxembourg law of 10 August 1915
on commercial companies, as amended, (which article also applies to managers of an S.C.A.) provides
that managers are liable to the company, in accordance with the general provisions of Luxembourg
law, for the execution of the mandate for which they have been appointed and for the faults
committed during their management. In addition and pursuant to article 59, second paragraph, the
managers are jointly and severally liable either to the company or to third parties for all damages
resulting from infringements of the law or of the companys articles of incorporation. Furthermore
and under article 495 of the Luxembourg Commercial Code, managers may be declared personally
bankrupt if (i) they abusively pursued, for their interest, a non profitable business which
resulted in the company becoming insolvent or (ii) they disposed of corporate assets in the same
manner as if those had been their own personal assets or (iii) they carried out business on behalf
of the company for their personal interest.
In addition to the above general liability principles, the managers of an S.C.A. must, as a
rule, be at the same time general partners of the S.C.A. In their capacity as general partners of
the S.C.A., they incur personal and unlimited liability for the debts and obligations of the S.C.A.
Procter & Gamble International Finance Funding General Manager S.à r.l. (also referred to as
the Manager in this registration statement), the manager and general partner of PGIF, is a legal
entity. Accordingly, the Amended Articles of Incorporation of PGIF do not contain any
indemnification provisions with respect to the Manager.
Liability and Indemnification of the Members of the Supervisory Board of a Luxembourg S.C.A.
The audit of the annual accounts of PGIF is entrusted to a supervisory board composed of three
statutory auditors (
commissaires
).
Insofar as the liability of the statutory auditors results from their duties of supervision
and control, their liability shall be determined according to the same general rules as those
applicable to the liability of managers.
The statutory auditors do not assume, by reason of their position, any personal liability in
relation to commitments properly made by them in the name of PGIF. They are authorized agents only
and are therefore merely responsible for the execution of their mandate.
The form of Underwriting Agreement of PGIF provides for indemnification of PGIF and its
directors, officers and certain other persons under certain circumstances described therein by each
underwriter participating in an offering of Debt Securities.
Item 16.
Exhibits
|
|
|
Exhibit
|
|
|
No.
|
|
Description
|
(1)(a)
|
|
Form of Underwriting Agreement of the Company (Including form of Delayed
Delivery Contract).
|
|
|
|
(1)(b)
|
|
Form of Underwriting Agreement of Procter & Gamble
International Funding SCA (Including form of Delayed Delivery Contract).
|
|
|
|
(4)(a)
|
|
Indenture, dated as of September 3, 2009, between the Company and
Deutsche Bank Trust Company Americas, as Trustee.
|
|
|
|
(4)(b)
|
|
Form of Debt Securities of the Company (included in Exhibit (4)(a) at
pages 12 through 17).
|
|
|
|
(4)(c)
|
|
Indenture, dated as of September 3, 2009, among Procter & Gamble
International Funding SCA, the Company and Deutsche Bank Trust Company
Americas, as Trustee.
|
II-8
|
|
|
Exhibit
|
|
|
No.
|
|
Description
|
(4)(d)
|
|
Form of Debt Securities of PGIF (included in Exhibit (4)(c) at pages 12
through 19).
|
|
|
|
(4)(e)
|
|
Form of Guarantee of the Company (included in Exhibit (4)(c) at page 19).
|
|
|
|
(5)(a)
|
|
Opinion of Susan S. Whaley, Esq., Associate General Counsel of the
Company, as to the legality of the Debt Securities and Guarantees of the
Company being registered.
|
|
|
|
(5)(b)
|
|
Opinion of Arendt & Medernach, Luxembourg counsel for the Company and
Procter & Gamble International Funding SCA, as to the legality of the
Debt Securities of PGIF being registered.
|
|
|
|
(5)(c)
|
|
Opinion of Fried, Frank, Harris, Shriver & Jacobson LLP, as to the
legality of the Debt Securities and Guarantees of the Company and the
Debt Securities of PGIF being registered which is referred to in the
opinion filed as Exhibit (5)(a).
|
|
|
|
(12)*
|
|
Statement re computation of ratios of earnings to fixed charges.
|
|
|
|
(23)(a)
|
|
Consent of Deloitte & Touche LLP.
|
|
|
|
(23)(b)
|
|
Consent of Susan S. Whaley, Esq., is contained in her opinion filed as
Exhibit (5)(a).
|
|
|
|
(23)(c)
|
|
Consent of Arendt & Medernach, is contained in their opinion filed as
Exhibit (5)(b).
|
|
|
|
(23)(d)
|
|
Consent of Fried, Frank, Harris, Shriver & Jacobson LLP, is contained in
their opinion filed as Exhibit (5)(c).
|
|
|
|
(24)(a)
|
|
Power of Attorney (Procter & Gamble).
|
|
|
|
(24)(b)
|
|
Power of Attorney (PGIF).
|
|
|
|
(25)(a)
|
|
Statement of Eligibility of Deutsche Bank Trust Company Americas, as
Trustee, on Form T-1.
|
|
|
|
(25)(b)
|
|
Statement of Eligibility of Deutsche Bank Trust Company Americas, as
Trustee, on Form T-1.
|
|
|
|
*
|
|
Incorporated by reference to Exhibit (12) of the Companys Annual Report on Form 10-K for the
year ended June 30, 2009.
|
Item 17.
Undertakings
Each of the undersigned Registrants hereby undertakes:
(a)(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date
of the 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 the registration statement. Notwithstanding the foregoing, any increase or decrease
in volume of securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price
represent no
II-9
more than a 20 percent change in the maximum aggregate offering price set forth
in the Calculation of Registration Fee table in the effective registration statement; and
(iii) To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such
information in the registration statement;
provided, however
, that paragraphs (i), (ii) and (iii) do not apply if the information
required to be included in a post-effective amendment by those paragraphs is contained in
reports filed with or furnished to the Commission by the Registrants pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference
in the registration statement, or is contained in a form of prospectus filed pursuant to
Rule 424(b) that is part of the registration statement.
(2) 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 such securities at that time shall be deemed to be
the initial
bona fide
offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any
purchaser:
(A) Each prospectus filed by the Registrants pursuant to Rule 424(b)(3) shall be deemed
to be part of the registration statement as of the date the filed prospectus was deemed part
of and included in the registration statement; and
(B) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7)
as part of a registration statement in reliance on Rule 430B relating to an offering made
pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information
required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and
included in the registration statement as of the earlier of the date such form of prospectus
is first used after effectiveness or the date of the first contract of sale of securities in
the offering described in the prospectus. As provided in Rule 430B, for liability purposes
of the issuer and any person that is at that date an underwriter, such date shall be deemed
to be a new effective date of the registration statement relating to the securities in the
registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
Provided,
however,
that no statement made in a registration statement or prospectus that is part of
the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such effective
date, supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such document
immediately prior to such effective date.
(5) That, for the purpose of determining liability of a Registrant under the Securities Act of
1933 to any purchaser in the initial distribution of the securities, each of the undersigned
Registrants undertakes that in a primary offering of securities of an undersigned Registrant
pursuant to this registration statement, regardless of the underwriting method used to sell the
securities to the purchaser, if the securities are offered or sold to such purchaser by means of
any of the following communications, each of the undersigned Registrants will be a seller to the
purchaser and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of an undersigned Registrant relating to
the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of
an undersigned Registrant or used or referred to by an undersigned Registrant;
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about an undersigned Registrant or its securities provided
by or on behalf of an undersigned Registrant; and
II-10
(iv) Any other communication that is an offer in the offering made by an undersigned
Registrant to the purchaser.
(b) That, for purposes of determining any liability under the Securities Act of 1933, each
filing of The Procter & Gamble Companys annual report pursuant to Section 13(a) or Section 15(d)
of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plans annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
(c) 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 in accordance with the rules and
regulations prescribed by the Commission under Section 305(b)(2) of the Act.
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
foregoing provisions, or otherwise, the Registrants have been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act 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 Registrants in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the Registrants 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 Act and
will be governed by the final adjudication of such issue.
II-11
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, The Procter & Gamble Company
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 the City of
Cincinnati, State of Ohio, on the 4th
day of September, 2009.
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THE PROCTER & GAMBLE COMPANY
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By:
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/s/
Jon R. Moeller
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Name:
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Jon R. Moeller
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Title:
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Chief Financial Officer
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Pursuant to the
requirements of the
Securities Act of 1933,
this Registration
Statement has been signed
by the following persons
in the capacities
indicated on September 4, 2009.
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Signature
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Title
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President, Chief Executive Officer
and Director
(Principal Executive Officer)
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Chairman of the Board
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Chief Financial Officer (Principal Financial Officer)
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Comptroller (Principal Accounting Officer)
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Director
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Director
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Director
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II-12
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Signature
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Title
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*
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Director
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*
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Director
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*
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Director
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*
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Director
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*
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Director
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*
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Director
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*
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Director
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*By:
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/s/ Steven W. Jemison
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Steven W. Jemison as Attorney-in-Fact
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II-13
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Procter & Gamble International
Funding SCA 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 the Grand Duchy of Luxembourg, on the
2nd day of September, 2009.
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PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
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By:
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its general partner Procter & Gamble
International
Finance Funding General Management
Sàrl
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/s/ Herwig Meskens
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Name: Herwig Meskens
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Title: Manager
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Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has
been signed by the following persons in the capacities indicated on
September 2, 2009.
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Signature
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Title
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/s/ Herwig Meskens
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Manager (Procter & Gamble International Finance Funding
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General Management Sàrl)
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/s/ Roger Patton
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Manager (Procter & Gamble International Finance Funding
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General Management Sàrl)
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/s/ Tadd Fowler
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Manager (Procter & Gamble International Finance Funding
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General Management Sàrl)
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II-14
SIGNATURE OF AUTHORIZED REPRESENTATIVE
Pursuant to the Securities Act of 1933, as amended, the undersigned, a duly authorized
representative in the United States of Procter & Gamble International Funding SCA, has signed this
Registration Statement in the City of Cincinnati, State of Ohio, on the 4th day of September,
2009.
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Signature
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Title
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/s/ J. Douglas Gerstle
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Authorized Representative in the United States
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J. Douglas Gerstle
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II-15
EXHIBIT INDEX
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Exhibit
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No.
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Description
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(1)(a)
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Form of Underwriting Agreement of the Company (Including form of Delayed
Delivery Contract).
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(1)(b)
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Form of Underwriting Agreement of Procter & Gamble
International Funding SCA (Including form of Delayed Delivery Contract).
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(4)(a)
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Indenture, dated as of September 3, 2009, between the Company and
Deutsche Bank Trust Company Americas, as Trustee.
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(4)(b)
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Form of Debt Securities of the Company (included in Exhibit (4)(a) at
pages 12 through 17).
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(4)(c)
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Indenture, dated as of September 3, 2009, among Procter & Gamble
International Funding SCA, the Company and Deutsche Bank Trust Company
Americas, as Trustee.
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(4)(d)
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Form of Debt Securities of PGIF (included in Exhibit (4)(c) at pages 12
through 19).
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(4)(e)
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Form of Guarantee of the Company (included in Exhibit (4)(c) at page 19).
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(5)(a)
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Opinion of Susan S. Whaley, Esq., Associate General Counsel of the
Company, as to the legality of the Debt Securities and Guarantees of the
Company being registered.
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(5)(b)
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Opinion of Arendt & Medernach, Luxembourg counsel for the Company and
Procter & Gamble International Funding SCA, as to the legality of the
Debt Securities of PGIF being registered.
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(5)(c)
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Opinion of Fried, Frank, Harris, Shriver & Jacobson LLP, as to the
legality of the Debt Securities and Guarantees of the Company and the
Debt Securities of PGIF being registered which is referred to in the
opinion filed as Exhibit (5)(a).
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(12)*
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Statement re computation of ratios of earnings to fixed charges.
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(23)(a)
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Consent of Deloitte & Touche LLP.
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(23)(b)
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Consent of Susan S. Whaley, Esq., is contained in her opinion filed as
Exhibit (5)(a).
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(23)(c)
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Consent of Arendt & Medernach, is contained in their opinion filed as
Exhibit (5)(b).
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(23)(d)
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Consent of Fried, Frank, Harris, Shriver & Jacobson LLP, is contained in
their opinion filed as Exhibit (5)(c).
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(24)(a)
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Power of Attorney (Procter & Gamble).
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(24)(b)
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Power of Attorney (PGIF).
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(25)(a)
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Statement of Eligibility of Deutsche Bank Trust Company Americas, as
Trustee, on Form T-1.
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(25)(b)
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Statement of Eligibility of Deutsche Bank Trust Company Americas, as
Trustee, on Form T-1.
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*
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Incorporated by reference to Exhibit (12) of the Companys Annual Report on Form 10-K for the
year ended June 30, 2009.
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Exhibit (1)(a)
The Procter & Gamble Company
Debt Securities
Underwriting Agreement
[DATE]
To the Underwriters named in the
respective Pricing Agreement(s)
hereinafter described
Dear Sirs/Mesdames:
From time to time The Procter & Gamble Company (the Company) proposes to enter into one or
more Pricing Agreements (each a Pricing Agreement) in the form of Annex I hereto, with such
additions and deletions as the parties thereto may determine, and, subject to the terms and
conditions stated herein and therein, to issue and sell to the firms named in Schedule I to the
applicable Pricing Agreement (such firms constituting the Underwriters with respect to such
Pricing Agreement and the securities specified therein) certain of its debt securities (the
Securities) specified in Schedule II to such Pricing Agreement (with respect to such Pricing
Agreement, the Designated Securities), less the principal amount of Designated Securities
covered by Delayed Delivery Contracts, if any, as provided in Section 3 hereof and as may be
specified in Schedule II to such Pricing Agreement (with respect to such Pricing Agreement, any
Designated Securities to be covered by Delayed Delivery Contracts being herein sometimes referred
to as Contract Securities and the Designated Securities to be purchased by the Underwriters
(after giving effect to the deduction, if any, for Contract Securities) being herein sometimes
referred to as Underwriters Securities).
The terms and rights of any particular issuance of Designated Securities shall be as
specified in the Pricing Agreement relating thereto and in or pursuant to the indenture (the
Indenture) identified in such Pricing Agreement.
1. Particular sales of Designated Securities may be made from time to time to the
Underwriters of such Securities, for whom the firms designated as representatives of the
Underwriters of such Securities in the Pricing Agreement relating thereto will act as
representatives (the Representatives). The term Representatives also refers to a single firm
acting as sole representative of the Underwriters and to Underwriters who act without any firm
being designated as their representative.
This Underwriting Agreement shall not be construed
as an obligation of the Company to sell any of the Securities or as an obligation of any of the
Underwriters to purchase any of the Securities
. The obligation of the Company to issue and
sell any of the Securities and the obligation of the Underwriters to purchase any of the
Securities shall be evidenced by the Pricing Agreement with respect to the Designated Securities
specified therein. Each Pricing Agreement shall specify the aggregate principal amount of such Designated
Securities, the initial public offering price of such Designated Securities, the purchase price to
the Underwriters of such Designated Securities, the names of the Underwriters
of such Designated
Securities, the names of the Representatives of such Underwriters, the principal amount of such
Designated Securities to be purchased by each Underwriter and whether any of such Designated
Securities shall be covered by Delayed Delivery Contracts (as defined in Section 3 hereof) and the
commission payable to the Underwriters with respect thereto and shall set forth the date, time and
manner of delivery of such Designated Securities and payment therefor. The Pricing Agreement shall
also specify (to the extent not set forth in the Indenture and the registration statement and
prospectus with respect thereto) the terms of such Designated Securities. The Pricing Agreement
also may specify such additional terms and conditions as the parties thereto may agree. The
Pricing Agreement shall include a Schedule III specifying (a) materials other than the Pricing
Prospectus (as defined below) that comprise the Pricing Disclosure Package (as defined below) and
(b) Issuer Free Writing Prospectuses (as defined below) not included in the Pricing Disclosure
Package. A Pricing Agreement shall be in the form of an executed writing (which may be in
counterparts), and may be evidenced by an exchange of telegraphic communications or any other
rapid transmission device designed to produce a written record of communications transmitted. The
obligations of the Underwriters under this Agreement and each Pricing Agreement shall be several
and not joint.
2. The Company represents and warrants to, and agrees with, the Underwriters that:
(a) An automatic registration statement as defined under Rule 405 under the
Securities Act of 1933, as amended (the Act) on Form S-3 (File No. 333- ) in
respect of the Securities has been filed with the Securities and Exchange
Commission (the Commission) not earlier than three years prior to the date of the
Pricing Agreement in the form heretofore delivered or to be delivered to the
Underwriters; such registration statement and any post-effective amendment thereto
became effective upon filing; and no stop order suspending the effectiveness of
such registration statement or any part thereof has been issued and no proceeding
for that purpose has been initiated or threatened by the Commission, and no notice
of objection of the Commission to the use of such registration statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act has been
received by the Company (the base prospectus filed as part of such registration
statement, in the form in which it has most recently been filed with the Commission
on or prior to the date of this Agreement, is hereinafter called the Basic
Prospectus; any preliminary prospectus (including any preliminary prospectus
supplement) relating to the Designated Securities, which has heretofore been or is
required to be filed with the Commission pursuant to Rule 424(b) under the Act is
hereinafter called a Preliminary Prospectus; the various parts of such
registration statement, including all documents incorporated by reference therein
and exhibits thereto but excluding Form T-1 and including any prospectus supplement
relating to the Designated Securities that is or shall be filed with the Commission
pursuant to Rule 424(b) under the Act and deemed by virtue of Rule 430B under the
Act to be part of such registration statement, each such part as amended at the
time such
registration statement became effective (or at the time deemed to be a new
effective date of such registration statement pursuant to Rule 430B under the Act),
being hereinafter collectively called the Registration Statement; the Basic
2
Prospectus, as amended and supplemented by any Preliminary Prospectus immediately
prior to the Applicable Time (as defined in Section 2(b) hereof), is hereinafter
called the Pricing Prospectus; the final prospectus relating to the Designated
Securities in the form in which it shall be filed with the Commission pursuant to
Rule 424(b) under the Act in accordance with Section 5(b) hereof is hereinafter
called the Prospectus; any reference herein to the Basic Prospectus, the Pricing
Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to refer
to and include the documents incorporated by reference therein pursuant to Item 12
of Form S-3 under the Act, which were filed under the Securities Exchange Act of
1934, as amended (the Exchange Act) on or before the date of this Agreement, or
the issue date of such Basic Prospectus, Pricing Prospectus, Preliminary Prospectus
or Prospectus, as the case may be; any reference to any amendment or supplement
with respect to the Basic Prospectus, the Pricing Prospectus, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include any documents
filed after the date of this Agreement, or the issue date of the Basic Prospectus,
the Pricing Prospectus, any Preliminary Prospectus or Prospectus, as the case may
be, and prior to the completion of the offering, under the Exchange Act, and deemed
to be incorporated by reference therein; and any issuer free writing prospectus
as defined in Rule 433 under the Act relating to the Designated Securities is
hereinafter called an Issuer Free Writing Prospectus );
(b) For the purposes of this Agreement and the Pricing Agreement, the Applicable
Time shall be such time as specified in the Pricing Agreement; as of the
Applicable Time, neither (x) the Pricing Prospectus as supplemented by those Issuer
Free Writing Prospectuses and other documents and information listed in Schedule
III(a) to the Pricing Agreement (including any final term sheet), taken together
(collectively, the Pricing Disclosure Package), nor (y) any Issuer Free Writing
Prospectus listed on Schedule III(b) to the Pricing Agreement when considered
together with the Pricing Disclosure Package, included any untrue statement of a
material fact or omitted to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made,
not misleading; provided, however, that this representation and warranty shall not
apply to statements or omissions made in the Pricing Disclosure Package or any
Issuer Free Writing Prospectus in reliance upon and in conformity with information
furnished in writing to the Company by an Underwriter of Designated Securities
through the Representatives expressly for use therein; and each Issuer Free Writing
Prospectus listed on Schedule III(a) or Schedule III(b) to the Pricing Agreement as
of its issue date and at all subsequent times through the completion of the offer
and sale of the Designated Securities to which such Issuer Free Writing Prospectus
relates, did not, does not and will not conflict with the information contained in
the Registration Statement, the Pricing Prospectus or the Prospectus;
(c) The documents incorporated by reference in the Pricing Prospectus, the
Prospectus and any amendment or supplement thereto, when they were filed with
3
the Commission, conformed in all material respects to the requirements of the Exchange
Act and the rules and regulations of the Commission thereunder, and none of such
documents contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading; and any further documents so filed and incorporated by
reference in the Pricing Prospectus, the Prospectus and any amendment or supplement
thereto, when such documents are filed with the Commission, will conform in all
material respects to the requirements of the Exchange Act and the rules and
regulations of the Commission thereunder and will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; provided, however, that
this representation and warranty shall not apply to any statements or omissions
made in reliance upon and in conformity with information furnished in writing to
the Company by an Underwriter of Designated Securities through the Representatives
expressly for use in the Prospectus as amended or supplemented related to such
Securities;
(d) No order preventing or suspending the use of the Basic Prospectus, any
Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus has
been issued by the Commission and no proceeding for that purpose has been initiated
or threatened by the Commission; the Registration Statement, on the effective date
(as such effective date is defined in Rule 158(c) under the Act) conformed in all
material respects to the requirements of the Act and the Trust Indenture Act of
1939, as amended (the Trust Indenture Act) and the respective rules and
regulations of the Commission thereunder, and did not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; and, at the time the
Prospectus is filed with the Commission and at the Time of Delivery (as defined in
Section 4 hereof), the Prospectus will conform in all material respects with the
Act and the rules and regulations of the Commission thereunder and will not contain
an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading;
provided, however, that this representation and warranty shall not apply to any
statements or omissions made in reliance upon and in conformity with information
furnished in writing to the Company by an Underwriter of the Designated Securities
through the Representatives expressly for use in the Registration Statement or the
Prospectus, as the case may be;
(e) Neither the Company nor any of its subsidiaries has sustained since the date of
the latest audited financial statements included or incorporated by reference in
the Pricing Prospectus and the Prospectus any loss or interference with its
business from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action,
order or decree which is material to the Company and its subsidiaries considered as
a whole, otherwise than as set forth or contemplated in the Pricing Prospectus and
the Prospectus; and, since the respective dates as of which information is
4
given in the Registration Statement, the Pricing Prospectus and the Prospectus, there has
not been any material change in the capital stock or long-term debt of the Company
or in the consolidated capitalization of the Company and its consolidated
subsidiaries or any material adverse change, or any development involving a
prospective material adverse change, in or affecting the general affairs,
management, financial position, shareholders equity or results of operations of
the Company and its consolidated subsidiaries considered as a whole, otherwise than
as set forth or contemplated in the Pricing Prospectus and the Prospectus;
(f) The Securities have been duly authorized by the Company, and, when Designated
Securities are issued and delivered at the Time of Delivery (as defined in Section
4 hereof) pursuant to this Agreement and the Pricing Agreement with respect to such
Designated Securities and, in the case of any Contract Securities, pursuant to
Delayed Delivery Contracts with respect to such Contract Securities, such
Designated Securities will have been duly executed, authenticated, issued and
delivered and will constitute valid and legally binding obligations of the Company
enforceable against the Company in accordance with their terms, subject as to
enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors rights and to general equity
principles, and entitled to the benefits provided by the Indenture, which will be
substantially in the form filed as an exhibit to the Registration Statement;
(g) The Indenture has been duly authorized by the Company and at the Time of
Delivery will be duly qualified under the Trust Indenture Act and will constitute a
valid and legally binding instrument of the Company, enforceable against the
Company in accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to or
affecting creditors rights and to general equity principles; and the Securities
and the Indenture will conform to the descriptions thereof in the Pricing
Disclosure Package and Prospectus, as amended or supplemented;
(h) This Agreement has been duly authorized, executed and delivered by the Company.
(i) In the event any of the Securities are purchased pursuant to Delayed Delivery
Contracts, each of such Delayed Delivery Contracts has been duly authorized by the
Company and, when executed and delivered by the Company and the purchaser named
therein, will constitute a valid and legally binding agreement of the Company
enforceable against the Company in accordance with its terms, subject, as to
enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors rights
and to general equity principles; and any Delayed Delivery Contracts will conform
to the description thereof in the Pricing Disclosure Package and Prospectus, as
amended or supplemented;
5
(j) The issue and sale of the Securities and the compliance by the Company with all
of the provisions of the Securities, the Indenture, each of the Delayed Delivery
Contracts, if any, this Agreement and any Pricing Agreement, and the consummation
of the transactions herein and therein contemplated will not conflict with or
result in a breach of any of the terms or provisions of, or constitute a default
under, any material indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Company or any of its domestic Significant
Subsidiaries (as defined below) is a party or by which the Company or any of its
domestic Significant Subsidiaries is bound or to which any of the property or
assets of the Company or any of its domestic Significant Subsidiaries is subject,
nor will such action result in any violation of the provisions of the Amended
Articles of Incorporation, Regulations or By Laws of the Company or any applicable
statute or any applicable order, rule or regulation known to the Company of any
court or governmental agency or body having jurisdiction over the Company or any of
its domestic Significant Subsidiaries or any of its or their properties; and no
consent, approval, authorization, order, registration or qualification of or with
any such court or governmental agency or body is required for the issue and sale of
the Securities or the consummation by the Company of the other transactions
contemplated by this Agreement or any Pricing Agreement or the Indenture or any
Delayed Delivery Contract, except such as have been, or will have been prior to the
Time of Delivery, obtained under the Act and the Trust Indenture Act and such
consents, approvals, authorizations, registrations or qualifications as may be
required under state securities or Blue Sky laws in connection with the purchase
and distribution of the Securities by the Underwriters; (the term Significant
Subsidiary as used herein has the meaning set forth in Rule 1-02 of Regulation S-X
under the Exchange Act);
(k) There are no legal or governmental proceedings pending to which the Company or
any of its domestic Significant Subsidiaries is a party or of which any property of
the Company or any of its domestic Significant Subsidiaries is subject other than
(i) as set forth in the Pricing Prospectus and the Prospectus and (ii) legal or
governmental proceedings which would not in the aggregate reasonably be expected to
have a material adverse effect on the financial position, shareholders equity or
results of operations of the Company and its subsidiaries considered as a whole;
and no such proceedings are known by the Company to be threatened or contemplated
by governmental authorities or threatened by others; and
(l) (A)(i) At the time of filing the Registration Statement, (ii) at the time of
the most recent amendment thereto for the purposes of complying with Section
10(a)(3) of the Act (whether such amendment was or will be by post-effective
amendment, incorporated report filed pursuant to Section 13 or 15(d) of the
Exchange Act or form of prospectus), and (iii) at the time the Company or any
person acting on its behalf (within the meaning, for this clause only, of Rule
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163(c) under the Act) makes any offer relating to the Designated Securities in
reliance on the exemption of Rule 163 under the Act, the Company was or is a
well-known seasoned issuer as defined in Rule 405 under the Act; and (B) at (i)
the earliest time after the filing of the Registration Statement that the Company
or another offering participant made a
bona fide
offer (within the meaning of Rule
164(h)(2) of the Act) with respect to the Designated Securities and (ii) the time
of execution of this Agreement, the Company was not and is not an ineligible
issuer as defined in Rule 405 under the Act.
3. Upon the execution of the Pricing Agreement applicable to any Designated Securities and
authorization by the Representatives of the release of the Underwriters Securities, the several
Underwriters propose to offer the Underwriters Securities for sale upon the terms and conditions
set forth in the Pricing Prospectus as amended or supplemented.
The Company may specify in Schedule II to the Pricing Agreement applicable to any Designated
Securities that the Underwriters are authorized to solicit offers to purchase Designated
Securities from the Company pursuant to delayed delivery contracts (herein called Delayed
Delivery Contracts), substantially in the form of Annex II attached hereto but with such changes
therein as the Representatives and the Company may authorize or approve. If so specified, the
Underwriters will endeavor to make such arrangements, and as compensation therefor the Company
will pay to the Representatives for the accounts of the Underwriters, at the Time of Delivery,
such commission, if any, as may be set forth in such Pricing Agreement. Delayed Delivery
Contracts, if any, are to be with investors of the types described in the Prospectus and subject
to other conditions therein set forth. The Underwriters will not have any responsibility in
respect of the validity or performance of any Delayed Delivery Contracts.
The total principal amount of Underwriters Securities to be purchased by all the
Underwriters pursuant to such Pricing Agreement shall be the total principal amount of Designated
Securities set forth in Schedule I to such Pricing Agreement less the principal amount of the
Contract Securities. The Company will deliver to the Representatives not later than 3:30 p.m., New
York City time, on the third business day preceding the Time of Delivery specified in the
applicable Pricing Agreement (or such other time and date as the Representatives and the Company
may agree upon in writing) a written notice setting forth the principal amount of Contract
Securities.
4. Underwriters Securities to be purchased by each Underwriter pursuant to the Pricing
Agreement relating thereto, in definitive form to the extent practicable, and in such authorized
denominations and registered in such names as the Representatives may request upon at least
forty-eight hours prior notice to the Company, shall be delivered by or on behalf of the Company
to the Representatives for the account of such Underwriter, against payment by such Underwriter or
on its behalf of the purchase price therefor in the funds and in the manner specified in such
Pricing Agreement, all at the place and time and date specified in such Pricing Agreement or at
such other place and time and date as the Representatives and the Company
may agree upon in writing, such time and date being herein called the Time of Delivery for such
Securities.
7
Concurrently with the delivery of and payment for the Underwriters Securities, the Company
will deliver to the Representatives for the accounts of the Underwriters a check payable to the
order of the party designated in the Pricing Agreement relating to such Securities in the amount
of any compensation payable by the Company to the Underwriters in respect of any Delayed Delivery
Contracts as provided in Section 3 hereof and in the Pricing Agreement relating to such
Securities.
5. The Company agrees with each of the Underwriters of any Designated Securities:
(a) To make no further amendment or any supplement to the Registration Statement,
the Basic Prospectus, any Preliminary Prospectus or the Prospectus after the date
of the Pricing Agreement relating to such Securities and prior to the Time of
Delivery for such Securities to which the Representatives for such Securities,
promptly after reasonable notice thereof, shall have reasonably disapproved; to
advise the Representatives promptly of any such amendment or supplement after such
Time of Delivery and furnish the Representatives with copies thereof; to file
promptly all reports and any definitive proxy or information statements required to
be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or
15(d) of the Exchange Act for so long as the delivery of a prospectus (or, in lieu
thereof, the notice referred to in Rule 173(a) under the Act) is required in
connection with the offering or sale of such Securities, and during such same
period to advise the Representatives, promptly after it receives notice thereof, of
the time when any amendment to the Registration Statement has been filed or has
become effective or any amendment or supplement to any Issuer Free Writing
Prospectus or the Prospectus has been filed or mailed for filing, of the issuance
by the Commission of any stop order or of any order preventing or suspending the
use of any preliminary prospectus or other prospectus relating to the Securities,
of any notice of objection of the Commission to the use of the Registration
Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under
the Act, of the suspension of the qualification of such Securities for offering or
sale in any jurisdiction, of the initiation or threatening of any proceeding for
any such purpose, or of any request by the Commission for the amending or
supplementing of the Registration Statement or Prospectus or for additional
information; and, in the event of the issuance of any such stop order or of any
such order preventing or suspending the use of any preliminary prospectus or other
prospectus relating to the Securities or suspending any such qualification, to use
promptly its best efforts to obtain its withdrawal;
(b) If required by Rule 430B(h) under the Act, to prepare a form of prospectus and
to file such form of prospectus pursuant to Rule 424(b) under the Act not later
than may be required by Rule 424(b) under the Act; and to make no further amendment
or supplement to such form of prospectus to which the
Representatives for such Securities, promptly after reasonable notice thereof,
shall have reasonably disapproved;
8
(c) Promptly from time to time to take such action as the Representatives may
reasonably request to qualify such Securities for offering and sale under the
securities laws of such jurisdictions as the Representatives may request and to
comply with such laws so as to permit the continuance of sales and dealings in such
jurisdictions for as long as may be necessary to complete the distribution of such
Securities, provided that in connection therewith the Company shall not be required
to (i) qualify as a foreign corporation, (ii) file a general consent to service of
process in any jurisdiction, or (iii) subject itself to taxation in any such
jurisdiction if it is not otherwise so subject;
(d) To furnish the Underwriters with written or electronic copies of the Pricing
Prospectus and the Prospectus as amended or supplemented in such quantities as the
Representatives may from time to time reasonably request, and, if the delivery of a
prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the
Act) is required at any time in connection with the offering or sale of the
Securities and if at such time any event shall have occurred as a result of which
the Pricing Disclosure Package or the Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made when such Pricing Disclosure Package or
Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the
Act) is delivered, not misleading, or, if for any other reason it shall be
necessary during such same period to amend or supplement the Pricing Disclosure
Package or the Prospectus or to file under the Exchange Act any document
incorporated by reference in the Pricing Disclosure Package or the Prospectus in
order to comply with the Act, the Exchange Act or the Trust Indenture Act or the
respective rules thereunder, to notify the Representatives of such event and upon
their request to file such document and to prepare and furnish without charge to
each Underwriter and to any dealer in securities as many written or electronic
copies as the Representatives may from time to time reasonably request of an
amended Pricing Disclosure Package or Prospectus or a supplement to the Pricing
Disclosure Package or the Prospectus which will correct such statement or omission
or effect such compliance;
(e) To make generally available to its security holders as soon as practicable, but
in any event not later than eighteen months after the effective date of the
Registration Statement (as such effective date is defined in Rule 158(c) under the
Act), an earning statement of the Company and its subsidiaries (which need not be
audited) complying with Section 11(a) of the Act and the rules and regulations of
the Commission thereunder (including at the option of the Company Rule 158);
(f) During the period beginning on the date of the Pricing Agreement for such
Designated Securities and continuing to and including the earlier of (i) the
termination of trading restrictions for such Designated Securities, as notified to
the Company by the Representatives and (ii) the Time of Delivery for such
9
Designated Securities, not to offer, sell, contract to sell or otherwise dispose of
any debt securities of the Company which mature more than one year after such Time
of Delivery and which are substantially similar to such Designated Securities,
without the prior written consent of the Representatives; and
(g) To pay the required Commission filing fees relating to such Designated
Securities within the time required by Rule 456(b)(1) under the Act and otherwise in
accordance with Rules 456(b) and 457(r) under the Act.
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6.
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(a) Except as provided in Section 6(b) below with respect to the Final Term
Sheet (as defined below), (i) the Company represents and agrees that, without the
prior consent of the Representatives, it has not made and will not make any offer
relating to the Designated Securities that would constitute a free writing
prospectus as defined in Rule 405 under the Act required to be filed by the Company
with the Commission under Rule 433 under the Act, and (ii) each Underwriter represents
and agrees that, without the prior consent of the Company and the Representatives, it
has not made and will not make any offer relating to the Designated Securities that
would constitute a free writing prospectus required to be filed by the Company with
the Commission under Rule 433 under the Act, other than one or more term sheets
relating to the Designated Securities containing customary information (which, in
their final form, will not be inconsistent with the Final Term Sheet) and conveyed to
purchasers of such Designated Securities; and
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(b) The Company and each of the Underwriters each has complied and will comply with
the requirements of Rule 433 under the Act to the extent applicable to any Issuer
Free Writing Prospectus. The Company has complied and will comply with the
requirements of Rule 433 with regard to timely filing with the Commission or
retention where required and legending of any Issuer Free Writing Prospectus. If
the Representatives prepare and timely provide to the Company a writing containing
solely a description of the terms of the Designated Securities and of the offering,
the Company will (i) review and (subject to such changes deemed appropriate by the
Company and the Representatives) approve, if requested by the Representatives in
connection with the offer and sale of the Designated Securities, such writing (as
so approved, the Final Term Sheet) and (ii) file such Final Term Sheet pursuant
to Rule 433(d) under the Act.
7. The Company covenants and agrees with the several Underwriters that the Company will pay
or cause to be paid the following: (i) the fees, disbursements and expenses of the Companys
counsel and accountants in connection with the registration of the Securities under the Act and
all other expenses in connection with the preparation, printing and filing of the
Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus,
any Issuer Free Writing Prospectus and the Prospectus and amendments and supplements thereto and
the mailing and delivering of copies thereof to the Underwriters and dealers; (ii) the cost of
printing or producing any Agreement among Underwriters, this
10
Agreement, any Pricing Agreement, any
Indenture, any Delayed Delivery Contracts, any Blue Sky and Legal Investment Memoranda and any
other documents in connection with the offering, purchase, sale and delivery of the Securities;
(iii) all expenses in connection with the qualification of the Securities for offering and sale
under state securities laws as provided in Section 5(c) hereof, including the fees and
disbursements of counsel for the Underwriters in connection with such qualification and in
connection with the Blue Sky and legal investment surveys; (iv) any fees charged by securities
rating services for rating the Securities; (v) any filing fees incident to any required review by
the National Association of Securities Dealers, Inc. of the terms of the sale of the Securities;
(vi) the cost of preparing the Securities; (vii) the fees and expenses of any Trustee and any
agent of any Trustee and the fees and disbursements of counsel for any Trustee in connection with
the Indenture and the Securities; and (viii) all other costs and expenses incident to the
performance of its obligations hereunder and under any Delayed Delivery Contracts which are not
otherwise specifically provided for in this Section. It is understood, however, that, except as
provided in this Section, Section 9 and Section 12 hereof, the Underwriters will pay all of their
own costs and expenses, including the fees of their counsel, transfer taxes on resale of any of
the Securities by them, and any advertising expenses and expenses of any free writing prospectus
(as defined in Rule 405 under the Act), other than an Issuer Free Writing Prospectus, that is used
or referred to by the Underwriters connected with any offers they may make.
To the extent permitted by applicable law, the Company will indemnify and hold harmless the
Underwriters from any documentary, stamp, stamp duty reserve or similar issue tax or duty and any
related interest or penalties on, and value added tax (if any) payable in respect of the execution
of this Agreement or the issue, sale and delivery of the Securities to the subscribers which are
or may be payable in any jurisdiction.
8. The obligations of the Underwriters of any Designated Securities under the Pricing
Agreement relating to such Designated Securities shall be subject, in the discretion of the
Representatives, to the condition that all representations and warranties and other statements of
the Company in or incorporated by reference in such Pricing Agreement are, at and as of the Time
of Delivery for such Designated Securities, true and correct, the condition that the Company shall
have performed all of its obligations hereunder theretofore to be performed, and the following
additional conditions:
(a) No stop order suspending the effectiveness of the Registration Statement shall
have been issued and no proceeding for that purpose shall have been initiated or
threatened by the Commission; no notice of objection of the Commission to the use
of the Registration Statement or any post-effective amendment thereto pursuant to
Rule 401(g)(2) under the Act shall have been received; no stop order suspending or
preventing the use of the Prospectus or any Issuer Free Writing Prospectus shall
have been initiated or threatened by the Commission; and all requests for
additional information on the part of the
Commission shall have been complied with to the Representatives reasonable
satisfaction;
11
(b) Fried, Frank, Harris, Shriver & Jacobson LLP, counsel for the Underwriters,
shall have furnished to the Representatives such opinion or opinions, dated the
Time of Delivery for such Designated Securities, with respect to the validity of
the Indenture, the Designated Securities, the Delayed Delivery Contracts, if any,
the Registration Statement, the Pricing Disclosure Package, the Prospectus as
amended or supplemented and other related matters as the Representatives may
reasonably request, and such counsel shall have received such papers and
information as they may reasonably request to enable them to pass upon such
matters. In rendering such opinion or opinions, such counsel may rely as to all
matters governed by Ohio law upon the opinion referred to in subsection (c) of this
Section;
(c) [NAME], Counsel for the Company, shall have furnished to the Underwriters his
or her written opinion, dated the Time of Delivery for such Designated Securities,
in form and substance satisfactory to the Representatives, to the effect that:
(i) The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Ohio, with
corporate power and authority to own its properties and conduct its
business as described in the Pricing Disclosure Package and the Prospectus
as amended or supplemented;
(ii) The Company has an authorized capitalization as set forth in the
Pricing Disclosure Package and the Prospectus as amended or supplemented
and all of the issued shares of capital stock of the Company have been duly
and validly authorized and issued and are fully paid and non-assessable;
(iii) Each domestic Significant Subsidiary of the Company has been duly
incorporated and is validly existing as a corporation in good standing
under the laws of its jurisdiction of incorporation; and all of the issued shares of capital stock of each such Significant Subsidiary have been duly
and validly authorized and issued and are fully paid and non-assessable
(such counsel being entitled to rely in respect of the opinion in this
clause upon opinions of local counsel and in respect of matters of fact
upon certificates of officers of the Company or its domestic Significant
Subsidiaries);
(iv) The Company and each of its domestic Significant Subsidiaries are duly
authorized and are in good standing to do business in each jurisdiction in
the United States, other than their respective jurisdictions of
incorporation, in which they own or lease properties, or conduct any
business, so as to require such qualification (such counsel being entitled
to rely in respect of the opinion in this clause upon opinions of local
counsel
12
and in respect of matters of fact upon certificates of officers of
the Company or its domestic Significant Subsidiaries);
(v) To the best of such counsels knowledge, there are no legal or
governmental proceedings pending to which the Company or any of its
domestic Significant Subsidiaries is a party or of which any property of
the Company or any of its domestic Significant Subsidiaries is the subject,
other than as set forth in the Pricing Disclosure Package and the
Prospectus and other than legal or governmental proceedings which would not
in the aggregate reasonably be expected to have a material adverse effect
on the consolidated financial position, shareholders equity or results of
operations of the Company and its subsidiaries considered as a whole; and,
to the best of such counsels knowledge, no such proceedings are threatened
or contemplated by governmental authorities or threatened by others;
(vi) This Agreement and the Pricing Agreement with respect to the
Designated Securities have been duly authorized, executed and delivered by
the Company;
(vii) In the event any of the Designated Securities are to be purchased
pursuant to Delayed Delivery Contracts, each of such Delayed Delivery
Contracts has been duly authorized, executed and delivered by the Company
and, assuming such Contract has been duly executed and delivered by the
purchaser named therein, constitutes a valid and legally binding agreement
of the Company enforceable against the Company in accordance with its
terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization and other laws of general applicability relating to or
affecting creditors rights and to general equity principles; and any
Delayed Delivery Contracts conform to the description thereof in the
Pricing Disclosure Package and the Prospectus as amended or supplemented;
(viii) The Designated Securities have been duly authorized; the
Underwriters Securities have been duly executed, authenticated, issued and
delivered and, assuming receipt by the Company of payment of the issue
price of the Underwriters Securities, will constitute valid and legally
binding obligations of the Company enforceable against the Company in
accordance with their terms, subject as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating
to or affecting creditors rights and to general equity principles, and
entitled to the benefits provided by the Indenture; the Contract
Securities, if any, when executed, authenticated, issued and delivered
pursuant to the Indenture and Delayed Delivery Contracts, if
any, will constitute valid and legally binding obligations of the Company
entitled to the benefits provided by the Indenture; and the Designated
13
Securities and the Indenture conform to the descriptions thereof in the
Pricing Disclosure Package and the Prospectus as amended or supplemented;
(ix) The Indenture has been duly authorized, executed and delivered by the
Company and constitutes a valid and legally binding instrument, enforceable
against the Company in accordance with its terms, subject, as to
enforcement, to bankruptcy, insolvency, reorganization, moratorium and
other laws of general applicability relating to or affecting creditors
rights and to general equity principles; and the Indenture has been duly
qualified under the Trust Indenture Act;
(x) The issue and sale of the Designated Securities and the compliance by
the Company with all of the provisions of the Designated Securities, the
Indenture, each of the Delayed Delivery Contracts, if any, this Agreement
and the Pricing Agreement with respect to the Designated Securities and the
consummation of the transactions herein and therein contemplated will not
conflict with or result in a breach of any of the terms or provisions of,
or constitute a default under, any material indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument known to such
counsel to which the Company or any of its domestic Significant
Subsidiaries is a party or by which the Company or any of its domestic
Significant Subsidiaries is bound or to which any of the property or assets
of the Company or any of its domestic Significant Subsidiaries is subject,
nor will such action result in any violation of the provisions of the
Amended Articles of Incorporation, Regulations or By Laws of the Company or
any applicable statute or any applicable order, rule or regulation known to
such counsel of any court or governmental agency or body having
jurisdiction over the Company or any of its domestic Significant
Subsidiaries or any of its or their properties; and no consent, approval,
authorization, order, registration or qualification of or with any such
court or governmental agency or body of the State of New York, the State of
Ohio or the United States of America is required for the issue and sale of
the Designated Securities or the consummation by the Company of the other
transactions contemplated by this Agreement or such Pricing Agreement or
the Indenture or any of such Delayed Delivery Contracts, except such as
have been obtained under the Act and the Trust Indenture Act and such
consents, approvals, authorizations, registrations or qualifications as may
be required under state securities or Blue Sky laws in connection with the
purchase and distribution of the Designated Securities by the Underwriters;
(xi) The documents incorporated by reference in the Pricing Prospectus or
the Prospectus, as amended or supplemented (other than the
financial statements and related schedules therein, as to which such
counsel need express no opinion), when they were filed with the
14
Commission,
complied as to form in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission thereunder;
and such counsel has no reason to believe that any of such documents, when
they were so filed, contained an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made when
such documents were so filed, not misleading; and
(xii) The Registration Statement as of the effective date (as such term is
defined in Rule 158(c) under the Act) and the Prospectus as of its issue
date, as amended or supplemented, (other than the financial statements and
related schedules therein, as to which such counsel need express no
opinion) comply as to form in all material respects with the requirements
of the Act and the Trust Indenture Act and the rules and regulations
thereunder; such counsel has no reason to believe (x) that the Registration
Statement, at the time it was deemed effective, contained an untrue
statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not
misleading; or (y) that the Pricing Disclosure Package, as of the
Applicable Time, contained any untrue statement of a material fact or
omitted to state any material fact necessary in order to make the
statements therein, in the light of circumstances under which they were
made, not misleading; or (z) that, as of its date and as of the Time of
Delivery, the Prospectus or any such further amendment or supplement
thereto made by the Company prior to the Time of Delivery contained or
contains an untrue statement of a material fact or omitted or omits to
state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading; such counsel does not know of any contracts or other
documents of a character required to be filed as an exhibit to the
Registration Statement or required to be incorporated by reference into the
Prospectus as amended or supplemented or required to be described in the
Registration Statement, the Basic Prospectus or the Prospectus as amended
or supplemented which are not filed or incorporated by reference or
described as required; and the statements in the Pricing Disclosure Package
and the Prospectus as amended or supplemented describing the Designated
Securities are accurate and fairly present the information required or
purported to be shown.
In rendering such opinion or opinions, such counsel may rely as to all matters
governed by New York law upon the opinions referred to in subsection (b) of this
Section;
(d) On the date of the Pricing Agreement and at the Time of Delivery for such
Designated Securities, Deloitte & Touche LLP, which has rendered its opinion on
15
the
financial statements of the Company and its subsidiaries included or incorporated
by reference in the Registration Statement, shall have furnished to the
Representatives a comfort letter, in form and substance satisfactory to the
Representatives;
(e) (i) Neither the Company nor any of its subsidiaries shall have sustained since
the date of the latest audited financial statements included or incorporated by
reference in the Pricing Prospectus or the Prospectus any loss or interference with
its business from fire, explosion, flood or other calamity, whether or not covered
by insurance, or from any labor dispute or court or governmental action, order or
decree, otherwise than as set forth or contemplated in the Pricing Prospectus or
the Prospectus, and (ii) since the respective dates as of which information is
given in the Registration Statement and the Pricing Prospectus there shall not have
been any change in the capital stock or long-term debt of the Company or any of its
subsidiaries or in the consolidated capitalization of the Company and its
consolidated subsidiaries or any change, or any development involving a prospective
change, in or affecting the general affairs, management, financial position,
shareholders equity or results of operations of the Company and its subsidiaries
considered as a whole, otherwise than as set forth or contemplated in the Pricing
Prospectus or the Prospectus, the effect of which, in any such case described in
Clause (i) or (ii), is in the judgment of the Representatives so material and
adverse as to make it impracticable or inadvisable to proceed with the public
offering or the delivery of the Designated Securities on the terms and in the
manner contemplated in the Pricing Prospectus or the Prospectus;
(f) Subsequent to the date of the Pricing Agreement relating to the Designated
Securities no downgrading shall have occurred in the rating accorded the Companys
debt securities by any nationally recognized statistical rating organization, as
that term is defined under Section 3(a)(62) of the Exchange Act and no public
announcement shall have been made by any such organization that it has under
surveillance or review, with possible negative implications, its rating of any of
the Companys debt securities;
(g) Subsequent to the date of the Pricing Agreement relating to the Designated
Securities there shall not have occurred any of the following: (i) a suspension or
material limitation in trading in securities generally on the New York Stock
Exchange or the over-the-counter market; (ii) a suspension or material limitation
in trading in the Companys securities on the New York Stock Exchange or the
over-the-counter market; (iii) a general moratorium on commercial banking
activities in New York declared by either Federal or New York State authorities or
a material disruption in commercial banking or securities settlement or clearance
services in the United States; (iv) the outbreak or escalation of hostilities
involving the United States or the declaration by the
United States of a national emergency or war; or (v) the occurrence of any other
calamity or crisis or any change in financial, political or economic conditions in
16
the United States or elsewhere, if the effect of any such event specified in clause
(iv) or (v) in the judgment of the Representatives makes it impracticable or
inadvisable to proceed with the public offering or the delivery of the
Underwriters Securities on the terms and in the manner contemplated in the Pricing
Prospectus or the Prospectus as amended or supplemented; and
(h) The Company shall have furnished or caused to be furnished to the
Representatives at the Time of Delivery for the Designated Securities certificates
of officers of the Company satisfactory to the Representatives as to the accuracy
of the representations and warranties of the Company herein at and as of such Time
of Delivery, as to the performance by the Company of all of its obligations
hereunder to be performed at or prior to such Time of Delivery, as to the matters
set forth in subsections (a) and (e) of this Section, and as to such other matters
as the Representatives may reasonably request.
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9.
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(a) The Company will indemnify and hold harmless each Underwriter against any
losses, claims, damages or liabilities, joint or several, to which such Underwriter
may become subject, under the Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon
an untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing
Prospectus, the Prospectus, or any amendment or supplement thereto, any Issuer Free
Writing Prospectus, the Pricing Disclosure Package or any issuer information filed
or required to be filed pursuant to Rule 433(d) under the Act or arise out of or are
based upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, and
will reimburse each Underwriter for any legal or other expenses reasonably incurred by
each Underwriter in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, that the Company shall not be
liable in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in the Registration Statement, the Basic Prospectus,
any Preliminary Prospectus, the Pricing Prospectus, the Prospectus, or any amendment
or supplement thereto, any Issuer Free Writing Prospectus or the Pricing Disclosure
Package, in reliance upon and in conformity with written information furnished to the
Company by the Underwriters of Designated Securities through the Representatives
expressly for use therein.
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(b) Each of the Underwriters severally and not jointly will indemnify and hold
harmless the Company against any losses, claims, damages or liabilities to which
the Company may become subject, under the Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon an untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, the Pricing Prospectus, the Prospectus, or any
17
amendment or supplement
thereto, any Issuer Free Writing Prospectus or the Pricing Disclosure Package, or
arise out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged omission
was made in the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, the Pricing Prospectus, the Prospectus, or any amendment or supplement
thereto, any Issuer Free Writing Prospectus or the Pricing Disclosure Package, in
reliance upon and in conformity with written information furnished to the Company
by such Underwriter through the Representatives expressly for use therein; and will
reimburse the Company for any legal or other expenses reasonably incurred by the
Company in connection with investigating or defending any such action or claim as
such expenses are incurred.
(c) Promptly after receipt by an indemnified party under subsection (a) or (b)
above of notice of the commencement of any action, such indemnified party shall, if
a claim in respect thereof is to be made against the indemnifying party under such
subsection, notify the indemnifying party in writing of the commencement thereof;
but the omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party otherwise than under such
subsection. In case any such action shall be brought against any indemnified party
and it shall notify the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate therein and, to the extent that
it shall wish, jointly with any other indemnifying party similarly notified, to
assume the defense thereof, with counsel satisfactory to such indemnified party
(who shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party under such
subsection for any legal expenses of other counsel of any other expenses, in each
case subsequently incurred by such indemnified party, in connection with the
defense thereof other than reasonable costs of investigation.
(d) If the indemnification provided for in this Section 9 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b)
above in respect of any losses, claims, damages or liabilities (or actions in
respect thereof) referred to therein, then each indemnifying party shall contribute
to the amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (or actions in respect thereof) in such proportion
as is appropriate to reflect the relative benefits received by the Company on the
one hand and the Underwriters of the Designated Securities on the other from the
offering of the Designated Securities to which such loss, claim, damage or
liability (or action in respect thereof) relates. If, however, the allocation
provided
by the immediately preceding sentence is not permitted by applicable law or if the
indemnified party failed to give the notice required under subsection (c)
18
above, then each indemnifying party shall contribute to such amount paid or payable by
such indemnified party in such proportion as is appropriate to reflect not only
such relative benefits but also the relative fault of the Company on the one hand
and the Underwriters of the Designated Securities on the other in connection with
the statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative benefits received by the Company on the one
hand and such Underwriter on the other shall be deemed to be in the same proportion
as the total net proceeds from such offering (before deducting expenses) received
by the Company bear to the total underwriting discounts and commissions received by
such Underwriter. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or such Underwriter on the other and the
parties relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The Company and the Underwriters
agree that it would not be just and equitable if contribution pursuant to this
subsection (d) were determined by pro rata allocation (even if the Underwriters
were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in
this subsection (d). The amount paid or payable by an indemnified party as a result
of the losses, claims, damages or liabilities (or actions in respect thereof)
referred to above in this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions
of this subsection (d), no Underwriter shall be required to contribute any amount
in excess of the amount by which the total price at which the applicable Designated
Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such Underwriter has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. The obligations of
the Underwriters of Designated Securities in this subsection (d) to contribute are
several in proportion to their respective underwriting obligations with respect to
such Securities and not joint.
(e) The obligations of the Company under this Section 9 shall be in addition to any
liability which the Company may otherwise have and shall extend, upon the same
terms and conditions, to each officer and director of the Underwriters and to each
person, if any, who controls any Underwriter within the meaning of the Act; and the
obligations of the Underwriters under this Section 9 shall be in addition to any
liability which the respective Underwriters may otherwise have
and shall extend, upon the same terms and conditions, to each officer and director
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of the Company and to each person, if any, who controls the Company within the
meaning of the Act.
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10.
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(a) If any Underwriter shall default in its obligation to purchase the
Underwriters Securities which it has agreed to purchase under the Pricing Agreement
relating to such Securities, the Representatives may in their discretion arrange for
themselves or another party or other parties to purchase such Underwriters Securities
on the terms contained herein. If within thirty-six hours after such default by any
Underwriter, the Representatives do not arrange for the purchase of such Underwriters
Securities, then the Company shall be entitled to a further period of thirty-six hours
within which to procure another party or other parties satisfactory to the
Representatives to purchase such Underwriters Securities on such terms. In the event
that, within the respective prescribed period, the Representatives notify the Company
that they have so arranged for the purchase of such Underwriters Securities, or the
Company notifies the Representatives that it has so arranged for the purchase of such
Underwriters Securities, the Representatives or the Company shall have the right to
postpone the Time of Delivery for such Underwriters Securities for a period of not
more than seven days, in order to effect whatever changes may thereby be made
necessary in the Registration Statement or the Prospectus as amended or supplemented,
or in any other documents or arrangements, and the Company agrees to file promptly any
amendments or supplements to the Registration Statement or the Prospectus which in the
opinion of the Representatives may thereby be made necessary. The term Underwriter
as used in this Agreement and the Pricing Agreement with respect to such Securities
shall include any person substituted under this Section with like effect as if such
person had originally been a party to such Pricing Agreement with respect to such
Designated Securities.
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(b) If, after giving effect to any arrangements for the purchase of the
Underwriters Securities of a defaulting Underwriter or Underwriters by the
Representatives and the Company as provided in subsection (a) above, the aggregate
principal amount of such Underwriters Securities which remains unpurchased does
not exceed one-eleventh of the aggregate principal amount of the Designated
Securities, then the Company shall have the right to require each non-defaulting
Underwriter to purchase the principal amount of Underwriters Securities which such
Underwriter agreed to purchase under the Pricing Agreement relating to such
Designated Securities and, in addition, to require each non-defaulting Underwriter
to purchase its pro rata share (based on the principal amount of Designated
Securities which such Underwriter agreed to purchase under such Pricing Agreement)
of the Underwriters Securities of such defaulting Underwriter or Underwriters for
which such arrangements have not been made; but nothing herein shall relieve a
defaulting Underwriter from liability for its default.
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(c) If, after giving effect to any arrangements for the purchase of the
Underwriters Securities of a defaulting Underwriter or Underwriters by the
Representatives and the Company as provided in subsection (a) above, the aggregate
principal amount of Underwriters Securities which remains unpurchased exceeds
one-eleventh of the aggregate principal amount of the Designated Securities, as
referred to in subsection (b) above, or if the company shall not exercise the right
described in subsection (b) above to require non-defaulting Underwriters to
purchase Underwriters Securities of a defaulting Underwriter or Underwriters, then
the Pricing Agreement relating to such Designated Securities shall thereupon
terminate, without liability on the part of any non-defaulting Underwriter or the
Company, except for the expenses to be borne by the Company and the Underwriters as
provided in Section 7 hereof and the indemnity and contribution agreements in
Section 9 hereof; but nothing herein shall relieve a defaulting Underwriter from
liability for its default.
11. The respective indemnities, agreements, representations, warranties and other statements
of the Company and the several Underwriters, as set forth in this Agreement or made by or on
behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect,
regardless of any investigation (or any statement as to the results thereof) made by or on behalf
of any Underwriter or any controlling person of any Underwriter, or the Company, or any officer or
director or controlling person of the Company, and shall survive delivery of and payment for the
Securities.
12. If any Pricing Agreement shall be terminated pursuant to Section 10 hereof, the Company
shall not then be under any liability to any Underwriter with respect to the Designated Securities
covered by such Pricing Agreement except as provided in Section 7 and Section 9 hereof; but, if
for any other reason Underwriters Securities are not delivered by or on behalf of the Company as
provided herein, the Company will reimburse the Underwriters through the Representatives for all
out-of-pocket expenses approved in writing by the Representatives, including fees and
disbursements of counsel, reasonably incurred by the Underwriters in making preparations for the
purchase, sale and delivery of such Designated Securities, but the Company shall then be under no
further liability to any Underwriters with respect to such Designated Securities except as
provided in Section 7 and Section 9 hereof.
13. In all dealings hereunder, the Representatives of the Underwriters of Designated
Securities shall act on behalf of each of such Underwriters, and the parties hereto shall be
entitled to act and rely upon any statement, request, notice or agreement on behalf of any
Underwriter made or given by such Representatives jointly or by such of the Representatives, if
any, as may be designated for such purpose in the Pricing Agreement.
All statements, requests, notices and agreements hereunder shall be in writing or by telegram
if promptly confirmed in writing, and if to the Underwriters shall be sufficient in all respects
if delivered or sent by registered mail to the address of the Underwriters as set forth in the
Pricing Agreement; and if to the Company shall be sufficient in all respects if delivered, or sent
by registered mail to the address of the Company set forth in the Registration Statement,
Attention: Secretary; provided, however, that any notice to any Underwriter pursuant to Section
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9(c) hereof shall be delivered or sent by registered mail to such Underwriter at the address set
forth in its Underwriters Questionnaire, or telex constituting such Questionnaire, which address
will be supplied to the Company by the Representatives upon request.
14. Each of the Company and the Underwriters acknowledges and agrees that (i) the purchase
and sale of the Securities pursuant to this Agreement is an arms-length commercial transaction
between the Company, on the one hand, and the Underwriters, on the other, and (ii) in connection
therewith and with the process leading to such transaction each Underwriter is acting (and shall
at all times continue to act) solely as a principal and not the agent of the Company.
15. This Agreement and each Pricing Agreement shall be binding upon, and inure solely to the
benefit of, the Underwriters, the Company and, to the extent provided in Section 9 and Section 11
hereof, the officers and directors of the Company and each person who controls the Company or any
Underwriter, and their respective heirs, executors, administrators, successors and assigns, and no
other person shall acquire or have any right under or by virtue of this Agreement or any such
Pricing Agreement. No purchaser of any of the Securities from any Underwriter shall be deemed a
successor or assign by reason merely of such purchase.
16. Time shall be of the essence of each Pricing Agreement.
17. This Agreement, each Pricing Agreement and each of the Delayed Delivery Contracts, if
any, shall be governed by and construed in accordance with the laws of the State of New York.
18. This Agreement and each Pricing Agreement may be executed by any one or more of the
parties hereto and thereto in any number of counterparts, each of which shall be deemed to be an
original, but all such respective counterparts shall together constitute one and the same
instrument.
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Very truly yours,
THE PROCTER & GAMBLE COMPANY
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By:
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Name:
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Title:
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Accepted as of the date hereof:
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By:
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By:
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Name:
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Title:
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ANNEX I:
Pricing
Agreement
[DATE]
[Names of Representatives],
As representatives of the several Underwriters
named in Schedule I hereto,
[c/o Representatives]
[Address(es) of Representatives]
Dear Sirs/Mesdames:
The Procter & Gamble Company (the Company) proposes, subject to the terms and conditions stated
herein and in the Underwriting Agreement, dated [DATE] (the Underwriting Agreement), to issue and
sell to the Underwriters named in Schedule I hereto (the Underwriters) the Securities specified
in Schedule II hereto (the Designated Securities).
Each of the provisions of the Underwriting Agreement is incorporated herein by reference in its
entirety, and shall be deemed to be a part of this Agreement to the same extent as if such
provisions had been set forth in full herein; and each of the representations and warranties set
forth therein shall be deemed to have been made at and as of the date of this Pricing Agreement,
except that each representation and warranty in Section 2 of the Underwriting Agreement which makes
reference to the Pricing Prospectus and the Prospectus shall be deemed to be a representation and
warranty as of the date of the Underwriting Agreement in relation to the Pricing Prospectus and the
Prospectus (as therein defined), and also a representation and warranty as of the date of this
Pricing Agreement in relation to the Pricing Prospectus and the Prospectus as amended or
supplemented relating to the Designated Securities which are the subject of this Pricing Agreement,
each representation and warranty in Section 2 of the Underwriting Agreement which makes reference
to the Pricing Disclosure Package shall be deemed to be a representation and warranty as of the
Applicable Time (as set forth in Schedule II hereto) in relation to the Pricing Disclosure Package
(as therein defined). Each reference to the Underwriters herein and in the provisions of the
Underwriting Agreement so incorporated by reference shall be deemed to refer to you. Unless
otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein
defined. The address of the Underwriters referred to in Section 13 of the Underwriting Agreement is
set forth at the end of Schedule II hereto.
An amendment to the Registration Statement, or a supplement to the Prospectus, as the case may be,
relating to the Designated Securities, in the form heretofore delivered to you is now proposed to
be filed, or in the case of a supplement mailed for filing, with the Commission.
Subject to the terms and conditions set forth herein and in the Underwriting Agreement incorporated
herein by reference, the Company agrees to issue and sell to the Underwriters, and the Underwriters
agree to purchase from the Company, at the time and place and at the purchase price to the
Underwriters set forth in Schedule II hereto, the principal amount of Designated Securities set
forth in Schedule I hereto, less the principal amount of Designated Securities covered by Delayed
Delivery Contracts, if any, as may be specified in such Schedule II.
Each Underwriter severally and not jointly agrees that it will not offer, sell or deliver any of
the Designated Securities in any jurisdiction outside the United States except under circumstances
that will result in compliance with the applicable laws thereof. Each Underwriter severally and not
jointly acknowledges that no action has been taken to permit a public offering in any jurisdiction
outside the United States where action would be required for such purpose.
Each Underwriter severally and not jointly represents, warrants and agrees that (i) it has only
communicated or caused to be communicated and will only communicate or cause to be communicated an
invitation or inducement to engage in investment activity (within the meaning of Section 21 of the
Financial Services and Markets Act 2000
(FSMA)) received by it in connection with the issue or sale of any Designated Securities in
circumstances in which Section 21(1) of the FSMA does not apply to the Company; and (ii) it has
complied and will comply with all applicable provisions of the FSMA with respect to anything done
by it in relation to the Designated Securities in, from or otherwise involving the United Kingdom.
Each Underwriter severally and not jointly represents and agrees that, in relation to each Member
State of the European Economic Area which has implemented the Prospectus Directive (each, a
Relevant Member State), with effect from and including the date on which the Prospectus Directive
is implemented in that Relevant Member State (the Relevant Implementation Date), it has not made
and will not make an offer of Designated Securities to the public in that Relevant Member State
prior to the publication of a prospectus in relation to the Designated Securities which has been
approved by the competent authority in that Relevant Member State or, where appropriate, approved
in another Relevant Member State and notified to the competent authority in that Relevant Member
State, all in accordance with the Prospectus Directive, except that it may, with effect from and
including the Relevant Implementation Date, make an offer of Designated Securities to the public in
that Relevant Member State at any time:
(i) to legal entities which are authorized or regulated to operate in the financial markets
or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities;
(ii) to any legal entity which has two or more of (1) an average of at least 250 employees
during the last financial year; (2) a total balance sheet of more than
43,000,000 and (3) an
annual net turnover of more than
50,000,000, as shown in its last annual or consolidated accounts;
(iii) to fewer than 100 natural or legal persons (other than qualified investors as defined in
the Prospectus Directive) subject to obtaining the prior consent of the representatives for any
such offer; or
(iv) in any other circumstances which do not require the publication of a prospectus pursuant
to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an offer of Designated Securities to the
public in relation to any Designated Securities in any Relevant Member State means the
communication to persons in any form and by any means of sufficient information on the terms of the
offer and the Designated Securities to be offered so as to enable an investor to decide to purchase
or subscribe the Designated Securities, as the same may be varied in that Member State by any
measure implementing the Prospectus Directive in that Member State and the expression Prospectus
Directive means Directive 2003/71/EC and includes any relevant implementing measure in each
Relevant Member State.
If the foregoing is in accordance with your understanding, please sign and return to us two
counterparts hereof, and upon acceptance hereof by you this letter and such acceptance hereof,
including the provisions of the Underwriting Agreement incorporated herein by reference, shall
constitute a binding agreement among the Underwriters and the Company.
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Very truly yours,
THE PROCTER & GAMBLE COMPANY
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By:
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Name:
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Title:
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Accepted as of the date hereof:
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By:
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By:
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Name:
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Title:
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SCHEDULE I
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Principal Amount of Designated
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Underwriters
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Securities to be Purchased
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$
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Total
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$
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Schedule I
SCHEDULE II
Title of Designated Securities: [ %] [Floating Rate] [Zero Coupon] [Notes] [Debentures] due
Aggregate Principal Amount: $[ ]
Price to Public:
___% of the principal amount of the Designated Securities, plus accrued interest from ___
if settlement occurs after that date [and accrued amortization,
if any, from ___ to ___]
Purchase Price by Underwriters:
___% of the principal amount of the Designated Securities, plus accrued interest from ___
if settlement occurs after that date [and accrued amortization,
if any, from ___ to ___]
Method of and Specified Funds for Payment of Purchase Price:
[By certified or official bank check or checks, payable to the order of the Company in [New
York Clearing House] [same day] funds] [By wire transfer of immediately available funds payable to
the order of the Company or its designee] [Other specified method]
Indenture:
Indenture,
dated as of September 3, 2009, between the Company and Deutsche Bank Trust Company
Americas, as Trustee, including the Officers Certificate to be dated ___, with respect to the
terms of the Designated Securities
Applicable Time:
[Time and date], 20___.
Time of Delivery:
[Time and date], 20___.
Closing Location:
Names and Addresses of Underwriters:
Designated Representatives:
Securities Exchange:
Schedule II
[None] [Securities to be listed on the [New York] Stock Exchange]
Delayed Delivery:
[None] [Underwriters commission shall be ___% of the principal amount of Designated
Securities for which Delayed Delivery Contracts have been entered into. Such commission shall be
payable to the order of ___].
Maturity:
Interest Rate:
[___%] [Zero Coupon] [See Floating Rate Provisions]
Interest Payment Dates:
[months and dates]
Redemption Provisions:
[No provisions for redemption]
[The Designated Securities may be redeemed, otherwise than through the sinking fund, in whole
or in part at the option of the Company, in the amount of
$___ or an integral multiple thereof,
___] [on or after ___, ___at the following redemption prices (expressed in percentages of
principal amount). If [redeemed on or before ___, ___%, and if] redeemed during the 12-month
period beginning ___,
YEAR
REDEMPTION PRICE
and thereafter at 100% of their principal amount, together in each case with accrued interest to
the redemption date.]
[on
any interest payment date falling on or after___, ___, at the election of the
Company, at a redemption price equal to the principal amount thereof, plus accrued interest to the
date of redemption.]
[Other possible redemption provisions, such as mandatory redemption upon occurrence of certain
events or redemption for changes in tax law]
[Restriction on refunding]
Sinking Fund Provisions:
[None]
Schedule II
[The Designated Securities are entitled to the benefit of a sinking fund to retire $ ___
principal amount of Designated Securities on
in each of the years ___ through ___ at
100% of their principal amount plus accrued interest] [___, together with [cumulative]
[non-cumulative] redemptions at the option of the Company to retire an additional $ ___ principal
amount of Designated Securities in the years ___ through ___ at 100% of their principal amount
plus accrued interest.]
[If Securities are Extendible Debt Securities, insert-
Extendible Provisions:
Securities are repayable on
, ___[insert date and years], at the option of the
holder, at their principal amount with accrued interest. Initial annual interest rate will be
___%, and thereafter annual interest rate will be adjusted on
, ___ and
to
a rate not less than ___% of the effective annual interest rate on U.S. Treasury obligations with
___ -year maturities as of the [insert date 15 days prior to maturity date] prior to such [insert
maturity date].].
[If Securities are Floating Rate Debt Securities, insert-
Floating Rate Provisions:
Initial
annual interest rate will be ___% through
___ [and thereafter will be adjusted
[monthly] [on each ___, ___, ___ and ___] [to an annual rate of ___% above the average
rate for ___ -year [month] [securities] [certificates of deposit] by ___ and ___[insert names
of banks].] [and the annual interest rate [thereafter] [from ___ through ___] will be the
interest yield equivalent of the weekly average per annum market discount rate for ___ -month
Treasury bills plus ___% of Interest Differential (the excess, if any, of (i) then current weekly
average per annum secondary market yield for ___ -month certificates of deposit over (ii) then
current interest yield equivalent of the weekly average per annum market discount rate of
___ -month Treasury bills); [from ___ and thereafter the rate will be the then current yield
equivalent plus ___% of Interest Differential].]
Defeasance:
[The provisions of Sections 403 and 1006 of the Indenture relating to defeasance shall apply
to the Designated Securities.]
[Other Terms]: [A description of particular tax, accounting or other unusual features of the
Securities may be set forth, or referenced to an attached and accompanying description, if
necessary, to the issuers understanding of the transaction contemplated. Such a description might
appropriately be in the form in which such features will be described in the Prospectus Supplement
for the offering.]
Schedule II
SCHEDULE III(a)
[List of materials other than the Pricing Prospectus that comprise the Pricing Disclosure
Package]
Schedule III(a)
SCHEDULE III(b)
[Issuer Free Writing Prospectuses, if any, not included in the Pricing Disclosure Package]
Schedule III(b)
ANNEX II:
Delayed Delivery Contract
, 20___
THE PROCTER & GAMBLE COMPANY,
c/o [Name and address of appropriate Representatives].
Attention:
Dear Sirs/Mesdames:
The undersigned hereby agrees to purchase from The Procter & Gamble Company (hereinafter
called the Company), and the Company agrees to sell to the
Undersigned [$] principal amount of the Companys [Title of Designated Securities] (hereinafter
called the Designated Securities), offered by the Companys Prospectus dated
, 20 , as
amended or supplemented, receipt of a copy of which is hereby acknowledged, at a purchase price of
[%] of the principal amount thereof [, plus accrued interest from the date from which interest
accrues as set forth below,] [and accrued amortization, if any, from [
] [the date from
which interest accrues as set forth below]] and on the further terms and conditions set forth in
this contract. The undersigned will purchase the Designated Securities from the Company on
, 20 , (the Delivery Date) and interest on the Designated Securities so
purchased will accrue from
, 20 . [The undersigned will purchase the Designated
Securities from the Company on the delivery date or dates and in the principal amount or amounts
set forth below:
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Delivery Date
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Principal Amount
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Date From Which Interest Accrues
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Each such date on which Designated Securities are to be purchased hereunder is hereinafter
referred to as a Delivery Date.]
Payment for the Designated Securities which the undersigned has agreed to purchase on [the]
[each] Delivery Date shall be made to [the Company or its order by certified or official bank check
in [New York Clearing House] [same day] funds at the office of
, or by wire
transfer of immediately payable funds to a bank account specified by the Company] [or specify other
means], on [the] [such] Delivery Date upon delivery to the undersigned of the Designated Securities
then to be purchased by the undersigned in definitive fully registered form and in such
denominations and registered in such names as the undersigned may designate by written or
telegraphic communications addressed to the Company not less than five full business days prior to
[the] [such] Delivery Date.
The obligation of the undersigned to take delivery of and make payment for Designated
Securities on [the] [each] Delivery Date shall be subject to the condition that the purchase of
Designated Securities to be made by the undersigned shall not on [the] [such] Delivery Date be
prohibited under the laws of the jurisdiction to which the undersigned is subject. The obligation
of the undersigned to take delivery of and make payment for Designated Securities shall not be
affected by the failure of any purchaser to take delivery of and make payment for Designated
Securities pursuant to other contracts similar to this contract.
[The undersigned understands that underwriters (the Underwriters) are also purchasing
Designated Securities from the Company, but that the obligations of the undersigned hereunder are
not contingent on such purchases. Promptly after completion of the sale to the Underwriters the
Company will mail or deliver to the undersigned at its address set forth below notice to such
effect, accompanied by a copy of the opinion of counsel for the Company delivered to the
Underwriters in connection therewith.]
The undersigned represents and warrants that, as of the date of this contract, the undersigned
is not prohibited from purchasing the Designated Securities hereby agreed to be purchased by it
under the laws of the jurisdiction to which the undersigned is subject.
This contract will inure to the benefit of and be binding upon the parties hereto and their
respective successors, but will not be assignable by either party hereto without the written
consent of the other.
This contract may be executed by either of the parties hereto in any number of counterparts,
each of which shall be deemed to be an original, but all such counterparts shall together
constitute one and the same instrument.
It is understood that the acceptance by the Company of any Delayed Delivery Contract
(including this contract) is in the Companys sole discretion and that, without limiting the
foregoing, acceptances of such contracts need not be on a first-come, first-served basis. If this
contract is acceptable to the Company, it is requested that the Company sign the form of acceptance
below and mail or deliver one of the counterparts hereof to the undersigned at its address set
forth below. This will become a binding contract between the Company and the undersigned when such
counterpart is so mailed or delivered by the Company.
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Yours very truly,
(Name of Purchaser)
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By:
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[NAME]
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Accepted,
, 20__.
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THE PROCTER & GAMBLE COMPANY
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By:
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[NAME]
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Exhibit (1)(b)
Procter & Gamble International Funding SCA
Debt Securities
fully and unconditionally guaranteed by
The Procter & Gamble Company
Underwriting Agreement
[DATE]
To the Underwriters named in the
respective Pricing Agreement(s)
hereinafter described
Dear Sirs/Mesdames:
From time to time Procter & Gamble International Funding SCA, a Luxembourg
société en
commandite par actions
having its registered office at 26, boulevard Royal, L-2449 Luxembourg,
registered with the Luxembourg trade & companies register under number B 114 825 (the Company)
and The Procter & Gamble Company (the Guarantor) propose to enter into one or more Pricing
Agreements (each a Pricing Agreement) in the form of Annex I hereto, with such additions and
deletions as the parties thereto may determine, and, subject to the terms and conditions stated
herein and therein, to issue and sell to the firms named in Schedule I to the applicable Pricing
Agreement (such firms constituting the Underwriters with respect to such Pricing Agreement and
the securities specified therein) certain debt securities of the Company, all of which will be
entitled to the benefit of the Guarantee referred to below (such debt securities, the Notes and,
together with the Guarantee referred to below, the Securities), specified in Schedule II to such
Pricing Agreement (with respect to such Pricing Agreement, the Designated Securities), less the
principal amount of Designated Securities covered by Delayed Delivery Contracts, if any, as
provided in Section 3 hereof and as may be specified in Schedule II to such Pricing Agreement
(with respect to such Pricing Agreement, any Designated Securities to be covered by Delayed
Delivery Contracts being herein sometimes referred to as Contract Securities and the Designated
Securities to be purchased by the Underwriters (after giving effect to the deduction, if any, for
Contract Securities) being herein sometimes referred to as Underwriters Securities). The Notes
will be fully and unconditionally guaranteed as to payment of principal, premium, if any, and
interest on a senior unsecured basis by the Guarantor (such guarantee, the Guarantee).
The terms and rights of any particular issuance of Designated Securities shall be as
specified in the Pricing Agreement relating thereto and in or pursuant to the indenture (the
Indenture) identified in such Pricing Agreement.
1. Particular sales of Designated Securities may be made from time to time to the
Underwriters of such Securities, for whom the firms designated as representatives of the
Underwriters of such Securities in the Pricing Agreement relating thereto will act as
representatives (the Representatives). The term Representatives also refers to a single firm
acting as sole representative of the Underwriters and to Underwriters who act without any firm
being designated as their representative.
This Underwriting Agreement shall not be construed
as an obligation of the Company or the Guarantor to sell any of the Securities or as an obligation
of any of the Underwriters to purchase any of the Securities
. The obligation of the Company to
issue and sell any of the Notes, the obligation of the Guarantor to guarantee such Notes and the
obligation of the Underwriters to purchase any of the Securities shall be evidenced by the Pricing
Agreement with respect to the Designated Securities specified therein. Each Pricing Agreement
shall specify the aggregate principal amount of such Designated Securities, the initial public
offering price of such Designated Securities, the purchase price to the Underwriters of such
Designated Securities, the names of the Underwriters of such Designated Securities, the names of
the Representatives of such Underwriters, the principal amount of such Designated Securities to be
purchased by each Underwriter and whether any of such Designated Securities shall be covered by
Delayed Delivery Contracts (as defined in Section 3 hereof) and the commission payable to the
Underwriters with respect thereto and shall set forth the date, time and manner of delivery of
such Designated Securities and payment therefor. The Pricing Agreement shall also specify (to the
extent not set forth in the Indenture and the registration statement and prospectus with respect
thereto) the terms of such Designated Securities. The Pricing Agreement also may specify such
additional terms and conditions as the parties thereto may agree. The Pricing Agreement shall
include a Schedule III specifying (a) materials other than the Pricing Prospectus (as defined
below) that comprise the Pricing Disclosure Package (as defined below) and (b) Issuer Free Writing
Prospectuses (as defined below) not included in the Pricing Disclosure Package. A Pricing
Agreement shall be in the form of an executed writing (which may be in counterparts), and may be
evidenced by an exchange of telegraphic communications or any other rapid transmission device
designed to produce a written record of communications transmitted. The obligations of the
Underwriters under this Agreement and each Pricing Agreement shall be several and not joint.
2. The Company and the Guarantor, jointly and severally, represent and warrant to, and agree
with, the Underwriters that:
(a) An automatic registration statement as defined under Rule 405 under the
Securities Act of 1933, as amended (the Act) on Form S-3 (File No. 333- ) in
respect of the Securities has been filed with the Securities and Exchange
Commission (the Commission) not earlier than three years prior to the date of the
Pricing Agreement in the form heretofore delivered or to be delivered to the
Underwriters; such registration statement and any post-effective amendment thereto
became effective upon filing; and no stop order suspending the effectiveness of
such registration statement or any part thereof has been issued and no proceeding
for that purpose has been initiated or threatened by the Commission, and no notice
of objection of the Commission to the use of such registration statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act has been
received by the Company or the Guarantor (the base prospectus filed as part of such
registration statement, in the form in which it has most recently been filed with
the Commission on or prior to the date of this Agreement, is hereinafter called the
Basic Prospectus; any preliminary prospectus (including any preliminary
prospectus supplement) relating to the
2
Designated Securities, which has heretofore been or is required to be filed with
the Commission pursuant to Rule 424(b) under the Act is hereinafter called a
Preliminary Prospectus; the various parts of such registration statement,
including all documents incorporated by reference therein and exhibits thereto but
excluding Form T-1 and including any prospectus supplement relating to the
Designated Securities that is or shall be filed with the Commission pursuant to
Rule 424(b) under the Act and deemed by virtue of Rule 430B under the Act to be
part of such registration statement, each such part as amended at the time such
registration statement became effective (or at the time deemed to be a new
effective date of such registration statement pursuant to Rule 430B under the Act),
being hereinafter collectively called the Registration Statement; the Basic
Prospectus, as amended and supplemented by any Preliminary Prospectus immediately
prior to the Applicable Time (as defined in Section 2(b) hereof), is hereinafter
called the Pricing Prospectus; the final prospectus relating to the Designated
Securities in the form in which it shall be filed with the Commission pursuant to
Rule 424(b) under the Act in accordance with Section 5(b) hereof is hereinafter
called the Prospectus; any reference herein to the Basic Prospectus, the Pricing
Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to refer
to and include the documents incorporated by reference therein pursuant to Item 12
of Form S-3 under the Act, which were filed under the Securities Exchange Act of
1934, as amended (the Exchange Act) on or before the date of this Agreement, or
the issue date of such Basic Prospectus, Pricing Prospectus, Preliminary Prospectus
or Prospectus, as the case may be; any reference to any amendment or supplement
with respect to the Basic Prospectus, the Pricing Prospectus, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include any documents
filed after the date of this Agreement, or the issue date of the Basic Prospectus,
the Pricing Prospectus, any Preliminary Prospectus or Prospectus, as the case may
be, and prior to the completion of the offering, under the Exchange Act, and deemed
to be incorporated by reference therein; and any issuer free writing prospectus
as defined in Rule 433 under the Act relating to the Designated Securities is
hereinafter called an Issuer Free Writing Prospectus );
(b) For the purposes of this Agreement and the Pricing Agreement, the Applicable
Time shall be such time as specified in the Pricing Agreement; as of the
Applicable Time, neither (x) the Pricing Prospectus as supplemented by those Issuer
Free Writing Prospectuses and other documents and information listed in Schedule
III(a) to the Pricing Agreement (including any final term sheet), taken together
(collectively, the Pricing Disclosure Package), nor (y) any Issuer Free Writing
Prospectus listed on Schedule III(b) to the Pricing Agreement when considered
together with the Pricing Disclosure Package, included any untrue statement of a
material fact or omitted to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made,
not misleading; provided, however, that this representation and warranty shall not
apply to statements or omissions made in the Pricing Disclosure Package or any
Issuer Free Writing Prospectus in reliance
3
upon and in conformity with information furnished in writing to the Company or the
Guarantor by an Underwriter of Designated Securities through the Representatives
expressly for use therein; and each Issuer Free Writing Prospectus listed on
Schedule III(a) or Schedule III(b) to the Pricing Agreement as of its issue date
and at all subsequent times through the completion of the offer and sale of the
Designated Securities to which such Issuer Free Writing Prospectus relates, did
not, does not and will not conflict with the information contained in the
Registration Statement, the Pricing Prospectus or the Prospectus;
(c) The documents incorporated by reference in the Pricing Prospectus, the
Prospectus and any amendment or supplement thereto, when they were filed with the
Commission, conformed in all material respects to the requirements of the Exchange
Act and the rules and regulations of the Commission thereunder, and none of such
documents contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading; and any further documents so filed and incorporated by
reference in the Pricing Prospectus, the Prospectus and any amendment or supplement
thereto, when such documents are filed with the Commission, will conform in all
material respects to the requirements of the Exchange Act and the rules and
regulations of the Commission thereunder and will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; provided, however, that
this representation and warranty shall not apply to any statements or omissions
made in reliance upon and in conformity with information furnished in writing to
the Company or the Guarantor by an Underwriter of Designated Securities through the
Representatives expressly for use in the Prospectus as amended or supplemented
related to such Securities;
(d) No order preventing or suspending the use of the Basic Prospectus, any
Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus has
been issued by the Commission and no proceeding for that purpose has been initiated
or threatened by the Commission; the Registration Statement, on the effective date
(as such effective date is defined in Rule 158(c) under the Act) conformed in all
material respects to the requirements of the Act and the Trust Indenture Act of
1939, as amended (the Trust Indenture Act) and the respective rules and
regulations of the Commission thereunder, and did not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; and, at the time the
Prospectus is filed with the Commission and at the Time of Delivery (as defined in
Section 4 hereof), the Prospectus will conform in all material respects with the
Act and the rules and regulations of the Commission thereunder and will not contain
an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading;
provided, however, that this representation and warranty shall not apply to any
statements or omissions made in reliance upon and in conformity with information
furnished in writing to the Company or the
4
Guarantor by an Underwriter of the Designated Securities through the
Representatives expressly for use in the Registration Statement or the Prospectus,
as the case may be;
(e) Neither the Guarantor nor any of its subsidiaries, including the Company, has
sustained since the date of the latest audited financial statements of the
Guarantor included or incorporated by reference in the Pricing Prospectus and the
Prospectus any loss or interference with its business from fire, explosion, flood
or other calamity, whether or not covered by insurance, or from any labor dispute
or court or governmental action, order or decree which is material to the Guarantor
and its subsidiaries, including the Company, considered as a whole, otherwise than
as set forth or contemplated in the Pricing Prospectus and the Prospectus; and,
since the respective dates as of which information is given in the Registration
Statement, the Pricing Prospectus and the Prospectus, there has not been any
material change in the capital stock or long-term debt of the Guarantor or in the
consolidated capitalization of the Guarantor and its consolidated subsidiaries,
including the Company, or any material adverse change, or any development involving
a prospective material adverse change, in or affecting the general affairs,
management, financial position, shareholders equity or results of operations of
the Guarantor and its consolidated subsidiaries, including the Company, considered
as a whole, otherwise than as set forth or contemplated in the Pricing Prospectus
and the Prospectus;
(f) The Notes have been duly authorized by the Company, and, when Designated
Securities are issued and delivered at the Time of Delivery (as defined in Section
4 hereof) pursuant to this Agreement and the Pricing Agreement with respect to such
Designated Securities and, in the case of any Contract Securities, pursuant to
Delayed Delivery Contracts with respect to such Contract Securities, the Notes
relating to such Designated Securities will have been duly executed, authenticated,
issued and delivered and will constitute valid and legally binding obligations of
the Company enforceable against the Company in accordance with their terms, subject
as to enforcement, to bankruptcy, insolvency, reorganization and other laws of
general applicability relating to or affecting creditors rights and to general
equity principles, and entitled to the benefits provided by the Indenture, which
will be substantially in the form filed as an exhibit to the Registration
Statement;
(g) The Guarantee has been duly authorized by the Guarantor, and, when the
Designated Securities have been duly executed, authenticated, issued and delivered
at the Time of Delivery pursuant to this Agreement and the Pricing Agreement with
respect to such Designated Securities and, in the case of any Contract Securities,
pursuant to Delayed Delivery Contracts with respect to such Contract Securities,
the Guarantee relating to such Designated Securities will have been duly executed,
issued and delivered and will constitute a valid and legally binding obligation of
the Guarantor enforceable against the Guarantor in accordance with its terms,
subject as to enforcement, to bankruptcy, insolvency,
5
reorganization and other laws of general applicability relating to or affecting
creditors rights and to general equity principles, and entitled to the benefits
provided by the Indenture;
(h) The Indenture has been duly authorized by the Company and the Guarantor and at
the Time of Delivery will be duly qualified under the Trust Indenture Act and will
constitute a valid and legally binding instrument of the Company and the Guarantor,
enforceable against the Company and the Guarantor in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, reorganization and other
laws of general applicability relating to or affecting creditors rights and to
general equity principles; and the Notes, the Guarantee and the Indenture will
conform to the descriptions thereof in the Pricing Disclosure Package and
Prospectus, as amended or supplemented;
(i) This Agreement has been duly authorized, executed and delivered by the Company
and the Guarantor;
(j) In the event any of the Securities are purchased pursuant to Delayed Delivery
Contracts, each of such Delayed Delivery Contracts has been duly authorized by the
Company and the Guarantor and, when executed and delivered by the Company, the
Guarantor and the purchaser named therein, will constitute a valid and legally
binding agreement of the Company and the Guarantor, enforceable against the Company
and the Guarantor in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general applicability
relating to or affecting creditors rights and to general equity principles; and
any Delayed Delivery Contracts will conform to the description thereof in the
Pricing Disclosure Package and Prospectus, as amended or supplemented;
(k) The issue and sale of the Securities and the compliance by the Company and the
Guarantor with all of the provisions of the Securities, the Indenture, each of the
Delayed Delivery Contracts, if any, this Agreement and any Pricing Agreement, and
the consummation of the transactions herein and therein contemplated will not
conflict with or result in a breach of any of the terms or provisions of, or
constitute a default under, any material indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company or the Guarantor or
any of the Guarantors domestic Significant Subsidiaries (as defined below) is a
party or by which the Company or the Guarantor or any of the Guarantors domestic
Significant Subsidiaries is bound or to which any of the property or assets of the
Company or the Guarantor or any of the Guarantors domestic Significant
Subsidiaries is subject, nor will such action result in any violation of the
provisions of the Articles of Incorporation, as amended, of the Company or the
Amended Articles of Incorporation, Regulations or By Laws of the Guarantor or any
applicable statute or any applicable order, rule or regulation known to the Company
or Guarantor of any court or governmental agency or body having jurisdiction over
the Company or the
6
Guarantor or any of the Guarantors domestic Significant Subsidiaries or any of its
or their properties; and no consent, approval, authorization, order, registration
or qualification of or with any such court or governmental agency or body is
required for the issue and sale of the Securities or the consummation by the
Company and the Guarantor of the other transactions contemplated by this Agreement
or any Pricing Agreement or the Indenture or any Delayed Delivery Contract, except
such as have been, or will have been prior to the Time of Delivery, obtained under
the Act and the Trust Indenture Act and such consents, approvals, authorizations,
registrations or qualifications as may be required under state securities or Blue
Sky laws in connection with the purchase and distribution of the Securities by the
Underwriters; (the term Significant Subsidiary as used herein has the meaning set
forth in Rule 1-02 of Regulation S-X under the Exchange Act);
(l) There are no legal or governmental proceedings pending to which the Company,
the Guarantor or any of the Guarantors domestic Significant Subsidiaries is a
party or of which any property of the Company, the Guarantor or any of the
Guarantors domestic Significant Subsidiaries is subject other than (i) as set
forth in the Pricing Prospectus and the Prospectus and (ii) legal or governmental
proceedings which would not in the aggregate reasonably be expected to have a
material adverse effect on the financial position, shareholders equity or results
of operations of the Guarantor and its subsidiaries considered as a whole; and no
such proceedings are known by the Company or the Guarantor to be threatened or
contemplated by governmental authorities or threatened by others;
(m) (A)(i) At the time of filing the Registration Statement, (ii) at the time of
the most recent amendment thereto for the purposes of complying with Section
10(a)(3) of the Act (whether such amendment was or will be by post-effective
amendment, incorporated report filed pursuant to Section 13 or 15(d) of the
Exchange Act or form of prospectus), and (iii) at the time the Company, the
Guarantor or any person acting on either the Company or the Guarantors behalf
(within the meaning, for this clause only, of Rule 163(c) under the Act) makes any
offer relating to the Designated Securities in reliance on the exemption of Rule
163 under the Act, each of the Company and the Guarantor was or is a well-known
seasoned issuer as defined in Rule 405 under the Act; and (B) at (i) the earliest
time after the filing of the Registration Statement that the Company, the Guarantor
or another offering participant made a
bona fide
offer (within the meaning of Rule
164(h)(2) of the Act) with respect to the Designated Securities and (ii) the time
of execution of this Agreement, each of the Company and the Guarantor was not and
is not an ineligible issuer as defined in Rule 405 under the Act; and
(n) The Company is a finance subsidiary as defined in Rule 3-10 of Regulation S-X
under the Act.
7
3. Upon the execution of the Pricing Agreement applicable to any Designated Securities and
authorization by the Representatives of the release of the Underwriters Securities, the several
Underwriters propose to offer the Underwriters Securities for sale upon the terms and conditions
set forth in the Pricing Prospectus as amended or supplemented.
The Company and the Guarantor may specify in Schedule II to the Pricing Agreement applicable
to any Designated Securities that the Underwriters are authorized to solicit offers to purchase
Designated Securities from the Company and the Guarantor pursuant to delayed delivery contracts
(herein called Delayed Delivery Contracts), substantially in the form of Annex II attached
hereto but with such changes therein as the Representatives, the Company and the Guarantor may
authorize or approve. If so specified, the Underwriters will endeavor to make such arrangements,
and as compensation therefor the Company will pay to the Representatives for the accounts of the
Underwriters, at the Time of Delivery, such commission, if any, as may be set forth in such
Pricing Agreement. Delayed Delivery Contracts, if any, are to be with investors of the types
described in the Prospectus and subject to other conditions therein set forth. The Underwriters
will not have any responsibility in respect of the validity or performance of any Delayed Delivery
Contracts.
The total principal amount of Underwriters Securities to be purchased by all the
Underwriters pursuant to such Pricing Agreement shall be the total principal amount of Designated
Securities set forth in Schedule I to such Pricing Agreement less the principal amount of the
Contract Securities. The Company will deliver to the Representatives not later than 3:30 p.m., New
York City time, on the third business day preceding the Time of Delivery specified in the
applicable Pricing Agreement (or such other time and date as the Representatives, the Company and
the Guarantor may agree upon in writing) a written notice setting forth the principal amount of
Contract Securities.
4. Underwriters Securities to be purchased by each Underwriter pursuant to the Pricing
Agreement relating thereto, in definitive form to the extent practicable, and in such authorized
denominations and registered in such names as the Representatives may request upon at least
forty-eight hours prior notice to the Company and the Guarantor, shall be delivered by or on
behalf of the Company and the Guarantor to the Representatives for the account of such Underwriter
against payment by such Underwriter or on their behalf of the purchase price therefor in the funds
and in the manner specified in such Pricing Agreement, all at the place and time and date
specified in such Pricing Agreement or at such other place and time and date as the
Representatives, the Company and the Guarantor may agree upon in writing, such time and date being
herein called the Time of Delivery for such Securities.
Concurrently with the delivery of and payment for the Underwriters Securities, the Company
will deliver to the Representatives for the accounts of the Underwriters a check payable to the
order of the party designated in the Pricing Agreement relating to such Securities in the amount
of any compensation payable by the Company to the Underwriters in respect of any Delayed Delivery
Contracts as provided in Section 3 hereof and in the Pricing Agreement relating to such
Securities.
8
5. The Company and the Guarantor, jointly and severally, agree with each of the Underwriters
of any Designated Securities:
(a) To make no further amendment or any supplement to the Registration Statement,
the Basic Prospectus, any Preliminary Prospectus or the Prospectus after the date
of the Pricing Agreement relating to such Securities and prior to the Time of
Delivery for such Securities to which the Representatives for such Securities,
promptly after reasonable notice thereof, shall have reasonably disapproved; to
advise the Representatives promptly of any such amendment or supplement after such
Time of Delivery and furnish the Representatives with copies thereof; that the
Guarantor will file promptly all reports and any definitive proxy or information
statements required to be filed by the Guarantor with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act for so long as the delivery
of a prospectus (or, in lieu thereof, the notice referred to in Rule 173(a) under
the Act) is required in connection with the offering or sale of such Securities,
and during such same period to advise the Representatives, promptly after it
receives notice thereof, of the time when any amendment to the Registration
Statement has been filed or has become effective or any amendment or supplement to
any Issuer Free Writing Prospectus or the Prospectus has been filed or mailed for
filing, of the issuance by the Commission of any stop order or of any order
preventing or suspending the use of any preliminary prospectus or other prospectus
relating to the Securities, of any notice of objection of the Commission to the use
of the Registration Statement or any post-effective amendment thereto pursuant to
Rule 401(g)(2) under the Act, of the suspension of the qualification of such
Securities for offering or sale in any jurisdiction, of the initiation or
threatening of any proceeding for any such purpose, or of any request by the
Commission for the amending or supplementing of the Registration Statement or
Prospectus or for additional information; and, in the event of the issuance of any
such stop order or of any such order preventing or suspending the use of any
preliminary prospectus or other prospectus relating to the Securities or suspending
any such qualification, to use promptly their best efforts to obtain its
withdrawal;
(b) If required by Rule 430B(h) under the Act, to prepare a form of prospectus and
to file such form of prospectus pursuant to Rule 424(b) under the Act not later
than may be required by Rule 424(b) under the Act; and to make no further amendment
or supplement to such form of prospectus to which the Representatives for such
Securities, promptly after reasonable notice thereof, shall have reasonably
disapproved;
(c) Promptly from time to time to take such action as the Representatives may
reasonably request to qualify such Securities for offering and sale under the
securities laws of such jurisdictions as the Representatives may request and to
comply with such laws so as to permit the continuance of sales and dealings in such
jurisdictions for as long as may be necessary to complete the distribution of such
Securities, provided that in connection therewith neither the Company nor
9
the Guarantor shall be required to (i) qualify as a foreign corporation, (ii) file
a general consent to service of process in any jurisdiction, or (iii) subject
itself to taxation in any such jurisdiction if it is not otherwise so subject;
(d) To furnish the Underwriters with written or electronic copies of the Pricing
Prospectus and the Prospectus as amended or supplemented in such quantities as the
Representatives may from time to time reasonably request, and, if the delivery of a
prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the
Act) is required at any time in connection with the offering or sale of the
Securities and if at such time any event shall have occurred as a result of which
the Pricing Disclosure Package or the Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made when such Pricing Disclosure Package or
Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the
Act) is delivered, not misleading, or, if for any other reason it shall be
necessary during such same period to amend or supplement the Pricing Disclosure
Package or the Prospectus or to file under the Exchange Act any document
incorporated by reference in the Pricing Disclosure Package or the Prospectus in
order to comply with the Act, the Exchange Act or the Trust Indenture Act or the
respective rules thereunder, to notify the Representatives of such event and upon
their request to file such document and to prepare and furnish without charge to
each Underwriter and to any dealer in securities as many written or electronic
copies as the Representatives may from time to time reasonably request of an
amended Pricing Disclosure Package or Prospectus or a supplement to the Pricing
Disclosure Package or the Prospectus which will correct such statement or omission
or effect such compliance;
(e) To make generally available to its security holders as soon as practicable, but
in any event not later than eighteen months after the effective date of the
Registration Statement (as such effective date is defined in Rule 158(c) under the
Act), an earning statement of the Guarantor and its subsidiaries, including the
Company, (which need not be audited) complying with Section 11(a) of the Act and
the rules and regulations of the Commission thereunder (including at the option of
the Guarantor Rule 158);
(f) During the period beginning on the date of the Pricing Agreement for such
Designated Securities and continuing to and including the earlier of (i) the
termination of trading restrictions for such Designated Securities, as notified to
the Company and the Guarantor by the Representatives and (ii) the Time of Delivery
for such Designated Securities, not to offer, sell, contract to sell or otherwise
dispose of any debt securities of the Company or the Guarantor which mature more
than one year after such Time of Delivery and which are substantially similar to
such Designated Securities, without the prior written consent of the
Representatives; and
10
(g) To pay the required Commission filing fees relating to such Designated
Securities within the time required by Rule 456(b)(1) under the Act and otherwise in
accordance with Rules 456(b) and 457(r) under the Act.
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6.
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(a) Except as provided in Section 6(b) below with respect to the Final Term
Sheet (as defined below), (i) the Company and the Guarantor represent and agree that,
without the prior consent of the Representatives, they have not made and will not make
any offer relating to the Designated Securities that would constitute a free writing
prospectus as defined in Rule 405 under the Act required to be filed by the Company
or the Guarantor with the Commission under Rule 433 under the Act, and (ii) each
Underwriter represents and agrees that, without the prior consent of the Company and
the Guarantor and the Representatives, they have not made and will not make any offer
relating to the Designated Securities that would constitute a free writing prospectus
required to be filed by the Company or the Guarantor with the Commission under Rule
433 under the Act, other than one or more term sheets relating to the Designated
Securities containing customary information (which, in their final form, will not be
inconsistent with the Final Term Sheet) and conveyed to purchasers of such Designated
Securities; and
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(b) The Company, the Guarantor and each of the Underwriters each has complied and
will comply with the requirements of Rule 433 under the Act to the extent
applicable to any Issuer Free Writing Prospectus. The Company and the Guarantor
have complied and will comply with the requirements of Rule 433 with regard to
timely filing with the Commission or retention where required and legending of any
Issuer Free Writing Prospectus. If the Representatives prepare and timely provide
to the Company and the Guarantor a writing containing solely a description of the
terms of the Designated Securities and of the offering, (i) the Company and the
Guarantor will review and (subject to such changes deemed appropriate by the
Company, the Guarantor and the Representatives) approve, if requested by the
Representatives in connection with the offer and sale of the Designated Securities,
such writing (as so approved, the Final Term Sheet) and (ii) the Guarantor will
file such Final Term Sheet pursuant to Rule 433(d) under the Act.
7. The Company and the Guarantor covenant and agree, jointly and severally, with the several
Underwriters that the Company and/or the Guarantor will pay or cause to be paid the following: (i)
the fees, disbursements and expenses of the Companys and the Guarantors counsel and accountants
in connection with the registration of the Securities under the Act and all other expenses in
connection with the preparation, printing and filing of the Registration Statement, the Basic
Prospectus, any Preliminary Prospectus, the Pricing Prospectus, any Issuer Free Writing Prospectus
and the Prospectus and amendments and supplements thereto and the mailing and delivering of copies
thereof to the Underwriters and dealers; (ii) the cost of printing or producing any Agreement
among Underwriters, this Agreement, any Pricing Agreement, any Indenture, any Delayed Delivery
Contracts, any Blue Sky and Legal Investment Memoranda and
11
any other documents in connection with the offering, purchase, sale and delivery of the
Securities; (iii) all expenses in connection with the qualification of the Securities for offering
and sale under state securities laws as provided in Section 5(c) hereof, including the fees and
disbursements of counsel for the Underwriters in connection with such qualification and in
connection with the Blue Sky and legal investment surveys; (iv) any fees charged by securities
rating services for rating the Securities; (v) any filing fees incident to any required review by
the National Association of Securities Dealers, Inc. of the terms of the sale of the Securities;
(vi) the cost of preparing the Securities; (vii) the fees and expenses of any Trustee and any
agent of any Trustee and the fees and disbursements of counsel for any Trustee in connection with
the Indenture and the Securities; and (viii) all other costs and expenses incident to the
performance of their obligations hereunder and under any Delayed Delivery Contracts which are not
otherwise specifically provided for in this Section. It is understood, however, that, except as
provided in this Section, Section 9 and Section 12 hereof, the Underwriters will pay all of their
own costs and expenses, including the fees of their counsel, transfer taxes on resale of any of
the Securities by them, and any advertising expenses and expenses of any free writing prospectus
(as defined in Rule 405 under the Act), other than an Issuer Free Writing Prospectus, that is used
or referred to by the Underwriters connected with any offers they may make.
To the extent permitted by applicable law, the Company and the Guarantor will indemnify and
hold harmless the Underwriters from any documentary, stamp, stamp duty reserve or similar issue
tax or duty and any related interest or penalties on, and value added tax (if any) payable in
respect of the execution of this Agreement or the issue, sale and delivery of the Securities to
the subscribers which are or may be payable in any jurisdiction.
8. The obligations of the Underwriters of any Designated Securities under the Pricing
Agreement relating to such Designated Securities shall be subject, in the discretion of the
Representatives, to the condition that all representations and warranties and other statements of
the Company and the Guarantor in or incorporated by reference in such Pricing Agreement are, at
and as of the Time of Delivery for such Designated Securities, true and correct, the condition
that the Company and the Guarantor shall have performed all of their obligations hereunder
theretofore to be performed, and the following additional conditions:
(a) No stop order suspending the effectiveness of the Registration Statement shall
have been issued and no proceeding for that purpose shall have been initiated or
threatened by the Commission; no notice of objection of the Commission to the use
of the Registration Statement or any post-effective amendment thereto pursuant to
Rule 401(g)(2) under the Act shall have been received; no stop order suspending or
preventing the use of the Prospectus or any Issuer Free Writing Prospectus shall
have been initiated or threatened by the Commission; and all requests for
additional information on the part of the Commission shall have been complied with
to the Representatives reasonable satisfaction;
(b) Fried, Frank, Harris, Shriver & Jacobson LLP, counsel for the Underwriters,
shall have furnished to the Representatives such opinion or opinions, dated the
Time of Delivery for such Designated Securities, with respect
12
to the validity of the Indenture, the Designated Securities, the Delayed Delivery
Contracts, if any, the Registration Statement, the Pricing Disclosure Package, the
Prospectus as amended or supplemented and other related matters as the
Representatives may reasonably request, and such counsel shall have received such
papers and information as they may reasonably request to enable them to pass upon
such matters. In rendering such opinion or opinions, such counsel may rely as to
(x) all matters governed by Ohio law upon the opinion referred to in subsection (c)
of this Section, and (y) all matters governed by the law of the Grand Duchy of
Luxembourg upon the opinion referred to in subsection (d) of this Section;
(c) [NAME], Counsel for the Guarantor, shall have furnished to the Underwriters his
or her written opinion, dated the Time of Delivery for such Designated Securities,
in form and substance satisfactory to the Representatives, to the effect that:
(i) The Guarantor has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Ohio, with
corporate power and authority to own its properties and conduct its
business as described in the Pricing Disclosure Package and the Prospectus
as amended or supplemented;
(ii) The Guarantor has an authorized capitalization as set forth in the
Pricing Disclosure Package and the Prospectus as amended or supplemented
and all of the issued shares of capital stock of the Guarantor have been
duly and validly authorized and issued and are fully paid and
non-assessable;
(iii) Each domestic Significant Subsidiary of the Guarantor has been duly
incorporated and is validly existing as a corporation in good standing
under the laws of its jurisdiction of incorporation; and all of the issued
shares of capital stock of each such Significant Subsidiary have been duly
and validly authorized and issued and are fully paid and non-assessable
(such counsel being entitled to rely in respect of the opinion in this
clause upon opinions of local counsel and in respect of matters of fact
upon certificates of officers of the Guarantor or its domestic Significant
Subsidiaries);
(iv) The Guarantor and each of its domestic Significant Subsidiaries are
duly authorized and are in good standing to do business in each
jurisdiction in the United States, other than their respective
jurisdictions of incorporation, in which they own or lease properties, or
conduct any business, so as to require such qualification (such counsel
being entitled to rely in respect of the opinion in this clause upon
opinions of local counsel and in respect of matters of fact upon
certificates of officers of the Guarantor or its domestic Significant
Subsidiaries);
13
(v) To the best of such counsels knowledge, there are no legal or
governmental proceedings pending to which the Company, the Guarantor or any
of the Guarantors domestic Significant Subsidiaries is a party or of which
any property of the Company or the Guarantor or any of the Guarantors
domestic Significant Subsidiaries is the subject, other than as set forth
in the Pricing Disclosure Package and the Prospectus and other than legal
or governmental proceedings which would not in the aggregate reasonably be
expected to have a material adverse effect on the consolidated financial
position, shareholders equity or results of operations of the Guarantor
and its subsidiaries considered as a whole; and, to the best of such
counsels knowledge, no such proceedings are threatened or contemplated by
governmental authorities or threatened by others;
(vi) This Agreement and the Pricing Agreement with respect to the
Designated Securities have been duly authorized, executed and delivered by
the Guarantor;
(vii) In the event any of the Designated Securities are to be purchased
pursuant to Delayed Delivery Contracts, each of such Delayed Delivery
Contracts has been duly authorized, executed and delivered by the Guarantor
and, assuming such Contract has been duly executed and delivered by the
purchaser named therein, constitutes a valid and legally binding agreement
of the Company and the Guarantor enforceable against the Company and the
Guarantor in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors rights and to general
equity principles; and any Delayed Delivery Contracts conform to the
description thereof in the Pricing Disclosure Package and the Prospectus as
amended or supplemented;
(viii) Assuming receipt by the Company of payment of the issue price of the
Notes, the Notes relating to the Underwriters Securities, when issued and
delivered at the Time of Delivery pursuant to this Agreement and the
Pricing Agreement with respect to such Notes, will constitute valid and
legally binding obligations of the Company enforceable against the Company
in accordance with their terms, subject as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating
to or affecting creditors rights and to general equity principles, and
entitled to the benefits provided by the Indenture; the Notes relating to
the Contract Securities, if any, when executed, authenticated, issued and
delivered pursuant to the Indenture and Delayed Delivery Contracts, if any,
will constitute valid and legally binding obligations of the Company
entitled to the benefits provided by the Indenture; and the Notes, the
Guarantee and the Indenture conform to the
14
descriptions thereof in the Pricing Disclosure Package and the Prospectus
as amended or supplemented;
(ix) The Guarantee has been duly authorized, executed and delivered by the
Guarantor and constitutes a valid and legally binding obligation of the
Guarantor, enforceable against the Guarantor in accordance with its terms,
subject as to enforcement, to bankruptcy, insolvency, reorganization,
moratorium and other laws of general applicability relating to or affecting
creditors rights and to general equity principles, and entitled to the
benefits provided by the Indenture;
(x) The Indenture has been duly authorized, executed and delivered by the
Guarantor and constitutes a valid and legally binding instrument,
enforceable against the Company and the Guarantor in accordance with its
terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization, moratorium and other laws of general applicability relating
to or affecting creditors rights and to general equity principles; and the
Indenture has been duly qualified under the Trust Indenture Act;
(xi) The issue and sale of the Designated Securities and the compliance by
the Guarantor with all of the provisions of the Designated Securities
applying to it, the Indenture, each of the Delayed Delivery Contracts, if
any, this Agreement and the Pricing Agreement with respect to the
Designated Securities and the consummation of the transactions herein and
therein contemplated will not conflict with or result in a breach of any of
the terms or provisions of, or constitute a default under, any material
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument known to such counsel to which the Company, the Guarantor or any
of the Guarantors domestic Significant Subsidiaries is a party or by which
the Company, the Guarantor or any of the Guarantors domestic Significant
Subsidiaries is bound or to which any of the property or assets of the
Company, the Guarantor or any of the Guarantors domestic Significant
Subsidiaries is subject, nor will such action result in any violation of
the provisions of the Amended Articles of Incorporation, Regulations or By
Laws of the Guarantor or any applicable statute or any applicable order,
rule or regulation known to such counsel of any court or governmental
agency or body having jurisdiction over the Guarantor or any of the
Guarantors domestic Significant Subsidiaries or any of its or their
properties; and no consent, approval, authorization, order, registration or
qualification of or with any such court or governmental agency or body of
the State of New York, the State of Ohio or the United States of America is
required for the issue and sale of the Designated Securities or the
consummation by the Company or the Guarantor of the other transactions
contemplated by this Agreement or such Pricing Agreement or the Indenture
or any of such Delayed Delivery Contracts, except such as have been
obtained under the Act and the Trust Indenture
15
Act and such consents, approvals, authorizations, registrations or
qualifications as may be required under state securities or Blue Sky laws
in connection with the purchase and distribution of the Designated
Securities by the Underwriters;
(xii) The documents incorporated by reference in the Pricing Prospectus or
the Prospectus, as amended or supplemented (other than the financial
statements and related schedules therein, as to which such counsel need
express no opinion), when they were filed with the Commission, complied as
to form in all material respects with the requirements of the Exchange Act
and the rules and regulations of the Commission thereunder; and such
counsel has no reason to believe that any of such documents, when they were
so filed, contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made when such
documents were so filed, not misleading; and
(xiii) The Registration Statement as of the effective date (as such term is
defined in Rule 158(c) under the Act) and the Prospectus as of its issue
date, as amended or supplemented, (other than the financial statements and
related schedules therein, as to which such counsel need express no
opinion) comply as to form in all material respects with the requirements
of the Act and the Trust Indenture Act and the rules and regulations
thereunder; such counsel has no reason to believe (x) that the Registration
Statement, at the time it was deemed effective, contained an untrue
statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not
misleading; or (y) that the Pricing Disclosure Package, as of the
Applicable Time, contained any untrue statement of a material fact or
omitted to state any material fact necessary in order to make the
statements therein, in the light of circumstances under which they were
made, not misleading; or (z) that, as of its date and as of the Time of
Delivery, the Prospectus or any such further amendment or supplement
thereto made by the Company and the Guarantor prior to the Time of Delivery
contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which
they were made, not misleading; such counsel does not know of any contracts
or other documents of a character required to be filed as an exhibit to the
Registration Statement or required to be incorporated by reference into the
Prospectus as amended or supplemented or required to be described in the
Registration Statement, the Basic Prospectus or the Prospectus as amended
or supplemented which are not filed or incorporated by reference or
described as required; and the statements in the Pricing Disclosure Package
and the Prospectus as amended or
16
supplemented describing the Designated Securities are accurate and fairly
present the information required or purported to be shown.
In rendering such opinion or opinions, such counsel may rely as to (x) all
matters governed by New York law upon the opinions referred to in subsection (b) of
this Section, and (y) all matters governed by the law of the Grand Duchy of
Luxembourg upon the opinion referred to in subsection (d) of this Section;
(d) Arendt & Medernach, special Luxembourg counsel to the Company, shall have
furnished to the Representatives their written opinion, dated the Time of Delivery
for such Designated Securities, in form and substance satisfactory to the
Representatives, to the effect that:
(i) The Company is a company incorporated for an unlimited duration and
existing under the laws of the Grand Duchy of Luxembourg. It results out
of the Certificate that the Company has not been declared bankrupt and that
the Company has not filed for protection from its creditors;
(ii) The Company has the requisite corporate power and authority to
execute, deliver and perform its obligations under this Agreement, the
Pricing Agreement with respect to the Designated Securities, each of the
Delayed Delivery Contracts, if any, and the Indenture and the issuance of
the Notes;
(iii) This Agreement and the Pricing Agreement with respect to the
Designated Securities have been duly authorized, executed and delivered by
the Company;
(iv) The Notes have been duly authorized by the Company; the Notes relating
to the Underwriters Securities have been duly executed, authenticated,
issued and delivered and, assuming receipt by the Company of payment of the
issue price of such Notes, such Notes, when issued as provided in this
Agreement and the Indenture, will constitute valid and binding obligations
of the Company enforceable against the Company in accordance with their
terms; and the Notes relating to the Contract Securities, if any, when
executed, authenticated, issued and delivered pursuant to the Indenture and
Delayed Delivery Contracts, if any, will constitute valid and binding
obligations of the Company entitled to the benefits provided by the
Indenture;
(v) In the event any of the Notes are to be purchased pursuant to Delayed
Delivery Contracts, each of such Delayed Delivery Contracts has been duly
authorized, executed and delivered by the Company and, assuming such
Contract has been duly executed and delivered by the
17
purchaser named therein, constitutes a valid and binding agreement of the
Company enforceable against the Company in accordance with its terms;
(vi) The Indenture has been duly authorized, executed and delivered by the
Company and constitutes legal, valid and binding obligations on the Company
enforceable against the Company in accordance with its terms;
(vii) Neither the execution of this Agreement, the Pricing Agreement with
respect to the Designated Securities, each of the Delayed Delivery
Contracts, if any, or the Indenture by the Company and the performance of
its obligations under this Agreement, the Pricing Agreement with respect to
the Designated Securities, each of the Delayed Delivery Contracts, if any,
and the Indenture nor the issuance and delivery of the Notes in accordance
with this Agreement, the Pricing Agreement with respect to the Designated
Securities, each of the Delayed Delivery Contracts, if any, and the
Indenture violate or conflict with any Luxembourg law, rule or regulation
applicable to the Company or any provision of its articles of
incorporation;
(viii) No consent, approval, authorization, order, filing or registration
is required by the Company from any governmental authority in Luxembourg
under the laws of Luxembourg in connection with the execution and
performance by the Company of this Agreement, the Pricing Agreement with
respect to the Designated Securities, each of the Delayed Delivery
Contracts, if any, and the Indenture and of the Notes;
(ix) It is not necessary in order to ensure the legality, validity,
enforceability or admissibility in evidence of this Agreement, the Pricing
Agreement with respect to the Designated Securities, each of the Delayed
Delivery Contracts, if any, or the Indenture or of the Notes that this
Agreement, the Pricing Agreement with respect to the Designated Securities,
each of the Delayed Delivery Contracts, if any, the Indenture or the Notes
or any other document in respect thereof be notarized or subject to any
other formality or be filed, recorded, registered or enrolled with any
court of official authority in Luxembourg or that any other action be taken
in relation to the same or any of them;
(x) The choice of the laws of the State of New York to govern this
Agreement, each Pricing Agreement, each of the Delayed Delivery Contracts,
if any, the Indenture and the Notes will be recognized and enforced by the
courts of Luxembourg in accordance with and subject to the provisions of
the Rome Convention dated 19 June 1980 on the law applicable to contractual
obligations;
(xi) The submission by the Company to the jurisdiction of the courts of the
State of New York with regard to this Agreement, each Pricing
18
Agreement, each of the Delayed Delivery Contracts, if any, and the
Indenture is valid and binding under the laws of Luxembourg;
(xii) A valid judgment upon this Agreement, each Pricing Agreement, each of
the Delayed Delivery Contracts, if any, the Indenture or the Notes obtained
from a court of competent jurisdiction in the State of New York which
judgment remains in full force and effect after all appeals that may be
taken in such jurisdiction with respect thereto have been taken may be
entered and enforced through a court of competent jurisdiction of
Luxembourg subject to compliance with the enforcement procedures set out in
Article 678 et seq. and of the Luxembourg Nouveau Code de Procédure Civile
being:
(a) the foreign court must properly have had jurisdiction to hear
and determine the matter, both according to its own laws and to the
Luxembourg conflict of jurisdiction rules;
(b) the decision of the foreign court must be final and enforceable
in the country in which it was rendered;
(c) the foreign court must have applied the proper law to the matter
submitted to it and the foreign procedure must have been regular in
light of the laws of the country of origin;
(d) the decision of the foreign court must not have been obtained by
fraud, but in compliance with the rights of the defendant; and
(e) the decision of the foreign court must not be contrary to
Luxembourg international public policy or have been given in
proceedings of a penal nature or rendered subsequent to an evasion
of law (
fraude à la loi
);
(xiii) The Company is not entitled to claim immunity from jurisdiction or
immunity from execution with respect to any action or proceeding brought in
connection with its obligations under this Agreement, each Pricing
Agreement, each of the Delayed Delivery Contracts, if any, the Indenture or
the Notes in the courts of Luxembourg;
(xiv) The Underwriters will not be deemed resident, domiciled or doing
business in Luxembourg, or be subject to Luxembourg taxes or duties solely
by reason of their execution of this Agreement or the Pricing Agreement
with respect to the Designated Securities and the performance of their
obligations thereunder;
19
(xv) Under current Luxembourg law, the Company and its paying agent are not
required to make any deductions or withholdings for or on account of any
taxes or other governmental charges of any nature imposed by Luxembourg (or
any taxing authority thereof or therein) from any payment of principal or
interest due under the Notes or from any amount payable under this
Agreement, each Pricing Agreement, each of the Delayed Delivery Contracts,
if any, or the Indenture, except that the Company or its paying agent may
be required to levy a withholding tax on interest payments made to a
beneficiary who is either:
(a) an individual resident in (i) an European Member State (EMS)
other than Luxembourg or (ii) any of Aruba, British Virgin Islands,
Isle of Man, Guernsey, Jersey, Montserrat and Netherlands Antilles
(the Dependent Territories) if such individual has not opted for
an exchange of information as provided by article 13 of Council
Directive 2003/48/EC on taxation of savings income;
(b) a Residual Entity within the meaning of article 4.2 of Council
Directive 2003/48/EC on taxation of savings income established in
(i) an EMS other than Luxembourg or (ii) any of the Dependent
Territories if such Residual Entity has not opted for an exchange of
information as provided by article 13 of Council Directive
2003/48/EC on taxation of savings income;
(c) an individual resident in Luxembourg; and
(xvi) No stamp, registration or similar taxes are payable under the current
tax laws of Luxembourg by reason of the execution, delivery, performance or
enforcement proceedings in respect of this Agreement, each Pricing
Agreement, each of the Delayed Delivery Contracts, if any, and the
Indenture and of the Notes brought in the courts of Luxembourg;
(e) On the date of the Pricing Agreement and at the Time of Delivery for such
Designated Securities, Deloitte & Touche LLP, which has rendered its opinion on the
financial statements of the Guarantor and its subsidiaries included or incorporated
by reference in the Registration Statement, shall have furnished to the
Representatives a comfort letter, in form and substance satisfactory to the
Representatives;
(f) (i) Neither the Guarantor nor any of its subsidiaries, including the Company,
shall have sustained since the date of the latest audited financial statements of
the Guarantor included or incorporated by reference in the Pricing Prospectus or
the Prospectus any loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than
20
as set forth or contemplated in the Pricing Prospectus or the Prospectus, and (ii)
since the respective dates as of which information is given in the Registration
Statement and the Pricing Prospectus there shall not have been any change in the
capital stock or long-term debt of the Guarantor or any of its subsidiaries or in
the consolidated capitalization of the Guarantor and its consolidated subsidiaries,
including the Company, or any change, or any development involving a prospective
change, in or affecting the general affairs, management, financial position,
shareholders equity or results of operations of the Guarantor and its
subsidiaries, including the Company, considered as a whole, otherwise than as set
forth or contemplated in the Pricing Prospectus or the Prospectus, the effect of
which, in any such case described in Clause (i) or (ii), is in the judgment of the
Representatives so material and adverse as to make it impracticable or inadvisable
to proceed with the public offering or the delivery of the Designated Securities on
the terms and in the manner contemplated in the Pricing Prospectus or the
Prospectus;
(g) Subsequent to the date of the Pricing Agreement relating to the Designated
Securities no downgrading shall have occurred in the rating accorded the Companys
or the Guarantors debt securities by any nationally recognized statistical rating
organization, as that term is defined under Section 3(a)(62) of the Exchange Act
and no public announcement shall have been made by any such organization that it
has under surveillance or review, with possible negative implications, its rating
of any of the Companys or the Guarantors debt securities;
(h) Subsequent to the date of the Pricing Agreement relating to the Designated
Securities there shall not have occurred any of the following: (i) a suspension or
material limitation in trading in securities generally on the New York Stock
Exchange or the over-the-counter market; (ii) a suspension or material limitation
in trading in the Guarantors securities on the New York Stock Exchange or the
over-the-counter market; (iii) a general moratorium on commercial banking
activities in New York declared by either Federal or New York State authorities or
a material disruption in commercial banking or securities settlement or clearance
services in the United States; (iv) the outbreak or escalation of hostilities
involving the United States or the declaration by the United States of a national
emergency or war; or (v) the occurrence of any other calamity or crisis or any
change in financial, political or economic conditions in the United States or
elsewhere, if the effect of any such event specified in clause (iv) or (v) in the
judgment of the Representatives makes it impracticable or inadvisable to proceed
with the public offering or the delivery of the Underwriters Securities on the
terms and in the manner contemplated in the Pricing Prospectus or the Prospectus as
amended or supplemented; and
(i) The Company and the Guarantor shall have furnished or caused to be furnished to
the Representatives at the Time of Delivery for the Designated Securities
certificates of officers of the Company and the Guarantor satisfactory
21
to the Representatives as to the accuracy of the representations and warranties of
the Company and the Guarantor herein at and as of such Time of Delivery, as to the
performance by the Company and the Guarantor of all of their respective obligations
hereunder to be performed at or prior to such Time of Delivery, as to the matters
set forth in subsections (a) and (e) of this Section, and as to such other matters
as the Representatives may reasonably request.
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9.
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(a) The Company and the Guarantor, jointly and severally, will indemnify and
hold harmless each Underwriter against any losses, claims, damages or liabilities,
joint or several, to which such Underwriter may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement, the Basic
Prospectus, any Preliminary Prospectus, the Pricing Prospectus, the Prospectus, or any
amendment or supplement thereto, any Issuer Free Writing Prospectus, the Pricing
Disclosure Package or any issuer information filed or required to be filed pursuant
to Rule 433(d) under the Act or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and will reimburse each Underwriter for
any legal or other expenses reasonably incurred by each Underwriter in connection with
investigating or defending any such action or claim as such expenses are incurred;
provided, however, that the Company and the Guarantor shall not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, the Pricing Prospectus, the Prospectus, or any amendment or supplement
thereto, any Issuer Free Writing Prospectus or the Pricing Disclosure Package, in
reliance upon and in conformity with written information furnished to the Company and
the Guarantor by the Underwriters of Designated Securities through the Representatives
expressly for use therein.
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(b) Each of the Underwriters severally and not jointly will indemnify and hold
harmless the Company and the Guarantor against any losses, claims, damages or
liabilities to which the Company or the Guarantor may become subject, under the Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement, the
Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus, the
Prospectus, or any amendment or supplement thereto, any Issuer Free Writing
Prospectus or the Pricing Disclosure Package, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each case to
the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in the Registration Statement,
the Basic Prospectus, any Preliminary Prospectus,
22
the Pricing Prospectus, the Prospectus, or any amendment or supplement thereto, any
Issuer Free Writing Prospectus or the Pricing Disclosure Package, in reliance upon
and in conformity with written information furnished to the Company and the
Guarantor by such Underwriter through the Representatives expressly for use
therein; and will reimburse the Company and the Guarantor for any legal or other
expenses reasonably incurred by the Company or the Guarantor in connection with
investigating or defending any such action or claim as such expenses are incurred.
(c) Promptly after receipt by an indemnified party under subsection (a) or (b)
above of notice of the commencement of any action, such indemnified party shall, if
a claim in respect thereof is to be made against the indemnifying party under such
subsection, notify the indemnifying party in writing of the commencement thereof;
but the omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party otherwise than under such
subsection. In case any such action shall be brought against any indemnified party
and it shall notify the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate therein and, to the extent that
it shall wish, jointly with any other indemnifying party similarly notified, to
assume the defense thereof, with counsel satisfactory to such indemnified party
(who shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party under such
subsection for any legal expenses of other counsel of any other expenses, in each
case subsequently incurred by such indemnified party, in connection with the
defense thereof other than reasonable costs of investigation.
(d) If the indemnification provided for in this Section 9 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b)
above in respect of any losses, claims, damages or liabilities (or actions in
respect thereof) referred to therein, then each indemnifying party shall contribute
to the amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (or actions in respect thereof) in such proportion
as is appropriate to reflect the relative benefits received by the Company and the
Guarantor on the one hand and the Underwriters of the Designated Securities on the
other from the offering of the Designated Securities to which such loss, claim,
damage or liability (or action in respect thereof) relates. If, however, the
allocation provided by the immediately preceding sentence is not permitted by
applicable law or if the indemnified party failed to give the notice required under
subsection (c) above, then each indemnifying party shall contribute to such amount
paid or payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the Company
and the Guarantor on the one hand and the Underwriters of the Designated Securities
on the other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities (or actions in respect
23
thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company and the Guarantor on the one hand and such
Underwriter on the other shall be deemed to be in the same proportion as the total
net proceeds from such offering (before deducting expenses) received by the Company
bear to the total underwriting discounts and commissions received by such
Underwriter. The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company and the Guarantor on the one hand or such Underwriter on
the other and the parties relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company, the
Guarantor and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this subsection (d) were determined by pro rata allocation
(even if the Underwriters were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable
considerations referred to above in this subsection (d). The amount paid or payable
by an indemnified party as a result of the losses, claims, damages or liabilities
(or actions in respect thereof) referred to above in this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or
claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall
be required to contribute any amount in excess of the amount by which the total
price at which the applicable Designated Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages which such Underwriter has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The obligations of the Underwriters of Designated
Securities in this subsection (d) to contribute are several in proportion to their
respective underwriting obligations with respect to such Securities and not joint.
(e) The obligations of the Company and the Guarantor under this Section 9 shall be
in addition to any liability which the Company and the Guarantor may otherwise have
and shall extend, upon the same terms and conditions, to each officer and director
of the Underwriters and to each person, if any, who controls any Underwriter within
the meaning of the Act; and the obligations of the Underwriters under this Section
9 shall be in addition to any liability which the respective Underwriters may
otherwise have and shall extend, upon the same terms and conditions, to each
officer and director of the Company and the Guarantor and to each person, if any,
who controls the Company and the Guarantor within the meaning of the Act.
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10.
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(a) If any Underwriter shall default in its obligation to purchase the
Underwriters Securities which it has agreed to purchase under the Pricing
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24
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Agreement relating to such Securities, the Representatives may in their discretion
arrange for themselves or another party or other parties to purchase such
Underwriters Securities on the terms contained herein. If within thirty-six hours
after such default by any Underwriter, the Representatives do not arrange for the
purchase of such Underwriters Securities, then the Company and the Guarantor shall
be entitled to a further period of thirty-six hours within which to procure another
party or other parties satisfactory to the Representatives to purchase such
Underwriters Securities on such terms. In the event that, within the respective
prescribed period, the Representatives notify the Company and the Guarantor that
they have so arranged for the purchase of such Underwriters Securities, or the
Company and the Guarantor notify the Representatives that they have so arranged for
the purchase of such Underwriters Securities, the Representatives or the Company
and the Guarantor shall have the right to postpone the Time of Delivery for such
Underwriters Securities for a period of not more than seven days, in order to
effect whatever changes may thereby be made necessary in the Registration Statement
or the Prospectus as amended or supplemented, or in any other documents or
arrangements, and the Company and the Guarantor agree to file promptly any
amendments or supplements to the Registration Statement or the Prospectus which in
the opinion of the Representatives may thereby be made necessary. The term
Underwriter as used in this Agreement and the Pricing Agreement with respect to
such Securities shall include any person substituted under this Section with like
effect as if such person had originally been a party to such Pricing Agreement with
respect to such Designated Securities.
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(b) If, after giving effect to any arrangements for the purchase of the
Underwriters Securities of a defaulting Underwriter or Underwriters by the
Representatives, the Company and the Guarantor as provided in subsection (a) above,
the aggregate principal amount of such Underwriters Securities which remains
unpurchased does not exceed one-eleventh of the aggregate principal amount of the
Designated Securities, then the Company and the Guarantor shall have the right to
require each non-defaulting Underwriter to purchase the principal amount of
Underwriters Securities which such Underwriter agreed to purchase under the
Pricing Agreement relating to such Designated Securities and, in addition, to
require each non-defaulting Underwriter to purchase its pro rata share (based on
the principal amount of Designated Securities which such Underwriter agreed to
purchase under such Pricing Agreement) of the Underwriters Securities of such
defaulting Underwriter or Underwriters for which such arrangements have not been
made; but nothing herein shall relieve a defaulting Underwriter from liability for
its default.
(c) If, after giving effect to any arrangements for the purchase of the
Underwriters Securities of a defaulting Underwriter or Underwriters by the
Representatives, the Company and the Guarantor as provided in subsection (a) above,
the aggregate principal amount of Underwriters Securities which remains
unpurchased exceeds one-eleventh of the aggregate principal amount of the
Designated Securities, as referred to in subsection (b) above, or if the company
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shall not exercise the right described in subsection (b) above to require
non-defaulting Underwriters to purchase Underwriters Securities of a defaulting
Underwriter or Underwriters, then the Pricing Agreement relating to such Designated
Securities shall thereupon terminate, without liability on the part of any
non-defaulting Underwriter, the Company or the Guarantor, except for the expenses
to be borne by the Company, the Guarantor and the Underwriters as provided in
Section 7 hereof and the indemnity and contribution agreements in Section 9 hereof;
but nothing herein shall relieve a defaulting Underwriter from liability for its
default.
11. The respective indemnities, agreements, representations, warranties and other statements
of the Company, the Guarantor and the several Underwriters, as set forth in this Agreement or made
by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and
effect, regardless of any investigation (or any statement as to the results thereof) made by or on
behalf of any Underwriter or any controlling person of any Underwriter, or the Company, the
Guarantor or any officer or director or controlling person of the Company or the Guarantor, and
shall survive delivery of and payment for the Securities.
12. If any Pricing Agreement shall be terminated pursuant to Section 10 hereof, the Company
and the Guarantor shall not then be under any liability to any Underwriter with respect to the
Designated Securities covered by such Pricing Agreement except as provided in Section 7 and
Section 9 hereof; but, if for any other reason Underwriters Securities are not delivered by or on
behalf of the Company as provided herein, the Company and the Guarantor will reimburse the
Underwriters through the Representatives for all out-of-pocket expenses approved in writing by the
Representatives, including fees and disbursements of counsel, reasonably incurred by the
Underwriters in making preparations for the purchase, sale and delivery of such Designated
Securities, but the Company and the Guarantor shall then be under no further liability to any
Underwriters with respect to such Designated Securities except as provided in Section 7 and
Section 9 hereof.
13. In all dealings hereunder, the Representatives of the Underwriters of Designated
Securities shall act on behalf of each of such Underwriters, and the parties hereto shall be
entitled to act and rely upon any statement, request, notice or agreement on behalf of any
Underwriter made or given by such Representatives jointly or by such of the Representatives, if
any, as may be designated for such purpose in the Pricing Agreement.
All statements, requests, notices and agreements hereunder shall be in writing or by telegram
if promptly confirmed in writing, and if to the Underwriters shall be sufficient in all respects
if delivered or sent by registered mail to the address of the Underwriters as set forth in the
Pricing Agreement; and if to the Company and the Guarantor shall be sufficient in all respects if
delivered, or sent by registered mail to the address of the Guarantor set forth in the
Registration Statement, Attention: Secretary; provided, however, that any notice to any
Underwriter pursuant to Section 9(c) hereof shall be delivered or sent by registered mail to such
Underwriter at the address set forth in its Underwriters Questionnaire, or telex constituting
such Questionnaire, which address will be supplied to the Company by the Representatives upon
request.
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14. Each of the Company, the Guarantor and the Underwriters acknowledges and agrees that (i)
the purchase and sale of the Securities pursuant to this Agreement is an arms-length commercial
transaction between the Company and the Guarantor, on the one hand, and the Underwriters, on the
other, and (ii) in connection therewith and with the process leading to such transaction each
Underwriter is acting (and shall at all times continue to act) solely as a principal and not the
agent of the Company or the Guarantor.
15. This Agreement and each Pricing Agreement shall be binding upon, and inure solely to the
benefit of, the Underwriters, the Company, the Guarantor and, to the extent provided in Section 9
and Section 11 hereof, the officers and directors of the Company, the Guarantor and each person
who controls the Company, the Guarantor or any Underwriter, and their respective heirs, executors,
administrators, successors and assigns, and no other person shall acquire or have any right under
or by virtue of this Agreement or any such Pricing Agreement. No purchaser of any of the
Securities from any Underwriter shall be deemed a successor or assign by reason merely of such
purchase.
16. Time shall be of the essence of each Pricing Agreement.
17. This Agreement, each Pricing Agreement and each of the Delayed Delivery Contracts, if
any, shall be governed by and construed in accordance with the laws of the State of New York.
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18.
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(a) Each of the Company and the Guarantor agrees that any suit, action or
proceeding brought by the Company or the Guarantor against any Underwriter in
connection with or arising out of this Agreement, each Pricing Agreement, each of the
Delayed Delivery Contracts, if any, or the Securities or the offer and sale of the
Securities shall be brought solely in the United States federal courts located in the
Borough of Manhattan or the courts of the State of New York located in the Borough of
Manhattan. EACH OF THE COMPANY, THE GUARANTOR AND THE UNDERWRITERS WAIVES ITS RIGHT TO
TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, EACH
PRICING AGREEMENT, EACH DELAYED DELIVERY CONTRACT, IF ANY, OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY.
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(b) The Company hereby irrevocably accepts and submits to the non-exclusive
jurisdiction of each of the aforesaid courts in personam, generally and
unconditionally, for itself and in respect of its properties, assets and revenues,
with respect to any suit, action or proceeding in connection with or arising out of
this Agreement.
(c) The Company hereby irrevocably designates, appoints and empowers CT Corporation
System, with offices at 111 Eighth Avenue, New York, New York 10011, as its
designee, appointee and agent to receive, accept and acknowledge for and on its
behalf, and its properties, assets and revenues, service for any and
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all legal process, summons, notices and documents which may be served in any such
action, suit or proceeding brought in the courts listed in Section 18(a) which may
be made on such designee, appointee and agent in accordance with legal procedures
prescribed for such courts, with respect to any suit, action or proceeding in
connection with or arising out of this Agreement, each Pricing Agreement, each of
the Delayed Delivery Contracts, if any, or the Securities or the offer and sale of
the Securities. If for any reason such designee, appointee and agent hereunder
shall cease to be available to act as such, the Company agrees to designate a new
designee, appointee and agent in The City of New York on the terms and for the
purposes of this Section 18 satisfactory to the Underwriters. The Company further
hereby irrevocably consents and agrees to the service of any and all legal process,
summons, notices and documents out of any of the aforesaid courts in any such
action, suit or proceeding by serving a copy thereof upon the agent for service of
process referred to in this Section 18 (whether or not the appointment of such agent
shall for any reason prove to be ineffective or such agent shall accept or
acknowledge such service) or by mailing copies thereof by registered or certified
airmail, postage prepaid, to it at its address specified in or designated pursuant
to this Agreement. The Company agrees that the failure of any such designee,
appointee and agent to give any notice of such service to it shall not impair or
affect in any way the validity of such service or any judgment rendered in any
action or proceeding based thereon. Nothing herein shall in any way be deemed to
limit the ability of the holders of any Securities or the Underwriters to serve any
such legal process, summons, notices and documents in any other manner permitted by
applicable law or to obtain jurisdiction over the undersigned or bring actions,
suits or proceedings against the undersigned in such other jurisdictions, and in
such other manner, as may be permitted by applicable law. The Company hereby
irrevocably and unconditionally waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions, suits or proceedings
arising out of or in connection with this Agreement, each Pricing Agreement and each
of the Delayed Delivery Contracts, if any, brought in the courts listed in Section
18(a) and hereby further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such action, suit or proceeding brought in
any such court has been brought in an inconvenient forum.
(d) To the extent that the Company or any of its properties, assets or revenues may
have or may hereafter become entitled to, or have attributed to them, any right of
immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or
proceeding in connection with or arising out of this Agreement, each Pricing
Agreement, each of the Delayed Delivery Contracts, if any, or the Securities or the
offer and sale of the Securities, from the giving of any relief in any thereof, from
setoff or counterclaim, from the jurisdiction of any court, from service of process,
from attachment upon or prior to judgment, from attachment in aid of execution of
judgment, or from execution of judgment, or other legal process or proceeding for
the giving of any relief or for the enforcement of any judgment, in any jurisdiction
in which proceeding may at any time be
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commenced, with respect to its obligations, liabilities or any other matter under or
arising out of or in connection with this Agreement, each Pricing Agreement, each of
the Delayed Delivery Contracts, if any, the Indenture or the Securities, the Company
hereby irrevocably and unconditionally waives, and agrees for the benefit of the
Underwriters and any holder from time to time of the Securities not to plead or
claim, any such immunity, and consent to such relief and enforcement.
(e) Each of the Company and the Guarantor agrees to indemnify and hold harmless the
Underwriters and each holder from time to time of Securities against any loss
incurred by the Underwriters or such holder as a result of any judgment or order
being given or made for any amount due hereunder and such judgment or order being
expressed and paid in a currency (the Judgment Currency) other than United States
dollars and as a result of any variation as between (i) the rate of exchange at
which the United States dollar amount is converted into the Judgment Currency for
the purpose of such judgment or order, and (ii) the rate of exchange at which the
Underwriters or such holder is able to purchase United States dollars with the
amount of Judgment Currency actually received by the Underwriters or such holder.
The foregoing indemnity shall constitute separate and independent obligations of the
Company and the Guarantor and shall continue in full force and effect
notwithstanding any such judgment or order as aforesaid. The term rate of
exchange shall include any premiums and costs of exchange payable in connection
with the purchase of, or conversion into, the relevant currency.
(f) The provisions of this Section 18 shall survive any termination of this
Agreement, each Pricing Agreement and each of the Delayed Delivery Contracts, if
any, in whole or in part.
19. This Agreement and each Pricing Agreement may be executed by any one or more of the
parties hereto and thereto in any number of counterparts, each of which shall be deemed to be an
original, but all such respective counterparts shall together constitute one and the same
instrument.
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Very truly yours,
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PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
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By: its general partner Procter & Gamble
International Finance Funding General
Management Sàrl
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By:
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THE PROCTER & GAMBLE COMPANY
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By:
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Accepted as of the date hereof:
ANNEX I:
Pricing
Agreement
[DATE]
[Names of Representatives]
As representatives of the several Underwriters
named in Schedule I hereto,
[c/o Representative]
[Address of Representative]
Dear Sirs/Mesdames:
Procter & Gamble International Funding SCA, a Luxembourg
société en commandite par actions
having
its registered office at 26, boulevard Royal, L-2449 Luxembourg, registered with the Luxembourg
trade & companies register under number B 114 825 (the Company) and The Procter & Gamble Company
(the Guarantor) propose, subject to the terms and conditions stated herein and in the
Underwriting Agreement, dated [DATE] (the Underwriting Agreement), to issue and sell to the
Underwriters named in Schedule I hereto (the Underwriters) the Securities specified in Schedule
II hereto (the Designated Securities).
Each of the provisions of the Underwriting Agreement is incorporated herein by reference in its
entirety, and shall be deemed to be a part of this Agreement to the same extent as if such
provisions had been set forth in full herein; and each of the representations and warranties set
forth therein shall be deemed to have been made at and as of the date of this Pricing Agreement,
except that each representation and warranty in Section 2 of the Underwriting Agreement which makes
reference to the Pricing Prospectus and the Prospectus shall be deemed to be a representation and
warranty as of the date of the Underwriting Agreement in relation to the Pricing Prospectus and the
Prospectus (as therein defined), and also a representation and warranty as of the date of this
Pricing Agreement in relation to the Pricing Prospectus and the Prospectus as amended or
supplemented relating to the Designated Securities which are the subject of this Pricing Agreement,
each representation and warranty in Section 2 of the Underwriting Agreement which makes reference
to the Pricing Disclosure Package shall be deemed to be a representation and warranty as of the
Applicable Time (as set forth in Schedule II hereto) in relation to the Pricing Disclosure Package
(as therein defined). Each reference to the Underwriters herein and in the provisions of the
Underwriting Agreement so incorporated by reference shall be deemed to refer to you. Unless
otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein
defined. The address of the Underwriters referred to in Section 13 of the Underwriting Agreement is
set forth at the end of Schedule II hereto.
An amendment to the Registration Statement, or a supplement to the Prospectus, as the case may be,
relating to the Designated Securities, in the form heretofore delivered to you is now proposed to
be filed, or in the case of a supplement mailed for filing, with the Commission.
Subject to the terms and conditions set forth herein and in the Underwriting Agreement incorporated
herein by reference, the Company and the Guarantor agree to issue and sell to the Underwriters, and
the Underwriters agree to purchase from the Company and the Guarantor, at the time and place and at
the purchase price to the Underwriters set forth in Schedule II hereto, the principal amount of
Designated Securities set forth in Schedule I hereto, less the principal amount of Designated
Securities covered by Delayed Delivery Contracts, if any, as may be specified in such Schedule II.
Each Underwriter severally and not jointly agrees that it will not offer, sell or deliver any of
the Designated Securities in any jurisdiction outside the United States except under circumstances
that will result in compliance with the applicable laws thereof. Each Underwriter severally and not
jointly acknowledges that no action has been taken to permit a public offering in any jurisdiction
outside the United States where action would be required for such purpose.
Each Underwriter severally and not jointly represents, warrants and agrees that (i) it has only
communicated or caused to be communicated and will only communicate or cause to be communicated an
invitation or inducement to engage in investment activity (within the meaning of Section 21 of the
Financial Services and Markets Act 2000 (FSMA)) received by it in connection with the issue or
sale of any Designated Securities in circumstances in which Section 21(1) of the FSMA does not
apply to the Company or the Guarantor; and (ii) it has complied and will comply with all applicable
provisions of the FSMA with respect to anything done by it in relation to the Designated Securities
in, from or otherwise involving the United Kingdom.
Each Underwriter severally and not jointly represents and agrees that, in relation to each Member
State of the European Economic Area which has implemented the Prospectus Directive (each, a
Relevant Member State), with effect from and including the date on which the Prospectus Directive
is implemented in that Relevant Member State (the Relevant Implementation Date), it has not made
and will not make an offer of Designated Securities to the public in that Relevant Member State
prior to the publication of a prospectus in relation to the Designated Securities which has been
approved by the competent authority in that Relevant Member State or, where appropriate, approved
in another Relevant Member State and notified to the competent authority in that Relevant Member
State, all in accordance with the Prospectus Directive, except that it may, with effect from and
including the Relevant Implementation Date, make an offer of Designated Securities to the public in
that Relevant Member State at any time:
(i) to legal entities which are authorized or regulated to operate in the financial markets
or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities;
(ii) to any legal entity which has two or more of (1) an average of at least 250 employees
during the last financial year; (2) a total balance sheet of more than
43,000,000 and
(3) an annual net turnover of more than
50,000,000, as shown in its last annual or
consolidated accounts;
(iii) to fewer than 100 natural or legal persons (other than qualified investors as defined in
the Prospectus Directive) subject to obtaining the prior consent of the representatives for any
such offer; or
(iv) in any other circumstances which do not require the publication of a prospectus pursuant
to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an offer of Designated Securities to the
public in relation to any Designated Securities in any Relevant Member State means the
communication to persons in any form and by any means of sufficient information on the terms of the
offer and the Designated Securities to be offered so as to enable an investor to decide to purchase
or subscribe the Designated Securities, as the same may be varied in that Member State by any
measure implementing the Prospectus Directive in that Member State and the expression Prospectus
Directive means Directive 2003/71/EC and includes any relevant implementing measure in each
Relevant Member State.
If the foregoing is in accordance with your understanding, please sign and return to us three
counterparts hereof, and upon acceptance hereof by you this letter and such acceptance hereof,
including the provisions of the Underwriting Agreement incorporated herein by reference, shall
constitute a binding agreement among the Underwriters, the Company and the Guarantor.
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Very truly yours,
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PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
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By: its general partner Procter & Gamble
International Finance Funding General
Management Sàrl
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By:
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THE PROCTER & GAMBLE COMPANY
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By:
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Accepted as of the date hereof:
SCHEDULE I
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Principal Amount of Designated
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Underwriters
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Securities to be Purchased
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$
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Total
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$
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Schedule I
SCHEDULE II
Title of Designated Securities: [ %] [Floating Rate] [Zero Coupon] [Notes] [Debentures] due
Aggregate Principal Amount: $[ ]
Price to Public:
% of the principal amount of the Designated Securities, plus accrued interest from
if settlement occurs after that date [and accrued amortization, if any, from
to
]
Purchase Price by Underwriters:
% of the principal amount of the Designated Securities, plus accrued interest from
if settlement occurs after that date [and accrued amortization, if any, from
to
]
Method of and Specified Funds for Payment of Purchase Price:
[By certified or official bank check or checks, payable to the order of the Company in [New
York Clearing House] [same day] funds] [By wire transfer of immediately available funds payable to
the order of the Company or its designee] [Other specified method]
Indenture:
Indenture, dated as of September 3, 2009,
among the Company, the Guarantor and
Deutsche Bank Trust Company Americas, as Trustee, including the Officers Certificate to be dated
, with respect to the terms of the Designated Securities
Guarantee:
The Guarantor will fully and unconditionally guarantee the due and punctual payment of
principal of and premium, if any, and interest on the Designated Securities on a senior unsecured
basis, when and as the same become due and payable, whether on a maturity date, by declaration or
acceleration, upon redemption, repurchase or otherwise, and all other obligations of the Company
under the Indenture
Applicable Time:
[Time and date], 20___.
Time of Delivery:
Schedule II
[Time and date], 20___.
Closing Location:
Names and Addresses of Underwriters:
Designated Representatives:
Securities Exchange:
[None] [Securities to be listed on the [New York] Stock Exchange]
Delayed Delivery:
[None] [Underwriters commission shall be
% of the principal amount of Designated
Securities for which Delayed Delivery Contracts have been entered into. Such commission shall be
payable to the order of
].
Maturity:
Interest Rate:
[
%] [Zero Coupon] [See Floating Rate Provisions]
Interest Payment Dates:
[months and dates]
Redemption Provisions:
[No provisions for redemption]
[The Designated Securities may be redeemed, otherwise than through the sinking fund, in whole
or in part at the option of the Company, in the amount of $
or an integral multiple thereof,
] [on or after
,
at the following redemption prices (expressed in percentages of
principal amount). If [redeemed on or before
,
%, and if] redeemed during the 12-month
period beginning
,
YEAR
REDEMPTION PRICE
and thereafter at 100% of their principal amount, together in each case with accrued interest to
the redemption date.]
Schedule II
[on any interest payment date falling on or after
,
, at the election of the
Company, at a redemption price equal to the principal amount thereof, plus accrued interest to the
date of redemption.]
[Other possible redemption provisions, such as mandatory redemption upon occurrence of certain
events or redemption for changes in tax law]
[Restriction on refunding]
Sinking Fund Provisions:
[None]
[The Designated Securities are entitled to the benefit of a sinking fund to retire $
principal amount of Designated Securities on
in each of the years
through
at
100% of their principal amount plus accrued interest] [
, together with [cumulative]
[non-cumulative] redemptions at the option of the Company to retire an additional $
principal
amount of Designated Securities in the years
through
at 100% of their principal amount
plus accrued interest.]
[If Securities are Extendible Debt Securities, insert-
Extendible Provisions:
Securities
are repayable on
,
[insert
date and years], at the option of the
holder, at their principal amount with accrued interest. Initial annual interest rate will be
%, and thereafter annual interest rate will be adjusted on
,
and
to
a rate not less than
% of the effective annual interest rate on U.S. Treasury obligations with
-year maturities as of the [insert date 15 days prior to maturity date] prior to such [insert
maturity date].].
[If Securities are Floating Rate Debt Securities, insert-
Floating Rate Provisions:
Initial annual interest rate will be
% through
[and thereafter will be adjusted
[monthly] [on each
,
,
and
] [to an annual rate of
% above the average
rate for
-year [month] [securities] [certificates of deposit] by
and
[insert names
of banks].] [and the annual interest rate [thereafter] [from
through
] will be the
interest yield equivalent of the weekly average per annum market discount rate for
-month
Treasury bills plus
% of Interest Differential (the excess, if any, of (i) then current weekly
average per annum secondary market yield for
-month certificates of deposit over (ii) then
current interest yield equivalent of the weekly average per annum market discount rate of
-month Treasury bills); [from
and thereafter the rate will be the then current yield
equivalent plus
% of Interest Differential].]
Schedule II
Defeasance:
[The provisions of Sections 403 and 1006 of the Indenture relating to defeasance shall apply
to the Designated Securities.]
[Other Terms]: [A description of particular tax, accounting or other unusual features of the
Securities may be set forth, or referenced to an attached and accompanying description, if
necessary, to the issuers understanding of the transaction contemplated. Such a description might
appropriately be in the form in which such features will be described in the Prospectus Supplement
for the offering.]
Schedule II
SCHEDULE III(a)
[List of materials other than the Pricing Prospectus that comprise the Pricing Disclosure
Package]
Schedule III(a)
SCHEDULE III(b)
[Issuer Free Writing Prospectuses, if any, not included in the Pricing Disclosure Package]
Schedule III(b)
ANNEX II:
Delayed Delivery Contract
, 20___
PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
THE PROCTER & GAMBLE COMPANY,
c/o [Name and address of appropriate Representatives].
Attention:
Dear Sirs/Mesdames:
The undersigned hereby agrees to purchase from Procter & Gamble International Funding SCA a
Luxembourg
société en commandite par actions
having its registered office at 26, boulevard Royal,
L-2449 Luxembourg, registered with the Luxembourg trade & companies register under number B 114 825
(hereinafter called the Company) and The Procter & Gamble Company (hereinafter called the
Guarantor), and the Company and the Guarantor agree to sell to the Undersigned [$] principal
amount of the Companys [Title of Designated Securities], fully and unconditionally guaranteed on a
senior unsecured basis by the Guarantor (hereinafter called the Designated Securities), offered
by the Companys Prospectus dated
, 20 , as amended or supplemented, receipt of a copy
of which is hereby acknowledged, at a purchase price of [%] of the principal amount thereof [, plus
accrued interest from the date from which interest accrues as set forth below,] [and accrued
amortization, if any, from [
] [the date from which interest accrues as set forth below]]
and on the further terms and conditions set forth in this contract. The undersigned will purchase
the Designated Securities from the Company and the Guarantor on
, 20 , (the
Delivery Date) and interest on the Designated Securities so purchased will accrue from
, 20 . [The undersigned will purchase the Designated Securities from the Company
and the Guarantor on the delivery date or dates and in the principal amount or amounts set forth
below:
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Delivery Date
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Principal Amount
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Date From Which Interest Accrues
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Each such date on which Designated Securities are to be purchased hereunder is hereinafter
referred to as a Delivery Date.]
Payment for the Designated Securities which the undersigned has agreed to purchase on [the]
[each] Delivery Date shall be made to [the Company or its order by certified or official bank check
in [New York Clearing House] [same day] funds at the office of
, or
by wire transfer of immediately available funds to a bank account specified by the Company] [or
specify other means], on [the] [such] Delivery Date
upon delivery to the undersigned of the Designated Securities then to be purchased by the
undersigned in definitive fully registered form and in such denominations and registered in such
names as the undersigned may designate by written or telegraphic communications addressed to the
Company not less than five full business days prior to [the] [such] Delivery Date.
The obligation of the undersigned to take delivery of and make payment for Designated
Securities on [the] [each] Delivery Date shall be subject to the condition that the purchase of
Designated Securities to be made by the undersigned shall not on [the] [such] Delivery Date be
prohibited under the laws of the jurisdiction to which the undersigned is subject. The obligation
of the undersigned to take delivery of and make payment for Designated Securities shall not be
affected by the failure of any purchaser to take delivery of and make payment for Designated
Securities pursuant to other contracts similar to this contract.
[The undersigned understands that underwriters (the Underwriters) are also purchasing
Designated Securities from the Company and the Guarantor, but that the obligations of the
undersigned hereunder are not contingent on such purchases. Promptly after completion of the sale
to the Underwriters the Company and the Guarantor will mail or deliver to the undersigned at its
address set forth below notice to such effect, accompanied by a copy of the opinion of counsel for
the Company and the Guarantor delivered to the Underwriters in connection therewith.]
The undersigned represents and warrants that, as of the date of this contract, the undersigned
is not prohibited from purchasing the Designated Securities hereby agreed to be purchased by it
under the laws of the jurisdiction to which the undersigned is subject.
This contract will inure to the benefit of and be binding upon the parties hereto and their
respective successors, but will not be assignable by either party hereto without the written
consent of the other.
This contract may be executed by either of the parties hereto in any number of counterparts,
each of which shall be deemed to be an original, but all such counterparts shall together
constitute one and the same instrument.
It is understood that the acceptance by the Company and the Guarantor of any Delayed Delivery
Contract (including this contract) is in each of the Companys and Guarantors sole discretion,
respectively, and that, without limiting the foregoing, acceptances of such contracts need not be
on a first-come, first-served basis. If this contract is acceptable to the Company and the
Guarantor, it is requested that the Company and the Guarantor sign the form of acceptance below and
mail or deliver one of the counterparts hereof to the undersigned at its address set forth below.
This will become a binding contract among the Company, the Guarantor and the undersigned when such
counterpart is so mailed or delivered by the Company and the Guarantor.
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Yours very truly,
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(Name of Purchaser)
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By:
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[NAME]
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Accepted,
, 20____.
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PROCTER & GAMBLE INTERNATIONAL
FUNDING SCA
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By: its general partner Procter & Gamble
International Finance Funding General
Management Sàrl
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By:
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[NAME]
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THE PROCTER & GAMBLE COMPANY
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By:
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[NAME]
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Exhibit (4)(a)
THE PROCTER & GAMBLE COMPANY
TO
DEUTSCHE BANK TRUST COMPANY AMERICAS,
Trustee
Indenture
Dated as of September 3, 2009
THE PROCTER & GAMBLE COMPANY
Certain Sections of this Indenture relating to
Sections 310 through 318, inclusive, of the
Trust Indenture Act of 1939
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Trust Indenture
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Act Sections
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Indenture Sections
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§ 310(a)(1)
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609
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(a)(2)
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609
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(a)(3)
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Not Applicable
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(a)(4)
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Not Applicable
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(a)(5)
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609
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(b)
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608
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610
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§ 311(a)
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613
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(b)
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613
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§ 312(a)
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701
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702(a)
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(b)
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702(b)
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(c)
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702(c)
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§ 313(a)
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703(a)
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(b)
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703(a)
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(c)
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703(a)
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(d)
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703(b)
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§ 314(a)
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704
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(a)(4)
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101
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1007
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(b)
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Not Applicable
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(c)(1)
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102
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(c)(2)
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102
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(c)(3)
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Not Applicable
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(d)
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Not Applicable
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(e)
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102
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§ 315(a)
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601
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(b)
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602
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(c)
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601
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(d)
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601
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(e)
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514
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§ 316(a)
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101
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(a)(1)(A)
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502
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512
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(a)(1)(B)
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513
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(a)(2)
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Not Applicable
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(b)
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508
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(c)
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104(c)
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§ 317(a)(1)
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503
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(a)(2)
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504
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(b)
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1003
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§ 318(a)
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107
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Note:
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This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.
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TABLE OF CONTENTS
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Page
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PARTIES
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1
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RECITALS OF THE COMPANY
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1
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ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
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SECTION 101. Definitions
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1
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SECTION 102. Compliance Certificates and Opinions
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7
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SECTION 103. Form of Documents Delivered to Trustee
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8
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SECTION 104. Acts of Holders; Record Dates
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8
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SECTION 105. Notices, Etc., to Trustee and Company
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9
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SECTION 106. Notice of Holders; Waiver
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10
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SECTION 107. Conflict with Trust Indenture Act
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10
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SECTION 108. Effect of Headings and Table of Contents
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10
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SECTION 109. Successors and Assigns
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10
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SECTION 110. Separability Clause
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10
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SECTION 111. Benefits of Indenture
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11
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SECTION 112. Governing Law
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11
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SECTION 113. Legal Holidays
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11
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SECTION 114. USA Patriot Act
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11
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ARTICLE TWO
SECURITY FORMS
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SECTION 201. Forms Generally
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11
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SECTION 202. Form of Face of Security
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12
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SECTION 203. Form of Reverse of Security
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14
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SECTION 204. Form of Legend for Book-Entry Securities
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17
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SECTION 205. Form of Trustees Certificate of Authentication
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17
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ARTICLE THREE
THE SECURITIES
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SECTION 301. Amount Unlimited; Issuable in Series
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18
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SECTION 302. Denominations
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20
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SECTION 303. Execution, Authentication, Delivery and Dating
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20
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SECTION 304. Temporary Securities
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21
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SECTION 305. Registration, Registration of Transfer and Exchange
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22
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SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
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23
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SECTION 307. Payment of Interest; Interest Rights Preserved
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24
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SECTION 308. Persons Deemed Owners
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25
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SECTION 309. Cancellation
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25
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SECTION 310. Computation of Interest
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26
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SECTION 311. CUSIP and ISIN Numbers
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26
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Page
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ARTICLE FOUR
SATISFACTION AND DISCHARGE
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SECTION 401. Satisfaction and Discharge of Indenture
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26
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SECTION 402. Application of Trust Money
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27
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SECTION 403. Defeasance and Discharge of Securities of any Series
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28
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ARTICLE FIVE
REMEDIES
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SECTION 501. Events of Default
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29
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SECTION 502. Acceleration of Maturity; Rescission and Annulment
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30
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SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee
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31
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SECTION 504. Trustee May File Proofs of Claim
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32
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SECTION 505. Trustee May Enforce Claims Without Possession of Securities
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32
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SECTION 506. Application of Money Collected
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32
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SECTION 507. Limitation on Suits
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33
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SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest
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33
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SECTION 509. Restoration of Rights and Remedies
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34
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SECTION 510. Rights and Remedies Cumulative
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34
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SECTION 511. Delay or Omission Not Waiver
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34
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SECTION 512. Control by Holders
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34
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SECTION 513. Waiver of Past Defaults
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35
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SECTION 514. Undertaking for Costs
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35
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SECTION 515. Waiver of Stay or Extension Laws
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35
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ARTICLE SIX
THE TRUSTEE
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SECTION 601. Certain Duties and Responsibilities
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35
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SECTION 602. Notice of Defaults
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36
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SECTION 603. Certain Rights of Trustee
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36
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SECTION 604. Not Responsible for Recitals or Issuance of Securities
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37
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SECTION 605. May Hold Securities
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37
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SECTION 606. Money Held in Trust
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37
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SECTION 607. Compensation and Reimbursement
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37
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SECTION 608. Disqualification; Conflicting Interests
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38
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SECTION 609. Corporate Trust Required; Eligibility
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38
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SECTION 610. Resignation and Removal; Appointment of Successor
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38
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SECTION 611. Acceptance of Appointment by Successor
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39
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SECTION 612. Merger, Conversion, Consolidation or Succession to Business
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40
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SECTION 613. Preferential Collection of Claims Against Company
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41
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SECTION 614. Appointment of Authenticating Agent
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41
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Page
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ARTICLE SEVEN
HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
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SECTION 701. Company to Furnish Trustee Names and Addresses of Holders
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42
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SECTION 702. Preservation of Information; Communications to Holders
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43
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SECTION 703. Reports by Trustee
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43
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SECTION 704. Reports by Company
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43
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ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
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SECTION 801. Company May Consolidate, Etc. Only on Certain Terms
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44
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SECTION 802. Successor Substituted
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44
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ARTICLE NINE
SUPPLEMENTAL INDENTURES
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SECTION 901. Supplemental Indentures Without Consent of Holders
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45
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SECTION 902. Supplemental Indentures with Consent of Holders
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46
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SECTION 903. Execution of Supplemental Indentures
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47
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SECTION 904. Effect of Supplemental Indentures
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47
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SECTION 905. Conformity with Trust Indenture Act
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47
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SECTION 906. References in Securities to Supplemental Indentures
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47
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ARTICLE TEN
COVENANTS
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SECTION 1001. Payment of Principal, Premium and Interest
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47
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SECTION 1002. Maintenance of Office or Agency
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48
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SECTION 1003. Money for Securities Payments to Be Held in Trust
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48
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SECTION 1004. Limitation on Liens
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49
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SECTION 1005. Limitation on Sales and Leasebacks
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50
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SECTION 1006. Defeasance of Certain Obligations
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51
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SECTION 1007. Statement by Officers as to Default
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52
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SECTION 1008. Waiver of Certain Covenants
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52
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ARTICLE ELEVEN
REDEMPTION OF SECURITIES
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SECTION 1101. Applicability of Article
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52
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SECTION 1102. Election to Redeem; Notice to Trustee
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53
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SECTION 1103. Selection by Trustee of Securities to Be Redeemed
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53
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SECTION 1104. Notice of Redemption
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53
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SECTION 1105. Deposit of Redemption Price
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54
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SECTION 1106. Securities Payable on Redemption Date
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54
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SECTION 1107. Securities Redeemed in Part
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54
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Page
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ARTICLE TWELVE
SINKING FUNDS
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SECTION 1201. Applicability of Article
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55
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SECTION 1202. Satisfaction of Sinking Fund Payments with Securities
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55
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SECTION 1203. Redemption of Securities for Sinking Fund
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55
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|
INDENTURE, dated as of September 3, 2009, between THE PROCTER & GAMBLE COMPANY, a corporation
duly organized and existing under the laws of the State of Ohio (herein called the Company),
having its principal office at One Procter & Gamble Plaza, Cincinnati, Ohio 45202, and DEUTSCHE
BANK TRUST COMPANY AMERICAS, a New York banking corporation, having its principal corporate office
at 60 Wall Street, MSNYC60-2710, New York, New York 10005, Attention: Trust & Securities Services,
as Trustee (herein 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 unsecured debentures, notes or other evidences of
indebtedness (herein called the Securities), to be issued in one or more series 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:
For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of series thereof, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101.
Definitions.
For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;
(3) the phrase in writing as used herein shall be deemed to include .pdf attachments
and other electronic means of transmission, unless otherwise indicated;
(4) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles, and, except as otherwise
herein expressly provided, the term generally accepted accounting principles with respect
to any computation required or permitted hereunder shall mean such accounting principles as
are generally accepted at the date of such computation; and
(5) 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.
Certain terms used principally in Article Six, are defined in that Article.
Act, when used with respect to any Holder, has the meaning specified is Section 104.
Affiliate of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, control when used with respect to any specified Person means the
power to direct 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.
Attributable Debt means, as to any particular lease under which any Person is at the time
liable, at any date as of which the amount thereof is to be determined, the lesser of (i) the fair
market value of the Principal Domestic Manufacturing Property sold and leased back at the time of
entering into a sale and leaseback transaction as defined in Section 1005 (as set forth in an
Officers Certificate), and (ii) the total net amount of rent required to be paid by such Person
under such lease during the remaining term thereof, discounted from the respective due dates
thereof to such date at the rate of 10% per annum compounded annually. The net amount of rent
required to be paid under any such lease for any such period shall be the amount of the rent
payable by the lessee with respect to such period, after excluding amounts required to be paid on
account of maintenance and repairs, insurance, taxes, assessments, water rates and similar charges.
In the case of any lease which is terminable by the lessee upon the payment of a penalty, such net
amount shall also include the amount of such penalty, but no rent shall be considered as required
to be paid under such lease subsequent to the first date upon which it may be so terminated.
Authenticating Agent means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.
Board of Directors means either the board of directors of the Company or any duly authorized
committee of that board.
Board Resolution means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Trustee. References to
any matter in this Indenture being established in, by or pursuant to a Board Resolution shall
include actions taken pursuant to authority granted by one or more Board Resolutions.
Book-Entry Security means a Security bearing the legend specified in Section 204 evidencing
all or part of a series of Securities, authenticated and
delivered to the Depository for such series or its nominee, and registered in the name of such
Depository or nominee.
2
Business Day, when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law or executive order to close, or as such term is
otherwise specified with respect to a series of Securities.
Commission means the Securities and Exchange Commission, as from time to time constituted,
created under the United States Securities Exchange Act of 1934, as amended (the Exchange Act),
or, if at any time after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the body performing
such duties at such time.
Company means the Person named as the Company in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter Company shall mean such successor Person.
Company Request or Company Order means a written request or order signed in the name of
the Company by its Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Chief
Operating Officer, a Vice Chairman, a President or a Vice President, or an officer certified by an
Assistant Secretary as having a similar level of authority, and by its Treasurer, an Assistant
Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.
Consolidated Net Tangible Assets means total assets of the Company, less net goodwill and
other intangible assets, less total current liabilities (as set forth on the most recent balance
sheet of the Company and calculated based on positions as reported in the consolidated financial
statements of the Company in accordance with generally accepted accounting principles).
Corporate Trust Office means the office of the Trustee in the city of New York, New York, at
which at any particular time its corporate trust business shall be administered, which as of the
date of this Indenture is
-
the address of the Trustee set forth in Section 105.
corporation means a corporation, association, company, joint-stock company or business
trust.
Debt has the meaning specified in Section 1004.
Defaulted Interest has the meaning specified in Section 307.
Depository means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Book-Entry Securities, the Person designated as Depository by
the Company pursuant to Section 301 which must be a
clearing agency registered under the Exchange Act, and if at any time there is more than one
such Person, Depository shall mean the Depository with respect to the Securities of that series.
Domestic Subsidiary means a Subsidiary of the Company except a Subsidiary (a) which neither
transacts any substantial portion of its business nor regularly maintains any substantial portion
of its fixed assets within the States of the United States, or (b) which is engaged primarily in
financing the operations of the Company or its Subsidiaries, or both, outside the States of the
United States.
3
Event of Default has the meaning specified in Section 501.
Funded Debt means all indebtedness for money borrowed having a maturity of more than 12
months from its date of creation.
Holder means a Person in whose name a Security is registered in the Security Register.
Indenture means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term Indenture
shall also include the terms of particular series of Securities established as contemplated by
Section 301.
interest, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.
Interest Payment Date, when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.
Maturity, when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.
Mortgage or Mortgages has the meaning specified in Section 1004.
Officers Certificate means a certificate signed by the Chairman of the Board, Chief
Executive Officer, Chief Financial Officer, Chief Operating Officer, a Vice Chairman, a President
or a Vice President, or an officer certified by an Assistant Secretary as having a similar level of
authority, and by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary,
of the Company, and delivered to the Trustee. One of the officers signing an Officers Certificate
given pursuant to Section 1007 shall be the principal executive, financial or accounting officer of
the Company.
Opinion of Counsel means a written opinion of counsel, who may be counsel for the Company,
and who shall be reasonably acceptable to the Trustee.
Original Issue Discount Security means any 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 502.
Outstanding, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture,
except
:
(i) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;
4
(ii) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust
or set aside and segregated in trust by the Company (if the Company shall act as its own
Paying Agent) for the Holders of such Securities in accordance with Section 401;
provided
,
that if such 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;
(iii) Securities for whose payment or redemption money or U.S. Government Obligations
in the necessary amount has been theretofore deposited with the Trustee (or another trustee
satisfying the requirements of Section 609) in trust for the Holders of such Securities in
accordance with Section 403; and
(iv) Securities which have been paid pursuant to Section 306 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held by a bona
fide purchaser in whose hands such Securities are valid obligations of the Company;
provided
,
however
, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, (i) the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable
as of the date of such determination upon acceleration of the Maturity thereof pursuant to Section
502, (ii) the principal amount of a Security denominated in one or more foreign currencies or
currency units shall be the U.S. dollar equivalent, determined in the manner provided as
contemplated by Section 301 on the date of original issuance of such Security, of the principal
amount (or, in the case of an Original Issue Discount Security, the U.S. dollar equivalent on the
date of original issuance of such Security of the amount determined as provided in (i) above) of
such Security, and (iii) Securities owned by the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice,
consent or waiver, only Securities which the Trustee knows to be so owned shall be so disregarded.
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 pledgees right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor.
Paying Agent means any Person authorized by the Company to pay the principal of or any
premium or interest on any Securities on behalf of the Company.
Person means any individual, corporation, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.
5
Place of Payment, when used with respect to the Securities of any series, means the place or
places where the principal of and any premium and interest on the Securities of that series are
payable as specified as contemplated by Section 301.
Predecessor Security of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.
Principal Domestic Manufacturing Property means any building, structure or other facility,
together with the land upon which it is erected and fixtures comprising a part thereof, used
primarily for manufacturing or processing and located in the United States, owned or leased by the
Company or any Subsidiary of the Company, the gross book value (without deduction of any
depreciation reserves) of which on the date as of which the determination is being made exceeds
1.0% of Consolidated Net Tangible Assets, other than any such building, structure or other facility
or portion thereof (i) which is financed by obligations the interest on which is exempt from U.S.
federal income tax pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (or any
predecessor or successor provision thereof), or (ii) which, in the opinion of the Board of
Directors, is not of material importance to the total business conducted by the Company and its
Subsidiaries as an entirety.
Redemption Date, when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.
Redemption Price, when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.
Regular Record Date for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.
Securities has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.
Security Register and Security Registrar have the respective meanings specified in Section
305.
Special Record Date for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.
Stated Maturity, when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.
Subsidiary means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, voting
6
stock
means stock which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.
Trustee means the Person named as the Trustee in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter Trustee shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, Trustee as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities of that series.
Trust Indenture Act means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed;
provided
,
however
, that in the event the Trust Indenture Act of
1939 is amended after such date, Trust Indenture Act means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.
U.S. Government Obligations means securities which are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case, are not
.
callable or
redeemable at the option of the issuer thereof, and shall also include a depository receipt issued
by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government Obligation held by such
custodian for the account of the holder of a depository receipt;
provided
that (except as required
by law) such custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in respect of the U.S.
Government Obligation or the specific payment of interest on or principal of the U.S. Government
Obligation evidenced by such depository receipt.
Vice President, when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
vice president.
SECTION 102.
Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall
be given in the form of an Officers Certificate, if to be given by an officer of the Company, or
an Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the
Trust Indenture Act and any other requirements set forth in this Indenture.
Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include
(1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;
7
(2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;
(3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and
(4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.
SECTION 103.
Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his or her certificate or opinion is
based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information with respect to such factual matters is in the
possession of the Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such matters are
erroneous.
Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.
SECTION 104.
Acts of Holders; Record Dates.
(a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the Act of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 601) conclusive in favor of the Trustee and the Company, if made in the manner provided in
this Section.
8
(b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.
(c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders of Securities of any series entitled to
give or take any request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken by Holders of
Securities of such series. If not set by the Company prior to the first solicitation of a Holder
of Securities of such series made by any Person in respect of any such action, or, in the case of
any such vote, prior to such vote, the record date for any such action or vote shall be the 30th
day (or, if later, the date of the most recent list of Holders required to be provided pursuant to
Section 701) prior to such first solicitation or vote, as the case may be. With regard to any
record date for action to be taken by the Holders of one or more series of Securities, only the
Holders of Securities of such series on such date (or their duly designated proxies) shall be
entitled to give or take, or vote on, the relevant action.
(d) The ownership of Securities shall be proved by the Security Register.
(e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.
SECTION 105.
Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,
(1) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at its
Corporate Trust Office, Deutsche Bank Trust Company Americas, 60 Wall Street, MSNYC60-2710,
New York, New York 10005, Attention: Trust & Securities Services, or
(2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to the Company addressed to it at the address of its principal office
specified in the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company.
9
SECTION 106.
Notice of Holders; Waiver.
Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.
Where this Indenture provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver.
In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.
SECTION 107.
Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this Indenture, the Trust Indenture
Act provision shall control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or to be excluded, as the case may be.
SECTION 108.
Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.
SECTION 109.
Successors and Assigns.
All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.
SECTION 110.
Separability Clause.
In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.
10
SECTION 111.
Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders, any benefit or any
legal or equitable right, remedy or claim under this Indenture.
SECTION 112.
Governing Law.
This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York.
SECTION 113.
Legal Holidays.
In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of the Securities of any
series which specifically states otherwise)) payment of interest or principal (and premium, if any)
need not be made at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment with the same force and effect as if made on the Interest
Payment Date or Redemption Date, or at the Stated Maturity,
provided
that no interest shall accrue
for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as
the case may be.
SECTION 114.
USA Patriot Act.
The parties hereto acknowledge that in accordance with Section 326 of the USA Patriot Act, the
Trustee, like all financial institutions, is required to obtain, verify, and record information
that identifies each person or legal entity that establishes a relationship or opens an account.
The Company agrees that it will provide the Trustee with such information that is in its
possession, or is obtainable by the Company without unreasonable burden or expense, as the Trustee
may reasonably request, no more frequently than on an annual basis, in order for the Trustee to
satisfy the requirements of the USA Patriot Act.
ARTICLE TWO
SECURITY FORMS
SECTION 201.
Forms Generally.
The Securities of each series shall be substantially the form set forth in this Article, or in
such other form as shall be established by or pursuant to a Board Resolution 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 may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities, as evidenced by
their execution of the Securities. If the form of Securities of any series is established by action
11
taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at
or prior to the delivery of the Company Order contemplated by Section 303 for the authentication
and delivery of such Securities.
The definitive Securities shall be printed, lithographed or engraved on steel engraved
borders or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.
SECTION 202.
Form of Face of Security.
[if the Security is an Original Issue Discount Security, insert
THIS NOTE WAS ISSUED WITH
ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE UNITED STATES INTERNAL
REVENUE CODE OF 1986, AS AMENDED. [THE ISSUE PRICE OF THIS NOTE WAS ___% OF ITS PRINCIPAL AMOUNT;
THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $___ PER NOTE WITH A PRINCIPAL AMOUNT OF $___; THE
ISSUE DATE IS ___20___; AND THE YIELD TO MATURITY IS ___%.] [THE ISSUE PRICE, ISSUE DATE, TOTAL
AMOUNT OF ORIGINAL ISSUE DISCOUNT AND YIELD TO MATURITY OF THIS NOTE MAY BE OBTAINED BY CONTACTING
THE COMPANY AT [ONE PROCTER & GAMBLE PLAZA, CINCINNATI, OHIO 45202].]
[if the Security is an Original Issue Discount Security that is subject to the rules of
Treasury regulations section 1.1275-4(b)
] [THE ISSUE PRICE OF THIS NOTE WAS ___% OF ITS PRINCIPAL
AMOUNT AT ISSUANCE; THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT IS
$___ PER NOTE WITH A PRINCIPAL
AMOUNT OF $___ AT ISSUANCE, DETERMINED WITHOUT TAKING INTO ACCOUNT ANY ADJUSTMENTS PURSUANT TO
TREASURY REGULATION SECTION 1.1275-4(b); THE ISSUE DATE IS ___20___; THE COMPARABLE YIELD IS ___%;
AND THE PROJECTED PAYMENT SCHEDULE IS ATTACHED HERETO AS EXHIBIT ___.] [THE ISSUE PRICE, ISSUE
DATE, TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE WITH
RESPECT TO THIS NOTE MAY BE
OBTAINED BY CONTACTING THE COMPANY AT [ONE PROCTER & GAMBLE PLAZA, CINCINNATI, OHIO 45202].]
THE PROCTER & GAMBLE COMPANY
The Procter & Gamble Company, a corporation duly organized and existing under the laws of Ohio
(herein called the Company, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
or registered
assigns, the principal sum of
[Dollars] on
12
[
if the Security is to bear Interest prior to Maturity,
Interest
, and to pay interest thereon from
or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually on
and
in each year,
commencing
, at the rate of
% per annum, until the principal hereof is paid or
made available for payment [
if applicable, insert
, and (to the extent that the payment of such
interest shall be legally enforceable) at the rate of
% per annum on any overdue principal and
premium and on any overdue installment of interest]. The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the
or
(in each case, whether or not a Business Day), immediately preceding the related
Interest Payment Date;
provided, however,
that interest payable on any Maturity date shall be
payable to the Person to whom the principal of the Securities shall be payable. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person on whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture].
[
If the Security is not to bear interest prior to the Maturity, insert
The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of
% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such default in payment
to the date payment of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of
% per annum (to the extent that the
payment of such interest shall be legally enforceable), which shall accrue from the date of
such demand for payment to the date payment of such interest has been made or duly provided for,
and such interest shall also be payable on demand.]
Payment of the principal of (and premium, if any) and [
if applicable, insert
any such]
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in
, in [such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts] [
if applicable, insert
;
provided
,
however
, that at the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto in whose name this Security (or one or more Predecessor
Securities) are registered at the close of business on the Regular Record Date at such address as
shall appear in the Security Register or by wire transfer of immediately available funds to an
account specified in writing by such Holder to the Company and the Trustee prior to the relevant
record date].
13
Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.
Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.
Dated:
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THE PROCTER & GAMBLE
COMPANY
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By
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SECTION 203.
Form of Reverse of Security.
This Security is one of a duly authorized issue of securities of the Company (herein called
the Securities), issued and to be issued in one or more series under an Indenture, dated as of
September 3, 2009 (herein called the Indenture), between the Company and Deutsche Bank Trust
Company Americas, as Trustee (herein called the Trustee, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof[, limited in aggregate principal
amount to [$]
].
[
If applicable, insert
The Securities of this series are subject to redemption upon not less
than 30 days notice by mail, [
if applicable, insert
(1) on
in any year commencing with the
year
and ending with the year
through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [on or after
,
20
], as a whole or in part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [on or before
, %,
and if redeemed] during the 12-month period beginning
of the years indicated,
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Redemption
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Redemption
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Year
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Price
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Year
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Price
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14
and thereafter at a Redemption Price equal to
% of the principal amount, together in the case of
any such redemption [
if applicable, insert
(whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture.]
[
If applicable, insert
The Securities of this series are subject to redemption upon not less
than 30 days notice by mail, (1) on
in any year commencing with the year
and ending
with the year
through operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below, and (2) at any time [on or after
], as a whole or in part, at
the election of the Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal amount) set forth in the
table below: If redeemed during the 12-month period beginning
of the years indicated.
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Redemption Price For
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Redemption Price For
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Redemption Otherwise Than
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Redemption Through
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Through Operation of the
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Year
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Operation of the Sinking Fund
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Sinking Fund
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and thereafter at a Redemption Price equal to
% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant Record Dates referred to
on the face hereof, all as provided in the Indenture.]
[Notwithstanding the foregoing, the Company may not, prior to
, redeem any
Securities of this series as contemplated by [Clause (2) of] the preceding paragraph as a part of,
or in anticipation of, any refunding operation by the application, directly or indirectly, of
moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than
% per annum.]
[The sinking fund for this series provides for the redemption on
in each year
beginning with the year
and ending with the year
of [not less than $
(mandatory sinking
fund) and not more than] $
aggregate principal amount of Securities of this series.
Securities of this series acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory]
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sinking fund payments
otherwise required to be made [in the inverse order in which they become due].]
[
If the Security is subject to redemption, insert
In the event of redemption of this Security
in part only, a new Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.]
[
If the Security is not an Original Issue Discount Security, insert
If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]
[
If the Security is an Original Issue Discount Security, insert
If an Event of Default with
respect to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to
insert formula for determining the
amount
. Upon payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal and overdue interest (in each case to the extent that the payment
of such interest shall be legally enforceable), all of the Companys obligations in respect of the
payment of the principal of and interest, if any, on the Securities of this series shall
terminate.]
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of at least a majority in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of at least a majority in principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by
the Holder of this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration of transfer hereof
or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made
upon this Security.
No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
16
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
The Securities of this series are issuable only in registered form without coupons in
denominations of [$]
and any integral multiple of [$]
in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.
SECTION 204.
Form of Legend for Book-Entry Securities
.
Any Book-Entry Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:
This Security is a Book-Entry Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depository or a nominee
of a Depository or a successor depository. This Security is not exchangeable for
Securities registered in the name of a Person other than the
Depository or its nominee except in the limited circumstances described in the
Indenture, and no transfer of this Security (other than a transfer of this Security
as a whole by the Depository to a nominee of the Depository or by a nominee of the
Depository to the Depository or another nominee of the Depository) may be registered
except in the limited circumstances described in the Indenture.
SECTION 205.
Form of Trustees Certificate of Authentication
.
The Trustees certificates of authentication shall be in substantially the following form:
This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.
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DEUTSCHE BANK TRUST COMPANY AMERICAS
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As Trustee
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By
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Authorized Officer
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ARTICLE THREE
THE SECURITIES
SECTION 301.
Amount Unlimited; Issuable in Series
.
The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.
The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided,
in an Officers Certificate, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series,
(1) the title of the Securities of the series (which shall distinguish the Securities
of the series from Securities of any other series);
(2) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);
(3) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;
(4) the date or dates on which the principal of the Securities of the series is
payable;
(5) the rate or rates at which the Securities of the series shall bear interest, or the
method or methods by which such rate or rates shall be determined, if any, the date or dates
from which such interest shall accrue, the Interest Payment Dates on which any such interest
shall be payable and the Regular Record Date for any interest payable on any Interest
Payment Date;
(6) the place or places where the principal of and any premium and interest on
Securities of the series shall be payable;
(7) the period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the
option of the Company;
18
(8) the obligation, if any, of the Company to redeem or purchase Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices at which and the terms
and conditions upon which Securities of the series shall be redeemed or purchased, in whole
or in part, pursuant to such obligation;
(9) if other than minimum denominations of $2,000 and integral multiples of $1,000 in
excess thereof, the denominations in which Securities of the series shall be issuable;
(10) the application, if any, of Section 403 to the Securities of the series;
(11) the application, if any, of Section 1006 to the Securities of the series;
(12) the currency, currencies or currency units in which payment of the principal of
and any premium and interest on any Securities of the series shall be payable if other than
the currency of the United States of America and the manner of determining the equivalent
thereof in the currency of the United States of America for purposes of the definition of
Outstanding in Section 101;
(13) if the amount of payments of principal of or any premium or interest on any
Securities of the series may be determined with reference to an index, the manner in which
such amounts shall be determined;
(14) whether the Securities of the series shall be issued in whole or in part in the
form of one or more Book-Entry Securities and, in such case, the Depository with respect to
such Book-Entry Security or Securities and the circumstances under which any such Book-Entry
Security may be registered for transfer or exchange, or authenticated and delivered, in the
name of a Person other than such Depository or its nominee, if other than as set forth in
Section 305;
(15) if other than the principal of or any premium or interest on any Securities of the
series is to be payable, at the election of the Company or a Holder thereof, in one or more
currencies or currency units other than that or those in which the Securities are stated to
be payable, the currency, currencies or currency units in which payment of the principal of
and any premium and interest on Securities of such series as to which such election is made
shall be payable, and the periods within which and the terms and conditions upon which such
election is to be made;
(16) if other than the entire principal amount thereof, the portion of the principal
amount of Securities of the series which shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 502;
(17) any deletions, modifications of or additions to the Events of Default or the
covenants of the Company set forth herein, and any definitions related thereto, with respect
to Securities of the series;
19
(18) if the Securities of the series are to be listed on any securities exchange, the
securities exchange upon which such Securities shall be listed;
(19) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 901(5)).
All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers
Certificate referred to above or in any such indenture supplemental hereto.
SECTION 302.
Denominations
.
The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 301. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such series shall be
issuable in minimum denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
SECTION 303.
Execution, Authentication, Delivery and Dating
.
The Securities shall be executed on behalf of the Company by its Chairman of the Board, Chief
Executive Officer, Chief Financial Officer, Chief Operating Officer, a Vice Chairman, a President
or one of its Vice Presidents, or an officer certified by an Assistant Secretary as having a
similar level of authority, attested by its Treasurer, one of its Assistant Treasurers, its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the
Securities may be manual, facsimile, in the form of a .pdf attachment or by other means of
electronic transmission.
Securities bearing the signatures of individuals who were, at the time of executing such
Securities, the proper officers of the Company, shall bind the Company, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the authentication
and delivery of such Securities.
At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon, an Opinion of Counsel stating,
(a) if the form of such Securities has been established by or pursuant to Board Resolutions as
permitted by Section 201, that such form has been established in conformity with the provisions of
this Indenture;
20
(b) if the terms of such Securities have been established by or pursuant to Board Resolutions
as permitted by Section 301, that such terms have been established in conformity with the
provisions of this Indenture;
(c) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and binding obligations of the Company enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors rights and to general equity
principles; and
(d) all conditions precedent provided for in this Indenture relating to the authentication and
delivery of the Securities by the Trustee have been complied with.
If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will
adversely affect the Trustees own rights, duties or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the authentication upon original issuance of the first Security of such series to be issued.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such
certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if
any Security shall have been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in
Section 309, for all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the benefits of this
Indenture.
SECTION 304.
Temporary Securities
.
Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
21
officers executing such Securities may determine, as evidenced by their execution of such
Securities.
If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or
more definitive Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and tenor. Until so exchanged the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series and tenor.
SECTION 305.
Registration, Registration of Transfer and Exchange
.
The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company in a Place
of Payment being herein sometimes collectively referred to as the Security Register) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed
Security Registrar for the purpose of registering Securities and transfers of Securities as
herein provided.
Upon surrender for registration of transfer of any Security of any series at the office or
agency in a Place of Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor.
At the option of the Holder, Securities of any series may be exchanged for other securities of
the same series, of any authorized denominations and of a like aggregate principal amount and
tenor, upon surrender of the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.
All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.
22
No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.
The Company shall not be required (i) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 1103 and ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange of any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.
Notwithstanding the foregoing, no Book-Entry Security shall be registered for transfer or
exchange, or authenticated and delivered, whether pursuant to this Section, Sections 304, 306, 906
or 1107 or otherwise, in the name of a Person other than the Depository for such Book-Entry
Security or its nominee until (i) the Depository with respect to a Book-Entry Security notifies the
Company that it is unwilling or unable to continue as Depository for such Book-Entry Security or
the Depository ceases to be a clearing agency registered under the Exchange Act, (ii) the Company
executes and delivers to the Trustee a Company Order that such Book-Entry Security shall be so
transferable and exchangeable or (iii) there shall have occurred and be continuing an Event of
Default with respect to the Securities of such series. Upon the occurrence in respect of any
Book-Entry Security of any series of any one or more of the conditions specified in clauses (i),
(ii) or (iii) of the preceding sentence or such other conditions as may be specified as
contemplated by Section 301 for such series, such Book-Entry Security may be registered for
transfer or exchange for Securities registered in the name of, or authenticated and delivered to,
such Persons as the Depository with respect to such series shall direct.
Except as provided in the preceding paragraph, any Security authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, any Book-Entry Security,
whether pursuant to this Section, Section 304, 306, 906 or 1107 or otherwise, shall also be a
Book-Entry Security and bear the legend specified in Section 204.
SECTION 306.
Mutilated, Destroyed, Lost and Stolen Securities
.
If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and
of like tenor and principal amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.
23
In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.
Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
loss or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.
SECTION 307.
Payment of Interest; Interest Rights Preserved
.
Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record date for
such interest.
Any interest on any Security of any Series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called Defaulted Interest) shall
forthwith cease to be payable to the Holder on the relevant regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such Series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be made in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this Clause provide. 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
24
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 therefore to be mailed, First-class postage prepaid, to
each holder of Securities of such series at his address as it appears in the Security
Register, not less than 10 days prior such Special Record Date.
Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefore having been so
mailed such Defaulted Interest shall be paid to the Persons in whose names the Securities of
such series (or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the
following Clause (2).
(2) The Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if after notice given by the Company to the Trustee of the proposed payment
pursuant to this Clause, such manner of payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.
SECTION 308.
Persons Deemed Owners.
Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of and
any premium and (subject to Section 307) any interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary.
SECTION 309.
Cancellation.
All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of as
directed by a Company Order.
25
SECTION 310.
Computation of Interest.
Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.
SECTION 311.
CUSIP and ISIN Numbers.
The Company in issuing any series of the Securities may use CUSIP and ISIN numbers, in
each case if then generally in use, and thereafter with respect to such series, the Trustee for the
Securities of such series may use such numbers in any notice of redemption or exchange with respect
to such series, provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities of that series or as contained in
any notice of a redemption or exchange and that reliance may be placed only on the other
identification numbers printed on the Securities of that series, and any such redemption or
exchange shall not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee in writing of any change in the CUSIP numbers.
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401.
Satisfaction and Discharge of Indenture.
This Indenture shall upon Company Request cease to be of further effect with respect to any
series of Securities (except as to any surviving rights of registration of transfer or exchange of
Securities of such series herein expressly provided for), and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to such series of Securities, when
(1) either
(A) all Securities of such series theretofore authenticated and delivered
(other than (i) Securities of such series which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 306 and (ii) Securities
of such series for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or
(B) all Securities of such series not theretofore delivered to the Trustee for
cancellation
(i) have become due and payable or
26
(ii) will become due and payable at their Stated Maturity within
one year, or
(iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense of the
Company,
and the Company, in the case of (i), (ii) or (iii) above, has deposited or cause to be deposited
with the Trustee as trust funds in trust for the purpose an amount sufficient to pay and discharge
the entire indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and any premium and Interest to the date of such deposit (in the case
of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as
the case may be;
(2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company; and
(3) the Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture as to such series of Securities have been
complied with.
Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 607, the obligations of the
Trustee to any Authenticating Agent under Section 614 and, if money or U.S. Government Obligations
shall have been deposited with the Trustee in accordance with Section 403 or 1006, the obligations
of the Company to the Trustee under Section 402(b), and, if money shall have been deposited with
the Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 shall survive.
SECTION 402.
Application of Trust Money.
(a) Subject to the provisions of the last paragraph of Section 1003, all money deposited with
the Trustee pursuant to Section 401, all money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 403 or 1006 and all money received by the Trustee in respect of U.S.
Government Obligations deposited with the Trustee pursuant to Section 403 or 1006, shall be held in
trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and Interest for whose payment such money has been deposited with or received by
the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by
Section 403 or 1006.
(b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations deposited pursuant to Section 403 or
1006 or the interest and principal received in respect of such obligations other than any payable
by or on behalf of Holders.
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(c) The Trustee shall deliver or pay to the Company from time to time upon Company Request any
money or U.S. Government Obligations held by it as provided in Section 403 or 1006 which, in the
opinion of a nationally recognized firm of independent certified public accountants expressed in a
written certification thereof delivered to the Trustee, as then in excess of the amount thereof
which then would have been required to be deposited for the purpose for which such money or U.S.
Government Obligations were deposited or received.
SECTION 403.
Defeasance and Discharge of Securities of any Series.
If this Section 403 is specified, as contemplated by Section 301, to be applicable to
Securities of any series, then notwithstanding Section 401, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the Outstanding Securities of that series, the
provisions of this Indenture as it relates to such Outstanding Securities (except as to the rights
of Holders of Securities to receive, from the trust funds described in subparagraph (1) below,
payment of the principal of (and premium, if any) and any installment of principal of (and premium,
if any) or interest on such Securities on the Stated Maturity of such principal or installment of
principal or interest or any mandatory sinking fund payments or analogous payments applicable to
the Securities of that series on the day on which such payments are due and payable in accordance
with the terms of the Indenture and of such Securities, the Companys obligations with respect to
such Securities under Section 305, 306, 1002 and 1003 and the rights, powers, trusts, duties and
immunities of the Trustee hereunder) shall no longer be in effect, and the Trustee, at the expense
of the Company, shall, upon Company Request, execute proper instruments acknowledging the same,
provided
that the following conditions have been satisfied:
(1) the Company has deposited or caused to be deposited with the Trustee (or another
trustee satisfying the requirements of Section 609), irrevocably (irrespective of whether
the conditions in subparagraphs (2), (3), (4), (5) and (6) below have been satisfied, but
subject to the provisions of Section 402(c) and the last paragraph of Section 1003), as
trust funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of the Securities of that series, with reference to this
Section 403, (A) money in an amount, or (B) U.S. Government Obligations which through the
payment of interest and principal in respect thereof in accordance with their terms will
provide not later than the opening of business on the due date of any payment referred to in
clause (i) or (ii) of this subparagraph (1) money in an amount, or (C) a combination
thereof, sufficient, in the opinion of a nationally recognized firm of independent certified
public accountants expressed in a written certification thereof delivered to the Trustee, to
pay and discharge (i) the principal of (and premium, if any) and each installment of
principal (and premium, if any) and interest on such Outstanding Securities on the Stated
Maturity of such principal or installment of principal or interest and (ii) any mandatory
sinking fund payments or analogous payments applicable to Securities of such series on the
day on which such payments are due and payable in accordance with the terms of this
Indenture and of such Securities;
(2) such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other material agreement or instrument to which the Company is
a party or by which it is bound;
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(3) no Event of Default or event which with the giving of notice or lapse of time, or
both, would become an Event of Default with respect to the Securities of that series shall
have occurred and be continuing on the date of such deposit and no Event of Default under
Section 501(5) or Section 501(6) or event which with the giving of notice or lapse of time
or both, would become an Event of Default under Section 501(5) or Section 501(6) shall have
occurred and be continuing on the 91st day after such date;
(4) the Company has delivered to the Trustee an Opinion of Counsel to the effect that
the Company has received from, or there has been published by, the U.S. Internal Revenue
Service a ruling to the effect that Holders and beneficial owners of the Securities of that
series will not recognize income, gain or loss for U.S. federal income tax purposes as a
result of such deposit, defeasance and discharge and will be subject to U.S. federal income
tax on the same amount and in the same manner and at the same times, as would have been the
case if such deposit, defeasance and discharge had not occurred; and
(5) the Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to the defeasance
and discharge of the entire indebtedness on all Outstanding Securities of any such series as
contemplated by this Section have been complied with.
ARTICLE FIVE
REMEDIES
SECTION 501.
Events of Default
.
Event of Default, wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be 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):
(1) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or
(2) default in the payment of the principal of (or premium, if any, on) any Security of
that series at its Maturity; or
(3) default in the deposit of any sinking fund payment, when and as due by the terms of
a Security of that series; or
(4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture which affects or is applicable to the Securities of that series (other
than a covenant or warranty a default in whose performance or whose breach is elsewhere in
this Section specifically dealt with or which has expressly been included in this Indenture
solely for the benefit of series of Securities other than that series), and continuance of
such default or breach for a period of 90 days after there has been given,
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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 principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a Notice of Default hereunder; or
(5) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or
(B) a decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of
or in respect of the Company under any applicable Federal or State law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of 60 consecutive days;
or
(6) the commencement by the Company of a voluntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or
of any other case or preceding to be adjudicated a bankrupt or insolvent, or the consent by
it to the entry of a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency
case or proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law, or the consent
by it to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of its
inability to pay its debts generally as they become due, or the taking of corporate
action by the Company in furtherance of any such action; or
(7) any other Event of Default provided with respect to Securities of that series.
SECTION 502.
Acceleration of Maturity; Rescission and Annulment.
If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal amount (or,
if any of the Securities of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof) of all of the
Securities of that series to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable.
At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been
30
obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if
(1) the Company has paid or deposited with the Trustee a sum sufficient to pay
(A) all overdue interest on all Securities of that series,
(B) the principal of (and premium, if any, on) any Securities of that series
which have become due otherwise than by such declaration of acceleration and any
interest thereon at the rate or rates prescribed therefor in such Securities,
(C) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate or rates prescribed therefor in such Securities, and
(D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and
(2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right consequent thereon.
SECTION 503.
Collection of Indebtedness and Suits for Enforcement by Trustee
.
The Company covenants that if
(1) default is made in the payment of any interest on any Security when such interest
becomes due and payable and such default continues for a period of 30 days, or
(2) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal and any premium
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection
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of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon such Securities, wherever situated.
If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in the Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.
SECTION 504.
Trustee May File Proofs of Claim
.
In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.
No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.
SECTION 505.
Trustee May Enforce Claims Without Possession of Securities
.
All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.
SECTION 506.
Application of Money Collected
.
Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal or any premium or interest, upon presentation of the Securities
32
and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under Section 607;
SECOND: To the payment of the amounts then due and unpaid for principal of and any premium
and interest on the Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and any premium and interest, respectively; and
THIRD: To the Company.
SECTION 507.
Limitation on Suits.
No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless
(1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;
(2) the Holders of not less than 25% in principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee reasonable indemnity against the
costs, expenses and liabilities to be incurred in compliance with such request;
(4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;
it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture or the Securities
to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any right under the
Indenture, except in the manner provided in this Indenture or the Securities and for the equal and
ratable benefit of all of such Holders.
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SECTION 508.
Unconditional Right of Holders to Receive Principal,
Premium and Interest.
|
Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and
33
any premium and (subject to Section 307) any interest on such Security on the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date) and
to institute suit for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.
SECTION 509.
Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture or the Securities and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Trustee or to such Holder, then and in every
such case, subject to any determination in such proceeding, the Company, the Trustee and the
Holders shall be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding has been instituted.
SECTION 510.
Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
SECTION 511.
Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
the Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.
SECTION 512.
Control by Holders.
The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series,
provided
that
(1) such direction shall not be in conflict with any rule of law or with this Indenture
or the Securities, and
(2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.
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SECTION 513.
Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of the Outstanding Securities of
any series may on behalf of the Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except a default
(1) in the payment of the principal of or any premium or interest on any Security of
such series, or
(2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series affected.
Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture, but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.
SECTION 514.
Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act.
SECTION 515.
Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture or the Securities; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and
covenants that it will not hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though no such law had
been enacted.
ARTICLE SIX
THE TRUSTEE
SECTION 601.
Certain Duties and Responsibilities.
The duties and responsibilities of the Trustee shall be as provided by the Trust Indenture Act
and this Indenture. Notwithstanding the foregoing, no provision of this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if
it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it. Whether or not therein
35
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 602.
Notice of Defaults.
If a default occurs hereunder with respect to Securities of any series, the Trustee shall give
the Holders of Securities of such series notice of such default as and to the extent provided by
the Trust Indenture Act;
provided, however,
that in the case of any default of the character
specified in Section 501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term default means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.
SECTION 603.
Certain Rights of Trustee.
Subject to the provisions of Section 601:
(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, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;
(b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;
(c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers Certificate;
(d) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance with such request or
direction;
(f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and
36
(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 with
due care by it hereunder.
SECTION 604.
Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except the Trustees certificates of
authentication, shall be taken as the statements of the Company, and the Trustee or any
Authenticating Agent assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. The
Trustee or any Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.
SECTION 605.
May Hold Securities.
The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.
SECTION 606.
Money Held in Trust.
Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.
SECTION 607.
Compensation and Reimbursement.
The Company agrees
(1) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);
(2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including
the costs and expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder.
37
SECTION 608.
Disqualification; Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.
SECTION 609.
Corporate Trust Required; Eligibility.
There shall at all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50,000,000 and its Corporate Trust Office in the Borough of Manhattan, The City of New York.
If such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published. If at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article.
SECTION 610.
Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 611.
(b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.
(c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 608 after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Security for at least six
months, or
(2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign
after written request therefor by the Company or by any such Holder, or
(3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,
38
then, in any such case (i) the Company by a Board Resolution may remove the Trustee with respect to
all Securities, or (ii) subject to Section 514, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.
(e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees
with respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the Securities of any series shall be appointed by act of the Holders of a
majority in principal amount of the Outstanding Securities of such series delivered to the Company
and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section
611, become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to
the Securities of any series shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 611, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.
(f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.
SECTION 611.
Acceptance of Appointment by Successor.
(a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.
(b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each such
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successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee, and (3) 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 Trustee shall be trustee of a trust
or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee
shall duly assign, transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.
(c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraphs (a) and (b) of this Section, as the case
may be.
(d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.
SECTION 612.
Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.
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SECTION 613.
Preferential Collection of Claims Against Company.
If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).
SECTION 614.
Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustees certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less
than $50,000,000 except such combined capital surplus amount shall not be applicable to Deutsche
Bank Trust Company Americas, and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions
of this Section, such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.
Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.
An Authenticating Agent may resign any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such
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Authenticating Agent will serve, as their names and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance
of its appointment hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions of this
Section.
The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 607.
If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustees certificate of
authentication, an alternative certificate of authentication in the following form:
This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.
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DEUTSCHE BANK TRUST COMPANY
AMERICAS,
as Trustee
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By
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Authorized Signatory
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ARTICLE SEVEN
HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701.
Company to Furnish Trustee Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the Trustee
(a) semi-annually, not later than 15 days after each Regular Record Date for each series of
Securities at the time Outstanding, a list, in such form as the Trustee may reasonably require, of
the names and addresses of the Holders as of such Regular Record Date (or a date to be determined
pursuant to Section 301 for Original Issue Discount Securities); 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 content as of a date not
more than 15 days prior to the time such list is furnished;
excluding
from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.
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SECTION 702.
Preservation of Information; Communications to Holders.
(a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701
upon receipt of a new list so furnished.
(b) The rights of the Holders to communicate with other Holders with respect to their rights
under this Indenture or under the Securities, and the corresponding rights and privileges of the
Trustee, shall be as provided by the Trust Indenture Act.
(c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.
SECTION 703.
Reports by Trustee.
(a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.
(b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange upon which any Securities are listed, with the Commission and
with the Company. If any Securities are listed on any stock exchange after the initial issuance of
such Securities, the Company will so notify the Trustee at the time of such listing.
SECTION 704.
Reports by Company.
The Company shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant to such Act;
provided
that any such information, documents or reports required to be filed with the Commission pursuant
to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 15 days after the
same is so required to be filed with the Commission. All required information, documents and other
reports referred to in this Section 704 shall be deemed filed with the Trustee and transmitted to
the Holders at the time such information, documents or other reports are publicly filed with the
Commission via the Commissions EDGAR filing system (or any successor system).
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ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 801.
Company May Consolidate, Etc. Only on Certain Terms.
The Company shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, unless:
(1) either (x) the Company shall be the surviving Person or (y) the entity formed by
such consolidation or into which the Company is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the Company
substantially as an entirety shall be a corporation, partnership, limited liability company
or trust, shall be organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the due and punctual payment of the principal of and any premium and
interest on all the Securities and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed;
(2) immediately after giving effect to such transaction and treating any indebtedness
which becomes an obligation of the Company or a Subsidiary as a result of such transaction
as having been incurred by the Company or such Subsidiary at the time of such transaction,
no Event of Default, and no event which, after notice or lapse of time or both, would become
an Event of Default, shall have happened and be continuing; and
(3) the Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if
a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.
SECTION 802.
Successor Substituted.
Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.
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ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901.
Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:
(1) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein and in the Securities; or
(2) to add to the covenants of the Company for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default; or
(4) to add or change any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the issuance of Securities in bearer form, registrable or
not registrable as to principal, and with or without interest coupons, or to permit or
facilitate the issuance of Securities in uncertificated form; or
(5) to add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities,
provided
that any such addition, change or elimination
(i) shall neither (A) apply to any 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 Security with respect to such provision or (ii) shall
become effective only when there is no such Security Outstanding; or
(6) to secure the Securities pursuant to the requirement of Section 1004 or otherwise;
or
(7) to establish the form or terms of Securities of any series as permitted by Section
201 and 301; or
(8) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 611(b); or
(9) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other
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provisions with respect to matters or questions arising under this Indenture,
provided
that such action pursuant to
this clause (9) shall not adversely affect the interests of the Holders of Securities of any
series in any material respect.
SECTION 902.
Supplemental Indentures with Consent of Holders.
With the consent of the Holders of not less than the majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture,
provided, however,
that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby,
(1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any
Place or Payment where, or the coin or currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on
or after the Redemption Date), or
(2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture, or
(3) modify any of the provisions of this Section, Section 513 or Section 1008, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby,
provided, however,
that this clause shall not be
deemed to require the consent of any Holder with respect to changes in the references to
the Trustee and concomitant changes in this Section and Section 1008, or the deletion of
this proviso, in accordance with the requirements of Sections 611(b) and 901(8).
A supplemental Indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
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It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.
SECTION 903.
Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which adversely affects the Trustees own rights, duties or
immunities under this Indenture or otherwise.
SECTION 904.
Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.
SECTION 905.
Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.
SECTION 906.
References in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.
ARTICLE TEN
COVENANTS
SECTION 1001.
Payment of Principal, Premium and Interest.
The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of and any premium and interest on the Securities of that
series in accordance with the terms of the Securities and this Indenture.
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SECTION 1002.
Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.
The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations;
provided, however,
that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.
SECTION 1003.
Money for Securities Payments to Be Held in Trust.
If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of or any premium or interest on
any of the Securities of that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of or any premium or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held
as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure to act.
The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will (i) comply with the provisions of the Trust Indenture Act applicable to it as a Paying Agent and
(ii) during the continuance of any default by the Company (or any other obligor upon the Securities
of that series) in the making of any payment in respect of the Securities of that series, and upon
the written request of the Trustee, forthwith pay to the Trustee all sums held in trust by such
Paying Agent for payment in respect of the Securities of that series.
The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any
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Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.
Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on any Security of any series
and remaining unclaimed for two years after such principal, premium or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease;
provided, however,
that the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published on each Business Day
and of general circulation in the Borough of Manhattan, The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall not be less than 30
days from the date of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.
SECTION 1004.
Limitation on Liens.
The Company will not itself, and will not permit any Domestic Subsidiary to, incur, issue,
assume or guarantee any notes, bonds, debentures or other similar evidences of indebtedness for
money borrowed (notes, bonds, debentures or other similar evidences of indebtedness for money
borrowed being hereinafter in this Article called Debt), secured by pledge of, or mortgage or
other lien on, any Principal Domestic Manufacturing Property of the Company or any Domestic
Subsidiary, or any shares of stock of any Domestic Subsidiary that owns a Principal Domestic
Manufacturing Property (pledges, mortgages and other liens being hereinafter in this Article called
Mortgage or Mortgages), without effectively providing that the Securities of each series then
Outstanding (together with, if the Company shall so determine, any other Debt of the Company or
such Domestic Subsidiary then existing or thereafter created which is not subordinate to the
Securities of each series then Outstanding) shall be secured equally and ratably with (or prior to)
such secured Debt, so long as such secured Debt shall be so secured, unless, after giving effect
thereto, the aggregate amount of all such secured Debt plus all Attributable Debt of the Company
and its Domestic Subsidiaries in respect of sale and leaseback transactions (as defined in Section
1005) would not exceed 15% of Consolidated Net Tangible Assets;
provided, however
, that this Section shall not apply to, and there shall be excluded
from secured Debt in any computation under this Section, Debt secured by:
(1) with respect to any series of Securities, Mortgages existing on the date of the
original issuance of the Securities of such series;
(2) Mortgages on property of, or on any shares of stock of, any corporation existing at
the time such corporation becomes a Domestic Subsidiary or at the time it is merged into or
consolidated with the Company or a Domestic Subsidiary;
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(3) Mortgages in favor of the Company or any Domestic Subsidiary;
(4) Mortgages in favor of the United States of America, any State thereof, any foreign
country or any agency, department or other instrumentality thereof, to secure progress,
advance or other payments pursuant to any contract or provision of any statute;
(5) Mortgages on property or shares of stock existing at the time of acquisition
thereof (including acquisition through merger or consolidation) or to secure the payment of
all or any part of the purchase price or construction or improvement cost thereof or to
secure any Debt incurred prior to, at the time of, or within 12 months after the later of
the acquisition of such property or shares or the completion of any such construction or
improvement for the purpose of financing all or any part of the purchase price or
construction or improvement cost thereof; and
(6) any extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Mortgage referred to in the foregoing clauses
(1) to (5), inclusive;
provided
, that (i) such extension, renewal or replacement Mortgage
shall be limited to all or a part of the same property or shares of stock that secured the
Mortgage extended, renewed or replaced (plus improvements and construction on such property)
and (ii) the principal amount of the Debt secured by such Mortgage at such time is not
increased.
SECTION 1005.
Limitation on Sales and Leasebacks
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The Company will not itself, and it will not permit any Domestic Subsidiary to, enter into any
arrangement with any bank, insurance company or other lender or investor (not including the Company
or any Domestic Subsidiary) or to which any such lender or investor is a party, providing for the
leasing by the Company or a Domestic Subsidiary for a period, including renewals, in excess of
three years of any Principal Domestic Manufacturing Property which has been or is to be sold or
transferred, more than 180 days after the completion of construction and commencement of full
operation thereof, by the Company or any Domestic Subsidiary to such lender or investor or to any
person to whom funds have been or are to be advanced by such lender or investor on the security of
such Principal Domestic Manufacturing Property (herein referred to as a sale and leaseback
transaction) unless either:
(1) The Company or such Domestic Subsidiary could create Debt secured by a Mortgage
pursuant to Section 1004 on the Principal Domestic Manufacturing Property to be leased back
in an amount equal to the Attributable Debt with respect to such sale and leaseback transaction without equally and ratably securing the Securities of each
series, or
(2) The Company within 180 days after the sale or transfer shall have been made by the
Company or by a Domestic Subsidiary, applies an amount equal to the greater of (i) the net
proceeds of the sale of the Principal Domestic Manufacturing Property sold and leased back
pursuant to such arrangement or (ii) the fair market value of the Principal Domestic
Manufacturing Property so sold and leased back at the time of entering into such arrangement
(as set forth in an Officers Certificate) to either (or a
50
combination of) the investment in one or more other Principal Domestic Manufacturing Properties or the retirement of Funded
Debt of the Company;
provided
, that the amount to be applied to either (or a combination
of) the investment in one or more other Principal Domestic Manufacturing Properties or the
retirement of Funded Debt of the Company shall be reduced by (a) the principal amount of any
Securities delivered within 180 days after such sale to the Trustee for retirement and
cancellation, and (b) the principal amount of Funded Debt other than Securities, voluntarily
retired by the Company within 180 days after such sale. Notwithstanding the foregoing, no
retirement referred to in this clause (2) may be effected by payment at maturity or pursuant
to any mandatory sinking fund payment or any mandatory prepayment provision.
SECTION 1006.
Defeasance of Certain Obligations.
If this Section 1006 is specified, as contemplated by Section 301, to be applicable to
Securities of any series, the Company may omit to comply with any term, provision or condition set
forth in Sections 1004 and 1005, and Section 501(4) with respect to Sections 1004 and 1005 shall be
deemed not to be an Event of Default, in each case with respect to the Securities of that series,
provided
that the following conditions have been satisfied:
(1) With reference to this Section 1006, the Company has deposited or caused to be
deposited with the Trustee (or another trustee satisfying the requirements of Section 609)
irrevocably (irrespective of whether the conditions in subparagraphs (2), (3), (4), (5), (6)
and (7) below have been satisfied, but subject to the provisions of Section 402(c) and the
last paragraph of Section 1003), as trust funds in trust, specifically pledged as security
for, and dedicated solely to, the benefit of the Holders of the Securities of that series,
(A) money in an amount, or (B) U.S. Government Obligations which through the payment of
interest and principal in respect thereof in accordance with their terms will provide not
later than the opening of business on the due date of any payment referred to in clause (i)
or (ii) of this subparagraph (1) money in an amount, or (C) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of independent certified public
accountants expressed in a written certification thereof delivered to the Trustee, to pay
and discharge (i) the principal and any premium and each installment of principal and any
premium and interest on the Outstanding Securities of that series on the Stated Maturity of
such principal or installment of principal or interest and (ii) any mandatory sinking fund
payments or analogous payments applicable to Securities of such series on the day on which
such payments are due and payable in accordance with the terms of this Indenture and of such
Securities;
(2) Such deposit shall not cause the Trustee with respect to the Securities of that
series to have a conflicting interest for purposes of the Trust Indenture Act with respect
to the Securities of any series;
(3) Such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other material agreement or instrument to which the Company is
a party or by which it is bound;
51
(4) No Event of Default or event which with the giving of notice or lapse of time, or
both, would become an Event of Default with respect to the Securities of that series shall
have occurred and be continuing on the date of such deposit and no Event of Default under
Section 501(5) or Section 501(6) or event which with the giving of notice or lapse of time,
or both, would become an Event of Default under Section 501(5) or Section 501(6) shall have
occurred and be continuing on the 91st day after such date;
(5) The Company has delivered to the Trustee an Opinion of Counsel to the effect that
Holders and beneficial owners of the Securities of such series will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such deposit and defeasance
of certain obligations and will be subject to U.S. federal income tax on the same amount and
in the same manner and at the same times, as would have been the case if such deposit and
defeasance had not occurred; and
(6) The Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent therein provided for relating to the
defeasance contemplated by this Section have been complied with.
SECTION 1007.
Statement by Officers as to Default.
The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers Certificate, stating whether or not to the
best knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.
SECTION 1008.
Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 1004 to 1005, inclusive, with respect to the Securities of any
series if before the time for such compliance the Holders of at least the majority in principal
amount of the Outstanding Securities of such series shall, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such term, provision or
condition, but no such waiver shall extend to or affect such term, provision or condition except to
the extent so expressly waived, and, until such waiver shall become effective, the obligations of
the Company and the duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101.
Applicability of Article.
Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for Securities of any series) in accordance with this Article.
52
SECTION 1102.
Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or by action taken pursuant to a Board Resolution. In case of any redemption at the election of
the Company of less than all the Securities of any series, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date, of the principal amount of Securities of
such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In
the case of any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company
shall furnish the Trustee with an Officers Certificate evidencing compliance with such
restriction.
SECTION 1103.
Selection by Trustee of Securities to Be Redeemed
.
If less than all the Securities of any series are to be redeemed (unless all of the Securities
of such series and of a specified tenor are to be redeemed), the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the selection for redemption
of portions (equal to the minimum authorized denomination for Securities of that series or any
integral multiple in excess thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of that series. If
less than all of the Securities of such series and of a specified tenor are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series and specified tenor
not previously called for redemption in accordance with the preceding sentence.
The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.
SECTION 1104.
Notice of Redemption.
Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price,
53
(3) if less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption of any Securities, the principal
amounts) of the particular Securities to be redeemed,
(4) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date,
(5) the place or places where such Securities are to be surrendered for payment of the
Redemption Price, and
(6) that the redemption is for a sinking fund, if such is the case.
Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Companys request, by the Trustee in the name and at the expense of
the Company.
SECTION 1105.
Deposit of Redemption Price
.
Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.
SECTION 1106.
Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date;
provided, however,
that, unless otherwise specified as contemplated by Section 301, installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Dates according to their
terms and the provisions of Section 307.
If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.
SECTION 1107.
Securities Redeemed in Part.
Any Security which is to be redeemed only in party shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed
54
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 Security without service charge, a new
Security or Securities of the same series and of like tenor, 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 Security so surrendered.
ARTICLE TWELVE
SINKING FUNDS
SECTION 1201.
Applicability of Article.
The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 301 for Securities
of such series.
The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a mandatory sinking fund payment, and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an optional sinking fund payment. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.
SECTION 1202.
Satisfaction of Sinking Fund Payments with Securities
.
The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series;
provided
that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption through operation of
the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
SECTION 1203.
Redemption of Securities for Sinking Fund.
Not less than 60 days prior to each sinking fund payment date for any series of 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, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities of that series pursuant to Section 1202
and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 and not
more than 60 days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner specified in Section
1103 and cause notice of the redemption thereof to be given in the name of and at the expense of the
55
Company in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.
This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.
56
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.
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THE PROCTER & GAMBLE COMPANY
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By
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/s/ Jon R. Moeller
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Name:
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Jon R. Moeller
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Title:
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Chief Financial Officer
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DEUTSCHE BANK TRUST COMPANY
AMERICAS, as Trustee
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By
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/s/ Richard L. Buckwalter
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Name:
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Richard L. Buckwalter
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Title:
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Director
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By
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/s/ Annie V. Jaghatspanyan
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Name:
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Annie V. Jaghatspanyan
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Title:
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Vice President
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Exhibit (4)(c)
PROCTER & GAMBLE INTERNATIONAL FUNDING SCA,
as Issuer
and
THE PROCTER & GAMBLE COMPANY,
as Guarantor
TO
DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Trustee
Indenture
Dated as of September 3, 2009
PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
AND
THE PROCTER & GAMBLE COMPANY
Certain Sections of this Indenture relating to
Sections 310 through 318, inclusive, of the
Trust Indenture Act of 1939
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Trust Indenture
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Act Sections
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Indenture Sections
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§ 310(a)(1)
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609
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(a)(2)
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609
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(a)(3)
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Not Applicable
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(a)(4)
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Not Applicable
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(a)(5)
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609
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(b)
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608
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610
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§ 311(a)
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613
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(b)
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613
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§ 312(a)
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701
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702(a)
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(b)
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702(b)
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(c)
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702(c)
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§ 313(a)
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703(a)
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(b)
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703(a)
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(c)
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703(a)
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(d)
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703(b)
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§ 314(a)
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704
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(a)(4)
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101
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1007
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(b)
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Not Applicable
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(c)(1)
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102
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(c)(2)
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102
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(c)(3)
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Not Applicable
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(d)
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Not Applicable
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(e)
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102
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§ 315(a)
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601
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(b)
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602
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(c)
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601
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(d)
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601
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(e)
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514
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§ 316(a)
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101
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(a)(1)(A)
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502
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512
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(a)(1)(B)
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513
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(a)(2)
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Not Applicable
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(b)
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508
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(c)
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104(c)
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§ 317(a)(1)
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503
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(a)(2)
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504
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(b)
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1003
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§ 318(a)
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107
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Note:
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This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.
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TABLE OF CONTENTS
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Page
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PARTIES
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1
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RECITALS
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1
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ARTICLE ONE
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DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
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SECTION 101. Definitions
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1
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SECTION 102. Compliance Certificates and Opinions
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8
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SECTION 103. Form of Documents Delivered to Trustee
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8
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SECTION 104. Acts of Holders; Record Dates
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9
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SECTION 105. Notices, Etc., to Trustee and Company
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10
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SECTION 106. Notice of Holders; Waiver
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10
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SECTION 107. Conflict with Trust Indenture Act
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11
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SECTION 108. Effect of Headings and Table of Contents
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11
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SECTION 109. Successors and Assigns
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11
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SECTION 110. Separability Clause
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11
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SECTION 111. Benefits of Indenture
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11
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SECTION 112. Governing Law
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11
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SECTION 113. Legal Holidays
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11
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SECTION 114. USA Patriot Act
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12
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ARTICLE TWO
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SECURITY FORMS
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SECTION 201. Forms Generally
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12
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SECTION 202. Form of Face of Security
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12
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SECTION 203. Form of Reverse of Security
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15
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SECTION 204. Form of Legend for Book-Entry Securities
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18
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SECTION 205. Form of Trustees Certificate of Authentication
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18
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SECTION 206. Form of Guarantee
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19
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ARTICLE THREE
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THE SECURITIES
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SECTION 301. Amount Unlimited; Issuable in Series
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20
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SECTION 302. Denominations
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22
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SECTION 303. Execution, Authentication, Delivery and Dating
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22
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SECTION 304. Temporary Securities
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23
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SECTION 305. Registration, Registration of Transfer and Exchange
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24
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SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
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25
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SECTION 307. Payment of Interest; Interest Rights Preserved
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26
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SECTION 308. Persons Deemed Owners
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27
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Page
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SECTION 309. Cancellation
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27
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SECTION 310. Computation of Interest
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28
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SECTION 311. CUSIP and ISIN Numbers
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28
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ARTICLE FOUR
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SATISFACTION AND DISCHARGE
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SECTION 401. Satisfaction and Discharge of Indenture
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28
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SECTION 402. Application of Trust Money
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29
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SECTION 403. Defeasance and Discharge of Securities of any Series
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30
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ARTICLE FIVE
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REMEDIES
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SECTION 501. Events of Default
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31
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SECTION 502. Acceleration of Maturity; Rescission and Annulment
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33
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SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee
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34
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SECTION 504. Trustee May File Proofs of Claim
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34
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SECTION 505. Trustee May Enforce Claims Without Possession of Securities
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35
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SECTION 506. Application of Money Collected
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35
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SECTION 507. Limitation on Suits
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35
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SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest
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36
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SECTION 509. Restoration of Rights and Remedies
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36
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SECTION 510. Rights and Remedies Cumulative
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36
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SECTION 511. Delay or Omission Not Waiver
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37
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SECTION 512. Control by Holders
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37
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SECTION 513. Waiver of Past Defaults
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37
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SECTION 514. Undertaking for Costs
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37
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SECTION 515. Waiver of Stay or Extension Laws
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38
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ARTICLE SIX
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THE TRUSTEE
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SECTION 601. Certain Duties and Responsibilities
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38
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SECTION 602. Notice of Defaults
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38
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SECTION 603. Certain Rights of Trustee
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38
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SECTION 604. Not Responsible for Recitals or Issuance of Securities
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39
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SECTION 605. May Hold Securities
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39
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SECTION 606. Money Held in Trust
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40
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SECTION 607. Compensation and Reimbursement
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40
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SECTION 608. Disqualification; Conflicting Interests
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40
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SECTION 609. Corporate Trust Required; Eligibility
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40
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SECTION 610. Resignation and Removal; Appointment of Successor
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41
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SECTION 611. Acceptance of Appointment by Successor
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42
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SECTION 612. Merger, Conversion, Consolidation or Succession to Business
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43
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Page
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SECTION 613. Preferential Collection of Claims Against Company and Guarantor
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43
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SECTION 614. Appointment of Authenticating Agent
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43
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ARTICLE SEVEN
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HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
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SECTION 701. Company to Furnish Trustee Names and Addresses of Holders
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45
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SECTION 702. Preservation of Information; Communications to Holders
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45
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SECTION 703. Reports by Trustee
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46
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SECTION 704. Reports by Company and the Guarantor
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46
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ARTICLE EIGHT
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CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
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SECTION 801. Company May Consolidate, Etc. Only on Certain Terms
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46
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SECTION 802. Successor Substituted
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47
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ARTICLE NINE
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SUPPLEMENTAL INDENTURES
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SECTION 901. Supplemental Indentures Without Consent of Holders
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47
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SECTION 902. Supplemental Indentures with Consent of Holders
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48
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SECTION 903. Execution of Supplemental Indentures
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49
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SECTION 904. Effect of Supplemental Indentures
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49
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SECTION 905. Conformity with Trust Indenture Act
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50
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SECTION 906. References in Securities to Supplemental Indentures
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50
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ARTICLE TEN
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COVENANTS
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SECTION 1001. Payment of Principal, Premium and Interest
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50
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SECTION 1002. Maintenance of Office or Agency
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50
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SECTION 1003. Money for Securities Payments to Be Held in Trust
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51
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SECTION 1004. Limitation on Liens
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52
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SECTION 1005. Limitation on Sales and Leasebacks
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53
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SECTION 1006. Defeasance of Certain Obligations
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53
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SECTION 1007. Statement by Officers as to Default
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55
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SECTION 1008. Waiver of Certain Covenants
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55
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SECTION 1009. Business Activities
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55
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Page
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ARTICLE ELEVEN
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GUARANTEE
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SECTION 1101. Guarantee
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55
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SECTION 1102. Consolidation, Merger, Conveyance, Transfer or Lease
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57
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SECTION 1103. Successor Substituted
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58
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SECTION 1104. No Waiver
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58
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SECTION 1105. Modification
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58
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SECTION 1106. Non-Impairment
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58
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SECTION 1107. Limitation on Guarantor Liability
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58
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ARTICLE TWELVE
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REDEMPTION OF SECURITIES
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SECTION 1201. Applicability of Article
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59
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SECTION 1202. Election to Redeem; Notice to Trustee
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59
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SECTION 1203. Selection by Trustee of Securities to Be Redeemed
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59
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SECTION 1204. Notice of Redemption
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60
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SECTION 1205. Deposit of Redemption Price
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60
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SECTION 1206. Securities Payable on Redemption Date
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61
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SECTION 1207. Securities Redeemed in Part
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61
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ARTICLE THIRTEEN
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SINKING FUNDS
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SECTION 1301. Applicability of Article
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61
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SECTION 1302. Satisfaction of Sinking Fund Payments with Securities
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62
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SECTION 1303. Redemption of Securities for Sinking Fund
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62
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ARTICLE FOURTEEN
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MISCELLANEOUS
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SECTION 1401. Submission to Jurisdiction; Appointment of Agent
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62
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INDENTURE, dated as of September 3, 2009, among PROCTER & GAMBLE INTERNATIONAL FUNDING SCA,
a
société en commandite par actions
duly organized and existing under the laws of the Grand Duchy of
Luxembourg (herein called the Company), having its registered office at 26, boulevard Royal,
L-2449 Luxembourg, registered with the Luxembourg trade and companies register under number
B114825, THE PROCTER & GAMBLE COMPANY, a corporation duly organized and existing under the laws of
the State of Ohio (herein called the Guarantor), having its principal office at One Procter &
Gamble Plaza, Cincinnati, Ohio 45202, and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking
corporation, having its principal corporate office at 60 Wall Street, MSNYC60-2710, New York, New
York 10005, as Trustee (herein called the Trustee).
RECITALS
The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness (herein called the Securities), to be issued in one or more series as in this
Indenture provided.
The Guarantor has duly authorized the execution and delivery of this Indenture to provide for
the Guarantee (as defined herein) of the Securities to be issued by the Company in one or more
series as in this Indenture provided.
All things necessary to make this Indenture a valid agreement of the Company and the
Guarantor, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of series thereof, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101.
Definitions.
For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;
(3) the phrase in writing as used herein shall be deemed to include .pdf attachments
and other electronic means of transmission, unless otherwise indicated;
1
(4) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles, and, except as otherwise
herein expressly provided, the term generally accepted accounting principles with respect
to any computation required or permitted hereunder shall mean such accounting principles as
are generally accepted at the date of such computation; and
(5) 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.
Certain terms used principally in Article Six, are defined in that Article.
Act, when used with respect to any Holder, has the meaning specified is Section 104.
Affiliate of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, control when used with respect to any specified Person means the
power to direct 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.
Attributable Debt means, as to any particular lease under which any Person is at the time
liable, at any date as of which the amount thereof is to be determined, the lesser of (i) the fair
market value of the Principal Domestic Manufacturing Property sold and leased back at the time of
entering into a sale and leaseback transaction as defined in Section 1005 (as set forth in an
Officers Certificate), and (ii) the total net amount of rent required to be paid by such Person
under such lease during the remaining term thereof, discounted from the respective due dates
thereof to such date at the rate of 10% per annum compounded annually. The net amount of rent
required to be paid under any such lease for any such period shall be the amount of the rent
payable by the lessee with respect to such period, after excluding amounts required to be paid on
account of maintenance and repairs, insurance, taxes, assessments, water rates and similar charges.
In the case of any lease which is terminable by the lessee upon the payment of a penalty, such net
amount shall also include the amount of such penalty, but no rent shall be considered as required
to be paid under such lease subsequent to the first date upon which it may be so terminated.
Authenticating Agent means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.
Board of Directors means either the board of managers of the sole general partner of the
Company or the board of directors of the Guarantor, as the case may be, or any duly authorized
committee of such board.
Board Resolution means a copy of a resolution certified by a Manager of the general partner
of the Company or by the Secretary or an Assistant Secretary of the Guarantor, as the case may be,
to have been duly adopted by the Board of Directors of the Company or the Guarantor, as the case
may be, and to be in full force and effect on the date of such certification, and delivered to the
Trustee. References to any matter in this Indenture being established in, by
2
or pursuant to a Board Resolution shall include actions taken pursuant to authority granted by
one or more Board Resolutions.
Book-Entry Security means a Security bearing the legend specified in Section 204 evidencing
all or part of a series of Securities, authenticated and delivered to the Depository for such
series or its nominee, and registered in the name of such Depository or nominee.
Business Day, when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law or executive order to close, or as such term is
otherwise specified with respect to a series of Securities.
Commission means the United States Securities and Exchange Commission, as from time to time
constituted, created under the United States Securities Exchange Act of 1934, as amended (the
Exchange Act), or, if at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.
Company means the Person named as the Company in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter Company shall mean such successor Person.
Company Request or Company Order means a written request or order signed in the name of
the Company by any Manager of the general partner of the Company, and delivered to the Trustee.
Consolidated Net Tangible Assets means total assets of the Guarantor, less net goodwill and
other intangible assets, less total current liabilities (as set forth on the most recent balance
sheet of the Guarantor and calculated based on positions as reported in the consolidated financial
statements of the Guarantor in accordance with generally accepted accounting principles).
Corporate Trust Office means the office of the Trustee in the city of New York, New York, at
which at any particular time its corporate trust business shall be administered, which as of the
date of this Indenture is
-
the address of the Trustee set forth in Section 105.
corporation means a corporation, association, company, joint-stock company or business
trust.
Debt has the meaning specified in Section 1004.
Defaulted Interest has the meaning specified in Section 307.
Depository means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Book-Entry Securities, the Person designated as Depository by
the Company pursuant to Section 301 which must be a clearing agency registered under the Exchange
Act, and if at any time there is more than one such Person, Depository shall mean the Depository
with respect to the Securities of that series.
3
Domestic Subsidiary means a Subsidiary of the Guarantor except (i) the Company and (ii) a
Subsidiary (a) which neither transacts any substantial portion of its business nor regularly
maintains any substantial portion of its fixed assets within the States of the United States, or
(b) which is engaged primarily in financing the operations of the Guarantor or its Subsidiaries, or
both, outside the States of the United States.
Event of Default has the meaning specified in Section 501.
Funded Debt means all indebtedness for money borrowed having a maturity of more than 12
months from its date of creation.
Guarantee means the guarantee of the Companys obligations under the Securities of any
applicable series by the Guarantor under this Indenture.
Guaranteed Obligations has the meaning specified in Section 1101(a).
Guarantor means the Person named as the Guarantor in the first paragraph of this
instrument until a successor Person shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter Guarantor shall mean such successor Person.
Holder means a Person in whose name a Security is registered in the Security Register.
Indenture means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term Indenture
shall also include the terms of particular series of Securities established as contemplated by
Section 301.
interest, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.
Interest Payment Date, when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.
Judgment Currency has the meaning specified in Section 1401(e).
Law has the meaning specified in Section 112.
Manager means a manager of the general partner of the Company.
Maturity, when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.
Mortgage or Mortgages has the meaning specified in Section 1004.
4
Officers Certificate means a certificate signed by (i) any Manager of the general partner
of the Company or (ii) the Chairman of the Board, Chief Executive Officer, Chief Financial Officer,
Chief Operating Officer, a Vice Chairman, a President or a Vice President, or an officer certified
by an Assistant Secretary as having a similar level of authority, and by the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary, of the Guarantor, as the case may be,
and delivered to the Trustee. One of the officers signing an Officers Certificate given pursuant
to Section 1007 shall be the principal executive, financial or accounting officer of the Guarantor.
Opinion of Counsel means a written opinion of counsel, who may be counsel for the Company or
the Guarantor, and who shall be reasonably acceptable to the Trustee.
Original Issue Discount Security means any 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 502.
Outstanding, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture,
except
:
(ii) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;
(iii) Securities 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 or the
Guarantor) in trust or set aside and segregated in trust by the Company (if the Company
shall act as its own Paying Agent) for the Holders of such Securities in accordance with
Section 401;
provided
, that if such 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;
(iv) Securities for whose payment or redemption money or U.S. Government Obligations in
the necessary amount has been theretofore deposited with the Trustee (or another trustee
satisfying the requirements of Section 609) in trust for the Holders of such Securities in
accordance with Section 403; and
(v) Securities which have been paid pursuant to Section 306 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held by a bona
fide purchaser in whose hands such Securities are valid obligations of the Company;
provided
,
however
, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, (i) the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable
as of the date of such determination upon acceleration of the Maturity thereof pursuant to Section
502, (ii) the principal amount of a Security denominated in one or more foreign currencies or
currency units shall be the U.S. dollar equivalent, determined in the manner
5
provided as contemplated by Section 301 on the date of original issuance of such Security, of the
principal amount (or, in the case of an Original Issue Discount Security, the U.S. dollar
equivalent on the date of original issuance of such Security of the amount determined as provided
in (i) above) of such Security, and (iii) Securities owned by the Company, the Guarantor or any
other obligor upon the Securities or any Affiliate of the Company, the Guarantor 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 Securities which the Trustee knows to be so owned shall be so
disregarded. 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 pledgees right so to
act with respect to such Securities and that the pledgee is not the Company, the Guarantor or any
other obligor upon the Securities or any Affiliate of the Company, the Guarantor or of such other
obligor.
Paying Agent means any Person authorized by the Company to pay the principal of or any
premium or interest on any Securities on behalf of the Company.
Person means any individual, corporation, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.
Place of Payment, when used with respect to the Securities of any series, means the place or
places where the principal of and any premium and interest on the Securities of that series are
payable as specified as contemplated by Section 301.
Predecessor Security of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.
Principal Domestic Manufacturing Property means any building, structure or other facility,
together with the land upon which it is erected and fixtures comprising a part thereof, used
primarily for manufacturing or processing and located in the United States, owned or leased by the
Guarantor or any Subsidiary of the Guarantor, the gross book value (without deduction of any
depreciation reserves) of which on the date as of which the determination is being made exceeds
1.0% of Consolidated Net Tangible Assets, other than any such building, structure or other facility
or portion thereof (i) which is financed by obligations the interest on which is exempt from U.S.
federal income tax pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (or any
predecessor or successor provision thereof), or (ii) which, in the opinion of the Board of
Directors of the Guarantor, is not of material importance to the total business conducted by the
Guarantor and its Subsidiaries as an entirety.
rate of exchange has the meaning specified in Section 1401(e).
Redemption Date, when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.
6
Redemption Price, when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.
Regular Record Date for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.
Securities has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.
Security Register and Security Registrar have the respective meanings specified in Section
305.
Special Record Date for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.
Stated Maturity, when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.
Subsidiary means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Guarantor or by one or more other Subsidiaries, or by the
Guarantor and one or more other Subsidiaries. For the purposes of this definition, voting stock
means stock which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.
Trustee means the Person named as the Trustee in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter Trustee shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, Trustee as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities of that series.
Trust Indenture Act means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed;
provided
,
however
, that in the event the Trust Indenture Act of
1939 is amended after such date, Trust Indenture Act means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.
U.S. Government Obligations means securities which are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case, are not
.
callable or
redeemable at the option of the issuer thereof, and shall also include a depository receipt issued
by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government Obligation held by such
custodian for the account of the holder of a depository receipt;
provided
that (except as
7
required by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligation or the specific payment of interest on or principal of
the U.S. Government Obligation evidenced by such depository receipt.
Vice President, when used with respect to the Guarantor or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
vice president.
SECTION 102.
Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall
be given in the form of an Officers Certificate, if to be given by an officer of the Company, or
an Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the
Trust Indenture Act and any other requirements set forth in this Indenture.
Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include
(1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;
(2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;
(3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and
(4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.
SECTION 103.
Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.
Any certificate or opinion of a Manager of the general partner of the Company or of an officer
of the Guarantor, as the case may be, may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such Manager or officer knows, or
in the exercise of reasonable care should know, that the certificate or opinion or
8
representations with respect to the matters upon which his or her certificate or opinion is
based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, a Manager or
Managers of the general partner of the Company or of an officer or officers of the Guarantor, as
the case may be, stating that the information with respect to such factual matters is in the
possession of the Company or the Guarantor, as the case may be, unless such counsel knows, or in
the exercise of reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.
Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.
SECTION 104.
Acts of Holders; Record Dates.
(a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company or the Guarantor. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the Act of
the Holders signing such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 601) conclusive in favor of the Trustee, the Company and the Guarantor, if made
in the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.
(c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders of Securities of any series entitled to
give or take any request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken by Holders of
Securities of such series. If not set by the Company prior to the first solicitation of a Holder
of Securities of such series made by any Person in respect of any such action, or, in the case of
any such vote, prior to such vote, the record date for any such action or vote shall be the 30th
day (or, if later, the date of the most recent list of Holders required to be provided pursuant to
Section 701) prior to such first solicitation or vote, as the case may be. With regard to any
record date for action to be taken by the Holders of one or more series of Securities, only the
9
Holders of Securities of such series on such date (or their duly designated proxies) shall be
entitled to give or take, or vote on, the relevant action.
(d) The ownership of Securities shall be proved by the Security Register.
(e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee, the Company or
the Guarantor in reliance thereon, whether or not notation of such action is made upon such
Security.
SECTION 105.
Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,
(1) the Trustee by any Holder or by the Company or the Guarantor shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing to or with the
Trustee at its Corporate Trust Office, Deutsche Bank Trust Company Americas, 60 Wall Street,
MSNYC60-2710, New York, New York 10005, Attention: Trust & Securities Services, or
(2) the Company or the Guarantor, as the case may be, by the Trustee or by any Holder
shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to the Company or the Guarantor, as
the case may be, addressed to it at the address of its office specified in the first
paragraph of this instrument or at any other address previously furnished in writing to the
Trustee by the Company or the Guarantor, as the case may be.
SECTION 106.
Notice of Holders; Waiver.
Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.
Where this Indenture provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver.
In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be
10
made with the approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder.
SECTION 107.
Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this Indenture, the Trust Indenture
Act provision shall control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or to be excluded, as the case may be.
SECTION 108.
Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.
SECTION 109.
Successors and Assigns.
All covenants and agreements in this Indenture by the Company and the Guarantor shall bind
their respective successors and assigns, whether so expressed or not.
SECTION 110.
Separability Clause.
In case any provision in this Indenture or in the Securities or in any Guarantee 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 111.
Benefits of Indenture.
Nothing in this Indenture or in the Securities or any Guarantee, express or implied, shall
give to any Person, other than the parties hereto and their successors hereunder and the Holders,
any benefit or any legal or equitable right, remedy or claim under this Indenture.
SECTION 112.
Governing Law.
This Indenture, the Securities and any Guarantee shall be governed by and construed in
accordance with the laws of the State of New York. The Company expressly decides to derogate from
the provisions of articles 86 to 94-8 of the law of August 10, 1915 on commercial companies as
amended (the Law) in accordance with the provision of article 95 of the Law.
SECTION 113.
Legal Holidays.
In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of the Securities of any
series which specifically states otherwise)) payment of interest or principal (and premium, if any)
need not be made at such Place of Payment on such date, but may be made on the next
11
succeeding Business Day at such Place of Payment with the same force and effect as if made on
the Interest Payment Date or Redemption Date, or at the Stated Maturity,
provided
that no interest
shall accrue for the period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be.
SECTION 114.
USA Patriot Act.
The parties hereto acknowledge that in accordance with Section 326 of the USA Patriot Act, the
Trustee, like all financial institutions, is required to obtain, verify, and record information
that identifies each person or legal entity that establishes a relationship or opens an account.
Each of the Company and the Guarantor agrees that it will provide the Trustee with such information
that is in its possession, or is obtainable by the Company or the Guarantor, as the case may be,
without unreasonable burden or expense, as the Trustee may reasonably request, no more frequently
than on an annual basis, in order for the Trustee to satisfy the requirements of the USA Patriot
Act.
ARTICLE TWO
SECURITY FORMS
SECTION 201.
Forms Generally.
The Securities of each series shall be substantially the form set forth in this Article, or in
such other form as shall be established by or pursuant to a Board Resolution 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 may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities, as evidenced by
their execution of the Securities. If the form of Securities of any series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be
certified by a Manager of the general partner of the Company and delivered to the Trustee at or
prior to the delivery of the Company Order contemplated by Section 303 for the authentication and
delivery of such Securities.
The definitive Securities shall be printed, lithographed or engraved on steel engraved
borders or may be produced in any other manner, all as determined by the Manager executing such
Securities, as evidenced by his or her execution of such Securities.
SECTION 202.
Form of Face of Security.
[if the Security is an Original Issue Discount Security, insert
THIS NOTE WAS ISSUED WITH
ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE UNITED STATES INTERNAL
REVENUE CODE OF 1986, AS AMENDED. [THE ISSUE PRICE OF THIS NOTE WAS ___% OF ITS PRINCIPAL
AMOUNT; THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT IS
$___ PER NOTE WITH A PRINCIPAL AMOUNT OF
$___; THE ISSUE DATE IS ___20___; AND THE YIELD TO MATURITY IS ___%.] [THE ISSUE PRICE, ISSUE
DATE, TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT AND YIELD TO MATURITY OF THIS NOTE MAY BE
12
OBTAINED BY CONTACTING THE COMPANY AT [26, BOULEVARD ROYAL, L-2449 LUXEMBOURG].]
[if the Security is an Original Issue Discount Security that is subject to the rules of
Treasury regulations section 1.1275-4(b)
] [THE ISSUE PRICE OF THIS NOTE WAS ___% OF ITS PRINCIPAL
AMOUNT AT ISSUANCE; THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT IS
$___ PER NOTE WITH A PRINCIPAL
AMOUNT OF $___ AT ISSUANCE, DETERMINED WITHOUT TAKING INTO ACCOUNT ANY ADJUSTMENTS PURSUANT TO
TREASURY REGULATION SECTION 1.1275-4(b); THE ISSUE DATE IS ___20___; THE COMPARABLE YIELD IS ___%;
AND THE PROJECTED PAYMENT SCHEDULE IS ATTACHED HERETO AS EXHIBIT ___.] [THE ISSUE PRICE, ISSUE
DATE, TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE WITH
RESPECT TO THIS NOTE MAY BE OBTAINED BY CONTACTING THE COMPANY AT [26, BOULEVARD ROYAL, L-2449
LUXEMBOURG].]
PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
fully and unconditionally guaranteed by
THE PROCTER & GAMBLE COMPANY
Procter & Gamble International Funding SCA,
a société en commandite par actions
duly organized
and existing under the laws of the Grand Duchy of Luxembourg (herein called the Company, which
term includes any successor Person under the Indenture hereinafter referred to), having its
registered office at 26, boulevard Royal, L-2449 Luxembourg, registered with the Luxembourg trade
and companies register under number B114825, for value received, hereby promises to pay to
or registered assigns, the principal sum of
[Dollars] on
[
if the
Security is to bear Interest prior to Maturity, Interest
,
and to pay interest thereon from
or from the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on
and
in each year, commencing
, at the rate of
% per
annum, until the principal hereof is paid or made available for payment [
if applicable, insert
,
and (to the extent that the payment of such interest shall be legally enforceable) at the rate of
% per annum on any overdue principal and premium and on any overdue installment of interest].
The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest, which shall be the
or
(in each case, whether or not a Business
Day), immediately preceding the related Interest Payment Date;
provided, however
,
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that interest payable on any Maturity date shall be payable to the Person to whom the
principal of the Securities shall be payable. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person on whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture].
[
If the Security is not to bear interest prior to the Maturity, insert
The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of
% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such default in payment
to the date payment of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of
% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of such demand for
payment to the date payment of such interest has been made or duly provided for, and such interest
shall also be payable on demand.]
Payment of the principal of (and premium, if any) and [
if applicable, insert
any such]
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in
, in [such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts] [
if applicable, insert
;
provided
,
however
, that at the option of the Company payment of interest may be made by: check mailed to the
address of the Person entitled thereto in whose name this Security (or one or more Predecessor
Securities) are registered at the close of business on the Regular Record Date at such address as
shall appear in the Security Register or by wire transfer of immediately available funds to an
account specified in writing by such Holder to the Company and the Trustee prior to the relevant
record date].
This Security is fully and unconditionally guaranteed by The Procter & Gamble Company, a
corporation duly organized and existing under the laws of the State of Ohio (the Guarantor).
Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.
Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.
14
Dated:
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PROCTER & GAMBLE INTERNATIONAL FUNDING SCA
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By: its general partner Procter & Gamble
International Finance Funding General Management
Sàrl
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By:
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SECTION 203.
Form of Reverse of Security.
This Security is one of a duly authorized issue of securities of the Company (herein called
the Securities), issued and to be issued in one or more series under an Indenture, dated as of
September 3, 2009 (herein called the Indenture), among the Company, the Guarantor and Deutsche
Bank Trust Company Americas, as Trustee (herein called the Trustee, which term includes any
successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Guarantor, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof[, limited in aggregate
principal amount to [$]
].
[
If applicable, insert
The Securities of this series are subject to redemption upon not less
than 30 days notice by mail, [
if applicable, insert
(1) on
in any year commencing with the
year
and ending with the year
through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [on or after
,
20
], as a whole or in part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [on or before
, %,
and if redeemed] during the 12-month period beginning
of the years indicated,
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Redemption
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Redemption
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Price
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Year
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Price
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and thereafter at a Redemption Price equal to
% of the principal amount, together in the case of
any such redemption [
if applicable, insert
(whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated
15
Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture.]
[
If applicable, insert
The Securities of this series are subject to redemption upon not less
than 30 days notice by mail, (1) on
in any year commencing with the year
and ending
with the year
through operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below, and (2) at any time [on or after
], as a whole or in part, at
the election of the Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal amount) set forth in the
table below: If redeemed during the 12-month period beginning
of the years indicated.
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Redemption Price For
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Redemption Price For
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Redemption Otherwise Than
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Redemption Through
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Through Operation of the
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Year
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Operation of the Sinking Fund
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Sinking Fund
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and thereafter at a Redemption Price equal to
% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.]
[Notwithstanding the foregoing, the Company may not, prior to
, redeem any
Securities of this series as contemplated by [Clause (2) of] the preceding paragraph as a part of,
or in anticipation of, any refunding operation by the application, directly or indirectly, of
moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than
% per annum.]
[The sinking fund for this series provides for the redemption on
in each year
beginning with the year
and ending with the year
of [not less than $
(mandatory sinking
fund) and not more than] $
aggregate principal amount of Securities of this series.
Securities of this series acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory] sinking fund payments
otherwise required to be made [in the inverse order in which they become due].]
[
If the Security is subject to redemption, insert
In the event of redemption of this Security
in part only, a new Security or Securities of this series and of like tenor for the
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unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.]
[
If the Security is not an Original Issue Discount Security, insert
If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]
[
If the Security is an Original Issue Discount Security, insert
If an Event of Default with
respect to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to
insert formula for determining the
amount
. Upon payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal and overdue interest (in each case to the extent that the payment
of such interest shall be legally enforceable), all of the Companys obligations in respect of the
payment of the principal of and interest, if any, on the Securities of this series shall
terminate.]
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of at least a majority in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of at least a majority in principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
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The Securities of this series are issuable only in registered form without coupons in
denominations of [$]
and any integral multiple of [$]
in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.
SECTION 204.
Form of Legend for Book-Entry Securities
.
Any Book-Entry Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:
This Security is a Book-Entry Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depository or a nominee
of a Depository or a successor depository. This Security is not exchangeable for
Securities registered in the name of a Person other than the Depository or its
nominee except in the limited circumstances described in the Indenture, and no
transfer of this Security (other than a transfer of this Security as a whole by the
Depository to a nominee of the Depository or by a nominee of the Depository to the
Depository or another nominee of the Depository) may be registered except in the
limited circumstances described in the Indenture.
SECTION 205.
Form of Trustees Certificate of Authentication
.
The Trustees certificates of authentication shall be in substantially the following form:
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This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.
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DEUTSCHE BANK TRUST COMPANY
AMERICAS
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As Trustee
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By
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Authorized Officer
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SECTION 206.
Form of Guarantee
The Guarantee of any applicable series of Securities shall be in substantially the following
form:
For value received, the undersigned (the Guarantor), to the extent set forth in and subject
to the terms of the Indenture, dated as of September 3, 2009 (the Indenture), among Procter &
Gamble International Funding SCA,
a société en commondite par actions
duly organized under the laws
of the Grand Duchy of Luxembourg (the Company), the Guarantor and Deutsche Bank Trust Company
Americas, as trustee (the Trustee), irrevocably and unconditionally guarantees to each Holder and
to the Trustee and its successors and assigns (1) the full and punctual payment when due, whether
at Stated Maturity, by acceleration, by redemption or otherwise, of all obligations of the Company
under this Indenture (including obligations to the Trustee) and the Securities, whether for payment
of principal of or interest on or premium, if any, on the Securities and all other monetary
obligations of the Company under this Indenture and the Securities and (2) the full and punctual
performance within applicable grace periods of all other obligations of the Company whether for
fees, expenses, indemnification or otherwise under this Indenture and the Securities (all the
foregoing being hereinafter collectively called the Guaranteed Obligations).
The obligations of the Guarantor to the Holders and to the Trustee pursuant to this Guarantee
and the Indenture are expressly set forth in Article Eleven of the Indenture, and reference is
hereby made to the Indenture for the precise terms and limitations of this Guarantee. Each Holder
of the Securities to which this Guarantee is endorsed, by accepting such Securities, agrees to and
shall be bound by such provisions.
All terms used in this Guarantee which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.
IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be signed by a duly authorized
officer.
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THE PROCTER & GAMBLE COMPANY
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By
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ARTICLE THREE
THE SECURITIES
SECTION 301.
Amount Unlimited; Issuable in Series
.
The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.
The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided,
in an Officers Certificate, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series,
(1) the title of the Securities of the series (which shall distinguish the Securities
of the series from Securities of any other series);
(2) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1207 and except for any
Securities which, pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);
(3) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;
(4) the date or dates on which the principal of the Securities of the series is
payable;
(5) the rate or rates at which the Securities of the series shall bear interest, or the
method or methods by which such rate or rates shall be determined, if any, the date or dates
from which such interest shall accrue, the Interest Payment Dates on which any such interest
shall be payable and the Regular Record Date for any interest payable on any Interest
Payment Date;
(6) the place or places where the principal of and any premium and interest on
Securities of the series shall be payable;
(7) the period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the
option of the Company;
(8) the obligation, if any, of the Company to redeem or purchase Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of a
20
Holder thereof and the period or periods within which, the price or prices at which and
the terms and conditions upon which Securities of the series shall be redeemed or purchased,
in whole or in part, pursuant to such obligation;
(9) if other than minimum denominations of $2,000 and integral multiples of $1,000 in
excess thereof, the denominations in which Securities of the series shall be issuable;
(10) the application, if any, of Section 403 to the Securities of the series;
(11) the application, if any, of Section 1006 to the Securities of the series;
(12) the currency, currencies or currency units in which payment of the principal of
and any premium and interest on any Securities of the series shall be payable if other than
the currency of the United States of America and the manner of determining the equivalent
thereof in the currency of the United States of America for purposes of the definition of
Outstanding in Section 101;
(13) if the amount of payments of principal of or any premium or interest on any
Securities of the series may be determined with reference to an index, the manner in which
such amounts shall be determined;
(14) whether the Securities of the series shall be issued in whole or in part in the
form of one or more Book-Entry Securities and, in such case, the Depository with respect to
such Book-Entry Security or Securities and the circumstances under which any such Book-Entry
Security may be registered for transfer or exchange, or authenticated and delivered, in the
name of a Person other than such Depository or its nominee, if other than as set forth in
Section 305;
(15) if other than the principal of or any premium or interest on any Securities of the
series is to be payable, at the election of the Company or a Holder thereof, in one or more
currencies or currency units other than that or those in which the Securities are stated to
be payable, the currency, currencies or currency units in which payment of the principal of
and any premium and interest on Securities of such series as to which such election is made
shall be payable, and the periods within which and the terms and conditions upon which such
election is to be made;
(16) if other than the entire principal amount thereof, the portion of the principal
amount of Securities of the series which shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 502;
(17) any deletions, modifications of or additions to the Events of Default or the
covenants of the Company or the Guarantor set forth herein, and any definitions related
thereto, with respect to Securities of the series;
(18) if the Securities of the series are to be listed on any securities exchange, the
securities exchange upon which such Securities shall be listed;
21
(19) whether the Securities of the series will be guaranteed by any Person and, if so,
the identity of such Person, the terms and conditions upon which such Securities shall be
guaranteed;
(20) the obligation, if any, of the Company or the Guarantor to pay additional amounts
in respect of any tax, assessment or governmental charge and, if so, whether the Company
will have the option to redeem such Securities rather than paying such additional interest
(and the terms of any such option); and
(21) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 901(5)).
All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers
Certificate referred to above or in any such indenture supplemental hereto.
SECTION 302.
Denominations
.
The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 301. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such series shall be
issuable in minimum denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
SECTION 303.
Execution, Authentication, Delivery and Dating
.
The Securities shall be executed on behalf of the Company by one of the Managers of the
general partner of the Company. The signature of such Manager on the Securities may be manual,
facsimile, in the form of a .pdf attachment or by other means of electronic transmission.
Securities bearing the signature of an individual who was, at the time of executing such
Securities, the proper Manager of the general partner of the Company, shall bind the Company,
notwithstanding that such individual has ceased to be a Manager of the general partner of the
Company prior to the authentication and delivery of such Securities.
At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon, an Opinion of Counsel stating,
22
(a) if the form of such Securities has been established by or pursuant to Board Resolutions as
permitted by Section 201, that such form has been established in conformity with the provisions of
this Indenture;
(b) if the terms of such Securities have been established by or pursuant to Board Resolutions
as permitted by Section 301, that such terms have been established in conformity with the
provisions of this Indenture;
(c) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and binding obligations of the Company enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors rights and to general equity
principles; and
(d) all conditions precedent provided for in this Indenture relating to the authentication and
delivery of the Securities by the Trustee have been complied with.
If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will
adversely affect the Trustees own rights, duties or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the authentication upon original issuance of the first Security of such series to be issued.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall
have been authenticated and delivered hereunder but never issued and sold by the Company, and the
Company shall deliver such Security to the Trustee for cancellation as provided in Section 309, for
all purposes of this Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this Indenture.
SECTION 304.
Temporary Securities
.
Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which
23
are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their execution of such
Securities.
If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or
more definitive Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and tenor. Until so exchanged the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series and tenor.
SECTION 305.
Registration, Registration of Transfer and Exchange
.
The Company shall cause to be kept at its registered office in the Grand Duchy of Luxembourg,
with a copy kept at the Corporate Trust Office of the Trustee, a register (the register maintained
in such office and in any other office or agency of the Company in a Place of Payment being herein
sometimes collectively referred to as the Security Register) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities and
of transfers of Securities. The Trustee is hereby appointed Security Registrar for the purpose of
registering Securities and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security of any series at the office or
agency in a Place of Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor.
At the option of the Holder, Securities of any series may be exchanged for other securities of
the same series, of any authorized denominations and of a like aggregate principal amount and
tenor, upon surrender of the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.
All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
24
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906 or 1207 not involving any transfer.
The Company shall not be required (i) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 1203 and ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange of any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.
Notwithstanding the foregoing, no Book-Entry Security shall be registered for transfer or
exchange, or authenticated and delivered, whether pursuant to this Section, Sections 304, 306, 906
or 1207 or otherwise, in the name of a Person other than the Depository for such Book-Entry
Security or its nominee until (i) the Depository with respect to a Book-Entry Security notifies the
Company that it is unwilling or unable to continue as Depository for such Book-Entry Security or
the Depository ceases to be a clearing agency registered under the Exchange Act, (ii) the Company
executes and delivers to the Trustee a Company Order that such Book-Entry Security shall be so
transferable and exchangeable or (iii) there shall have occurred and be continuing an Event of
Default with respect to the Securities of such series. Upon the occurrence in respect of any
Book-Entry Security of any series of any one or more of the conditions specified in clauses (i),
(ii) or (iii) of the preceding sentence or such other conditions as may be specified as
contemplated by Section 301 for such series, such Book-Entry Security may be registered for
transfer or exchange for Securities registered in the name of, or authenticated and delivered to,
such Persons as the Depository with respect to such series shall direct.
Except as provided in the preceding paragraph, any Security authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, any Book-Entry Security, whether
pursuant to this Section, Section 304, 306, 906 or 1207 or otherwise, shall also be a Book-Entry
Security and bear the legend specified in Section 204.
SECTION 306.
Mutilated, Destroyed, Lost and Stolen Securities
.
If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and
of like tenor and principal amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company, the Guarantor or the Trustee that such Security has been
25
acquired by a bona fide purchaser, the Company shall execute and the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of
the same series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.
In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.
Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
loss or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.
SECTION 307.
Payment of Interest; Interest Rights Preserved
.
Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record date for
such interest.
Any interest on any Security of any Series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called Defaulted Interest) shall
forthwith cease to be payable to the Holder on the relevant regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such Series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be made in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the
26
Persons entitled to such Defaulted Interest as in this Clause provide. 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 therefore to be mailed,
First-class postage prepaid, to each holder of Securities of such series at his address as
it appears in the Security Register, not less than 10 days prior such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefore having been so mailed such Defaulted Interest shall be paid to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following Clause (2).
(2) The Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if after notice given by the Company to the Trustee of the proposed payment
pursuant to this Clause, such manner of payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.
SECTION 308.
Persons Deemed Owners.
Prior to due presentment of a Security for registration of transfer, the Company, the
Guarantor, the Trustee and any agent of the Company, the Guarantor or the Trustee may treat the
Person in whose name such Security is registered as the owner of such Security for the purpose of
receiving payment of principal of and any premium and (subject to Section 307) any interest on such
Security and for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Guarantor, the Trustee nor any agent of the Company, the Guarantor or the
Trustee shall be affected by notice to the contrary.
SECTION 309.
Cancellation.
All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company and the
Guarantor may at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company or the Guarantor may have acquired in any
manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) for cancellation any Securities previously authenticated hereunder which the Company has
not issued and sold, and all Securities so delivered shall be promptly cancelled by
27
the Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted by this Indenture.
All cancelled Securities held by the Trustee shall be disposed of as directed by a Company Order.
SECTION 310.
Computation of Interest.
Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.
SECTION 311.
CUSIP and ISIN Numbers.
The Company in issuing any series of the Securities may use CUSIP and ISIN numbers, in
each case if then generally in use, and thereafter with respect to such series, the Trustee for the
Securities of such series may use such numbers in any notice of redemption or exchange with respect
to such series, provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities of that series or as contained in
any notice of a redemption or exchange and that reliance may be placed only on the other
identification numbers printed on the Securities of that series, and any such redemption or
exchange shall not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee in writing of any change in the CUSIP numbers.
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401.
Satisfaction and Discharge of Indenture.
This Indenture shall upon Company Request cease to be of further effect with respect to any
series of Securities and any related Guarantee (except as to any surviving rights of registration
of transfer or exchange of Securities of such series herein expressly provided for), and the
Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction
and discharge of this Indenture with respect to such series of Securities, when
(1) either
(A) all Securities of such series (and any related Guarantee) theretofore
authenticated and delivered (other than (i) Securities of such series which have
been destroyed, lost or stolen and which have been replaced or paid as provided in
Section 306 and (ii) Securities of such series for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Company
or the Guarantor and thereafter repaid to the Company or the Guarantor or discharged
from such trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or
28
(B) all Securities of such series not theretofore delivered to the Trustee for
cancellation
(i) have become due and payable or
(ii) will become due and payable at their Stated Maturity within one
year, or
(iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense of the Company,
and the Company or the Guarantor, in the case of (i), (ii) or (iii) above, has deposited or cause
to be deposited with the Trustee as trust funds in trust for the purpose an amount sufficient to
pay and discharge the entire indebtedness on such Securities (and any related Guarantee) not
theretofore delivered to the Trustee for cancellation, for principal and any premium and Interest
to the date of such deposit (in the case of Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;
(2) the Company or the Guarantor has paid or caused to be paid all other sums payable
hereunder by the Company or the Guarantor; and
(3) the Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture as to such series of Securities (and any
related Guarantee) have been complied with.
Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 607, the obligations of the
Trustee to any Authenticating Agent under Section 614 and, if money or U.S. Government Obligations
shall have been deposited with the Trustee in accordance with Section 403 or 1006, the obligations
of the Company to the Trustee under Section 402(b), and, if money shall have been deposited with
the Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 shall survive.
SECTION 402.
Application of Trust Money.
(a) Subject to the provisions of the last paragraph of Section 1003, all money deposited with
the Trustee pursuant to Section 401, all money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 403 or 1006 and all money received by the Trustee in respect of U.S.
Government Obligations deposited with the Trustee pursuant to Section 403 or 1006, shall be held in
trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and Interest for whose payment such money has been deposited with or received by
the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by
Section 403 or 1006.
29
(b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations deposited pursuant to Section 403 or
1006 or the interest and principal received in respect of such obligations other than any payable
by or on behalf of Holders.
(c) The Trustee shall deliver or pay to the Company from time to time upon Company Request any
money or U.S. Government Obligations held by it as provided in Section 403 or 1006 which, in the
opinion of a nationally recognized firm of independent certified public accountants expressed in a
written certification thereof delivered to the Trustee, as then in excess of the amount thereof
which then would have been required to be deposited for the purpose for which such money or U.S.
Government Obligations were deposited or received.
SECTION 403.
Defeasance and Discharge of Securities of any Series.
If this Section 403 is specified, as contemplated by Section 301, to be applicable to
Securities of any series, then notwithstanding Section 401, the Company, the Guarantor and any
other obligor shall be deemed to have paid and discharged the entire indebtedness on all the
Outstanding Securities of that series (and any related Guarantee), the provisions of this Indenture
as it relates to such Outstanding Securities (and any related Guarantee) (except as to the rights
of Holders of Securities to receive, from the trust funds described in subparagraph (1) below,
payment of the principal of (and premium, if any) and any installment of principal of (and premium,
if any) or interest on such Securities on the Stated Maturity of such principal or installment of
principal or interest or any mandatory sinking fund payments or analogous payments applicable to
the Securities of that series on the day on which such payments are due and payable in accordance
with the terms of the Indenture and of such Securities, the Companys obligations with respect to
such Securities under Section 305, 306, 1002 and 1003 and the rights, powers, trusts, duties and
immunities of the Trustee hereunder) shall no longer be in effect, and the Trustee, at the expense
of the Company, shall, upon Company Request, execute proper instruments acknowledging the same,
provided
that the following conditions have been satisfied:
(1) the Company or the Guarantor has deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 609), irrevocably
(irrespective of whether the conditions in subparagraphs (2), (3), (4), (5) and (6) below
have been satisfied, but subject to the provisions of Section 402(c) and the last paragraph
of Section 1003), as trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the Securities of that series, with
reference to this Section 403, (A) money in an amount, or (B) U.S. Government Obligations
which through the payment of interest and principal in respect thereof in accordance with
their terms will provide not later than the opening of business on the due date of any
payment referred to in clause (i) or (ii) of this subparagraph (1) money in an amount, or
(C) a combination thereof, sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge (i) the principal of (and premium, if any)
and each installment of principal (and premium, if any) and interest on such Outstanding
Securities on the Stated Maturity of such principal or installment of principal or interest
and (ii) any mandatory sinking fund payments or analogous payments
30
applicable to Securities of such series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and of such Securities;
(2) such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other material agreement or instrument to which the Company is
a party or by which it is bound;
(3) no Event of Default or event which with the giving of notice or lapse of time, or
both, would become an Event of Default with respect to the Securities of that series shall
have occurred and be continuing on the date of such deposit and no Event of Default under
Section 501(5) or Section 501(6) or event which with the giving of notice or lapse of time
or both, would become an Event of Default under Section 501(5) or Section 501(6) shall have
occurred and be continuing on the 91st day after such date;
(4) the Company has delivered to the Trustee an Opinion of Counsel to the effect that
the Company has received from, or there has been published by, the Internal Revenue Service
a ruling to the effect that Holders and beneficial owners of the Securities of that series
will not recognize income, gain or loss for U.S. federal income tax purposes as a result of
such deposit, defeasance and discharge and will be subject to U.S. federal income tax on the
same amount and in the same manner and at the same times, as would have been the case if
such deposit, defeasance and discharge had not occurred; and
(5) the Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to the defeasance
and discharge of the entire indebtedness on all Outstanding Securities of any such series as
contemplated by this Section have been complied with.
ARTICLE FIVE
REMEDIES
SECTION 501.
Events of Default
.
Event of Default, wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be 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):
(1) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or
(2) default in the payment of the principal of (or premium, if any, on) any Security of
that series at its Maturity; or
(3) default in the deposit of any sinking fund payment, when and as due by the terms of
a Security of that series; or
31
(4) default in the performance, or breach, of any covenant or warranty of the Company
or the Guarantor in this Indenture which affects or is applicable to the Securities of that
series (other than a covenant or warranty a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with or which has expressly been included in
this Indenture solely for the benefit of series of Securities other than that series), and
continuance of such default or breach for a period of 90 days after there has been given, by
registered or certified mail, to the Company or the Guarantor, as the case may be, by the
Trustee or to the Company or the Guarantor, as the case may be, and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a Notice of Default hereunder; or
(5) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company or the Guarantor in an involuntary case or proceeding
under any applicable Federal or State or foreign bankruptcy, insolvency, reorganization or
other similar law or (B) a decree or order adjudging the Company or the Guarantor a bankrupt
or insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company or the Guarantor under any
applicable Federal or State or foreign law, or appointing a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or the Guarantor or
of any substantial part of either of its property, or ordering the winding up or liquidation
of either of its affairs, and the continuance of any such decree or order for relief or any
such other decree or order unstayed and in effect for a period of 60 consecutive days; or
(6) the commencement by the Company or the Guarantor of a voluntary case or proceeding
under any applicable Federal or State or foreign bankruptcy, insolvency, reorganization or
other similar law or of any other case or preceding to be adjudicated a bankrupt or
insolvent, or the consent by either the Company or the Guarantor to the entry of a decree or
order for relief in respect of the Company or the Guarantor in an involuntary case or
proceeding under any applicable Federal or State or foreign bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency
case or proceeding against either the Company or the Guarantor, or the filing by either the
Company or the Guarantor of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State or foreign law, or the consent by either the Company
or the Guarantor to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or the Guarantor or of any substantial part of either of its
property, or the making by either the Company or the Guarantor of an assignment for the
benefit of creditors, or the admission by either the Company or the Guarantor in writing of
its inability to pay its debts generally as they become due, or the taking of corporate
action by the Company or the Guarantor in furtherance of any such action; or
(7) any Guarantee of Securities of that series is determined to be unenforceable or
invalid or shall for any reason cease to be in full force and effect except
32
as permitted by this Indenture, or the Guarantor repudiates its obligations under such
Guarantee; or
(8) any other Event of Default provided with respect to Securities of that series.
SECTION 502.
Acceleration of Maturity; Rescission and Annulment.
If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal amount (or,
if any of the Securities of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof) of all of the
Securities of that series to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable.
At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company, the Guarantor and the
Trustee, may rescind and annul such declaration and its consequences if
(1) the Company or the Guarantor has paid or deposited with the Trustee a sum
sufficient to pay
(A) all overdue interest on all Securities of that series,
(B) the principal of (and premium, if any, on) any Securities of that series
which have become due otherwise than by such declaration of acceleration and any
interest thereon at the rate or rates prescribed therefor in such Securities,
(C) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate or rates prescribed therefor in such Securities, and
(D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and
(2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right consequent
thereon.
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SECTION 503.
Collection of Indebtedness and Suits for Enforcement by Trustee
.
The Company and the Guarantor covenant that if
(1) default is made in the payment of any interest on any Security when such interest
becomes due and payable and such default continues for a period of 30 days, or
(2) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof,
the Company or the Guarantor will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such Securities for principal
and any premium and interest and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal and premium and on any overdue interest, at the rate
or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.
If the Company or the Guarantor fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding
for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or
final decree and may enforce the same against the Company, the Guarantor or any other obligor upon
such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Company, the Guarantor or any other obligor upon such Securities,
wherever situated.
If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in the Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.
SECTION 504.
Trustee May File Proofs of Claim
.
In case of any judicial proceeding relative to the Company or the Guarantor (or any other
obligor upon the Securities), their property or their creditors, the Trustee shall be entitled and
empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized
under the Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any
such proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.
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No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.
SECTION 505.
Trustee May Enforce Claims Without Possession of Securities
.
All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.
SECTION 506.
Application of Money Collected
.
Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal or any premium or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under Section 607;
SECOND: To the payment of the amounts then due and unpaid for principal of and any premium
and interest on the Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and any premium and interest, respectively; and
THIRD: To the Company.
SECTION 507.
Limitation on Suits.
No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless
(1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;
(2) the Holders of not less than 25% in principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee reasonable indemnity against the
costs, expenses and liabilities to be incurred in compliance with such request;
35
(4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;
it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture, the Securities or
any Guarantee to affect, disturb or prejudice the rights of any other of such Holders, or to obtain
or to seek to obtain priority or preference over any other of such Holders or to enforce any right
under the Indenture, except in the manner provided in this Indenture, the Securities or any
Guarantee and for the equal and ratable benefit of all of such Holders.
SECTION 508.
Unconditional Right of Holders to Receive Principal, Premium and Interest.
Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 307) any interest on such Security on the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date) and
to institute suit for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.
SECTION 509.
Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture, the Securities or any Guarantee and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, the Company, the
Guarantor, the Trustee and the Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall
continue as though no such proceeding has been instituted.
SECTION 510.
Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
36
SECTION 511.
Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
the Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.
SECTION 512.
Control by Holders.
The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series,
provided
that
(1) such direction shall not be in conflict with any rule of law or with this
Indenture, the Securities or any Guarantee, and
(2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.
SECTION 513.
Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of the Outstanding Securities of
any series may on behalf of the Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except a default
(1) in the payment of the principal of or any premium or interest on any Security of
such series, or
(2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series affected.
Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture, but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.
SECTION 514.
Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act.
37
SECTION 515.
Waiver of Stay or Extension Laws.
The Company and the Guarantor each covenant (to the extent that they may lawfully do so) that
they will not at any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter
in force, which may affect the covenants or the performance of this Indenture, the Securities or
any Guarantee; and the Company and the Guarantor (to the extent that they may lawfully do so)
hereby expressly waive all benefit or advantage of any such law and covenant that they will not
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been enacted.
ARTICLE SIX
THE TRUSTEE
SECTION 601.
Certain Duties and Responsibilities.
The duties and responsibilities of the Trustee shall be as provided by the Trust Indenture Act
and this Indenture. Notwithstanding the foregoing, no provision of this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if
it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it. 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 602.
Notice of Defaults.
If a default occurs hereunder with respect to Securities of any series, the Trustee shall give
the Holders of Securities of such series notice of such default as and to the extent provided by
the Trust Indenture Act;
provided, however,
that in the case of any default of the character
specified in Section 501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term default means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.
SECTION 603.
Certain Rights of Trustee.
Subject to the provisions of Section 601:
(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, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;
38
(b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;
(c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers Certificate;
(d) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance with such request or
direction;
(f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and
(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 with
due care by it hereunder.
SECTION 604.
Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except the Trustees certificates of
authentication, shall be taken as the statements of the Company, and the Trustee or any
Authenticating Agent assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. The
Trustee or any Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.
SECTION 605.
May Hold Securities.
The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company or the Guarantor, in its individual or any other capacity, may become the
owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal with the
Company and the Guarantor with the same rights it would have if it were not Trustee, Authenticating
Agent, Paying Agent, any Security Registrar or such other agent.
39
SECTION 606.
Money Held in Trust.
Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company or the Guarantor, as the case
may be.
SECTION 607.
Compensation and Reimbursement.
The Company and the Guarantor agree
(1) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);
(2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including
the costs and expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder.
SECTION 608.
Disqualification; Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.
SECTION 609.
Corporate Trust Required; Eligibility.
There shall at all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50,000,000 and its Corporate Trust Office in the Borough of Manhattan, The City of New York.
If such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published. If at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article.
40
SECTION 610.
Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 611.
(b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company and the Guarantor. If the instrument of acceptance by
a successor Trustee required by Section 611 shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may petition any court
of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities
of such series.
(c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee, the Company and the Guarantor.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 608 after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Security for at least six
months, or
(2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign
after written request therefor by the Company, the Guarantor or by any such Holder, or
(3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,
then, in any such case (i) the Company or the Guarantor by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 514, any Holder who has been a
bona fide Holder of a Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the removal of the Trustee
with respect to all Securities and the appointment of a successor Trustee or Trustees.
(e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees
with respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the Securities of any series shall be appointed by act of the Holders of a
majority in principal amount of the Outstanding Securities of such series delivered
41
to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith
upon its acceptance of such appointment in accordance with the applicable requirements of Section
611, become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to
the Securities of any series shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 611, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.
(f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.
SECTION 611.
Acceptance of Appointment by Successor.
(a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.
(b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the Guarantor, the retiring Trustee and each such
successor Trustee with respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such appointment and
which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm
to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of
such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that
all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series as to which the retiring Trustee is not retiring shall continue to be vested
in the retiring Trustee, and (3) 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 Trustee shall be trustee
of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered
by any other such Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become
42
effective to the extent provided therein and each such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of
such successor Trustee relates; but, on request of the Company, the Guarantor or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.
(c) Upon request of any such successor Trustee, the Company and the Guarantor shall execute
any and all instruments for more fully and certainly vesting in and confirming to such successor
Trustee all such rights, powers and trusts referred to in paragraphs (a) and (b) of this Section,
as the case may be.
(d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.
SECTION 612.
Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.
SECTION 613.
Preferential Collection of Claims Against Company and Guarantor.
If and when the Trustee shall be or become a creditor of the Company or the Guarantor (or any
other obligor upon the Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Company or the Guarantor (or any such
other obligor).
SECTION 614.
Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustees certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
43
Company and shall at all times be a corporation organized and doing business under the laws of
the United States of America, any State thereof or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 except such combined capital surplus amount shall not be applicable to Deutsche Bank
Trust Company Americas, and subject to supervision or examination by Federal or State authority.
If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or
to the requirements of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of
this Section, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.
Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.
An Authenticating Agent may resign any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve, as their names
and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance
of its appointment hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions of this
Section.
The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 607.
If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustees certificate of
authentication, an alternative certificate of authentication in the following form:
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This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.
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DEUTSCHE BANK TRUST COMPANY A
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MERICAS,
as Trustee
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By
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Authorized Signatory
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ARTICLE SEVEN
HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701.
Company to Furnish Trustee Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the Trustee
(a) semi-annually, not later than 15 days after each Regular Record Date for each series of
Securities at the time Outstanding, a list, in such form as the Trustee may reasonably require, of
the names and addresses of the Holders as of such Regular Record Date (or a date to be determined
pursuant to Section 301 for Original Issue Discount Securities); 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 content as of a date not
more than 15 days prior to the time such list is furnished;
excluding
from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.
SECTION 702.
Preservation of Information; Communications to Holders.
(a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701
upon receipt of a new list so furnished.
(b) The rights of the Holders to communicate with other Holders with respect to their rights
under this Indenture or under the Securities, and the corresponding rights and privileges of the
Trustee, shall be as provided by the Trust Indenture Act.
(c) Every Holder of Securities, by receiving and holding the same, agrees with the Company,
the Guarantor and the Trustee that neither the Company, the Guarantor nor the Trustee nor any agent
of either of them shall be held accountable by reason of any disclosure of information as to names
and addresses of Holders made pursuant to the Trust Indenture Act.
45
(d) Every Holder of Securities shall be entitled to receive information required to be
communicated to them under applicable law (including the Law).
SECTION 703.
Reports by Trustee.
(a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.
(b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange upon which any Securities are listed, with the Commission and
with the Company. If any Securities are listed on any stock exchange after the initial issuance of
such Securities, the Company will so notify the Trustee at the time of such listing.
SECTION 704.
Reports by Company and the Guarantor.
The Company and the Guarantor shall file with the Trustee and the Commission, and transmit to
Holders, such information, documents and other reports, and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to
such Act;
provided
that any such information, documents or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee
within 15 days after the same is so required to be filed with the Commission. All required
information, documents and other reports referred to in this Section 704 shall be deemed filed with
the Trustee and transmitted to the Holders at the time such information, documents or other reports
are publicly filed with the Commission via the Commissions EDGAR filing system (or any successor
system).
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 801.
Company May Consolidate, Etc. Only on Certain Terms.
The Company shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, unless:
(1) either (x) the Company shall be the surviving Person or (y) the entity formed by
such consolidation or into which the Company is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the Company
substantially as an entirety shall be either the Guarantor or a corporation, partnership,
limited liability company or trust, wholly owned by the Guarantor and shall be organized and
validly existing under the laws of the United States of America, any State thereof, the
District of Columbia or any member country of the European Union and shall expressly assume,
by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of and any
premium and interest on all the Securities and the performance or observance of every
covenant of this Indenture on the part of the Company to be performed or observed;
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(2) immediately after giving effect to such transaction and treating any indebtedness
which becomes an obligation of the Company or a Subsidiary as a result of such transaction
as having been incurred by the Company or such Subsidiary at the time of such transaction,
no Event of Default, and no event which, after notice or lapse of time or both, would become
an Event of Default, shall have happened and be continuing; and
(3) the Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if
a supplemental indenture is required in connection with such transaction, such supplemental
indenture comply with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.
SECTION 802.
Successor Substituted.
Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901.
Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders, the Company and the Guarantor, in each case when
authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of
the following purposes:
(1) to evidence the succession of another Person to the Company or the Guarantor, as
the case may be, and the assumption by any such successor of the covenants of the Company or
the Guarantor herein and in the Securities, as the case may be; or
(2) to add to the covenants of the Company or the Guarantor for the benefit of the
Holders of all or any series of Securities (and if such covenants are to be for the benefit
of less than all series of Securities, stating that such covenants are expressly being
included solely for the benefit of such series) or to surrender any right or power herein
conferred upon the Company or the Guarantor; or
(3) to add any additional Events of Default; or
(4) to add or change any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the issuance of Securities in bearer form,
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registrable or not registrable as to principal, and with or without interest coupons,
or to permit or facilitate the issuance of Securities in uncertificated form; or
(5) to add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities,
provided
that any such addition, change or elimination
(i) shall neither (A) apply to any 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 Security with respect to such provision or (ii) shall
become effective only when there is no such Security Outstanding; or
(6) to secure the Securities or any Guarantee pursuant to the requirement of Section
1004 or otherwise; or
(7) to establish the form or terms of Securities of any series as permitted by Section
201 and 301; or
(8) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 611(b); or
(9) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions with respect
to matters or questions arising under this Indenture,
provided
that such action pursuant to
this clause (9) shall not adversely affect the interests of the Holders of Securities of any
series in any material respect.
SECTION 902.
Supplemental Indentures with Consent of Holders.
With the consent of the Holders of not less than the majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company, the Guarantor and the Trustee, the Company and the Guarantor, in
each case when authorized by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of modifying in any manner the
rights of the Holders of Securities of such series under this Indenture,
provided, however,
that no
such supplemental indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,
(1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any
Place or Payment where, or the coin or currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit
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for the enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date), or
(2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture, or
(3) modify any of the provisions of this Section, Section 513 or Section 1008, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby,
provided, however,
that this clause shall not be deemed to
require the consent of any Holder with respect to changes in the references to the Trustee
and concomitant changes in this Section and Section 1008, or the deletion of this proviso,
in accordance with the requirements of Sections 611(b) and 901(8), or
(4) release the Guarantor from its obligations in respect of the Guarantee of any
series of Securities.
A supplemental Indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.
SECTION 903.
Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which adversely affects the Trustees own rights, duties or
immunities under this Indenture or otherwise.
SECTION 904.
Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.
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SECTION 905.
Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.
SECTION 906.
References in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Guarantor shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company and the Guarantor, to any such supplemental
indenture may be prepared and executed by the Company and the Guarantor and authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.
ARTICLE TEN
COVENANTS
SECTION 1001.
Payment of Principal, Premium and Interest.
The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of and any premium and interest on the Securities of that
series in accordance with the terms of the Securities and this Indenture. The performance by the
Guarantor of the obligations of the Company under this Section 1001 shall also be deemed to
constitute performance thereof by the Company.
SECTION 1002.
Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.
The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations;
provided, however,
that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.
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SECTION 1003.
Money for Securities Payments to Be Held in Trust.
If the Company or the Guarantor shall at any time act as its own Paying Agent with respect to
any series of Securities, it will, on or before each due date of the principal of or any premium or
interest on any of the Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal and any premium and interest so
becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein
provided and will promptly notify the Trustee of its action or failure so to act.
Whenever the Company or the Guarantor shall have one or more Paying Agents for any series of
Securities, it will, prior to each due date of the principal of or any premium or interest on any
Securities of that series, deposit with a Paying Agent a sum sufficient to pay such amount, such
sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure to act.
The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will (i) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (ii) during the
continuance of any default by the Company or the Guarantor (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the Securities of that
series, and upon the written request of the Trustee, forthwith pay to the Trustee all sums held in
trust by such Paying Agent for payment in respect of the Securities of that series.
The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.
Any money deposited with the Trustee or any Paying Agent, or then held by the Company or the
Guarantor, in trust for the payment of the principal of or any premium or interest on any Security
of any series and remaining unclaimed for two years after such principal, premium or interest has
become due and payable shall be paid to the Company on Company Request, or (if then held by the
Company or the Guarantor) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company or the Guarantor for
payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company or the Guarantor as trustee thereof, shall thereupon cease;
provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a newspaper published
in the English language, customarily published on each Business Day and of general circulation in
the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid to the Company.
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SECTION 1004.
Limitation on Liens.
The Guarantor will not itself, and will not permit any Domestic Subsidiary to, incur, issue,
assume or guarantee any notes, bonds, debentures or other similar evidences of indebtedness for
money borrowed (notes, bonds, debentures or other similar evidences of indebtedness for money
borrowed being hereinafter in this Article called Debt), secured by pledge of, or mortgage or
other lien on, any Principal Domestic Manufacturing Property of the Guarantor or any Domestic
Subsidiary, or any shares of stock of any Domestic Subsidiary that owns a Principal Domestic
Manufacturing Property (pledges, mortgages and other liens being hereinafter in this Article called
Mortgage or Mortgages), without effectively providing that the Securities of each series then
Outstanding and/or any Guarantee of each series of Securities then outstanding, as the case may be,
(together with, if the Guarantor shall so determine, any other Debt of the Guarantor or such
Domestic Subsidiary then existing or thereafter created which is not subordinate to the Securities
of each series then Outstanding and any Guarantee thereof) shall be secured equally and ratably
with (or prior to) such secured Debt, so long as such secured Debt shall be so secured, unless,
after giving effect thereto, the aggregate amount of all such secured Debt plus all Attributable
Debt of the Guarantor and its Domestic Subsidiaries in respect of sale and leaseback transactions
(as defined in Section 1005) would not exceed 15% of Consolidated Net Tangible Assets;
provided,
however
, that this Section shall not apply to, and there shall be excluded from secured Debt in any
computation under this Section, Debt secured by:
(1) with respect to any series of Securities, Mortgages existing on the date of the
original issuance of the Securities of such series;
(2) Mortgages on property of, or on any shares of stock of, any corporation existing at
the time such corporation becomes a Domestic Subsidiary or at the time it is merged into or
consolidated with the Guarantor or a Domestic Subsidiary;
(3) Mortgages in favor of the Guarantor or any Domestic Subsidiary;
(4) Mortgages in favor of the United States of America, any State thereof, any foreign
country or any agency, department or other instrumentality thereof, to secure progress,
advance or other payments pursuant to any contract or provision of any statute;
(5) Mortgages on property or shares of stock existing at the time of acquisition
thereof (including acquisition through merger or consolidation) or to secure the payment of
all or any part of the purchase price or construction or improvement cost thereof or to
secure any Debt incurred prior to, at the time of, or within 12 months after the later of
the acquisition of such property or shares or the completion of any such construction or
improvement for the purpose of financing all or any part of the purchase price or
construction or improvement cost thereof; and
(6) any extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Mortgage referred to in the foregoing clauses
(1) to (5), inclusive;
provided
, that (i) such extension, renewal or replacement Mortgage
shall be limited to all or a part of the same property or shares of stock that
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secured the Mortgage extended, renewed or replaced (plus improvements and construction
on such property) and (ii) the principal amount of the Debt secured by such Mortgage at such
time is not increased.
SECTION 1005.
Limitation on Sales and Leasebacks
.
The Guarantor will not itself, and it will not permit any Domestic Subsidiary to, enter into
any arrangement with any bank, insurance company or other lender or investor (not including the
Guarantor or any Domestic Subsidiary) or to which any such lender or investor is a party, providing
for the leasing by the Guarantor or a Domestic Subsidiary for a period, including renewals, in
excess of three years of any Principal Domestic Manufacturing Property which has been or is to be
sold or transferred, more than 180 days after the completion of construction and commencement of
full operation thereof, by the Guarantor or any Domestic Subsidiary to such lender or investor or
to any person to whom funds have been or are to be advanced by such lender or investor on the
security of such Principal Domestic Manufacturing Property (herein referred to as a sale and
leaseback transaction) unless either:
(1) The Guarantor or such Domestic Subsidiary could create Debt secured by a Mortgage
pursuant to Section 1004 on the Principal Domestic Manufacturing Property to be leased back
in an amount equal to the Attributable Debt with respect to such sale and leaseback
transaction without equally and ratably securing the Securities of each series or any
Guarantee thereof, or
(2) The Guarantor within 180 days after the sale or transfer shall have been made by
the Guarantor or by a Domestic Subsidiary, applies an amount equal to the greater of (i) the
net proceeds of the sale of the Principal Domestic Manufacturing Property sold and leased
back pursuant to such arrangement or (ii) the fair market value of the Principal Domestic
Manufacturing Property so sold and leased back at the time of entering into such arrangement
(as set forth in an Officers Certificate) to either (or a combination of) the investment in
one or more other Principal Domestic Manufacturing Properties or the retirement of Funded
Debt of the Guarantor;
provided
, that the amount to be applied to either (or a combination
of) the investment in one or more other Principal Domestic Manufacturing Properties or the
retirement of Funded Debt of the Guarantor shall be reduced by (a) the principal amount of
any Securities delivered within 180 days after such sale to the Trustee for retirement and
cancellation, and (b) the principal amount of Funded Debt other than Securities, voluntarily
retired by the Guarantor within 180 days after such sale. Notwithstanding the foregoing, no
retirement referred to in this clause (2) may be effected by payment at maturity or pursuant
to any mandatory sinking fund payment or any mandatory prepayment provision.
SECTION 1006.
Defeasance of Certain Obligations.
If this Section 1006 is specified, as contemplated by Section 301, to be applicable to
Securities of any series, the Company and the Guarantor may omit to comply with any term, provision
or condition set forth in Sections 1004 and 1005, and Section 501(4) with respect to Sections 1004
and 1005 shall be deemed not to be an Event of Default, in each case with respect to the Securities
of that series,
provided
that the following conditions have been satisfied:
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(1) With reference to this Section 1006, the Company or the Guarantor has deposited or
caused to be deposited with the Trustee (or another trustee satisfying the requirements of
Section 609) irrevocably (irrespective of whether the conditions in subparagraphs (2), (3),
(4), (5), (6) and (7) below have been satisfied, but subject to the provisions of Section
402(c) and the last paragraph of Section 1003), as trust funds in trust, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of the
Securities of that series, (A) money in an amount, or (B) U.S. Government Obligations which
through the payment of interest and principal in respect thereof in accordance with their
terms will provide not later than the opening of business on the due date of any payment
referred to in clause (i) or (ii) of this subparagraph (1) money in an amount, or (C) a
combination thereof, sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge (i) the principal and any premium and each
installment of principal and any premium and interest on the Outstanding Securities of that
series on the Stated Maturity of such principal or installment of principal or interest and
(ii) any mandatory sinking fund payments or analogous payments applicable to Securities of
such series on the day on which such payments are due and payable in accordance with the
terms of this Indenture and of such Securities;
(2) Such deposit shall not cause the Trustee with respect to the Securities of that
series to have a conflicting interest for purposes of the Trust Indenture Act with respect
to the Securities of any series;
(3) Such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other material agreement or instrument to which the Company or
the Guarantor is a party or by which they are bound;
(4) No Event of Default or event which with the giving of notice or lapse of time, or
both, would become an Event of Default with respect to the Securities of that series shall
have occurred and be continuing on the date of such deposit and no Event of Default under
Section 501(5) or Section 501(6) or event which with the giving of notice or lapse of time,
or both, would become an Event of Default under Section 501(5) or Section 501(6) shall have
occurred and be continuing on the 91st day after such date;
(5) The Company has delivered to the Trustee an Opinion of Counsel to the effect that
Holders and beneficial owners of the Securities of such series will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such deposit and defeasance
of certain obligations and will be subject to U.S. federal income tax on the same amount and
in the same manner and at the same times, as would have been the case if such deposit and
defeasance had not occurred; and
(6) The Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent therein provided for relating to the
defeasance contemplated by this Section have been complied with.
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SECTION 1007.
Statement by Officers as to Default.
The Company and the Guarantor will deliver to the Trustee, within 120 days after the end of
each fiscal year of the Guarantor ending after the date hereof, an Officers Certificate, stating
whether or not to the best knowledge of the signers thereof the Company and the Guarantor are in
default in the performance and observance of any of the terms, provisions and conditions of this
Indenture (without regard to any period of grace or requirement of notice provided hereunder) and,
if the Company and/or the Guarantor shall be in default, specifying all such defaults and the
nature and status thereof of which they may have knowledge.
SECTION 1008.
Waiver of Certain Covenants.
The Company and the Guarantor may omit in any particular instance to comply with any term,
provision or condition set forth in Sections 1004 to 1005, inclusive, with respect to the
Securities of any series if before the time for such compliance the Holders of at least the
majority in principal amount of the Outstanding Securities of such series shall, by Act of such
Holders, either waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company and the Guarantor and the duties of the Trustee in respect of any
such term, provision or condition shall remain in full force and effect.
SECTION 1009.
Business Activities.
The Company may not engage in any business activities other than those related to (a)
financing the business and operations of the Guarantor or any of its Subsidiaries, (b) the
establishment and maintenance of the Companys existence, and (c) any activities related or
ancillary thereto or necessary in connection therewith.
ARTICLE ELEVEN
GUARANTEE
SECTION 1101.
Guarantee.
(a) The Guarantor hereby irrevocably and unconditionally guarantees to each Holder and to the
Trustee and its successors and assigns (1) the full and punctual payment when due, whether at
Maturity, by acceleration, by redemption or otherwise, of all obligations of the Company under this
Indenture (including obligations to the Trustee) and the Securities, whether for payment of
principal of, or interest, premium, if any, on, the Securities and all other monetary obligations
of the Company under this Indenture and the Securities and (2) the full and punctual performance
within applicable grace periods of all other obligations of the Company whether for fees, expenses,
indemnification or otherwise under this Indenture and the Securities (all the foregoing being
hereinafter collectively called the Guaranteed Obligations). The Guarantor further agrees that
the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice or
further assent from the Guarantor, and that the Guarantor shall remain bound under this Article
notwithstanding any extension or renewal of any Guaranteed Obligation. The Guarantee shall be
substantially as set forth in Section 206 hereof.
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(b) The Guarantor waives presentation to, demand of payment from and protest to the Company of
any of the Guaranteed Obligations and also waives notice of protest for nonpayment. The Guarantor
waives notice of any default under the Securities or the Guaranteed Obligations. The obligations
of the Guarantor hereunder shall not be affected by (1) the failure of any Holder or the Trustee to
assert any claim or demand or to enforce any right or remedy against the Company or any other
Person under this Indenture, the Securities or any other agreement or otherwise; (2) any extension
or renewal of any thereof; (3) any rescission, waiver, amendment or modification of any of the
terms or provisions of this Indenture, the Securities or any other agreement; (4) the release of
any security held by any Holder or the Trustee for the Guaranteed Obligations or any of them; or
(5) the failure of any Holder or Trustee to exercise any right or remedy against any other
guarantor of the Guaranteed Obligations.
(c) The Guarantor hereby waives any right to which it may be entitled to have the assets of
the Company first be used and depleted as payment of the Companys or such Guarantors obligations
hereunder prior to any amounts being claimed from or paid by the Guarantor hereunder. The
Guarantor hereby waives any right to which it may be entitled to require that the Company be sued
prior to an action being initiated against the Guarantor.
(d) The Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment,
performance and compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder or the Trustee to any security held for payment of the
Guaranteed Obligations.
(e) Except as expressly set forth in this Indenture, the obligations of the Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not
be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by
reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of the Guarantor
herein shall not be discharged or impaired or otherwise affected by the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any remedy under this Indenture, the
Securities or any other agreement, by any waiver or modification of any thereof, by any default,
failure or delay, willful or otherwise, in the performance of the obligations, or by any other act
or thing or omission or delay to do any other act or thing which may or might in any manner or to
any extent vary the risk of the Guarantor or would otherwise operate as a discharge of the
Guarantor as a matter of law or equity.
(f) Except as expressly set forth in this Indenture, the Guarantor agrees that its Guarantee
shall remain in full force and effect until payment in full of all the Guaranteed Obligations. The
Guarantor further agrees that its Guarantee herein shall continue to be effective or be reinstated,
as the case may be, if at any time payment, or any part thereof, of principal of or interest on any
Guaranteed Obligation is rescinded or must otherwise be restored by any Holder or the Trustee upon
the bankruptcy or reorganization of the Company or otherwise.
(g) In furtherance of the foregoing and not in limitation of any other right which any Holder
or the Trustee has at law or in equity against the Guarantor by virtue hereof, upon the failure of
the Company to pay the principal of or interest on any Guaranteed Obligation when
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and as the same shall become due, whether at maturity, by acceleration, by redemption or
otherwise, or to perform or comply with any other Guaranteed Obligation, the Guarantor, hereby
promises to and shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be
paid, in cash, to the Holders or the Trustee an amount equal to the sum of (1) the unpaid principal
amount of such Guaranteed Obligations, (2) accrued and unpaid interest on such Guaranteed
Obligations (but only to the extent not prohibited by law) and (3) all other monetary obligations
of the Company to the Holders and the Trustee.
(h) The Guarantor agrees that it shall not be entitled to any right of subrogation in relation
to the Holders in respect of any Guaranteed Obligations guaranteed hereby until payment in full of
all Guaranteed Obligations. The Guarantor further agrees that, as between it, on the one hand, and
the Holders and the Trustee, on the other hand, (1) the maturity of the Guaranteed Obligations
guaranteed hereby may be accelerated as provided in this Indenture for the purposes of the
Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (2) in the event of
any declaration of acceleration of such Guaranteed Obligations as provided in this Indenture, the
Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by
the Guarantor for the purposes of this Section 1101.
(i) The Guarantor also agrees to pay any and all costs and expenses (including reasonable
attorneys fees and expenses) incurred by the Trustee or any Holder in enforcing any rights under
this Section 1101.
(j) Upon request of the Trustee, the Guarantor shall execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.
SECTION 1102.
Consolidation, Merger, Conveyance, Transfer or Lease
The Guarantor shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, unless:
(1) either (x) the Guarantor shall be the surviving Person or (y) the entity formed by
such consolidation or into which the Guarantor is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the Guarantor
substantially as an entirety shall be a corporation, partnership, limited liability company
or trust, shall be organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the Guaranteed Obligations and the performance or observance of every
covenant of this Indenture on the part of the Guarantor to be performed or observed;
(2) immediately after giving effect to such transaction and treating any indebtedness
which becomes an obligation of the Guarantor or a Subsidiary as a result of such transaction
as having been incurred by the Guarantor or such Subsidiary at the time
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of such transaction, no Event of Default, and no event which, after notice or lapse of
time or both, would become an Event of Default, shall have happened and be continuing; and
(3) the Guarantor has delivered to the Trustee an Officers Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and,
if a supplemental indenture is required in connection with such transaction, such
supplemental indenture comply with this Article and that all conditions precedent herein
provided for relating to such transaction have been complied with.
SECTION 1103.
Successor Substituted
Upon any consolidation of the Guarantor with, or merger of the Guarantor into, any other
Person or any conveyance, transfer or lease of the properties and assets of the Guarantor
substantially as an entirety in accordance with Section 1102, the successor Person formed by such
consolidation or into which the Guarantor is merged or to which such conveyance, transfer or lease
is made shall succeed to, and be substituted for, and may exercise every right and power of, the
Guarantor under this Indenture with the same effect as if such successor Person had been named as
the Guarantor herein, and thereafter, except in the case of a lease, the predecessor Person shall
be relieved of all obligations and covenants under this Indenture, the Securities and the
Guarantee.
SECTION 1104.
No Waiver.
Neither a failure nor a delay on the part of either the Trustee or the Holders in exercising
any right, power or privilege under this Article shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of any right, power or
privilege. The rights, remedies and benefits of the Trustee and the Holders herein expressly
specified are cumulative and not exclusive of any other rights, remedies or benefits which either
may have under this Article at law, in equity, by statute or otherwise.
SECTION 1105.
Modification.
No modification, amendment or waiver of any provision of this Article, nor the consent to any
departure by the Guarantor therefrom, shall in any event be effective unless the same shall be in
writing and signed by the Trustee, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice to or demand on the Guarantor in
any case shall entitle the Guarantor to any other or further notice or demand in the same, similar
or other circumstances.
SECTION 1106.
Non-Impairment.
The failure to endorse a Guarantee on any Security shall not affect or impair the validity
thereof.
SECTION 1107.
Limitation on Guarantor Liability.
The Guarantor, and by its acceptance of any series of Securities, each Holder, hereby confirms
that it is the intention of all such parties that the Guarantee of such Guarantor not
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constitute a fraudulent transfer or conveyance for purposes of any applicable Federal or State
bankruptcy, insolvency or reorganization or other similar law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and
the Guarantor hereby irrevocably agree that the obligations of the Guarantor will be limited to the
maximum amount which, after giving effect to all other contingent and fixed liabilities of the
Guarantor, will result in the obligations of the Guarantor under its Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law. Until such time as the
Securities of any series are paid in full, the Guarantor, with respect to such series of
Securities, hereby waives all rights of subrogation, whether arising by contract or operation of
law (including, without limitation, any such right arising under federal bankruptcy law) or
otherwise by reason of any payment by it pursuant to the provisions of this Article.
ARTICLE TWELVE
REDEMPTION OF SECURITIES
SECTION 1201.
Applicability of Article.
Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for Securities of any series) in accordance with this Article.
SECTION 1202.
Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or by action taken pursuant to a Board Resolution. In case of any redemption at the election of
the Company of less than all the Securities of any series, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date, of the principal amount of Securities of
such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In
the case of any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company
shall furnish the Trustee with an Officers Certificate evidencing compliance with such
restriction.
SECTION 1203.
Selection by Trustee of Securities to Be Redeemed
.
If less than all the Securities of any series are to be redeemed (unless all of the Securities
of such series and of a specified tenor are to be redeemed), the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the selection for redemption
of portions (equal to the minimum authorized denomination for Securities of that series or any
integral multiple in excess thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of that series. If
less than all of the Securities of such series and of a specified tenor are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days prior to the
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Redemption Date by the Trustee, from the Outstanding Securities of such series and specified
tenor not previously called for redemption in accordance with the preceding sentence.
The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.
SECTION 1204.
Notice of Redemption.
Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price,
(3) if less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption of any Securities, the principal
amounts) of the particular Securities to be redeemed,
(4) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date,
(5) the place or places where such Securities are to be surrendered for payment of the
Redemption Price, and
(6) that the redemption is for a sinking fund, if such is the case.
Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Companys request, by the Trustee in the name and at the expense of
the Company.
SECTION 1205.
Deposit of Redemption Price
.
Prior to any Redemption Date, the Company or the Guarantor shall deposit with the Trustee or
with a Paying Agent (or, if the Company or the Guarantor is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued
interest on, all the Securities which are to be redeemed on that date.
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SECTION 1206.
Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company and the Guarantor shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to bear interest. Upon
surrender of any such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price, together with accrued interest to the Redemption
Date;
provided, however,
that, unless otherwise specified as contemplated by Section 301,
installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor Securities, registered as
such at the close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.
SECTION 1207.
Securities Redeemed in Part.
Any Security which is to be redeemed only in party shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new
Security or Securities of the same series and of like tenor, 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 Security so surrendered.
ARTICLE THIRTEEN
SINKING FUNDS
SECTION 1301.
Applicability of Article.
The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 301 for Securities
of such series.
The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a mandatory sinking fund payment, and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an optional sinking fund payment. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 1302.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.
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SECTION 1302.
Satisfaction of Sinking Fund Payments with Securities
.
The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series;
provided
that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption through operation of
the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
SECTION 1303.
Redemption of Securities for Sinking Fund.
Not less than 60 days prior to each sinking fund payment date for any series of 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, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities of that series pursuant to Section 1302
and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 and not
more than 60 days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner specified in Section
1203 and cause notice of the redemption thereof to be given in the name of and at the expense of
the Company in the manner provided in Section 1204. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner stated in Sections
1206 and 1207.
ARTICLE FOURTEEN
MISCELLANEOUS
SECTION 1401.
Submission to Jurisdiction; Appointment of Agent.
(a) Each of the Company, the Guarantor and the Trustee agrees that any suit, action or
proceeding brought by the Company, the Guarantor or the Trustee in connection with or arising out
of this Indenture or the Securities of any series (or any Guarantee thereof) or the offer and sale
of the Securities (or any Guarantee thereof) shall be brought solely in the United States federal
courts located in the Borough of Manhattan or the courts of the State of New York located in the
Borough of Manhattan. EACH OF THE COMPANY, THE GUARANTOR AND THE TRUSTEE WAIVES ITS RIGHT TO TRIAL
BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS INDENTURE OR THE TRANSACTIONS
CONTEMPLATED HEREBY.
(b) The Company hereby irrevocably accepts and submits to the non-exclusive jurisdiction of
each of the aforesaid courts in personam, generally and unconditionally, for itself
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and in respect of its properties, assets and revenues, with respect to any suit, action or
proceeding in connection with or arising out of this Indenture.
(c) The Company hereby irrevocably designates, appoints and empowers CT Corporation System,
with offices at 111 Eighth Avenue, New York, New York 10011, as its designee, appointee and agent
to receive, accept and acknowledge for and on its behalf, and its properties, assets and revenues,
service for any and all legal process, summons, notices and documents which may be served in any
such action, suit or proceeding brought in the courts listed in Section 1401(a) which may be made
on such designee, appointee and agent in accordance with legal procedures prescribed for such
courts, with respect to any suit, action or proceeding in connection with or arising out of this
Indenture or the Securities or the offer and sale of the Securities. If for any reason such
designee, appointee and agent hereunder shall cease to be available to act as such, the Company
agrees to designate a new designee, appointee and agent in The City of New York on the terms and
for the purposes of this Section 1401 satisfactory to the Trustee. The Company further hereby
irrevocably consents and agrees to the service of any and all legal process, summons, notices and
documents out of any of the aforesaid courts in any such action, suit or proceeding by serving a
copy thereof upon the agent for service of process referred to in this Section 1401 (whether or not
the appointment of such agent shall for any reason prove to be ineffective or such agent shall
accept or acknowledge such service) or by mailing copies thereof by registered or certified
airmail, postage prepaid, to it at its address specified in or designated pursuant to this
Indenture. The Company agrees that the failure of any such designee, appointee and agent to give
any notice of such service to it shall not impair or affect in any way the validity of such service
or any judgment rendered in any action or proceeding based thereon. Nothing herein shall in any
way be deemed to limit the ability of the Holders of any Securities or the Trustee to serve any
such legal process, summons, notices and documents in any other manner permitted by applicable law
or to obtain jurisdiction over the undersigned or bring actions, suits or proceedings against the
undersigned in such other jurisdictions, and in such other manner, as may be permitted by
applicable law. The Company hereby irrevocably and unconditionally waives any objection which it
may now or hereafter have to the laying of venue of any of the aforesaid actions, suits or
proceedings arising out of or in connection with this Indenture brought in the courts listed in
Section 1401(a) and hereby further irrevocably and unconditionally waives and agrees not to plead
or claim in any such court that any such action, suit or proceeding brought in any such court has
been brought in an inconvenient forum.
(d) To the extent that the Company or any of its properties, assets or revenues may have or
may hereafter become entitled to, or have attributed to them, any right of immunity, on the grounds
of sovereignty or otherwise, from any legal action, suit or proceeding in connection with or
arising out of this Indenture or the Securities or the offer and sale of the Securities, from the
giving of any relief in any thereof, from setoff or counterclaim, from the jurisdiction of any
court, from service of process, from attachment upon or prior to judgment, from attachment in aid
of execution of judgment, or from execution of judgment, or other legal process or proceeding for
the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which
proceeding may at any time be commenced, with respect to its obligations, liabilities or any other
matter under or arising out of or in connection with this Indenture or the Securities, the Company
hereby irrevocably and unconditionally waives, and agrees for the
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benefit of the Trustee and any Holder from time to time of the Securities not to plead or
claim, any such immunity, and consent to such relief and enforcement.
(e) Each of the Company and the Guarantor agrees to indemnify and hold harmless the Trustee
and each Holder from time to time of Securities against any loss incurred by the Trustee or such
Holder as a result of any judgment or order being given or made for any amount due hereunder and
such judgment or order being expressed and paid in a currency (the Judgment Currency) other than
United States dollars and as a result of any variation as between (i) the rate of exchange at which
the United States dollar amount is converted into the Judgment Currency for the purpose of such
judgment or order, and (ii) the rate of exchange at which the Trustee or such Holder is able to
purchase United States dollars with the amount of Judgment Currency actually received by the
Trustee or such Holder. The foregoing indemnity shall constitute separate and independent
obligations of the Company and the Guarantor and shall continue in full force and effect
notwithstanding any such judgment or order as aforesaid. The term rate of exchange shall include
any premiums and costs of exchange payable in connection with the purchase of, or conversion into,
the relevant currency.
This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.
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PROCTER & GAMBLE INTERNATIONAL
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FUNDING SCA
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By:
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its general partner Procter & Gamble
International Finance Funding General
Management Sàrl
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/s/ Herwig Meskens
Name: Herwig Meskens
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Title: Manager
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THE PROCTER & GAMBLE COMPANY
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By
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/s/ Jon R. Moeller
Name: Jon R. Moeller
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Title: Chief Financial Officer
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DEUTSCHE BANK TRUST COMPANY
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AMERICAS, as Trustee
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By
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/s/ Richard L. Buckwalter
Name: Richard L. Buckwalter
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Title: Director
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By
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/s/ Annie V. Jaghatspanyan
Name: Annie V. Jaghatspanyan
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Title: Vice President
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