As filed with the Securities and
Exchange Commission on February 28, 2007
Registration
No. 333-
UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
Form S-3
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
ENTERTAINMENT PROPERTIES
TRUST
(Exact name of registrant as
specified in its charter)
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Maryland
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43-1790877
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification
No.)
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30 West Pershing Road,
Suite 201
Kansas City, Missouri
64108
(816) 472-1700
(Address, including zip code,
and telephone number, including area code, of registrants
principal executive offices)
Gregory K.
Silvers, Esq.
Vice President, Chief Operating
Officer, General Counsel and Secretary
Entertainment Properties
Trust
30 West Pershing Road,
Suite 201
Kansas City, Missouri
64108
(816) 472-1700
(Name, address, including zip
code, and telephone number, including area code, of agent for
service)
Copies to:
Craig L.
Evans, Esq.
Stinson Morrison Hecker
LLP
1201 Walnut,
Suite 2900
Kansas City, Missouri
64106
(816) 842-8600
Approximate date of commencement of proposed sale to the
public:
From time to time after this Registration
Statement becomes effective.
If the only securities being registered on this form are being
offered pursuant to dividend or interest reinvestment plans,
please check the following
box.
o
If any of the securities being registered on this form are to be
offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act of 1933, other than
securities offered only in connection with dividend or interest
reinvestment plans, check the following
box.
x
If this form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act,
please check the following box and list the Securities Act
registration statement number of the earlier effective
registration statement for the same
offering.
o
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.
o
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.
x
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.
o
CALCULATION OF REGISTRATION
FEE
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Proposed Maximum
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Proposed Maximum
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Title of Each Class of
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Amount to be
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Offering Price
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Aggregate
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Amount of
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Securities to be Registered(1)
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Registered
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per Unit
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Offering Price
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Registration Fee
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Debt securities
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(2)(3)(4)
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(2)(3)(4)
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(2)(3)(4)
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(2)(5)
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Preferred shares of beneficial
interest, $0.01 par value per share
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(2)(3)(4)
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(2)(3)(4)
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(2)(3)(4)
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(2)(5)
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Depositary shares representing
preferred shares of beneficial interest, $0.01 par value per
share
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(2)(3)
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(2)(3)
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(2)(3)
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(2)(5)
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Common shares of beneficial
interest, $0.01 par value per share
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(2)(3)(4)
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(2)(3)(4)
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(2)(3)(4)
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(2)(5)
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Warrants
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(2)(3)(4)
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(2)(3)(4)
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(2)(3)(4)
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(2)(5)
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Total
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(1)
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Any securities registered hereunder
may be sold separately or as units with other securities
registered hereunder.
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(2)
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Not applicable pursuant to
Form S-3
General Instruction II. E.
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(3)
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The registrant is registering an
indeterminate number and amount of securities of each identified
class as may from time to time be issued at indeterminate
prices. Separate consideration may or may not be received for
securities that are issuable on exercise, conversion or exchange
of other securities.
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(4)
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Pursuant to Rule 429 of the
Securities Act of 1933, the prospectus contained herein also
relates to $18,875,000 of debt securities, preferred shares,
common shares and warrants of the registrant contained in the
registration statement on
Form S-3/S-11
(File
No. 333-113626)
which amount is being carried forward in this Registration
Statement.
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(5)
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Deferred in reliance on Rule 456(b)
and Rule 457(r) under the Securities Act of 1933. Pursuant to
Rule 457(p) under the Securities Act of 1933, the filing
fee associated with the securities carried forward described in
Note (4) above and previously paid with the earlier
registration statement described in Note (4) above is
$2,381.96 and is applied to this Registration Statement.
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PROSPECTUS
Entertainment
Properties Trust
Debt Securities, Common Shares,
Preferred Shares,
Depositary Shares and Warrants
We may offer, from time to time, in one or more series or
classes and in amounts, at prices and on terms that we will
determine at the time of offering:
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debt securities which may be either senior debt securities or
subordinated debt securities;
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common shares of beneficial interest (common shares);
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preferred shares of beneficial interest (preferred
shares);
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depositary shares representing preferred shares of beneficial
interest (depositary shares); or
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warrants.
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These securities may be offered and sold separately or together
in units with other securities described in this prospectus. We
will provide the specific terms of these securities in
supplements to this prospectus or other offering materials. You
should read this prospectus, the applicable prospectus
supplement and other applicable offering materials carefully
before you invest.
The securities may be sold directly or through agents,
underwriters or dealers. If any agent, dealer or underwriter is
involved in selling the securities, its name, the applicable
purchase price, fee, commission or discount arrangement, and the
net proceeds to us from the sale of the securities will be
described in a prospectus supplement or other offering
materials. See Plan of Distribution.
Our common shares are listed on the New York Stock Exchange
under the symbol EPR. The last reported sale price
of our common shares on the New York Stock Exchange on
February 26, 2007 was $67.88 per share. Our Series A
Cumulative Redeemable Preferred Shares (Series A
Preferred Shares), Series B Cumulative Redeemable
Preferred Shares (Series B Preferred Shares)
and Series C Cumulative Convertible Preferred Shares
(Series C Preferred Shares) are listed on the
New York Stock Exchange under the symbols EPR PrA,
EPR PrB, and EPR PrC, respectively.
To preserve our qualification as a real estate investment trust
or REIT for U.S. federal income tax purposes
and for other purposes, we impose restrictions on ownership of
our common and preferred shares. See U.S. Federal
Income Tax Considerations and Description of Certain
Provisions of Maryland Law and EPRs Declaration of Trust
and Bylaws in this prospectus.
Investing in these securities involves certain risks. See the
Risk Factors section on page 3 of this
prospectus as well as the Risk Factors section of
our most recent annual report on
Form 10-K
and, to the extent applicable, our quarterly reports on
Form 10-Q.
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.
Our principal executive office is located at 30 W. Pershing
Road, Suite 201, Kansas City, Missouri 64108. The telephone
number for our principal executive office is
(816) 472-1700
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The date of
this prospectus is February 27, 2007.
ABOUT
THIS PROSPECTUS
This prospectus is part of a registration statement
(No. 333- )
that we filed with the Securities and Exchange Commission
(SEC) using a shelf registration
process. Under this shelf process, we may sell any combination
of the securities described in this prospectus from time to time
in one or more offerings.
This prospectus provides you with a general description of the
securities we may offer. Each time we offer and sell securities,
we will provide a prospectus supplement or other offering
materials that contain specific information about the terms of
the offering and the securities offered. The prospectus
supplement or other offering materials also may add to, update
or change information provided in this prospectus. You should
read this prospectus, the applicable prospectus supplement, the
other applicable offering materials and the other information
described in Available Information and
Incorporation of Certain Information by Reference
prior to investing.
As allowed by SEC rules, this prospectus does not contain all
the information you can find in the registration statement or
the exhibits to the registration statement. For further
information, we refer you to the registration statement,
including its exhibits and schedules. Statements contained in
this prospectus about the provisions or contents of any
contract, agreement or any other document referred to are not
necessarily complete. For each of these contracts, agreements or
documents filed as an exhibit to the registration statement, we
refer you to the actual exhibit for a more complete description
of the matters involved.
We have not authorized any dealer, salesman or other person to
give any information or to make any representation other than
those contained or incorporated by reference in this prospectus,
any applicable supplement to this prospectus or any other
applicable offering materials. You must not rely upon any
information or representation not contained or incorporated by
reference in this prospectus or any applicable supplement to
this prospectus or any other applicable offering materials as if
we had authorized it. This prospectus, any applicable prospectus
supplement and any other applicable offering materials do not
constitute an offer to sell or the solicitation of an offer to
buy any securities other than the registered securities to which
they relate. Nor do this prospectus, any accompanying prospectus
supplement or any other applicable offering materials constitute
an offer to sell or the solicitation of an offer to buy
securities in any jurisdiction to any person to whom it is
unlawful to make such offer or solicitation in such
jurisdiction. You should assume that the information appearing
in this prospectus, the accompanying prospectus supplement or
any other offering materials is accurate only as of the date on
their respective covers, and you should assume that the
information appearing in any document incorporated or deemed to
be incorporated by reference in this prospectus, any
accompanying prospectus supplement or any other applicable
offering materials is accurate only as of the date that document
was filed with the SEC. Our business, financial condition,
results of operations and prospects may have changed since those
dates.
Unless otherwise indicated or unless the context requires
otherwise, all references in this prospectus to we,
us, our, the Company or
EPR mean Entertainment Properties Trust. When we
refer to our Declaration of Trust we mean
Entertainment Properties Trusts Amended and Restated
Declaration of Trust, including the articles supplementary for
each series of preferred shares, as amended. When we refer to
our Bylaws we mean Entertainment Properties
Trusts Bylaws, as amended.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to incorporate by reference the
information we file with the SEC, which means we can disclose
important information to you by referring to those documents.
The information incorporated by reference is an important part
of this prospectus. Any statement contained in a document which
is incorporated by reference in this prospectus is automatically
updated and superseded if information contained in this
prospectus or information we later file with the SEC, modifies
or replaces that information.
The documents listed below have been filed by us under the
Securities Exchange Act of 1934, as amended (the Exchange
Act), (File
No. 1-13561)
and are incorporated by reference in this prospectus:
1. Our annual report on
Form 10-K
for the year ended December 31, 2006 filed on
February 28, 2007.
2. The description of our common shares included in our
registration statement on
Form 8-A
filed on November 4, 1997.
1
3. The description of our Series A Preferred Shares
included in our registration statement on
Form 8-A
filed on May 24, 2002.
4. The description of our Series B Preferred Shares
included in our registration statement on
Form 8-A
filed on January 12, 2005.
5. The description of our Series C Preferred Shares
included in our registration statement on
Form 8-A
filed on December 21, 2006.
In addition, all documents filed by us under Section 13(a),
13(c), 14 or 15(d) of the Exchange Act (excluding any
information that is deemed to have been furnished
and not filed with the SEC) after the date of this
prospectus and prior to the termination of the offering of the
securities covered by this prospectus are incorporated by
reference herein.
To obtain a free copy of any of the documents incorporated by
reference in this prospectus (other than exhibits, unless they
are specifically incorporated by reference in the documents)
please contact us at:
Investor Relations Department
Entertainment Properties Trust
30 W. Pershing Road, Suite 201
Kansas City, Missouri 64108
(816) 472-1700/FAX
(816) 472-5794
Email info@eprkc.com
Our SEC filings also are available on our Internet website at
www.eprkc.com. The information on our website is not, and you
must not consider the information to be, a part of this
prospectus.
CAUTIONARY
STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
With the exception of historical information, this prospectus
and our reports filed under the Exchange Act and incorporated by
reference in this prospectus and other offering materials and
documents deemed to be incorporated by reference herein or
therein may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as
amended (the Securities Act), and Section 21E
of the Exchange Act, such as those pertaining to our acquisition
or disposition of properties, our capital resources, future
expenditures for development projects and our results of
operations. Forward-looking statements involve numerous risks
and uncertainties and you should not rely on them as predictions
of actual events. There is no assurance the events or
circumstances reflected in the forward-looking statements will
occur. You can identify forward-looking statements by use of
words such as will be, intend,
continue, believe, may,
expect, hope, anticipate,
goal, forecast, or other comparable
terms, or by discussions of strategy, plans or intentions.
Forward-looking statements necessarily are dependent on
assumptions, data or methods that may be incorrect or imprecise.
Factors that could materially and adversely affect us include,
but are not limited to, the factors listed below:
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General business and economic conditions;
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Our ability to compete effectively;
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Defaults in the performance of lease terms by our tenants;
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Risk of our tenants filing for bankruptcy;
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Risk of our tenants not renewing their leases;
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The concentration of leases with our single largest tenant;
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Our continued qualification as a REIT;
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Risks relating to real estate ownership and development;
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Risks associated with use of leverage to acquire properties;
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Fluctuations in interest rates;
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Acts of terrorism;
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Risk of potential uninsured losses, including from natural
disasters;
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Risks involved in joint ventures;
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Risks in leasing multi-tenant properties;
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Risks of environmental liability;
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Our ability to raise capital;
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Our ability to pay distributions to our shareholders;
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Changes in laws and regulations, including tax laws and
regulations;
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Risks associated with changes in the Canadian exchange
rate; and
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Certain limits on change in control imposed under law and by our
Declaration of Trust and Bylaws.
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You should consider the risks described in the Risk
Factors section of our most recent annual report on
Form 10-K
and, to the extent applicable, our quarterly reports on
Form 10-Q,
in evaluating any forward-looking statements included or
incorporated by reference in this prospectus.
Given these uncertainties, you should not place undue reliance
on these forward-looking statements. We undertake no obligation
to publicly update or revise any forward-looking statements
included or incorporated by reference in this prospectus whether
as a result of new information, future events or otherwise. In
light of the factors referred to above, the future events
discussed or incorporated by reference in this prospectus may
not occur and actual results, performance or achievements could
differ materially from those anticipated or implied in the
forward-looking statements.
RISK
FACTORS
An investment in our securities involves certain risks. See the
Risk Factors section of our most recent annual
report on
Form 10-K
and, to the extent applicable, our quarterly reports on
Form 10-Q,
to read about factors you should consider before investing in
our securities.
THE
COMPANY
We are a self-administered real estate investment trust, or
REIT. As of February 26, 2007, our real estate
portfolio consists of:
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megaplex movie theatre properties (including joint venture
properties)
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entertainment retail centers (including joint venture properties)
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other specialty properties
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megaplex movie theatre properties, entertainment retail centers
and other specialty properties under development
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land parcels leased to restaurant and retail operators adjacent
to several of our theatre properties
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We generally lease our single-tenant properties to tenants on a
long-term
triple-net
basis that requires the tenant to assume the primary risks
involved in operating the property and to pay substantially all
expenses associated with the operation and maintenance of the
property. We also provide secured mortgage financing, as
appropriate, and we own multi-tenant properties which are
managed for us by third-party management companies.
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Beginning with our taxable year ended December 31, 1997, we
elected to be treated as a REIT for U.S. federal income tax
purposes. In order to maintain our status as a REIT, we must
comply with a number of requirements under federal income tax
law that are discussed in U.S. Federal Income Tax
Considerations.
Our executive offices are located at 30 W. Pershing Road,
Suite 201, Kansas City, Missouri 64108. Our telephone
number is
(816) 472-1700.
USE OF
PROCEEDS
Unless otherwise indicated in the applicable prospectus
supplement or other applicable offering materials, EPR intends
to use the net proceeds from any sale of common shares,
preferred shares, depositary shares, warrants or debt securities
under this prospectus for general business purposes, which may
include funding the acquisition, development or financing of
properties and repayment of debt. Further details relating to
the use of net proceeds from any specific offering will be
described in the applicable prospectus supplement or other
applicable offering materials.
RATIO OF
EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
SHARE DISTRIBUTIONS
The table below presents our ratio of earnings to fixed charges
by dividing earnings by fixed charges. For this purpose,
earnings is the sum of net income before equity in
earnings of unconsolidated subsidiaries, minority interest in
earnings and fixed charges (excluding capitalized interest) plus
distributed income from unconsolidated joint ventures.
Fixed charges consist of interest incurred on all
indebtedness. The ratios are based solely on historical
financial information and no pro forma adjustments have been
made.
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Years Ended December 31
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2006
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2005
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2004
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2003
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2002
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Ratio of earning to fixed charges
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2.7X
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2.6X
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2.3X
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2.2X
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2.2X
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The table below presents our ratio of earnings to combined fixed
charges and preferred share distributions by dividing earnings
by combined fixed charges and preferred share distributions. The
terms earnings and fixed charges have
the meanings assigned above. The ratios are based solely on
historical financial information and no pro forma adjustments
have been made.
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Years Ended December 31
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2006
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2005
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2004
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2003
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2002
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Ratio of earning to combined fixed
charges and preferred share distributions
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2.2X
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2.0X
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2.0X
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1.8X
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1.9X
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DESCRIPTION
OF DEBT SECURITIES
The following description, together with the additional
information we include in any applicable prospectus supplements
or other applicable offering materials, summarizes the material
terms and provisions of the debt securities that we may offer
under this prospectus. Because it is a summary, it does not
contain all information that may be important to you. If you
want more information, you should read the forms of indentures
we have filed as exhibits to the registration statement of which
this prospectus is a part. While the terms we have summarized
below will apply generally to any future debt securities we may
offer, we will describe the particular terms of any debt
securities that we may offer in more detail in the applicable
prospectus supplement or other offering materials. This summary
is also subject to and qualified by reference to the
descriptions of the particular terms of the securities described
in the applicable prospectus supplement or other applicable
offering materials and by the terms of the applicable final
indenture, applicable indenture supplement and debt security.
See Available Information.
General
The debt securities that we may issue will constitute
debentures, notes, bonds or other evidences of indebtedness of
the Company, to be issued in one or more series, which may
include senior debt securities, subordinated debt securities and
senior subordinated debt securities. The particular terms of any
series of debt securities we offer, including the extent to
which the general terms set forth below may be applicable to a
particular series, will be described in a prospectus supplement
relating to such series.
Debt securities that we may issue will be issued under one or
more separate indentures between us and a trustee to be named in
the related prospectus supplement. Senior debt securities will
be issued under a senior indenture and subordinated debt
securities will be issued under a subordinated indenture.
Together the senior indenture and the subordinated indenture are
called indentures. We have filed the forms of the
indentures as exhibits to the registration statement of which
this prospectus is a part. If we enter into any indenture
supplement, we will file a copy of that supplement with the SEC.
Unless otherwise indicated in the applicable prospectus
supplement, the debt securities will be our direct obligations.
The senior debt securities will rank equally with all of our
other senior and unsubordinated debt. The subordinated debt
securities will have a junior position to certain of our debt,
as described in the subordinated securities themselves or under
the supplemental indenture under which they are issued. Unless
we otherwise provide, we may reopen a series, without the
consent of the holders of the series, for issuances of
additional securities of that series.
We conduct a significant portion of our operations through our
subsidiaries. Therefore, holders of debt securities will have a
position junior to the prior claims of creditors of our
subsidiaries, including trade creditors, debtholders, secured
creditors, taxing authorities and guarantee holders, and any
preferred stockholders, except to the extent that we may
ourselves be a creditor with recognized and unsubordinated
claims against any subsidiary. Our ability to pay principal of
and premium, if any, and interest on any debt securities is, to
a large extent, dependent upon the payment to us of dividends,
interest or other charges by our subsidiaries.
The following description is a summary of the material
provisions of the forms of indentures. It does not restate the
indentures in their entireties. The indentures are governed by
the Trust Indenture Act of 1939. The terms of the debt
securities include those stated in the indentures and those made
part of the indentures by reference to the Trust Indenture Act.
We urge you to read the indentures because they, and not this
description, define your rights as a holder of the debt
securities. The following description is subject to and
qualified by reference to the terms of the final indentures and
any supplement thereto.
Information
You Will Find in the Prospectus Supplement or Other Offering
Materials
The indentures provide that we may issue debt securities from
time to time in one or more series and that we may denominate
the debt securities and make them payable in foreign currencies.
The indentures do not limit the aggregate principal amount of
debt securities that can be issued thereunder. The prospectus
supplement or other
5
offering materials for a series of debt securities will provide
information relating to the terms of the series of debt
securities being offered, which may include:
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the issue price of the debt securities of the series;
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the title and denominations of the debt securities of the series;
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the aggregate principal amount and any limit on the aggregate
principal amount of the debt securities of the series;
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the date or dates on which the principal and premium, if any,
with respect to the debt securities of the series are payable,
the amount or amounts of such payments or principal and premium,
if any, or the method of determination thereof;
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the amount payable upon maturity or upon acceleration;
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the rate or rates, which may be fixed or variable, at which the
debt securities of the series shall bear interest, if any, or
the method of calculating and/or resetting such rate or rates of
interest;
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any limits on ownership or transferability;
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the person to whom such interest will be payable, if other than
the person in whose name the debt securities are registered;
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the dates from which such interest shall accrue or the method by
which such dates shall be determined and the basis upon which
interest shall be calculated;
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the interest payment dates for the series of debt securities or
the method by which such dates will be determined, the terms of
any deferral of interest and any right of ours to extend the
interest payment periods;
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the place or places where the principal of and any premium and
interest on the series of debt securities will be payable, or
where the debt securities may be surrendered for conversion,
transfer or exchange;
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the terms and conditions, if any, upon which debt securities of
the series may be redeemed, in whole or in part, at our option
or otherwise;
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our obligation, if any, to redeem, purchase, or repay debt
securities of the series pursuant to any sinking fund or other
specified event or at the option of the holders and the terms of
any such redemption, purchase, or repayment;
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the terms, if any, upon which the debt securities of the series
may be convertible into or exchanged for other securities,
including, among other things, the initial conversion or
exchange price or rate and the conversion or exchange period;
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if the amount of principal, premium, if any, or interest with
respect to the debt securities of the series may be determined
with reference to an index, formula or other method, the manner
in which such amounts will be determined;
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if any payments on the debt securities of the series are to be
made in a currency or currencies (or by reference to an index or
formula) other than that in which such securities are
denominated or designated to be payable, the currency or
currencies (or index or formula) in which such payments are to
be made and the terms and conditions of such payments;
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any additional amounts payable in respect of taxes or government
charges or assessments;
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the extent to which the debt securities of the series, in whole
or any specified part, shall be defeasible pursuant to the
indenture and the terms and conditions of such defeasance;
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the currency or currencies in which payment of the principal and
premium, if any, and interest with respect to debt securities of
the series will be payable, or in which the debt securities of
the series shall be denominated, and the particular provisions
applicable thereto;
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whether the debt securities of the series will be secured or
guaranteed and, if so, on what terms;
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the covenants and events of default if different from or in
addition to those described in this prospectus;
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any addition to or change in the events of default with respect
to the debt securities of the series;
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the identity of any trustees, authenticating or paying agents,
transfer agents or registrars;
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the applicability of, and any addition to or change in, the
covenants currently set forth in the indenture;
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the subordination, if any, of the debt securities of the series
and terms of the subordination;
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whether our subsidiaries will provide guarantees of the debt
securities, and the terms of any subordination of such guarantee;
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provisions, if any, granting special rights to holders of the
debt securities upon the occurrence of such events as may be
specified;
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whether we will issue the debt securities in certificate or book
entry form;
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whether such debt securities shall be issuable in registered
form or bearer form, and if in registered form, the denomination
if other than in even multiples of $1,000, and any restrictions
applicable to the offering, sale or delivery of bearer debt
securities;
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identity of registrar and paying agent;
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the forms of the debt securities of the series;
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the terms, if any, which may be related to warrants, options, or
other rights to purchase securities issued by the Company in
connection with debt securities of the series;
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whether the debt securities will be governed by, and the extent
to which the debt securities will be governed by, any law other
than the laws of the State of New York;
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any other terms of the debt securities of the series which are
not prohibited by the indenture.
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Subordination
We will describe in the applicable prospectus supplement or
other offering materials the terms and conditions, if any, upon
which any series of subordinated securities is subordinated to
debt securities of another series or to our other indebtedness.
The terms will include a description of:
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the indebtedness ranking senior to the debt securities being
offered;
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the restrictions, if any, on payments to the holders of the debt
securities being offered while a default with respect to the
senior indebtedness is continuing;
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the restrictions, if any, on payments to the holders of the debt
securities being offered following an event of default; and
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provisions requiring holders of the debt securities being
offered to remit some payments to holders of senior indebtedness.
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Interest
Rate
Debt securities that bear interest will do so at a fixed rate or
a floating rate.
Original
Issue Discount
One or more series of debt securities offered by this prospectus
may be sold at a substantial discount below their stated
principal amount, bearing no interest or interest at a rate that
at the time of issuance is below market rates. The material
federal income tax consequences and special considerations
applicable to any series of debt securities generally will be
described in the applicable prospectus supplement or other
applicable offering materials.
7
Registered
Global Securities
We may issue registered debt securities of a series in the form
of one or more fully registered global securities. We will
deposit the registered global security with a depositary or with
a nominee for a depositary identified in the prospectus
supplement or other offering materials relating to such series.
The global security or global securities will represent and will
be in a denomination or aggregate denominations equal to the
portion of the aggregate principal amount of outstanding
registered debt securities of the series to be represented by
the registered global security or securities. Unless otherwise
specified in the applicable prospectus supplement or other
applicable offering materials, unless it is exchanged in whole
or in part for debt securities in definitive registered form, a
registered global security may not be transferred, except as a
whole in three cases:
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by the depositary for the registered global security to a
nominee of the depositary;
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by a nominee of the depositary to the depositary or another
nominee of the depositary; and
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by the depositary or any nominee to a successor of the
depositary or a nominee of the successor.
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The prospectus supplement or other offering materials relating
to a series of debt securities will describe the specific terms
of the depositary arrangement concerning any portion of that
series of debt securities to be represented by a registered
global security. We anticipate that the following provisions
will generally apply to all depositary arrangements.
Upon the issuance of a registered global security, the
depositary will credit, on its book-entry registration and
transfer system, the principal amounts of the debt securities
represented by the registered global security to the accounts of
persons that have accounts with the depositary. These persons
are referred to as participants. Any underwriters,
agents or debtors participating in the distribution of debt
securities represented by the registered global security will
designate the accounts to be credited. Only participants or
persons that hold interests through participants will be able to
beneficially own interests in a registered global security. The
depositary for a global security will maintain records of
beneficial ownership interests in a registered global security
for participants. Participants or persons that hold through
participants will maintain records of beneficial ownership
interests in a global security for persons other than
participants. These records will be the only means to transfer
beneficial ownership in a registered global security.
The laws of some states may require that specified purchasers of
securities take physical delivery of the securities in
definitive form. These laws may limit the ability of those
persons to own, transfer or pledge beneficial interests in
global securities.
So long as the depositary, or its nominee, is the registered
owner of a registered global security, the depositary or its
nominee will be considered the sole owner or holder of the debt
securities represented by the registered global security for all
purposes under the indenture. Except as set forth below, or in
the applicable supplemental indenture, owners of beneficial
interests in a registered global security:
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may not have the debt securities represented by a registered
global security registered in their names;
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will not receive or be entitled to receive physical delivery of
debt securities represented by a registered global security in
definitive form; and
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will not be considered the owners or holders of debt securities
represented by a registered global security under the indenture.
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Accordingly, each person owning a beneficial interest in a
registered global security must rely on the procedures of the
depositary for the registered global security and, if the person
is not a participant, on the procedures of the participant
through which the person owns its interests, to exercise any
rights of a holder under the indenture applicable to the
registered global security.
Payment
of Interest on and Principal of Registered Global
Securities
Unless otherwise specified in the applicable prospectus
supplement or other applicable offering materials, we will make
payments of principal, premium, if any, interest on and
additional amounts with respect to debt securities
8
represented by a registered global security registered in the
name of a depositary or its nominee to the depositary or its
nominee as the registered owner of the registered global
security. None of the Company, the trustee, or any paying agent
for debt securities represented by a registered global security
will have any responsibility or liability for
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any aspect of the records relating to, or payments made on
account of, beneficial ownership interests in such registered
global security;
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maintaining, supervising, or reviewing any records relating to
beneficial ownership interests;
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the payments to beneficial owners of the global security of
amounts paid to the depositary or its nominee; or
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any other matter relating to the actions and practices of the
depositary, its nominee or any of its participants.
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Generally, a depositary, upon receipt of any payment of
principal, premium, interest on or additional amounts with
respect to the global security, will immediately credit
participants accounts with payments in amounts
proportionate to their beneficial interests in the principal
amount of a registered global security as shown on the
depositarys records. Generally, payments by participants
to owners of beneficial interests in a registered global
security held through participants will be governed by standing
instructions and customary practices. This is currently the case
with the securities held for the accounts of customers
registered in street name. Such payments will be the
responsibility of participants.
Exchange
of Registered Global Securities
We may issue debt securities in definitive form in exchange for
the registered global security if both of the following occur:
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the depositary for any debt securities represented by a
registered global security is at any time unwilling or unable to
continue as depositary or ceases to be a clearing agency
registered under the Exchange Act; and
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we do not appoint a successor depositary within 90 days.
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In addition, we may, at any time, determine not to have any of
the debt securities of a series represented by one or more
registered global securities. In this event, we will issue debt
securities of that series in definitive form in exchange for all
of the registered global security or securities representing
those debt securities.
Covenants
by the Company
The indenture includes covenants by us, including among other
things that (i) we will make all payments of principal and
interest at the times and places required and (ii) we will
do or cause to be done all things necessary to preserve and keep
in full force our existence, subject to certain terms as
generally described under Mergers,
Consolidations and Certain Sales of Assets. The board
resolution or supplemental indenture establishing each series of
debt securities may contain additional covenants, including
covenants which could restrict our right to incur additional
indebtedness or liens and to take certain actions with respect
to our businesses and assets.
The indentures contain no covenant or provision which affords
debt holders protection in the event of a highly leveraged
transaction.
Events of
Default
Unless otherwise indicated in the applicable prospectus
supplement or other applicable offering materials, the following
will be events of default under the indenture with respect to
each series of debt securities issued under the indenture:
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failure to pay when due any interest on or additional amounts
with respect to any debt security of that series, continued for
30 days;
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failure to pay when due the principal of, or premium, if any,
on, any debt security of that series at its maturity;
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default in the payment of any sinking fund installment with
respect to any debt security of that series when due and
payable, continued for 30 days;
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failure to perform any other covenant or agreement of ours under
the indenture or the supplemental indenture with respect to that
series or the debt securities of that series, continued for
60 days after written notice to us by the trustee or
holders of at least 25% in aggregate principal amount of the
outstanding debt securities of a series to which the covenant or
agreement relates;
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certain events of bankruptcy, insolvency or similar proceedings
affecting us; and
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any other event of default specified in any supplemental
indenture under which such series of debt securities is issued.
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Except as to certain events of bankruptcy, insolvency or similar
proceedings affecting us and except as provided in the
applicable prospectus supplement, if any event of default shall
occur and be continuing with respect to any series of debt
securities under the indenture, either the trustee or the
holders of at least 25% in aggregate principal amount of
outstanding debt securities of such series may accelerate the
maturity of all debt securities of such series. Upon certain
events of bankruptcy, insolvency or similar proceedings
affecting us, the principal, premium, if any, and interest on
all debt securities of each series shall be immediately due and
payable. After any such acceleration, but before a judgment or
decree based on acceleration has been obtained by the trustee,
the holders of a majority in aggregate principal amount of each
affected series of debt securities may waive all defaults with
respect to such series and rescind and annul such acceleration
if all events of default, other than the non-payment of
accelerated principal, have been cured, waived or otherwise
remedied.
An event of default for a particular series of debt securities
does not necessarily constitute an event of default for any
other series of debt securities issued under an indenture. The
trustee may withhold notice to the holders of debt securities of
any default (except in the payment of principal, premium, if
any, interest on or any additional amounts with respect to such
debt securities) if it considers such withholding of notice to
be in the best interests of the holders.
No holder of any debt securities of any series will have any
right to institute any proceeding with respect to the applicable
indenture or for any remedy under such indenture, unless:
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an event of default with respect to such series shall have
occurred and be continuing and such holder shall have previously
given to the trustee written notice of such continuing event of
default;
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the holders of at least 25% in aggregate principal amount of the
outstanding debt securities of the relevant series shall have
made written request and offered reasonable indemnity to the
trustee to institute such proceeding as trustee;
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the trustee shall not have received from the holders of a
majority in aggregate principal amount of the outstanding debt
securities of such series a direction inconsistent with such
request; and
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the trustee shall have failed to institute such proceeding
within 60 days.
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However, such limitations do not apply to a suit instituted by a
holder of a debt security for enforcement of payment of the
principal of and premium, if any, interest on or any additional
amounts with respect to such debt security on or after the
respective due dates expressed in such debt security.
Supplemental
Indentures
We and the applicable trustee may, at any time and from time to
time, without prior notice to or consent of any holders of debt
securities, enter into one or more indentures supplemental to
the indentures, among other things to:
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add additional obligors on, guarantees to or secure any series
of debt securities;
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evidence the succession of another person pursuant to the
provisions of the indentures relating to consolidations, mergers
and sales of assets and the assumption by such successor of our
covenants and obligations or those of any guarantor;
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surrender any right or power conferred upon us under the
indentures or to add to our covenants for the protection of the
holders of all or any series of debt securities;
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add any additional events of default for the benefit of the
holders of any one or more series of debt securities;
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add to or change any of the provisions of the indentures to such
extent as shall be necessary to permit or facilitate the
issuance of debt securities in bearer form, or to permit or
facilitate the issuance of debt securities in global form or
uncertificated form;
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add to, change or eliminate any of the provisions of the
indentures in respect of one or more series of debt securities,
provided that any such addition, change or elimination
(a) shall neither (1) apply to any outstanding debt
security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such
provision, or (2) modify the rights of any holder of any
outstanding debt security with respect to such provision, or
(b) shall become effective when there is no debt security
then outstanding;
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correct or supplement any provision which may be defective or
inconsistent with any other provision or to cure any ambiguity
or omission or to correct any mistake;
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make any other provisions with respect to matters or questions
arising under the indentures, provided such action shall not
adversely affect the rights of any holder of debt securities of
any series;
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evidence and provide for the acceptance of appointment by a
successor or separate trustee; or
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establish the form or terms of debt securities of any series and
to make any change that does not adversely affect the rights of
any holder of debt securities.
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With the consent of the holders of at least a majority in
principal amount of debt securities of each series affected by
such supplemental indenture (voting as one class), we and the
trustee may enter into one or more supplemental indentures for
the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the indentures or
modifying in any manner the rights of the holders of debt
securities of each such series.
Notwithstanding our rights and the rights of the trustee to
enter into one or more supplemental indentures with the consent
of the holders of debt securities of the affected series as
described above, no such supplemental indenture shall, without
the consent of the holder of each outstanding debt security of
the affected series, among other things:
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change the maturity of the principal of or any installment of
principal of, or the date fixed for payment of interest on, any
additional amounts or any sinking fund payment with respect to,
any debt securities;
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reduce the principal amount of any debt securities or the rate
of interest on or any additional amounts with respect to any
debt securities;
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change the place of payment or the currency in which any debt
securities are payable;
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impair the right of the holders to institute a proceeding for
the enforcement of any right to payment on or after
maturity; or
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reduce the percentage in principal amount of any series of debt
securities whose holders must consent to an amendment or
supplemental indenture or any waiver provided in the indenture.
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Unless otherwise provided in a supplemental indenture with
respect to any series of debt securities, under the indenture,
the holders of at least a majority of the principal amount of
debt securities of each series may, on behalf of that series:
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waive compliance by the Company of certain restrictive covenants
of the indenture; and
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waive any past default under the indenture, except
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a default in the payment of principal of or any premium or
interest, or any additional amounts with respect to such series;
or
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a default under any provision of the indenture which itself
cannot be modified or amended without the consent of the holder
of each outstanding debt security affected.
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11
Satisfaction
and Discharge of the Indenture; Defeasance
Except to the extent set forth in a supplemental indenture with
respect to any series of debt securities, we, at our election,
may discharge the applicable indenture and such indenture shall
generally cease to be of any further effect with respect to that
series of debt securities if (i) we have delivered to the
trustee for cancellation all debt securities of that series or
(ii) all debt securities of that series not previously
delivered to the trustee for cancellation shall have become due
and payable, or are by their terms to become due and payable
within one year or are to be called for redemption within one
year, and we have deposited with the trustee the entire amount
sufficient to pay at maturity or upon redemption all such debt
securities.
In addition, to the extent set forth in a supplemental indenture
with respect to a series of debt securities, we may have a
legal defeasance option (pursuant to which we may
terminate, with respect to the debt securities of a particular
series, all of our obligations under such debt securities and
the indenture with respect to such debt securities) and a
covenant defeasance option (pursuant to which we may
terminate, with respect to the debt securities of a particular
series, our obligations with respect to such debt securities
under certain specified covenants contained in the indenture).
If we have and exercise a legal defeasance option with respect
to a series of debt securities, payment of such debt securities
may not be accelerated because of an event of default. If we
have and exercise a covenant defeasance option with respect to a
series of debt securities, payment of such debt securities may
not be accelerated because of an event of default related to the
specified covenants.
To the extent set forth in a supplemental indenture with respect
to a series of debt securities, we may exercise a legal
defeasance option or a covenant defeasance option with respect
to the debt securities of a series only if we irrevocably
deposit in trust with the trustee cash or U.S. government
obligations (for debt securities denominated in
U.S. dollars) or certain foreign government obligations
(for debt securities denominated in a currency other than
U.S. dollars) for the payment of principal, premium, if
any, and interest and any additional amounts with respect to
such debt securities to maturity or redemption, as the case may
be. In addition, to exercise either of the defeasance options,
we must comply with certain other conditions, including for debt
securities denominated in U.S. dollars the delivery to the
trustee of an opinion of counsel to the effect that the holders
of debt securities of such series will not recognize income,
gain or loss for federal income tax purposes as a result of such
defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have
been the case if such defeasance had not occurred (and, in the
case of legal defeasance only, such opinion of counsel must be
based on a ruling from the Internal Revenue Service or other
change in applicable federal income tax law).
The trustee will hold in trust the cash or government
obligations deposited with it as described above and will apply
the deposited cash and the proceeds from deposited government
obligations to the payment of principal, premium, if any, and
interest and any additional amounts with respect to the debt
securities of the defeased series.
Mergers,
Consolidations and Certain Sales of Assets
Except to the extent set forth in a supplemental indenture with
respect to any series of debt securities, we may not:
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consolidate with or merge into any other person or entity or
permit any other person or entity to consolidate with or merge
into us in a transaction in which we are not the surviving
entity, or
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transfer, lease or dispose of all or substantially all of our
assets to any other person or entity; unless in the case of both
preceding clauses:
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the resulting, surviving or transferee entity shall be a
corporation organized and existing under the laws of the United
States or any state thereof or the District of Columbia and such
resulting, surviving or transferee entity shall expressly
assume, by supplemental indenture, all of our obligations under
the debt securities and the applicable indenture;
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immediately after giving effect to such transaction, no default
or event of default would occur or be continuing; and
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we shall have delivered to the trustee an officers
certificate and an opinion of counsel, each stating that such
consolidation, merger or transfer and such supplemental
indenture (if any) comply with the applicable indenture.
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Governing
Law
The indentures and the debt securities will be governed by the
laws of the State of New York, except as may be provided as to
any series in a supplemental indenture.
Conversion
or Exchange Rights
Any debt securities that we may issue pursuant to this
prospectus may be convertible into or exchangeable for shares of
our equity or other securities. The terms and conditions of such
conversion or exchange will be set forth in the applicable
prospectus supplement or other offering materials. Such terms
may include, among others, the following:
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the conversion or exchange price;
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the conversion or exchange period;
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restrictions on conversion, including to maintain REIT status;
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provisions regarding our ability or that of the holder to
convert or exchange the debt securities;
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events requiring adjustment to the conversion or exchange
price; and
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provisions affecting conversion or exchange in the event of our
redemption of such debt securities.
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Concerning
the Trustee
The indentures provide that there may be more than one trustee
with respect to one or more series of debt securities but we
need not designate more than one trustee. If there are different
trustees for different series of debt securities, each trustee
will be a trustee of a trust under a supplemental indenture
separate and apart from the trust administered by any other
trustee under such indenture. Except as otherwise indicated in
this prospectus or any prospectus supplement, any action
permitted to be taken by a trustee may be taken by the trustee
only with respect to the one or more series of debt securities
for which it is the trustee under an indenture. Any trustee
under an indenture or a supplemental indenture may resign or be
removed with respect to one or more series of debt securities.
All payments of principal or, premium, if any, interest on and
any additional amounts with respect to, and all registration,
transfer, exchange authentication and delivery of, the debt
securities of a series will be effected with respect to such
series at an office designated by us.
The indentures contain limitations on the rights of any trustee,
should it become a creditor of the Company, to obtain payment of
claims in certain cases or to realize on certain property
received in respect of any such claim as security or otherwise.
If any trustee acquires an interest that conflicts with any
duties with respect to the debt securities, such trustee is
required to either resign or eliminate such conflicting interest
to the extent and in the manner provided by the applicable
indenture.
Notices
Notices to holders of debt securities will be given by mail to
the addresses of such holders as they appear in the security
register.
13
DESCRIPTION
OF SHARES OF BENEFICIAL INTEREST
The following description of our shares of beneficial
interest (shares) is only a summary and is subject
to, and qualified in its entirety by reference to, the provision
governing such shares contained in our Declaration of Trust and
Bylaws, copies of which we have previously filed with the SEC.
Because it is a summary, it does not contain all of the
information that may be important to you. See Available
Information for information about how to obtain copies of
the Declaration of Trust and Bylaws. This summary also is
subject to and qualified by reference to the descriptions of the
particular terms of the securities described in the applicable
prospectus supplement or other applicable offering materials.
Our Declaration of Trust authorizes us to issue up to 50,000,000
common shares, par value $0.01 per share, and 15,000,000
preferred shares, par value $0.01 per share, 2,300,000 of
which are designated as Series A Preferred Shares,
3,200,000 of which are designated as Series B Preferred
Shares, and 6,000,000 of which are designated as Series C
Preferred Shares, and authorizes our Board of Trustees to
determine, at any time and from time to time the number of
authorized shares of beneficial interest, as described below. As
of February 26, 2007, we had 26,458,875 common shares
issued and outstanding, 2,300,000 Series A Preferred Shares
issued and outstanding, 3,200,000 Series B Preferred Shares
issued and outstanding, and 5,400,000 Series C Preferred
Shares issued and outstanding. As of the date of this prospectus
no other class or series of preferred shares has been
established. For a summary of restrictions on ownership and
transfers of shares, see Description of Certain Provisions
of Maryland Law and EPRs Declaration of Trust and
Bylaws Restrictions on Ownership and Transfers of
Shares.
Our Declaration of Trust contains a provision permitting our
Board of Trustees, without any action by our shareholders, to
amend the Declaration of Trust at any time to increase or
decrease the aggregate number of shares or the number of shares
of any class that we have authority to issue. Our Declaration of
Trust further authorizes our Board of Trustees to cause us to
issue our authorized shares and to reclassify any unissued
shares into other classes or series. We believe that this
ability of our Board of Trustees will provide us with
flexibility in structuring possible future financings and
acquisitions and in meeting other business needs which might
arise. Although our Board of Trustees has no intention at the
present time of doing so, it could authorize us to issue a new
class or series that could, depending upon the terms of the
class or series, delay, defer or prevent a change of control of
EPR.
The transfer agent and registrar for our shares is UMB Bank, n.a.
Common
Shares
All of our common shares are entitled to the following, subject
to the preferential rights of any other class or series of
shares which may be issued and to the provisions of our
Declaration of Trust regarding the restriction of the ownership
of shares:
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to receive distributions on our shares if, as and when
authorized by our Board of Trustees and declared by us out of
assets legally available for distribution;
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upon our liquidation, dissolution, or winding up, to receive all
remaining assets available for distribution to common
shareholders after satisfaction of our liabilities and the
preferential rights of any preferred shares.
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Subject to the provisions of our Declaration of Trust on
restrictions on transfer, each outstanding common share entitles
the holder to one vote on all matters submitted to a vote of
shareholders, including the election of trustees. Holders of our
common shares do not have cumulative voting rights in the
election of trustees.
Holders of our common shares have no preference, conversion,
exchange, sinking fund, redemption or, except to the extent
expressly required by the law pertaining to Maryland real estate
investment trusts, appraisal rights. Shareholders have no
preemptive rights to subscribe for any of our securities.
For other information with respect to our common shares,
including effects that provisions in our Declaration of Trust
and Bylaws may have in delaying, deferring or preventing a
change in our control, see Description of Certain
Provisions of Maryland Law and EPRs Declaration of Trust
and Bylaws below.
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Preferred
Shares
General
Our Declaration of Trust authorizes our Board of Trustees to
determine the preferences, conversion or other rights, voting
powers, restrictions, limitations as to dividends or other
distributions, qualifications and terms and conditions of
redemption of our authorized and unissued preferred shares.
These may include:
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the distinctive designation of each series and the number of
shares that will constitute the series;
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the voting rights, if any, of shares of the series;
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the distribution rate on the shares of the series, any
restriction, limitation or condition upon the payment of the
distribution, whether distributions will be cumulative, and the
dates on which distributions accumulate and are payable;
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the prices at which, and the terms and conditions on which, the
shares of the series may be redeemed, if the shares are
redeemable;
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the purchase or sinking fund provisions, if any, for the
purchase or redemption of shares of the series;
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any preferential amount payable upon shares of the series upon
our liquidation or the distribution of our assets;
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if the shares are convertible, the price or rates of conversion
at which, and the terms and conditions on which, the shares of
the series may be converted into other securities; and
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whether the series can be exchanged, at our option, into debt
securities, and the terms and conditions of any permitted
exchange.
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The issuance of preferred shares, or the issuance of any rights
or warrants to purchase preferred shares, could discourage an
unsolicited acquisition proposal. In addition, the rights of
holders of common shares will be subject to, and may be
adversely affected by, the rights of holders of any preferred
shares that we may issue in the future.
The following describes some general terms and provisions of the
preferred shares to which a prospectus supplement or other
applicable offering materials may relate. The statements below
describing the preferred shares are in all respects subject to
and qualified in their entirety by reference to the applicable
provisions of our Declaration of Trust, including the articles
supplementary for the applicable series of preferred shares, and
our Bylaws.
The applicable prospectus supplement or other applicable
offering materials will describe the specific terms as to each
issuance of preferred shares, including:
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the description or designation of the preferred shares;
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the number of the preferred shares offered;
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the voting rights, if any, of the holders of the preferred
shares;
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the offering price of the preferred shares;
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whether distributions will be cumulative and, if so, the
distribution rate, when distributions will be paid, or the
method of determining the distribution rate if it is based on a
formula or not otherwise fixed;
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the date from which distributions on the preferred shares shall
accumulate;
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the provisions for any auctioning or remarketing, if any, of the
preferred shares;
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the provision, if any, for redemption or a sinking fund;
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the liquidation preference per share;
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any listing of the preferred shares on a securities exchange;
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whether the preferred shares will be convertible and, if so, the
security into which they are convertible and the terms and
conditions of conversion, including the conversion price or the
manner of determining it;
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whether interests in the preferred shares will be represented by
depositary shares as more fully described below under
Description of Depositary Shares;
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a discussion of material federal income tax considerations;
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the relative ranking and preferences of the preferred shares as
to distribution and liquidation rights;
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any limitations on issuance of any preferred shares ranking
senior to or on a parity with the series of preferred shares
being offered as to distribution and liquidation rights;
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any limitations on direct or beneficial ownership and
restrictions on transfer, in each case as may be appropriate to
preserve our status as a real estate investment trust or
otherwise; and
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any other specific preferences, conversion or other rights,
voting powers, restrictions, limitations as to dividends or
other distributions, qualifications and terms and conditions of
redemption of the preferred shares.
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As described under Description of Depositary Shares,
we may, at our option, elect to offer depositary shares
evidenced by depositary receipts. If we elect to do this, each
depositary receipt will represent a fractional interest in a
share of the particular series of the preferred shares issued
and deposited with a depositary. The applicable prospectus
supplement or other applicable offering materials will specify
that fractional interest.
Rank
Unless our Board of Trustees otherwise determines and we so
specify in the applicable prospectus supplement or other
applicable offering materials, we expect that the preferred
shares will, with respect to distribution rights and rights upon
liquidation or dissolution, rank senior to all of our common
shares.
Distributions
Holders of preferred shares of each series will be entitled to
receive dividends at the rates and on the dates shown in the
applicable prospectus supplement or other offering materials.
Even though the preferred shares may specify a fixed rate of
distribution, our Board of Trustees must authorize and declare
those distributions and they may be paid only out of assets
legally available for payment. We will pay each distribution to
holders of record as they appear on our share transfer books on
the record dates fixed by our Board of Trustees. In the case of
preferred shares represented by depositary receipts, the records
of the depositary referred to under Description of
Depositary Shares will determine the persons to whom
distributions are payable.
Distributions on any series of preferred shares may be
cumulative or noncumulative, as provided in the applicable
prospectus supplement or other offering materials. We refer to
each particular series, for ease of reference, as the applicable
series. Cumulative distributions will be cumulative from and
after the date shown in the applicable prospectus supplement or
other applicable offering materials. If our Board of Trustees
fails to authorize a distribution on any applicable series that
is noncumulative, the holders will have no right to receive, and
we will have no obligation to pay, a distribution in respect of
the applicable distribution period, whether or not distributions
on that series are declared payable in the future.
Unless otherwise provided in the applicable prospectus or other
applicable offering materials, if the applicable series is
entitled to a cumulative distribution, we may not declare, or
pay or set aside for payment, any full distributions on any
other series of preferred shares ranking, as to distributions,
on a parity with or junior to the applicable series, unless we
declare, and either pay or set aside for payment, full
cumulative distributions on the applicable series for all past
distribution periods and the then current distribution period.
If the applicable series does not have a cumulative
distribution, we must declare, and pay or set aside for payment,
full distributions for the then current distribution period only
unless otherwise provided in the applicable prospectus
supplement or other applicable offering materials. Unless
otherwise provided in the applicable prospectus or other
applicable offering materials, when distributions are not paid,
or set aside for payment, in full upon any applicable series and
the shares
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of any other series ranking on a parity as to distributions with
the applicable series, we must declare, and pay or set aside for
payment, all distributions upon the applicable series and any
other parity series proportionately, in accordance with accrued
and unpaid distributions of the several series. Unless otherwise
provided in the applicable prospectus supplement or other
applicable offering materials, for these purposes, accrued and
unpaid distributions do not include unpaid distribution periods
on noncumulative preferred shares. No interest will be payable
in respect of any distribution payment that may be in arrears
unless otherwise provided in the applicable prospectus or other
applicable offering materials.
Unless otherwise provided in the applicable prospectus
supplement or other applicable offering materials, except as
provided in the immediately preceding paragraph, unless we
declare, and pay or set aside for payment, full cumulative
distributions, including for the then current period, on any
cumulative applicable series, we may not declare, or pay or set
aside for payment, any distributions upon common shares or any
other equity securities ranking junior to or on a parity with
the applicable series as to distributions or upon liquidation.
The foregoing restriction does not apply to distributions paid
in common shares or other equity securities ranking junior to
the applicable series as to distributions and upon liquidation,
unless otherwise provided in the applicable prospectus
supplement or other applicable offering materials. Unless
otherwise provided in the applicable prospectus supplement or
other applicable offering materials, if the applicable series is
noncumulative, we need only declare, and pay or set aside for
payment, the distribution for the then current period, before
declaring distributions on common shares or junior or parity
securities. In addition, under the circumstances that we could
not declare a distribution, we may not redeem, purchase or
otherwise acquire for any consideration any common shares or
other parity or junior equity securities, except upon conversion
into or exchange for common shares or other junior equity
securities, unless otherwise provided in the applicable
prospectus supplement or other applicable offering materials. We
may, however, make purchases and redemptions otherwise
prohibited pursuant to certain redemptions or pro rata offers to
purchase the outstanding shares of the applicable series and any
other parity series of preferred shares, unless otherwise
provided in the applicable prospectus supplement or other
applicable offering materials.
We will credit any distribution payment made on an applicable
series first against the earliest accrued but unpaid
distribution due with respect to the series.
Redemption
We may have the right or may be required to redeem one or more
series of preferred shares, as a whole or in part, in each case
upon the terms, if any, and at the times and at the redemption
prices shown in the applicable prospectus supplement or other
applicable offering materials.
If a series of preferred shares is subject to mandatory
redemption, we will specify in the applicable prospectus
supplement or other applicable offering materials the number of
shares we are required to redeem, when those redemptions start,
the redemption price, and any other terms and conditions
affecting the redemption. The redemption price will include all
accrued and unpaid distributions, except in the case of
noncumulative preferred shares. The redemption price may be
payable in cash or other property, as specified in the
applicable prospectus supplement or other applicable offering
materials. If the redemption price for preferred shares of any
series is payable only from the net proceeds of our issuance of
shares of beneficial interest, the terms of the preferred shares
may provide that, if no shares of beneficial interest shall have
been issued or to the extent the net proceeds from any issuance
are insufficient to pay in full the aggregate redemption price
then due, the preferred shares will automatically and
mandatorily be converted into shares of beneficial interest
pursuant to conversion provisions specified in the applicable
prospectus supplement or other applicable offering materials.
Liquidation
Preference
The applicable prospectus supplement or other applicable
offering materials will show the liquidation preference of the
applicable series. Upon our voluntary or involuntary
liquidation, before any distribution may be made to the holders
of our common shares or any other shares of beneficial interest
ranking junior in the distribution of assets upon any
liquidation to the applicable series, the holders of that series
will be entitled to receive, out of our assets legally available
for distribution to shareholders, liquidating distributions in
the amount of the liquidation preference, plus an amount equal
to all distributions accrued and unpaid. In the case of a
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noncumulative applicable series, accrued and unpaid
distributions include only the then current distribution period.
After payment of the full amount of the liquidating
distributions to which they are entitled, the holders of
preferred shares will have no right or claim to any of our
remaining assets. If liquidating distributions shall have been
made in full to all holders of preferred shares, our remaining
assets will be distributed among the holders of any other shares
of beneficial interest ranking junior to the preferred shares
upon liquidation, according to their rights and preferences and
in each case according to their number of shares.
If, upon any voluntary or involuntary liquidation, our available
assets are insufficient to pay the amount of the liquidating
distributions on all outstanding shares of that series and the
corresponding amounts payable on all shares of beneficial
interest ranking on a parity in the distribution of assets with
that series, then the holders of that series and all other
equally ranking shares of beneficial interest shall share
ratably in the distribution in proportion to the full
liquidating distributions to which they would otherwise be
entitled.
For these purposes, our consolidation or merger with or into any
other trust or corporation or other entity, or the sale, lease
or conveyance of all or substantially all of our property or
business, or a statutory share exchange, will not be a
liquidation unless otherwise provided in the applicable
prospectus supplement or other applicable offering materials.
Voting
Rights
Holders of our preferred shares will not have any voting rights,
except as shown below or as otherwise from time to time
specified in the applicable prospectus supplement or other
applicable offering materials.
Unless otherwise specified in the applicable prospectus
supplement or other applicable offering materials, holders of
our preferred shares (voting separately as a class with all
other series of preferred shares with similar voting rights)
will be entitled to elect two additional trustees to our Board
of Trustees at our next annual meeting of shareholders or at a
special meeting called for such purpose, if at any time
distributions on the applicable series are in arrears for six or
more quarterly periods. If the applicable series has a
cumulative distribution, the right to elect additional trustees
described in the preceding sentence shall remain in effect until
we declare and pay or set aside for payment all distributions
accrued and unpaid on the applicable series. In the event the
preferred shareholders are so entitled to elect trustees, the
entire Board of Trustees will be increased by two trustees.
Unless otherwise specified in the applicable prospectus
supplement or other applicable offering materials, so long as
any preferred shares are outstanding, we may not, without the
affirmative vote or consent of two-thirds of the shares of each
series of preferred shares (and other shares having like voting
rights) outstanding at that time:
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effect a share exchange, consolidation or merger into another
entity unless the series remains outstanding and its terms are
not materially and adversely changed or the series is converted
into or exchanged for preferred shares having identical terms
(except for changes that do not materially and adversely affect
the holders of such series);
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amend, alter or repeal the provisions of our Declaration of
Trust or Bylaws that materially and adversely affects the series
of preferred shares;
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increase the authorized amount of such series of preferred
shares or decrease the authorized amount of such series of
preferred shares below the number then issued and outstanding;
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authorize, create or increase the authorized or issued amount of
any class or series of shares ranking senior to that series of
preferred shares;
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reclassify any class or series of shares ranking senior to that
series of preferred shares or any security or obligation
convertible into any class of shares ranking senior to that
series of preferred shares; and
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create, authorize or increase the authorized or issued amount of
any security or obligation convertible into or evidencing the
right to purchase any shares ranking senior to that series of
preferred shares.
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The authorization, creation, increase or decrease of the
authorized amount of any class or series of shares ranking on
parity or junior to a series of preferred shares with respect to
distribution and liquidation rights, or the issuance of such
shares, will not be deemed to materially and adversely affect
that series.
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The foregoing voting provisions will not apply if, at or prior
to the time of such amendment, provisions are made for the
redemption of all of the outstanding shares of the series of
preferred with the right to vote.
As more fully described under Description of Depositary
Shares below, if we elect to issue depositary shares, each
representing a fraction of a share of a series, each depositary
will in effect be entitled to a fraction of a vote per
depositary share.
Conversion
Rights
We will describe in the applicable prospectus supplement or
other applicable offering materials the terms and conditions, if
any, upon which you may, or we may require you to, convert
shares of any series of preferred shares into common shares or
any other class or series of securities. The terms will include
the number of common shares or other securities into which the
preferred shares are convertible, the conversion price (or the
manner of determining it), the conversion period, provisions as
to whether conversion will be at the option of the holders of
the series or at our option, the events requiring an adjustment
of the conversion price, and provisions affecting conversion
upon the redemption of shares of the series.
Our
Exchange Rights
We will describe in the applicable prospectus supplement or
other applicable offering materials the terms and conditions, if
any, upon which we can require you to exchange shares of any
series of preferred shares for debt securities. If an exchange
is required, you will receive debt securities with a principal
amount equal to the liquidation preference of the applicable
series of preferred shares. The other terms and provisions of
the debt securities will not be materially less favorable to you
than those of the series of preferred shares being exchanged.
Series A
Cumulative Redeemable Preferred Shares
Our Series A Preferred Shares provide for quarterly
payments of cumulative dividends at the rate of 9.50% of the
$25 per share liquidation preference of the Series A
Preferred Shares, or a fixed rate of $2.375 per share each
year. Dividends not declared or paid in any quarter continue to
accumulate. On liquidation of the Company, holders of the
Series A Preferred Shares are entitled to a liquidation
preference of $25 per share plus all accumulated, accrued
and unpaid dividends before any amount is payable to the holders
of our common shares. The Series A Preferred Shares are not
redeemable prior to May 29, 2007, except in limited
circumstances relating to the preservation of our status as a
REIT. On or after that date, we may at our own option redeem the
Series A Preferred Shares in whole or in part by paying the
$25 per share liquidation preference plus all accumulated,
accrued and unpaid dividends. The Series A Preferred Shares
rank senior to our common shares and on a parity with our
Series B Preferred Shares, Series C Preferred Shares
and other parity securities we may issue in the future with
respect to the payment of dividends and amounts on liquidation,
dissolution and winding up. Holders of Series A Preferred
Shares generally have no voting rights, except that if dividends
on the Series A Preferred Shares have not been paid for six
or more quarterly periods (whether or not consecutive), holders
of the Series A Preferred Shares (together with other
shares having like voting rights) are entitled to elect two
additional trustees to the Board of Trustees to serve until all
unpaid dividends have been paid or declared and set aside for
payment. In addition, certain material and adverse changes to
the terms of the Series A Preferred Shares cannot be made
without the affirmative vote of at least two-thirds of the
outstanding Series A Preferred Shares and the holders of
all other shares on a parity with the Series A Preferred
Shares and having like voting rights.
Series B
Cumulative Redeemable Preferred Shares
Our Series B Preferred Shares provide for quarterly
payments of cumulative dividends at the rate of 7.75% of the
$25 per share liquidation preference of the Series B
Preferred Shares, or a fixed rate of $1.9375 per share each
year. Dividends not declared or paid in any quarter continue to
accumulate. On liquidation of the Company, holders of the
Series B Preferred Shares are entitled to a liquidation
preference of $25 per share plus all accumulated, accrued
and unpaid dividends before any amount is payable to the holders
of our common shares. The Series B Preferred Shares are not
redeemable prior to January 19, 2010, except in limited
circumstances relating to the preservation of our status as a
REIT. On or after that date, we may at our own option redeem the
Series B Preferred
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Shares in whole or in part by paying the $25 per share
liquidation preference plus all accumulated, accrued and unpaid
dividends. The Series B Preferred Shares rank senior to our
common shares and on a parity with our Series A Preferred
Shares, Series C Preferred Shares and other parity
securities we may issue in the future with respect to the
payment of dividends and amounts on liquidation, dissolution and
winding up. Holders of Series B Preferred Shares generally
have no voting rights, except that if dividends on the
Series B Preferred Shares have not been paid for six or
more quarterly periods (whether or not consecutive), holders of
the Series B Preferred Shares (together with other shares
having like voting rights) are entitled to elect two additional
trustees to the Board of Trustees to serve until all unpaid
dividends have been paid or declared and set aside for payment.
In addition, certain material and adverse changes to the terms
of the Series B Preferred Shares cannot be made without the
affirmative vote of at least two-thirds of the outstanding
Series B Preferred Shares and the holders of all other
shares on a parity with the Series B Preferred Shares and
having like voting rights.
Series C
Cumulative Convertible Preferred Shares
Our Series C Preferred Shares provide for quarterly
payments of cumulative dividends at the rate of 5.75% of the
$25 per share liquidation preference of the Series C
Preferred Shares, or a fixed rate of $1.4375 per share each
year. Dividends not declared or paid in any quarter continue to
accumulate. On liquidation of the Company, holders of the
Series C Preferred Shares are entitled to a liquidation
preference of $25 per share plus all accumulated, accrued
and unpaid dividends before any amount is payable to the holders
of our common shares. The Series C Preferred Shares are not
redeemable. Holders of Series C Preferred Shares may, at
their option, convert the Series C Preferred Shares into
our common shares subject to certain conditions at the then
applicable conversion rate. The conversion rate is subject to
adjustment upon the occurrence of specified events. On or after
January 15, 2012, we may, at our option, convert some or
all of the Series C Preferred Shares into common shares at
the then applicable conversion rate in certain circumstances
based on the market price of our common shares. Upon any
conversion of Series C Preferred Shares, we will have the
option to deliver either (1) a number of common shares
based upon the applicable conversion rate, or (2) an amount
of cash and common shares as specified in the articles
supplementary for such shares. If the holders of Series C
Preferred Shares elect to convert their Series C Preferred
Shares in connection with a fundamental change that occurs on or
prior to January 15, 2017, we will increase the conversion
rate for the Series C Preferred Shares surrendered for
conversion to the extent described in the articles supplementary
for the Series C Preferred Shares. In addition, upon a
fundamental change, when the actual applicable price of our
common shares, as determined in accordance with the article
supplementary, is less than $59.45 per share, the holders
of Series C Preferred Shares may require us to convert some
or all of their Series C Preferred Shares at a conversion
rate equal to the liquidation preference of the Series C
Preferred Shares being converted plus accrued and unpaid
distributions divided by 98% of the market price of our common
shares. We will have the right to repurchase for cash some or
all of the Series C Preferred Shares that would otherwise
be required to be converted. The Series C Preferred Shares
rank senior to our common shares and on a parity with our
Series A Preferred Shares, Series B Preferred Shares
and other parity securities we may issue in the future with
respect to the payment of dividends and amounts on liquidation,
dissolution and winding up. Holders of Series C Preferred
Shares generally have no voting rights, except that if dividends
on the Series C Preferred Shares have not been paid for six
or more quarterly periods (whether or not consecutive), holders
of the Series C Preferred Shares (together with shares
having like voting rights) are entitled to elect two additional
trustees to the Board of Trustees to serve until all unpaid
dividends have been paid or declared and set aside for payment.
In addition, certain material and adverse changes to the terms
of the Series C Preferred Shares cannot be made without the
affirmative vote of at least two-thirds of the outstanding
Series C Preferred Shares and the holders of all other
shares on a parity with the Series C Preferred Shares and
having like voting rights.
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DESCRIPTION
OF DEPOSITARY SHARES
The following is a summary of the material provisions of any
deposit agreement and of the depositary shares and depositary
receipts representing depositary shares. Because it is a
summary, it does not contain all of the information that may be
important to you. If you want more information, you should read
the form of deposit agreement and depositary receipts which we
will file as exhibits to the registration statement of which
this prospectus is part prior to an offering of depositary
shares. See Available Information. This summary also
is subject to and qualified by reference to the descriptions of
the particular terms of the securities described in the
applicable prospectus supplement or other applicable offering
materials and by the terms of the applicable final deposit
agreement and depositary receipts.
General
We may, at our option, elect to offer fractional interests in
shares of preferred shares, rather than shares of preferred
shares. If we exercise this option, we will appoint a depositary
to issue depositary receipts representing those fractional
interests. Preferred shares of each series represented by
depositary shares will be deposited under a separate deposit
agreement between us and the depositary. The prospectus
supplement or other offering materials relating to a series of
depositary shares will show the name and address of the
depositary. Subject to the terms of the applicable deposit
agreement, each owner of depositary shares will be entitled to
all of the distribution, voting, conversion, redemption,
liquidation and other rights and preferences of the preferred
shares represented by those depositary shares.
Depositary receipts issued pursuant to the applicable deposit
agreement will evidence ownership of depositary shares. Upon
surrender of depositary receipts at the office of the
depositary, and upon payment of the charges provided in and
subject to the terms of the applicable deposit agreement, a
holder of depositary shares will be entitled to receive the
preferred shares underlying the surrendered depositary receipts.
Distributions
A depositary will be required to distribute all cash
distributions received in respect of the applicable preferred
shares to the record holders of depositary receipts evidencing
the related depositary shares in proportion to the number of
depositary receipts owned by the holders. Fractions will be
rounded down to the nearest whole cent.
If the distribution is other than in cash, a depositary will be
required to distribute property received by it to the record
holders of depositary receipts entitled thereto, unless the
depositary determines that it is not feasible to make the
distribution. In that case, the depositary may, with our
approval, sell the property and distribute the net proceeds from
the sale to the holders.
Depositary shares that represent preferred shares converted or
exchanged will not be entitled to distributions. The deposit
agreement also will contain provisions relating to the manner in
which any subscription or similar rights we offer to holders of
the preferred shares will be made available to holders of
depositary shares. All distributions will be subject to
obligations of holders to file proofs, certificates and other
information and to pay certain charges and expenses to the
depositary.
Withdrawal
of Preferred Shares
You may receive the number of whole shares of your series of
preferred shares and any money or other property represented by
those depositary receipts after surrendering the depositary
receipts at the corporate trust office of the depositary.
Partial shares of preferred shares will not be issued. If the
depositary shares that you surrender exceed the number of
depositary shares that represent the number of whole preferred
shares you wish to withdraw, then the depositary will deliver to
you at the same time a new depositary receipt evidencing the
excess number of depositary shares. Once you have withdrawn your
preferred shares, you will not be entitled to re-deposit those
preferred shares under the deposit agreement in order to receive
depositary shares. We do not expect that there will be any
public trading market for withdrawn preferred shares.
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Redemption
of Depositary Shares
If we redeem a series of the preferred shares underlying the
depositary shares, the depositary will redeem those shares from
the proceeds received by it. The depositary will mail notice of
redemption not less than 30 days, and not more than
60 days, before the date fixed for redemption to the record
holders of the depositary receipts evidencing the depositary
shares we are redeeming at their addresses appearing in the
depositarys books. The redemption price per depositary
share will be equal to the applicable fraction of the redemption
price per share payable with respect to the series of the
preferred shares. The redemption date for depositary shares will
be the same as that of the preferred shares. If we are redeeming
less than all of the depositary shares, the depositary will
select the depositary shares we are redeeming by lot or pro rata
as the depositary may determine.
After the date fixed for redemption, the depositary shares
called for redemption no longer will be deemed outstanding. All
rights of the holders of the depositary shares and the related
depositary receipts will cease at that time, except for the
right to receive the money or other property to which the
holders of depositary shares were entitled upon redemption.
Receipt of the money or other property is subject to surrender
to the depositary of the depositary receipts evidencing the
redeemed depositary shares.
Voting of
the Preferred Shares
Upon receipt of notice of any meeting at which the holders of
the applicable preferred shares are entitled to vote, a
depositary will be required to mail the information contained in
the notice of meeting to the record holders of the applicable
depositary receipts. Each record holder of depositary receipts
on the record date will be entitled to instruct the depositary
as to the exercise of the voting rights pertaining to the amount
of preferred shares represented by the holders depositary
shares. The depositary will try, as practical, to vote the
shares as you instruct. We will agree to take all reasonable
action that the depositary deems necessary in order to enable it
to do so.
If you do not instruct the depositary how to vote your shares,
the depositary will abstain from voting those shares. The
depositary will not be responsible for any failure to carry out
an instruction to vote or for the effect of any such vote made
so long as the action or inaction of the depositary is in good
faith and is not the result of the depositarys gross
negligence or willful misconduct.
Liquidation
Preference
Upon our liquidation, whether voluntary or involuntary, each
holder of depositary shares will be entitled to the fraction of
the liquidation preference accorded each preferred share
represented by the depositary shares, as shown in the applicable
prospectus supplement or other applicable offering materials.
Conversion
or Exchange of Preferred Shares
The depositary shares will not themselves be convertible into or
exchangeable for common shares, preferred shares or any of our
other securities or property. Nevertheless, if so specified in
the applicable prospectus supplement or other applicable
offering materials, the depositary receipts may be surrendered
by holders to the applicable depositary with written
instructions to it to instruct us to cause conversion of the
preferred shares represented by the depositary shares.
Similarly, if so specified in the applicable prospectus
supplement or other applicable offering materials, we may
require you to surrender all of your depositary receipts to the
applicable depositary upon our requiring the conversion or
exchange of the preferred shares represented by the depositary
shares into our debt securities. We will agree that, upon
receipt of the instruction and any amounts payable in connection
with the conversion or exchange, we will cause the conversion or
exchange using the same procedures as those provided for
delivery of preferred shares to effect the conversion or
exchange. If you are converting only a part of the depositary
shares, the depositary will issue you a new depositary receipt
for any unconverted depositary shares.
Federal
Income Tax Consequences Relating to Depositary Shares
As an owner of depositary shares, you will be treated for
U.S. federal income tax purposes as if you were an owner of
the series of preferred shares represented by the depositary
shares. Therefore, you will be required to take
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into account, for U.S. federal income tax purposes, income
and deductions to which you would be entitled if you were a
holder of the underlying series of preferred shares. In addition:
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no gain or loss will be recognized for U.S. federal income
tax purposes upon the withdrawal of preferred shares in exchange
for depositary shares provided in the deposit agreement;
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the tax basis of each preferred share to you as an exchanging
owner of depositary shares will, upon exchange, be the same as
the aggregate tax basis of the depositary shares exchanged for
the preferred shares; and
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if you held the depositary shares as a capital asset at the time
of the exchange for preferred shares, the holding period for the
preferred shares will include the period during which you owned
the depositary shares.
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Amendment
and Termination of a Deposit Agreement
We and the applicable depositary will be permitted to amend the
provisions of the depositary receipts and the deposit agreement.
However, the holders of at least a majority of the applicable
depositary shares then outstanding must approve any amendment
that adds or increases fees or charges or prejudices an
important right of holders. Every holder of an outstanding
depositary receipt at the time any amendment becomes effective,
by continuing to hold the receipt, will be bound by the
applicable deposit agreement, as amended.
Any deposit agreement may be terminated by us upon not less than
30 days prior written notice to the applicable
depositary if (1) the termination is necessary to preserve
our status as a Maryland real estate investment trust or
(2) a majority of each series of preferred shares affected
by the termination consents to the termination. When either
event occurs, the depositary will be required to deliver or make
available to each holder of depositary receipts, upon surrender
of the depositary receipts held by the holder, the number of
whole or fractional shares of preferred shares as are
represented by the depositary shares evidenced by the depositary
receipts, together with any other property held by the
depositary with respect to the depositary receipts. In addition,
a deposit agreement will automatically terminate if:
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all depositary shares have been redeemed;
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there shall have been a final distribution in respect of the
related preferred shares in connection with our liquidation and
the distribution has been made to the holders of depositary
receipts evidencing the depositary shares underlying the
preferred shares; or
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each related preferred share shall have been converted or
exchanged into securities not represented by depositary shares.
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Charges
of a Depositary
We will pay all transfer and other taxes and governmental
charges arising solely from the existence of a deposit
agreement. In addition, we will pay the fees and expenses of a
depositary in connection with the initial deposit of the
preferred shares and any redemption of preferred shares.
However, holders of depositary receipts will pay any transfer or
other governmental charges and the fees and expenses of a
depositary for any duties the holders request to be performed
that are outside of those expressly provided for in the
applicable deposit agreement.
Resignation
and Removal of Depositary
A depositary may resign at any time by delivering to us notice
of its election to do so. In addition, we may at any time remove
a depositary. Any resignation or removal will take effect when
we appoint a successor depositary and it accepts the
appointment. We must appoint a successor depositary within
60 days after delivery of the notice of resignation or
removal.
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Miscellaneous
A depositary will be required to forward to holders of
depositary receipts any reports and communications from us that
it receives with respect to the related preferred shares.
Holders of depositary receipts will be able to inspect the
transfer books of the depositary and the list of holders of
depositary receipts upon reasonable notice.
Neither a depositary nor our company will be liable if it is
prevented from or delayed in performing its obligations under a
deposit agreement by law or any circumstances beyond its
control. Our obligations and those of the depositary under a
deposit agreement will be limited to performing duties in good
faith and without gross negligence or willful misconduct.
Neither we nor any depositary will be obligated to prosecute or
defend any legal proceeding in respect of any depositary
receipts, depositary shares or related preferred shares unless
satisfactory indemnity is furnished. We and each depositary will
be permitted to rely on written advice of counsel or
accountants, on information provided by persons presenting
preferred shares for deposit, by holders of depositary receipts,
or by other persons believed in good faith to be competent to
give the information, and on documents believed in good faith to
be genuine and signed by a proper party.
If a depositary receives conflicting claims, requests or
instructions from any holders of depositary receipts, on the one
hand, and us, on the other hand, the depositary shall be
entitled to act on the claims, requests or instructions received
from us.
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DESCRIPTION
OF WARRANTS
The following is a summary of the material terms of our
warrants and the warrant agreement. Because it is a summary, it
does not contain all of the information that may be important to
you. If you want more information, you should read the forms of
warrants and the warrant agreement which we will file as
exhibits to the registration statement of which this prospectus
is part. See Available Information. This summary
also is subject to and qualified by reference to the
descriptions of the particular terms of the securities described
in the applicable prospectus supplement or other applicable
offering materials and the terms of the applicable final warrant
agreement and warrants.
We may issue, together with any other securities being offered
or separately, warrants entitling the holder to purchase from or
sell to us, or to receive from us the cash value of the right to
purchase or sell, debt securities, preferred shares, depositary
shares or common shares. We and a warrant agent will enter a
warrant agreement pursuant to which the warrants will be issued.
The warrant agent will act solely as our agent in connection
with the warrants and will not assume any obligation or
relationship of agency or trust for or with any holders or
beneficial owners of warrants. We will file a copy of the forms
of warrants and the warrant agreement with the SEC at or before
the time of the offering of the applicable series of warrants.
In the case of each series of warrants, the applicable
prospectus supplement or other applicable offering materials
will describe the terms of the warrants being offered thereby.
These include the following, if applicable:
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the title of the warrants
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the offering price for the warrants
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the aggregate number of the warrants
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the designation and terms of the securities purchasable upon
exercise of the warrants
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if applicable, the designation and terms of the securities that
the warrants are issued with and the number of warrants issued
with each security
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if applicable, the date after which the warrants and any
securities issued with them will be separately transferable
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the number or amount of securities that may be purchased upon
exercise of a warrant and the price at which the securities may
be purchased upon exercise
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the dates on which the right to exercise the warrants will
commence and expire
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if applicable, the minimum or maximum amount of the warrants
that may be exercised at any one time
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whether the warrants represented by the warrant certificates or
securities that may be issued upon exercise of the warrants will
be issued in registered or bearer form
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information relating to book-entry procedures
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anti-dilution provisions of the warrants, if any
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redemption, repurchase or analogous provisions, if any,
applicable to the warrants
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any additional terms of the warrants, including terms,
procedures and limitations relating to the exchange and exercise
of the warrants.
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Warrants may be exercised at the appropriate office of the
warrant agent or any other office indicated in the applicable
prospectus supplement or other applicable offering materials.
Before the exercise of warrants, holders will not have any of
the rights of holders of the securities purchasable upon
exercise and will not be entitled to payments made to holders of
those securities.
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The warrant agreement may be amended or supplemented without the
consent of the holders of the warrants to which the amendment or
supplement applies to effect changes that are not inconsistent
with the provisions of the warrants and that do not adversely
affect the interests of the holders of the warrants. However,
any amendment that materially and adversely alters the rights of
the holders of warrants will not be effective unless the holders
of at least a majority of the applicable warrants then
outstanding approve the amendment. Every holder of an
outstanding warrant at the time any amendment becomes effective,
by continuing to hold the warrant, will be bound by the
applicable warrant agreement as amended thereby. The prospectus
supplement or other offering materials applicable to a
particular series of warrants may provide that certain
provisions of the warrants, including the securities for which
they may be exercisable, the exercise price, and the expiration
date, may not be altered without the consent of the holder of
each warrant.
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DESCRIPTION
OF CERTAIN PROVISIONS OF MARYLAND LAW AND EPRS
DECLARATION OF TRUST AND BYLAWS
We are organized as a Maryland real estate investment trust.
The following is a summary of our Declaration of Trust and
Bylaws and several provisions of Maryland law. Because it is a
summary, it does not contain all the information that may be
important to you. If you want more information, you should read
our entire Declaration of Trust and Bylaws, copies of which we
have previously filed with the SEC, or refer to the provisions
of Maryland law. See Available Information for
information about how to obtain copies of our Declaration of
Trust and Bylaws.
Trustees
Our Declaration of Trust and Bylaws provide that only our Board
of Trustees will establish the number of Trustees, provided
however that the term of office of a Trustee will not be
affected by any decrease in the number of Trustees. Any vacancy
on the Board of Trustees may be filled only by a majority of the
remaining Trustees, even if the remaining trustees do not
constitute a quorum, or by the sole Trustee. Any Trustee elected
to fill a vacancy will hold office until the next annual meeting
of shareholders and until a successor is elected and qualified.
Our Declaration of Trust divides our Board of Trustees into
three classes. Shareholders elect the Trustees of each class for
three-year terms upon the expiration of their current terms.
Shareholders elect only one class of Trustees each year.
We believe that classification of our Board of Trustees helps to
assure the continuity of our business strategies and policies.
There is no cumulative voting in the election of Trustees.
Consequently, at each annual meeting of shareholders, the
holders of a majority of our common shares are able to elect all
of the successors of the class of Trustees whose term expires at
that meeting. The classified Board of Trustees provision could
have the effect of making the replacement of our incumbent
Trustees more time consuming and difficult. At least two annual
meetings of shareholders are generally required to effect a
change in a majority of our Board of Trustees.
Our Declaration of Trust provides that, subject to the rights of
holders of one or more classes of preferred shares to elect or
remove one or more Trustees, a Trustee may be removed for cause
by the affirmative vote of the holders of at least two-thirds of
our common shares entitled to be cast in the election of
trustees. This provision precludes shareholders from removing
our incumbent Trustees unless cause, as defined in the
Declaration of Trust, exists, and they can obtain a substantial
affirmative vote of shares.
Advance
Notice of Trustee Nominations and New Business
Our Bylaws provide that nominations of persons for election to
our Board of Trustees and business to be transacted at
shareholder meetings may be properly brought pursuant to our
notice of the meeting, by our Board of Trustees, or by a
shareholder who (i) is a shareholder of record at the time
of giving the advance notice and at the time of the meeting,
(ii) is entitled to vote at the meeting and (iii) has
complied with the advance notice provisions set forth in our
Bylaws.
Under our Bylaws, a shareholders notice of nominations for
Trustee or business to be transacted at an annual meeting of
shareholders must be delivered to our secretary at our principal
office not later than the close of business on the 60th day
and not earlier than the close of business on the 90th day
prior to the first anniversary of the preceding years
annual meeting. In the event that the date of the annual meeting
is advanced by more than 30 days or delayed by more than
60 days from the anniversary date of the preceding
years annual meeting, a shareholders notice must be
delivered to us not earlier than the close of business on the
90th day prior to such annual meeting and not later than
the later of: (i) the 60th day prior to such annual
meeting, or (ii) the 10th day following the day on
which we first make a public announcement of the date of such
meeting. The public announcement of a postponement or of an
adjournment of such annual meeting to a later date or time will
not commence a new time period for the giving of a
shareholders notice. If the number of Trustees to be
elected to our Board of Trustees is increased and we make no
public announcement of such action at least 70 days prior
to the first anniversary of the preceding years annual
meeting, a shareholders notice also will be considered
timely, but only with respect to nominees for any new positions
created by such increase, if the notice is delivered to our
secretary at
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our principal office not later than the close of business on the
10th day immediately following the day on which such public
announcement is made.
For special meetings of shareholders, our Bylaws require a
shareholder who is nominating a person for election to our Board
of Trustees at a special meeting at which Trustees are to be
elected to give notice of such nomination to our secretary at
our principal office not earlier than the close of business on
the 90th day prior to such special meeting and not later
than the close of business on the later of: (1) the
60th day prior to such special meeting or (2) the
10th day following the day on which public announcement is
first made of the date of the special meeting and of the
nominees proposed by the Trustees to be elected at such meeting.
The public announcement of a postponement or adjournment of a
special meeting to a later date or time will not commence a new
time period for the giving of a shareholders notice as
described above.
Meetings
of Shareholders
Under our Bylaws, our annual meeting of shareholders will take
place during the second quarter of each year following delivery
of the annual report. Our Chairman, President, or one-third of
our Trustees may call a special meeting of the shareholders. Our
secretary also may call a special meeting of shareholders upon
the written request of holders of at least a majority of the
shares entitled to vote at the meeting.
Liability
and Indemnification of Trustees and Officers
The laws relating to Maryland real estate investment trusts (the
Maryland REIT Law) permit a real estate investment
trust to indemnify and advance expenses to its trustees,
officers, employees and agents to the same extent permitted by
the Maryland General Corporation Law (the MGCL) for
directors and officers of Maryland corporations. The MGCL
permits a corporation to indemnify its present and former
directors and officers against judgments, penalties, fines,
settlements and reasonable expenses incurred in connection with
any proceeding to which they may be made, or are threatened to
be made, a party by reason of their service in those capacities.
However, a Maryland corporation is not permitted to provide this
type of indemnification if the following is established:
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the act or omission of the director or officer was material to
the matter giving rise to the proceeding and was committed in
bad faith or was the result of active and deliberate dishonesty;
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the director or officer actually received an improper personal
benefit in money, property or services; or
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in the case of any criminal proceeding, the director or officer
had reasonable cause to believe that the act or omission was
unlawful.
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Additionally, a Maryland corporation may not indemnify a
director or officer for an adverse judgment in a suit by or in
the right of that corporation or for a judgment of liability on
the basis that personal benefit was improperly received, unless
in either case a court orders indemnification and then only for
expenses. The MGCL permits a corporation to advance reasonable
expenses to a director or officer upon the corporations
receipt of the following:
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a written affirmation by the director or officer of his good
faith belief that he has met the standard of conduct necessary
for indemnification by the corporation; and
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a written undertaking by him or on his behalf to repay the
amount paid or reimbursed by the corporation if it is ultimately
determined that this standard of conduct was not met.
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Our officers and trustees are and will be indemnified under our
Declaration of Trust against certain liabilities. Our
Declaration of Trust provides that we will, to the maximum
extent permitted by Maryland law in effect from time to time,
indemnify: (a) any individual who is a present or former
trustee or officer of EPR; or (b) any individual who, while
a trustee or officer of EPR and at the request of EPR, serves or
has served as a director, officer, shareholder, partner,
trustee, employee or agent of any real estate investment trust,
corporation, partnership, joint venture, trust, employee benefit
plan or any other enterprises against any claim or liability,
together with reasonable expenses actually incurred in advance
of a final disposition of a legal proceeding, to which such
person may become subject or which such person may incur by
reason of his or her status as such. We have the power, with the
approval of our Board of Trustees, to provide such
indemnification and advancement of expenses to a person who
served a
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predecessor of EPR in any of the capacities described in
(a) or (b) above and to any employee or agent of EPR
or its predecessors.
We have also entered into indemnification agreements with our
trustees and certain of our officers providing for procedures
for indemnification by us to the fullest extent permitted by law
and advancements by us of certain expenses and costs relating to
claims, suits or proceedings arising from their service to us.
We have obtained trustees and officers liability
insurance for the purpose of funding the provision of any such
indemnification.
The SEC has expressed the opinion that indemnification of
trustees, officers or persons otherwise controlling a company
for liabilities arising under the Securities Act is against
public policy and is therefore unenforceable.
Shareholder
Liability
Under Maryland law, a shareholder is not personally liable for
the obligations of a real estate investment trust solely as a
result of his or her status as a shareholder. Despite this, our
legal counsel has advised us that in some jurisdictions the
possibility exists that shareholders of a trust entity such as
ours may be held liable for acts or obligations of the trust.
While we intend to conduct our business in a manner designed to
minimize potential shareholder liability, we can give no
assurance that you can avoid liability in all instances in all
jurisdictions. Our Trustees have not provided in the past and do
not intend to provide insurance covering these risks to our
shareholders.
Actions
by Shareholders by Written Consent
Our Bylaws provide procedures governing actions by shareholders
by written consent. The Bylaws specify that any written consents
must be signed by shareholders entitled to cast a sufficient
number of votes to approve the matter, as required by statute,
our Declaration of Trust or our Bylaws, and such consent must be
filed with minutes of the proceedings of the shareholders.
Restrictions
on Ownership and Transfer of Shares
Our Declaration of Trust restricts the number of shares which
may be owned by shareholders. Generally, for us to qualify as a
REIT under the Code, not more than 50% in value of our
outstanding shares may be owned, directly or indirectly, by five
or fewer individuals (defined in the Code to include certain
entities and constructive ownership among specified family
members) at any time during the last half of a taxable year. The
shares also must be beneficially owned by 100 or more persons
during at least 335 days of a taxable year. In order to
maintain our qualification as a REIT, our Declaration of Trust
contains restrictions on the acquisition of shares intended to
ensure compliance with these requirements.
Our Declaration of Trust generally provides that any person (not
just individuals) holding more than 9.8% in number of shares or
value, of the outstanding shares of any class or series of our
common stock or preferred stock (the Ownership
Limit) may be subject to forfeiture of the shares
(including common shares and preferred shares) owned in excess
of the Ownership Limit. We refer to the shares in excess of the
Ownership Limit as Excess Shares. The Excess Shares
may be transferred to a trust for the benefit of one or more
charitable beneficiaries. The trustee of that trust would have
the right to vote the voting Excess Shares, and dividends on the
Excess Shares would be payable to the trustee for the benefit of
the charitable beneficiaries. Holders of Excess Shares would be
entitled to compensation for their Excess Shares, but that
compensation may be less than the price they paid for the Excess
Shares. Persons who hold Excess Shares or who intend to acquire
Excess Shares must provide written notice to us.
Our Ownership Limit may also act to deter an unfriendly takeover
of the Company.
Business
Combinations
The MGCL contains a provision which regulates business
combinations with interested shareholders. This provision
applies to Maryland real estate investment trusts like us. Under
the MGCL, business combinations such as
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mergers, consolidations, share exchanges and the like between a
Maryland real estate investment trust and an interested
shareholder or an affiliate of an interested shareholder are
prohibited for five years after the most recent date on which
the shareholder becomes an interested shareholder. Under the
MGCL the following persons are deemed to be interested
shareholders:
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any person who beneficially owns 10% or more of the voting power
of the trusts shares; or
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an affiliate or associate of the trust who, at any time within
the two-year period prior to the date in question, was the
beneficial owner of 10% or more of the voting power of the then
outstanding voting shares of the trust.
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After the five-year prohibition period has ended, a business
combination between a trust and an interested shareholder must
be recommended by the board of trustees of the trust and must
receive the following shareholder approvals:
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the affirmative vote of at least 80% of the votes entitled to be
cast; and
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the affirmative vote of at least two-thirds of the votes
entitled to be cast by holders of shares other than shares held
by the interested shareholder with whom or with whose affiliate
or associate the business combination is to be effected or held
by an affiliate or associate of the interested shareholder.
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The shareholder approvals discussed above are not required if
the trusts shareholders receive the minimum price set
forth in the MGCL for their shares and the consideration is
received in cash or in the same form as previously paid by the
interested shareholder for its shares.
The foregoing provisions of the MGCL do not apply, however, to
business combinations that are approved or exempted by the board
of trustees of the trust prior to the time that the interested
shareholder becomes an interested shareholder. A person is not
an interested shareholder under the MGCL if the board of
trustees approved in advance the transaction by which the person
otherwise would have become an interested shareholder. The board
of trustees may provide that its approval is subject to
compliance with any terms and conditions determined by the board
of trustees.
Control
Share Acquisitions
The MGCL contains a provision which regulates control share
acquisitions. This provision also applies to Maryland real
estate investment trusts. The MGCL provides that control shares
of a Maryland real estate investment trust acquired in a control
share acquisition have no voting rights except to the extent
approved by a vote of two-thirds of the votes entitled to be
cast on the matter. Shares owned by the acquiror, by officers or
by trustees who are employees of the trust are excluded from
shares entitled to vote on the matter. Control shares are voting
shares which, if aggregated with all other shares owned by the
acquiror, or in respect of which the acquiror is able to
exercise or direct the exercise of voting power (except solely
by virtue of a revocable proxy), would entitle the acquiror to
exercise voting power in electing trustees within one of the
following ranges of voting power:
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One-tenth or more but less than one-third;
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One-third or more but less than a majority; or
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a majority or more of all voting power.
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Control shares do not include shares which the acquiring person
is entitled to vote as a result of having previously obtained
shareholder approval. A control share acquisition means the
acquisition of control shares, subject to certain exceptions.
A person who has made or proposes to make a control share
acquisition may compel the board of trustees to call a special
meeting of shareholders to be held within 50 days of demand
to consider the voting rights of the shares. The right to compel
the calling of a special meeting is subject to the satisfaction
of certain conditions, including an undertaking to pay the
expenses of the meeting. If no request for a meeting is made,
the trust may itself present the question at any shareholders
meeting.
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If voting rights are not approved at the meeting or if the
acquiring person does not deliver an acquiring person statement
as required by the MGCL, then the trust may redeem for fair
value any or all of the control shares, except those for which
voting rights have previously been approved. The right of the
trust to redeem control shares is subject to conditions and
limitations. Fair value is determined, without regard to the
absence of voting rights for the control shares, as of the date
of the last control share acquisition by the acquiror or of any
meeting of shareholders at which the voting rights of the shares
are considered and not approved. If voting rights for control
shares are approved at a shareholders meeting and the acquiror
becomes entitled to vote a majority of the shares entitled to
vote, all other shareholders may exercise appraisal rights. The
fair value of the shares as determined for purposes of appraisal
rights may not be less than the highest price per share paid by
the acquiror in the control share acquisition.
The control share acquisition statute of the MGCL does not apply
to the following:
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shares acquired in a merger, consolidation or share exchange if
the trust is a party to the transaction; or
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acquisitions approved or exempted by a provision in the
declaration of trust or bylaws of the trust adopted before the
acquisition of shares.
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Anti-Takeover
Effect of Maryland Law and of Our Declaration of Trust and
Bylaws
The following provisions in our Declaration of Trust and Bylaws
and in Maryland law could delay or prevent a change in control
of EPR:
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the limitation on ownership and acquisition of more than 9.8% of
our shares;
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the classification of our Board of Trustees into classes and the
election of each class for three-year staggered terms;
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the requirement of cause and a two-thirds majority vote of
shareholders for removal of our Trustees;
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the fact that the number of our Trustees may be fixed only by
vote of our Board of Trustees and that a vacancy on our Board of
Trustees may be filled only by the affirmative vote of a
majority of our remaining Trustees;
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the limitations on our shareholders abilities to act
without a meeting;
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the advance notice requirements for shareholder nominations for
Trustees and other proposals;
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the business combination provisions of the MGCL;
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the control share acquisition provisions of the MGCL; and
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the power of our Board of Trustees to authorize and issue
additional shares, including additional classes of shares with
rights defined at the time of issuance, without shareholder
approval.
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U.S. FEDERAL
INCOME TAX CONSIDERATIONS
The following discussion summarizes the material United
States (U.S.) federal income tax considerations
regarding EPR and the acquisition, ownership and disposition of
our securities. If we offer debt securities, depositary shares
or warrants, information about any additional income tax
consequences to holders of those securities will be included in
the prospectus supplement or other applicable offering materials
under which those securities are offered.
This summary is based on current law, is for general
information only and is not tax advice. The tax treatment to
holders of our securities will vary depending on a holders
particular situation. This summary does not address all aspects
of federal income taxation that may be relevant to a holder of
securities in light of his or her personal investments or tax
circumstances. Moreover, this summary does not address tax
considerations applicable to certain types of holders subject to
special treatment under the federal income tax laws (including,
without limitation dealers or traders in securities, financial
institutions, insurance companies and shareholders that hold our
stock as part of a hedge, straddle, conversion transaction or
other arrangement) except to the extent discussed under the
subheadings Taxation of Tax-Exempt
Shareholders and Taxation of
Non-U.S. shareholders.
In addition, the summary below does not consider the effect of
any foreign, state, local or other tax laws that may be
applicable to holders of our shares.
The information in this section is based on the
U.S. Internal Revenue Code (the Code), current,
temporary and proposed Treasury Regulations promulgated under
the Code, the legislative history of the Code, current
administrative interpretations and practices of the Internal
Revenue Service (the IRS), and court decisions, all
as of the date of this prospectus. Future legislation, Treasury
Regulations, administrative interpretations and practices and
court decisions may adversely affect, perhaps retroactively, the
tax considerations described herein. We have not requested, and
do not plan to request, any rulings from the IRS concerning our
tax treatment and the statements in this prospectus are not
binding on the IRS or any court. Thus, we can provide no
assurance that these statements will not be challenged by the
IRS or sustained by a court if challenged by the IRS.
You are advised to consult your tax advisor regarding the
specific tax consequences to you of the acquisition, ownership
and sale of our securities, and of our election to be taxed as a
REIT, including the federal, state, local, foreign and other tax
consequences of such acquisition, ownership, sale and election
and of potential changes in applicable tax laws.
Taxation
of the Company
General
We elected to be taxed as a REIT under Sections 856 through
860 of the Code, commencing with our taxable year ended
December 31, 1997. We believe we have been organized and
have operated in a manner which allows us to qualify for
taxation as a REIT under the Code commencing with our taxable
year ended December 31, 1997. We intend to continue to
operate in this manner.
In the opinion of Stinson Morrison Hecker LLP, we have qualified
as a REIT under the Code for our taxable years ended
December 31, 1997 through December 31, 2006, we are
organized in conformity with the requirements for qualification
as a REIT, and our current and proposed method of operation will
enable us to meet the requirements for qualification and
taxation as a REIT under the Code for our taxable year ending
December 31, 2007 and for future taxable years. It must be
emphasized that this opinion is based upon certain assumptions
and representations as to factual matters made by us, including
representations made by us in a representation letter and
certificate provided by our officers and our factual
representations set forth herein and in registration statements
previously filed with the SEC. Any variation from the factual
statements set forth herein, in registration statements
previously filed with the SEC, or in the representation letter
and certificate we have provided to Stinson Morrison Hecker LLP
may affect the conclusions upon which its opinion is based.
The opinions of Stinson Morrison Hecker LLP are based on
existing law as contained in the Code and Treasury Regulations
promulgated thereunder, in effect on the date of this
prospectus, and the interpretations of such provisions and
Treasury Regulations by the IRS and court decisions, all of
which are subject to change either prospectively or
retroactively, and to possibly different interpretations.
Stinson Morrison Hecker LLP will have no
32
obligation to advise us or the holders of our securities of any
subsequent change in the matters stated, represented or assumed,
or of any subsequent change in the applicable law. You should be
aware that the opinions expressed are not binding upon the IRS
or any court. Accordingly, there can be no assurance that
contrary positions may not successfully be asserted by the IRS.
Moreover, our qualification and taxation as a REIT depends upon
our ability, through actual annual operating results and methods
of operation, to satisfy various qualification tests imposed
under the Code, such as distributions to shareholders, asset
composition levels, and diversity of stock ownership, the actual
results of which have not been and will not be reviewed by
Stinson Morrison Hecker LLP. In addition, our ability to qualify
as a REIT also depends in part upon the operating results,
organizational structure and entity classification for federal
income tax purposes of certain affiliated entities, including
affiliates that have made elections to be taxed as REITs, and
for whom the actual results of the various REIT qualification
tests have not been and will not be reviewed by Stinson Morrison
Hecker LLP.
Accordingly, no assurance can be given that the actual results
of our operations for any particular taxable year will satisfy
such requirements for qualification and taxation as a REIT.
If we qualify for taxation as a REIT, we generally will not be
subject to federal corporate income taxes on our taxable income
that is distributed currently to our shareholders. This
treatment substantially eliminates the double
taxation (once at the corporate level when earned and once
again at the shareholders level when distributed) that
generally results from investment in an ordinary Subchapter C
corporation. However, we will be subject to federal income tax
as follows:
First, we will be taxed at regular corporate rates on any
undistributed REIT taxable income, including undistributed net
capital gains.
Second, we may be subject to the alternative minimum
tax on our items of tax preference under certain
circumstances.
Third, if we have (a) net income from the sale or other
disposition of foreclosure property (defined
generally as property we acquired through foreclosure or after a
default on a loan secured by the property or a lease of the
property) which is held primarily for sale to customers in the
ordinary course of business or (b) other nonqualifying
income from foreclosure property, we will be subject to tax at
the highest U.S. federal corporate income tax rate on this
income.
Fourth, we will be subject to a 100% tax on any net income from
prohibited transactions (which are, in general, certain sales or
other dispositions of property (other than foreclosure property)
held primarily for sale to customers in the ordinary course of
business).
Fifth, if we fail to satisfy the 75% or 95% gross income tests
(as discussed below), but have maintained our qualification as a
REIT because we satisfied certain other requirements, we will be
subject to a 100% tax on an amount equal to (a) the gross
income attributable to the greater of the amounts by which we
fail the 75% or 95% gross income tests multiplied by (b) a
fraction intended to reflect our profitability.
Sixth, if we fail to distribute during each calendar year at
least the sum of (a) 85% of our REIT ordinary income for
the year, (b) 95% of our REIT capital gain net income for
the year (other than certain long-term capital gains for which
we make a capital gains designation (described below) and on
which we pay the tax), and (c) any undistributed taxable
income from prior periods, we would be subject to a 4% excise
tax on the excess of the required distribution over the amounts
actually distributed.
Seventh, if we acquire any asset from a corporation which is or
has been a Subchapter C corporation in a transaction in which
the basis of the asset in our hands is determined by reference
to the basis of the asset in the hands of the Subchapter C
corporation, and we subsequently recognize gain on the
disposition of the asset during the ten year period beginning on
the date on which we acquired the asset, then we will be subject
to tax at the highest regular corporate tax rate on the excess
of (a) the fair market value of the asset over (b) our
adjusted basis in the asset, in each case determined as of the
date we acquired the asset. The results described in this
paragraph with respect to the recognition of gain assume that we
will not make an election pursuant to existing Treasury
Regulations to recognize such gain at the time we acquire the
asset.
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Eighth, we will be required to pay a 100% tax on any
redetermined rents, redetermined
deductions or excess interest. In general,
redetermined rents are rents from real property that are
overstated as a result of services furnished to any of our
tenants by a taxable REIT subsidiary of ours.
Redetermined deductions and excess interest generally represent
amounts that are deducted by a taxable REIT subsidiary of ours
for amounts paid to us that are in excess of the amounts that
would have been deducted based on arms length negotiations.
Ninth, if we fail to satisfy any of the REIT asset tests, as
described below, by more than a de minimis amount, due to
reasonable cause and we nonetheless maintain our REIT
qualification because of specified cure provisions, we will be
required to pay a tax equal to the greater of $50,000 or the
highest corporate tax rate multiplied by the net income
generated by the nonqualifying assets that caused us to fail
such test.
Tenth, if we fail to satisfy any provision of the Code that
would result in our failure to qualify as a REIT (other than a
violation of the REIT gross income tests or certain violations
of the asset tests described below) and the violation is due to
reasonable cause, we may retain our REIT qualification but we
will be required to pay a penalty of $50,000 for each such
failure.
Requirements
for Qualification as a REIT
The Code defines a REIT as a corporation, trust or association:
(1) which is managed by one or more trustees or directors;
(2) the beneficial ownership of which is evidenced by
transferable shares or transferable certificates;
(3) which would be taxable as a domestic corporation, but
for Sections 856 through 859 of the Code;
(4) which is neither a financial institution or an
insurance company within the meaning of certain provisions of
the Code;
(5) the beneficial ownership of which is held by 100 or
more persons;
(6) not more than 50% in value of the outstanding shares of
which is owned, actually or constructively, by five or fewer
individuals (as defined in the Code to include certain entities)
during the last half of each taxable year;
(7) that meets certain other tests, described below,
regarding the nature of its income and assets and the amount of
its distributions; and
(8) that elects to be a REIT, or has made such election for
a previous year, and satisfies the applicable filing and
administrative requirements to maintain qualification as a REIT.
The Code provides that conditions (1) through (4),
inclusive, must be met during the entire taxable year and that
condition (5) must be met during at least 335 days of
a taxable year of 12 months, or during a proportionate part
of a taxable year of less than 12 months. Conditions
(5) and (6) do not apply until after the first taxable
year for which an election is made to be taxed as a REIT. For
purposes of condition (6), pension funds and certain other
tax-exempt entities are treated as individuals, subject to a
look-through exception with respect to pension
funds. A REIT also must report its income for federal income tax
purposes based on a calendar year accounting period.
We believe that we have satisfied each of the above conditions.
In addition, our Declaration of Trust provides for restrictions
regarding ownership and transfer of shares to prevent further
concentration of share ownership (as summarized below
Description of Certain Provisions of Maryland Law and
EPRs Declaration of Trust and Bylaws). These
restrictions are intended to assist us in continuing to satisfy
the share ownership requirements described in (5) and
(6) above. These restrictions, however, may not ensure that
we will, in all cases, be able to satisfy the share ownership
requirements described in (5) and (6) above. In
general, if we fail to satisfy these share ownership
requirements, our status as a REIT will terminate. However, if
we comply with the rules in applicable Treasury Regulations that
require us to ascertain the actual ownership of our shares, and
we do not know, or would not have known through the exercise of
reasonable diligence, that we failed to meet the requirement
described in condition (6) above, we will be treated as
having met this requirement.
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Ownership
of Interests in Partnerships, Limited Liability Companies and
Qualified REIT Subsidiaries and Taxable REIT
Subsidiaries.
In the case of a REIT which is a partner in a partnership, or a
member in a limited liability company treated as a partnership
for federal income tax purposes, Treasury Regulations provide
that the REIT will be deemed to own its proportionate share of
the assets of the partnership or limited liability company,
based on its interest in partnership capital, subject to special
rules relating to the 10% REIT asset test described below. Also,
the REIT will be deemed to be entitled to its proportionate
share of the income of that entity. The assets and items of
gross income of the partnership or limited liability company
retain the same character in the hands of the REIT for purposes
of Section 856 of the Code, including satisfying the gross
income tests and the asset tests. Thus, our proportionate share
of the assets and items of income of partnerships and limited
liability companies taxed as partnerships, in which we are,
directly or indirectly through other partnerships or limited
liability companies taxed as partnerships, a partner or member,
are treated as our assets and items of income for purposes of
applying the REIT qualification requirements described in this
prospectus (including the income and asset tests described
below).
We own 100% of the stock of a number of corporate subsidiaries
that are qualified REIT subsidiaries (each, a QRS)
and may acquire stock of one or more new subsidiaries. A
corporation qualifies as a QRS if 100% of its outstanding stock
is held by us, and we do not elect to treat the corporation as a
taxable REIT subsidiary, as described below. A QRS is not
treated as a separate corporation, and all assets, liabilities
and items of income, deduction and credit of a QRS are treated
as our assets, liabilities and items of income, deduction and
credit for all purposes of the Code, including the REIT
qualification tests. For this reason, references to our income
and assets include the income and assets of any QRS. A QRS is
not subject to federal income tax, and our ownership of the
voting stock of a QRS is ignored for purposes of determining our
compliance with the ownership limits described below under
Asset Tests.
A taxable REIT subsidiary (TRS) is a corporation
other than a REIT in which a REIT directly or indirectly holds
stock, and that has made a joint election with the REIT to be
treated as a TRS. A TRS also includes any corporation other than
a REIT with respect to which a TRS owns securities possessing
more than 35% of the total voting power or value of the
outstanding securities of such corporation. Other than some
activities relating to lodging and health care facilities, a TRS
generally may engage in any business, including the provision of
customary or non-customary services to tenants of its parent
REIT.
A taxable REIT subsidiary is subject to Federal income tax at
regular corporate rates (currently a maximum rate of 35%), and
also may be subject to state and local taxation. Any dividends
paid or deemed paid by any one of the Companys taxable
REIT subsidiaries will be taxable to the Companys
stockholders to the extent the dividends received from the
taxable REIT subsidiary are paid to the Companys
stockholders. The Company may own more than 10% of the stock of
a taxable REIT subsidiary without jeopardizing its qualification
as a REIT. However, as noted below, in order for the Company to
quality as a REIT, the securities of all of the taxable REIT
subsidiaries in which it has invested either directly or
indirectly may not represent more than 20% of the total value of
its assets. The Company expects that the aggregate value of all
of its interests in taxable REIT subsidiaries will represent
less than 20% of the total value or its assets; however, the
Company cannot assure that this will always be true. In
addition, a TRS may be prevented from deducting interest on debt
funded directly or indirectly by its parent REIT if certain
tests regarding the taxable REIT subsidiarys debt to
equity ratio and interest expense are not satisfied. A
REITs ownership of securities of a TRS will not be subject
to the 10% or 5% asset tests described below, and its operations
will be subject to the provisions described above.
Asset
Tests
At the close of each quarter of our taxable year, we must
satisfy four tests relating to the nature and diversification of
our assets. First, at least 75% of the value of our total assets
must be represented by (1) interests in real property,
(2) interests in mortgages on real property, (3) share
(or transferable certificates of beneficial interest) in other
REITs, (4) cash, (5) cash items (including
receivables arising in the ordinary course of the REITs
business) and (6) government securities (as well as certain
temporary investments in stock or debt instruments purchased
with the proceeds of new capital raised by EPR for the one-year
period beginning on the date of receipt of such new capital).
Second, not more than 25% of our total assets may be represented
by securities, other than those securities
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includable in the 75% asset test. Third, of the investments
included in the 25% asset class, and except for investments in
another REIT, a QRS or a TRS, the value of any one issuers
securities may not exceed 5% of the value of our total assets,
and we may not own more than 10% of the total vote or value of
the outstanding securities of any one issuer except, in the case
of the 10% value test, securities satisfying the straight
debt safe-harbor. Certain types of securities we may own
are disregarded as securities solely for purposes of the 10%
value test, including, but not limited to, any loan to an
individual or an estate, any obligation to pay rents from real
property and any security issued by a REIT. In addition,
commencing January 1, 2005, solely for purposes of the 10%
value test, the determination of our interest in the assets of a
partnership or limited liability company in which we own an
interest will be based on our proportionate interest in any
securities issued by the partnership or limited liability
company, excluding for this purpose certain securities described
in the Code. Fourth, no more than 20% of the value of our assets
may be comprised of securities of one or more TRSs.
After initially meeting the asset tests at the close of any
quarter, we will not lose our status as a REIT for failure to
satisfy the asset tests at the end of a later quarter solely by
reason of changes in asset values. If we fail to satisfy an
asset test because we acquire securities or other property
during a quarter, we can cure this failure by disposing of
sufficient nonqualifying assets within 30 days after the
close of that quarter. We believe we have maintained and intend
to continue to maintain adequate records of the value of our
assets to ensure compliance with the asset tests. If we fail to
cure any noncompliance with the asset tests within the
30 day cure period, we would cease to qualify as a REIT
unless we are eligible for certain relief provisions discussed
below.
Commencing with our taxable year beginning January 1, 2005,
certain relief provisions may be available to us if we fail to
satisfy the asset tests described above after the 30 day
cure period. Under these provisions, we will be deemed to have
met the 5% and 10% REIT asset tests if (i) the value of our
nonqualifying assets does not exceed the lesser of (a) 1%
of the total value of our assets at the end of the applicable
quarter or (b) $10,000,000, and (ii) we dispose of the
nonqualifying assets or otherwise satisfy such tests within six
months after the last day of the quarter in which the failure to
satisfy the asset tests is discovered or the period of time
prescribed by Treasury Regulations. For a failure that exceeds
the de minimis thresholds described above which is due to
reasonable cause and not willful neglect, we may avoid
disqualification as a REIT under any of the asset tests, after
the 30 day cure period, by taking steps including
(i) disposing of sufficient nonqualifying assets, or taking
other actions, which allow us to meet the asset test within six
months after the last day of the quarter in which the failure to
satisfy the asset tests is discovered or the period of time
prescribed by Treasury Regulations, (ii) paying a tax equal
to the greater of (a) $50,000 or (b) the highest
corporate tax rate multiplied by the net income generated by the
nonqualifying assets and (iii) filing a schedule describing
each asset that caused the failure in accordance with applicable
Treasury Regulations.
Although we expect to satisfy the asset tests described above
and plan to take steps to ensure that we satisfy such tests for
any quarter end, there can be no assurance we always will be
successful. If we fail to cure any noncompliance with the asset
tests in a timely manner, and the relief provisions described
above are not available, we would cease to qualify as a REIT.
Gross
Income Tests
We must satisfy two gross income requirements for each taxable
year to maintain our qualification as a REIT. First, in each
taxable year at least 75% of our gross income must be
qualifying income. Qualifying income generally
includes (i) rents from real property (except
as modified below), (ii) interest on obligations
collateralized by mortgages on, or interests in, real property
and real estate mortgages, other than gain from property held
primarily for sale to customers in the ordinary course of our
trade or business (dealer property),
(iii) dividends or other distributions on shares in other
REITs, as well as gain from the sale of those shares,
(iv) abatements and refunds of real property taxes,
(v) income from the operation, and gain from the sale, of
property acquired at or in lieu of a foreclosure of the mortgage
collateralized by such property (foreclosure
property), (vi) commitment fees received for agreeing
to make loans collateralized by mortgages on real property or to
purchase or lease real property, (vii) qualified
temporary investment income, and (viii) gain from the
sale or other disposition of a real estate asset which is not a
prohibited transaction. Second, in each taxable year at least
95% of our gross income (excluding gross income from prohibited
transactions) must be derived directly or indirectly from income
from the
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real property investments described above or dividends, interest
and gain from the sale or disposition of stock or securities (or
from any combination of the foregoing).
Rents we receive will qualify as rents from real
property for purposes of satisfying the gross income tests
for a REIT described above only if all of the following
conditions are met:
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The amount of rent must not be based in any way on the income or
profits of any person, although rents generally will not be
excluded solely because they are based on a fixed percentage or
percentages of gross receipts or gross sales.
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We, or an actual or constructive owner of 10% or more of our
capital shares, must not actually or constructively own 10% or
more of the interests in the tenant, or, if the tenant is a
corporation, 10% or more of the voting power or value of all
classes of stock of the tenant. Rents received from any such
tenant that is our TRS, however, will not be excluded from the
definition of rents from real property as a result
of this condition if at least 90% of the space at the property
to which the rents relate is leased to third parties, and the
rents paid by the TRS are comparable to rents paid by our other
tenants for comparable space. Whether rents paid by a TRS are
substantially comparable to rents paid by other tenants is
determined at the time the lease with the TRS is entered into,
extended, and modified, if such modification increases the rents
due under such lease. Notwithstanding the foregoing, however, if
a lease with a controlled taxable REIT subsidiary is
modified and such modification results in an increase in the
rents payable by such TRS, any such increase will not qualify as
rents from real property. For purposes of this rule,
a controlled taxable REIT subsidiary is a TRS in
which we own stock possessing more than 50% of the voting power
or more than 50% of the total value of outstanding stock of such
TRS.
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Rent attributable to personal property, leased in connection
with a lease of real property, must not be greater than 15% of
the total rent received under the lease. If this condition is
not met, then the portion of the rent attributable to personal
property will not qualify as rents from real
property.
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The REIT generally must not operate or manage the property for
which the rents are received or furnish or render services to
the tenants of the property (subject to a 1% de minimis
exception), other than through an independent contractor from
whom the REIT derives no revenue or through a TRS. The REIT may,
however, directly perform certain services that are
usually or customarily rendered in connection with
the rental of space for occupancy only and are not otherwise
considered rendered to the occupant of the property.
Any amounts we receive from a TRS with respect to the TRSs
provision of non-customary services will be nonqualifying income
under the 75% gross income test and, except to the extent
received through the payment of dividends, the 95% gross income
test.
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We do not intend to charge rent for any property that is based
in whole or in part on the net income or profits of any person
(except by reason of being based on a percentage of gross
receipts or sales, as described above), and generally we do not
intend to rent any personal property (other than in connection
with a lease of real property where either less than 15% of the
total rent is attributable to personal property or an amount
immaterial to our operations is attributable to personal
property). We directly perform services under certain of our
leases, but such services are not rendered to the occupant of
the property. Furthermore, these services are usual and
customary management services provided by landlords renting
space for occupancy in the geographic areas in which we own
property. To the extent that the performance of any services
provided by us would cause amounts received from our tenants to
be excluded from rents from real property, we intend to hire a
TRS, or an independent contractor from whom we derive no
revenue, to perform such services.
The term interest generally does not include any
amount received or accrued (directly or indirectly) if the
determination of some or all of the amount depends in any way on
the income or profits of any person. However, an amount received
or accrued generally will not be excluded from the term
interest solely by reason of being based on a fixed
percentage or percentages of receipts or sales.
From time to time, we may enter into hedging transactions with
respect to one or more of our assets or liabilities. Our hedging
activities may include entering into interest rate swaps, caps,
and floors, options to purchase these items, and futures and
forward contracts. Any income we derive from a hedging
transaction will be nonqualifying income for purposes of the 75%
gross income test. The term hedging transaction, as
used above,
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generally means any transaction we enter into in the normal
course of our business primarily to manage the risk of interest
rate changes or fluctuations with respect to borrowings made or
to be made by us. To the extent that we hedge with other types
of financial instruments, the income from those transactions is
not likely to be treated as qualifying income for purposes of
the gross income tests. We intend to structure any hedging
transactions in a manner that does not jeopardize our status as
a REIT.
If we fail to satisfy one or both of the 75% or 95% gross income
tests for any taxable year, we may nevertheless qualify as a
REIT for the year if we are entitled to relief under certain
provisions of the Code. Commencing with our taxable year
beginning January 1, 2005, we generally may make use of the
relief provisions if:
(i) our failure to meet these tests was due to reasonable
cause and not due to willful neglect; and
(ii) following our identification of the failure to meet
the 75% or 95% gross income tests for any taxable year, we file
a schedule with the IRS setting forth each item of our gross
income for purposes of the 75% or 95% gross income tests for
such taxable year in accordance with Treasury Regulations.
For our taxable year ended December 31, 2006, we generally
may avail ourselves of the relief provisions if:
(i) our failure to meet these tests was due to reasonable
cause and not due to willful neglect;
(ii) we attach a schedule of the sources of our income to
our federal income tax return; and
(iii) any incorrect information on the schedule was not due
to fraud with intent to evade tax.
It is not possible, however, to state whether in all
circumstances we would be entitled to the benefit of these
relief provisions. For example, if we fail to satisfy the gross
income tests because nonqualifying income that we intentionally
accrue or receive exceeds the limits on nonqualifying income,
the IRS could conclude that our failure to satisfy the tests was
not due to reasonable cause. If these relief provisions do not
apply to a particular set of circumstances, we will not qualify
as a REIT. As discussed above, even if these relief provisions
apply, and we retain our status as a REIT, a tax would be
imposed with respect to our nonqualifying income. We may not
always be able to comply with the gross income tests for REIT
qualification despite periodic monitoring of our income.
Prohibited
Transaction Income
Any gain we realize on the sale of any property, other than
foreclosure property, held primarily for sale to customers in
the ordinary course of business, will be treated as income from
a prohibited transaction that is subject to a 100% penalty tax.
Whether property is held primarily for sale to customers in the
ordinary course of a trade or business depends on all the facts
and circumstances surrounding the particular transaction. We do
not intend to engage in prohibited transactions.
Penalty
Tax
Any redetermined rents, redetermined deductions or excess
interest we generate will be subject to a 100% penalty tax. In
general, redetermined rents are rents from real property that
are overstated as a result of any services furnished to any of
our tenants by one of our TRSs, and redetermined deductions and
excess interest generally represent any amounts that are
deducted by a TRS for amounts paid to us that are in excess of
the amounts that would have been deducted based on
arms-length negotiations. Rents we receive will not
constitute redetermined rents if they qualify for certain safe
harbor provisions contained in the Code. These determinations
are inherently factual, and the IRS has broad discretion to
assert that amounts paid between related parties should be
reallocated to clearly reflect their respective incomes. If the
IRS successfully makes such an assertion, we would be required
to pay a 100% penalty tax on the excess of an arms-length
fee for tenant services over the amount actually paid.
Annual
Distribution Requirements
To maintain our qualification as a REIT, we are required to
distribute dividends (other than capital gain dividends) to our
shareholders each year in an amount at least equal to
(A) the sum of (i) 90% of our REIT taxable
income (computed before deductions for dividends paid and
excluding net capital gain) and (ii) 90% of our net
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income (after tax), if any, from foreclosure property; minus
(B) the excess of the sum of certain items of noncash
income (i.e., income attributable to leveled stepped rents,
original issue discount on purchase money debt, or a like-kind
exchange that is later determined to be taxable) over 5% of
REIT taxable income as described above.
In addition, if we dispose of any asset we acquired from a
corporation which is or has been a Subchapter C corporation in a
transaction in which our basis in the asset is determined by
reference to the basis of the asset in the hands of that
Subchapter C corporation, within the ten year period following
our acquisition of such asset, we would be required to
distribute at least 90% of the after-tax built in gain, if any,
we recognized on the disposition of the asset.
We must pay the distributions described above in the taxable
year to which they relate (current distributions),
or in the following taxable year if they are either
(i) declared before we timely file our tax return for such
year and paid on or before the first regular dividend payment
after such declaration (throwback distributions) or
(ii) paid during January to shareholders of record in
October, November or December of the prior year (deemed
current distributions). To the extent that we do not
distribute all of our net capital gain or distribute at least
90%, but less than 100%, of our REIT taxable income,
as adjusted, we will be subject to tax thereon at regular
ordinary and capital gain corporate tax rates. In addition, we
would be subject to a 4% excise tax to the extent we fail to
distribute during each calendar year (or in the case of
distributions with declaration and record dates falling in the
last three months of the calendar year, by the end of January
immediately following such year) at least the sum of 85% of our
REIT ordinary income for such year, 95% of our REIT capital gain
income for the year (other than certain long-term capital gains
for which we make a capital gains designation and on which we
pay the tax), and any undistributed taxable income from prior
periods. Any REIT taxable income and net capital gain on which a
REIT-level corporate income tax is imposed for any year is
treated as an amount distributed during that year for purposes
of calculating the excise tax.
We believe we have made, and intend to continue to make, timely
distributions sufficient to satisfy these annual distribution
requirements.
We generally expect that our REIT taxable income will be less
than our cash flow because of the allowance of depreciation and
other non-cash charges in computing REIT taxable income.
Accordingly, we anticipate that we generally will have
sufficient cash or liquid assets to enable us to satisfy the
distribution requirements described above. However, from time to
time, we may not have sufficient cash or other liquid assets to
meet these distribution requirements because of timing
differences between the actual receipt of income and actual
payment of deductible expenses, and the inclusion of income and
deduction of expenses in arriving at our taxable income.
Further, it is possible that from time to time we may be
allocated a share of net capital gain attributable to any
depreciated property we sell that exceeds our allocable share of
cash attributable to that sale. If these circumstances occur, we
may need to arrange for borrowings, or may need to pay dividends
in the form of taxable share dividends, in order to meet the
distribution requirements.
Under certain circumstances, we may be able to rectify a failure
(due to, for example, an IRS adjustment such as an increase in
our taxable income or a reduction in reported expenses) to meet
the 90% distribution requirement for a year by paying
deficiency dividends to shareholders in a later
year, which may be included in our deduction for dividends paid
for the earlier year. Thus, we may be able to avoid being taxed
on amounts distributed as deficiency dividends. However, we will
be required to pay interest to the IRS based on the amount of
any deduction taken for deficiency dividends.
Failure
to Qualify
If we fail to qualify for taxation as a REIT in any taxable
year, and the relief provisions do not apply, we will be subject
to tax (including any applicable alternative minimum tax) on our
taxable income at regular corporate rates. Distributions to
shareholders in any year in which we fail to qualify will not be
deductible by us, and we will not be required to distribute any
amounts to our shareholders. As a result, our failure to qualify
as a REIT would reduce the cash available for distribution by us
to our shareholders. In addition, if we fail to qualify as a
REIT, all distributions to shareholders would be taxable as
ordinary income to the extent of our current and accumulated
earnings and profits, and, subject to certain limitations of the
Code, corporate distributees may be eligible for the dividends
received deduction. Unless entitled to relief under specific
statutory provisions, we also would be disqualified from
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taxation as a REIT for the four taxable years following the year
during which we lost our qualification. It is not possible to
state whether in all circumstances we would be entitled to this
statutory relief.
Commencing with our taxable year beginning January 1, 2005,
specified cure provisions are available to us in the event that
we violate a provision of the Code that would result in our
failure to qualify as a REIT. These cure provisions would reduce
the instances that could lead to our disqualification as a REIT
for violations due to reasonable cause and would instead
generally require the payment of a monetary penalty.
Taxation
of Taxable U.S. Shareholders
The following summary describes certain federal income tax
consequences to U.S. shareholders with respect to an
investment in our shares. This discussion does not address the
tax consequences to persons who receive special treatment under
the federal income tax law. Shareholders subject to special
treatment include, without limitation, insurance companies,
financial institutions or broker-dealers, tax-exempt
organizations, shareholders holding securities as part of a
conversion transaction, or a hedge or hedging transaction or as
a position in a straddle for tax purposes, foreign corporations
or partnerships and persons who are not citizens or residents of
the United States.
As used herein, the term U.S. shareholders
means a holder of shares who, for United States federal income
tax purposes:
(i) is a citizen or resident of the United States;
(ii) is a corporation, partnership or other entity
classified as a corporation or partnership for United States
federal income tax purposes, created or organized in or under
the laws of the United States or any political subdivision
thereof unless, in the case of a partnership, Treasury
Regulations provide otherwise;
(iii) is an estate the income of which is subject to United
States federal income taxation regardless of its source; or
(iv) is a trust whose administration is subject to the
primary supervision of a United States court and which has one
or more United States persons who have the authority to control
all substantial decisions of the trust.
Distributions
Generally
As long as we qualify as a REIT, distributions made out of our
current or accumulated earnings and profits (and not designated
as capital gain dividends), generally will constitute dividends
taxable to our U.S. shareholders as ordinary income. For
purposes of determining whether distributions to holders of
shares are out of current or accumulated earnings and profits,
our earnings and profits will be allocated first to our
outstanding preferred shares and then to our common shares.
These distributions will not be eligible for the
dividends-received deduction in the case of
U.S. shareholders that are corporations.
Because we generally are not subject to federal income tax on
the portion of our REIT taxable income distributed to our
shareholders, our ordinary dividends generally are not
qualified dividend income eligible for the reduced
15% rate available to most non-corporate taxpayers through 2010
under the Tax Increase Prevention and Reconciliation Act of
2006, and will continue to be taxed at the higher tax rates
applicable to ordinary income. However, the reduced 15% rate
does apply to our distributions:
(i) designated as long-term capital gain dividends (except
to the extent attributable to real estate depreciation, in which
case such distributions continue to be subject to tax at a 25%
rate);
(ii) to the extent attributable to dividends received by us
from non-REIT corporations or other taxable REIT
subsidiaries; and
(iii) to the extent attributable to income upon which we
have paid corporate income tax (for example, if we distribute
taxable income that we retained and paid tax on in the prior
year).
It is not likely that a significant amount of our dividends paid
to individual U.S. shareholders will constitute
qualified dividend income eligible for the current
reduced tax rate of 15%.
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To the extent that we make distributions (not designated as
capital gain dividends) in excess of our current and accumulated
earnings and profits, these distributions will be treated as a
tax-free return of capital to each U.S. shareholder. This
treatment will reduce the adjusted basis which each
U.S. shareholder has in his or her shares of stock for tax
purposes by the amount of the distribution (but not below zero).
Distributions in excess of a U.S. shareholders
adjusted basis in his or her shares will be taxable as capital
gains (provided that the shares have been held as a capital
asset) and will be taxable as long-term capital gain if the
shares have been held for more than one year. Dividends we
declare in October, November, or December of any year and
payable to a shareholder of record on a specified date in any of
these months shall be treated as both paid by us and received by
the shareholders on December 31 of that year, provided we
actually pay the dividend on or before January 31 of the
following calendar year. Shareholders may not include in their
own income tax returns any of our net operating losses or
capital losses.
Capital
Gain Distributions
Distributions that we properly designate as capital gain
dividends (and undistributed amounts for which we properly make
a capital gains designation) will be taxable to
U.S. shareholders as gains (to the extent that they do not
exceed our actual net capital gain for the taxable year) from
the sale or disposition of a capital asset. Depending on the
period of time we have held the assets which produced these
gains, and on certain designations, if any, which we may make,
these gains may be taxable to non-corporate
U.S. shareholders at either a 15% or 25% rate, depending on
the nature of the asset giving rise to the gain. Corporate
U.S. shareholders may, however, be required to treat up to
20% of certain capital gain dividends as ordinary income.
Passive
Activity Losses and Investment Interest
Limitations
Distributions we make and gain arising from the sale or exchange
by a U.S. shareholder of our shares will be treated as
portfolio income. As a result, U.S. shareholders generally
will not be able to apply any passive losses against
this income or gain. A U.S. shareholder may elect to treat
capital gain dividends, capital gains from the disposition of
stock and qualified dividend income as investment income for
purposes of computing the investment interest limitation, but in
such case, the shareholders will be taxed at ordinary income
rates on such amounts. Other distributions we make (to the
extent they do not constitute a return of capital) generally
will be treated as investment income for purposes of computing
the investment interest limitation. Gain arising from the sale
or other disposition of our shares, however, will not be treated
as investment income under certain circumstances.
Retention
of Net Long-Term Capital Gains
We may elect to retain, rather than distribute as a capital gain
dividend, our net long-term capital gains. If we make this
election (a Capital Gains Designation) we would
pay tax on our retained net long-term capital gains. In
addition, to the extent we make a Capital Gains Designation, a
U.S. shareholder generally would:
(i) include its proportionate share of our undistributed
long-term capital gains in computing its long-term capital gains
in its return for its taxable year in which the last day of our
taxable year falls (subject to certain limitations as to the
amount that is includable);
(ii) be deemed to have paid the capital gains tax imposed
on us on the designated amounts included in the
U.S. shareholders long-term capital gains;
(iii) receive a credit or refund for the amount of tax
deemed paid by it;
(iv) increase the adjusted basis of its shares by the
difference between the amount of includable gains and the tax
deemed to have been paid by it; and
(v) in the case of a U.S. shareholder that is a
corporation, appropriately adjust its earnings and profits for
the retained capital gains in accordance with Treasury
Regulations to be promulgated.
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Dispositions
of Shares
Generally, if you are a U.S. shareholder and you sell or
dispose of your shares, you will recognize gain or loss for
federal income tax purposes in an amount equal to the difference
between (i) the amount of cash and the fair market value of
any property you receive on the sale or other disposition and
(ii) your adjusted basis in the shares for tax purposes.
This gain or loss will be capital in nature if you have held the
shares as a capital asset and will be long-term capital gain or
loss if you have held the shares for more than one year.
However, if you are a U.S. shareholder and you recognize
loss upon the sale or other disposition of shares that you have
held for six months or less (after applying certain holding
period rules), the loss you recognize will be treated as a
long-term capital loss, to the extent you received distributions
from us or which were retained by us and which were required to
be treated as long-term capital gains.
The maximum tax rate for individual taxpayers on net long-term
capital gains (i.e., the excess of net long-term capital gain
over net short-term capital loss) is currently 15% for most
assets. In the case of individuals whose ordinary income is
taxed at a 10% or 15% rate, the 15% rate is reduced to 5%.
Absent future legislation, the maximum tax rate on long-term
capital gains will return to 20% in 2011.
Redemption
of Shares
If we redeem any of our shares held by you, the tax treatment of
the redemption must be determined based on facts at the time of
redemption. In general, you will recognize gain or loss (as
opposed to dividend income) equal to the difference between the
amount received by you in the redemption and your adjusted tax
basis in your shares redeemed if such redemption results in a
complete termination of your interest in all classes
of our equity securities, is a substantially
disproportionate redemption or is not essentially
equivalent to a dividend with respect to you. In applying
these tests, you must take into account your ownership of all
classes of our equity securities. You also must take into
account any equity securities that are considered to be
constructively owned by you.
If, as a result of a redemption by us of your shares, you no
longer own (either actually or constructively) any of our equity
securities or only own (actually and constructively) an
insubstantial percentage of our equity securities, then it is
likely that the redemption of your shares would be considered
not essentially equivalent to a dividend and, thus,
would result in gain or loss to you. Gain from the sale or
exchange of our shares held for more than one year is taxed at a
maximum long-term capital gain rate of 15% through 2010.
However, whether a distribution is not essentially
equivalent to a dividend depends on all of the facts and
circumstances, and if you rely on any of these tests at the time
of redemption, you should consult your tax advisor to determine
their application to your situation.
Generally, if the redemption does not meet the tests described
above, then the proceeds received by you from the redemption of
your shares will be treated as a distribution taxable as a
dividend to the extent of the allocable portion of current or
accumulated earnings and profits. If the redemption is taxed as
a dividend, your adjusted tax basis in the redeemed shares will
be transferred to any other shares in us that you own. If you
own no other shares in us, under certain circumstances, such
basis may be transferred to a related person, or it may be lost
entirely.
Backup
Withholding
We report to our U.S. shareholders and the IRS the amount
of dividends paid during each calendar year, and the amount of
any tax withheld. Under the backup withholding rules, a
shareholder may be subject to backup withholding with respect to
dividends paid at the fourth lowest rate of tax under
Section 1(c) of the Code (which is currently 28%) unless
the holder is a corporation or comes within certain other exempt
categories and, when required, demonstrates this fact, or
provides a taxpayer identification number, certifies as to no
loss of exemption from backup withholding, and otherwise
complies with applicable requirements of the backup withholding
rules. A U.S. shareholder that does not provide us with its
correct taxpayer identification number may also be subject to
penalties imposed by the IRS. Backup withholding is not an
additional tax. Any amount paid as backup withholding will be
creditable against the shareholders income tax liability.
In addition, we may be required to withhold a portion of capital
gain distributions to any shareholders who fail to certify their
non-foreign status. See Taxation of
Non-U.S. shareholders.
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Taxation
of Tax-Exempt Shareholders
The IRS has ruled that amounts distributed as dividends by a
REIT to a tax-exempt employees pension trust do not
constitute unrelated business taxable income (UBTI).
Based on that ruling, dividend income from us should not be UBTI
to a tax-exempt shareholder so long as the tax-exempt
shareholder (except certain tax-exempt shareholders described
below) has not held its shares as debt financed
property within the meaning of the Code (generally,
shares, the acquisition of which was financed through a
borrowing by the tax-exempt shareholders) and the shares are not
otherwise used in an unrelated trade or business of the
tax-exempt entity. Similarly, income from the sale of shares
will not constitute UBTI unless a tax-exempt shareholder has
held its shares as debt financed property within the
meaning of the Code or has used the shares in a trade or
business.
For shareholders which are social clubs, voluntary employee
benefit associations, supplemental unemployment benefit trusts
and qualified group legal services plans exempt from federal
income taxation under Code Sections 501(c)(7), (c)(9),
(c)(17) and (c)(20), respectively, income from an investment in
our shares will constitute UBTI unless the organization is able
to properly deduct amounts set aside or placed in reserve for
certain purposes so as to offset the income generated by its
investment in our shares. These prospective investors should
consult their own tax advisors concerning these set
aside and reserve requirements.
In addition to the above, a portion of the dividends paid by a
pension held REIT may be treated as UBTI certain
types of trusts that hold more than 10% (by value) of the
interests in the REIT. A pension held REIT is any REIT if more
than 25% (by value) of its shares are owned by at least one
pension trust, or one or more pension trusts, each of whom owns
more than 10% (by value) of such shares, and in the aggregate
such pension trusts own more than 50% (by value) of its shares.
We do not expect to be classified as a pension held
REIT, but because our shares are publicly traded. We
cannot guarantee this will always be the case.
Tax-exempt shareholders should consult their own tax advisors
concerning the U.S. federal, state, local and foreign tax
consequences of an investment in our shares.
Taxation
of
Non-U.S. Shareholders
The rules governing United States federal income taxation of the
ownership and disposition of shares by persons that are not
U.S. shareholders
(Non-U.S. shareholders)
are complex and no attempt is made herein to provide more than a
brief summary of such rules. Accordingly, this discussion does
not address all aspects of U.S. federal income taxation
that may be relevant to a
Non-U.S. shareholder
in light of its particular circumstances and does not address
any state, local or foreign tax consequences.
Non-U.S. shareholders
should consult their own tax advisors to determine the impact of
U.S. federal, state, local and foreign tax consequences to
them of an investment in our shares, including tax return filing
requirements.
Distributions
Distributions that are neither attributable to gain from our
sale or exchange of United States real property interests nor
designated by us as capital gain dividends will be treated as
dividends of ordinary income to the extent that they are made
out of our current or accumulated earnings and profits. Such
distributions ordinarily will be subject to
U.S. withholding tax at a 30% rate or such lower rate as
may be specified by an applicable income tax treaty unless the
distributions are treated as effectively connected with the
conduct by you of a United States trade or business (or, if an
income tax treaty applies, are attributable to a
U.S. permanent establishment of the
Non-U.S. shareholder).
Under certain treaties, however, lower withholding rates
generally applicable to dividends do not apply to dividends from
a REIT. Certain certification and disclosure requirements must
be satisfied to be exempt from withholding under the effectively
connected income exemption. In general,
Non-U.S. shareholders
will not be considered engaged in a U.S. trade or business
(or in the case of an income tax treaty, as having a
U.S. permanent establishment) solely by reason of their
ownership of shares.
Dividends that are treated as effectively connected with such a
trade or business (or, if an income tax treaty applies, is
attributable to a U.S. permanent establishment of the
Non-U.S. shareholder)
will be subject to tax on a net basis (that is, after allowance
for deductions) at graduated rates, in the same manner as
dividends paid to U.S. shareholders are subject to tax, and
are generally not subject to withholding. Any such dividends
received by a
43
Non-U.S. shareholder
that is a corporation also may be subject to an additional
branch profits tax at a 30% rate or such lower rate as may be
specified by an applicable income tax treaty.
We expect to withhold United States income tax at the rate of
30% on any distributions made to a
Non-U.S. shareholder
unless:
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you file with us an IRS
Form W-8BEN
evidencing eligibility for a reduced treaty rate of withholding
under an applicable treaty; or
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you file an IRS
Form W-8ECI
with us claiming that the distribution is income effectively
connected with your trade or business.
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Return
of Capital Distributions
Distributions in excess of our current and accumulated earnings
and profits will not be taxable to you to the extent that such
distributions do not exceed your adjusted basis in our shares,
but rather will reduce the adjusted basis of such shares.
Distributions in excess of your adjusted basis in our shares
will give rise to gain from the sale or exchange of such shares.
The tax treatment of this gain is described below.
For withholding purposes, we expect to treat all distributions
as made out of our current or accumulated earnings and profits.
However, amounts withheld generally should be refundable if it
is subsequently determined that the distribution was, in fact,
in excess of our current and accumulated earnings and profits.
Capital
Gain Dividends and Distributions Attributable to a Sale or
Exchange of U.S. Real Property Interests
Distributions to you that we properly designate as capital gain
dividends, other than those arising from the disposition of a
U.S. real property interest, generally should not be
subject to U.S. federal income taxation, unless:
(1) the investment in our shares is treated as effectively
connected with your U.S. trade or business, in which case
you will be subject to the same treatment as
U.S. shareholders with respect to such gain, except that a
Non-U.S. shareholder
(or, if an income tax treaty applies, it is attributable to a
U.S. permanent establishment of the
Non-U.S. shareholder)
that is a foreign corporation may also be subject to the 30%
branch profits tax, as discussed above; or
(2) you are a nonresident alien individual who is present
in the U.S. for 183 days or more during the taxable
year and certain other conditions are met, in which case you
will be subject to a 30% tax on your capital gains.
For each year during which we qualify as a REIT, distributions
that are attributable to net capital gain from the sale or
exchange of U.S. real property interests, such as
properties beneficially owned by us, will be taxed to a
Non-U.S. shareholder
under the provisions of the Foreign Investment in Real Property
Tax Act of 1980 (FIRPTA). Under FIRPTA, such
distributions paid to a
Non-U.S. shareholder
who owns more than 5% of the value of our shares at any time
during the one-year period ending on the date of distribution
will be subject to U.S. federal income tax as income
effectively connected with a United States trade or business.
The FIRPTA tax will apply to these distributions whether or not
the distribution is designated as a capital gain dividend.
Generally, you will be taxed at the same capital gain rates
applicable to U.S. shareholders (subject to applicable
alternative minimum tax and a special alternative minimum tax in
the case of nonresident alien individuals). We will be required
to withhold and to remit 35% of any distribution to you that
could be treated as a capital gain dividend. The amount withheld
is creditable against your U.S. federal income tax
liability. However, any distribution with respect to any class
of shares which is regularly traded on an established securities
market located in the United States is not subject to FIRPTA,
and therefore, not subject to the 35% U.S. withholding tax
described above, if you did not own more than 5% of such class
of shares at any time during the one-year period ending on the
date of the distribution (the 5% Exception).
Instead, such distributions will be treated as ordinary dividend
distributions.
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Retention
of Net Capital Gains
Although the law is not clear on the matter, it appears that
amounts designated by us as retained capital gains in respect of
the shares held by
Non-U.S. shareholders
generally should be treated in the same manner as actual
distributions by us of capital gain dividends. Under this
approach, you would be able to offset as a credit against your
U.S. federal income tax liability resulting from your
proportionate share of the tax paid by us on such retained
capital gains, and to receive from the IRS a refund to the
extent your proportionate share of such tax paid by us exceeds
your actual U.S. federal income tax liability.
Sale
of Shares
Gain recognized by a
Non-U.S. shareholder
upon the sale or exchange of our shares generally will not be
subject to U.S. taxation unless such shares constitutes a
U.S. real property interest. Our shares will not constitute
a U.S. real property interest so long as (i) we are a
domestically-controlled qualified investment entity, which
includes a REIT, if at all times during a specified testing
period less than 50% in value of its stock is held directly or
indirectly by
non-U.S. shareholders
or (ii) such class of our shares is regularly traded, as
defined by applicable Treasury regulations, on an established
securities market such as the NYSE; and you owned, actually and
constructively, 5% or less in value of such class of our shares
throughout the shorter of the period during which you held such
shares or the five-year period ending on the date of the sale or
exchange.
Notwithstanding the foregoing, gain from the sale or exchange of
our shares not otherwise subject to FIRPTA will be taxable to
you if either (1) the investment in our shares is treated
as effectively connected with your U.S. trade or business
or (2) you are a nonresident alien individual who is
present in the U.S. for 183 days or more during the
taxable year and certain other conditions are met. In addition,
even if we are a domestically controlled qualified investment
entity, upon disposition of our shares (subject to the 5%
exception applicable to regularly traded stock described above),
you may be treated as having gain from the sale or exchange of a
U.S. real property interest if you (1) dispose of our
shares within a
30-day
period preceding the ex-dividend date of a distribution, any
portion of which, but for the disposition, would have been
treated as gain from the sale or exchange of a U.S. real
property interest and (2) acquire, or enter into a contract
or option to acquire, or are deemed to acquire, substantially
identical shares within 30 days after such ex-dividend date.
If gain on the sale or exchange of our shares were subject to
taxation under FIRPTA, you would be subject to regular United
States federal income tax with respect to such gain in the same
manner as a taxable U.S. shareholder (subject to any
applicable alternative minimum tax and a special alternative
minimum tax in the case of nonresident alien individuals) and
the purchaser of the shares would be required to withhold and
remit to the IRS 10% of the purchase price.
Backup
Withholding Tax and Information Reporting
Generally, we must report annually to the IRS the amount of
dividends paid to you, your name and address, and the amount of
tax withheld, if any. A similar report is sent to you. Pursuant
to tax treaties or other agreements, the IRS may make its
reports available to tax authorities in your country of
residence.
Payments of dividends or of proceeds from the disposition of
shares made to you may be subject to information reporting and
backup withholding unless you establish an exemption, for
example, by properly certifying your
Non-U.S. shareholder
status on an IRS
Form W-8BEN
or another appropriate version of IRS
Form W-8.
Notwithstanding the foregoing, backup withholding and
information reporting may apply if either we have or our paying
agent has actual knowledge, or reason to know, that you are a
U.S. person.
Backup withholding is not an additional tax. Rather, the United
States income tax liability of persons subject to backup
withholding will be reduced by the amount of tax withheld. If
withholding results in an overpayment of taxes, a refund or
credit may be obtained, provided that the required information
is furnished to the IRS.
Possible
Legislative or Other Actions Affecting Tax
Consequences
Prospective investors should recognize that the present
U.S. federal income tax treatment of an investment in us
may be modified by legislative, judicial or administrative
action at any time, and that any such action may affect
45
investments and commitments previously made. The rules dealing
with U.S. federal income taxation are constantly under
review by persons involved in the legislative process and by the
IRS and the U.S. Treasury Department, resulting in
revisions of regulations and revised interpretations of
established concepts as well as statutory changes. Revisions in
U.S. federal tax laws and interpretations thereof could
adversely affect the tax consequences of an investment in us.
State and
Local Tax Consequences
We may be subject to state or local taxation or withholding in
various state or local jurisdictions, including those in which
we transact business, and our shareholders may be subject to
state or local taxation or withholding in various state or local
jurisdictions, including those in which they reside. The state
and local tax treatment of us may not conform to the federal
income tax treatment discussed above. Several states in which we
may own properties treat REITs as ordinary Subchapter C
corporations subject to tax at the corporate level. In addition,
your state and local tax treatment may not conform to the
federal income tax treatment discussed above. You should consult
your own tax advisors regarding the effect of state and local
tax laws on an investment in our shares.
PLAN OF
DISTRIBUTION
We may sell common shares, preferred shares, depositary shares,
warrants and debt securities:
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through underwriters or dealers
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through agents
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directly to one or more purchasers, including our affiliates
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directly to shareholders
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or through any combination of these methods
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We may effect the distribution of common shares, preferred
shares, depositary shares, warrants and debt securities from
time to time in one or more transactions either:
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at a fixed price or prices which may be changed
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at market prices prevailing at the time of sale
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at prices relating to those market prices
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at negotiated prices
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For each offering of common shares, preferred shares, depositary
shares, warrants or debt securities, the prospectus supplement
or other offering materials will describe:
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|
|
|
|
the plan of distribution
|
|
|
|
the terms of the offering
|
|
|
|
the names of any agents
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|
|
|
the name or names of any managing underwriter or underwriters
|
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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
|
|
|
|
any underwriting discounts, commissions and other items
constituting underwriters compensation
|
|
|
|
any initial public offering price
|
46
|
|
|
|
|
any discounts or concessions allowed or reallowed or paid to
dealers
|
|
|
|
any commissions paid to agents
|
If we use underwriters in the sale, they will buy the securities
for their own account. The underwriters may then resell from
time to time the securities in one or more transactions at a
fixed public offering price, at any market price in effect at
the time of sale or at a discount from any such market price.
The obligations of the underwriters to purchase the securities
will be subject to certain conditions. The underwriters will be
obligated to purchase all the securities offered if they
purchase any securities. Any discounts or concessions allowed or
re-allowed or paid to dealers may be changed by the underwriters
from time to time.
In order to facilitate the offering of securities, the
underwriters may engage in transactions that stabilize, maintain
or otherwise affect the price of securities. Specifically, the
underwriters may over-allot in connection with the offering,
creating a short position in the securities for their account.
In addition, to cover over-allotments or to stabilize the price
of the shares, the underwriters may bid for, and purchase,
shares in the open market. Finally, an underwriting syndicate
may reclaim selling concessions allowed to an underwriter or a
dealer for distributing the securities in the offering if the
syndicate repurchases previously distributed shares in
transactions to cover syndicate short positions, in
stabilization transactions, or otherwise. Any of these
activities may stabilize or maintain the market price of the
offered securities above independent market levels. The
underwriters are not required to engage in these activities and
may end any of these activities at any time.
Some or all of the securities that we offer through this
prospectus may be new issues of securities with no established
trading market. Any underwriters to whom we sell securities for
public offering and sale may make a market in those securities,
but they will not be obligated to and they may discontinue any
market making at any time without notice. Accordingly, we cannot
assure you of the liquidity of, or continued trading markets
for, any securities offered pursuant to this prospectus. If we
use dealers in the sale, we will sell securities to those
dealers as principals. The dealers may then resell the
securities to the public at any market price or other prices to
be determined by the dealers at the time of resale. If we use
agents in the sale, unless we inform you otherwise in the
prospectus supplement or other applicable offering materials
they will use their reasonable best efforts to solicit
purchasers for the period of their appointment. If we sell
directly, no underwriters or agents would be involved. In the
prospectus supplement or other applicable offering materials, we
will name any agent involved in the offer or sale of the offered
securities, and we will describe any commissions payable to the
agent. We are not making an offer of securities in any state
that does not permit such an offer.
Underwriters, dealers and agents that participate in the
distribution of securities may be deemed to be underwriters as
defined in the Securities Act. Any discounts, commissions or
profit they receive when they resell the securities may be
treated as underwriting discounts and commissions under the
Securities Act. We may have agreements with underwriters,
dealers and agents to indemnify them against certain civil
liabilities, including certain liabilities under the Securities
Act, or to contribute to payments they may be required to make.
We may authorize underwriters, dealers or agents to solicit
offers from institutions in which the institution contractually
agrees to purchase the securities from us on a future date at a
specified price. This type of agreement may be made only with
institutions that we specifically approve. These institutions
could include banks, insurance companies, pension funds,
investment companies and educational and charitable
institutions. The underwriters, dealers or agents will not be
responsible for the validity or performance of these agreements.
Underwriters, dealers or agents may engage in transactions with
us and may perform services for us in the ordinary course of
business.
We may sell the securities directly to institutional investors
or others who may be deemed to be underwriters within the
meaning of the Securities Act with respect to any sale of those
securities. We will describe the terms of any such sales in the
prospectus supplement or other applicable offering materials.
LEGAL
OPINIONS
Stinson Morrison Hecker LLP will issue an opinion about the
validity of the securities and EPRs qualification and
taxation as a REIT under the Code. In addition, the description
of EPRs taxation and qualification as a REIT
47
under the caption U.S. Federal Income Tax
Considerations is based upon the opinion of Stinson
Morrison Hecker LLP. Underwriters, dealers or agents who we
identify in a prospectus supplement or other applicable offering
materials may have their counsel give an opinion on certain
legal matters relating to the securities or the offering.
EXPERTS
Our consolidated financial statements and schedules as of
December 31, 2006 and December 31, 2005 and for each
of the years in the three-year period ended December 31,
2006 and managements assessment of the effectiveness of
internal control over financial reporting as of
December 31, 2006 have been incorporated by reference in
this prospectus and in the registration statement of which this
prospectus is a part, in reliance upon the reports of KPMG LLP,
independent registered public accounting firm, incorporated by
reference herein, and upon the authority of said firm as experts
in accounting and auditing. The audit report covering the
December 31, 2006 financial statements refers to a change
in the method of quantifying errors in 2006.
AVAILABLE
INFORMATION
We are subject to the informational requirements of the Exchange
Act, and in accordance with those requirements, we file reports
and other information with the SEC. The reports and other
information can be inspected and copied at the public reference
facilities maintained by the SEC at Room 1580, 100 F
Street, N.E., Washington, D.C. 20549. Copies of this
material can be obtained by mail from the Public Reference
Section of the SEC at Room 1580, 100 F Street, N.E.,
Washington, D.C. 20549 at prescribed rates. The public may
obtain information on the operation of the public reference room
by calling the SEC at
1-800-SEC-0330.
The SEC maintains an Internet website (http://www.sec.gov) that
contains reports, proxy and information statements and other
materials that are filed through the SEC Electronic Data
Gathering Analysis and Retrieval (EDGAR) system. In addition,
our common shares, Series A Preferred Shares, Series B
Preferred Shares and Series C Preferred Shares are listed
on the New York Stock Exchange and we are required to file
reports, proxy and information statements and other information
with the New York Stock Exchange. These documents can be
inspected at the principal office of the New York Stock
Exchange, 20 Broad Street, New York, New York 10005.
We have filed with the SEC a registration statement on
Form S-3,
of which this prospectus is a part, covering the securities
described in this prospectus. You should be aware that this
prospectus does not contain all of the information contained or
incorporated by reference in the registration statement and its
exhibits and schedules. You may inspect and obtain the
registration statement, including exhibits, schedules, reports
and other information that we have filed with the SEC, as
described in the preceding paragraph. Statements contained in
this prospectus concerning the contents of any document we refer
you to are not necessarily complete and in each instance we
refer you to the applicable document filed with the SEC for more
complete information.
48
PART II
INFORMATION
NOT REQUIRED IN PROSPECTUS
|
|
Item 14.
|
Other
Expenses of Issuance and Distribution.
|
Set forth below is an estimate (except in the case of the
registration fee) of the amount of fees and expenses to be
incurred in connection with the issuance and distribution of the
offered securities, other than underwriting discounts and
commissions.
|
|
|
|
|
Registration Fee Under Securities
Act of 1933
|
|
$
|
*
|
|
Legal Fees and Expenses
|
|
|
**
|
|
Accounting Fees and Expenses
|
|
|
**
|
|
Printing and Engraving Expenses
|
|
|
**
|
|
Trustee Fees (including counsel
fees)
|
|
|
**
|
|
Rating Agency Fees
|
|
|
**
|
|
Miscellaneous Fees and Expenses
|
|
|
**
|
|
Total
|
|
$
|
**
|
|
|
|
|
*
|
|
In accordance with Rules 456(b) and 457(r) of the
Securities Act of 1933, we are deferring payment of the
registration fee for the securities offered by this prospectus,
except for $2,381.96 discussed in Note (4) on the cover
page of this Registration Statement.
|
|
**
|
|
Estimated expenses are not presently known.
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|
|
Item 15.
|
Indemnification
of Trustees and Officers.
|
The laws relating to Maryland real estate investment trusts (the
Maryland REIT Law) permit a real estate investment
trust to indemnify and advance expenses to its trustees,
officers, employees and agents to the same extent permitted by
the Maryland General Corporation Law (the MGCL) for
directors and officers of Maryland corporations. The MGCL
permits a corporation to indemnify its present and former
directors and officers against judgments, penalties, fines,
settlements and reasonable expenses incurred in connection with
any proceeding to which they may be made, or are threatened to
be made, a party by reason of their service in those capacities.
However, a Maryland corporation is not permitted to provide this
type of indemnification if the following is established:
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|
|
|
|
the act or omission of the director or officer was material to
the matter giving rise to the proceeding and was committed in
bad faith or was the result of active and deliberate dishonesty;
|
|
|
|
the director or officer actually received an improper personal
benefit in money, property or services; or
|
|
|
|
in the case of any criminal proceeding, the director or officer
had reasonable cause to believe that the act or omission was
unlawful.
|
Additionally, a Maryland corporation may not indemnify a
director or officer for an adverse judgment in a suit by or in
the right of that corporation or for a judgment of liability on
the basis that personal benefit was improperly received, unless
in either case a court orders indemnification and then only for
expenses. The MGCL permits a corporation to advance reasonable
expenses to a director or officer upon the corporations
receipt of the following:
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|
|
|
|
a written affirmation by the director or officer of his good
faith belief that he has met the standard of conduct necessary
for indemnification by the corporation; and
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|
|
|
a written undertaking by him or on his behalf to repay the
amount paid or reimbursed by the corporation if it is ultimately
determined that this standard of conduct was not met.
|
Our officers and trustees are and will be indemnified under our
Declaration of Trust against certain liabilities. Our
Declaration of Trust provides that we will, to the maximum
extent permitted by Maryland law in effect from time to time,
indemnify: (a) any individual who is a present or former
trustee or officer of EPR; or (b) any individual who, while
a trustee or officer of EPR and at the request of EPR, serves or
has served as a director, officer, shareholder, partner,
trustee, employee or agent of any real estate investment trust,
corporation, partnership, joint venture, trust, employee benefit
plan or any other enterprises against any claim or liability,
together with reasonable
II-1
expenses actually incurred in advance of a final disposition of
a legal proceeding, to which such person may become subject or
which such person may incur by reason of his or her status as
such. We have the power, with the approval of our Board of
Trustees, to provide such indemnification and advancement of
expenses to a person who served a predecessor of EPR in any of
the capacities described in (a) or (b) above and to
any employee or agent of EPR or its predecessors.
We have also entered into indemnification agreements with our
trustees and certain of our officers providing for procedures
for indemnification by us to the fullest extent permitted by law
and advancements by us of certain expenses and costs relating to
claims, suits or proceedings arising from their service to us.
We have obtained trustees and officers liability
insurance for the purpose of funding the provision of any such
indemnification.
The SEC has expressed the opinion that indemnification of
trustees, officers or persons otherwise controlling a company
for liabilities arising under the Securities Act of 1933, as
amended, is against public policy and is therefore unenforceable.
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|
|
|
Exhibit No.
|
|
Description
|
|
|
1
|
.1
|
|
Form of Underwriting Agreement
(for Debt Securities)*
|
|
1
|
.2
|
|
Form of Underwriting Agreement
(for Preferred Shares)*
|
|
1
|
.3
|
|
Form of Underwriting Agreement
(for Common Shares)*
|
|
1
|
.4
|
|
Form of Underwriting Agreement
(for Depositary Shares)*
|
|
1
|
.5
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|
Form of Underwriting Agreement
(for Warrants)*
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|
4
|
.1
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|
Form of Senior Indenture**
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|
4
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.2
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|
Form of Subordinated Indenture**
|
|
4
|
.3
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|
Form of Senior Debt Security*
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|
4
|
.4
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|
Form of Subordinated Debt Security*
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|
4
|
.5
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|
Form of
Articles Supplementary for Preferred Shares*
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|
4
|
.6
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|
Form of Deposit Agreement,
including form of Depositary Receipt for Depositary Shares*
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|
4
|
.7
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|
Form of Preferred
Shares Certificate*
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|
4
|
.8
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|
Form of Common
Shares Certificate***
|
|
4
|
.9
|
|
Form of Warrant Agreement,
including form of Warrant*
|
|
5
|
.1
|
|
Opinion of Stinson Morrison Hecker
LLP regarding legality**
|
|
8
|
.1
|
|
Opinion of Stinson Morrison Hecker
LLP regarding tax matters**
|
|
12
|
.1
|
|
Computation of Ratio of Earnings
to Fixed Charges**
|
|
12
|
.2
|
|
Computation of Ratio of Earnings
to Combined Fixed Charges and Preferred Distributions**
|
|
23
|
.1
|
|
Consent of KPMG LLP**
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|
23
|
.2
|
|
Consent of Stinson Morrison Hecker
LLP (included in Exhibits 5.1 and 8.1)**
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|
24
|
.1
|
|
Powers of Attorney of certain
officers, trustees and directors (included on signature pages)**
|
|
25
|
.1
|
|
Statement of Eligibility of
Trustee on
Form T-1
under the Trust Indenture Act of 1939, as amended, of the
trustee under the Senior Indenture*
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|
25
|
.2
|
|
Statement of Eligibility of
Trustee on
Form T-1
under the Trust Indenture Act of 1939, as amended, of the
trustee under the Subordinated Indenture*
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|
|
|
*
|
|
To be filed by amendment or incorporated by reference in
connection with the offering of any securities, as appropriate.
|
|
**
|
|
Filed herewith.
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|
***
|
|
Form of share certificate for common shares of beneficial
interest of the Company, which is attached as Exhibit 4.5
to the Companys registration statement on
Form S-11,
as amended, (Registration
No. 333-35281),
is hereby incorporated by reference as Exhibit 4.8.
|
II-2
a) The undersigned registrant hereby undertakes:
(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 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 (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) do
not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in
periodic reports filed with or furnished to the Commission by
the registrant 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:
(i) Each prospectus filed by the registrant 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
(ii) 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 it 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 the prospectus that was part of
the registration statement or made in any such document
immediately prior to such effective date.
II-3
(5) That, for the purpose of determining liability of the
registrant under the Securities Act of 1933 to any purchaser in
the initial distribution of the securities:
The undersigned registrant undertakes that in a primary offering
of securities of the 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, the undersigned registrant will be a
seller to the purchaser and will be considered to offer to sell
such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the
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 the undersigned registrant or used
or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus
relating to the offering containing material information about
the undersigned registrant or its securities provided by or on
behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the
offering made by the undersigned registrant to the purchaser.
b) The undersigned registrant hereby undertakes that, for
purposes of determining any liability under the Securities Act
of 1933, each filing of the registrants 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) Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has 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 registrant of expenses incurred
or paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question of 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-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on
Form S-3
and has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the
City of Kansas City, State of Missouri, on this 27th day of
February, 2007.
ENTERTAINMENT PROPERTIES TRUST,
a Maryland real estate investment trust
|
|
|
|
By:
|
/s/
Gregory
K. Silvers
|
Name: Gregory K. Silvers
|
|
|
|
Title:
|
Vice President, Chief Operating Officer,
General Counsel and Secretary
|
POWER OF
ATTORNEY
Each person whose signature appears below constitutes and
appoints David M. Brain, Gregory K. Silvers and Mark A.
Peterson, and each of them, his true and lawful
attorney-in-fact
and agent, with full power of substitution and resubstitution,
for him and in his name, place and stead, in any and all
capacities, to sign any and all amendments, including
post-effective amendments, to this registration statement, to
any related Rule 462(b) registration statement and to any
other documents filed with the Securities and Exchange
Commission and to file the same, with all exhibits to the
registration statement and other documents in connection with
the registration statement, with the Securities and Exchange
Commission or any other regulatory authority, grants to the
attorney-in-fact
and agent full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and
about the premises, as fully to all intents and purposes as he
might or could do in person, and ratifies and confirms all that
the
attorney-in-fact
and agent, or his substitute, may lawfully do or cause to be
done by virtue of this power of attorney.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following
persons in the capacities and on the date indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/
Robert
J. Druten
Robert
J. Druten
|
|
Chairman of the Board
of Trustees
|
|
February 27, 2007
|
|
|
|
|
|
|
|
By:
|
|
/s/
David
M. Brain
David
M. Brain
|
|
President, Chief Executive
Officer (Principal Executive
Officer) and Trustee
|
|
February 27, 2007
|
|
|
|
|
|
|
|
By:
|
|
/s/
Mark A.
Peterson
Mark
A. Peterson
|
|
Vice President and Chief
Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
|
|
February 27, 2007
|
|
|
|
|
|
|
|
By:
|
|
/s/
Morgan
G.
Earnest, II
Morgan
G. Earnest, II
|
|
Trustee
|
|
February 27, 2007
|
|
|
|
|
|
|
|
By:
|
|
/s/
James
A. Olson
James
A. Olson
|
|
Trustee
|
|
February 27, 2007
|
|
|
|
|
|
|
|
By:
|
|
/s/
Barrett
Brady
Barrett
Brady
|
|
Trustee
|
|
February 27, 2007
|
II-5
Exhibit Index
|
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
1
|
.1
|
|
Form of Underwriting Agreement
(for Debt Securities)*
|
|
1
|
.2
|
|
Form of Underwriting Agreement
(for Preferred Shares)*
|
|
1
|
.3
|
|
Form of Underwriting Agreement
(for Common Shares)*
|
|
1
|
.4
|
|
Form of Underwriting Agreement
(for Depositary Shares)*
|
|
1
|
.5
|
|
Form of Underwriting Agreement
(for Warrants)*
|
|
4
|
.1
|
|
Form of Senior Indenture**
|
|
4
|
.2
|
|
Form of Subordinated Indenture**
|
|
4
|
.3
|
|
Form of Senior Debt Security*
|
|
4
|
.4
|
|
Form of Subordinated Debt Security*
|
|
4
|
.5
|
|
Form of
Articles Supplementary for Preferred Shares*
|
|
4
|
.6
|
|
Form of Deposit Agreement,
including form of Depositary Receipt for Depositary Shares*
|
|
4
|
.7
|
|
Form of Preferred
Shares Certificate*
|
|
4
|
.8
|
|
Form of Common
Shares Certificate***
|
|
4
|
.9
|
|
Form of Warrant Agreement,
including form of Warrant*
|
|
5
|
.1
|
|
Opinion of Stinson Morrison Hecker
LLP regarding legality**
|
|
8
|
.1
|
|
Opinion of Stinson Morrison Hecker
LLP regarding tax matters**
|
|
12
|
.1
|
|
Computation of Ratio of Earnings
to Fixed Charges**
|
|
12
|
.2
|
|
Computation of Ratio of Earnings
to Combined Fixed Charges and Preferred Distributions**
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23
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.1
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Consent of KPMG LLP**
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23
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.2
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Consent of Stinson Morrison Hecker
LLP (included in Exhibits 5.1 and 8.1)**
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24
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.1
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Powers of Attorney of certain
officers, trustees and directors (included on signature pages)**
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25
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.1
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Statement of Eligibility of
Trustee on
Form T-1
under the Trust Indenture Act of 1939, as amended, of the
trustee under the Senior Indenture*
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25
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.2
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Statement of Eligibility of
Trustee on
Form T-1
under the Trust Indenture Act of 1939, as amended, of the
trustee under the Subordinated Indenture*
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*
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To be filed by amendment or incorporated by reference in
connection with the offering of any securities, as appropriate.
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**
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Filed herewith.
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***
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Form of share certificate for common shares of beneficial
interest of the Company, which is attached as Exhibit 4.5
to the Companys registration statement on
Form S-11,
as amended, (Registration
No. 333-35281),
is hereby incorporated by reference as Exhibit 4.8.
|
EXHIBIT 4.1
INDENTURE
BETWEEN
ENTERTAINMENT PROPERTIES TRUST
AND
______________________,
AS TRUSTEE
DATED AS OF ____________, 200_
SENIOR DEBT SECURITIES
(Issuable in Series)
TABLE OF CONTENTS
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ARTICLE 1
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DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
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Section 1.1
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Definitions
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1
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Section 1.2
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Incorporation by Reference of Trust Indenture Act
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9
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Section 1.3
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Compliance Certificates and Opinions
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10
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Section 1.4
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Form of Documents Delivered to Trustee
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10
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Section 1.5
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Acts of Holders; Record Dates
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11
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Section 1.6
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Notices, etc., to Trustee and Company
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13
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Section 1.7
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Notice to Holders; Waiver
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13
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Section 1.8
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Conflict with Trust Indenture Act
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14
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Section 1.9
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Effect of Headings and Table of Contents
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14
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Section 1.10
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Successors and Assigns
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14
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Section 1.11
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Separability Clause
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14
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Section 1.12
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Benefits of Indenture
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14
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Section 1.13
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Governing Law
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14
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Section 1.14
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Legal Holidays
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15
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Section 1.15
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Indenture and Securities Solely Corporate Obligations
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15
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Section 1.16
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Indenture May be Executed in Counterparts
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16
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ARTICLE 2
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SECURITY FORMS
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Section 2.1
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Forms Generally
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16
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Section 2.2
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Form of Trustees Certificate of Authentication
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16
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Section 2.3
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Global Securities
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17
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Section 2.4
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Form of Legend for Global Securities
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19
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ARTICLE 3
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THE SECURITIES
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Section 3.1
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Amount Unlimited; Issuable in Series
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19
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Section 3.2
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Denominations
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23
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Section 3.3
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Execution, Authentication, Delivery and Dating
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23
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Section 3.4
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Temporary Securities
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25
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Section 3.5
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Registration; Registration of Transfer and Exchange
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26
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Section 3.6
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Mutilated, Destroyed, Lost and Stolen Securities
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27
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Section 3.7
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Payment of Interest; Interest Rights Preserved
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28
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Section 3.8
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Persons Deemed Owners
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29
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Section 3.9
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Cancellation
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29
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Section 3.10
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Computation of Interest
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30
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i
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ARTICLE 4
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SATISFACTION AND DISCHARGE
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Section 4.1
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Satisfaction and Discharge of Indenture
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30
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Section 4.2
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Application of Trust Money
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31
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Section 4.3
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Reinstatement
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31
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ARTICLE 5
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REMEDIES
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Section 5.1
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Events of Default
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32
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Section 5.2
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Acceleration of Maturity; Rescission and Annulment
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34
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Section 5.3
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Collection of Indebtedness and Suits for Enforcement by Trustee
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35
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Section 5.4
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Trustee May File Proofs of Claim
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36
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Section 5.5
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Trustee May Enforce Claims Without Possession of Securities
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36
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Section 5.6
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Application of Money Collected
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37
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Section 5.7
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Limitation on Suits
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37
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Section 5.8
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Right of Holders to Receive Principal, Premium and Interest
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38
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Section 5.9
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Restoration of Rights and Remedies
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38
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Section 5.10
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Rights and Remedies Cumulative
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38
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Section 5.11
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Delay or Omission Not Waiver
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39
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Section 5.12
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Control by Holders
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39
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Section 5.13
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Waiver of Past Defaults
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39
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Section 5.14
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Undertaking for Costs
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40
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ARTICLE 6
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THE TRUSTEE
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Section 6.1
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Certain Duties and Responsibilities
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40
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Section 6.2
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Notice of Defaults
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41
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Section 6.3
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Certain Rights of Trustee
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42
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Section 6.4
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Not Responsible for Recitals or Issuance of Securities
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43
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Section 6.5
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May Hold Securities and Act as Trustee under Other Indentures
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43
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Section 6.6
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Money Held in Trust
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43
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Section 6.7
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Compensation and Reimbursement
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43
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Section 6.8
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Conflicting Interests
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44
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Section 6.9
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Eligibility; Disqualification
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44
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Section 6.10
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Resignation and Removal; Appointment of Successor
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45
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Section 6.11
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Acceptance of Appointment by Successor
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46
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Section 6.12
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Merger, Conversion, Consolidation or Succession to Business
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47
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Section 6.13
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Preferential Collection of Claims Against Company
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48
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Section 6.14
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Appointment of Authenticating Agent
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48
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ii
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ARTICLE 7
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HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
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Section 7.1
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Company to Furnish Trustee Names and Addresses of Holders
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50
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Section 7.2
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Preservation of Information; Communications to Holders
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50
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Section 7.3
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Reports by Trustee
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50
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Section 7.4
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Reports by Company
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51
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ARTICLE 8
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CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
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Section 8.1
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Company May Consolidate, etc., Only on Certain Terms
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51
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Section 8.2
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Successor Substituted
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51
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ARTICLE 9
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SUPPLEMENTAL INDENTURES
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Section 9.1
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Supplemental Indentures Without Consent of Holders
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52
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Section 9.2
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Supplemental Indentures with Consent of Holders
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53
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Section 9.3
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Execution of Supplemental Indentures
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54
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|
Section 9.4
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Effect of Supplemental Indentures
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54
|
|
Section 9.5
|
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Conformity with Trust Indenture Act
|
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|
54
|
|
Section 9.6
|
|
Reference in Securities to Supplemental Indentures
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55
|
|
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ARTICLE 10
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COVENANTS
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Section 10.1
|
|
Payment of Principal, Premium and Interest
|
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|
55
|
|
Section 10.2
|
|
Maintenance of Office or Agency
|
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|
55
|
|
Section 10.3
|
|
Money for Securities Payments to be Held in Trust
|
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|
55
|
|
Section 10.4
|
|
Statement by Officers as to Default
|
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|
57
|
|
Section 10.5
|
|
Existence
|
|
|
57
|
|
Section 10.6
|
|
All Securities to be Equally and Ratably Secured
|
|
|
57
|
|
Section 10.7
|
|
Maintenance of Properties
|
|
|
57
|
|
Section 10.8
|
|
Payment of Taxes and Other Claims
|
|
|
57
|
|
Section 10.9
|
|
Waiver of Certain Covenants
|
|
|
58
|
|
Section 10.10
|
|
Additional Amounts
|
|
|
58
|
|
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ARTICLE 11
|
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|
|
REDEMPTION OF SECURITIES
|
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|
Section 11.1
|
|
Applicability of Article
|
|
|
59
|
|
Section 11.2
|
|
Election to Redeem; Notice to Trustee
|
|
|
59
|
|
iii
|
|
|
|
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|
|
Section 11.3
|
|
Selection by Trustee of Securities to Be Redeemed
|
|
|
59
|
|
Section 11.4
|
|
Notice of Redemption
|
|
|
60
|
|
Section 11.5
|
|
Deposit of Redemption Price
|
|
|
61
|
|
Section 11.6
|
|
Securities Payable on Redemption Date
|
|
|
61
|
|
Section 11.7
|
|
Securities Redeemed in Part
|
|
|
61
|
|
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ARTICLE 12
|
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|
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|
SINKING FUNDS
|
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|
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|
|
|
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|
Section 12.1
|
|
Applicability of Article
|
|
|
62
|
|
Section 12.2
|
|
Satisfaction of Sinking Fund Payments with Securities
|
|
|
62
|
|
Section 12.3
|
|
Redemption of Securities for Sinking Fund
|
|
|
62
|
|
|
|
|
|
|
|
|
|
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ARTICLE 13
|
|
|
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|
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DEFEASANCE AND COVENANT DEFEASANCE
|
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|
|
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|
|
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|
Section 13.1
|
|
Companys Option to Effect Defeasance or Covenant Defeasance
|
|
|
63
|
|
Section 13.2
|
|
Defeasance and Discharge
|
|
|
63
|
|
Section 13.3
|
|
Covenant Defeasance
|
|
|
64
|
|
Section 13.4
|
|
Conditions to Defeasance or Covenant Defeasance
|
|
|
64
|
|
Section 13.5
|
|
Deposited Money, U. S. Government Obligations and Foreign Government Obligations to beHeld in
Trust; Miscellaneous Provisions
|
|
|
66
|
|
Section 13.6
|
|
Reinstatement
|
|
|
67
|
|
iv
ENTERTAINMENT PROPERTIES TRUST
This Cross Reference Sheet shows the location in the Indenture of the provisions inserted
pursuant to Sections 3.10 through 3.18, inclusive, of the Trust Indenture Act of 1939:
|
|
|
|
|
|
|
Section 310
|
|
(a) (1)
|
|
|
6.9
|
|
|
|
(a) (2)
|
|
|
6.9
|
|
|
|
(a) (3)
|
|
|
6.9
|
|
|
|
(a) (4)
|
|
Not Applicable
|
|
|
(a) (5)
|
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|
6.9
|
|
|
|
(b)
|
|
|
6.8, 6.10
|
|
|
|
(c)
|
|
Not Applicable
|
Section 311
|
|
(a)
|
|
|
6.13
|
|
|
|
(b)
|
|
|
6.13
|
|
|
|
(c)
|
|
Not Applicable
|
Section 312
|
|
(a)
|
|
|
7.1, 7.2
|
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|
|
(b)
|
|
|
7.2
|
|
|
|
(c)
|
|
|
7.2
|
|
Section 313
|
|
(a)
|
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|
7.3
|
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|
|
(b)
|
|
|
7.3
|
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|
|
(c)
|
|
|
7.3
|
|
|
|
(d)
|
|
|
7.3
|
|
Section 314
|
|
(a) (1)
|
|
|
7.4
|
|
|
|
(a) (2)
|
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|
7.4
|
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|
|
(a) (3)
|
|
|
7.4
|
|
|
|
(a) (4)
|
|
|
1.1, 10.4
|
|
|
|
(b)
|
|
Not Applicable
|
|
|
(c) (1)
|
|
|
1.3
|
|
|
|
(c) (2)
|
|
|
1.3
|
|
|
|
(c) (3)
|
|
Not Applicable
|
|
|
(d)
|
|
Not Applicable
|
|
|
(e)
|
|
|
1.3
|
|
Section 315
|
|
(a)
|
|
|
6.1
|
|
|
|
(b)
|
|
|
6.2
|
|
|
|
(c)
|
|
|
6.1
|
|
|
|
(d)
|
|
|
6.1
|
|
|
|
(e)
|
|
|
5.14
|
|
Section 316
|
|
(a)
|
|
|
1.1
|
|
|
|
(a) (1) (A)
|
|
|
5.2, 5.12
|
|
|
|
(a) (1) (B)
|
|
|
5.13
|
|
|
|
(a) (2)
|
|
Not Applicable
|
|
|
(b)
|
|
|
5.8
|
|
|
|
(c)
|
|
|
1.5
|
|
Section 317
|
|
(a) (1)
|
|
|
5.3
|
|
|
|
(a) (2)
|
|
|
5.4
|
|
|
|
(b)
|
|
|
10.3
|
|
Section 318
|
|
(a)
|
|
|
1.8
|
|
NOTE: This Cross Reference Sheet is not part of the Indenture.
v
INDENTURE
INDENTURE, dated as of _______________, between ENTERTAINMENT PROPERTIES TRUST, a Maryland
real estate investment trust (the
Company
), having its principal office at ____________,
and _______________, as trustee, (the
Trustee
), the office of the Trustee at which
at the date hereof its corporate trust business is principally administered being
_______________.
RECITALS
The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its debentures, notes or other evidences of indebtedness (the
Securities
), to be issued in one or more series as herein provided.
This Indenture is subject to the provisions of the Trust Indenture Act and the rules and
regulations of the Commission promulgated thereunder that are required to be part of this Indenture
and, to the extent applicable, shall be governed by such provisions.
All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.
NOW, THEREFORE, for and in consideration of the premises and the purchase of the Securities by
the Holders thereof, each party agrees for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Securities, or of series thereof, issued under this
Indenture, as follows:
ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 1.1
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 accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States of America, 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 in the United States of America as are generally accepted as of the time when
and for the period as to which such accounting principles are to be applied;
(3)
or
is not exclusive;
(4) any reference to an
Article
or a
Section
refers to an Article or a
Section, as the case may be, of this Indenture;
(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; and
(6) certain terms, used principally in
Article 6
, are defined in
Section 1.2
.
Act
, when used with respect to any Holder, has the meaning specified in
Section
1.5
.
Additional Amounts
means any additional amounts that are required by the express
terms of a Security or by or pursuant to a Board Resolution, under circumstances specified therein
or pursuant thereto, to be paid by the Company with respect to certain taxes, assessments or other
governmental charges imposed on certain Holders and that are owing to such Holders.
Affiliate
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For purposes of this definition,
control
when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms
controlling
and
controlled
have meanings correlative to the foregoing.
Authenticating Agent
means any Person, which may include the Company, authorized by
the Trustee pursuant to
Section 6.14
to act on behalf of the Trustee to authenticate
Securities of one or more series.
Authorized Newspaper
means a newspaper of general circulation in the New York, New
York area, printed in the English language and customarily published on each Business Day, whether
or not published on Saturdays, Sundays or holidays. Whenever successive weekly publications in an
Authorized Newspaper are required hereunder they may be made (unless otherwise expressly provided
herein) on the same or different days of the week and in the same or in different Authorized
Newspapers.
Bankruptcy Law
means Title 11, U.S. Code, or any similar federal or state law for
the relief of debtors.
Board
or
Board of Trustees
means either the board of trustees of the
Company or any duly authorized committee thereof.
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 Trustees and to be in
full force and effect on the date of such certification, and delivered to the Trustee.
Business Day
, when used with respect to any Place of Payment, means each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that
Place of Payment, or the city in which the Corporate Trust Office is located, are authorized or
obligated by law or executive order to close.
2
Commission
means the Securities and Exchange Commission, from time to time
constituted, created under 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.
Common Shares
includes any shares of beneficial interest of any class of the Company
which has no preference in respect of dividends or of amounts payable in the event of any voluntary
or involuntary liquidation, dissolution or winding-up of the Company and which is not subject to
redemption by the Company.
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, respectively, a written request or
order signed in the name of the Company by its Chairman of the Board, its Chief Executive Officer,
its President or a Vice President, and by its principal financial officer, its Controller, an
Assistant Controller, its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee.
Corporate Trust Office
means the corporate trust office of the Trustee at [ ],
Attention: Corporate Trust Department, or such other office, designated by the Trustee by written
notice to the Company, at which at any particular time its corporate trust business shall be
administered.
Covenant Defeasance
has the meaning specified in
Section 13.3
.
Custodian
means any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Law.
default
means, with respect to the Securities of any series, any event, act or
condition that is, or after notice or the passage of time or both would be, an Event of Default
with respect to Securities of such series.
Defaulted Interest
has the meaning specified in
Section 3.7
.
Defeasance
has the meaning specified in
Section 13.2
.
Depositary
means, with respect to Securities of any series issuable in whole or in
part in the form of one or more Global Securities, The Depository Trust Company, New York, New
York, another clearing agency, or any successor, registered under the Exchange Act that is
designated to act as Depositary for such Securities as contemplated by
Section 3.1
.
Dollar
or
$
means a dollar or other equivalent unit in such coin or
currency of the United States as at the time shall be legal tender for the payment of public and
private debts.
euro
or
euros
means the currency adopted by those nations participating in
the third stage of the economic and monetary union provisions of the Treaty on European Union,
signed at Maastricht on February 7, 1992.
3
European Economic Area
means the member nations of the European Economic Area
pursuant to the Oporto Agreement on the European Economic Area dated May 2, 1992, as amended.
European Union
means the member nations of the European Union established by the
Treaty of European Union, signed at Maastricht on February 2, 1992, which amended the Treaty of
Rome establishing the European Community.
Event of Default
has the meaning specified in
Section 5.1
.
Exchange Act
means the Securities Exchange Act of 1934 and any statute successor
thereto, in each case as amended from time to time.
Exchange Rate
has the meaning specified in
Section 3.2
.
Expiration Date
has the meaning specified in
Section 1.5
.
Foreign Government Obligation
means with respect to Securities of any series which
are not denominated in the currency of the United States of America (x) any security which is (i) a
direct obligation of the government which issued or caused to be issued the currency in which such
security is denominated and for the payment of which obligations its full faith and credit is
pledged or, with respect to Securities of any series which are denominated in euros, a direct
obligation of any member nation of the European Union for the payment of which obligation the full
faith and credit of the respective nation is pledged so long as such nation has a credit rating at
least equal to that of the highest rated member nation of the European Economic Area, or (ii) an
obligation of a Person controlled or supervised by and acting as an agency or instrumentality of a
government specified in clause (i) above the payment of which is unconditionally guaranteed as a
full faith and credit obligation by the such government, which, in either case (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (y) any depositary receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any
Foreign Government Obligation which is specified in clause (x) above and held by such bank for the
account of the holder of such depositary receipt, or with respect to any specific payment of
principal of or interest on any Foreign Government Obligation which is so specified and held,
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 depositary receipt from any amount received by the
custodian in respect of the Foreign Government Obligation or the specific payment of principal or
interest evidenced by such depositary receipt.
Global Security
means a Security that evidences all or part of the Securities of any
series and bears the legend set forth in
Section 2.4
(or such legend as may be specified as
contemplated by
Section 3.1
for such Securities).
Holder
means a Person in whose name a Security is registered in the Security
Register.
Indenture
means this instrument as originally executed and 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
4
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 3.1
; provided, however, that if at any time more
than one Person is acting as Trustee under this Indenture due to the appointment of one or more
separate Trustees for any one or more separate series of Securities,
Indenture
shall
mean, with respect to such series of Securities for which any such Person is Trustee, 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
and shall include the terms of particular series of Securities for which such Person is Trustee
established as contemplated by
Section 3.1
, exclusive, however, of any provisions or terms
which relate solely to other series of Securities for which such Person is not Trustee, regardless
of when such terms or provisions were adopted, and exclusive of any provisions or terms adopted by
means of one or more indentures supplemental hereto executed and delivered after such Person had
become such Trustee, but to which such person, as such Trustee, was not a party; provided, further
that in the event that this Indenture is supplemented or amended by one or more indentures
supplemental hereto which are only applicable to certain series of Securities, the term
Indenture
for a particular series of Securities shall exclude provisions or terms which
relate solely to other series of Securities.
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.
Investment Company Act
means the Investment Company Act of 1940 and any statute
successor thereto, in each case as amended from time to time.
Judgment Currency
has the meaning specified in
Section 5.6
.
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, repurchase at
the option of the Holder, call for redemption or otherwise.
Mortgage
means and includes any mortgage, pledge, lien, security interest,
conditional sale or other title retention agreement or other similar encumbrance.
Notice of Default
means a written notice of the kind specified in
Section
5.1(4)
.
Officers Certificate
means a certificate signed by the Chairman of the Board, the
Chief Executive Officer, the President or a Vice President, and by the principal financial officer,
the Treasurer, the Controller, an Assistant Treasurer, an Assistant Controller, 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 10.4
shall be the principal executive,
financial or accounting officer of the Company.
5
Opinion of Counsel
means a written opinion of legal counsel, who may be, without
limitation, (a) an employee of the Company, or (b) outside counsel designated by the Company,
rendered, if applicable, in accordance with Section 314(c) of the Trust Indenture Act.
Original Issue Discount Security
means any Security that 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 5.2
.
Outstanding
when used with respect to Securities, means, as of the date of
determination, all Securities theretofore authenticated and delivered under this Indenture, except
(1) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;
(2) 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; 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;
(3) Securities which have been paid pursuant to
Section 3.6
or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been presented to the Trustee
proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;
provided, however, that unless otherwise provided with respect to any Securities of any series
pursuant to
Section 3.1
, in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given, made or taken any request, demand, authorization,
direction, notice, consent, waiver or other action hereunder as of any date, (A) the principal
amount of an Original Issue Discount Security which shall be deemed to be Outstanding shall be the
amount of the principal thereof which would be due and payable as of such date upon acceleration of
the Maturity thereof to such date pursuant to
Section 5.2
, (B) if, as of such date, the
principal amount payable at the Stated Maturity of a Security is not determinable, the principal
amount of such Security which shall be deemed to be Outstanding shall be the amount as specified or
determined as contemplated by
Section 3.1
, (C) the principal amount of a Security
denominated in one or more non-U.S. dollar currencies or currency units which shall be deemed to be
Outstanding shall be the U.S. dollar equivalent, determined as of such date in the manner provided
as contemplated by
Section 3.1
, of the principal amount of such Security (or, in the case
of a Security described in
clause (A)
or
(B)
above, of the amount determined as
provided in such clause), and (D) Securities owned by the Company or any other obligor upon the
Securities or any Subsidiary 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, waiver or other
action, only Securities which a Responsible Officer of 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
6
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 Subsidiary of the Company or of such other obligor.
Paying Agent
means any Person, which may include the Company, authorized by the
Company to pay the principal of or any premium or interest on, or any Additional Amounts with
respect to, any one or more series of Securities on behalf of the Company.
Periodic Offering
means an offering of Securities of a series from time to time the
specific terms of which Securities, including, without limitation, the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the Maturity thereof and the
redemption provisions, if any, with respect thereto, are to be determined by the Company upon the
issuance of such Securities.
Person
means any individual, corporation, limited liability company, partnership,
joint venture, incorporated or unincorporated association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof or other
entity of any kind.
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, or any Additional Amounts
with respect to, the Securities of that series are payable as specified as contemplated by
Section 3.1
and
10.2
.
Predecessor Security
of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under
Section
3.6
in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be
deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.
Preferred Shares
as applied to the shares of beneficial interest of the Company
means shares of beneficial interest of any class or classes (however designated) which is preferred
as to the payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of the Company, over Common Shares of the Company.
Record Date
means any Regular Record Date or Special Record Date.
Redemption Date
, when used with respect to any Security to be redeemed, means the
date fixed for such redemption by or pursuant to the terms of such Security and 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 the terms of such Security and this Indenture.
Regular Record Date
for the interest payable on any Interest Payment Date on the
Securities of any series means any date specified for that purpose as contemplated by
Section
3.1
, or, if not so specified, the first day of the calendar month of the month of such Interest
Payment Date if such Interest Payment Date is the fifteenth day of the calendar month, or the
fifteenth day of the calendar month preceding such Interest Payment Date if such Interest
7
Payment Date is the first day of a calendar month, whether or not such day shall be a Business
Day.
Required Currency
has the meaning specified in
Section 5.6
.
Responsible Officer
means, when used with respect to the Trustee, an officer of the
Trustee in the Corporate Trust Office assigned and duly authorized by the Trustee to administer its
corporate trust matters.
Securities
has the meaning stated in the first recital of this Indenture and more
particularly means any debentures, notes or other evidences of indebtedness of the Company
authenticated and delivered under this Indenture.
Securities Act
means the Securities Act of 1933 and any statute successor thereto,
in each case as amended from time to time.
Security Custodian
means, with respect to Securities of a series issued in global
form, the Trustee for Securities of such series, acting in its capacity as custodian with respect
to the Securities of such series, or any successor entity thereto.
Security Register
and
Security Registrar
have the respective meanings
specified in
Section 3.5
.
Special Record Date
for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to
Section 3.7
.
Stated Maturity
, when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such Security as the fixed date
on which the principal of such Security or such installment of principal or interest is due and
payable.
Subsidiary
means any Person of which the Company at the time owns or controls,
directly or indirectly, more than 50% of the shares of outstanding stock or other equity interests
having general voting power under ordinary circumstances to elect a majority of the board of
directors, managers or trustees, as the case may be, of such Person (irrespective of whether or not
at the time stock of any other class or classes or other equity interests of such corporation shall
have or might have voting power by reason of the happening of any contingency).
Trust Indenture Act
means the Trust Indenture Act of 1939 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.
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.
8
United States
means the United States of America (including the states thereof and
the District of Columbia) and its possessions, which include Puerto Rico, the U.S. Virgin
Islands, Guam, American Somoa, Wake Island and the Northern Mariana Islands.
United States Alien
means any Person who, for United States federal income tax
purposes, is a foreign corporation, a nonresident alien individual, a nonresident alien or foreign
fiduciary of an estate or trust, or a foreign partnership.
U.S. Government Obligation
means (x) any security which is (i) a direct obligation
of the United States of America for the payment of which the full faith and credit of the United
States of America is pledged or (ii) an obligation 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 (i) or (ii), is not callable or redeemable at the option of the issuer
thereof, and (y) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S. Government Obligation which is specified in
clause (x) above and held by such bank for the account of the holder of such depositary receipt, or
with respect to any specific payment of principal of or interest on any U.S. Government Obligation
which is so specified and held, 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 depositary receipt
from any amount received by the custodian in respect of the U.S. Government Obligation or the
specific payment of principal or interest evidenced by such depositary 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.
Yield to Maturity
means, when used with respect to any Original Issue Discount
Security, the yield to maturity, if any, set forth on the face thereof.
Section 1.2
Incorporation by Reference of Trust Indenture Act
.
Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is
incorporated by reference in and made a part of this Indenture. The following Trust Indenture Act
terms used in this Indenture have the following meanings:
indenture securities
means the Securities.
indenture security holder
means a Holder.
indenture to be qualified
means this Indenture.
indenture trustee
or
institutional trustee
means the Trustee.
obligor
on the indenture securities means the Company or any other obligor on the
Securities.
9
All terms used in this Indenture that are defined by the Trust Indenture Act, defined by a
Trust Indenture Act reference to another statue or defined by Commission rule under the Trust
Indenture Act and not otherwise defined herein have the meanings assigned to them therein.
Section 1.3
Compliance Certificates and Opinions
.
Except as otherwise expressly provided by this Indenture, 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 (other than pursuant to
Section 10.4
) shall include,
(1) a statement that each Person 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 Person, such Person has made such
examination or investigation as is necessary to enable such Person 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 Person, such condition or covenant
has been complied with.
Section 1.4
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
10
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.
Any certificate or opinion of an officer of the Company or of counsel may be based, insofar as
it relates to accounting matters, upon a certificate or opinion of or representations by an
accountant or firm of accountants employed or retained by the Company unless such officer or
counsel, as the case may be, knows, or in the exercise of reasonable care should know, that the
certificate or opinions or representations as to such accounting 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 1.5
Acts of Holders; Record Dates
.
Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given, made or taken by Holders of the Outstanding
Securities of all series or one or more series, as the case may be, 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. The Trustee shall promptly deliver to
the Company copies of all such instrument or instruments delivered to the Trustee. 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 6.1
) conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section.
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 or her the execution thereof. Where such
execution is by a signer acting in a capacity other than his or her individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his or her 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 that the Trustee deems sufficient.
The ownership, date of holding, principal amount and serial numbers of Securities shall be
proved by the Security Register.
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. Any
consent or waiver of the Holder of any Security shall be irrevocable for a period of six
11
months after the date of execution thereof, but otherwise any such Holder or subsequent Holder
may revoke the request, demand, authorization, direction, notice, consent or other Act as to his
Security or portion of his Security; provided, however, that such revocation shall be effective
only if the Trustee receives the notice of revocation before the date the Act becomes effective.
The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, direction, vote, notice, consent, waiver or other action provided or permitted by
this Indenture to be given, made or taken by Holders of Securities of such series, provided that
the Company may not set a record date for, and the provisions of this paragraph shall not apply
with respect to, the giving or making of any notice, declaration, request or direction referred to
in the next paragraph. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date, and no other Holders, shall be
entitled to take the relevant action, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities
of such series on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be canceled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable Expiration Date to be given
to the Trustee in writing and to each Holder of Securities of the relevant series in the manner set
forth in
Section 1.7
.
The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration referred to in
Section 5.2
, (iii) any request
to institute proceedings referred to in
Section 5.7(2)
or
(iv)
any direction
referred to in
Section 5.12
, in each case with respect to Securities of such series. If any
record date is set pursuant to this paragraph, the Holders of Outstanding Securities of such series
on such record date, and no other Holders, shall be entitled to join in such notice, declaration,
request or direction, whether or not such Holders remain Holders after such record date; provided
that no such action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to prevent the Trustee
from setting a new record date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be canceled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Trustee, at the Companys expense, shall cause
notice of such record date, the proposed action by Holders and the applicable Expiration Date to be
given to the Company in writing and to each Holder of Securities of the relevant series in the
manner set forth in
Section 1.7
.
12
With respect to any record date set pursuant to this Section, the party hereto which sets such
record dates may designate any day as the
Expiration Date
and from time to time may
change the Expiration Date to any earlier or later day; provided that no such change shall be
effective unless notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner set forth in
Section 1.7
, on or prior to the existing Expiration Date. If an Expiration Date is not
designated with respect to any record date set pursuant to this
Section 1.5
, the party
hereto which set such record date shall be deemed to have initially designated the 180th day after
such record date as the Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.
Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with
regard to any particular Security may do so with regard to all or any part of the principal amount
of such Security or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.
Section 1.6
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 (or by facsimile transmissions, provided
that oral confirmation of receipt shall have been received) to or with the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Department, 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 furnished by certified
mail, return receipt requested, personally delivered or furnished via overnight courier 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, Attention: Chief Financial Officer.
Section 1.7
Notice to Holders; Waiver
.
Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, or delivered by hand or overnight courier to each Holder affected by
such event, at its 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. Neither the failure to mail or deliver by hand or overnight courier any notice, nor any
defect in any notice so mailed or delivered by hand or overnight courier, 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.
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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 notice to Holders of Securities by mail, then such notification as
shall be made with the approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder. In any case in which notice to Holders of Securities is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder
of a Security, shall affect the sufficiency of such notice with respect to other Holders of
Securities.
Section 1.8
Conflict with Trust Indenture Act
.
If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act or another provision hereof required to be included in this Indenture by any of the provisions
of the Trust Indenture Act, the latter provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act, which 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 1.9
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 1.10
Successors and Assigns
.
All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether or not so expressed. All agreements of the Trustee in this Indenture shall bind
its successor.
Section 1.11
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.
Section 1.12
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, any Authenticating Agent, Paying
Agent or Security Registrar, and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.
Section 1.13
Governing Law
.
THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK,
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BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
Section 1.14
Legal Holidays
.
Unless otherwise provided with respect to any Security or Securities pursuant to
Section
3.1
, in any case where any Interest Payment Date, Redemption Date, sinking fund payment date,
or Stated Maturity or Maturity or other payment date of any Security or the last date on which a
Holder has the right to convert a Security at a particular conversion price 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 any Security which specifically states that such provision
shall apply in lieu of this Section)) payment of interest or principal (and premium, if any) or, if
applicable to a particular series of Securities, conversion 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, at the
Stated Maturity or on such last day for conversion, as the case may be.
Section 1.15
Indenture and Securities Solely Corporate Obligations
.
No recourse for the payment of the principal of or premium, if any, or interest on any
Security, or for any claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental
indenture or in any Security, or because of the creation of any indebtedness represented thereby,
shall be had, directly or indirectly, against any incorporator, subscriber to the shares of
beneficial interest (or capital stock or membership interests (as applicable)), shareholder,
stockholder, member, employee, agent, manager, officer, trustee or director, as such, past, present
or future, of the Company or the Trustee or of any predecessor or successor corporation, either
directly or through the Company or the Trustee or any predecessor or successor corporation, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that this Indenture and the obligations issued
hereunder are solely corporate obligations and that no such personal liability whatever shall
attach to, or is or shall be incurred by, any incorporator, subscriber to the shares of beneficial
interest (or capital stock or membership interests (as applicable)), shareholder, stockholder,
member, employee, agent, manager, officer, trustee or director, as such, of the Company or the
Trustee or of any predecessor or successor corporation, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such incorporator, subscriber to
the shares of beneficial interest (or capital stock or membership interests (as applicable)),
shareholder, stockholder, member, employee, agent, manager, officer, trustee or director, as such,
because of the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture, any supplemental indenture
hereto, any certificate or other writing delivered in connection herewith, or in any of the
Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as
a consideration for, the execution of this Indenture
15
and the issuance of such Securities. By accepting a Security, each Holder agrees to the
provisions of this
Section 1.15
and waives and releases all such liability. Such waiver
and release shall be part of the consideration for the issuance of the Securities.
Section 1.16
Indenture May be Executed in Counterparts
.
This instrument may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same instrument.
ARTICLE 2
SECURITY FORMS
Section 2.1
Forms Generally
.
The Securities of each series shall be in such form or forms as shall be established by or
pursuant to one or more Board Resolutions and set forth in such Board Resolutions, or, to the
extent established pursuant to, rather than set forth in, such Board Resolutions, an Officers
Certificate detailing such establishment, 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
any applicable law or with any rules or regulations pursuant thereto, or any rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be determined by the
officers executing such Securities, as evidenced by their execution thereof. If the form of
Securities of any series is established by action taken pursuant to a Board Resolution, or, to the
extent established pursuant to, rather than set forth in, such Board Resolutions, an Officers
Certificate detailing such establishment, 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 3.3
for the
authentication and delivery of such Securities. Any such Board Resolution, Officers Certificate or
record of such action shall have attached thereto a true and correct copy of the form of Security
referred to therein approved by or pursuant to such Board Resolution or Officers Certificate.
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 2.2
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 herein referred to in the
within-mentioned Indenture.
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[Trustee], as Trustee
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Authorized Officer
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Section 2.3
Global Securities
.
If the Company shall establish pursuant to
Section 3.1
that the Securities of a
particular series are to be issued in whole or in part in the form of one or more Global
Securities, then the Company shall execute and the Trustee shall, in accordance with
Section
3.3
and the Company Order delivered to the Trustee thereunder, authenticate and deliver such
Global Security or Securities, which (i) shall represent, and shall be denominated in an amount
equal to the aggregate principal amount of the Outstanding Securities of such series to be
represented by such Global Security or Securities, (ii) may provide that the aggregate amount of
Outstanding Securities represented thereby may from time to time be increased or reduced to reflect
exchanges, (iii) shall be registered in the name of the Depositary for such Global Security or
Securities or its nominee, (iv) shall be delivered by the Trustee to the Depositary or pursuant to
the Depositarys instruction and (v) shall bear a legend in accordance with the requirements of the
Depositary.
Notwithstanding any other provision of this Section or of
Section 3.5
, except as
contemplated by the provisions of this
Section 2.3
below, unless the terms of a Global
Security expressly permit such Global Security to be exchanged in whole or in part for individual
Securities, a Global Security may be transferred, in whole but not in part and in the manner
provided in
Section 3.5
, only to a nominee of the Depositary for such Global Security, or
to the Depositary, or to a successor Depositary for such Global Security selected or approved by
the Company, or to a nominee of such successor Depositary.
If at any time the Depositary for a Global Security notifies the Company that it is unwilling
or unable to continue as the Depositary for such Global Security or if at any time the Depositary
for the Securities for such series shall no longer be eligible or in good standing under the
Exchange Act, or other applicable statute or regulation, the Company shall appoint a successor
Depositary with respect to such Global Security. If a successor Depositary for such Global Security
is not appointed by the Company within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company will execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of Securities of such series in the form of definitive
certificates in exchange for such Global Security, will authenticate and deliver Securities of such
series in the form of definitive certificates of like tenor and terms in an aggregate principal
amount equal to the principal amount of the Global Security in exchange for such Global Security.
Such Securities will be issued to and registered in the name of such Person or Persons as are
specified by the Depositary.
The Company may at any time and in its sole discretion determine that the Securities of any
series issued or issuable in the form of one or more Global Securities shall no longer be
represented by such Global Security or Securities. In any such event the Company will execute, and
the Trustee, upon receipt of a Company Request for the authentication and delivery of Securities
in the form of definitive certificates in exchange in whole or in part for such Global Security,
will authenticate and deliver without service charge to each Person specified by the
17
Depositary Securities in the form of definitive certificates of like tenor and terms in an
aggregate principal amount equal to the principal amount of such Global Security representing such
series, or the aggregate principal amount of such Global Securities representing such series, in
exchange for such Global Security or Securities.
If specified by the Company pursuant to
Section 3.1
with respect to Securities issued
or issuable in the form of a Global Security, the Depositary for such Global Security may surrender
such Global Security in exchange in whole or in part for Securities in the form of definitive
certificates of like tenor and terms on such terms as are acceptable to the Company and such
Depositary. Thereupon the Company shall execute, and the Trustee shall authenticate and deliver,
without service charge, (A) to each Person specified by such Depositary a new Security or
Securities of the same series of like tenor and terms and any authorized denomination as requested
by such Person in aggregate principal amount equal to and in exchange for such Persons beneficial
interest in the Global Security and (B) to such Depositary a new Global Security of like tenor and
terms and in an authorized denomination equal to the difference, if any, between the principal
amount of the surrendered Global Security and the aggregate principal amount of Securities
delivered to Holders thereof.
In any exchange provided for in any of the preceding three paragraphs, the Company shall
execute and the Trustee shall authenticate and deliver Securities in the form of definitive
certificates in authorized denominations. Upon the exchange of the entire principal amount of a
Global Security for Securities in the form of definitive certificates, such Global Security shall
be canceled by the Trustee. Except as provided in the immediately preceding subparagraph,
Securities issued in exchange for a Global Security pursuant to this
Section 2.3
shall be
registered in such names and in such authorized denominations as the Depositary for such Global
Security, acting pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. Provided that the Company and the Trustee have so agreed, the Trustee
shall deliver such Securities to the Persons in whose names the Securities are so to be registered.
Any endorsement of a Global Security to reflect the principal amount thereof, or any increase
or decrease in such principal amount, or changes in the rights of Holders of Outstanding Securities
represented thereby shall be made in such manner and by such Person or Persons as shall be
specified in or pursuant to any applicable letter of representations or other arrangement entered
into with, or procedures of, the Depositary with respect to such Global Security or in the Company
Order delivered or to be delivered pursuant to
Section 3.3
or
Section 3.4
with
respect thereto. Subject to the provisions of
Section 3.3
and, if applicable,
Section
3.4
, the Trustee shall deliver and redeliver any such Global Security in the manner and upon
instructions given by the Person or Persons specified in or pursuant to any applicable letter of
representations or other arrangement entered into with, or procedures of, the Depositary with
respect to such Global Security or in any applicable Company Order. If a Company Order pursuant to
Section 3.3
or
Section 3.4
is so delivered, any instructions by the Company with
respect to such Global Security contained therein shall be in writing but need not be accompanied
by or contained in an Officers Certificate and need not be accompanied by an Opinion of Counsel.
The Depositary or, if there be one, its nominee, shall be the Holder of a Global Security for
all purposes under this Indenture; and beneficial owners with respect to such Global Security shall
hold their interests pursuant to applicable procedures of such Depositary. The Company,
18
the Trustee, the Paying Agent and the Security Registrar shall be entitled to deal with such
Depositary for all purposes of this Indenture relating to such Global Security (including the
payment of principal, premium, if any, and interest and any Additional Amounts with respect to such
Global Security and the giving of instructions or directions by or to the beneficial owners of such
Global Security as the sole Holder of such Global Security and shall have no obligations to the
beneficial owners thereof (including any direct or indirect participants in such Depositary). None
of the Company, the Trustee, any Paying Agent or the Security Registrar shall have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Security in or pursuant to any applicable letter of
representations or other arrangement entered into with, or procedures of, the Depositary with
respect to such Global Security or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.
Section 2.4
Form of Legend for Global Securities
.
Unless otherwise specified as contemplated by
Section 3.1
for the Securities evidenced
thereby, every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
ARTICLE 3
THE SECURITIES
Section 3.1
Amount Unlimited; Issuable in Series
.
The aggregate principal amount of Securities that 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 3.3
, 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,
19
other Securities of the series pursuant to
Section 2.3
,
3.4
,
3.5
,
3.6
,
9.6
or
11.7
and except for any Securities which, pursuant to
Section 3.3
, 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 and premium, if any, on any Securities of the
series is payable or the method of determination and/or extension of such date or dates; and the
amount or amounts of such payments of principal and premium, if any, or the method of determination
thereof;
(5) the rate or rates (which may be fixed or variable), at which any Securities of the series
shall bear interest, if any, whether and under what circumstances Additional Amounts with respect
to such Securities shall be payable, the date or dates from which any such interest shall accrue,
the Interest Payment Dates on which any such interest shall be payable and, if other that as set
forth in
Section 1.1
, the Regular Record Date for any such interest payable on any Interest
Payment Date (or the method for determining the dates and rates);
(6) whether any of such Securities will be subject to certain optional interest rate reset
provisions;
(7) the place or places where the principal of and any premium and interest on, or any
Additional Amounts with respect to, the Securities of the series shall be payable, where the
Securities of such 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 such series and this
Indenture may be served, and the method of such payment, if by wire transfer, mail or other means;
(8) (a) the period or periods within which, the price or prices at which, the currency or
currencies (including currency units) and the terms and conditions upon which any Securities of the
series may be redeemed, in whole or in part, at the option of the Company, (b) if other than as
provided in
Section 11.3
, the manner in which the particular Securities of such series (if
less than all Securities of such series are to be redeemed) are to be selected for redemption and
(c) if other than by a Board Resolution, the manner in which any election by the Company to redeem
the Securities shall be evidenced;
(9) the obligation, if any, of the Company to redeem, purchase or repay any Securities of the
series pursuant to any sinking fund, amortization or analogous provisions or upon the happening of
a specified event or at the option of the Holder thereof and the period or periods within which,
the price or prices at which and the terms and conditions upon which any Securities of the series
shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation and any
provisions for the remarketing of such Securities;
(10) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which any Securities of the series shall be issuable;
20
(11) if other than the Trustee, the identity of the Securities Registrar and/or the Paying
Agent;
(12) if the amount of principal of or any premium or interest on or other payments, if any, on
any Securities of the series may be determined with reference to an index, formula or other method
(which index, formula or method may be based, without limitation, on the price of one or more
commodities, derivatives or securities; one or more securities, derivatives or commodities exchange
indices or other indices; a currency or currencies (including currency unit or units) other than
that in which the Securities of the series are denominated or designated to be payable; or any
other variable or the relationship between any variables or combination of variables), the index,
formula or other method by which such amounts shall be determined;
(13) if other than the currency of the United States of America, the currency, currencies or
currency units (including composite currencies) in which the principal of or any premium or
interest on, or any Additional Amounts with respect to, any Securities of the series shall be
payable and the manner of determining the equivalent thereof in the currency of the United States
of America for any purpose, including for purposes of the definition of
Outstanding
in
Section 1.1
;
(14) if the principal of or any premium or interest on, or any Additional Amounts with respect
to, any Securities of the series is to be payable, at the election of the Company or the Holder
thereof, in one or more currencies or currency units other than that or those in which such
Securities are stated to be payable, the currency, currencies or currency units in which the
principal of or any premium or interest on such Securities as to which such election is made shall
be payable, the periods within which and the terms and conditions upon which such election is to be
made and the amount so payable (or the manner in which such amount shall be determined);
(15) if other than the entire principal amount thereof, the portion of the principal amount of
any Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to
Section 5.2
;
(16) if the principal amount payable at the Stated Maturity of any Securities of the series
will not be determinable as of any one or more dates prior to the Stated Maturity, the amount which
shall be deemed to be the principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall be due and payable upon
any Maturity other than the Stated Maturity or which shall be deemed to be Outstanding as of any
date prior to the Stated Maturity (or, in any such case, the manner in which such amount deemed to
be the principal amount shall be determined);
(17) if applicable, that the Securities of the series, in whole or any specified part, shall
be defeasible pursuant to
Section 13.2
or
Section 13.3
or both such Sections, or
any other defeasance provisions applicable to any Securities of the series, and, if other than by a
Board Resolution, the manner in which any election by the Company to defease such Securities shall
be evidenced;
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(18) the terms, if any, upon which Securities of the series may be convertible into or
exchanged for other Securities, Common Shares, Preferred Shares, other debt securities, warrants to
purchase any of the foregoing, or other securities of any kind of the Company or any other obligor
or any other property, and the terms and conditions upon which the conversion or exchange shall be
effected, including the initial conversion or exchange price or rate, the conversion or exchange
period, and any other additional provisions;
(19) if applicable, that any Securities of the series shall be issuable in whole or in part in
the form of one or more Global Securities and, in such case, the respective Depositaries for such
Global Securities, the form of any legend or legends which shall be borne by any such Global
Security in addition to or in lieu of that set forth in
Section 2.4
;
(20) any deletions, modifications of or additions to the definitions set forth in
Section
1.1
, the Events of Default which apply to any Securities of the series and any change in the
right of the Trustee or the requisite Holders of such Securities to declare the principal amount
thereof due and payable pursuant to
Section 5.2
;
(21) any addition to, deletion of or change in the covenants set forth in
Article 10
which applies to Securities of the series;
(22) any Authenticating Agents, Paying Agents, Security Registrars or such other agents
necessary in connection with the issuance of the Securities of such series, including, without
limitation, exchange rate agents and calculation agents;
(23) if applicable, the terms of any Mortgage that will be provided for a series of
Securities, including any provisions regarding the circumstances under which collateral may be
released or substituted;
(24) if applicable, the terms of any guaranties for the Securities and any circumstances under
which there may be additional obligors on the Securities;
(25) provisions, if any, granting special rights to the Holders of Securities of the series
upon the occurrence of such events as may be specified;
(26) whether Securities of the series shall be issuable in registered form or bearer form
(registrable or not registrable as to principal, and with or without interest coupons), or both,
and any restrictions applicable to the offering, sale or delivery of bearer securities and the
terms upon which bearer Securities of a series may be exchanged for registered Securities of the
same series and vice versa;
(27) the forms of the Securities of the series;
(28) any terms which may be related to warrants, options or other rights to purchase and sell
securities issued by the Company in connection with, or for the purchase of, Securities of such
series, including whether and under what circumstances the Securities of any series may be used
toward the exercise price of any such warrants, options or other rights;
(29) the subordination, if any, of the Securities of the series;
22
(30) if the Securities of the series will be governed by, and the extent to which such
Securities will be governed by, any law other than the laws of the state of New York;
(31) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture, except as permitted by
Section 9.1(5)
).
All Securities of any one series need not be identical but may vary as may be provided in or
pursuant to the Board Resolution referred to above and (subject to
Section 3.3
) set forth,
or determined in the manner provided, in the Officers Certificate referred to above or in any such
indenture supplemental hereto. All Securities of any one series need not be issued at the same time
and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for
issuances of additional Securities of such series.
Section 3.2
Denominations
.
Except as specified as contemplated by
Section 3.1
, the Securities of each series
shall be issuable only in registered form without coupons. The Securities of such series shall be
issuable only in such denominations as shall be specified as contemplated by
Section 3.1
.
In the absence of any such specified denomination with respect to the Securities of any series, the
Securities of such series shall be issuable in denominations of $1,000 and any integral multiple
thereof. Unless otherwise provided as contemplated by
Section 3.1
with respect to any
series of Securities, any Securities of a series denominated in a currency other than Dollars shall
be issuable in denominations that are the equivalent, as determined by the Company by reference to
the noon buying rate in The City of New York for cable transfers for such currency (
Exchange
Rate
), as such rate is reported or otherwise made available by the Federal Reserve Bank of New
York, on the applicable issue date for such Securities, of $1,000 and any integral multiple
thereof.
Section 3.3
Execution, Authentication, Delivery and Dating
.
The Securities shall be executed on behalf of the Company by its Chairman of the Board, its
Chief Executive Officer, its principal financial officer, its President or one of its Vice
Presidents, and attested by its Treasurer, its Secretary or one of its Assistant Treasurers or
Assistant Secretaries. The signature of any of these officers on the Securities may be manual or
facsimile. Securities bearing the manual or facsimile signatures of individuals who were at any
time the proper officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities.
At any time and from time to time 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; provided, however, that in the case of Securities offered in a Periodic Offering,
the Trustee shall authenticate and deliver such Securities from time to time in accordance with
such other procedures (including, without limitation, the receipt by the Trustee of oral or
electronic instructions from the Company or its duly authorized agents, promptly confirmed in
23
writing) acceptable to the Trustee as may be specified by or pursuant to a Company Order
delivered to the Trustee prior to the time of the first authentication of Securities of such
series. Each Security shall be dated the date of its authentication unless otherwise provided by a
Board Resolution, a supplemental indenture hereto or an Officers Certificate. If the form or terms
of the Securities of the series have been established by or pursuant to one or more Board
Resolutions or any other method permitted by
Sections 2.1
and
3.1
, in
authenticating such Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.1
) shall be fully protected in relying upon, a copy of such Board Resolution, the
Officers Certificate setting forth the terms of the series and an Opinion of Counsel, with such
Opinion of Counsel stating,
(1) if the form or terms of such Securities have been established by or pursuant to Board
Resolution or any other method permitted by
Sections 2.1
and
3.1
, that such form or
terms have been, or in the case of Securities of a series offered in a Periodic Offering will be,
established in conformity with the provisions of this Indenture, subject in the case of Securities
offered in a Periodic Offering, to any conditions specified in such Opinion of Counsel; and
(2) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions, exceptions and qualifications specified in
such Opinion of Counsel, will constitute legal, valid and binding obligations of the Company,
enforceable in accordance with their terms, except as such enforcement is subject to the effect of
(i) bankruptcy, insolvency, fraudulent conveyance, reorganization or other laws relating to or
affecting creditors rights and (ii) general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).
Such Opinion of Counsel need express no opinion as to the enforceability of
Section
6.7
or as to whether a court in the United States would render a money judgment in a currency
other than that of the United States. Notwithstanding the provisions of
Section 3.1
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 3.1
or the Company Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the 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.
Notwithstanding that such form or terms have been so established, the Trustee shall have the
right to decline to authenticate such Securities if, in the written opinion of counsel to the
Trustee (which counsel may be an employee of the Trustee), such action may not lawfully be taken or
if the Trustee in good faith by its board of trustees or trustees, executive committee or a trust
committee of directors, trustees or vice presidents shall determine that such action would expose
the Trustee to personal liability to Holders of any Securities then outstanding.
With respect to Securities of a series offered in a Periodic Offering, the Trustee may rely,
as to the authorization by the Company of any of such Securities, the form and terms thereof and
the legality, validity, binding effect and enforceability thereof, upon the Opinion of Counsel and
24
the other documents delivered pursuant to
Sections 2.1
and
3.1
and this
Section, as applicable, in connection with the first authentication of Securities of such series.
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 or an Authenticating Agent 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 3.9
, 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.
The Company in issuing Securities may use CUSIP numbers (if then generally in use), and if
so, the Trustee may use the CUSIP numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP number printed in the notice or on the Securities, that
reliance may be placed only on the other identification numbers printed on the Securities, and any
such redemption or exchange shall not be affected by any defect or omission of such CUSIP numbers.
The Company will promptly notify the Trustee of any change in CUSIP numbers known to an Officer of
the Company. Neither the Company nor the Trustee shall have any responsibility for any defect in
the CUSIP number that appears on any Security, check, advice of payment or redemption notice, and
any such document may contain a statement to the effect that CUSIP numbers have been assigned by an
independent service for convenience of reference and that neither the Company nor the Trustee shall
be liable for any inaccuracy in such numbers.
Section 3.4
Temporary Securities
.
Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities 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
officers executing such Securities may determine, as evidenced by their execution of such
Securities. All or any portion of the temporary Securities of a series may be Global Securities.
If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. Except in the case of temporary
Securities that are Global Securities, each of which shall be exchanged in accordance with the
provisions thereof, 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
25
Securities of the same series, of any authorized denominations and of like tenor and aggregate
principal amount. 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, except as otherwise specified as contemplated by
Section 3.1
.
Section 3.5
Registration; Registration of Transfer and Exchange
.
The Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any
office or agency to be maintained by the Company in accordance with
Section 9.2
in a Place
of Payment or in such other place or medium as may be specified pursuant to
Section 3.1
a
register for each series of Securities (each register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes 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 of such series and of transfers of
Securities of such series. Unless otherwise contemplated by
Section 3.1
, the Trustee is
hereby appointed
Security Registrar
for the purpose of registering Securities and
transfers of Securities, and for the purpose of maintaining the Security Register in respect
thereof, as herein provided.
Except as set forth in
Section 2.3
or as may be provided pursuant to
Section
3.1
, upon surrender for registration of transfer of any Security of a series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute and deliver
a Company Order requesting the Trustee to authenticate and deliver, 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 like tenor and aggregate
principal amount.
Unless otherwise provided as contemplated by
Section 3.1
, at the option of the Holder,
Securities of any series (other than Global Securities) may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency, and upon payment, if the
Company shall so require, of the charges hereinafter provided. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities that 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, Security Registrar or the Trustee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company, the Security Registrar or
the Trustee, as the case may be, duly executed, by the Holder thereof or its attorney duly
authorized in writing.
26
Unless otherwise provided as contemplated by
Section 3.1
, 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 3.4
,
9.6
or
11.7
not involving any transfer.
Unless otherwise provided as contemplated by
Section 3.1
, if the Securities of any
series (or of any series and specified tenor) are to be redeemed in whole or in part, the Company
shall not be required (A) to issue, register the transfer of or exchange any Securities of that
series (or of that series and specified tenor, as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of redemption of any such
Securities selected for redemption under
Section 11.3
and ending at the close of business
on the day of such mailing, or (B) to register the transfer of or exchange any Security so selected
for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in
part.
Unless otherwise provided as contemplated by
Section 3.1
, the Company shall not be
required to register the transfer or exchange of Securities between a Record Date and the next
succeeding Interest Payment Date.
Section 3.6
Mutilated, Destroyed, Lost and Stolen Securities
.
If any mutilated Security is surrendered to the Trustee, the Company shall execute and deliver
a Company Order requesting the Trustee to authenticate and deliver, 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 upon the Companys request 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.
Notwithstanding the preceding paragraph, 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 3.6
, 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 3.6
in lieu of any
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Security shall be at any time
27
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 3.6
are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.
Section 3.7
Payment of Interest; Interest Rights Preserved
.
Except as otherwise provided as contemplated by
Section 3.1
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 at the office or agency maintained for such purpose pursuant to
Section
9.2
; provided, however, that at the option of the Company, interest on any series of Registered
Securities that bear interest may be paid (i) by check mailed to the address of the Person entitled
thereto as it shall appear on the Security Register of such series (unless, with respect to a
Global Security, the rules of the Depositary require payment of such amount by wire transfer) or
(ii) by wire transfer to an account maintained by the Person entitled thereto as specified in the
Security Register of such series.
Unless otherwise provided as contemplated by
Section 3.1
, any interest on any Security
of any series which is payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called
Defaulted Interest
) shall forthwith cease to be payable to
the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as provided in
clause (1)
or
(2)
below:
(1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Securities of such series (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security of such series and the date of
the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest, which shall be not more than 15
days and not less than 10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be given to each Holder of Securities of such series in the manner set forth in
Section 1.7
, not less than 10 days prior to such Special Record Date. The Trustee may, in
its discretion, in the name and at the expense of the Company, cause a similar notice to be
published at least once in an Authorized Newspaper, but
28
such publication shall not be a condition precedent to the establishment of such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names
the Securities of such series (or their respective Predecessor Securities) are registered at the
close of business on such Special Record Date and shall no longer be payable pursuant to the
following
clause (2)
.
(2) The Company may make payment of any Defaulted Interest on the Securities of any series 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 3.7
, each Security delivered under
this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.
Section 3.8
Persons Deemed Owners
.
Prior to due presentment of 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 3.7
) any interest and any Additional Amounts or other
payments on such Security and for all other purposes whatsoever, whether or not such Security shall
be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall
be affected by notice to the contrary.
Except as otherwise specified as contemplated by
Section 3.1
, none of the Company, the
Trustee or any agent of the Company or the Trustee shall have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial ownership interests
of a Global Security, or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests. Notwithstanding the foregoing, with respect to any Global
Security, nothing herein shall prevent the Company or the Trustee, or any agent of the Company or
the Trustee, from giving effect to any written certification, proxy or other authorization
furnished by any Depositary (or its nominee), as a Holder, with respect to such Global Security or
impair, as between such Depositary and owners of beneficial interests in such Global Security, the
operation of customary practices governing the exercise of the rights of such Depositary (or its
nominee) as Holder of such Global Security.
Section 3.9
Cancellation
.
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
29
has not issued and sold, and all Securities so delivered shall be promptly canceled by the
Trustee. The Security Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture or as otherwise specified as contemplated by
Section 3.1
. On
request of the Company at the time of surrender, the Trustee shall deliver to the Company canceled
Securities held by the Trustee. In the absence of such request, all canceled Securities held by the
Trustee shall be disposed of in accordance with the Trustees customary procedures.
Section 3.10
Computation of Interest
.
Except as otherwise specified as contemplated by
Section 3.1
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.
ARTICLE 4
SATISFACTION AND DISCHARGE
Section 4.1
Satisfaction and Discharge of Indenture
.
This Indenture shall upon Company Request cease to be of further effect with respect to
Securities of or within any series (except as to any surviving rights of registration of transfer
or exchange of such Securities and replacement of such Securities which may have been lost, stolen
or mutilated as 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 Securities, when
(1) either
(A) all such Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided in
Section 3.6
and
(ii)
Securities for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Trustee or the Company and thereafter
repaid to the Company or discharged from such trust, as provided in
Section 10.3
) have been
delivered to the Trustee for cancellation; or
(B) all such Securities 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
30
(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
clause (i)
,
(ii)
or
(iii)
above, has
deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose money
in 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
and any Additional Amounts to the date of such deposit (in the case of Securities which have become
due and payable) or to the Stated Maturity or Redemption Date, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable hereunder by the Company
with respect to the Outstanding Securities of such series;
(3) the Company has complied with any other conditions specified pursuant to
Section
3.1
to be applicable to the Outstanding Securities of such series; and
(4) 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 Securities have been complied with.
If any Outstanding Securities of such series are to be redeemed prior to their Stated
Maturity, whether pursuant to any optional redemption provisions or in accordance with any
mandatory sinking fund requirement, the trust agreement evidencing the trust referred to in
subclause (B)
of
clause (1)
of this
Section 4.1
shall provide therefore and
the Company shall make such arrangements as are satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the Company.
Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under
Section 6.7
, the obligations of the Trustee to any
Authenticating Agent under
Section 6.14
and, if money shall have been deposited with the
Trustee pursuant to
subclause (B)
of
clause (1)
of this
Section 4.1
, the
obligations of the Trustee under
Section 4.2
and the last paragraph of
Section 10.3
shall survive.
Section 4.2
Application of Trust Money
.
Subject to the provisions of the last paragraph of
Section 10.3
, all money deposited
with the Trustee pursuant to
Section 4.1
shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal and any premium and
interest or Additional Amounts for whose payment such money has been deposited with the Trustee.
Section 4.3
Reinstatement
.
If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations
deposited with respect to Securities of any series in accordance with
Section 4.1
by reason
of any legal proceeding or by reason of any order or judgment of any court or
31
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Companys obligations under this Indenture with respect to the Securities of such series and the
Securities of such series shall be revived and reinstated as though no deposit had occurred
pursuant to
Section 4.1
until such time as the Trustee or Paying Agent is permitted to
apply all such money or U.S. Government Obligations in accordance with
Section 4.1
;
provided, however, that if the Company has made any payment of principal of, premium (if any) or
interest on, or any Additional Amounts with respect to, any Securities because of the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities
to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.
ARTICLE 5
REMEDIES
Section 5.1
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), unless it is either inapplicable to a particular series or it is specifically deleted or
modified in the Board Resolution, supplemental indenture, Officers Certificate establishing such
series, or form of Security for such series:
(1) default in the payment of any interest on, or any Additional Amounts with respect to, any
Security of that series when it becomes due and payable, and continuance of such default for a
period of 30 days (unless the entire amount of such payment is deposited by the Company with the
Trustee or with a Paying Agent prior to the expiration of such period of 30 days); or
(2) default in the payment of the principal of or any premium 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, and continuance of such default for a period of 30 days; or
(4) default in the performance, or breach, of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty a default in whose performance or whose breach is
elsewhere in this
Section 5.1
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 60 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by
the Holders of at least 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
32
(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 proceeding 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 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 in the Board
Resolution, supplemental indenture or Officers Certificate establishing that series.
Notwithstanding the foregoing provisions of this
Section 5.1
, if the principal of,
premium (if any) or any interest on, or any Additional Amounts with respect to, any Security is
payable in a currency or currencies (including a composite currency) other than Dollars and such
currency or currencies are not available to the Company for making payment thereof due to the
imposition of exchange controls or other circumstances beyond the control of the Company (a
Conversion Event
), the Company will be entitled to satisfy its obligations to Holders of
the Securities by making such payment in Dollars in an amount equal to the Dollar equivalent of the
amount payable in such other currency, as determined by the Company by reference to the Exchange
Rate, as such Exchange Rate is certified for customs purposes by the Federal Reserve Bank of New
York on the date of such payment, or, if such rate is not then available, on the basis of the most
recently available Exchange Rate. Notwithstanding the foregoing provisions of this
Section
5.1
, any payment made under such circumstances in Dollars where the required payment is in a
currency other than Dollars will not constitute an Event of Default under this Indenture.
Promptly after the occurrence of a Conversion Event with respect to the Securities of any
series, the Company shall give written notice thereof to the Trustee; and the Trustee, promptly
after receipt of such notice, shall give notice thereof in the manner provided in
Section
1.7
to the Holders of such series. Promptly after the making of any payment in Dollars as a
result of a
33
Conversion Event with respect to the Securities of any series, the Company shall give notice
in the manner provided in
Section 1.7
to the Holders of such series, setting forth the
applicable Exchange Rate and describing the calculation of such payments.
Section 5.2
Acceleration of Maturity; Rescission and Annulment
.
Unless the Board Resolution, supplemental indenture or Officers Certificate establishing such
series provides otherwise, if an Event of Default (other than an Event of Default specified in
Section 5.1(5)
or
5.1(6)
) 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 of all the Securities of that series (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of such Securities as may
be specified by the terms thereof) and premium, if any, together with accrued and unpaid interest,
if any, thereon, and Additional Amounts, if any, with respect thereto, to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders),
and upon any such declaration such principal amount (or specified amount) and premium, if any,
together with accrued and unpaid interest, if any, thereon, and Additional Amounts, if any, with
respect thereto, shall become immediately due and payable. Unless the Board Resolution,
supplemental indenture or Officers Certificate establishing such series provides otherwise, if an
Event of Default specified in
Section 5.1(5)
or
5.1(6)
with respect to Securities
of any series at the time Outstanding occurs, the principal amount of all the Securities of that
series (or, if any Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified by the terms thereof) and premium,
if any, together with accrued and unpaid interest, if any, thereon, and Additional Amounts, if any,
with respect thereto, shall automatically, and without any declaration or other action on the part
of the Trustee or any Holder, 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 5
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, and any Additional Amounts with respect to, all Securities of
that series (or of all series, as the case may be),
(B) the principal of or premium (if any) on any Securities of that series (or of all series,
as the case may be) which have become due otherwise than by such declaration of acceleration and
interest thereon at the rate or rates prescribed therefor in such Securities (in the case of
Original Issue Discount Securities, the Securities Yield to Maturity),
(C) to the extent that payment of such interest is lawful, interest upon overdue interest and
any Additional Amounts at the rate or rates prescribed therefor in such
34
Securities (in the case of Original Issue Discount Securities, the Securities Yield to
Maturity), and
(D) all sums paid or advanced by the Trustee hereunder, the compensation, expenses,
disbursements and advances due to Trustee under
Section 6.7
, and all other amounts due
under
Section 6.7
;
(2) all Events of Default with respect to Securities of that series (or of all series, as the
case may be), other than the nonpayment of the principal of Securities of that series (or of all
series, as the case may be) which have become due solely by such declaration of acceleration, have
been cured or waived as provided in
Section 5.13
; and
(3) the rescission would not conflict with any final judgment or decree of a court of
competent jurisdiction.
No such rescission shall affect any subsequent default or impair any right consequent thereon.
Section 5.3
Collection of Indebtedness and Suits for Enforcement by Trustee
.
The Company covenants that if
(1) default is made in the payment of any interest on, or any Additional Amounts with respect
to, any Security of any series when such interest or Additional Amounts shall become 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 on, and Additional Amounts with respect to, 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 or Additional Amounts, at the rate or rates prescribed therefor in such Securities
(or in the case of Original Issue Discount Securities, the Securities Yield to Maturity), 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, and all other amounts due the Trustee under
Section 6.7
.
If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities and collect the
moneys adjudged or deemed 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.
35
In addition, if any other Event of Default with respect to Securities of any series occurs and
is continuing, the Trustee may in its discretion proceed, in its own name and as trustee of an
express trust, to protect and enforce its rights and the rights of the Holders of Securities of
such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.
Section 5.4
Trustee May File Proofs of Claim
.
In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal (or lesser amount in
the case of Original Issue Discount Securities) of the Securities shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal of, premium (if any), interest
on, or any Additional Amounts with respect to, such Securities) shall be entitled and empowered, by
intervention in such proceeding or otherwise,
(1) to file and prove a claim for the whole amount of principal (or lesser amount in the case
of Original Issue Discount Securities) (and premium, if any) and interest and any Additional
Amounts owing and unpaid in respect of the Securities and to file such other papers or documents as
may be necessary or advisable to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and of the Holders allowed in such judicial proceeding, and
(2) to collect and receive any monies 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 6.7
.
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;
provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors or other similar
committee.
Section 5.5
Trustee May Enforce Claims Without Possession of Securities
.
36
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 may be instituted by the Trustee in its
own name as trustee of an express trust.
Section 5.6
Application of Money Collected
.
Any money collected by the Trustee pursuant to this
Article 5
shall be applied and
paid 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 on, or any Additional
Amounts with respect to, the Securities, 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 6.7
in
connection with such series of Securities in respect of which money or other property is
collected;
SECOND: Subject to the terms of any subordination entered into as contemplated by
Section 3.1
, to the payment of the amounts then due and unpaid for principal of and
any premium, if any, and interest on, and any Additional Amounts with respect to, 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, if any, interest on and Additional
Amounts, respectively; and
THIRD: The balance, if any, to the Company or any other Person or Persons entitled
thereto.
To the fullest extent allowed under applicable law, if for the purpose of obtaining judgment
against the Company in any court it is necessary to convert the sum due in respect of the principal
of, premium (if any) or interest on, or any Additional Amounts with respect to, the Securities of
any series (the
Required Currency
) into a currency in which a judgment will be rendered
(the
Judgment Currency
), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the Business Day in The City of New York next
preceding that on which final judgment is given. Neither the Company nor the Trustee shall be
liable for any shortfall nor shall any of them benefit from any windfall in payments to Holders of
Securities under this
Section 5.6
caused by a change in exchange rates between the time the
amount of a judgment against it is calculated as above and the time the Trustee converts the
Judgment Currency into the Required Currency to make payments under this
Section 5.6
to
Holders of Securities, but payment of such judgment shall discharge all amounts owed by the Company
on the claim or claims underlying such judgment.
Section 5.7
Limitation on Suits
.
Subject to
Section 5.8
, 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
37
(1) an Event of Default with respect to such series of Securities shall have occurred and be
continuing and such Holder has previously given written notice to the Trustee of such continuing
Event of Default;
(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 and, if requested, provided 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 (or of all series, as the case may be).
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 to affect, disturb or prejudice the rights of any
other of such Holders, or to obtain or to seek to obtain priority or preference over any other of
such Holders or to enforce any right under this Indenture, except in the manner herein provided and
for the equal and ratable benefit of all of such Holders.
Section 5.8
Right of Holders to Receive Principal, Premium and Interest
.
Notwithstanding any other provision in this Indenture, the right of any Holder of any Security
to receive payment of the principal of and any premium and (subject to
Section 3.7
)
interest on, or any Additional Amounts with respect to, such Security on the Stated Maturity or
Stated 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 after the respective due dates,
shall not be impaired without the consent of such Holder.
Section 5.9
Restoration of Rights and Remedies
.
If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted.
Section 5.10
Rights and Remedies Cumulative
.
Except as otherwise provided in
Section 5.7
or with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section
3.6
, no
38
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 5.11
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
this
Article 5
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 5.12
Control by Holders
.
With respect to Securities of any series, the Holders of a majority in principal amount of the
Outstanding Securities of such 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, relating to or arising under an Event of Default described in
clause
(1)
,
(2)
,
(3)
,
(4)
or
(7)
of
Section 5.1
, and with
respect to all Securities the Holders of a majority in principal amount of all Outstanding
Securities shall have the right to direct the time, method and place of conducting any remedy
available to the Trustee, or exercising any trust or power conferred on the Trustee, relating to or
arising under an Event of Default described in
clause (5)
or
(6)
of
Section
5.1
, provided that in each such case.
(1) the Trustee shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, determines that the action so directed may not lawfully be taken or would
conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer,
determine that the proceedings so directed would involve it in personal liability or be unjustly
prejudicial to the Holders not taking part in such direction, and
(2) the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction or this Indenture.
Section 5.13
Waiver of Past Defaults
.
Subject to
Section 5.8
and
Section 9.2
, the Holders of not less than a
majority in aggregate 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 or Event of Default
described in clause (1), (2), (3), (4) or (7) of
Section 5.1
hereunder with respect to such
series and its consequences, and the Holders of a majority in principal amount of all Outstanding
Securities may on behalf of the Holders of all Securities waive any Event of Default described in
clause (5) or (6) of
Section 5.1
hereunder and its consequences, except a default
39
(1) in the payment of the principal of or any premium or interest on, or any Additional
Amounts with respect to, any Security as and when the same shall become due and payable by the
terms thereof, otherwise than by acceleration (unless such default has been cured as provided
herein), or
(2) in respect of a covenant or provision hereof which under
Article 9
cannot be
modified or amended without the consent of the Holder of each Outstanding Security 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 5.14
Undertaking for Costs
.
All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that 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; provided that the provisions of this
Section
5.14
shall not apply to any suit instituted by the Company, to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the outstanding Securities of any series, or to any suit instituted
by any Holder for the enforcement of the payment of the principal of or interest on any Security on
or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of
redemption, on the redemption date).
ARTICLE 6
THE TRUSTEE
Section 6.1
Certain Duties and Responsibilities
.
(1) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in their
exercise as a prudent individual would exercise or use under the circumstances in the conduct of
his or her own affairs.
(2) Except during the continuance of an Event of Default:
(A) The Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this Indenture
against the Trustee.
(B) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon Officers
Certificates or Opinions of Counsel furnished to the Trustee and
40
conforming to the requirements of this Indenture; however, in the case of any such Officers
Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be
furnished to the Trustee, the Trustee shall examine such Officers Certificates and Opinions of
Counsel to determine whether or not they conform to the requirements of this Indenture (but need
not confirm or investigate the accuracy of any mathematical calculations or other facts stated
therein).
(3) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct or bad faith, except that:
(A) This paragraph does not limit the effect of
clause (2)
of this
Section
6.1
.
(B) The Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.
(C) The Trustee shall not be liable with respect to any action taken, suffered or omitted to
be taken by it with respect to Securities of any series in good faith in accordance with the
direction of the Holders of a majority in principal amount of the Outstanding Securities of such
series relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture
with respect to the Securities of such series.
(4) Every provision of this Indenture that in any way relates to the Trustee is subject to
clauses (1)
,
(2)
and
(3)
of this
Section 6.1
.
(5) The Trustee may refuse to perform any duty or to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of Holder or Holders pursuant to
this Indenture, unless such Holder or Holders shall have offered and, if requested, provided 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.
(6) No provision of this Indenture shall require the Trustee to risk its own funds or
otherwise incur any financial liability in the performance of any of its duties, 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 is not reasonably assured to it.
(7) The Paying Agent, the Security Registrar and any Authenticating Agent shall be entitled to
the protections, immunities and standard of care as are set forth in
clauses (1)
,
(2)
and
(3)
of this
Section 6.1
with respect to the Trustee.
Section 6.2
Notice of Defaults
.
If a default occurs hereunder and is continuing with respect to Securities of any series and
it is known to a Responsible Officer of the Trustee, 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 except in the case of a default in the payment of principal
41
of (or premium, if any) or interest on, or any Additional Amounts with respect to, any
Securities of such series or in the payment of any sinking fund installment, the Trustee shall be
protected in withholding such notice if and so long as the board of trustees, the executive
committee or a trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interests of the holders of
Securities of such series.
Section 6.3
Certain Rights of Trustee
.
Subject to the provisions of
Section 6.1
:
(1) in the absence of bad faith on the part of the Trustee, 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,
coupon, 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;
(2) 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;
(3) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order (unless other evidence is specifically required herein), and
any resolution of the Board of Trustees shall be sufficiently evidenced by a Board Resolution;
(4) 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), in the absence of bad faith on
its part, is entitled to and may rely upon an Officers Certificate;
(5) 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;
(6) 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.
(7) the Trustee shall not be charged with knowledge of any default or Event of Default with
respect to the Securities of any series for which it is acting as Trustee unless either (1) a
Responsible Officer shall have actual knowledge of such default or Event of Default or (2)
42
written notice of such default or Event of Default shall have been given to the Trustee by the
Company or any other obligor on such Securities or by any Holder of such Securities; and
(8) the Trustee shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture.
Section 6.4
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 neither the Trustee nor any
Security Registrar, Paying Agent or Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. Neither the Trustee nor any Security Registrar, Paying Agent or
Authenticating Agent shall be accountable for the use or application by the Company of Securities
or the proceeds thereof.
Section 6.5
May Hold Securities and Act as Trustee under Other Indentures
.
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 6.8
and
6.13
, 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.
Subject to the limitations imposed by the Trust Indenture Act, nothing in this Indenture shall
prohibit the Trustee from becoming and acting as trustee under other indentures under which other
securities, or certificates of interest of participation in other securities, of the Company are
outstanding in the same manner as if it were not Trustee hereunder.
Section 6.6
Money Held in Trust
.
Subject to the provisions of
Sections 10.3
and
13.5
, all moneys received by
the Trustee shall, until used or applied, as provided herein, be held in trust for the purposes for
which they were received. 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 in writing with the
Company. So long as no Event of Default shall have occurred and be continuing, all interest allowed
on any such moneys shall be paid by the Company from time to time upon a Company Order.
Section 6.7
Compensation and Reimbursement
.
The Company shall pay to the Trustee from time to time such reasonable compensation for its
services as the Company and the Trustee may agree in writing from time to time. The Trustees
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred by it in connection with the performance of its duties under
this Indenture, except any such expense, disbursement or advance as may be
43
attributable to its negligence, willful misconduct or bad faith. Such expenses shall include
the reasonable compensation and expenses of the Trustees agents and counsel.
The Company shall indemnify the Trustee for, and hold it harmless against, any and all loss,
liability, damage, claim or expense (including attorneys fees and expenses, and including taxes
other than taxes based upon, measured by or determined by the income of the Trustee), including
without limitation the costs and expenses of defending itself against any third-party claim
(whether asserted by any Holder or any other Person (other than the Company to the extent of any
claim brought by it against the Trustee that establishes a breach by the Trustee in the observance
or performance of its duties under this Indenture)), incurred by it without negligence, willful
misconduct or bad faith arising out of or in connection with its acceptance or administration of
the trust or trusts hereunder, including the performance of its duties or the exercise of its
powers hereunder. With respect to any such claim other than a claim brought by the Company, (i) the
Trustee shall notify the Company promptly of any claim for which it may seek indemnity, (ii) the
Company may at its option defend the claim, in which event the Trustee shall cooperate in the
defense and the Trustee may have one separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel and (iii) the Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. This indemnification shall apply to
officers, directors, employees, shareholders and agents of the Trustee.
To secure the Companys payment obligations in this
Section 6.7
, the Trustee shall
have a lien prior to the Securities of any series on all money or property held or collected by the
Trustee, except that held in trust to pay principal of and interest on, or any Additional Amounts
with respect to, particular Securities of that series.
When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 5.1(5)
or
(6)
occurs, the expenses and the compensation for the services
are intended to constitute expenses of administration under any Bankruptcy Law.
The provisions of this
Section 6.7
and any lien arising hereunder shall survive the
resignation or removal of the Trustee or the discharge of the Companys obligations under this
Indenture and the termination of this Indenture.
Section 6.8
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 conflicting interest or resign, to the
extent and in the manner and with the effect provided by, and subject to the provisions of, the
Trust Indenture Act and this Indenture. To the extent permitted by the Trust Indenture Act, the
Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this
Indenture with respect to Securities of more than one series or any other indenture.
Section 6.9
Eligibility; Disqualification
.
There shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series (which need not be the same Trustee for all series). A Trustee may be
Trustee hereunder for Securities of one or more series. Each Trustee shall be a Person that is
44
eligible pursuant to the Trust Indenture Act to act as such and has (or if the Trustee is a
member of a bank holding company system, its bank holding company has) a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by federal or state (or
the District of Columbia) authority. If any such Person or bank holding company publishes reports
of condition at least annually, pursuant to law or to the requirements of its supervising or
examining authority, then for the purposes of this
Section 6.9
and to the extent permitted
by the Trust Indenture Act, the combined capital and surplus of such Person or bank holding company
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 with respect to the Securities of any series
shall cease to be eligible in accordance with the provisions of this
Section 6.9
, it shall
resign immediately in the manner and with the effect hereinafter specified in this
Article
6
.
The Indenture shall always have a Trustee who satisfies the requirements of Sections
310(a)(1), 310(a)(2) and 310(a)(5) of the Trust Indenture Act.
Section 6.10
Resignation and Removal; Appointment of Successor
.
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 6.11
.
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 6.11
shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may petition at the
expense of the Company any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.
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. If the instrument of acceptance by a successor
Trustee required by
Section 6.11
shall not have been delivered to the removed Trustee
within 30 days after the receipt of such notice of removal, the removed Trustee may petition at the
expense of the Company any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.
If at any time:
(1) the Trustee shall fail to comply with
Section 6.8
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 6.9
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
45
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, (A) the Company by a Board Resolution may remove the Trustee with respect
to all Securities, or (B) subject to
Section 5.14
, 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.
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 such successor Trustee or Trustees shall comply with the applicable requirements of
Section 6.11
. If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall
be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities
of such series delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of
Section 6.11
, become the successor Trustee with respect to the
Securities of such series and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders and accepted appointment in the manner required by
Section 6.11
, the retiring Trustee may petition, or any Holder who has been a bona fide
Holder of a Security of such series for at least six months may petition, on behalf of himself and
all others similarly situated, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.
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 1.7
. Each notice shall include the name of the successor Trustee with respect to
the Securities of such series and the address of its Corporate Trust Office.
Section 6.11
Acceptance of Appointment by Successor
.
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
46
retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.
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 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.
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 the first or second preceding paragraph, as the case may be.
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 6
.
Section 6.12
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 or acquiring all or substantially
all the corporate trust business of the Trustee (including the administration of the trust created
by this Indenture), 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
47
successor by merger, conversion or consolidation to, or by succession to or acquisition of all
or substantially all of the corporate trust business of, such successor Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.
Section 6.13
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) as provided in the Trust Indenture Act, 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 6.14
Appointment of Authenticating Agent
.
The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be 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 3.6
, 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, except as other specified as contemplated by
Section 3.1
, shall at all times
be a bank or trust company or 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 (or if the Authenticating Agent is a member of a bank holding
company system, its bank holding company has) a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State (or the District of
Columbia) 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 6.14
, 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 6.14
, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this
Section 6.14
.
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 or acquiring 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
6.14
, without the execution or filing of any paper or any further act on the part of the
Trustee or the Authenticating Agent.
48
An Authenticating Agent for any series of Securities may resign at any time by giving written
notice thereof to the Trustee for such series and to the Company. The Trustee for any series of
Securities may at any time terminate the agency of an Authenticating Agent by giving written notice
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 for such series
may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall
give notice of such appointment in the manner provided in
Section 1.7
to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve. 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 6.14
.
The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this
Section 6.14
, and the Trustee shall be entitled to
be reimbursed for such payments, subject to the provisions of
Section 6.7
.
If an appointment with respect to one or more series is made pursuant to this
Section
6.14
, the Securities of such series may have endorsed thereon, in lieu of 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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[TRUSTEE], as Trustee
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By:
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As Authenticating Agent
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By:
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Authorized Officer
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Notwithstanding any provision of this
Section 6.14
to the contrary, if at any time any
Authenticating Agent appointed hereunder with respect to any series of Securities shall not also be
acting as the Security Registrar hereunder with respect to any series of Securities, then, in
addition to all other duties of an Authenticating Agent hereunder, such Authenticating Agent shall
also be obligated: (i) to furnish to the Security Registrar promptly all information necessary to
enable the Security Registrar to maintain at all times an accurate and current Security Register;
and (ii) prior to authenticating any Security denominated in a foreign currency, to ascertain from
the Company the units of such foreign currency that are required to be determined by the Company
pursuant to
Section 3.2
.
49
ARTICLE 7
HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 7.1
Company to Furnish Trustee Names and Addresses of Holders
.
The Company will furnish or cause to be furnished to the Trustee
(1) not later than 15 days after the Regular Record Date for each respective series of
Securities, or if there is no Regular Record Date for such series of Securities, semi-annually on
January 1 and July 1, a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities of each series as of such date, as the case may be, and
(2) 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;
provided that no such list need be furnished by the Company to the Trustee so long as the Trustee
is acting as Security Registrar.
Section 7.2
Preservation of Information; Communications to Holders
.
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 7.1
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
7.1
upon receipt of a new list so furnished.
The rights of 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.
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 7.3
Reports by Trustee
.
The Trustee shall transmit to Holders and any other required Persons 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.
As promptly as practicable after each January 1 beginning with the January 1 following the
date of this Indenture, and in any event prior to March 1 in each year, the Trustee shall mail to
each Holder a brief report dated as of December 31 of the prior year if and to the extent
50
required by Section 313(a) of the Trust Indenture Act. The Trustee shall also comply with
Section 313(b) of the Trust Indenture Act.
A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when any Securities are listed on any stock
exchange.
Section 7.4
Reports by Company
.
The Company shall file with the Trustee and the Commission, and transmit to Holders and any
other required Persons within 30 days after the filing with the Trustee, 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 the Trust Indenture 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 30 days after the
same is so required to be filed with the Commission.
ARTICLE 8
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
Section 8.1
Company May Consolidate, etc., Only on Certain Terms
.
The Company may not merge or consolidate with or into any other Person, in a transaction in
which it is not the surviving Person, or sell, convey, transfer, lease or otherwise dispose of all
or substantially all of its assets to any Person, unless (i) the surviving or transferee Person is
organized and existing under the laws of the United States or a State thereof or the District of
Columbia and such Person expressly assumes by supplemental indenture all the obligations of the
Company under the Securities and under this Indenture, (ii) immediately thereafter, giving effect
to such merger or consolidation, or such sale, conveyance, transfer or other disposition, no
default or Event of Default shall have occurred and be continuing and (iii) the Company shall have
delivered to the Trustee an Officers Certificate and an Opinion of Counsel each stating that such
merger, consolidation, sale, conveyance, transfer, lease or other disposition complies with this
Article 8
and that all conditions precedent herein provided for relating to such
transaction have been complied with.
Section 8.2
Successor Substituted
.
Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the properties and assets of the
Company in accordance with
Section 8.1
, the successor Person formed by such consolidation
or into which the Company is merged or to which such sale, 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.
51
ARTICLE 9
SUPPLEMENTAL INDENTURES
Section 9.1
Supplemental Indentures Without Consent of Holders
.
Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto for any of the following purposes:
(1) to evidence the succession of another Person to the Company, or successive successions,
and the assumption by any such successor of the covenants and obligations of the Company herein and
in the Securities in compliance with
Article 8
; or
(2) to add to the covenants of the Company for the benefit of the Holders of any one or more
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), to convey, transfer, assign, mortgage or pledge any property to or with the Trustee or
otherwise secure any series of the Securities, including provisions regarding the circumstances
under which collateral may be released or substituted, to surrender any right or power herein
conferred upon the Company or to comply with any requirement of the Commission or otherwise in
connection with the qualification of this Indenture or any supplemental indenture under the Trust
Indenture Act; or
(3) to add any additional Events of Default for the benefit of the Holders of any one or more
series of Securities (and if such additional Events of Default are to be for the benefit of less
than all series of Securities, stating that such additional Events of Default are expressly being
included solely for the benefit of such series); or
(4) to add to 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 global form or 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 (A) shall
neither (i) apply to any Outstanding Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision, or (ii) modify the rights of
any Holder of any Outstanding Security with respect to such provision, or (B) shall become
effective when there is no Security then Outstanding; or
(6) to add or provide for a guaranty or guarantees of the Securities or additional obligors on
the Securities; or
(7) to establish the form or terms of Securities of any series as permitted by
Sections
2.1
and
3.1
; or
52
(8) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 6.11
; or
(9) to correct or supplement any provision herein which may be defective or inconsistent with
any other provision herein, to cure any ambiguity or omission, to correct any mistake, or to
conform to any prospectus pursuant to which Securities of any series were offered; or
(10) to make any other provisions with respect to matters or questions arising under this
Indenture, provided such action shall not adversely affect the rights of any Holder of Securities
of any series; or
(11) to make any change that does not adversely affect the rights of any Holder.
Section 9.2
Supplemental Indentures with Consent of Holders
.
With the consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture (acting as one class), 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 any indenture supplemental hereto 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 the
date fixed for payment of interest on or any sinking fund payment with respect to, any Security, or
reduce the principal amount thereof or the rate of interest thereon, any Additional Amounts with
respect thereto or any premium payable upon the redemption thereof, or change any obligation of the
Company to pay Additional Amounts (except as contemplated by
Section 8.1
and permitted by
clause (1)
of
Section 9.1
), or reduce the amount of the principal of an Original
Issue Discount Security or any other Security which would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to
Section 5.2
, or change any Place of
Payment where, or the coin or currency or currencies (including composite currencies) in which any
Security or any premium or interest thereon or Additional Amounts with respect thereto 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
53
this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture, or
(3) modify any of the provisions of this
Section 9.2
,
Section 5.13
or
Section 10.8
, except to increase any such percentage or to provide with respect to any
particular series the right to condition the effectiveness of any supplemental indenture as to that
series on the consent of the Holders of a specified percentage of the aggregate principal amount of
Outstanding Securities of such series (which provision may be made pursuant to
Section 3.1
without the consent of any Holder) 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 9.2
and
Section 10.8
, or the deletion of this proviso, in
accordance with the requirements of
Sections 6.11
and
9.1(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.
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 9.3
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
Sections 6.1
and
6.3
) shall
be fully protected in relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not
be obligated to, enter into any such supplemental indenture which affects the Trustees own rights,
duties, immunities or liabilities under this Indenture or otherwise.
Section 9.4
Effect of Supplemental Indentures
.
Upon the execution of any supplemental indenture under this
Article 9
, 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; provided that if such supplemental
indenture makes any of the changes described in
clauses (1)
through
(3)
of the
first proviso to
Section 9.2
, such supplemental indenture shall bind each Holder of a
Security who has consented to it and every subsequent Holder of such Security or any part thereof.
Section 9.5
Conformity with Trust Indenture Act
.
54
Every supplemental indenture executed pursuant to this
Article 9
shall conform to the
requirements of the Trust Indenture Act.
Section 9.6
Reference in Securities to Supplemental Indentures
.
Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this
Article 9
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 10
COVENANTS
Section 10.1
Payment of Principal, Premium and Interest
.
The Company covenants and agrees for the benefit of the Holders of each series of Securities
that it will duly and punctually pay the principal of and any premium and interest on, and any
Additional Amounts with respect to, the Securities of that series in accordance with the terms of
the Securities and this Indenture.
Section 10.2
Maintenance of Office or Agency
.
The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of any such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands. Unless otherwise provided in a
supplemental indenture or pursuant to
Section 3.1
hereof, the Place of Payment for any
series of Securities shall be the Corporate Trust Office of the Trustee.
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 10.3
Money for Securities Payments to be Held in Trust
.
55
If the Company, any Subsidiary or any of their respective Affiliates shall at any time act as
Paying Agent with respect to any series of Securities, such Paying Agent will, on or before each
due date of the principal of or any premium or interest on, or any Additional Amounts with respect
to, 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, or any
Additional Amounts, 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, on or prior to each due date of the principal of or any premium or interest on, or Additional
Amounts with respect to, 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 so to act.
The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this
Section 10.3
, that such Paying Agent will (1)
comply with the provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2)
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, 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 with respect to one or more series of Securities, 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, in
trust for the payment of the principal of or any premium or interest on, or any Additional Amounts
with respect to, any Security of any series and remaining unclaimed for a period ending on the
earlier of the date that is ten Business Days prior to the date such money would escheat to the
State or two years after such principal, premium or interest or Additional Amount 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 an Authorized Newspaper in The Borough of Manhattan, The City of New York and in such
other Authorized Newspapers as the Trustee shall deem appropriate, notice that such money remains
unclaimed and that, after a date
56
specified herein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will, unless otherwise required by mandatory
provisions of applicable escheat, or abandoned or unclaimed property law, be repaid to the Company.
Section 10.4
Statement by Officers as to Default
.
At any time at which there are Outstanding Securities of any series issued under this
Indenture, 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 complying with Section
314(a)(4) of the Trust Indenture Act and stating that a review of the activities of the Company
during such year and of performance under this Indenture has been made under the supervision of the
signers thereof and stating whether or not to the best knowledge of the signers thereof, based upon
such review, 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. One of the officers signing the
Officers Certificate delivered pursuant to this
Section 10.05
shall be the principal
executive, financial or accounting officer of the Company.
Section 10.5
Existence
.
Subject to
Article 8
, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence.
Section 10.6
All Securities to be Equally and Ratably Secured
.
Unless specified otherwise by the Company pursuant to
Section 3.1
with respect to any
series, the Company will not itself secure Securities of any one or more series with any Mortgage,
without effectively providing that the Securities of every other series shall be secured equally
and ratably by such Mortgage.
Section 10.7
Maintenance of Properties
.
The Company will cause all properties used or useful in the conduct of its business to be
maintained and kept in good condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as, and to the extent, in the judgment of the Company may be necessary or
appropriate in connection with its business; provided, however, that nothing in this Section shall
prevent the Company from discontinuing the operation or maintenance of any of such properties if
such discontinuance is, in the judgment of the Company, desirable in the conduct of its business
and not disadvantageous in any material respect to the Holders.
Section 10.8
Payment of Taxes and Other Claims
.
The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or upon the income, profits or property of the Company, and (2) all lawful
57
claims for labor, materials and supplies which, if unpaid, might by law become a lien upon the
property of the Company; provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or claim (i) whose
amount, applicability or validity is being contested in good faith by appropriate proceedings or
(ii) if the failure to pay or discharge would not have a material adverse effect on the assets,
business, operations, properties or financial condition of the Company and its Subsidiaries, taken
as a whole.
Section 10.9
Waiver of Certain Covenants
.
Except as otherwise specified as contemplated by
Section 3.1
for Securities of such
series, the Company may, with respect to the Securities of any series, omit in any particular
instance to comply with any term, provision or condition set forth in any covenant provided
pursuant to
Sections 3.1(21)
,
9.1(2)
,
8.1
,
10.4
,
10.5
,
10.6
,
10.7
or
10.8
for the benefit of the Holders of such series if before
or after the time for such compliance the Holders of at least a 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.
Section 10.10
Additional Amounts
.
If the Securities of a series expressly provide for the payment of Additional Amounts, the
Company will pay to the Holder of any Security of such series Additional Amounts as expressly
provided therein. Whenever in this Indenture there is mentioned, in any context, the payment of the
principal of, or premium (if any) or interest on any Security of any series or the net proceeds
received from the sale or exchange of any Security of any series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided for in this
Section 10.10
to
the extent that, in such context, Additional Amounts are, were or would be payable in respect
thereof pursuant to the provisions of this
Section 10.10
and express mention of the payment
of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not made.
If the Securities of a series provide for the payment of Additional Amounts, at least 10 days
prior to the first Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to Maturity, the first day on which a
payment of principal and any premium is made), and at least 10 days prior to each date of payment
of principal and any premium or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers Certificate, the Company shall furnish the Trustee and
the Companys principal Paying Agent or Paying Agents, if other than the Trustee, with an Officers
Certificate instructing the Trustee and such Paying Agent or Paying Agents whether such payment of
principal of and any premium or interest on the Securities of that series shall be made to Holders
of Securities of that series who are United States Aliens without withholding for or on account of
any tax, assessment or other governmental charge described in the Securities of that series. If any
such withholding shall be required, then such Officers Certificate shall specify by
58
country the amount, if any, required to be withheld on such payments to such Holders of
Securities and the Company will pay to such Paying Agent the Additional Amounts required by this
Section 10.10
. The Company covenants to indemnify the Trustee and any Paying Agent for, and
to hold them harmless against any loss, liability or expense reasonably incurred without
negligence, willful misconduct or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers Certificate furnished pursuant
to this
Section 10.10
.
ARTICLE 11
REDEMPTION OF SECURITIES
Section 11.1
Applicability of Article
.
Securities of any series that are redeemable in whole or in part before their Stated Maturity
shall be redeemable in accordance with their terms and (except as otherwise specified as
contemplated by
Section 3.1
for such Securities) in accordance with this
Article
11
.
Section 11.2
Election to Redeem; Notice to Trustee
.
The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by
Section 3.1
for such Securities. In case
of any redemption at the election of the Company of less than all the Securities of any series
(including any such redemption affecting only a single Security), the Company shall, at least 45
days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the principal amount
of Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to
be redeemed. In the case of any redemption of Securities (i) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or elsewhere in this
Indenture or (ii) pursuant to an election of the Company which is subject to a condition specified
in the terms of such Securities, the Company shall furnish the Trustee with an Officers
Certificate evidencing compliance with such restriction or condition.
Section 11.3
Selection by Trustee of Securities to Be Redeemed
.
If less than all the Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed or unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected not more than 45 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not
previously called for redemption, on a pro-rata basis, or in the Trustees discretion, by lot, or
by such other method as the Trustee shall deem fair and appropriate, provided that the unredeemed
portion of the principal amount of any Security shall be in an authorized denomination (which shall
not be less than the minimum authorized denomination) for such Security.
If any Security selected for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed (so far as may be) to be the portion selected for redemption.
59
The Trustee shall promptly notify the Company and the Security Registrar in writing of the
Securities selected for redemption as aforesaid and, in case of any Securities selected for partial
redemption as aforesaid, 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 11.4
Notice of Redemption
.
Notice of redemption shall be given by first-class mail, postage prepaid, mailed not fewer
than 30 nor more than 90 days prior to the Redemption Date, unless a shorter period is specified in
the Securities to be redeemed, to each Holder of Securities to be redeemed, at its address
appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price (including accrued interest, if any, to be paid),
(3) if less than all the Outstanding Securities of any series consisting of more than a single
Security are to be redeemed, the identification (and, in the case of partial redemption of any such
Securities, the principal amounts) of the particular Securities to be redeemed and, if less than
all the Outstanding Securities of any series consisting of a single Security are to be redeemed,
the principal amount of the particular Security to be redeemed,
(4) in case any Security is to be redeemed in part only, that on and after the Redemption
Date, upon surrender of such Security, the Holder of such Security will receive, without charge, a
new Security or Securities of authorized denominations for the principal amount thereof remaining
unredeemed;
(5) 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,
(6) the place or places where each such Security is to be surrendered for payment of the
Redemption Price,
(7) if applicable, the conversion price, the date on which the right to convert the principal
of the Securities or the portions thereof to be redeemed will terminate, and the place or places
where such Securities may be surrendered for conversion,
(8) that the redemption is for a sinking fund, if such is the case, and
(9) the CUSIP number or numbers and/or common codes of the Security being redeemed.
60
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, provided that the Company shall have prepared and provided to the Trustee the form of
such notice, or, if acceptable to the Trustee, provided sufficient information to enable the
Trustee to prepare such notice, in each case on a timely basis.
Section 11.5
Deposit of Redemption Price
.
On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in
Section 10.3
) 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.
If any Security called for redemption is converted, any money deposited with the Trustee or
with a Paying Agent or so segregated and held in trust for the redemption of such Security shall
(subject to any right of any Holder of such Security to receive interest thereon) be paid to the
Company on Company Request, or if then held by the Company, shall be discharged from such trust.
Section 11.6
Securities Payable on Redemption Date
.
Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest (and any Additional Amounts) to the Redemption
Date; provided, however, that, unless otherwise specified as contemplated by
Section 3.1
,
installments of interest whose Stated Maturity is on or prior to the Redemption Date will be
payable to the Holders of such Securities, or one or more Predecessor Securities, registered as
such at the close of business on the relevant Record Dates according to their terms and the
provisions of
Section 3.7
.
If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security or, in the case of Original Issue Discount
Securities, the Securities Yield to Maturity.
Section 11.7
Securities Redeemed in Part
.
Any Security which is to be redeemed only in part 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 its 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 Stated Maturity and of like tenor, of
61
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.
Unless otherwise specified as contemplated by
Section 3.1
, the Company and any
Affiliate of the Company may at any time purchase or otherwise acquire Securities in the open
market or by private agreement. Such acquisition shall not operate as or be deemed for any purpose
to be a redemption of the indebtedness represented by such Securities. Any Securities purchased or
acquired by the Company may be delivered to the Trustee and, upon such delivery, the indebtedness
represented thereby shall be deemed to be satisfied.
Section 3. 9
shall apply to all
Securities so delivered.
ARTICLE 12
SINKING FUNDS
Section 12.1
Applicability of Article
.
The provisions of this
Article 12
shall be applicable to any sinking fund for the
retirement of Securities of any series except as otherwise specified as contemplated by
Section
3.1
for such Securities.
The minimum amount of any sinking fund payment provided for by the terms of any Securities 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 such Securities is herein referred to as an
optional sinking fund payment
. Unless otherwise provided for by the terms of any
Securities, the cash amount of any sinking fund payment may be subject to reduction as provided in
Section 12.2
. Each sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.
Section 12.2
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 any Securities of such series required to be made pursuant to the terms of such
Securities as and to the extent provided for by the terms of such Securities; provided that the
Securities to be so credited have not been previously so credited. The Securities to be so credited
shall be received and credited for such purpose by the Trustee at the Redemption Price, as
specified in the Securities so to be redeemed, for redemption through operation of the sinking fund
and the amount of such sinking fund payment shall be reduced accordingly.
Section 12.3
Redemption of Securities for Sinking Fund
.
Not fewer than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to
each sinking fund payment date for any Securities, the Company will deliver to the Trustee an
Officers Certificate specifying the amount of the next ensuing sinking fund payment for such
62
Securities pursuant to the terms of such Securities, 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 pursuant to
Section 12.2
and will also deliver to the
Trustee any Securities to be so delivered. Not fewer than 30 days prior to 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 11.3
and cause notice of the redemption thereof to
be given in the name of and at the expense of the Company in the manner provided in
Section
11.4
. Such notice having been duly given, the redemption of such Securities shall be made upon
the terms and in the manner stated in
Sections 11.6
and
11.7
.
ARTICLE 13
DEFEASANCE AND COVENANT DEFEASANCE
Section 13.1
Companys Option to Effect Defeasance or Covenant Defeasance
.
The Company may elect, at its option at any time, to have
Section 13.2
or
Section
13.3
applied to any Securities or any series of Securities, as the case may be, designated
pursuant to
Section 3.1
as being defeasible pursuant to such
Section 13.2
or
13.3
, in accordance with any applicable requirements provided pursuant to
Section
3.1
and upon compliance with the conditions set forth below in this
Article 13
. Any
such election shall be evidenced by a Board Resolution or in another manner specified as
contemplated by
Section 3.1
for such Securities.
Section 13.2
Defeasance and Discharge
.
Upon the Companys exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations with respect to such Securities as provided in this Section on
and after the date the conditions set forth in
Section 13.4
are satisfied (hereinafter
called
Defeasance
). For this purpose, such Defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by such Securities and to
have satisfied all its other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following which shall survive until otherwise
terminated or discharged hereunder:
(1) the rights of Holders of such Securities to receive, solely from the trust fund described
in
Section 13.4
and as more fully set forth in such Section, payments in respect of the
principal of and any premium and interest on, or any Additional Amounts with respect to, such
Securities when payments are due,
(2) the Companys obligations with respect to such Securities under
Sections 3.4
,
3.5
,
3.6
,
10.2
and
10.3
,
(3) the rights, powers, trusts, duties and immunities of the Trustee hereunder, and
(4) this
Article 13
.
63
Subject to compliance with this
Article 13
, the Company may exercise its option (if any) to
have this Section applied to any Securities notwithstanding the prior exercise of its option (if
any) to have
Section 13.3
applied to such Securities.
Section 13.3
Covenant Defeasance
.
Upon the Companys exercise of its option (if any) to have this
Section 13.3
applied
to any Securities or any series of Securities, as the case may be,
(1) the Company shall be released from their obligations under
Sections 8.1
,
10.4
,
10.5
.
10.6
,
10.7
or
10.8
and any covenants provided
pursuant to
Sections 3.1(21)
or
9.1(2)
for the benefit of the Holders of such
Securities and
(2) the occurrence of any event specified in
Section 5.1(4)
(with respect to any of
Sections 8.1
,
10.4
,
10.5
.
10.6
,
10.7
or
10.8
and
any such covenants provided pursuant to
Sections 3.1(21)
or
9.1(2)
) and the
occurrence of any other Event of Default specified pursuant to
Section 3.1
or
Section
9.1(3)
shall be deemed not to be or result in an Event of Default,
in each case with respect to such Securities or any series of Securities as provided in this
Section 13.3
on and after the date the conditions set forth in
Section 13.4
are
satisfied (hereinafter called
Covenant Defeasance
). For this purpose, such Covenant
Defeasance means that, with respect to such Securities, the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set forth in any such
specified Section or such other covenant (to the extent so specified in the case of
Section
5.1(4)
and the occurrence of any Event of Default specified pursuant to
Section 3.1
or
Section 9.1(3)
), whether directly or indirectly by reason of any reference elsewhere herein
to any such Section or such other covenant or by reason of any reference in any such Section or
such other covenant to any other provision herein or in any other document, but the remainder of
this Indenture and such Securities shall be unaffected thereby.
Section 13.4
Conditions to Defeasance or Covenant Defeasance
.
The following shall be the conditions to the application of
Section 13.2
or
Section 13.3
to any Securities or any series of Securities, as the case may be:
(1) The Company shall have deposited or caused to be deposited irrevocably with the Trustee
(or another trustee which satisfies the requirements contemplated by
Section 6.9
and agrees
to comply with the provisions of this Article applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefits of the Holders of such Securities,
(A) in the case of Securities of a series denominated in currency of the United States of
America,
(i) cash in currency of the United States of America in an amount, or
64
(ii) U.S. Government Obligations which through the scheduled payment of principal and interest
in respect thereof in accordance with their terms will provide, not later than one day before the
due date of any payment, an amount in cash, or
(iii) a combination thereof, or
(B) in the case of Securities of a series denominated in currency other than that of the
United States of America,
(i) cash in the currency in which such series of Securities is denominated in an amount, or
(ii) Foreign Government Obligations which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not later than one day
before the due date of any payment, an amount in cash, or
(iii) a combination thereof,
in each case sufficient, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay and
discharge, and which shall be applied by the Trustee (or any such other qualifying trustee) to pay
and discharge, the principal of and any premium and interest on such Securities on the respective
Stated Maturities, in accordance with the terms of this Indenture and such Securities.
(2) For Securities denominated in United States dollars, in the event of an election to have
Section 13.2
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that
(A) the Company has received from, or there has been published by, the Internal Revenue
Service a ruling or
(B) since the date of this instrument, there has been a change in the applicable Federal
income tax law,
in either case
clause (A)
or
(B)
to the effect that, and based thereon such opinion
shall confirm that, the Holders of such Securities will not recognize gain or loss for Federal
income tax purposes as a result of the deposit, Defeasance and discharge to be effected with
respect to such Securities and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit, Defeasance and discharge
were not to occur.
(3) For Securities denominated in United States dollars, in the event of an election to have
Section 13.3
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Securities will not recognize gain or loss for Federal income tax purposes as a result of the
deposit and Covenant Defeasance to be effected with respect to such Securities and will be subject
to Federal income tax on the same amount, in the same manner and at the same times as would be the
case if such deposit and Covenant Defeasance were not to occur.
65
(4) The Company shall have delivered to the Trustee an Officers Certificate to the effect
that neither such Securities nor any other Securities of the same series, if then listed on any
securities exchange, will be delisted as a result of such deposit.
(5) No event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to such Securities or any other Securities shall have occurred and be
continuing at the time of such deposit or, with regard to any such event specified in
Sections
5.1(5)
and
(6)
, at any time on or prior to the 90th day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until after such 90th day).
(6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act (assuming all Securities are in default
within the meaning of such Act).
(7) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or instrument to which the
Company is a party or by which it is bound.
(8) Such Defeasance or Covenant Defeasance shall not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act unless
such trust shall be registered under such Act or exempt from registration thereunder.
(9) The Company shall have delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.
Section 13.5
Deposited Money, U. S. Government Obligations and Foreign Government
Obligations to be Held in Trust; Miscellaneous Provisions
.
Subject to the provisions of the last paragraph of
Section 10.3
, all money, U.S.
Government Obligations and Foreign Government Obligations (including the proceeds thereof)
deposited with the Trustee or other qualifying trustee (solely for purposes of this
Section
13.5
and
Section 13.6
, the Trustee and any such other trustee are referred to
collectively as the
Trustee
) pursuant to
Section 13.4
in respect of any
Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of
such Securities and this Indenture, to the payment, either directly or through any such Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Holders of such Securities, of all sums due and to become due thereon in respect of principal and
any premium and interest, but money so held in trust need not be segregated from other funds except
to the extent required by law. The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the U.S. Government Obligations or Foreign
Government Obligations deposited pursuant to
Section 13.4
or the principal and interest
received in respect thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of Outstanding Securities. Anything in this
Article 13
to the
contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon
Company Request any money, U.S. Government Obligations or Foreign Government Obligations held by it
as provided in
Section 13.4
with
66
respect to any Securities which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to effect the Defeasance
or Covenant Defeasance, as the case may be, with respect to such Securities.
Section 13.6
Reinstatement
.
If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article 13
with respect to any Securities by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, then
the obligations under this Indenture and such Securities from which the Company has been discharged
or released pursuant to
Section 13.2
or
13.3
shall be revived and reinstated as
though no deposit had occurred pursuant to this
Article 13
with respect to such Securities,
until such time as the Trustee or Paying Agent is permitted to apply all money held in trust
pursuant to
Section 13.5
with respect to such Securities in accordance with this
Article 13
; provided, however, that if the Company makes any payment of principal of or any
premium or interest on any such Security following such reinstatement of its obligations, the
Company shall be subrogated to the rights (if any) of the Holders of such Securities to receive
such payment from the money so held in trust.
[signature page follows]
67
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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ENTERTAINMENT PROPERTIES TRUST
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By:
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Title:
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[TRUSTEE]
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By:
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Title:
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68
EXHIBIT 4.2
INDENTURE
BETWEEN
ENTERTAINMENT PROPERTIES TRUST
AND
,
AS TRUSTEE
DATED AS OF
, 200__
SUBORDINATED DEBT SECURITIES
(Issuable in Series)
TABLE OF CONTENTS
ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
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Section 1.1
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Definitions
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1
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Section 1.2
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Incorporation by Reference of Trust Indenture Act
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9
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Section 1.3
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Compliance Certificates and Opinions
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10
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Section 1.4
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Form of Documents Delivered to Trustee
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10
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Section 1.5
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Acts of Holders; Record Dates
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11
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Section 1.6
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Notices, etc., to Trustee and Company
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13
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Section 1.7
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Notice to Holders; Waiver
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13
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Section 1.8
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Conflict with Trust Indenture Act
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14
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Section 1.9
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Effect of Headings and Table of Contents
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14
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Section 1.10
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Successors and Assigns
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14
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Section 1.11
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Separability Clause
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14
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Section 1.12
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Benefits of Indenture
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14
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Section 1.13
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Governing Law
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15
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Section 1.14
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Legal Holidays
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15
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Section 1.15
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Indenture and Securities Solely Corporate Obligations
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15
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Section 1.16
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Indenture May be Executed in Counterparts
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16
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ARTICLE 2
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SECURITY FORMS
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Section 2.1
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Forms Generally
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16
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Section 2.2
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Form of Trustees Certificate of Authentication
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16
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Section 2.3
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Global Securities
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17
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Section 2.4
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Form of Legend for Global Securities
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19
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ARTICLE 3
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THE SECURITIES
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Section 3.1
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Amount Unlimited; Issuable in Series
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19
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Section 3.2
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Denominations
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23
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Section 3.3
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Execution, Authentication, Delivery and Dating
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23
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Section 3.4
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Temporary Securities
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25
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Section 3.5
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Registration; Registration of Transfer and Exchange
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26
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Section 3.6
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Mutilated, Destroyed, Lost and Stolen Securities
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27
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Section 3.7
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Payment of Interest; Interest Rights Preserved
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28
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Section 3.8
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Persons Deemed Owners
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29
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i
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Section 3.9
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Cancellation
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30
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Section 3.10
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Computation of Interest
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30
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ARTICLE 4
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SATISFACTION AND DISCHARGE
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Section 4.1
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Satisfaction and Discharge of Indenture
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30
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Section 4.2
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Application of Trust Money
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31
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Section 4.3
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Reinstatement
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32
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ARTICLE 5
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REMEDIES
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Section 5.1
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Events of Default
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32
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Section 5.2
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Acceleration of Maturity; Rescission and Annulment
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34
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Section 5.3
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Collection of Indebtedness and Suits for Enforcement by Trustee
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35
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Section 5.4
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Trustee May File Proofs of Claim
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36
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Section 5.5
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Trustee May Enforce Claims Without Possession of Securities
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37
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Section 5.6
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Application of Money Collected
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37
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Section 5.7
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Limitation on Suits
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38
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Section 5.8
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Right of Holders to Receive Principal, Premium and Interest
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38
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Section 5.9
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Restoration of Rights and Remedies
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38
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Section 5.10
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Rights and Remedies Cumulative
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39
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Section 5.11
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Delay or Omission Not Waiver
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39
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Section 5.12
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Control by Holders
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39
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Section 5.13
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Waiver of Past Defaults
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39
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Section 5.14
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Undertaking for Costs
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40
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ARTICLE 6
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THE TRUSTEE
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Section 6.1
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Certain Duties and Responsibilities
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40
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Section 6.2
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Notice of Defaults
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42
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Section 6.3
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Certain Rights of Trustee
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42
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Section 6.4
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Not Responsible for Recitals or Issuance of Securities
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43
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Section 6.5
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May Hold Securities and Act as Trustee under Other Indentures
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43
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Section 6.6
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Money Held in Trust
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43
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Section 6.7
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Compensation and Reimbursement
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43
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Section 6.8
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Conflicting Interests
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44
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Section 6.9
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Eligibility; Disqualification
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45
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Section 6.10
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Resignation and Removal; Appointment of Successor
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45
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Section 6.11
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Acceptance of Appointment by Successor
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46
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ii
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Section 6.12
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Merger, Conversion, Consolidation or Succession to Business
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47
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Section 6.13
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Preferential Collection of Claims Against Company
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48
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Section 6.14
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Appointment of Authenticating Agent
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48
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ARTICLE 7
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HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
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Section 7.1
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Company to Furnish Trustee Names and Addresses of Holders
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50
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Section 7.2
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Preservation of Information; Communications to Holders
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50
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Section 7.3
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Reports by Trustee
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50
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Section 7.4
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Reports by Company
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51
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ARTICLE 8
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CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
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Section 8.1
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Company May Consolidate, etc., Only on Certain Terms
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51
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Section 8.2
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Successor Substituted
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51
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ARTICLE 9
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SUPPLEMENTAL INDENTURES
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Section 9.1
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Supplemental Indentures Without Consent of Holders
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52
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Section 9.2
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Supplemental Indentures with Consent of Holders
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53
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Section 9.3
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Execution of Supplemental Indentures
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54
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Section 9.4
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Effect of Supplemental Indentures
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54
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Section 9.5
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Conformity with Trust Indenture Act
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55
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Section 9.6
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Reference in Securities to Supplemental Indentures
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55
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ARTICLE 10
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COVENANTS
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Section 10.1
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Payment of Principal, Premium and Interest
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55
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Section 10.2
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Maintenance of Office or Agency
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55
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Section 10.3
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Money for Securities Payments to be Held in Trust
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56
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Section 10.4
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Statement by Officers as to Default
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57
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Section 10.5
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Existence
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57
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Section 10.6
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All Securities to be Equally and Ratably Secured
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57
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Section 10.7
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Maintenance of Properties
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57
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Section 10.8
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Payment of Taxes and Other Claims
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58
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iii
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Section 10.9
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Waiver of Certain Covenants
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58
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Section 10.10
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Additional Amounts
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58
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ARTICLE 11
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REDEMPTION OF SECURITIES
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Section 11.1
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Applicability of Article
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59
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Section 11.2
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Election to Redeem; Notice to Trustee
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59
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Section 11.3
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Selection by Trustee of Securities to Be Redeemed
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59
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Section 11.4
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Notice of Redemption
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60
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Section 11.5
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Deposit of Redemption Price
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61
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Section 11.6
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Securities Payable on Redemption Date
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61
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Section 11.7
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Securities Redeemed in Part
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62
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ARTICLE 12
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SINKING FUNDS
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Section 12.1
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Applicability of Article
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62
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Section 12.2
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Satisfaction of Sinking Fund Payments with Securities
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62
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Section 12.3
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Redemption of Securities for Sinking Fund
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63
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ARTICLE 13
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DEFEASANCE AND COVENANT DEFEASANCE
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Section 13.1
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Companys Option to Effect Defeasance or Covenant Defeasance
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63
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Section 13.2
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Defeasance and Discharge
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63
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Section 13.3
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Covenant Defeasance
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64
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Section 13.4
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Conditions to Defeasance or Covenant Defeasance
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64
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Section 13.5
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Deposited Money, U. S. Government Obligations and Foreign Government
Obligations to be Held in Trust; Miscellaneous Provisions
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66
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Section 13.6
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Reinstatement
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67
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ARTICLE 14
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SUBORDINATION
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Section 14.1
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Securities Subordinated to Senior Indebtedness
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67
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Section 14.2
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Right of Trustee to Hold Senior Indebtedness
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67
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Section 14.3
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Subordination Not to Prevent Events of Default
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68
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iv
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Section 14.4
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No Fiduciary Duty of Trustee to Holders of Senior Indebtedness
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68
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Section 14.5
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Article Applicable to Paying Agent
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68
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v
ENTERTAINMENT PROPERTIES TRUST
This Cross Reference Sheet shows the location in the Indenture of the provisions inserted
pursuant to Sections 3.10 through 3.18, inclusive, of the Trust Indenture Act of 1939:
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Section 310
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(a) (1)
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6.9
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(a) (2)
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6.9
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(a) (3)
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6.9
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(a) (4)
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Not Applicable
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(a) (5)
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6.9
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(b)
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6.8, 6.10
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(c)
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Not Applicable
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Section 311
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(a)
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6.13
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(b)
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6.13
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(c)
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Not Applicable
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Section 312
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(a)
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7.1, 7.2
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(b)
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7.2
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(c)
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7.2
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Section 313
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(a)
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7.3
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(b)
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7.3
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(c)
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7.3
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(d)
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7.3
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Section 314
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(a) (1)
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7.4
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(a) (2)
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7.4
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(a) (3)
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7.4
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(a) (4)
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1.1, 10.4
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(b)
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Not Applicable
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(c) (1)
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1.3
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(c) (2)
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1.3
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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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1.3
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Section 315
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(a)
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6.1
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(b)
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6.2
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(c)
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6.1
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(d)
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6.1
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(e)
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5.14
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Section 316
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(a)
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1.1
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(a) (1) (A)
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5.2, 5.12
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(a) (1) (B)
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5.13
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(a) (2)
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Not Applicable
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(b)
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5.8
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(c)
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1.5
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Section 317
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(a) (1)
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5.3
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(a) (2)
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5.4
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(b)
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10.3
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Section 318
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(a)
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1.8
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NOTE: This Cross Reference Sheet is not part of the Indenture.
v
INDENTURE
INDENTURE, dated as of
, between ENTERTAINMENT PROPERTIES TRUST, a Maryland
real estate investment trust (the
Company
), having its principal office at
,
and
, as trustee, (the
Trustee
), the office of the Trustee at which
at the date hereof its corporate trust business is principally administered being
.
RECITALS
The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its subordinated debentures, notes or other evidences of
indebtedness (the
Securities
), to be issued in one or more series as herein provided.
This Indenture is subject to the provisions of the Trust Indenture Act and the rules and
regulations of the Commission promulgated thereunder that are required to be part of this Indenture
and, to the extent applicable, shall be governed by such provisions.
All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.
NOW, THEREFORE, for and in consideration of the premises and the purchase of the Securities by
the Holders thereof, each party agrees for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Securities, or of series thereof, issued under this
Indenture, as follows:
ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 1.1
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 accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States of America, 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 in the United States of America as are generally accepted as of the time when and for
the period as to which such accounting principles are to be applied;
(3)
or
is not exclusive;
(4) any reference to an
Article
or a
Section
refers to an Article or a
Section, as the case may be, of this Indenture;
(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; and
(6) certain terms, used principally in
Article 6
, are defined in
Section 1.2
.
Act
, when used with respect to any Holder, has the meaning specified in
Section
1.5
.
Additional Amounts
means any additional amounts that are required by the express
terms of a Security or by or pursuant to a Board Resolution, under circumstances specified therein
or pursuant thereto, to be paid by the Company with respect to certain taxes, assessments or other
governmental charges imposed on certain Holders and that are owing to such Holders.
Affiliate
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For purposes of this definition,
control
when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms
controlling
and
controlled
have meanings correlative to the foregoing.
Authenticating Agent
means any Person, which may include the Company, authorized by
the Trustee pursuant to
Section 6.14
to act on behalf of the Trustee to authenticate
Securities of one or more series.
Authorized Newspaper
means a newspaper of general circulation in the New York, New
York area, printed in the English language and customarily published on each Business Day, whether
or not published on Saturdays, Sundays or holidays. Whenever successive weekly publications in an
Authorized Newspaper are required hereunder they may be made (unless otherwise expressly provided
herein) on the same or different days of the week and in the same or in different Authorized
Newspapers.
Bankruptcy Law
means Title 11, U.S. Code, or any similar federal or state law for
the relief of debtors.
Board
or
Board of Trustees
means either the board of trustees of the
Company or any duly authorized committee thereof.
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 Trustees and to be in
full force and effect on the date of such certification, and delivered to the Trustee.
Business Day
, when used with respect to any Place of Payment, means each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that
Place of Payment, or the city in which the Corporate Trust Office is located, are authorized or
obligated by law or executive order to close.
2
Commission
means the Securities and Exchange Commission, from time to time
constituted, created under 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.
Common Shares
includes any shares of beneficial interest of any class of the Company
which has no preference in respect of dividends or of amounts payable in the event of any voluntary
or involuntary liquidation, dissolution or winding-up of the Company and which is not subject to
redemption by the Company.
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, respectively, a written request or
order signed in the name of the Company by its Chairman of the Board, its Chief Executive Officer,
its President or a Vice President, and by its principal financial officer, its Controller, an
Assistant Controller, its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee.
Corporate Trust Office
means the corporate trust office of the Trustee at [ ],
Attention: Corporate Trust Department, or such other office, designated by the Trustee by written
notice to the Company, at which at any particular time its corporate trust business shall be
administered.
Covenant Defeasance
has the meaning specified in
Section 13.3
.
Custodian
means any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Law.
default
means, with respect to the Securities of any series, any event, act or
condition that is, or after notice or the passage of time or both would be, an Event of Default
with respect to Securities of such series.
Defaulted Interest
has the meaning specified in
Section 3.7
.
Defeasance
has the meaning specified in
Section 13.2
.
Depositary
means, with respect to Securities of any series issuable in whole or in
part in the form of one or more Global Securities, The Depository Trust Company, New York, New
York, another clearing agency, or any successor, registered under the Exchange Act that is
designated to act as Depositary for such Securities as contemplated by
Section 3.1
.
Dollar
or
$
means a dollar or other equivalent unit in such coin or
currency of the United States as at the time shall be legal tender for the payment of public and
private debts.
euro
or
euros
means the currency adopted by those nations participating in
the third stage of the economic and monetary union provisions of the Treaty on European Union,
signed at Maastricht on February 7, 1992.
3
European Economic Area
means the member nations of the European Economic Area
pursuant to the Oporto Agreement on the European Economic Area dated May 2, 1992, as amended.
European Union
means the member nations of the European Union established by the
Treaty of European Union, signed at Maastricht on February 2, 1992, which amended the Treaty of
Rome establishing the European Community.
Event of Default
has the meaning specified in
Section 5.1
.
Exchange Act
means the Securities Exchange Act of 1934 and any statute successor
thereto, in each case as amended from time to time.
Exchange Rate
has the meaning specified in
Section 3.2
.
Expiration Date
has the meaning specified in
Section 1.5
.
Foreign Government Obligation
means with respect to Securities of any series which
are not denominated in the currency of the United States of America (x) any security which is (i) a
direct obligation of the government which issued or caused to be issued the currency in which such
security is denominated and for the payment of which obligations its full faith and credit is
pledged or, with respect to Securities of any series which are denominated in euros, a direct
obligation of any member nation of the European Union for the payment of which obligation the full
faith and credit of the respective nation is pledged so long as such nation has a credit rating at
least equal to that of the highest rated member nation of the European Economic Area, or (ii) an
obligation of a Person controlled or supervised by and acting as an agency or instrumentality of a
government specified in clause (i) above the payment of which is unconditionally guaranteed as a
full faith and credit obligation by the such government, which, in either case (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (y) any depositary receipt issued
by a bank (as defined in
Section 3(a)(2)
of the Securities Act) as custodian with respect
to any Foreign Government Obligation which is specified in clause (x) above and held by such bank
for the account of the holder of such depositary receipt, or with respect to any specific payment
of principal of or interest on any Foreign Government Obligation which is so specified and held,
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 depositary receipt from any amount received by the
custodian in respect of the Foreign Government Obligation or the specific payment of principal or
interest evidenced by such depositary receipt.
Global Security
means a Security that evidences all or part of the Securities of any
series and bears the legend set forth in
Section 2.4
(or such legend as may be specified as
contemplated by
Section 3.1
for such Securities).
Holder
means a Person in whose name a Security is registered in the Security
Register.
Indenture
means this instrument as originally executed and 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
4
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 3.1
; provided, however, that if at any time more
than one Person is acting as Trustee under this Indenture due to the appointment of one or more
separate Trustees for any one or more separate series of Securities,
Indenture
shall
mean, with respect to such series of Securities for which any such Person is Trustee, 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
and shall include the terms of particular series of Securities for which such Person is Trustee
established as contemplated by
Section 3.1
, exclusive, however, of any provisions or terms
which relate solely to other series of Securities for which such Person is not Trustee, regardless
of when such terms or provisions were adopted, and exclusive of any provisions or terms adopted by
means of one or more indentures supplemental hereto executed and delivered after such Person had
become such Trustee, but to which such person, as such Trustee, was not a party; provided, further
that in the event that this Indenture is supplemented or amended by one or more indentures
supplemental hereto which are only applicable to certain series of Securities, the term
Indenture
for a particular series of Securities shall exclude provisions or terms which
relate solely to other series of Securities.
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.
Investment Company Act
means the Investment Company Act of 1940 and any statute
successor thereto, in each case as amended from time to time.
Judgment Currency
has the meaning specified in
Section 5.6
.
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, repurchase at
the option of the Holder, call for redemption or otherwise.
Mortgage
means and includes any mortgage, pledge, lien, security interest,
conditional sale or other title retention agreement or other similar encumbrance.
Notice of Default
means a written notice of the kind specified in
Section
5.1(4)
.
Officers Certificate
means a certificate signed by the Chairman of the Board, the
Chief Executive Officer, the President or a Vice President, and by the principal financial officer,
the Treasurer, the Controller, an Assistant Treasurer, an Assistant Controller, 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 10.4
shall be the principal executive,
financial or accounting officer of the Company.
5
Opinion of Counsel
means a written opinion of legal counsel, who may be, without
limitation, (a) an employee of the Company, or (b) outside counsel designated by the Company,
rendered, if applicable, in accordance with
Section 314(c)
of the Trust Indenture Act.
Original Issue Discount Security
means any Security that 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 5.2
.
Outstanding
when used with respect to Securities, means, as of the date of
determination, all Securities theretofore authenticated and delivered under this Indenture, except
(1) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;
(2) 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; 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;
(3) Securities which have been paid pursuant to
Section 3.6
or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been presented to the Trustee
proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;
provided, however, that unless otherwise provided with respect to any Securities of any series
pursuant to
Section 3.1
, in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given, made or taken any request, demand, authorization,
direction, notice, consent, waiver or other action hereunder as of any date, (A) the principal
amount of an Original Issue Discount Security which shall be deemed to be Outstanding shall be the
amount of the principal thereof which would be due and payable as of such date upon acceleration of
the Maturity thereof to such date pursuant to
Section 5.2
, (B) if, as of such date, the
principal amount payable at the Stated Maturity of a Security is not determinable, the principal
amount of such Security which shall be deemed to be Outstanding shall be the amount as specified or
determined as contemplated by
Section 3.1
, (C) the principal amount of a Security
denominated in one or more non-U.S. dollar currencies or currency units which shall be deemed to be
Outstanding shall be the U.S. dollar equivalent, determined as of such date in the manner provided
as contemplated by
Section 3.1
, of the principal amount of such Security (or, in the case
of a Security described in
clause (A)
or
(B)
above, of the amount determined as
provided in such clause), and (D) Securities owned by the Company or any other obligor upon the
Securities or any Subsidiary 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, waiver or other
action, only Securities which a Responsible Officer of 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
6
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 Subsidiary of the Company or of such other obligor.
Paying Agent
means any Person, which may include the Company, authorized by the
Company to pay the principal of or any premium or interest on, or any Additional Amounts with
respect to, any one or more series of Securities on behalf of the Company.
Periodic Offering
means an offering of Securities of a series from time to time the
specific terms of which Securities, including, without limitation, the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the Maturity thereof and the
redemption provisions, if any, with respect thereto, are to be determined by the Company upon the
issuance of such Securities.
Person
means any individual, corporation, limited liability company, partnership,
joint venture, incorporated or unincorporated association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof or other
entity of any kind.
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, or any Additional Amounts
with respect to, the Securities of that series are payable as specified as contemplated by
Section 3.1
and
10.2
.
Predecessor Security
of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under
Section
3.6
in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be
deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.
Preferred Shares
as applied to the shares of beneficial interest of the Company
means shares of beneficial interest of any class or classes (however designated) which is preferred
as to the payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of the Company, over Common Shares of the Company.
Record Date
means any Regular Record Date or Special Record Date.
Redemption Date
, when used with respect to any Security to be redeemed, means the
date fixed for such redemption by or pursuant to the terms of such Security and 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 the terms of such Security and this Indenture.
Regular Record Date
for the interest payable on any Interest Payment Date on the
Securities of any series means any date specified for that purpose as contemplated by
Section
3.1
, or, if not so specified, the first day of the calendar month of the month of such Interest
Payment Date if such Interest Payment Date is the fifteenth day of the calendar month, or the
fifteenth day of the calendar month preceding such Interest Payment Date if such Interest
7
Payment Date is the first day of a calendar month, whether or not such day shall be a Business
Day.
Required Currency
has the meaning specified in
Section 5.6
.
Responsible Officer
means, when used with respect to the Trustee, an officer of the
Trustee in the Corporate Trust Office assigned and duly authorized by the Trustee to administer its
corporate trust matters.
Securities
has the meaning stated in the first recital of this Indenture and more
particularly means any debentures, notes or other evidences of indebtedness of the Company
authenticated and delivered under this Indenture.
Securities Act
means the Securities Act of 1933 and any statute successor thereto,
in each case as amended from time to time.
Security Custodian
means, with respect to Securities of a series issued in global
form, the Trustee for Securities of such series, acting in its capacity as custodian with respect
to the Securities of such series, or any successor entity thereto.
Security Register
and
Security Registrar
have the respective meanings
specified in
Section 3.5
.
Senior Indebtedness
of the Company, means with respect to the Securities of a series
as contemplated by
Section 3.1
, the indebtedness specified in such Securities or in the
supplemental indenture pursuant to which such Securities are issued. Different series of Securities
may be subordinated to different Senior Indebtedness, and one series of Securities may be
subordinated to another series of Securities, all as and to the extent provided in the relevant
documentation for each issue of Securities.
Special Record Date
for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to
Section 3.7
.
Stated Maturity
, when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such Security as the fixed date
on which the principal of such Security or such installment of principal or interest is due and
payable.
Subsidiary
means any Person of which the Company at the time owns or controls,
directly or indirectly, more than 50% of the shares of outstanding stock or other equity interests
having general voting power under ordinary circumstances to elect a majority of the board of
directors, managers or trustees, as the case may be, of such Person (irrespective of whether or not
at the time stock of any other class or classes or other equity interests of such corporation shall
have or might have voting power by reason of the happening of any contingency).
Trust Indenture Act
means the Trust Indenture Act of 1939 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.
8
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.
United States
means the United States of America (including the states thereof and
the District of Columbia) and its possessions, which include Puerto Rico, the U.S. Virgin
Islands, Guam, American Somoa, Wake Island and the Northern Mariana Islands.
United States Alien
means any Person who, for United States federal income tax
purposes, is a foreign corporation, a nonresident alien individual, a nonresident alien or foreign
fiduciary of an estate or trust, or a foreign partnership.
U.S. Government Obligation
means (x) any security which is (i) a direct obligation
of the United States of America for the payment of which the full faith and credit of the United
States of America is pledged or (ii) an obligation 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 (i) or (ii), is not callable or redeemable at the option of the issuer
thereof, and (y) any depositary receipt issued by a bank (as defined in
Section 3(a)(2)
of
the Securities Act) as custodian with respect to any U.S. Government Obligation which is specified
in clause (x) above and held by such bank for the account of the holder of such depositary receipt,
or with respect to any specific payment of principal of or interest on any U.S. Government
Obligation which is so specified and held, 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 depositary
receipt from any amount received by the custodian in respect of the U.S. Government Obligation or
the specific payment of principal or interest evidenced by such depositary 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.
Yield to Maturity
means, when used with respect to any Original Issue Discount
Security, the yield to maturity, if any, set forth on the face thereof.
Section 1.2
Incorporation by Reference of Trust Indenture Act
.
Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is
incorporated by reference in and made a part of this Indenture. The following Trust Indenture Act
terms used in this Indenture have the following meanings:
indenture securities
means the Securities.
indenture security holder
means a Holder.
indenture to be qualified
means this Indenture.
9
indenture trustee
or
institutional trustee
means the Trustee.
obligor
on the indenture securities means the Company or any other obligor on the
Securities.
All terms used in this Indenture that are defined by the Trust Indenture Act, defined by a
Trust Indenture Act reference to another statue or defined by Commission rule under the Trust
Indenture Act and not otherwise defined herein have the meanings assigned to them therein.
Section 1.3
Compliance Certificates and Opinions
.
Except as otherwise expressly provided by this Indenture, 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 (other than pursuant to
Section 10.4
) shall include,
(1) a statement that each Person 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 Person, such Person has made such
examination or investigation as is necessary to enable such Person 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 Person, such condition or covenant
has been complied with.
Section 1.4
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
10
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.
Any certificate or opinion of an officer of the Company or of counsel may be based, insofar as
it relates to accounting matters, upon a certificate or opinion of or representations by an
accountant or firm of accountants employed or retained by the Company unless such officer or
counsel, as the case may be, knows, or in the exercise of reasonable care should know, that the
certificate or opinions or representations as to such accounting 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 1.5
Acts of Holders; Record Dates
.
Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given, made or taken by Holders of the Outstanding
Securities of all series or one or more series, as the case may be, 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. The Trustee shall promptly deliver to
the Company copies of all such instrument or instruments delivered to the Trustee. 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 6.1
) conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section.
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 or her the execution thereof. Where such
execution is by a signer acting in a capacity other than his or her individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his or her 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 that the Trustee deems sufficient.
The ownership, date of holding, principal amount and serial numbers of Securities shall be
proved by the Security Register.
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
11
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 in reliance thereon, whether or not notation of such action is made upon such Security.
Any consent or waiver of the Holder of any Security shall be irrevocable for a period of six months
after the date of execution thereof, but otherwise any such Holder or subsequent Holder may revoke
the request, demand, authorization, direction, notice, consent or other Act as to his Security or
portion of his Security; provided, however, that such revocation shall be effective only if the
Trustee receives the notice of revocation before the date the Act becomes effective.
The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, direction, vote, notice, consent, waiver or other action provided or permitted by
this Indenture to be given, made or taken by Holders of Securities of such series, provided that
the Company may not set a record date for, and the provisions of this paragraph shall not apply
with respect to, the giving or making of any notice, declaration, request or direction referred to
in the next paragraph. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date, and no other Holders, shall be
entitled to take the relevant action, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities
of such series on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be canceled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable Expiration Date to be given
to the Trustee in writing and to each Holder of Securities of the relevant series in the manner set
forth in
Section 1.7
.
The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration referred to in
Section 5.2
, (iii) any request
to institute proceedings referred to in
Section 5.7(2
) or (iv) any direction referred to in
Section 5.12
, in each case with respect to Securities of such series. If any record date is
set pursuant to this paragraph, the Holders of Outstanding Securities of such series on such record
date, and no other Holders, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by
Holders of the requisite principal amount of Outstanding Securities of such series on such record
date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record
date for any action for which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no action by any Person be
canceled and of no effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding Securities of the
relevant series on the date such action is taken. Promptly after any record date is set pursuant to
this
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paragraph, the Trustee, at the Companys expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the Company in writing
and to each Holder of Securities of the relevant series in the manner set forth in
Section
1.7
.
With respect to any record date set pursuant to this Section, the party hereto which sets such
record dates may designate any day as the
Expiration Date
and from time to time may
change the Expiration Date to any earlier or later day; provided that no such change shall be
effective unless notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner set forth in
Section 1.7
, on or prior to the existing Expiration Date. If an Expiration Date is not
designated with respect to any record date set pursuant to this
Section 1.5
, the party
hereto which set such record date shall be deemed to have initially designated the 180th day after
such record date as the Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.
Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with
regard to any particular Security may do so with regard to all or any part of the principal amount
of such Security or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.
Section 1.6
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 (or by facsimile transmissions, provided
that oral confirmation of receipt shall have been received) to or with the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Department, 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 furnished by certified
mail, return receipt requested, personally delivered or furnished via overnight courier 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, Attention: Chief Financial Officer.
Section 1.7
Notice to Holders; Waiver
.
Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, or delivered by hand or overnight courier to each Holder affected by
such event, at its 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. Neither the
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failure to mail or deliver by hand or overnight courier any notice, nor any defect in any
notice so mailed or delivered by hand or overnight courier, 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 notice to Holders of Securities by mail, then such notification as
shall be made with the approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder. In any case in which notice to Holders of Securities is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder
of a Security, shall affect the sufficiency of such notice with respect to other Holders of
Securities.
Section 1.8
Conflict with Trust Indenture Act
.
If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act or another provision hereof required to be included in this Indenture by any of the provisions
of the Trust Indenture Act, the latter provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act, which 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 1.9
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 1.10
Successors and Assigns
.
All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether or not so expressed. All agreements of the Trustee in this Indenture shall bind
its successor.
Section 1.11
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.
Section 1.12
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, any Authenticating Agent, Paying
Agent or Security Registrar, and the Holders and any holders of Senior Indebtedness, any benefit or
any legal or equitable right, remedy or claim under this Indenture.
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Section 1.13
Governing Law
.
THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
Section 1.14
Legal Holidays
.
Unless otherwise provided with respect to any Security or Securities pursuant to
Section 3.1
, in
any case where any Interest Payment Date, Redemption Date, sinking fund payment date,
or Stated Maturity or Maturity or other payment date of any Security or the last date on which a
Holder has the right to convert a Security at a particular conversion price 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 any Security which specifically states that such provision
shall apply in lieu of this Section)) payment of interest or principal (and premium, if any) or, if
applicable to a particular series of Securities, conversion 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, at the
Stated Maturity or on such last day for conversion, as the case may be.
Section 1.15
Indenture and Securities Solely Corporate Obligations
.
No recourse for the payment of the principal of or premium, if any, or interest on any
Security, or for any claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental
indenture or in any Security, or because of the creation of any indebtedness represented thereby,
shall be had, directly or indirectly, against any incorporator, subscriber to the shares of
beneficial interest (or capital stock or membership interests (as applicable)), shareholder,
stockholder, member, employee, agent, manager, officer, trustee or director, as such, past, present
or future, of the Company or the Trustee or of any predecessor or successor corporation, either
directly or through the Company or the Trustee or any predecessor or successor corporation, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that this Indenture and the obligations issued
hereunder are solely corporate obligations and that no such personal liability whatever shall
attach to, or is or shall be incurred by, any incorporator, subscriber to the shares of beneficial
interest (or capital stock or membership interests (as applicable)), shareholder, stockholder,
member, employee, agent, manager, officer, trustee or director, as such, of the Company or the
Trustee or of any predecessor or successor corporation, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such incorporator, subscriber to
the shares of beneficial interest (or capital stock or membership interests (as applicable)),
shareholder, stockholder, member, employee, agent,
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manager, officer, trustee or director, as such,
because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in
this Indenture, any supplemental indenture hereto, any certificate or other writing delivered in
connection herewith, or in any of the Securities or implied therefrom, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of this Indenture and the
issuance of such Securities. By accepting a Security, each Holder agrees to the provisions of this
Section 1.15
and waives and releases all such liability. Such waiver and release shall be
part of the consideration for the issuance of the Securities.
Section 1.16
Indenture May be Executed in Counterparts
.
This instrument may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same instrument.
ARTICLE 2
SECURITY FORMS
Section 2.1
Forms Generally
.
The Securities of each series shall be in such form or forms as shall be established by or
pursuant to one or more Board Resolutions and set forth in such Board Resolutions, or, to the
extent established pursuant to, rather than set forth in, such Board Resolutions, an Officers
Certificate detailing such establishment, 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
any applicable law or with any rules or regulations pursuant thereto, or any rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be determined by the
officers executing such Securities, as evidenced by their execution thereof. If the form of
Securities of any series is established by action taken pursuant to a Board Resolution, or, to the
extent established pursuant to, rather than set forth in, such Board Resolutions, an Officers
Certificate detailing such establishment, 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 3.3
for the
authentication and delivery of such Securities. Any such Board Resolution, Officers Certificate or
record of such action shall have attached thereto a true and correct copy of the form of Security
referred to therein approved by or pursuant to such Board Resolution or Officers Certificate.
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 2.2
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 herein referred to in the
within-mentioned Indenture.
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[Trustee], as Trustee
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By:
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Authorized Officer
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Section 2.3
Global Securities
.
If the Company shall establish pursuant to
Section 3.1
that the Securities of a
particular series are to be issued in whole or in part in the form of one or more Global
Securities, then the Company shall execute and the Trustee shall, in accordance with
Section
3.3
and the Company Order delivered to the Trustee thereunder, authenticate and deliver such
Global Security or Securities, which (i) shall represent, and shall be denominated in an amount
equal to the aggregate principal amount of the Outstanding Securities of such series to be
represented by such Global Security or Securities, (ii) may provide that the aggregate amount of
Outstanding Securities represented thereby may from time to time be increased or reduced to reflect
exchanges, (iii) shall be registered in the name of the Depositary for such Global Security or
Securities or its nominee, (iv) shall be delivered by the Trustee to the Depositary or pursuant to
the Depositarys instruction and (v) shall bear a legend in accordance with the requirements of the
Depositary.
Notwithstanding any other provision of this Section or of
Section 3.5
, except as
contemplated by the provisions of this
Section 2.3
below, unless the terms of a Global
Security expressly permit such Global Security to be exchanged in whole or in part for individual
Securities, a Global Security may be transferred, in whole but not in part and in the manner
provided in
Section 3.5
, only to a nominee of the Depositary for such Global Security, or
to the Depositary, or to a successor Depositary for such Global Security selected or approved by
the Company, or to a nominee of such successor Depositary.
If at any time the Depositary for a Global Security notifies the Company that it is unwilling
or unable to continue as the Depositary for such Global Security or if at any time the Depositary
for the Securities for such series shall no longer be eligible or in good standing under the
Exchange Act, or other applicable statute or regulation, the Company shall appoint a successor
Depositary with respect to such Global Security. If a successor Depositary for such Global Security
is not appointed by the Company within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company will execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of Securities of such series in the form of definitive
certificates in exchange for such Global Security, will authenticate and deliver Securities of such
series in the form of definitive certificates of like tenor and terms in an aggregate principal
amount equal to the principal amount of the Global Security in exchange for such Global Security.
Such Securities will be issued to and registered in the name of such Person or Persons as are
specified by the Depositary.
17
The Company may at any time and in its sole discretion determine that the Securities of any
series issued or issuable in the form of one or more Global Securities shall no longer be
represented by such Global Security or Securities. In any such event the Company will execute, and
the Trustee, upon receipt of a Company Request for the authentication and delivery of Securities
in the form of definitive certificates in exchange in whole or in part for such Global Security,
will authenticate and deliver without service charge to each Person specified by the Depositary
Securities in the form of definitive certificates of like tenor and terms in an aggregate principal
amount equal to the principal amount of such Global Security representing such series, or the
aggregate principal amount of such Global Securities representing such series, in exchange for such
Global Security or Securities.
If specified by the Company pursuant to
Section 3.1
with respect to Securities issued
or issuable in the form of a Global Security, the Depositary for such Global Security may surrender
such Global Security in exchange in whole or in part for Securities in the form of definitive
certificates of like tenor and terms on such terms as are acceptable to the Company and such
Depositary. Thereupon the Company shall execute, and the Trustee shall authenticate and deliver,
without service charge, (A) to each Person specified by such Depositary a new Security or
Securities of the same series of like tenor and terms and any authorized denomination as requested
by such Person in aggregate principal amount equal to and in exchange for such Persons beneficial
interest in the Global Security and (B) to such Depositary a new Global Security of like tenor and
terms and in an authorized denomination equal to the difference, if any, between the principal
amount of the surrendered Global Security and the aggregate principal amount of Securities
delivered to Holders thereof.
In any exchange provided for in any of the preceding three paragraphs, the Company shall
execute and the Trustee shall authenticate and deliver Securities in the form of definitive
certificates in authorized denominations. Upon the exchange of the entire principal amount of a
Global Security for Securities in the form of definitive certificates, such Global Security shall
be canceled by the Trustee. Except as provided in the immediately preceding subparagraph,
Securities issued in exchange for a Global Security pursuant to this
Section 2.3
shall be
registered in such names and in such authorized denominations as the Depositary for such Global
Security, acting pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. Provided that the Company and the Trustee have so agreed, the Trustee
shall deliver such Securities to the Persons in whose names the Securities are so to be registered.
Any endorsement of a Global Security to reflect the principal amount thereof, or any increase
or decrease in such principal amount, or changes in the rights of Holders of Outstanding Securities
represented thereby shall be made in such manner and by such Person or Persons as shall be
specified in or pursuant to any applicable letter of representations or other arrangement entered
into with, or procedures of, the Depositary with respect to such Global Security or in the Company
Order delivered or to be delivered pursuant to
Section 3.3
or
Section 3.4
with
respect thereto. Subject to the provisions of
Section 3.3
and, if applicable,
Section
3.4
, the Trustee shall deliver and redeliver any such Global Security in the manner and upon
instructions given by the Person or Persons specified in or pursuant to any applicable letter of
representations or other arrangement entered into with, or procedures of, the Depositary with
respect to such Global Security or in any applicable Company Order. If a Company Order pursuant to
Section 3.3
or
Section 3.4
is so delivered, any instructions by the Company with
respect to such Global
18
Security contained therein shall be in writing but need not be accompanied by or contained in
an Officers Certificate and need not be accompanied by an Opinion of Counsel.
The Depositary or, if there be one, its nominee, shall be the Holder of a Global Security for
all purposes under this Indenture; and beneficial owners with respect to such Global Security shall
hold their interests pursuant to applicable procedures of such Depositary. The Company, the
Trustee, the Paying Agent and the Security Registrar shall be entitled to deal with such Depositary
for all purposes of this Indenture relating to such Global Security (including the payment of
principal, premium, if any, and interest and any Additional Amounts with respect to such Global
Security and the giving of instructions or directions by or to the beneficial owners of such Global
Security as the sole Holder of such Global Security and shall have no obligations to the beneficial
owners thereof (including any direct or indirect participants in such Depositary). None of the
Company, the Trustee, any Paying Agent or the Security Registrar shall have any responsibility or
liability for any aspect of the records relating to or payments made on account of beneficial
ownership interests of a Global Security in or pursuant to any applicable letter of representations
or other arrangement entered into with, or procedures of, the Depositary with respect to such
Global Security or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.
Section 2.4
Form of Legend for Global Securities
.
Unless otherwise specified as contemplated by
Section 3.1
for the Securities evidenced
thereby, every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
ARTICLE 3
THE SECURITIES
Section 3.1
Amount Unlimited; Issuable in Series
.
The aggregate principal amount of Securities that 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 3.3
, 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,
19
(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 2.3
,
3.4
,
3.5
,
3.6
,
9.6
or
11.7
and except for any Securities which, pursuant to
Section 3.3
, 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 and premium, if any, on any Securities of the
series is payable or the method of determination and/or extension of such date or dates; and the
amount or amounts of such payments of principal and premium, if any, or the method of determination
thereof;
(5) the rate or rates (which may be fixed or variable), at which any Securities of the series
shall bear interest, if any, whether and under what circumstances Additional Amounts with respect
to such Securities shall be payable, the date or dates from which any such interest shall accrue,
the Interest Payment Dates on which any such interest shall be payable and, if other that as set
forth in
Section 1.1
, the Regular Record Date for any such interest payable on any
Interest Payment Date (or the method for determining the dates and rates);
(6) whether any of such Securities will be subject to certain optional interest rate reset
provisions;
(7) the place or places where the principal of and any premium and interest on, or any
Additional Amounts with respect to, the Securities of the series shall be payable, where the
Securities of such 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 such series and this
Indenture may be served, and the method of such payment, if by wire transfer, mail or other means;
(8) (a) the period or periods within which, the price or prices at which, the currency or
currencies (including currency units) and the terms and conditions upon which any Securities of the
series may be redeemed, in whole or in part, at the option of the Company, (b) if other than as
provided in
Section 11.3
, the manner in which the particular Securities of such series (if
less than all Securities of such series are to be redeemed) are to be selected for redemption and
(c) if other than by a Board Resolution, the manner in which any election by the Company to redeem
the Securities shall be evidenced;
(9) the Senior Indebtedness to which the Securities of such series are subordinated, and the
terms of such subordination;
20
(10) the obligation, if any, of the Company to redeem, purchase or repay any Securities of the
series pursuant to any sinking fund, amortization or analogous provisions or upon the happening of
a specified event or at the option of the Holder thereof and the period or periods within which,
the price or prices at which and the terms and conditions upon which any Securities of the series
shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation and any
provisions for the remarketing of such Securities;
(11) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which any Securities of the series shall be issuable;
(12) if other than the Trustee, the identity of the Securities Registrar and/or the Paying
Agent;
(13) if the amount of principal of or any premium or interest on or other payments, if any, on
any Securities of the series may be determined with reference to an index, formula or other method
(which index, formula or method may be based, without limitation, on the price of one or more
commodities, derivatives or securities; one or more securities, derivatives or commodities exchange
indices or other indices; a currency or currencies (including currency unit or units) other than
that in which the Securities of the series are denominated or designated to be payable; or any
other variable or the relationship between any variables or combination of variables), the index,
formula or other method by which such amounts shall be determined;
(14) if other than the currency of the United States of America, the currency, currencies or
currency units (including composite currencies) in which the principal of or any premium or
interest on, or any Additional Amounts with respect to, any Securities of the series shall be
payable and the manner of determining the equivalent thereof in the currency of the United States
of America for any purpose, including for purposes of the definition of
Outstanding
in
Section 1.1
;
(15) if the principal of or any premium or interest on, or any Additional Amounts with respect
to, any Securities of the series is to be payable, at the election of the Company or the Holder
thereof, in one or more currencies or currency units other than that or those in which such
Securities are stated to be payable, the currency, currencies or currency units in which the
principal of or any premium or interest on such Securities as to which such election is made shall
be payable, the periods within which and the terms and conditions upon which such election is to be
made and the amount so payable (or the manner in which such amount shall be determined);
(16) if other than the entire principal amount thereof, the portion of the principal amount of
any Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to
Section 5.2
;
(17) if the principal amount payable at the Stated Maturity of any Securities of the series
will not be determinable as of any one or more dates prior to the Stated Maturity, the amount which
shall be deemed to be the principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall be
21
due and payable upon any Maturity other than the Stated Maturity or which shall be deemed to
be Outstanding as of any date prior to the Stated Maturity (or, in any such case, the manner in
which such amount deemed to be the principal amount shall be determined);
(18) if applicable, that the Securities of the series, in whole or any specified part, shall
be defeasible pursuant to
Section 13.2
or
Section 13.3
or both such Sections, or
any other defeasance provisions applicable to any Securities of the series, and, if other than by a
Board Resolution, the manner in which any election by the Company to defease such Securities shall
be evidenced;
(19) the terms, if any, upon which Securities of the series may be convertible into or
exchanged for other Securities, Common Shares, Preferred Shares, other debt securities, warrants to
purchase any of the foregoing, or other securities of any kind of the Company or any other obligor
or any other property, and the terms and conditions upon which the conversion or exchange shall be
effected, including the initial conversion or exchange price or rate, the conversion or exchange
period, and any other additional provisions;
(20) if applicable, that any Securities of the series shall be issuable in whole or in part in
the form of one or more Global Securities and, in such case, the respective Depositaries for such
Global Securities, the form of any legend or legends which shall be borne by any such Global
Security in addition to or in lieu of that set forth in
Section 2.4
;
(21) any deletions, modifications of or additions to the definitions set forth in
Section
1.1
, the Events of Default which apply to any Securities of the series and any change in the
right of the Trustee or the requisite Holders of such Securities to declare the principal amount
thereof due and payable pursuant to
Section 5.2
;
(22) any addition to, deletion of or change in the covenants set forth in
Article 10
which applies to Securities of the series;
(23) any Authenticating Agents, Paying Agents, Security Registrars or such other agents
necessary in connection with the issuance of the Securities of such series, including, without
limitation, exchange rate agents and calculation agents;
(24) if applicable, the terms of any Mortgage that will be provided for a series of
Securities, including any provisions regarding the circumstances under which collateral may be
released or substituted;
(25) if applicable, the terms of any guaranties for the Securities, including the terms of any
subordination of such guaranties, and any circumstances under which there may be additional
obligors on the Securities;
(26) provisions, if any, granting special rights to the Holders of Securities of the series
upon the occurrence of such events as may be specified;
(27) whether Securities of the series shall be issuable in registered form or bearer form
(registrable or not registrable as to principal, and with or without interest coupons), or both,
and any restrictions applicable to the offering, sale or delivery of bearer securities and
22
the terms upon which bearer Securities of a series may be exchanged for registered Securities
of the same series and vice versa;
(28) the forms of the Securities of the series;
(29) any terms which may be related to warrants, options or other rights to purchase and sell
securities issued by the Company in connection with, or for the purchase of, Securities of such
series, including whether and under what circumstances the Securities of any series may be used
toward the exercise price of any such warrants, options or other rights;
(30) if the Securities of the series will be governed by, and the extent to which such
Securities will be governed by, any law other than the laws of the state of New York;
(31) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture, except as permitted by
Section 9.1(5)
).
All Securities of any one series need not be identical but may vary as may be provided in or
pursuant to the Board Resolution referred to above and (subject to
Section 3.3
) set forth,
or determined in the manner provided, in the Officers Certificate referred to above or in any such
indenture supplemental hereto. All Securities of any one series need not be issued at the same
time and, unless otherwise provided, a series may be reopened, without the consent of the Holders,
for issuances of additional Securities of such series.
Section 3.2
Denominations
.
Except as specified as contemplated by
Section 3.1
, the Securities of each series
shall be issuable only in registered form without coupons. The Securities of such series shall be
issuable only in such denominations as shall be specified as contemplated by
Section 3.1
.
In the absence of any such specified denomination with respect to the Securities of any series, the
Securities of such series shall be issuable in denominations of $1,000 and any integral multiple
thereof. Unless otherwise provided as contemplated by
Section 3.1
with respect to any
series of Securities, any Securities of a series denominated in a currency other than Dollars shall
be issuable in denominations that are the equivalent, as determined by the Company by reference to
the noon buying rate in The City of New York for cable transfers for such currency (
Exchange
Rate
), as such rate is reported or otherwise made available by the Federal Reserve Bank of New
York, on the applicable issue date for such Securities, of $1,000 and any integral multiple
thereof.
Section 3.3
Execution, Authentication, Delivery and Dating
.
The Securities shall be executed on behalf of the Company by its Chairman of the Board, its
Chief Executive Officer, its principal financial officer, its President or one of its Vice
Presidents, and attested by its Treasurer, its Secretary or one of its Assistant Treasurers or
Assistant Secretaries. The signature of any of these officers on the Securities may be manual or
facsimile. Securities bearing the manual or facsimile signatures of individuals who were at any
time the proper officers of the Company shall bind the Company, notwithstanding that such
23
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities.
At any time and from time to time 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; provided, however, that in the case of Securities offered in a Periodic Offering,
the Trustee shall authenticate and deliver such Securities from time to time in accordance with
such other procedures (including, without limitation, the receipt by the Trustee of oral or
electronic instructions from the Company or its duly authorized agents, promptly confirmed in
writing) acceptable to the Trustee as may be specified by or pursuant to a Company Order delivered
to the Trustee prior to the time of the first authentication of Securities of such series. Each
Security shall be dated the date of its authentication unless otherwise provided by a Board
Resolution, a supplemental indenture hereto or an Officers Certificate. If the form or terms of
the Securities of the series have been established by or pursuant to one or more Board Resolutions
or any other method permitted by
Sections 2.1
and
3.1
, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.1
) shall be
fully protected in relying upon, a copy of such Board Resolution, the Officers Certificate setting
forth the terms of the series and an Opinion of Counsel, with such Opinion of Counsel stating,
(1) if the form or terms of such Securities have been established by or pursuant to Board
Resolution or any other method permitted by
Sections 2.1
and
3.1
, that such form or
terms have been, or in the case of Securities of a series offered in a Periodic Offering will be,
established in conformity with the provisions of this Indenture, subject in the case of Securities
offered in a Periodic Offering, to any conditions specified in such Opinion of Counsel; and
(2) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions, exceptions and qualifications specified in
such Opinion of Counsel, will constitute legal, valid and binding obligations of the Company,
enforceable in accordance with their terms, except as such enforcement is subject to the effect of
(i) bankruptcy, insolvency, fraudulent conveyance, reorganization or other laws relating to or
affecting creditors rights and (ii) general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).
Such Opinion of Counsel need express no opinion as to the enforceability of
Section
6.7
or as to whether a court in the United States would render a money judgment in a currency
other than that of the United States. Notwithstanding the provisions of
Section 3.1
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 3.1
or the Company Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the 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.
24
Notwithstanding that such form or terms have been so established, the Trustee shall have the
right to decline to authenticate such Securities if, in the written opinion of counsel to the
Trustee (which counsel may be an employee of the Trustee), such action may not lawfully be taken or
if the Trustee in good faith by its board of trustees or trustees, executive committee or a trust
committee of directors, trustees or vice presidents shall determine that such action would expose
the Trustee to personal liability to Holders of any Securities then outstanding.
With respect to Securities of a series offered in a Periodic Offering, the Trustee may rely,
as to the authorization by the Company of any of such Securities, the form and terms thereof and
the legality, validity, binding effect and enforceability thereof, upon the Opinion of Counsel and
the other documents delivered pursuant to
Sections 2.1
and 3.1 and this Section, as
applicable, in connection with the first authentication of Securities of such series.
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 or an Authenticating Agent 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 3.9
, 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.
The Company in issuing Securities may use CUSIP numbers (if then generally in use), and if
so, the Trustee may use the CUSIP numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP number printed in the notice or on the Securities, that
reliance may be placed only on the other identification numbers printed on the Securities, and any
such redemption or exchange shall not be affected by any defect or omission of such CUSIP numbers.
The Company will promptly notify the Trustee of any change in CUSIP numbers known to an Officer of
the Company. Neither the Company nor the Trustee shall have any responsibility for any defect in
the CUSIP number that appears on any Security, check, advice of payment or redemption notice, and
any such document may contain a statement to the effect that CUSIP numbers have been assigned by an
independent service for convenience of reference and that neither the Company nor the Trustee shall
be liable for any inaccuracy in such numbers.
Section 3.4
Temporary Securities
.
Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities 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
officers executing such Securities may determine, as evidenced by their execution of such
Securities. All or any portion of the temporary Securities of a series may be Global Securities.
25
If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. Except in the case of temporary
Securities that are Global Securities, each of which shall be exchanged in accordance with the
provisions thereof, 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 like tenor and aggregate principal amount. 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, except as
otherwise specified as contemplated by
Section 3.1
.
Section 3.5
Registration; Registration of Transfer and Exchange
.
The Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any
office or agency to be maintained by the Company in accordance with
Section 9.2
in a Place
of Payment or in such other place or medium as may be specified pursuant to
Section 3.1
a
register for each series of Securities (each register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes 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 of such series and of transfers of
Securities of such series. Unless otherwise contemplated by
Section 3.1
, the Trustee is
hereby appointed
Security Registrar
for the purpose of registering Securities and
transfers of Securities, and for the purpose of maintaining the Security Register in respect
thereof, as herein provided.
Except as set forth in
Section 2.3
or as may be provided pursuant to
Section
3.1
, upon surrender for registration of transfer of any Security of a series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute and deliver
a Company Order requesting the Trustee to authenticate and deliver, 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 like tenor and aggregate
principal amount.
Unless otherwise provided as contemplated by
Section 3.1
, at the option of the Holder,
Securities of any series (other than Global Securities) may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency, and upon payment, if the
Company shall so require, of the charges hereinafter provided. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities that the Holder making the exchange is entitled to receive.
26
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, Security Registrar or the Trustee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company, the Security Registrar or
the Trustee, as the case may be, duly executed, by the Holder thereof or its attorney duly
authorized in writing.
Unless otherwise provided as contemplated by
Section 3.1
, 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 3.4
,
9.6
or
11.7
not involving any transfer.
Unless otherwise provided as contemplated by
Section 3.1
, if the Securities of any
series (or of any series and specified tenor) are to be redeemed in whole or in part, the Company
shall not be required (A) to issue, register the transfer of or exchange any Securities of that
series (or of that series and specified tenor, as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of redemption of any such
Securities selected for redemption under
Section 11.3
and ending at the close of business
on the day of such mailing, or (B) to register the transfer of or exchange any Security so selected
for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in
part.
Unless otherwise provided as contemplated by
Section 3.1
, the Company shall not be
required to register the transfer or exchange of Securities between a Record Date and the next
succeeding Interest Payment Date.
Section 3.6
Mutilated, Destroyed, Lost and Stolen Securities
.
If any mutilated Security is surrendered to the Trustee, the Company shall execute and deliver
a Company Order requesting the Trustee to authenticate and deliver, 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 upon the Companys request 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.
Notwithstanding the preceding paragraph, 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.
27
Upon the issuance of any new Security under this
Section 3.6
, 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 3.6
in lieu of any
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued hereunder.
The provisions of this
Section 3.6
are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.
Section 3.7
Payment of Interest; Interest Rights Preserved
.
Except as otherwise provided as contemplated by
Section 3.1
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 at the office or agency maintained for such purpose pursuant to
Section
9.2
; provided, however, that at the option of the Company, interest on any series of Registered
Securities that bear interest may be paid (i) by check mailed to the address of the Person entitled
thereto as it shall appear on the Security Register of such series (unless, with respect to a
Global Security, the rules of the Depositary require payment of such amount by wire transfer) or
(ii) by wire transfer to an account maintained by the Person entitled thereto as specified in the
Security Register of such series.
Unless otherwise provided as contemplated by
Section 3.1
, any interest on any Security
of any series which is payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called
Defaulted Interest
) shall forthwith cease to be payable to
the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as provided in
clause (1)
or
(2)
below:
(1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Securities of such series (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security of such series and the date of
the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted
28
Interest, which shall be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of
the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date
and, in the name and at the expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor to be given to each Holder of
Securities of such series in the manner set forth in
Section 1.7
, not less than 10 days
prior to such Special Record Date. The Trustee may, in its discretion, in the name and at the
expense of the Company, cause a similar notice to be published at least once in an Authorized
Newspaper, but such publication shall not be a condition precedent to the establishment of such
Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no longer be payable
pursuant to the following
clause (2)
.
(2) The Company may make payment of any Defaulted Interest on the Securities of any series 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 3.7
, each Security delivered under
this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.
Section 3.8
Persons Deemed Owners
.
Prior to due presentment of 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 3.7
) any interest and any Additional Amounts or other
payments on such Security and for all other purposes whatsoever, whether or not such Security shall
be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall
be affected by notice to the contrary.
Except as otherwise specified as contemplated by
Section 3.1
, none of the Company, the
Trustee or any agent of the Company or the Trustee shall have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial ownership interests
of a Global Security, or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests. Notwithstanding the foregoing, with respect to any Global
Security, nothing herein shall prevent the Company or the Trustee, or any agent of the Company or
the Trustee, from giving effect to any written certification, proxy or other authorization
furnished by any Depositary (or its nominee), as a Holder, with respect to such Global Security or
impair, as between such Depositary and owners of beneficial interests in such
29
Global Security, the operation of customary practices governing the exercise of the rights of
such Depositary (or its nominee) as Holder of such Global Security.
Section 3.9
Cancellation
.
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 canceled by the Trustee. The Security
Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment, and all Securities so delivered shall be promptly
canceled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section, except as expressly permitted by this Indenture or
as otherwise specified as contemplated by
Section 3.1
. On request of the Company at the
time of surrender, the Trustee shall deliver to the Company canceled Securities held by the
Trustee. In the absence of such request, all canceled Securities held by the Trustee shall be
disposed of in accordance with the Trustees customary procedures.
Section 3.10
Computation of Interest
.
Except as otherwise specified as contemplated by
Section 3.1
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.
ARTICLE 4
SATISFACTION AND DISCHARGE
Section 4.1
Satisfaction and Discharge of Indenture
.
This Indenture shall upon Company Request cease to be of further effect with respect to
Securities of or within any series (except as to any surviving rights of registration of transfer
or exchange of such Securities and replacement of such Securities which may have been lost, stolen
or mutilated as 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 Securities, when
(1) either
(A) all such Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided in
Section 3.6
and (ii) Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Trustee or the Company and thereafter repaid to the
Company or discharged from such trust, as provided in
Section 10.3
) have been delivered to
the Trustee for cancellation; or
30
(B) all such Securities 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, in the case of
clause (i)
,
(ii)
or
(iii)
above, has
deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose money
in 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
and any Additional Amounts to the date of such deposit (in the case of Securities which have become
due and payable) or to the Stated Maturity or Redemption Date, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable hereunder by the Company
with respect to the Outstanding Securities of such series;
(3) the Company has complied with any other conditions specified pursuant to
Section
3.1
to be applicable to the Outstanding Securities of such series; and
(4) 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 Securities have been complied with.
If any Outstanding Securities of such series are to be redeemed prior to their Stated
Maturity, whether pursuant to any optional redemption provisions or in accordance with any
mandatory sinking fund requirement, the trust agreement evidencing the trust referred to in
subclause (B)
of
clause (1)
of this
Section 4.1
shall provide therefore and
the Company shall make such arrangements as are satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the Company.
Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under
Section 6.7
, the obligations of the Trustee to any
Authenticating Agent under
Section 6.14
and, if money shall have been deposited with the
Trustee pursuant to
subclause (B)
of
clause (1)
of this
Section 4.1
, the
obligations of the Trustee under
Section 4.2
and the last paragraph of
Section 10.3
shall survive.
Section 4.2
Application of Trust Money
.
Subject to the provisions of the last paragraph of
Section 10.3
, all money deposited
with the Trustee pursuant to
Section 4.1
shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may
31
determine, to the Persons entitled thereto, of the principal and any premium and interest or
Additional Amounts for whose payment such money has been deposited with the Trustee.
Section 4.3
Reinstatement
.
If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations
deposited with respect to Securities of any series in accordance with
Section 4.1
by reason
of any legal proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the Companys
obligations under this Indenture with respect to the Securities of such series and the Securities
of such series shall be revived and reinstated as though no deposit had occurred pursuant to
Section 4.1
until such time as the Trustee or Paying Agent is permitted to apply all such
money or U.S. Government Obligations in accordance with
Section 4.1
; provided, however,
that if the Company has made any payment of principal of, premium (if any) or interest on, or any
Additional Amounts with respect to, any Securities because of the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Securities to receive such
payment from the money or U.S. Government Obligations held by the Trustee or Paying Agent.
ARTICLE 5
REMEDIES
Section 5.1
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 occasioned by the subordination provisions applicable to any Securities or 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), unless it is
either inapplicable to a particular series or it is specifically deleted or modified in the Board
Resolution, supplemental indenture, Officers Certificate establishing such series, or form of
Security for such series:
(1) default in the payment of any interest on, or any Additional Amounts with respect to, any
Security of that series when it becomes due and payable, and continuance of such default for a
period of 30 days (unless the entire amount of such payment is deposited by the Company with the
Trustee or with a Paying Agent prior to the expiration of such period of 30 days); or
(2) default in the payment of the principal of or any premium 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, and continuance of such default for a period of 30 days; or
(4) default in the performance, or breach, of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty a default in whose performance or
32
whose breach is elsewhere in this
Section 5.1
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 60 days after there has
been given, by registered or certified mail, to the Company by the Trustee or to the Company and
the Trustee by the Holders of at least 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 proceeding 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 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 in the Board
Resolution, supplemental indenture or Officers Certificate establishing that series.
Notwithstanding the foregoing provisions of this
Section 5.1
, if the principal of,
premium (if any) or any interest on, or any Additional Amounts with respect to, any Security is
payable in a currency or currencies (including a composite currency) other than Dollars and such
currency or currencies are not available to the Company for making payment thereof due to the
imposition of exchange controls or other circumstances beyond the control of the Company (a
Conversion Event
), the Company will be entitled to satisfy its obligations to Holders of
the Securities by making such payment in Dollars in an amount equal to the Dollar equivalent of the
amount payable in such other currency, as determined by the Company by reference to the Exchange
Rate, as such Exchange Rate is certified for customs purposes by the Federal Reserve Bank of New
York on the date of such payment, or, if such rate is not then available, on the basis
33
of the most recently available Exchange Rate. Notwithstanding the foregoing provisions of
this
Section 5.1
, any payment made under such circumstances in Dollars where the required
payment is in a currency other than Dollars will not constitute an Event of Default under this
Indenture.
Promptly after the occurrence of a Conversion Event with respect to the Securities of any
series, the Company shall give written notice thereof to the Trustee; and the Trustee, promptly
after receipt of such notice, shall give notice thereof in the manner provided in
Section
1.7
to the Holders of such series. Promptly after the making of any payment in Dollars as a
result of a Conversion Event with respect to the Securities of any series, the Company shall give
notice in the manner provided in
Section 1.7
to the Holders of such series, setting forth
the applicable Exchange Rate and describing the calculation of such payments.
Section 5.2
Acceleration of Maturity; Rescission and Annulment
.
Unless the Board Resolution, supplemental indenture or Officers Certificate establishing such
series provides otherwise, if an Event of Default (other than an Event of Default specified in
Section 5.1(5)
or
5.1(6)
) 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 of all the Securities of that series (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of such Securities as may
be specified by the terms thereof) and premium, if any, together with accrued and unpaid interest,
if any, thereon, and Additional Amounts, if any, with respect thereto, to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders),
and upon any such declaration such principal amount (or specified amount) and premium, if any,
together with accrued and unpaid interest, if any, thereon, and Additional Amounts, if any, with
respect thereto, shall become immediately due and payable. Unless the Board Resolution,
supplemental indenture or Officers Certificate establishing such series provides otherwise, if an
Event of Default specified in
Section 5.1(5)
or
5.1(6)
with respect to Securities
of any series at the time Outstanding occurs, the principal amount of all the Securities of that
series (or, if any Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified by the terms thereof) and premium,
if any, together with accrued and unpaid interest, if any, thereon, and Additional Amounts, if any,
with respect thereto, shall automatically, and without any declaration or other action on the part
of the Trustee or any Holder, 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 5
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, and any Additional Amounts with respect to, all Securities of
that series (or of all series, as the case may be),
34
(B) the principal of or premium (if any) on any Securities of that series (or of all series,
as the case may be) which have become due otherwise than by such declaration of acceleration and
interest thereon at the rate or rates prescribed therefor in such Securities (in the case of
Original Issue Discount Securities, the Securities Yield to Maturity),
(C) to the extent that payment of such interest is lawful, interest upon overdue interest and
any Additional Amounts at the rate or rates prescribed therefor in such Securities (in the case of
Original Issue Discount Securities, the Securities Yield to Maturity), and
(D) all sums paid or advanced by the Trustee hereunder, the compensation, expenses,
disbursements and advances due to Trustee under
Section 6.7
, and all other amounts due
under
Section 6.7
;
(2) all Events of Default with respect to Securities of that series (or of all series, as the
case may be), other than the nonpayment of the principal of Securities of that series (or of all
series, as the case may be) which have become due solely by such declaration of acceleration, have
been cured or waived as provided in
Section 5.13
; and
(3) the rescission would not conflict with any final judgment or decree of a court of
competent jurisdiction.
No such rescission shall affect any subsequent default or impair any right consequent thereon.
Section 5.3
Collection of Indebtedness and Suits for Enforcement by Trustee
.
The Company covenants that if
(1) default is made in the payment of any interest on, or any Additional Amounts with respect
to, any Security of any series when such interest or Additional Amounts shall become 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 on, and Additional Amounts with respect to, 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 or Additional Amounts, at the rate or rates prescribed therefor in such Securities
(or in the case of Original Issue Discount Securities, the Securities Yield to Maturity), 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, and all other amounts due the Trustee under
Section 6.7
.
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
35
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 deemed 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.
In addition, if any other Event of Default with respect to Securities of any series occurs and
is continuing, the Trustee may in its discretion proceed, in its own name and as trustee of an
express trust, to protect and enforce its rights and the rights of the Holders of Securities of
such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.
Section 5.4
Trustee May File Proofs of Claim
.
In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal (or lesser amount in
the case of Original Issue Discount Securities) of the Securities shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal of, premium (if any), interest
on, or any Additional Amounts with respect to, such Securities) shall be entitled and empowered, by
intervention in such proceeding or otherwise,
(1) to file and prove a claim for the whole amount of principal (or lesser amount in the case
of Original Issue Discount Securities) (and premium, if any) and interest and any Additional
Amounts owing and unpaid in respect of the Securities and to file such other papers or documents as
may be necessary or advisable to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and of the Holders allowed in such judicial proceeding, and
(2) to collect and receive any monies 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 6.7
.
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;
provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a
36
trustee in bankruptcy or similar official and be a member of a creditors or other similar
committee.
Section 5.5
Trustee May Enforce Claims Without Possession of Securities
.
All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding may be instituted by the Trustee in its
own name as trustee of an express trust.
Section 5.6
Application of Money Collected
.
Subject to the subordination provisions applicable to any series of Securities, any money
collected by the Trustee pursuant to this Article shall be applied and paid 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 on, or any Additional Amounts with respect to, the
Securities, 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 6.7
in
connection with such series of Securities in respect of which money or other property is
collected;
SECOND: Subject to the terms of any subordination entered into as contemplated by
Section 3.1
, to the payment of the amounts then due and unpaid for principal of and
any premium, if any, and interest on, and any Additional Amounts with respect to, 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, if any, interest on and Additional
Amounts, respectively; and
THIRD: The balance, if any, to the Company or any other Person or Persons entitled
thereto.
To the fullest extent allowed under applicable law, if for the purpose of obtaining judgment
against the Company in any court it is necessary to convert the sum due in respect of the principal
of, premium (if any) or interest on, or any Additional Amounts with respect to, the Securities of
any series (the
Required Currency
) into a currency in which a judgment will be rendered
(the
Judgment Currency
), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the Business Day in The City of New York next
preceding that on which final judgment is given. Neither the Company nor the Trustee shall be
liable for any shortfall nor shall any of them benefit from any windfall in payments to Holders of
Securities under this
Section 5.6
caused by a change in exchange rates between the time the
amount of a judgment against it is calculated as above and the time the Trustee converts the
Judgment Currency into the Required Currency to make payments under this
Section 5.6
to
Holders of Securities, but payment of such judgment shall discharge all amounts owed by the Company
on the claim or claims underlying such judgment.
37
Section 5.7
Limitation on Suits
.
Subject to
Section 5.8
, 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) an Event of Default with respect to such series of Securities shall have occurred and be
continuing and such Holder has previously given written notice to the Trustee of such continuing
Event of Default;
(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 and, if requested, provided 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 (or of all series, as the case may be).
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 to affect, disturb or prejudice the rights of any
other of such Holders, or to obtain or to seek to obtain priority or preference over any other of
such Holders or to enforce any right under this Indenture, except in the manner herein provided and
for the equal and ratable benefit of all of such Holders.
Section 5.8
Right of Holders to Receive Principal, Premium and Interest
.
Notwithstanding any other provision in this Indenture, the right of any Holder of any Security
to receive payment of the principal of and any premium and (subject to
Section 3.7
)
interest on, or any Additional Amounts with respect to, such Security on the Stated Maturity or
Stated 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 after the respective due dates,
shall not be impaired without the consent of such Holder.
Section 5.9
Restoration of Rights and Remedies
.
If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights
38
and remedies of the Trustee and the Holders shall continue as though no such proceeding had
been instituted.
Section 5.10
Rights and Remedies Cumulative
.
Except as otherwise provided in
Section 5.7
or with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section
3.6
, no right or remedy herein conferred upon or reserved to the Trustee or 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 5.11
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
this
Article 5
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 5.12
Control by Holders
.
With respect to Securities of any series, the Holders of a majority in principal amount of the
Outstanding Securities of such 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, relating to or arising under an Event of Default described in
clause
(1)
,
(2)
,
(3)
,
(4)
or
(7)
of
Section 5.1
, and with
respect to all Securities the Holders of a majority in principal amount of all Outstanding
Securities shall have the right to direct the time, method and place of conducting any remedy
available to the Trustee, or exercising any trust or power conferred on the Trustee, relating to or
arising under an Event of Default described in
clause (5)
or
(6)
of
Section
5.1
, provided that in each such case.
(1) the Trustee shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, determines that the action so directed may not lawfully be taken or would
conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer,
determine that the proceedings so directed would involve it in personal liability or be unjustly
prejudicial to the Holders not taking part in such direction, and
(2) the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction or this Indenture.
Section 5.13
Waiver of Past Defaults
.
Subject to
Section 5.8
and
Section 9.2
, the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities of any series may on behalf of the
39
Holders of all the Securities of such series waive any past default or Event of Default
described in
clause (1)
,
(2)
,
(3)
,
(4)
or
(7)
of
Section 5.1
hereunder with respect to such series and its consequences, and the Holders of
a majority in principal amount of all Outstanding Securities may on behalf of the Holders of all
Securities waive any Event of Default described in
clause (5)
or
(6)
of
Section
5.1
hereunder and its consequences, except a default
(1) in the payment of the principal of or any premium or interest on, or any Additional
Amounts with respect to, any Security as and when the same shall become due and payable by the
terms thereof, otherwise than by acceleration (unless such default has been cured as provided
herein), or
(2) in respect of a covenant or provision hereof which under
Article 9
cannot be
modified or amended without the consent of the Holder of each Outstanding Security 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 5.14
Undertaking for Costs
.
All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that 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; provided that the provisions of this
Section
5.14
shall not apply to any suit instituted by the Company, to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the outstanding Securities of any series, or to any suit instituted
by any Holder for the enforcement of the payment of the principal of or interest on any Security on
or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of
redemption, on the redemption date).
ARTICLE 6
THE TRUSTEE
Section 6.1
Certain Duties and Responsibilities
.
(1) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in their
exercise as a prudent individual would exercise or use under the circumstances in the conduct of
his or her own affairs.
(2) Except during the continuance of an Event of Default:
40
(A) The Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this Indenture
against the Trustee.
(B) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon Officers
Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of
this Indenture; however, in the case of any such Officers Certificates or Opinions of Counsel
which by any provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers Certificates and Opinions of Counsel to determine whether or
not they conform to the requirements of this Indenture (but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein).
(3) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct or bad faith, except that:
(A) This paragraph does not limit the effect of
clause (2)
of this
Section
6.1
.
(B) The Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.
(C) The Trustee shall not be liable with respect to any action taken, suffered or omitted to
be taken by it with respect to Securities of any series in good faith in accordance with the
direction of the Holders of a majority in principal amount of the Outstanding Securities of such
series relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture
with respect to the Securities of such series.
(4) Every provision of this Indenture that in any way relates to the Trustee is subject to
clauses (1)
,
(2)
and
(3)
of this
Section 6.1
.
(5) The Trustee may refuse to perform any duty or to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of Holder or Holders pursuant to
this Indenture, unless such Holder or Holders shall have offered and, if requested, provided 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.
(6) No provision of this Indenture shall require the Trustee to risk its own funds or
otherwise incur any financial liability in the performance of any of its duties, 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 is not reasonably assured to it.
(7) The Paying Agent, the Security Registrar and any Authenticating Agent shall be entitled to
the protections, immunities and standard of care as are set forth in
clauses (1)
,
(2)
and
(3)
of this
Section 6.1
with respect to the Trustee.
41
Section 6.2
Notice of Defaults
.
If a default occurs hereunder and is continuing with respect to Securities of any series and
it is known to a Responsible Officer of the Trustee, 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 except in the case of a default in the payment of principal
of (or premium, if any) or interest on, or any Additional Amounts with respect to, any Securities
of such series or in the payment of any sinking fund installment, the Trustee shall be protected in
withholding such notice if and so long as the Board of Trustees, the executive committee or a trust
committee of directors and/or Responsible Officers of the Trustee in good faith determine that the
withholding of such notice is in the interests of the holders of Securities of such series.
Section 6.3
Certain Rights of Trustee
.
Subject to the provisions of
Section 6.1
:
(1) in the absence of bad faith on the part of the Trustee, 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,
coupon, 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;
(2) 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;
(3) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order (unless other evidence is specifically required herein), and
any resolution of the Board of Trustees shall be sufficiently evidenced by a Board Resolution;
(4) 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), in the absence of bad faith on
its part, is entitled to and may rely upon an Officers Certificate;
(5) 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;
(6) 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
42
be responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder.
(7) the Trustee shall not be charged with knowledge of any default or Event of Default with
respect to the Securities of any series for which it is acting as Trustee unless either (1) a
Responsible Officer shall have actual knowledge of such default or Event of Default or (2) written
notice of such default or Event of Default shall have been given to the Trustee by the Company or
any other obligor on such Securities or by any Holder of such Securities; and
(8) the Trustee shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture.
Section 6.4
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 neither the Trustee nor any
Security Registrar, Paying Agent or Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. Neither the Trustee nor any Security Registrar, Paying Agent or
Authenticating Agent shall be accountable for the use or application by the Company of Securities
or the proceeds thereof.
Section 6.5
May Hold Securities and Act as Trustee under Other Indentures
.
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 6.8
and
6.13
, 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.
Subject to the limitations imposed by the Trust Indenture Act, nothing in this Indenture shall
prohibit the Trustee from becoming and acting as trustee under other indentures under which other
securities, or certificates of interest of participation in other securities, of the Company are
outstanding in the same manner as if it were not Trustee hereunder.
Section 6.6
Money Held in Trust
.
Subject to the provisions of
Sections 10.3
and
13.5
, all moneys received by
the Trustee shall, until used or applied, as provided herein, be held in trust for the purposes for
which they were received. 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 in writing with the
Company. So long as no Event of Default shall have occurred and be continuing, all interest
allowed on any such moneys shall be paid by the Company from time to time upon a Company Order.
Section 6.7
Compensation and Reimbursement
.
43
The Company shall pay to the Trustee from time to time such reasonable compensation for its
services as the Company and the Trustee may agree in writing from time to time. The Trustees
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred by it in connection with the performance of its duties under
this Indenture, except any such expense, disbursement or advance as may be attributable to its
negligence, willful misconduct or bad faith. Such expenses shall include the reasonable
compensation and expenses of the Trustees agents and counsel.
The Company shall indemnify the Trustee for, and hold it harmless against, any and all loss,
liability, damage, claim or expense (including attorneys fees and expenses, and including taxes
other than taxes based upon, measured by or determined by the income of the Trustee), including
without limitation the costs and expenses of defending itself against any third-party claim
(whether asserted by any Holder or any other Person (other than the Company to the extent of any
claim brought by it against the Trustee that establishes a breach by the Trustee in the observance
or performance of its duties under this Indenture)), incurred by it without negligence, willful
misconduct or bad faith arising out of or in connection with its acceptance or administration of
the trust or trusts hereunder, including the performance of its duties or the exercise of its
powers hereunder. With respect to any such claim other than a claim brought by the Company, (i)
the Trustee shall notify the Company promptly of any claim for which it may seek indemnity, (ii)
the Company may at its option defend the claim, in which event the Trustee shall cooperate in the
defense and the Trustee may have one separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel and (iii) the Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. This indemnification shall apply to
officers, directors, employees, shareholders and agents of the Trustee.
To secure the Companys payment obligations in this
Section 6.7
, the Trustee shall
have a lien prior to the Securities of any series on all money or property held or collected by the
Trustee, except that held in trust to pay principal of and interest on, or any Additional Amounts
with respect to, particular Securities of that series.
When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 5.1(5)
or
(6)
occurs, the expenses and the compensation for the services
are intended to constitute expenses of administration under any Bankruptcy Law.
The provisions of this
Section 6.7
and any lien arising hereunder shall survive the
resignation or removal of the Trustee or the discharge of the Companys obligations under this
Indenture and the termination of this Indenture.
Section 6.8
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 conflicting interest or resign, to the
extent and in the manner and with the effect provided by, and subject to the provisions of, the
Trust Indenture Act and this Indenture. To the extent permitted by the Trust Indenture Act, the
Trustee
44
shall not be deemed to have a conflicting interest by virtue of being a trustee under this
Indenture with respect to Securities of more than one series or any other indenture.
Section 6.9
Eligibility; Disqualification
.
There shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series (which need not be the same Trustee for all series). A Trustee may be
Trustee hereunder for Securities of one or more series. Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has (or if the Trustee is a member
of a bank holding company system, its bank holding company has) a combined capital and surplus of
at least $50,000,000 and subject to supervision or examination by federal or state (or the District
of Columbia) authority. If any such Person or bank holding company publishes reports of condition
at least annually, pursuant to law or to the requirements of its supervising or examining
authority, then for the purposes of this
Section 6.9
and to the extent permitted by the
Trust Indenture Act, the combined capital and surplus of such Person or bank holding company 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 with respect to the Securities of any series
shall cease to be eligible in accordance with the provisions of this
Section 6.9
, it shall
resign immediately in the manner and with the effect hereinafter specified in this
Article
6
.
The Indenture shall always have a Trustee who satisfies the requirements of
Sections
310(a)(1)
,
310(a)(2)
and
310(a)(5)
of the Trust Indenture Act.
Section 6.10
Resignation and Removal; Appointment of Successor
.
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 6.11
.
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 6.11
shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may petition at the
expense of the Company any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.
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. If the instrument of acceptance by a successor
Trustee required by
Section 6.11
shall not have been delivered to the removed Trustee
within 30 days after the receipt of such notice of removal, the removed Trustee may petition at the
expense of the Company any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.
45
If at any time:
(1) the Trustee shall fail to comply with
Section 6.8
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 6.9
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,
then, in any such case, (A) the Company by a Board Resolution may remove the Trustee with respect
to all Securities, or (B) subject to
Section 5.14
, 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.
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 such successor Trustee or Trustees shall comply with the applicable requirements of
Section 6.11
. If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall
be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities
of such series delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of
Section 6.11
, become the successor Trustee with respect to the
Securities of such series and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders and accepted appointment in the manner required by
Section 6.11
, the retiring Trustee may petition, or any Holder who has been a bona fide
Holder of a Security of such series for at least six months may petition, on behalf of himself and
all others similarly situated, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.
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 1.7
. Each notice shall include the name of the successor Trustee with respect to
the Securities of such series and the address of its Corporate Trust Office.
Section 6.11
Acceptance of Appointment by Successor
.
46
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.
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 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.
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 the first or second preceding paragraph, as the case may be.
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 6
.
Section 6.12
Merger, Conversion, Consolidation or Succession to Business
.
47
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 or acquiring all or substantially
all the corporate trust business of the Trustee (including the administration of the trust created
by this Indenture), 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, or by succession to or acquisition of all or substantially
all of the corporate trust business of, such successor Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.
Section 6.13
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) as provided in the Trust Indenture Act, 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 6.14
Appointment of Authenticating Agent
.
The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be 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 3.6
, 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, except as other specified as contemplated by
Section 3.1
, shall at all times
be a bank or trust company or 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 (or if the Authenticating Agent is a member of a bank holding
company system, its bank holding company has) a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State (or the District of
Columbia) 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 6.14
, 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 6.14
, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in this
Section
6.14
.
48
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 or acquiring 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
6.14
, 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 for any series of Securities may resign at any time by giving written
notice thereof to the Trustee for such series and to the Company. The Trustee for any series of
Securities may at any time terminate the agency of an Authenticating Agent by giving written notice
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 for such series
may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall
give notice of such appointment in the manner provided in
Section 1.7
to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve. 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 6.14
.
The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this
Section 6.14
, and the Trustee shall be entitled to
be reimbursed for such payments, subject to the provisions of
Section 6.7
.
If an appointment with respect to one or more series is made pursuant to this
Section
6.14
, the Securities of such series may have endorsed thereon, in lieu of 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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[TRUSTEE], as Trustee
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By:
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As Authenticating Agent
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By:
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Authorized Officer
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Notwithstanding any provision of this
Section 6.14
to the contrary, if at any time any
Authenticating Agent appointed hereunder with respect to any series of Securities shall not also be
acting as the Security Registrar hereunder with respect to any series of Securities, then, in
addition to all other duties of an Authenticating Agent hereunder, such Authenticating Agent
49
shall also be obligated: (i) to furnish to the Security Registrar promptly all information
necessary to enable the Security Registrar to maintain at all times an accurate and current
Security Register; and (ii) prior to authenticating any Security denominated in a foreign currency,
to ascertain from the Company the units of such foreign currency that are required to be determined
by the Company pursuant to
Section 3.2
.
ARTICLE 7
HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 7.1
Company to Furnish Trustee Names and Addresses of Holders
.
The Company will furnish or cause to be furnished to the Trustee
(1) not later than 15 days after the Regular Record Date for each respective series of
Securities, or if there is no Regular Record Date for such series of Securities, semi-annually on
January 1 and July 1, a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities of each series as of such date, as the case may be, and
(2) 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;
provided that no such list need be furnished by the Company to the Trustee so long as the Trustee
is acting as Security Registrar.
Section 7.2
Preservation of Information; Communications to Holders
.
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 7.1
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
7.1
upon receipt of a new list so furnished.
The rights of 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.
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 7.3
Reports by Trustee
.
50
The Trustee shall transmit to Holders and any other required Persons 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.
As promptly as practicable after each January 1 beginning with the January 1 following the
date of this Indenture, and in any event prior to March 1 in each year, the Trustee shall mail to
each Holder a brief report dated as of December 31 of the prior year if and to the extent required
by
Section 313(a)
of the Trust Indenture Act. The Trustee shall also comply with
Section 313(b)
of the Trust Indenture Act.
A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when any Securities are listed on any stock
exchange.
Section 7.4
Reports by Company
.
The Company shall file with the Trustee and the Commission, and transmit to Holders and any
other required Persons within 30 days after the filing with the Trustee, 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 the Trust Indenture 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 30 days
after the same is so required to be filed with the Commission.
ARTICLE 8
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
Section 8.1
Company May Consolidate, etc., Only on Certain Terms
.
The Company may not merge or consolidate with or into any other Person, in a transaction in
which it is not the surviving Person, or sell, convey, transfer, lease or otherwise dispose of all
or substantially all of its assets to any Person, unless (i) the surviving or transferee Person is
organized and existing under the laws of the United States or a State thereof or the District of
Columbia and such Person expressly assumes by supplemental indenture all the obligations of the
Company under the Securities and under this Indenture, (ii) immediately thereafter, giving effect
to such merger or consolidation, or such sale, conveyance, transfer or other disposition, no
default or Event of Default shall have occurred and be continuing and (iii) the Company shall have
delivered to the Trustee an Officers Certificate and an Opinion of Counsel each stating that such
merger, consolidation, sale, conveyance, transfer, lease or other disposition complies with this
Article 8
and that all conditions precedent herein provided for relating to such
transaction have been complied with.
Section 8.2
Successor Substituted
.
Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the properties and assets
51
of the Company in accordance with
Section 8.1
, the successor Person formed by such
consolidation or into which the Company is merged or to which such sale, 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 9
SUPPLEMENTAL INDENTURES
Section 9.1
Supplemental Indentures Without Consent of Holders
.
Without the consent of any Holders, the Company , when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto for any of the following purposes:
(1) to evidence the succession of another Person to the Company, or successive successions,
and the assumption by any such successor of the covenants and obligations of the Company herein and
in the Securities in compliance with
Article 8
; or
(2) to add to the covenants of the Company for the benefit of the Holders of any one or more
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), to convey, transfer, assign, mortgage or pledge any property to or with the Trustee or
otherwise secure any series of the Securities, including provisions regarding the circumstances
under which collateral may be released or substituted, to surrender any right or power herein
conferred upon the Company or to comply with any requirement of the Commission or otherwise in
connection with the qualification of this Indenture or any supplemental indenture under the Trust
Indenture Act; or
(3) to add any additional Events of Default for the benefit of the Holders of any one or more
series of Securities (and if such additional Events of Default are to be for the benefit of less
than all series of Securities, stating that such additional Events of Default are expressly being
included solely for the benefit of such series); or
(4) to add to 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 global form or 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 (A) shall
neither (i) apply to any Outstanding Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision, or (ii) modify the rights of
any Holder of any Outstanding Security with respect to such provision, or (B) shall become
effective when there is no Security then Outstanding; or
52
(6) to add or provide for a guaranty or guarantees of the Securities or additional obligors on
the Securities; or
(7) to establish the form or terms of Securities of any series as permitted by
Sections
2.1
and
3.1
; or
(8) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 6.11
; or
(9) to correct or supplement any provision herein which may be defective or inconsistent with
any other provision herein, to cure any ambiguity or omission, to correct any mistake, or to
conform to any prospectus pursuant to which Securities of any series were offered; or
(10) to make any other provisions with respect to matters or questions arising under this
Indenture, provided such action shall not adversely affect the rights of any Holder of Securities
of any series; or
(11) to make any change that does not adversely affect the rights of any Holder.
Section 9.2
Supplemental Indentures with Consent of Holders
.
With the consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture (acting as one class), 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 any indenture supplemental hereto 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 the
date fixed for payment of interest on or any sinking fund payment with respect to, any Security, or
reduce the principal amount thereof or the rate of interest thereon, any Additional Amounts with
respect thereto or any premium payable upon the redemption thereof, or change any obligation of the
Company to pay Additional Amounts (except as contemplated by
Section 8.1
and permitted by
clause (1)
of
Section 9.1
), or reduce the amount of the principal of an Original
Issue Discount Security or any other Security which would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to
Section 5.2
, or change any Place of
Payment where, or the coin or currency or currencies (including composite currencies) in which any
Security or any premium or interest thereon or Additional Amounts with respect thereto 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
53
the Redemption Date), or modify the provisions of this Indenture with respect to the
subordination of a Security in a manner adverse to the holder thereof, 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 9.2
,
Section 5.13
or
Section 10.8
, except to increase any such percentage or to provide with respect to any
particular series the right to condition the effectiveness of any supplemental indenture as to that
series on the consent of the Holders of a specified percentage of the aggregate principal amount of
Outstanding Securities of such series (which provision may be made pursuant to
Section 3.1
without the consent of any Holder) 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 9.2
and
Section 10.8
, or the deletion of this proviso, in
accordance with the requirements of
Sections 6.11
and
9.1(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.
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 9.3
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
Sections 6.1
and
6.3
) shall
be fully protected in relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not
be obligated to, enter into any such supplemental indenture which affects the Trustees own rights,
duties, immunities or liabilities under this Indenture or otherwise.
Section 9.4
Effect of Supplemental Indentures
.
Upon the execution of any supplemental indenture under this
Article 9
, 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; provided that if such supplemental
indenture makes any of the changes described in
clauses (1)
through
(3)
of the
first proviso to
54
Section 9.2
, such supplemental indenture shall bind each Holder of a Security who has
consented to it and every subsequent Holder of such Security or any part thereof.
Section 9.5
Conformity with Trust Indenture Act
.
Every supplemental indenture executed pursuant to this
Article 9
shall conform to the
requirements of the Trust Indenture Act.
Section 9.6
Reference in Securities to Supplemental Indentures
.
Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this
Article 9
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 10
COVENANTS
Section 10.1
Payment of Principal, Premium and Interest
.
The Company covenants and agrees for the benefit of the Holders of each series of Securities
that it will duly and punctually pay the principal of and any premium and interest on, and any
Additional Amounts with respect to, the Securities of that series in accordance with the terms of
the Securities and this Indenture.
Section 10.2
Maintenance of Office or Agency
.
The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of any such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands. Unless otherwise provided in a
supplemental indenture or pursuant to
Section 3.1
hereof, the Place of Payment for any
series of Securities shall be the Corporate Trust Office of the Trustee.
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
55
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 10.3
Money for Securities Payments to be Held in Trust
.
If the Company, any Subsidiary or any of their respective Affiliates shall at any time act as
Paying Agent with respect to any series of Securities, such Paying Agent will, on or before each
due date of the principal of or any premium or interest on, or any Additional Amounts with respect
to, 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, or any
Additional Amounts, 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, on or prior to each due date of the principal of or any premium or interest on, or Additional
Amounts with respect to, 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 so to act.
The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this
Section 10.3
, that such Paying Agent will (1)
comply with the provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2)
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, 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 with respect to one or more series of Securities, 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, in
trust for the payment of the principal of or any premium or interest on, or any Additional Amounts
with respect to, any Security of any series and remaining unclaimed for a period ending on the
earlier of the date that is ten Business Days prior to the date such money would escheat to the
State or two years after such principal, premium or interest or Additional Amount 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,
56
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 an Authorized Newspaper in The Borough of Manhattan,
The City of New York and in such other Authorized Newspapers as the Trustee shall deem appropriate,
notice that such money remains unclaimed and that, after a date specified herein, which shall not
be less than 30 days from the date of such publication, any unclaimed balance of such money then
remaining will, unless otherwise required by mandatory provisions of applicable escheat, or
abandoned or unclaimed property law, be repaid to the Company.
Section 10.4
Statement by Officers as to Default
.
At any time at which there are Outstanding Securities of any series issued under this
Indenture, 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 complying with
Section 314(a)(4)
of the Trust Indenture Act and stating that a review of the activities of
the Company during such year and of performance under this Indenture has been made under the
supervision of the signers thereof and stating whether or not to the best knowledge of the signers
thereof, based upon such review, 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. One of the
officers signing the Officers Certificate delivered pursuant to this
Section 10.05
shall
be the principal executive, financial or accounting officer of the Company.
Section 10.5
Existence
.
Subject to
Article 8
, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence.
Section 10.6
All Securities to be Equally and Ratably Secured
.
Unless specified otherwise by the Company pursuant to
Section 3.1
with respect to any
series, the Company will not itself secure Securities of any one or more series with any Mortgage,
without effectively providing that the Securities of every other series shall be secured equally
and ratably by such Mortgage.
Section 10.7
Maintenance of Properties
.
The Company will cause all properties used or useful in the conduct of its business to be
maintained and kept in good condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as, and to the extent, in the judgment of the Company may be necessary or
appropriate in connection with its business; provided, however, that nothing in this Section shall
prevent the Company from discontinuing the operation or maintenance of any of such properties if
such discontinuance is, in the judgment of the Company, desirable in the conduct of its business
and not disadvantageous in any material respect to the Holders.
57
Section 10.8
Payment of Taxes and Other Claims
.
The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or upon the income, profits or property of the Company, and (2) all lawful claims for
labor, materials and supplies which, if unpaid, might by law become a lien upon the property of the
Company; provided, however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim (i) whose amount, applicability or
validity is being contested in good faith by appropriate proceedings or (ii) if the failure to pay
or discharge would not have a material adverse effect on the assets, business, operations,
properties or financial condition of the Company and its Subsidiaries, taken as a whole.
Section 10.9
Waiver of Certain Covenants
.
Except as otherwise specified as contemplated by
Section 3.1
for Securities of such
series, the Company may, with respect to the Securities of any series, omit in any particular
instance to comply with any term, provision or condition set forth in any covenant provided
pursuant to
Sections 3.1(22)
,
9.1(2)
,
8.1
,
10.4
,
10.5
,
10.6
,
10.7
or
10.8
for the benefit of the Holders of such series if before
or after the time for such compliance the Holders of at least a 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.
Section 10.10
Additional Amounts
.
If the Securities of a series expressly provide for the payment of Additional Amounts, the
Company will pay to the Holder of any Security of such series Additional Amounts as expressly
provided therein. Whenever in this Indenture there is mentioned, in any context, the payment of
the principal of, or premium (if any) or interest on any Security of any series or the net proceeds
received from the sale or exchange of any Security of any series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided for in this
Section 10.10
to
the extent that, in such context, Additional Amounts are, were or would be payable in respect
thereof pursuant to the provisions of this
Section 10.10
and express mention of the payment
of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not made.
If the Securities of a series provide for the payment of Additional Amounts, at least 10 days
prior to the first Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to Maturity, the first day on which a
payment of principal and any premium is made), and at least 10 days prior to each date of payment
of principal and any premium or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers Certificate, the Company shall furnish the Trustee and
the Companys principal Paying Agent or Paying Agents, if other than the Trustee, with an Officers
58
Certificate instructing the Trustee and such Paying Agent or Paying Agents whether such
payment of principal of and any premium or interest on the Securities of that series shall be made
to Holders of Securities of that series who are United States Aliens without withholding for or on
account of any tax, assessment or other governmental charge described in the Securities of that
series. If any such withholding shall be required, then such Officers Certificate shall specify
by country the amount, if any, required to be withheld on such payments to such Holders of
Securities and the Company will pay to such Paying Agent the Additional Amounts required by this
Section 10.10
. The Company covenants to indemnify the Trustee and any Paying Agent for,
and to hold them harmless against any loss, liability or expense reasonably incurred without
negligence, willful misconduct or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers Certificate furnished pursuant
to this
Section 10.10
.
ARTICLE 11
REDEMPTION OF SECURITIES
Section 11.1
Applicability of Article
.
Securities of any series that are redeemable in whole or in part before their Stated Maturity
shall be redeemable in accordance with their terms and (except as otherwise specified as
contemplated by
Section 3.1
for such Securities) in accordance with this
Article
11
.
Section 11.2
Election to Redeem; Notice to Trustee
.
The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by
Section 3.1
for such Securities. In case
of any redemption at the election of the Company of less than all the Securities of any series
(including any such redemption affecting only a single Security), the Company shall, at least 45
days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the principal amount
of Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to
be redeemed. In the case of any redemption of Securities (i) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or elsewhere in this
Indenture or (ii) pursuant to an election of the Company which is subject to a condition specified
in the terms of such Securities, the Company shall furnish the Trustee with an Officers
Certificate evidencing compliance with such restriction or condition.
Section 11.3
Selection by Trustee of Securities to Be Redeemed
.
If less than all the Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed or unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected not more than 45 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not
previously called for redemption, on a pro-rata basis, or in the Trustees discretion, by lot, or
by such other method as the Trustee shall deem fair and appropriate, provided that the unredeemed
59
portion of the principal amount of any Security shall be in an authorized denomination (which
shall not be less than the minimum authorized denomination) for such Security.
If any Security selected for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed (so far as may be) to be the portion selected for redemption.
The Trustee shall promptly notify the Company and the Security Registrar in writing of the
Securities selected for redemption as aforesaid and, in case of any Securities selected for partial
redemption as aforesaid, 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 11.4
Notice of Redemption
.
Notice of redemption shall be given by first-class mail, postage prepaid, mailed not fewer
than 30 nor more than 90 days prior to the Redemption Date, unless a shorter period is specified in
the Securities to be redeemed, to each Holder of Securities to be redeemed, at its address
appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price (including accrued interest, if any, to be paid),
(3) if less than all the Outstanding Securities of any series consisting of more than a single
Security are to be redeemed, the identification (and, in the case of partial redemption of any such
Securities, the principal amounts) of the particular Securities to be redeemed and, if less than
all the Outstanding Securities of any series consisting of a single Security are to be redeemed,
the principal amount of the particular Security to be redeemed,
(4) in case any Security is to be redeemed in part only, that on and after the Redemption
Date, upon surrender of such Security, the Holder of such Security will receive, without charge, a
new Security or Securities of authorized denominations for the principal amount thereof remaining
unredeemed;
(5) 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,
(6) the place or places where each such Security is to be surrendered for payment of the
Redemption Price,
60
(7) if applicable, the conversion price, the date on which the right to convert the principal
of the Securities or the portions thereof to be redeemed will terminate, and the place or places
where such Securities may be surrendered for conversion,
(8) that the redemption is for a sinking fund, if such is the case, and
(9) the CUSIP number or numbers and/or common codes of the Security being redeemed.
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, provided that the Company shall have prepared and provided to the Trustee the form of
such notice, or, if acceptable to the Trustee, provided sufficient information to enable the
Trustee to prepare such notice, in each case on a timely basis.
Section 11.5
Deposit of Redemption Price
.
On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in
Section 10.3
) 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.
If any Security called for redemption is converted, any money deposited with the Trustee or
with a Paying Agent or so segregated and held in trust for the redemption of such Security shall
(subject to any right of any Holder of such Security to receive interest thereon) be paid to the
Company on Company Request, or if then held by the Company, shall be discharged from such trust.
Section 11.6
Securities Payable on Redemption Date
.
Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest (and any Additional Amounts) to the
Redemption Date; provided, however, that, unless otherwise specified as contemplated by
Section
3.1
, installments of interest whose Stated Maturity is on or prior to the Redemption Date will
be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as
such at the close of business on the relevant Record Dates according to their terms and the
provisions of
Section 3.7
.
If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security or, in the case of Original Issue Discount
Securities, the Securities Yield to Maturity.
61
Section 11.7
Securities Redeemed in Part
.
Any Security which is to be redeemed only in part 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 its 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 Stated Maturity 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.
Unless otherwise specified as contemplated by
Section 3.1
, the Company and any
Affiliate of the Company may at any time purchase or otherwise acquire Securities in the open
market or by private agreement. Such acquisition shall not operate as or be deemed for any purpose
to be a redemption of the indebtedness represented by such Securities. Any Securities purchased or
acquired by the Company may be delivered to the Trustee and, upon such delivery, the indebtedness
represented thereby shall be deemed to be satisfied.
Section 3. 9
shall apply to all
Securities so delivered.
ARTICLE 12
SINKING FUNDS
Section 12.1
Applicability of Article
.
The provisions of this
Article 12
shall be applicable to any sinking fund for the
retirement of Securities of any series except as otherwise specified as contemplated by
Section
3.1
for such Securities.
The minimum amount of any sinking fund payment provided for by the terms of any Securities 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 such Securities is herein referred to as an
optional sinking fund payment
. Unless otherwise provided for by the terms of any
Securities, the cash amount of any sinking fund payment may be subject to reduction as provided in
Section 12.2
. Each sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.
Section 12.2
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 any Securities of such series required to be made pursuant to the terms of such
Securities as and to the extent provided for by the terms of such Securities; provided that the
Securities to be so credited have not been previously so credited. The Securities to be so
credited shall be received and credited for such purpose by the Trustee at the Redemption Price, as
62
specified in the Securities so to be redeemed, for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.
Section 12.3
Redemption of Securities for Sinking Fund
.
Not fewer than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to
each sinking fund payment date for any Securities, the Company will deliver to the Trustee an
Officers Certificate specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, 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 pursuant to
Section 12.2
and will also deliver to the
Trustee any Securities to be so delivered. Not fewer than 30 days prior to 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 11.3
and cause notice of the redemption thereof to
be given in the name of and at the expense of the Company in the manner provided in
Section
11.4
. Such notice having been duly given, the redemption of such Securities shall be made upon
the terms and in the manner stated in
Sections 11.6
and
11.7
.
ARTICLE 13
DEFEASANCE AND COVENANT DEFEASANCE
Section 13.1
Companys Option to Effect Defeasance or Covenant Defeasance
.
The Company may elect, at its option at any time, to have
Section 13.2
or
Section
13.3
applied to any Securities or any series of Securities, as the case may be, designated
pursuant to
Section 3.1
as being defeasible pursuant to such
Section 13.2
or
13.3
, in accordance with any applicable requirements provided pursuant to
Section
3.1
and upon compliance with the conditions set forth below in this
Article 13
. Any
such election shall be evidenced by a Board Resolution or in another manner specified as
contemplated by
Section 3.1
for such Securities.
Section 13.2
Defeasance and Discharge
.
Upon the Companys exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations with respect to such Securities as provided in this Section on
and after the date the conditions set forth in
Section 13.4
are satisfied (hereinafter
called
Defeasance
). For this purpose, such Defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by such Securities and to
have satisfied all its other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following which shall survive until otherwise
terminated or discharged hereunder:
(1) the rights of Holders of such Securities to receive, solely from the trust fund described
in
Section 13.4
and as more fully set forth in such Section, payments in respect of the
principal of and any premium and interest on, or any Additional Amounts with respect to, such
Securities when payments are due,
63
(2) the Companys obligations with respect to such Securities under Sections 3.4, 3.5, 3.6,
10.2 and 10.3,
(3) the rights, powers, trusts, duties and immunities of the Trustee hereunder, and
(4) this
Article 13
.
Subject to compliance with this
Article 13
, the Company may exercise its option (if any) to
have this Section applied to any Securities notwithstanding the prior exercise of its option (if
any) to have
Section 13.3
applied to such Securities.
Section 13.3
Covenant Defeasance
.
Upon the Companys exercise of its option (if any) to have this
Section 13.3
applied
to any Securities or any series of Securities, as the case may be,
(1) the Company shall be released from their obligations under
Sections 8.1
,
10.4
,
10.5
.
10.6
,
10.7
or
10.8
and any covenants provided
pursuant to
Sections 3.1(22)
or
9.1(2)
for the benefit of the Holders of such
Securities and
(2) the occurrence of any event specified in
Section 5.1(4)
(with respect to any of
Sections 8.1
,
10.4
,
10.5
.
10.6
,
10.7
or
10.8
and
any such covenants provided pursuant to
Sections 3.1(22)
or
9.1(2)
) and the
occurrence of any other Event of Default specified pursuant to
Section 3.1
or
Section
9.1(3)
shall be deemed not to be or result in an Event of Default,
in each case with respect to such Securities or any series of Securities as provided in this
Section 13.3
on and after the date the conditions set forth in
Section 13.4
are
satisfied (hereinafter called
Covenant Defeasance
). For this purpose, such Covenant
Defeasance means that, with respect to such Securities, the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set forth in any such
specified Section or such other covenant (to the extent so specified in the case of
Section
5.1(4)
and the occurrence of any Event of Default specified pursuant to
Section 3.1
or
Section 9.1(3)
), whether directly or indirectly by reason of any reference elsewhere herein
to any such Section or such other covenant or by reason of any reference in any such Section or
such other covenant to any other provision herein or in any other document, but the remainder of
this Indenture and such Securities shall be unaffected thereby.
Section 13.4
Conditions to Defeasance or Covenant Defeasance
.
The following shall be the conditions to the application of
Section 13.2
or
Section 13.3
to any Securities or any series of Securities, as the case may be:
(1) The Company shall have deposited or caused to be deposited irrevocably with the Trustee
(or another trustee which satisfies the requirements contemplated by
Section 6.9
and agrees
to comply with the provisions of this
Article 13
applicable to it) as trust funds in trust
for the purpose of making the following payments, specifically pledged as security for, and
dedicated solely to, the benefits of the Holders of such Securities,
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(A) in the case of Securities of a series denominated in currency of the United States of
America,
(i) cash in currency of the United States of America in an amount, or
(ii) U.S. Government Obligations which through the scheduled payment of principal and interest
in respect thereof in accordance with their terms will provide, not later than one day before the
due date of any payment, an amount in cash, or
(iii) a combination thereof, or
(B) in the case of Securities of a series denominated in currency other than that of the
United States of America,
(i) cash in the currency in which such series of Securities is denominated in an amount, or
(ii) Foreign Government Obligations which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not later than one day
before the due date of any payment, an amount in cash, or
(iii) a combination thereof,
in each case sufficient, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay and
discharge, and which shall be applied by the Trustee (or any such other qualifying trustee) to pay
and discharge, the principal of and any premium and interest on such Securities on the respective
Stated Maturities, in accordance with the terms of this Indenture and such Securities.
(2) For Securities denominated in United States dollars, in the event of an election to have
Section 13.2
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that
(A) the Company has received from, or there has been published by, the Internal Revenue
Service a ruling or
(B) since the date of this instrument, there has been a change in the applicable Federal
income tax law,
in either case
clause (A)
or
(B)
to the effect that, and based thereon such opinion
shall confirm that, the Holders of such Securities will not recognize gain or loss for Federal
income tax purposes as a result of the deposit, Defeasance and discharge to be effected with
respect to such Securities and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit, Defeasance and discharge
were not to occur.
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(3) For Securities denominated in United States dollars, in the event of an election to have
Section 13.3
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Securities will not recognize gain or loss for Federal income tax purposes as a result of the
deposit and Covenant Defeasance to be effected with respect to such Securities and will be subject
to Federal income tax on the same amount, in the same manner and at the same times as would be the
case if such deposit and Covenant Defeasance were not to occur.
(4) The Company shall have delivered to the Trustee an Officers Certificate to the effect
that neither such Securities nor any other Securities of the same series, if then listed on any
securities exchange, will be delisted as a result of such deposit.
(5) No event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to such Securities or any other Securities shall have occurred and be
continuing at the time of such deposit or, with regard to any such event specified in
Sections
5.1(5)
and
(6)
, at any time on or prior to the 90th day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until after such 90th day).
(6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act (assuming all Securities are in default
within the meaning of such Act).
(7) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or instrument to which the
Company is a party or by which it is bound.
(8) Such Defeasance or Covenant Defeasance shall not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act unless
such trust shall be registered under such Act or exempt from registration thereunder.
(9) The Company shall have delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.
Section 13.5
Deposited Money, U. S. Government Obligations and Foreign Government
Obligations to be Held in Trust; Miscellaneous Provisions
.
Subject to the provisions of the last paragraph of
Section 10.3
, all money, U.S.
Government Obligations and Foreign Government Obligations (including the proceeds thereof)
deposited with the Trustee or other qualifying trustee (solely for purposes of this
Section
13.5
and
Section 13.6
, the Trustee and any such other trustee are referred to
collectively as the
Trustee
) pursuant to
Section 13.4
in respect of any
Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of
such Securities and this Indenture, to the payment, either directly or through any such Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Holders of such Securities, of all sums due and to become due thereon in respect of principal and
any premium and interest, but money so held in trust need not be segregated from other funds except
to the extent required by law.
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The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations or Foreign Government Obligations deposited
pursuant to
Section 13.4
or the principal and interest received in respect thereof other
than any such tax, fee or other charge which by law is for the account of the Holders of
Outstanding Securities. Anything in this
Article 13
to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company Request any money, U.S.
Government Obligations or Foreign Government Obligations held by it as provided in
Section
13.4
with respect to any Securities which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof which would then be required to be deposited to effect
the Defeasance or Covenant Defeasance, as the case may be, with respect to such Securities.
Section 13.6
Reinstatement
.
If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article 13
with respect to any Securities by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, then
the obligations under this Indenture and such Securities from which the Company has been discharged
or released pursuant to
Section 13.2
or
13.3
shall be revived and reinstated as
though no deposit had occurred pursuant to this
Article 13
with respect to such Securities,
until such time as the Trustee or Paying Agent is permitted to apply all money held in trust
pursuant to
Section 13.5
with respect to such Securities in accordance with this
Article 13
; provided, however, that if the Company makes any payment of principal of or any
premium or interest on any such Security following such reinstatement of its obligations, the
Company shall be subrogated to the rights (if any) of the Holders of such Securities to receive
such payment from the money so held in trust.
ARTICLE 14
SUBORDINATION
Section 14.1
Securities Subordinated to Senior Indebtedness
.
The Company and each Holder of a Security, by his acceptance thereof, agree that (a) the
payment of the principal of, premium (if any) and interest on and any Additional Amounts with
respect to each and all the Securities and (b) any other payment in respect of the Securities,
including on account of the acquisition or redemption of Securities by the Company, is
subordinated, to the extent and in the manner provided in such Security or in the supplemental
indenture pursuant to which such Security is issued, to the prior payment in full of all Senior
Indebtedness specified in such Security or in such supplemental indenture.
Such subordination provisions shall constitute a continuing offer to all Persons who, in
reliance upon such provisions, become holders of, or continue to hold, any of such Senior
Indebtedness, and such provisions are made for the benefit of the holders of such Senior
Indebtedness and any one or more of them may enforce such provisions.
Section 14.2
Right of Trustee to Hold Senior Indebtedness
.
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The Trustee in its individual capacity shall be entitled to all of the rights set forth in
this
Article 14
in respect of any Senior Indebtedness at any time held by it to the same
extent as any other holder of Senior Indebtedness, and nothing in this Indenture shall be construed
to deprive the Trustee of any of its rights as such holder.
Section 14.3
Subordination Not to Prevent Events of Default
.
The failure to make a payment on account of principal of, premium (if any) or interest on the
Securities by reason of any subordination provision for the benefit of holders of Senior
Indebtedness shall not be construed as preventing the occurrence of a Default or an Event of
Default under
Section 5.1
or in any way prevent the Holders of the Securities from
exercising any right hereunder other than the right to receive payment on the Securities.
Section 14.4
No Fiduciary Duty of Trustee to Holders of Senior Indebtedness
.
The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness, and shall not be liable to any such holders (other than for its willful misconduct or
negligence) if it shall in good faith mistakenly pay over or distribute to the Holders of the
Securities or the Company or any other Person, cash, property or securities to which any holders of
Senior Indebtedness shall be entitled by virtue of this
Article 14
or otherwise. Nothing
in this
Section 14.4
shall affect the obligation of any other such Person to hold such
payment for the benefit of, and to pay such payment over to, the holders of Senior Indebtedness or
their representative.
Section 14.5
Article Applicable to Paying Agent
.
In case at any time any Payment Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term
Trustee
as used in this
Article 14
shall in such case (unless the context shall otherwise require) be construed as extending to and
including such Payment Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this
Article 14
in addition to or in place of the Trustee;
provided, however, that this
Section 14.5
shall not apply to the Company or any Affiliate
of the Company if it or such Affiliate acts as Paying Agent.
[signature page follows]
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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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ENTERTAINMENT PROPERTIES TRUST
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By:
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Title:
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[TRUSTEE]
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By:
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Title:
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