As filed with the Securities and Exchange Commission on August 16, 2010
Registration No. 333-[
]
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM F-3
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
CHINA CORD BLOOD CORPORATION
(Exact name of registrant as specified in its charter)
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Cayman Islands
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Not Applicable
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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48
th
Floor, Bank of China Tower
1 Garden Road
Central
Hong Kong S.A.R.
Tel: (852) 3605-8180
Fax: (852) 3605-8181
(Address and telephone number of registrants principal executive offices)
Law Debenture Corporate Services, Inc.
400 Madison Avenue, Suite 4D
New York, New York 10017
Tel: (212) 750-6474
(Name, address and telephone number of agent for service)
with a copy to:
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Mitchell S. Nussbaum, Esq.
Loeb & Loeb LLP
345 Park Avenue
New York, NY 10154
(212) 407-4000
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Virginia Tam, Esq.
Jones Day
29
th
Floor, Edinburgh Tower
The Landmark
15 Queens Road Central
Hong Kong
(852) 3189 7318
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Approximate date of commencement of proposed sale to the public: From time to time after the effective date of this registration statement.
If the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please check the following box.
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, 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 number of the earlier effective registration statement for the same offering.
o
If this Form is a registration statement pursuant to General Instruction I.C. 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.
o
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.C. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box.
o
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CALCULATION OF REGISTRATION FEE
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Title of each class of securities to be registered
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Amount to be
registered
(1)
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Proposed maximum
offering price
per unit
(2)
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Proposed maximum
aggregate
offering price
(1)
(3)
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Amount of
registration fee
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Ordinary shares, par value $0.0001 per share
(4)
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Preferred shares, par value $0.0001 per share
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Warrants
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Subscription rights
(5)
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Debt securities
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Units
(6)
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Total to be offered by Registrant
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$
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100,000,000.00
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$
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7,130.00
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Ordinary shares, par value $0.0001 per share
(7)
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14,356,234
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$
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4.99
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$
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71,637,607.66
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$
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5,107.76
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Total registered
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$
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171,637,607.66
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$
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12,237.76
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(1)
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There are being registered hereunder such indeterminate number of ordinary shares, such indeterminate number of preferred shares, such indeterminate number of warrants, such indeterminate number of subscription rights, such indeterminate number of debt securities and such indeterminate number of units as will have an aggregate initial offering price not to exceed $100,000,000, or if any securities are issued in any non United States currency units, the equivalent thereof in non-United States currencies. This registration statement shall also cover any additional securities to be offered or issued from stock splits, stock dividends, recapitalizations or similar transactions. If any debt securities are issued at an original issue discount, then the offering price of such debt securities shall be in such greater principal amount as shall result in a maximum aggregate offering price not to exceed $100,000,000, less the aggregate dollar amount of
all securities previously issued hereunder.
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(2)
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The proposed maximum aggregate offering price for each class of securities will be determined from time to time by the Registrant in connection with the issuance by the Registrant of the securities registered hereunder and is not specified as to each class of securities pursuant to General Instruction II.C. of Form F-3 under the Securities Act of 1933, as amended (the Securities Act). In the case of securities offered by the selling shareholders named herein (the Selling Shareholders), the proposed maximum aggregate offering price will be based on the average of the high and low per share sale price on the New York Stock Exchange on August 10, 2010.
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(3)
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Estimated solely for the purposes of calculating the registration fee pursuant to Rule 457(o), in the case of securities being offered by the Registrant, or Rule 457(c), in the case of securities being offering by the Selling Shareholders, of Regulation C under the Securities Act of 1933, as amended.
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(4)
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The ordinary shares being registered also include such indeterminate number of ordinary shares as may be issued upon exercise, conversion or exchange of other securities. 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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(5)
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Rights evidencing the right to purchase ordinary shares.
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(6)
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Units may consist of any combination of the securities registered hereunder.
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(7)
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Reflects 14,356,234 ordinary shares that are being offered by the Selling Shareholders.
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The Registrant is filing a combined prospectus in this registration statement pursuant to Rule 429 under the Securities Act of 1933, as amended, in order to satisfy the requirements of the Securities Act of 1933, as amended and the rules and regulations thereunder for this offering and other offerings registered on an earlier registration statement. The combined prospectus in this registration statement relates to, and shall act, upon effectiveness, as post-effective amendment no. 5 on Form F-3 to the registration statement on Form S-4 (File No. 333-155579) (the S-4 Registration Statement) containing an
updated prospectus relating to (i) the offering and sale of ordinary shares issuable upon exercise of warrants that were issued to public investors in connection with the initial public offering of Pantheon China Acquisition Corp. and (ii) certain securities issued and issuable upon exercise of an option sold to the representative of the underwriters in connection with such offering, all of which were initially registered pursuant to the S-4 Registration Statement declared effective by the Securities and Exchange Commission on August 6, 2009. All filing fees payable in connection with the registration of the securities covered by such post-effective amendment were previously paid in connection with the filing of the original S-4 Registration Statement.
The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
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EXPLANATORY NOTE
This registration statement, which is a new registration statement, also constitutes post-effective amendment no. 5 on Form F-3 to the Registration Statement on Form S-4 (File No. 333-155579) (the S-4 Registration Statement) of China Cord Blood Corporation (the Company or CCBC) and is being filed pursuant to the undertakings in Item 21 of the S-4 Registration Statement to update and supplement the information contained in the S-4 Registration Statement, as originally declared effective by the Securities and Exchange Commission on August 6, 2009. Accordingly, this registration statement contains two prospectuses, as
set forth below.
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Shelf Base Prospectus. A shelf registration base prospectus to be used for the public offering, from time to time, by (i) the Registrant of up to $100 million of ordinary shares, preferred shares, warrants, subscription rights, debt securities, and/or units of the Registrant and (ii) the Selling Shareholders of up to 14,356,234 ordinary shares of the Registrant (the Shelf Base Prospectus), the terms of the offered securities and the related method of distribution, including the offering prices of the securities, will be included in one or more prospectus supplements to be prepared at the time such offering is made.
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Warrant Prospectus. A prospectus relating to the following China Cord Blood Corporation securities registered on our form S-1 filed on August 14, 2006 (File No. 333-136590) and issued in our initial public offering pursuant to a prospectus dated December 14, 2006 (File No. 333-136590): (i) 11,500,000 ordinary shares, which are issuable upon the exercise of outstanding warrants and (ii) the following securities issuable upon exercise of the outstanding unit purchase option granted to the underwriters representative in our initial public offering: (A) 500,000 ordinary shares, par value $0.0001 per share, (B) 1,000,000 warrants (the IPO Representatives Warrants) and (C) 1,000,000 ordinary shares issuable upon the exercise of the IPO Representatives Warrants (the Warrant Prospectus).
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The Warrant Prospectus is substantively identical to the Shelf Base Prospectus, except for the following principal points:
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they contain different outside and inside front covers and back covers;
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the Warrant Prospectus contains an Offering section in the Prospectus Summary section beginning on page
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they contain different Use of Proceeds sections on page
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; and
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the following sections from the Shelf Base Prospectus are deleted from the Warrant Prospectus: About this Prospectus, Ratio of Fixed Charges, Description of Ordinary Shares, Description of Preferred Shares, Description of Subscription Rights, Selling Shareholders, Plan of Distribution, and Expenses.
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The Registrant has included in this registration statement a set of alternate pages after the back cover page of the Shelf Base Prospectus (the Alternate Pages) to reflect the foregoing differences in the Warrant Prospectus as compared to the Shelf Base Prospectus. The Shelf Base Prospectus will exclude the Alternate Pages and will be used for the public offering(s) by the Registrant and the Selling Shareholders named therein from time to time. The Warrant Prospectus will be substantively identical to the Shelf Base Prospectus except for the addition or substitution of the Alternate Pages and will be used for the exercise of the warrants
and other securities to which it relates.
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The information in this prospectus is not complete and may be changed. We may not sell these securities until the post-effective amendment to registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting offers to buy these securities in any state where the offer or sale is not permitted.
Subject to completion, dated August 16, 2010
PROSPECTUS
$100,000,000
CHINA CORD BLOOD CORPORATION
Ordinary Shares
Preferred Shares
Warrants
Subscription Rights
Debt Securities
Units
14,356,234 Ordinary Shares Offered by the Selling Shareholders Named Herein
We may offer ordinary shares, par value $0.0001 per share, preferred shares, par value $0.0001 per share, warrants, subscription rights, debt securities and/or units from time to time. The selling shareholders named herein (the Selling Shareholders) may offer and sell up to 14,356,234 of our ordinary shares owned by such Selling Shareholders under this prospectus. When we decide to sell securities, we will provide specific terms of the offered securities, including the offering prices of the securities, in a prospectus supplement. The securities offered by the Registrant pursuant to this prospectus will have an aggregate public offering
price of up to $100,000,000.
The securities covered by this prospectus may be offered and sold from time to time in one or more offerings, which may be through one or more underwriters, dealers and agents, or directly to the purchasers. The names of any underwriters, dealers or agents, if any, will be included in a supplement to this prospectus.
This prospectus describes some of the general terms that may apply to these securities and the general manner in which they may be offered. The specific terms of any securities to be offered, and the specific manner in which they may be offered, will be described in one or more supplements to this prospectus. A prospectus supplement may also add, update or change information contained in this prospectus.
Our ordinary shares are traded on the New York Stock Exchange under the symbol CO.
Our principal offices are located at 48
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Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong S.A.R. Our telephone number at that address is (852) 3605-8180.
Investing in our securities involves risks. You should consider carefully the risk factors referred to in this prospectus on page
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and in the applicable supplement to this prospectus before investing in any securities that may be offered.
Neither the Securities and Exchange Commission nor any state or other 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.
Prospectus dated , 2010
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PROSPECTUS SUMMARY
The following summary is qualified in its entirety by, and should be read in conjunction with, the more detailed information and financial statements incorporated by reference into this prospectus. In addition to this summary, we urge you to read the entire prospectus carefully, especially the risks discussed under Risk Factors on page
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before making an investment decision.
Unless otherwise stated in this prospectus,
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references to CCBC, the Company, we, us or our refer to China Cord Blood Corporation (together with its subsidiaries and affiliated entities);
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references to PRC or China refer to the Peoples Republic of China;
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references to dollars or $ refer to the legal currency of the United States; and
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references to Renminbi or RMB refer to the legal currency of China.
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Overview
We are a leading provider of cord blood storage services in China. We provide cord blood storage services for expectant parents interested in capturing the opportunities made available by evolving medical treatments and technologies such as cord blood transplants. We also preserve cord blood units donated by the public, provide matching services on such donated units and deliver matching units to patients in need of transplants. We have cord blood banking licenses issued by the PRC government authorities and are currently the operator of the sole cord blood banking licensees in Beijing and Guangdong. We also invested in a minority equity interest in
Qilu, the exclusive cord blood bank operator in the Shandong province. Beijing and Guangdong had an aggregate of approximately 1.3 million newborns in 2008, according to the National Bureau of Statistics of China. Our Beijing-based subsidiary, Jiachenhong, was the operator of the first licensed cord blood bank in China.
We provide our services through our network of collaborating hospitals in Beijing and Guangdong. These hospital networks offer us the platform for performing cord blood collection services and undertaking a significant portion of our promotion and marketing activities. As at March 31, 2010, we had developed a hospital network consisting of over 90 major hospitals in Beijing. Since our acquisition of Nuoya in May 2007, we have established collaborative relationships with over 110 major hospitals in Guangdong. Nuoya commenced commercial operation after our acquisition and we are seeking to significantly expand our hospital network in this new market.
Our acquisition of the right to operate a cord blood bank in Guangdong through our acquisition of Nuoya enabled us to increase the size of the market that we can address. According to the National Bureau of Statistics of China, Guangdong had approximately 1.1 million newborns in 2008.
We generate substantially all of our revenues from subscription fees. We intend to grow our revenues by enlarging our subscriber base and increasing our penetration rates through expanding our hospital networks and enhancing our sales and marketing initiatives. In addition, the nature of our business requires us to deliver our services to our subscribers on a long-term basis. Therefore, the contracts with our subscribers are typically for a period of 18 years. The contracts can be terminated early by the parents or further extended, at the option of the children, after the children reach adulthood. The payment for our services consists of processing
fees payable at the time of subscription or by installments over a typical contract period of 18 years depending on the payment option elected by subscribers and storage fees payable by our subscribers on an annual basis for as long as the contracts remain effective. This payment structure enables us to enjoy a steady stream of long-term cash inflow. We expect such long-term cash flow to continue to increase as our subscriber base continues to grow. In addition, we generate a portion of revenues from the fees we charge in providing matching units we collect from public donors to patients in need of transplants.
Our operating costs consist of fixed costs and variable costs. Fixed costs primarily relate to depreciation expenses of our storage facilities and rental expenses. Variable costs primarily relate to labor and raw material consumption. For the years ended March 31, 2008, 2009 and 2010, depreciation expenses, our most significant fixed cost, accounted for 6.5%, 12.6% and 18.3%, respectively, of our direct costs (cost of revenue), and rental expenses accounted for 2.8%, 4.9% and 4.3%, respectively, of our direct costs. The depreciation expense as a percentage of direct costs is lower than normal in the year ended March 31, 2008 was primarily
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due to the increase in total direct costs after taking into account the write back of RMB33.0 million deferred costs. Since a significant portion of our operating costs are fixed, we benefit from economies of scale as the number of units stored at our cord blood banks increases. Based on our operating experience and historical growth, we believe we will be able to generate sufficient processing and storage fees to cover our operating costs. Moreover, as cord blood banking services are not subject to price control by the PRC government, we have the flexibility to set and adjust our fees in response to changing market dynamics.
We are experiencing a period of significant growth. We expanded our geographic coverage by acquiring the right to operate a cord blood bank in Guangdong through our acquisition of Nuoya in May 2007. In July 2007, we acquired a 12.9% in Cordlife, a provider of cord blood banking services with operations in Singapore, Australia, Hong Kong, India, Indonesia and the Philippines. During the year ended March 31, 2009, we further increased our equity interest in Cordlife. As at March 31, 2010, we owned 16.3% in Cordlife. In June 2010, Cordlife announced a rights issue. The rights issue was subsequently completed in July 2010 and our equity interest in
Cordlife increased to 19.1%. On May 6, 2010, we completed the investment in a 19.9% effective interest in Qilu, the exclusive cord blood bank operator in the Shandong province. Each of Qilus major shareholders and the seller in that transaction has guaranteed that the dividend income attributable to us in calendar year 2010 will be not less than approximately RMB7.07 million.
CCBCs principal executive office is located at 48th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong S.A.R. Its telephone number is (852) 3605-8180. Our website, which contains additional information about our company, can be accessed at:
www.chinacordbloodcorp.com
, but that information is not part of this prospectus.
The Securities We May Offer
We may use this prospectus to offer up to $100,000,000 of:
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units, which may consist of any combination of the above securities.
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We may also offer securities of the types listed above that are convertible or exchangeable into one or more of the securities listed above.
The Securities That May Be Offered by the Selling Shareholders
This prospectus may also be used by the Selling Shareholders named herein to offer up to 14,356,234 ordinary shares.
A prospectus supplement will describe the specific types, amounts, prices, amount of securities to be offered by us, amount of ordinary shares (if any) to be offered by the Selling Shareholders and detailed terms of any of these offered securities, and may describe certain risks in addition to those incorporated by reference herein associated with an investment in the securities. Terms used in the prospectus supplement will have the meanings described in this prospectus, unless otherwise specified.
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RISK FACTORS
An investment in our securities involves risk. Before you invest in securities issued by us, you should carefully consider the risks involved. Accordingly, you should carefully consider:
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the information contained in or incorporated by reference into this prospectus;
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the information contained in or incorporated by reference into any prospectus supplement relating to specific offerings of securities;
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the risks described in our Annual Report on Form 20-F for our fiscal year ended March 31, 2010, on file with Securities and Exchange Commission (the SEC), which is incorporated by reference into this prospectus; and
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other risks and other information that may be contained in, or incorporated by reference from, other filings we make with the SEC, including in any prospectus supplement relating to specific offerings of securities.
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The discussion of risks related to our business contained in or incorporated by reference into this prospectus or into any prospectus supplement comprises material risks of which we are aware. If any of the events or developments described actually occurs, our business, financial condition or results of operations would likely suffer.
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that we filed with the SEC utilizing a shelf registration process. Under this shelf registration process, we may sell from time to time up to $100,000,000 of any combination of the securities described in this prospectus and the Selling Shareholders named herein may offer and sell up to 14,356,234 of our ordinary shares owned by such Selling Shareholders under this prospectus.
This prospectus provides you with a general description of the securities we may offer. Each time we sell securities, we will provide a prospectus supplement that will contain specific information about the terms of that offering. The prospectus supplement may also add, update or change information contained in this prospectus. If there is any inconsistency between the information contained in this prospectus and any prospectus supplement, you should rely on the information contained in that particular prospectus supplement. You should read both this prospectus and any prospectus supplement together with additional information described under the
heading Where You Can Find More Information.
You should rely only on the information provided in this prospectus and the prospectus supplement, as well as the information incorporated by reference. We have not authorized anyone to provide you with additional or different information. We are not making an offer of these securities in any jurisdiction or state where the offer is not permitted. You should not assume that the information in this prospectus, any prospectus supplement or any documents incorporated by reference herein or therein is accurate as of any date other than the date of the applicable document.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. All statements other than statements of historical fact in this report are forward-looking statements. These forward-looking statements can be identified by words or phrases such as may, will, expect, anticipate, estimate, plan, believe, is/are likely to or other similar expressions. The forward-looking statements included in this report relate to, among others:
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our goals and strategies;
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our future business development, financial condition and results of operations;
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the expected market growth for cord blood banking services in China;
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our ability to grow our business;
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market acceptance of cord blood banking in general and our services in particular;
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our ability to expand our operations;
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our ability to stay abreast of market trends and technological changes;
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changes in PRC governmental policies and regulations relating to our industry; and
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fluctuations in general economic and business conditions in China.
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These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, we cannot assure you that our expectations will turn out to be correct. Our actual results could be materially different from our expectations.
This prospectus also contains data related to the cord blood banking industry. These market data include projections that are based on a number of assumptions. The cord blood banking market may not grow at the rate projected by market data, or at all. The failure of this market to grow at the projected rate may have a material adverse effect on our business and the market price of our ordinary shares. Furthermore, if any one or more of the assumptions underlying the market data turns out to be incorrect, actual results may differ from the projections based on these assumptions. You should not place undue reliance on these forward-looking statements.
The forward-looking statements made in this prospectus relate only to events or information as of the date on which the statements are made in this prospectus. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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USE OF PROCEEDS
Unless the applicable prospectus supplement states otherwise, the net proceeds from the sale of securities offered by the Company will be used for general corporate purposes, which may include additions to working capital, capital expenditures, financing of acquisitions and other business combinations, investments in or extensions of credit to our subsidiaries and the repayment of indebtedness.
We will not receive any portion of the net proceeds by the Selling Shareholders from the sale of their shares.
RATIO OF EARNINGS TO FIXED CHARGES
CCBCs ratio of earnings to fixed charges for each of the periods indicated is set forth below. We have derived the ratios of earnings to fixed charges from our historical consolidated financial statements. The ratios should be read in conjunction with our consolidated financial statements, including the notes thereto, and the other financial information included or incorporated by reference herein.
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Year Ended March 31,
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2010
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2009
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2008
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Ratio of earnings to fixed charges
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19.2
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30.1
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194.2
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We have computed the ratios of earnings to fixed charges set forth above by dividing earnings by fixed charges. For the purpose of determining the ratio of earnings to fixed charges, earnings include income before income tax from continuing operations plus fixed charges and subtract noncontrolling interest in income before tax of subsidiaries that have not incurred fixed charges. Fixed charges consist of interest on the short term loan and the estimated interest component of operating lease expense. As of the date of this prospectus, we have no preferred shares outstanding and have not declared or paid any dividends on preferred shares for the
periods set forth above.
Earnings:
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Year Ended March 31,
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RMB000
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2010
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2009
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2008
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Income before income tax
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79,663
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42,299
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135,702
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Add: Fixed charges
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Interest expenses
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2,431
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Interest component of operating lease expense
(1)
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1,944
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1,453
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696
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Total fixed charges
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4,375
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1,453
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696
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Less: noncontrolling interest in income before tax of subsidiaries that have not incurred fixed charges
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(1,255
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Earnings
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84,038
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43,752
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135,143
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(1)
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The interest component of operating lease expense represents one-third of rents, which is deemed representative of the interest component of operating lease expense.
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CAPITALIZATION AND INDEBTEDNESS
Our capitalization and indebtedness will be set forth in a prospectus supplement to this prospectus or in a report on Form 6-K subsequently furnished to the SEC and specifically incorporated herein by reference.
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DESCRIPTION OF ORDINARY SHARES
A description of our ordinary shares can be found in our Registration Statement on Form F-1, as amended, under the Securities Act of 1933, as amended (the Securities Act), as originally filed with the SEC on August 28, 2009 (Registration No. 333-161602) under the heading Description of Securities and as incorporated into the Companys Form 8-A, filed with the SEC on November 12, 2009, which description is incorporated by reference herein.
DESCRIPTION OF PREFERRED SHARES
CCBCs Memorandum and Articles of Association authorizes the issuance of 1,000,000 preferred shares with such designation, rights and preferences as may be determined from time to time by its Board of Directors. Accordingly, CCBCs Board of Directors is empowered, without shareholder approval, to issue preferred shares with dividend, liquidation, conversion, redemption voting or other rights which could adversely affect the voting power or other rights of the holders of ordinary shares. The preferred shares could be utilized as a method of discouraging, delaying or preventing a change in control of CCBC. Although CCBC does not currently
intend to issue any preferred shares, CCBC cannot assure you that it will not do so in the future.
As of the date of this prospectus, there are no outstanding shares of preferred stock of any series.
The material terms of any series of preferred shares that we offer, together with any material China, Hong Kong S.A.R. or United States federal income tax considerations relating to such preferred shares, will be described in a prospectus supplement.
DESCRIPTION OF WARRANTS
The following summary of certain provisions of the warrants does not purport to be complete and is subject to, and qualified in its entirety by reference to, the provisions of the warrant agreement that will be filed with the SEC in connection with the offering of such warrants.
General
We may issue warrants to purchase ordinary shares. Warrants may be issued independently or together with any other securities and may be attached to, or separate from, such securities. Each series of warrants will be issued under a separate warrant agreement to be entered into between us and a warrant agent. The warrant agent will act solely as our agent and will not assume any obligation or relationship of agency for or with holders or beneficial owners of warrants. The terms of any warrants to be issued and a description of the material provisions of the applicable warrant agreement will be set forth in the applicable prospectus supplement.
The applicable prospectus supplement will describe the following terms of any warrants in respect of which this prospectus is being delivered:
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the title of such warrants;
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the aggregate number of such warrants;
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the price or prices at which such warrants will be issued and exercised;
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the currency or currencies in which the price of such warrants will be payable;
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the securities purchasable upon exercise of such warrants;
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the date on which the right to exercise such warrants shall commence and the date on which such right shall expire;
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if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time;
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if applicable, the designation and terms of the securities with which such warrants are issued and the number of such warrants issued with each such security;
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if applicable, the date on and after which such warrants and the related securities will be separately transferable;
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information with respect to book-entry procedures, if any;
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any material China, Hong Kong S.A.R. or United States federal income tax consequences;
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the antidilution provisions of the warrants, if any; and
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any other terms of such warrants, including terms, procedures and limitations relating to the exchange and exercise of such warrants.
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Amendments and Supplements to Warrant Agreement
We and the warrant agent may amend or supplement the warrant agreement for a series of warrants without the consent of the holders of the warrants issued thereunder to effect changes that are not inconsistent with the provisions of the warrants and that do not materially and adversely affect the interests of the holders of the warrants.
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DESCRIPTION OF SUBSCRIPTION RIGHTS
The following summary of certain provisions of the subscription rights does not purport to be complete and is subject to, and qualified in its entirety by reference to, the provisions of the certificate evidencing the subscription rights that will be filed with the SEC in connection with the offering of such subscription rights.
General
We may issue subscription rights to purchase ordinary shares. Subscription rights may be issued independently or together with any other offered security and may or may not be transferable by the person purchasing or receiving the subscription rights. In connection with any subscription rights offering to our shareholders, we may enter into a standby underwriting arrangement with one or more underwriters pursuant to which such underwriters will purchase any offered securities remaining unsubscribed for after such subscription rights offering. In connection with a subscription rights offering to our shareholders, we will distribute certificates
evidencing the subscription rights and a prospectus supplement to our shareholders on the record date that we set for receiving subscription rights in such subscription rights offering.
The applicable prospectus supplement will describe the following terms of subscription rights in respect of which this prospectus is being delivered:
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the title of such subscription rights;
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the securities for which such subscription rights are exercisable;
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the exercise price for such subscription rights;
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the number of such subscription rights issued to each shareholder;
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the extent to which such subscription rights are transferable;
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if applicable, a discussion of the material China, Hong Kong S.A.R., or United States federal income tax considerations applicable to the issuance or exercise of such subscription rights;
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the date on which the right to exercise such subscription rights shall commence, and the date on which such rights shall expire (subject to any extension);
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the extent to which such subscription rights include an over-subscription privilege with respect to unsubscribed securities;
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if applicable, the material terms of any standby underwriting or other purchase arrangement that we may enter into in connection with the subscription rights offering; and
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any other terms of such subscription rights, including terms, procedures and limitations relating to the exchange and exercise of such subscription rights.
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Exercise of Subscription Rights
Each subscription right will entitle the holder of the subscription right to purchase for cash such amount of ordinary shares at such exercise price as shall be set forth in, or be determinable as set forth in, the prospectus supplement relating to the subscription rights offered thereby. Subscription rights may be exercised at any time up to the close of business on the expiration date for such subscription rights set forth in the prospectus supplement. After the close of business on the expiration date, all unexercised subscription rights will become void.
Subscription rights may be exercised as set forth in the prospectus supplement relating to the subscription rights offered thereby. Upon receipt of payment and the subscription rights certificate properly completed and duly executed at the corporate trust office of the subscription rights agent or any other office indicated in the prospectus supplement, we will forward, as soon as practicable, the ordinary shares purchasable upon such exercise. We may determine to offer any unsubscribed offered securities directly to persons other than shareholders, to or through agents, underwriters or dealers or through a combination of such methods, including
pursuant to standby underwriting arrangements, as set forth in the applicable prospectus supplement.
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DESCRIPTION OF DEBT SECURITIES
We may issue debt securities from time to time in one or more series, under one or more indentures, each dated as of a date on or prior to the issuance of the debt securities to which it relates. We may issue senior debt securities and subordinated debt securities pursuant to separate indentures, a senior indenture and a subordinated indenture, respectively, in each case between us and the trustee named in the indenture. We have filed forms of these documents as exhibits to the registration statement, of which this prospectus forms a part. The senior indenture and the subordinated indenture, as amended or supplemented from time to time, are sometimes
referred to individually as an indenture and collectively as the indentures. Each indenture will be subject to and governed by the Trust Indenture Act and will be construed in accordance with and governed by the laws of the State of New York, without giving effect to any principles thereof relating to conflicts of law that would result in the application of the laws of any other jurisdiction. The aggregate principal amount of debt securities which may be issued under each indenture will be unlimited and each indenture will contain the specific terms of any series of debt securities or provide that those terms must be set forth in or determined pursuant to, an authorizing resolution, as defined in the applicable prospectus supplement, and/or a supplemental indenture, if any, relating to such series. Our debt securities may be convertible or exchangeable into any of our equity or other debt securities.
Our statements below relating to the debt securities and the indentures are summaries of their anticipated provisions, are not complete and are subject to, and are qualified in their entirety by reference to, all of the provisions of the applicable indenture and any applicable China, Hong Kong S.A.R., or United States federal income tax considerations as well as any applicable modifications of or additions to the general terms described below in the applicable prospectus supplement or supplemental indenture. For a description of the terms of a particular issue of debt securities, reference must be made to both the related prospectus supplement and to
the following description.
General
Neither indenture limits the amount of debt securities which may be issued. The debt securities may be issued in one or more series. The senior debt securities will be unsecured and will rank on a parity with all of our other unsecured and unsubordinated indebtedness. Each series of subordinated debt securities will be unsecured and subordinated to all present and future senior indebtedness. Any such debt securities will be described in an accompanying prospectus supplement.
You should read the applicable indenture and subsequent filings relating to the particular series of debt securities for the following terms of the offered debt securities:
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the designation, aggregate principal amount and authorized denominations;
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the issue price, expressed as a percentage of the aggregate principal amount;
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the interest rate per annum, if any;
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if the offered debt securities provide for interest payments, the date from which interest will accrue, the dates on which interest will be payable, the date on which payment of interest will commence and the regular record dates for interest payment dates;
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any optional or mandatory sinking fund provisions or exchangeability provisions;
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the terms and conditions upon which conversion of any convertible debt securities may be effected, including the conversion price, the conversion period and other conversion provisions;
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the date, if any, after which and the price or prices at which the offered debt securities may be optionally redeemed or must be mandatorily redeemed and any other terms and provisions of optional or mandatory redemptions;
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if other than denominations of $1,000 and any integral multiple thereof, the denominations in which offered debt securities of the series will be issuable;
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if other than the full principal amount, the portion of the principal amount of offered debt securities of the series which will be payable upon acceleration or provable in bankruptcy;
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any events of default not set forth in this prospectus;
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the currency or currencies, including composite currencies, in which principal, premium and interest will be payable, if other than the currency of the United States of America;
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if principal, premium or interest is payable, at our election or at the election of any holder, in a currency other than that in which the offered debt securities of the series are stated to be payable, the period or periods within which, and the terms and conditions upon which, the election may be made;
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whether interest will be payable in cash or additional securities at our or the holders option and the terms and conditions upon which the election may be made;
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if denominated in a currency or currencies other than the currency of the United States of America, the equivalent price in the currency of the United States of America for purposes of determining the voting rights of holders of those debt securities under the applicable indenture;
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if the amount of payments of principal, premium or interest may be determined with reference to an index, formula or other method based on a coin or currency other than that in which the offered debt securities of the series are stated to be payable, the manner in which the amounts will be determined;
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any restrictive covenants or other material terms relating to the offered debt securities;
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whether the offered debt securities will be issued in the form of global securities or certificates in registered or bearer form;
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any terms with respect to subordination;
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any listing on any securities exchange or quotation system; and
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additional provisions, if any, related to defeasance and discharge of the offered debt securities.
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Subsequent filings may include additional terms not listed above. Unless otherwise indicated in subsequent filings with the Commission relating to the indenture, principal, premium and interest will be payable and the debt securities will be transferable at the corporate trust office of the applicable trustee. Unless other arrangements are made or set forth in subsequent filings or a supplemental indenture, principal, premium and interest will be paid by checks mailed to the holders at their registered addresses.
Unless otherwise indicated in subsequent filings with the Commission, the debt securities will be issued only in fully registered form without coupons, in denominations of $1,000 or any integral multiple thereof. No service charge will be made for any transfer or exchange of the debt securities, but we may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with these debt securities.
Some or all of the debt securities may be issued as discounted debt securities to be sold at a substantial discount below the stated principal amount. China, Hong Kong S.A.R., or United States federal income tax consequences and other special considerations applicable to any discounted securities will be described in subsequent filings with the Commission relating to those securities.
We refer you to applicable subsequent filings with respect to any deletions or additions or modifications from the description contained in this prospectus.
Senior Debt
We may issue senior debt securities under the senior debt indenture. These senior debt securities will rank on an equal basis with all our other unsecured debt except subordinated debt.
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Subordinated Debt
We may issue subordinated debt securities under the subordinated debt indenture. Subordinated debt will rank subordinate and junior in right of payment, to the extent set forth in the subordinated debt indenture, to all our senior debt (both secured and unsecured).
In general, the holders of all senior debt are first entitled to receive payment of the full amount unpaid on senior debt before the holders of any of the subordinated debt securities are entitled to receive a payment on account of the principal or interest on the indebtedness evidenced by the subordinated debt securities in certain events.
If we default in the payment of any principal of, or premium, if any, or interest on any senior debt when it becomes due and payable after any applicable grace period, then, unless and until the default is cured or waived or ceases to exist, we cannot make a payment on account of or redeem or otherwise acquire the subordinated debt securities.
If there is any insolvency, bankruptcy, liquidation or other similar proceeding relating to us, then all senior debt must be paid in full before any payment may be made to any holders of subordinated debt securities.
Furthermore, if we default in the payment of the principal of and accrued interest on any subordinated debt securities that is declared due and payable upon an event of default under the subordinated debt indenture, holders of all our senior debt will first be entitled to receive payment in full in cash before holders of such subordinated debt can receive any payments.
Senior debt means:
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the principal, premium, if any, interest and any other amounts owing in respect of our indebtedness for money borrowed and indebtedness evidenced by securities, notes, debentures, bonds or other similar instruments issued by us, including the senior debt securities or letters of credit;
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all capitalized lease obligations;
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all hedging obligations;
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all obligations representing the deferred purchase price of property; and
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all deferrals, renewals, extensions and refundings of obligations of the type referred to above;
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but senior debt does not include:
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subordinated debt securities; and
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any indebtedness that by its terms is subordinated to, or ranks on an equal basis with, our subordinated debt securities.
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Covenants
Under the terms of the indenture, we covenant, among other things:
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that we will duly and punctually pay the principal of and interest, if any, on the offered debt securities in accordance with the terms of such debt securities and the applicable indenture;
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that so long as any offered debt securities are outstanding, we will (i) file with the SEC within the time periods prescribed by its rules and regulations and (ii) furnish to the trustee and holders of the offered debt securities all interim and annual financial information required to be furnished or filed with the SEC pursuant to Section 13 and 15(d) of the Exchange Act of 1934, as amended, (the Exchange Act), and with respect to the annual consolidated financial statements only, a report thereon by our independent auditors;
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that we will deliver to the trustee after the end of each fiscal year a compliance certificate as to whether we have kept, observed, performed and fulfilled our obligations and each and every covenant contained under the applicable indenture;
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that we will deliver to the trustee written notice of any event of default, with the exception of any payment default that has not given rise to a right of acceleration under the indenture;
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that we will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, which may affect the covenants or the performance of the indenture or the offered debt securities;
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that we will do or cause to be done everything necessary to preserve and keep in full force and effect our corporate existence and the corporate, partnership or other existence of certain of our subsidiaries whose preservation is determined to be desirable by our Board of Directors and material to the holders;
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that we will, and we will cause each of our subsidiaries to, pay prior to delinquency all taxes, assessments and governmental levies, except as contested in good faith and by appropriate proceedings;
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that in the event we are required to pay additional interest to holders of our debt securities, we will provide notice to the trustee, and where applicable, the paying agent, of our obligation to pay such additional interest prior to the date on which any such additional interest is scheduled to be paid; and
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that we will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of the indenture.
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Any series of offered debt securities may have covenants in addition to or differing from those included in the applicable indenture which will be described in subsequent filings prepared in connection with the offering of such securities, limiting or restricting, among other things:
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the ability of us or our subsidiaries to incur either secured or unsecured debt, or both;
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the ability to make certain payments, dividends, redemptions or repurchases;
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our ability to create dividend and other payment restrictions affecting our subsidiaries;
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our ability to make investments;
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mergers and consolidations by us or our subsidiaries;
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our ability to enter into transactions with affiliates;
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our ability to incur liens; and
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sale and leaseback transactions.
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Modification of the Indentures
Each indenture and the rights of the respective holders may be modified by us only with the consent of holders of not less than a majority in aggregate principal amount of the outstanding debt securities of all series under the respective indenture affected by the modification, taken together as a class. But no modification that:
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changes the amount of securities whose holders must consent to an amendment, supplement or waiver;
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reduces the rate of or changes the interest payment time on any security or alters its redemption provisions (other than any alteration to any such section which would not materially adversely affect the legal rights of any holder under the indenture) or the price at which we are required to offer to purchase the securities;
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reduces the principal or changes the maturity of any security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;
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waives a default or event of default in the payment of the principal of or interest, if any, on any security (except a rescission of acceleration of the securities of any series by the holders of at least a majority in principal amount of the outstanding securities of that series and a waiver of the payment default that resulted from such acceleration);
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makes the principal of or interest, if any, on any security payable in any currency other than that stated in the security;
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makes any change with respect to holders rights to receive principal and interest, the terms pursuant to which defaults can be waived, certain modifications affecting shareholders or certain currency-related issues; or
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waives a redemption payment with respect to any security or change any of the provisions with respect to the redemption of any securities;
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will be effective against any holder without his consent. Other terms as specified in subsequent filings may be modified without the consent of the holders.
Events of Default
Each indenture defines an event of default for the debt securities of any series as being any one of the following events:
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default in any payment of interest when due which continues for 30 days;
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default in any payment of principal or premium at maturity;
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default in the deposit of any sinking fund payment when due;
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default in the performance of any covenant in the debt securities or the applicable indenture which continues for 60 days after we receive notice of the default;
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default under a bond, debenture, note or other evidence of indebtedness for borrowed money by us or our subsidiaries (to the extent we are directly responsible or liable therefor) having a principal amount in excess of a minimum amount set forth in the applicable subsequent filing, whether such indebtedness now exists or is hereafter created, which default shall have resulted in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable, without such acceleration having been rescinded or annulled or cured within 30 days after we receive notice of the default; and
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events of bankruptcy, insolvency or reorganization.
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An event of default of one series of debt securities does not necessarily constitute an event of default with respect to any other series of debt securities.
There may be such other or different events of default as described in an applicable subsequent filing with respect to any class or series of offered debt securities.
In case an event of default occurs and continues for the debt securities of any series, the applicable trustee or the holders of not less than 25% in aggregate principal amount of the debt securities then outstanding of that series may declare the principal and accrued but unpaid interest of the debt securities of that series to be due and payable. Any event of default for the debt securities of any series which has been cured may be waived by the holders of a majority in aggregate principal amount of the debt securities of that series then outstanding.
Each indenture requires us to file annually after debt securities are issued under that indenture with the applicable trustee a written statement signed by two of our officers as to the absence of material defaults under the terms of that indenture. Each indenture provides that the applicable trustee may withhold notice to the holders of any default if it considers it in the interest of the holders to do so, except notice of a default in payment of principal, premium or interest.
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Subject to the duties of the trustee in case an event of default occurs and continues, each indenture provides that the trustee is under no obligation to exercise any of its rights or powers under that indenture at the request, order or direction of holders unless the holders have offered to the trustee reasonable indemnity. Subject to these provisions for indemnification and the rights of the trustee, each indenture provides that the holders of a majority in principal amount of the debt securities of any series then outstanding 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 as long as the exercise of that right does not conflict with any law or the indenture.
Defeasance and Discharge
The terms of each indenture provide us with the option to be discharged from any and all obligations in respect of the debt securities issued thereunder upon the deposit with the trustee, in trust, of money or U.S. government obligations, or both, which through the payment of interest and principal in accordance with their terms will provide money in an amount sufficient to pay any installment of principal, premium and interest on, and any mandatory sinking fund payments in respect of, the debt securities on the stated maturity of the payments in accordance with the terms of the debt securities and the indenture governing the debt securities. This
right may only be exercised if, among other things, we have received from, or there has been published by, the United States Internal Revenue Service a ruling to the effect that such a discharge will not be deemed, or result in, a taxable event with respect to holders. This discharge would not apply to our obligations to register the transfer or exchange of debt securities, to replace stolen, lost or mutilated debt securities, to maintain paying agencies and hold moneys for payment in trust.
Defeasance of Certain Covenants
The terms of the debt securities provide us with the right not to comply with specified covenants and that specified events of default described in a subsequent filing will not apply. In order to exercise this right, we will be required to deposit with the trustee money or U.S. government obligations, or both, which through the payment of interest and principal will provide money in an amount sufficient to pay principal, premium, if any, and interest on, and any mandatory sinking fund payments in respect of, the debt securities on the stated maturity of such payments in accordance with the terms of the debt securities and the indenture governing such
debt securities. We will also be required to deliver to the trustee an opinion of counsel to the effect that the deposit and related covenant defeasance will not cause the holders of such series to recognize income, gain or loss for federal income tax purposes.
A subsequent filing may further describe the provisions, if any, of any particular series of offered debt securities permitting a discharge defeasance.
Global Securities
The debt securities of a series may be issued in whole or in part in the form of one or more global securities that will be deposited with, or on behalf of, a depository identified in an applicable subsequent filing and registered in the name of the depository or a nominee for the depository. In such a case, one or more global securities will be issued in a denomination or aggregate denominations equal to the portion of the aggregate principal amount of outstanding debt securities of the series to be represented by the global security or securities. Unless and until it is exchanged in whole or in part for debt securities in definitive certificated
form, a global security may not be transferred except as a whole by the depository for the global security to a nominee of the depository or by a nominee of the depository to the depository or another nominee of the depository or by the depository or any nominee to a successor depository for that series or a nominee of the successor depository and except in the circumstances described in an applicable subsequent filing.
We expect that the following provisions will apply to depository arrangements for any portion of a series of debt securities to be represented by a global security. Any additional or different terms of the depository arrangement will be described in an applicable subsequent filing.
Upon the issuance of any global security, and the deposit of that global security with or on behalf of the depository for the global security, the depository will credit, on its book-entry registration and transfer system, the principal amounts of the debt securities represented by that global security to the accounts of institutions
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that have accounts with the depository or its nominee. The accounts to be credited will be designated by the underwriters or agents engaging in the distribution of the debt securities or by us, if the debt securities are offered and sold directly by us. Ownership of beneficial interests in a global security will be limited to participating institutions or persons that may hold interests through such participating institutions. Ownership of beneficial interests by participating institutions in the global security will be shown on, and the transfer of the beneficial interests will be effected only through, records maintained by the depository for the
global security or by its nominee. Ownership of beneficial interests in the global security by persons that hold through participating institutions will be shown on, and the transfer of the beneficial interests within the participating institutions will be effected only through, records maintained by those participating institutions. The laws of some jurisdictions may require that purchasers of securities take physical delivery of the securities in certificated form. The foregoing limitations and such laws may impair the ability to transfer beneficial interests in the global securities.
So long as the depository for a global security, or its nominee, is the registered owner of that global security, the depository or its nominee, as the case may be, will be considered the sole owner or holder of the debt securities represented by the global security for all purposes under the applicable indenture. Unless otherwise specified in an applicable subsequent filing and except as specified below, owners of beneficial interests in the global security will not be entitled to have debt securities of the series represented by the global security registered in their names, will not receive or be entitled to receive physical delivery of debt
securities of the series in certificated form and will not be considered the holders thereof for any purposes under the indenture. Accordingly, each person owning a beneficial interest in the global security must rely on the procedures of the depository and, if such person is not a participating institution, on the procedures of the participating institution through which the person owns its interest, to exercise any rights of a holder under the indenture.
The depository may grant proxies and otherwise authorize participating institutions to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a holder is entitled to give or take under the applicable indenture. We understand that, under existing industry practices, if we request any action of holders or any owner of a beneficial interest in the global security desires to give any notice or take any action a holder is entitled to give or take under the applicable indenture, the depository would authorize the participating institutions to give the notice or take the action, and participating
institutions would authorize beneficial owners owning through such participating institutions to give the notice or take the action or would otherwise act upon the instructions of beneficial owners owning through them.
Unless otherwise specified in applicable subsequent filings, payments of principal, premium and interest on debt securities represented by a global security registered in the name of a depository or its nominee will be made by us to the depository or its nominee, as the case may be, as the registered owner of the global security.
We expect that the depository for any debt securities represented by a global security, upon receipt of any payment of principal, premium or interest, will credit participating institutions accounts with payments in amounts proportionate to their respective beneficial interests in the principal amount of the global security as shown on the records of the depository. We also expect that payments by participating institutions to owners of beneficial interests in the global security held through those participating institutions will be governed by standing instructions and customary practices, as is now the case with the securities held for the
accounts of customers registered in street name, and will be the responsibility of those participating institutions. None of us, the trustees or any agent of ours or the trustees will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial interests in a global security, or for maintaining, supervising or reviewing any records relating to those beneficial interests.
Unless otherwise specified in the applicable subsequent filings, a global security of any series will be exchangeable for certificated debt securities of the same series only if:
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the depository for such global securities notifies us that it is unwilling or unable to continue as depository or such depository ceases to be a clearing agency registered under the Exchange Act and, in either case, a successor depository is not appointed by us within 90 days after we receive the notice or become aware of the ineligibility;
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we in our sole discretion determine that the global securities shall be exchangeable for certificated debt securities; or
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there shall have occurred and be continuing an event of default under the applicable indenture with respect to the debt securities of that series.
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Upon any exchange, owners of beneficial interests in the global security or securities will be entitled to physical delivery of individual debt securities in certificated form of like tenor and terms equal in principal amount to their beneficial interests, and to have the debt securities in certificated form registered in the names of the beneficial owners, which names are expected to be provided by the depositorys relevant participating institutions to the applicable trustee.
In the event that the Depository Trust Company, or DTC, acts as depository for the global securities of any series, the global securities will be issued as fully registered securities registered in the name of Cede & Co., DTCs partnership nominee.
The Depository Trust Company (DTC) is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the U.S Securities and Exchange Commission. Established in 1973, DTC was created to reduce costs and provide clearing and settlement efficiencies by immobilizing securities and making book-entry changes to ownership of the securities. DTC provides securities movements for the net settlements of the National Securities Clearing Corporations (NSCC), and settlement for institutional trades (which typically involve money and
securities transfers between custodian banks and broker/dealers), as well as money market instruments.
DTC is a subsidiary of The Depository Trust & Clearing Company (DTCC). DTCC is a holding company established in 1999 to combine DTC and NSCC. DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage backed securities, money market instruments and over the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCCs customer base extends to thousands of companies within the global financial services industry. DTCC serves
brokers, dealers, institutional investors, banks, trust companies, mutual fund companies, insurance carriers, hedge funds and other financial intermediaries either directly or through correspondent relationships.
To facilitate subsequent transfers, the debt securities may be registered in the name of DTCs nominee, Cede & Co. The deposit of the debt securities with DTC and their registration in the name of Cede & Co. will effect no change in beneficial ownership. DTC has no knowledge of the actual beneficial owners of the debt securities. DTCs records reflect only the identity of the direct participating institutions to whose accounts debt securities are credited, which may or may not be the beneficial owners. The participating institutions remain responsible for keeping account of their holdings on behalf of their customers.
Delivery of notices and other communications by DTC to direct participating institutions, by direct participating institutions to indirect participating institutions, and by direct participating institutions and indirect participating institutions to beneficial owners of debt securities are governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect.
Neither DTC nor Cede & Co. consents or votes with respect to the debt securities. Under its usual procedures, DTC mails a proxy to the issuer as soon as possible after the record date. The proxy assigns Cede & Co.s consenting or voting rights to those direct participating institutions to whose accounts the debt securities are credited on the record date.
If applicable, redemption notices shall be sent to Cede & Co. If less than all of the debt securities of a series represented by global securities are being redeemed, DTCs practice is to determine by lot the amount of the interest of each direct participating institution in that issue to be redeemed.
To the extent that any debt securities provide for repayment or repurchase at the option of the holders thereof, a beneficial owner shall give notice of any option to elect to have its interest in the global security repaid by us, through its participating institution, to the applicable trustee, and shall effect delivery of the interest in a global security by causing the direct participating institution to transfer the direct participating
16
TABLE OF CONTENTS
institutions interest in the global security or securities representing the interest, on DTCs records, to the applicable trustee. The requirement for physical delivery of debt securities in connection with a demand for repayment or repurchase will be deemed satisfied when the ownership rights in the global security or securities representing the debt securities are transferred by direct participating institutions on DTCs records.
DTC may discontinue providing its services as securities depository for the debt securities at any time. Under such circumstances, in the event that a successor securities depository is not appointed, debt security certificates are required to be printed and delivered as described above.
We may decide to discontinue use of the system of book-entry transfers through the securities depository. In that event, debt security certificates will be printed and delivered as described above.
DTCC is industry-owned by its customers who are members of the financial community, such as banks, broker/dealers, mutual funds and other financial institutions. DTCC operates on an at-cost basis, returning excess revenue from transaction fees to its member firms. All services provided by DTC are regulated by the U.S. Securities and Exchange Commission.
The 2009 DTCC Board of Directors is composed of 18 directors serving one-year terms. Fourteen directors are representatives of clearing agency participants, including international broker/dealers, custodian and clearing banks, and investment institutions. Two directors are designated by DTCCs preferred shareholders, which are NYSE Euronext and FINRA, and the remaining two are the chairman and chief executive officer and the president and chief operating officer of DTCC. All of the Board members except those designated by the preferred shareholders are elected annually.
The information in this section concerning DTC and DTCs book-entry system has been obtained from sources that we believe to be reliable, but we take no responsibility for its accuracy.
17
TABLE OF CONTENTS
SELLING SHAREHOLDERS
We are registering ordinary shares currently owned by the Selling Shareholders listed below to be sold under this prospectus (the Shares).
The following table sets forth the name of the Selling Shareholders, the number of ordinary shares owned by the Selling Shareholders immediately prior to the date of this prospectus and the number of Shares to be offered by the Selling Shareholders pursuant to this prospectus. Percentage of beneficial ownership before this offering is based on 67,039,796 of our ordinary shares outstanding as of August 13, 2010. Beneficial ownership is based on information furnished by the Selling Shareholders and our share ledger maintained by Continental Stock Transfer & Trust Company as transfer agent for our ordinary shares.
The Selling Shareholders may offer for sale all or part of the Shares from time to time. The table below assumes that the Selling Shareholders will sell all of the Shares offered for sale. The Selling Shareholders are under no obligation, however, to sell any Shares pursuant to this prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial Ownership
Before Offering
(1)
|
|
Number of Shares Offered
|
|
Beneficial Ownership
After Offering
|
Selling Shareholder
|
|
Number
|
|
Percentage
|
|
Number
|
|
Percentage
|
Asset Managers Holdings Co Ltd
|
|
|
2,845,185
|
|
|
|
4.2
|
%
|
|
|
1,422,593
|
|
|
|
1,422,592
|
|
|
|
2.1
|
%
|
Great Avenue Investments Limited
|
|
|
2,801,478
|
|
|
|
4.2
|
%
|
|
|
1,400,739
|
|
|
|
1,400,739
|
|
|
|
2.1
|
%
|
New Horizon Cellstar
|
|
|
2,501,320
|
|
|
|
3.7
|
%
|
|
|
1,250,660
|
|
|
|
1,250,660
|
|
|
|
1.9
|
%
|
Atlantis China Star Fund
|
|
|
2,464,515
|
|
|
|
3.7
|
%
|
|
|
907,979
|
|
|
|
1,556,536
|
|
|
|
2.3
|
%
|
HTSS Capital Limited
|
|
|
1,807,382
|
|
|
|
2.7
|
%
|
|
|
903,691
|
|
|
|
903,691
|
|
|
|
1.3
|
%
|
Megastar Management (China) Ltd
|
|
|
1,429,326
|
|
|
|
2.1
|
%
|
|
|
714,663
|
|
|
|
714,663
|
|
|
|
1.1
|
%
|
Pantheon China Acquisition Limited
|
|
|
1,291,667
|
(2)
|
|
|
1.9
|
%
|
|
|
1,291,667
|
(2)
|
|
|
0
|
|
|
|
|
|
The China Development Capital
|
|
|
1,124,165
|
|
|
|
1.7
|
%
|
|
|
1,124,165
|
|
|
|
0
|
|
|
|
|
|
State Street Bank & Trust Co
|
|
|
1,124,165
|
|
|
|
1.7
|
%
|
|
|
1,124,165
|
|
|
|
0
|
|
|
|
|
|
Indus Asia Pacific Master Fund Ltd
|
|
|
1,003,507
|
|
|
|
1.5
|
%
|
|
|
501,754
|
|
|
|
501,753
|
|
|
|
0.7
|
%
|
Huge Ally Investments Limited
|
|
|
728,129
|
|
|
|
1.1
|
%
|
|
|
364,065
|
|
|
|
364,064
|
|
|
|
0.5
|
%
|
Bethella Investments Limited
|
|
|
726,383
|
(3)
|
|
|
1.1
|
%
|
|
|
363,192
|
|
|
|
363,191
|
(3)
|
|
|
0.5
|
%
|
Indus Opportunity Master Fund Ltd
|
|
|
668,971
|
|
|
|
1.0
|
%
|
|
|
334,486
|
|
|
|
334,485
|
|
|
|
0.5
|
%
|
Time Galaxy Limited
|
|
|
409,216
|
(4)
|
|
|
0.6
|
%
|
|
|
204,608
|
|
|
|
204,608
|
(4)
|
|
|
0.3
|
%
|
Time Region Holdings Limited
|
|
|
409,216
|
|
|
|
0.6
|
%
|
|
|
204,608
|
|
|
|
204,608
|
|
|
|
0.3
|
%
|
Muaratai Investments Limited
|
|
|
389,134
|
|
|
|
0.6
|
%
|
|
|
194,567
|
|
|
|
194,567
|
|
|
|
0.3
|
%
|
Atlantis China Fortune Fund
|
|
|
389,134
|
|
|
|
0.6
|
%
|
|
|
194,567
|
|
|
|
194,567
|
|
|
|
0.3
|
%
|
Super Castle Investments Limited
|
|
|
342,500
|
(5)
|
|
|
0.5
|
%
|
|
|
342,500
|
(5)
|
|
|
0
|
|
|
|
|
|
Kevin Kezhong Wu
|
|
|
564,583
|
(6)
|
|
|
0.8
|
%
|
|
|
564,583
|
(6)
|
|
|
0
|
|
|
|
|
|
Christina Jun Mu
|
|
|
563,683
|
(6)
|
|
|
0.8
|
%
|
|
|
563,683
|
(6)
|
|
|
0
|
|
|
|
|
|
Jennifer J Weng
|
|
|
100,000
|
(7)
|
|
|
0.1
|
%
|
|
|
100,000
|
(7)
|
|
|
0
|
|
|
|
|
|
Earlybird Capital Inc.
|
|
|
84,298
|
|
|
|
0.1
|
%
|
|
|
84,298
|
|
|
|
0
|
|
|
|
|
|
Hunter S Reisner
|
|
|
61,667
|
(8)
|
|
|
0.1
|
%
|
|
|
61,667
|
(8)
|
|
|
0
|
|
|
|
|
|
Francisco A Garcia
|
|
|
50,667
|
(8)
|
|
|
0.1
|
%
|
|
|
50,667
|
(8)
|
|
|
0
|
|
|
|
|
|
Qiang Sean Wang
|
|
|
45,000
|
|
|
|
0.1
|
%
|
|
|
45,000
|
|
|
|
0
|
|
|
|
|
|
Easton Capital Corp Defined Benefit Plan
|
|
|
41,667
|
(8)
|
|
|
0.1
|
%
|
|
|
41,667
|
(8)
|
|
|
0
|
|
|
|
|
|
Total
|
|
|
23,966,958
|
(9)
|
|
|
34.7
|
%
|
|
|
14,356,234
|
(9)
|
|
|
9,610,724
|
|
|
|
14.3
|
%
|
|
(1)
|
Beneficial ownership and percentage ownership are determined in accordance with the rules of the Securities and Exchange Commission. In calculating the number of shares beneficially owned and the percentage ownership of a Selling Shareholder, shares underlying options held by such Selling Shareholder that are either currently exercisable or exercisable within 60 days from August 16, 2010 are deemed outstanding. These shares, however, are not deemed outstanding for the purpose of computing the percentage ownership of any other Selling Shareholders.
|
|
(2)
|
Includes 1,291,667 ordinary shares issuable upon exercise of warrants held by Pantheon China Acquisition Limited, an entity controlled by Mr. Mark D. Chen, one of our directors. Mr. Chen is the spouse of Ms. Jennifer J. Weng, who is also one of our directors.
|
|
(3)
|
Includes an aggregate of 57,101 ordinary shares for which Bethella Investments Limited disclaims beneficial ownership pursuant to certain Declarations of Trust whereas it acts as Trustee for such shares.
|
|
(4)
|
The ultimate beneficial owner of the shares held by Time Galaxy Limited is Mr. Yungang (Ken) Lu who is one of our directors.
|
|
(5)
|
Super Castle Investments Limited is controlled by Mr. Mark D. Chen, our director, who is also the spouse of Ms. Jennifer J. Weng, also our director. Does not include 1,291,667 shares held by Pantheon China Acquisition Limited, a company controlled by Mr. Chen, or 100,000 shares held by Ms. Weng.
|
|
(6)
|
Includes 333,333 ordinary shares issuable upon exercise of warrants.
|
|
(7)
|
Ms. Weng, our director, is the spouse of Mr. Mark D. Chen, also our director. Does not include 342,500 shares held by Super Castle Investments Limited or 1,291,667 shares held by Pantheon China Acquisition Limited, companies controlled by Mr. Chen.
|
|
(8)
|
Includes 41,667 ordinary shares issuable upon exercise of warrants.
|
|
(9)
|
Includes 2,083,334 ordinary shares issuable upon exercise of warrants.
|
18
TABLE OF CONTENTS
In connection with the formation of Pantheon China Acquisition Corp. (Pantheon), an aggregate of 1,250,000 ordinary shares were issued to Super Castle Investments Limited, Mark D. Chen, Christina Jun Mu, Kevin Kezhong Wu, Jennifer J. Weng, Qiang Sean Wang, Hunter S. Reisner, Easton Capital Corp. Defined Benefit Plan and Francisco A. Garcia for $25,000 in cash, at a purchase price of approximately $0.02 per share.
CCBC was formed through a business combination, which involved the merger of Pantheon with and into Pantheon Arizona Corp. (Pantheon Arizona), then a wholly owned subsidiary of Pantheon formed for the purpose of effecting a merger, with Pantheon Arizona surviving the merger (the Merger) and the conversion and continuation of Pantheon Arizonas corporate existence from Arizona to the Cayman Islands (the Redomestication). Immediately following the Redomestication, the participating shareholders of approximately 93.94% of the issued and outstanding shares of China Cord Blood Services Corporation
(CCBS) completed a share exchange with Pantheon Arizona, whereby Pantheon Arizona issued 54,345,104 ordinary shares to such participating shareholders of CCBS and Pantheon Arizona changed its name to CCBC, resulting in CCBS becoming a subsidiary of CCBC and the participating shareholders becoming holders of CCBCs ordinary shares (the Share Exchange). Subsequent to the Share Exchange, CCBC entered into agreements to exchange 3,506,136 newly issued CCBC shares for the remaining 6.06% of the issued and outstanding shares of CCBS on terms substantially similar to those of the Business Combination, resulting in CCBS becoming our wholly owned subsidiary.
19
TABLE OF CONTENTS
PLAN OF DISTRIBUTION
We may offer and sell, from time to time, some or all of the securities covered by this prospectus up to an aggregate public offering price of $100,000,000. The Selling Shareholders named herein may offer and sell up to 14,356,234 of our ordinary shares owned by such Selling Shareholders under this prospectus. We have registered the securities covered by this prospectus for offer and sale by us and/or the Selling Shareholders so that those securities may be freely sold to the public by us and/or the Selling Shareholders. Registration of the securities covered by this prospectus does not mean, however, that those securities necessarily will be offered
or sold.
Securities covered by this prospectus may be sold from time to time, in one or more transactions, at market prices prevailing at the time of sale, at prices related to market prices, at a fixed price or prices subject to change, at varying prices determined at the time of sale or at negotiated prices. The securities being offered by this prospectus may be sold:
|
|
to or through one or more underwriters on a firm commitment or agency basis;
|
|
|
through put or call option transactions relating to the securities;
|
|
|
through broker-dealers (acting as agent or principal);
|
|
|
directly to purchasers, through a specific bidding or auction process, on a negotiated basis or otherwise;
|
|
|
through any other method permitted pursuant to applicable law; or
|
|
|
through a combination of any such methods of sale.
|
At any time a particular offer of the securities covered by this prospectus is made, a revised prospectus or prospectus supplement, if required, will be distributed which will set forth the aggregate amount of securities covered by this prospectus being offered and the terms of the offering, including the name or names of any underwriters, dealers, brokers or agents, any discounts, commissions, concessions and other items constituting compensation from us and the Selling Shareholders and any discounts, commissions or concessions allowed or reallowed or paid to dealers. Such prospectus supplement, and, if necessary, a post-effective amendment to the
registration statement of which this prospectus is a part, will be filed with the SEC to reflect the disclosure of additional information with respect to the distribution of the securities covered by this prospectus. In order to comply with the securities laws of certain states, if applicable, the securities sold under this prospectus may only be sold through registered or licensed broker-dealers. In addition, in some states the securities may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from registration or qualification requirements is available and is complied with.
Any public offering price and any discounts or concessions allowed or reallowed or paid to dealers may be changed from time to time. Pursuant to a requirement by the Financial Industry Regulatory Authority, which we refer to as FINRA, the maximum commission or discount to be received by any FINRA member or independent broker/dealer may not be greater than 8% of the gross proceeds received by us for the sale of any securities being registered pursuant to SEC Rule 415 under the Securities Act.
The distribution of securities may be effected from time to time in one or more transactions, including block transactions and transactions on the New York Stock Exchange or any other organized market where the securities may be traded. The securities may be sold at a fixed price or prices, which may be changed, or at market prices prevailing at the time of sale, at prices relating to the prevailing market prices or at negotiated prices. The consideration may be cash or another form negotiated by the parties. Agents, underwriters or broker-dealers may be paid compensation for offering and selling the securities. That compensation may be in the form
of discounts, concessions or commissions to be received from us or from the purchasers of the securities. Any dealers and agents participating in the distribution of the securities may be deemed to be underwriters, and compensation received by them on resale of the securities may be deemed to be underwriting discounts. If any such dealers or agents were deemed to be underwriters, they may be subject to statutory liabilities under the Securities Act.
Agents may from time to time solicit offers to purchase the securities. If required, we will name in the applicable prospectus supplement any agent involved in the offer or sale of the securities and set forth any
20
TABLE OF CONTENTS
compensation payable to the agent. Unless otherwise indicated in the prospectus supplement, any agent will be acting on a best efforts basis for the period of its appointment. Any agent selling the securities covered by this prospectus may be deemed to be an underwriter, as that term is defined in the Securities Act, of the securities.
If underwriters are used in a sale, securities will be acquired by the underwriters for their own account and may be resold from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or at varying prices determined at the time of sale, or under delayed delivery contracts or other contractual commitments. Securities may be offered to the public either through underwriting syndicates represented by one or more managing underwriters or directly by one or more firms acting as underwriters. If an underwriter or underwriters are used in the sale of securities, an underwriting agreement will be
executed with the underwriter or underwriters, as well as any other underwriter or underwriters, with respect to a particular underwritten offering of securities, and will set forth the terms of the transactions, including compensation of the underwriters and dealers and the public offering price, if applicable. The prospectus and prospectus supplement will be used by the underwriters to resell the securities.
If a dealer is used in the sale of the securities, we or an underwriter will sell the securities to the dealer, as principal. The dealer may then resell the securities to the public at varying prices to be determined by the dealer at the time of resale. To the extent required, we will set forth in the prospectus supplement the name of the dealer and the terms of the transactions.
We and the Selling Shareholders may directly solicit offers to purchase the securities and may make sales of securities directly to institutional investors or others. These persons may be deemed to be underwriters within the meaning of the Securities Act with respect to any resale of the securities. To the extent required, the prospectus supplement will describe the terms of any such sales, including the terms of any bidding or auction process, if used.
Agents, underwriters and dealers may be entitled under agreements which may be entered into with us and the Selling Shareholders to indemnification by us and the Selling Shareholders against specified liabilities, including liabilities incurred under the Securities Act, or to contribution by us and the Selling Shareholders to payments they may be required to make in respect of such liabilities. If required, the prospectus supplement will describe the terms and conditions of the indemnification or contribution. Some of the agents, underwriters or dealers, or their affiliates may be customers of, engage in transactions with or perform services for us,
our subsidiaries, the Selling Shareholders or their affiliates.
Under the securities laws of some jurisdictions, the securities offered by this prospectus may be sold in those jurisdictions only through registered or licensed brokers or dealers.
Any person participating in the distribution of securities registered under the registration statement that includes this prospectus will be subject to applicable provisions of the Exchange Act, and the applicable SEC rules and regulations, including, among others, Regulation M, which may limit the timing of purchases and sales of any of our securities by that person. Furthermore, Regulation M may restrict the ability of any person engaged in the distribution of our securities to engage in market-making activities with respect to our securities. These restrictions may affect the marketability of our securities and the ability of any person or entity
to engage in market-making activities with respect to our securities.
Certain persons participating in an offering may engage in over-allotment, stabilizing transactions, short-covering transactions and penalty bids that stabilize, maintain or otherwise affect the price of the offered securities. These activities may maintain the price of the offered securities at levels above those that might otherwise prevail in the open market, including by entering stabilizing bids, effecting syndicate covering transactions or imposing penalty bids, each of which is described below.
|
|
A stabilizing bid means the placing of any bid, or the effecting of any purchase, for the purpose of pegging, fixing or maintaining the price of a security.
|
|
|
A syndicate covering transaction means the placing of any bid on behalf of the underwriting syndicate or the effecting of any purchase to reduce a short position created in connection with the offering.
|
21
TABLE OF CONTENTS
|
|
A penalty bid means an arrangement that permits the managing underwriter to reclaim a selling concession from a syndicate member in connection with the offering when offered securities originally sold by the syndicate member are purchased in syndicate covering transactions.
|
These transactions may be effected on an exchange or automated quotation system, if the securities are listed on that exchange or admitted for trading on that automated quotation system, or in the over-the-counter market or otherwise.
If so indicated in the applicable prospectus supplement, we and the Selling Shareholders will authorize agents, underwriters or dealers to solicit offers from certain types of institutions to purchase offered securities from us and the Selling Shareholders at the public offering price set forth in such prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified date in the future. Such contracts will be subject only to those conditions set forth in the prospectus supplement and the prospectus supplement will set forth the commission payable for solicitation of such contracts.
In addition, ordinary shares may be issued upon conversion of or in exchange for debt securities or other securities.
Each series of offered securities, other than the ordinary shares which are listed on the New York Stock Exchange, will be a new issue of securities and will have no established trading market. Any underwriters to whom offered securities are sold for public offering and sale may make a market in such offered securities, but such underwriters will not be obligated to do so and may discontinue any market making at any time without notice. The offered securities may or may not be listed on a national securities exchange. No assurance can be given that there will be a market for the offered securities.
Any securities that qualify for sale pursuant to Rule 144 or Regulation S under the Securities Act may be sold under Rule 144 or Regulation S rather than pursuant to this prospectus.
To the extent that we and the Selling Shareholders make sales to or through one or more underwriters or agents in at-the-market offerings, we and the Selling Shareholders will do so pursuant to the terms of a distribution agreement between us, the Selling Shareholders and the underwriters or agents. If we engage in at-the-market sales pursuant to a distribution agreement, we and the Selling Shareholders will offer and sell our ordinary shares to or through one or more underwriters or agents, which may act on an agency basis or on a principal basis. During the term of any such agreement, we and the Selling Shareholders may sell ordinary shares on a
daily basis in exchange transactions or otherwise as we and the Selling Shareholders agree with the underwriters or agents. The distribution agreement will provide that any ordinary shares sold will be sold at prices related to the then prevailing market prices for our ordinary shares. Therefore, exact figures regarding proceeds that will be raised or commissions to be paid cannot be determined at this time and will be described in a prospectus supplement. Pursuant to the terms of the distribution agreement, we and the Selling Shareholders also may agree to sell, and the relevant underwriters or agents may agree to solicit offers to purchase, blocks of our ordinary shares or other securities. The terms of each such distribution agreement will be set forth in more detail in a prospectus supplement to this prospectus.
In connection with offerings made through underwriters or agents, we and the Selling Shareholders may enter into agreements with such underwriters or agents pursuant to which we and the Selling Shareholders receive our outstanding securities in consideration for the securities being offered to the public for cash. In connection with these arrangements, the underwriters or agents may also sell securities covered by this prospectus to hedge their positions in these outstanding securities, including in short sale transactions. If so, the underwriters or agents may use the securities received from us and the Selling Shareholders under these arrangements
to close out any related open borrowings of securities.
22
TABLE OF CONTENTS
One or more firms, referred to as remarketing firms, may also offer or sell the securities, if the prospectus supplement so indicates, in connection with a remarketing arrangement upon their purchase. Remarketing firms will act as principals for their own accounts or as agents for us and the Selling Shareholders. These remarketing firms will offer or sell the securities in accordance with a redemption or repayment pursuant to the terms of the securities. The prospectus supplement will identify any remarketing firm and the terms of its agreement, if any, with us and the Selling Shareholders and will describe the remarketing firms
compensation. Remarketing firms may be deemed to be underwriters in connection with the securities they remarket. Remarketing firms may be entitled under agreements that may be entered into with us and the Selling Shareholders to indemnification by us and the Selling Shareholders against certain civil liabilities, including liabilities under the Securities Act and may be customers of, engage in transactions with or perform services for us in the ordinary course of business.
We and the Selling Shareholders may enter into derivative transactions with third parties or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement indicates, in connection with those derivatives, such third parties (or affiliates of such third parties) may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, such third parties (or affiliates of such third parties) may use securities pledged by us and the Selling Shareholders or borrowed from us and the Selling Shareholders or others to
settle those sales or to close out any related open borrowings of shares, and may use securities received from us and the Selling Shareholders in settlement of those derivatives to close out any related open borrowings of shares. The third parties (or affiliates of such third parties) in such sale transactions will be underwriters and, if not identified in this prospectus, will be identified in the applicable prospectus supplement (or a post-effective amendment).
We and the Selling Shareholders may loan or pledge securities to a financial institution or other third party that in turn may sell the securities using this prospectus. Such financial institution or third party may transfer its short position to investors in our securities or in connection with a simultaneous offering of other securities offered by this prospectus or in connection with a simultaneous offering of other securities offered by this prospectus.
23
TABLE OF CONTENTS
EXPENSES
The following table sets forth an estimate of the fees and expenses relating to the issuance and distribution of the securities being registered hereby, all of which shall be borne by the Company. All of such fees and expenses, except for the SEC registration fee, are estimated.
|
|
|
SEC registration fee
|
|
$
|
12,237.76
|
|
FINRA fees
|
|
$
|
17,663.76
|
|
Transfer agents fees and expenses
|
|
$
|
*
|
|
Legal fees and expenses
|
|
$
|
*
|
|
Printing fees and expenses
|
|
$
|
*
|
|
Accounting fees and expenses
|
|
$
|
*
|
|
Miscellaneous fees and expenses
|
|
$
|
*
|
|
Total
|
|
$
|
*
|
|
|
*
|
To be provided by a prospectus supplement or as an exhibit to a Report on Form 6-K that is incorporated by reference into this prospectus.
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INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
We incorporate by reference the filed documents listed below, except as superseded, supplemented or modified by this prospectus:
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|
our Annual Report on Form 20-F for the fiscal year ended March 31, 2010, filed with the SEC on July 16, 2010;
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the description of our ordinary shares contained in our Registration Statement on Form F-1, as amended, under the Securities Act of 1933, as amended (the Securities Act), as originally filed with the SEC on August 28, 2009 (Registration No. 333-161602) under the heading Description of Securities and as incorporated into our Registration Statement on Form 8-A, filed with the SEC on November 12, 2009;
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|
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any Form 20-F, 10-K, 10-Q or 8-K filed with the SEC after the date of this prospectus and prior to the termination of this offering of securities (except to the extent such reports are furnished but not filed with the SEC); and
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|
|
any Report on Form 6-K submitted to the SEC after the date of this prospectus and prior to the termination of this offering of securities, but only to the extent that the forms expressly state that we incorporate them by reference in this prospectus.
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Potential investors, including any beneficial owner, may obtain a copy of any of the documents summarized herein (subject to certain restrictions because of the confidential nature of the subject matter) or any of our SEC filings incorporated by reference herein without charge by written or oral request directed to Albert Chen, Chief Financial Officer; 48
th
Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong S.A.R. The telephone number at our executive office is (852) 3605-8180.
You should rely only on the information incorporated by reference or provided in this prospectus or any prospectus supplement. We have not authorized anyone else to provide you with different information. We are not making an offer of these securities in any state where the offer is not permitted. You should not assume that the information in this prospectus or any prospectus supplement is accurate as of any date other than the date on the front of those documents.
Any statement contained in a document incorporated by reference herein shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained herein, or in a subsequently filed document incorporated by reference herein, modifies or supersedes that statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute part of this prospectus.
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INDEMNIFICATION
Cayman Islands law does not limit the extent to which a companys articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. CCBCs Memorandum and Articles of Association provide for indemnification of officers and directors for losses, damages, costs and expenses incurred in their capacities as such, except that such indemnity shall not extend t o any matter in respect of any fraud or dishonesty.
This provision, however, will not eliminate or limit liability arising under federal securities laws. CCBCs Memorandum and Articles of Association do not eliminate its directors fiduciary duties. The inclusion of the foregoing provision may, however, discourage or deter shareholders or management from bringing a lawsuit against directors even though such an action, if successful, might otherwise have benefited CCBC and its shareholders. This provision should not affect the availability of a claim or right of action based upon a directors fraud or dishonesty.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed 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.
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LEGAL MATTERS
We are being represented by Loeb & Loeb LLP and Jones Day with respect to legal matters of United States federal securities and New York State law. The validity of the ordinary shares offered in this offering and legal matters as to Cayman Islands law will be passed upon for us by Conyers Dill & Pearman. Legal matters as to PRC law will be passed upon for us by JunZeJun Law Offices.
EXPERTS
The consolidated financial statements of CCBC and its subsidiaries as of March 31, 2009 and 2010 and for each of the years in the three-year period ended March 31, 2010, and managements assessment of the effectiveness of internal control over financial reporting as of March 31, 2010, have been incorporated by reference herein and in the registration statement in reliance upon the reports of KPMG, 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 on the consolidated financial statements of CCBC and its subsidiaries contains explanatory paragraphs that state (i) CCBC completed a share exchange with China Cord Blood Services Corporation, a company with limited liability incorporated in the Cayman Islands (CCBS), on June 30, 2009 and the share exchange has been accounted for financial reporting purposes as the issuance of securities by CCBS in exchange for the assets and liabilities of CCBC, accompanied by a recapitalization. The consolidated financial statements of CCBC reflect CCBSs assets and liabilities at their historical carrying amounts. The results,
assets and liabilities of CCBC presented in its consolidated financial statements for periods prior to the completion of the share exchange are those of CCBS; (ii) CCBC established vendor-specific objective evidence for the undelivered cord blood storage services during the year ended March 31, 2008 and began to account for cord blood processing services and storage services as two separate units of accounting in that year; and (iii) CCBC has retroactively adopted the accounting standard for consolidation and reclassified non-controlling interests as a component of equity, separately from the equity attributable to the shareholders of CCBC. Net income and other comprehensive income are also attributed to the shareholders of CCBC and the non-controlling interests.
The offices of KPMG are located at 8/F, Princes Building, 10 Chater Road, Central, Hong Kong.
The statements included in this prospectus and the registration statement under the caption Risk Factors, Enforcement of Civil Liabilities, and under the caption Risk Factors, History and Current Business and Regulation in our Annual Report on Form 20-F for the fiscal year ended March 31, 2010, filed with the SEC on July 16, 2010, incorporated by reference in this prospectus and the registration statement, to the extent they constitute matters of PRC law, have been reviewed and confirmed by JunZeJun Law Offices, PRC counsel to us, as experts in such matters, and are included or incorporated
by reference in this prospectus and the registration statement in reliance upon such review and confirmation. The offices of JunZeJun Law Offices are located at 6/F, South Tower, Financial Street Center, A9 Financial Street, Xicheng District, Beijing 100140, PRC.
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WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form F-3 under the Securities Act with respect to the offer and sale of securities pursuant to this prospectus. This prospectus, filed as a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules thereto in accordance with the rules and regulations of the SEC and no reference is hereby made to such omitted information. Statements made in this prospectus concerning the contents of any contract, agreement or other document filed as an exhibit to the registration statement are summaries of all of the material
terms of such contract, agreement or document, but do not repeat all of their terms. Reference is made to each such exhibit for a more complete description of the matters involved and such statements shall be deemed qualified in their entirety by such reference. The registration statement and the exhibits and schedules thereto filed with the SEC may be inspected, without charge, and copies may be obtained at prescribed rates, at the public reference facility maintained by the SEC at its principal office at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the public reference facility by calling 1-800-SEC-0330. The SEC also maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically through the SECs Electronic Data Gathering, Analysis and Retrieval (EDGAR) system, including the Company, which can be accessed at
http://www.sec.gov
. For
further information pertaining to the securities offered by this prospectus and China Cord Blood Corporation, reference is made to the registration statement.
China Cord Blood Corporation furnishes reports and other information to the SEC. You may read and copy any document we furnish at the SECs public reference facilities and the website of the SEC referred to above. China Cord Blood Corporations file number with the SEC is 001-34541, and we began filing through EDGAR beginning on July 7, 2009.
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ENFORCEMENT OF CIVIL LIABILITIES
We are registered under the laws of the Cayman Islands by way of continuation as an exempted company with limited liability. We are registered in the Cayman Islands because of certain benefits associated with being a Cayman Islands corporation, such as political and economic stability, an effective judicial system, a favorable tax system, the absence of foreign exchange control or currency restrictions and the availability of professional and support services. However, the Cayman Islands has a less developed body of securities laws as compared to the United States and provides protections for investors to a significantly lesser extent. In addition,
Cayman Islands companies do not have standing to sue before the federal courts of the United States.
Substantially all of our assets are located outside the United States. In addition, a majority of our directors and officers are nationals or residents of jurisdictions other than the United States and all or a substantial portion of their assets are located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon us or these persons, or to enforce against us or them judgments obtained in U.S. courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States. It may also be difficult for
you to enforce in U.S. courts judgments obtained in U.S. courts based on the civil liability provisions of the U.S. federal securities laws against us, our officers and directors.
We have appointed Law Debenture Corporate Services Inc., 400 Madison Avenue, Ste. 4D, New York, New York 10017, as our agent to receive service of process with respect to any action brought against us in the United States District Court for the Southern District of New York under the federal securities laws of the United States or of any state in the United States or any action brought against us in the Supreme Court of the State of New York in the County of New York under the securities laws of the State of New York.
Conyers Dill & Pearman, our counsel as to Cayman Islands law, and JunZeJun Law Offices, our counsel as to PRC law, have advised us that there is uncertainty as to whether the courts of the Cayman Islands or the PRC would, respectively, (1) recognize or enforce judgments of U.S. courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States, or (2) entertain original actions brought in the Cayman Islands or the PRC against us or our directors or officers predicated upon the securities laws of the United States or any state in the
United States.
Conyers Dill & Pearman have informed us that the uncertainty with regard to Cayman Islands law relates to whether a judgment obtained from the U.S. courts under civil liability provisions of the securities law will be determined by the courts of the Cayman Islands as penal or punitive in nature. The courts of the Cayman Islands may not recognize or enforce such judgments against a Cayman company, and because such a determination has not yet been made by a court of the Cayman Islands, it is uncertain whether such civil liability judgments from U.S. courts would be enforceable in the Cayman Islands. Conyers Dill & Pearman has further advised us
that the courts of the Cayman Islands would recognize a final and conclusive judgment in the federal or state courts of the United States under which a sum of money is payable (other than a sum of money payable in respect of multiple damages, taxes or other charges of a like nature or in respect of a fine or other penalty) and would give a judgment based thereon provided that (a) such courts had proper jurisdiction over the parties subject to such judgment; (b) such courts did not contravene the rules of natural justice of the Cayman Islands; (c) such judgment was not obtained by fraud; (d) the enforcement of the judgment would not be contrary to the public policy of the Cayman Islands; (e) no new admissible evidence relevant to the action is submitted prior to the rendering of the judgment by the courts of the Cayman Islands; and (f) there is due compliance with the correct procedures under the laws of the Cayman Islands.
JunZeJun Law Offices, our PRC counsel, has advised us that the recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedure Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedure Law based either on treaties between China and the country where the judgment is made or on reciprocity between jurisdictions. JunZeJun Law Offices has advised us further that under PRC law, a foreign judgment, which does not otherwise violate basic legal principles, state sovereignty, security or social public interest, may be recognized and enforced by a PRC court, based
either on treaties between China and the country where the judgment is
29
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made or on reciprocity between jurisdictions. As there currently exists no treaty or other form of reciprocity between China and the United States governing the recognition of judgments, including those predicated upon the liability provisions of the U.S. federal securities laws, there is uncertainty whether and on what basis a PRC court would enforce judgments rendered by U.S. courts.
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$100,000,000
CHINA CORD BLOOD CORPORATION
Ordinary Shares
Preferred Shares
Warrants
Subscription Rights
Debt Securities
Units
14,356,234 Ordinary Shares Offered by the Selling Shareholders Named Herein
PROSPECTUS
[
], 2010
No dealer, salesperson or any other person is authorized to give any information or make any representations in connection with this offering other than those contained in this prospectus and, if given or made, the information or representations must not be relied upon as having been authorized by us. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any security other than the securities offered by this prospectus, or an offer to sell or a solicitation of an offer to buy any securities by anyone in any jurisdiction in which the offer or solicitation is not authorized or is unlawful.
TABLE OF CONTENTS
[Alternate Page for Warrant Prospectus]
Subject to completion, dated August 16, 2010
PROSPECTUS
CHINA CORD BLOOD CORPORATION
Ordinary Shares
Warrants
This prospectus relates to 11,500,000 ordinary shares of China Cord Blood Corporation, which are issuable upon the exercise of outstanding warrants issued in our initial public offering pursuant to a prospectus dated December 14, 2006. In addition, this prospectus relates to the issuance of the following securities issuable upon exercise of the outstanding unit purchase option granted to the underwriters representative in our initial public offering: (i) 500,000 ordinary shares, par value $0.0001 per share, (ii) 1,000,000 warrants and (iii) 1,000,000 ordinary shares issuable upon the exercise of the warrants.
We will not receive any of the proceeds from the sale of the ordinary shares or warrants under this prospectus, although we could receive up to $57,500,000 upon the exercise of all of the warrants issued in our initial public offering. In addition, the holder of the unit purchase option must pay an exercise price of $6.60 per unit in order to receive the ordinary shares and warrants underlying the unit, and the exercise price of the warrants underlying the representatives unit purchase option is $5.00 per share. Accordingly, we could receive up to $3,300,000 from the exercise of the representatives unit purchase option and up to
$5,000,000 from the exercise of the warrants underlying the representatives unit purchase option.
In reviewing this prospectus, you should carefully consider the matters described under the caption Risk Factors beginning on page
3
of the Prospectus.
Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
This prospectus does not constitute an offer to sell or the solicitation of an offer to buy any securities.
The date of this prospectus is August [ ], 2010
TABLE OF CONTENTS
[Alternate Page for Warrant Prospectus]
The Offering
Ordinary shares in the offering
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Ordinary shares outstanding after the offering
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We will not receive any of the proceeds from the sale of the shares or warrants under this prospectus, although we could receive up to $57,500,000 upon the exercise of all of the warrants issued in our initial public offering. In addition, the holder of the unit purchase option must pay an exercise price of $6.60 per unit in order to receive the ordinary shares and warrants underlying the unit, and the exercise price of the warrants underlying the underwriters unit purchase option is $5.00 per share. Accordingly, we could receive up to $3,300,000 from the exercise of the representatives unit purchase option and up to $5,000,000 from the exercise of the warrants underlying the representatives unit purchase option.
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A-1
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[Alternate Page for Warrant Prospectus]
USE OF PROCEEDS
We will not receive any of the proceeds from the sale of the ordinary shares or warrants under this prospectus, although we could receive up to $57,500,000 upon the exercise of all of the warrants issued in our initial public offering. In addition, the holder of the unit purchase option must pay an exercise price of $6.60 per unit in order to receive the ordinary shares and warrants underlying the unit, and the exercise price of the warrants underlying the underwriters unit purchase option is $5.00 per share. Accordingly, we could receive up to $3,300,000 from the exercise of the representatives unit purchase option and up to $5,000,000 from
the exercise of the warrants underlying the representatives unit purchase option.
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TABLE OF CONTENTS
[Alternate Page for Warrant Prospectus]
CHINA CORD BLOOD CORPORATION
ORDINARY SHARES
WARRANTS
PROSPECTUS
TABLE OF CONTENTS
PART II INFORMATION NOT REQUIRED IN PROSPECTUS
Item 8. Indemnification of Directors and Officers.
Cayman Islands law does not limit the extent to which a companys articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. CCBCs Memorandum and Articles of Association provide for indemnification of officers and directors for losses, damages, costs and expenses incurred in their capacities as such, except that such indemnity shall not extend to any matter in respect of any fraud or dishonesty.
This provision, however, will not eliminate or limit liability arising under federal securities laws. CCBCs Memorandum and Articles of Association do not eliminate its directors fiduciary duties. The inclusion of the foregoing provision may, however, discourage or deter shareholders or management from bringing a lawsuit against directors even though such an action, if successful, might otherwise have benefited CCBC and its shareholders. This provision should not affect the availability of a claim or right of action based upon a directors fraud or dishonesty.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed 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.
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Item 9. Exhibits
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Exhibit
No.
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Description
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1.1
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Form of Equity Securities Underwriting Agreement*
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1.2
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Form of Dept Securities Underwriting Agreement*
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3.1
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Memorandum and Articles of Association
(1)
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4.1
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Specimen Ordinary Share Certificate
(1)
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4.2
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Certificate of Designation for Preferred Shares*
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4.3
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Specimen Warrant Certificate*
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4.4
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Form of Warrant Agreement*
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4.5
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Form of Subscription Rights Agreement*
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4.6
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Form of Subscription Rights Certificate*
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4.7
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Form of Senior Debt Securities Indenture
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4.8
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Form of Subordinated Debt Securities Indenture
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4.9
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Specimen Unit Certificate*
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5.1
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Opinion of Conyers Dill & Pearman
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5.2
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Opinion of Loeb & Loeb LLP
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12.1
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Statement regarding the computation of consolidated ratio of earnings to fixed charges
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23.1
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Consent of Conyers Dill & Pearman (included in Exhibit 5.1)
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23.2
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Consent of Loeb & Loeb LLP (included in Exhibit 5.2)
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23.3
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Consent of KPMG, independent registered public accounting firm
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23.4
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Consent of JunZeJun Law Offices
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23.5
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Consent of Frost & Sullivan
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24.1
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Power of Attorney (included in signature page of this registration statement)
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25.1
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Form T-1 Statement of Eligibility under the Trust Indenture Act of 1939 of the Trustee under the Senior Debt Securities Indenture*
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25.2
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Form T-1 Statement of Eligibility under the Trust Indenture Act of 1939 of the Trustee under the Subordinated Debt Securities Indenture*
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99.1
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Acquisition Agreement, dated February 24, 2010, between China Stem Cells (East) Company Limited, a subsidiary of the Registrant and Glorysum Holdings Group Limited.
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*
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To be filed as an exhibit to a post-effective amendment to this registration statement or as an exhibit to a report filed or furnished pursuant to the Exchange Act of the Registrant and incorporated herein by reference.
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(1)
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Incorporated by reference to the registration statement on Form F-1 of the Registrant (File No. 333-161602).
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Item 10. Undertakings.
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(a)
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The undersigned Registrant hereby undertakes:
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(1)
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To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
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(i)
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to include any prospectus required by Section 10(a)(3) of the Securities Act;
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(ii)
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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 SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the Calculation of Registration Fee table in the effective registration statement;
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(iii)
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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;
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provided
,
however
, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the SEC 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.
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(2)
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That, for the purpose of determining any liability under the Securities Act, 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.
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(3)
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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.
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(4)
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To file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished, provided that the Registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3, a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of the Act or Rule 3-19 of this chapter if such financial statements and information are contained in periodic reports
filed with or furnished to the SEC 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 Form F-3.
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(5)
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That, for the purpose of determining liability under the Securities Act to any purchaser:
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(i)
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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
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(ii)
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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 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or
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(6)
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That, for the purpose of determining liability of the Registrant under the Securities Act 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 or sell such securities to such purchaser:
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(i)
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Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;
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(ii)
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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;
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(iii)
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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
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(iv)
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Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.
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(b)
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The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, 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.
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(c)
|
The undersigned Registrant hereby undertakes to supplement the prospectus, after the expiration of the subscription period, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by the underwriters, and the terms of any subsequent reoffering thereof. If any public offering by the underwriters is to be made on terms differing from those set forth on the cover page of the prospectus, a post-effective amendment will be filed to set forth the terms of such offering.
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(d)
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Insofar as indemnification for liabilities arising under the Securities Act 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 SEC such indemnification is against public policy as expressed in the Securities 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 of the Registrant in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
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(e)
|
The undersigned Registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of section 310 of the Trust Indenture Act (Act) in accordance with the rules and regulations prescribed by the SEC under section 305(b)(2) of the Act.
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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 F-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Hong Kong S.A.R., Country of Peoples Republic of China on August 16, 2010.
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CHINA CORD BLOOD CORPORATION
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By:
/s/ Ting Zheng
Ting Zheng
Chairperson and Chief Executive Officer
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POWER OF ATTORNEY
Each of the undersigned officers and directors of China Cord Blood Corporation hereby severally constitutes and appoints Ms. Ting Zheng, and each of them singly, the true and lawful attorney with full power to them, and each of them singly, to sign for the undersigned and in his or her name in the capacities indicated below, any and all amendments, including the post-effective amendments, to this Registration Statement, and generally to do all such things in the undersigneds name and behalf in such capacities to enable China Cord Blood Corporation to comply with the applicable provisions of the Securities Act of 1933, as amended, and all rules
and regulation thereunder, and all requirements of the Securities and Exchange Commission, and each of the undersigned hereby ratifies and confirms all that said attorneys or any of them shall lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
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Signature
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Title
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Date
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/s/ Ting Zheng
Ting Zheng
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Chief Executive Officer, Chairperson and Director
(principal executive officer)
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August 16, 2010
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/s/ Albert Chen
Albert Chen
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Chief Financial Officer
(principal accounting and financial officer)
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August 16, 2010
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/s/ Mark D. Chen
Mark D. Chen
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Director
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August 16, 2010
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/s/ Ken Lu
Ken Lu
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Director
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August 16, 2010
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/s/ Jennifer J. Weng
Jennifer J. Weng
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Director
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August 16, 2010
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II-6
TABLE OF CONTENTS
SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
Pursuant to the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of China Cord Blood Corporation, has signed this registration statement or amendment thereto in New York, New York on August 16, 2010.
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Authorized U.S. Representative
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By:
/s/ Mitchell S. Nussbaum
Name: Mitchell S. Nussbaum
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II-7
TABLE OF CONTENTS
INDEX TO EXHIBITS
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Exhibit
No.
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Description
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1.1
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Form of Equity Securities Underwriting Agreement*
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1.2
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Form of Dept Securities Underwriting Agreement*
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3.1
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Memorandum and Articles of Association
(1)
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4.1
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Specimen Ordinary Share Certificate
(1)
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4.2
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Certificate of Designation for Preferred Shares*
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4.3
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Specimen Warrant Certificate*
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4.4
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Form of Warrant Agreement*
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4.5
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|
Form of Subscription Rights Agreement*
|
4.6
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Form of Subscription Rights Certificate*
|
4.7
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Form of Senior Debt Securities Indenture
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4.8
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Form of Subordinated Debt Securities Indenture
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4.9
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Specimen Unit Certificate*
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5.1
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Opinion of Conyers Dill & Pearman
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5.2
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Opinion of Loeb & Loeb
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12.1
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Statement regarding the computation of consolidated ratio of earnings to fixed charges
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23.1
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Consent of Conyers Dill & Pearman (included in Exhibit 5.1)
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23.2
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Consent of Loeb & Loeb LLP (included in Exhibit 5.2)
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23.3
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Consent of KPMG, independent registered public accounting firm
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23.4
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Consent of JunZeJun Law Offices
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23.5
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Consent of Frost & Sullivan
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24.1
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Power of Attorney (included in signature page of this registration statement)
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25.1
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Form T-1 Statement of Eligibility under the Trust Indenture Act of 1939 of the Trustee under the Senior Debt Securities Indenture*
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25.2
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Form T-1 Statement of Eligibility under the Trust Indenture Act of 1939 of the Trustee under the Subordinated Debt Securities Indenture*
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99.1
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Acquisition Agreement, dated February 24, 2010, between China Stem Cells (East) Company Limited, a subsidiary of the Registrant and Glorysum Holdings Group Limited.
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*
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To be filed as an exhibit to a post-effective amendment to this registration statement or as an exhibit to a report filed or furnished pursuant to the Exchange Act of the Registrant and incorporated herein by reference.
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(1)
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Incorporated by reference to the registration statement on Form F-1 of the Registrant (File No. 333-161602).
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Exhibit
4.7
CHINA
CORD BLOOD CORPORATION
FORM
OF
SENIOR
DEBT SECURITIES INDENTURE
Dated as
of
[ ],
201[ ]
[ ]
Trustee
TABLE OF
CONTENTS
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PAGE
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ARTICLE
I DEFINITIONS AND INCORPORATION BY REFERENCE
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1
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SECTION
1.01
|
Definitions.
|
|
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1
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|
SECTION
1.02
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Other
Definitions.
|
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4
|
|
SECTION
1.03
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Incorporation
by Reference of Trust Indenture Act.
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4
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|
SECTION
1.04
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Rules
of Construction.
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4
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ARTICLE
II THE SECURITIES
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|
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5
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|
SECTION
2.01
|
Issuable
in Series.
|
|
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5
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|
SECTION
2.02
|
Establishment
of Terms of Series of Securities.
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5
|
|
SECTION
2.03
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Execution
and Authentication.
|
|
|
7
|
|
SECTION
2.04
|
Registrar
and Paying Agent.
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8
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|
SECTION
2.05
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Paying
Agent to Hold Money in Trust.
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8
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|
SECTION
2.06
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Securityholder
Lists.
|
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8
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|
SECTION
2.07
|
Transfer
and Exchange.
|
|
|
8
|
|
SECTION
2.08
|
Mutilated,
Destroyed, Lost and Stolen Securities.
|
|
|
9
|
|
SECTION
2.09
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Outstanding
Securities.
|
|
|
9
|
|
SECTION
2.10
|
Treasury
Securities.
|
|
|
10
|
|
SECTION
2.11
|
Temporary
Securities.
|
|
|
10
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|
SECTION
2.12
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Cancellation.
|
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|
10
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|
SECTION
2.13
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Defaulted
Interest.
|
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10
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SECTION
2.14
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Global
Securities.
|
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11
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|
SECTION
2.15
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CUSIP
Numbers.
|
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12
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ARTICLE
III REDEMPTION
|
|
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12
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|
SECTION
3.01
|
Notice
to Trustee.
|
|
|
12
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|
SECTION
3.02
|
Selection
of Securities to be Redeemed.
|
|
|
13
|
|
SECTION
3.03
|
Notice
of Redemption.
|
|
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13
|
|
SECTION
3.04
|
Effect
of Notice of Redemption.
|
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|
13
|
|
SECTION
3.05
|
Deposit
of Redemption Price.
|
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13
|
|
SECTION
3.06
|
Securities
Redeemed in Part.
|
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13
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ARTICLE
IV COVENANTS
|
|
|
14
|
|
SECTION
4.01
|
Payment
of Principal and Interest.
|
|
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14
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|
SECTION
4.02
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SEC
Reports.
|
|
|
14
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|
SECTION
4.03
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Compliance
Certificate.
|
|
|
14
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|
SECTION
4.04
|
Stay,
Extension and Usury Laws.
|
|
|
15
|
|
SECTION
4.05
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Corporate
Existence.
|
|
|
15
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|
SECTION
4.06
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Taxes.
|
|
|
15
|
|
SECTION
4.07
|
Additional
Interest Notice
.
|
|
|
15
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|
SECTION
4.08
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Further
Instruments and Acts.
|
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16
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ARTICLE
V SUCCESSORS
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|
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16
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|
SECTION
5.01
|
When
Company May Merge, Etc.
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|
16
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|
SECTION
5.02
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Successor
Corporation Substituted.
|
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16
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ARTICLE
VI DEFAULTS AND REMEDIES
|
|
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16
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|
SECTION
6.01
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Events
of Default.
|
|
|
16
|
|
SECTION
6.02
|
Acceleration
of Maturity; Rescission and Annulment.
|
|
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18
|
|
SECTION
6.03
|
Collection
of Indebtedness and Suits for Enforcement by Trustee.
|
|
|
19
|
|
SECTION
6.04
|
Trustee
May File Proofs of Claim.
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|
|
19
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|
SECTION
6.05
|
Trustee
May Enforce Claims Without Possession of Securities.
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|
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20
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|
SECTION
6.06
|
Application
of Money Collected.
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|
|
20
|
|
SECTION
6.07
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Limitation
on Suits.
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|
|
20
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|
SECTION
6.08
|
Unconditional
Right of Holders to Receive Principal and Interest.
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21
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|
SECTION
6.09
|
Restoration
of Rights and Remedies.
|
|
|
21
|
|
SECTION
6.10
|
Rights
and Remedies Cumulative.
|
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|
21
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|
SECTION
6.11
|
Delay
or Omission Not Waiver.
|
|
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21
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|
SECTION
6.12
|
Control
by Holders.
|
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|
21
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|
SECTION
6.13
|
Waiver
of Past Defaults.
|
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|
21
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|
SECTION
6.14
|
Undertaking
for Costs.
|
|
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22
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|
ARTICLE
VII TRUSTEE
|
|
|
22
|
|
SECTION
7.01
|
Duties
of Trustee.
|
|
|
22
|
|
SECTION
7.02
|
Rights
of Trustee.
|
|
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23
|
|
SECTION
7.03
|
Individual
Rights of Trustee.
|
|
|
24
|
|
SECTION
7.04
|
Trustee’s
Disclaimer.
|
|
|
24
|
|
SECTION
7.05
|
Notice
of Defaults.
|
|
|
24
|
|
SECTION
7.06
|
Reports
by Trustee to Holders.
|
|
|
24
|
|
SECTION
7.07
|
Compensation
and Indemnity.
|
|
|
24
|
|
SECTION
7.08
|
Replacement
of Trustee.
|
|
|
25
|
|
SECTION
7.09
|
Successor
Trustee by Merger, Etc.
|
|
|
26
|
|
SECTION
7.10
|
Eligibility;
Disqualification.
|
|
|
26
|
|
SECTION
7.11
|
Preferential
Collection of Claims Against Company.
|
|
|
26
|
|
ARTICLE
VIII SATISFACTION AND DISCHARGE; DEFEASANCE
|
|
|
26
|
|
SECTION
8.01
|
Satisfaction
and Discharge of Indenture.
|
|
|
26
|
|
SECTION
8.02
|
Application
of Trust Funds; Indemnification.
|
|
|
27
|
|
SECTION
8.03
|
Legal
Defeasance of Securities of any Series.
|
|
|
27
|
|
SECTION
8.04
|
Covenant
Defeasance.
|
|
|
28
|
|
SECTION
8.05
|
Repayment
to Company.
|
|
|
29
|
|
ARTICLE
IX AMENDMENTS AND WAIVERS
|
|
|
29
|
|
SECTION
9.01
|
Without
Consent of Holders.
|
|
|
29
|
|
SECTION
9.02
|
With
Consent of Holders.
|
|
|
30
|
|
SECTION
9.03
|
Limitations.
|
|
|
30
|
|
SECTION
9.04
|
Compliance
with Trust Indenture Act.
|
|
|
31
|
|
SECTION
9.05
|
Revocation
and Effect of Consents.
|
|
|
31
|
|
SECTION
9.06
|
Notation
on or Exchange of Securities.
|
|
|
31
|
|
SECTION
9.07
|
Trustee
Protected.
|
|
|
32
|
|
SECTION
9.08
|
Effect
of Supplemental Indenture.
|
|
|
32
|
|
ARTICLE
X MISCELLANEOUS
|
|
|
32
|
|
SECTION
10.01
|
Trust
Indenture Act Controls.
|
|
|
32
|
|
SECTION
10.02
|
Notices.
|
|
|
32
|
|
SECTION
10.03
|
Communication
by Holders with Other Holders.
|
|
|
33
|
|
SECTION
10.04
|
Certificate
and Opinion as to Conditions Precedent.
|
|
|
33
|
|
SECTION
10.05
|
Statements
Required in Certificate or Opinion.
|
|
|
33
|
|
SECTION
10.06
|
Record
Date for Vote or Consent of Holders.
|
|
|
34
|
|
SECTION
10.07
|
Rules
by Trustee and Agents.
|
|
|
34
|
|
SECTION
10.08
|
Legal
Holidays.
|
|
|
34
|
|
SECTION
10.09
|
No
Recourse Against Others.
|
|
|
34
|
|
SECTION
10.10
|
Counterparts.
|
|
|
34
|
|
SECTION
10.11
|
Governing
Laws and Submission to Jurisdiction.
|
|
|
34
|
|
SECTION
10.12
|
No
Adverse Interpretation of Other Agreements.
|
|
|
35
|
|
SECTION
10.13
|
Successors.
|
|
|
35
|
|
SECTION
10.14
|
Severability.
|
|
|
35
|
|
SECTION
10.15
|
Table
of Contents, Headings, Etc.
|
|
|
35
|
|
SECTION
10.16
|
Judgment
Currency.
|
|
|
35
|
|
SECTION
10.17
|
Compliance
with Applicable Anti-Terrorism and Money Laundering
Regulations.
|
|
|
35
|
|
ARTICLE
XI SINKING FUNDS
|
|
|
36
|
|
SECTION
11.01
|
Applicability
of Article.
|
|
|
36
|
|
SECTION
11.02
|
Satisfaction
of Sinking Fund Payments with Securities.
|
|
|
36
|
|
SECTION
11.03
|
Redemption
of Securities for Sinking Fund.
|
|
|
36
|
|
This
Table of Contents does not constitute part of the Indenture and shall not have
any bearing on the interpretation of any of its terms or
provisions.
Reconciliation
and tie between Trust Indenture Act of 1939 and Indenture,
Dated as
of
[ ],
201[ ]
Section
310(a)(1)
|
7.10
|
(a)(2)
|
7.10
|
(a)(3)
|
Not
Applicable
|
(a)(4)
|
Not
Applicable
|
(a)(5)
|
7.10
|
(b)
|
7.10
|
(c)
|
Not
Applicable
|
Section
311(a)
|
7.11
|
(b)
|
7.11
|
(c)
|
Not
Applicable
|
Section
312(a)
|
2.06
|
(b)
|
10.03
|
(c)
|
10.03
|
Section
313(a)
|
7.06
|
(b)(1)
|
7.06
|
(b)(2)
|
7.06
|
(c)(1)
|
7.06
|
(d)
|
7.06
|
Section
314(a)
|
4.02,
10.05
|
(b)
|
Not
Applicable
|
(c)(1)
|
10.04
|
(c)(2)
|
10.04
|
(c)(3)
|
Not
Applicable
|
(d)
|
Not
Applicable
|
(e)
|
10.05
|
(f)
|
Not
Applicable
|
Section
315(a)
|
7.01
|
(b)
|
7.05
|
(c)
|
7.01
|
(d)
|
7.01
|
(e)
|
6.14
|
Section
316(a)(1)(A)
|
6.12
|
(a)(1)(B)
|
6.13
|
(a)(2)
|
Not
Applicable
|
(b)
|
6.13
|
(c)
|
10.06
|
Section
317(a)(1)
|
6.03
|
(a)(2)
|
6.04
|
(b)
|
2.05
|
Section
318(a)
|
10.01
|
Note: This
reconciliation and tie shall not, for any purpose, be deemed to be part of the
Indenture.
Indenture dated as of
[ ],
201[ ] between China Cord Blood Corporation, a company organized under the laws
of the Cayman Islands (the “Company”) and [ ] (the “Trustee”).
Each party agrees as follows for the
benefit of the other party and for the equal and ratable benefit of the Holders
of the Securities issued under this Indenture.
ARTICLE
I
DEFINITIONS
AND INCORPORATION BY REFERENCE
SECTION
1.01
Definitions.
“
Additional Amounts
” means any
additional amounts which are required hereby or by any Security, under
circumstances specified herein or therein, to be paid by the Company in respect
of certain taxes imposed on Holders specified therein and which 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 the purposes of this definition, “control” (including,
with correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to any person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities
or by agreement or otherwise.
“
Agent
” means any Registrar or
Paying Agent.
“
Bankruptcy Law
” means Title 11
of the United States Code (or any successor thereto) or any similar federal or
state law for the relief of debtors.
“
Board of Directors
” means the
board of directors 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 adopted by the Board of Directors or pursuant to
authorization by the Board of Directors and to be in full force and effect on
the date of the certificate and delivered to the Trustee.
“
Business Day
” means any day
other than a (x) Saturday, (y) Sunday or (z) day on which state or federally
chartered banking institutions in New York, New York are not required to be
open.
“
Capital Stock
” of any Person
means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in (however designated)
equity of such Person, but excluding any debt securities convertible into such
equity.
“
Certificated Securities
” means
Securities in the form of physical, certificated Securities in registered
form.
“
Company
” means the party named
as such above until a successor replaces it in accordance with the terms of this
Indenture and thereafter means the successor.
“
Company Order
” means a written
order signed in the name of the Company by two Officers, one of whom must be the
Company’s principal executive officer, principal financial officer or principal
accounting officer.
“
Company Request
” means a
written request signed in the name of the Company by its Chairman of the Board,
the Company’s principal executive officer, a President or a Vice President, and
by its Chief Financial Officer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.
“
Corporate Trust Office
” means
the office of the Trustee at which at any particular time its corporate trust
business shall be principally administered which office at the date of the
execution of this Indenture is [ ], Attention: [ ], or at such other
address as the Trustee may designate from time to time.
“
Custodian
” means any receiver,
trustee, assignee, liquidator, sequestrator or similar official under any
Bankruptcy Law.
“
Default
” or “default” means
any event which is, or after notice or passage of time or both would be, an
Event of Default.
“
Default Rate
” means the
default rate of interest specified in the Securities.
“
Depository
” means, with
respect to the Securities of any Series issuable or issued in whole or in part
in the form of one or more Global Securities, the person designated as
Depository for such Series by the Company, which Depository shall be a clearing
agency registered under the Exchange Act; and if at any time there is more than
one such person, “Depository” as used with respect to the Securities of any
Series shall mean the Depository with respect to the Securities of such
Series.
“
Discount Security
” means any
Security that provides for an amount less than the stated principal amount
thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.02.
“
Dollars
” means the currency of
The United States of America.
“
Exchange Act
” means the
Securities Exchange Act of 1934, as amended.
“
Foreign Currency
” means any
currency or currency unit issued by a government other than the government of
The United States of America.
“
Foreign Government
Obligations
” means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that
issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged or (ii) obligations of a person controlled
or supervised by or acting as an agency or instrumentality of such government
the timely payment of which is unconditionally guaranteed as a full faith and
credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer
thereof.
“
Global Security
” or “
Global Securities
” means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.02 evidencing all or part of a Series of Securities, issued to the
Depository for such Series or its nominee, and registered in the name of such
Depository or nominee.
“
Holder
” or “
Securityholder
” means a person
in whose name a Security is registered.
“
Indenture
” means this
Indenture as amended and supplemented from time to time and shall include the
form and terms of particular Series of Securities established as contemplated
hereunder.
“
Interest
,” in respect of the
Securities, unless the context otherwise requires, refers to interest payable on
the Securities, including any additional interest that may become payable
pursuant to Section 6.02(b).
“
Maturity
,” when used with
respect to any Security or installment of principal thereof, means the date on
which the principal of such Security or such installment of principal becomes
due and payable as therein or herein provided, whether at the Stated Maturity or
by declaration of acceleration, call for redemption, notice of option to elect
repayment or otherwise.
“
Officer
” means the Chairman of
the Board, the Company’s principal executive officer, the President, any
Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.
“
Officers’ Certificate
” means a
certificate signed by two Officers, one of whom must be the Company’s principal
executive officer, principal financial officer or principal accounting
officer.
“
Opinion of Counsel
” means a
written opinion of legal counsel who is, and which opinion is, acceptable to the
Trustee and its counsel. Such legal counsel may be an employee of or
counsel to the Company or the Trustee.
“
Person
” means any individual,
corporation, partnership, joint venture, association, limited liability company,
joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.
“
Principal
” or “
principal
” of a Security means
the principal of the Security plus, when appropriate, the premium, if any, on,
and any Additional Amounts in respect of, the Security.
“
Responsible Officer
” means any
officer of the Trustee in its Corporate Trust Office and also means, any vice
president, managing director, director, associate, assistant vice president, or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also, with respect
to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with
a particular subject.
“
SEC
” means the Securities and
Exchange Commission.
“
Security
” or “
Securities
” means the
debentures, notes or other debt instruments of the Company of any Series
authenticated and delivered under this Indenture.
“
Series
” or “
Series of Securities
” means
each series of debentures, notes or other debt instruments of the Company
created pursuant to Sections 2.01 and 2.02 hereof.
“
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.
“
Subordinated Indebtedness
”
means any indebtedness which is expressly subordinated to the indebtedness
evidenced by Securities.
“
Subsidiary
” means, in respect
of any Person, any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital
Stock or other interests (including partnership interests) entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers, general partners or trustees thereof is at the time owned
or controlled, directly or indirectly, by (i) such Person; (ii) such Person and
one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of
such Person.
“
TIA
” means the Trust Indenture
Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of
this Indenture; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “TIA” means, to the extent required by any such
amendment, the Trust Indenture Act 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.
“
U.S. Government Obligations
”
means securities which are (i) direct obligations of The United States of
America for the payment of which its full faith and credit is pledged or (ii)
obligations of a person controlled or supervised by and acting as an agency or
instrumentality of The United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by The United
States of America, and which in the case of (i) and (ii) are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation evidenced by such
depository receipt.
SECTION
1.02
Other
Definitions.
TERM
|
|
DEFINED
IN SECTION
|
“Applicable
Law”
|
|
10.18
|
“Event
of Default”
|
|
6.01
|
“Instrument”
|
|
6.01
|
“Journal”
|
|
10.16
|
“Judgment
Currency”
|
|
10.17
|
“Legal
Holiday”
|
|
10.08
|
“mandatory
sinking fund payment”
|
|
11.01
|
“Market
Exchange Rate”
|
|
10.16
|
“New
York Banking Day”
|
|
10.17
|
“optional
sinking fund payment”
|
|
11.01
|
“Paying
Agent”
|
|
2.04
|
“Registrar”
|
|
2.04
|
“Required
Currency”
|
|
10.17
|
“successor
person”
|
|
5.01
|
“Temporary
Securities”
|
|
2.11
|
SECTION
1.03
Incorporation by Reference
of Trust Indenture Act.
Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. This Indenture
shall also include those provisions of the TIA required to be included herein by
the provisions of the Trust Indenture Reform Act of 1990. The
following TIA terms used in this Indenture have the following
meanings:
“
indenture securities
” means
the Securities.
“
indenture security holder
”
means a Securityholder.
“
indenture to be qualified
”
means this Indenture.
“
indenture trustee
” or
“institutional trustee” means the Trustee.
“
obligor
” on the indenture
securities means the Company and any successor obligor upon the
Securities.
All other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA and not
otherwise defined herein are used herein as so defined.
SECTION
1.04
Rules of
Construction.
Unless
the context otherwise requires:
(a) a
term has the meaning assigned to it;
(b) an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;
(c) references
to “generally accepted accounting principles” shall mean generally accepted
accounting principles in effect as of the time when and for the period as to
which such accounting principles are to be applied;
(d) “or”
is not exclusive;
(e) words
in the singular include the plural, and in the plural include the
singular;
(f) provisions
apply to successive events and transactions;
(g) references
to agreements and other instruments include subsequent amendments
thereto;
(h) the
term “merger” includes a statutory share exchange, and the term “merged” has a
correlative meaning; and
(i) “herein,”
“hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision.
ARTICLE
II
THE
SECURITIES
SECTION
2.01
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. All Securities of a Series shall be identical
except as may be set forth in a Board Resolution, a supplemental indenture or an
Officers’ Certificate detailing the adoption of the terms thereof pursuant to
the authority granted under a Board Resolution. In the case of
Securities of a Series to be issued from time to time, the Board Resolution,
Officers’ Certificate or supplemental indenture may provide for the method by
which specified terms (such as interest rate, maturity date, record date or date
from which interest shall accrue) are to be determined. Securities
may differ between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the
Indenture.
SECTION
2.02
Establishment of Terms of
Series of Securities.
At or
prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection (a), and
either as to such Securities within the Series or as to the Series generally in
the case of Subsections (b) through (t) by a Board Resolution, a supplemental
indenture or an Officers’ Certificate pursuant to authority granted under a
Board Resolution:
(a) the
title, designation, aggregate principal amount and authorized denominations of
the Securities of the Series;
(b) the
price or prices, (expressed as a percentage of the aggregate principal amount
thereof) at which the Securities of the Series will be issued;
(c) the
date or dates on which the principal of the Securities of the Series is
payable;
(d) the
rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any
commodity, commodity index, stock exchange index or financial index) at which
the Securities of the Series shall bear interest, if any, the date or dates from
which such interest, if any, shall commence and be payable and any regular
record date for the interest payable on any interest payment date;
(e) any
optional or mandatory sinking fund provisions or conversion or exchangeability
provisions upon which Securities of the Series shall be redeemed, purchased,
converted or exchanged;
(f) the
date, if any, after which and the price or prices at which the Securities of the
Series may be optionally redeemed or must be mandatorily redeemed and any other
terms and provisions of optional or mandatory provisions;
(g) if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be
issuable;
(h) if
other than the full principal amount, the portion of the principal amount of the
Securities of the Series that shall be payable upon declaration of acceleration
pursuant to Section 6.02 or provable in bankruptcy;
(i) any
addition to or change in the Events of Default which applies 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 6.02;
(j) the
currency or currencies, including composite currencies, in which payments of
principal of, premium or interest, if any, on the Securities of the Series will
be payable, if other than the currency of the United States of
America;
(k) if
payments of principal of, premium or interest, if any, on the Securities of the
Series will be payable, at the Company’s election or at the election of any
Holder, in a currency other than that in which the Securities of the Series are
stated to be payable, the period or periods within which, and the terms and
conditions upon which, the election may be made;
(l) if
payments of interest, if any, on the Securities of the Series will be payable,
at the Company’s election or at the election of any Holder, in cash or
additional securities, and the terms and conditions upon which the election may
be made;
(m) if
denominated in a currency or currencies other than the currency of the United
States of America, the equivalent price of the Securities of the Series in the
currency of the United States of America for purposes of determining the voting
rights of Holders of the Securities of the Series;
(n) if
the amount of payments of principal, premium or interest may be determined with
reference to an index, formula or other method based on a coin or currency other
than that in which the Securities of the Series are stated to be payable, the
manner in which the amounts will be determined;
(o) any
restrictive covenants or other material terms relating to the Securities of the
Series;
(p) whether
the Securities of the Series will be issued in the form of global securities or
certificates in registered form;
(q) any
terms with respect to subordination;
(r) any
listing on any securities exchange or quotation system; and
(s) additional
provisions, if any, related to defeasance and discharge of the offered debt
securities.
All
Securities of any one Series need not be issued at the same time and may be
issued from time to time, consistent with the terms of this Indenture, if so
provided by or pursuant to the Board Resolution, supplemental indenture or
Officers’ Certificate referred to above, and the authorized principal amount of
any Series may not be increased to provide for issuance of additional Securities
of such Series, unless otherwise provided in such Board Resolution, supplemental
Indenture or Officers’ Certificate.
SECTION
2.03
Execution and
Authentication.
Two
Officers shall sign the Securities for the Company by manual or facsimile
signature.
If an
Officer whose signature is on a Security no longer holds that office at the time
the Security is authenticated, the Security shall nevertheless be
valid.
A
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent. The signature shall be conclusive
evidence that the Security has been authenticated under this
Indenture.
The
Trustee shall at any time, and from time to time, authenticate Securities for
original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the
Trustee of a Company Order. Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly confirmed in writing. 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.
The
aggregate principal amount of Securities of any Series outstanding at any time
may not exceed any limit upon the maximum principal amount for such Series set
forth in the Board Resolution, supplemental indenture hereto or Officers’
Certificate delivered pursuant to Section 2.02, except as provided in Section
2.08.
Prior to
the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.02) shall be fully protected in relying on: (a) the Board
Resolution, supplemental indenture hereto or Officers Certificate establishing
the form of the Securities of that Series or of Securities within that Series
and the terms of the Securities of that Series or of Securities within that
Series, (b) an Officers’ Certificate complying with Section 10.04, and (c) an
Opinion of Counsel complying with Section 10.04.
The
Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if a Responsible
Officer of the Trustee in good faith shall determine that such action would
expose the Trustee to personal liability to Holders of any then outstanding
Series of Securities.
The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to
deal with the Company or an Affiliate.
If any
successor that has replaced the Company in accordance with Article 5 has
executed an indenture supplemental hereto with the Trustee pursuant to Section
5.01, any of the Securities authenticated or delivered prior to such transaction
may, from time to time, at the request of such successor, be exchanged for other
Securities executed in the name of the such successor with such changes in
phraseology and form as may be appropriate, but otherwise identical to the
Securities surrendered for such exchange and of like principal amount; and the
Trustee, upon receipt of a Company Order of such successor, shall authenticate
and deliver Securities as specified in such order for the purpose of such
exchange. If Securities shall at any time be authenticated and
delivered in any new name of such successor pursuant to this provision of
Section 2.03 in exchange or substitution for or upon registration of transfer of
any Securities, such successor, at the option of the Holders but without expense
to them, shall provide for the exchange of all Securities then outstanding for
Securities authenticated and delivered in such new name.
SECTION
2.04
Registrar and Paying
Agent.
The
Company shall maintain, with respect to each Series of Securities, at the place
or places specified with respect to such Series pursuant to Section 2.02, an
office or agency where Securities of such Series may be presented or surrendered
for payment (“Paying Agent”) and where Securities of such Series may be
surrendered for registration of transfer or exchange
(“Registrar”). The Registrar shall keep a register with respect to
each Series of Securities and to their transfer and exchange. The
Company will give prompt written notice to the Trustee of the name and address,
and any change in the name or address, of each Registrar and Paying
Agent. If at any time the Company shall fail to maintain any such
required Registrar or Paying Agent or shall fail to furnish the Trustee with the
name and address thereof, such presentations and surrenders 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 and
surrenders.
The
Company may also from time to time designate one or more co-registrars or
additional paying agents 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 obligations to maintain a Registrar or Paying Agent
in each place so specified pursuant to Section 2.02 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 name or
address of any such co-registrar or additional paying agent. The term
“Registrar” includes any co-registrar; and the term “Paying Agent” includes any
additional paying agent.
The
Company hereby appoints
[ ]
as the initial Registrar and Paying Agent for each Series unless another
Registrar or Paying Agent as the case may be, is appointed prior to the time
Securities of that Series are first issued. Each Registrar and Paying
Agent shall be entitled to all of the rights, protections, exculpations and
indemnities afforded to the Trustee in connection with its roles as Registrar
and Paying Agent.
SECTION
2.05
Paying Agent to Hold Money
in Trust.
The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment. While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the
Trustee. The Company at any time may require a Paying Agent to pay
all money held by it to the Trustee. Upon payment over to the
Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have
no further liability for the money. If the Company or a Subsidiary
acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of Securityholders of any Series of Securities all money held by it
as Paying Agent.
SECTION
2.06
Securityholder
Lists.
The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA Section
312(a). If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least 15 days before each interest payment date and at
such other times as the Trustee may request in writing a list, in such form and
as of such date as the Trustee may reasonably require, of the names and
addresses of Securityholders of each Series of Securities.
SECTION
2.07
Transfer and
Exchange.
Where
Securities of a Series are presented to the Registrar or a co-registrar with a
request to register a transfer or to exchange them for an equal principal amount
of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are
met. To permit registrations of transfers and exchanges, the Trustee
shall authenticate Securities at the Registrar’s request. Any
exchange or transfer shall be without charge, except that the Company or the
Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge required by law; provided that this sentence shall not apply
to any exchange pursuant to Section 2.11, 2.08, 3.06 or 9.06.
Neither
the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning at
the opening of business 15 days immediately preceding the mailing of a notice of
redemption of Securities of that Series selected for redemption and ending at
the close of business on the day of such mailing, or (b) to register the
transfer of or exchange Securities of any Series selected, called or being
called for redemption as a whole or the portion being redeemed of any such
Securities selected, called or being called for redemption in part.
All
Securities issued upon any transfer or exchange of Securities shall be valid
obligations of the Company, evidencing the same debt and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such transfer
or exchange. Any Registrar appointed pursuant to Section 2.04 shall
provide to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or
exchange of Securities. Each Holder of a Security agrees to indemnify
the Company and the Trustee against any liability that may result from the
transfer, exchange or assignment of such Holder’s Security in violation of any
provision of this Indenture and/or applicable U.S. federal or state securities
law.
SECTION
2.08
Mutilated, Destroyed, Lost
and Stolen Securities.
If any
mutilated Security is surrendered to the Registrar, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same Series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding.
If there
shall be delivered to the Company and the Registrar (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 Registrar that such Security has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
In case
any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a
new Security, pay such Security.
Upon the
issuance of any new Security under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.
Every new
Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of that Series duly issued hereunder.
The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities.
SECTION
2.09
Outstanding
Securities.
The
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not
outstanding.
If a
Security is replaced pursuant to Section 2.08, it ceases to be outstanding until
the Trustee receives proof satisfactory to it that the replaced Security is held
by a bona fide purchaser.
If the
Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
thereof) holds on the Maturity of Securities of a Series money sufficient to pay
such Securities payable on that date, then on and after that date such
Securities of the Series cease to be outstanding and interest on them ceases to
accrue.
A
Security does not cease to be outstanding because the Company or an Affiliate
holds the Security.
In
determining whether the Holders of the requisite principal amount of outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, the principal amount of a Discount Security that
shall be deemed to be outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 6.02.
SECTION
2.10
Treasury
Securities.
In
determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver Securities of a Series owned by the Company or an
Affiliate shall be disregarded, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver only Securities of a Series
that a Responsible Officer of the Trustee actually knows are so owned shall be
so disregarded.
SECTION
2.11
Temporary
Securities.
Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary securities upon a Company Order (“Temporary
Securities”). Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee upon written request shall authenticate
definitive Securities of the same Series and date of maturity in exchange for
temporary Securities. Until so exchanged, temporary securities shall
have the same rights under this Indenture as the definitive
Securities.
SECTION
2.12
Cancellation.
The
Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the
Trustee or its agent any Securities surrendered to them for transfer, exchange,
payment or conversion. The Trustee and no one else shall cancel, in
accordance with its standard procedures, all Securities surrendered for
transfer, exchange, payment, conversion or cancellation and shall deliver the
cancelled Securities to the Company. No Security shall be
authenticated in exchange for any Security cancelled pursuant to this Section
2.12.
The
Company may, to the extent permitted by law, purchase Securities in the open
market or by tender offer at any price or by private agreement. Any
Securities purchased or otherwise acquired by the Company or any of its
Subsidiaries prior to the final maturity of such Securities may, to the extent
permitted by law, be reissued or resold or may, at the option of the Company, be
surrendered to the Trustee for cancellation. Any Securities
surrendered for cancellation may not be reissued or resold and shall be promptly
cancelled by the Trustee, and the Company may not hold or resell such Securities
or issue any new Securities to replace any such Securities.
SECTION
2.13
Defaulted
Interest.
If the
Company defaults in a payment of interest on a Series of Securities, it shall
pay defaulted interest, plus, to the extent permitted by law, any interest
payable on the defaulted interest at the Default Rate, to the persons who are
Security holders of the Series on a subsequent special record
date. The Company shall fix the record date and payment
date. At least 10 days before the record date, the Company shall mail
to the Trustee and the Paying Agent and to each Securityholder of the Series a
notice that states the record date, the payment date and the amount of interest
to be paid. The Company may pay defaulted interest in any other
lawful manner.
SECTION
2.14
Global
Securities.
(a) A
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate
shall establish whether the Securities of a Series shall be issued in whole or
in part in the form of one or more Global Securities and the Depository for such
Global Security or Securities.
(b) i) Notwithstanding
any provisions to the contrary contained in Section 2.07and in addition thereto,
any Global Security shall be exchangeable pursuant to Section 2.07 for
Securities registered in the names of Holders other than the Depository for such
Security or its nominee only if (A) such Depository notifies the Company that it
is unwilling or unable to continue as Depository for such Global Security or if
at any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor
Depository within 90 days of such event, (B) the Company executes and delivers
to the Trustee an Officers’ Certificate to the effect that such Global Security
shall be so exchangeable or (C) an Event of Default with respect to the
Securities represented by such Global Security shall have happened and be
continuing.
(ii) Except
as provided in this Section 2.14(b), a Global Security may not be transferred
except as a whole by the Depository with respect to such Global Security to a
nominee of such Depository, by a nominee of such Depository to such Depository
or another nominee of such Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such a successor
Depository.
(iii) Securities
issued in exchange for a Global Security or any portion thereof shall be issued
in definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global Security or portion
thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depository shall designate and shall bear the
applicable legends provided for herein. Any Global Security to be
exchanged in whole shall be surrendered by the Depository to the Trustee, as
Registrar. With regard to any Global Security to be exchanged in
part, either such Global Security shall be so surrendered for exchange or, if
the Registrar is acting as custodian for the Depository or its nominee with
respect to such Global Security, the principal amount thereof shall be reduced
by an amount equal to the portion thereof to be so exchanged, by means of an
appropriate adjustment made on the records of the Trustee. Upon any
such surrender or adjustment, the Trustee shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depository or an
authorized representative thereof.
(iv) The
registered Holder may grant proxies and otherwise authorize any Person,
including participants in the Depository and persons that may hold interests
through participants in the Depository, to take any action which a Holder is
entitled to take under this Indenture or the Securities.
(v) In
the event of the occurrence of any of the events specified in 2.14(b)(i), the
Company will promptly make available to the Trustee a reasonable supply of
Certificated Securities in definitive, fully registered form, without interest
coupons. If (A) an event described in Section 2.14(b)(i)(A) or (B)
occurs and definitive Certificated Securities are not issued promptly to all
beneficial owners or (B) the Registrar receives from a beneficial owner
instructions to obtain definitive Certificated Securities due to an event
described in Section 2.14(b)(i)(C) and definitive Certificated Securities are
not issued promptly to any such beneficial owner, the Company expressly
acknowledges, with respect to the right of any Holder to pursue a remedy
pursuant to Section 6.07 hereof, the right of any beneficial owner of Securities
to pursue such remedy with respect to the portion of the Global Security that
represents such beneficial owner’s Securities as if such definitive certificated
Securities had been issued.
(vi) Notwithstanding
any provision to the contrary in this Indenture, so long as a Global Security
remains outstanding and is held by or on behalf of the Depository, transfers of
a Global Security, in whole or in part, or of any beneficial interest therein,
shall only be made in accordance with Section 2.07, this Section 2.14(b) and the
rules and procedures of the Depository for such Global Security to the extent
applicable to such transaction and as in effect from time to time.
(c) Any
Global Security issued 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 the Depository or a nominee of the
Depository. This Security is exchangeable for Securities registered
in the name of a person other than the Depository or its nominee only in the
limited circumstances described in the Indenture, and may not be transferred
except as a whole by the Depository to a nominee of the Depository, by a nominee
of the Depository to the Depository or another nominee of the Depository or by
the Depository or any such nominee to a successor Depository or a nominee of
such a successor Depository.”
(d) The
Depository, as a Holder, may appoint agents and otherwise authorize participants
to give or take any request, demand, authorization, direction, notice, consent,
waiver or other action which a Holder is entitled to give or take under the
Indenture.
(e) Notwithstanding
the other provisions of this Indenture, unless otherwise specified as
contemplated by Section 2.02, payment of the principal of and interest, if any,
on any Global Security shall be made to the Holder thereof at their registered
office.
(f) At
all times the Securities are held in book-entry form with a Depository, (i) the
Trustee may deal with such Depository as the authorized representative of the
Holders, (ii) the rights of the Holders shall be exercised only through the
Depository and shall be limited to those established by law and agreement
between the Holders and the Depository and/or direct participants of the
Depository, (iii) the Depository will make book-entry transfers among the direct
participants of the Depository and will receive and transmit distributions of
principal and interest on the Securities to such direct participants; and (iv)
the direct participants of the Depository shall have no rights under this
Indenture, or any supplement hereto, under or with respect to any of the
Securities held on their behalf by the Depository, and the Depository may be
treated by the Trustee and its agents, employees, officers and directors as the
absolute owner of the Securities for all purposes whatsoever.
SECTION
2.15
CUSIP
Numbers.
The
Company in issuing the Securities may use “CUSIP”, “CCN”, “ISIN” or other
identification numbers (if then generally in use), and, if so, the Trustee shall
use “CUSIP”, “CCN”, “ISIN” or such other identification numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other elements of identification printed on
the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers.
ARTICLE
III
REDEMPTION
SECTION
3.01
Notice to
Trustee.
The
Company may, with respect to any series of Securities, reserve the right to
redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at
such time and on such terms as provided for in such Securities. If a
Series of Securities is redeemable and the Company wants or is obligated to
redeem prior to the Stated Maturity thereof all or part of the Series of
Securities pursuant to the terms of such Securities, it shall notify the Trustee
and Registrar in writing of the redemption date and the principal amount of
Series of Securities to be redeemed. The Company shall give the
notice at least 30 days before the redemption date (or such shorter notice as
may be acceptable to the Trustee and Registrar).
SECTION
3.02
Selection of Securities to
be Redeemed.
Unless
otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, if less than all the
Securities of a Series are to be redeemed, the Registrar shall select the
Securities of the Series to be redeemed in accordance with its customary
procedures. The Registrar shall make the selection from Securities of
the Series outstanding not previously called for redemption. The
Registrar may select for redemption portions of the principal of Securities of
the Series that have denominations larger than $1,000. Securities of
the Series and portions of them it selects shall be in amounts of $1,000 or
whole multiples of $1,000 or, with respect to Securities of any Series issuable
in other denominations pursuant to Section 2.02(g), the minimum principal
denomination for each Series and integral multiples
thereof. Provisions of this Indenture that apply to Securities of a
Series called for redemption also apply to portions of Securities of that Series
called for redemption.
SECTION
3.03
Notice of
Redemption.
Unless
otherwise indicated for a particular Series by Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, at least 30 days but not more than
30 days before a redemption date, the Company shall mail a notice of redemption
by first-class mail to each Holder whose Securities are to be
redeemed.
The
notice shall identify the Securities of the Series to be redeemed and shall
state:
(a) the
redemption date;
(b) the
redemption price;
(c) the
name and address of the Paying Agent;
(d) that
Securities of the Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;
(e) that
interest on Securities of the Series called for redemption ceases to accrue on
and after the redemption date; and
(f) any
other information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.
At the
Company’s written request, the Trustee shall distribute the notice of redemption
prepared by the Company in the Company’s name and at its expense.
SECTION
3.04
Effect of Notice of
Redemption.
Once
notice of redemption is mailed or published as provided in Section 3.03,
Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. A notice of redemption
may not be conditional. Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price plus accrued interest to the
redemption date.
SECTION
3.05
Deposit of Redemption
Price.
On or
before the redemption date, the Company shall deposit with the Paying Agent
money sufficient to pay the redemption price of and accrued interest, if any, on
all Securities to be redeemed on that date.
SECTION
3.06
Securities Redeemed in
Part.
Upon
surrender of a Security that is redeemed in part, the Trustee shall authenticate
for the Holder a new Security of the same Series and the same maturity equal in
principal amount to the unredeemed portion of the Security
surrendered.
ARTICLE
IV
COVENANTS
SECTION
4.01
Payment of Principal 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 interest,
if any, on the Securities of that Series in accordance with the terms of such
Securities and this Indenture.
Unless
otherwise provided under the terms of a particular Series of
Securities:
(a) an
installment of principal or interest shall be considered paid on the date it is
due if the Paying Agent (other than the Company) holds by [4:00] [p].m., New
York City time, on that date money, deposited by the Company or an Affiliate
thereof, sufficient to pay such installment. The Company shall (in
immediately available funds), to the fullest extent permitted by law, pay
interest on overdue principal and overdue installments of interest at the rate
borne by the Securities per annum; and
(b) payment
of the principal of and interest on the Securities shall be made at the office
or agency of the Company maintained for that purpose in the Borough of
Manhattan, City and State of New York (which shall initially be
[_____] in the Borough of Manhattan, City and State of New York , the Paying
Agent) in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts;
provided, however
, that at
the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address appears in the register;
provided, further
, that
a Holder with an aggregate principal amount in excess of $[1,000,000] will be
paid by wire transfer in immediately available funds at the election of such
Holder if such Holder has provided wire transfer instructions to the Company at
least five Business Days prior to the payment date.
SECTION
4.02
SEC
Reports.
So long
as any Securities are outstanding, the Company shall (i) file with the SEC
within the time periods prescribed by its rules and regulations and (ii) furnish
to the Trustee and the Holders of the Securities within 30 days after the date
on which the Company would be required to file the same with the SEC pursuant to
its rules and regulations (giving effect to any grace period provided by Rule
12b-25 under the Exchange Act), all quarterly and annual financial information
required to be furnished or filed with the SEC pursuant to Section 13 and
Section 15(d) of the Exchange Act and, with respect to the annual consolidated
financial statements only, a report thereon by the Company’s independent
auditors. The Company also shall comply with the other provisions of
TIA Section 314(a).
Delivery
of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively
on Officers’ Certificates). The Company shall not be required to file
any report or other information with the SEC if the SEC does not permit such
filing, although such reports shall be furnished to the
Trustee. Documents filed by the Company with the SEC via the SEC’s
EDGAR system (or any successor thereto) will be deemed furnished to the Trustee
and the Holders of the Securities as of the time such documents are filed via
EDGAR (or such successor).
SECTION
4.03
Compliance
Certificate.
The
Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, an officers certificate signed by two of the
Company’s officers stating that a review of the activities of the Company and
its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions hereof (or, if a Default or Event of Default
shall have occurred, describing all such Defaults or Events of Default of which
he or she may have knowledge in reasonable detail and the efforts to remedy the
same). For purposes of this Section 4.03, compliance shall be
determined without regard to any grace period or requirement of notice provided
pursuant to the terms of this Indenture.
The
Company shall deliver to the Trustee, within 30 days after the occurrence
thereof, written notice in the form of an Officers’ Certificate of any Event of
Default described in Section 6.01(e), (f), (g) or (h) and any event of which it
becomes aware that with the giving of notice or the lapse of time would become
such an Event of Default, its status and what action the Company is taking or
proposes to take with respect thereto. For the avoidance of doubt, a
breach of a covenant under an Instrument that is not a payment default and that
has not given rise to a right of acceleration under such Instrument shall not
trigger the requirement to provide notice under this paragraph.
SECTION
4.04
Stay, Extension and Usury
Laws.
The
Company covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture or the Securities; and the Company (to the extent
it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law and covenants that it will not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
has been enacted.
SECTION
4.05
Corporate
Existence.
Subject
to Article V, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other existence of each Subsidiary in accordance with
the respective organizational documents of each Subsidiary and the rights
(charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however, that the Company shall not be required to
preserve any such right, license or franchise, or the corporate, partnership or
other existence of any Subsidiary, if the Board of Directors shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries taken as a whole and that the loss
thereof is not adverse in any material respect to the Holders.
SECTION
4.06
Taxes.
The
Company shall, and shall cause each of its Subsidiaries to, pay prior to
delinquency all taxes, assessments and governmental levies, except as contested
in good faith and by appropriate proceedings.
SECTION
4.07
Additional Interest
Notice
.
In the
event that the Company is required to pay additional interest to Holders of
Securities pursuant to Section 6.02(b) hereof, the Company shall provide a
direction or order in the form of a written notice to the Trustee (and if the
Trustee is not the Paying Agent, the Paying Agent) of the Company’s obligation
to pay such additional interest no later than 10 Business Days prior to date on
which any such additional interest is scheduled to be paid. Such
notice shall set forth the amount of additional interest to be paid by the
Company on such payment date and direct the Trustee (or, if the Trustee is not
the Paying Agent, the Paying Agent) to make payment to the extent it receives
funds from the Company to do so. The Trustee shall not at any time be
under any duty or responsibility to any Holder to determine whether additional
interest is payable, or with respect to the nature, extent, or calculation of
the amount of additional interest owed, or with respect to the method employed
in such calculation of additional interest.
SECTION
4.08
Further Instruments and
Acts.
The
Company will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purposes of this Indenture.
ARTICLE
V
SUCCESSORS
SECTION
5.01
When Company May Merge,
Etc.
The
Company shall not consolidate with, enter into a binding share exchange, or
merge into any other Person in a transaction in which it is not the surviving
entity, or sell, assign, convey, transfer or lease or otherwise dispose of all
or substantially all of its properties and assets to any Person (a “successor
person”), unless:
(a) the
successor person (if any) is a corporation, partnership, trust or other entity
organized and validly existing under the laws of the Cayman Islands, the United
States, any state of the United States or the District of Columbia and expressly
assumes by a supplemental indenture executed and delivered to the Trustee, in
form satisfactory to the Trustee, the due and punctual payment of the principal
of, and any interest on, all Securities and the performance or observance of
every covenant of this Indenture on the part of the Company to be performed or
observed;
(b) immediately
after giving effect to the transaction, no Default or Event of Default, shall
have occurred and be continuing; and
(c) the
Company shall have delivered to the Trustee, prior to the consummation of the
proposed transaction, an Officers’ Certificate to the foregoing effect and an
Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.
SECTION
5.02
Successor Corporation
Substituted.
Upon any
consolidation or merger, or any sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Company in accordance with Section
5.01, the successor person formed by such consolidation or into or with which
the Company is merged or to which such sale, lease, conveyance or other
disposition 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 has been named as the Company herein; provided,
however, that the predecessor company in the case of a sale, lease, conveyance
or other disposition of all or substantially all of the assets of the Company
shall not be released from the obligation to pay the principal of and interest,
if any, on the Securities.
ARTICLE
VI
DEFAULTS
AND REMEDIES
SECTION
6.01
Events of
Default.
“Event of
Default,” wherever used herein with respect to securities of any Series, means
any one of the following events, unless in the establishing Board Resolution,
supplemental indenture or Officers’ Certificate, it is provided that such Series
shall not have the benefit of said Event of Default:
(a) default
in the payment of any interest on 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
(b) default
in the payment of any principal of any Security of that Series at its Maturity;
or
(c) default
in the deposit of any sinking fund payment, when and as due in respect of any
Security of that Series; or
(d) the
Company fails to perform or comply with any of its other covenants or agreements
contained in the Securities or in this Indenture (other than a covenant or
agreement a default in whose performance or whose breach is specifically dealt
with in clauses (a), (b) or (c) of this Section 6.01) and the default continues
for 60 days after notice is given as specified below;
(e) any
indebtedness under any bond, debenture, note or other evidence of indebtedness
for money borrowed by the Company or any Subsidiary or under any mortgage,
indenture or instrument under which there may be issued or by which there may be
secured or evidenced any indebtedness for money borrowed by, or any other
payment obligation of, the Company or any Subsidiary (an “Instrument”) with a
principal amount then, individually or in the aggregate, outstanding in excess
of $[__], whether such indebtedness now exists or shall hereafter be created, is
not paid at Maturity or when otherwise due or is accelerated, and such
indebtedness is not discharged, or such default in payment or acceleration is
not cured or rescinded, within a period of 30 days after there shall have been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the outstanding Securities of that Series a written notice specifying
such default and requiring the Company to cause such indebtedness to be
discharged or cause such default to be cured or waived or such acceleration to
be rescinded or annulled and stating that such notice is a “Notice of Default”
hereunder. A payment obligation (other than indebtedness under any
bond, debenture, note or other evidence of indebtedness for money borrowed by
the Company or any Subsidiary or under any mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced
any indebtedness for money borrowed by the Company or any Subsidiary) shall not
be deemed to have matured, come due, or been accelerated to the extent that it
is being disputed by the relevant obligor or obligors in good
faith. For the avoidance of doubt, the Maturity of an Instrument is
the Maturity as set forth in that Instrument, as it may be amended from time to
time in accordance with the terms of that Instrument;
(f) the
Company or any Subsidiary fails to pay one or more final and non-appealable
judgments entered by a court or courts of competent jurisdiction, the aggregate
uninsured or unbonded portion of which is in excess of $[__], if the judgments
are not paid, discharged, waived or stayed within 90 days;
(g) the
Company or any Subsidiary of the Company, pursuant to or within the meaning of
any Bankruptcy Law:
(i) commences
a voluntary case or proceeding;
(ii) consents
to the entry of an order for relief against it in an involuntary case or
proceeding;
(iii) consents
to the appointment of a Custodian of it or for all or substantially all of its
property; or
(iv) makes
a general assignment for the benefit of its creditors; or
(v) or
generally is unable to pay its debts as the same become due; or
(h) a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:
(i) is
for relief against the Company or any of its Subsidiaries in an involuntary case
or proceeding;
(ii) appoints
a Custodian of the Company or any of its Subsidiaries for all or substantially
all of the property of the Company or any such Subsidiary; or
(iii) orders
the liquidation of the Company or any of its Subsidiaries;
and the
case of each of clause (i), (ii) and (iii), the order or decree remains unstayed
and in effect for 90 consecutive days; or
(i) any
other Event of Default provided with respect to Securities of that Series, which
is specified in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate, in accordance with Section 2.02(i).
A default
under clause (d) above is not an Event of Default until the Trustee notifies the
Company, or the Holders of at least 25% in aggregate principal amount of the
Securities then outstanding notify the Company and the Trustee, in writing of
the default, and the Company does not cure the default within 60 days after
receipt of such notice. The notice given pursuant to this Section
6.01 must specify the default, demand that it be remedied and state that the
notice is a “Notice of Default.” When any default under this Section
6.01 is cured, it ceases.
The
Trustee shall not be charged with knowledge of any Event of Default unless
written notice thereof shall have been given to a Trust Officer at the Corporate
Trust Office of the Trustee by the Company, a Paying Agent, any Holder or any
agent of any Holder.
SECTION
6.02
Acceleration of Maturity;
Rescission and Annulment.
(a) If
an Event of Default (other than an Event of Default specified in clause (g) or
(h) of Section 6.01) occurs and is continuing with respect to any Securities of
any Series, then in every such case, the Trustee may, by notice to the Company,
or the Holders of at least 25% in aggregate principal amount of the Securities
of that Series (or, if any Securities of that Series are Discount Securities,
such portion of the principal amount as may be specified in the terms of such
Securities) then outstanding may, by notice to the Company and the Trustee,
declare all unpaid principal of, and accrued and unpaid interest on to the date
of acceleration, the Securities of that Series then outstanding (if not then due
and payable) to be due and payable upon any such declaration, and the same shall
become and be immediately due and payable. If an Event of Default
specified in clause (g) or (h) of Section 6.01 occurs, all unpaid principal of
the Securities then outstanding, and all accrued and unpaid interest thereon to
the date of acceleration, shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder. The Holders of a majority in aggregate principal amount of
the Securities of that Series then outstanding by notice to the Trustee may
rescind an acceleration of such Securities of that Series and its consequences
if (a) all existing Events of Default, other than the nonpayment of the
principal of the Securities which has become due solely by such declaration of
acceleration, have been cured or waived; (b) to the extent the payment of such
interest is lawful, interest (calculated at the Default Rate) on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid; (c) the rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction; and (d) all payments due to the Trustee and any predecessor
Trustee under Section 7.07 have been made. No such rescission shall
affect any subsequent default or impair any right consequent
thereto.
(b) Notwithstanding
any of provision of this Article 6, at the election of the Company in its sole
discretion, the sole remedy under this Indenture for an Event of Default
relating to the failure to comply with Section 4.02, and for any failure to
comply with the requirements of Section 314(a)(1) of the TIA, will consist, for
the 180 days after the occurrence of such an Event of Default, exclusively of
the right to receive additional interest on the Securities at a rate equal to
0.50% per annum of the aggregate principal amount of the Securities then
outstanding up to, but not including, the 181st day thereafter (or, if
applicable, the earlier date on which the Event of Default relating to Section
4.02 is cured or waived). Any such additional interest will be
payable in the same manner and on the same dates as the stated interest payable
on the Securities. In no event shall additional interest accrue under
the terms of this Indenture at a rate in excess of 0.50% per annum, in the
aggregate, for any violation or default caused by the failure of the Company to
be current in respect of its Exchange Act reporting obligations. If
the Event of Default is continuing on the 181st day after an Event of Default
relating to a failure to comply with Section 4.02, the Securities will be
subject to acceleration as provided in this Section 6.02. The
provisions of this Section 6.02(b) will not affect the rights of Holders in the
event of the occurrence of any other Events of Default.
In order
to elect to pay additional interest as the sole remedy during the first 180 days
after the occurrence of an Event of Default relating to the failure to comply
with Section 4.02 in accordance with the immediately preceding paragraph, the
Company shall notify all Holders and the Trustee and Paying Agent of such
election on or before the close of business on the fifth Business Day after the
date on which such Event of Default otherwise would occur. Upon a
failure by the Company to timely give such notice or pay additional interest,
the Securities will be immediately subject to acceleration as otherwise provided
in this Section 6.02.
SECTION
6.03
Collection of Indebtedness
and Suits for Enforcement by Trustee.
If an
Event of Default with respect to any Securities of any Series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders of Securities of such Series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.
If an
Event of Default in the payment of principal, interest, if any, specified in
clause (a) or (b) of Section 6.01 occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company or another obligor on the Securities for the whole amount of principal,
and accrued interest remaining unpaid, if any, together with, to the extent that
payment of such interest is lawful, interest on overdue principal, on overdue
installments of interest, if any, in each case at the Default Rate, and 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.
SECTION
6.04
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 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 or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,
(a) to
file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Securities and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and of the Holders allowed
in such judicial proceeding, and
(b) to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07.
Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.
SECTION
6.05
Trustee May Enforce Claims
Without Possession of Securities.
All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been
recovered.
SECTION
6.06
Application of Money
Collected.
Any money
collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid: and
First
: To the payment of all
amounts due the Trustee under Section 7.07;
Second
: To the payment of the
amounts then due and unpaid for principal of and interest on the Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal and interest, respectively;
and
Third
: To the
Company.
SECTION
6.07
Limitation on
Suits.
No Holder
of any Security of any Series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder (except actions for
payment of overdue principal and interest), unless:
(a) such
Holder has previously given written notice to the Trustee of a continuing Event
of Default with respect to the Securities of that Series;
(b) 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;
(c) such
Holder or Holders have offered to the Trustee indemnity satisfactory to it
against the costs, expenses and liabilities to be incurred in compliance with
such request;
(d) the
Trustee for 90 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and
(e) no
direction inconsistent with such written request has been given to the Trustee
during such 90-day period by the Holders of a majority in principal amount of
the outstanding Securities of that Series; it being understood and intended that
no one or more of such Holders shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Indenture 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 such Holders.
SECTION
6.08
Unconditional Right of
Holders to Receive Principal and Interest.
Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal
of and interest, if any, on 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,
and such rights shall not be impaired without the consent of such
Holder.
SECTION
6.09
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
6.10
Rights and Remedies
Cumulative.
Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.08, 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
6.11
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 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
6.12
Control by
Holders.
The
Holders of a majority in principal amount of the outstanding Securities of any
Series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee, with respect to the Securities of such
Series, provided that
(a) such
direction shall not be in conflict with any rule of law or with this
Indenture,
(b) the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and
(c) subject
to the provisions of Section 6.01, the Trustee shall have the right to decline
to follow any such direction if the Trustee in good faith shall, by a
Responsible Officer of the Trustee, determine that the proceeding so directed
would involve the Trustee in personal liability or would be unduly prejudicial
to the rights of another Holder or the Trustee.
SECTION
6.13
Waiver of Past
Defaults.
Subject
to Section 9.02, the Holders of not less than a majority in principal amount of
the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such
Series and its consequences, except a Default in the payment of the principal of
or interest on any Security of such Series (provided, however, that the Holders
of a majority in principal amount of the outstanding Securities of any Series
may rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration). 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
6.14
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 any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 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 25% 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
VII
TRUSTEE
SECTION
7.01
Duties of
Trustee.
(a) 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 person would exercise or use under
the circumstances in the conduct of his own affairs.
(b) Except
during the continuance of an Event of Default:
(i) The
Trustee need perform only those duties that are specifically set
forth in this Indenture and no implied duties, covenants or obligations shall be
deemed to be imposed upon the Trustee.
(ii) 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 on their face to the requirements of this
Indenture.
(c) The
Trustee may not be relieved from liability for its own its own negligent action,
its own negligent failure to act or willful misconduct, except
that:
(i) This
paragraph does not limit the effect of paragraph (b) of Section 7.01
herein.
(ii) The
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer.
(iii) 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.
(d) Every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraph (a), (b) and (c) of this Section.
(e) The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives an indemnity satisfactory to it against any loss, liability or
expense.
(f) The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.
(g) No
provision of this Indenture shall require the Trustee to risk or expend its own
funds or otherwise incur liability, financial or otherwise, 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
indemnity satisfactory to it against such risk is not reasonably assured to
it.
(h) The
Paying Agent, the Registrar and any authenticating agent shall be entitled to
the same rights, indemnities, protections and immunities afforded to the
Trustee.
(i) The
Trustee shall have no duty to monitor the performance or compliance of the
Company with its obligations hereunder or any under supplement hereto, nor shall
it have any liability in connection with the malfeasance or nonfeasance by the
Company. The Trustee shall have no liability in connection with
compliance by the Company with statutory or regulatory requirements related to
this Indenture, any supplement or any Securities issued pursuant hereto or
thereto.
SECTION
7.02
Rights of
Trustee.
(a) The
Trustee may conclusively rely on and shall be fully protected in acting or
refraining from acting as a result of its reasonable belief that any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, direction, approval or other paper or document was genuine and had been
signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it sees fit.
(b) Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel or both. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officers’ Certificate or Opinion of Counsel.
(c) The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of, or for the supervision of, any agent appointed with due
care. No Depository shall be deemed an agent of the Trustee and the
Trustee shall not be responsible for any act or omission by any
Depository.
(d) The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or
powers.
(e) The
Trustee may consult with counsel of its selection and the advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.
(f) The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by or pursuant to this Indenture at the request, order or direction
of any of the Holders of Securities, unless such Holders shall have offered to
the Trustee reasonable security or indemnity satisfactory to it against the
costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction.
SECTION
7.03
Individual Rights of
Trustee.
The
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with the Company or an Affiliate
with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to
Sections 7.10 and 7.11.
SECTION
7.04
Trustee’s
Disclaimer.
The
Trustee makes no representation as to the validity or adequacy of this Indenture
or the Securities and the recitals contained herein and in the Securities shall
be taken as statements of the Company and not of the Trustee, and the Trustee
has no responsibility for such recitals. The Trustee shall not be accountable
for the Company’s use or application of the proceeds from the Securities or for
monies paid over to the Company pursuant to this Indenture, and it shall not be
responsible for any statement in the Securities other than its
authentication.
SECTION
7.05
Notice of
Defaults.
If a
Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if a Responsible Officer of the Trustee has
knowledge or receives written notice of such event, the Trustee shall mail to
each Securityholder of the Securities of that Series, notice of a Default or
Event of Default within 90 days after it occurs or, if later, after a
Responsible Officer of the Trustee has actual knowledge of such Default or Event
of Default. Except in the case of a Default or Event of Default in
payment of principal of or interest on any Security of any Series, including any
additional interest that may become payable pursuant to Section 6.02(b), the
Trustee may withhold the notice so long as the Trustee in good faith determines
that withholding the notice is in the interests of Securityholders of that
Series.
SECTION
7.06
Reports by Trustee to
Holders.
Within 60
days after [__] in each year, the Trustee shall transmit by mail to all
Securityholders, as their names and addresses appear on the register kept by the
Registrar, a brief report dated as of such [__], in accordance with, and to the
extent required under, TIA Section 313.
A copy of
each report at the time of its mailing to Securityholders of any Series shall be
filed with the SEC and each stock exchange on which the Securities of that
Series are listed. The Company shall promptly notify the Trustee when
Securities of any Series are listed on any stock exchange.
SECTION
7.07
Compensation and
Indemnity.
The
Company shall pay to the Trustee from time to time such compensation for its
services as shall be agreed upon in writing. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company shall reimburse the Trustee upon request
for all reasonable out-of-pocket expenses, disbursements and advances incurred
by it. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents, counsel and other persons not regularly in its
employ.
The
Company shall indemnify, defend and hold harmless the Trustee and its officers,
directors, employees, representatives and agents, from and against and reimburse
the Trustee for any and all claims, expenses, obligations, liabilities, losses,
damages, injuries (to person, property, or natural resources), penalties, stamp
or other similar taxes, actions, suits, judgments, reasonable costs and expenses
(including reasonable attorney’s and agent’s fees and expenses) of whatever kind
or nature regardless of their merit, demanded, asserted or claimed against the
Trustee directly or indirectly relating to, or arising from, claims against the
Trustee by reason of its participation in the transactions contemplated hereby,
including without limitation all reasonable costs required to be associated with
claims for damages to persons or property, and reasonable attorneys’ and
consultants’ fees and expenses and court costs except to the extent caused by
the Trustee’s negligence or willful misconduct. The provisions of
this Section 7.07 shall survive the termination of this Agreement or the earlier
resignation or removal of the Trustee. The Company shall defend any
claim and the Trustee shall cooperate in the defense. The Trustee may
have separate counsel and the Company shall pay the reasonable fees and expenses
of such counsel. The Company need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld or
delayed. This indemnification shall apply to officers, directors,
employees, shareholders and agents of the Trustee.
The
Company need not reimburse any expense or indemnify against any loss liability
incurred by the Trustee or by any officer, director, employee, shareholder or
agent of the Trustee through negligence or bad faith.
To secure
the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series on all money or property held or collected
by the Trustee, except that held in trust to pay principal and interest on
particular Securities of that Series.
When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(f) or (g) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
Bankruptcy Law.
SECTION
7.08
Replacement of
Trustee.
A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.
The
Trustee may resign with respect to the Securities of one or more Series by so
notifying the Company. The Holders of a majority in principal amount
of the Securities of any Series may remove the Trustee with respect to that
Series by so notifying the Trustee and the Company. The Company may
remove the Trustee with respect to Securities of one or more Series
if:
(a) the
Trustee fails to comply with Section 7.10;
(b) the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered
with respect to the Trustee under any Bankruptcy Law;
(c) a
Custodian or public officer takes charge of the Trustee or its property;
or
(d) the
Trustee becomes incapable of acting.
If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the then outstanding Securities
may appoint a successor Trustee to replace the successor Trustee appointed by
the Company.
If a
successor Trustee with respect to the Securities of any one or more Series does
not take office within 30 days after the retiring Trustee resigns or is removed,
the retiring Trustee, the Company or the Holders of at least25% in principal
amount of the Securities of the applicable Series may petition any court of
competent jurisdiction for the appointment of a successor Trustee.
A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.07, and subject
to the payment of any and all amounts then due and owing to the retiring
Trustee, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and
duties of the Trustee with respect to each Series of Securities for which it is
acting as Trustee under this Indenture. A successor Trustee shall
mail a notice of its succession to each Securityholder of each such
Series. Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Company’s obligations under Section 7.07 hereof shall continue
for the benefit of the retiring trustee with respect to expenses and liabilities
incurred by it prior to such replacement.
SECTION
7.09
Successor Trustee by Merger,
Etc.
If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee
with the same effect as if the successor Trustee had been named as the Trustee
herein.
SECTION
7.10
Eligibility;
Disqualification.
This
Indenture shall always have a Trustee who satisfies the requirements of TIA
Section 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply
with TIA Section 310(b).
SECTION
7.11
Preferential Collection of
Claims Against Company.
The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TTA Section 311(a) to the extent
indicated.
ARTICLE
VIII
SATISFACTION
AND DISCHARGE; DEFEASANCE
SECTION
8.01
Satisfaction and Discharge
of Indenture.
This
Indenture shall upon Company Order cease to be of further effect (except as
hereinafter provided in this Section 8.01), and the Trustee, on the demand of
and at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when
(a) either
(i) all
Securities theretofore authenticated and delivered (other than Securities that
have been destroyed, lost or stolen and that have been replaced or paid) have
been delivered to the Trustee for cancellation; or
(ii) all
such Securities not theretofore delivered to the Trustee for
cancellation:
(1) have
become due and payable, or
(2) will
become due and payable at their Stated Maturity within [], or
(3) are
to be called for redemption within
[ ]
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,
or
(4) are
deemed paid and discharged pursuant to section 8.03, as applicable; and the
Company, in the case of (1), (2) or (3) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust an amount sufficient for the
purpose of paying and discharging the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal and
interest to the date of such deposit (in the case of Securities which have
become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;
(b) the
Company has paid or caused to be paid all other sums payable hereunder by the
Company; and
(c) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each meeting the applicable requirements of Sections 10.04 and 10.05
and each stating that all conditions precedent herein relating to the
satisfaction and discharge of this Indenture have been complied with and the
Trustee receives written demand from the Company to discharge.
Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company
to the Trustee under Section 7.07, and, if money shall have been deposited with
the Trustee pursuant to clause (a) of this Section, the provisions of Sections
2.04, 2.07, 2.08, 8.01 8.02 and 8.05 shall survive.
SECTION
8.02
Application of Trust Funds;
Indemnification.
(a) Subject
to the provisions of Section 8.05, all money deposited with the Trustee pursuant
to Section 8.01, all money and U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04 and all
money received by the Trustee in respect of U.S. Government Obligations or
Foreign Government Obligations deposited with the Trustee pursuant to Section
8.03 or 8.04, 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 interest for whose payment such money has been deposited with or
received by the Trustee or to make mandatory sinking fund payments or analogous
payments as contemplated by Sections 8.03 or 8.04.
(b) The
Company shall pay and shall indemnify the Trustee and the Agents against any
tax, fee or other charge imposed on or assessed against U.S. Government
Obligations or Foreign Government Obligations deposited pursuant to Sections
8.03 or 8.04 or the interest and principal received in respect of such
obligations other than any payable by or on behalf of Holders.
(c) The
Trustee shall, in accordance with the terms of this Indenture, deliver or pay to
the Company from time to time, upon Company Request and at the expense of the
Company any U.S. Government Obligations or Foreign Government Obligations or
money held by it pursuant to this Indenture as provided in Sections 8.03 or 8.04
which, in the opinion of a nationally recognized firm of independent certified
public accountants, expressed in a written certification thereof and delivered
to the Trustee together with such Company Request, are then in excess of the
amount thereof which then would have been required to be deposited for the
purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received. This provision shall
not authorize the sale by the Trustee of any U.S. Government Obligations or
Foreign Government Obligations held under this Indenture.
SECTION
8.03
Legal Defeasance of
Securities of any Series.
Unless
this Section 8.03 is otherwise specified, pursuant to Section 2.02(s), to be
inapplicable to Securities of any Series, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the outstanding Securities of
such Series on the [ ] day after the date of the deposit
referred to in subparagraph (d) hereof, and the provisions of this Indenture, as
it relates to such outstanding Securities of such Series, shall no longer be in
effect (and the Trustee, at the expense of the company, shall, at Company
Request, execute proper instruments acknowledging the same), except as
to:
(a) the
rights of Holders of Securities of such Series to receive, from the trust funds
described in subparagraph (d) hereof, (i) payment of the principal of and each
installment of principal of and interest on the outstanding Securities of such
Series on the Stated Maturity of such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities of such Series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities of
such Series;
(b) the
provisions of Sections 2.04, 2.07, 2.08, 2.14, 8.02, 8.03 and 8.05;
and
(c) the
rights, powers, trust and immunities of the Trustee hereunder; provided that,
the following conditions shall have been satisfied:
(d) the
Company shall have deposited or caused to be deposited irrevocably with the
Paying Agent as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for and dedicated solely to the
benefit of the Holders of such Securities in the case of Securities of such
Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest and
principal in respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on such
Paying Agent), not later than [ ] day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee and the Paying Agent, to
pay and discharge each installment of principal (including mandatory sinking
fund or analogous payments) of and interest, if any, on all the Securities of
such Series on the dates such installments of interest or principal are
due;
(e) such
deposit will 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;
(f) no
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the [ ] day after such date;
(g) the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that (i) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling, or (ii)
since the date of execution of this Indenture, there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
Securities of such Series will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit, defeasance and discharge and
will be subject to Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred;
(h) the
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by the Company with the intent of preferring the
Holders of the Securities of such Series over any other creditors of the company
or with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company;
(i) such
deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as
amended), or such trust shall be qualified under such Act or exempt from
regulation thereunder; and
(j) the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to the defeasance contemplated by this Section have been complied
with.
SECTION
8.04
Covenant
Defeasance.
Unless
this Section 8.04 is otherwise specified pursuant to Section 2.02(s) to be
inapplicable to Securities of any Series, on and after the
[ ] day after the date of the deposit referred to in
subparagraph (a) hereof, the Company may omit to comply with any term, provision
or condition set forth under Sections 4.02, 4.03, 4.04, 4.05, 4.06, and 5.01 as
well as any additional covenants contained in a supplemental indenture hereto
for a particular Series of Securities or a Board Resolution or an Officers’
Certificate delivered pursuant to Section 2.02(s) (and the failure to comply
with any such covenants shall not constitute a Default or Event of Default under
Section 6.01) and the occurrence of any event described in clause (e) of Section
6.01 shall not constitute a Default or Event of Default hereunder, with respect
to the Securities of such Series, provided that the following conditions shall
have been satisfied:
(a) With
reference to this Section 8.04, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.02(c)) with the Paying
Agent as trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities (i) in the
case of Securities of such Series denominated in Dollars, cash in Dollars (or
such other money or currencies as shall then be legal tender in the United
States) and/or U.S. Government Obligations, or (ii) in the case of Securities of
such Series denominated in a Foreign Currency (other than a composite currency),
money and/or Foreign Government Obligations, which through the payment of
interest and principal in respect thereof, in accordance with their terms, will
provide (and without reinvestment and assuming no tax liability will be imposed
on such Paying Agent), not later than [ ] day before the due
date of any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants expressed
in a written certification thereof delivered to the Paying Agent, to pay
principal and interest, if any, on and any mandatory sinking fund in respect of
the Securities of such Series on the dates such installments of interest or
principal are due;
(b) Such
deposit will 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;
(c) No
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the [ ] day after such date;
(d) the
company shall have delivered to the Trustee an Opinion of Counsel confirming
that Holders of the Securities of such Series will not recognize income, gain or
loss for federal income tax purposes as a result of such deposit and 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 deposit and
defeasance had not occurred;
(e) the
Company shall have delivered to the Trustee an Officers’ Certificate stating the
deposit was not made by the Company with the intent of preferring the Holders of
the Securities of such Series over any other creditors of the Company or with
the intent of defeating, hindering, delaying or defrauding any other creditors
of the Company; and
(f) The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the defeasance contemplated by this Section have been complied
with.
SECTION
8.05
Repayment to
Company.
The
Paying Agent shall pay to the Company upon request any money held by them for
the payment of principal and interest that remains unclaimed for two
years. After that, Securityholders entitled to the money must look to
the Company for payment as general creditors unless an applicable abandoned
property law designates another person and all liability of the Paying Agent
with respect to that money shall cease.
ARTICLE
IX
AMENDMENTS
AND WAIVERS
SECTION
9.01
Without Consent of
Holders.
The
Company and the Trustee may amend or supplement this Indenture or the Securities
of one or more Series without the consent of any Securityholder:
(a) to
cure any ambiguity, defect or inconsistency;
(b) to
comply with Article V;
(c) to
provide for uncertificated Securities in addition to or in place of certificated
Securities;
(d) to
make any change that does not adversely affect the rights of any
Securityholder;
(e) to
provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture;
(f) 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;
(g) to
comply with requirements of the TIA and any rules promulgated under the TIA;
and
(h) to
add to the covenants of the Company for the equal and ratable benefit of the
Holders or to surrender any right, power or option conferred upon the
Company.
Any
amendment or supplement made solely to conform the provisions of this Indenture
or the Securities of any Series to the description thereof contained in the
final prospectus relating to such Series will be deemed not to adversely affect
the rights of any Holder.
SECTION
9.02
With Consent of
Holders.
The
Company and the Trustee may enter into a supplemental indenture with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities of all Series affected by such supplemental indenture,
taken together as one class (including consents obtained in connection with a
tender offer or exchange offer for the Securities of such Series), for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Securityholders of each such
Series. Except as provided in Section 6.13, the Holders of at least a
majority in principal amount of the outstanding Securities of all Series
affected by such waiver by notice to the Trustee, taken together as one class
(including consents obtained in connection with a tender offer or exchange offer
for the Securities of such Series) may waive compliance by the Company with any
provision of this Indenture or the Securities with respect to such
Series.
It shall
not be necessary for the consent of the Holders of Securities under this Section
9.02 to approve the particular form of any proposed supplemental indenture or
waiver, but it shall be sufficient if such consent approves the substance
thereof. After a supplemental indenture or waiver under this section
becomes effective, the Company shall mail to the Holders of Securities affected
thereby a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or
any defect therein, shall not, however, in any way impair or affect the validity
of any such supplemental indenture or waiver.
SECTION
9.03
Limitations.
Without
the consent of each Securityholder affected, an amendment or waiver may
not:
(a) change
the amount of Securities whose Holders must consent to an amendment, supplement
or waiver, except to increase any such amount or to provide that certain
provisions of this Indenture cannot be modified, amended or waived without the
consent of the Holder of each outstanding Security affected
thereby;
(b) reduce
the amount of interest, or change the interest payment time, on any
Security;
(c) waive
a redemption payment or alter the redemption provisions (other than any
alteration that would not materially adversely affect the legal rights of any
Holder under this Indenture) or the price at which the Company is required to
offer to purchase the Securities;
(d) reduce
the principal or change the Stated Maturity of any Security or reduce the amount
of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;
(e) reduce
the principal amount payable of any Security upon Maturity;
(f) waive
a Default or Event of Default in the payment of the principal of or interest, if
any, on any Security (except a rescission of acceleration of the Securities of
any Series by the Holders of at least a majority in principal amount of the
outstanding Securities of such Series and a waiver of the payment default that
resulted from such acceleration);
(g) change
the place or currency of payment of principal of or interest, if any, on any
Security other than that stated in the Security;
(h) impair
the right of any Holder to receive payment of principal or, or interest on, the
Securities of such Holder on or after the due dates therefor;
(i) impair
the right to institute suit for the enforcement of any payment on, or with
respect to, any Security;
(j) make
any change in Sections 10.15 or 10.16;
(k) change
the ranking of the Securities; or
(l) make
any other change which is specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate as a limitation under this
Section.
SECTION
9.04
Compliance with Trust
Indenture Act.
Every
amendment to this Indenture or the Securities of one or more Series shall be set
forth in a supplemental indenture hereto that complies with the TIA as then in
effect.
SECTION
9.05
Revocation and Effect of
Consents.
Until an
amendment or waiver becomes effective, a consent to it by a Holder of a Security
is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent is not made on any
Security. However, any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of a Security if the Trustee receives
the notice of revocation before the date the amendment or waiver becomes
effective.
Any
amendment or waiver once effective shall bind every Securityholder of each
Series affected by such amendment or waiver unless it is of the type described
in any of clauses (a) through (g) of Section 9.03 in that case, the amendment or
waiver shall bind each Holder of a Security who has consented to it and every
subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder’s Security.
SECTION
9.06
Notation on or Exchange of
Securities.
If an
amendment, supplement or waiver changes the terms of a Security, the Trustee may
require the Holder of the Security to deliver it to the Trustee and the Trustee
may place an appropriate notation on the Security about the changed terms and
return it to the Holder. Alternatively, if the Company or the Trustee
so determines, the Company shall issue and the Trustee shall authenticate upon
request new Securities of that Series that reflect the changed
terms.
SECTION
9.07
Trustee
Protected.
In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 7.01) shall be fully protected in relying upon, an Opinion
of Counsel or an Officer’s Certificate, or both stating that the execution of
such supplemental indenture is authorized or permitted by this
Indenture. The Trustee shall sign all supplemental indentures, except
that the Trustee need not sign any supplemental indenture that adversely affects
its rights, duties or indemnities.
SECTION
9.08
Effect of Supplemental
Indenture.
Upon the
execution of any supplemental indenture under this Article, this Indenture shall
be modified in accordance therewith, and each such supplemental indenture shall
form part of this Indenture for all purposes with respect to the relevant
Series; and every Holder of Securities of the relevant Series theretofore or
thereafter authenticated and delivered hereunder shall be bound
thereby.
ARTICLE
X
MISCELLANEOUS
SECTION
10.01
Trust Indenture Act
Controls.
If any
provision of this Indenture limits, qualifies, or conflicts with another
provision which is required or deemed to be included in this Indenture by the
TIA, such required or deemed provision shall control.
SECTION
10.02
Notices.
Any
notice or communication by the Company, the Trustee, the Paying Agent or the
Registrar to another is duly given if in writing and delivered in person or
mailed by first-class mail:
if to the
Company:
China
Cord Blood Corporation
48th
Floor, Bank of China Tower
1 Garden
Road
Central,
Hong Kong S.A.R.
Attn:
Albert Chen, CFO
Fax:
+852-3605-8103
if to the
Trustee:
[ ]
Attn:
[ ]
Fax:
[ ]
if to the
Registrar or Paying Agent:
[ ]
Attn:
[ ]
Fax:
[ ]
with copy
to:
[ ]
Attn:
[ ]
Fax:
[ ]
The
Company, the Trustee and each Agent by notice to each other may designate
additional or different addresses for subsequent notices or
communications.
Any
notice or communication to a Securityholder shall be mailed by first-class mail
to his address shown on the register kept by the Registrar. Failure
to mail a notice or communication to a Securityholder of any Series or any
defect in it shall not affect its sufficiency with respect to other
Securityholders of that or any other Series.
If a
notice or communication is mailed or published in the manner provided above,
within the time prescribed, it is duly given, whether or not the Securityholder
receives it.
If the
company mails a notice or communication to Securityholders, it will mail a copy
to the Trustee and each Agent at the same time.
Whenever
a notice is required to be given by the Company, such notice may be given by the
Trustee or Registrar on the Company’s behalf (and the Company will make any
notice it is required to give to Holders available on its website).
SECTION
10.03
Communication by Holders
with Other Holders.
Securityholders
of any Series may communicate pursuant to TIA Section 312(b) with other
Securityholders of that Series or any other Series with respect to their rights
under this Indenture or the Securities of that Series or all
Series. The Company, the Trustee, the Registrar and anyone else shall
have the protection of TIA Section 312(c).
SECTION
10.04
Certificate and Opinion as
to Conditions Precedent.
Upon any
request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee upon
request:
(a) an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and
(b) an
Opinion of Counsel stating that, in the opinion of counsel, all such conditions
precedent (including any covenants, compliance with which constitutes a
condition precedent) have been complied with.
SECTION
10.05
Statements Required in
Certificate or Opinion.
Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
and shall include:
(a) a
statement that the person making such certificate or opinion has read such
covenant or condition;
(b) a
brief statement as to the nature and scope of the examination or
investigation upon which the statements or
opinions contained in such certificate or opinion are
based;
(c) a
statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been complied with;
and
(d) a
statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with.
provided, however
, that with
respect to matters of fact an Opinion of Counsel may rely on an Officers’
Certificate or certificates of public officials.
SECTION
10.06
Record Date for Vote or
Consent of Holders.
The
Company (or, in the event deposits have been made pursuant to Section 11.02, the
Trustee) may set a record date for purposes of determining the identity of
Holders entitled to vote or consent to any action by vote or consent authorized
or permitted under this Indenture, which record date shall not be more than 90
days prior to the date of the commencement of solicitation of such
action. Notwithstanding the provisions of Section 9.05, if a record
date is fixed, those persons who were Holders of Securities at the close of
business on such record date (or their duly designated proxies), and only those
persons, shall be entitled to take such action by vote or consent or to revoke
any vote or consent previously given, whether or not such persons continue to be
Holders after such record date.
SECTION
10.07
Rules by Trustee and
Agents.
The
Trustee may make reasonable rules for action by or a meeting of Securityholders
of one or more Series. Any Agent may make reasonable rules and set
reasonable requirements for its functions.
SECTION
10.08
Legal
Holidays.
Unless
otherwise provided by Board Resolution, Officers’ Certificate or supplemental
indenture for a particular Series, a “Legal Holiday” is any day that is not a
Business Day. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening
period.
SECTION
10.09
No Recourse Against
Others.
A
director, officer, employee or stockholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder by accepting a
Security waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the
Securities.
SECTION
10.10
Counterparts.
This
Indenture may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.
SECTION
10.11
Governing Laws and
Submission to Jurisdiction.
THIS
INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK EXCLUDING ANY RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF
ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.
The
Company agrees that any legal suit, action or proceeding arising out of or based
upon this Indenture may be instituted in any federal or state court sitting in
New York City, and, to the fullest extent permitted by law, waives any objection
which it may now or hereafter have to the laying of venue of any such
proceeding, and irrevocably submits to the non-exclusive jurisdiction of such
court in any suit, action or proceeding. The Company, as long as any
Securities remain outstanding or the parties hereto have any obligation under
this Indenture, shall have an authorized agent in the United States upon whom
process may be served in any such legal action or proceeding. Service of process
upon such agent and written notice of such service mailed or delivered to it
shall to the extent permitted by law be deemed in every respect effective
service of process upon it in any such legal action or proceeding and, if it
fails to maintain such agent, any such process or summons may be served by
mailing a copy thereof by registered mail, or a form of mail substantially
equivalent thereto, addressed to it at its address as provided for notices
hereunder. The Company hereby appoints Loeb & Loeb LLP, 345 Park Avenue, New
York, NY 10154, as its agent for such purposes, and covenants and agrees that
service of process in any legal action or proceeding may be made upon it at such
office of such agent.
SECTION
10.12
No Adverse Interpretation of
Other Agreements.
This
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.
SECTION
10.13
Successors.
All
agreements of the Company in this Indenture and the Securities shall bind its
successor. All agreements of the Trustee in this Indenture shall bind
its successor.
SECTION
10.14
S
everability.
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
10.15
Table of Contents, Headings,
Etc.
The Table
of Contents, Cross Reference Table, and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.
SECTION
10.16
Judgment
Currency.
The
Company agrees, to the fullest extent that it may effectively do so under
applicable law, that (a) if for the purpose of obtaining judgment in any court
it is necessary to convert the sum due in respect of the principal of or
interest or other amount on 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 day on which final
unappealable judgment is entered, unless such day is not a New York Banking Day,
then, 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 New York Banking Day
preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such tender
or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of
the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or
a legal holiday in The City of New York on which banking institutions are
authorized or required by law, regulation or executive order to
close.
SECTION
10.17
Compliance with Applicable
Anti-Terrorism and Money Laundering Regulations.
In order
to comply with the laws, rules, regulations and executive orders in effect from
time to time applicable to banking institutions, including those relating to the
funding of terrorist activities and money laundering (“Applicable Law”), the
Trustee is required to obtain, verify and record certain information relating to
individuals and entities which maintain a business relationship with the
Trustee. Accordingly, each of the parties agree to provide to the
Trustee, upon its request from time to time such identifying information and
documentation as may be available for such party in order to enable the Trustee
to comply with the Applicable Law.
ARTICLE
XI
SINKING
FUNDS
SECTION
11.01
Applicability of
Article.
The
provisions of this Article shall be applicable to any sinking fund for the
retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this
Indenture.
The
minimum amount of any sinking fund payment provided for by the terms of the
Securities of any Series is herein referred to as a “mandatory sinking fund
payment” and any other amount provided for by the terms of Securities of such
Series is herein referred to as an “optional sinking fund payment.” If provided
for by the terms of Securities of any Series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section
11.02. Each sinking fund payment shall be applied to the redemption
of Securities of any Series as provided for by the terms of the securities of
such Series.
SECTION
11.02
Satisfaction of Sinking Fund
Payments with Securities.
The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of any Series to be made pursuant to the terms of such
Securities (1) deliver outstanding Securities of such Series to which such
sinking fund payment is applicable (other than any of such Securities previously
called for mandatory sinking fund redemption) and (2) apply as credit Securities
of such Series to which such sinking fund payment is applicable and which have
been redeemed either at the election of the Company pursuant to the terms of
such Series of Securities (except pursuant to any mandatory sinking fund) or
through the application of permitted optional sinking fund payments or other
optional redemptions pursuant to the terms of such Securities, provided that
such Securities have not been previously so credited. Such Securities
shall be received by the Registrar, together with an Officers’ Certificate with
respect thereto, not later than 45 days prior to the date on which the Registrar
begins the process of selecting Securities for redemption, and shall be credited
for such purpose by the Registrar at the price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly. If as a result of the
delivery or credit of Securities in lieu of cash payments pursuant to this
Section 11.02, the principal amount of Securities of such Series to be redeemed
in order to exhaust the aforesaid cash payment shall be less than $[], the
Registrar need not call Securities of such Series for redemption, except upon
receipt of a Company Order that such action be taken, and such cash payment
shall be held by the Paying Agent and applied to the next succeeding sinking
fund payment, provided, however, that the Paying Agent shall from time to time
upon receipt of a Company Order pay over and deliver to the Company any cash
payment so being held by the Paying Agent upon delivery by the Company to the
Registrar of Securities of that Series purchased by the Company having an unpaid
principal amount equal to the cash payment required to be released to the
Company.
SECTION
11.03
Redemption of Securities for
Sinking Fund.
Not less
than 45 days (unless otherwise indicated in the Board Resolution, supplemental
indenture hereto or Officers’ Certificate in respect of a particular Series of
Securities) prior to each sinking fund payment date for any Series of
Securities, the Company will deliver to the Trustee and the Paying Agent an
Officers’ Certificate specifying the amount of the next ensuing mandatory
sinking fund payment for that Series pursuant to the terms of that Series, the
portion thereof, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that Series pursuant to Section 11.02., and the optional amount,
if any, to be added in cash to the next ensuing mandatory sinking fund payment,
and the Company shall thereupon be obligated to pay the amount therein
specified. Not less than 30 days (unless otherwise indicated in the
Board Resolution, Officers’ Certificate or supplemental indenture in respect of
a particular Series of Securities) before each such sinking fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.02 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 3.03. Such notice having been duly
given, the redemption of such Securities shall stated in Sections 3.04, 3.05 and
3.06.
[The
remainder of this page is intentionally left blank]
IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed as of the day and year first above written.
CHINA
CORD BLOOD CORPORATION
By:
Name:
Its:
[ ]
as
Trustee
Name:
Its:
Name:
Its:
[ ]
as
Registrar and Paying Agent
Name:
Its:
Name:
Its:
Exhibit
4.8
CHINA
CORD BLOOD CORPORATION
FORM
OF
SUBORDINATED
DEBT SECURITIES INDENTURE
Dated as
of
[ ],
201[ ]
[ ]
Trustee
TABLE OF
CONTENTS
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PAGE
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ARTICLE
I DEFINITIONS AND INCORPORATION BY REFERENCE
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1
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SECTION
1.01
|
Definitions.
|
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|
1
|
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SECTION
1.02
|
Other
Definitions.
|
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|
5
|
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SECTION
1.03
|
Incorporation
by Reference of Trust Indenture Act.
|
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5
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SECTION
1.04
|
Rules
of Construction.
|
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5
|
|
ARTICLE
II THE SECURITIES
|
|
|
6
|
|
SECTION
2.01
|
Issuable
in Series.
|
|
|
6
|
|
SECTION
2.02
|
Establishment
of Terms of Series of Securities.
|
|
|
6
|
|
SECTION
2.03
|
Execution
and Authentication.
|
|
|
8
|
|
SECTION
2.04
|
Registrar
and Paying Agent.
|
|
|
9
|
|
SECTION
2.05
|
Paying
Agent to Hold Money in Trust.
|
|
|
9
|
|
SECTION
2.06
|
Securityholder
Lists.
|
|
|
9
|
|
SECTION
2.07
|
Transfer
and Exchange.
|
|
|
9
|
|
SECTION
2.08
|
Mutilated,
Destroyed, Lost and Stolen Securities.
|
|
|
10
|
|
SECTION
2.09
|
Outstanding
Securities.
|
|
|
10
|
|
SECTION
2.10
|
Treasury
Securities.
|
|
|
11
|
|
SECTION
2.11
|
Temporary
Securities.
|
|
|
11
|
|
SECTION
2.12
|
Cancellation.
|
|
|
11
|
|
SECTION
2.13
|
Defaulted
Interest.
|
|
|
12
|
|
SECTION
2.14
|
Global
Securities.
|
|
|
12
|
|
SECTION
2.15
|
CUSIP
Numbers.
|
|
|
13
|
|
ARTICLE
III REDEMPTION
|
|
|
13
|
|
SECTION
3.01
|
Notice
to Trustee.
|
|
|
13
|
|
SECTION
3.02
|
Selection
of Securities to be Redeemed.
|
|
|
14
|
|
SECTION
3.03
|
Notice
of Redemption.
|
|
|
14
|
|
SECTION
3.04
|
Effect
of Notice of Redemption.
|
|
|
14
|
|
SECTION
3.05
|
Deposit
of Redemption Price.
|
|
|
15
|
|
SECTION
3.06
|
Securities
Redeemed in Part.
|
|
|
15
|
|
ARTICLE
IV COVENANTS
|
|
|
15
|
|
SECTION
4.01
|
Payment
of Principal and Interest.
|
|
|
15
|
|
SECTION
4.02
|
SEC
Reports.
|
|
|
15
|
|
SECTION
4.03
|
Compliance
Certificate.
|
|
|
16
|
|
SECTION
4.04
|
Stay,
Extension and Usury Laws.
|
|
|
16
|
|
SECTION
4.05
|
Corporate
Existence.
|
|
|
16
|
|
SECTION
4.06
|
Taxes.
|
|
|
16
|
|
SECTION
4.07
|
Additional
Interest Notice.
|
|
|
17
|
|
SECTION
4.08
|
Further
Instruments and Acts.
|
|
|
17
|
|
ARTICLE
V SUCCESSORS
|
|
|
17
|
|
SECTION
5.01
|
When
Company May Merge, Etc.
|
|
|
17
|
|
SECTION
5.02
|
Successor
Corporation Substituted.
|
|
|
17
|
|
ARTICLE
VI DEFAULTS AND REMEDIES
|
|
|
18
|
|
SECTION
6.01
|
Events
of Default.
|
|
|
18
|
|
SECTION
6.02
|
Acceleration
of Maturity; Rescission and Annulment.
|
|
|
19
|
|
SECTION
6.03
|
Collection
of Indebtedness and Suits for Enforcement by Trustee.
|
|
|
20
|
|
SECTION
6.04
|
Trustee
May File Proofs of Claim.
|
|
|
20
|
|
SECTION
6.05
|
Trustee
May Enforce Claims Without Possession of Securities.
|
|
|
21
|
|
SECTION
6.06
|
Application
of Money Collected.
|
|
|
21
|
|
SECTION
6.07
|
Limitation
on Suits.
|
|
|
21
|
|
SECTION
6.08
|
Unconditional
Right of Holders to Receive Principal and Interest.
|
|
|
22
|
|
SECTION
6.09
|
Restoration
of Rights and Remedies.
|
|
|
22
|
|
|
|
|
|
PAGE
|
|
SECTION
6.10
|
Rights
and Remedies Cumulative.
|
|
|
22
|
|
SECTION
6.11
|
Delay
or Omission Not Waiver.
|
|
|
22
|
|
SECTION
6.12
|
Control
by Holders.
|
|
|
22
|
|
SECTION
6.13
|
Waiver
of Past Defaults.
|
|
|
23
|
|
SECTION
6.14
|
Undertaking
for Costs.
|
|
|
23
|
|
ARTICLE
VII TRUSTEE
|
|
|
23
|
|
SECTION
7.01
|
Duties
of Trustee.
|
|
|
23
|
|
SECTION
7.02
|
Rights
of Trustee.
|
|
|
24
|
|
SECTION
7.03
|
Individual
Rights of Trustee.
|
|
|
25
|
|
SECTION
7.04
|
Trustee’s
Disclaimer.
|
|
|
25
|
|
SECTION
7.05
|
Notice
of Defaults.
|
|
|
25
|
|
SECTION
7.06
|
Reports
by Trustee to Holders.
|
|
|
25
|
|
SECTION
7.07
|
Compensation
and Indemnity.
|
|
|
25
|
|
SECTION
7.08
|
Replacement
of Trustee.
|
|
|
26
|
|
SECTION
7.09
|
Successor
Trustee by Merger, Etc.
|
|
|
27
|
|
SECTION
7.10
|
Eligibility;
Disqualification.
|
|
|
27
|
|
SECTION
7.11
|
Preferential
Collection of Claims Against Company.
|
|
|
27
|
|
ARTICLE
VIII SATISFACTION AND DISCHARGE; DEFEASANCE
|
|
|
27
|
|
SECTION
8.01
|
Satisfaction
and Discharge of Indenture.
|
|
|
27
|
|
SECTION
8.02
|
Application
of Trust Funds; Indemnification.
|
|
|
28
|
|
SECTION
8.03
|
Legal
Defeasance of Securities of any Series.
|
|
|
28
|
|
SECTION
8.04
|
Covenant
Defeasance.
|
|
|
30
|
|
SECTION
8.05
|
Repayment
to Company.
|
|
|
30
|
|
ARTICLE
IX AMENDMENTS AND WAIVERS
|
|
|
31
|
|
SECTION
9.01
|
Without
Consent of Holders.
|
|
|
31
|
|
SECTION
9.02
|
With
Consent of Holders.
|
|
|
31
|
|
SECTION
9.03
|
Limitations.
|
|
|
32
|
|
SECTION
9.04
|
Compliance
with Trust Indenture Act.
|
|
|
32
|
|
SECTION
9.05
|
Revocation
and Effect of Consents.
|
|
|
32
|
|
SECTION
9.06
|
Notation
on or Exchange of Securities.
|
|
|
33
|
|
SECTION
9.07
|
Trustee
Protected.
|
|
|
33
|
|
SECTION
9.08
|
Effect
of Supplemental Indenture.
|
|
|
33
|
|
ARTICLE
X MISCELLANEOUS
|
|
|
33
|
|
SECTION
10.01
|
Trust
Indenture Act Controls.
|
|
|
33
|
|
SECTION
10.02
|
Notices.
|
|
|
33
|
|
SECTION
10.03
|
Communication
by Holders with Other Holders.
|
|
|
34
|
|
SECTION
10.04
|
Certificate
and Opinion as to Conditions Precedent.
|
|
|
34
|
|
SECTION
10.05
|
Statements
Required in Certificate or Opinion.
|
|
|
35
|
|
SECTION
10.06
|
Record
Date for Vote or Consent of Holders.
|
|
|
35
|
|
SECTION
10.07
|
Rules
by Trustee and Agents.
|
|
|
35
|
|
SECTION
10.08
|
Legal
Holidays.
|
|
|
35
|
|
SECTION
10.09
|
No
Recourse Against Others.
|
|
|
35
|
|
SECTION
10.10
|
Counterparts.
|
|
|
36
|
|
SECTION
10.11
|
Governing
Laws and Submission to Jurisdiction.
|
|
|
36
|
|
SECTION
10.12
|
No
Adverse Interpretation of Other Agreements.
|
|
|
36
|
|
SECTION
10.13
|
Successors.
|
|
|
36
|
|
SECTION
10.14
|
Severability.
|
|
|
36
|
|
SECTION
10.15
|
Table
of Contents, Headings, Etc.
|
|
|
36
|
|
SECTION
10.16
|
Judgment
Currency.
|
|
|
36
|
|
SECTION
10.17
|
Compliance
with Applicable Anti-Terrorism and Money Laundering
Regulations.
|
|
|
37
|
|
|
|
|
PAGE
|
|
ARTICLE
XI SINKING FUNDS
|
|
|
37
|
|
SECTION
11.01
|
Applicability
of Article.
|
|
|
37
|
|
SECTION
11.02
|
Satisfaction
of Sinking Fund Payments with Securities.
|
|
|
37
|
|
SECTION
11.03
|
Redemption
of Securities for Sinking Fund.
|
|
|
38
|
|
ARTICLE
XII SUBORDINATION OF SECURITIES
|
|
|
38
|
|
SECTION
12.01
|
Agreement
of Subordination.
|
|
|
38
|
|
SECTION
12.02
|
Payments
to Securityholders.
|
|
|
38
|
|
SECTION
12.03
|
Subrogation
of Securities.
|
|
|
39
|
|
SECTION
12.04
|
Authorization
by Securityholders.
|
|
|
40
|
|
SECTION
12.05
|
Notice
to Trustee.
|
|
|
40
|
|
SECTION
12.06
|
Trustee’s
Relation to Senior Indebtedness.
|
|
|
41
|
|
SECTION
12.07
|
No
Impairment of Subordination.
|
|
|
41
|
|
SECTION
12.08
|
Rights
of Trustee.
|
|
|
41
|
|
This
Table of Contents does not constitute part of the Indenture and shall not have
any bearing on the interpretation of any of its terms or
provisions.
Reconciliation
and tie between Trust Indenture Act of 1939 and Indenture,
Dated as
of
[ ],
201[ ]
Section
310(a)(1)
|
7.10
|
(a)(2)
|
7.10
|
(a)(3)
|
Not
Applicable
|
(a)(4)
|
Not
Applicable
|
(a)(5)
|
7.10
|
(b)
|
7.10
|
(c)
|
Not
Applicable
|
Section
311(a)
|
7.11
|
(b)
|
7.11
|
(c)
|
Not
Applicable
|
Section
312(a)
|
2.06
|
(b)
|
10.03
|
(c)
|
10.03
|
Section
313(a)
|
7.06
|
(b)(1)
|
7.06
|
(b)(2)
|
7.06
|
(c)(1)
|
7.06
|
(d)
|
7.06
|
Section
314(a)
|
4.02,
10.05
|
(b)
|
Not
Applicable
|
(c)(1)
|
10.04
|
(c)(2)
|
10.04
|
(c)(3)
|
Not
Applicable
|
(d)
|
Not
Applicable
|
(e)
|
10.05
|
(f)
|
Not
Applicable
|
Section
315(a)
|
7.01
|
(b)
|
7.05
|
(c)
|
7.01
|
(d)
|
7.01
|
(e)
|
6.14
|
Section
316(a)(1)(A)
|
6.12
|
(a)(1)(B)
|
6.13
|
(a)(2)
|
Not
Applicable
|
(b)
|
6.13
|
(c)
|
10.06
|
Section
317(a)(1)
|
6.03
|
(a)(2)
|
6.04
|
(b)
|
2.05
|
Section
318(a)
|
10.01
|
Note: This
reconciliation and tie shall not, for any purpose, be deemed to be part of the
Indenture.
Indenture
dated as of
[ ],
201[ ] between China Cord Blood Corporation, a company organized under the laws
of the Cayman Islands (the “Company”) and [ ] (the “Trustee”).
Each
party agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Securities issued under this
Indenture.
ARTICLE
I
DEFINITIONS
AND INCORPORATION BY REFERENCE
SECTION
1.01
Definitions
.
“
Additional Amounts
” means any
additional amounts which are required hereby or by any Security, under
circumstances specified herein or therein, to be paid by the Company in respect
of certain taxes imposed on Holders specified therein and which 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 the purposes of this definition, “control” (including,
with correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to any person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities
or by agreement or otherwise.
“
Agent
” means any Registrar or
Paying Agent.
“
Bankruptcy Law
” means Title 11
of the United States Code (or any successor thereto) or any similar federal or
state law for the relief of debtors.
“
Board of Directors
” means the
board of directors 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 adopted by the Board of Directors or pursuant to
authorization by the Board of Directors and to be in full force and effect on
the date of the certificate and delivered to the Trustee.
“
Business Day
” means any day
other than a (x) Saturday, (y) Sunday or (z) day on which state or federally
chartered banking institutions in New York, New York are not required to be
open.
“
Capital Stock
” of any Person
means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in (however designated)
equity of such Person, but excluding any debt securities convertible into such
equity.
“
Certificated Securities
” means
Securities in the form of physical, certificated Securities in registered
form.
“
Company
” means the party named
as such above until a successor replaces it in accordance with the terms of this
Indenture and thereafter means the successor.
“
Company Order
” means a written
order signed in the name of the Company by two Officers, one of whom must be the
Company’s principal executive officer, principal financial officer or principal
accounting officer.
“
Company Request
” means a
written request signed in the name of the Company by its Chairman of the Board,
the Company’s principal executive officer, a President or a Vice President, and
by its Chief Financial Officer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.
“
Corporate Trust Office
” means
the office of the Trustee at which at any particular time its corporate trust
business shall be principally administered which office at the date of the
execution of this Indenture is [ ], Attention: [ ], or at such other
address as the Trustee may designate from time to time.
“
Currency Agreement
” means any
foreign exchange contract, currency swap agreement or other similar agreement
with respect to currency values.
“
Custodian
” means any receiver,
trustee, assignee, liquidator, sequestrator or similar official under any
Bankruptcy Law.
“
Default
” or “default” means
any event which is, or after notice or passage of time or both would be, an
Event of Default.
“
Default Rate
” means the
default rate of interest specified in the Securities.
“
Depository
” means, with
respect to the Securities of any Series issuable or issued in whole or in part
in the form of one or more Global Securities, the person designated as
Depository for such Series by the Company, which Depository shall be a clearing
agency registered under the Exchange Act; and if at any time there is more than
one such person, “Depository” as used with respect to the Securities of any
Series shall mean the Depository with respect to the Securities of such
Series.
“
Discount Security
” means any
Security that provides for an amount less than the stated principal amount
thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.02.
“
Dollars
” means the currency of
The United States of America.
“
Exchange Act
” means the
Securities Exchange Act of 1934, as amended.
“
Foreign Currency
” means any
currency or currency unit issued by a government other than the government of
The United States of America.
“
Foreign Government
Obligations
” means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that
issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged or (ii) obligations of a person controlled
or supervised by or acting as an agency or instrumentality of such government
the timely payment of which is unconditionally guaranteed as a full faith and
credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer
thereof.
“
Global Security
” or “
Global Securities
” means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.02 evidencing all or part of a Series of Securities, issued to the
Depository for such Series or its nominee, and registered in the name of such
Depository or nominee.
“
Holder
” or “
Securityholder
” means a person
in whose name a Security is registered.
“
Indenture
” means this
Indenture as amended and supplemented from time to time and shall include the
form and terms of particular Series of Securities established as contemplated
hereunder.
“
Interest
,” in respect of the
Securities, unless the context otherwise requires, refers to interest payable on
the Securities, including any additional interest that may become payable
pursuant to Section 6.02(b).
“
Interest Rate Agreement
” means
any interest rate swap agreement, interest rate cap agreement or other financial
agreement or arrangement with respect to exposure to interest
rates.
“
Maturity
,” when used with
respect to any Security or installment of principal thereof, means the date on
which the principal of such Security or such installment of principal becomes
due and payable as therein or herein provided, whether at the Stated Maturity or
by declaration of acceleration, call for redemption, notice of option to elect
repayment or otherwise.
“
Officer
” means the Chairman of
the Board, the Company’s principal executive officer, the President, any
Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.
“
Officers’ Certificate
” means a
certificate signed by two Officers, one of whom must be the Company’s principal
executive officer, principal financial officer or principal accounting
officer.
“
Opinion of Counsel
” means a
written opinion of legal counsel who is, and which opinion is, acceptable to the
Trustee and its counsel. Such legal counsel may be an employee of or
counsel to the Company or the Trustee.
“
Person
” means any individual,
corporation, partnership, joint venture, association, limited liability company,
joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.
“
Principal
” or “
principal
” of a Security means
the principal of the Security plus, when appropriate, the premium, if any, on,
and any Additional Amounts in respect of, the Security.
“
Responsible Officer
” means any
officer of the Trustee in its Corporate Trust Office and also means, any vice
president, managing director, director, associate, assistant vice president, or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also, with respect
to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with
a particular subject.
“
SEC
” means the Securities and
Exchange Commission.
“
Security
” or “
Securities
” means the
debentures, notes or other debt instruments of the Company of any Series
authenticated and delivered under this Indenture.
“
Senior Indebtedness
” of a
Person means the principal of, premium, if any, interest on, and any other
payment due pursuant to any of the following, whether outstanding at the date
hereof or hereafter incurred or created:
|
(a)
|
all
of the principal of (and premium, if any) and interest due on indebtedness
of that Person for money borrowed;
|
|
(b)
|
all
of the indebtedness of that Person evidenced by notes, debentures, bonds
or other securities sold by that Person for
money;
|
|
(c)
|
all
of the lease obligations which are capitalized on the books of that Person
in accordance with generally accepted accounting
principles;
|
|
(d)
|
all
obligations of such Person for the reimbursement of any obligor on any
letter of credit, banker’s acceptance or similar credit transaction (other
than obligations with respect to letters of credit securing obligations
(other than obligations described in (a) through (c) above) entered into
in the ordinary course of business of such Person to the extent such
letters of credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the third Business Day following
receipt by such Person of a demand for reimbursement following payment on
the letter of credit);
|
|
(e)
|
the
amount of all obligations of such Person with respect to Interest Rate
Agreements or Currency Agreements;
|
|
(f)
|
all
obligations of the type referred to in clauses (a) through (e) above of
other Persons and all dividends of other Persons for the payment of which,
in either case, such Person is responsible or liable, directly or
indirectly, as obligor, guarantor or otherwise, including by means of any
guarantee;
|
|
(g)
|
all
obligations of the type referred to in clauses (a) through (f) above of
other Persons secured by any lien on any property of such Person (whether
or not such obligation is assumed by such
Person);
|
|
(h)
|
all
renewals, extensions or refundings of indebtedness of the kinds described
in any of the preceding clauses (a), (b), (d), (e), (f) and (g) and all
renewals or extensions of leases of the kinds described in the preceding
clause (c) above;
|
unless
, in the case of any
particular indebtedness, lease, renewal, extension or refunding, the instrument
or lease creating or evidencing it or the assumption or guarantee relating to it
expressly provides that such indebtedness, lease, renewal, extension or
refunding is not superior in right of payment to the Securities, and
provided
,
however
that Senior
Indebtedness shall not include (i) Subordinated Indebtedness; and (ii)
indebtedness in respect of Securities or indebtedness of any
Subsidiary.
“
Series
” or “
Series of Securities
” means
each series of debentures, notes or other debt instruments of the Company
created pursuant to Sections 2.01 and 2.02 hereof.
“
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.
“
Subordinated Indebtedness
”
means any indebtedness which is expressly subordinated to the indebtedness
evidenced by Securities.
“
Subsidiary
” means, in respect
of any Person, any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital
Stock or other interests (including partnership interests) entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers, general partners or trustees thereof is at the time owned
or controlled, directly or indirectly, by (i) such Person; (ii) such Person and
one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of
such Person.
“
TIA
” means the Trust Indenture
Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of
this Indenture; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “TIA” means, to the extent required by any such
amendment, the Trust Indenture Act 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.
“
U.S. Government Obligations
”
means securities which are (i) direct obligations of The United States of
America for the payment of which its full faith and credit is pledged
or
(ii) obligations
of a person controlled or supervised by and acting as an agency or
instrumentality of The United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by The United
States of America, and which in the case of (i) and (ii) are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation evidenced by such
depository receipt.
SECTION
1.02
Other
Definitions
.
TERM
|
|
DEFINED
IN SECTION
|
“Applicable
Law”
|
|
10.18
|
“Event
of Default”
|
|
6.01
|
“Instrument”
|
|
6.01
|
“Journal”
|
|
10.16
|
“Judgment
Currency”
|
|
10.17
|
“Legal
Holiday”
|
|
10.08
|
“mandatory
sinking fund payment”
|
|
11.01
|
“Market
Exchange Rate”
|
|
10.16
|
“New
York Banking Day”
|
|
10.17
|
“optional
sinking fund payment”
|
|
11.01
|
“Paying
Agent”
|
|
2.04
|
“Registrar”
|
|
2.04
|
“Required
Currency”
|
|
10.17
|
“successor
person”
|
|
5.01
|
“Temporary
Securities”
|
|
2.11
|
SECTION
1.03
Incorporation by Reference
of Trust Indenture Act
.
Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. This Indenture
shall also include those provisions of the TIA required to be included herein by
the provisions of the Trust Indenture Reform Act of 1990. The
following TIA terms used in this Indenture have the following
meanings:
“
indenture securities
” means
the Securities.
“
indenture security holder
”
means a Securityholder.
“
indenture to be qualified
”
means this Indenture.
“
indenture trustee
” or
“institutional trustee” means the Trustee.
“
obligor
” on the indenture
securities means the Company and any successor obligor upon the
Securities.
All other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA and not
otherwise defined herein are used herein as so defined.
SECTION
1.04
Rules of
Construction
.
Unless
the context otherwise requires:
(a) a
term has the meaning assigned to it;
(b) an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;
(c) references
to “generally accepted accounting principles” shall mean generally accepted
accounting principles in effect as of the time when and for the period as to
which such accounting principles are to be applied;
(d) “or”
is not exclusive;
(e) words
in the singular include the plural, and in the plural include the
singular;
(f) provisions
apply to successive events and transactions;
(g) references
to agreements and other instruments include subsequent amendments
thereto;
(h) the
term “merger” includes a statutory share exchange, and the term “merged” has a
correlative meaning; and
(i) “herein,”
“hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision.
ARTICLE
II
THE
SECURITIES
SECTION
2.01
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. All Securities of a Series shall be identical
except as may be set forth in a Board Resolution, a supplemental indenture or an
Officers’ Certificate detailing the adoption of the terms thereof pursuant to
the authority granted under a Board Resolution. In the case of
Securities of a Series to be issued from time to time, the Board Resolution,
Officers’ Certificate or supplemental indenture may provide for the method by
which specified terms (such as interest rate, maturity date, record date or date
from which interest shall accrue) are to be determined. Securities
may differ between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the
Indenture.
SECTION
2.02
Establishment of Terms of
Series of Securities
.
At or
prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection (a), and
either as to such Securities within the Series or as to the Series generally in
the case of Subsections (b) through (t) by a Board Resolution, a supplemental
indenture or an Officers’ Certificate pursuant to authority granted under a
Board Resolution:
(a) the
title, designation, aggregate principal amount and authorized denominations of
the Securities of the Series;
(b) the
price or prices, (expressed as a percentage of the aggregate principal amount
thereof) at which the Securities of the Series will be issued;
(c) the
date or dates on which the principal of the Securities of the Series is
payable;
(d) the
rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any
commodity, commodity index, stock exchange index or financial index) at which
the Securities of the Series shall bear interest, if any, the date or dates from
which such interest, if any, shall commence and be payable and any regular
record date for the interest payable on any interest payment date;
(e) any
optional or mandatory sinking fund provisions or conversion or exchangeability
provisions upon which Securities of the Series shall be redeemed, purchased,
converted or exchanged;
(f) the
date, if any, after which and the price or prices at which the Securities of the
Series may be optionally redeemed or must be mandatorily redeemed and any other
terms and provisions of optional or mandatory provisions;
(g) if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be
issuable;
(h) if
other than the full principal amount, the portion of the principal amount of the
Securities of the Series that shall be payable upon declaration of acceleration
pursuant to Section 6.02 or provable in bankruptcy;
(i) any
addition to or change in the Events of Default which applies 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 6.02;
(j) the
currency or currencies, including composite currencies, in which payments of
principal of, premium or interest, if any, on the Securities of the Series will
be payable, if other than the currency of the United States of
America;
(k) if
payments of principal of, premium or interest, if any, on the Securities of the
Series will be payable, at the Company’s election or at the election of any
Holder, in a currency other than that in which the Securities of the Series are
stated to be payable, the period or periods within which, and the terms and
conditions upon which, the election may be made;
(l) if
payments of interest, if any, on the Securities of the Series will be payable,
at the Company’s election or at the election of any Holder, in cash or
additional securities, and the terms and conditions upon which the election may
be made;
(m) if
denominated in a currency or currencies other than the currency of the United
States of America, the equivalent price of the Securities of the Series in the
currency of the United States of America for purposes of determining the voting
rights of Holders of the Securities of the Series;
(n) if
the amount of payments of principal, premium or interest may be determined with
reference to an index, formula or other method based on a coin or currency other
than that in which the Securities of the Series are stated to be payable, the
manner in which the amounts will be determined;
(o) any
restrictive covenants or other material terms relating to the Securities of the
Series;
(p) whether
the Securities of the Series will be issued in the form of global securities or
certificates in registered form;
(q) any
terms with respect to subordination;
(r) any
listing on any securities exchange or quotation system; and
(s) additional
provisions, if any, related to defeasance and discharge of the offered debt
securities.
All
Securities of any one Series need not be issued at the same time and may be
issued from time to time, consistent with the terms of this Indenture, if so
provided by or pursuant to the Board Resolution, supplemental indenture or
Officers’ Certificate referred to above, and the authorized principal amount of
any Series may not be increased to provide for issuance of additional Securities
of such Series, unless otherwise provided in such Board Resolution, supplemental
Indenture or Officers’ Certificate.
SECTION
2.03
Execution and
Authentication
.
Two
Officers shall sign the Securities for the Company by manual or facsimile
signature.
If an
Officer whose signature is on a Security no longer holds that office at the time
the Security is authenticated, the Security shall nevertheless be
valid.
A
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent. The signature shall be conclusive
evidence that the Security has been authenticated under this
Indenture.
The
Trustee shall at any time, and from time to time, authenticate Securities for
original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the
Trustee of a Company Order. Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly confirmed in writing. 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.
The
aggregate principal amount of Securities of any Series outstanding at any time
may not exceed any limit upon the maximum principal amount for such Series set
forth in the Board Resolution, supplemental indenture hereto or Officers’
Certificate delivered pursuant to Section 2.02, except as provided in Section
2.08.
Prior to
the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.02) shall be fully protected in relying on: (a) the Board
Resolution, supplemental indenture hereto or Officers Certificate establishing
the form of the Securities of that Series or of Securities within that Series
and the terms of the Securities of that Series or of Securities within that
Series, (b) an Officers’ Certificate complying with Section 10.04, and (c) an
Opinion of Counsel complying with Section 10.04.
The
Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if a Responsible
Officer of the Trustee in good faith shall determine that such action would
expose the Trustee to personal liability to Holders of any then outstanding
Series of Securities.
The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to
deal with the Company or an Affiliate.
If any
successor that has replaced the Company in accordance with Article 5 has
executed an indenture supplemental hereto with the Trustee pursuant to Section
5.01, any of the Securities authenticated or delivered prior to such transaction
may, from time to time, at the request of such successor, be exchanged for other
Securities executed in the name of the such successor with such changes in
phraseology and form as may be appropriate, but otherwise identical to the
Securities surrendered for such exchange and of like principal amount; and the
Trustee, upon receipt of a Company Order of such successor, shall authenticate
and deliver Securities as specified in such order for the purpose of such
exchange. If Securities shall at any time be authenticated and
delivered in any new name of such successor pursuant to this provision of
Section 2.03 in exchange or substitution for or upon registration of transfer of
any Securities, such successor, at the option of the Holders but without expense
to them, shall provide for the exchange of all Securities then outstanding for
Securities authenticated and delivered in such new name.
SECTION
2.04
Registrar and Paying
Agent
.
The
Company shall maintain, with respect to each Series of Securities, at the place
or places specified with respect to such Series pursuant to Section 2.02, an
office or agency where Securities of such Series may be presented or surrendered
for payment (“Paying Agent”) and where Securities of such Series may be
surrendered for registration of transfer or exchange
(“Registrar”). The Registrar shall keep a register with respect to
each Series of Securities and to their transfer and exchange. The
Company will give prompt written notice to the Trustee of the name and address,
and any change in the name or address, of each Registrar and Paying
Agent. If at any time the Company shall fail to maintain any such
required Registrar or Paying Agent or shall fail to furnish the Trustee with the
name and address thereof, such presentations and surrenders 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 and
surrenders.
The
Company may also from time to time designate one or more co-registrars or
additional paying agents 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 obligations to maintain a Registrar or Paying Agent
in each place so specified pursuant to Section 2.02 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 name or
address of any such co-registrar or additional paying agent. The term
“Registrar” includes any co-registrar; and the term “Paying Agent” includes any
additional paying agent.
The
Company hereby appoints
[ ]
as the initial Registrar and Paying Agent for each Series unless another
Registrar or Paying Agent as the case may be, is appointed prior to the time
Securities of that Series are first issued. Each Registrar and Paying
Agent shall be entitled to all of the rights, protections, exculpations and
indemnities afforded to the Trustee in connection with its roles as Registrar
and Paying Agent.
SECTION
2.05
Paying Agent to Hold Money
in Trust
.
The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment. While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the
Trustee. The Company at any time may require a Paying Agent to pay
all money held by it to the Trustee. Upon payment over to the
Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have
no further liability for the money. If the Company or a Subsidiary
acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of Securityholders of any Series of Securities all money held by it
as Paying Agent.
SECTION
2.06
Securityholder
Lists
.
The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA Section
312(a). If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least 15 days before each interest payment date and at
such other times as the Trustee may request in writing a list, in such form and
as of such date as the Trustee may reasonably require, of the names and
addresses of Securityholders of each Series of Securities.
SECTION
2.07
Transfer and
Exchange
.
Where
Securities of a Series are presented to the Registrar or a co-registrar with a
request to register a transfer or to exchange them for an equal principal amount
of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are
met. To permit registrations of transfers and exchanges, the Trustee
shall authenticate Securities at the Registrar’s request. Any
exchange or transfer shall be without charge, except that the Company or the
Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge required by law; provided that this sentence shall not apply
to any exchange pursuant to Section 2.11, 2.08, 3.06 or 9.06.
Neither
the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning at
the opening of business 15 days immediately preceding the mailing of a notice of
redemption of Securities of that Series selected for redemption and ending at
the close of business on the day of such mailing, or (b) to register the
transfer of or exchange Securities of any Series selected, called or being
called for redemption as a whole or the portion being redeemed of any such
Securities selected, called or being called for redemption in part.
All
Securities issued upon any transfer or exchange of Securities shall be valid
obligations of the Company, evidencing the same debt and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such transfer
or exchange. Any Registrar appointed pursuant to Section 2.04 shall
provide to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or
exchange of Securities. Each Holder of a Security agrees to indemnify
the Company and the Trustee against any liability that may result from the
transfer, exchange or assignment of such Holder’s Security in violation of any
provision of this Indenture and/or applicable U.S. federal or state securities
law.
SECTION
2.08
Mutilated, Destroyed, Lost
and Stolen Securities
.
If any
mutilated Security is surrendered to the Registrar, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same Series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding.
If there
shall be delivered to the Company and the Registrar (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 Registrar that such Security has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
In case
any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a
new Security, pay such Security.
Upon the
issuance of any new Security under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.
Every new
Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of that Series duly issued hereunder.
The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities.
SECTION
2.09
Outstanding
Securities
.
The
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not
outstanding.
If a
Security is replaced pursuant to Section 2.08, it ceases to be outstanding until
the Trustee receives proof satisfactory to it that the replaced Security is held
by a bona fide purchaser. If the Paying Agent (other than the Company, a
Subsidiary or an Affiliate of any thereof) holds on the Maturity of Securities
of a Series money sufficient to pay such Securities payable on that date, then
on and after that date such Securities of the Series cease to be outstanding and
interest on them ceases to accrue.
A
Security does not cease to be outstanding because the Company or an Affiliate
holds the Security.
In
determining whether the Holders of the requisite principal amount of outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, the principal amount of a Discount Security that
shall be deemed to be outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 6.02.
SECTION
2.10
Treasury
Securities
.
In
determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver Securities of a Series owned by the Company or an
Affiliate shall be disregarded, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver only Securities of a Series
that a Responsible Officer of the Trustee actually knows are so owned shall be
so disregarded.
SECTION
2.11
Temporary
Securities
.
Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary securities upon a Company Order (“Temporary
Securities”). Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee upon written request shall authenticate
definitive Securities of the same Series and date of maturity in exchange for
temporary Securities. Until so exchanged, temporary securities shall
have the same rights under this Indenture as the definitive
Securities.
SECTION
2.12
Cancellation
.
The
Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the
Trustee or its agent any Securities surrendered to them for transfer, exchange,
payment or conversion. The Trustee and no one else shall cancel, in
accordance with its standard procedures, all Securities surrendered for
transfer, exchange, payment, conversion or cancellation and shall deliver the
cancelled Securities to the Company. No Security shall be
authenticated in exchange for any Security cancelled pursuant to this Section
2.12.
The
Company may, to the extent permitted by law, purchase Securities in the open
market or by tender offer at any price or by private agreement. Any
Securities purchased or otherwise acquired by the Company or any of its
Subsidiaries prior to the final maturity of such Securities may, to the extent
permitted by law, be reissued or resold or may, at the option of the Company, be
surrendered to the Trustee for cancellation. Any Securities
surrendered for cancellation may not be reissued or resold and shall be promptly
cancelled by the Trustee, and the Company may not hold or resell such Securities
or issue any new Securities to replace any such Securities.
SECTION
2.13
Defaulted
Interest
.
If the
Company defaults in a payment of interest on a Series of Securities, it shall
pay defaulted interest, plus, to the extent permitted by law, any interest
payable on the defaulted interest at the Default Rate, to the persons who are
Security holders of the Series on a subsequent special record
date. The Company shall fix the record date and payment
date. At least 10 days before the record date, the Company shall mail
to the Trustee and the Paying Agent and to each Securityholder of the Series a
notice that states the record date, the payment date and the amount of interest
to be paid. The Company may pay defaulted interest in any other
lawful manner.
SECTION
2.14
Global
Securities
.
(a) A
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate
shall establish whether the Securities of a Series shall be issued in whole or
in part in the form of one or more Global Securities and the Depository for such
Global Security or Securities.
(b) (i) Notwithstanding
any provisions to the contrary contained in Section 2.07 and in addition
thereto, any Global Security shall be exchangeable pursuant to Section 2.07 for
Securities registered in the names of Holders other than the Depository for such
Security or its nominee only if (A) such Depository notifies the Company that it
is unwilling or unable to continue as Depository for such Global Security or if
at any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor
Depository within 90 days of such event, (B) the Company executes and delivers
to the Trustee an Officers’ Certificate to the effect that such Global Security
shall be so exchangeable or (C) an Event of Default with respect to the
Securities represented by such Global Security shall have happened and be
continuing.
(ii) Except
as provided in this Section 2.14(b), a Global Security may not be transferred
except as a whole by the Depository with respect to such Global Security to a
nominee of such Depository, by a nominee of such Depository to such Depository
or another nominee of such Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such a successor
Depository.
(iii) Securities
issued in exchange for a Global Security or any portion thereof shall be issued
in definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global Security or portion
thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depository shall designate and shall bear the
applicable legends provided for herein. Any Global Security to be
exchanged in whole shall be surrendered by the Depository to the Trustee, as
Registrar. With regard to any Global Security to be exchanged in
part, either such Global Security shall be so surrendered for exchange or, if
the Registrar is acting as custodian for the Depository or its nominee with
respect to such Global Security, the principal amount thereof shall be reduced
by an amount equal to the portion thereof to be so exchanged, by means of an
appropriate adjustment made on the records of the Trustee. Upon any
such surrender or adjustment, the Trustee shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depository or an
authorized representative thereof.
(iv) The
registered Holder may grant proxies and otherwise authorize any Person,
including participants in the Depository and persons that may hold interests
through participants in the Depository, to take any action which a Holder is
entitled to take under this Indenture or the Securities.
(v) In
the event of the occurrence of any of the events specified in 2.14(b)(i), the
Company will promptly make available to the Trustee a reasonable supply of
Certificated Securities in definitive, fully registered form, without interest
coupons. If (A) an event described in Section 2.14(b)(i)(A) or (B)
occurs and definitive Certificated Securities are not issued promptly to all
beneficial owners or (B) the Registrar receives from a beneficial owner
instructions to obtain definitive Certificated Securities due to an event
described in Section 2.14(b)(i)(C) and definitive Certificated Securities are
not issued promptly to any such beneficial owner, the Company expressly
acknowledges, with respect to the right of any Holder to pursue a remedy
pursuant to Section 6.07 hereof, the right of any beneficial owner of Securities
to pursue such remedy with respect to the portion of the Global Security that
represents such beneficial owner’s Securities as if such definitive certificated
Securities had been issued.
(vi) Notwithstanding
any provision to the contrary in this Indenture, so long as a Global Security
remains outstanding and is held by or on behalf of the Depository, transfers of
a Global Security, in whole or in part, or of any beneficial interest therein,
shall only be made in accordance with Section 2.07, this Section 2.14(b) and the
rules and procedures of the Depository for such Global Security to the extent
applicable to such transaction and as in effect from time to time.
(c) Any
Global Security issued 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 the Depository or a nominee of the
Depository. This Security is exchangeable for Securities registered
in the name of a person other than the Depository or its nominee only in the
limited circumstances described in the Indenture, and may not be transferred
except as a whole by the Depository to a nominee of the Depository, by a nominee
of the Depository to the Depository or another nominee of the Depository or by
the Depository or any such nominee to a successor Depository or a nominee of
such a successor Depository.”
(d) The
Depository, as a Holder, may appoint agents and otherwise authorize participants
to give or take any request, demand, authorization, direction, notice, consent,
waiver or other action which a Holder is entitled to give or take under the
Indenture.
(e) Notwithstanding
the other provisions of this Indenture, unless otherwise specified as
contemplated by Section 2.02, payment of the principal of and interest, if any,
on any Global Security shall be made to the Holder thereof at their registered
office.
(f) At
all times the Securities are held in book-entry form with a Depository, (i) the
Trustee may deal with such Depository as the authorized representative of the
Holders, (ii) the rights of the Holders shall be exercised only through the
Depository and shall be limited to those established by law and agreement
between the Holders and the Depository and/or direct participants of the
Depository, (iii) the Depository will make book-entry transfers among the direct
participants of the Depository and will receive and transmit distributions of
principal and interest on the Securities to such direct participants; and (iv)
the direct participants of the Depository shall have no rights under this
Indenture, or any supplement hereto, under or with respect to any of the
Securities held on their behalf by the Depository, and the Depository may be
treated by the Trustee and its agents, employees, officers and directors as the
absolute owner of the Securities for all purposes whatsoever.
SECTION
2.15
CUSIP
Numbers
.
The
Company in issuing the Securities may use “CUSIP”, “CCN”, “ISIN” or other
identification numbers (if then generally in use), and, if so, the Trustee shall
use “CUSIP”, “CCN”, “ISIN” or such other identification numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other elements of identification printed on
the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers.
ARTICLE
III
REDEMPTION
SECTION
3.01
Notice to
Trustee
.
The
Company may, with respect to any series of Securities, reserve the right to
redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at
such time and on such terms as provided for in such Securities. If a
Series of Securities is redeemable and the Company wants or is obligated to
redeem prior to the Stated Maturity thereof all or part of the Series of
Securities pursuant to the terms of such Securities, it shall notify the Trustee
and Registrar in writing of the redemption date and the principal amount of
Series of Securities to be redeemed. The Company shall give the
notice at least 30 days before the redemption date (or such shorter notice as
may be acceptable to the Trustee and Registrar).
SECTION
3.02
Selection of Securities to
be Redeemed
.
Unless
otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, if less than all the
Securities of a Series are to be redeemed, the Registrar shall select the
Securities of the Series to be redeemed in accordance with its customary
procedures. The Registrar shall make the selection from Securities of
the Series outstanding not previously called for redemption. The
Registrar may select for redemption portions of the principal of Securities of
the Series that have denominations larger than $1,000. Securities of
the Series and portions of them it selects shall be in amounts of $1,000 or
whole multiples of $1,000 or, with respect to Securities of any Series issuable
in other denominations pursuant to Section 2.02(g), the minimum principal
denomination for each Series and integral multiples
thereof. Provisions of this Indenture that apply to Securities of a
Series called for redemption also apply to portions of Securities of that Series
called for redemption.
SECTION
3.03
Notice of
Redemption
.
Unless
otherwise indicated for a particular Series by Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, at least 30 days but not more than
30 days before a redemption date, the Company shall mail a notice of redemption
by first-class mail to each Holder whose Securities are to be
redeemed.
The
notice shall identify the Securities of the Series to be redeemed and shall
state:
(a) the
redemption date;
(b) the
redemption price;
(c) the
name and address of the Paying Agent;
(d) that
Securities of the Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;
(e) that
interest on Securities of the Series called for redemption ceases to accrue on
and after the redemption date; and
(f) any
other information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.
At the
Company’s written request, the Trustee shall distribute the notice of redemption
prepared by the Company in the Company’s name and at its expense.
SECTION
3.04
Effect of Notice of
Redemption
.
Once
notice of redemption is mailed or published as provided in Section 3.03,
Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. A notice of redemption
may not be conditional. Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price plus accrued interest to the
redemption date.
SECTION
3.05
Deposit of Redemption
Price
.
On or
before the redemption date, the Company shall deposit with the Paying Agent
money sufficient to pay the redemption price of and accrued interest, if any, on
all Securities to be redeemed on that date.
SECTION
3.06
Securities Redeemed in
Part
.
Upon
surrender of a Security that is redeemed in part, the Trustee shall authenticate
for the Holder a new Security of the same Series and the same maturity equal in
principal amount to the unredeemed portion of the Security
surrendered.
ARTICLE
IV
COVENANTS
SECTION
4.01
Payment of Principal 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 interest,
if any, on the Securities of that Series in accordance with the terms of such
Securities and this Indenture.
Unless
otherwise provided under the terms of a particular Series of
Securities:
(a) an
installment of principal or interest shall be considered paid on the date it is
due if the Paying Agent (other than the Company) holds by [4:00] [p].m., New
York City time, on that date money, deposited by the Company or an Affiliate
thereof, sufficient to pay such installment. The Company shall (in
immediately available funds), to the fullest extent permitted by law, pay
interest on overdue principal and overdue installments of interest at the rate
borne by the Securities per annum; and
(b) payment
of the principal of and interest on the Securities shall be made at the office
or agency of the Company maintained for that purpose in the Borough of
Manhattan, City and State of New York (which shall initially be [_____] in the
Borough of Manhattan, City and State of New York, the Paying Agent) in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts;
provided, however
, that at
the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address appears in the register;
provided, further
, that
a Holder with an aggregate principal amount in excess of $[1,000,000] will be
paid by wire transfer in immediately available funds at the election of such
Holder if such Holder has provided wire transfer instructions to the Company at
least five Business Days prior to the payment date.
SECTION
4.02
SEC
Reports
.
So long
as any Securities are outstanding, the Company shall (i) file with the SEC
within the time periods prescribed by its rules and regulations and (ii) furnish
to the Trustee and the Holders of the Securities within 30 days after the date
on which the Company would be required to file the same with the SEC pursuant to
its rules and regulations (giving effect to any grace period provided by Rule
12b-25 under the Exchange Act), all quarterly and annual financial information
required to be furnished or filed with the SEC pursuant to Section 13 and
Section 15(d) of the Exchange Act and, with respect to the annual consolidated
financial statements only, a report thereon by the Company’s independent
auditors. The Company also shall comply with the other provisions of
TIA Section 314(a).
Delivery
of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively
on Officers’ Certificates). The Company shall not be required to file
any report or other information with the SEC if the SEC does not permit such
filing, although such reports shall be furnished to the
Trustee. Documents filed by the Company with the SEC via the SEC’s
EDGAR system (or any successor thereto) will be deemed furnished to the Trustee
and the Holders of the Securities as of the time such documents are filed via
EDGAR (or such successor).
SECTION
4.03
Compliance
Certificate
.
The
Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, an officers certificate signed by two of the
Company’s officers stating that a review of the activities of the Company and
its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions hereof (or, if a Default or Event of Default
shall have occurred, describing all such Defaults or Events of Default of which
he or she may have knowledge in reasonable detail and the efforts to remedy the
same). For purposes of this Section 4.03, compliance shall be
determined without regard to any grace period or requirement of notice provided
pursuant to the terms of this Indenture.
The
Company shall deliver to the Trustee, within 30 days after the occurrence
thereof, written notice in the form of an Officers’ Certificate of any Event of
Default described in Section 6.01(e), (f), (g) or (h) and any event of which it
becomes aware that with the giving of notice or the lapse of time would become
such an Event of Default, its status and what action the Company is taking or
proposes to take with respect thereto. For the avoidance of doubt, a
breach of a covenant under an Instrument that is not a payment default and that
has not given rise to a right of acceleration under such Instrument shall not
trigger the requirement to provide notice under this paragraph.
SECTION
4.04
Stay, Extension and Usury
Laws
.
The
Company covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture or the Securities; and the Company (to the extent
it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law and covenants that it will not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
has been enacted.
SECTION
4.05
Corporate
Existence
.
Subject
to Article V, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other existence of each Subsidiary in accordance with
the respective organizational documents of each Subsidiary and the rights
(charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however, that the Company shall not be required to
preserve any such right, license or franchise, or the corporate, partnership or
other existence of any Subsidiary, if the Board of Directors shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries taken as a whole and that the loss
thereof is not adverse in any material respect to the Holders.
SECTION
4.06
Taxes
.
The
Company shall, and shall cause each of its Subsidiaries to, pay prior to
delinquency all taxes, assessments and governmental levies, except as contested
in good faith and by appropriate proceedings.
SECTION
4.07
Additional Interest
Notice
.
In the
event that the Company is required to pay additional interest to Holders of
Securities pursuant to Section 6.02(b) hereof, the Company shall provide a
direction or order in the form of a written notice to the Trustee (and if the
Trustee is not the Paying Agent, the Paying Agent) of the Company’s obligation
to pay such additional interest no later than 10 Business Days prior to date on
which any such additional interest is scheduled to be paid. Such
notice shall set forth the amount of additional interest to be paid by the
Company on such payment date and direct the Trustee (or, if the Trustee is not
the Paying Agent, the Paying Agent) to make payment to the extent it receives
funds from the Company to do so. The Trustee shall not at any time be
under any duty or responsibility to any Holder to determine whether additional
interest is payable, or with respect to the nature, extent, or calculation of
the amount of additional interest owed, or with respect to the method employed
in such calculation of additional interest.
SECTION
4.08
Further Instruments and
Acts
.
The
Company will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purposes of this Indenture.
ARTICLE
V
SUCCESSORS
SECTION
5.01
When Company May Merge,
Etc
.
The
Company shall not consolidate with, enter into a binding share exchange, or
merge into any other Person in a transaction in which it is not the surviving
entity, or sell, assign, convey, transfer or lease or otherwise dispose of all
or substantially all of its properties and assets to any Person (a “successor
person”), unless:
(a) the
successor person (if any) is a corporation, partnership, trust or other entity
organized and validly existing under the laws of the Cayman Islands, the United
States, any state of the United States or the District of Columbia and expressly
assumes by a supplemental indenture executed and delivered to the Trustee, in
form satisfactory to the Trustee, the due and punctual payment of the principal
of, and any interest on, all Securities and the performance or observance of
every covenant of this Indenture on the part of the Company to be performed or
observed;
(b) immediately
after giving effect to the transaction, no Default or Event of Default, shall
have occurred and be continuing; and
(c) the
Company shall have delivered to the Trustee, prior to the consummation of the
proposed transaction, an Officers’ Certificate to the foregoing effect and an
Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.
SECTION
5.02
Successor Corporation
Substituted
.
Upon any
consolidation or merger, or any sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Company in accordance with Section
5.01, the successor person formed by such consolidation or into or with which
the Company is merged or to which such sale, lease, conveyance or other
disposition 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 has been named as the Company herein; provided,
however, that the predecessor company in the case of a sale, lease, conveyance
or other disposition of all or substantially all of the assets of the Company
shall not be released from the obligation to pay the principal of and interest,
if any, on the Securities.
ARTICLE
VI
DEFAULTS
AND REMEDIES
SECTION
6.01
Events of
Default
.
“Event of
Default,” wherever used herein with respect to securities of any Series, means
any one of the following events, unless in the establishing Board Resolution,
supplemental indenture or Officers’ Certificate, it is provided that such Series
shall not have the benefit of said Event of Default:
(a) default
in the payment of any interest on 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
(b) default
in the payment of any principal of any Security of that Series at its Maturity;
or
(c) default
in the deposit of any sinking fund payment, when and as due in respect of any
Security of that Series; or
(d) the
Company fails to perform or comply with any of its other covenants or agreements
contained in the Securities or in this Indenture (other than a covenant or
agreement a default in whose performance or whose breach is specifically dealt
with in clauses (a), (b) or (c) of this Section 6.01) and the default continues
for 60 days after notice is given as specified below;
(e) any
indebtedness under any bond, debenture, note or other evidence of indebtedness
for money borrowed by the Company or any Subsidiary or under any mortgage,
indenture or instrument under which there may be issued or by which there may be
secured or evidenced any indebtedness for money borrowed by, or any other
payment obligation of, the Company or any Subsidiary (an “Instrument”) with a
principal amount then, individually or in the aggregate, outstanding in excess
of $[__], whether such indebtedness now exists or shall hereafter be created, is
not paid at Maturity or when otherwise due or is accelerated, and such
indebtedness is not discharged, or such default in payment or acceleration is
not cured or rescinded, within a period of 30 days after there shall have been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the outstanding Securities of that Series a written notice specifying
such default and requiring the Company to cause such indebtedness to be
discharged or cause such default to be cured or waived or such acceleration to
be rescinded or annulled and stating that such notice is a “Notice of Default”
hereunder. A payment obligation (other than indebtedness under any
bond, debenture, note or other evidence of indebtedness for money borrowed by
the Company or any Subsidiary or under any mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced
any indebtedness for money borrowed by the Company or any Subsidiary) shall not
be deemed to have matured, come due, or been accelerated to the extent that it
is being disputed by the relevant obligor or obligors in good
faith. For the avoidance of doubt, the Maturity of an Instrument is
the Maturity as set forth in that Instrument, as it may be amended from time to
time in accordance with the terms of that Instrument;
(f) the
Company or any Subsidiary fails to pay one or more final and non-appealable
judgments entered by a court or courts of competent jurisdiction, the aggregate
uninsured or unbonded portion of which is in excess of $[__], if the judgments
are not paid, discharged, waived or stayed within 90 days;
(g) the
Company or any Subsidiary of the Company, pursuant to or within the meaning of
any Bankruptcy Law:
(i) commences
a voluntary case or proceeding;
(ii) consents
to the entry of an order for relief against it in an involuntary case or
proceeding;
(iii) consents
to the appointment of a Custodian of it or for all or substantially all of its
property; or
(iv) makes
a general assignment for the benefit of its creditors; or
(v) or
generally is unable to pay its debts as the same become due; or
(h) a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:
(i) is
for relief against the Company or any of its Subsidiaries in an involuntary case
or proceeding;
(ii) appoints
a Custodian of the Company or any of its Subsidiaries for all or substantially
all of the property of the Company or any such Subsidiary; or
(iii) orders
the liquidation of the Company or any of its Subsidiaries;
and the
case of each of clause (i), (ii) and (iii), the order or decree remains unstayed
and in effect for 90 consecutive days; or
(i) any
other Event of Default provided with respect to Securities of that Series, which
is specified in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate, in accordance with Section 2.02(i).
A default
under clause (d) above is not an Event of Default until the Trustee notifies the
Company, or the Holders of at least 25% in aggregate principal amount of the
Securities then outstanding notify the Company and the Trustee, in writing of
the default, and the Company does not cure the default within 60 days after
receipt of such notice. The notice given pursuant to this Section
6.01 must specify the default, demand that it be remedied and state that the
notice is a “Notice of Default.” When any default under this Section
6.01 is cured, it ceases.
The
Trustee shall not be charged with knowledge of any Event of Default unless
written notice thereof shall have been given to a Trust Officer at the Corporate
Trust Office of the Trustee by the Company, a Paying Agent, any Holder or any
agent of any Holder.
SECTION
6.02
Acceleration of Maturity;
Rescission and Annulment
.
(a) If
an Event of Default (other than an Event of Default specified in clause (g) or
(h) of Section 6.01) occurs and is continuing with respect to any Securities of
any Series, then in every such case, the Trustee may, by notice to the Company,
or the Holders of at least 25% in aggregate principal amount of the Securities
of that Series (or, if any Securities of that Series are Discount Securities,
such portion of the principal amount as may be specified in the terms of such
Securities) then outstanding may, by notice to the Company and the Trustee,
declare all unpaid principal of, and accrued and unpaid interest on to the date
of acceleration, the Securities of that Series then outstanding (if not then due
and payable) to be due and payable upon any such declaration, and the same shall
become and be immediately due and payable. If an Event of Default
specified in clause (g) or (h) of Section 6.01 occurs, all unpaid principal of
the Securities then outstanding, and all accrued and unpaid interest thereon to
the date of acceleration, shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder. The Holders of a majority in aggregate principal amount of
the Securities of that Series then outstanding by notice to the Trustee may
rescind an acceleration of such Securities of that Series and its consequences
if (a) all existing Events of Default, other than the nonpayment of the
principal of the Securities which has become due solely by such declaration of
acceleration, have been cured or waived; (b) to the extent the payment of such
interest is lawful, interest (calculated at the Default Rate) on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid; (c) the rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction; and (d) all payments due to the Trustee and any predecessor
Trustee under Section 7.07 have been made. No such rescission shall
affect any subsequent default or impair any right consequent
thereto.
(b) Notwithstanding
any of provision of this Article 6, at the election of the Company in its sole
discretion, the sole remedy under this Indenture for an Event of Default
relating to the failure to comply with Section 4.02, and for any failure to
comply with the requirements of Section 314(a)(1) of the TIA, will consist, for
the 180 days after the occurrence of such an Event of Default, exclusively of
the right to receive additional interest on the Securities at a rate equal to
0.50% per annum of the aggregate principal amount of the Securities then
outstanding up to, but not including, the 181st day thereafter (or, if
applicable, the earlier date on which the Event of Default relating to Section
4.02 is cured or waived). Any such additional interest will be
payable in the same manner and on the same dates as the stated interest payable
on the Securities. In no event shall additional interest accrue under
the terms of this Indenture at a rate in excess of 0.50% per annum, in the
aggregate, for any violation or default caused by the failure of the Company to
be current in respect of its Exchange Act reporting obligations. If
the Event of Default is continuing on the 181st day after an Event of Default
relating to a failure to comply with Section 4.02, the Securities will be
subject to acceleration as provided in this Section 6.02. The
provisions of this Section 6.02(b) will not affect the rights of Holders in the
event of the occurrence of any other Events of Default.
In order
to elect to pay additional interest as the sole remedy during the first 180 days
after the occurrence of an Event of Default relating to the failure to comply
with Section 4.02 in accordance with the immediately preceding paragraph, the
Company shall notify all Holders and the Trustee and Paying Agent of such
election on or before the close of business on the fifth Business Day after the
date on which such Event of Default otherwise would occur. Upon a
failure by the Company to timely give such notice or pay additional interest,
the Securities will be immediately subject to acceleration as otherwise provided
in this Section 6.02.
SECTION
6.03
Collection of Indebtedness
and Suits for Enforcement by Trustee
.
If an
Event of Default with respect to any Securities of any Series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders of Securities of such Series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.
If an
Event of Default in the payment of principal, interest, if any, specified in
clause (a) or (b) of Section 6.01 occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company or another obligor on the Securities for the whole amount of principal,
and accrued interest remaining unpaid, if any, together with, to the extent that
payment of such interest is lawful, interest on overdue principal, on overdue
installments of interest, if any, in each case at the Default Rate, and 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.
SECTION
6.04
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 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 or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,
(a) to
file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Securities and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and of the Holders allowed
in such judicial proceeding, and
(b) to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07.
Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.
SECTION
6.05
Trustee May Enforce Claims
Without Possession of Securities
.
All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been
recovered.
SECTION
6.06
Application of Money
Collected
.
Any money
collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid: and
First
: To the payment of all
amounts due the Trustee under Section 7.07;
Second
: To the payment of all
indebtedness of the Company to which such series of Securities is subordinated
to the extent required by Articles 7 and 12.
Third
: to the payment of the
amounts then due and unpaid for principal of and interest on the Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal and interest, respectively;
and
Fourth
: To the
Company.
SECTION
6.07
Limitation on
Suits
.
No Holder
of any Security of any Series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder (except actions for
payment of overdue principal and interest), unless:
(a) such
Holder has previously given written notice to the Trustee of a continuing Event
of Default with respect to the Securities of that Series;
(b) 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;
(c) such
Holder or Holders have offered to the Trustee indemnity satisfactory to it
against the costs, expenses and liabilities to be incurred in compliance with
such request;
(d) the
Trustee for 90 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and
(e) no
direction inconsistent with such written request has been given to the Trustee
during such 90-day period by the Holders of a majority in principal amount of
the outstanding Securities of that Series; it being understood and intended that
no one or more of such Holders shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Indenture 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 such Holders.
SECTION
6.08
Unconditional Right of
Holders to Receive Principal and Interest
.
Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal
of and interest, if any, on 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,
and such rights shall not be impaired without the consent of such
Holder.
SECTION
6.09
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
6.10
Rights and Remedies
Cumulative
.
Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.08, 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
6.11
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 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
6.12
Control by
Holders
.
The
Holders of a majority in principal amount of the outstanding Securities of any
Series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee, with respect to the Securities of such
Series, provided that
(a) such
direction shall not be in conflict with any rule of law or with this
Indenture,
(b) the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and
(c) subject
to the provisions of Section 6.01, the Trustee shall have the right to decline
to follow any such direction if the Trustee in good faith shall, by a
Responsible Officer of the Trustee, determine that the proceeding so directed
would involve the Trustee in personal liability or would be unduly prejudicial
to the rights of another Holder or the Trustee.
SECTION
6.13
Waiver of Past
Defaults
.
Subject
to Section 9.02, the Holders of not less than a majority in principal amount of
the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such
Series and its consequences, except a Default in the payment of the principal of
or interest on any Security of such Series (provided, however, that the Holders
of a majority in principal amount of the outstanding Securities of any Series
may rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration). 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
6.14
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 any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 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 25% 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
VII
TRUSTEE
SECTION
7.01
Duties of
Trustee
.
(a) 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 person would exercise or use under
the circumstances in the conduct of his own affairs.
(b) Except
during the continuance of an Event of Default:
(i) The
Trustee need perform only those duties that are specifically set
forth in this Indenture and no implied duties, covenants or obligations shall be
deemed to be imposed upon the Trustee.
(ii) 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 on their face to the requirements of this
Indenture.
(c) The
Trustee may not be relieved from liability for its own its own negligent action,
its own negligent failure to act or willful misconduct, except
that:
(i) This
paragraph does not limit the effect of paragraph (b) of Section 7.01
herein.
(ii) The
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer.
(iii) 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.
(d) Every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraph (a), (b) and (c) of this Section.
(e) The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives an indemnity satisfactory to it against any loss, liability or
expense.
(f) The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.
(g) No
provision of this Indenture shall require the Trustee to risk or expend its own
funds or otherwise incur liability, financial or otherwise, 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
indemnity satisfactory to it against such risk is not reasonably assured to
it.
(h) The
Paying Agent, the Registrar and any authenticating agent shall be entitled to
the same rights, indemnities, protections and immunities afforded to the
Trustee.
(i) The
Trustee shall have no duty to monitor the performance or compliance of the
Company with its obligations hereunder or any under supplement hereto, nor shall
it have any liability in connection with the malfeasance or nonfeasance by the
Company. The Trustee shall have no liability in connection with
compliance by the Company with statutory or regulatory requirements related to
this Indenture, any supplement or any Securities issued pursuant hereto or
thereto.
SECTION
7.02
Rights of
Trustee
.
(a) The
Trustee may conclusively rely on and shall be fully protected in acting or
refraining from acting as a result of its reasonable belief that any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, direction, approval or other paper or document was genuine and had been
signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it sees fit.
(b) Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel or both. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officers’ Certificate or Opinion of Counsel.
(c) The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of, or for the supervision of, any agent appointed with due
care. No Depository shall be deemed an agent of the Trustee and the
Trustee shall not be responsible for any act or omission by any
Depository.
(d) The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or
powers.
(e) The
Trustee may consult with counsel of its selection and the advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.
(f) The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by or pursuant to this Indenture at the request, order or direction
of any of the Holders of Securities, unless such Holders shall have offered to
the Trustee reasonable security or indemnity satisfactory to it against the
costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction.
SECTION
7.03
Individual Rights of
Trustee
.
The
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with the Company or an Affiliate
with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to
Sections 7.10 and 7.11.
SECTION
7.04
Trustee’s
Disclaimer
.
The
Trustee makes no representation as to the validity or adequacy of this Indenture
or the Securities and the recitals contained herein and in the Securities shall
be taken as statements of the Company and not of the Trustee, and the Trustee
has no responsibility for such recitals. The Trustee shall not be accountable
for the Company’s use or application of the proceeds from the Securities or for
monies paid over to the Company pursuant to this Indenture, and it shall not be
responsible for any statement in the Securities other than its
authentication.
SECTION
7.05
Notice of
Defaults
.
If a
Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if a Responsible Officer of the Trustee has
knowledge or receives written notice of such event, the Trustee shall mail to
each Securityholder of the Securities of that Series, notice of a Default or
Event of Default within 90 days after it occurs or, if later, after a
Responsible Officer of the Trustee has actual knowledge of such Default or Event
of Default. Except in the case of a Default or Event of Default in
payment of principal of or interest on any Security of any Series, including any
additional interest that may become payable pursuant to Section 6.02(b), the
Trustee may withhold the notice so long as the Trustee in good faith determines
that withholding the notice is in the interests of Securityholders of that
Series.
SECTION
7.06
Reports by Trustee to
Holders
.
Within 60
days after [__] in each year, the Trustee shall transmit by mail to all
Securityholders, as their names and addresses appear on the register kept by the
Registrar, a brief report dated as of such [__], in accordance with, and to the
extent required under, TIA Section 313.
A copy of
each report at the time of its mailing to Securityholders of any Series shall be
filed with the SEC and each stock exchange on which the Securities of that
Series are listed. The Company shall promptly notify the Trustee when
Securities of any Series are listed on any stock exchange.
SECTION
7.07
Compensation and
Indemnity
.
The
Company shall pay to the Trustee from time to time such compensation for its
services as shall be agreed upon in writing. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company shall reimburse the Trustee upon request
for all reasonable out-of-pocket expenses, disbursements and advances incurred
by it. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents, counsel and other persons not regularly in its
employ.
The
Company shall indemnify, defend and hold harmless the Trustee and its officers,
directors, employees, representatives and agents, from and against and reimburse
the Trustee for any and all claims, expenses, obligations, liabilities, losses,
damages, injuries (to person, property, or natural resources), penalties, stamp
or other similar taxes, actions, suits, judgments, reasonable costs and expenses
(including reasonable attorney’s and agent’s fees and expenses) of whatever kind
or nature regardless of their merit, demanded, asserted or claimed against the
Trustee directly or indirectly relating to, or arising from, claims against the
Trustee by reason of its participation in the transactions contemplated hereby,
including without limitation all reasonable costs required to be associated with
claims for damages to persons or property, and reasonable attorneys’ and
consultants’ fees and expenses and court costs except to the extent caused by
the Trustee’s negligence or willful misconduct. The provisions of
this Section 7.07 shall survive the termination of this Agreement or the earlier
resignation or removal of the Trustee. The Company shall defend any
claim and the Trustee shall cooperate in the defense. The Trustee may
have separate counsel and the Company shall pay the reasonable fees and expenses
of such counsel. The Company need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld or
delayed. This indemnification shall apply to officers, directors,
employees, shareholders and agents of the Trustee.
The
Company need not reimburse any expense or indemnify against any loss liability
incurred by the Trustee or by any officer, director, employee, shareholder or
agent of the Trustee through negligence or bad faith.
To secure
the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series on all money or property held or collected
by the Trustee, except that held in trust to pay principal and interest on
particular Securities of that Series.
When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(f) or (g) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
Bankruptcy Law.
SECTION
7.08
Replacement of
Trustee
.
A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.
The
Trustee may resign with respect to the Securities of one or more Series by so
notifying the Company. The Holders of a majority in principal amount
of the Securities of any Series may remove the Trustee with respect to that
Series by so notifying the Trustee and the Company. The Company may
remove the Trustee with respect to Securities of one or more Series
if:
(a) the
Trustee fails to comply with Section 7.10;
(b) the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered
with respect to the Trustee under any Bankruptcy Law;
(c) a
Custodian or public officer takes charge of the Trustee or its property;
or
(d) the
Trustee becomes incapable of acting.
If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the then outstanding Securities
may appoint a successor Trustee to replace the successor Trustee appointed by
the Company.
If a
successor Trustee with respect to the Securities of any one or more Series does
not take office within 30 days after the retiring Trustee resigns or is removed,
the retiring Trustee, the Company or the Holders of at least 25% in principal
amount of the Securities of the applicable Series may petition any court of
competent jurisdiction for the appointment of a successor Trustee.
A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.07, and subject
to the payment of any and all amounts then due and owing to the retiring
Trustee, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and
duties of the Trustee with respect to each Series of Securities for which it is
acting as Trustee under this Indenture. A successor Trustee shall
mail a notice of its succession to each Securityholder of each such
Series. Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Company’s obligations under Section 7.07 hereof shall continue
for the benefit of the retiring trustee with respect to expenses and liabilities
incurred by it prior to such replacement.
SECTION
7.09
Successor Trustee by Merger,
Etc
.
If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee
with the same effect as if the successor Trustee had been named as the Trustee
herein.
SECTION
7.10
Eligibility;
Disqualification
.
This
Indenture shall always have a Trustee who satisfies the requirements of TIA
Section 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply
with TIA Section 310(b).
SECTION
7.11
Preferential Collection of
Claims Against Company.
The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TTA Section 311(a) to the extent
indicated.
ARTICLE
VIII
SATISFACTION
AND DISCHARGE; DEFEASANCE
SECTION
8.01
Satisfaction and Discharge
of Indenture
.
This
Indenture shall upon Company Order cease to be of further effect (except as
hereinafter provided in this Section 8.01), and the Trustee, on the demand of
and at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when
(a) either
(i) all
Securities theretofore authenticated and delivered (other than Securities that
have been destroyed, lost or stolen and that have been replaced or paid) have
been delivered to the Trustee for cancellation; or
(ii) all
such Securities not theretofore delivered to the Trustee for
cancellation:
(1) have
become due and payable, or
(2) will
become due and payable at their Stated Maturity within
[ ],
or
(3) are
to be called for redemption within
[ ]
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,
or
(4) are
deemed paid and discharged pursuant to section 8.03, as applicable; and the
Company, in the case of (1), (2) or (3) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust an amount sufficient for the
purpose of paying and discharging the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal and
interest to the date of such deposit (in the case of Securities which have
become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;
(b) the
Company has paid or caused to be paid all other sums payable hereunder by the
Company; and
(c) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each meeting the applicable requirements of Sections 10.04 and 10.05
and each stating that all conditions precedent herein relating to the
satisfaction and discharge of this Indenture have been complied with and the
Trustee receives written demand from the Company to discharge.
Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company
to the Trustee under Section 7.07, and, if money shall have been deposited with
the Trustee pursuant to clause (a) of this Section, the provisions of Sections
2.04, 2.07, 2.08, 8.01 8.02 and 8.05 shall survive.
SECTION
8.02
Application of Trust Funds;
Indemnification
.
(a) Subject
to the provisions of Section 8.05, all money deposited with the Trustee pursuant
to Section 8.01, all money and U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04 and all
money received by the Trustee in respect of U.S. Government Obligations or
Foreign Government Obligations deposited with the Trustee pursuant to Section
8.03 or 8.04, 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 interest for whose payment such money has been deposited with or
received by the Trustee or to make mandatory sinking fund payments or analogous
payments as contemplated by Sections 8.03 or 8.04.
(b) The
Company shall pay and shall indemnify the Trustee and the Agents against any
tax, fee or other charge imposed on or assessed against U.S. Government
Obligations or Foreign Government Obligations deposited pursuant to Sections
8.03 or 8.04 or the interest and principal received in respect of such
obligations other than any payable by or on behalf of Holders.
(c) The
Trustee shall, in accordance with the terms of this Indenture, deliver or pay to
the Company from time to time, upon Company Request and at the expense of the
Company any U.S. Government Obligations or Foreign Government Obligations or
money held by it pursuant to this Indenture as provided in Sections 8.03 or 8.04
which, in the opinion of a nationally recognized firm of independent certified
public accountants, expressed in a written certification thereof and delivered
to the Trustee together with such Company Request, are then in excess of the
amount thereof which then would have been required to be deposited for the
purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received. This provision shall
not authorize the sale by the Trustee of any U.S. Government Obligations or
Foreign Government Obligations held under this Indenture.
SECTION
8.03
Legal Defeasance of
Securities of any Series
.
Unless
this Section 8.03 is otherwise specified, pursuant to Section 2.02(s), to be
inapplicable to Securities of any Series, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the outstanding Securities of
such Series on the [ ] day after the date of the deposit
referred to in subparagraph (d) hereof, and the provisions of this Indenture, as
it relates to such outstanding Securities of such Series, shall no longer be in
effect (and the Trustee, at the expense of the company, shall, at Company
Request, execute proper instruments acknowledging the same), except as
to:
(a) the
rights of Holders of Securities of such Series to receive, from the trust funds
described in subparagraph (d) hereof, (i) payment of the principal of and each
installment of principal of and interest on the outstanding Securities of such
Series on the Stated Maturity of such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities of such Series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities of
such Series;
(b) the
provisions of Sections 2.04, 2.07, 2.08, 2.14, 8.02, 8.03 and 8.05;
and
(c) the
rights, powers, trust and immunities of the Trustee hereunder; provided that,
the following conditions shall have been satisfied:
(d) the
Company shall have deposited or caused to be deposited irrevocably with the
Paying Agent as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for and dedicated solely to the
benefit of the Holders of such Securities in the case of Securities of such
Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest and
principal in respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on such
Paying Agent), not later than [ ] day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee and the Paying Agent, to
pay and discharge each installment of principal (including mandatory sinking
fund or analogous payments) of and interest, if any, on all the Securities of
such Series on the dates such installments of interest or principal are
due;
(e) such
deposit will 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;
(f) no
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the [ ] day after such date;
(g) the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that (i) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling, or (ii)
since the date of execution of this Indenture, there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
Securities of such Series will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit, defeasance and discharge and
will be subject to Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred;
(h) the
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by the Company with the intent of preferring the
Holders of the Securities of such Series over any other creditors of the company
or with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company;
(i) such
deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as
amended), or such trust shall be qualified under such Act or exempt from
regulation thereunder; and
(j) the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to the defeasance contemplated by this Section have been complied
with.
SECTION
8.04
Covenant
Defeasance
.
Unless
this Section 8.04 is otherwise specified pursuant to Section 2.02(s) to be
inapplicable to Securities of any Series, on and after the
[ ] day after the date of the deposit referred to in
subparagraph (a) hereof, the Company may omit to comply with any term, provision
or condition set forth under Sections 4.02, 4.03, 4.04, 4.05, 4.06, and 5.01 as
well as any additional covenants contained in a supplemental indenture hereto
for a particular Series of Securities or a Board Resolution or an Officers’
Certificate delivered pursuant to Section 2.02(s) (and the failure to comply
with any such covenants shall not constitute a Default or Event of Default under
Section 6.01) and the occurrence of any event described in clause (e) of Section
6.01 shall not constitute a Default or Event of Default hereunder, with respect
to the Securities of such Series, provided that the following conditions shall
have been satisfied:
(a) With
reference to this Section 8.04, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.02(c)) with the Paying
Agent as trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities (i) in the
case of Securities of such Series denominated in Dollars, cash in Dollars (or
such other money or currencies as shall then be legal tender in the United
States) and/or U.S. Government Obligations, or (ii) in the case of Securities of
such Series denominated in a Foreign Currency (other than a composite currency),
money and/or Foreign Government Obligations, which through the payment of
interest and principal in respect thereof, in accordance with their terms, will
provide (and without reinvestment and assuming no tax liability will be imposed
on such Paying Agent), not later than [ ] day before the due
date of any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants expressed
in a written certification thereof delivered to the Paying Agent, to pay
principal and interest, if any, on and any mandatory sinking fund in respect of
the Securities of such Series on the dates such installments of interest or
principal are due;
(b) Such
deposit will 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;
(c) No
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the [ ] day after such date;
(d) the
company shall have delivered to the Trustee an Opinion of Counsel confirming
that Holders of the Securities of such Series will not recognize income, gain or
loss for federal income tax purposes as a result of such deposit and 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 deposit and
defeasance had not occurred;
(e) the
Company shall have delivered to the Trustee an Officers’ Certificate stating the
deposit was not made by the Company with the intent of preferring the Holders of
the Securities of such Series over any other creditors of the Company or with
the intent of defeating, hindering, delaying or defrauding any other creditors
of the Company; and
(f) The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the defeasance contemplated by this Section have been complied
with.
SECTION
8.05
Repayment to
Company
.
The
Paying Agent shall pay to the Company upon request any money held by them for
the payment of principal and interest that remains unclaimed for two
years. After that, Securityholders entitled to the money must look to
the Company for payment as general creditors unless an applicable abandoned
property law designates another person and all liability of the Paying Agent
with respect to that money shall cease.
ARTICLE
IX
AMENDMENTS
AND WAIVERS
SECTION
9.01
Without Consent of
Holders
.
The
Company and the Trustee may amend or supplement this Indenture or the Securities
of one or more Series without the consent of any Securityholder:
(a) to
cure any ambiguity, defect or inconsistency;
(b) to
comply with Article V;
(c) to
provide for uncertificated Securities in addition to or in place of certificated
Securities;
(d) to
make any change that does not adversely affect the rights of any
Securityholder;
(e) to
provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture;
(f) 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;
(g) to
comply with requirements of the TIA and any rules promulgated under the TIA;
and
(h) to
add to the covenants of the Company for the equal and ratable benefit of the
Holders or to surrender any right, power or option conferred upon the
Company.
Any
amendment or supplement made solely to conform the provisions of this Indenture
or the Securities of any Series to the description thereof contained in the
final prospectus relating to such Series will be deemed not to adversely affect
the rights of any Holder.
SECTION
9.02
With Consent of
Holders
.
The
Company and the Trustee may enter into a supplemental indenture with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities of all Series affected by such supplemental indenture,
taken together as one class (including consents obtained in connection with a
tender offer or exchange offer for the Securities of such Series), for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Securityholders of each such
Series. Except as provided in Section 6.13, the Holders of at least a
majority in principal amount of the outstanding Securities of all Series
affected by such waiver by notice to the Trustee, taken together as one class
(including consents obtained in connection with a tender offer or exchange offer
for the Securities of such Series) may waive compliance by the Company with any
provision of this Indenture or the Securities with respect to such
Series.
It shall
not be necessary for the consent of the Holders of Securities under this Section
9.02 to approve the particular form of any proposed supplemental indenture or
waiver, but it shall be sufficient if such consent approves the substance
thereof. After a supplemental indenture or waiver under this section
becomes effective, the Company shall mail to the Holders of Securities affected
thereby a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or
any defect therein, shall not, however, in any way impair or affect the validity
of any such supplemental indenture or waiver.
SECTION
9.03
Limitations
.
Without
the consent of each Securityholder affected, an amendment or waiver may
not:
(a) change
the amount of Securities whose Holders must consent to an amendment, supplement
or waiver, except to increase any such amount or to provide that certain
provisions of this Indenture cannot be modified, amended or waived without the
consent of the Holder of each outstanding Security affected
thereby;
(b) reduce
the amount of interest, or change the interest payment time, on any
Security;
(c) waive
a redemption payment or alter the redemption provisions (other than any
alteration that would not materially adversely affect the legal rights of any
Holder under this Indenture) or the price at which the Company is required to
offer to purchase the Securities;
(d) reduce
the principal or change the Stated Maturity of any Security or reduce the amount
of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;
(e) reduce
the principal amount payable of any Security upon Maturity;
(f) waive
a Default or Event of Default in the payment of the principal of or interest, if
any, on any Security (except a rescission of acceleration of the Securities of
any Series by the Holders of at least a majority in principal amount of the
outstanding Securities of such Series and a waiver of the payment default that
resulted from such acceleration);
(g) change
the place or currency of payment of principal of or interest, if any, on any
Security other than that stated in the Security;
(h) impair
the right of any Holder to receive payment of principal or, or interest on, the
Securities of such Holder on or after the due dates therefor;
(i) impair
the right to institute suit for the enforcement of any payment on, or with
respect to, any Security;
(j) make
any change in Sections 10.15 or 10.16;
(k) change
the ranking of the Securities; or
(l) make
any other change which is specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate as a limitation under this
Section.
SECTION
9.04
Compliance with Trust
Indenture Act
.
Every
amendment to this Indenture or the Securities of one or more Series shall be set
forth in a supplemental indenture hereto that complies with the TIA as then in
effect.
SECTION
9.05
Revocation and Effect of
Consents
.
Until an
amendment or waiver becomes effective, a consent to it by a Holder of a Security
is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent is not made on any
Security. However, any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of a Security if the Trustee receives
the notice of revocation before the date the amendment or waiver becomes
effective.
Any
amendment or waiver once effective shall bind every Securityholder of each
Series affected by such amendment or waiver unless it is of the type described
in any of clauses (a) through (g) of Section 9.03 in that case, the amendment or
waiver shall bind each Holder of a Security who has consented to it and every
subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder’s Security.
SECTION
9.06
Notation on or Exchange of
Securities
.
If an
amendment, supplement or waiver changes the terms of a Security, the Trustee may
require the Holder of the Security to deliver it to the Trustee and the Trustee
may place an appropriate notation on the Security about the changed terms and
return it to the Holder. Alternatively, if the Company or the Trustee
so determines, the Company shall issue and the Trustee shall authenticate upon
request new Securities of that Series that reflect the changed
terms.
SECTION
9.07
Trustee
Protected
.
In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 7.01) shall be fully protected in relying upon, an Opinion
of Counsel or an Officer’s Certificate, or both stating that the execution of
such supplemental indenture is authorized or permitted by this
Indenture. The Trustee shall sign all supplemental indentures, except
that the Trustee need not sign any supplemental indenture that adversely affects
its rights, duties or indemnities.
SECTION
9.08
Effect of Supplemental
Indenture
.
Upon the
execution of any supplemental indenture under this Article, this Indenture shall
be modified in accordance therewith, and each such supplemental indenture shall
form part of this Indenture for all purposes with respect to the relevant
Series; and every Holder of Securities of the relevant Series theretofore or
thereafter authenticated and delivered hereunder shall be bound
thereby.
ARTICLE
X
MISCELLANEOUS
SECTION
10.01
Trust Indenture Act
Controls
.
If any
provision of this Indenture limits, qualifies, or conflicts with another
provision which is required or deemed to be included in this Indenture by the
TIA, such required or deemed provision shall control.
SECTION
10.02
Notices
.
Any
notice or communication by the Company, the Trustee, the Paying Agent or the
Registrar to another is duly given if in writing and delivered in person or
mailed by first-class mail:
if to the
Company:
China
Cord Blood Corporation
48th
Floor, Bank of China Tower
1 Garden
Road
Central,
Hong Kong S.A.R.
Attn:
Albert Chen, CFO
Fax:
+852-3605-8103
if to the
Trustee:
[ ]
Attn:
[ ]
Fax:
[ ]
if to the
Registrar or Paying Agent:
[
]
Attn:
[
]
Fax:
[ ]
with copy
to:
[ ]
Attn:
[ ]
Fax:
[ ]
The
Company, the Trustee and each Agent by notice to each other may designate
additional or different addresses for subsequent notices or
communications.
Any
notice or communication to a Securityholder shall be mailed by first-class mail
to his address shown on the register kept by the Registrar. Failure
to mail a notice or communication to a Securityholder of any Series or any
defect in it shall not affect its sufficiency with respect to other
Securityholders of that or any other Series.
If a
notice or communication is mailed or published in the manner provided above,
within the time prescribed, it is duly given, whether or not the Securityholder
receives it.
If the
company mails a notice or communication to Securityholders, it will mail a copy
to the Trustee and each Agent at the same time.
Whenever
a notice is required to be given by the Company, such notice may be given by the
Trustee or Registrar on the Company’s behalf (and the Company will make any
notice it is required to give to Holders available on its website).
SECTION
10.03
Communication by Holders
with Other Holders
.
Securityholders
of any Series may communicate pursuant to TIA Section 312(b) with other
Securityholders of that Series or any other Series with respect to their rights
under this Indenture or the Securities of that Series or all
Series. The Company, the Trustee, the Registrar and anyone else shall
have the protection of TIA Section 312(c).
SECTION
10.04
Certificate and Opinion as
to Conditions Precedent
.
Upon any
request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee upon
request:
(a) an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and
(b) an
Opinion of Counsel stating that, in the opinion of counsel, all such conditions
precedent (including any covenants, compliance with which constitutes a
condition precedent) have been complied with.
SECTION
10.05
Statements Required in
Certificate or Opinion
.
Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
and shall include:
(a) a
statement that the person making such certificate or opinion has read such
covenant or condition;
(b) a
brief statement as to the nature and scope of the examination or
investigation upon which the statements or
opinions contained in such certificate or opinion are
based;
(c) a
statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been complied with;
and
(d) a
statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with.
provided, however
, that with
respect to matters of fact an Opinion of Counsel may rely on an Officers’
Certificate or certificates of public officials.
SECTION
10.06
Record Date for Vote or
Consent of Holders
.
The
Company (or, in the event deposits have been made pursuant to Section 11.02, the
Trustee) may set a record date for purposes of determining the identity of
Holders entitled to vote or consent to any action by vote or consent authorized
or permitted under this Indenture, which record date shall not be more than 90
days prior to the date of the commencement of solicitation of such
action. Notwithstanding the provisions of Section 9.05, if a record
date is fixed, those persons who were Holders of Securities at the close of
business on such record date (or their duly designated proxies), and only those
persons, shall be entitled to take such action by vote or consent or to revoke
any vote or consent previously given, whether or not such persons continue to be
Holders after such record date.
SECTION
10.07
Rules by Trustee and
Agents
.
The
Trustee may make reasonable rules for action by or a meeting of Securityholders
of one or more Series. Any Agent may make reasonable rules and set
reasonable requirements for its functions.
SECTION
10.08
Legal
Holidays
.
Unless
otherwise provided by Board Resolution, Officers’ Certificate or supplemental
indenture for a particular Series, a “Legal Holiday” is any day that is not a
Business Day. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening
period.
SECTION
10.09
No Recourse Against
Others
.
A
director, officer, employee or stockholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder by accepting a
Security waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the
Securities.
SECTION
10.10
Counterparts
.
This
Indenture may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.
SECTION
10.11
Governing Laws and
Submission to Jurisdiction
.
THIS
INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK EXCLUDING ANY RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF
ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.
The
Company agrees that any legal suit, action or proceeding arising out of or based
upon this Indenture may be instituted in any federal or state court sitting in
New York City, and, to the fullest extent permitted by law, waives any objection
which it may now or hereafter have to the laying of venue of any such
proceeding, and irrevocably submits to the non-exclusive jurisdiction of such
court in any suit, action or proceeding. The Company, as long as any
Securities remain outstanding or the parties hereto have any obligation under
this Indenture, shall have an authorized agent in the United States upon whom
process may be served in any such legal action or proceeding. Service of process
upon such agent and written notice of such service mailed or delivered to it
shall to the extent permitted by law be deemed in every respect effective
service of process upon it in any such legal action or proceeding and, if it
fails to maintain such agent, any such process or summons may be served by
mailing a copy thereof by registered mail, or a form of mail substantially
equivalent thereto, addressed to it at its address as provided for notices
hereunder. The Company hereby appoints Loeb & Loeb LLP, 345 Park Avenue, New
York, NY 10154, as its agent for such purposes, and covenants and agrees that
service of process in any legal action or proceeding may be made upon it at such
office of such agent.
SECTION
10.12
No Adverse Interpretation of
Other Agreements
.
This
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.
SECTION
10.13
Successors
.
All
agreements of the Company in this Indenture and the Securities shall bind its
successor. All agreements of the Trustee in this Indenture shall bind
its successor.
SECTION
10.14
Severability
.
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
10.15
Table of Contents,
Headings, Etc.
The Table
of Contents, Cross Reference Table, and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.
SECTION
10.16
Judgment
Currency
.
The
Company agrees, to the fullest extent that it may effectively do so under
applicable law, that (a) if for the purpose of obtaining judgment in any court
it is necessary to convert the sum due in respect of the principal of or
interest or other amount on 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 day on which final
unappealable judgment is entered, unless such day is not a New York Banking Day,
then, 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 New York Banking Day
preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such tender
or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of
the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or
a legal holiday in The City of New York on which banking institutions are
authorized or required by law, regulation or executive order to
close.
SECTION
10.17
Compliance with Applicable
Anti-Terrorism and Money Laundering Regulations
.
In order
to comply with the laws, rules, regulations and executive orders in effect from
time to time applicable to banking institutions, including those relating to the
funding of terrorist activities and money laundering (“Applicable Law”), the
Trustee is required to obtain, verify and record certain information relating to
individuals and entities which maintain a business relationship with the
Trustee. Accordingly, each of the parties agree to provide to the
Trustee, upon its request from time to time such identifying information and
documentation as may be available for such party in order to enable the Trustee
to comply with the Applicable Law.
ARTICLE
XI
SINKING
FUNDS
SECTION
11.01
Applicability of
Article
.
The
provisions of this Article shall be applicable to any sinking fund for the
retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this
Indenture.
The
minimum amount of any sinking fund payment provided for by the terms of the
Securities of any Series is herein referred to as a “mandatory sinking fund
payment” and any other amount provided for by the terms of Securities of such
Series is herein referred to as an “optional sinking fund payment.” If provided
for by the terms of Securities of any Series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section
11.02. Each sinking fund payment shall be applied to the redemption
of Securities of any Series as provided for by the terms of the securities of
such Series.
SECTION
11.02
Satisfaction of Sinking Fund
Payments with Securities
.
The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of any Series to be made pursuant to the terms of such
Securities (1) deliver outstanding Securities of such Series to which such
sinking fund payment is applicable (other than any of such Securities previously
called for mandatory sinking fund redemption) and (2) apply as credit Securities
of such Series to which such sinking fund payment is applicable and which have
been redeemed either at the election of the Company pursuant to the terms of
such Series of Securities (except pursuant to any mandatory sinking fund) or
through the application of permitted optional sinking fund payments or other
optional redemptions pursuant to the terms of such Securities, provided that
such Securities have not been previously so credited. Such Securities
shall be received by the Registrar, together with an Officers’ Certificate with
respect thereto, not later than 45 days prior to the date on which the Registrar
begins the process of selecting Securities for redemption, and shall be credited
for such purpose by the Registrar at the price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly. If as a result of the
delivery or credit of Securities in lieu of cash payments pursuant to this
Section 11.02, the principal amount of Securities of such Series to be redeemed
in order to exhaust the aforesaid cash payment shall be less than $[], the
Registrar need not call Securities of such Series for redemption, except upon
receipt of a Company Order that such action be taken, and such cash payment
shall be held by the Paying Agent and applied to the next succeeding sinking
fund payment, provided, however, that the Paying Agent shall from time to time
upon receipt of a Company Order pay over and deliver to the Company any cash
payment so being held by the Paying Agent upon delivery by the Company to the
Registrar of Securities of that Series purchased by the Company having an unpaid
principal amount equal to the cash payment required to be released to the
Company.
SECTION
11.03
Redemption of Securities for
Sinking Fund
.
Not less
than 45 days (unless otherwise indicated in the Board Resolution, supplemental
indenture hereto or Officers’ Certificate in respect of a particular Series of
Securities) prior to each sinking fund payment date for any Series of
Securities, the Company will deliver to the Trustee and the Paying Agent an
Officers’ Certificate specifying the amount of the next ensuing mandatory
sinking fund payment for that Series pursuant to the terms of that Series, the
portion thereof, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that Series pursuant to Section 11.02., and the optional amount,
if any, to be added in cash to the next ensuing mandatory sinking fund payment,
and the Company shall thereupon be obligated to pay the amount therein
specified. Not less than 30 days (unless otherwise indicated in the
Board Resolution, Officers’ Certificate or supplemental indenture in respect of
a particular Series of Securities) before each such sinking fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.02 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 3.03. Such notice having been duly
given, the redemption of such Securities shall stated in Sections 3.04, 3.05 and
3.06.
ARTICLE
XII
SUBORDINATION
OF SECURITIES
SECTION
12.01
Agreement of
Subordination.
The
Company covenants and agrees, and each holder of Securities issued hereunder by
his acceptance thereof likewise covenants and agrees, that all Securities shall
be issued subject to the provisions of this Article 12; and each Securityholder,
whether upon original issue or upon transfer or assignment thereof, accepts and
agrees to be bound by such provisions.
The
payment of the principal of, premium, if any, and interest on all Securities
issued hereunder shall, to the extent and in the manner hereinafter set forth,
be subordinated and subject in right of payment to the prior payment in full of
all Senior Indebtedness of the Company, whether outstanding at the date of this
Indenture or thereafter incurred.
The
provisions of this Article 12 define the subordination of the Securities, as
obligations of the Company, with respect to Senior Indebtedness of the
Company.
No
provision of this Article 12 shall prevent the occurrence of any default or
Event of Default hereunder.
SECTION
12.02
Payments to
Securityholders
.
In the
event and during the continuation of any default in the payment of principal,
premium, interest or any other payment due on any Senior Indebtedness of the
Company continuing beyond the period of grace, if any, specified in the
instrument or lease evidencing such Senior Indebtedness of the Company, then,
unless and until such default shall have been cured or waived or shall have
ceased to exist, no payment shall be made by the Company with respect to the
principal of, or premium, if any, or interest on the Securities, except payments
made pursuant to Article 8 hereof from monies deposited with the Trustee
pursuant thereto prior to the happening of such default.
Upon any
payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any
dissolution or winding-up or liquidation or reorganization of the Company,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership or
other proceedings, all amounts due or to become due upon all Senior Indebtedness
of the Company shall first be paid in full, or payment thereof provided for in
money in accordance with its terms, before any payment is made on account of the
principal (and premium, if any) or interest on the Securities (except payments
made pursuant to Article 8 hereof from monies deposited with the Trustee
pursuant thereto prior to the happening of such dissolution, winding-up,
liquidation or reorganization); and upon any such dissolution or winding-up or
liquidation or reorganization any payment by the Company, or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, to which the holders of the Securities or the Trustee would be
entitled, except for the provisions of this Article 12, shall (except as
aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the holders of the Securities or by the Trustee under this Indenture if
received by them or it, directly to the holders of Senior Indebtedness of the
Company (pro rata to such holders on the basis of the respective amounts of
Senior Indebtedness of the Company held by such holders, as calculated by the
Company) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any
Senior Indebtedness of the Company may have been issued, as their respective
interests may appear, to the extent necessary to pay all Senior Indebtedness of
the Company in full, in money or money’s worth, after giving effect to any
concurrent payment or distribution to or for the holders of Senior Indebtedness
of the Company, before any payment or distribution is made to the holders of the
Securities or to the Trustee.
In the
event that, notwithstanding the foregoing, any payment or distribution of assets
of the Company of any kind or character, whether in cash, property or
securities, prohibited by the foregoing, shall be received by the Trustee or the
holders of the Securities before all Senior Indebtedness of the Company is paid
in full, or provision is made for such payment in money in accordance with its
terms, such payment or distribution shall be held in trust for the benefit of
and shall be paid over or delivered to the holders of Senior Indebtedness of the
Company or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any
Senior Indebtedness of the Company may have been issued, as their respective
interests may appear, as calculated by the Company, for application to the
payment of all Senior Indebtedness of the Company remaining unpaid to the extent
necessary to pay all Senior Indebtedness of the Company in full in money in
accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Indebtedness.
For
purposes of this Article 12, the words, “cash, property or securities” shall not
be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article 12 with respect to
the Securities to the payment of all Senior Indebtedness of the Company which
may at the time be outstanding; provided that (i) the Senior Indebtedness of the
Company is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and (ii) the rights of the holders of the Senior
Indebtedness of the Company (other than leases) and of leases which are assumed
are not, without the consent of such holders, altered by such reorganization or
readjustment. The consolidation of the Company with, or the merger of the
Company into, another corporation or the liquidation or dissolution of the
Company following the conveyance or transfer of its property as an entirety, or
substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article 5 hereof shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section 12.02
if such other corporation shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article 10 hereof.
Nothing in this Section 12.02 shall apply to claims of, or payments to, the
Trustee under or pursuant to Article 7.
SECTION
12.03
Subrogation of
Securities
.
Subject
to the payment in full of all Senior Indebtedness of the Company, the rights of
the holders of the Securities shall be subrogated to the rights of the holders
of Senior Indebtedness of the Company to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior
Indebtedness of the Company until the principal of (and premium, if any) and
interest on the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of the Senior
Indebtedness of the Company of any cash, property or securities to which the
holders of the Securities or the Trustee would be entitled except for the
provisions of this Article 12 to or for the benefit of the holders of Senior
Indebtedness of the Company by holders of the Securities or the Trustee, shall,
as between the Company, its creditors other than holders of Senior Indebtedness
of the Company, and the holders of the Securities, be deemed to be a payment by
the Company to or on account of the Senior Indebtedness of the Company. It is
understood that the provisions of this Article 12 are and are intended solely
for the purpose of defining the relative rights of the holders of the
Securities, on the one hand, and the holders of the Senior Indebtedness of the
Company, on the other hand.
Nothing
contained in this Article 12 or elsewhere in this Indenture or in the Securities
is intended to or shall impair, as between the Company, its creditors other than
the holders of its Senior Indebtedness, and the holders of the Securities, the
obligation of the Company, which is absolute and unconditional, to pay to the
holders of the Securities the principal of (and premium, if any) and interest on
the Securities as and when the same shall become due and payable in accordance
with their terms, or is intended to or shall affect the relative rights of the
holders of the Securities and creditors of the Company other than the holders of
its Senior Indebtedness, nor shall anything herein or therein prevent the
Trustee or the holder of any Security from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article 12 of the holders of Senior Indebtedness of
the Company in respect of cash, property or securities of the Company received
upon the exercise of any such remedy.
Upon any
payment or distribution of assets of the Company referred to in this Article 12,
the Trustee, subject to the provisions of Article 7, and the holders of the
Securities shall be entitled to rely upon any order or decree made by any court
of competent jurisdiction in which such dissolution, winding-up, liquidation or
reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidating trustee, agent or other Person making such
payment or distribution, delivered to the Trustee or to the holders of the
Securities, for the purpose of ascertaining the Persons entitled to participate
in such distribution, the holders of the Senior Indebtedness and other
indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article 12.
SECTION
12.04
Authorization by
Securityholders
.
Each
holder of a Security by his acceptance thereof authorizes and directs the
Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article 12 appoints the
Trustee his attorney-in-fact for any and all such purposes.
SECTION
12.05
Notice to
Trustee
.
The
Company shall give promptly written notice to the Trustee of any fact known to
the Company which would prohibit the making of any payment of monies to or by
the Trustee in respect of the Securities pursuant to the provisions of this
Article 12. Notwithstanding the provisions of this Article 12 or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment of
monies to or by the Trustee in respect of the Securities pursuant to the
provisions of this Article 12, unless and until the Trustee shall have received
written notice thereof in accordance with Section 10.02 from the Company or a
holder or holders of Senior Indebtedness of the Company or from any trustee
therefor; and before the receipt of any such written notice, the Trustee,
subject to the provisions of Article 7, shall be entitled in all respects to
assume that no such facts exist; provided that if on a date not fewer than three
Business Days prior to the date upon which by the terms hereof any such monies
may become payable for any purpose (including, without limitation, the payment
of the principal of (or premium, if any) or interest on any Security) the
Trustee shall not have received, with respect to such monies, the notice
provided for in this Section 12.05, then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such monies and to apply the same to the purpose for which they were
received, and shall not be affected by any notice to the contrary which may be
received by it on or after such prior date. Notwithstanding anything to the
contrary hereinbefore set forth, nothing shall prevent any payment by the
Company or the Trustee to the Securityholders of monies in connection with a
redemption of Securities if (i) notice of such redemption has been given in
accordance herewith prior to the receipt by the Trustee of written notice as
aforesaid, and (ii) such notice of redemption is given not earlier than 60 days
before the redemption date.
The
Trustee conclusively shall be entitled to rely on the delivery to it of a
written notice by a Person representing himself to be a holder of Senior
Indebtedness of the Company (or a trustee on behalf of such holder) to establish
that such notice has been given by a holder of Senior Indebtedness of the
Company or a trustee on behalf of any such holder or holders. In the event that
the Trustee determines in good faith that further evidence is required with
respect to the right of any Person as a holder of Senior Indebtedness of the
Company to participate in any payment or distribution pursuant to this Article
12, the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness of the
Company held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article 12, and if such evidence is not
furnished the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such
payment.
SECTION
12.06
Trustee’s Relation to Senior
Indebtedness
.
The
Trustee in its individual capacity shall be entitled to all the rights set forth
in this Article 12 in respect of any Senior Indebtedness of the Company at any
time held by it, to the same extent as any other holder of Senior Indebtedness
of the Company and nothing elsewhere in this Indenture shall deprive the Trustee
of any of its rights as such holder.
With
respect to the holders of Senior Indebtedness of the Company, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article 12, and no implied covenants or
obligations with respect to the holders of Senior Indebtedness of the Company
shall be read into this Indenture against the Trustee. The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the
Company and the Trustee shall not be liable to any holder of Senior Indebtedness
of the Company if it shall pay over or deliver to holders of Securities, the
Company or any other Person money or assets to which any holder of Senior
Indebtedness of the Company shall be entitled by virtue of this Article 12 or
otherwise.
SECTION
12.07
No Impairment of
Subordination
.
No right
of any present or future holder of any Senior Indebtedness of the Company to
enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof which any such holder may have or
otherwise be charged with.
SECTION
12.08
Rights of
Trustee
.
Nothing
in this Article 12 shall apply to claims of, or payments to, the Trustee
pursuant to Article 7.
[The
remainder of this page is intentionally left blank]
IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed as of the day and year first above written.
CHINA
CORD BLOOD CORPORATION
By:
Name:
Its:
[ ]
as
Trustee
Name:
Its:
Its:
[ ]
as
Registrar and Paying Agent
Name:
Its:
Its:
Exhibit 5.1
16 August
2010
Matter
No.:874583
Doc Ref:
BLHK/rc/334401
Tel No.:
852 2842 9550
E-mail:
Brian.Lee@conyersdill.com
China
Cord Blood Corporation
48
th
Floor,
Bank of China Tower
1 Garden
Road, Central
Hong Kong
S.A.R.
Dear
Sirs,
Re:
China Cord Blood Corporation (the “Company”)
We have
acted as special Cayman Islands legal counsel to the Company in connection with
a registration statement on Form F-3 (the "
Registration Statement
") filed
with the U.S. Securities and Exchange Commission (the "
Commission
") on or about 16
August 2010 under the U.S. Securities Act of 1933, as amended, (the "
Securities Act
") through which
the Company may periodically offer (i) ordinary shares, par value US$0.0001 per
share, in the Company (the “
Ordinary Shares
"), (ii)
preferred shares, par value US$0.0001 per share, in the Company (the “
Preferred Shares
” and together
with the Ordinary Shares, “
Equity Securities
”, which term
includes any Ordinary Shares or Preferred Shares to be issued pursuant to the
conversion, exchange or exercise of any other Securities), (iii) debt securities
(the “
Debt Securities
”),
(iv) warrants (the “
Warrants
”), (v) rights
evidencing the right to purchase Ordinary Shares (the “
Rights
”) and (vi) securities
in units each consisting of two or more of the foregoing (the “
Units
” and collectively with
the Ordinary Shares, Preferred Shares, Debt Securities, Warrants and
Rights, the “
Securities
”).
For the
purposes of giving this opinion we have examined:
(i)
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a
copy of the Registration Statement;
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(ii)
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the
Prospectus forming a part of the Registration
Statement;
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(iii)
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a
Certificate of Good Standing issued by the Registrar of Companies in
relation to the Company;
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(iv)
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a
copy of the amended and restated memorandum and articles of association of
the Company adopted by special resolutions passed at on 25 June 2009 and
effective on 30 June 2009 (the “
Constitutional
Documents
”);
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(v)
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a
copy of resolutions passed by the directors of the Company at a board
meeting held on August 16, 2010 authorising the filing of the
Registration Statement (the “
Resolutions
”);
and
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(vi)
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such
other documents and made such enquiries as to questions of law as we have
deemed necessary in order to render the opinion set forth
below.
|
We have
assumed (a) the genuineness and authenticity of all signatures and the
conformity to the originals of all copies (whether or not certified) examined by
us and the authenticity and completeness of the originals from which such copies
were taken; (b) that where a document has been examined by us in draft form, it
will be or has been executed and/or filed in the form of that draft, and where a
number of drafts of a document have been examined by us all changes thereto have
been marked or otherwise drawn to our attention; (c) the accuracy and
completeness of all factual representations made in the Registration Statement
and other documents reviewed by us; (d) that the resolutions contained in the
Resolutions were passed at one or more duly convened, constituted and quorate
meetings or by unanimous written resolutions, remain in full force and effect
and have not been rescinded or amended; (e) that the Company will issue the
Securities in furtherance of its objects as set out in its memorandum of
association; (f) that the Constitutional Documents will not be amended in any
manner that would affect the opinions expressed herein; (f) that the Company
will have sufficient authorised capital to effect the issue of any of the Equity
Securities at the time of issuance, whether as a principal issue or on the
conversion, exchange or exercise of any Securities; (g) that there is no
provision of the law of any jurisdiction, other than the Cayman Islands, which
would have any implication in relation to the opinions expressed herein; (h)
that the form and terms of any and all Securities (including, without
limitation, the designation, powers, preferences, rights, qualifications,
limitations and restrictions of Preferred Shares) or other securities (or other
obligations, rights, currencies, commodities or other subject matter) comprising
the same or subject thereto (in the case of the Warrants, Rights and Units), the
issuance and sale thereof by the Company, and the Company’s incurrence and
performance of its obligations thereunder or in respect thereof (including,
without limitation, its obligations under any related agreement, indenture or
supplement thereto) in accordance with the terms thereof will not violate the
Constitutional Documents nor any applicable law, regulation, order or decree in
the Cayman Islands; (i) that all necessary corporate action will be taken to
authorise and approve any issuance of Securities (including, if Preferred Shares
are to be issued, all necessary corporate action to establish one or more series
of Preferred Shares and fix the designation, powers, preferences, rights,
qualifications, limitations and restrictions thereof), the terms of the offering
thereof and related matters, and that the applicable definitive purchase,
underwriting or similar agreement and, if Debt Securities are to be issued, the
applicable indenture and any applicable supplements thereto, will be duly
approved, executed and delivered by or on behalf of the Company and all other
parties thereto; (j) that the applicable purchase, underwriting or similar
agreement, any Debt Security, any indenture and any supplement thereto and any
other agreement or other document relating to any Security will be valid and
binding in accordance with its terms pursuant to its governing law; (k) that the
issuance and sale of and payment for the Securities will be in accordance with
the applicable purchase, underwriting or similar agreement duly approved by the
board of directors of the Company or a duly authorised committee thereof, the
Registration Statement (including the prospectus set forth therein and any
applicable supplement thereto) and, if Debt Securities are to be issued, the
applicable indenture and any applicable supplements thereto; (l) that, upon the
issue of any Equity Securities, the Company will receive consideration for the
final issue price thereof which shall be equal to at least the par
value thereof; (m) the capacity, power and authority of all parties other than
the Company to enter into and perform their obligations under any and all
documents entered into by such parties in connection with the issuance of the
Securities, and the due execution and delivery thereof by each party
thereto.
The
obligations of the Company under any Security (a) will be subject to the laws
from time to time in effect relating to bankruptcy, insolvency, liquidation,
possessory liens, rights of set off, reorganisation, amalgamation, moratorium or
any other laws or legal procedures, whether of a similar nature or otherwise,
generally affecting the rights of creditors; (b) will be subject to statutory
limitation of the time within which proceedings may be brought; (c) will be
subject to general principles of equity and, as such, specific performance and
injunctive relief, being equitable remedies, may not be available; (d) may not
be given effect to by a Cayman Islands court, if and to the extent they
constitute the payment of an amount which is in the nature of a penalty and not
in the nature of liquidated damages; (e) may not be given effect by a Cayman
Islands court to the extent that they are to be performed in a jurisdiction
outside the Cayman Islands and such performance would be illegal under the laws
of that jurisdiction. Notwithstanding any contractual submission to
the jurisdiction of specific courts, a Cayman Islands court has inherent
discretion to stay or allow proceedings in the Cayman Islands against the
Company under the Security if there are other proceedings in respect of that
Security simultaneously underway against the Company in another
jurisdiction. Under Cayman Islands law, a person who is not one of
the parties to an agreement is, in general, unable to enforce it.
We have
made no investigation of and express no opinion in relation to the laws of any
jurisdiction other than the Cayman Islands. This opinion is to be
governed by and construed in accordance with the laws of the Cayman Islands and
is limited to and is given on the basis of the current law and practice in the
Cayman Islands. This opinion is issued solely for the purposes of the filing of
the Registration Statement and the offering of the Securities by the Company and
is not to be relied upon in respect of any other matter, except that Loeb &
Loeb LLP may rely upon it for the purpose of giving their opinion with respect
to the Securities in substantially the form of paragraph 3 below..
On the
basis of and subject to the foregoing, we are of the opinion that:
1.
|
The
Company is duly incorporated and validly existing under the laws of the
Cayman Islands in good standing (meaning solely that it has not failed to
make any filing with any Cayman Islands government authority or to pay any
Cayman Islands government fee which would make it liable to be struck off
the Registrar of Companies and thereby cease to exist under the laws of
the Cayman Islands).
|
2.
|
Upon
the due issuance of Ordinary Shares and/or Preferred Shares and payment of
the consideration therefor, such Ordinary Shares and/or Preferred Shares
will be validly issued, fully paid and non-assessable (which term means
when used herein that no further sums are required to be paid by the
holders thereof in connection with the issue of such
shares).
|
3.
|
Upon
the due issuance of: (a) Debt Securities of any series; (b) Warrants; (c)
Rights and/or (d) Units, and payment of the consideration therefor, such
Securities will be validly issued and (except in the case of any Equity
Securities forming part of a Unit) will constitute valid and binding
obligations of the Company in accordance with the terms
thereof.
|
We hereby
consent to the filing of this opinion as an exhibit to the Registration
Statement and to the references to our firm under the captions "Enforcement of
Civil Liabilities" and "Legal Matters" in the Prospectus forming a part of the
Registration Statement. In giving this consent, we do not hereby
admit that we are experts within the meaning of Section 11 of the Securities Act
or that we are within the category of persons whose consent is required under
Section 7 of the Securities Act or the Rules and Regulations of the Commission
promulgated thereunder.
Yours
faithfully,
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|
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|
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/s/
Conyers Dill & Pearman
|
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|
|
|
Conyers
Dill & Pearman
|
|
|
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Exhibit
5.2
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345
Park Avenue
New
York, NY 10154-1895
|
Direct
Main
Fax
|
212.407.4000
212.407.4000
212.407.4990
|
August
16, 2010
China
Cord Blood Corporation
48
th
Floor, Bank of China Tower
1
Garden Road
Central,
Hong Kong, S.A.R.
|
|
Re:
|
Registration
Statement on Form F-3
|
Ladies
and Gentlemen:
We have
acted as U.S. securities counsel for China Cord Blood Corporation, a Cayman
Islands corporation (the “Company”), in connection with the registration for
issuance and sale from time to time, on a delayed basis, by the Company of (i)
ordinary shares, par value $0.0001 per share (the “Common Stock”), (ii) debt
securities of the Company (the “Debt Securities”), in one or more series,
(iii) warrants to purchase Common Stock or debt securities (the
“Warrants”), (iv) subscription rights to purchase Common Stock or Debt
Securities (“Rights”) and/or (v) units consisting of one or more of the
foregoing (the “Units”), in each case as contemplated by the Form F-3
Registration Statement referred to above (including the prospectus constituting
part thereof (the “Prospectus”)) and to which this opinion letter has been filed
as an exhibit (the “Registration Statement”). The Common Stock,
Warrants, Debt Securities, Rights and Units are collectively referred to herein
as the “Securities.” The Securities being registered are, together
with other securities referred to in the Prospectus, for a maximum aggregate
offering price of $100,000,000.00. The Securities may be offered and
sold from time to time pursuant to Rule 415 under the Securities Act of 1933, as
amended (the “Securities Act”), at which time it is contemplated that the
Prospectus will be supplemented in the future by one or more supplements to the
Prospectus (each, a “Prospectus Supplement”).
We have
examined originals or copies, certified or otherwise identified to our
satisfaction, of such corporate records of the Company and other certificates
and documents of officials of the Company, public officials and others as we
have deemed appropriate for purposes of this letter. We have assumed
the genuineness of all signatures, the authenticity of all documents submitted
to us as originals, and the conformity to authentic original documents of all
copies submitted to us as conformed and certified or reproduced
copies.
Based
upon the foregoing and subject to the assumptions, exceptions, qualifications
and limitations set forth hereinafter, we are of the opinion that the Warrants,
the Debt Securities, Rights and the Units, insofar as the Units include
Warrants, Debt Securities or Rights, upon issuance and delivery of certificates
(or book-entry notation if uncertificated) for such Securities against payment
therefor as set forth in the Registration Statement, Prospectus or a Prospectus
Supplement, will constitute valid and legally binding obligations of the
Company.
|
China
Cord Blood Corporation
August
16, 2010
|
In
rendering the foregoing opinions, we have assumed that: (i) the
Registration Statement, and any amendments thereto, shall have become effective
under the Securities Act and will remain effective at the time of issuance of
any Securities thereunder; (ii) a Prospectus Supplement describing each
class or series of Securities offered pursuant to the Registration Statement, to
the extent required by applicable law and relevant rules and regulations of the
Securities and Exchange Commission (the “Commission”), will be timely filed with
the Commission; (iii) the Company will issue and deliver the Securities in
the manner contemplated by the Registration Statement, the Prospectus, the
applicable Prospectus Supplement and any applicable underwriting agreement; and
(iv) all Securities will be issued in compliance with applicable federal and
state securities laws.
With
respect to any Securities consisting of Warrants, we have further assumed that
(i) such Warrants shall have been issued pursuant to a warrant agreement
approved by us (individually, and as supplemented from time to time, a “Warrant
Agreement”) between the Company and a warrant agent to be identified in the
applicable Prospectus Supplement (the “Warrant Agent”); (ii) such Warrant
Agreement shall have been duly authorized, executed and delivered on behalf of
the Company; (iii) such Warrant Agreement shall be governed by the laws of the
State of New York; (iv) all terms of such Warrants shall have been established
in accordance with the provisions of such Warrant Agreement(s); (v) such
Warrants shall have been duly executed, issued and delivered in accordance with
the provisions of such Warrant Agreement(s); (vi) such Warrants and the related
Warrant Agreement(s), as executed and delivered, do not violate any law
applicable to the Company or result in a default under or breach of any
agreement or instrument binding upon the Company; and (vii) such Warrants and
the related Warrant Agreement(s), as executed and delivered, comply with all
requirements and restrictions, if any, applicable to the Company, in any case
whether imposed by any court or governmental or regulatory body having
jurisdiction over the Company.
To the
extent that the obligations of the Company under any Warrant or Warrant
Agreement may be dependent on such matters, we further have assumed for purposes
of this opinion that the Warrant Agent under each Warrant Agreement (i) is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization; (ii) is duly qualified to engage in the activities
contemplated by such Warrant Agreement; (iii) has duly authorized, executed and
delivered such Warrant Agreement, and such Warrant Agreement constitutes the
legally valid and binding obligation of such Warrant Agent, enforceable against
such Warrant Agent in accordance with its terms; (iv) is in compliance, with
respect to acting as a Warrant Agent under such Warrant Agreement, with all
applicable laws and regulations; and (v) has the requisite organizational and
legal power and authority to perform its obligations under such Warrant
Agreement.
With
respect to any Securities consisting of Debt Securities, we have further assumed
that: (i) such Debt Securities shall have been issued pursuant to an
indenture approved by us (individually, and as supplemented from time to time,
an “Indenture”) between the Company and a trustee to be identified in the
applicable Prospectus Supplement (the “Trustee”); (ii) such Indenture shall
have been duly authorized, executed and delivered on behalf of the Company;
(iii) such Indenture shall be governed by the laws of the State of New
York; (iv) all terms of such Debt Securities not provided for in such
Indenture shall have been established in accordance with the provisions of the
Indenture and reflected in appropriate documentation approved by us and, if
applicable, executed and delivered by the Company and the Trustee; (v) such
Debt Securities shall have been duly executed, authenticated, issued and
delivered in accordance with the provisions of such Indenture; (vi) such
Debt Securities, as executed and delivered, do not violate any law applicable to
the Company or result in a default under or breach of any agreement or
instrument binding upon the Company; and (vii) such Debt Securities, as
executed and delivered, comply with all requirements and restrictions, if any,
applicable to the Company, whether imposed by any court or governmental or
regulatory body having jurisdiction over the Company.
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China
Cord Blood Corporation
August
16, 2010
|
To the
extent that the obligations of the Company under an Indenture may be dependent
on such matters, we further have assumed for purposes of this opinion that the
Trustee under each Indenture (i) is duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization; (ii) is
duly qualified to engage in activities contemplated by such Indenture;
(iii) has duly authorized, executed and delivered such Indenture, and such
Indenture constitutes the legally valid and binding obligation of such Trustee,
enforceable against such Trustee in accordance with its terms; (iv) is in
compliance, with respect to acting as a trustee under such Indenture, with all
applicable laws and regulations; and (v) has the requisite organizational
and legal power and authority to perform its obligations under such
Indenture.
With
respect to any Securities consisting of Rights, we have further assumed that
(i) such Rights shall have been issued pursuant to a subscription agreement
approved by us (individually, and as supplemented from time to time, a “Rights
Agreement”) between the Company and a rights agent to be identified in the
applicable Prospectus Supplement (the “Rights Agent”); (ii) such Rights
Agreement shall have been duly authorized, executed and delivered on behalf of
the Company; (iii) such Rights Agreement shall be governed by the laws of
the State of New York; (iv) all terms of such Rights shall have been
established in accordance with the provisions of such Rights Agreement(s);
(v) such Rights shall have been duly executed, issued and delivered in
accordance with the provisions of such Rights Agreement(s); (vi) such
Rights and the related Rights Agreement(s), as executed and delivered, do not
violate any law applicable to the Company or result in a default under or breach
of any agreement or instrument binding upon the Company; and (vii) such
Rights and the related Rights Agreement(s), as executed and delivered, comply
with all requirements and restrictions, if any, applicable to the Company, in
any case whether imposed by any court or governmental or regulatory body having
jurisdiction over the Company.
To the
extent that the obligations of the Company under any Rights or Rights Agreement
may be dependent on such matters, we further have assumed for purposes of this
opinion that the Rights Agent under each Rights Agreement (i) is duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization; (ii) is duly qualified to engage in the activities contemplated by
such Rights Agreement; (iii) has duly authorized, executed and delivered such
Rights Agreement, and such Rights Agreement constitutes the legally valid and
binding obligation of such Rights Agent, enforceable against such Rights Agent
in accordance with its terms; (iv) is in compliance, with respect to acting as a
Rights Agent under such Rights Agreement, with all applicable laws and
regulations; and (v) has the requisite organizational and legal power and
authority to perform its obligations under such Rights Agreement.
We have
assumed valid issuance of the Securities in reliance on an opinion of Conyers
Dill & Pearman, filed as an Exhibit to the Registration
Statement.
|
China
Cord Blood Corporation
August
16, 2010
|
The
opinions set forth above are subject to the following exceptions, limitations
and qualifications: (i) the effect of bankruptcy, insolvency,
reorganization, arrangement, moratorium, fraudulent conveyance, fraudulent
transfer and other similar laws relating to or affecting the rights of
creditors; (ii) the effect of general principles of equity (including,
without limitation, concepts of materiality, reasonableness, good faith and fair
dealing and the possible unavailability of specific performance, injunctive
relief and other equitable remedies), regardless of whether considered in a
proceeding at law or in equity; and (iii) the effect of public policy
considerations that may limit the rights of the parties to obtain further
remedies.
We
express no opinion with respect to the enforceability of: (i) provisions
relating to choice of law, choice of venue, jurisdiction or waivers of jury
trial or (ii) any waiver of any usury defense. This opinion
letter is rendered as of the date hereof, and we disclaim any undertaking to
advise you of any subsequent changes in the facts stated or assumed herein or
any subsequent changes in applicable law that may come to our attention, and we
have assumed that no change in the facts stated or assumed herein or in
applicable law after the date hereof will affect adversely our ability to render
an opinion letter after the date hereof (i) containing the same legal
conclusions set forth herein and (ii) subject only to such (or fewer)
assumptions, limitations and qualifications as are contained
herein.
While
certain members of this firm are admitted to practice in certain jurisdictions
other than New York, in rendering the foregoing opinions we have not examined
the laws of any jurisdiction other than New York or consulted with members of
this firm who are admitted in any other jurisdictions other than New York with
respect to the laws of any other jurisdiction. Accordingly, the opinions we
express herein are limited to matters involving New York law.
We hereby
consent to the filing of this opinion letter with the Commission as Exhibit 5.2
to the Registration Statement in accordance with the requirements of Item
601(b)(5) of Regulation S-K under the Securities Act and to the reference to our
firm therein and in the Prospectus and any Prospectus Supplement under the
caption “Legal Matters.” In giving such consent, we do not thereby
admit that this firm is within the category of persons whose consent is required
under Section 7 of the Securities Act or the rules and regulations of the
Commission under such Section.
|
|
Very
truly yours,
|
|
|
|
|
|
|
|
/s/
Loeb & Loeb LLP
|
|
|
|
Loeb
& Loeb LLP
|
|
RATIO
OF EARNINGS TO FIXED CHARGES
CCBC’s
ratio of earnings to fixed charges for each of the periods indicated is set
forth below. We have derived the ratios of earnings to fixed charges from our
historical consolidated financial statements. The ratios should be read in
conjunction with our consolidated financial statements, including the notes
thereto, and the other financial information included or incorporated by
reference herein.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio
of earnings to fixed charges
|
|
|
19.2
|
|
|
|
30.1
|
|
|
|
194.2
|
|
We have
computed the ratios of earnings to fixed charges set forth above by dividing
earnings by fixed charges. For the purpose of determining the ratio of earnings
to fixed charges, earnings include income before income tax from continuing
operations plus fixed charges and subtract noncontrolling interest in income
before tax of subsidiaries that have not incurred fixed charges. Fixed charges
consist of interest on the short term loan and the estimated interest component
of operating lease expense. As of the date of this prospectus, we have no
preferred shares outstanding and have not declared or paid any dividends on
preferred shares for the periods set forth above.
Earnings:
|
|
|
|
RMB’000
|
|
|
|
|
|
|
|
|
|
Income
before income tax
|
|
|
79,663
|
|
|
|
42,299
|
|
|
|
135,702
|
|
Add:
Fixed charges
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest
expenses
|
|
|
2,431
|
|
|
|
-
|
|
|
|
-
|
|
Interest
component of operating lease expense (1)
|
|
|
1,944
|
|
|
|
1,453
|
|
|
|
696
|
|
Total
fixed charges
|
|
|
4,375
|
|
|
|
1,453
|
|
|
|
696
|
|
Less:
noncontrolling interest in income before tax of subsidiaries that have not
incurred fixed charges
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,255
|
)
|
Earnings
|
|
|
84,038
|
|
|
|
43,752
|
|
|
|
135,143
|
|
(1)
|
The
interest component of operating lease expense represents one-third of
rents, which is deemed representative of the interest component of
operating lease expense.
|
Exhibit 23.3
Consent
of Independent Registered Public Accounting Firm
The Board
of Directors
China
Cord Blood Corporation:
We
consent to the use of our reports dated July 15, 2010 with respect to the
consolidated financial statements and the effectiveness of internal control over
financial reporting incorporated by reference herein and in the registration
statement on Form S-4 (File No. 333-155579) and to the reference to our firm
under the heading “Experts” in the prospectus.
Our
report dated July 15, 2010, on the consolidated financial statements, contains
explanatory paragraphs that state (i) the Company completed a share exchange
with China Cord Blood Services Corporation (“CCBS”) on June 30, 2009 and the
share exchange has been accounted for financial reporting purposes as the
issuance of securities by CCBS in exchange for the assets and liabilities of the
Company, accompanied by a recapitalization. The consolidated
financial statements of the Company reflect CCBS’s assets and liabilities at
their historical carrying amounts. The results, assets and
liabilities of the Company presented in its consolidated financial statements
for periods prior to the completion of the share exchange are those of CCBS;
(ii) the Company established vendor-specific objective evidence of fair value
for the undelivered cord blood storage services during the year ended March 31,
2008, and began to account for cord blood processing services and storage
services as two separate units of accounting during that year; and (iii) the
Company has retroactively adopted the accounting standard for consolidation and
reclassified non-controlling interests as a component of equity, separately from
the equity attributable to the shareholders of the Company. Net
income and other comprehensive income are also attributed to the shareholders of
the Company and the non-controlling interests.
/s/ KPMG
Hong
Kong, China
August
16, 2010
Exhibit 23.4
Consent
of JunZeJun Law Offices
August
16, 2010
China
Cord Blood Corporation
48th
Floor, Bank of China Tower
1 Garden
Road
Central
Hong Kong
S.A.R.
Madams
and Sirs,
We
hereby consent to the use of our name under the captions “Enforceability of
Civil Liabilities”, “Legal Matters” and “Experts” in the registration
statement on Form F-3 (the “Registration Statement”) filed by China Cord Blood
Corporation (the “Company”) with the U.S. Securities and Exchange Commission
(the “
SEC
”) on or about
the date hereof under the United States Securities Act of 1933, as
amended (the “
Securities
Act
“), and under the captions “Risk Factors”, “History and Current
Business” and “Regulation” in the Annual Report on Form 20-F for the fiscal year
ended March 31, 2010, filed with the SEC on July 16, 2010, incorporated by
reference in the Registration Statement. In giving such consent, we do not
thereby admit that we come within the category of persons whose consent is
required under Section 7 of the Securities Act, or the regulations
promulgated thereunder.
Yours
faithfully,
/s/
JunZeJun Law Offices
JunZeJun
Law Offices
Exhibit
23.5
To the
Board of Directors
China
Cord Blood Corporation
CONSENT
OF FROST & SULLIVAN
Frost
& Sullivan hereby consents to the references to its name in China Cord Blood
Corporation’s Registration Statement on Form-3 to be filed with the U.S.
Securities and Exchange Commission. Frost & Sullivan also hereby consents to
the filing of this letter as an exhibit to the Registration
Statement.
Name:
Gavin Gerard Pathross
Title:
Director, Asia Pacific
Financial Services
Group
English
Summary of Securities Purchase Agreement dated February 24, 2010
Securities
Purchase Agreement
Seller: Glorysun
Holdings Group Limited
Buyer: China
Stem Cells (East) Company Limited
This
agreement is entered on February 24, 2010 between the following
parties.
Seller:
Glorysun Holdings Group Limited (“GH”), a validly existing limited company
registered and established in British Virgin Islands and incorporated in
accordance with British Virgin Islands law; its legal registered address is:
Palm Grove House, P.O. Box 438, Road Town, Tortola, BVI; its principal
representative and authorized agent is Ms. TANG Li, whose position is chairman
of the board.
Buyer:
China Stem Cells (East) Company Limited (“CSC”), a limited company established
in Hong Kong Special Administrative Region (“Hong Kong”) in accordance with the
laws of Hong Kong ; its legal registered address is 48
th
Floor,
Bank of China Tower, 1 Garden Road, Central, Hong Kong; its principal
representative and authorized agent is Ms. ZHENG Ting, whose position is
chairman of the board.
Whereas:
1. GH as
the currently controlling shareholder of Favorable Fort Limited, holding 100% of
Favorable Fort Limited’s shares; Favorable Fort Limited, through its wholly
owned Jinan Baoman Sci&Tech Dev Co. Ltd (“Baoman S&T”, a wholly owned
foreign enterprise incorporated and registered in China, its registered address
is Yinfeng Building, 11
th
Floor,
6 Liyang Avenue, Shizhong District, Jinan, its principal representative is Mr.
WANG Yong, who is the chairman of the board)legally and effectively hold 24% of
shares of Shandong Province Qilu Stem Cell Engineering Co. Ltd (“Qilu Stem Cell”
is a limited liability company incorporated and registered in China, its
registered address is 666 East Sunhua Road, Gaoxin Development District, Jinan,
its principal representative and authorized agent is Mr. SHENG Dewei, who is
chairman of the board) Qilu Stem Cell is mainly engaged in the business of
storing umbilical cord blood stem cells in mainland China and has the management
right and all the property rights of Shandong Province Umbilical
Blood-Generating Stem Cell Bank (“Shandong Blood Cell
Bank”). Shandong Blood Cell Bank has obtained “Blood Bank Operation
Permit” ( permit number No.1 [2009])issued by Shandong Province Health Bureau,
thus is authorized to engage in the collection, preparation, storage
and clinical application and technological development of umbilical cord blood
Stem Cells in Shandong province.
2. CSC is
mainly engaged in the equity investment in the storage businesses of
umbilical cord blood stem cells in mainland China.
3. CSC
desires to purchase 83% of all the issued and outstanding shares of Favorable
Fort Limited and desires to acquire and beneficially hold the corresponding
equity interest of Baoman S&T in order to acquire and beneficially hold
19.92% effective interest in Qilu Stem Cell through Baoman S&T
; GH agrees to transfer to CSC 83% of all the issued and outstanding
shares of Favorable Fort Limited.
Agreement
Provisions
1 Definitions
In this
Agreement, unless otherwise provided, the following terms have the definitions
as follows:
a) “Seller” is
GH.
b) “Buyer” is
CSC.
c) “Qilu Stem Cell” is
Shandong Qilu Stem Cell Engineering Co. Ltd
d) “Shandong Blood Cell
Bank” is Shandong Province Umbilical Blood-Generating Stem Cell
Bank whose management right and all the property rights are owned
by Qilu Stem Cell.
e) “Shares to be
Transferred” refers to 83% of all the issued and outstanding shares of Favorable
Fort Limited and all of their corresponding interests (including but not limited
to: profit that has not been distributed, surplus funds and contributed surplus,
etc) that the Seller beneficially owns and that are to be transferred
to the Buyer pursuant to this Agreement.
f) “Transaction Price” is
the aggregate amount equaling HK$ 159,360,000 to the Seller (or the Seller’s
Designee) , to be paid by the Buyer, directly or through a third party pursuant
to this Agreement, in order for the Buyer to complete the transaction
contemplated in this Agreement and realize and acquire the rights, interests and
Shares to be Transferred along with all the corresponding interests granted
under this Agreement.
g) “Delivery Day” is the
date provided by 2.5.3 herein.
h) “Undisclosed Debts” is
all the debts other than those specifically disclosed by the Seller to the Buyer
in written and itemized forms, delineating the actual circumstances of such
debts such as the amount(s), debt due date(s), structure process,
creditor(s) and nature, including but not limited to debts that are due, debts
that are not yet due, actual debts or potential debts.
i) “Business Day” is any day
on which Hong Kong banks open for business and provide general banking services,
excluding Saturdays and any days on which the tropical cyclone warning
signal number 8 or above or black rainstorm warning signal is hoisted
anytime in the period from 9:00 am to 5:00 pm (Hong Kong time).
j) “China” refers to PRC,
excluding, as far as this Agreement is concerned, Hong Kong, PRC Macao Special
Administration Region and Taiwan Province of PRC.
k) “Hong Kong” is Hong Kong
Special Administration Region of the PRC.
l) “Hong Kong Currency” is
the current legal currency in Hong Kong.
m) “Latest Practicable Date”
refers to any specified date on which, so far as any obligation or stipulated
action under this Agreement is concerned, it can be predicted that, judging by
the actual circumstances of the time point, based on general and reasonable
knowledge, such obligation or stipulated action is in the situation to be or can
probably be performed, executed or realized.
2 Transfer
of Shares
2.1 Transaction
Background and Summary
2.11 Transaction
Background:
(1) On the execution date of this
Agreement, Favorable Fort Limited (“Favorable Fort Limited”)is a validly
existing limited company registered and established in Hong Kong in accordance
with the laws of Hong Kong; it does not have any real business or debt and is
solely engaged in the investment in, and the holding of, Jinan Baoman
Sci&Tech Dev Co. Ltd (“Baoman S&T”), with all of its issued shares owned
by GH.
(2) On the execution date of this
Agreement, Shandong Qilu Stem Cell Engineering Co. Ltd (“Qilu Stem
Cell”) is a limited liability company registered and established in mainland
China in accordance with the laws of China; its registered capital is RMB
50,000,000 and it is mainly engaged domestically in the storage business of cord
blood stem cells and owns the management right and all the property rights of
Shandong Province Umbilical Cord Blood-generating Stem Cell Bank (“Shandong
Blood Cell Bank”). “Shandong Blood Cell Bank” has obtained “Blood Bank Operation
Permit” (Permit number No.1 [2009]) issued by Shandong Province Health Bureau,
thus is authorized to engage in the collection, preparation, storage
and clinical application and technological development of umbilical cord blood
stem cells in Shandong province.
(3) On the execution date of this
Agreement, Baoman S&T is a validly existing wholly owned foreign enterprise
with “Business Legal Person Operation Permit”(license number: 370100000030271)),
“Certificate of Approval for Establishment of Enterprise with Foreign
Investment” issued by Shandong Commerce and Business Bureau and “Foreign
Currency Registration Certificate”. On the execution date of this
Agreement, all of Baoman S&T’s registered capital has been paid in full and
has been verified according to law by the certified capital verification agency,
and all of Baoman S&T’s equity is owned by Favorable Fort Limited and Baoman
S&T does not have any debts or obligations prior to the Delivery
Day.
(4) On the execution date of this
Agreement, Baoman S&T owns 24% of Qilu Stem Cell’s equity; Shandong Yinfeng
Investment Group Co. Ltd (a validly existing limited liability company
registered and established in mainland China, its address is 6 Liyang Ave,
Shizhong District, Jinan, Shandong Province) (“Yinfeng Investment”) owns 54% of
Qilu Stem Cell’s equity. Up to the date of execution of this Agreement, Yinfeng
Investment is the controlling shareholder of Qilu Stem Cell and the leader for
its operations.
(5) Pursuant to the terms and
conditions of this Agreement, the Buyer will purchase the 83% of the shares of
Favorable Fort Limited’s stock and all of the corresponding rights owned by GH,
in order to acquire and beneficially hold 19.92% effective interest in Qilu Stem
Cell’s registered capital (all of the equity is the paid-in-full and actually
received equity), and directly and indirectly acquire the corresponding
ownership right of Shandong Blood Cell Bank.
(6) On the execution date of this
Agreement, CSC’s incorporation and registration are valid and effective, and all
the relevant incorporation and registration fees due have been paid; CSC has
obtained and continuously hold all the permits, approvals, certificates,
authorizations, exemptions, consents and recognitions required for its
business.
2.1.2 Objective
of the Transaction
The Buyer
desires, through the Transaction under the terms and conditions of this
Agreement, to acquire and beneficially own an amount of shares which
is equivalent to 19.92% effective in Qilu Stem Cell’s registered capital, and
directly and indirectly acquire the corresponding ownership right of Shandong
Blood Cell Bank; and to obtain assurance and lawful guarantee issued by Yinfeng
Investment (as the controlling shareholder of Qilu Stem Cell) to the other
shareholders and the Buyer of Qilu Stem Cell with regard to shareholder income
from Qilu Stem Cell and its umbilical blood stem cell commercial storage
business.
2.1.3 Transaction
Summary
Based on
the terms and conditions under this Agreement, the Seller as the beneficial
owner of the Shares to be Transferred, agrees to sell and transfer to the Buyer,
and the Buyer, based on the statements, representations, undertakings and
warranties made and given under this Agreement, agrees to purchase, and receive
the transfer of, the Shares to be Transferred and pay to the Seller the
Transaction Price. The Seller further agrees to and
accept the holding of the Shares to be Transferred by the Buyer or
its designee. The Seller guarantees and undertakes that the Shares to
be Transferred (and all of the domestic equity of the object of transaction) (i)
are wholly and beneficially owned by the Seller, (ii) do not have any mortgage,
pledge, disposition right, property guarantee or any other form of interests or
subject to rights or claims owned by any third party, and (iii) carry, from the
date of execution of this Agreement, all the existing rights or rights
attached thereafter or additional rights, including but not limited to all the
undistributed profits, all kind of public reserve funds and funds, regardless
whether such profits are generated before or after the execution of this
Agreement.
2.2 Notwithstanding
the forgoing, upon execution of this Agreement, the Seller shall not, until all
provisions of the Agreement have been carried out or come to an end, through any
action or omission, reduce the value of the Shares to be Transferred,
the equity of Baoman S&T and the equity of Qilu Stem Cell (including
Shandong Blood Cell Bank) and the value of Qilu Stem Cell’s business
operation.
2.3 All
parties unanimously agree that each party will carry out the delivery after all
of the following conditions have been satisfied or completed:
Yinfeng
Investment has issued, to other shareholders of Qilu Stem Cell, written
undertaking, guaranteeing to the Buyer (through Favorable Fort Limited and
Baoman S&T) that the actual dividend derived from Qilu Stem Cell, during the
year 2010 (“Profit Commitment Period”) shall be no less than RMB 8,520,000.00
(approximately HK$9,680,000.00). The Seller states and commits to the
Buyer in the provisions under this Agreement: Yinfeng Investment has issued
consent in written form to complement the difference, to Baoman S&T, between
the aforementioned guaranteed minimum profit and actual dividend derived from
the profit distribution by Qilu Stem Cell; in the event that Yinfeng Investment
fails to complement the difference in full, the Seller shall complement the
difference.)
2.4 Consummation
of Transaction
2.4.1
The Seller agrees to sell to the Buyer its holding of Shares To Be
Transferred.
2.4.2 The
Seller must, on the Delivery Day, carry out the delivery at 48
th
Floor,
Bank of China Tower, 1 Garden Road, Central, Hong Kong(or at an alternative
address agreed upon by all parties). On the Delivery
Day, the Seller of Shares to Be Transferred the following documents
and certificates and transfer the Shares to be Transferred under this Agreement
in accordance with the “Company Rules” to the Buyer and register Shares to be
Transferred under the Buyer’s name:
(1) [English
summary is omitted]
(2) [English
summary is omitted]
(3) [English
summary is omitted]
(4) [English
summary is omitted]
(5) [English
summary is omitted]
(6) [English
summary is omitted]
(7) [English
summary is omitted]
(8) [English
summary is omitted]
(9) [English
summary is omitted]
(10) [English
summary is omitted]
(11) [English
summary is omitted]
2.5 Transaction
Price
2.5.1 The
Transaction Price under this Agreement is HK$159,360,000.00.
2.5.2 The
Buyer shall pay to the Seller HK$80,000,000.00 within 10 Business Days upon the
effectuation of this Agreement, and shall pay to the Seller the balance of
HK$79,360,000.00 within 30 Business Days upon the effectuation of this
Agreement.
2.5.3 The
Seller shall complete the delivery stipulated in section 2.4.2 of this Agreement
within 60 business days upon receiving all of the Transaction
Price.
3. Debt
Obligations
The Seller has obligation to bear and
pay all and any part of the undisclosed debts of Favorable Fort
Limited, Baoman S&T and Qilu Stem Cell (including Shandong Blood Cell Bank),
regardless whether such undisclosed debts are discovered before or after the
delivery; GH shall make full compensation for any loss suffered by Qilu Stem
Cell and for any settlement, payment or compensation that Qilu Stem Cell has to
make as a result of the undisclosed debts in order to ensure that the Buyer,
beneficial equity representative, Favorable Fort Limited, Baoman S&T and
Qilu Stem Cell (including Shandong Blood Cell Bank) will not actually bear such
loss, damage, debts, risk and obligations.
4. The
Seller’s Statements, Representations and Warranties
4.1 Based
on the Buyer’s commitment to execute this Agreement, the Seller thereby states,
represents and warrants to the Buyer as follows:
4.1.1 All
the matters stated in this Agreement are correct and accurate;
4.1.2 The
information and materials provided by the Seller to the Buyer during the due
diligence, discussion and negotiation in connection with the execution of this
Agreement are true, complete and accurate;
4.1.3 The
Seller states, represents and warrants as follows:
(1) The
Seller is the sole beneficial owner, and the sole legal holder recognized by the
laws of Hong Kong, of the Shares to be Transferred, has the legal,
complete, valid and absolutely exclusive disposition right on the Shares to be
Transferred, has the necessary power and authorization to
execute and perform this Agreement, and can deliver the Shares to be
Transferred, without additional condition, without reservation, completely,
legally and effectively, to the Buyer;
(2) As
of Delivery Day, other than engagement in the investment in, and the holding of,
Baoman S&T, Favorable Fort Limited has no other actual business and
debts. Favorable Fort Limited is the sole beneficial owner of all of
Baoman S&T’s equity and is the sole legal holder recognized and
protected by PRC law, has the legal, complete, valid and absolutely
exclusive disposition right on all of Baoman S&T’s equity; on Delivery Day,
there is no mortgage, pledge, disposition right, property guarantee or any other
form of interests or rights orclaims by any third party on all or any part of
Baoman S&T’s equity;
(3) The
execution and performance of this Agreement by the Seller will not cause itself
to violate the charter of Favorable Fort Limited and any other law, statutes,
judicial or administrative order, arbitration or judgment by which it is bound,
or any agreement it has executed, or any commitment it has made to any third
party, and will not cause any entity to claim to itself and Favorable Fort
Limited, individually or collectively, that this Agreement is invalid, or claim
any right, award or payment for breach of contract against Favorable Fort
Limited or to attach any right or right restriction to the Shares to be
Transferred;
(4) The
Seller has obtained the resolution of the Board or of the shareholders of
Favorable Fort Limited and other required internal corporate approvals in
connection with the transfer of the Shares to be Transferred;
(5) No
part of Shares to be Transferred has any ownership disputes, and there are no
options right, purchase right, right of first refusal, option, escrow, trust,
mortgage and mortgage payment, pledge, withholding or any rights and right
restrictions in any other form or any other debt obligations, nor is any part of
Shares to be Transferred affected, bound or restricted by any of the
aforementioned rights; currently there are no agreements or
commitments to attach or to add any of the aforementioned rights; currently none
of the aforementioned rights have not been exempted or settled to
lead to a situation in which any person can make a claim.
(6) The
establishment and registration of Favorable Fort Limited and Baoman S&T are
legal and valid, and the fees in connection with the establishment and
registration have been paid, and Favorable Fort Limited and Baoman S&T have
obtained and continuously hold all the permits, approvals, certificates,
authorization, exemptions, consents and recognitions required for
conducting their business legally and effectively in their
current operation form. The operation of Favorable Fort Limited and
Baoman S&T, since their establishments, have been in compliance to the
requirements of the laws and statutes of Hong Kong and of PRC. To the
best of Seller’s knowledge, as of the execution date of this Agreement, there is
no situation indicating that any of Favorable Fort Limited’s and Baoman
S&T’s permits, approvals, certificates, authorization, exemptions, consent
and recognition will be or is likely to be completely or partially revoked or
will not be renewed (irrespective of whether it is the result of this Agreement
or of any other cause);
(7) Favorable
Fort Limited and Baoman S&T have been operating, in each of the material
aspects, in accordance with the company charter and all the applicable laws and
regulations effective from time to time and with the applicable laws
of the country or region in which they are registered and operate. Favorable
Fort Limited and Baoman S&T have not violated or been in conflict
with, any rules, statutes, regulations, orders, judicial orders or judgments
from any courts or government organizations.
(8) Claims
and debt obligations: other than what has been disclosed, prior to the execution
date of this Agreement, to the Buyer in special written letter (the receipt of
which has been acknowledged by the Buyer) or in this Agreement as well as what
is required by the normal operation:
(a) From
the date of establishments of Favorable Fort Limited and Baoman S&T to the
Delivery Day, Favorable Fort Limited and Baoman S&T have not entered into
any bank loan or guarantee agreement;
(b)
As of the Delivery Day, Favorable Fort Limited and Baoman S&T do not have
any outstanding loan, debts or any other debt obligations to any bank,
corporation or other person;
(c) As
of the Delivery Day, Favorable Fort Limited and Baoman S&T have not issued
any guarantee in any form to any person or corporation;
(d) Other
than normal and reasonable amount (any individual item of which does not exceed
RMB 10,000 (or the equivalent thereof), and the total of which does not exceed
RMB 20,000) of advanced business travel expenses, as of the Delivery Day,
Favorable Fort Limited and Baoman S&T have not lent any money to any unit or
individual;
(9) On
the Delivery Day, Favorable Fort Limited and Baoman S&T do not owe any
debts, or potential debt, unsettled debt obligation or liability (actual or
potential) to the Seller, any director of Favorable Fort Limited or Baoman
S&T or any company affiliated with the Seller or any of its directors or any
independent third party (except for the Buyer and its affiliates); nor does any
of aforementioned person or company owe any debt to Favorable Fort Limited and
Baoman S&T;
(10) Favorable
Fort Limited and Baoman S&T have not been involved in any major lawsuits,
arbitration or disputes; the facts that the Seller are aware of will not
possibly cause any lawsuits, arbitrations or disputes or any payment obligations
(with the exception of payments incurred in day-to-day
operations). Currently, there are no pending judgments or court
orders against Favorable Fort Limited or Baoman S&T that will result in
Favorable Fort Limited or Baoman S&T being the losing party or that will
have substantial adverse impact on Favorable Fort Limited or Baoman
S&T being a going concern. Favorable Fort Limited and
Baoman S&T have not committed, or been suspected of, any criminal acts, have
not breached any contracts or any legal obligations, nor have they committed any
tortious act or any illegal act or any unauthorized act, such that such act will
cause, or potentially will cause, the reduction of value of Favorable
Fort Limited’s and Baoman S&T
’
s
assets;
(11) The
Seller agrees to cause and to ensure that , during the period from the execution
date of this Agreement to the Delivery Day, there will be no distribution of
profit, issuance of dividends, self-beneficial and exclusive withdrawal from
excess capital reserve or profit reserve, or transfer of equity through profit,
excess public reserve or capital reserve. The Seller also agrees to
ensure that Favorable Fort Limited is entitled to all of Baoman S&T’s the
undistributed profit, excess public reserve and capital reserve as
of the execution date of this Agreement and prior to the Delivery Day
respectively; Baoman S&T is entitled to all of Qilu Stem Cell’s the
undistributed profit, excess public reserve and capital reserve as
of the execution date of this Agreement and prior to the Delivery Day
respectively;
(12) The
company charters of Favorable Fort Limited, Baoman S&T and Qilu Stem Cell
and the legal documents by which the Seller, Favorable Fort Limited, Baoman
S&T and Qilu Stem Cell are bound do not contain provisions, arrangements,
contents or situations that restrict, exclude, dilute, deprive or may restrict
or may exclude or may dilute or may deprive the Buyer or beneficial equity
representatives of the shareholder rights, power or interests (including but not
limited to: right to the distribution of profit according to the ratio of their
shareholdings, voting right, right to the remaining assets, right to nominate
directors, right to nominate senior management officers, or the rights of first
refusal with regard to receiving the company’s shares and with regard to the
increase of the company’s shares/capital) to which the Buyer or beneficial
equity representatives are entitled.
(13) There
has been, and will have, no material adverse change, during the period from the
execution date of this Agreement up to one year thereafter, to the due
diligence investigation and verification result, situations and
circumstances with regard to the financial situations (including
subsequent matters as of the Latest Practicable Date) of Favorable Fort Limited,
Baoman S&T and Qilu Stem Cell (including Shandong Blood Cell Bank) as of
December 31, 2009 and with regard to the legal matters (“Legal and Financial
Verification”) as of Latest Practicable Date;
(14) There
has been no person taking any action against the Seller to liquidate the Seller,
declare the Seller bankrupt or insolvent or to appoint liquidation committee
regarding its assets or business, or to launch, or threaten to launch, any legal
proceedings for the above purposes.
4.1.4 Baoman
S&T has already registered its 24% equity of Qilu Stem Cell with Shandong
Province Industry and Commerce Administration Bureau; on the Delivery Day, no
part of the equity of Qilu Stem Cell under the transaction has any mortgage,
pledge, disposition right, property guarantee or any other form of interests or
rights or claims owned by any third party;
(1) The
part of the equity of Qilu Stem Cell under the transaction has been issued in
accordance with Qilu Stem Cell’s charter and with all the applicable laws and
has been paid in full. No part of the equity of Qilu Stem Cell under
the transaction has any options rights, purchase right, right of first refusal,
option, escrow, trust, mortgage and mortgage payment, pledge, withholding or any
rights and right restrictions in any other form or any other debt obligations,
nor is any part of part of the equity of Qilu Stem Cell under the transaction
affected by any of the aforementioned rights; currently there are no agreements
or commitments to attach or to add any of the aforementioned rights; Qilu Stem
Cell does not have any unfulfilled options agreement or any other agreements
providing for the issuance of, or for the authorization to issue, any shares of
Qilu Stem Cell’s capital, capital, security or debt, or providing for
authorization or approval for anyone to attach any mortgage payment, pledge,
disposition right or any other property guarantee to any of Qilu Stem
Cell’s shares, capital or interest (including Qilu Stem Cell’s equity under the
transaction);
(2) Baoman
S&T’s ownership of the equity of Qilu Stem Cell under the
transaction has obtained approval, verification, filing receipts,
registration, exemption and authorization from the competent Chinese government
organizations;
(3) On
and prior to the Delivery Day, Qilu Stem Cell always and absolutely has had
legal and effective ownership of all of Shandong Blood Cell Bank’s
management rights and property rights;
(4) On
and prior to the Delivery Day, Qilu Stem Cell has legally and effectively
obtained ownership right to all the allogeneic umbilical blood-generating stem
cells currently in actual storage with Shandong Blood Cell Bank and all the
contractual interest under the storage contract by which Qilu Stem Cell’s legal
representative entrusted the storage of the aforementioned allogeneic umbilical
blood-generating stem cells, including but not limited to: charging storage
fees, examination fee and other interests under the provisions of the contract,
and have received, and have at its disposal, all the amount that has already
been collected under the provisions of the storage contract; and completely have
sufficient and reasonable justification to believe and project that, after the
Delivery Day, Qilu Stem Cell will continue as an operator of the commercial
business of storing allogeneic umbilical blood-generating stem cells, develop
such business, and enter into and carry out storage contracts with more owners
of allogeneic umbilical blood-generating stem cells and charge, among others,
storage fees and examination fees;
(5) Qilu
Stem Cell (including Shandong Blood Cell Bank) has obtained and continuously
hold all the permits, approvals, certificates, authorization, exemptions,
consent and recognition required for operating effectively its business at its
business location in its current form of operation. There is no
situation indicating that any of Qilu Stem Cell (including Shandong Blood Cell
Bank)’s permits, approvals, certificates, authorization, exemptions, consent and
recognition (including “Business Legal Person Operation Permit”, “Blood Bank
Operation Permit” and “Tax Registration Certificate”) will be or is likely to be
completely or partially revoked or will not be renewed (irrespective of whether
it is the result of this Agreement or of any other cause);
(6) Qilu
Stem Cell has been in compliance with the company charter and all the applicable
laws and regulations, and with the applicable laws of the country or
region in which they are registered and operate. Qilu Stem Cell have
not violated or been in conflict with, any rules, statutes, regulations, orders,
judicial orders or judgments from any courts or government
organizations;
(7) Qilu
Stem Cell and Shandong Blood Cell Bank, in their course of conducting business,
have not posed an threat or potential threat, or any risk or potential risk, to
the safety, completeness, effective and actual application value of the object
under storage (including but not limited to: umbilical blood and
blood-generating stem cell) or to the life and health of the transplant
recipient or the person with the ownership right; will not harm the life,
health, safety, ownership right or other interests of the persons with ownership
right to umbilical blood, entrustors, clinical medical organizations, patients
or their close family members; will not cause any claims, rights demand, rights
claims or any liabilities for compensations, breach of contract or
burden of obligation according to law from any organization or any individual
that will result in Qilu Stem Cell being the losing party in a judgment or in
consequences suffered by Qilu Stem Cell that will have substantial
adverse impact on its being a going concern, its continuing ability to generate
profit and to hold operation permit, its current balance sheet or its operating
income.
(8) The
statutory financial books and accounts and other records set up and maintained
by Qilu Stem Cell in accordance with applicable Chinese law have been updated
from time to time and have been in compliance with Chinese legal and accounting
practices: (i) have been kept in the appropriate manner; and (ii) contain
complete and accurate records of matters that must be processed, and Qilu Stem
Cell has not received any notices or claims regarding the inaccuracy of such
records and the need for rectification. The financial books provided
by the Seller to the Buyer are formulated according to Chinese generally
accepted accounting practices and rules, including applicable accounting
practice standards. Such records, on the day of their being made by
Qilu Stem Cell, have accounted for the adequate reserves allocated for all the
relevant actual and undetermined debts and have been in compliance with
applicable provisions of Chinese legislation. There has been no
material change to Qilu Stem Cell’s financial situation from the day of its
obtaining “Blood Bank Operation Permit” to the time of execution of this
Agreement (and the Delivery Day).
(9) Qilu
Stem Cell have not been involved in any major lawsuits, arbitration or disputes
or been under any payment obligation caused by the aforementioned major
lawsuits, arbitration or disputes; currently there are no major pending
judgments or court orders against Qilu Stem Cell. Qilu Stem Cell have
not committed, or been suspected of, any criminal acts, have not breached any
contracts or any legal obligations, nor have they committed any act of copy
right violation or illegality or any unauthorized act, such that such act will
cause, or potentially will cause, the reduction of the net value
of Qilu Stem Cell ‘s assets;
(10) Since the execution of this
Agreement to the Delivery Day (including the Delivery Date), neither Qilu Stem
Cell, Baoman S&T nor Favorable Fort Limited has issued, in any form, to its
registered shareholders or any other entity other than its registered
shareholders, any new shares, replenishment, offering or issued any convertible
debenture.
4.2 The
guarantee stated in each and every provision in this section shall be considered
reiterated on the Delivery Day and the Effective Day. Each and every
guarantee stated in this section is true and accurate on during the period
covered by this Agreement, on the Delivery Day and on Effective
Day.
5. Certain
Undertakings and Warranties
5.1 The
Seller undertakes and warrants to the Buyer: prior to the execution date of this
Agreement, Qilu Stem Cell’s controlling shareholder—Yinfeng Investment has
issued to Baoman S&T written undertakings and warranties, whereas, the Qilu
Stem Cell’s operation is controlled and directed by Yinfeng Investment; whereas,
the equity of Qilu Stem Cell held by Qilu Stem Cell and its shareholders
(including Baoman S&T) is completely based on the faith in the undertaking,
made by its controlling shareholder--Yinfeng Investment, for investment return
and growth rate and for the high rate of development and abundance of
profit. Therefore, Yinfeng Investment promises that the actual
dividend received by Baoman S&T from Qilu Stem Cell for year 2010 (“Profit
Guarantee Period”) will be not be less than RMB 8,520,000.00 (approximately HK$
9,680,000.00); Yinfeng Investment has issued consent and undertaking in written
form to supplement Baoman S&T in full for any difference (if any) between
the minimum profit promised by Yinfeng Investment and the actual dividend
received from Qilu Stem Cell. Furthermore, the Seller hereby
undertake, in the event that Yinfeng Investment fails to fulfill the
aforementioned undertaking regarding the minimum profit, to pay to the Buyer the
full amount corresponding to the difference between the minimum profit under the
aforementioned undertaking and the actual dividend received by Baoman
S&T from Qilu Stem Cell.
5.2 The
Seller undertakes and warrants to the Buyer: prior to the execution date of this
Agreement, Qilu Stem Cell’s controlling shareholder—Yinfeng Investment has
issued to Baoman S&T written undertaking and warranty that, at the time of
the transfer of equity by any of Qilu Stem Cell’s shareholders, Baoman S&T
has the right of first refusal and that only when Baoman S&T waives its
right of first refusal can Yinfeng Investment exercise its preferred right of
transferee.
6. GH’s
Warranty Obligation Under This Agreement
GH agrees
and undertakes that it bears joint liability for and guarantees all the
obligations to carry out and/or fulfill the terms, promises and all legal
responsibilities under this Agreement and under other documents with Qilu Stem
Cell (including Shandong Blood Cell Bank).
7. Liability
for Breach of Contract
7.1 If
for any reason not attributable to the Buyer, the Seller unilaterally decides to
terminate or dissolve this Agreement, or refuses to carry out the obligation to
transfer and deliver the Shares to be Transferred, the Seller shall compensate
the Buyer for any resulting loss.
7.2 If
for any reason not attributable to the Seller, the Buyer unilaterally decides to
terminate or dissolve this Agreement, or refuses to carry out the obligation to
make payment for the Transaction Price, the Buyer shall compensate the Seller
for any resulting loss.
7.3 If
this Agreement is terminated or dissolved for reasons set forth in provisions
7.1 and 7.2, the two parties to this Agreement agree to respectively reinstate
the equity and shareholding status prior to the execution of this Agreement
within 60 business days and to each bear the tax expenses incurred; the two
parties and the equity representatives designated by the Buyer cannot pursue the
other party for any reason for liability for breach of contract and cannot
submit any arbitration or legal proceedings against the other
party.
7.4 If
for any reason on the Buyer’s part causing the Buyer to delay the payment for
the Transaction Price, for each day delayed, the Buyer shall pay to the
Seller 0.021% of the amount of payment delayed as damages; if the
payment for the amount is delayed for more than 90 days, the Seller has the
right to terminate this Agreement and the Buyer shall bear the obligation for
reparation. The Buyer shall return all the actual
profit received from distribution prior to the termination of this
Agreement to the Seller. If the Seller terminates this Agreement
pursuant to the aforementioned provision, the Buyer shall, in addition to
returning the Shares to be Transferred already received, make an additional
payment of HK$ 3,000,000.00 to the Seller as damages for actual breach of
contract. After receiving in full all of the damages, the Seller
shall return to the Buyer all of the amount of Transaction Price already
received.
7.5 If
for any reason on the Seller’s part causing the Seller to delay the completion
of delivery, for each day delayed, the Seller shall pay to the
Buyer 0.021% of the total of the Transaction Price as breach
penalty; if the completion of the delivery is delayed for more than
90 days, the Buyer has the right to terminate this Agreement and the Seller
shall bear the obligation for reparation. All the profit received by
the Buyer prior to the termination of this Agreement shall belong to the
Buyer. If the Buyer terminates this Agreement pursuant to the
aforementioned provision, the Seller shall, in addition to returning all the
amount of the Transaction Price already received, make an additional payment of
HK$ 3,000,000.00 to the Buyer as damages for actual breach of
contract.
7.6 If
Yinfeng Investment fails to carry out its obligation to Baoman S&T for
guaranteeing minimum profit and the Seller also fails to carry out
its obligation under this Agreement to make up for the shortfall of the minimum
profit, the Buyer has the right to terminate this Agreement and the Seller shall
bear the obligation for reparation. All the profit received by the
Buyer prior to the termination of this Agreement shall belong to the
Buyer. If the Buyer terminates this Agreement pursuant to the
aforementioned provision, the Seller shall, in addition to returning all the
amount of the Transaction Price already received, make an additional payment of
HK$ 3,000,000.00 to the Buyer as damages for actual breach of
contract. After receiving in full all of the damages, the Buyer shall
return to the Seller all of the Shares to be Transferred already
received.
7.7 Both
the Buyer and the Seller undertake: on the execution day of this Agreement, each
has complete knowledge of all the applicable laws, statutes and policies, and
each will not claim breach of liability against the other for invalidation,
termination and dissolution of this Agreement caused by probable conflicts
between this Agreement and any laws, statutes and policies.
8. Confidentiality
[English
summary of Confidentiality provisions is omitted]
9.
Force Majeure
[English
summary of Force Majeure provisions is omitted]
10. Other
Warranty
The
Seller agrees to execute, fulfill and cause, when necessary, any third party to
execute and fulfill all other agreements and contracts, documents, warranties,
actions and matters required for the effectuation of this Agreement in order for
the Buyer to receive all the equity under the provisions of this Agreement
(including Shares to be Transferred) unencumbered by any adverse conditions such
as withholding, mortgage, option rights and asset right
liabilities.
11. The
Agreement
[English
summary of The Agreement provisions is omitted]
12. Waiver
of Rights
[English
summary of Waiver of Rights provisions is omitted]
13. Complete
Understanding
[English
summary of Complete Understanding provisions is omitted]
14. Sending
Notices
All the
notices or demand for payment or any other correspondence regarding the
provisions of this Agreement shall be issued in written form in Chinese and must
be delivered to the recipients at the addresses set forth as below or to any
other recipients at addresses designated pursuant to the provisions of this
Agreement:
[English
summary of Sending Notices provisions is omitted]
15. Receipt
[English
summary of the Receipt provisions is omitted]
16. Applicable
Laws and Jurisdiction
16.1 This
Agreement and the rights and obligations of the parties hereto provided herein
are subject to legal jurisdiction of Hong Kong and are to be interpreted
according to the laws of Hong Kong.
16.2 The
parties to this Agreement irrevocably and unconditionally agree to follow
non-exclusive jurisdiction of Hong Kong courts and appellate
courts. The parties hereto agree to waive the opposition rights with
regard to declaring inconvenience of the manner of pursuing legal actions in the
aforementioned courts or to declaring that such courts have no
jurisdiction; the parties hereto also agree that any judgment with
regard to the aforementioned legal actions from such courts is final and cannot
be overturned and can be forcefully enforced in other
jurisdictions, and agree that the notarized copies, or other valid
copies produced in other manners, of the aforementioned judgment are to be
regarded as the decisive proof with respect to the matters contained
therein.
[English
summary of other Applicable Laws and Jurisdiction provisions is
omitted]
This
Agreement has been executed by each of the parties hereto or by their duly
authorized representative(s).
By:
Representing:
Glorysun
Holdings Group Limited
Signature
and Seal
Witness’s
Signature:
Witness’s
Name:
By:
Representing:
China
Stem Cells (East) Company Limited
Signature
and Seal
Witness’s
Signature:
Witness’s
Name: