FORM OF SUBORDINATED INDENTURE

Exhibit 4.10

FORM OF

SUBORDINATED INDENTURE

by and between

PAR PHARMACEUTICAL COMPANIES, INC.

as Issuer,

and

_____________________,

as Trustee

Dated as of ______________

 

 

 

 

 

 

TABLE OF CONTENTS

 

	Page
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01 Definitions	1
SECTION 1.02 Incorporation by Reference of Trust Indenture Act	5
SECTION 1.03 Rules of Construction	5
ARTICLE II THE SECURITIES
SECTION 2.01 Unlimited in Amount, Issuable in Series	5
SECTION 2.02 Form and Dating	7
SECTION 2.03 Execution and Authentication	7
SECTION 2.04 Registrar and Paying Agent	8
SECTION 2.05 Paying Agent to Hold Assets in Trust	8
SECTION 2.06 Holder Lists	9
SECTION 2.07 General Provisions Relating to Transfer and Exchange	9
SECTION 2.08 Book-Entry Provisions for Global Securities	10
SECTION 2.09 Replacement Securities	10
SECTION 2.10 Outstanding Securities	11
SECTION 2.11 Treasury Securities	11
SECTION 2.12 Temporary Securities	11
SECTION 2.13 Cancellation	12
SECTION 2.14 CUSIP Numbers	12
SECTION 2.15 Defaulted Interest	12
SECTION 2.16 Special Record Dates	12
ARTICLE III REDEMPTION
SECTION 3.01 Notices to Trustee	12
SECTION 3.02 Selection of Securities to Be Redeemed	13
SECTION 3.03 Notice of Redemption	13
SECTION 3.04 Effect of Notice of Redemption	13
SECTION 3.05 Deposit of Redemption Price	14
SECTION 3.06 Securities Redeemed in Part	14
SECTION 3.07 Holder's Right to Require Redemption	14
SECTION 3.08 Procedure for Requiring Redemption	14
ARTICLE IV COVENANTS
SECTION 4.01 Payment of Securities	14
SECTION 4.02 Maintenance of Office or Agency	15
SECTION 4.03 Reports	15
SECTION 4.04 Compliance Certificate	15
SECTION 4.05 Taxes	16
SECTION 4.06 Corporate Existence	16
ARTICLE V MERGER, ETC.
SECTION 5.01 When Company May Merge, etc.	16
SECTION 5.02 Successor Corporation Substituted	16
ARTICLE VI DEFAULTS AND REMEDIES
SECTION 6.01 Events of Default	17
SECTION 6.02 Acceleration	18
SECTION 6.03 Other Remedies	18
SECTION 6.04 Waiver of Past Defaults	18
SECTION 6.05 Control by Majority	18

 

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SECTION 6.06 Limitation on Suits	19
SECTION 6.07 Rights of Holders To Receive Payment and to Demand Conversion	19
SECTION 6.08 Collection Suit by Trustee	19
SECTION 6.09 Trustee May File Proofs of Claim	19
SECTION 6.10 Priorities	20
SECTION 6.11 Undertaking for Costs	20
SECTION 6.12 Stay, Extension and Usury Laws	20
SECTION 6.13 Restoration of Positions	20
SECTION 6.14 Liability of Stockholders, Officers, Directors and Incorporators	21
ARTICLE VII TRUSTEE
SECTION 7.01 Duties of Trustee	21
SECTION 7.02 Rights of Trustee	22
SECTION 7.03 Individual Rights of Trustee	23
SECTION 7.04 Money Held in Trust	23
SECTION 7.05 Trustee’s Disclaimer	23
SECTION 7.06 Notice of Defaults	23
SECTION 7.07 Reports by Trustee to Holders	23
SECTION 7.08 Compensation and Indemnity	23
SECTION 7.09 Replacement of Trustee	24
SECTION 7.10 Successor Trustee by Merger, Etc.	25
SECTION 7.11 Eligibility; Disqualification	25
SECTION 7.12 Preferential Collection of Claims Against the Company	25
ARTICLE VIII DISCHARGE OF INDENTURE
SECTION 8.01 Satisfaction and Discharge of Indenture	25
SECTION 8.02 Application of Trust Funds; Indemnification	26
SECTION 8.03 Legal Defeasance	26
SECTION 8.04 Covenant Defeasance	27
SECTION 8.05 Repayment to Company	28
SECTION 8.06 Reinstatement	28
ARTICLE IX AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01 Without Consent of Holders	29
SECTION 9.02 With Consent of Holders	29
SECTION 9.03 Compliance with Trust Indenture Act	30
SECTION 9.04 Revocation and Effect of Consents	30
SECTION 9.05 Notation on or Exchange of Securities	31
SECTION 9.06 Trustee to Sign Amendment, etc.	31
ARTICLE X CONVERSION OR EXCHANGE OF SECURITIES
SECTION 10.01 Provisions Relating to Conversion or Exchange of Securities	31
ARTICLE XI SINKING OR PURCHASE FUNDS
SECTION 11.01 Provisions Relating to Sinking or Purchase Funds	31
ARTICLE XII SUBORDINATION
SECTION 12.01 Securities Subordinated to Senior Indebtedness	32
SECTION 12.02 Priority and Payment Over of Proceeds in Certain Events	32
SECTION 12.03 Payments May Be Paid Prior to Dissolution	32
SECTION 12.04 Rights of Holders of Senior Indebtedness Not to Be Impaired	33
SECTION 12.05 Authorization to Trustee to Take Action to Effectuate Subordination	33
SECTION 12.06 Distribution or Notice to Representative	33
SECTION 12.07 Subrogation	33
SECTION 12.08 Obligations of Company Unconditional	33
SECTION 12.09 Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice	34
SECTION 12.10 Right of Trustee to Hold Senior Indebtedness	34

 

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ARTICLE XIII MISCELLANEOUS
SECTION 13.01 Trust Indenture Act Controls	35
SECTION 13.02 Notices	35
SECTION 13.03 Communication by Holders with Other Holders	35
SECTION 13.04 Certificate and Opinion as to Conditions Precedent	36
SECTION 13.05 Statements Required in Certificate or Opinion	36
SECTION 13.06 Rules by Trustee and Agents	36
SECTION 13.07 Legal Holidays	36
SECTION 13.08 Duplicate Originals	36
SECTION 13.09 Governing Law	36
SECTION 13.10 No Adverse Interpretation of Other Agreements	36
SECTION 13.11 Successors	37
SECTION 13.12 Severability	37
SECTION 13.13 Counterpart Originals	37
SECTION 13.14 Submission to Jurisdiction	37
SECTION 13.15 Waiver of Jury Trial	37
SECTION 13.16 Force Majeure	37
SECTION 13.16 Supplemental Indentures Contract	37
SECTION 13.18 Table of Contents, Headings, etc	37
SECTION 13.19 When Treasury Securities Disregarded	37

 

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CROSS-REFERENCE TABLE*

Trust Indenture Act Section		Indenture Section
310	(a)(1)	7.11
	(a)(2)	7.11
	(a)(3)	n/a
	(a)(4)	n/a
	(a)(5)	7.11
	(b)	7.03; 7.11
	(c)	n/a
311	(a)	7.12
	(b)	7.12
	(c)	n/a
312	(a)	2.06
	(b)	13.03
	(c)	13.03
313	(a)	7.07
	(b)(1)	n/a
	(b)(2)	7.07; 7.08
	(c)	7.07; 13.02
	(d)	7.07
314	(a)(1), (2), (3)	4.03;13.05
	(a)(4)	4.04
	(b)	n/a
	(c)(1)	13.04
	(c)(2)	13.04
	(c)(3)	n/a
	(d)	n/a
	(e)	13.05
	(f)	n/a
315	(a)	7.01(b)
	(b)	7.06; 13.02
	(c)	7.01(a)
	(d)	7.01(c)
	(e)	6.11
316	(a)(last sentence)	2.11
	(a)(1)(A)	6.05
	(a)(1)(B)	6.04
	(a)(2)	n/a
	(b)	6.07
	(c)	9.04
317	(a)(1)	6.08
	(a)(2)	6.09
	(b)	2.04
318	(a)	13.01
	(b)	n/a
	(c)	13.01

“n/a” means not applicable.

 

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SUBORDINATED INDENTURE (this “Indenture”), dated as of ________, by and between PAR PHARMACEUTICAL COMPANIES, INC., a Delaware corporation (the “Company”), as issuer, and ______________, a ____________, as trustee (the “Trustee”).

RECITALS

     The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its debentures, notes or other evidences of indebtedness to be issued in one or more series (the “Securities”), up to such principal amount as may from time to time be authorized in or pursuant to one or more resolutions of the Board of Directors or by supplemental indenture.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed for the equal and ratable benefit of the Holders of the Securities, as follows:

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01 Definitions.

“Affiliate” means, when used with reference to the Company or another Person, any Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, the Company or such other Person, as the case may be. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct or cause the direction of management or policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative of the foregoing.

“Agent” means any Registrar, Paying Agent, authenticating agent or co-Registrar.

“Balance Sheet” of a Person means a consolidated balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP.

“Bankruptcy Law” means Title 11 of the U.S. Code or any similar federal or state law for the relief of debtors.

“Board of Directors” means, with respect to any Person, the Board of Directors of such Person or any duly authorized committee of such Board of Directors.

“Board Resolution” means a copy of a resolution certified by the secretary or an assistant secretary of such Person to have been duly adopted by the Board of Directors of such Person or any duly authorized committee thereof and to be in full force and effect on the date of such certification, and delivered to the Trustee.

“Business Day” means a day that is not a Legal Holiday.

“Company” means the party named as the Company in the first paragraph of this Indenture until one or more successor corporations shall have become such pursuant to the applicable provisions of this Indenture, and thereafter means such successors.

“Consolidated” or “consolidated” means, when used with reference to any amount, such amount determined on a consolidated basis in accordance with GAAP, after the elimination of intercompany items.

 

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“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate services business shall be principally administered, which office at the date of execution of this Indenture is located at ______________.

“Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

“Default” means any event which is, or after notice or lapse of time or both would be, an Event of Default.

“Depositary” means The Depository Trust Company, its nominees and their respective successors.

“DTC Participants” has the meaning specified in Section 2.08.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute.

“Event of Default” has the meaning specified in Section 6.01.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute.

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are applicable from time to time.

“Global Securities” means a Security issued to evidence all or a part of any series of Securities that is executed by the Company and authenticated and delivered by the Trustee to a depositary or pursuant to such depositary’s instructions, all in accordance with this Indenture and pursuant to Section 2.01, which shall be registered as to principal and interest in the name of such depositary or its nominee.

“Holder” means the Person in whose name a Security is registered on the Registrar’s books.

“Indebtedness” of a Person means any indebtedness, including principal and premium,

(i)

in respect of borrowed money;

(ii)

evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers’ acceptances (or, without double counting, reimbursement agreements in respect thereof);

(iii)

representing the deferred purchase price of property or services other than trade or accounts payable arising in the ordinary course of such Person’s business;

(iv)

representing obligations, whether or not assumed, secured by Liens on property now or hereafter owned or acquired by such Person (other than carriers’, warehousemen’s, mechanics’, repairmen’s or other like nonconsensual statutory Liens arising in the ordinary course of business), provided, however, that the amount of any such Indebtedness for which recourse is limited to certain property shall be the lower of (a) the amount of the obligation and (b) the fair market value of the property securing such obligation;

(v)

capitalized lease obligations; and

(vi)

if and to the extent it would appear as a liability upon Balance Sheet of such Person, contingent obligations with respect to the Indebtedness of another Person, including but not limited to the obligation or liability of another which such Person assumes,

 

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guarantees, endorses, contingently agrees to purchase or provide funds for the payment of, or otherwise becomes contingently liable upon; provided , however , that any Indebtedness owing by the Company to any of its Subsidiaries or by any Subsidiary of the Company to the Company or by any Subsidiary of the Company to any other Subsidiary of the Company or any contingent obligation in respect thereof shall not constitute Indebtedness.

For purposes of this Indenture, Indebtedness shall not include

(i)

indebtedness that would not appear as a liability upon a Balance Sheet of such Person;

(ii)

indebtedness that is recourse only to certain assets of such Person, if the assets to which such indebtedness is recourse only appear on a Balance Sheet of such Person net of such indebtedness; or

(iii)

indebtedness or other obligations issued by any Person (or by a trust or other entity established by such Person or any of its affiliates) which are primarily serviced by the cash flows of a discrete pool of receivables, leases or other financial assets which have been sold or transferred by the Company or any Subsidiary in securitization transactions which, in accordance with GAAP, are accounted for as sales for financial reporting purposes.

 “Indenture” means this Indenture, as amended, supplemented or modified from time to time.

“Issue Date” means the date of original issuance of the initial Securities pursuant to this Indenture.

“Legal Holiday” has the meaning specified in Section 13.07.

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement or any financing lease having substantially the same economic effect as any of the foregoing).

“Obligations” means all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness.

“Officer” of any Person means the Chairman of the Board, Vice Chairman, the Chief Executive Officer, the President, any Senior Vice President, any Executive Vice President, any Vice President, the Treasurer, the Secretary or the Controller of such Person.

“Officers’ Certificate” means a certificate signed by two Officers or by an Officer and an Assistant Treasurer, Assistant Secretary or Assistant Controller of any Person.

“Opinion of Counsel” means a written opinion from legal counsel. The counsel may be an employee of or counsel to the Company.

“Paying Agent” has the meaning specified in Section 2.04.

“Person” means an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature.

“Physical Securities” means permanent certificated Securities in registered form, issued in accordance with Section 2.08 and the terms of any indenture supplemental hereto.

“Redemption Date” means, with respect to any Securities to be redeemed, the date fixed for such redemption pursuant to this Indenture.

 

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“Redemption Price” means the redemption price fixed in accordance with the terms of the Securities, plus accrued and unpaid interest, if any, to the date fixed for redemption.

“Register” has the meaning specified in Section 2.04.

“Registrar” has the meaning specified in Section 2.04.

“Responsible Officer” shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

“SEC” means the Securities and Exchange Commission and any government agency succeeding to its functions.

“Securities” means the securities authenticated and delivered under this Indenture.

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute.

“Senior Indebtedness” means all Indebtedness (present or future) created, incurred, assumed or guaranteed by the Company (and all renewals, extensions or refundings thereof), unless the instrument under which such Indebtedness is created, incurred, assumed or guaranteed provides that such Indebtedness is not senior or superior in right of payment to the Securities. Notwithstanding anything to the contrary in the foregoing, Senior Indebtedness shall not include (i) any Indebtedness of the Company to any of its Subsidiaries, (ii) any trade payables of the Company or (iii) any liability for federal, state, local or other taxes owed or owing by the Company.

“Significant Subsidiary” means any Subsidiary that would constitute a “significant subsidiary” within the meaning of Article 1 of Regulation S-X of the Securities Act as in effect on the date of this Indenture.

“Subsidiary” of any Person means:

(i)

a corporation a majority of whose capital stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person or by such Person and a subsidiary or subsidiaries of such Person or by a subsidiary or subsidiaries of such Person; or

(ii)

any other Person (other than a corporation) in which such Person or such Person and a subsidiary or subsidiaries of such Person or a subsidiary or subsidiaries of such Persons, at the time, directly or indirectly, owns at least a majority voting interest under ordinary circumstances.

“TIA” means the Trust Indenture Act of 1939, as in effect on the date of this Indenture; provided, however, that in the event the TIA is amended after such date, “TIA” means, to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended, or any successor statute.

“Trustee” means the party named as such in this Indenture until a successor replaces it and thereafter, means the successor.

“U.S. Government Obligations” means (i) direct obligations of the United States of America for the payment of which the full faith and credit of the United States of America is pledged or (ii) 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 either case, are non-callable at the option of the issuer thereof.

 

 

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     SECTION 1.02 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. In addition, the provisions of Sections 310 to and including 317 of the TIA that impose duties on any person are incorporated by reference in, and form a part of, this Indenture.

The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Securities;

     “indenture security holder” means a Holder;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Securities means the Company and any other obligor on the indenture securities.

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions.

     SECTION 1.03 Rules of Construction.

     Unless the context otherwise requires:

(i)

a term has the meaning assigned to it;

(ii)

an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

(iii)

“or” is not exclusive;

(iv)

“including” means including without limitation;

(v)

words in the singular include the plural, and in the plural include the singular; and

(vi)

provisions apply to successive events and transactions.

ARTICLE II

THE SECURITIES

     SECTION 2.01 Unlimited in Amount, Issuable in Series, Denomination

     The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more series in denominations of $1,000 and any integral multiple thereof. Prior to the issuance of Securities of a series, the Company and the Trustee will execute an indenture supplemental hereto which will set forth as to the Securities of that series, to the extent applicable:

     (a) The title and ranking of such Securities;

     (b) The aggregate principal amount of such Securities and any limit on such aggregate principal amount that may be issued;

     (c) The denomination of such Securities, if other than $1,000 and any integral multiple thereof;

     (d) The price (expressed as a percentage of the principal amount thereof) at which such Securities will be issued and, if other than the principal amount thereof, the portion of the principal amount thereof payable upon declaration of acceleration of the maturity thereof;

 

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     (e) The date or dates, or the method for determining such date or dates, on which the Securities will mature and the amounts to be paid upon maturity of the Securities;

     (f) The rate or rates (which may be fixed or variable), or the method by which such rate or rates shall be determined, at which such Securities will bear interest, if any, the date or dates, or the method for determining such date or dates, from which any such interest will accrue, the dates on which any such interest will be payable, the record dates for such interest payment dates, or the method by which such dates shall be determined, the persons to whom such interest shall be payable, and the basis upon which interest shall be calculated, if other than that of a 360-day year of twelve 30-day months;

     (g) The right, if any, of the Company to defer payment of interest and the maximum length of any such deferral period;

     (h) The place or places where the principal of, and premium and interest, if any, on such Securities will be payable, where such Securities may be surrendered for registration of transfer or exchange and where notices or demands to or upon the Company in respect of such Securities and this Indenture may be served;

     (i) The date or dates, if any, after which, and the price or prices at which, and the other terms and conditions upon which such Securities may, pursuant to any optional or mandatory redemption provisions, be redeemed, as a whole or in part, by the Company;

     (j) The obligation, if any, of the Company to redeem, repay or purchase such Securities pursuant to any sinking fund or analogous provision or at the option of a Holder thereof, and the period or periods within which, the price or prices at which and the other terms and conditions upon which such Securities will be redeemed, repaid or purchased, as a whole or in part, pursuant to such obligation;

     (k) The terms, if any, on which the Securities of such series are convertible into, or exchangeable for, shares of common stock, preferred stock or other securities of the Company, including any mandatory conversion or exchange provisions and any provisions intended to prevent dilution of those conversion or exchange rights;

     (l) Whether such Securities will be secured or unsecured and the terms relating thereto;

     (m)  The restrictions, if any, on the transfer, sale or other assignment of the Securities;

     (n) If other than U.S. dollars, the currency or currencies in which such Securities are denominated and payable, which may be a foreign currency or units of two or more foreign currencies or a composite currency or currencies, and the terms and conditions relating thereto;

     (o) Whether the principal of, or premium and interest, if any, on the Securities of the series is to be payable, at the election of the Company or a Holder thereof, in a currency or currencies, currency unit or units or composite currency or currencies other than that in which such Securities are denominated or stated to be payable, the period or periods within which, and the terms and conditions upon which, such election may be made, and the time and manner of, and identity of the exchange rate agent with responsibility for, determining the exchange rate between the currency or currencies, currency unit or units or composite currency or currencies in which such Securities are denominated or stated to be payable and the currency or currencies, currency unit or units or composite currency or currencies in which such Securities are to be so payable;

     (p) Whether the amount of payments of principal of, or premium and interest, if any, on such Securities may be determined with reference to an index, formula or other method (which index, formula or method may, but need not be, based on the yield on or trading price of other securities, including United States Treasury securities, or on a currency, currencies, currency unit or units, or composite currency or currencies) and the manner in which such amounts shall be determined;

 

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     (q) Any deletions from, modifications of or additions to the Events of Default or covenants of the Company with respect to Securities of the series, whether or not such Events of Default or covenants are consistent with the Events of Default or covenants described herein;

     (r) Whether and under what circumstances the Company will pay any additional amounts on such Securities in respect of any tax, assessment or governmental charge and, if so, whether the Company will have the option to redeem such Securities in lieu of making such payment;

     (s) Whether Securities of the series are to be issuable as registered securities, bearer securities (with or without coupons) or both, any restrictions applicable to the offer, sale or delivery of bearer securities and the terms upon which bearer securities of the series may be exchanged for registered securities of the series and vice versa (if permitted by applicable laws and regulations), whether any Securities of the series are to be issuable initially in temporary global form and whether any Securities of the series are to be issuable in permanent global form with or without coupons and, if so, whether beneficial owners of interests in any such permanent Global Security may exchange such interests for Securities of such series and of like tenor or any authorized form and denomination and the circumstances under which any such exchanges may occur, if other than in the manner provided in the indenture, and, if registered securities of the series are to be issuable as a Global Security, the identity of the depositary for such series;

     (t) The date as of which any bearer securities of the series and any temporary Global Security representing outstanding Securities of the series shall be dated if other than the date of original issuance of the first Security of the series to be issued;

     (u) The person to whom any interest on any registered security of the series shall be payable, if other than the person in whose name that Security (or one or more predecessor securities) is registered at the close of business on the regular record date for such interest, the manner in which, or the person to whom, any interest on any bearer security of the series shall be payable, if otherwise than upon presentation and surrender of the coupons appertaining thereto as they severally mature, and the extent to which, or the manner in which, any interest payable on a temporary Global Security on an interest payment date will be paid if other than in the manner provided in the indenture;

     (v) The applicability, if any, of the legal defeasance and covenant defeasance provisions of this Indenture to the Securities of the series;

     (w)  Whether such Securities will be issued in certificated or book entry form, and if the Securities of such series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary security of such series) only upon receipt of certain certificates or other documents or satisfaction of other conditions, then the form and/or terms of such certificates, documents or conditions;

     (x) Whether the Securities will be listed for trading on an exchange and the identity of such exchange, and whether any underwriters will act as market makers for the Securities; and

     (y) Any other terms, preferences, rights or limitations of, or restrictions on, the Securities of such series, including any restrictions on the transfer, sale or other assignment of the Securities.

     SECTION 2.02 Form and Dating.

     The Securities of each series will be substantially in the form established by an indenture supplemental hereto relating to the Securities of that series. The Securities may have notations, legends or endorsements required by law, stock exchange rules or usage. The Company will approve the form of the Securities and any notation, legend or endorsement thereon. Each Security will be dated as of the date of its authentication pursuant to Section 2.03.

     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 be valid nevertheless.

 

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     A Security shall not be valid until authenticated by the manual signature of the Trustee. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

     The Trustee shall, upon a written order of the Company signed by one Officer of the Company, authenticate for original issue Securities in aggregate principal amount specified in such order.

     The Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate Securities. Unless limited by the terms of such appointment, 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 of the Company.

     SECTION 2.04 Registrar and Paying Agent.

     The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (the “ Registrar ”) and an office or agency where Securities may be presented for payment (the “ Paying Agent ”). The Registrar shall keep a register of the Securities (the “ Register ”) and of their transfer and exchange. The Company may appoint one or more co-Registrars and one or more additional Paying Agents for the Securities. The term “Paying Agent” includes any additional paying agent and the term “Registrar” includes any additional registrar. The Company may change any Paying Agent or Registrar without prior notice to any Holder.

     The Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture, which shall incorporate the terms of the TIA and implement the terms of this Indenture that relate to such Agent. The Company shall give prompt written notice to the Trustee of the name and address of any Agent who is not a party to this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any Affiliate of the Company may act as Paying Agent or Registrar; provided, however, that none of the Company, its Subsidiaries or the Affiliates of the foregoing shall act (i) as Paying Agent in connection with redemptions, offers to purchase, discharges and defeasance, as otherwise specified in this Indenture, and (ii) as Paying Agent or Registrar if a Default or Event of Default has occurred and is continuing.

     The Company initially appoints The Depository Trust Company to act as Depositary with respect to the Global Securities.

     The Company hereby initially appoints the Trustee as Registrar and Paying Agent for the Securities.

     SECTION 2.05 Paying Agent to Hold Assets in Trust.

     Not later than 11:00 a.m. (New York City time) on each due date of the principal and interest on any Securities, the Company shall deposit with one or more Paying Agents money in immediately available funds sufficient to pay such principal and interest so becoming due. The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all assets held by the Paying Agent for the payment of principal of and interest on the Securities (whether such money has been paid to it by the Company or any other obligor on the Securities) and shall notify the Trustee of any failure by the Company (or any other obligor on the Securities) in making any such payment. While any such failure continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed. 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 of the Company) shall have no further liability for the money so paid over to the Trustee.

     If the Company or any Subsidiary of the Company or any Affiliate of any of them acts as Paying Agent, it shall, prior to or on each due date of any principal of or interest on the Securities, segregate and hold in a separate trust fund for the benefit of the Holders a sum of money sufficient with monies held by all other Paying Agents, to pay such principal or interest so becoming due until such sum of money shall

 

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be paid to such Holders or otherwise disposed of as provided in this Indenture, and will promptly notify the Trustee of its actions or failure to act.

     SECTION 2.06 Holder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders and shall otherwise comply with Section 312(a) of the TIA. If the Trustee is not the Registrar, the Company shall furnish to the Trustee prior to or on each interest payment date for the Securities 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 Holders relating to such interest payment date or request, as the case may be.

     SECTION 2.07 General Provisions Relating to Transfer and Exchange.

     The Securities are issuable only in registered form. A Holder may transfer a Security only by written application to the Registrar or another transfer agent stating the name of the proposed transferee and otherwise complying with the terms of this Indenture. No such transfer shall be effected until, and such transferee shall succeed to the rights of a Holder only upon, final acceptance and registration of the transfer by the Registrar in the Register. Prior to the registration of any transfer by a Holder as provided herein, the Company, the Trustee, and any agent of the Company shall treat the person in whose name the Security is registered as the owner thereof for all purposes whether or not the Security shall be overdue, and neither the Company, the Trustee, nor any such agent shall be affected by notice to the contrary. Furthermore, any Holder of a Global Security shall, by acceptance of such Global Security, agree that transfers of beneficial interests in such Global Security may be effected only through a book-entry system maintained by the Holder of such Global Security (or its agent) and that ownership of a beneficial interest in the Security shall be required to be reflected in a book-entry.

     When Securities are presented to the Registrar or another transfer agent with a request to register the transfer or to exchange them for an equal principal amount of Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements for such transactions are met (including that such Securities are duly endorsed or accompanied by a written instrument of transfer duly executed by the Holder thereof or by an attorney who is authorized in writing to act on behalf of the Holder). Subject to Section 2.03, to permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange or redemption of the Securities, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or other similar governmental charge payable upon exchanges pursuant to Section 2.12, 3.06 or 9.05 hereof).

     Neither the Registrar nor any other transfer agent nor the Company shall be required to:

     (i) issue, register the transfer of or exchange any Security during a period beginning at the opening of business 15 Business Days before the day of any selection of Securities for redemption under Section 3.02 hereof and ending at the close of business on the day of selection; or

     (ii) register the transfer of or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.

     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 United States Federal or state securities law.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among DTC Participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates

 

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and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

     SECTION 2.08 Book-Entry Provisions for Global Securities.

     (a) The Global Securities initially shall:

     (i) be registered in the name of the Depositary or the nominee of such Depositary; and

     (ii) be delivered to the Trustee as custodian for such Depositary.

     Members of, or participants in, the Depositary (“ DTC Participants ”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary, or the Trustee as its custodian, or under such Global Security, and the Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing contained herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and the DTC Participants, the operation of customary practices governing the exercise of the rights of a Holder of any Security.

     (b) Transfers of a Global Security shall be limited to transfers of such Global Security in whole, but not in part, to the Depositary, its successors or their respective nominees. Beneficial owners may transfer their interests in Global Securities in accordance with the rules and procedures of the Depositary.

     (c) Any beneficial interest in one of the Global Securities that is transferred to a person who takes delivery in the form of an interest in another Global Security will, upon transfer, cease to be an interest in such Global Security and become an interest in such other Global Security and, accordingly, will thereafter be subject to all transfer restrictions, if any, and other procedures applicable to beneficial interests in such other Global Security for as long as it remains such an interest.

     (d) The registered Holder of a Global Security may grant proxies and otherwise authorize any Person, including DTC Participants and Persons that may hold interests through DTC Participants, to take any action that a Holder is entitled to take under this Indenture or the Securities.

     (e) If at any time:

     (i) the Company notifies the Trustee in writing that the Depositary is no longer willing or able to continue to act as Depositary for the Global Securities or the Depositary ceases to be a “clearing agency” registered under the Exchange Act, and a successor depositary for the Global Securities is not appointed by the Company within 90 days of such notice or cessation;

     (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of the Securities in definitive form under this Indenture in exchange for all or any part of the Securities represented by a Global Security or Global Securities; or

     (iii) an Event of Default has occurred and is continuing and the Registrar has received a request from the Depositary,

subject to this Section 2.08(e), the Depositary shall surrender such Global Security or Global Securities to the Trustee for cancellation and then the Company shall execute, and the Trustee shall authenticate and deliver in exchange for such Global Security or Global Securities, Physical Securities, as applicable, in an aggregate principal amount equal to the principal amount of such Global Security or Global Securities. Such Physical Securities shall be registered in such names as the Depositary shall identify in writing as the beneficial owners, or participant nominees, of the Securities represented by such Global Security or Securities (or any nominee thereof).

 

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     (f) Notwithstanding the foregoing, in connection with any transfer of a portion of the beneficial interests in a Global Security to beneficial owners pursuant to paragraph (e) of this Section 2.08, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of such Global Security in an amount equal to the principal amount of the beneficial interest in such Global Security to be transferred, and the Company shall execute, and the Trustee shall authenticate and deliver, one or more Physical Securities of like tenor and amount.

     SECTION 2.09 Replacement Securities.

     If a mutilated Security is surrendered to the Trustee or if the Holder of a Security claims that the Security has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security if the requirements of the Trustee and the Company are met; provided that, if any such Security has been called for redemption in accordance with the terms thereof, the Trustee may pay the Redemption Price thereof on the Redemption Date without authenticating or replacing such Security. The Trustee or the Company may, in either case, require the Holder to provide an indemnity bond sufficient in the judgment of each of the Trustee and the Company to protect the Company, the Trustee or any Agent from any loss which any of them may suffer if a Security is replaced or if the Redemption Price therefor is paid pursuant to this Section 2.09. The Company may charge the Holder who has lost a Security for its expenses in replacing a Security.

     Every replacement Security is an obligation of the Company and shall be entitled to the benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder.

     SECTION 2.10 Outstanding Securities.

     The Securities outstanding at any time are all the Securities authenticated by the Trustee, except for (i) those cancelled by it, (ii) those delivered to it for cancellation and (iii) those described in this Section as not outstanding.

     If a Security is replaced pursuant to Section 2.09 hereof, it ceases to be outstanding and interest ceases to accrue unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

     If all principal of and interest on any Security are considered paid under Section 4.01 hereof, such Security ceases to be outstanding and interest on it ceases to accrue.

     Except as provided in Section 2.11 hereof, a Security does not cease to be outstanding because the Company or an Affiliate of the Company holds such Security.

     SECTION 2.11 Treasury Securities.

     In determining whether the Holders of the required aggregate principal amount of Securities of any series have concurred in any direction, waiver or consent, Securities owned by the Company or an Affiliate of the Company shall be considered as though they are not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which such Trustee actually knows are so owned shall be so disregarded.

     SECTION 2.12 Temporary Securities.

     Until definitive Securities are ready for delivery, the Company may prepare and execute, and the Trustee shall authenticate upon a written order of the Company signed by one Officer of the Company, 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 shall authenticate, definitive Securities in exchange for temporary Securities. Holders of temporary Securities shall be entitled to all of the benefits of this Indenture.

 

 

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     SECTION 2.13 Cancellation.

     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange, payment or repurchase. The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment, repurchase, redemption, replacement or cancellation and shall return such cancelled Securities to the Company upon the Company’s written request (subject to the record retention requirements of the Exchange Act). The Company may not issue new Securities to replace Securities that it has paid or that have been delivered to the Trustee for cancellation.

     SECTION 2.14 CUSIP Numbers.

     The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and the Trustee shall use CUSIP numbers in notices of redemption or exchange as a convenience to Holders; provided that any such notice shall state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any such notice and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any change in the CUSIP numbers.

     SECTION 2.15 Defaulted Interest.

     If the Company fails to make a payment of interest on Securities, it shall pay such defaulted interest plus (to the extent lawful) any interest payable on the defaulted interest, in any lawful manner. It may elect to pay such defaulted interest, plus any such interest payable on it, to the Persons who are Holders of such Securities on which the interest is due on a subsequent special record date. The Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each such Security. The Company shall fix any such record date and payment date for such payment. At least 15 days before any such record date, the Company shall mail to Holders affected thereby a notice that states the record date, interest payment date, and amount of such interest to be paid.

     SECTION 2.16 Special Record Dates.

     The Company may, but shall not be obligated to, set a record date for the purpose of determining the identity of Holders of Securities entitled to consent to any supplement, amendment or waiver permitted by this Indenture. If a record date is fixed, the Holders of Securities outstanding on such record date, and no other Holders, shall be entitled to consent to such supplement, amendment or waiver or revoke any consent previously given, whether or not such Holders remain Holders after such record date. No consent shall be valid or effective for more than 90 days after such record date unless consents from Holders of the aggregate principal amount of Securities required hereunder for such amendment or waiver to be effective shall have also been given and not revoked within such 90-day period.

ARTICLE III

REDEMPTION

     SECTION 3.01 Notices to Trustee.

     If the Company elects to redeem any series of Securities pursuant to the optional redemption provisions set forth in the supplemental indenture relating to such series of Securities, it shall notify the Trustee in writing of the intended Redemption Date, the principal amount of Securities to be redeemed and the CUSIP numbers of the Securities to be redeemed. The Company shall give each notice to the Trustee provided for in this Section 3.01 at least  days fifteen (15) days before the giving of the notice of redemption pursuant to Section 3.03 hereof (unless a shorter period is satisfactory to the Trustee).

 

 

 

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     SECTION 3.02 Selection of Securities to Be Redeemed.

     If fewer than all the Securities of any series are to be redeemed, the Trustee shall select the Securities of such series to be redeemed from the outstanding Securities of such series by a method that complies with the requirements of any exchange on which the Securities are listed, or, if the Securities are not listed on an exchange, on a pro rata basis or by lot or in accordance with any other method the Trustee considers fair and appropriate. The Trustee will make the selection from outstanding Securities of that series not previously called for redemption.

     Securities and portions thereof of any series that the Trustee selects shall be in amounts equal to the minimum authorized denomination for Securities to be redeemed or any integral multiple thereof. The Trustee may select for redemption portions of the principal amount of Securities that have denominations larger than the minimum denomination in which Securities of the applicable series may be issued. Provisions of this Indenture that apply to Securities of any series called for redemption also apply to portions of Securities of such series called for redemption. The Trustee shall notify the Company promptly in writing of the Securities or portions of Securities of any series to be called for redemption.

     SECTION 3.03 Notice of Redemption.

     At least 30 days but not more than 60 days before the Redemption Date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed in whole or in part at the address of such Holder appearing in the Register.

     The notice shall identify the principal amount and series of each Security to be redeemed and shall state:

     (i) the Redemption Date;

     (ii) the method being used to determine the Redemption Price;

     (iii) if fewer than all outstanding Securities are to be redeemed, the portion of the principal amount of the Securities to be redeemed and that, after the Redemption Date, upon surrender of such Security, a new Security in principal amount equal to the unredeemed portion will be issued;

     (iv) the name and address of the Paying Agent;

     (v) that Securities called for redemption must be presented and surrendered to the Paying Agent to collect the Redemption Price plus accrued interest, if any;

     (vi) that, unless the Company defaults in payment of the Redemption Price, interest on Securities (or the portions thereof) called for redemption ceases to accrue interest on and after the Redemption Date, and, if applicable, those Securities (or the portion thereof called for redemption) will cease on the Redemption Date (or such other date as if provided in the supplemental indenture relating to the Securities) to be convertible into, or exchangeable for, other securities or assets;

     (vii) if applicable, the current conversion or exchange price; and

     (viii) the CUSIP numbers, if any, of the Securities to be redeemed.

     At the Company’s written request, the Trustee shall give the notice of redemption in the Company’s name and at its expense.

     SECTION 3.04 Effect of Notice of Redemption.

     Once the notice of redemption is mailed, Securities called for redemption become irrevocably due and payable on the Redemption Date at the Redemption Price. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price, plus accrued and unpaid interest to the Redemption Date.

     The notice mailed in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder receives such notice. In any case, failure to give such notice by mail or

 

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any defect in the notice to the Holder of any Securities shall not affect the validity of the proceeding for the redemption of Securities of any other Holder.

     SECTION 3.05 Deposit of Redemption Price.

     Prior to 11:00 a.m., New York City time, on the Redemption Date, the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or an Affiliate of the Company is acting as the paying Agent, shall segregate and hold in trust) an amount of money sufficient to pay the Redemption Price of all Securities to be redeemed on that date, together with accrued and unpaid interest to the Redemption Date, except for Securities or portions thereof called for redemption which have been delivered by the Company to the Trustee for cancellation or Securities which have been surrendered for conversion or exchange. If any Securities called for redemption are converted or exchanged, any money deposited with the Trustee or Paying Agent for redemption of those Securities shall be promptly paid to the Company upon its request, or, if the money is held in trust by the Company or a Subsidiary as Paying Agent, the money will be discharged from the trust.

     SECTION 3.06 Securities Redeemed in Part.

     Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall authenticate for the Holder at the expense of the Company, a new Security equal in principal amount to the unredeemed portion of the Security surrendered.

     SECTION 3.07 Holder's Right to Require Redemption.

     Holders of Securities of a series will have the right to require the Company to redeem those Securities only to the extent, and only on the terms, set forth in the supplemental indenture relating to the Securities of that series. If Holders of Securities of a series have the right to require the Company to redeem those Securities, unless otherwise provided in the supplemental indenture relating to the Securities of that series, the terms of the redemption will include those set forth in Section 3.08.

     SECTION 3.08 Procedure for Requiring Redemption .

     If a Holder has the right to require the Company to redeem Securities, to exercise that right, the Holder must deliver the Securities to the Paying Agent, endorsed for transfer and with the form on the reverse side regarding the option to require redemption completed. Delivery of Securities to the Paying Agent as provided in this Section 3.07 will constitute an irrevocable election to cause the specified principal amount of Securities to be redeemed. When Securities are delivered to the Paying Agent as provided in this Section, unless the Company fails to make the payments due as a result of the redemption within twenty (20) days after the Securities are delivered to the Paying Agent, interest on the Securities will cease to accrue and, if the Securities are convertible or exchangeable, the Holder's right to convert or exchange the Securities will terminate.

     The Company's determination of all questions regarding the validity, eligibility (including time of receipt) and acceptance of any Security for redemption will be final and binding.

ARTICLE IV

COVENANTS

     SECTION 4.01 Payment of Securities.

     The Company shall pay, or cause to be paid, the principal of and interest on the Securities on the dates and in the manner provided in the Securities and the supplemental Indenture relating to the series. Principal and interest shall be considered paid on the date due if the Paying Agent, if other than the Company, a Subsidiary of the Company or any Affiliate of any of them