The Guarantors named herein, as
Guarantors,
THE BANK OF NEW YORK MELLON, as
Trustee
Dated as of September 15,
2008
3.75% Cash Convertible Notes Due
2015
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Page
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ARTICLE 1
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DEFINITIONS AND INCORPORATION BY
REFERENCE
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Definitions.
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1
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Other
Definitions.
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9
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Trust Indenture
Act Provisions.
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10
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Rules of
Construction.
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10
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ARTICLE 2
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THE SECURITIES
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Form and
Dating.
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11
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Execution and
Authentication.
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13
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Registrar and
Paying Agent.
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14
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Paying Agent To
Hold Money in Trust.
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14
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[Reserved].
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15
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Lists of
Holders of Securities.
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15
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Transfer and
Exchange.
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15
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Replacement
Securities.
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18
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Outstanding
Securities.
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18
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Treasury
Securities.
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19
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Temporary
Securities.
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19
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Cancellation.
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19
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Legend;
Additional Transfer and Exchange Requirements.
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19
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CUSIP
Numbers.
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21
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Calculations.
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21
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Payment of
Interest; Interest Rights Preserved.
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21
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Computation of
Interest.
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22
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Deemed Removal
of Restricted Securities Legend; Unrestricted CUSIP.
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22
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ARTICLE 3
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PURCHASE
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Purchase of
Securities by the Company for Cash at Option of the Holder upon a
Fundamental Change.
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23
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Effect of
Fundamental Change Purchase Notice.
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25
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Deposit of
Fundamental Change Purchase Price.
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25
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Repayment to
the Company.
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26
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Securities
Purchased in Part.
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26
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Compliance with
Securities Laws upon Purchase of Securities.
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26
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Purchase of
Securities in Open Market.
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27
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-i-
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Page
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ARTICLE 4
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CASH CONVERSION
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Cash Conversion
Privilege and Conversion Reference Rate.
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27
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Conversion
Procedure.
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30
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[Reserved].
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31
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[Reserved].
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31
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[Reserved].
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31
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Adjustment of
Conversion Reference Rate.
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31
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No
Adjustment.
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36
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Notice of
Adjustment.
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37
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Notice of
Certain Transactions.
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37
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Effect of
Reclassification, Consolidation, Merger or Sale on Conversion
Privilege.
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37
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Trustee’s
Disclaimer.
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38
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Settlement Upon
Cash Conversion.
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39
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ARTICLE 5
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COVENANTS
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Payment of
Securities.
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40
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Reports by
Company and the Guarantors.
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40
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Compliance
Certificates.
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41
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Further
Instruments and Acts.
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41
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Maintenance of
Corporate Existence.
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41
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Stay, Extension
and Usury Laws.
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41
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Maintenance of
Office or Agency.
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42
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Guarantees.
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42
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ARTICLE 6
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CONSOLIDATION; MERGER; SALE OF
ASSETS
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Company May
Consolidate, Etc., Only on Certain Terms.
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42
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Successor
Substituted.
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43
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ARTICLE 7
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DEFAULT AND REMEDIES
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Events of
Default.
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43
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Acceleration;
Special Interest; Additional Interest.
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45
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Collection of
Indebtedness and Suits for Enforcement by Trustee.
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48
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Trustee May
File Proofs of Claim.
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48
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Trustee May
Enforce Claims Without Possession of Securities.
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49
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Application of
Money Collected.
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49
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Limitation on
Suits.
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50
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-ii-
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Page
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Unconditional
Right of Holders To Receive Payment and To Cash Convert.
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50
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Restoration of
Rights and Remedies.
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50
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Rights and
Remedies Cumulative.
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51
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Delay or
Omission Not Waiver.
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51
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Control by
Holders.
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51
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Waiver of Past
Defaults.
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51
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Undertaking for
Costs.
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51
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Remedies
Subject to Applicable Law.
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52
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ARTICLE 8
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TRUSTEE
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Duties of
Trustee.
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52
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Notice of
Default.
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53
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Certain Rights
of Trustee.
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53
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Trustee Not
Responsible for Recitals, Dispositions of Securities or Application
of Proceeds Thereof.
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55
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Trustee and
Agents May Hold Securities; Collections; Etc.
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55
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Money Held in
Trust.
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55
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Compensation
and Indemnification of Trustee and Its Prior Claim.
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55
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Conflicting
Interests.
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56
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Trustee
Eligibility.
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56
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Resignation and
Removal; Appointment of Successor Trustee.
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57
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Acceptance of
Appointment by Successor.
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58
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Merger,
Conversion, Consolidation or Succession to Business.
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58
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Preferential
Collection of Claims Against Company.
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59
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Reports by
Trustee.
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59
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ARTICLE 9
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SATISFACTION AND DISCHARGE OF
INDENTURE
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Satisfaction
and Discharge of Indenture.
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59
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Application of
Trust Money.
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60
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Reinstatement.
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60
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ARTICLE 10
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AMENDMENTS; SUPPLEMENTS AND
WAIVERS
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Without Consent
of Holders.
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61
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With Consent of
Holders.
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61
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Execution of
Supplemental Indentures and Agreements.
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63
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Effect of
Supplemental Indentures.
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63
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Conformity with
Trust Indenture Act.
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63
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Reference in
Securities to Supplemental Indentures.
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63
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Notice of
Supplemental Indentures.
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63
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-iii-
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Page
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ARTICLE 11
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NOTE GUARANTEES
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Guarantees.
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63
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Severability.
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65
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Limitation of
Liability.
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65
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Contribution.
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65
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Subrogation.
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66
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Reinstatement.
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66
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Release of a
Guarantor.
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66
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Benefits
Acknowledged.
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66
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ARTICLE 12
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MISCELLANEOUS
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Conflict with
Trust Indenture Act.
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66
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Notices.
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67
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Disclosure of
Names and Addresses of Holders.
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68
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Compliance
Certificates and Opinions.
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68
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Acts of
Holders.
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69
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Benefits of
Indenture.
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70
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Legal
Holidays.
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70
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Governing Law;
Waiver of Trial by Jury.
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70
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No Adverse
Interpretation of Other Agreements.
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70
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No Personal
Liability of Directors, Officers, Employees and
Stockholders.
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70
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Successors and
Assigns.
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70
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Multiple
Counterparts.
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71
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Separability
Clause.
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71
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Schedules and
Exhibits.
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71
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Effect of
Headings and Table of Contents.
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71
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EXHIBIT A
EXHIBIT B
EXHIBIT C
EXHIBIT D
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Form of
Security
Notation of Guarantee
Form of Supplemental Indenture to be Executed by Future
Guarantors
Form of Certificate Regarding Restricted Securities Legend
Removal
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A-1
B-1
C-1
D-1
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-iv-
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Indenture
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TIA
Section
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Section(s)
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310(a)(1)
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8.09
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(a)(2)
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8.09
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(a)(3)
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N.A.
**
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(a)(4)
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N.A.
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(a)(5)
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8.09
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(b)
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8.08
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(c)
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N.A.
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311(a)
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8.13
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(b)
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8.05
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(c)
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N.A.
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312(a)
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2.06
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(b)
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11.03
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(c)
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11.03
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313(a)
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8.14(a)
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(b)(1)
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N.A.
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(b)(2)
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8.14(a)
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(c)
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8.14(a)
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(d)
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8.14(b)
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314(a)
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5.02
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(b)
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N.A.
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(c)(1)
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11.04
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(c)(2)
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11.04
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(c)(3)
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N.A.
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(d)
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N.A.
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(e)
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11.04
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(f)
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N.A.
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315(a)
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8.01(b)
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315(b)
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8.02
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315(c)
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8.01(a)
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315(d)
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8.01(c)
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315(d)(2)
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8.01(c)
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315(d)(3)
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8.01(c)
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315(e)
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7.14
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316(a) (last
sentence)
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2.10
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316(a)(1)
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7.12, 7.13
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316(a)(2)
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N.A.
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316(b)
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7.08
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316(c)
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11.05(e)
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317(a)
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7.03, 7.04(a)
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317(b)
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2.04
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318(a)
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11.01
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318(c)
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11.01
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*
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This
Cross-Reference Table shall not, for any purpose, be deemed a part
of this Indenture.
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**
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N.A. means Not
Applicable.
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-i-
THIS INDENTURE,
dated as of September 15, 2008, is among Mylan Inc., a
corporation duly organized under the laws of the State of
Pennsylvania (the “Company”), the Guarantors (as
defined herein) and The Bank of New York Mellon, a New York banking
corporation, as Trustee (the “Trustee”).
In consideration
of the purchase of the Securities (as defined herein) by the
Holders (as defined herein) thereof, the parties hereto agree as
follows for the benefit of one another and for the equal and
ratable benefit of the Holders of the Company’s 3.75% Cash
Convertible Notes Due 2015.
DEFINITIONS AND INCORPORATION BY
REFERENCE
Section 1.01.
Definitions .
“Affiliate”
means, with respect to any specified Person, any other Person
directly or indirectly controlling or controlled by or under direct
or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with
respect to any Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and
the terms “controlling” and “controlled”
have meanings correlative to the foregoing.
“Agent”
means any Registrar or Paying Agent.
“Applicable
Procedures” means, with respect to any conversion, transfer
or exchange of beneficial ownership interests in a Global Security,
the rules and procedures of the Depositary, to the extent
applicable to such conversion, transfer or exchange.
“Attributable
Debt” means, in the context of a Sale Leaseback Transaction,
the present value, discounted at the interest rate implicit in the
lease involved in such Sale Leaseback Transaction, of the
lessee’s obligation under the lease for rental payments
during the remaining term of such lease, including any period for
which such lease has been extended or may, at the option of the
lessor, be extended. For purposes of this definition, any amounts
the lessee must pay, whether or not designated as rent or
additional rent, on account of maintenance and repairs, insurance,
taxes, assessments, water rates or similar charges or any amounts
the lessee must pay under the lease contingent upon the amount of
sales, maintenance and repairs, insurance, taxes, assessments,
water rates or similar charges are not included in the
determination of the lessee’s obligations under the
lease.
“Bankruptcy
Law” means Title 11 of the United States Code entitled
“Bankruptcy” or any other law relating to bankruptcy,
insolvency, winding up, liquidation, reorganization or relief of
debtors, whether in effect on the date hereof or
hereafter.
“Board of
Directors” means the board of directors of the Company or of
any Guarantor, as the case may be, or any duly authorized committee
of such board, or any equivalent body in a limited partnership,
limited liability company or other entity serving substantially the
same function as a board of directors of a corporation.
“Board
Resolution” means, with respect to any Person, a duly adopted
resolution (or other similar action) of the Board of Directors of
such Person.
“Business
Day” means any day other than a Saturday or a Sunday or any
other day on which banking institutions in The City of New York are
authorized or required by law to close.
“Capital
Lease Obligations” means, with respect to any Person, the
obligations of such Person to pay rent or other amounts under any
lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are
required to be classified and accounted for as capital leases on a
balance sheet of such Person under GAAP; and, for the purposes of
this Indenture, the amount of such obligations at any time shall be
the capitalized amount thereof at such time determined in
accordance with GAAP.
“Capital
Markets Debt” means any Indebtedness of the Company for
borrowed money described in clause (2) of the definition
thereof (other than promissory notes or similar evidence of
Indebtedness under a credit agreement or loan agreement) that has
an aggregate principal amount of at least
$50.0 million.
“Capital
Stock” of any Person means any and all shares, interests,
participations, rights in or other equivalents (however designated)
of such Person’s capital stock, other equity interests
whether now outstanding or issued after the Issue Date, partnership
interests (whether general or limited), limited liability company
interests, any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person, including any
preferred stock, and any rights (other than debt securities
convertible into, or exchangeable for, Capital Stock), warrants or
options exchangeable for or convertible into such Capital
Stock.
“Cash”
or “cash” means such coin or currency of the United
States as at any time of payment is legal tender for the payment of
public and private debts.
“cash
conversion” with respect to any Security, means the
conversion of a Holder’s rights as a Holder of a Security in
accordance with Article 4 into the right to receive a cash
payment from the Company pursuant to Section 4.02 in the
amount determined pursuant to Section 4.12. The terms
“cash convert,” “cash convertible” and
“cash converted” shall have corresponding
meanings.
“Certificated
Security” means a Security that is in substantially the form
attached as Exhibit A but that does not include the information or
the schedule called for by footnote 1 thereof.
“Change of
Control” means the occurrence of any of the following events
(whether or not approved by the Company’s Board of
Directors):
(1) any
“person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the
“beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act), directly or indirectly, of Voting
Stock representing 50% or more of the total voting power of all
outstanding Voting Stock of the Company, other than an acquisition
by the Company, any of the Company’s Subsidiaries or any of
the Company’s employee benefit plans; provided that
this clause (1) shall not apply to a merger of the Company
with or into a wholly-owned Subsidiary of a company that has a
class of common stock or American Depositary Receipts in respect of
common stock traded on the New York Stock Exchange, NASDAQ Global
Select Market, NASDAQ Global Market or American Stock Exchange if
immediately following the transaction or series of transactions the
holders of Common Stock immediately before such transaction are
entitled to exercise, directly or indirectly, 50% or more of the
voting power of all shares of Capital Stock entitled to vote
generally in the election of directors of such company;
or
2
(2) the Company
consolidates with, or merges with or into, another person or the
Company sells, assigns, conveys, transfers, leases or otherwise
disposes of all or substantially all of its assets to any person
other than any such transaction where immediately after such
transaction the person or persons that “beneficially
owned” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act) immediately prior to such transaction, directly or
indirectly, Voting Stock representing a majority of the total
voting power of all outstanding Voting Stock of the Company,
“beneficially own or owns” (as so determined), directly
or indirectly, Voting Stock representing a majority of the total
voting power of the outstanding Voting Stock of the surviving or
transferee person and such surviving or transferee person has a
class of common stock or American Depositary Receipts in respect of
common stock traded on the New York Stock Exchange, NASDAQ Global
Select Market, NASDAQ Global Market or the American Stock Exchange;
or
(3) during any
consecutive two-year period, the Continuing Directors cease for any
reason to constitute a majority of the Board of Directors;
or
(4) the adoption
of a plan of liquidation or dissolution of the Company.
Notwithstanding
the foregoing, it will not constitute a Change of Control if 90% of
the consideration for the Common Stock (excluding cash payments for
fractional shares and cash payments made in respect of
dissenters’ appraisal rights) in the transaction or
transactions constituting the Change of Control consists of common
stock or American Depositary Receipts and any associated rights
listed on the New York Stock Exchange, NASDAQ Global Select Market,
NASDAQ Global Market or the American Stock Exchange, or which will
be so traded when issued or exchanged in connection with the Change
of Control, and as a result of such transaction or transactions
settlement of the Conversion Reference Value of the Securities is
thereafter based upon shares of stock, other securities or other
property or assets, at least 90% of which is, as of the effective
date of such business combination, such common stock or American
Depositary Receipts.
“Closing
Price” means, with respect to the Common Stock or any other
securities on any Trading Day, the reported last sale price per
share (or if no last sale price is reported, the average of the bid
and ask prices per share or, if more than one in either case, the
average of the average bid and the average ask prices per share) on
such date reported by the New York Stock Exchange, or, if the
Common Stock or such securities are not listed on the New York
Stock Exchange, as reported by the principal national securities
exchange on which the Common Stock or such securities are listed,
or if no such prices are available, the Closing Price per share
shall be the fair value of a share of Common Stock or other
security as reasonably determined by the Board of Directors (which
determination shall be conclusive and shall be evidenced by an
Officer’s Certificate delivered to the Trustee).
“Common
Stock” means the Company’s common stock, par value
$0.50 per share, or any successor common stock thereto.
“Company”
means the party named as such in the first paragraph of this
Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture, and thereafter “Company”
shall mean such successor Company.
“Company
Request” or “Company Order” means a written
request or order signed in the name of the Company by any one of
its Chairman of the Board, its Chief Executive Officer, its
President, its Chief Operating Officer, its Chief Financial Officer
or a Vice President (regardless of Vice Presidential designation),
and by any one of its Treasurer, an Assistant Treasurer, any other
Vice President (regardless of Vice Presidential designation), its
Secretary or an Assistant Secretary, and delivered to the
Trustee.
3
“Continuing
Directors” means, as of any date of determination, any member
of the Board of Directors of the Company who was (a) a member
of such Board of Directors on the date of this Indenture or
(b) nominated for election or elected to such Board of
Directors with the approval of a majority of the continuing
directors who were members of such board at the time of such
nomination or election.
“Conversion
Reference Price” per share of Common Stock as of any day
means the result obtained by dividing (i) $1,000 by (ii) the
then applicable Conversion Reference Rate, rounded to the nearest
cent.
“Conversion
Reference Rate” means initially 75.0751 shares of Common
Stock for each $1,000 principal amount of Securities, as adjusted
from time to time pursuant to the provisions of this
Indenture.
“Conversion
Reference Period” means:
(1) for Securities
that are cash converted during the period beginning on the 45th
Scheduled Trading Day prior to the Final Maturity Date and ending
on the third Business Day prior to the Final Maturity Date, the 40
consecutive Trading Days commencing on the 42nd Scheduled Trading
Day preceding the Final Maturity Date; and
(2) in all other
instances, the 40 consecutive Trading Days beginning on the third
Trading Day following the Cash Conversion Trigger Date.
“Conversion
Reference Value” means the sum of the Daily Conversion
Reference Values for each of the 40 consecutive Trading Days of the
Conversion Reference Period.
“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 hereof is located at 101
Barclay Street, 8W, New York, New York 10286, Attention: Corporate
Trust Division — Corporate Finance Unit, or such other
address as the Trustee may designate from time to time by notice to
the Company, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee
may designate from time to time by notice to the
Company).
“Credit
Facility Debt” means any Indebtedness of the Company for
borrowed money that (i) is incurred pursuant to a credit
agreement, including pursuant to the Senior Credit Facility, loan
agreement or other agreement providing for revolving credit loans,
term loans or other long-term debt entered into between the Company
and any lender or group of lenders and (ii) has an aggregate
principal amount or committed amount of at least
$50.0 million.
“Currency
Hedging Agreements” means one or more of the following
agreements which shall be entered into by one or more financial
institutions: foreign exchange contracts, currency swap agreements
or other similar agreements or arrangements designed to protect
against the fluctuations in currency values.
“Custodian”
means any receiver, interim receiver, receiver and manager,
trustee, assignee, liquidator, custodian or similar official under
any Bankruptcy Law.
“Daily
Conversion Reference Value” means, with respect to any
Trading Day, for each $1,000 principal amount of Securities, an
amount equal to 1/40th of the product of (i) the Conversion
Reference Rate and (ii) the Volume Weighted Average Price per
share of Common Stock on such Trading Day.
4
“Default”
means any event that is, or after notice or passage of time or both
would be, an Event of Default.
“Definitive
Securities” means Certificated Securities that are not Global
Securities.
“Domestic
Subsidiary” means a Subsidiary of the Company organized under
the laws of the United States of America or any state of the United
States of America or the District of Columbia.
“Exchange
Act” means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder, as in effect
from time to time.
“Fair Market
Value” means, with respect to any asset or property, the sale
value that would be obtained in an arm’s-length free market
transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no
compulsion to buy. Fair Market Value shall be determined by the
Board of Directors of the Company acting in good faith and shall be
evidenced by a resolution of the Board of Directors of the
Company.
“Final
Maturity Date” means September 15, 2015.
“Fundamental
Change” means the occurrence of a Change of Control or a
Termination of Trading.
“Fundamental
Change Effective Date” means the date on which any
Fundamental Change becomes effective.
“Fundamental
Change Purchase Price” of any Security, means, subject to
Section 3.03(d), 100% of the principal amount of the Security
to be purchased plus accrued and unpaid interest, if any, to, but
excluding, the Fundamental Change Purchase Date.
“GAAP”
means generally accepted accounting principles in the United States
of America 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 and the Public Company
Accounting Oversight Board or in such other statements by such
other entity as have been approved by a significant segment of the
accounting profession, which are in effect from time to
time.
“Global
Security” means a Security in global form that is in
substantially the form attached as Exhibit A and that includes
the legend called for in footnote 1 thereof and the related
schedule and which is deposited with the Depositary or its
custodian and registered in the name of the Depositary or its
nominee.
“Guarantee”
means the guarantee by any Guarantor of the Company’s
obligations under this Indenture in accordance with the provisions
of Article 11 hereof.
“Guarantor”
means any Subsidiary of the Company which is a guarantor of the
Securities, including any Person that is required after the Issue
Date on the date of determination to execute a guarantee of the
Securities pursuant to this Indenture, and its successors and
assigns, in each case, until the Guarantee of such Person has been
released in accordance with the provisions of this
Indenture.
5
“Holder”
or “Holder of a Security” means the person in whose
name a Security is registered on the Registrar’s
books.
“Indebtedness”
means, with respect to any Person on any date of determination,
without duplication:
(1) the principal
of and premium (if any) in respect of indebtedness of such Person
for borrowed money;
(2) the principal
of and premium (if any) in respect of indebtedness of such Person
evidenced by bonds, debentures, notes or other similar
instruments;
(3) all Capital
Lease Obligations and all Attributable Debt of such
Person;
(4) all
obligations of such Person issued or assumed as the deferred
purchase price of property, all conditional sale obligations and
all obligations under any title retention agreement, in each case
to the extent the purchase price is due more than six months from
the date the obligation is incurred (but excluding trade accounts
payable and other accrued liabilities arising in the ordinary
course);
(5) all
obligations for the reimbursement of any obligor on any letter of
credit, banker’s acceptance or similar credit
transaction;
(6) guarantees and
other contingent obligations in respect of indebtedness referred to
in clauses (1) through (5) above and clause
(8) below;
(7) all
obligations of any other Person of the type referred to in clauses
(1) through (6) which are secured by any lien on any
property or asset of such Person, the amount of such obligation
being deemed to be the lesser of the Fair Market Value of such
property or asset or the amount of the obligation so
secured;
(8) all
obligations under Currency Hedging Agreements and all Interest Rate
Agreements of such Person; and
(9) all
obligations represented by Redeemable Capital Stock of such
Person.
“Indenture”
means this instrument as originally executed (including all
exhibits and schedules thereto) and as it may from time to time be
supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof,
including the provisions of the TIA that are automatically deemed
to be part of this Indenture by operation of the TIA, if
any.
“Initial
Purchasers” means the initial purchasers named in the
Purchase Agreement, dated September 15, 2008, among the
Company, the Guarantors and the initial purchasers named
therein.
“Interest
Payment Date” means September 15 and March 15 of
each year, commencing March 15, 2009.
“Interest
Rate Agreements” means one or more of the following
agreements which shall be entered into by one or more financial
institutions: interest rate protection agreements (including
interest rate
6
swaps, caps,
floors, collars and similar agreements) and/or other types of
interest rate hedging agreements from time to time.
“Issue
Date” means the date of this Indenture.
“Market
Disruption Event” means the occurrence or existence for more
than one half hour period in the aggregate on any scheduled Trading
Day for the Common Stock of any suspension or limitation imposed on
trading (by reason of movements in price exceeding limits permitted
by the New York Stock Exchange or otherwise) in the Common Stock or
in any options, contracts or future contracts relating to the
Common Stock, and such suspension or limitation occurs or exists at
any time before 1:00 p.m. (New York City time) on such
day.
“Officer”
means the Chairman, any Vice Chairman, the President, the Chief
Executive Officer, any Vice President, the Chief Financial Officer,
the Chief Operating Officer, the Treasurer or any Assistant
Treasurer, or the Secretary or any Assistant Secretary of the
Company.
“Officer’s
Certificate” means a certificate signed by an Officer of the
Company or of any Guarantor, as the case may be, and delivered to,
the Trustee; provided , however , that for purposes
of Section 5.03, “Officer’s Certificate”
means a certificate signed by the principal executive officer,
principal financial officer, principal operating officer, principal
accounting officer or treasurer of the Company.
“Opinion of
Counsel” means a written opinion of counsel, who may be an
employee of or counsel for the Company or the Trustee and who shall
be reasonably acceptable to the Trustee, and which opinion shall
contain the statements required by Section 12.04.
“Person”
means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or
political subdivision thereof.
“Redeemable
Capital Stock” means any Capital Stock that, either by its
terms or by the terms of any security into which it is convertible
or exchangeable or otherwise, is or upon the happening of an event
or passage of time would be, required to be redeemed prior to the
Final Maturity Date or is redeemable at the option of the Holder
thereof at any time prior to the Final Maturity Date (other than
upon a change of control of or sale of assets by the Company so
long as such instrument provides that such redemption will not be
required unless permitted under this Indenture), or is convertible
into or exchangeable for debt securities at any time prior to the
Final Maturity Date at the option of the holder thereof.
“Regular
Record Date” means, with respect to each Interest Payment
Date, the September 1 or March 1, as the case may be,
immediately preceding such Interest Payment Date.
“Sale
Leaseback Transaction” means the leasing by the Company or
any Subsidiary of any asset, whether owned at the Issue Date or
acquired after the Issue Date (except for temporary leases for a
term, including any renewal term, of up to three years and except
for leases between the Company and any Subsidiary or between
Subsidiaries), which property has been or is to be sold or
transferred by the Company or such Subsidiary to any party with the
intention of taking back a lease of such property.
“Scheduled
Trading Day” means any day that is scheduled to be a Trading
Day.
“SEC”
means the U.S. Securities and Exchange Commission.
7
“Securities”
means up to $575,000,000 aggregate principal amount of 3.75% Cash
Convertible Notes due 2015, or any $1,000 principal amount thereof
(each a “Security”), as amended or supplemented from
time to time, that are issued under this Indenture.
“Securities
Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as in effect from
time to time.
“Securities
Custodian” means the Trustee, as custodian with respect to
the Securities in global form, or any successor thereto.
“Senior
Credit Facility” means the Amended and Restated Credit
Agreement, dated as of December 20, 2007, by and among the Company,
Mylan Luxembourg 5 S.à.r.l., JPMorgan Chase Bank, N.A., as
administrative agent, the lenders party thereto and the other
parties named therein.
“Significant
Subsidiary” means, with respect to any Person, any Subsidiary
(or group of Subsidiaries as to which a specified condition
applies) that would be a “significant subsidiary” under
Rule 1-02(w) of Regulation S-X under the Securities
Act.
“Special
Record Date” for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to
Section 2.16.
“Stated
Maturity” means, with respect to any installment of interest
or principal on any Security, the date on which such payment of
interest or principal shall become due and payable.
“Subsidiary”
means, with respect to any specified Person: (1) any
corporation, association or other business entity of which more
than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees of the
corporation, association or other business entity is at the time
owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person (or a combination
thereof); or (2) any partnership (a) the sole general
partner or the managing general partner of which is such Person or
a Subsidiary of such Person or (b) the only general partners
of which are that Person or one or more Subsidiaries of that Person
(or any combination thereof).
“Termination
of Trading” means any date on which the Common Stock (or
other common stock in respect of which the Conversion Reference
Value of the Securities is determined) is not listed on the New
York Stock Exchange, NASDAQ Global Select Market, NASDAQ Global
Market or the American Stock Exchange or ceases to be so traded in
contemplation of a delisting.
“TIA”
means the Trust Indenture Act of 1939, as amended, and the rules
and regulations thereunder as in effect on the date of this
Indenture, except to the extent that the Trust Indenture Act or any
amendment thereto expressly provides for application of the Trust
Indenture Act as in effect on another date.
“Trading
Day” means any day on which (i) there is no Market
Disruption Event and (ii) the New York Stock Exchange is open
for trading, or, if the Common Stock is not listed on the New York
Stock Exchange, any day on which the principal national securities
exchange on which the Common Stock is listed is open for trading,
or, if the Common Stock is not listed on a national securities
exchange, any Business Day. A “Trading Day” only
includes those days that have a scheduled closing time of 4:00 p.m.
(New York City time) or the then standard closing time for regular
trading on the relevant exchange or trading system.
8
“Trading
Price” of the Securities on any date of determination means,
solely for the purposes of Article 4, the average of the
secondary market bid quotations obtained by the Trustee for $2.0
million principal amount of Securities at approximately 3:30 p.m.,
New York City time, on such determination date from three
nationally recognized securities dealers the Company selects, which
may include the Initial Purchasers, provided that if three
such bids cannot reasonably be obtained by the Trustee, but two
such bids are obtained, then the average of the two bids shall be
used, and if only one such bid can reasonably be obtained by the
Trustee, that one bid shall be used. If the Trustee cannot
reasonably obtain at least one bid for $2.0 million principal
amount of Securities from a nationally recognized securities dealer
selected by the Company, then the Trading Price per $1,000
principal amount of Securities will be deemed to be less than 98%
of the product of the Closing Price of the Common Stock and the
then applicable Conversion Reference Rate per $1,000 principal
amount of Securities.
“Trustee”
means the party named as such in the first paragraph of this
Indenture until a successor replaces it in accordance with the
provisions of this Indenture, and thereafter means the
successor.
“Trust
Officer” means, with respect to the Trustee, any officer
assigned to the Corporate Trust Division — Corporate Finance
Unit (or any successor division or unit) of the Trustee located at
the Corporate Trust Office of the Trustee, who shall have direct
responsibility for the administration of this Indenture and, for
the purposes of Section 8.01(c)(2) and the proviso in
Section 8.02, shall also include any other officer of the
Trustee to whom any corporate trust matter is referred because of
such officer’s knowledge of and familiarity with the
particular subject.
“Vice
President” when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a
number or a word or words added before or after the title
“vice president.”
“Volume
Weighted Average Price” per share of Common Stock on any
Trading Day means such price as displayed on Bloomberg (or any
successor service) page MYL.N <equity> VAP in respect of the
period from 9:30 a.m. to 4:00 p.m., New York City time, on such
Trading Day; or, if such price is not available, the Volume
Weighted Average Price means the market value per share of the
Common Stock on such day as determined by a nationally recognized
independent investment banking firm retained for this purpose by
the Company.
“Voting
Stock” of any Person means Capital Stock of the class or
classes pursuant to which the holders of such Capital Stock have
the general voting power under ordinary circumstances to elect at
least a majority of the board of directors, managers or trustees of
such Person (irrespective of whether or not at the time Capital
Stock of any other class or classes shall have or might have voting
power by reason of the happening of any contingency).
Section 1.02.
Other Definitions .
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Term
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Defined in Section
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12.05
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4.01
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2.01
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4.10
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“Cash Conversion Trigger
Date”
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4.02
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2.01
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2.16
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2.01
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9
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Term
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Defined in Section
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4.01
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7.01
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4.01
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4.06
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“Fundamental Change Conversion
Notice”
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4.01
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“Fundamental Change Purchase
Date”
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3.01
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“Fundamental Change Purchase
Notice”
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3.01
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4.01
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“Issuer Fundamental Change
Notice”
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3.01
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4.01
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7.01
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2.09
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2.03
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2.03
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2.03
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“Resale Restriction Termination
Date”
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2.07
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2.07
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2.03
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7.02
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2.16
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4.06
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4.01
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Section 1.03.
Trust Indenture Act Provisions .
Unless the context
otherwise requires or indicates, whenever this Indenture refers to
a provision of the TIA as being applicable to this Indenture, that
provision is incorporated by reference in and made a part of this
Indenture. The following TIA term used in this Indenture has the
following meaning:
“obligor”
on the indenture securities means the Company or any other obligor
on the Securities.
All other terms
used in this Indenture that are defined in the TIA, defined by TIA
reference to another statute or defined by any SEC rule and not
otherwise defined herein have the meanings assigned to them
therein.
Section 1.04.
Rules of Construction .
For all purposes
of this Indenture, except as otherwise provided or unless the
context otherwise requires:
(1) a term
has the meaning assigned to it;
(2) an
accounting term not otherwise defined has the meaning assigned to
it in accordance with GAAP;
(3) words
in the singular include the plural, and words in the plural include
the singular;
10
(4) the
term “merger” includes a statutory share exchange and
the term “merged” has a correlative meaning;
(5) the
masculine gender includes the feminine and the neuter;
(6) the
terms “include,” “including” and similar
terms should be construed as if followed by the phrase
“without limitation”;
(7) references to agreements and other
instruments include subsequent amendments thereto; and
(8) all
“Article,” “Exhibit” and
“Section” references are to Articles, Exhibits and
Sections, respectively, of or to this Indenture unless otherwise
specified herein, and the terms “hereunder,”
“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.
Section 2.01.
Form and Dating .
The Securities and
the Trustee’s certificate of authentication shall be
substantially in the respective forms set forth in Exhibit A,
which Exhibit is incorporated in and made part of this Indenture.
The Securities may include such letters, numbers or other marks of
identification and such notations, legends, endorsements or changes
as the Officer executing the same may approve (execution thereof to
be conclusive evidence of such approval) and as are not
inconsistent with the provisions of this Indenture, or as may be
required by the Trustee, the Depositary, or as may be required to
comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any national
securities exchange or automated quotation system on which the
Securities may be listed or quoted, or to conform to usage, or to
indicate any special limitations or restrictions to which any
particular Securities are subject. Each Security shall be dated the
date of its authentication.
(a)
Global Securities . All of the Securities initially being
offered and sold to the Initial Purchasers shall be issued in the
form of one or more Global Securities, which shall be deposited on
behalf of the purchasers of the Securities represented thereby with
The Bank of New York Mellon, at its Corporate Trust Office, as
custodian for the depositary, The Depository Trust Company
(“DTC,” and such depositary, or any successor thereto,
being hereinafter referred to as the “Depositary”), and
registered in the name of its nominee, Cede & Co. (or any
successor thereto), for the accounts of participants in the
Depositary, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. The aggregate principal amount of
the Global Securities may from time to time be increased or
decreased by adjustments made on the records of the Securities
Custodian as hereinafter provided, subject in each case to
compliance with the Applicable Procedures.
(b)
Global Securities in General . The Global Security shall
represent such of the outstanding Securities as shall be specified
therein and each shall provide that it shall represent the
aggregate principal amount of outstanding Securities from time to
time endorsed thereon and that the aggregate principal amount of
outstanding Securities represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges,
purchases or conversions of such Securities.
11
Members of, or
participants in, the Depositary (“Agent Members”) shall
have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary or under the Global
Security, and the Depositary (including, for this purpose, its
nominee) may be treated by the Company, the Trustee and any agent
of the Company or the Trustee as the absolute owner and Holder of
such Global Security for all purposes whatsoever. None of the
Trustee, the Paying Agent or any Registrar shall have any
responsibility or obligation to any beneficial owner in a Global
Security, an Agent Member or other Person with respect to the
accuracy of the records of the Depositary or its nominee or of any
Agent Member, with respect to any ownership interest in the
Securities or with respect to the delivery to any Agent Member,
beneficial owner or other Person (other than the Depositary) of any
notice (including any notice of redemption) or the payment of any
amount, under or with respect to such Securities. All notices and
communications to be given to the Holders and all payments to be
made to Holders under the Securities and this Indenture shall be
given or made only to or upon the order of the registered Holders
(which shall be the Depositary or its nominee in the case of the
Global Security). The rights of beneficial owners in a Global
Security shall be exercised only through the Depositary subject to
the Applicable Procedures. The Trustee, the Paying Agent and each
Registrar shall be entitled to rely and shall be fully protected in
relying upon information furnished by the Depositary with respect
to its members, participants and any beneficial owners. The
Trustee, the Paying Agent and each Registrar shall be entitled to
deal with the Depositary, and any nominee thereof, that is the
registered Holder of any Global Security for all purposes of this
Indenture relating to such Global Security (including the payment
of principal, premium, if any, and interest and additional amounts,
if any, and the giving of instructions or directions by or to the
owner or Holder of a beneficial ownership interest in such Global
Security) as the sole Holder of such Global Security and shall have
no obligations to the beneficial owners thereof. None of the
Trustee, the Paying Agent or any Registrar shall have any
responsibility or liability for any acts or omissions of the
Depositary with respect to such Global Security, for the records of
any such depositary, including records in respect of beneficial
ownership interests in respect of any such Global Security, for any
transactions between the Depositary and any Agent Member or between
or among the Depositary, any such Agent Member and/or any Holder or
owner of a beneficial interest in such Global Security, or for any
transfers of beneficial interests in any such Global
Security.
Notwithstanding
the foregoing, nothing herein shall (1) 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 (2) impair, as between the
Depositary and its Agent Members, the operation of customary
practices governing the exercise of the rights of a Holder of any
Security.
(c) Book
Entry Provisions . The Company shall execute and the Trustee
shall, in accordance with this Section 2.01(c), authenticate
and deliver initially one or more Global Securities that
(1) shall be registered in the name of the Depositary or its
nominee, (2) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instructions and
(3) shall bear legends substantially to the following
effect:
“UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS
12
AN INTEREST
HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF
THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE
FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”
Section 2.02.
Execution and Authentication .
(a) The
aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is limited to $575,000,000
aggregate principal amount, except as provided in
Sections 2.07, 2.08, 2.11 and 2.18.
(b) The
Securities shall be executed on behalf of the Company by one of its
Officers. The signatures of any of the Officers on the Securities
may be manual or facsimile.
(c) Securities
bearing the manual or facsimile signatures of individuals who were
at any time the proper officers of the Company shall bind the
Company, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the
date of such Securities.
(d) No
Security or Guarantee endorsed thereon shall be entitled to any
benefit under this Indenture or be valid or obligatory for any
purpose unless there appears on such Security a certificate of
authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of an authorized
signatory, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has
been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture.
(e) The
Trustee shall authenticate and make available for delivery
Securities for original issue in the aggregate principal amount of
$575,000,000 upon receipt of a Company Order. The Company Order
shall specify the amount of Securities to be authenticated, shall
provide that all such Securities will be represented by a Global
Security and the date on which each original issue of Securities is
to be authenticated.
(f) The
Trustee shall act as the initial authenticating agent. Thereafter,
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
shall have the same rights as an Agent to deal with the Company or
an Affiliate of the Company.
(g) The
Securities shall be issuable only in registered form without
coupons and only in minimum denominations of $1,000 principal
amount and any integral multiple thereof.
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Section 2.03.
Registrar and Paying Agent .
(a) The
Company shall maintain one or more offices or agencies where
Securities may be presented for registration of transfer or for
exchange (each, a “Registrar”), one or more offices or
agencies where Securities may be presented or surrendered for
payment, including upon cash conversion (each, a “Paying
Agent”) and one or more offices or agencies where notices and
demands to or upon the Company in respect of the Securities and
this Indenture may be served. The Company will at all times
maintain a Paying Agent, Registrar and an office or agency where
notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served in the Borough of
Manhattan, The City of New York. One of the Registrars (the
“Primary Registrar”) shall keep a register of the
Securities (the “Security Register”) and of their
transfer and exchange. At the option of the Company, any payment of
cash may be made by check mailed to the Holders at their addresses
set forth in the register of Holders.
(b) The
Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture, provided that the Agent
may be an Affiliate of the Trustee. The agreement shall implement
the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address, and any
change in the name or address, of any Agent not a party to this
Indenture. If the Company fails to maintain a Registrar, Paying
Agent or agent for service of notices and demands in any place
required by this Indenture, or fails to give the foregoing notice,
the Trustee shall act as such. The Company or any Affiliate of the
Company may act as Paying Agent (except for the purposes of
Article 9).
(c) The
Company hereby initially designates The Bank of New York Mellon as
Paying Agent, Primary Registrar and Securities Custodian, and
designates the Corporate Trust Office of the Trustee as the office
or agency of the Company for each of the aforesaid purposes and as
the office or agency where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be
served.
Section 2.04.
Paying Agent To Hold Money in Trust .
Unless otherwise
specified herein, prior to 10:00 a.m., New York City time, on
each due date of the payment of principal of, interest on, or the
Conversion Reference Value with respect to, the Securities, the
Company shall deposit a sum sufficient to pay such principal,
interest or Conversion Reference Value so becoming due. A Paying
Agent shall hold in trust for the benefit of Holders of Securities
or the Trustee all money held by the Paying Agent for the payment
of principal of, interest on, or the Conversion Reference Value
with respect to, the Securities, and shall notify the Trustee of
any failure by the Company (or any other obligor on the Securities)
to make any such payment. If the Company or an Affiliate of the
Company acts as Paying Agent, it shall, before 10:00 a.m., New
York City time, on each due date of the principal of, interest on,
or the Conversion Reference Value with respect to, any Securities,
segregate the money and hold it as a separate trust fund for the
benefit of the applicable Holders. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee,
and the Trustee may at any time during the continuance of any
Default, upon written request to a Paying Agent, require such
Paying Agent to pay forthwith to the Trustee all sums so held in
trust by such Paying Agent. Upon doing so, the Paying Agent (other
than the Company) shall have no further liability for the
money.
Any money
deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of, interest on,
or the Conversion Reference Value with respect to, any Security and
remaining unclaimed for two years after such principal, interest or
Conversion Reference Value has become due and payable shall
promptly be paid to the Company or (if then held by the Company)
shall be discharged from such trust; and the Holder of such
Security shall thereafter, as an un-
14
secured general
creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof,
shall thereupon cease; provided , however , that the
Trustee or such Paying Agent, before being required to make any
such repayment, may at the expense of the Company cause to be
published once, in a newspaper published in the English language,
customarily published on each Business Day and of general
circulation in The City of New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not
be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will promptly be
repaid to the Company.
Section 2.05.
[Reserved] .
Section 2.06. Lists of Holders of Securities
.
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
of Securities. The Company shall furnish or cause the Registrar to
furnish to the Trustee (a) semiannually, not more than
10 days after each Regular Record Date, a list, in such form
as the Trustee may reasonably require, of the names and addresses
of the Holders as of such Regular Record Date; and (b) at such
other times as the Trustee may request in writing, within
30 days after receipt by the Company of any such request, a
list of similar form and content to that in subsection
(a) hereof as of a date not more than 15 days prior to
the time such list is furnished; provided , however ,
that if and so long as the Trustee shall be the Primary Registrar,
no such list need be furnished.
Section 2.07.
Transfer and Exchange .
(a) Subject
to compliance with any applicable additional requirements contained
below and in Section 2.13, when a Security is presented to a
Registrar with a request to register a transfer thereof or to
exchange such Security 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; provided , however , that
every Security presented or surrendered for registration of
transfer or exchange shall be duly endorsed or accompanied by an
assignment form and, if applicable, a transfer certificate each
substantially in the form included in Exhibit A, and completed
in a manner satisfactory to the Registrar and duly executed by the
Holder thereof or its attorney duly authorized in writing. To
permit registration of transfers and exchanges, upon surrender of
any Security for registration of transfer or exchange at an office
or agency maintained pursuant to Section 2.03, the Company
shall execute and the Trustee shall authenticate Securities of a
like aggregate principal amount 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 transfer tax or similar governmental charge that may be
imposed in relation thereto; provided that this sentence
shall not apply to any exchange pursuant to Section 2.11,
2.13(a), 4.02(d) or 10.06.
(b) Neither
the Company, any Registrar nor the Trustee shall be required to
register the transfer of or exchange any Securities or portions
thereof in respect of which a Fundamental Change Purchase Notice
has been delivered and not withdrawn by the Holder thereof (except,
in the case of the purchase of a Security in part, the portion
thereof not to be purchased).
(c) 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 registration of transfer or
exchange.
15
(d) Any
Registrar appointed pursuant to Section 2.03 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.
(e) Each
Holder of a Security agrees to indemnify the Company and the
Trustee against any liability that may result from the registration
of 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.
(f) 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 Agent Members or other beneficial owners of
interests in any Global Security) other than to require delivery of
such certificates 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.
(g) In the
case of every Security that bears or is required under this
Section 2.07(g) to bear the legend set forth in this
Section 2.07(g) (the “Restricted Securities”),
such Security shall be subject to the restrictions on transfer set
forth in this Section 2.07(g) (including the legend set forth
below), unless such restrictions on transfer shall be eliminated or
otherwise waived by written consent of the Company, and the Holder
of each such Restricted Security, by such Holder’s acceptance
thereof, agrees to be bound by all such restrictions on transfer.
As used in this Section 2.07(g), the term
“transfer” encompasses any sale, pledge, transfer or
other disposition whatsoever of any Restricted Security.
Until the later of
the date (the “Resale Restriction Termination Date”)
that is (1) the date that is one year after the Issue Date of
the Securities and (2) such later date, if any, as may be
required by applicable laws, any certificate evidencing any
Security (and all securities issued in exchange therefor or
substitution thereof) shall bear a legend in substantially the
following form (unless (i) such Security has been transferred
(or exchanged for registered securities) pursuant to a registration
statement that was effective at the time of such transfer,
(ii) such Security has been transferred pursuant to the
exemption from registration provided by Rule 144 under the
Securities Act or any similar provision then in force under the
Securities Act, or (iii) unless otherwise agreed by the
Company in writing, with notice in writing thereof to the
Trustee):
THE NOTES
EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) AND MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
(A)(1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER
THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144A, (2) TO AN INSTITUTIONAL
ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, (3) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF AVAILABLE) OR (4) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (B) IN
ACCORDANCE WITH
16
ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES.
No transfer of any
Security prior to the Resale Restriction Termination Date shall be
registered by the Registrar unless the applicable box on the
completed Form of Assignment and Transfer (Exhibit A hereto)
has been checked and, if such transfer is being made to an
institutional accredited investor pursuant to clause (b) of
the restricted securities legend on the Securities or pursuant to
Rule 144 under the Securities Act pursuant to clause
(c) of the restricted securities legend on the Securities, the
transferor delivers to the Trustee and the Company any additional
information or documents (including, if requested by the Company,
legal opinions) as are reasonably requested by the Trustee or the
Company so as to confirm that such transfer is being made in
compliance with the restrictions set forth in this
Section 2.07.
Any Security (or
security issued in exchange or substitution therefor) as to which
such restrictions on transfer shall have expired in accordance with
their terms may, upon surrender of such Security for exchange to
any Registrar in accordance with the provisions of this Section
2.07(g), be exchanged for a new Security or Securities, of like
tenor and aggregate principal amount, which shall not bear the
restrictive legend required by this Section 2.07(g). The
Company shall notify the Trustee in writing upon the occurrence of
the Resale Restriction Termination Date and, if applicable,
promptly after a registration statement with respect to the
Securities has been declared effective under the Securities
Act.
(h) Following
the one year anniversary of the Issue Date, any Security that is
purchased or otherwise held by the Company or any affiliate (as
defined in Rule 144 under the Securities Act) thereof may not
be sold or otherwise transferred by the Company or such affiliate
unless (1) such Security is sold or otherwise transferred to
the Company or an affiliate (as defined in Rule 144 under the
Securities Act) of the Company, (2) such transaction is
registered under the Securities Act, or (3) such transaction
is made pursuant to an exemption from the registration requirements
of the Securities Act that results in such Security not being a
“restricted security” (as defined in Rule 144
under the Securities Act) in the hands of the acquirer
thereof.
Notwithstanding
the foregoing, during the period of one year after the Issue Date,
the Company shall not, and shall not permit any of its
“affiliates” (as defined in Rule 144 under the
Securities Act) to, resell any of the Securities that constitute
“restricted securities” under Rule 144 under the
Securities Act that are held by any of them.
(i) Notwithstanding
any provision of Section 2.07 to the contrary, in the event
Rule 144 under the Securities Act (or any successor rule) is
amended to change the one-year holding period thereunder (or the
corresponding period under any successor rule), from and after
receipt by the Trustee of the Officers’ Certificate and
Opinion of Counsel provided for in this Section 2.07(i),
(i) each reference in Section 2.07(g) to “one
year” shall be deemed for all purposes hereof to be
references to such changed period and (ii) all corresponding
references in the Securities (including the definition of Resale
Restriction Termination Date) shall be deemed for all purposes
hereof to be references to such changed period, provided
that such changes shall not become effective if they are otherwise
prohibited by, or would otherwise cause a violation of, the
then-applicable U.S. securities laws. The provisions of this
Section 2.07(i) shall not be effective until such time as the
Opinion of Counsel and Officers’ Certificate have been
received by the Trustee hereunder. This Section 2.07(i) shall
apply to successive amendments to Rule 144 under the
Securities Act (or any successor rule) changing the holding period
thereunder.
17
Section 2.08.
Replacement Securities .
(a) If
(1) any mutilated Security is surrendered to the Trustee, or
(2) the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Security, and
there is delivered to the Company and the Trustee, such security or
indemnity, in each case, as may be required by them to save each of
them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a protected
purchaser, the Company shall execute and upon a Company Request the
Trustee shall authenticate and deliver, in exchange for any such
mutilated Security or in lieu of any such destroyed, lost or stolen
Security, a replacement Security of like tenor and principal
amount, bearing a number not contemporaneously outstanding and each
Guarantor shall execute a replacement Guarantee.
(b) If any
such mutilated, destroyed, lost or stolen Security has become or is
about to become due and payable, or is about to be purchased by the
Company pursuant to Article 3, or cash converted pursuant to
Article 4, the Company in its discretion may, instead of
issuing a new Security, pay, purchase or cash convert such
Security, as the case may be.
(c) Upon the
issuance of any new Securities under this Section 2.08, 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
counsel and the Trustee) in connection therewith.
(d) Every new
Security and Guarantee issued pursuant to this Section 2.08 in
lieu of any mutilated, destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the
Company and each Guarantor, whether or not the mutilated,
destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all benefits of this Indenture
equally and proportionately with any and all other Securities duly
issued hereunder.
(e) The
provisions of this Section 2.08 are (to the extent lawful)
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 .
(a) Securities
outstanding (“Outstanding”) at any time are all
Securities authenticated by the Trustee, except for those canceled
by it, those purchased pursuant to Article 3, those cash
converted pursuant to Article 4, those delivered to the
Trustee for cancellation or surrendered for transfer or exchange
and those described in this Section 2.09 as not
Outstanding.
(b) If a
Security is replaced pursuant to Section 2.08, such replaced
Security ceases to be Outstanding unless the Company receives proof
satisfactory to it that the replaced Security is held by a
protected purchaser.
(c) If a
Paying Agent holds in respect of the Outstanding Securities on a
Fundamental Change Purchase Date, the Final Maturity Date or any
date of any cash conversion money sufficient to pay the principal
of or Conversion Reference Value with respect to and accrued
interest on Securities (or portions thereof) payable on that date,
then on and after such Fundamental Change Purchase Date, Final
Maturity Date or date of cash conversion, as the case may be, such
Securities (or portions thereof, as the case may be) shall cease to
be Outstanding and interest on them shall cease to
accrue.
18
(d) Subject
to the restrictions contained in Section 2.10, a Security does
not cease to be Outstanding because the Company or an Affiliate of
the Company holds the Security.
Section 2.10.
Treasury Securities .
In determining
whether the Holders of the required principal amount of Securities
have concurred in any request, demand, authorization, notice,
direction, waiver or consent, Securities owned by the Company or
any other obligor on the Securities or by any Affiliate of the
Company or of such other obligor shall be disregarded, except that,
for purposes of determining whether the Trustee shall be protected
in relying on any such request, demand, authorization, notice,
direction, waiver or consent, only Securities which a Trust 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
execute, and, upon receipt of a Company Order, the Trustee shall
authenticate and deliver, temporary Securities. Temporary
Securities shall be substantially in the form of Definitive
Securities but may have variations that the Company with the
consent of the Trustee considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare
and the Trustee shall authenticate and deliver Definitive
Securities in exchange for temporary Securities representing an
equal principal amount of Securities. The temporary Securities will
be exchanged for Definitive Securities in accordance with
Sections 2.07 and 2.13 hereof. 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 any
Securities surrendered to them for transfer, exchange, purchase,
payment or cash conversion. The Trustee and no one else shall
cancel, in accordance with its standard procedures, all Securities
surrendered for transfer, exchange, purchase, payment, cash
conversion or cancellation and shall dispose of the canceled
Securities in accordance with its customary procedures or deliver
the canceled Securities to the Company upon request. All Securities
which are purchased or otherwise acquired by the Company or any of
its Subsidiaries prior to the Final Maturity Date pursuant to
Article 3 shall be delivered to the Trustee for cancellation,
and the Company may not hold or resell such Securities or issue any
new Securities to replace any such Securities or any Securities
that any Holder has cash converted pursuant to Article 4. The
Trustee shall maintain a record of all canceled Securities. The
Trustee shall provide the Company a list of all Securities that
have been canceled from time to time as requested by the Company in
writing.
Section 2.13.
Legend; Additional Transfer and Exchange Requirements
.
(a) A Global
Security may not be transferred, in whole or in part, to any Person
other than the Depositary or a nominee or any successor thereof,
and no such transfer to any such other Person may be registered;
provided that the foregoing shall not prohibit any transfer
of a Security that is issued in exchange for a Global Security but
is not itself a Global Security. No transfer of a Security to any
Person shall be effective under this Indenture or the Securities
unless and until such Security has been registered in the name of
such Person. Notwithstanding any other provisions of this Indenture
or the Securities, transfers of a Global Security, in whole or in
part, shall be made only in accordance with this
Section 2.13.
19
(b) The
provisions below shall apply only to Global Securities:
(1) Each Global
Security authenticated under this Indenture shall be registered in
the name of the Depositary or a nominee thereof and delivered to
such Depositary or a nominee thereof or custodian therefor, and
each such Global Security shall constitute a single Security for
purposes of this Indenture.
(2)
Notwithstanding any other provisions of this Indenture or the
Securities, a Global Security shall not be exchanged in whole or in
part for a Security registered, and no transfer of a Global
Security in whole or in part shall be registered in the name of any
Person other than the Depositary or one or more nominees thereof;
provided that a Global Security may be exchanged for
Securities registered in the names of any person designated by the
Depositary in the event that (A) the Depositary has notified
the Company that it is unwilling or unable to continue as
Depositary for such Global Security or such Depositary has ceased
to be a “clearing agency” registered under the Exchange
Act, and in either case a successor Depositary is not appointed by
the Company within 90 days after receiving such notice or
becoming aware that the Depositary has ceased to be a
“clearing agency,” (B) an Event of Default has
occurred and is continuing with respect to the Securities or
(C) the Company executes and delivers to the Trustee and the
Primary Registrar an Officer’s Certificate stating that such
Global Security shall be so exchangeable. Any Global Security
exchanged pursuant to the preceding sentence shall be so exchanged
as directed by the Depositary. Any Security issued in exchange for
a Global Security or any portion thereof shall be a Global
Security; provided , however , that any such Security
so issued that is registered in the name of a Person other than the
Depositary or a nominee thereof shall not be a Global
Security.
(3) Securities
issued in exchange for a Global Security or any portion thereof
that are not issued as a Global Security shall be issued in
definitive, fully registered form, without interest coupons, shall
have a 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 Depositary
shall designate and shall bear the applicable legends provided for
herein. Any Global Security to be exchanged in whole shall be
surrendered by the Depositary to the Trustee or the 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
Trustee is acting as custodian for the Depositary 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 and upon such Global Security. 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
Depositary or an authorized representative thereof.
(4) Subject to
clause (6) of this Section 2.13(b), the registered Holder
may grant proxies and otherwise authorize any Person, including
Agent Members and Persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take
under this Indenture or the Securities.
(5) In the event
of the occurrence of any of the events specified in clause
(2) of this Section 2.13(b), the Company will promptly
make available to the Trustee a reasonable supply of Certificated
Securities in definitive, fully registered form, without interest
coupons.
(6) Neither Agent
Members nor any other Persons on whose behalf Agent Members may act
shall have any rights under this Indenture with respect to any
Global Security registered in the name of the Depositary or any
nominee thereof, or under any such Global Security, and
the
20
Depositary or
such nominee, as the case may be, may be treated by the Company,
the Trustee and any agent of the Company, the Trustee and any agent
of the Company or the Trustee as the absolute owner and Holder of
such Global Security for all purposes whatsoever. Notwithstanding
the foregoing, nothing 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 such nominee, as the case may be, or
impair, as between the Depositary, its Agent Members and any other
Person on whose behalf an Agent Member may act, the operation of
customary practices of such Persons governing the exercise of the
rights of a Holder of any Security.
(7) At such time
as all interests in a Global Security have been converted, canceled
or exchanged for Securities in certificated form, such Global
Security shall, upon receipt thereof, be canceled by the Trustee in
accordance with standing procedures and instructions existing
between the Depositary and the Securities Custodian, subject to
Section 2.12 of this Indenture. At any time prior to such
cancellation, if any interest in a Global Security is converted,
canceled or exchanged for Securities in certificated form, the
principal amount of such Global Security shall, in accordance with
the standing procedures and instructions existing between the
Depositary and the Securities Custodian, be appropriately reduced,
and an endorsement shall be made on such Global Security, by the
Trustee or the Securities Custodian, at the direction of the
Trustee, to reflect such reduction.
Section 2.14.
CUSIP Numbers .
The Company in
issuing the Securities may use one or more “CUSIP,”
“ISIN” or other similar numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP,”
“ISIN” or other similar numbers in a Fundamental Change
Purchase Notice 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 Fundamental Change Purchase Notice and that
reliance may be placed only on the other identification numbers
printed on the Securities, and any such purchase shall not be
affected by any defect in or omission of such numbers. The Company
will notify the Trustee in writing of any change in the
“CUSIP,” “ISIN” or other similar
numbers.
Section 2.15.
Calculations .
Except as
otherwise specifically stated herein or in the Securities, all
calculations to be made in respect of the Securities shall be the
obligation of the Company. All calculations made by the Company or
its agent as contemplated pursuant to the terms hereof and of the
Securities shall be made in good faith and be final and binding on
the Holders absent manifest error. The Company shall provide a
schedule of calculations to the Trustee upon the Trustee’s
request, and the Trustee shall be entitled to conclusively rely
upon the accuracy of the calculations by the Company without
independent verification. The Trustee shall forward calculations
made by the Company to any Holder of Securities upon
request.
Section 2.16.
Payment of Interest; Interest Rights Preserved .
Interest on any
Security which is payable, and is punctually paid or duly provided
for, on the Stated Maturity of such interest shall be paid to the
Person in whose name the Security is registered at the close of
business on the Regular Record Date for such interest
payment.
Any interest on
any Security which is payable, but is not punctually paid or duly
provided for, on the Stated Maturity of such interest, and interest
on such defaulted interest at the then applicable
interest
21
rate borne by
the Securities, to the extent lawful (such defaulted interest and
interest thereon herein collectively called “Defaulted
Interest”), shall forthwith cease to be payable to the Holder
on the Regular Record Date; and such Defaulted Interest may be paid
by the Company, at its election in each case, as provided in
subsection (a) or (b) below:
(a) The Company
may elect to make payment of any Defaulted Interest to the Persons
in whose names the Securities are registered at the close of
business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Security and the date (not
less than 20 days after such notice) of the proposed payment
(the “Special Payment Date”), and on the date of
payment the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect
of such Defaulted Interest or shall make arrangements satisfactory
to the Trustee for such deposit prior to the Special Payment Date,
such money when deposited to be held in trust for the benefit of
the Persons entitled to such Defaulted Interest as in this
subsection provided. There upon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall
be not more than 15 days and not less than 10 days prior
to the date of the Special Payment Date and not less than
10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company in
writing of such Special Record Date. Unless the Company issues a
press release to the same effect, in the name and at the expense of
the Company, the Trustee shall cause notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor to
be mailed, first-class postage prepaid, to each Holder at its
address as it appears in the Security Register, not less than
10 days prior to such Special Record Date or notify in such
other manner as the Trustee determines, including in accordance
with any Applicable Procedures. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date and Special
Payment Date therefor having been so mailed or otherwise conveyed,
such Defaulted Interest shall be paid to the Persons in whose names
the Securities are registered on such Special Record Date and shall
no longer be payable pursuant to the following paragraph
(b).
(b) The Company
may make payment of any Defaulted Interest in any other lawful
manner not inconsistent with the requirements of any national
securities exchange on which the Securities may be listed, and upon
such notice as may be required by this Indenture not inconsistent
with the requirements of such exchange, if, after written notice
given by the Company to the Trustee of the proposed payment
pursuant to this subsection, such payment shall be deemed
practicable by the Trustee.
Subject to the
foregoing provisions of this Section 2.16, each Security
delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the
rights to interest accrued and unpaid, and to accrue, which were
carried by such other Security.
Section 2.17.
Computation of Interest .
Interest on the
Securities shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.
Section 2.18.
Deemed Removal of Restricted Securities Legend; Unrestricted
CUSIP .
At any time on or
after the Resale Restriction Termination Date, the Company shall
have the option, exercisable in its sole discretion, to remove the
restricted securities legend on any Security provided
22
for by
Section 2.07(g) by delivering a certificate to the Trustee
substantially in the form of Exhibit D hereto. Upon receipt of
such certificate by the Trustee, the restricted securities legend
on any such Securities shall be deemed removed and an unrestricted
CUSIP number shall be deemed substituted for the restricted CUSIP
number thereon.
Section 3.01. Purchase of Securities by the Company for
Cash at Option of the Holder upon a Fundamental Change
.
(a) If a
Fundamental Change occurs prior to the Final Maturity Date, each
Holder of a Security shall have the right, at the option of the
Holder, to require the Company to purchase for cash in whole or in
part (in principal amounts of $1,000 and integral multiples
thereof) the Securities of such Holder at the Fundamental Change
Purchase Price on the date specified by the Company that is not
less than 30 days and not more than 45 days after the
date of the Issuer Fundamental Change Notice (the
“Fundamental Change Purchase Date”).
(b) Not later
than 10 Business Days after the Fundamental Change Effective Date,
the Company shall mail a written notice of the Fundamental Change
and of the resulting purchase right to the Trustee, Paying Agent
and to each Holder of record of Securities (an “Issuer
Fundamental Change Notice”). The Issuer Fundamental Change
Notice shall include the form of a Fundamental Change Purchase
Notice (defined below) to be completed by the Holder and shall
state:
(1) the events
causing such Fundamental Change;
(2) the date (or
expected date) of such Fundamental Change;
(3) the last date
by which the Fundamental Change Purchase Notice must be delivered
to elect the purchase option pursuant to this
Section 3.01;
(4) the
Fundamental Change Purchase Date;
(5) the
Fundamental Change Purchase Price;
(6) the
Holder’s right to require the Company to purchase the
Securities;
(7) the name and
address of the Paying Agent;
(8) the then
effective Conversion Reference Rate and any adjustments to the
Conversion Reference Rate resulting from such Fundamental
Change;
(9) the procedures
that the Holder must follow to exercise rights under Article 4
of this Indenture and that the Securities as to which a Fundamental
Change Purchase Notice has been given may be cash converted
pursuant to Article 4 of this Indenture only to the extent
that the Fundamental Change Purchase Notice has been withdrawn in
accordance with the terms of this Indenture;
23
(10) the
procedures that the Holder must follow to exercise rights under
this Section 3.01;
(11) the
procedures for withdrawing a Fundamental Change Purchase
Notice;
(12) that, unless
the Company fails to pay such Fundamental Change Purchase Price,
Securities covered by any Fundamental Change Purchase Notice will
cease to be outstanding and interest will cease to accrue on and
after the Fundamental Change Purchase Date; and
(13) the CUSIP,
ISIN or other similar number of the Securities.
At the
Company’s written request, the Trustee shall give such Issuer
Fundamental Change Notice in the Company’s name and at the
Company’s expense; provided that, in all cases, the
text of such Issuer Fundamental Change Notice shall be prepared by
the Company. In connection with the delivery of the Issuer
Fundamental Change Notice to the Holders, the Company shall publish
a notice containing substantially the same information that is
required in the Issuer Fundamental Change Notice in a newspaper of
general circulation in the City of New York or publish information
on a website of the Company or through such other public medium the
Company may use at that time. If any of the Securities is in the
form of a Global Security, then the Company shall modify such
notice to the extent necessary to accord with the Applicable
Procedures relating to the purchase of Global
Securities.
(c) A Holder
may exercise its rights specified in Section 3.01(a) upon
delivery of a written notice (which shall be in substantially the
form set forth in the form of Security attached as Exhibit A
under the heading “Fundamental Change Purchase Notice”
and which may be delivered by letter, overnight courier, hand
delivery, facsimile transmission or in any other written form and,
in the case of Global Securities, may be delivered electronically
or by other means in accordance with the Depositary’s
Applicable Procedures) of the exercise of such rights (a
“Fundamental Change Purchase Notice”) to the Paying
Agent at any time prior to the close of business on the Business
Day immediately preceding the Fundamental Change Purchase Date,
subject to extension to comply with applicable law.
(1) The
Fundamental Change Purchase Notice shall state: (A) if the
Securities are in certificated form, the certificate numbers of the
Securities which the Holder will deliver to be purchased (or, if
the Security is held in global form, any other items required to
comply with the Applicable Procedures), (B) the portion of the
principal amount of the Securities which the Holder will deliver to
be purchased, which portion must be a principal amount of $1,000 or
any integral multiple thereof and (C) that such Security shall
be purchased as of the Fundamental Change Purchase Date pursuant to
the terms and conditions specified in the Securities and in this
Indenture.
(2) The delivery
of a Security for which a Fundamental Change Purchase Notice has
been timely delivered to any Paying Agent and not validly withdrawn
prior to, on or after the Fundamental Change Purchase Date
(together with all necessary endorsements) at the office of such
Paying Agent shall be a condition to the receipt by the Holder of
the Fundamental Change Purchase Price therefor.
(3) The Company
shall only be obliged to purchase, pursuant to this
Section 3.01, a portion of a Security if the principal amount
of such portion is $1,000 or an integral multiple thereof.
Provisions of this Indenture that apply to the purchase of all of a
Security also apply to the purchase of such portion of such
Security.
24
(4)
Notwithstanding anything herein to the contrary, any Holder
delivering to a Paying Agent the Fundamental Change Purchase Notice
contemplated by this Section 3.01(c) shall have the right to
withdraw such Fundamental Change Purchase Notice in whole or in a
portion thereof that is a principal amount of $1,000 or in an
integral multiple thereof at any time prior to the close of
business on the Business Day prior to the Fundamental Change
Purchase Date by delivery of a written notice of withdrawal to the
Paying Agent in accordance with Section 3.02(b).
(5) A Paying Agent
shall promptly notify the Company of the receipt by it of any
Fundamental Change Purchase Notice or written withdrawal
thereof.
(6) Anything
herein to the contrary notwithstanding, in the case of Global
Securities, any Fundamental Change Purchase Notice shall be
delivered or withdrawn and such Securities shall be surrendered or
delivered for purchase in accordance with the Applicable Procedures
as in effect from time to time.
Section 3.02.
Effect of Fundamental Change Purchase Notice .
(a) Upon
receipt by any Paying Agent of a properly completed Fundamental
Change Purchase Notice from a Holder, the Holder of the Security in
respect of which such Fundamental Change Purchase Notice was given
shall (unless such Fundamental Change Purchase Notice is withdrawn
as specified in Section 3.02(b)) thereafter be entitled to
receive the Fundamental Change Purchase Price with respect to such
Security. Such Fundamental Change Purchase Price shall be paid to
such Holder promptly following the later of (1) the
Fundamental Change Purchase Date ( provided that the
conditions in Section 3.01 have been satisfied) and
(2) the time of delivery of such Security to a Paying Agent by
the Holder thereof in the manner required by Section 3.01(c).
Securities in respect of which a Fundamental Change Purchase Notice
has been given by the Holder thereof may not be cash converted in
accordance with the provisions of Article 4 on or after the
date of the delivery of such Fundamental Change Purchase Notice
unless such Fundamental Change Purchase Notice has first been
validly withdrawn in accordance with Section 3.02(b) with
respect to the Securities to be cash converted.
(b) A
Fundamental Change Purchase Notice may be withdrawn by means of a
written notice (which may be delivered by mail, overnight courier,
hand delivery, facsimile transmission or in any other written form
and, in the case of Global Securities, may be delivered
electronically or by other means in accordance with the Applicable
Procedures) of withdrawal delivered by the Holder to a Paying Agent
at any time prior to the close of business on the Business Day
immediately prior to the Fundamental Change Purchase Date,
specifying (1) the principal amount of the Security or portion
thereof (which must be a principal amount of $1,000 or an integral
multiple of $1,000 in excess thereof) with respect to which such
notice of withdrawal is being submitted, (2) if the Securities
are in certificated form, the certificate numbers of the Security
being withdrawn in whole or in part and (3) the portion of the
principal amount of the Security that will remain subject to the
Fundamental Change Purchase Notice, which portion must be a
principal amount of $1,000 or an integral multiple thereof.
Anything herein to the contrary notwithstanding, in the case of
Global Securities, any Fundamental Change Purchase Notice shall be
withdrawn in accordance with the Applicable Procedures as in effect
from time to time.
Section 3.03.
Deposit of Fundamental Change Purchase Price .
(a) On or
before 10:00 a.m. New York City time on the applicable
Fundamental Change Purchase Date, the Company shall deposit with
the Trustee or with a Paying Agent (or if the Company or an
Affiliate of the Company is acting as the Paying Agent, shall
segregate and hold in trust as provided in Section 2.04) an
amount of money (in immediately available funds if deposited on or
after such Funda-
25
mental Change
Purchase Date), sufficient to pay the aggregate Fundamental Change
Purchase Price of all the Securities or portions thereof that are
to be purchased as of the Fundamental Change Purchase
Date.
(b) If a
Paying Agent or the Trustee holds on the Fundamental Change
Purchase Date in accordance with the terms hereof an amount of
money sufficient to pay the Fundamental Change Purchase Price of
any Security (or portion thereof) for which a Fundamental Change
Purchase Notice has been tendered and not withdrawn in accordance
with this Indenture then, immediately following the applicable
Fundamental Change Purchase Date, whether or not the Security is
delivered to the Paying Agent for purchase, such Security shall
cease to be outstanding, interest, shall cease to accrue, and the
rights of the Holder in respect of the Security shall terminate
(other than the right to receive the Fundamental Change Purchase
Price upon delivery of the Security as aforesaid).
(c) The
Paying Agent will promptly return to the respective Holders thereof
any Securities with respect to which a Fundamental Change Purchase
Notice has been withdrawn in compliance with this
Indenture.
(d) If a
Fundamental Change Purchase Date falls after a Regular Record Date
and on or before the related Interest Payment Date, then interest
on the Securities payable on such Interest Payment Date, together
with the interest due on the Securities to, but excluding, such
Fundamental Change Purchase Date, will be payable to the Holders in
whose names the Securities are registered at the close of business
on such Regular Record Date.
Section 3.04.
Repayment to the Company .
To the extent that
the aggregate amount of cash deposited by the Company pursuant to
Section 3.03 exceeds the aggregate Fundamental Change Purchase
Price of the Securities or portions thereof that the Company is
obligated to purchase, then promptly after the Fundamental Change
Purchase Date the Trustee or a Paying Agent, as the case may be,
shall return any such excess cash to the Company, or if such money
is then held by the Company in trust, it shall be discharged from
the trust.
Section 3.05.
Securities Purchased in Part .
Any Security that
is to be purchased only in part shall be surrendered at the office
of a Paying Agent, and promptly after the Fundamental Change
Purchase Date, as the case may be, the Company shall execute and
the Trustee shall authenticate and deliver to the Holder of such
Security, without service charge, a new Security or Securities, of
such authorized denomination or denominations as may be requested
by such Holder (which must be equal to $1,000 principal amount or
any integral multiple thereof), in aggregate principal amount equal
to, and in exchange for, the portion of the principal amount of the
Security so surrendered that is not purchased.
Section 3.06.
Compliance with Securities Laws upon Purchase of Securities
.
In connection with
any offer to purchase Securities under Section 3.01, the
Company shall (a) comply with the provisions of the tender offer
rules under the Exchange Act which may then be applicable,
(b) file the related Schedule TO (or any successor or
similar schedule, form or report) if required under the Exchange
Act, and (c) otherwise comply with all federal and state
securities laws in connection with such offer to purchase or
purchase of Securities, all so as to permit the rights of the
Holders and obligations of the Company under Sections 3.01
through 3.04 to be exercised in the time and in the manner
specified therein. To the extent that compliance with any such
laws, rules and regulations would result in
26
a conflict with
any of the terms hereof, this Indenture is hereby modified to the
extent required for the Company to comply with such laws, rules and
regulations.
Section 3.07.
Purchase of Securities in Open Market .
The Company may
purchase Securities in the open market or by tender at any price or
pursuant to private agreements. The Company shall surrender any
Security purchased by the Company pursuant to this Article 3
to the Trustee for cancellation. Any Securities surrendered to the
Trustee for cancellation may not be reissued or resold by the
Company and will be canceled promptly in accordance with
Section 2.12.
Section 4.01.
Cash Conversion Privilege and Conversion Reference Rate
.
(a) Any
Security or portion thereof that is an integral multiple of $1,000
principal amount may be cash converted by the Holder thereof in
accordance with the provisions of this Article 4. Upon cash
conversion, Holders shall be entitled to receive the amount of cash
determined in the manner provided in Section 4.12. Securities
may be cash converted prior to the close of business on the third
Business Day immediately preceding the Final Maturity Date at the
Conversion Reference Rate in effect at the time of such conversion
only under the following circumstances:
(1) on any
Business Day in any calendar quarter commencing at any time after
December 31, 2008, and only during such calendar quarter, if, as of
the last day of the immediately preceding calendar quarter, the
Closing Price of the Common Stock for at least 20 Trading Days in
the period of 30 consecutive Trading Days ending on the last
Trading Day of such preceding calendar quarter was more than 130%
of the applicable Conversion Reference Price on the last day of
such preceding calendar quarter;
(2) on any
Business Day during the five Business Day period after any five
consecutive Trading Day period in which the Trading Price per
$1,000 principal amount of Securities, as determined by the Trustee
following a request by a Holder in accordance with the procedures
described in Section 4.01(b), for each Trading Day of that
period was less than 98% of the product of the Closing Price of the
Common Stock on such day and the then applicable Conversion
Reference Rate per $1,000 principal amount of
Securities.
(3) if the Company
distributes to all holders of Common Stock any rights entitling
them to purchase, for a period expiring within 45 days of such
distribution, Common Stock, or securities convertible into Common
Stock, at less than, or having a conversion price per share less
than, the Closing Price of the Common Stock on the Trading Day
immediately preceding the declaration date for such
distribution;
(4) if the Company
distributes to all holders of Common Stock assets, cash, debt
securities or rights to purchase the Company’s securities,
which distribution has a per share value as determined by the Board
of Directors exceeding 15% of the Closing Price per share of the
Common Stock on the Trading Day immediately preceding the
declaration date for such distribution;
27
(5) if the Company
is a party to any transaction or event (including any
consolidation, merger or binding share exchange, other than changes
resulting from a subdivision or combination) that is not otherwise
a Fundamental Change pursuant to which all or substantially all
shares of the Common Stock would be converted into cash, securities
or other property ( provided that the Securities shall not
become cash convertible by reason of a merger, consolidation or
other transaction effected by the Company with one of its direct or
indirect Subsidiaries for the purpose of changing the
Company’s state of incorporation or organization to any other
state within the United States or the District of
Columbia);
(6) if a
Fundamental Change occurs; or
(7) at any time
during the period beginning on June 15, 2015 and ending at the
close of business on the third Business Day immediately preceding
the Final Maturity Date.
(b) The
Trustee shall have no obligation to determine the Trading Price of
the Securities and whether the Securities are cash convertible
pursuant to clause (2) of Section 4.01(a) unless the
Company has requested such determination and the Company shall have
no obligation to make such request unless a Holder of the
Securities provides the Company with reasonable evidence that the
Trading Price per $1,000 principal amount of Securities would be
less than 98% of the product of the Closing Price of the Common
Stock and the then applicable Conversion Reference Rate per $1,000
principal amount of Securities. At such time, the Company shall
instruct the Trustee to determine the Trading Price of the
Securities beginning on the next Trading Day and on each successive
Trading Day until the Trading Price per $1,000 principal amount of
the Securities is greater than 98% of the product of the Closing
Price of the Common Stock and the then applicable Conversion
Reference Rate per $1,000 principal amount of the
Securities.
(c) In the
case of a distribution contemplated by clause (3) or
(4) of Section 4.01(a), the Company shall notify Holders
and the Trustee at least 35 days prior to the ex-dividend date
for such distribution (the “Distribution Notice”). Once
the Company has given the Distribution Notice, Holders may
surrender their Securities for cash conversion at any time until
the earlier of the close of business on the Business Day prior to
the ex-dividend date or the Company’s announcement that such
distribution will not take place. In the event of a distribution
contemplated by clause (3) or (4) of
Section 4.01(a), Holders may not cash convert the Securities
if the Holders will otherwise participate in such distribution on
an “as converted” basis ( i.e ., as though such
Holder had exchanged each $1,000 principal amount of its Securities
immediately prior to the record date for such distribution for a
number of shares of Common Stock equal to the then applicable
Conversion Reference Rate). “ex-dividend date” is the
first date upon which a sale of the Common Stock does not
automatically transfer the right to receive the relevant
distribution from the seller of the Common Stock to its buyer. The
Company will provide written notice to the Paying Agent as soon as
reasonably practicable of any anticipated or actual event or
transaction that will cause or causes the Securities to become cash
convertible pursuant to clauses (3) or (4) of Section
4.01(a).
(d) In the
case of a transaction contemplated by clause (5) of
Section 4.01(a), the Company will notify Holders and the
Trustee as promptly as practicable following the date the Company
publicly announces such transaction (but in no event less than
15 days prior to the anticipated effective date of such
transaction). Holders may surrender Securities for cash conversion
at any time from and after the date which is 15 days prior to
the anticipated effective date of such transaction until the
earlier of the date which is 15 days after the actual
effective date of such transaction or the date of the
Company’s announcement that such transaction will not take
place.
28
(e) In the
case of a Fundamental Change, the Company shall provide notice
thereof (a “Fundamental Change Conversion Notice”) to
the Holders of Securities and the Trustee not more than 10 Business
Days after the date that is the Fundamental Change Effective Date.
Holders may surrender Securities for cash conversion at any time
after receipt of such notice and until the close of business on the
Trading Day prior to the Fundamental Change Purchase
Date.
(f) The cash
conversion rights pursuant to this Article 4 shall commence on
the Issue Date and expire at the close of business on the third
Business Day immediately preceding the Final Maturity Date, but
shall be exercisable only during the time periods specified with
respect to each circumstance pursuant to which the Securities
become cash convertible, subject, in the case of cash conversion of
any Global Security, to any Applicable Procedures.
(g) Securities
in respect of which a Fundamental Change Purchase Notice has been
delivered may not be surrendered for cash conversion pursuant to
this Article 4 prior to a valid withdrawal of such Fundamental
Change Notice, in accordance with the provisions of
Article 3.
(h) Provisions
of this Indenture that apply to cash conversion of all of a
Security also apply to cash conversion of a portion of a
Security.
(i) The
Conversion Reference Rate shall be adjusted in certain instances as
provided in Section 4.01(j) and Section 4.06.
(j) If a
Fundamental Change occurs prior to the Final Maturity Date as a
result of a transaction described in clauses (1), (2) or
(4) of the definition of the term “Change of
Control” and a Holder elects to cash convert its Securities
in connection with such transaction, the Company shall pay a
“Make Whole Premium” if and as required by the below by
increasing the applicable Conversion Reference Rate for the
Securities surrendered for cash conversion by a number of
additional shares of Common Stock as provided in this
Section 4.01(j) (the “Additional Shares”). A cash
conversion of Securities shall be deemed for these purposes to be
“in connection with” such a transaction if the notice
of cash conversion is received by the Paying Agent from and
including the Fundamental Change Effective Date and prior to the
close of business on the Business Day prior to the Fundamental
Change Purchase Date.
The number of
Additional Shares per $1,000 principal amount of Securities
constituting the Make Whole Premium, if any, shall be determined by
reference to the table below and shall be based on the date on
which the Fundamental Change Effective Date occurs and the price
(the “Stock Price”) paid, or deemed to be paid, per
share of Common Stock in such transaction. If holders of Common
Stock receive only cash in the Fundamental Change transaction, the
Stock Price shall be the cash amount paid per share of Common
Stock. Otherwise, the Stock Price shall be the average of the
Closing Prices of the Common Stock for each of the ten consecutive
Trading Days prior to but excluding the Fundamental Change
Effective Date.
The following
table sets forth the Additional Share amounts, if any, by which the
applicable Conversion Reference Rate shall be increased for each
Stock Price and Fundamental Change Effective Date.
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Stock Price on
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Fundamental Change
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Make Whole Premium upon
Fundamental Change (increase in applicable Conversion Reference
Rate)
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Effective Date
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9/15/2008
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9/15/2009
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9/15/2010
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9/15/2011
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9/15/2012
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9/15/2013
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9/15/2014
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9/15/2015
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$11.10
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15.0149
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15.0149
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15.0149
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15.0149
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15.0149
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15.0149
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15.0149
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15.0149
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12.00
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13.8084
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12.6777
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11.4815
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10.2687
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9.0050
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8.2582
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8.2582
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8.2582
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13.00
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12.6610
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11.6098
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10.4096
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9.1519
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7.7488
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6.2347
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4.5187
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1.8480
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14.00
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11.7523
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10.7592
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9.5845
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8.3118
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6.8755
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5.2377
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3.2558
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0.0000
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17.00
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9.6791
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8.7937
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7.8303
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6.6725
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5.3641
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3.8281
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2.0472
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0.0000
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29
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Stock Price on
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Fundamental Change
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Make Whole Premium upon
Fundamental Change (increase in applicable Conversion Reference
Rate)
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Effective Date
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9/15/2008
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9/15/2009
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9/15/2010
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9/15/2011
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9/15/2012
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9/15/2013
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9/15/2014
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9/15/2015
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20.00
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8.2415
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7.4835
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6.6048
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5.6638
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4.5538
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3.2126
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1.7077
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0.0000
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25.00
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6.6390
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6.0014
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5.3023
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4.4907
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3.6179
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2.5656
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1.3662
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0.0000
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30.00
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5.4707
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5.0369
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4.4316
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3.7543
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3.0074
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2.1394
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1.1394
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0.0000
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40.00
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4.1332
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3.7335
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3.3029
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2.8381
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2.2573
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1.6066
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0.8556
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0.0000
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50.00
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3.3370
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3.0104
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2.6423
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2.2825
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1.8059
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1.2866
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0.6847
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0.0000
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70.00
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2.4274
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2.1863
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1.9118
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1.6342
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1.2888
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0.9195
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0.4871
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0.0000
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If the actual
Stock Price or Fundamental Change Effective Date is not set forth
in the table above, then:
(i) if the actual
Stock Price on the Fundamental Change Effective Date is between two
Stock Price amounts in the table or the actual Fundamental Change
Effective Date is between two Fundamental Change Effective Dates in
the table, the Additional Share amounts will be determined by a
straightline interpolation between the Additional Share amounts set
forth for the higher and lower Stock Prices and the two Fundamental
Change Effective Dates on the table based on a 365-day
year;
(ii) if the actual
Stock Price on the Fundamental Change Effective Date exceeds $70.00
per share of Common Stock, subject to adjustment as set forth
herein, no adjustment to the Conversion Reference Rate shall be
made; and
(iii) if the
actual Stock Price on the Fundamental Change Effective Date is less
than $11.10 per share of Common Stock, subject to adjustment as set
forth herein, no adjustment to the Conversion Reference Rate shall
be made.
The Stock Prices
set forth in the first column of the table above and in clauses
(ii) and (iii) above will be adjusted as of any date on
which the Conversion Reference Rate of the Securities is adjusted
pursuant to Section 4.06 hereof. The adjusted Stock Prices
will equal the Stock Prices applicable immediately prior to such
adjustment multiplied by a fraction, the numerator of which is the
Conversion Reference Rate immediately prior to the adjustment
giving rise to the Stock Price adjustment and the denominator of
which is the Conversion Reference Rate as so adjusted. The number
of Additional Share amounts set forth in the table above will be
adjusted in the same manner as the Conversion Reference Rate as set
forth in Section 4.06 hereof.
Notwithstanding
the foregoing, in no event shall the Conversion Reference Rate
exceed 90.0900 shares of Common Stock per $1,000 principal amount
of Securities, subject to adjustment in the same manner as the
Conversion Reference Rate as set forth in subsections
(a) through (e) of Section 4.06 hereof.
Section 4.02.
Conversion Procedure .
(a) To cash
convert a Security, a Holder must (1) complete and manually
sign the cash conversion notice on the back of the Security (which
shall be substantially in the form set forth in the form of
Security attached as Exhibit A under the heading “Cash
Conversion Notice”) and deliver such notice to the Paying
Agent, (2) surrender the Security to the Paying Agent, (3)
furnish appropriate endorsements and transfer documents if
require
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