U.S. BANK NATIONAL
ASSOCIATION
SIXTH SUPPLEMENTAL
INDENTURE
2.625% Convertible Senior Notes due
2038
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Page
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Article I
DEFINITIONS
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2
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Section 1.01
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Relation to Base Indenture
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2
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Section 1.02
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2
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Article II
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF
NOTES
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9
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Section 2.01
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9
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Section 2.02
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9
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Section 2.03
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Date and Denomination of Notes; Payments of
Interest
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9
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Section 2.04
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10
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Section 2.05
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Execution, Authentication and Delivery of
Notes
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10
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Section 2.06
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Exchange and Registration of Transfer of Notes;
Restrictions on Transfer; Depositary
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10
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Section 2.07
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Additional Notes; Repurchases
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11
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Section 2.08
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11
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Section 2.09
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12
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Article III REDEMPTION
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12
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Section 3.01
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12
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Section 3.02
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Selection of Notes to be Redeemed
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12
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Section 3.03
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12
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Article IV
PARTICULAR COVENANTS OF THE COMPANY
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13
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Section 4.01
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Payment of Principal and Interest
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13
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Section 4.02
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Maintenance of Office or Agency for Conversion
Agent
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14
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Section 4.03
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14
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i
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Page
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Section 4.04
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14
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Section 4.05
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Exclusion of Certain Provisions From Base
Indenture
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14
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Article V
DEFAULTS AND REMEDIES
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14
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Section 5.01
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14
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Section 5.02
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Article Five of Base Indenture
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15
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Article VI
SUPPLEMENTAL INDENTURES
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15
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Section 6.01
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Supplemental Indentures Without Consent of
Noteholders
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15
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Section 6.02
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Modification and Amendment with Consent of
Noteholders
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15
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Section 6.03
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Effect of Supplemental Indentures
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15
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Section 6.04
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Article Nine of Base Indenture
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16
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Article VII CONSOLIDATION, MERGER, SALE,
CONVEYANCE AND LEASE
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16
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Section 7.01
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Company May Consolidate, Etc. on Certain
Terms
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16
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Article VIII CONVERSION OF NOTES
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16
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Section 8.01
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16
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Section 8.02
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20
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Section 8.03
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24
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Section 8.04
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Adjustment of Conversion Rate
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25
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Section 8.05
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33
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Section 8.06
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Effect of Reclassification, Consolidation,
Merger or Sale
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33
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Section 8.07
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34
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Section 8.08
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Responsibility of Trustee
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34
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Section 8.09
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Notice to Holders Prior to Certain
Actions
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35
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Section 8.10
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36
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Section 8.11
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36
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ii
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Page
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Article IX
REPURCHASE OF NOTES AT OPTION OF HOLDERS
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36
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Section 9.01
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Repurchase of Securities at Option of the Holder
on Specified Dates
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36
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Section 9.02
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Repurchase at Option of Holders Upon a
Fundamental Change
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40
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Article X
MISCELLANEOUS PROVISIONS
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43
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Section 10.01
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Ratification of Base Indenture
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43
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Section 10.02
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Provisions Binding on Company’s
Successors
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43
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Section 10.03
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Official Acts by Successor
Corporation
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44
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Section 10.04
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Addresses for Notices, Etc.
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44
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Section 10.05
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44
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Section 10.06
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44
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Section 10.07
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44
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Section 10.08
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Table of Contents, Headings, Etc.
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45
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Section 10.09
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Execution in Counterparts
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45
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Section 10.10
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45
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Section 10.11
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Further Instruments and Acts
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45
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Section 10.12
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45
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Section 10.13
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45
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iii
SIXTH SUPPLEMENTAL
INDENTURE
2.625% Convertible Senior Notes due
2038
THIS SIXTH
SUPPLEMENTAL INDENTURE, dated as of May 7, 2008 (this “
Sixth Supplemental Indenture ”), by and between
PROLOGIS (formerly ProLogis Trust and prior thereto Security
Capital Industrial Trust), a real estate investment trust organized
under the laws of the State of Maryland having its principal office
at 4545 Airport Way, Denver, Colorado 80239 (the “
Company ”), and U.S. BANK NATIONAL ASSOCIATION (as
successor in interest to State Street Bank and Trust Company),
having a corporate trust office at Corporate Trust Services, 100
Wall Street, Suite 1600, New York, New York 10005, as
successor Trustee (in such capacity, the “ Trustee
”) under the Base Indenture (defined below).
The
Company and the Trustee have heretofore entered into an Indenture
dated as of March 1, 1995, as amended by a First Supplemental
Indenture dated as of February 9, 2005, a Second Supplemental
Indenture dated as of November 2, 2005, a Third Supplemental
Indenture, dated as of November 2, 2005, a Fourth Supplemental
Indenture dated as of March 26, 2007, and a Fifth Supplemental
Indenture dated as of November 8, 2007 (as so supplemented
hereinafter called the “ Base Indenture ”),
between the Company and the Trustee, providing for the issuance by
the Company from time to time of its senior debt securities
evidencing its unsubordinated indebtedness (the “
Securities ”).
Section 301
of the Base Indenture provides for various matters with respect to
any series of Securities issued under the Base Indenture to be
established in an indenture supplemental to the Base
Indenture.
Section 901(7)
of the Base Indenture provides for the Company and the Trustee to
enter into an indenture supplemental to the Base Indenture to
establish the form or terms of Securities of any series as provided
by Sections 201 and 301 of the Base Indenture without the
consent of the Holders of any Securities.
WHEREAS,
for its lawful corporate purposes, the Company has duly authorized
the issue of its 2.625% Convertible Senior Notes due 2038
(hereinafter referred to as the “ Notes ”),
initially in an aggregate principal amount not to exceed
$500,000,000 (or $550,000,000 if the Underwriters exercise their
option to purchase additional Notes in full as set forth in the
Underwriting Agreement), and in order to provide the terms and
conditions upon which the Notes are to be authenticated, issued and
delivered, the Board of Trustees of the Company has duly authorized
the execution and delivery of this Sixth Supplemental Indenture;
and
WHEREAS,
the Notes, the certificate of authentication to be borne by the
Notes, a form of assignment, a form of the Fundamental Change
Repurchase Notice, a form of option to elect repayment on a Put
Right Repurchase Date, a form of conversion notice and certificate
of transfer to be borne by the Notes are to be substantially in the
forms hereinafter provided for; and
All
things necessary to make the Base Indenture, as hereby modified, a
valid agreement of the Company, in accordance with its terms, have
been done.
NOW
THEREFORE, THIS SIXTH SUPPLEMENTAL INDENTURE WITNESSETH:
For
and in consideration of the premises and of the covenants contained
herein and in the Base Indenture, the Company and the Trustee
covenant and agree, for the equal and proportionate benefit of all
Holders of the Notes issued on or after the date of this Sixth
Supplemental Indenture, as follows:
Section 1.01
Relation to Base Indenture . This Sixth Supplemental
Indenture constitutes an integral part of the Base
Indenture.
Section 1.02
Definitions. For all purposes of this Sixth Supplemental
Indenture, except as otherwise expressly provided for or unless the
context otherwise requires:
(a) Capitalized
terms used but not defined herein shall have the respective
meanings assigned to them in the Base Indenture;
(b) Terms
defined both herein and in the Base Indenture shall have the
meanings assigned to them herein;
(c) All
references herein to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of this
Sixth Supplemental Indenture; and
(d) All
other terms used in this Sixth Supplemental Indenture, which are
defined in the Trust Indenture Act or which are by reference
therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires) shall
have the meanings assigned to such terms in said Trust Indenture
Act and in said Securities Act as in force at the date of the
execution of this Sixth Supplemental Indenture. The words
“herein,” “hereof,”
“hereunder,” and words of similar import refer to this
Sixth Supplemental Indenture as a whole and not to any particular
Article, Section or other subdivision. The terms defined in this
Article include the plural as well as the singular.
“
Additional Shares ” shall have the meaning specified
in Section 8.01(g).
“Business Day” means any day, other than a
Saturday or Sunday, or legal holidays on which banks in The City of
New York or The City of Boston are not required or authorized by
law or executive order to be closed.
“cash percentage” shall have the meaning
specified in Section 8.02(a)(4).
2
“cash percentage notice” shall have the meaning
specified in Section 8.02(a)(4).
“
close of business ” means 5:00 p.m. (New York City
time).
“
Change of Control ” shall be deemed to occur upon the
consummation of any transaction or event (whether by means of an
exchange offer, liquidation, tender offer, consolidation, merger,
combination, reclassification, recapitalization or otherwise) in
connection with which more than 50% of the Common Shares are
exchanged for, converted into, acquired for or constitutes solely
the right to receive, consideration which is not at least 90%
common stock (or American Depositary Shares representing shares of
common stock) that is: (a) listed on, or immediately after the
consummation of such transaction or event, will be listed on, a
United States national securities exchange or (b) approved, or
immediately after such transaction or event will be approved, for
listing or quotation on any United States system of automated
dissemination of quotations of securities prices.
“
Common Shares ” means, subject to Section 8.06,
common shares of beneficial interest of the Company, par value
$0.01 per share, at the date of this Sixth Supplemental Indenture
or shares of any class or classes resulting from any
reclassification or reclassifications thereof and that have no
preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or
winding up of the Company and that are not subject to redemption by
the Company; provided that if at any time there shall be
more than one such resulting class, the shares of each such class
then so issuable shall be substantially in the proportion which the
total number of shares of such class resulting from all such
reclassifications bears to the total number of shares of all such
classes resulting from all such reclassifications.
“
Company ” means ProLogis, a Maryland real estate
investment trust, and subject to the provisions of
Article VII, shall include its successors and
assigns.
“
Company Put Right Notice ” shall have the meaning
specified in Section 9.01(c).
“
Company Put Right Notice Date ” shall have the meaning
specified in Section 9.01(c).
“
Conversion Agent ” shall mean the Trustee or any
successor office or agency where the Notes may be surrendered for
exchange.
“
Conversion Date ” shall have the meaning specified in
Section 8.02(c).
“
Conversion Obligation ” shall have the meaning
specified in Section 8.01(a).
“
Conversion Price ” means as of any date $1,000 divided
by the Conversion Rate as of such date.
“
Conversion Rate ” shall have the meaning specified in
Section 8.01(a).
“
Conversion Trigger Price ” shall have the meaning
specified in Section 8.01(c).
3
“
Daily Conversion Value ” means, for each of the 20
consecutive Trading Days during the Observation Period,
one-twentieth (1/20) of the product of (a) the applicable
Conversion Rate and (b) the Daily VWAP of the Common Shares
(or the Reference Property, if applicable) on such day.
“
Daily Settlement Amount ,” for each of the 20 Trading
Days during the Observation Period, shall consist of:
(i) cash
equal to the lesser of $50 and the Daily Conversion Value relating
to such day; and
(ii) if
such Daily Conversion Value exceeds $50, a number of Common Shares
equal to (A) the difference between such Daily Conversion
Value and $50, divided by (B) the Daily VWAP of the Common
Shares for such day, subject to the Company’s right to
deliver cash in lieu of all or a portion of such Common Shares
pursuant to Section 8.02(a)(4) hereof.
“
Daily VWAP ” for the Common Shares means, for each of
the 20 consecutive Trading Days during the Observation Period, the
per share volume-weighted average price as displayed under the
heading “Bloomberg VWAP” on Bloomberg page PLD
<equity> AQR 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
volume-weighted average price is unavailable, the market value of
one Common Share on such Trading Day as the Board of Trustees
determines in good faith using a volume-weighted
method).
“
Debt Instrument ” means any bond, debenture, note,
mortgage, indenture (including the Indenture) or other
instrument.
“
Depositary ” means, with respect to the Notes issuable
or issued in whole or in part in global form, the person specified
in the Base Indenture as the Depositary with respect to such Notes,
until a successor shall have been appointed and become such
pursuant to the applicable provisions of this Sixth Supplemental
Indenture, and thereafter, “Depositary” shall
mean or include such successor.
“
Distributed Property ” shall have the meaning
specified in Section 8.04(c).
“
Dividend Threshold Amount ” shall have the meaning
specified in Section 8.04(d).
“
Effective Date ” shall have the meaning specified in
Section 8.01(g)(1).
“
Event of Default ” means, with respect to the Notes,
any event specified in Section 5.01, continued for the period
of time, if any, and after the giving of notice, if any, therein
designated.
“
Ex-Date ” means, with respect to any issuance or
distribution on the Common Shares or any other equity security, the
first date on which the shares of Common Shares or such
4
other equity
security trade on the applicable exchange or in the applicable
market, regular way, without the right to receive such issuance or
distribution.
“
Ex-Dividend Date ” means, with respect to
Section 8.01(e), the first date upon which a sale of the
Common Shares does not automatically transfer the right to receive
the relevant dividend from the seller of the Common Shares to its
buyer.
“
Exchange Act ” means the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated
thereunder.
“
Fundamental Change ” means a Change of Control or a
Termination of Trading.
“
Fundamental Change Company Notice ” shall have the
meaning specified in Section 9.02(b).
“
Fundamental Change Repurchase Date ” shall have the
meaning specified in Section 9.02(a).
“
Fundamental Change Repurchase Notice ” shall have the
meaning specified in Section 9.02(a)(i).
“
Fundamental Change Repurchase Price ” shall have the
meaning specified in Section 9.02(a).
“
Global Note ” shall have the meaning specified in
Section 2.06(e).
“
Independent Securities Dealer ” shall have the meaning
specified in Section 8.01(b).
“
interest ” means, when used with reference to the
Notes, any interest payable under the terms of the
Notes.
“
Interest Payment Date ” means May 15 and
November 15 of each year, beginning on November 15,
2008.
“
Last Reported Sale Price ” means, with respect to the
Common Shares or any other security for which a Last Reported Sale
Price must be determined, on any date, the closing sale price per
share of the Common Shares or unit of such other security (or, if
no closing sale price is reported, the average of the last bid and
last ask prices or, if more than one in either case, the average of
the average last bid and the average last ask prices) on such date
as reported in composite transactions for the principal U.S.
securities exchange on which the Common Shares or such other
security are traded. If the Common Shares or such other security
are not listed for trading on a United States national or regional
securities exchange on the relevant date, the Last Reported Sale
Price shall be the last quoted bid price per share of Common Shares
or such other security in the over-the-counter market on the
relevant date, as reported by the National Quotation Bureau or
similar organization. If the Common Shares or such other security
are not so quoted, the Last Reported Sale Price shall be the
average of the mid-point of the last bid and
5
ask prices for
the Common Shares or such other security on the relevant date from
each of at least three nationally recognized independent investment
banking firms selected from time to time by the Board of Trustees
of the Company for that purpose. The Last Reported Sale Price shall
be determined without reference to extended or after hours
trading.
“
Market Disruption Event ” means the occurrence or
existence for more than a one-half hour period in the aggregate on
any scheduled Trading Day for the Common Shares of any suspension
or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the stock exchange or otherwise) in
the Common Shares or in any options, contracts or future contracts
relating to the Common Shares, and such suspension or limitation
occurs or exists at any time before 1:00 p.m. (New York City time)
on such day.
“
Maturity Date ” means May 15, 2038.
“
Measurement Period ” shall have the meaning specified
in Section 8.01(b).
“
Merger Event ” shall have the meaning specified in
Section 8.06.
“
Noteholder ” or “ Holder ” or
“ holder ,” as applied to any Note, or other
similar terms (but excluding the term “beneficial
holder”), means any person in whose name at the time a
particular Note is registered on the Security Register.
“
Notice of Conversion ” shall have the meaning
specified in Section 8.02(c).
“
Observation Period ” means the 20 consecutive Trading
Day period beginning on and including the second Trading Day after
the related Conversion Date in respect of such Note.
“
Opening of Business ” means 9:00 a.m. (New York City
time).
“
Predecessor Note ” of any particular Note means every
previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under
Section 306 of the Base Indenture in lieu of a lost, destroyed
or stolen Note shall be deemed to evidence the same debt as the
lost, destroyed or stolen Note that it replaces.
“
Put Right Repurchase Date ” shall have the meaning
assigned to it in Section 9.01(b).
“
Put Right Repurchase Notice ” shall have the meaning
assigned to it in Section 9.01(b)(i).
“
Put Right Repurchase Price ” shall have the meaning
assigned to it in Section 9.01(b).
“
Record Date ,” with respect to the payment of interest
on any Interest Payment Date, shall have the meaning specified in
Section 2.03.
6
“
Reference Property ” shall have the meaning specified
in Section 8.06(b).
“
Securities Act ” means the Securities Act of 1933, as
amended, and the rules and regulations promulgated
thereunder.
“
Settlement Amount ” shall have the meaning specified
in Section 8.02(a)(1).
“
Spin-Off ” shall have the meaning specified in
Section 8.04(c).
“
Stock Price ” means the price paid per Common Share in
connection with a Fundamental Change pursuant to which Additional
Shares shall be added to the Conversion Rate as set forth in
Section 8.01(e)(ii) hereof, which shall be equal to (i) if
holders of Common Shares receive only cash in such Fundamental
Change, the cash amount paid per Common Share and (ii) in all
other cases, the average of the Last Reported Sale Prices of the
Common Shares over the five consecutive Trading Day period ending
on the Trading Day preceding the Effective Date of the Fundamental
Change.
“
Termination of Trading ” shall be deemed to occur if
Common Shares, or any Common Shares (or American Depositary
Receipts in respect of Common Shares) into which the Notes are
convertible pursuant to the terms of this Sixth Supplemental
Indenture, are not listed for trading on any of the New York Stock
Exchange, the NASDAQ Global Market or the NASDAQ Global Select
Market (or any of their respective successors).
“
Trading Day ” means a day during which
(i) trading in Common Shares generally occurs, (ii) there is
no Market Disruption Event and (iii) a Last Reported Sale
Price for Common Shares (other than a Last Reported Sale Price
referred to in the next to last sentence of such definition) is
available for such day; provided that if the Common Shares
are not admitted for trading or quotation on or by any exchange,
bureau or other organization referred to in the definition of Last
Reported Sale Price (excluding the next to last sentence of that
definition), Trading Date shall mean any Business Day.
“
Trading Price ” with respect to the Notes, on any date
of determination, means the average of the secondary market bid
quotations obtained by the Company and delivered to the Trustee for
$2.0 million principal amount of Notes at approximately 3:30 p.m.,
New York City time, on such determination date from three
independent nationally recognized securities dealers selected by
the Company; provided that if three such bids cannot
reasonably be obtained, 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, that one bid shall be used. If the Company
cannot reasonably obtain at least one bid for $2.0 million
principal amount of Notes from a nationally recognized securities
dealer, then the Trading Price per $1,000 principal amount of Notes
will be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Common Shares and the Conversion
Rate.
“
Trigger Event ” shall have the meaning specified in
Section 8.04(c).
“
Underwriters ” means Goldman, Sachs & Co., Bank of
America Securities LLC and Citigroup Global Markets Inc.
7
“
Underwriting Agreement ” means that certain
Underwriting Agreement relating to the Notes, dated May 1,
2008, between the Company and the Underwriters.
8
ISSUE, DESCRIPTION, EXECUTION,
REGISTRATION AND EXCHANGE OF NOTES
Section 2.01
Designation and Amount . The Notes shall be designated as
the “2.625% Convertible Senior Notes due 2038.” The
aggregate principal amount of Notes that may be authenticated and
delivered under this Sixth Supplemental Indenture is initially
limited to $500,000,000 (or $550,000,000 if the Underwriters
exercise their option to purchase additional Notes in full as set
forth in the Underwriting Agreement), subject to Section 2.07
and except for Notes authenticated and delivered upon registration
or transfer of, or in exchange for, or in lieu of other Notes
pursuant to Section 2.06, Section 8.02 and
Section 9.02 hereof and Section 306 and Section 906
of to the Base Indenture.
Section 2.02
Form of Notes . The Notes and the Trustee’s
certificate of authentication to be borne by such Notes shall be
substantially in the form set forth in Exhibit A.
Any
of the Notes may have such letters, numbers or other marks of
identification and such notations, legends or endorsements as the
officers executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not inconsistent
with the provisions of this Sixth Supplemental Indenture, or as may
be required by the Depositary, as may be required to comply with
any law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any securities exchange or automated
quotation system on which the Notes may be listed or designated for
issuance, or to conform to usage or to indicate any special
limitations or restrictions to which any particular Notes are
subject.
A
Global Note shall represent such principal amount of the
Outstanding Notes as shall be specified therein and shall provide
that it shall represent the aggregate principal amount of
Outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of Outstanding Notes represented thereby
may from time to time be increased or reduced to reflect
repurchases, conversions, transfers or exchanges permitted hereby.
Any endorsement of a Global Note to reflect the amount of any
increase or decrease in the amount of Outstanding Notes represented
thereby shall be made by the Trustee or the Custodian, at the
direction of the Trustee, in such manner and upon instructions
given by the Holder of such Notes in accordance with this Sixth
Supplemental Indenture. Payment of principal and accrued and unpaid
interest on a Global Note shall be made to the Holder of such Note
on the date of payment, unless a Record Date or other means of
determining Holders eligible to receive payment is provided for
herein.
The
terms and provisions contained in the form of Note attached as
Exhibit A hereto are incorporated herein and shall constitute,
and are hereby expressly made, a part of this Sixth Supplemental
Indenture and to the extent applicable, the Company and the
Trustee, by their execution and delivery of this Sixth Supplemental
Indenture, expressly agree to such terms and provisions and to be
bound thereby.
Section 2.03
Date and Denomination of Notes; Payments of Interest . The
Notes shall be issuable in registered form without coupons in
denominations of $1,000 principal amount and integral multiples
thereof. Each Note shall be dated the date of its
authentication
9
and shall bear
interest from the date specified on the face of the form of Note
attached as Exhibit A hereto. Interest on the Notes shall be
computed on the basis of a 360-day year comprised of twelve 30-day
months .
The
Person in whose name any Note (or its Predecessor Note) is
registered on the Security Register at the close of business on any
Record Date with respect to any Interest Payment Date shall be
entitled to receive the interest payable on such Interest Payment
Date. Interest shall be payable at the office of the Company
maintained by the Company for such purposes in the Borough of
Manhattan, City of New York or the City of Boston, which shall
initially be an office or agency of the Trustee. The Company shall
pay interest (i) on any Notes in certificated form by check
mailed to the address of the Person entitled thereto as it appears
in the Security Register (or upon written application by such
Person to the Security Registrar not later than the relevant record
date, by wire transfer in immediately available funds to such
Person’s account within the United States, if such Person is
entitled to interest on an aggregate principal in excess of
$1,000,000) or (ii) on any Global Note by wire transfer of
immediately available funds to the account of the Depositary or its
nominee. The term “Record Date” with respect to
any Interest Payment Date shall mean the May 1 or November 1
preceding the applicable May 15 or November 15 Interest
Payment Date, respectively.
Section 2.04
Intentionally Omitted .
Section 2.05
Execution, Authentication and Delivery of Notes .
Section 303 of the Base Indenture shall be applicable to the
Notes.
Section 2.06
Exchange and Registration of Transfer of Notes; Restrictions on
Transfer; Depositary .
(a) The
Company shall provide for the registration of the Notes and of
transfers of the Notes in the Security Register. Upon surrender for
registration of transfer of any Note to the Security Registrar or
any co-registrar, and satisfaction of the requirements for such
transfer set forth in this Section 2.06, the Company shall
execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new
Notes of any authorized denominations and of a like aggregate
principal amount.
Notes
may be exchanged for other Notes of any authorized denominations
and of a like aggregate principal amount, upon surrender of the
Notes to be exchanged at any such office or agency maintained by
the Company pursuant to Section 4.02. Whenever any Notes are
so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Notes which the
Noteholder making the exchange is entitled to receive, bearing
registration numbers not contemporaneously outstanding.
All
Notes presented or surrendered for registration of transfer or for
exchange, repurchase or conversion shall (if so required by the
Company, the Trustee, the Security Registrar or any co-registrar)
be duly endorsed, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company and
duly executed, by the Noteholder thereof or his attorney-in-fact
duly authorized in writing.
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No
service charge shall be charged to the Noteholder for any exchange
or registration of transfer of Notes, but the Company or the
Trustee may require payment of a sum sufficient to cover any tax,
assessments or other governmental charges that may be imposed in
connection therewith.
None
of the Company, the Trustee, the Security Registrar or any
co-registrar shall be required to exchange or register a transfer
of (a) any Notes surrendered for conversion or, if a portion
of any Note is surrendered for conversion, such portion thereof
surrendered for conversion or (b) any Notes, or a portion of
any Note, surrendered for repurchase (and not withdrawn) in
accordance with Article IX hereof.
All
Notes issued upon any registration of transfer or exchange of Notes
in accordance with this Sixth Supplemental Indenture shall be the
valid, binding and legal obligations of the Company, evidencing the
same debt, and entitled to the same benefits under this Sixth
Supplemental Indenture as the Notes surrendered upon such
registration of transfer or exchange.
(b)
Intentionally Omitted .
(c)
Intentionally Omitted .
(d) The
Trustee shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed
under this instrument or under applicable law with respect to any
transfer of any interest in any Note 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 instrument, and to examine the same to
determine substantial compliance as to form with the express
requirements hereof.
(e) So
long as the Notes are eligible for book-entry settlement with the
Depositary, unless otherwise required by law, all Notes shall be
represented by one or more Notes in global form (each, a “
Global Note ”) registered in the name of the
Depositary or the nominee of the Depositary. The transfer and
exchange of beneficial interests in a Global Note, which does not
involve the issuance of a definitive Note, shall be effected
through the Depositary (but not the Trustee or the Custodian) in
accordance with this Sixth Supplemental Indenture (including the
restrictions on transfer set forth herein) and the procedures of
the Depositary therefor.
Section 2.07
Additional Notes; Repurchases . The Company may, without the
consent of the Noteholders and notwithstanding Section 2.01,
issue additional Notes hereunder with the same terms and with the
same CUSIP number as the Notes initially issued hereunder in an
unlimited aggregate principal amount, which will form the same
series with the Notes initially issued hereunder, provided
that no such additional Notes may be issued unless fungible with
the Notes initially issued hereunder for U.S. federal income tax
purposes. The Company may also from time to time repurchase the
Notes in open market purchases by tender at any price or by private
agreement without prior notice to Noteholders.
Section 2.08
No Sinking Fund . The provisions of Article Twelve of
the Base Indenture shall not be applicable to the Notes. No sinking
fund is provided for the Notes.
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Section 2.09
Ranking . The Notes constitute a senior general obligation
of the Company, ranking equally with other existing and future
senior and unsubordinated indebtedness of the Company and ranking
senior in right of payment to any future indebtedness of the
Company that is expressly made subordinate to the Notes by the
terms of such indebtedness.
Section 3.01
Right to Redeem .
(a) Notwithstanding
any provision of the Base Indenture, as modified by this Sixth
Supplemental Indenture, to the contrary, the Company may redeem the
Notes prior to May 15, 2038, in whole, in order to preserve
the Company’s status as a real estate investment trust under
the Code.
(b) Except
as provided in Section 3.01(a), the Company may not redeem the
Notes prior to May 20, 2013. On or after May 20, 2013, the
Company, at its option, may redeem the Notes from time to time in
whole or in part.
(c) Any
redemption of Notes shall be at a Redemption Price equal to 100% of
the principal amount of the Notes being redeemed, plus accrued and
unpaid interest; provided, however , that the Company may
deduct and withhold from such Redemption Price any amount required
to be deducted and withheld under applicable law.
Section 3.02
Selection of Notes to be Redeemed .
(a) The
provisions of Section 1103 of the Base Indenture shall govern
the selection of Notes to be redeemed by the Trustee provided,
however , that if less than all of the Notes are to be
redeemed, the Trustee shall make the selection from the Notes of
that series Outstanding and not previously called for redemption,
by lot, or in its discretion, on a pro rata basis..
(b) If
any Note selected for partial redemption is converted in part
before termination of the conversion right with respect to the
portion of the Note so selected, the converted portion of such Note
shall be deemed to be part of the portion selected for redemption.
Notes which have been converted subsequent to the Trustee
commencing selection of Notes to be redeemed but prior to
redemption of such Notes shall be treated by the Trustee as
Outstanding for the purpose of such selection.
Section 3.03
Notice of Redemption . The provisions of Section 1104
of the Base Indenture shall govern notices of redemption of the
Notes; provided, however, that in addition to the
information specified in Section 1104 of the Base Indenture,
notices of redemption of the Notes shall also state:
(a) the
then-current Conversion Price;
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(b) the
name and address of the Conversion Agent;
(c) that
Holders who wish to convert Notes must surrender such Notes for
conversion no later than the close of business on the second
Business Day immediately preceding the Redemption Date and must
satisfy the other requirements set forth herein; and
(d) whether
the Company will satisfy its Conversion Obligation with respect to
any Notes called for redemption that are surrendered for conversion
in cash, Common Shares or both as provided herein; provided
that the Company may not provide notice of a redemption of Notes at
the Company’s option that specifies that the Company will
settle conversions of Notes prior to such redemption in cash and
Common Shares unless, at the time of such notice, the Company has
available to it a sufficient number of authorized Common Shares to
satisfy its Conversion Obligation in respect of the Notes to be
redeemed.
PARTICULAR COVENANTS OF THE
COMPANY
Section 4.01
Payment of Principal and Interest .
(a) Sections 307
and 1001 of the Base Indenture shall apply to the Notes;
provided, however, that, with respect to any Noteholder with
an aggregate principal amount in excess of $1,000,000, at the
application of such Holder in writing to the Security Registrar not
later than the relevant record date, accrued and unpaid interest on
such Holder’s Notes shall be paid by wire transfer in
immediately available funds to such Holder’s account in the
United States supplied by such Holder from time to time to the
Trustee and Paying Agent (if different from Trustee); provided
further that payment of accrued and unpaid interest made to the
Depositary shall be paid by wire transfer in immediately available
funds in accordance with such wire transfer instructions and other
procedures provided by the Depositary from time to time.
(b) Except
as otherwise provided in this Section 4.01(b), a Holder of any
Notes at the close of business on a Record Date shall be entitled
to receive interest on such Notes on the corresponding Interest
Payment Date. A Holder of any Notes as of a Record Date that are
converted after the close of business on such Record Date and prior
to the opening of business on the corresponding Interest Payment
Date shall be entitled to receive interest on the principal amount
of such Notes, notwithstanding the conversion of such Notes prior
to such Interest Payment Date. However, a Holder that surrenders
any Notes for conversion between the close of business on a Record
Date and the opening of business on the corresponding Interest
Payment Date shall be required to pay the Company an amount equal
to the interest payable by the Company with respect to such Notes
on such Interest Payment Date at the time such Holder surrenders
such Notes for conversion, provided, however, that this
sentence shall not apply to a Holder that converts
Notes:
(i)
in respect of which the Company has given notice of redemption
pursuant to Section 3.03 on a Redemption Date that is after the
relevant Record Date and on or prior to the relevant Interest
Payment Date; or
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(ii)
to the extent of any overdue interest, if any overdue interest
exists at the time of conversion with respect to such
Notes;
(iii)
in connection with a Fundamental Change in which the Company has
specified a Fundamental Change Repurchase Date that is after a
Record Date and on or prior to the next Interest Payment Date;
or
(iv)
after 5:00 p.m., New York City time on the Record Date immediately
preceding the Maturity Date.
Accordingly, a
Holder that converts Notes under any of the circumstances described
in clauses (i), (ii), (iii) or (iv) above will not be
required to pay to the Company an amount equal to the interest
payable by the Company with respect to such Notes on the relevant
Interest Payment Date.
Section 4.02
Maintenance of Office or Agency for Conversion Agent. If at
any time the Conversion Agent is not the Trustee or an office or
agency designated or appointed by the Trustee, the Company will
give prompt written notice to the Trustee of the location of such
Conversion Agent. If at any time the Company shall fail to maintain
an office or agency for the Conversion Agent, presentations,
surrenders, notices and demands related to conversions of Notes may
be made or served at the Corporate Trust Office or the office or
agency of the Trustee in the Borough of Manhattan, the City of New
York or in the City of Boston.
Section 4.03
Intentionally Omitted.
Section 4.04
Intentionally Omitted.
Section 4.05
Exclusion of Certain Provisions From Base Indenture .
Section 1004, Section 1006, Section 1007 and
Section 1011 of the Base Indenture shall not apply to the
Notes. Section 1002, Section 1003, Section 1005,
Section 1008, Section 1009 (as amended by
Section 2.2 of the Second Supplemental Indenture to the Base
Indenture), Section 1010 and Section 1012 of the Base
Indenture shall be applicable to the Notes.
Section 5.01
Events of Default. The provisions of Section 501(2) and
Section 501(3) of the Base Indenture shall not be applicable
to the Notes. As contemplated under Section 301 and Section
501(9) of the Base Indenture, the following events, in addition to
the events described in clauses (1), (4), (5) (as amended by the
Second Supplemental Indenture to the Base Indenture), (6) (as
amended by the Second Supplemental Indenture to the Base
Indenture), (7) and (8) of the Base Indenture, shall be
Events of Default with respect to the Notes:
14
(a) default
in the payment of principal or premium, if any, of any Note when
due and payable on the Maturity Date, upon redemption, repurchase,
declaration or otherwise;
(b) failure
by the Company to comply with its obligation to convert the Notes
into cash, Common Shares or a combination of cash and Common
Shares, as applicable, upon exercise of a Holder’s conversion
right, and such failure continues for a period of 10 days;
or
(c) failure
by the Company to issue a Fundamental Change Company Notice in
accordance with Section 9.02 when due, and such failure
continues for a period of two days.
Section 5.02
Article Five of Base Indenture . Except as amended by
Section 5.01 hereof, all of the provisions of
Article Five of the Base Indenture shall be applicable to the
Notes.
Section 6.01
Supplemental Indentures Without Consent of Noteholders. The
provisions of Section 901 of the Base Indenture shall be
applicable to the Notes.
Section 6.02
Modification and Amendment with Consent of Noteholders.
Section 902 of the Base Indenture shall be applicable to the
Notes. As contemplated by Sections 301 and 902 of the Base
Indenture, no supplemental indenture shall, without the consent of
the Holder of each Outstanding Note affected thereby:
(a) make
any change that adversely affects the conversion rights of any
Notes;
(b) reduce
the Fundamental Change Repurchase Price, Redemption Price or Put
Right Repurchase Price of any Note, or amend or modify in any
manner adverse to Noteholders the Company’s obligation to
make such payments or Article III or Article IX of this
Sixth Supplemental Indenture, whether through an amendment or
waiver of provisions in the covenants, definitions or
otherwise.
Section 6.03
Effect of Supplemental Indentures . Upon the execution of
any supplemental indenture under this Article, the Base Indenture
and this Sixth Supplemental Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a
part of this Sixth Supplemental Indenture for all purposes; and
every Holder of Notes theretofore or thereafter authenticated and
delivered hereunder and of any coupon appertaining thereto shall be
bound thereby.
15
Section 6.04
Article Nine of Base Indenture . Except as amended by
this Article VI, all of the provisions of Article Nine of
the Base Indenture shall be applicable to the Notes.
CONSOLIDATION, MERGER, SALE,
CONVEYANCE AND LEASE
Section 7.01
Company May Consolidate, Etc. on Certain Terms .
Article Eight of the Base Indenture shall be applicable to the
Notes.
Section 8.01
Conversion Privilege .
(a) Subject
to the conditions described in clauses (b) through
(f) below and to Section 8.11 hereof, and upon compliance
with the provisions of this Article VIII, a Holder of Notes
shall have the right, at such Holder’s option, to convert all
or any portion (if the portion to be converted is $1,000 principal
amount or an integral multiple thereof) of such Note at any time
prior to the close of business on the scheduled Trading Day
immediately preceding February 15, 2013 at a rate (the “
Conversion Rate ”) of 13.1203 Common Shares (subject
to adjustment by the Company as provided in Section 8.04) per
$1,000 principal amount of Notes (the “ Conversion
Obligation ”) under the circumstances and during the
periods set forth below. On and after February 15, 2013,
regardless of the conditions described in clause (b) through
(f) below, upon compliance with the provisions of this
Article VIII and subject to Section 8.11 hereof, a
Noteholder shall have the right, at such holder’s option, to
convert all or any portion (if the portion to be converted is
$1,000 principal amount or an integral multiple thereof) of such
Note at any time prior to the close of business on the scheduled
Trading Day immediately preceding the Maturity Date at a Conversion
Rate of 13.1203 Common Shares (subject to adjustment by the Company
as provided in Section 8.04) per $1,000 principal amount of
Notes.
(b) (1) A
Holder of Notes shall have the right, at such Holder’s
option, to convert its Notes prior to February 15, 2013,
during the five Business Day period immediately after any ten
consecutive Trading Day period (the “ Measurement
Period ”) in which the Trading Price per $1,000 principal
amount of Notes for each day of such Measurement Period was less
than 98% of the product of the Last Reported Sale Price of the
Common Shares on such date and the Conversion Rate on such date,
all as determined by the Trustee in the manner described in the
immediately succeeding paragraph. The Trustee shall have no
obligation to determine the Trading Price of the Notes unless
requested by the Company to do so in writing, and the Company shall
have no obligation to make such request unless a Noteholder or
Noteholders of at least $1,000,000 aggregate principal amount of
Notes provides the Company with reasonable evidence that the
Trading Price per $1,000 principal amount of the Notes would be
less than 98% of the product of the Last Reported Sale Price at
such time and the then-
16
applicable
Conversion Rate, at which time the Company shall select three
independent nationally recognized securities dealers (each, an
“ Independent Securities Dealer ”), request that
the Independent Securities Dealers provide a secondary market
quotation for the Notes and provide such determination to the
Company and the Trustee in writing, and the Company shall instruct
the Independent Securities Dealers to provide a secondary market
quotation for the Notes beginning on the next Trading Day and on
each successive Trading Day until the Trading Price per $1,000
principal amount of the Notes is greater than or equal to 98% of
the product of the Last Reported Sale Price on such date and the
then-applicable Conversion Rate. If the Trading Price condition set
forth above has been met, the Company shall so notify the
Noteholders. If at any time after the Trading Price condition set
forth above has been met, the Trading Price per $1,000 principal
amount of Notes is greater than 98% of the product of the Last
Reported Sale Price on such date and the then-applicable Conversion
Rate, the Company shall so notify the Noteholders.
(2) Any
request by the Company to the Trustee for a determination of the
Trading Price and whether the Trading Price condition set forth in
the first sentence of the immediately preceding paragraph has been
met shall be accompanied by an Officers’ Certificate setting
forth, for each day of determination (as identified in such
Certificate), the name of the Independent Securities Dealers
providing the secondary market bid quotations, a statement
certifying that that such dealers are “Independent Securities
Dealers” as required in this Section 8.01, the secondary
market bid quotations obtained from such Independent Securities
Dealers (a copy of which will be attached to such Officers’
Certificate), the Company’s calculation of the Trading Price
for such date. The Trustee shall be entitled to conclusively rely,
without independent verification, on the quotations provided by the
Company in making its determinations hereunder. On the basis of
such quotations, the Trustee shall determine the Trading Price of
the Notes, and provide such determination to the Company. Absent
manifest error, the Trustee’s determination of the Trading
Price will be binding on the Company. Unless and until a
Responsible Officer of the Trustee shall have received a request
from the Company for determination of the Trading Price for the
Notes and the Officers’ Certificate contemplated herein, the
Trustee shall have no obligation to make any determination of the
Trading Price of the Notes or whether the Trading Price condition
has been met.
(c) A
Holder of Notes shall have the right, at such Holder’s
option, to convert Notes during any calendar quarter after the
quarter ended June 30, 2008, and only during such calendar
quarter, if the Last Reported Sale Price for the Common Shares for
at least 20 Trading Days during the period of 30 consecutive
Trading Days ending on the last Trading Day of the previous
calendar quarter exceeds 130% of the Conversion Price (the
“Conversion Trigger Price”) on such last Trading
Day, which Conversion Price shall be subject to adjustment in
accordance with this Article VIII. The Conversion Agent shall,
on the Company’s behalf, determine at the beginning of each
calendar quarter whether the Notes are convertible as a result of
the price of Common Shares as contemplated in the previous sentence
and notify the Company and the Trustee.
(d) In
the event that the Company has delivered a notice of redemption in
accordance with Section 1104 of the Base Indenture and
Section 3.03 of this Sixth Supplemental Indenture to the
Holders of Notes, a Holder of Notes may convert Notes at any time
prior to the close of business on the second Business Day
immediately preceding the
17
corresponding
Redemption Date; provided, however, that a Holder who has
already delivered a Fundamental Change Repurchase Notice with
respect to a Note may not convert such Note until the Holder has
withdrawn the Fundamental Change Repurchase Notice in accordance
with the terms of the Note and this Sixth Supplemental
Indenture.
(e) (i) In
the event that the Company elects to:
(A)
distribute to all or substantially all holders of Common Shares
rights entitling them to purchase, for a period expiring within
60 days, Common Shares at a price less than the Last Reported
Sale Price of the Common Shares for the Trading Day immediately
preceding the declaration date of such distribution; or
(B)
distribute to all or substantially all holders of Common Shares,
assets or debt securities of the Company or rights to purchase the
Company’s securities, which distribution has a per share
value (as determined by the Board of Trustees) exceeding 15% of the
Last Reported Sale Price of the Common Shares on the day
immediately preceding the date of declaration of such
distribution,
then, in either
case, Holders may surrender the Notes for conversion at any time on
and after the date that the Company provides notice to Holders
referred to in the next sentence until the earlier of the close of
business on the Business Day immediately preceding the Ex-Dividend
Date for such distribution or the date the Company announces that
such distribution will not take place. The Company shall notify
Holders of any distribution referred to in either clause
(A) or clause (B) above and of the resulting conversion right
no later than the 35th Business Day prior to the Ex-Dividend Date
for such distribution.
(ii) If
the Company is a party to any transaction or event that constitutes
a Fundamental Change, a Holder may surrender Notes for conversion
at any time from and after the 30th scheduled Trading Day prior to
the anticipated Effective Date of such transaction or event until
the related Fundamental Change Repurchase Date and, upon such
surrender, the Holder shall be entitled to the increase in the
Conversion Rate, if any, specified in Section 8.01(g). The
Company shall give notice to all record Noteholders and the Trustee
and issue a press release of the Fundamental Change no later than
30 scheduled Trading Days prior to the anticipated effective date
of the Fundamental Change.
(iii) If
the Company is a party to a consolidation, merger, binding share
exchange or sale or conveyance of all or substantially all of its
properties and assets, in each case pursuant to which the Common
Shares would be converted into cash, securities and/or other
property, then the Holders shall have the right to convert Notes at
any time beginning fifteen calendar days prior to the date
announced by the Company as the anticipated effective date of the
transaction and until and including the date that is fifteen
calendar days after the date that is the effective date of such
transaction; provided such transaction does not otherwise
constitute a Fundamental Change to which the provisions of
Section 8.01(e)(ii) shall apply. The Company shall give notice
to all record Noteholders and the Trustee and issue a press release
at least 20
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calendar days
prior to the anticipated effective date of such transaction. If the
Board of Trustees determines the anticipated effective date of the
transaction, such determination shall be conclusive and binding on
the Holders.
(f) The
Notes shall be convertible at any time beginning on the first
Business Day after any 30 consecutive Trading Day period during
which Common Shares are not listed on either a U.S. national
securities exchange.
(g) (1) If
a Noteholder elects to convert Notes in connection with a
Fundamental Change that occurs prior to May 20, 2013, the
Conversion Rate applicable to each $1,000 principal amount of Notes
so converted shall be increased by an additional number of Common
Shares (the “ Additional Shares ”) as described
below. Settlement of Notes tendered for conversion to which
Additional Shares shall be added to the Conversion Rate as provided
in this subsection shall be settled pursuant to Section 8.02
below, as applicable. For purposes of this Section 8.01(g), a
conversion shall be deemed to be “in connection with” a
Fundamental Change to the extent that the related conversion notice
is delivered during the time period beginning on the 30th Trading
Day prior to the anticipated Effective Date of such Fundamental
Change and ending on the related Fundamental Change Repurchase
Date, inclusive (regardless of whether the provisions of clauses
(b), (c), (d), (e) or (f) of this Section 8.01 shall
apply to such conversion). Such conversion notice shall indicate
that the Holder of Notes has elected to convert Notes in connection
with a Fundamental Change; provided, however , that the
failure to so indicate shall not in any way affect the Conversion
Obligation or the right of such Holder to receive Additional Shares
in connection with such conversion.
(i)
The number of Additional Shares by which the Conversion Rate will
be increased shall be determined by reference to the table attached
as Schedule A hereto, based on the date on which the
Fundamental Change occurs or becomes effective (the “
Effective Date ”), and the Stock Price;
provided , that if the Stock Price is between two Stock
Price amounts in the table or the Effective Date is between two
Effective Dates in the table, the number of Additional Shares shall
be determined by a straight-line interpolation between the number
of Additional Shares set forth for the next higher and next lower
Stock Price amounts and the two nearest Effective Dates, as
applicable, based on a 365-day year; provided further that
if (1) the Stock Price is greater than $120.00 per Common
Share (subject to adjustment in the same manner as set forth in
Section 8.04), no Additional Shares will be added to the
Conversion Rate, and (2) the Stock Price is less than $62.86
per Common Share (subject to adjustment in the same manner as set
forth in Section 8.04), no Additional Shares will be added to
the Conversion Rate. Notwithstanding the foregoing, in no event
will the total number of Common Shares issuable upon conversion
exceed 15.9083 per $1,000 principal amount of Notes (subject to
adjustment in the same manner as set forth in clauses (a),
(b) and (c) of Section 8.04).
(ii)
The Stock Prices set forth in the first row of the table in
Schedule A hereto shall be adjusted as of any date on which
the Conversion Rate of the Notes is adjusted. The adjusted Stock
Prices shall equal the Stock Prices applicable immediately prior to
such adjustment, multiplied by a fraction, the numerator of which
is the Conversion Rate in effect immediately prior to the
adjustment giving rise to the Stock
19
Price
adjustment and the denominator of which is the Conversion Rate as
so adjusted. The number of Additional Shares within the table shall
be adjusted in the same manner as the Conversion Rate as set forth
in Section 8.04 (other than by operation of an adjustment to
the Conversion Rate by adding Additional Shares).
Section 8.02
Conversion Procedures.
(a) (1) The
Company shall settle its Conversion Obligations as described in
Section 8.02(a)(3), unless, within the applicable time period
specified in this Section 8.02(a)(1), the Company elects to
settle its conversion Obligations as described in
Section 8.02(a)(2) or Section 8.02(a)(4). The cash and/or
Common Shares which the Company is required to deliver in
accordance with this Section 8.02 in settlement of its
Conversion Obligations is referred to herein as the “
Settlement Amount .” If the Company desires to settle
its Conversion Obligations as described in Section 8.02(a)(2)
or Section 8.02(a)(4), the Company shall notify each
converting Noteholder by notice to the Trustee (for further
distribution to Noteholders) of the method the Company will choose
to satisfy its Conversion Obligations no later than the second
Trading Day immediately following the Company’s receipt of a
Notice of Conversion from such Holder, and such notice shall
specify the section of this Sixth Supplemental Indenture pursuant
to which the Company is electing to satisfy its conversion
obligations; provided, however, that the Company shall have the
right to irrevocably elect, in its sole discretion and without the
consent of Noteholders, by notice to the Trustee (for further
distribution to Noteholders), on or prior to February 15,
2013, to settle all of its future Conversion Obligations entirely
in Common Shares as described in Section 8.02(a)(2), and
provided further, that the Company is required to settle all
conversions with a Conversion Date occurring on or after
February 15, 2013 in the same manner, and the Company shall
notify Noteholders by notice to the Trustee (for further
distribution to Noteholders) of the manner of settlement (including
specifying the applicable section of this Sixth Supplemental
Indenture that describes such manner of settlement) on or before
such date. The Company shall treat all Noteholders converting on
the same Trading Day in the same manner; however, the Company shall
not have any obligation to settle its Conversion Obligations
arising on different Trading Days in the same manner, except for
conversions with a Conversion Date occurring on or after
February 15, 2013, which shall all be satisfied in the same
manner.
(2) If
the Company has elected, within the applicable time periods
specified in Section 8.02(a)(1), to settle its Conversion
Obligations as described in this Section 8.02(a)(2), the Company
shall have the right to settle its conversion obligations entirely
in Common Shares. If the Company elects to satisfy its Conversion
Obligation entirely in Common Shares, the Company shall deliver a
number of Common Shares equal to (i) the aggregate principal
amount of Notes to be converted divided by $1,000, multiplied by
(ii) the applicable Conversion Rate (which shall include any
increases to reflect any Additional Shares that such Holder is
entitled to receive pursuant to Section 8.01(g) above). The
Company shall deliver such Common Shares as soon as practicable
after it has notified the converting Holder pursuant to Section
8.02(a)(1) above, that it has elected to satisfy its Conversion
Obligation entirely in Common Shares.
(3) If
the Company does not elect, within the applicable time periods
specified in Section 8.02(a)(1), to settle its conversion
obligations as described in
20
Section 8.02(a)(2) or 8.02(a)(4), the
Company shall settle its Conversion Obligations as described in
this Section 8.02(a)(3), subject to Section 8.02(b)
hereof. The Company shall deliver in respect of each $1,000
principal amount of Notes being converted a Settlement Amount equal
to the sum of the Daily Settlement Amounts for each of the 20
consecutive Trading Days during the Observation Period, on the
third Trading Day immediately following the last day of the related
Observation Period; provided that the Company will deliver cash in
lieu of fractional Common Shares as set forth pursuant to clause
(k) below. The Daily Settlement Amounts shall be determined by the
Company promptly following the last day of the Observation
Period.
(4) If
the Company has elected, within the applicable time periods
specified in Section 8.02(a)(1), to settle its Conversion
Obligations as described in this Section 8.02(a)(4), the
Company shall have the right to settle all or a portion of the
amount by which the Daily Conversion Value exceeds $50 in cash in
accordance with this Section 8.02(a)(4). In such case, the
Company shall specify a percentage of the amount by which the Daily
Conversion Value exceeds $50 that will be settled in cash, or the
“ cash percentage .” The Company will inform
converting Holders by notice to the Trustee (for further
distribution to Noteholders) no later than two Trading Days prior
to the first day of the applicable Observation Period if it elects
to pay cash upon conversion of the Notes and shall specify in such
notice (the “ cash percentage notice ”) the
applicable cash percentage. If the Company elects to specify a cash
percentage, the amount of cash that the Company shall deliver in
respect of each Trading Day in the applicable Observation Period
shall equal the product of (w) the cash percentage and
(x) the amount by which the Daily Conversion Value exceeds $50
for such Trading Day. The number of Common Shares deliverable in
respect of each Trading Day in the applicable Observation Period
shall equal (i) the product of (y) 100% minus the cash
percentage and (z) the amount by which the Daily Conversion
Value exceeds $50 for such Trading Day, divided by (ii) the
Daily VWAP of the Common Shares for such Trading Day. If the
Company does not specify a cash percentage, it must settle the
entire amount by which the Daily Conversion Value exceeds $50 with
Common Shares pursuant to Section 8.02(a)(3) above; provided,
however, that the Company will deliver cash in lieu of fractional
Common Shares as set forth pursuant to clause (k) below. If the
Company specifies a cash percentage, the Company shall satisfy its
Conversion Obligation by delivering, on the third Trading Day
immediately following the la
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