Great Plains Energy
Incorporated
The Bank of New York Mellon Trust
Company, N.A.,
as Purchase Contract
Agent,
The Bank of New York Mellon Trust
Company, N.A.,
as Collateral Agent, Custodial Agent
and Securities Intermediary
PURCHASE CONTRACT AND PLEDGE
AGREEMENT
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Page
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ARTICLE 1
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Definitions
and Other Provisions of General Application
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Section 1.01 .
Definitions
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1
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Section 1.02 . Compliance Certificates
and Opinions
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25
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Section 1.03 . Form of Documents
Delivered to Purchase Contract Agent
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26
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Section 1.04 . Acts of Holders; Record
Dates
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27
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28
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Section 1.06 . Notice to Holders;
Waiver
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29
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Section 1.07 . Effect of Headings and
Table of Contents
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29
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Section 1.08 . Successors and
Assigns
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29
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Section 1.09 . Separability
Clause
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29
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Section 1.10 . Benefits of
Agreement
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29
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Section 1.11 . Governing Law; Waiver of
Jury Trial
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30
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Section 1.12 . Legal
Holidays
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30
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Section 1.13 .
Counterparts
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31
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Section 1.14 . Inspection of
Agreement
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31
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Section 1.15 . Appointment of Financial
Institution as Agent for the Company
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31
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31
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ARTICLE 2
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Certificate
Forms
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Section 2.01 . Forms of Certificates
Generally
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31
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Section 2.02 . Form of Purchase Contract
Agent’s Certificate of Authentication
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32
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ARTICLE 3
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The
Units
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Section 3.01 . Amount; Form and
Denominations
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32
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Section 3.02 . Rights and Obligations
Evidenced by the Certificates
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32
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Section 3.03 . Execution,
Authentication, Delivery and Dating
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33
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Section 3.04 . Temporary
Certificates
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34
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Section 3.05 . Registration;
Registration of Transfer and Exchange
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35
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Section 3.06 . Book-entry
Interests
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36
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Section 3.07 . Notices to
Holders
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37
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Section 3.08 . Appointment of Successor
Depositary
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38
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Section 3.09 . Definitive
Certificates
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38
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Page
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Section 3.10 . Mutilated, Destroyed,
Lost and Stolen Certificates
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38
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Section 3.11 . Persons Deemed
Owners
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40
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Section 3.12 .
Cancellation
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41
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Section 3.13 . Creation of Treasury
Units by Substitution of Treasury Securities
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42
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Section 3.14 . Recreation of Corporate
Units
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45
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Section 3.15 . Transfer of Collateral
Upon Occurrence of Termination Event
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46
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Section 3.16 . No Consent to
Assumption
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49
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Section 3.17 .
Substitutions
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49
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ARTICLE 4
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The
Notes
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Section 4.01 . Interest Payments; Rights
to Interest Payments Preserved
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49
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Section 4.02 . Payments Prior to or on
Purchase Contract Settlement Date
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51
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Section 4.03 . Notice and
Voting
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52
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Section 4.04 . Special Event
Redemption
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53
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Section 4.05 . Payments to Purchase
Contract Agent
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54
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Section 4.06 . Payments Held in
Trust
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54
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ARTICLE 5
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The Purchase
Contracts
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Section 5.01 . Purchase of Shares of
Common Stock
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55
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Section 5.02 . Early
Remarketing
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57
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Section 5.03 . Cash Settlement; Final
Remarketing; Payment of Purchase Price
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60
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Section 5.04 . Issuance of Shares of
Common Stock
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69
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Section 5.05 . Adjustment of each Fixed
Settlement Rate
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70
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Section 5.06 . Notice of Adjustments and
Certain Other Events
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85
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Section 5.07 . Termination Event;
Notice
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86
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Section 5.08 . Early
Settlement
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87
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Section 5.09 . No Fractional
Shares
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91
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Section 5.10 . Charges and
Taxes
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91
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Section 5.11 . Contract Adjustment
Payments
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91
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Section 5.12 . Deferral of Contract
Adjustment Payments
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98
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ARTICLE 6
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Rights and
Remedies of Holders
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Section 6.01 . Unconditional Right of
Holders to Receive Contract Adjustment Payments and to Purchase
Shares of Common Stock
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101
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Section 6.02 . Restoration of Rights and
Remedies
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101
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Section 6.03 . Rights and Remedies
Cumulative
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101
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Section 6.04 . Delay or Omission Not
Waiver
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101
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Section 6.05 . Undertaking for
Costs
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101
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Section 6.06 . Waiver of Stay or
Extension Laws
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102
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ii
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Page
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ARTICLE 7
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The Purchase
Contract Agent
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Section 7.01 . Certain Duties and
Responsibilities
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102
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Section 7.02 . Notice of
Default
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104
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Section 7.03 . Certain Rights of
Purchase Contract Agent
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104
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Section 7.04 . Not Responsible for
Recitals or Issuance of Units
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106
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Section 7.05 . May Hold
Units
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106
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Section 7.06 . Money Held in
Custody
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106
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Section 7.07 . Compensation and
Reimbursement
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106
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Section 7.08 . Corporate Purchase
Contract Agent Required; Eligibility
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107
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Section 7.09 . Resignation and Removal;
Appointment of Successor
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108
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Section 7.10 . Acceptance of Appointment
by Successor
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109
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Section 7.11 . Merger, Conversion,
Consolidation or Succession to Business
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110
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Section 7.12 . Preservation of
Information; Communications to Holders
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110
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Section 7.13 . No Obligations of
Purchase Contract Agent
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110
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Section 7.14 . Tax
Compliance
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111
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ARTICLE 8
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Supplemental
Agreements
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Section 8.01 . Supplemental Agreements
without Consent of Holders
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111
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Section 8.02 . Supplemental Agreements
with Consent of Holders
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112
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Section 8.03 . Execution of Supplemental
Agreements
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114
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Section 8.04 . Effect of Supplemental
Agreements
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114
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Section 8.05 . Reference to Supplemental
Agreements
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114
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ARTICLE 9
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Consolidation, Merger,
Conveyance, Transfer Or Lease
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Section 9.01 . Covenant Not To
Consolidate, Merge, Convey, Transfer or Lease Property except under
Certain Conditions
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114
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Section 9.02 . Rights and Duties of
Successor Person
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115
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Section 9.03 . Officers’
Certificate and Opinion of Counsel Given to Purchase Contract
Agent
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116
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ARTICLE 10
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Covenants
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Section 10.01 . Performance under
Purchase Contracts
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116
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Section 10.02 . Maintenance of Office or
Agency
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116
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Section 10.03 . Company to Reserve
Common Stock
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117
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Section 10.04 . Covenants as to Common
Stock; Listing
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117
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Section 10.05 . Statements of Officers
of the Company as to Default
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117
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118
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Section 10.07 . Tax
Treatment
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118
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Section 10.08 . Remarketing
Agreement
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118
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iii
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Page
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ARTICLE 11
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Pledge
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118
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Section 11.02 .
Termination
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119
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ARTICLE 12
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Administration of
Collateral
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Section 12.01 . Initial Deposit of
Notes
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119
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Section 12.02 . Establishment of
Collateral Account
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119
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Section 12.03 . Treatment as Financial
Assets
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120
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Section 12.04 . Sole Control by
Collateral Agent
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120
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Section 12.05 .
Jurisdiction
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120
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Section 12.06 . No Other
Claims
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120
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Section 12.07 . Investment and
Release
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121
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Section 12.08 . Statements and
Confirmations
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121
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Section 12.09 . Tax
Allocations
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121
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Section 12.10 . No Other
Agreements
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121
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Section 12.11 . Powers Coupled with an
Interest
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121
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Section 12.12 . Waiver of Lien; Waiver
of Set-off
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121
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ARTICLE 13
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Rights and
Remedies of the Collateral Agent
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Section 13.01 . Rights and Remedies of
the Collateral Agent
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122
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ARTICLE 14
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Representations and
Warranties to Collateral Agent; Holder Covenants
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Section 14.01 . Representations and
Warranties
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123
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Section 14.02 . Covenants
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124
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ARTICLE 15
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The
Collateral Agent, the Custodial Agent and the Securities
Intermediary
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Section 15.01 . Appointment, Powers and
Immunities
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125
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Section 15.02 . Instructions of the
Company
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126
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Section 15.03 . Reliance by Collateral
Agent, Custodial Agent and Securities Intermediary
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126
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Section 15.04 . Certain
Rights
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126
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Section 15.05 . Merger, Conversion,
Consolidation or Succession to Business
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127
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Section 15.06 . Rights in Other
Capacities
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127
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iv
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Page
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Section 15.07 . Non-reliance on the
Collateral Agent, Custodial Agent And Securities
Intermediary
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128
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Section 15.08 . Compensation and
Indemnity
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128
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Section 15.09 . Failure to
Act
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129
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Section 15.10 . Resignation of
Collateral Agent, the Custodial Agent and the Securities
Intermediary
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130
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Section 15.11 . Right to Appoint Agent
or Advisor
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131
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131
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Section 15.13 .
Exculpation
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131
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Section 15.14 . Expenses,
Etc.
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132
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Section 15.15 . Force
Majeure
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132
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ARTICLE 16
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Miscellaneous
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Section 16.01 . Security Interest
Absolute
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133
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Section 16.02 . Notice of Special Event,
Special Event Redemption and Termination Event
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133
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v
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-
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Form of
Corporate Units Certificate
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-
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Form of
Treasury Units Certificate
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Instruction to
Purchase Contract Agent From Holder (To Create Treasury Units or
Corporate Units)
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Notice from
Purchase Contract Agent to Holders Upon Termination Event (Transfer
of Collateral upon Occurrence of a Termination Event)
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Notice of Cash
Settlement
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-
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Instruction
from Purchase Contract Agent to Collateral Agent (Creation of
Treasury Units)
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-
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Instruction
from the Collateral Agent to the Securities Intermediary (Creation
of Treasury Units)
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Instruction
from Purchase Contract Agent to Collateral Agent (Recreation of
Corporate Units)
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-
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Instruction
from Collateral Agent to Securities Intermediary (Recreation of
Corporate Units)
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Notice of Cash
Settlement from Purchase Contract Agent to Collateral Agent (Cash
Settlement Amounts)
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Instruction to
Custodial Agent Regarding Remarketing
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Instruction to
Custodial Agent Regarding Withdrawal from Remarketing
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Notice of Cash
Settlement After Failed Final Remarketing
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Notice from
Purchase Contract Agent to Collateral Agent (Settlement with
Separate Cash)
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-
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Notice of
Settlement with Separate Cash from Securities Intermediary to
Purchase Contract Agent (Settlement with Separate Cash)
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Form of
Remarketing Agreement
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vi
PURCHASE CONTRACT
AND PLEDGE AGREEMENT, dated as of May 18, 2009, among Great
Plains Energy Incorporated, a Missouri corporation (the “
Company ”), The Bank of New York Mellon Trust Company,
N.A., a national banking association, acting as purchase contract
agent for, and as attorney-in-fact of, the Holders from time to
time of the Units (in such capacities, together with its successors
and assigns in such capacities, the “ Purchase Contract
Agent ”), and The Bank of New York Mellon Trust Company,
N.A., as collateral agent hereunder for the benefit of the Company
(in such capacity, together with its successors in such capacity,
the “ Collateral Agent ”), as custodial agent
(in such capacity, together with its successors in such capacity,
the “ Custodial Agent ”), and as securities
intermediary (as defined in Section 8-102(a)(14) of the UCC)
with respect to the Collateral Account (in such capacity, together
with its successors in such capacity, the “ Securities
Intermediary ”).
WHEREAS, the
Company has duly authorized the execution and delivery of this
Agreement and the Certificates evidencing the Units; and
WHEREAS, all
things necessary to make the Purchase Contracts, when the
Certificates are executed by the Company and authenticated,
executed on behalf of the Holders and delivered by the Purchase
Contract Agent, as provided in this Agreement, the valid
obligations of the Company, and to constitute these presents a
valid agreement of the Company, in accordance with its terms, have
been done; and
WHEREAS, pursuant
to the terms of this Agreement and the Purchase Contracts, the
Holders have irrevocably authorized the Purchase Contract Agent, as
attorney-in-fact of such Holders, among other things, to execute
and deliver this Agreement on behalf of such Holders and to grant
the Pledge provided herein of the Collateral to secure the
Obligations.
NOW, THEREFORE,
the parties hereto agree as follows:
ARTICLE 1
Definitions and Other
Provisions of General Application
Section 1.01
. Definitions. For all purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise
requires:
(a) the terms
defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular, and nouns
and pronouns of the masculine gender include the feminine and
neuter genders;
(b) all
accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting
principles in the United States;
(c) the words
“ herein, ” “ hereof ” and
“ hereunder ” and other words of similar import
refer to this Agreement as a whole and not to any particular
Article, Section, Exhibit or other subdivision;
(d) the
following terms, which are defined in the UCC, shall have the
meanings set forth therein: “ certificated security,
” “ control, ” “ financial
asset, ” “ entitlement order, ”
“ securities account ” and “ security
entitlement ”;
(e) unless
the context otherwise requires, any reference to an “
Article ” or “ Section ” or an
“ Exhibit ” refers to an Article, Section or an
Exhibit, as the case may be, to this Agreement; and
(f) the
following terms have the meanings given to them in this
Section 1.01(f):
“ Act
” has the meaning, with respect to any Holder, set forth in
Section 1.04.
“
Additional Notes ” has the meaning set forth in the
Supplemental Indenture.
“
Affiliate ” of any specified Person means any other
Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person. For
the purposes of this definition,” control” when used
with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or
otherwise; and the terms” controlling” and”
controlled” have meanings correlative to the
foregoing.
“
Agreement ” means this instrument as originally
executed or as it may from time to time be supplemented or amended
by one or more agreements supplemental hereto entered into pursuant
to the applicable provisions hereof.
“
Applicable Market Value ” has the meaning set forth in
Section 5.01(a).
“
Applicable Ownership Interest in Notes ” means a 1/20,
or a 5.0%, undivided beneficial ownership interest in $1,000
principal amount of Notes that is a component of a Corporate Unit,
and “ Applicable Ownership Interests in Notes ”
means the aggregate of each Applicable Ownership Interest in Notes
that is a component of each Corporate Unit then
Outstanding.
“
Applicable Ownership Interest in the Remarketing Treasury
Portfolio ” shall mean, with respect to a Corporate Unit
and the Remarketing Treasury Portfolio,
2
(i) a 1/20, or a
5%, undivided beneficial ownership interest in $1,000 face amount
of U.S. Treasury securities (or principal or interest strips
thereof) included in the Remarketing Treasury Portfolio that
matures on or prior to June 15, 2012;
(ii) if the Reset
Effective Date occurs on or prior to March 15, 2012, with
respect to the originally scheduled Interest Payment Dates on the
Notes that would have occurred on March 15, 2012 and
June 15, 2012, (A) an undivided beneficial ownership
interest in a $1,000 face amount of U.S. Treasury securities (or
principal or interest strips thereof) that matures on or prior to
March 15, 2012 (in connection with the Interest Payment Date
that would have occurred on March 15, 2012) and on or prior to
June 15, 2012 (in connection with the Interest Payment Date
that would have occurred on June 15, 2012), each in an amount
equal to the interest payment that would be due on each of
March 15, 2012 and June 15, 2012, respectively, on an
Applicable Ownership Interest in Notes (assuming that
(1) there was no Remarketing and (2) the Coupon Rate on
the Notes had not been reset to the Reset Rate) and (B) an
undivided beneficial ownership interest in a $1,000 face amount of
U.S. Treasury securities (or principal or interest strips thereof)
that matures on or prior to March 15, 2012 in an amount equal
to any accrued and unpaid Deferred Interest (including compounded
interest thereon) on an Applicable Ownership Interest in Notes
(assuming that (1) there was no Remarketing and (2) the
Coupon Rate on the Notes had not been reset to the Reset Rate)
accruing from the beginning of the Deferral Period to, but
excluding, March 15, 2012; and
(iii) if the Reset
Effective Date occurs after March 15, 2012, with respect to
the originally scheduled Interest Payment Date on the Notes that
would have occurred on June 15, 2012, (A) an undivided
beneficial ownership interest in a $1,000 face amount of U.S.
Treasury securities (or principal or interest strips thereof) that
matures on or prior to June 15, 2012 in an amount equal to the
interest payment that would be due on June 15, 2012 on an
Applicable Ownership Interest in Notes (assuming that
(1) there was no Remarketing and (2) the Coupon Rate on
the Notes had not been reset to the Reset Rate) and (B) an
undivided beneficial ownership interest in a $1,000 face amount of
U.S. Treasury securities (or principal or interest strips thereof)
that matures on or prior to June 15, 2012 in an amount equal
to any accrued and unpaid Deferred Interest (including compounded
interest thereon) on an Applicable Ownership Interest in Notes
(assuming that (1) there was no Remarketing and (2) the
Coupon Rate on the Notes had not been reset to the Reset Rate)
accruing from the beginning of the Deferral Period to, but
excluding, June 15, 2012.
Notwithstanding
the foregoing, if U.S. Treasury securities (or principal or
interest strips thereof) that are to be included in a Remarketing
Treasury Portfolio
3
have a yield
that is less than zero, then the Applicable Ownership Interest in
the Remarketing Treasury Portfolio shall instead consist of:
(i) 1/20, or 5%, undivided beneficial ownership interest in
$1,000 cash; and (ii) if the Reset Effective Date in
connection with an Early Remarketing of the Notes occurs on or
prior to March 15, 2012, with respect to the originally
scheduled Interest Payment Dates on the Notes that would have
occurred on March 15, 2012 and June 15, 2012, cash in an
amount equal to (A) the interest payment that would be due on
each of March 15, 2012 and June 15, 2012 on an Applicable
Ownership Interest in the Notes (assuming that (1) there was no
Remarketing and (2) the Coupon Rate on the Notes had not been
reset to the Reset Rate) and (B) any accrued and unpaid
Deferred Interest (including compounded interest thereon) on an
Applicable Ownership Interest in the Notes (assuming that
(1) there was no Remarketing and (2) the Coupon Rate on
the Notes had not been reset to the Reset Rate) accruing from the
beginning of the Deferral Period to, but excluding, March 15,
2012; and (iii) if the Reset Effective Date in connection with
an Early Remarketing of the Notes occurs after March 15, 2012,
with respect to the originally scheduled Interest Payment Date on
the Notes that would have occurred on June 15, 2012, cash in
an amount equal to (x) the interest payment that would be due
on June 15, 2012 on an Applicable Ownership Interest in the
Notes (assuming that (1) there was no Remarketing and
(2) the Coupon Rate on the Notes had not been reset to the
Reset Rate) and (y) any accrued and unpaid Deferred Interest
(including compounded interest thereon) on an Applicable Ownership
Interest in the Notes (assuming that (1) there was no
Remarketing and (2) the Coupon Rate on the Notes had not been
reset to the Reset Rate) accruing from the beginning of the
deferral period to, but excluding, June 15, 2012.
“
Applicable Ownership Interest in the Special Event Treasury
Portfolio ” means, with respect to a Corporate Unit and
the Special Event Treasury Portfolio: (i) a 1/20, or 5%,
undivided beneficial ownership interest in a $1,000 face amount of
U.S. Treasury securities (or principal or interest strips thereof)
included in the Special Event Treasury Portfolio that matures on or
prior to June 15, 2012, and (ii) for each scheduled Interest
Payment Date on the Notes that occurs after the Special Event
Redemption Date and on or prior to June 15, 2012, an undivided
beneficial ownership interest in a $1,000 face amount of U.S.
Treasury securities (or principal or interest strips thereof) that
matures on or prior to that Interest Payment Date, each in an
amount equal to the interest payment that would be due on a 1/20,
or 5%, beneficial ownership interest in the principal amount of the
Notes (assuming that (1) there was no Remarketing and
(2) the Coupon Rate on the Notes had not been reset to the
Reset Rate).
Notwithstanding
the foregoing, if U.S. Treasury securities (or principal or
interest strips thereof) that are to be included in a Special Event
Treasury Portfolio have a yield that is less than zero, then the
Applicable Ownership Interest in the Special Event Treasury
Portfolio shall instead consist of: (i) 1/20, or 5%, undivided
beneficial ownership interest in $1,000 cash; and (ii) for
each scheduled Interest Payment Date on the Notes that occurs after
the Special Event
4
Redemption Date
and on or prior to June 15, 2012, cash in an amount equal to
the interest payment that would be due on each such scheduled
Interest Payment Date on an Applicable Ownership Interest in the
Notes (assuming that (1) there was no Remarketing and
(2) the Coupon Rate on the Notes had not been reset to the
Reset Rate).
“
Applicable Ownership Interest in the Treasury Portfolio
” means the Applicable Ownership Interest in the Remarketing
Treasury Portfolio or the Applicable Ownership Interest in the
Special Event Treasury Portfolio, collectively or individually, as
the case may be.
“
Applicable Principal Amount ” means the aggregate
principal amount of the Notes underlying the Pledged Applicable
Ownership Interests in Notes that are components of the Corporate
Units.
“
Applicable Remarketing Period ” means any of
(i) any Early Remarketing Period for which the Company has
elected to conduct an Early Remarketing pursuant to
Section 5.02 or (ii) the Final Remarketing Period, as the
context requires.
“
Applicants ” has the meaning set forth in
Section 7.12(b).
“
Bankruptcy Code ” means Title 11 of the United States
Code, or any other law of the United States that from time to time
provides a uniform system of bankruptcy laws.
“
Beneficial Owner ” means, with respect to a Book-Entry
Interest, a Person who is the beneficial owner of such Book-Entry
Interest as reflected on the books of the Depositary or on the
books of a Person maintaining an account with such Depositary
(directly as a Depositary Participant or as an indirect
participant, in each case in accordance with the rules of such
Depositary).
“ Board
of Directors ” means the board of directors of the
Company or a duly authorized committee of that board.
“ Board
Resolution ” means one or more resolutions of the Board
of Directors, a copy of which has been certified by the Secretary
or an Assistant Secretary of the Company to have been duly adopted
by the Board of Directors and to be in full force and effect on the
date of such certification and delivered to the Purchase Contract
Agent.
“
Book-Entry Interest ” means a beneficial interest in a
Global Certificate, registered in the name of a Depositary or a
nominee thereof, ownership and transfers of which shall be
maintained and made through book entries by such Depositary as
described in Section 3.06.
5
“
Business Day ” means any day other than a Saturday or
Sunday or any other day on which banking institutions and trust
companies in New York City, New York are permitted or required by
any applicable law to close; provided that for purposes of
the second paragraph of Section 1.12 only, the term “
Business Day ” shall also be deemed to exclude any day
on which the Depositary is closed.
“
Cash ” means any coin or currency of the United States
as at the time shall be legal tender for payment of public and
private debts.
“ Cash
Settlement ” has the meaning set forth in
Section 5.03(a)(i).
“
Certificate ” means a Corporate Units Certificate or a
Treasury Units Certificate, as the case may be.
“ Closing
Price ” has the meaning set forth in
Section 5.01(a).
“
Code ” means the Internal Revenue Code of 1986, as
amended.
“
Collateral ” means the collective reference
to:
(i) the
Collateral Account and all investment property and other financial
assets from time to time credited to the Collateral Account and all
security entitlements with respect thereto, including, without
limitation, (A) the Applicable Ownership Interests in Notes
and security entitlements relating thereto (and the Notes and
security entitlements relating thereto delivered to the Collateral
Agent in respect of such Applicable Ownership Interests in Notes),
(B) the Applicable Ownership Interests in the Treasury
Portfolio (as specified in clause (i) of each paragraph of the
definitions of Applicable Ownership Interest in the Special Event
Treasury Portfolio and Applicable Ownership Interest in the
Remarketing Treasury Portfolio) of the Holders with respect to the
Treasury Portfolio that is a component of the Corporate Units from
time to time) and security entitlements relating thereto,
(C) any Treasury Securities and security entitlements relating
thereto Transferred to the Securities Intermediary from time to
time in connection with the creation of Treasury Units in
accordance with Section 3.13 hereof and (D) payments made by
Holders pursuant to Section 5.03 hereof;
(ii) all
Proceeds of any of the foregoing (whether such Proceeds arise
before or after the commencement of any proceeding under any
applicable bankruptcy, insolvency or other similar law, by or
against the pledgor or with respect to the pledgor); and
(iii) all
powers and rights now owned or hereafter acquired under or with
respect to the Collateral.
“
Collateral Account ” means the securities account of
The Bank of New York Mellon Trust Company, N.A., as Collateral
Agent, maintained on the books of the Securities Intermediary and
designated “ The Bank of New York Mellon
6
Trust
Company, N.A., as Collateral Agent of Great Plains Energy
Incorporated, as pledgee of The Bank of New York Mellon Trust
Company, N.A., as the Purchase Contract Agent on behalf of and as
attorney-in-fact for the Holders ”.
“
Collateral Agent ” means the Person named as “
Collateral Agent ” in the first paragraph of this
Agreement, acting in its capacity as such hereunder, until a
successor Collateral Agent shall have become such pursuant to this
Agreement, and thereafter “ Collateral Agent ”
shall mean the Person who is then the Collateral Agent
hereunder.
“
collateral event of default ” has the meaning set
forth in Section 13.01(b).
“
Collateral Substitution ” means (a) prior to the
earlier of any Successful Early Remarketing and any Special Event
Redemption (i) with respect to the Corporate Units, the
substitution of the Pledged Applicable Ownership Interests in Notes
included in such Corporate Units with Treasury Securities in an
aggregate principal amount at maturity equal to the aggregate
principal amount of such Pledged Applicable Ownership Interests in
Notes, or (ii) with respect to the Treasury Units, the
substitution of the Pledged Treasury Securities included in such
Treasury Units with Notes in an aggregate principal amount equal to
the aggregate principal amount at stated maturity of the Pledged
Treasury Securities and (b) after the earlier of any
Successful Early Remarketing and any Special Event Redemption,
(i) with respect to the Corporate Units, the substitution of
the Pledged Applicable Ownership Interests in the Treasury
Portfolio included in such Corporate Units with Treasury Securities
in an aggregate principal amount at maturity equal to the aggregate
principal amount of such Pledged Applicable Ownership Interests in
the Treasury Portfolio (determined solely with respect to clause
(i) of the definition of Applicable Ownership Interests in the
Remarketing Treasury Portfolio or Applicable Ownership Interests in
the Special Event Treasury Portfolio, as applicable), or
(ii) with respect to the Treasury Units, the substitution of
the Pledged Treasury Securities included in such Treasury Units
with a Treasury Portfolio in an aggregate principal amount
(determined solely with respect to clause (i) of the
definition of Applicable Ownership Interests in the Remarketing
Treasury Portfolio or Applicable Ownership Interests in the Special
Event Treasury Portfolio, as applicable) equal to the aggregate
principal amount at stated maturity of the Pledged Treasury
Securities.
“ Common
Stock ” means the common stock, no par value, of the
Company.
“
Company ” means the Person named as the “
Company ” in the first paragraph of this instrument
until a successor shall have become such pursuant to the applicable
provision of this Agreement, and thereafter “ Company
” shall mean such successor.
7
“
Compounded Contract Adjustment Payments ” has the
meaning set forth in Section 5.12.
“
Constituent Person ” has the meaning set forth in
Section 5.05(b).
“
Contract Adjustment Payment Date ” means each
March 15, June 15, September 15 and December 15
of each year, commencing on September 15, 2009.
“
Contract Adjustment Payments ” means the payments
payable by the Company on the Contract Adjustment Payment Dates in
respect of each Purchase Contract, at a rate per year of 2.00% of
the Stated Amount per Purchase Contract.
“
Corporate Trust Office ” means the designated office
of the Purchase Contract Agent at which, at any particular time,
its corporate trust business shall be administered, which office at
the date hereof is located at 2 North LaSalle Street,
Suite 1020, Chicago, Illinois, 60602, Attention: Global
Corporate Trust, or such other address as the Purchase Contract
Agent may designate from time to time by notice to the Company, or
a corporate trust office or agency of any successor Purchase
Contract Agent, or such other address as such successor Purchase
Contract Agent may designate from time to time by notice to the
Company.
“
Corporate Unit ” means the collective rights and
obligations of a Holder of a Corporate Units Certificate in respect
of the Applicable Ownership Interest in Notes or the Applicable
Ownership Interest in the Treasury Portfolio, as the case may be,
subject in each case (except that the Applicable Ownership Interest
in the Treasury Portfolio as specified in clauses (ii) and
(iii) of each paragraph of the definition of Applicable
Ownership Interest in the Remarketing Treasury Portfolio and clause
(ii) of each paragraph of the definition of Applicable
Ownership Interest in the Special Event Treasury Portfolio shall
not be subject to the Pledge) to the Pledge thereof, and the
related Purchase Contract.
“
Corporate Units Certificate ” means a certificate
evidencing the rights and obligations of a Holder in respect of the
number of Corporate Units specified on such certificate.
“ Coupon
Rate ” has the meaning set forth in the Supplemental
Indenture.
“ Current
Market Price ” means, in respect of a share of Common
Stock on any date of determination, the average of the daily
Closing Prices over the ten consecutive Trading Days ending on the
earlier of the day in question and the day before the “ ex
dividend date ” with respect to the issuance or
distribution requiring such computation.
“
Custodial Agent ” means the Person named as Custodial
Agent in the first paragraph of this Agreement, acting in its
capacity as such hereunder, until a
8
successor
Custodial Agent shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter “ Custodial
Agent ” shall mean the Person who is then the Custodial
Agent hereunder.
“
Deferral Period ” has the meaning set forth in the
Supplemental Indenture.
“
Deferred Interest ” has the meaning set forth in the
Supplemental Indenture.
“
Depositary ” means a clearing agency registered under
Section 17A of the Exchange Act that is designated to act as
Depositary for the Units as contemplated by Sections 3.06 and
3.08.
“
Depositary Participant ” means a broker, dealer, bank,
other financial institution or other Person for whom from time to
time the Depositary effects book entry transfers and pledges of
securities deposited with the Depositary.
“
Dividend Threshold Amount ” has the meaning set forth
in Section 5.05(a)(iv).
“ DTC
” means The Depository Trust Company.
“ Early
Remarketing ” means the Remarketing of the Notes on an
Early Remarketing Date by the Remarketing Agent(s) pursuant to the
Remarketing Agreement.
“ Early
Remarketing Date ” has the meaning set forth in
Section 5.02(a).
“ Early
Remarketing Period ” means any three-Business Day period
that consists of three sequential possible remarketing dates
selected by the Company during the period beginning on, and
including, December 15, 2011 and ending on, and including,
May 15, 2012.
“ Early
Settlement ” has the meaning set forth in
Section 5.08(a).
“ Early
Settlement Amount ” has the meaning set forth in
Section 5.08(b).
“ Early
Settlement Date ” has the meaning set forth in
Section 5.08(b).
“
Effective Date ” has the meaning set forth in
Section 5.05(b)(iii).
“
ERISA ” means the Employee Retirement Income Security
Act of 1974, as amended.
“
Exchange Act ” means the Securities Exchange Act of
1934 and any statute successor thereto, in each case as amended
from time to time, and the rules and regulations promulgated
thereunder.
9
“
Exchange Property Unit ” has the meaning set forth in
Section 5.05(b)(i).
“
Expiration Date ” has the meaning set forth in
Section 1.04(e).
“
Expiration Time ” has the meaning set forth in
Section 5.05(a)(v).
“ Failed
Early Remarketing ” has the meaning set forth in
Section 5.02(a)(iii).
“ Failed
Final Remarketing ” has the meaning set forth in
Section 5.03(b)(iii).
“ Failed
Remarketing ” means, as applicable, a Failed Early
Remarketing or a Failed Final Remarketing.
“ Final
Remarketing ” means the remarketing of the Notes on a
Final Remarketing Date by the Remarketing Agent(s) pursuant to the
Remarketing Agreement.
“ Final
Remarketing Date ” means the third Business Day
immediately preceding the Purchase Contract Settlement
Date.
“ Final
Remarketing Period ” means the period beginning on, and
including, the fifth Business Day and ending on, and including, the
third Business Day immediately preceding the Purchase Contract
Settlement Date.
“ Fixed
Settlement Rates ” means the Minimum Settlement Rate and
the Maximum Settlement Rate, collectively.
“
Fundamental Change ” means
(a) a “
person ” or “ group ” within the
meaning of Section 13(d) of the Exchange Act has become the direct
or indirect “ beneficial owner, ” as defined in
Rule 13d-3 under the Exchange Act, of the Company’s
common equity representing more than 50% of the voting power of the
Company’s common equity (other than in connection with a
consolidation, merger or other transaction described in clause
(b) below, in which case clause (b) shall
apply);
(b) the
Company is involved in a consolidation with or merger into any
other person, or any merger of another person into the Company, or
any other transaction or series of related transactions (other than
a merger that does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of the Common
Stock), in each case in which 90% or more of the outstanding shares
of Common Stock are exchanged for or converted into securities,
cash or other property, 10% or more of which consists of
securities, cash or other property that is not (or will not be
immediately upon the effectiveness of such consolidation, merger or
transaction) common stock listed
10
on the NYSE,
the NASDAQ Global Select Market or the NASDAQ Global
Market;
(c) the
Common Stock ceases to be listed or quoted on the NYSE, the NASDAQ
Global Select Market or the NASDAQ Global Market (other than in
connection with a consolidation, merger or other transaction
described in clause (b) above, in which case clause
(b) shall apply); or
(d) the
shareholders of the Company vote for a liquidation, dissolution or
termination of the Company.
“
Fundamental Change Early Settlement ” has the meaning
set forth in Section 5.05(b)(ii).
“
Fundamental Change Early Settlement Amount ” has the
meaning set forth in Section 5.05(b)(ii).
“
Fundamental Change Early Settlement Date ” has the
meaning set forth in Section 5.05(b)(ii).
“
Fundamental Change Early Settlement Rate ” has the
meaning set forth in Section 5.05(b)(iii).
“ Global
Certificate ” means a Certificate that evidences all or
part of the Units and is registered in the name of the Depositary
or a nominee thereof.
“
Holder ” means, with respect to a Unit, the Person in
whose name the Unit evidenced by a Certificate is registered in the
Security Register; provided, however, that solely for the purpose
of determining whether the Holders of the requisite number of Units
have voted on any matter (and not for any other purpose hereunder),
if the Unit remains in the form of one or more Global Certificates
and if the Depositary that is the registered holder of such Global
Certificate has sent an omnibus proxy assigning voting rights to
the Depositary Participants to whose accounts the Units are
credited on the record date, the term “ Holder ”
shall mean such Depositary Participant acting at the direction of
the Beneficial Owners.
“
Indemnitees ” has the meaning set forth in
Section 7.07(c).
“
Indenture ” means the Subordinated Indenture, dated as
of May 18, 2009, between the Company and the Indenture Trustee
(including any provisions of the TIA that are deemed incorporated
therein), as amended and supplemented by the Supplemental
Indenture.
“
Indenture Trustee ” means The Bank of New York Mellon
Trust Company, N.A., a national banking association, or any
successor thereto as described in the Indenture.
11
“ Initial
Public Offering ” means the first time securities of the
same class or type as the securities being distributed in the
Spin-Off are offered to the public for cash.
“
Interest Payment Date ” has the meaning set forth in
the Supplemental Indenture.
“ Issuer
Order ” or “ Issuer Request ” means a
written order or request signed in the name of the Company by the
Chairman, a Vice Chairman, the Chief Executive Officer, the Chief
Financial Officer, the President, any Vice President, and the
Secretary or any Assistant Secretary, the Corporate Treasurer or
any Assistant Treasurer of the Company, and delivered to the
Purchase Contract Agent.
“
Losses ” has the meaning set forth in
Section 15.08(b).
“ Maximum
Settlement Rate ” has the meaning set forth in
Section 5.01(a)(iii).
“ Minimum
Settlement Rate ” has the meaning set forth in
Section 5.01(a)(i).
“ Minimum
Stock Price ” has the meaning set forth in
Section 5.05(b)(iii)(3).
“
Notes ” means the series of Notes designated the
10.00% Subordinated Notes due 2042 of the Company.
“
NYSE ” has the meaning set forth in
Section 5.01(a).
“
Obligations ” means, with respect to each Holder, all
obligations and liabilities of such Holder under such
Holder’s Purchase Contract and this Agreement or any other
document made, delivered or given in connection herewith or
therewith, in each case whether on account of principal, interest
(including, without limitation, interest accruing before and after
the filing of any petition in bankruptcy, or the commencement of
any insolvency, reorganization or like proceeding, relating to such
Holder, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding), fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Company or the Collateral Agent or
the Securities Intermediary that are required to be paid by the
Holder pursuant to the terms of any of the foregoing
agreements).
“
Observation Period ” means the 20 consecutive Trading
Days ending on the third Trading Day immediately preceding the
Purchase Contract Settlement Date.
“ Offer
Expiration Date ” has the meaning set forth in
Section 5.05(a)(v).
12
“
Officers’ Certificate ” means a certificate
signed by (i) either the Chairman, Vice Chairman, Chief
Executive Officer, President or any Vice President of the Company,
and (ii) the Chief Financial Officer, the Secretary, an
Assistant Secretary or the Treasurer or an Assistant Treasurer of
the Company, and delivered to the Purchase Contract Agent, the
Collateral Agent, the Custodial Agent or the Securities
Intermediary, as applicable. Any Officers’ Certificate
delivered with respect to compliance with a condition or covenant
provided for in this Agreement (other than the Officers’
Certificate provided for in Section 10.05) shall include the
information set forth in Section 1.02 hereof.
“ Opinion
of Counsel ” means a written opinion of counsel, who may
be counsel to the Company (and who may be an employee of the
Company), and who shall be reasonably acceptable to the Purchase
Contract Agent. An opinion of counsel may rely on certificates as
to matters of fact.
“
Outstanding ” means, as of any date of determination,
all Units evidenced by Certificates theretofore authenticated,
executed and delivered under this Agreement, except:
(i) all
Units, if a Termination Event has occurred;
(ii) Units
evidenced by Certificates theretofore cancelled by the Purchase
Contract Agent or delivered to the Purchase Contract Agent for
cancellation or deemed cancelled pursuant to the provisions of this
Agreement; and
(iii) Units
evidenced by Certificates in exchange for or in lieu of which other
Certificates have been authenticated, executed on behalf of the
Holder and delivered pursuant to this Agreement, other than any
such Certificate in respect of which there shall have been
presented to the Purchase Contract Agent proof satisfactory to it
that such Certificate is held by a protected purchaser in whose
hands the Units evidenced by such Certificate are valid obligations
of the Company;
provided,
however , that in determining whether the Holders of the
requisite number of the Units have given any request, demand,
authorization, direction, notice, consent or waiver hereunder,
Units owned by the Company or any Affiliate of the Company shall be
disregarded and deemed not to be Outstanding Units, except that, in
determining whether the Purchase Contract Agent shall be authorized
and protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Units
that a Responsible Officer of the Purchase Contract Agent actually
knows to be so owned shall be so disregarded. Units so owned that
have been pledged in good faith may be regarded as Outstanding
Units if the pledgee establishes to the satisfaction of the
Purchase Contract Agent the pledgee’s right so to act with
respect to such Units and that the pledgee is not the Company or
any Affiliate of the Company.
13
“ Payment
Date ” means the 15th day of March, June, September and
December of each year, commencing September 15,
2009.
“
Permitted Investments ” means any one of the
following, in each case maturing on the Business Day following the
date of acquisition:
(1) any
evidence of indebtedness with an original maturity of 365 days
or less issued, or directly and fully guaranteed or insured, by the
United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of
America is pledged in support of the timely payment thereof or such
indebtedness constitutes a general obligation of it);
(2) deposits,
certificates of deposit or acceptances with an original maturity of
365 days or less of any institution which is a member of the
Federal Reserve System having combined capital and surplus and
undivided profits of not less than $500 million at the time of
deposit (and which may include the Collateral Agent);
(3) investments
with an original maturity of 365 days or less of any Person
that is fully and unconditionally guaranteed by a bank referred to
in clause (2);
(4) repurchase
agreements and reverse repurchase agreements relating to marketable
direct obligations issued or unconditionally guaranteed by the
United States of America or issued by any agency thereof and backed
as to timely payment by the full faith and credit of the United
States of America;
(5) investments
in commercial paper, other than commercial paper issued by the
Company or its affiliates, of any corporation incorporated under
the laws of the United States or any State thereof, which
commercial paper has a rating at the time of purchase at least
equal to “ A-1 ” by Standard & Poor’s
Ratings Services (“ S&P ”) or at least equal
to “ P-1 ” by Moody’s Investors Service,
Inc. (“ Moody’s ”); and
(6) investments
in money market funds (including, but not limited to, money market
funds managed by the Collateral Agent or an affiliate of the
Collateral Agent) registered under the Investment Company Act of
1940, as amended, rated in the highest applicable rating category
by S&P or Moody’s.
“
Person ” means a legal person, including any
individual, corporation, estate, partnership, joint venture,
association, joint-stock company, limited liability company, trust,
unincorporated organization or government or any agency or
political subdivision thereof or any other entity of whatever
nature.
“
Plan ” means an employee benefit plan that is subject
to ERISA, a plan or individual retirement account that is subject
to Section 4975 of the Code or any entity whose assets are
considered assets of any such plan.
14
“
Pledge ” means the lien and security interest in the
Collateral created by this Agreement.
“ Pledged
Applicable Ownership Interests in Notes ” means the
Applicable Ownership Interests in Notes and security entitlements
with respect thereto from time to time credited to the Collateral
Account and not then released from the Pledge.
“ Pledged
Applicable Ownership Interests in the Treasury Portfolio
” means the Applicable Ownership Interests in the Remarketing
Treasury Portfolio (as specified in clause (i) of each
paragraph of the definition of such term) or Applicable Ownership
Interests in the Special Event Treasury Portfolio (as specified in
clause (i) of each paragraph of the definition of such term),
as applicable, and, in each case, security entitlements with
respect thereto from time to time credited to the Collateral
Account and not then released from the Pledge.
“ Pledged
Securities ” means the Pledged Applicable Ownership
Interests in Notes, the Pledged Applicable Ownership Interests in
the Treasury Portfolio and the Pledged Treasury Securities,
collectively.
“ Pledged
Treasury Securities ” means Treasury Securities and
security entitlements with respect thereto from time to time
credited to the Collateral Account and not then released from the
Pledge.
“ Pledge
Indemnitees ” has the meaning set forth in
Section 15.08(b).
“
Predecessor Certificate ” means a Predecessor
Corporate Units Certificate or a Predecessor Treasury Units
Certificate.
“
Predecessor Corporate Units Certificate ” of any
particular Corporate Units Certificate means every previous
Corporate Units Certificate evidencing all or a portion of the
rights and obligations of the Company and the Holder under the
Corporate Units evidenced thereby; and, for the purposes of this
definition, any Corporate Units Certificate authenticated and
delivered under Section 3.10 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Corporate Units Certificate
shall be deemed to evidence the same rights and obligations of the
Company and the Holder as the mutilated, destroyed, lost or stolen
Corporate Units Certificate.
“
Predecessor Treasury Units Certificate ” of any
particular Treasury Units Certificate means every previous Treasury
Units Certificate evidencing all or a portion of the rights and
obligations of the Company and the Holder under the Treasury Units
evidenced thereby; and, for the purposes of this definition, any
Treasury Units Certificate authenticated and delivered under
Section 3.10 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Treasury Units Certificate shall be
deemed to evidence the same rights and obligations of
the
15
Company and the
Holder as the mutilated, destroyed, lost or stolen Treasury Units
Certificate.
“ Pro
Rata ” or “ pro rata ” shall mean pro
rata to each Holder according to the aggregate Stated Amount of the
Units held by such Holder in relation to the aggregate Stated
Amount of all Units outstanding.
“
Proceeds ” has the meaning ascribed thereto in the UCC
and includes, without limitation, all interest, dividends, cash,
instruments, securities, financial assets and other property
received, receivable or otherwise distributed upon the sale
(including, without limitation, any Remarketing), exchange,
collection or disposition of any financial assets from time to time
credited to the Collateral Account.
“
Prospectus ” means the prospectus relating to the
delivery of shares or any securities in connection with an Early
Settlement pursuant to Section 5.08 or a Fundamental Change
Early Settlement of Purchase Contracts pursuant to
Section 5.05(b)(ii), in the form in which first filed, or
transmitted for filing, with the Securities and Exchange Commission
after the effective date of the Registration Statement pursuant to
Rule 424(b) under the Securities Act, including the documents
incorporated by reference therein as of the date of such
Prospectus.
“
Purchase Contract ” means, with respect to any Unit,
the contract forming a part of such Unit and obligating the Company
to (i) sell, and the Holder of such Unit to purchase, not
later than the Purchase Contract Settlement Date, a number of
shares of Common Stock equal to the applicable Settlement Rate, and
(ii) pay to the Holder thereof Contract Adjustment Payments,
subject to the Company’s right to defer Contract Adjustment
Payments pursuant to Section 5.12, in each case, on the terms
and subject to the conditions set forth in Article 5
hereof.
“
Purchase Contract Agent ” means the Person named as
the “ Purchase Contract Agent ” in the first
paragraph of this Agreement, acting in its capacity as such
hereunder, until a successor Purchase Contract Agent shall have
become such pursuant to the applicable provisions of this
Agreement, and thereafter “ Purchase Contract Agent
” shall mean such Person or any subsequent successor who is
appointed pursuant to this Agreement.
“
Purchase Contract Settlement Date ” means
June 15, 2012.
“
Purchase Contract Settlement Fund ” has the meaning
set forth in Section 5.04.
“
Purchase Price ” has the meaning set forth in
Section 5.01(a).
“
Purchased Shares ” has the meaning set forth in
Section 5.05(a)(v).
16
“ Put
Right ” has the meaning set forth in the Supplemental
Indenture.
“
Quotation Agent ” has the meaning set forth in the
Supplemental Indenture.
“ Record
Date ” for any distribution and any Contract Adjustment
Payment and any deferred Contract Adjustment Payment (and any
Compounded Contract Adjustment Payment thereon) payable on any
Contract Adjustment Payment Date means the first day of the
calendar month in which the relevant Contract Adjustment Payment
Date falls (whether or not a Business Day).
“
Redemption Amount ” has the meaning set forth in the
Supplemental Indenture.
“
Redemption Price ” has the meaning set forth in the
Supplemental Indenture.
“
Reference Price ” has the meaning set forth in
Section 5.01(a)(ii).
“
Registration Statement ” means a registration
statement under the Securities Act prepared by the Company
covering, inter alia, the delivery by the Company of any securities
in connection with an Early Settlement on the Early Settlement Date
under Section 5.08 or a Fundamental Change Early Settlement of
Purchase Contracts on the Fundamental Change Early Settlement Date
under Section 5.05(b)(ii), including all exhibits thereto and the
documents incorporated by reference in the prospectus contained in
such registration statement, and any post-effective amendments
thereto.
“
Remarketing ” means the remarketing of the Notes
pursuant to the Remarketing Agreement on any Remarketing
Date.
“
Remarketing Agent(s) ” has the meaning set forth in
the Supplemental Indenture.
“
Remarketing Agreement ” means the Remarketing
Agreement, in substantially the form set forth in Exhibit P
hereof, to be entered into among the Company, the Purchase Contract
Agent and the Remarketing Agent(s), as the same may be amended,
amended and restated, supplemented or otherwise modified or
replaced from time to time.
“
Remarketing Announcement ” has the meaning set forth
in Section 5.03(c).
“
Remarketing Announcement Date ” has the meaning set
forth in Section 5.03(c).
“
Remarketing Date ” means any of the Business Days
selected for Remarketing in an Early Remarketing Period or the
Final Remarketing Period.
17
“
Remarketing Fee ” means, in the event of a Successful
Remarketing, a remarketing fee paid to the Remarketing Agent(s) to
be agreed upon in writing by the Company and the Remarketing
Agent(s) prior to any such Remarketing pursuant to the Remarketing
Agreement.
“
Remarketing Per Note Price ” means the Remarketing
Treasury Portfolio Purchase Price, divided by the number of
$1,000 principal amount of Notes underlying the Pledged Applicable
Ownership Interests in Notes that are held as components of
Corporate Units and remarketed in an Early Remarketing.
“
Remarketing Price ” means (i) in the case of an
Early Remarketing, 100% of the Remarketing Treasury Portfolio
Purchase Price plus the Separate Notes Purchase Price (if any), and
(ii) in the case of a Final Remarketing, 100% of the aggregate
principal amount of Notes (plus all accrued and unpaid Deferred
Interest, including compounded interest thereon, if any, on the
Notes being remarketed) underlying the Pledged Applicable Ownership
Interests in Notes and Separate Notes to be remarketed in such
Final Remarketing; provided that in each case of clause
(i) or (ii), “ Remarketing Price ” may
include, at the option of the Company, the Remarketing
Fee.
“
Remarketing Settlement Date ” means (i) in the
case of a Successful Early Remarketing occurring during an Early
Remarketing Period, the Reset Effective Date for such Successful
Early Remarketing, and (ii) in the case of a Final
Remarketing, the Purchase Contract Settlement Date.
“
Remarketing Treasury Portfolio ” means:
(i) U.S.
Treasury securities (or principal or interest strips thereof) that
mature on or prior to June 15, 2012 in an aggregate amount
equal to the principal amount of the Notes underlying the Corporate
Units;
(ii) if the
Reset Effective Date occurs on or prior to March 15, 2012,
(A) U.S. Treasury securities (or principal or interest strips
thereof) that mature on or prior to March 15, 2012 (in
connection with the scheduled Interest Payment Date that would have
occurred on March 15, 2012) and on or prior to June 15,
2012 (in connection with the scheduled Interest Payment Date that
would have occurred on June 15, 2012) in an aggregate amount
equal to the aggregate interest payment that would be due on
March 15, 2012 and June 15, 2012, respectively, on the
principal amount of the Notes that would have been components of
the Corporate Units assuming that (1) there was no Remarketing
and (2) the Coupon Rate on the Notes had not been reset to the
Reset Rate and (B) U.S. Treasury securities (or principal or
interest strips thereof) that mature on or prior to March 15,
2012 in an aggregate amount equal to any accrued and unpaid
Deferred Interest (including compounded interest thereon) on the
principal amount of the Notes that would have been components of
the Corporate Units assuming that (1) there was no Remarketing
and (2) the Coupon Rate on the Notes had not been
18
reset to the
Reset Rate accruing from the beginning of the Deferral Period to,
but excluding, March 15, 2012; and
(iii) if the
Reset Effective Date occurs after March 15, 2012,
(i) U.S. Treasury securities (or principal or interest strips
thereof) that mature on or prior to June 15, 2012 in an
aggregate amount equal to the aggregate interest payment that would
be due on June 15, 2012 on the principal amount of the Notes
that would have been components of the Corporate Units assuming
(1) there was no Remarketing and (2) the Coupon Rate on
the Notes had not been reset to the Reset Rate and (ii) U.S.
Treasury securities (or principal or interest strips thereof) that
mature on or prior to June 15, 2012 in an aggregate amount equal to
any accrued and unpaid Deferred Interest (including compounded
interest thereon) on the principal amount of the Notes that would
have been components of the Corporate Units assuming that
(1) there was no Remarketing and (2) the Coupon Rate on
the Notes had not been reset to the Reset Rate accruing from the
beginning of the Deferral Period to, but excluding, June 15,
2012.
Notwithstanding
the foregoing, if on the date the Quotation Agent is to determine
the Remarketing Treasury Portfolio Purchase Price, U.S. Treasury
securities (or principal or interest strips thereof) that are to be
included in a Remarketing Treasury Portfolio have a yield that is
less than zero, then “ Remarketing Treasury Portfolio
” shall mean:
(i) Cash in
an aggregate amount equal to the principal amount of the Notes
underlying the Corporate Units;
(ii) if the
Reset Effective Date occurs on or prior to March 15, 2012,
(A) Cash in an aggregate amount equal to the aggregate
interest payments that would be due on March 15, 2012 and
June 15, 2012, respectively, on the principal amount of the
Notes that would have been components of the Corporate Units
(assuming that (1) there was no Remarketing and (2) the
Coupon Rate on the Notes had not been reset to the Reset Rate) and
(B) Cash in an aggregate amount equal to any accrued and
unpaid Deferred Interest (including compounded interest thereon) on
the principal amount of the Notes that would have been components
of the Corporate Units (assuming that (1) there was no
Remarketing and (2) the Coupon Rate on the Notes had not been
reset to the Reset Rate) accruing from the beginning of the
Deferral Period to, but excluding, March 15, 2012;
and
(iii) if the
Reset Effective Date occurs after March 15, 2012,
(A) Cash in an aggregate amount equal to the aggregate
interest payment that would be due on June 15, 2012 on the
principal amount of the Notes that would have been components of
the Corporate Units (assuming (1) there was no Remarketing and
(2) the Coupon Rate on the Notes had not been reset to the
Reset Rate) and (B) Cash in an aggregate amount equal to any
accrued and unpaid Deferred Interest (including compounded interest
thereon) on the principal amount of the Notes that would have been
components of the Corporate Units (assuming that (1) there was
no Remarketing and (2) the Coupon Rate on the Notes had not
been reset to the
19
Reset Rate)
accruing from the beginning of the Deferral Period to, but
excluding, June 15, 2012.
“
Remarketing Treasury Portfolio Purchase Price ” means
the lowest aggregate price quoted by a primary U.S. government
securities dealer in New York City to the Quotation Agent on the
third Business Day immediately preceding the Reset Effective Date
for the purchase of the Remarketing Treasury Portfolio for
settlement on the Reset Effective Date; provided that if the
Remarketing Treasury Portfolio is comprised solely of cash
described in the second paragraph of the definition thereof, the
“ Remarketing Treasury Portfolio Purchase Price
” will be the aggregate amount of Cash comprising the
Remarketing Treasury Portfolio.
“
Reorganization Event ” means:
(i) any
consolidation or merger of the Company with or into another Person
or of another Person with or into the Company;
(ii) any
reclassification of the Common Stock (other than a subdivision or
combination thereof);
(iii) any
sale, transfer, lease or conveyance to another Person of the
property of the Company as an entirety or substantially as an
entirety;
(iv) any
statutory share exchange of the Company with another Person (other
than in connection with a merger or acquisition); or
(v) any
liquidation, dissolution or termination of the Company (other than
as a result of or after the occurrence of a Termination
Event);
in each case, that
cause the Common Stock to be converted into the right to receive
other securities cash or property.
“ Reset
Effective Date ” has the meaning set forth in
Section 5.03(c)(ii).
“ Reset
Rate ” means, in connection with each Remarketing, the
rate per annum rounded to the nearest one-thousandth (0.001) of one
percent that the Notes shall bear as determined by the Remarketing
Agent(s) in consultation with the Company pursuant to the
Remarketing Agreement. For the avoidance of doubt, the Reset Rate
shall be a fixed rate and may not be a floating rate.
“
Responsible Officer ” means, when used with respect to
the Purchase Contract Agent, any officer of the Purchase Contract
Agent assigned to the Corporate Trust Administration unit (or any
successor unit, department or division of the Purchase Contract
Agent) of the Purchase Contract Agent located at the Corporate
Trust Office of the Purchase Contract Agent who has direct
responsibility for the administration of the Agreement and, for the
purposes of Section 7.01(b)(ii), also means, with respect to a
particular corporate trust matter,
20
any other
officer, trust officer or person performing similar functions to
whom such matter is referred because of his or her knowledge of and
familiarity of the particular subject.
“
Restricted Period ” means the period commencing on,
and including, the Business Day preceding any Early Remarketing
Period and ending on, and including, the later of the Reset
Effective Date and the Business Day following the last Early
Remarketing Date during that Early Remarketing Period.
“
Rights ” has the meaning set forth in
Section 5.05(a)(ix).
“
Securities Act ” means the Securities Act of 1933 and
any statute successor thereto, in each case as amended from time to
time, and the rules and regulations promulgated
thereunder.
“
Securities Intermediary ” means the Person named as
Securities Intermediary in the first paragraph of this Agreement,
acting in its capacity as such hereunder, until a successor
Securities Intermediary shall have become such pursuant to the
applicable provisions of this Agreement, and thereafter “
Securities Intermediary ” shall mean such successor or
any subsequent successor.
“
Security Register ” and “ Securities
Registrar ” have the respective meanings set forth in
Section 3.05.
“ Senior
Indebtedness ” has the meaning set forth
Section 1.03 of the Base Indenture.
“
Separate Notes ” means Notes that have been released
from the Pledge pursuant to the terms hereof and therefore no
longer underlie Corporate Units.
“
Separate Notes Purchase Price ” means, for any Early
Remarketing, the amount in cash equal to the product of the
Remarketing Per Note Price, multiplied by the number of $1,000
principal amount of Separate Notes remarketed in such Early
Remarketing.
“
Settlement Date ” means, as applicable, the Purchase
Contract Settlement Date, the Early Settlement Date or the
Fundamental Change Early Settlement Date.
“
Settlement Rate ” has the meaning set forth in
Section 5.01(a).
“ Special
Event ” has the meaning set forth in the Supplemental
Indenture.
“ Special
Event Redemption ” means the redemption of the Notes
pursuant to the Indenture following the occurrence of a Special
Event.
21
“ Special
Event Redemption Date ” means the date upon which a
Special Event Redemption is scheduled to occur pursuant to the
Indenture.
“ Special
Event Treasury Portfolio ” means a portfolio of U.S.
Treasury securities (or principal or interest strips thereof) that
mature (i) on or prior to June 15, 2012 in an aggregate
amount at maturity equal to the Applicable Principal Amount of
Notes included in the Corporate Units and (ii) with respect to each
scheduled Interest Payment Date on the Notes that occurs after the
Special Event Redemption Date to, and including, the Purchase
Contract Settlement Date, on or prior to each such scheduled
Interest Payment Date in an aggregate amount at maturity equal to
the aggregate interest payment (assuming the Coupon Rate on the
Notes had not been reset to the Reset Rate) that would be due on
the Applicable Principal Amount of Notes on such date.
Notwithstanding
the foregoing, if on the date the Quotation Agent is to determine
the Special Event Treasury Portfolio Purchase Price, U.S. Treasury
securities (or principal or interest strips thereof) that are to be
included in a Special Event Treasury Portfolio have a yield that is
less than zero, then “ Special Event Treasury
Portfolio ” shall mean:
(i) Cash in
an aggregate amount at maturity equal to the Applicable Principal
Amount of Notes included in the Corporate Units; and
(ii) with
respect to each scheduled Interest Payment Date on the Notes that
occurs after the Special Event Redemption Date to, and including
the Purchase Contract Settlement Date, Cash in an aggregate amount
at maturity equal to the aggregate interest payment (assuming that
(1) there was no Remarketing and (2) the Coupon Rate on
the Notes had not been reset to the Reset Rate) that would be due
on the Applicable Principal Amount of Notes included in the
Corporate Units on such date.
“ Special
Event Treasury Portfolio Purchase Price ” means the
lowest aggregate ask-side price quoted by a primary U.S. government
securities dealer to the Quotation Agent on the third Business Day
immediately preceding the Special Event Redemption Date for the
purchase of the Special Event Treasury Portfolio for settlement on
the Special Event Redemption Date; provided that if the
Special Treasury Portfolio is comprised solely of cash described in
the second paragraph of the definition thereof, the “
Special Event Portfolio Purchase Price ” will be the
aggregate amount of Cash comprising the Special Event Treasury
Portfolio..
“
Spin-Off ” means payment of a dividend or distribution
on the Common Stock of shares of capital stock of any class or
series, or similar equity interests, of or relating to a subsidiary
or other business unit of the Company that are, or when issued will
be, traded on a U.S. securities exchange.
“ Stated
Amount ” means $50.
22
“ Stock
Price ” has the meaning set forth in
Section 5.05(b)(iii).
“
Successful Early Remarketing ” has the meaning set
forth in Section 5.02(a)(i).
“
Successful Final Remarketing ” has the meaning set
forth in Section 5.03(b)(ii).
“
Successful Remarketing ” means, as applicable, a
Successful Early Remarketing or a Successful Final
Remarketing.
“
Supplemental Indenture ” means the Supplemental
Indenture dated as of the date hereof between the Company and the
Indenture Trustee pursuant to which the Notes are
issued.
“
Termination Date ” means the date, if any, on which a
Termination Event occurs.
“
Termination Event ” means the occurrence of any of the
following events:
(i) at any
time on or prior to the Purchase Contract Settlement Date, a decree
or order by a court having jurisdiction in the premises shall have
been entered adjudging the Company a bankrupt or insolvent, or
approving as properly filed a petition seeking reorganization of
the Company under the Bankruptcy Code or any other similar
applicable Federal or state law and if such judgment, decree or
order shall have been entered more than 60 days prior to the
Purchase Contract Settlement Date, such decree or order shall have
continued undischarged and unstayed for a period of
60 days;
(ii) at any
time on or prior to the Purchase Contract Settlement Date, a decree
or order of a court having jurisdiction in the premises for the
appointment of a receiver or liquidator or trustee or assignee (or
other similar official) in bankruptcy or insolvency of the Company
or of all or substantially all of its property, or for the winding
up or liquidation of its affairs, shall have been entered and if
such decree or order shall have been entered more than 60 days
prior to the Purchase Contract Settlement Date, such judgment,
decree or order shall have continued undischarged and unstayed for
a period of 60 days; or
(iii) at any
time on or prior to the Purchase Contract Settlement Date, the
Company shall institute proceedings to be adjudicated a voluntary
bankrupt, or shall consent to the filing of a bankruptcy proceeding
against it, or shall file a petition or answer or consent seeking
reorganization under the Bankruptcy Code or any other similar
applicable Federal or state law, or shall consent to the filing of
any such petition, or shall consent to the appointment of a
receiver or liquidator or trustee or assignee (or other similar
official) in bankruptcy or insolvency of it
23
or of its
property, or shall make an assignment for the benefit of creditors,
or shall admit in writing its inability to pay its debts generally
as they become due.
For the avoidance
of doubt, a “ Termination Event ” shall not
include any event described in clauses (i) — (iii) above
with respect to any subsidiary of the Company.
“
Threshold Appreciation Price ” has the meaning set
forth in Section 5.01(a)(i).
“ TIA
” means the Trust Indenture Act of 1939, as amended from time
to time, or any successor legislation.
“
TRADES ” means the Treasury/Reserve Automated Debt
Entry System maintained by the Federal Reserve Bank of New York
pursuant to the TRADES Regulations.
“ TRADES
Regulations ” means the regulations of the United States
Department of the Treasury, published at 31 C.F.R. Part 357,
as amended from time to time. Unless otherwise defined herein, all
terms defined in the TRADES Regulations are used herein as therein
defined.
“ Trading
Day ” has the meaning set forth in
Section 5.01(a).
“
Transfer ” means (i) in the case of certificated
securities in registered form, delivery as provided in
Section 8-301(a) of the UCC, indorsed to the transferee or in
blank by an effective endorsement; (ii) in the case of
Treasury Securities, registration of the transferee as the owner of
such Treasury Securities on TRADES; and (iii) in the case of
security entitlements, including, without limitation, security
entitlements with respect to Treasury Securities, a securities
intermediary indicating by book entry that such security
entitlement has been credited to the transferee’s securities
account.
“
Treasury Portfolio ” means, as applicable, the
Remarketing Treasury Portfolio or the Special Event Treasury
Portfolio.
“
Treasury Portfolio Purchase Price ” means, as
applicable, the Remarketing Treasury Portfolio Purchase Price or
the Special Event Treasury Portfolio Purchase Price.
“
Treasury Securities ” means, subject to
Section 3.13(e), (a) prior to May 31, 2012,
zero-coupon U.S. treasury securities that mature on May 31,
2012 (CUSIP No. 912820PR2), (b) on or after May 31,
2012, the following Treasury securities identified by the Company
and specified in an Officers’ Certificate delivered to the
Purchase Contract Agent and the Collateral Agent (i) the U.S.
Treasury bill (or principal or interest strips thereof) that
matures at least one but not more than six Business Days prior to
the Purchase Contract Settlement Date;
24
or (ii) if
no such U.S. Treasury bill (or principal or interest strips
thereof) exists, any other U.S. Treasury security (or principal or
interest strips thereof) that is outstanding, is highly liquid and
matures at least one Business Day prior to the Purchase Contract
Settlement Date; provided that any U.S. Treasury security
identified pursuant to this clause (b)(ii) will be selected in a
manner intended to minimize the cash value of the security
selected.
Notwithstanding
the foregoing, if Treasury Securities that are selected in
accordance with the preceding paragraph and Section 3.13(e)
have a yield that is less than zero, then “ Treasury
Securities ” shall mean Cash.
“
Treasury Unit ” means, following the substitution of
Treasury Securities for Pledged Applicable Ownership Interests in
Notes or Pledged Applicable Ownership Interests in the Treasury
Portfolio, as the case may be, as collateral to secure a
Holder’s obligations under the Purchase Contract, the
collective rights and obligations of a Holder of a Treasury Units
Certificate in respect of such Treasury Securities, subject to the
Pledge thereof, and the related Purchase Contract.
“
Treasury Units Certificate ” means a certificate
evidencing the rights and obligations of a Holder in respect of the
number of Treasury Units specified on such certificate.
“ UCC
” means the Uniform Commercial Code as in effect in the State
of New York from time to time.
“
Unit ” means a Corporate Unit or a Treasury Unit, as
the case may be.
“
Valuation Period ” has the meaning set forth in
Section 5.05(a)(iii)(2).
“
Value ” means, with respect to any item of Collateral
on any date, as to (1) Cash, the amount thereof,
(2) Treasury Securities, the aggregate principal amount
thereof at maturity, (3) Applicable Ownership Interests in the
Treasury Portfolio (as specified in clause (i) of each first
paragraph of the definition of each of Applicable Ownership
Interest in the Remarketing Treasury Portfolio and Applicable
Ownership Interest in the Special Event Treasury Portfolio), the
appropriate aggregate percentage of the aggregate principal amount
at maturity of the Treasury Portfolio and (4) Applicable
Ownership Interests in Notes, the appropriate aggregate principal
amount of the underlying Notes.
“ Vice
President ” means any vice president, whether or not
designated by a number or a word or words added before or after the
title “ vice president. ”
Section 1.02
. Compliance Certificates and Opinions. Except as otherwise
expressly provided by this Agreement, upon any application or
request by the Company to the Purchase Contract Agent to take any
action in accordance with any provision of this Agreement, the
Company shall furnish to the Purchase
25
Contract Agent
an Officers’ Certificate stating that all conditions
precedent, if any, provided for in this Agreement relating to the
proposed action have been complied with and an Opinion of Counsel
stating that, in the opinion of such counsel, all such conditions
precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of
such documents is specifically required by any provision of this
Agreement relating to such particular application or request, no
additional certificate or opinion need be furnished.
Every certificate
or opinion with respect to compliance with a condition or covenant
provided for in this Agreement (other than the Officers’
Certificate provided for in Section 10.05) shall
include:
(i) a statement
that each individual signing such certificate or opinion has read
such condition or covenant and the definitions herein relating
thereto;
(ii) a brief
statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in
such certificate or opinion are based;
(iii) a statement
that, in the opinion of each such individual, he or she has made
such examination or investigation as is necessary to enable such
individual to express an informed opinion as to whether or not such
condition or covenant has been complied with; and
(iv) a statement
as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.
Section 1.03
. Form of Documents Delivered to Purchase Contract Agent. In
any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary
that all such matters be certified by, or covered by the opinion
of, only one such Person, or that they be so certified or covered
by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or
give an opinion as to such matters in one or several documents. Any
certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or
opinion of, or representations by, counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the
matters upon which its certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based,
insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the
Company unless such counsel knows, or in the exercise of reasonable
care should know, that the certificate or opinion or
representations with respect to such matters are
erroneous.
26
Where any Person
is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be
consolidated and form one instrument.
Section 1.04
. Acts of Holders; Record Dates. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other
action provided by this Agreement to be given or taken by Holders
may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by
an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Purchase Contract
Agent and, where it is hereby expressly required, to the Company.
Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “
Act ” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any
purpose of this Agreement and (subject to Section 7.01)
conclusive in favor of the Purchase Contract Agent and the Company,
if made in the manner provided in this Section.
(b) The fact
and date of the execution by any Person of any such instrument or
writing may be proved in any manner that the Purchase Contract
Agent deems sufficient.
(c) The
ownership of Units shall be proved by the Security
Register.
(d) Any
request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Unit shall bind every future
Holder of the same Unit and the Holder of every Certificate
evidencing such Unit issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Purchase
Contract Agent or the Company in reliance thereon, whether or not
notation of such action is made upon such Certificate.
(e) The
Company may set any date as a record date for the purpose of
determining the Holders of Outstanding Units entitled to give, make
or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this
Agreement to be given, made or taken by Holders. If any record date
is set pursuant to this paragraph, the Holders of the Outstanding
Corporate Units and the Outstanding Treasury Units, as the case may
be, on such record date, and no other Holders, shall be entitled to
take the relevant action with respect to the Corporate Units or the
Treasury Units, as the case may be, whether or not such Holders
remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken prior to or on the
applicable Expiration Date by Holders of the requisite number of
Outstanding Units on such record date. Nothing contained in this
paragraph shall be construed to prevent the Company from setting a
new record date for any action for which a record date
27
has previously
been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person
be cancelled and be of no effect), and nothing contained in this
paragraph shall be construed to render ineffective any action taken
by Holders of the requisite number of Outstanding Units on the date
such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall
cause notice of such record date, the proposed action by Holders
and the applicable Expiration Date to be given to the Purchase
Contract Agent in writing and to each Holder in the manner set
forth in Section 1.06.
With respect to
any record date set pursuant to this Section 1.04(e), the
Company may designate any date as the “ Expiration
Date ” and from time to time may change the Expiration
Date to any later day; provided that no such change shall be
effective unless notice of the proposed new Expiration Date is
given to the Purchase Contract Agent in writing, and to each Holder
in the manner set forth in Section 1.06, prior to or on the
existing Expiration Date. If an Expiration Date is not designated
with respect to any record date set pursuant to this Section, the
Company shall be deemed to have initially designated the 180th day
after such record date as the Expiration Date with respect thereto,
subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing,
no Expiration Date shall be later than the 180th day after the
applicable record date.
Section 1.05
. Notices. All notices, requests, consents and other
communications provided for herein (including, without limitation,
any modifications of, or waivers or consents under, this Agreement)
shall be given or made in writing (including, without limitation,
by telecopy, if promptly confirmed by telephone) mailed or
delivered to the intended recipient at the “ Address for
Notices ” specified below its name on the signature pages
hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except
as otherwise provided in this Agreement, all such communications
shall be deemed to have been duly given when transmitted by
telecopier or personally delivered or, in the case of a mailed
notice, upon receipt, in each case given or addressed as
aforesaid.
The Purchase
Contract Agent (if other than the Indenture Trustee) shall send to
the Indenture Trustee at the following address a copy of any
notices in the form of Exhibits C, D, E, F, H, J, M or O it sends
or receives:
The Bank of New
York Mellon Trust Company, N.A.
2 North LaSalle Street,
Suite 1020
Chicago, IL 60602
Tel: (312) 827-8500
Fax: (312) 827-8542
Attention: Global Corporate Trust
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Section 1.06
. Notice to Holders; Waiver. Where this Agreement provides
for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if
in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at its address as it appears in the
Security Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice.
In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed
to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Agreement provides
for notice in any manner, such notice may be waived in writing by
the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Purchase
Contract Agent, but such filing shall not be a condition precedent
to the validity of any action taken in reliance upon such
waiver.
In case by reason
of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice by mail, then
such notification as shall be made with the approval of the
Purchase Contract Agent shall constitute a sufficient notification
for every purpose hereunder.
Section 1.07
. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction
hereof.
Section 1.08
. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the respective successors and
assigns of the Company, the Purchase Contract Agent, the Collateral
Agent, the Custodial Agent and the Securities Intermediary, and the
Holders from time to time of the Units, by their acceptance of the
same, shall be deemed to have agreed to be bound by the provisions
hereof and to have ratified the agreements of, and the grant of the
Pledge hereunder by, the Purchase Contract Agent.
Section 1.09
. Separability Clause. In case any provision in this
Agreement or in the Units shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the
remaining provisions hereof and thereof shall not in any way be
affected or impaired thereby.
Section 1.10
. Benefits of Agreement. Nothing contained in this Agreement
or in the Units, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and,
to the extent provided hereby, the Holders, any benefits or any
legal or equitable right, remedy or claim under this Agreement. The
Holders from time to time shall be beneficiaries of this Agreement
and shall be bound by all of the terms and conditions hereof and of
the Units evidenced by their Certificates by their acceptance of
delivery of such Certificates.
29
Section 1.11
. Governing Law; Waiver of Jury Trial. THIS AGREEMENT, THE
UNITS AND THE PURCHASE CONTRACTS SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND PERFORMED WHOLLY WITHIN SUCH
STATE. The Company, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Holders from time to time of the
Units, acting through the Purchase Contract Agent as their
attorney-in-fact, hereby submit to the nonexclusive jurisdiction of
the United States District Court for the Southern District of New
York and of any New York state court sitting in New York City for
the purposes of all legal proceedings arising out of or relating to
this Agreement or the transactions contemplated hereby. The
Company, the Collateral Agent, the Custodial Agent, the Securities
Intermediary and the Holders from time to time of the Units, acting
through the Purchase Contract Agent as their attorney-in-fact,
irrevocably waive, to the fullest extent permitted by applicable
law, any objection which they may now or hereafter have to the
laying of the venue of any such proceeding brought in such a court
and any claim that any such proceeding brought in such a court has
been brought in an inconvenient forum. Each of the Company, the
Purchase Contract Agent, the Holders from time to time of the
Units, the Collateral Agent, the Custodial Agent and the Securities
Intermediary irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.
Section 1.12
. Legal Holidays. In any case where any Contract Adjustment
Payment Date shall not be a Business Day (notwithstanding any other
provision of this Agreement or the Units), Contract Adjustment
Payments, deferred Contract Adjustment Payments (including
Compounded Contract Adjustment Payments thereon), and other
distributions shall not be paid on such date, but Contract
Adjustment Payments, deferred Contract Adjustment Payments
(including Compounded Contract Adjustment Payments thereon), and
other distributions shall be paid on the next succeeding Business
Day; provided that if such payment on the next succeeding
Business Day would cause the Contract Adjustment Payment Date to
occur in the next calendar year, then such payment will be made on
the immediately preceding Business Day, in each case with the same
force and effect as if made on the scheduled Contract Adjustment
Payment Date; provided, further that no interest shall
accrue or be payable by the Company or to any Holder in respect of
such delay.
In any case where
the Purchase Contract Settlement Date or any Early Settlement Date
or Fundamental Change Early Settlement Date shall not be a Business
Day (notwithstanding any other provision of this Agreement or the
Units), Purchase Contracts shall not be performed and Early
Settlement and Fundamental Change Early Settlement shall not be
effected on such date, but Purchase Contracts shall be performed or
Early Settlement or Fundamental Change Early Settlement shall be
effected, as applicable, on the next succeeding
30
Business Day
with the same force and effect as if made on such Purchase Contract
Settlement Date, Early Settlement Date or Fundamental Change Early
Settlement Date, as applicable.
Section 1.13
. Counterparts. This Agreement may be executed in any number
of counterparts by the parties hereto, each of which, when so
executed and delivered, shall be deemed an original, but all such
counterparts shall together constitute one and the same
instrument.
Section 1.14
. Inspection of Agreement. A copy of this Agreement shall be
available at all reasonable times during normal business hours at
the Corporate Trust Office for inspection by any Holder or
Beneficial Owner.
Section 1.15
. Appointment of Financial Institution as Agent for the
Company. The Company may appoint a financial institution (which
may be the Collateral Agent) to act as its agent in performing its
obligations and in accepting and enforcing performance of the
obligations of the Purchase Contract Agent and the Holders, under
this Agreement and the Purchase Contracts, by giving notice of such
appointment in the manner provided in Section 1.05 hereof. Any
such appointment shall not relieve the Company in any way from its
obligations hereunder.
Section 1.16
. No Waiver. No failure on the part of the Company, the
Purchase Contract Agent, the Collateral Agent, the Custodial Agent,
the Securities Intermediary or any of their respective agents to
exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise by the
Company, the Purchase Contract Agent, the Collateral Agent, the
Custodial Agent, the Securities Intermediary or any of their
respective agents of any right, power or remedy hereunder preclude
any other or further exercise thereof or the exercise of any other
right, power or remedy. The remedies herein are cumulative and are
not exclusive of any remedies provided by law.
ARTICLE 2
Certificate
Forms
Section 2.01
. Forms of Certificates Generally. The Certificates
(including the form of Purchase Contract forming part of each Unit
evidenced thereby) shall be in substantially the form set forth in
Exhibit A hereto (in the case of Corporate Units Certificates)
or Exhibit B hereto (in the case of Treasury Units
Certificates), with such letters, numbers or other marks of
identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as may be required by the
rules of any securities exchange on which the Units are listed or
any depositary therefor, or as may, consistently herewith, be
determined by the officers of the Company executing such
Certificates, as evidenced by their execution of the
Certificates.
31
The definitive
Certificates shall be produced in any manner as determined by the
officers of the Company executing the Units evidenced by such
Certificates, consistent with the provisions of this Agreement, as
evidenced by their execution thereof.
Every Global
Certificate authenticated, executed on behalf of the Holders and
delivered hereunder shall bear a legend substantially in the form
set forth in Exhibit A and Exhibit B for a Global
Certificate.
Section 2.02
. Form of Purchase Contract Agent’s Certificate of
Authentication. The form of the Purchase Contract Agent’s
certificate of authentication of the Units shall be in
substantially the form set forth on the form of the applicable
Certificates.
Section 3.01
. Amount; Form and Denominations. The aggregate number of
Units evidenced by Certificates authenticated, executed on behalf
of the Holders and delivered hereunder is limited to 5,750,000
Units, except for Certificates authenticated, executed and
delivered upon registration of transfer of, in exchange for, or in
lieu of, other Certificates pursuant to Section 3.04, Section
3.05, Section 3.10, Section 3.13, Section 3.14 or
Section 8.05.
The Certificates
shall be issuable only in registered form and only in denominations
of a single Corporate Unit or Treasury Unit and any integral
multiple thereof.
Section 3.02
. Rights and Obligations Evidenced by the Certificates. Each
Corporate Units Certificate shall evidence the number of Corporate
Units specified therein, with each such Corporate Unit representing
(1) the ownership by the Holder thereof of an Applicable
Ownership Interest in Notes or an Applicable Ownership Interest in
the Treasury Portfolio, as the case may be, subject to the Pledge
of such Applicable Ownership Interest in Notes or Applicable
Ownership Interest in the Treasury Portfolio (as specified in
clause (i) of each paragraph of the definitions of Applicable
Ownership Interest in the Remarketing Treasury Portfolio or the
Applicable Ownership Interest in the Special Event Treasury
Portfolio, as the case may be), as the case may be, by such Holder
pursuant to this Agreement, and (2) the rights and obligations
of the Holder thereof and the Company under one Purchase Contract.
The Purchase Contract Agent is hereby authorized, as
attorney-in-fact for, and on behalf of, the Holder of each
Corporate Unit, to pledge, pursuant to Article 11 hereof, the
Applicable Ownership Interest in Notes, or the Applicable Ownership
Interest in the Treasury Portfolio (as specified in clause
(i) of each paragraph of the definitions of Applicable
Ownership Interest in the Remarketing Treasury Portfolio or the
Applicable Ownership Interest in the Special Event
Treasury
32
Portfolio, as
the case may be) forming a part of such Corporate Unit, to the
Collateral Agent for the benefit of the Company, and to grant to
the Collateral Agent, for the benefit of the Company, a security
interest in the right, title and interest of such Holder in such
Applicable Ownership Interest in Notes or Applicable Ownership
Interest in the Treasury Portfolio (as specified in clause
(i) of each paragraph of the definitions of Applicable
Ownership Interest in the Remarketing Treasury Portfolio or the
Applicable Ownership Interest in the Special Event Treasury
Portfolio, as the case may be) to secure the obligation of the
Holder under each Purchase Contract to purchase shares of Common
Stock. To effect such Pledge and grant such security interest, the
Purchase Contract Agent on behalf of the Holders of Corporate Units
has, on the date hereof, delivered to the Collateral Agent the
Notes underlying the Applicable Ownership Interests in
Notes.
Upon the formation
of a Treasury Unit pursuant to Section 3.13, each Treasury
Units Certificate shall evidence the number of Treasury Units
specified therein, with each such Treasury Unit representing
(1) the ownership by the Holder thereof of a 1/20, or 5.0%,
undivided beneficial interest in a Treasury Security with a
principal amount equal to $1,000, subject to the Pledge of such
interest by such Holder pursuant to this Agreement, and
(2) the rights and obligations of the Holder thereof and the
Company under one Purchase Contract. The Purchase Contract Agent is
hereby authorized, as attorney-in-fact for, and on behalf of, the
Holder of each Treasury Unit, to pledge, pursuant to
Article 11 hereof, such Holder’s interest in the
Treasury Security forming a part of such Treasury Unit to the
Collateral Agent, for the benefit of the Company, and to grant to
the Collateral Agent, for the benefit of the Company, a security
interest in the right, title and interest of such Holder in such
Treasury Security to secure the obligation of the Holder under each
Purchase Contract to purchase shares of Common Stock.
Prior to the
purchase of shares of Common Stock under each Purchase Contract,
such Purchase Contract shall not entitle the Holder of a Unit to
any of the rights of a holder of shares of Common Stock, including,
without limitation, the right to vote or receive any dividends or
other payments or to consent or to receive notice as a shareholder
in respect of the meetings of shareholders or for the election of
directors of the Company or for any other matter, or any other
rights whatsoever as a shareholder of the Company.
Section 3.03
. Execution, Authentication, Delivery and Dating. Subject to
the provisions of Section 3.13 and Section 3.14 hereof,
upon the execution and delivery of this Agreement, and at any time
and from time to time thereafter, the Company may deliver
Certificates executed by the Company to the Purchase Contract Agent
for authentication, execution on behalf of the Holders and
delivery, together with its Issuer Order for authentication of such
Certificates, and the Purchase Contract Agent in accordance with
such Issuer Order shall authenticate, execute on behalf of the
Holders and deliver such Certificates.
33
The Certificates
shall be executed on behalf of the Company by its Chairman of the
Board of Directors, a Vice Chairman, its Chief Executive Officer,
its Chief Financial Officer, its President, its Treasurer or a Vice
President. The signature of any of these officers on the
Certificates may be manual or facsimile.
Certificates
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 Certificates or did not hold such offices at the
date of such Certificates.
No Purchase
Contract evidenced by a Certificate shall be valid until such
Certificate has been executed on behalf of the Holder by the manual
or facsimile signature of an authorized signatory of the Purchase
Contract Agent, as such Holder’s attorney-in-fact. Such
signature by an authorized signatory of the Purchase Contract Agent
shall be conclusive evidence that the Holder of such Certificate
has entered into the Purchase Contracts evidenced by such
Certificate.
Each Certificate
shall be dated the date of its authentication.
No Certificate
shall be entitled to any benefit under this Agreement or be valid
or obligatory for any purpose unless there appears on such
Certificate a certificate of authentication substantially in the
form provided for herein executed by an authorized signatory of the
Purchase Contract Agent by manual signature, and such certificate
of authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been
duly authenticated and delivered hereunder.
Section 3.04
. Temporary Certificates. Pending the preparation of
definitive Certificates, the Company may execute and deliver to the
Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holders, and deliver, in
lieu of such definitive Certificates, temporary Certificates which
are in substantially the form set forth in Exhibit A or
Exhibit B hereto, as the case may be, with such letters,
numbers or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon
as may be required by the rules of any securities exchange on which
the Corporate Units or Treasury Units, as the case may be, are
listed, or as may, consistently herewith, be determined by the
officers of the Company executing such Certificates, as evidenced
by their execution of the Certificates.
If temporary
Certificates are issued, the Company will cause definitive
Certificates to be prepared without unreasonable delay. After the
preparation of definitive Certificates, the temporary Certificates
shall be exchangeable for definitive Certificates upon surrender of
the temporary Certificates at the Corporate Trust Office in The
City of New York, which is located at 101 Barclay Street, New York,
New York 10286, at the expense of the Company and
without
34
charge to the
Holder. Upon surrender for cancellation of any one or more
temporary Certificates, the Company shall execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver in
exchange therefor, one or more definitive Certificates of like
tenor and denominations and evidencing a like number of Units as
the temporary Certificate or Certificates so surrendered. Until so
exchanged, the temporary Certificates shall in all respects
evidence the same benefits and the same obligations with respect to
the Units evidenced thereby as definitive Certificates.
Section 3.05
. Registration; Registration of Transfer and Exchange. The
Purchase Contract Agent shall keep at the Corporate Trust Office in
The City of New York, which is located at 101 Barclay Street, New
York, New York 10286, a register (the “ Security
Register ”) in which, subject to such reasonable
regulations as it may prescribe, the Purchase Contract Agent shall
provide for the registration of Certificates and of transfers of
Certificates (the Purchase Contract Agent, in such capacity, the
“ Security Registrar ”). The Security Registrar
shall record separately the registration and transfer of the
Certificates evidencing Corporate Units and Treasury
Units.
Upon surrender for
registration of transfer of any Certificate at the Corporate Trust
Office in The City of New York, which is located at 101 Barclay
Street, New York, New York 10286, the Company shall execute and
deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the designated
transferee or transferees, and deliver, in the name of the
designated transferee or transferees, one or more new Certificates
of any authorized denominations, of like tenor, and evidencing a
like number of Corporate Units or Treasury Units, as the case may
be.
At the option of
the Holder, Certificates may be exchanged for other Certificates,
of any authorized denominations and evidencing a like number of
Corporate Units or Treasury Units, as the case may be, upon
surrender of the Certificates to be exchanged at the Corporate
Trust Office in The City of New York, which is located at 101
Barclay Street, New York, New York 10286. Whenever any Certificates
are so surrendered for exchange, the Company shall execute and
deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the Holder, and
deliver the Certificates which the Holder making the exchange is
entitled to receive.
All Certificates
issued upon any registration of transfer or exchange of a
Certificate shall evidence the ownership of the same number of
Corporate Units or Treasury Units, as the case may be, and be
entitled to the same benefits and subject to the same obligations
under this Agreement as the Corporate Units or Treasury Units, as
the case may be, evidenced by the Certificate surrendered upon such
registration of transfer or exchange.
35
Every Certificate
presented or surrendered for registration of transfer or exchange
shall (if so required by the Purchase Contract Agent) be duly
endorsed, or be accompanied by a written instrument of transfer in
form satisfactory to the Company and the Purchase Contract Agent
duly executed by the Holder thereof or its attorney duly authorized
in writing.
No service charge
shall be made for any registration of transfer or exchange of a
Certificate, but the Company and the Purchase Contract Agent may
require payment from the Holder of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Certificates,
other than any exchanges pursuant to Section 3.04,
Section 3.05(ii) and Section 8.05 not involving any
transfer.
Notwithstanding
the foregoing, the Company shall not be obligated to execute and
deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall not be obligated to authenticate, execute on behalf of
the Holder and deliver any Certificate in exchange for any other
Certificate presented or surrendered for registration of transfer
or for exchange on or after the Business Day immediately preceding
the earliest to occur of any Early Settlement Date with respect to
such Certificate, any Fundamental Change Early Settlement Date with
respect to such Certificate, the Purchase Contract Settlement Date
or the Termination Date. In lieu of delivery of a new Certificate,
upon satisfaction of the applicable conditions specified above in
this Section and receipt of appropriate registration or transfer
instructions from such Holder, the Purchase Contract Agent
shall:
(i) if the
Purchase Contract Settlement Date (including upon any Cash
Settlement) or an Early Settlement Date or a Fundamental Change
Early Settlement Date with respect to such other Certificate (or
portion thereof) has occurred, deliver the shares of Common Stock
issuable in respect of the Purchase Contracts forming a part of the
Units evidenced by such other Certificate (or portion thereof);
or
(ii) if a
Termination Event, Early Settlement, or Fundamental Change Early
Settlement shall have occurred prior to the Purchase Contract
Settlement Date, or a Cash Settlement shall have occurred, transfer
the Notes, the Treasury Securities, or the Applicable Ownership
Interests in the Treasury Portfolio, as the case may be, underlying
such Certificate, in each case subject to the applicable conditions
and in accordance with the applicable provisions of
Section 3.15 and Article 5 hereof.
Section 3.06
. Book-entry Interests. The Certificates will be issued in
the form of one or more fully registered Global Certificates, to be
delivered to the Depositary or its custodian by, or on behalf of,
the Company. The Company hereby designates DTC as the initial
Depositary. Such Global Certificates shall initially be registered
on the Security Register in the name of Cede & Co.,
the
36
nominee of the
Depositary, and no Beneficial Owner will receive a definitive
Certificate representing such Beneficial Owner’s interest in
such Global Certificate, except as provided in Section 3.09.
The Purchase Contract Agent shall enter into an agreement with the
Depositary if so requested by the Company. Following the issuance
of such Global Certificates and unless and until definitive, and
fully registered Certificates have been issued to Beneficial Owners
pursuant to Section 3.09:
(i) the
provisions of this Section 3.06 shall be in full force and
effect;
(ii) the
Company shall be entitled to deal with the Depositary for all
purposes of this Agreement (including, without limitation, making
Contract Adjustment Payments and receiving approvals, votes or
consents hereunder) as the Holder of the Units and the sole holder
of the Global Certificates and shall have no obligation to the
Beneficial Owners; provided that a Beneficial Owner may
directly enforce against the Company, without any consent, proxy,
waiver or involvement of the Depositary of any kind, such
Beneficial Owner’s right to receive a definitive Certificate
representing the Units beneficially owned by such Beneficial Owner,
as set forth in Section 3.09;
(iii) to the
extent that the provisions of this Section 3.06 conflict with
any other provisions of this Agreement, the provisions of this
Section 3.06 shall control; and
(iv) except
as set forth in the proviso of clause (ii) of this
Section 3.06, the rights of the Beneficial Owners shall be
exercised only through the Depositary and shall be limited to those
established by law and agreements between such Beneficial Owners
and the Depositary or the Depositary Participants. The Depositary
will make book-entry transfers among Depositary Participants and
receive and transmit Contract Adjustment Payments to such
Depositary Participants.
Transfers of
securities evidenced by Global Certificates shall be made through
the facilities of the Depositary, and any cancellation of, or
increase or decrease in the number of, such securities (including
the creation of Treasury Units and the recreation of Corporate
Units pursuant to Section 3.13 and Section 3.14 respectively)
shall be accomplished by making appropriate annotations on the
Schedule of Increases and Decreases set forth in such Global
Certificate.
Section 3.07
. Notices to Holders. Whenever a notice or other
communication to the Holders is required to be given under this
Agreement, the Company or the Company’s agent shall give such
notices and communications to the Holders and, with respect to any
Units registered in the name of the Depositary or the nominee of
the Depositary, the Company or the Company’s agent shall,
except as set forth herein, have no obligations to the Beneficial
Owners.
37
Section 3.08
. Appointment of Successor Depositary. If the Depositary
elects to discontinue its services as securities depositary with
respect to the Units, the Company may, in its sole discretion,
appoint a successor Depositary with respect to the
Units.
Section 3.09
. Definitive Certificates.
(i) the
Depositary notifies the Company that it is unwilling or unable to
continue its services as securities depositary with respect to the
Units and no successor Depositary has been appointed pursuant to
Section 3.08 within 90 days after such notice;
(ii) the
Depositary ceases to be a “ clearing agency ”
registered under Section 17A of the Exchange Act when the
Depositary is required to be so registered to act as the Depositary
and the Company receives notice of such cessation, and no successor
Depositary has been appointed pursuant to Section 3.08 within
90 days after the Company’s receipt of such notice;
or
(iii) at the
request of any Holder of Corporate Units if an event of default has
occurred and is continuing with respect to Notes underlying such
Corporate Units,
then
(x) definitive Certificates shall be prepared by the Company
with respect to such Units and delivered to the Purchase Contract
Agent and (y) upon surrender of the Global Certificates
representing the Units by the Depositary, accompanied by
registration instructions, the Company shall cause definitive
Certificates to be delivered to Beneficial Owners in accordance
with instructions provided by the Depositary. The Company and the
Purchase Contract Agent shall not be liable for any delay in
delivery of such instructions and may conclusively rely on and
shall be authorized and protected in relying on, such instructions.
Each definitive Certificate so delivered shall evidence Units of
the same kind and tenor as the Global Certificate so surrendered in
respect thereof.
Section 3.10
. Mutilated, Destroyed, Lost and Stolen Certificates. If any
mutilated Certificate is surrendered to the Purchase Contract
Agent, the Company shall execute and deliver to the Purchase
Contract Agent, and the Purchase Contract Agent shall authenticate,
execute on behalf of the Holder, and deliver in exchange therefor,
a new Certificate, evidencing the same number of Corporate Units or
Treasury Units, as the case may be, and bearing a Certificate
number not contemporaneously outstanding.
If there shall be
delivered to the Company and the Purchase Contract Agent
(i) evidence to their satisfaction of the destruction, loss or
theft of any Certificate, and (ii) such security or indemnity
as may be required by them to hold each of them and any agent of
any of them harmless, then, in the absence of
38
notice to the
Company or the Purchase Contract Agent that such Certificate has
been acquired by a protected purchaser, the Company shall execute
and deliver to the Purchase Contract Agent, and the Purchase
Contract Agent shall authenticate, execute on behalf of the Holder,
and deliver to the Holder, in lieu of any such destroyed, lost or
stolen Certificate, a new Certificate, evidencing the same number
of Corporate Units or Treasury Units, as the case may be, and
bearing a Certificate number not contemporaneously
outstanding.
Notwithstanding
the foregoing, the Company shall not be obligated to execute and
deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall not be obligated to authenticate, execute on behalf of
the Holder, and deliver to the Holder, with respect to such lost or
mutilated Certificate a new Certificate on or after the Business
Day immediately preceding the earliest of any Early Settlement
Date, any Fundamental Change Early Settlement Date, the Purchase
Contract Settlement Date or the Termination Date. In lieu of
delivery of a new Certificate, upon satisfaction of the applicable
conditions specified above in this Section and receipt of
appropriate registration or transfer instructions from such Holder,
the Purchase Contract Agent shall:
(i) if the
Purchase Contract Settlement Date (including upon any Cash
Settlement) or an Early Settlement Date or a Fundamental Change
Early Settlement Date with respect to such lost, stolen, destroyed
or mutilated Certificate has occurred, deliver the shares of Common
Stock issuable in respect of the Purchase Contracts forming a part
of the Units evidenced by such Certificate; and
(ii) if a
Termination Event, Fundamental Change Early Settlement or an Early
Settlement with respect to such lost or mutilated Certificate shall
have occurred prior to the Purchase Contract Settlement Date or a
Cash Settlement shall have occurred, transfer the Notes, the
Treasury Securities or the Applicable Ownership Interests in the
Treasury Portfolio, as the case may be, underlying such
Certificate, in each case subject to the applicable conditions and
in accordance with the applicable provisions of Section 3.15
and Article 5 hereof.
Upon the issuance
of any new Certificate under this Section, the Company and the
Purchase Contract Agent may require the payment by the Holder of a
sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other fees and expenses
(including, without limitation, the fees and expenses of the
Purchase Contract Agent) connected therewith.
Every new
Certificate issued pursuant to this Section in lieu of any
destroyed, lost or stolen Certificate shall constitute an original
additional contractual obligation of the Company and of the Holder
in respect of the Units evidenced thereby, whether or not the
destroyed, lost or stolen Certificate (and the Units evidenced
thereby) shall be at any time enforceable by anyone, and shall be
entitled to all the benefits and be subject to all the obligations
of this Agreement
39
equally and
proportionately with any and all other Certificates delivered
hereunder.
The provisions of
this Section are exclusive and shall preclude, to the extent
lawful, all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen
Certificates.
Section 3.11
. Persons Deemed Owners. Prior to due presentment of a
Certificate for registration of transfer, the Company and the
Purchase Contract Agent, and any agent of the Company or the
Purchase Contract Agent, may treat the Person in whose name such
Certificate is registered as the owner of the Units evidenced
thereby for purposes of (subject to any applicable record date) any
payment or distribution with respect to the Applicable Ownership
Interests in Notes, on the Applicable Ownership Interests in the
Treasury Portfolio (as specified in clause (ii) and (in the
case of Applicable Ownership Interests in the Remarketing Treasury
Portfolio) clause (iii) of each paragraph of the definitions
of each of Applicable Ownership Interests in the Remarketing
Treasury Portfolio and Applicable Ownership Interests in the
Special Event Treasury Portfolio, as the case may be) or payment of
Contract Adjustment Payments and performance of the Purchase
Contracts and for all other purposes whatsoever in connection with
such Units, whether or not such payment, distribution, or
performance shall be overdue and notwithstanding any notice to the
contrary, and neither the Company nor the Purchase Contract Agent,
nor any agent of the Company or the Purchase Contract Agent, shall
be affected by notice to the contrary.
None of the
Purchase Contract Agent or the Securities Registrar shall have any
responsibility or obligation to any Beneficial Owner in Units
represented by a Global Certificate 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
Units 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 Units. All notices and
communications to be given to the Holders and all payments to be
made to Holders pursuant to the Units and this Agreement 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 a
Global Certificate). The rights of Beneficial Owners in the Units
underlying a Global Certificate shall be exercised only through the
Depositary subject to its applicable procedures. The Purchase
Contract Agent and the Securities 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 Purchase Contract Agent
and the Securities Registrar shall be entitled to deal with the
Depositary, and any nominee thereof, that is the registered holder
of any Global Certificate for all purposes of this Agreement
relating to such Global Certificate (including the payment of
principal, premium, if any, and interest and the giving of
instructions or directions by or to the Beneficial Owner in any
Units underlying such Global Certificate) as the sole
40
Holder of such
Global Certificate and shall have no obligations to the Beneficial
Owners thereof. None of the Purchase Contract Agent or the
Securities Registrar shall have any responsibility or liability for
any acts or omissions of the Depositary with respect to any Units
underlying such Global Certificate, for the records of the
Depositary, including records in respect of beneficial ownership
interests in respect of Units underlying such Global Certificate,
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 Beneficial Owner in any Units underlying such Global
Certificate, or for any transfers of beneficial interests in any
Units underlying such Global Certificate.
Notwithstanding
the foregoing, with respect to any Global Certificate, nothing
contained herein shall prevent the Company, the Purchase Contract
Agent or any agent of the Company or the Purchase Contract Agent,
from giving effect to any written certification, proxy or other
authorization furnished by the Depositary (or its nominee), as a
Holder, with respect to such Global Certificate, or impair, as
between such Depositary and the related Beneficial Owner, the
operation of customary practices governing the exercise of rights
of the Depositary (or its nominee) as Holder of such Global
Certificate. None of the Company, the Purchase Contract Agent or
any agent of the Company or the Purchase Contract Agent will have
any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership
interests of a Global Certificate or maintaining, supervising or
reviewing any records relating to such beneficial ownership
interests.
Section 3.12
. Cancellation. All Certificates surrendered for delivery of
shares of Common Stock on or after the Purchase Contract Settlement
Date or in connection with an Early Settlement or a Fundamental
Change Early Settlement or for delivery of the Notes underlying the
Applicable Ownership Interests in Notes, the Applicable Ownership
Interests in the Treasury Portfolio or Treasury Securities, as the
case may be, after the occurrence of a Termination Event or
pursuant to a Cash Settlement, an Early Settlement or a Fundamental
Change Early Settlement, a Collateral Substitution, or upon the
registration of transfer or exchange of a Unit, shall, if
surrendered to any Person other than the Purchase Contract Agent,
be delivered to the Purchase Contract Agent along with appropriate
written instructions regarding the cancellation thereof and, if not
already cancelled, shall be promptly cancelled by it. The Company
may at any time deliver to the Purchase Contract Agent for
cancellation any Certificates previously authenticated, executed
and delivered hereunder that the Company may have acquired in any
manner whatsoever, and all Certificates so delivered shall, upon an
Issuer Order, be promptly cancelled by the Purchase Contract Agent.
No Certificates shall be authenticated, executed on behalf of the
Holder and delivered in lieu of or in exchange for any Certificates
cancelled as provided in this Section 3.12, except as
expressly permitted by this Agreement. All cancelled Certificates
held by the Purchase Contract Agent shall be disposed of in
accordance with its customary practices.
41
If the Company or
any Affiliate of the Company shall acquire any Certificate, such
acquisition shall not operate as a cancellation of such Certificate
unless and until such Certificate is delivered to the Purchase
Contract Agent cancelled or for cancellation.
Section 3.13
. Creation of Treasury Units by Substitution of Treasury
Securities. (a) Subject to the conditions set forth in
this Agreement, and subject to the limitations on a Collateral
Substitution in connection with an Early Remarketing as set forth
under Section 5.02 below, a Holder of Corporate Units may, at
any time from and after the date of this Agreement and prior to
4:00 p.m. (New York City time) on the seventh Business Day
immediately preceding the Purchase Contract Settlement Date (other
than during the Restricted Period), effect a Collateral
Substitution and separate the Notes underlying the Pledged
Applicable Ownership Interests in Notes in respect of such
Holder’s Corporate Units by substituting for such Pledged
Applicable Ownership Interests in Notes, Treasury Securities in an
aggregate principal amount at maturity equal to the aggregate
principal amount of the Notes underlying the Pledged Applicable
Ownership Interests in Notes; provided that Holders may make
Collateral Substitutions only in integral multiples of 20 Corporate
Units. To effect such substitution, the Holder must:
(1) Transfer
to the Collateral Agent, for credit to the Collateral Account,
Treasury Securities or security entitlements with respect thereto
having a Value equal to the aggregate principal amount of the Notes
underlying the Pledged Applicable Ownership Interests in Notes for
which such Collateral Substitution is made, which must be purchased
in the open market at such Holder’s expense unless otherwise
owned by such Holder; and
(2) Transfer
the related Corporate Units to the Purchase Contract Agent
accompanied by a notice to the Purchase Contract Agent,
substantially in the form of Exhibit C hereto, whereupon the
Purchase Contract Agent shall promptly provide an instruction to
such effect to the Collateral Agent, substantially in the form of
Exhibit F hereto.
Upon confirmation
that the Treasury Securities described in clause (1) above or
security entitlements with respect thereto have been credited to
the Collateral Account and receipt of the instruction to the
Collateral Agent described in clause (2) above, the Collateral
Agent shall release such Pledged Applicable Ownership Interests in
Notes from the Pledge and instruct the Securities Intermediary by a
notice, substantially in the form of Exhibit G hereto, to
Transfer the Notes underlying such Pledged Applicable Ownership
Interests in Notes to the Purchase Contract Agent for distribution
to such Holder, free and clear of the Pledge created
hereby.
Upon credit to the
Collateral Account of Treasury Securities or security entitlements
with respect thereto delivered by a Holder of Corporate Units and
receipt of the related instruction from the Collateral Agent, the
Securities
42
Intermediary
shall promptly Transfer the Notes underlying the appropriate
Pledged Applicable Ownership Interests in Notes to the Purchase
Contract Agent for distribution to such Holder, free and clear of
the Pledge created hereby.
Upon receipt of
the Notes underlying such Pledged Applicable Ownership Interests in
Notes, the Purchase Contract Agent shall promptly:
(i) cancel
the related Corporate Units;
(ii) Transfer
the Notes to the Holder; and
(iii) deliver
Treasury Units in book-entry form, or if applicable, authenticate,
execute on behalf of such Holder and deliver Treasury Units in the
form of a Treasury Units Certificate executed by the Company in
accordance with Section 3.03 evidencing the same number of
Purchase Contracts as were evidenced by the cancelled Corporate
Units.
Holders who elect
to separate the Notes by substituting Treasury Securities for
Applicable Ownership Interest in Notes shall be responsible for any
fees or expenses (including, without limitation, fees and expenses
payable to the Collateral Agent) in respect of the substitution,
and neither the Company nor the Purchase Contract Agent shall be
responsible for any such fees or expenses.
(b) In the
event a Holder making a Collateral Substitution pursuant to this
Section 3.13 fails to effect a book-entry transfer of the
Corporate Units or fails to deliver Corporate Units Certificates to
the Purchase Contract Agent after depositing Treasury Securities
with the Securities Intermediary, any distributions on the Notes
underlying the Applicable Ownership Interests in Notes, or with
respect to the Applicable Ownership Interests in the Treasury
Portfolio, in each case constituting a part of such Corporate
Units, shall be held in the name of the Purchase Contract Agent or
its nominee in trust for the benefit of such Holder, until such
Corporate Units are so transferred or the Corporate Units
Certificate is so delivered, as the case may be, or such Holder
provides evidence satisfactory to the Company and the Purchase
Contract Agent that such Corporate Units Certificate has been
destroyed, lost or stolen, together with any indemnity that may be
required by the Purchase Contract Agent and the Company.
(c) Except as
described in Section 5.03 or in this Section 3.13 or in
connection with a Cash Settlement, an Early Settlement, a
Fundamental Change Early Settlement or a Termination Event, for so
long as the Purchase Contract underlying a Corporate Unit remains
in effect, such Corporate Units shall not be separable into its
constituent parts, and the rights and obligations of the Holder in
respect of the Applicable Ownership Interests in Notes or
Applicable Ownership Interests in the Treasury Portfolio, as the
case may be, and the Purchase Contract comprising such Corporate
Units may be acquired, and may be transferred and exchanged, only
as a Corporate Unit.
43
(d) Notwithstanding
the foregoing, if a Treasury Portfolio has replaced the Notes that
are components of the Corporate Units, Holders of Corporate Units
will have the right, at any time on or prior to 4:00 p.m., New York
City time, on the second Business Day immediately preceding the
Purchase Contract Settlement Date, to substitute Treasury
Securities for the Applicable Ownership Interests in the Treasury
Portfolio that is a component of the Corporate Unit, but Holders of
Corporate Units can only make this substitution in integral
multiples of 800 Corporate Units (or such other number of Corporate
Units as may be determined by the Remarketing Agent(s) upon a
Successful Remarketing of Notes, which number shall be provided to
a Holder by the Company at the request of such Holder). In such
instance, the provisions of this Section 3.13 shall apply
mutatis mutandis; provided that references in this
Section 3.13 to “ Pledged Applicable Ownership
Interest in the Notes, ” “ Applicable Ownership
Interest in the Notes ” and “ Notes ”
shall be deemed references to “ Pledged Applicable
Ownership Interests in the Treasury Portfolio, ” “
Applicable Ownership Interests in the Treasury Portfolio
” and “ the applicable pro rata portion of the
Treasury Portfolio. ”
(e) Prior to
May 31, 2012, so long as no Treasury Units are currently
outstanding, with five Business Days prior written notice to all
Holders of the Corporate Units, the Company may specify, in lieu of
the zero-coupon Treasury securities maturing May 31, 2012
(CUSIP. No. 912820PR2), an alternative U.S. Treasury security
(or interest of principal strip thereof) as the “ Treasury
Securities ” (as such term is defined in
Section 1.01), in which event the references in clause (b) of
such definition to May 31, 2012, shall be deemed to be
references to the maturity date of such alternative U.S. Treasury
security.
To the extent a
Treasury Security matures more than six Business Days prior to the
Purchase Contract Settlement Date, the Collateral Agent will, no
later than one Business Day immediately following such date, apply
the principal amount paid at maturity of all such Treasury
Securities to purchase a like principal amount of Treasury
Securities, identified by the Company and specified in an
Officers’ Certificate delivered to the Purchase Contract
Agent and the Collateral Agent, maturing not more than six Business
Days nor less than one Business Day prior to Purchase Contract
Settlement Date. On the Purchase Contract Settlement Date, the
Collateral Agent will pay the excess, if any, of such principal
amount paid over the Purchase Price to the Holders of the relevant
Treasury Units on the Regular Record Date immediately preceding the
Purchase Contract Settlement Date pro rata in accordance with the
principal amount at maturity of Treasury Units held by such Holder
on such Regular Record Date.
Holders will be
able to obtain the issue date, the maturity date and, when
available, the CUSIP number of the U.S. Treasury securities that
constitute the Treasury Securities at any time by calling the
Company 1-800-245-5275. The Company shall, to the extent that
Treasury Securities previously identified are no longer expected to
be outstanding at any point prior to the Purchase Contract
Settlement Sate, identify another U.S. Treasury security (or
interest of principal
44
strip thereof)
meeting the foregoing criteria. The Treasury Securities most
recently identified by the Company with respect to the Purchase
Contract Settlement Date will be the “ Treasury
Securities ” with respect to the period from, and
including, its date of issuance to, but excluding, its date of
maturity, and the Company’s identification of a security as
the Treasury Securities for such period will be final and binding
for all purposes absent manifest error.
Section 3.14
. Recreation of Corporate Units. (a) Subject to the
conditions set forth in this Agreement, and subject to the
limitations on a Collateral Substitution in connection with an
Early Remarketing, as set forth in Section 5.02 below, a
Holder of Treasury Units may effect a Collateral Substitution and
recreate Corporate Units at any time from and after the date of
this Agreement and prior to 4:00 p.m. (New York City time) on the
seventh Business Day immediately preceding the Purchase Contract
Settlement Date (other than during the Restricted Period);
provided that Holders of Treasury Units may only recreate
Corporate Units in integral multiples of 20 Treasury Units. To
recreate Corporate Units, the Holder must:
(1) Transfer
to the Collateral Agent for credit to the Collateral Account Notes
or security entitlements with respect thereto having an aggregate
principal amount equal to the Value of the Pledged Treasury
Securities to be released, which must be purchased in the open
market at such Holder’s expense unless otherwise owned by
such Holder; and
(2) Transfer
the related Treasury Units to the Purchase Contract Agent
accompanied by a notice to the Purchase Contract Agent,
substantially in the form of Exhibit C hereto, whereupon the
Purchase Contract Agent shall promptly provide an instruction to
such effect to the Collateral Agent, substantially in the form of
Exhibit H hereto.
Upon confirmation
that the Notes described in clause (1) above or security
entitlements with respect thereto have been credited to the
Collateral Account and receipt of the instruction from the Purchase
Contract Agent described in clause (2) above, the Collateral
Agent shall promptly release such Pledged Treasury Securities from
the Pledge and shall promptly instruct the Securities Intermediary
by a notice, substantially in the form of Exhibit I hereto, to
Transfer such Pledged Treasury Securities to the Purchase Contract
Agent for distribution to such Holder, free and clear of the Pledge
created hereby.
The substituted
Notes will be pledged to the Company through the Collateral Agent
to secure such Holder’s obligation to purchase shares of
Common Stock under the related Purchase Contract.
Upon credit to the
Collateral Account of Notes or security entitlements with respect
thereto delivered by a Holder of Treasury Units and receipt of the
related instruction from the Collateral Agent, the Securities
Intermediary shall
45
promptly
Transfer the Pledged Treasury Securities to the Purchase Contract
Agent for distribution to such Holder, free and clear of the Pledge
created hereby.
Upon receipt of
such Treasury Securities, the Purchase Contract Agent shall
promptly:
(i) cancel
the related Treasury Units;
(ii) transfer
the Treasury Securities to the Holder; and
(iii) deliver
Corporate Units in book-entry form or, if applicable, authenticate,
execute on behalf of such Holder and deliver Corporate Units in the
form of a Corporate Units Certificate executed by the Company in
accordance with Section 3.03 evidencing the same number of
Purchase Contracts as were evidenced by the cancelled Treasury
Units.
Holders who elect
to recreate Corporate Units shall be responsible for any fees or
expenses (including, without limitation, fees and expenses payable
to the Collateral Agent), in respect of the recreation, and neither
the Company nor the Purchase Contract Agent shall be responsible
for any such fees or expenses.
(b) Except as
provided in Section 5.03 or in this Section 3.14 or in
connection with a Cash Settlement, an Early Settlement, a
Fundamental Change Early Settlement or a Termination Event, for so
long as the Purchase Contract underlying a Treasury Unit remains in
effect, such Treasury Unit shall not be separable into its
constituent parts and the rights and obligations of the Holder of
such Treasury Unit in respect of the interest in the Treasury
Security and the Purchase Contract comprising such Treasury Unit
may be acquired, and may be transferred and exchanged, only as a
Treasury Unit.
(c) Notwithstanding
the foregoing, if the Treasury Portfolio has replaced the Notes
underlying the Corporate Units, holders of Treasury Units will have
the right, at any time on or prior to the second Business Day
immediately preceding the Purchase Contract Settlement Date, to
substitute the Applicable Ownership Interests in the Treasury
Portfolio for the Treasury Securities that were a component of the
Treasury Units, but Holders of Treasury Units can only make this
substitution in integral multiples of 800 Treasury Units (or such
other number of Corporate Units as may be determined by the
Remarketing Agent(s) upon a Successful Remarketing of Notes, which
number shall be provided to a Holder by the Company at the request
of such Holder). In such instance, the provisions of this
Section 3.14 shall apply mutatis mutandis; provided
that references in this Section 3.13 to “ Notes
” shall be deemed references to “ the applicable pro
rata portion of the Treasury Portfolio. ”
Section 3.15
. Transfer of Collateral Upon Occurrence of Termination
Event. (a) Upon receipt by the Collateral Agent of written
notice pursuant to Section 5.07 hereof from the Company or the
Purchase Contract Agent that a
46
Termination
Event has occurred, the Collateral Agent shall promptly release all
Collateral from the Pledge and shall promptly instruct the
Securities Intermediary to Transfer:
(i) any Notes
underlying Pledged Applicable Ownership Interests in Notes or
security entitlements with respect thereto or Pledged Applicable
Ownership Interests in the Treasury Portfolio;
(ii) any Pledged
Treasury Securities;
(iii) any payments
made by Holders (or the Permitted Investments of such payments)
pursuant to Section 5.03 hereof; and
(iv) any Proceeds
and all other payments the Collateral Agent receives in respect of
the foregoing,
to the Purchase
Contract Agent for the benefit of the Holders for distribution to
such Holders, in accordance with their respective interests, free
and clear of the Pledge created hereby; provided, however ,
if any Holder or Beneficial Owner shall be entitled to receive
Notes in an aggregate principal amount of less than $1,000, or
greater than $1,000 but not in an integral multiple of $1,000, the
Purchase Contract Agent shall request, on behalf of such Holder or
Beneficial Owner, pursuant to the Indenture that the Company issue
Notes in denominations of $50, or integral multiples thereof, in
exchange for Notes in denominations of $1,000 or integral multiples
thereof; and provided further , if any Holder shall be
entitled to receive, with respect to its Pledged Applicable
Ownership Interests in the Treasury Portfolio or its Pledged
Treasury Securities, any securities having a principal amount at
maturity of less than $1,000, the Purchase Contract Agent shall
dispose of such Pledged Applicable Ownership Interests in the
Treasury Portfolio or Pledged Treasury Securities for cash and
deliver to such Holder cash in lieu of delivering the Pledged
Applicable Ownership Interests in the Treasury Portfolio or Pledged
Treasury Securities, as the case may be.
(b) Notwithstanding
anything to the contrary in clause (a) of this
Section 3.15, if such Termination Event shall result from the
Company’s becoming a debtor under the Bankruptcy Code, and if
the Collateral Agent shall for any reason fail promptly to
effectuate the release and Transfer of all Notes underlying Pledged
Applicable Ownership Interests in Notes, Pledged Applicable
Ownership Interests in the Treasury Portfolio, Pledged Treasury
Securities and payments by Holders (or the Permitted Investments of
such payments) pursuant to Section 5.03 and Proceeds and all
other payments received by the Collateral Agent in respect of the
foregoing, as the case may be, as provided by this
Section 3.15, the Purchase Contract Agent shall use its best
efforts to obtain an opinion of a nationally recognized law firm to
the effect that, notwithstanding the Company’s being the
debtor in such a bankruptcy case, the Collateral Agent will not be
prohibited from releasing or Transferring the Collateral as
provided in this Section 3.15, and shall deliver or cause to
be delivered such opinion to the
47
Collateral
Agent within ten days after the occurrence of such Termination
Event, and if (A) the Purchase Contract Agent shall be unable
to obtain such opinion within ten days after the occurrence of such
Termination Event or (B) the Collateral Agent shall continue,
after delivery of such opinion, to refuse to effectuate the release
and Transfer of all Notes underlying Pledged Applicable Ownership
Interests in Notes, Pledged Applicable Ownership Interests in the
Treasury Portfolio, Pledged Treasury Securities and the payments by
Holders (or the Permitted Investments of such payments) pursuant to
Section 5.03 hereof and Proceeds and all other payments
received by the Collateral Agent in respect of the foregoing, as
the case may be, as provided in this Section 3.15, then the
Purchase Contract Agent shall within fifteen days after the
occurrence of such Termination Event commence an action or
proceeding in the court having jurisdiction of the Company’s
case under the Bankruptcy Code seeking an order requiring the
Collateral Agent to effectuate the release and transfer of all
Notes underlying Pledged Applicable Ownership Interests in Notes,
Pledged Applicable Ownership Interest in the Treasury Portfolio,
Pledged Treasury Securities and the payments by Holders (or the
Permitted Investments of such payments) pursuant to
Section 5.03 hereof and Proceeds and all other payments
received by the Collateral Agent in respect of the foregoing, or as
the case may be, as provided by this Section 3.15.
(c) Upon the
occurrence of a Termination Event and the Transfer to the Purchase
Contract Agent of the Notes underlying Pledged Applicable Ownership
Interests in Notes, the appropriate Pledged Applicable Ownership
Interests in the Treasury Portfolio or the Pledged Treasury
Securities, as the case may be, pursuant to Section 3.15, the
Purchase Contract Agent shall request transfer instructions with
respect to such Notes, Applicable Ownership Interests in the
Treasury Portfolio or Pledged Treasury Securities, as the case may
be, from each Holder by written request, substantially in the form
of Exhibit D hereto, mailed to such Holder at its address as
it appears in the Security Register.
(d) Upon
book-entry transfer of the Corporate Units or the Treasury Units or
delivery of a Corporate Units Certificate or Treasury Units
Certificate to the Purchase Contract Agent with such transfer
instructions, the Purchase Contract Agent shall transfer the Notes
underlying Pledged Applicable Ownership Interests in Notes, the
Pledged Applicable Ownership Interests in the Treasury Portfolio or
Pledged Treasury Securities, as the case may be, underlying such
Corporate Units or Treasury Units, as the case may be, to such
Holder by book-entry transfer, or other appropriate procedures, in
accordance with such instructions and, in the case of the Notes
underlying Pledged Applicable Ownership Interests in Notes, in
accordance with the terms of the Indenture. In the event a Holder
of Corporate Units or Treasury Units fails to effect such transfer
or delivery, the Notes underlying Pledged Applicable Ownership
Interests in Notes, the Pledged Applicable Ownership Interests in
the Treasury Portfolio or Pledged Treasury Securities, as the case
may be, underlying such Corporate Units of Treasury Units, as the
case may be, and any distributions thereon, shall be
held
48
in the name of
the Purchase Contract Agent or its nominee in trust for the benefit
of such Holder, until the earlier to occur of:
(i) the transfer
of such Corporate Units or Treasury Units or surrender of the
Corporate Units Certificate or Treasury Units Certificate or the
receipt by the Company and the Purchase Contract Agent from such
Holder of satisfactory evidence that such Corporate Units
Certificate or Treasury Units Certificate has been destroyed, lost
or stolen, together with any indemnity that may be required by the
Purchase Contract Agent and the Company; and
(ii) the
expiration of the time period specified by the applicable law
governing abandoned property in the state in which the Purchase
Contract Agent holds such property.
Section 3.16
. No Consent to Assumption. Each Holder of a Unit, by
acceptance thereof, shall be deemed expressly to have withheld any
consent to the assumption under Section 365 of the Bankruptcy
Code or otherwise, of the Purchase Contract by the Company or its
trustee, receiver, liquidator or a person or entity performing
similar functions in the event that the Company becomes a debtor
under the Bankruptcy Code or subject to other similar state or
Federal law providing for reorganization or liquidation.
Section 3.17
. Substitutions. Whenever a Holder has the right to
substitute Treasury Securities, Notes underlying Applicable
Ownership Interests in Notes or the Applicable Ownership Interests
in the Treasury Portfolio (as defined in clause (i) of each
paragraph of the definition of such term), as the case may be, or
security entitlements for any of them for financial assets held in
the Collateral Account, such substitution shall not constitute a
novation of the security interest created hereby.
Section 4.01
. Interest Payments; Rights to Interest Payments Preserved.
(a) The Collateral Agent shall transfer all income and
distributions received by it on account of the Notes underlying
Pledged Applicable Ownership Interests in Notes (if the Notes
underlying Pledged Applicable Ownership Interests in Notes are
registered in the name of the Collateral Agent), the Pledged
Applicable Ownership Interests in the Treasury Portfolio or
Permitted Investments from time to time held in the Collateral
Account to the Purchase Contract Agent (ABA No. 021000018,
Account No. GLA#111-565, ACCT # 542555, Re: Great Plains Energy
Incorporated Equity Units) for distribution to the applicable
Holders as provided in this Agreement and the Purchase
Contracts.
49
(b) Any
payment on any Note underlying Applicable Ownership Interests in
Notes or any distribution on any Applicable Ownership Interests in
the Treasury Portfolio (as specified in clause (ii) of each
paragraph of the definition of Applicable Ownership Interest in the
Special Event Treasury Portfolio and clauses (ii) or
(iii) of each paragraph of the definition of Applicable
Ownership Interest in the Remarketing Treasury Portfolio), as the
case may be, which is paid on any Payment Date shall, subject to
receipt thereof by the Purchase Contract Agent from the Company or
from the Collateral Agent as provided in Section 4.01(a)
above, be paid to the Person in whose name the Corporate Units
Certificate (or one or more Predecessor Corporate Units
Certificates) of which such Applicable Ownership Interest in Notes
or Applicable Ownership Interests in the Treasury Portfolio, as the
case may be, forms a part is registered at the close of business on
the Record Date for such Payment Date.
(c) Each
Corporate Units Certificate evidencing Applicable Ownership
Interests in Notes or Applicable Ownership Interests in the
Treasury Portfolio delivered under this Agreement upon registration
of transfer of or in exchange for or in lieu of any other Corporate
Units Certificate shall carry the right to accrued and unpaid
interest or distributions, and to accrue interest or distributions,
which were carried by Applicable Ownership Interests in Notes or
Applicable Ownership Interests in the Treasury Portfolio underlying
such other Corporate Units Certificate.
(d) In the
case of any Corporate Unit with respect to which (1) Cash
Settlement of the underlying Purchase Contract is properly effected
pursuant to Section 5.03(a) hereof, (2) Early Settlement
of the underlying Purchase Contract is properly effected pursuant
to Section 5.08 hereof, (3) Fundamental Change Early
Settlement of the underlying Purchase Contract is properly effected
pursuant to Section 5.05(b)(ii) hereof or (4) a
Collateral Substitution is properly effected pursuant to
Section 3.13, in each case on a date that is after any Record
Date and prior to or on the next succeeding Payment Date, interest
in respect of the Notes underlying Applicable Ownership Interests
in Notes or distributions on Applicable Ownership Interests in the
Treasury Portfolio, as the case may be, underlying such Corporate
Unit otherwise payable on such Payment Date shall be payable on
such Payment Date notwithstanding such Cash Settlement, Early
Settlement, Fundamental Change Early Settlement or Collateral
Substitution, and such payment or distributions shall, subject to
receipt thereof by the Purchase Contract Agent, be payable to the
Person in whose name the Corporate Units Certificate (or one or
more Predecessor Corporate Units Certificates) were registered at
the close of business on the Record Date.
(e) Except as
otherwise expressly provided in Section 4.01(d) hereof, in the
case of any Corporate Unit with respect to which Cash Settlement,
Early Settlement or Fundamental Change Early Settlement of the
component Purchase Contract is properly effected, or with respect
to which a Collateral Substitution has been effected, payments
attributable to the Notes underlying Applicable Ownership Interests
in Notes or distributions on Applicable Ownership
Interests
50
in the Treasury
Portfolio, as the case may be, that would otherwise be payable or
made after the Purchase Contract Settlement Date, Early Settlement
Date, Fundamental Change Early Settlement Date or the date of the
Collateral Substitution, as the case may be, shall not be payable
hereunder to the Holder of such Corporate Units; provided,
however , that to the extent that such Holder continues to hold
Separate Notes or Applicable Ownership Interests in the Treasury
Portfolio that formerly comprised a part of such Holder’s
Corporate Units, such Holder shall be entitled to receive interest
on such Separate Notes or distributions on such Applicable
Ownership Interests in the Treasury Portfolio.
Section 4.02
. Payments Prior to or on Purchase Contract Settlement Date.
(a) Subject to the provisions of Section 5.03(a),
Section 5.05(b)(ii) and Section 5.08, and except as
provided in Section 4.02(b) below, if no Termination Event
shall have occurred, all payments received by the Securities
Intermediary in respect of (1) the principal amount of the
Notes underlying Pledged Applicable Ownership Interests in Notes,
(2) the Pledged Applicable Ownership Interests in the Treasury
Portfolio (as specified in clause (i) of each paragraph of the
definition of Applicable Ownership Interests in the Remarketing
Treasury Portfolio or Applicable Ownership Interests in the Special
Event Treasury Portfolio, as applicable) and (3) the Pledged
Treasury Securities, shall be credited to the Collateral Account,
to be invested in Permitted Investments until the Purchase Contract
Settlement Date, and transferred to the Company on the Purchase
Contract Settlement Date as provided in Section 5.03 hereof.
Any balance remaining in the Collateral Account shall be released
from the Pledge and transferred to the Purchase Contract Agent for
the benefit of the applicable Holders for distribution to such
Holders in accordance with their respective interests, free and
clear of the Pledge created hereby. The Company shall instruct the
Collateral Agent in writing as to the specific Permitted
Investments in which any payments made under this Section 4.02
shall be invested, provided, however, that if the Company fails to
deliver such instructions by 10:30 a.m. (New York City time)
on the day such payments are received by the Securities
Intermediary, the Collateral Agent shall instruct the Securities
Intermediary to invest such payments in the Permitted Investments
of the type described in clause (6) of the definition of
Permitted Investments, which have been designated by the Company in
writing from time to time in a standing instruction to the
Securities Intermediary which shall be effective until revoked or
superseded. In no event shall the Collateral Agent be liable for
the selection of Permitted Investments or for investment losses
incurred thereon. The Collateral Agent shall have no liability in
respect of losses incurred as a result of the failure of the
Company to provide timely written investment direction.
(b) All
payments received by the Securities Intermediary in respect of
(1) the Notes, (2) the Applicable Ownership Interests in
the Treasury Portfolio and (3) the Treasury Securities or
security entitlements with respect thereto, that, in each case,
have been released from the Pledge hereunder shall be transferred
to
51
the Purchase
Contract Agent for the benefit of the applicable Holders for
distribution to such Holders in accordance with their respective
interests.
Section 4.03
. Notice and Voting. (a) Subject to
Section 4.03(b) hereof, the Purchase Contract Agent may
exercise, or refrain from exercising, any and all voting and other
consensual rights pertaining to the Notes underlying Pledged
Applicable Ownership Interests in Notes or any part thereof for any
purpose not inconsistent with the terms of this Agreement;
provided that the Purchase Contract Agent shall not exercise
or shall not refrain from exercising such right, as the case may
be, if, in the judgment of the Purchase Contract Agent, such action
would impair or otherwise have a material adverse effect on the
value of all or any of the Notes underlying Pledged Applicable
Ownership Interests in Notes; and provided further that the
Purchase Contract Agent shall give the Company and the Collateral
Agent at least five Business Days’ prior written notice of
the manner in which it intends to exercise, or its reasons for
refraining from exercising, any such right. Upon receipt of any
notices and other communications in respect of any Notes underlying
Pledged Applicable Ownership Interests in Notes, including either
notice of any meeting at which holders of the Notes are entitled to
vote or the solicitation of consents, waivers or proxies of holders
of the Notes, the Collateral Agent shall use reasonable efforts to
send promptly to the Purchase Contract Agent such notice or
communication, and as soon as reasonably practicable after receipt
of a written request therefor from the Purchase Contract Agent, to
execute and deliver to the Purchase Contract Agent such proxies and
other instruments in respect of such Notes underlying Pledged
Applicable Ownership Interests in Notes (in form and substance
satisfactory to the Collateral Agent) as are prepared by the
Company and delivered to the Purchase Contract Agent with respect
to the Notes underlying Pledged Applicable Ownership Interests in
Notes.
(b) Upon
receipt of notice of any meeting at which holders of Notes are
entitled to vote or upon any solicitation of consents, waivers or
proxies of holders of Notes, the Purchase Contract Agent shall, as
soon as practicable thereafter, mail, first class, postage
pre-paid, to the Holders of Corporate Units a notice:
(i) containing
such information as is contained in the notice or
solicitation;
(ii) stating that
each Holder on the record date set by the Purchase Contract Agent
therefor (which, to the extent possible, shall be the same date as
the record date set by the Company for determining the holders of
Notes entitled to vote) shall be entitled to instruct the Purchase
Contract Agent as to the exercise of the voting rights pertaining
to the Notes underlying the Applicable Ownership Interests in Notes
that are a component of their Corporate Units; and
(iii) stating the
manner in which such instructions may be given.
52
Upon the
written request of the Holders of Corporate Units on such record
date received by the Purchase Contract Agent at least six days
prior to such meeting, the Purchase Contract Agent shall endeavor
insofar as practicable to vote or cause to be voted, in accordance
with the instructions set forth in such requests, the maximum
aggregate principal amount of Notes (rounded down to the nearest
integral multiple of $1,000) as to which any particular voting
instructions are received. In the absence of specific instructions
from the Holder of Corporate Units, the Purchase Contract Agent
shall abstain from voting the Notes underlying Applicable Ownership
Interests in Notes that are a component of such Corporate Units.
The Company hereby agrees, if applicable, to solicit Holders of
Corporate Units to timely instruct the Purchase Contract Agent as
to the exercise of such voting rights in order to enable the
Purchase Contract Agent to vote such Notes.
(c) The
Holders of Corporate Units and the Holders of Treasury Units shall
have no voting or other rights in respect of Common
Stock.
Section 4.04
. Special Event Redemption. (a) If the Company elects
to redeem the Notes following the occurrence of a Special Event as
permitted by the Indenture, it shall notify the Collateral Agent in
writing that a Special Event has occurred and that it intends to
redeem the Notes on the Special Event Redemption Date. Upon the
occurrence of such Special Event Redemption while Notes are still
credited to the Collateral Account, the Collateral Agent shall, and
is hereby authorized to, instruct the Securities Intermediary to
present the Notes underlying Pledged Applicable Ownership Interests
in Notes for payment as may be required by their respective terms
and to direct the Indenture Trustee to remit the Redemption Price
to the Securities Intermediary for credit to the Collateral
Account, on or prior to 11:00 a.m., New York City time, on
such Special Event Redemption Date, by wire transfer of immediately
available funds. Upon receipt of such funds by the Securities
Intermediary and the credit thereof to the Collateral Account, the
Notes underlying Pledged Applicable Ownership Interests in Notes
shall be released from the Collateral Account and promptly
transferred to the Company. Upon the crediting of such funds to the
Collateral Account, the Collateral Agent, at the written direction
of the Company, shall instruct the Securities Intermediary to
(i) apply an amount equal to the Redemption Amount of such
funds to purchase the Special Event Treasury Portfolio from the
Quotation Agent, (ii) credit to the Collateral Account the
Applicable Ownership Interests in the Special Event Treasury
Portfolio (as specified in clause (i) of each paragraph of the
definition thereof) and (iii) promptly remit the remaining
portion of such funds to the Purchase Contract Agent for payment to
the Holders of Corporate Units, in accordance with their respective
interests.
(b) Upon the
occurrence of a Special Event Redemption, (i) the Applicable
Ownership Interests in the Special Event Treasury Portfolio (as
specified in clause (i) of each paragraph of the definition
thereof) will be substituted as Collateral for the Notes underlying
Pledged Applicable Ownership Interests in Notes and will be held by
the Collateral Agent in accordance with the terms hereof to secure
the Obligation of each Holder of Corporate Units, (ii)
the
53
Holders of
Corporate Units and the Collateral Agent shall have such rights and
obligations, and the Collateral Agent shall have such security
interest, with respect to such Applicable Ownership Interests in
the Special Event Treasury Portfolio (as specified in clause
(i) of each paragraph of the definition thereof) as the
Holders of Corporate Units and the Collateral Agent had in respect
of the Notes underlying Pledged Applicable Ownership Interests in
Notes, subject to the Pledge thereof, and (iii) any reference
herein to Applicable Ownership Interests in Notes shall be deemed
to be a reference to such Applicable Ownership Interests in the
Special Event Treasury Portfolio. The Company may cause to be made
in any Corporate Units Certificates thereafter to be issued such
change in phraseology and form (but not in substance) as may be
appropriate to reflect the substitution of the Applicable Ownership
Interests in the Special Event Treasury Portfolio (as specified in
clause (i) of each paragraph of the definition thereof) for
Applicable Ownership Interests in Notes as Collateral.
Section 4.05
. Payments to Purchase Contract Agent. The Securities
Intermediary shall use commercially reasonable efforts to deliver
any payments required to be made by it to the Purchase Contract
Agent hereunder to the account designated by the Purchase Contract
Agent for such purpose not later than 12:00 p.m. (New York
City time) on the Business Day such payment is received by the
Securities Intermediary; provided, however , that if such
payment is received on a day that is not a Business Day or after
11:00 a.m. (New York City time) on a Business Day, then the
Securities Intermediary shall use commercially reasonable efforts
to deliver such payment to the Purchase Contract Agent no later
than 10:30 a.m. (New York City time) on the next succeeding
Business Day.
Section 4.06
. Payments Held in Trust. If the Purchase Contract Agent or
any Holder shall receive any payments on account of financial
assets credited to the Collateral Account (other than interest on
the Notes or distributions on the Applicable Ownership Interests in
the Treasury Portfolio (as specified in clause (ii) of each
paragraph of the definition thereof)) and not released therefrom in
accordance with this Agreement, the Purchase Contract Agent or such
Holder shall hold such payments as trustee of an express trust for
the benefit of the Company and, upon receipt of an Officers’
Certificate of the Company so directing, promptly deliver such
payments to the Securities Intermediary for credit to the
Collateral Account or to the Company for application to the
Obligations of the applicable Holder or Holders, and the Purchase
Contract Agent and Holders shall acquire no right, title or
interest in any such payments of principal amounts so received. The
Purchase Contract Agent shall have no liability under this
Section 4.05 unless and until it has been notified in writing
that such payment was delivered to it erroneously and shall have no
liability for any action taken, suffered or omitted to be taken
prior to its receipt of such notice.
54
ARTICLE 5
The Purchase
Contracts
Section 5.01
. Purchase of Shares of Common Stock. (a) Each Purchase
Contract shall obligate the Holder of the related Unit to purchase,
and the Company to sell, on the Purchase Contract Settlement Date
at a price equal to the Stated Amount (the “ Purchase
Price ”), a number of shares of Common Stock (subject to
Section 5.09) equal to the Settlement Rate unless an Early
Settlement, a Fundamental Change Early Settlement or a Termination
Event with respect to the Units of which such Purchase Contract is
a part shall have occurred. The “ Settlement Rate
” is equal to:
(i) If the
Applicable Market Value is equal to or greater than $16.80 (the
“ Threshold Appreciation Price ”), the
Settlement Rate will be 2.9762 shares of Common Stock (such
Settlement Rate being referred to as the “ Minimum
Settlement Rate ”);
(ii) if the
Applicable Market Value is less than the Threshold Appreciation
Price but greater than $14.00(the “ Reference Price
”), the Settlement Rate will be a number of shares of Common
Stock equal to the Stated Amount, divided by the Applicable
Market Value, which is not subject to adjustment pursuant to
Section 5.05(a)(vii); and
(iii) if the
Applicable Market Value is less than or equal to the Reference
Price, the Settlement Rate will be 3.5714 shares of Common Stock,
which is equal to the Stated Amount divided by the Reference
Price (such Settlement Rate being referred to as the “
Maximum Settlement Rate ”);
The Maximum
Settlement Rate, Minimum Settlement Rate and the Applicable Market
Value (as defined below) are subject to adjustment as provided in
Section 5.05 (and in each case rounded upward or downward to
the nearest 1/10,000th of a share).
The “
Applicable Market Value ” means the average of the
Closing Prices per share of Common Stock on each Trading Day during
the Observation Period; provided, however , that if the
Company enters into a Reorganization Event, the Applicable Market
Value will mean the value of an Exchange Property Unit. Following
the occurrence of any such event, references herein to the purchase
or issuance of shares of Common Stock shall be construed to be
references to settlement into Exchange Property Units. For purposes
of calculating the value of an Exchange Property Unit, (x) the
value of any common stock included in the Exchange Property Unit
shall be determined using the average of the Closing Price per
share of such common stock on each Trading Day during the
Observation Period (adjusted as set forth under Section 5.05)
and (y) the value of any other property, including securities
other than common stock included in the Exchange Property Unit,
shall be the value of such property on each Trading Day
55
of the
Observation Period (as determined in good faith by the Board of
Directors, whose determination shall be conclusive and described in
a Board Resolution).
The “
Closing Price ” per share of Common Stock on any date
of determination means, on any date of determination (1) the
closing sale price (or, if no closing sale price is reported, the
last reported sale price) per share of Common Stock on the New York
Stock Exchange, Inc. (the “ NYSE ”) on such date
or, if the Common Stock is not listed for trading on the NYSE on
any such date, as reported in the composite transactions for the
principal United States national or regional securities exchange on
which the Common Stock is listed for trading, or (2) if the
Common Stock is not listed for trading on a United States national
or regional securities exchange, the last quoted bid price per
share of the Common Stock in the over-the-counter market as
reported by Pink OTC Markets Inc. or similar organization, or, if
such bid price referred to above is not available, the market value
per share of the Common Stock on such date provided by a nationally
recognized independent investment banking firm retained by the
Company for purposes of determining the Closing Price.
A “
Trading Day ” means a day on which the Common Stock
(i) is not suspended from trading on any national or regional
securities exchange or association or over-the-counter market at
the close of business and (ii) has traded at least once on the
national or regional securities exchange or association or
over-the-counter market that is the primary exchange or market for
the trading of the Common Stock. If the Common Stock is not traded
on a securities exchange or association or over-the-counter market,
then “ Trading Day ” means “ Business
Day. ”
(b) Each
Holder of a Corporate Unit or a Treasury Unit, by its acceptance of
such Unit:
(i) duly appoints
the Purchase Contract Agent as its attorney-in-fact to enter into
and perform the related Purchase Contract and this Agreement on its
behalf and in its name as its attorney-in-fact (including, without
limitation, the execution of Certificates on behalf of such
Holder);
(ii) irrevocably
agrees to be bound by the terms and provisions of such Unit,
including but not limited to the terms and provisions of the
Purchase Contract, and this Agreement;
(iii) irrevocably
covenants and agrees to perform its obligations under this
Agreement and such Unit, including but not limited to the Purchase
Contract, for so long as such Holder remains a Holder of a
Corporate Unit or a Treasury Unit;
(iv) consents to
the provisions hereof; and
56
(v) consents to,
and agrees to be bound by, the Pledge of such Holder’s right,
title and interest in and to the Collateral, including the
Applicable Ownership Interests in Notes and the Applicable
Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of each paragraph of the definition of such term)
or the Treasury Securities pursuant to this Agreement, and the
delivery of the Notes underlying such Applicable Ownership
Interests in Notes by the Purchase Contract Agent to the Collateral
Agent.
(c) Each
Holder of a Corporate Unit or a Treasury Unit, by its acceptance
thereof, further covenants and agrees that to the extent and in the
manner provided in Section 5.03 hereof, but subject to the
terms thereof, on the Purchase Contract Settlement Date, Proceeds
of the Pledged Applicable Ownership Interests in Notes, the Pledged
Applicable Ownership Interests in the Treasury Portfolio or the
Pledged Treasury Securities, as applicable, equal to the Purchase
Price shall be paid by the Collateral Agent to the Company in
satisfaction of such Holder’s obligations under such Purchase
Contract and such Holder shall acquire no right, title or interest
in such Proceeds.
(d) Upon
registration of transfer of a Certificate, the transferee shall be
bound (without the necessity of any other action on the part of
such transferee) by the terms of this Agreement and the Purchase
Contracts underlying such Certificate and the transferor shall be
released from the obligations under this Agreement and the Purchase
Contracts underlying the Certificate so transferred.
The Company
covenants and agrees, and each Holder of a Certificate, by its
acceptance thereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.
(e) Promptly
after the calculation of the Settlement Rate and the Applicable
Market Value, the Company shall give the Purchase Contract Agent
notice thereof. All calculations and determinations of the
Settlement Rate and the Applicable Market Value shall be made by
the Company or its agent based on their good faith calculations,
and the Purchase Contract Agent shall have no responsibility with
respect thereto.
Section 5.02
. Early Remarketing .
(a) Early
Remarketing. (i) Unless a Successful Early Remarketing (as
defined below), Special Event Redemption or Termination Event has
occurred, the Company may engage the Remarketing Agent(s), pursuant
to the terms of the Remarketing Agreement, to remarket the
aggregate Notes underlying the aggregate Applicable Ownership
Interests in Notes that are components of Corporate Units, along
with any Separate Notes, the holders of which have elected to
participate in such remarketing pursuant to the Indenture and
Section 5.03(d) below, during an Early Remarketing Period
selected by the Company
57
(each date
during such Early Remarketing Period, an “ Early
Remarketing Date ”).
(ii) (A) If
the Company elects to conduct an Early Remarketing on an Early
Remarketing Date, by 11:00 a.m. (New York City time) on the
Business Day immediately preceding the first day of the related
Early Remarketing Period, the Purchase Contract Agent shall notify
in writing the Remarketing Agent(s) of the aggregate principal
amount of Notes underlying the Pledged Applicable Ownership
Interests in Notes that are a part of the Corporate Units to be
remarketed, and the Custodial Agent shall notify in writing the
Remarketing Agent(s) of the aggregate principal amount of Separate
Notes (if any) to be remarketed pursuant to clause (d) of
Section 5.03 below. Pursuant to the Remarketing Agreement,
upon receipt of such notices from the Purchase Contract Agent and
the Custodial Agent, the Remarketing Agent(s) will use its
reasonable efforts to remarket such Notes at the applicable
Remarketing Price. If the Remarketing Agent(s) is unsuccessful on
the first Early Remarketing Date during such Early Remarketing
Period, a subsequent Remarketing shall be attempted (unless
impracticable) by the Remarketing Agent(s) on each of the two
following Early Remarketing Dates in that Early Remarketing Period
until a Successful Early Remarketing (as hereinafter defined)
occurs. If the Remarketing Agent(s) is able to remarket such Notes
for at least the applicable Remarketing Price (a “
Successful Early Remarketing ”), the Collateral Agent
shall cause the Securities Intermediary to transfer to the
Remarketing Agent(s) the remarketed Notes underlying the Pledged
Applicable Ownership Interests in Notes upon confirmation of
deposit to the Collateral Account of proceeds of such Successful
Early Remarketing attributable to such Notes, and the Custodial
Agent shall transfer the remarketed Separate Notes to the
Remarketing Agent(s) upon confirmation of receipt of proceeds of
such Successful Early Remarketing attributable to such Separate
Notes. Settlement shall occur on the Remarketing Settlement Date.
Upon deposit in the Collateral Account of such proceeds, the
Collateral Agent shall (1) instruct the Securities
Intermediary to apply an amount equal to the Remarketing Treasury
Portfolio Purchase Price to purchase the Remarketing Treasury
Portfolio from the Quotation Agent (the amount and issue of the
U.S. Treasury securities (or principal or interest strips thereof)
constituting the Remarketing Treasury Portfolio to be determined by
the Remarketing Agent(s)), (2) credit to the Collateral
Account the Applicable Ownership Interests in the Remarketing
Treasury Portfolio, and (3) promptly remit any remaining
portion of such proceeds to the Purchase Contract Agent for payment
to the Holders of Corporate Units, whereupon the Purchase Contract
Agent shall make such payment on the Remarketing Settlement Date to
the Holders pro rata in accordance with their respective interests.
With respect to any Separate Notes remarketed, the Custodial Agent
shall remit such proceeds of the Successful Early
58
Remarketing
received from the Remarketing Agent(s) to Holders of such Separate
Notes.
(B) In connection
with any Successful Early Remarketing, solely with respect to
Separate Notes that were not remarketed in such Remarketing, any
then-outstanding Deferred Interest (including compounded interest
thereon) will be paid to the Holders of such Separate Notes on the
immediately following scheduled Interest Payment Date, at the
Company’s election, in Cash or by issuing Additional Notes to
the Holders of such Separate Notes in accordance with the Indenture
in principal amount equal to the amount of such Deferred Interest
(including compounded interest thereon).
(iii) Following
the occurrence of a Successful Early Remarketing, the Applicable
Ownership Interests in the Remarketing Treasury Portfolio (as
specified in clause (i) of each paragraph of such term) will
be substituted as Collateral for the Pledged Applicable Ownership
Interests in Notes and will be held by the Collateral Agent in
accordance with the terms hereof to secure the Obligation of each
Holder of Corporate Units, and the Holders of Corporate Units and
the Collateral Agent shall have such security interests, rights and
obligations with respect to the Applicable Ownership Interests in
the Remarketing Treasury Portfolio (as defined in clause
(i) of each paragraph of such term) as the Holder of Corporate
Units and the Collateral Agent had in respect of the Pledged
Applicable Ownership Interests in Notes, subject to the Pledge
thereof. Any reference in this Agreement or the Certificates to the
Pledged Applicable Ownership Interests in Notes shall thereupon be
deemed to be a reference to such Applicable Ownership Interests in
the Remarketing Treasury Portfolio (as defined in clause
(i) of each paragraph of such term). The Company may cause to
be made in any Corporate Units Certificates thereafter to be issued
such change in phraseology and form (but not in substance) as may
be appropriate to reflect the substitution of the Applicable
Ownership Interests in the Remarketing Treasury Portfolio (as
defined in clause (i) of each paragraph of such term) for the
Pledged Applicable Ownership Interests in Notes as
Collateral.
(iv) If, in spite
of its reasonable efforts, the Remarketing Agent(s) cannot remarket
the Notes as set forth above on each of the three Early Remarketing
Dates comprising any Early Remarketing Period (other than to the
Company) at a price not less than the applicable Remarketing Price
or a condition precedent set forth in the Remarketing Agreement is
not fulfilled, the Early Remarketing will be deemed to have failed
(a “ Failed Early Remarketing ”). Promptly after
a Failed Early Remarketing, the Custodial Agent will return
Separate Notes to the appropriate Holders.
59
(v) The Company
will pay the Remarketing Fee in connection with any Successful
Early Remarketing unless the Company directs the Remarketing
Agent(s) to include such fee in the Remarketing Price and the
Remarketing Agent(s) is able to remarket the Notes for an amount
which includes the Remarketing Fee. In any such case, the
Remarketing Agent(s) may deduct the applicable Remarketing Fee from
any amount of the proceeds from the Successful Early Remarketing in
excess of the Remarketing Treasury Portfolio Purchase Price, and
the Remarketing Agent(s) shall then remit any remaining portion of
such proceeds for the benefit of the Holders whose Notes were
remarketed. Holders whose Notes underlying the Pledged Applicable
Ownership Interests in Notes that are a part of the Successful
Early Remarketing will not otherwise be responsible for the payment
of any Remarketing Fee.
(vi) During any
Remarketing occurring during the Early Remarketing Period, the
Company has the right to postpone such Remarketing in the
Company’s absolute discretion.
Section 5.03
. Cash Settlement; Final Remarketing; Payment of Purchase
Price. (a) (i) Unless (1) a Termination Event has
occurred, (2) a Special Event Redemption has occurred or will
occur prior to the Purchase Contract Settlement Date, (3) a
Holder effects an Early Settlement or a Fundamental Change Early
Settlement of the underlying Purchase Contract or (4) a
Successful Early Remarketing has occurred, each Holder of Corporate
Units shall have the right to satisfy such Holder’s
Obligations on the Purchase Contract Settlement Date in cash (a
“ Cash Settlement ”). Each Holder of Corporate
Units who intends to pay in cash to satisfy such Holder’s
Obligations under the Purchase Contract on the Purchase Contract
Settlement Date must notify the Purchase Contract Agent by
presenting and surrendering at the offices of the Purchase Contract
Agent (1) the Certificate evidencing the Corporate Units (if
they are in certificated form) or the related Book-Entry Interests,
and (2) the form of “ Notice of Cash Settlement
” substantially in the form of Exhibit E hereto
completed and executed as indicated on or prior to 4:00 p.m. (New
York City time) on the seventh Business Day immediately preceding
the Purchase Contract Settlement Date. Corporate Units Holders may
only effect such a Cash Settlement pursuant to this
Section 5.03(a) in integral multiples of 20 Corporate
Units.
(ii) A Holder of a
Corporate Unit who has so notified the Purchase Contract Agent of
his intention to effect a Cash Settlement in accordance with
Section 5.03(a)(i) above shall pay the Purchase Price to the
Securities Intermediary for deposit in the Collateral Account prior
to 11:00 a.m. (New York City time) on the sixth Business Day
immediately preceding the Purchase Contract Settlement Date, in
lawful money of the United States by certified or cashiers check or
wire transfer in immediately available funds payable to or upon the
order of the Securities Intermediary.
60
(iii) If a Holder
of a Corporate Unit fails to notify the Purchase Contract Agent of
its intention to make a Cash Settlement in accordance with
Section 5.03(a)(i), or does notify the Purchase Contract Agent
as provided in Section 5.03(a)(i) of its intention to pay the
Purchase Price in cash but fails to make such payment as required
by Section 5.03(a)(ii), such Holder shall be deemed to have
consented to the disposition of the Notes underlying the Pledged
Applicable Ownership Interests in Notes pursuant to any Remarketing
occurring in the Final Remarketing Period as described in
Section 5.03(b) below.
(iv) Promptly
after 4:00 p.m. (New York City time) on the Business Day preceding
the first day of the Final Remarketing Period, the Purchase
Contract Agent, based on notices received by the Purchase Contract
Agent pursuant to Section 5.03(a)(i) hereof and notice from
the Securities Intermediary regarding cash received by it prior to
such time, shall notify the Collateral Agent of the aggregate
number of Notes to be remarketed in any Remarketing occurring in
the Final Remarketing Period in a notice substantially in the form
of Exhibit J hereto.
(v) Upon
(1) receipt by the Collateral Agent of a notice from the
Purchase Contract Agent after the receipt by the Purchase Contract
Agent of a notice from a Holder of Corporate Units that such Holder
has elected, in accordance with Section 5.03(a)(i), to effect
a Cash Settlement and (2) the payment by such Holder of the
Purchase Price in accordance with Section 5.03(a)(ii) above,
then the Collateral Agent shall:
(A) instruct the
Securities Intermediary promptly to invest any such Cash in
Permitted Investments consistent with the instructions of the
Company as provided for below in this
Section 5.03(a)(v);
(B) release from
the Pledge the Notes underlying the Applicable Ownership Interest
in Notes related to the Corporate Units as to which such Holder has
effected a Cash Settlement; and
(C) instruct the
Securities Intermediary to Transfer all such Notes to the Purchase
Contract Agent for distribution to such Holder, in each case free
and clear of the Pledge created hereby, whereupon the Purchase
Contract Agent shall Transfer such Notes in accordance with written
instructions provided by the Holder thereof or, if no such
instructions are given to the Purchase Contract Agent by the
Holder, the Purchase Contract Agent shall hold such Notes, and any
interest payment thereon, in the name of the Purchase Contract
Agent or its nominee in trust for the benefit of such Holder until
the expiration of the time period specified in the relevant
abandoned property laws of the state where such Notes and interest
payments thereon, if any, are held.
61
The Company
shall instruct the Collateral Agent in writing as to the type of
Permitted Investments in which any such Cash shall be invested;
provided, however , that if the Company fails to deliver
such written instructions by 10:30 a.m. (New York City time)
on the day such Cash is received by the Collateral Agent or to be
reinvested by the Securities Intermediary, the Collateral Agent
shall instruct the Securities Intermediary to invest such Cash in
the Permitted Investments of the type described in clause
(6) of the definition of Permitted Investments which have been
designated by the Company in writing from time to time in a
standing instruction to the Collateral Agent which shall be
effective until revoked or superseded. In no event shall the
Collateral Agent or Securities Intermediary be liable for the
selection of Permitted Investments or for investment losses
incurred thereon. The Collateral Agent and Securities Intermediary
shall have no liability in respect of losses incurred as a result
of the failure of the Company to provide timely written investment
direction.
Upon maturity of
the Permitted Investments on the Purchase Contract Settlement Date,
the Collateral Agent shall, and is hereby authorized to,
(A) instruct the Securities Intermediary to remit to the
Company on the Purchase Contract Settlement Date such portion of
the proceeds of such Permitted Investments as is equal to the
aggregate Purchase Price under all Purchase Contracts in respect of
which Cash Settlement has been affected as provided in this
Section 5.03 to the Company on the Purchase Contract
Settlement Date, and (B) release any amounts in excess of such
amount earned from such Permitted Investments to the Purchase
Contract Agent for distribution to the Holders who have effected
Cash Settlement, pro rata in proportion to the amount paid by such
Holders under Section 5.03(a)(ii) above, as adjusted to
reflect the period of time that each such Holder’s cash was
invested in such Permitted Investments.
(b) (i) Unless
a Termination Event has occurred or a Successful Early Remarketing
or Special Event Redemption has occurred or will occur, in each
case, prior to the Purchase Contract Settlement Date, in order to
dispose of the Notes underlying Pledged Applicable Ownership
Interests in Notes of any Holders of Corporate Units who have not
notified the Purchase Contract Agent of their intention to effect a
Cash Settlement as provided in Section 5.03(a)(i) above, or
who have so notified the Purchase Contract Agent but failed to make
such payment as required by Section 5.03(a)(ii) above, in each case
along with any Separate Notes, the holders of which have elected to
participate in a Final Remarketing pursuant to clause
(d) below, the Company shall engage the Remarketing Agent(s)
pursuant to the Remarketing Agreement to remarket such Notes on any
date or dates selected by the Company during the Final Remarketing
Period (each such date, a “ Final Remarketing Date
”). The Purchase Contract Agent, based on the notices
specified pursuant to Section 5.03(a)(iv), shall notify the
Remarketing Agent(s) in writing, promptly after 4:00 p.m. (New York
City time) on the Business Day immediately preceding the first day
of the Final Remarketing Period, of the aggregate principal amount
of Notes attributable to the Pledged Applicable Ownership Interests
in Notes that are to be remarketed.
62
Concurrently,
the Custodial Agent, based on the notices specified in clause
(d) below, will notify the Remarketing Agent(s) in writing of
the aggregate principal amount of Separate Notes to be remarketed
in any Remarketing to occur in the Final Remarketing Period. Upon
receipt of notice from the Purchase Contract Agent as set forth in
this Section 5.03(b)(i) and notice of the Separate Notes (if
any) from the Custodial Agent as set forth in this
Section 5.03(b)(i), the Remarketing Agent(s) shall, on the
Remarketing Date or Dates in the Final Remarketing Period, use
reasonable efforts to remarket, as provided in the Remarketing
Agreement, such Notes and such Separate Notes at the applicable
Remarketing Price.
(ii) (A) If
the Remarketing Agent(s) is able to remarket such Notes and
Separate Notes (if any) for at least the applicable Remarketing
Price in any Final Remarketing (other than to the Company) in
accordance with the Remarketing Agreement (a “ Successful
Final Remarketing ”), the Collateral Agent shall cause
the Securities Intermediary to transfer to the Remarketing Agent(s)
the remarketed Notes underlying the Pledged Applicable Ownership
Interests in Notes upon confirmation of deposit to the Collateral
Account of proceeds of such Successful Final Remarketing
attributable to such Notes, and the Custodial Agent shall transfer
the remarketed Separate Notes to the Remarketing Agent(s) upon
confirmation of receipt of proceeds of such Successful Final
Remarketing attributable to such Separate Notes. Settlement shall
occur on the Remarketing Settlement Date. Upon deposit in the
Collateral Account of such proceeds, the Collateral Agent shall, on
the Purchase Contract Settlement Date, in consultation with the
Purchase Contract Agent, instruct the Securities Intermediary to
remit a portion of such proceeds equal to the aggregate principal
amount of such Notes (plus all accrued and unpaid deferred
interest, including compounded interest thereon) to satisfy in full
the Obligations of Holders of Corporate Units to pay the Purchase
Price for the shares of Common Stock under the related Purchase
Contracts, and promptly remit the balance of such proceeds to the
Purchase Contract Agent for payment to the Holders of Corporate
Units, whereupon the Purchase Contract Agent shall make such
payment on the Purchase Contract Settlement Date pro rata in
accordance with their respective interests. With respect to any
Separate Notes remarketed, the Custodial Agent shall remit such
proceeds of the Successful Final Remarketing received from the
Remarketing Agent(s) pro rata to Holders of such Separate
Notes.
(B) In connection
with any Successful Final Remarketing, solely with respect to
Separate Notes that were not remarketed in such Remarketing, any
then-outstanding Deferred Interest (including compounded interest
thereon) will be paid to the Holders of such Separate Notes on the
Purchase Contract Settlement Date, at the Company’s election,
in Cash or by issuing
63
Additional
Notes in accordance with the Indenture to the holders of such
Separate Notes in principal amount equal to the amount of such
Deferred Interest (including compounded interest
thereon).
(iii) If, in spite
of its reasonable efforts, the Remarketing Agent(s) cannot remarket
the Notes during the Final Remarketing Period at a price not less
than the applicable Remarketing Price (other than to the Company)
or a condition precedent set forth in the Remarketing Agreement is
not fulfilled, the remarketing will be deemed to have failed (a
“ Failed Final Remarketing ”). Following a
Failed Final Remarketing, as of the Purchase Contract Settlement
Date, each Holder of any Pledged Applicable Ownership Interests in
Notes, unless such Holder has (A) provided written notice in
substantially the form of Exhibit M hereto of its intention to
settle the related Purchase Contract with separate cash and
(B) surrendered the Certificate evidencing the Corporate Units
(if they are in certificated form) or the related Book-Entry
Interests, to the Purchase Contract Agent prior to 11:00 a.m.
(New York City time) on the second Business Day immediately
preceding the Purchase Contract Settlement Date and on or prior to
4:00 p.m. (New York City time) on the Business Day immediately
preceding the Purchase Contract Settlement Date delivered the
Purchase Price to the Securities Intermediary for deposit in the
Collateral Account in lawful money of the United States by
certified or cashiers check or wire transfer in immediately
available funds payable to or upon the order of the Securities
Intermediary (which settlement may only be effected in integral
multiples of 20 Corporate Units), shall be deemed to have exercised
such Holder’s Put Right with respect to the Notes underlying
such Pledged Applicable Ownership Interests in Notes and to have
elected to have a portion of the Proceeds of the Put Right set-off
against such Holder’s obligation to pay the aggregate
Purchase Price for the shares of Common Stock to be issued under
the related Purchase Contracts in full satisfaction of such
Holders’ Obligations under such Purchase Contracts. Following
such set-off, each such Holder’s Obligations, including to
pay the Purchase Price for the shares of Common Stock, will be
deemed to be satisfied in full, and the Collateral Agent shall
cause the Securities Intermediary to release the Notes underlying
such Pledged Applicable Interests in Notes from the Collateral
Account and shall promptly transfer such Notes to the Company.
Thereafter, the Collateral Agent shall promptly remit the remaining
portion of the Proceeds of the Holder’s exercise of the Put
Right in excess of the aggregate Purchase Price for the shares of
Common Stock to be issued under such Purchase Contracts to the
Purchase Contract Agent for payment to the Holder of the Corporate
Units to which such Applicable Ownership Interests in Notes relate.
Upon (x) receipt by the Collateral Agent of a notice from the
Purchase Contract Agent in substantially the form of Exhibit N
hereto promptly after the receipt by the Purchase Contract Agent of
a notice from a Holder of Corporate Units that such
64
Holder has
elected, in accordance with this Section 5.03(b)(iii), to
settle the related Purchase Contract with separate cash and
(y) payment by such Holder to the Securities Intermediary of
the Purchase Price in accordance with the first sentence of this
Section 5.03(b)(iii), in lieu of exercise of such
Holder’s Put Right, the Securities Intermediary shall give
the Purchase Contract Agent notice of the receipt of such payment
in substantially the form of Exhibit O hereto and shall
(A) promptly invest the separate cash received in Permitted
Investments consistent with the instructions of the Company as
provided in Section 5.03(a)(v) with respect to Cash
Settlement, (B) promptly release from the Pledge the Notes
underlying the Applicable Ownership Interest in Notes related to
the Corporate Units as to which such Holder has paid such separate
cash and (C) promptly Transfer all such Notes to the Purchase
Contract Agent for distribution to such Holder, in each case free
and clear of the Pledge created hereby, whereupon the Purchase
Contract Agent shall Transfer such Notes in accordance with written
instructions provided by the Holder thereof or, if no such
instructions are given to the Purchase Contract Agent by the
Holder, the Purchase Contract Agent shall hold such Notes, and any
interest payment thereon, in the name of the Purchase Contract
Agent or its nominee in trust for the benefit of such Holder until
the expiration of the time period specified in the relevant
abandoned property laws of the state where such Notes and interest
payments thereon, if any, are held. Upon maturity of the Permitted
Investments on the Purchase Contract Settlement Date, the
Collateral Agent shall, and is hereby authorized to,
(A) instruct the Securities Intermediary to remit to the
Company on the Purchase Contract Settlement Date such portion of
the proceeds of such Permitted Investments as is equal to the
aggregate Purchase Price under all Purchase Contracts in respect of
which separate cash has been paid as provided in this
Section 5.03(b)(iii) to the Company on the Purchase Contract
Settlement Date, and (B) release any amounts in excess of such
amount earned from such Permitted Investments to the Purchase
Contract Agent for distribution to the Holders who have paid such
separate cash pro rata in proportion to the amount paid by such
Holders under this Section 5.03(b)(iii).
(iv) For the
avoidance of doubt, nothing in this Section 5.03(b)(iv) shall
prevent holders of Separate Notes from exercising their Put Right
after a Failed Final Remarketing.
(v) The Company
will pay the Remarketing Fee in connection with any Successful
Final Remarketing unless the Company directs the Remarketing
Agent(s) to include such fee in the Remarketing Price and the
Remarketing Agent(s) is able to remarket the Notes for an amount
which includes the Remarketing Fee. In any such case, the
Remarketing Agent(s) may deduct the applicable Remarketing Fee from
any amount of the proceeds from the Successful Final Remarketing in
excess of the
65
aggregate
principal amount of Notes (plus all accrued and unpaid Deferred
Interest, including compounded interest thereon) underlying the
Pledged Applicable Ownership Interests in Notes and Separate Notes
to be remarketed in such Successful Final Remarketing, and the
Remarketing Agent(s) shall then remit any remaining portion of such
proceeds for the benefit of the Holders. Holders whose Notes
underlying the Pledged Applicable Ownership Interests in Notes that
are a part of the Successful Final Remarketing will not otherwise
be responsible for the payment of any Remarketing Fee.
(vi) For the
avoidance of doubt, during the Final Remarketing Period, the
Company may not postpone the Remarketing for any reason.
(vii) For the
avoidance of doubt, the right of each holder of the Notes
underlying the aggregate Applicable Ownership Interests in Notes
that are components of Corporate Units and the Separate Notes, the
holders of which have elected to participate in any Remarketing, to
have such Notes remarketed and sold on any Remarketing Date shall
be subject to the conditions that (A) (1) the Remarketing
Agent(s) conducts an Early Remarketing, or (2) in the case of
a Final Remarketing, that no Successful Early Remarketing has
occurred, each pursuant to the terms of this Agreement, (B) a
Termination Event has not occurred prior to such Remarketing Date,
(C) the Remarketing Agent(s) is able to find a purchaser or
purchasers for such Notes at the applicable Remarketing Price based
on the Reset Rate, and (D) such purchaser or purchasers
deliver the purchase price therefor to the Remarketing Agent(s) as
and when required.
(c) The
Company will announce any Remarketing on the sixth Business Day
immediately preceding the first Remarketing Date of any Early
Remarketing Period. For the Final Remarketing Period, the Company
will announce the Remarketing on the third Business Day immediately
preceding the first Remarketing Date of the Final Remarketing
Period. Each such announcement (each, a “ Remarketing
Announcement ”) on each such date (each, a “
Remarketing Announcement Date ”) shall
specify:
(i) (A) if
the Remarketing Announcement relates to a Remarketing to occur
during an Early Remarketing Period, that the Notes may be
remarketed on any or all of the sixth, seventh or eighth Business
Days following the Remarketing Announcement Date, or (B) if
the Remarketing Announcement relates to a Remarketing to occur
during the Final Remarketing Period, that the Notes may be
remarketed on any or all of the third, fourth or fifth Business
Days following the Remarketing Announcement Date;
(ii) the “
Reset Effective Date, ” which (A) if the
Remarketing Announcement relates to a Remarketing to occur during
any Early
66
Remarketing
Period, shall mean the third Business Day following the date of a
Successful Remarketing, unless the Remarketing is successful within
five Business Days of the next succeeding Interest Payment Date on
the Notes in which case such Payment Date will be the Reset
Effective Date, or (B) if the Remarketing Announcement relates
to a Remarketing to occur during the Final Remarketing Period,
shall mean June 15, 2012 if there is a Successful
Remarketing;
(iii) that the
Reset Rate, Interest Payment Dates for the Notes, maturity date of
the Notes, optional redemption terms applicable to the Notes, if
any, and any modifications to the Events of Default for the Notes
(as defined in the Supplemental Indenture), if any, will be
established on the date of the Successful Remarketing and effective
on and after the Reset Effective Date and that, upon a Successful
Remarketing, the ranking of the Notes will change such that the
Notes will rank equally with all of the Company’s existing
and future unsecured and unsubordinated obligations and the
interest deferral provisions of the Notes will be
removed.
(iv) (A) if
the Remarketing Announcement relates to a Remarketing to occur
during the Early Remarketing Period, that the Reset Rate will equal
the Coupon Rate that will enable the Notes to be remarketed at a
price equal to the sum of the Remarketing Treasury Portfolio
Purchase Price and the Separate Notes Purchase Price and, at the
Company’s option, the applicable Remarketing Fee, or
(B) if the Remarketing Announcement relates to a Remarketing
to occur during the Final Remarketing Period, that the Reset Rate
will equal the Coupon Rate that will enable the Notes to be
remarketed at a price equal to 100% of their aggregate principal
amount, plus all accrued and unpaid Deferred Interest (including
compounded interest thereon), if any, on the Notes being
remarketed, plus, at the Company’s option, the applicable
Remarketing Fee; and
(v) the range of
possible Remarketing Fees.
The Company will
cause each Remarketing Announcement to be published on the
Remarketing Announcement Date by making a timely release to any
appropriate news agency, including Bloomberg Business News and the
Dow Jones News Service. In addition, the Company will request, not
later than 10 Business Days prior to each Remarketing Announcement
Date, that the Depositary notify its participants holding Notes,
Corporate Units and Treasury Units of the Remarketing. If required,
the Company will use its commercially reasonable efforts to ensure
that a Registration Statement with respect to the full principal
amount of the Notes to be remarketed is effective such that the
Remarketing Agent(s) may rely on it in connection with the
Remarketing process. If a Successful Remarketing occurs on a
Remarketing Date, the Company will request the Depositary to notify
its participants holding Notes of the Reset Rate,
67
interest
payment dates, maturity date, ranking, optional redemption terms
established, if any, and any modifications to the Events of Default
for the Notes (as defined in the Supplemental Indenture), if any,
for the Notes during the Remarketing on the Business Day following
the date of the Successful Remarketing. If there is a Failed
Remarketing, the Company will cause a notice of the unsuccessful
Remarketing to be published on the Business Day following the
Applicable Remarketing Period (which notice, in the event of a
Failed Final Remarketing, shall be published not later than 9:00
a.m., New York City time, and shall include the procedures that
must be followed if a Holder of Notes wishes to exercise its Put
Right), in each case, by making a timely release to any appropriate
news agency, including Bloomberg Business News and the Dow Jones
News Service.
(d) Prior to
4:00 p.m. (New York City time) on the second Business Day
immediately preceding the first day of the Applicable Remarketing
Period, but no earlier than the fifth Business Day immediately
preceding such date, holders of Separate Notes may elect to have
their Separate Notes remarketed in all Remarketings to occur in the
Applicable Remarketing Period under the Remarketing Agreement by
delivering their Separate Notes, along with a notice of such
election, substantially in the form of Exhibit K attached
hereto, to the Custodial Agent. After such time, such election
shall become an irrevocable election to have such Separate Notes
remarketed in all Remarketings to occur in the Applicable
Remarketing Period. The Custodial Agent shall hold the Separate
Notes in an account separate from the Collateral Account in which
the Notes underlying the Pledged Applicable Ownership Interests in
Notes shall be held. Holders of Separate Notes electing to have
their Separate Notes remarketed will also have the right to
withdraw that election by written notice to the Custodial Agent,
substantially in the form of Exhibit L hereto, on or prior to
4:00 p.m. (New York City time) on the second Business Day
immediately preceding the first day of the Early Remarketing
Period, and following such notice the Custodial Agent shall return
such Separate Notes to such holder.
(e) The
Company agrees to use its commercially reasonable efforts to ensure
that, if required by applicable law, a registration statement,
including a prospectus, under the Securities Act with regard to the
full amount of the Notes to be remarketed in each Remarketing in
each case in a form that may be used by the Remarketing Agent(s) in
connection with such Remarketing shall be effective with the
Securities and Exchange Commission.
(f) In the
case of a Treasury Unit or a Corporate Unit (if Applicable
Ownership Interests in the Treasury Portfolio have replaced the
Applicable Ownership Interests in Notes as a component of such
Corporate Unit), if the Pledged Treasury Securities or the
appropriate Pledged Applicable Ownership Interests in the Treasury
Portfolio held by the Securities Intermediary mature during the
period from, and including, the fifth Business Day immediately
preceding the Purchase Contract Settlement Date to, and including,
the Business Day immediately preceding the Purchase Contract
Settlement Date, the principal
68
amount of the
Treasury Securities or the appropriate Pledged Applicable Ownership
Interests in the Treasury Portfolio received by the Securities
Intermediary shall be invested promptly in Permitted Investments of
the type described in clause (6) of the definition of
Permitted Investments, which have been designated by the Company in
writing from time to time in a standing instruction to the
Securities Intermediary which shall be effective until revoked or
superseded. On the Purchase Contract Settlement Date, an amount
equal to the Purchase Price, less the amount of any deferred
Contract Adjustment Payments (including Compounded Contract
Adjustment Payments thereon) payable to such Holders, for all
related Purchase Contracts shall be remitted to the Company as
payment of such Holder’s Obligations under such Purchase
Contracts without receiving any instructions from the Holder. In
the event the sum of the Proceeds from either the related Pledged
Treasury Securities or the related Pledged Applicable Ownership
Interests in the Treasury Portfolio and the Proceeds from such
Permitted Investments is in excess of the aggregate Purchase Price,
less the amount of any deferred Contract Adjustment Payments
(including Compounded Contract Adjustment Payments thereon) payable
to such Holders, the Collateral Agent shall cause the Securities
Intermediary to distribute such excess, when received by the
Securities Intermediary, to the Purchase Contract Agent for the
benefit of the Holder of the related Treasury Units or Corporate
Units, as applicable.
(g) The
obligations of the Holders to pay the Purchase Price are
non-recourse obligations and, except to the extent satisfied by
Early Settlement, Fundamental Change Early Settlement or Cash
Settlement or terminated upon a Termination Event, are payable
solely out of the proceeds of any Collateral pledged to secure the
obligations of the Holders, and in no event will Holders be liable
for any deficiency between the proceeds of the disposition of
Collateral and the Purchase Price.
Section 5.04
. Issuance of Shares of Common Stock. Unless a Termination
Event, an Early Settlement or a Fundamental Change Early Settlement
shall have occurred, subject to Section 5.05(b), on the Purchase
Contract Settlement Date upon receipt of the aggregate Purchase
Price payable on all Outstanding Units in accordance with
Section 5.03 above, the Company shall issue and deposit with
the Purchase Contract Agent, for the benefit of the Holders of the
Outstanding Units, one or more certificates representing newly
issued shares of Common Stock registered in the name of the
Purchase Contract Agent (or its nominee) as custodian for the
Holders (such certificates for shares of Common Stock, together
with any dividends or distributions for which a record date and
payment date for such dividend or distribution has occurred after
the Purchase Contract Settlement Date, being hereinafter referred
to as the “ Purchase Contract Settlement Fund ”)
to which the Holders are entitled hereunder.
Subject to the
foregoing, upon surrender of a Certificate to the Purchase Contract
Agent on or after the Purchase Contract Settlement Date, Early
Settlement Date or Fundamental Change Early Settlement Date, as the
case may
69
be, together
with settlement instructions thereon duly completed and executed,
the Holder of such Certificate shall be entitled to receive
forthwith in exchange therefor a certificate representing that
number of newly issued whole shares of Common Stock which such
Holder is entitled to receive pursuant to the provisions of this
Article 5 (after taking into account all Units then held by
such Holder), together with cash in lieu of fractional shares as
provided in Section 5.09 and any dividends or distributions
with respect to such shares constituting part of the Purchase
Contract Settlement Fund, but without any interest thereon, and the
Certificate so surrendered shall forthwith be cancelled. Such
shares shall be registered in the name of the Holder or the
Holder’s designee as specified in the settlement instructions
provided by the Holder to the Purchase Contract Agent. If any
shares of Common Stock issued in respect of a Purchase Contract are
to be registered in the name of a Person other than the Person in
whose name the Certificate evidencing such Purchase Contract is
registered (but excluding any Depositary or nominee thereof), no
such registration shall be made unless and until the Person
requesting such registration has paid any transfer and other taxes
(including any applicable stamp taxes) required by reason of such
registration in a name other than that of the registered Holder of
the Certificate evidencing such Purchase Contract or has
established to the satisfaction of the Company that such tax either
has been paid or is not payable.
Section 5.05
. Adjustment of each Fixed Settlement Rate. (a) Each
Fixed Settlement Rate shall be adjusted (without duplication) if
certain events occur:
(i) In the event
of an issuance of Common Stock as a dividend or other distribution
to all holders of the Common Stock or as a result of a subdivision
or combination of the Common Stock, each Fixed Settlement Rate in
effect at the opening of business on the record date for such
dividend or other distribution shall be adjusted based on the
following formula:
SR
1
=SR
0
X (OS
1
/ OS
0
)
|
|
|
|
|
|
|
|
|
=
|
|
the Fixed
Settlement Rate in effect immediately prior to the close of
business on the record date for such dividend or distribution or
immediately prior to the open of business on the effective date for
such subdivision or combination, as the case may be;
|
|
|
|
|
|
|
|
|
|
=
|
|
the Fixed
Settlement Rate in effect immediately after the close of business
on such record date or such effective date, as the case may
be;
|
|
|
|
|
|
|
|
|
|
=
|
|
the number of
shares of Common Stock outstanding immediately prior to the close
of business on such record date
|
70
|
|
|
|
|
|
|
|
|
|
|
or such
effective date, as the case may be, in each case, prior to giving
effect to such event; and
|
|
|
|
|
|
|
|
|
|
=
|
|
the number of
shares of Common Stock that would be outstanding immediately after,
and solely as a result of, such event.
|
Such adjustment
shall become effective immediately after the close of business on
the record date for such dividend or distribution, or immediately
after the open of business on the effective date for such
subdivision or combination. If any dividend or distribution of the
type described in this Section 5.05(a)(i) is declared but not
so paid or made, or the outstanding shares of Common Stock are not
subdivided or combined, as the case may be, the Fixed Settlement
Rates shall be immediately readjusted, effective as of the date the
Board of Directors determines not to pay such dividend or
distribution, or subdivided or combine the outstanding shares of
Common Stock, as the case may be, to the Fixed Settlement Rates
that would then be in effect if such dividend, distribution,
subdivision or combination had not been declared or
announced.
(ii) In
the event of an issuance to all holders of the Common Stock rights,
options or warrants (other than pursuant to any dividend
reinvestment or share purchase plans) entitling them to subscribe
for or purchase shares of Common Stock for a period expiring
45 days or less from the date of issuance of such rights,
options or warrants at a price per share of Common Stock less than
the Current Market Price on the record date for such issuance, each
Fixed Settlement Rate shall be increased based on the following
formula:
SR
1
= SR
0
X (OS
0
+X) / (OS
0
+Y)
|
|
|
|
|
|
|
|
|
=
|
|
the Fixed
Settlement Rate in effect immediately prior to the close of
business on the record date for such issuance;
|
|
|
|
|
|
|
|
|
|
=
|
|
the Fixed
Settlement Rate in effect immediately after the close of business
on such record date;
|
|
|
|
|
|
|
|
|
|
=
|
|
the number of
shares of Common Stock outstanding immediately prior to the close
of business on the record date for such issuance;
|
|
|
|
|
|
|
|
|
|
=
|
|
the total
number of shares of Common Stock issuable pursuant to such rights,
options or warrants; and
|
71
|
|
|
|
|
|
|
|
|
=
|
|
the aggregate
price payable to exercise such rights, options or warrants
divided by the average of the Closing Price of the Common
Stock over each of the ten consecutive Trading Days immediately
preceding, but excluding, the announcement of the issuance of such
rights, options or warrants.
|
Such adjustment
shall be successively made whenever any such rights, options or
warrants are distributed and shall become effective immediately
after the close of business on the record date for such dividend or
distribution. The Company shall not issue any such rights, options
or warrants in respect of shares of the Common Stock held in
treasury by the Company. To the extent that shares of the Common
Stock are not delivered after the expiration of such rights,
options or warrants, the Fixed Settlement Rates shall be readjusted
to the Fixed Settlement Rates that would then be in effect had the
adjustments made upon the issuance of such rights, options or
warrants been made on the basis of delivery of only the number of
shares of Common Stock actually delivered. If such rights, options
or warrants are not so issued, the Fixed Settlement Rates shall
again be adjusted to be the Fixed Settlement Rates that would then
be in effect if such record date for such dividend or distribution
had not occurred.
In determining
whether any rights, options or warrants entitle the holders to
subscribe for or purchase shares of the Common Stock at less than
the average of the Closing Price of the Common Stock over each of
the ten (10) Trading Days immediately preceding, but
excluding, the announcement of the relevant issuance of rights,
options or warrants, there shall be taken into account any
consideration received by the Company for such rights, options or
warrants and any amount payable on exercise or conversion thereof,
the value of such consideration, if other than cash, to be
determined by the Board of Directors. In no event shall the Fixed
Settlement Rates be decreased pursuant to this
Section 5.05(a)(ii).
(iii) (1) In
the event of a dividend or distribution to all holders of Common
Stock of shares of Company’s capital stock (other than Common
Stock), rights to acquire the Company’s capital stock or
evidences of its indebtedness or the Company’s assets
(excluding any dividend, distribution or issuance referred to in
paragraph (a)(i) of this Section 5.05, any rights, options,
warrants or other securities referred to in paragraph (a)(ii) of
this Section 5.05, any dividend or distribution paid
exclusively in cash referred to in paragraph (a)(iv) of this
Section 5.05, and any dividend, shares of capital stock of any
class or series, or similar equity interests, of or relating to a
subsidiary or other business unit in the case of a Spin-Off
referred to in the next subparagraph), each Fixed Settlement Rate
shall be increased based on the following formula:
72
SR
1
= SR
0
x SP
0
/ (SP
0
- FMV)
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=
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the Fixed
Settlement Rate in effect immediately prior to the close of
business on the record date for such dividend or
distribution;
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=
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the Fixed
Settlement Rate in effect immediately after the close of business
on such record date;
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=
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the Current
Market Price of the Common Stock as of the record date for such
dividend or distribution; and
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=
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the fair market
value (as determined in good faith by the Board of Directors, whose
good faith determination will be conclusive), on the record date
for such dividend or distribution, of the shares of capital stock,
rights to acquire capital stock, evidences of indebtedness or
assets so distributed, expressed as an amount per share of Common
Stock.
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Such adjustment
shall become effective immediately after to the close of business
on the record date for such distribution; provided that if
“FMV” as set forth above is equal to or greater than
“SP 0
” as set forth above, in lieu
of the foregoing adjustment, adequate provision shall be made so
that each Holder of Units shall receive on the date on which such
shares of the Company’s capital stock, rights to acquire the
Company’s capital stock, evidences of its indebtedness or the
Company’s assets are distributed to holders of Common Stock,
for each $50 Stated Amount of Units, the amount of such securities
or assets such Holder of Units would have received had such Holder
owned a number of shares of Common Stock equal to the Maximum
Settlement Rate on the record date for such distribution. If such
distribution is not so paid or made, the Fixed Settlement Rates
shall again be adjusted to be the Fixed Settlement Rates that would
then be in effect if such distribution had not been declared. If
the Board of Directors determines “FMV” for purposes of
this Section 5.05(a)(iii) by reference to the actual or when
issued trading market for any securities, it must in doing so
consider the prices in such market over the same period used in
computing the Current Market Price.
(2) In the case of
a Spin-Off, each Fixed Settlement Rate will be increased based upon
the following formula:
SR
1
=SR
0
x (FMV
0
+ MP
0
) / MP
0
73
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=
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the Fixed
Settlement Rate in effect immediately prior to the end of the
Valuation Period (as defined below);
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=
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the Fixed
Settlement Rate in effect immediately after the end of the
Valuation Period;
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=
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the average of
the Closing Price of the capital stock or similar equity interests
distributed to holders of the Common Stock applicable to one share
of the Common Stock over each of the 10 consecutive Trading Days
commencing on, and including, the third Trading Day immediately
following the ex-dividend date for such dividend or distribution
with respect to the Common Stock on the New York Stock Exchange or
such other U.S. national or regional exchange or market that is at
that time the principal exchange or market for the Common Stock
(the “ Valuation Period ”); and
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=
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the average of
the Closing Price of the Common Stock over the Valuation
Period.
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The adjustment to
each Fixed Settlement Rate under this subparagraph will occur on
the last day of the Valuation Period; provided that if a
Holder of Units elects to early settle the Purchase Contracts, or
the Purchase Contract Settlement Date occurs, in either case,
during the Valuation Period, references with respect to 10 Trading
Days shall be deemed replaced with such lesser number of Trading
Days as have elapsed between the ex-dividend date of such Spin-Off
and the date on which such holder elected its Early Settlement
right, or the Business Day immediately preceding the
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