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As filed with the Securities and Exchange Commission on June 16, 2011.
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM S-3
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
AASTROM BIOSCIENCES, INC.
(Exact name of registrant as specified in its charter)
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Michigan
(State or other jurisdiction of
incorporation or organization)
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94-3096597
(I.R.S. Employer Identification
Number) |
24 Frank Lloyd Wright Drive
P.O. Box 376
Ann Arbor, Michigan 48106
(734) 418-4400
(Address, including zip code, and telephone number, including area code, of registrants principal executive offices)
Timothy M. Mayleben
President and Chief Executive Officer
Aastrom Biosciences, Inc.
P.O. Box 376
Ann Arbor, Michigan 48106
(734) 418-4400
(Name, address, including zip code, and telephone number, including area code, of agent for service)
With copies to:
Mitchell S. Bloom
Danielle M. Lauzon
Goodwin Procter LLP
Exchange Place
Boston, Massachusetts 02109
Telephone: (617) 570-1000
Facsimile: (617) 523-1231
Approximate date of commencement of proposed sale to the public: From time to time after this
Registration Statement becomes effective.
If the only securities being registered on this form are being offered pursuant to dividend or
interest reinvestment plans, please check the following
box. o
If any of the securities being registered on this Form are to be offered on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in
connection with dividend or interest reinvestment plans, check the following box: þ
If this form is filed to register additional securities for an offering pursuant to Rule 462(b)
under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. o
If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. o
If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective
amendment thereto that shall become effective upon filing with the Commission pursuant to Rule
462(e) under the Securities Act, check the following box. o
If this Form is a post-effective amendment to a registration statement filed pursuant to General
Instruction I.D. filed to register additional securities or additional classes of securities
pursuant to Rule 413(b) under the Securities Act, check the following box. o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large
accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act. (Check one):
Large accelerated filer o |
Accelerated filer o |
Non-accelerated filer o
(Do not check if a smaller reporting company) |
Smaller reporting company þ |
CALCULATION OF REGISTRATION FEE
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Proposed |
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Proposed |
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Amount |
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Maximum |
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Maximum |
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Title of Each Class of |
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to be |
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Offering Price |
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Aggregate |
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Amount of |
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Securities to be Registered |
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Registered (1) |
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Per Unit (2) |
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Offering Price (3) |
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Registration Fee (4) |
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Common Stock (5) |
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Preferred Stock (6) |
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Debt Securities (7) |
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Warrants (8) |
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Units (9) |
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Total |
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$ |
100,000,000 |
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N.A. |
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$ |
100,000,000 |
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$ |
11,610 |
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(1) |
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The amount to be registered consists of up to $100,000,000 of an indeterminate amount of common
stock, preferred stock, debt securities, warrants and/or units. There is also being registered
hereunder such currently indeterminate number of (i) shares of common stock or other securities
of the registrant as may be issued upon conversion of, or in exchange for, convertible or
exchangeable debt securities and/or preferred stock registered hereby, or (ii) shares of
preferred stock or common stock or debt securities or units as may be issued upon exercise of
warrants registered hereby, as the case may be. Any securities registered hereunder may be sold
separately or as units with the other securities registered hereunder. |
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The proposed maximum aggregate offering price per unit will be determined from time to time by
the registrant in connection with the issuance by the registrant of the securities registered
hereunder and is not specified as to each class of security pursuant to General Instruction
II.D. of Form S-3 under the Securities Act. |
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Estimated solely for purposes of computing the registration fee. No separate consideration will
be received for (i) common stock or other securities of the registrant that may be issued upon
conversion of, or in exchange for, convertible or exchangeable debt securities and/or preferred
stock registered hereby, or (ii) preferred stock, common stock, debt securities or units that
may be issued upon exercise of warrants registered hereby, as the case may be. |
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The registration fee has been calculated in accordance with Rule 457(o) under the Securities Act. |
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Including such indeterminate amount of common stock as may be issued from time to time at
indeterminate prices or upon conversion of debt securities and/or preferred stock registered
hereby, or upon exercise of warrants registered hereby, as the case may be. |
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Including such indeterminate amount of preferred stock as may be issued from time to time at
indeterminate prices or upon conversion of debt securities and/or preferred stock registered
hereby, or upon exercise of warrants registered hereby, as the case may be. |
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Including such indeterminate principal amount of debt securities as may be issued from time to
time at indeterminate prices or upon exercise of warrants registered hereby, as the case may be. |
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Including such indeterminate number of warrants or other rights, including without limitation
share purchase or subscription rights, as may be issued from time to time at indeterminate
prices. |
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Each unit will be issued under a unit agreement and will represent an interest in two or more
securities, which may be or may not be separable from one another. |
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY
TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY
STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.
The information in this prospectus is not complete and may be changed. We may not sell these
securities until the registration statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these securities and we are not soliciting
offers to buy these securities in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED JUNE 16, 2011.
PROSPECTUS
$100,000,000
AASTROM BIOSCIENCES, INC.
Common Stock
Preferred Stock
Debt Securities
Warrants
Units
We may from time to time issue, in one or more series or classes, up to $100,000,000 in
aggregate principal amount of our common stock, preferred stock, debt securities, warrants and/or
units. We may offer these securities separately or together in units. We will specify in the
accompanying prospectus supplement the terms of the securities being offered. We may sell these
securities to or through underwriters and also to other purchasers or through agents. We will set
forth the names of any underwriters or agents, and any fees, conversions, or discount arrangements,
in the accompanying prospectus supplement. We may not sell any securities under this prospectus
without delivery of the applicable prospectus supplement.
You should read this document and any prospectus supplement or amendment carefully before you
invest.
Our common stock is traded on the Nasdaq Capital Market under the symbol ASTM. On June 15,
2011, the closing price for our common stock was $2.52 per share.
Investing in our securities involves a high degree of risk. You should review carefully the
risks and uncertainties described under the heading Risk Factors contained in this prospectus
beginning on page 10 and any applicable prospectus supplement, and under similar headings in the
other documents that are incorporated by reference into this prospectus.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.
The date of this Prospectus is , 201 .
TABLE OF CONTENTS
You may rely only on the information provided or incorporated by reference in this prospectus.
We have not authorized anyone to provide information different from that contained in this
prospectus. Neither the delivery of this prospectus nor the sale of the securities means that the
information contained in this prospectus is correct after the date of this prospectus. This
prospectus is not an offer to sell or solicitation to buy the securities in any circumstances under
which the offer or solicitation is unlawful.
PROSPECTUS SUMMARY
The following summary highlights information contained elsewhere in this prospectus. It may
not contain all of the information that is important to you. You should read the entire prospectus
carefully, especially the discussion regarding the risks of investing in our securities under the
heading Risk Factors, before investing in our securities. In this prospectus, Aastrom, we,
us, and our refer to Aastrom Biosciences, Inc. Please refer to our Glossary at the end of this
Prospectus for certain industry-specific and technical definitions.
Business
Overview
We were incorporated in 1989 and are developing expanded patient specific mixed cellular
therapies for use in the treatment of severe, chronic ischemic cardiovascular diseases.
Ixmyelocel-T (the new generic name for our cell therapy approved in March 2011) is a disease
modifying therapy with multi-functional properties including: tissue remodeling, immuno-modulation
and the promotion of angiogenesis, which is targeted to address the multiple underlying causes of
many severe, chronic cardiovascular diseases such as critical limb ischemia (CLI). Our proprietary
cell-manufacturing technology enables the manufacture of cell therapies expanded from a patients
own bone marrow and delivered directly to damaged tissues. Preclinical and interim clinical data
suggest that ixmyelocel-T may be effective in treating patients with severe, chronic ischemic
cardiovascular diseases such as CLI. Preliminary data utilizing ixmyelocel-T in dilated
cardiomyopathy (DCM) have also shown safety as well as provided indications of efficacy. Nearly
200 patients have been treated in recent clinical trials using ixmyelocel-T (over 400 patients
safely treated since our inception) with no treatment related serious adverse events.
Our technology is a patient specific, expanded multi-functional cell therapy developed using our
proprietary, automated processing system to produce human cell products for clinical use. The
Aastrom process enhances bone marrow mononuclear cells by expanding the mesenchymal stromal cells
and alternatively activated macrophages while retaining many of the hematopoietic cells. The
manufacture of our expanded, patient specific cell therapies is done under current Good
Manufacturing Practices (cGMP) and current Good Tissue Practices (cGTP) guidelines required by the
U.S. Food and Drug Administration (FDA).
Our expanded, patient specific multi-functional cellular therapies have several features that we
believe are critical for success in treating patients with severe, chronic cardiovascular diseases:
Safe our bone marrow-derived, expanded, patient specific cellular therapy leverages decades of
scientific and medical experience, as bone marrow and bone marrow-like therapies have been used
safely and efficaciously in medicine for over three decades.
Autologous (patient specific) we start with the patients own cells, which are accepted by the
patients immune system allowing the cells to differentiate and integrate into existing functional
tissues, and we believe provides long-term engraftment and repair.
Expanded we begin with a small amount of bone marrow from a patient (approximately 50 ml) and
significantly expand the number of certain cell types, primarily CD90+ mesenchymal cells, CD14+
monocytes and alternatively activated macrophages to far more than are present in the patients own
bone marrow (up to 300 times the number of these cells compared with the starting bone marrow
aspirate).
A mixture of cell types we believe our proprietary mixture of cell types, which are normally
found in bone marrow, but in different quantities, possess multiple activities required for tissue
remodeling, immuno-modulation and the promotion of angiogenesis.
Minimally invasive our procedure for taking bone marrow (an aspirate) can be performed in an
out-patient setting and takes approximately 15 minutes. For diseases such as CLI, the
administration of our therapy can be performed in an out-patient setting in a one-time,
approximately 20 minute procedure. We are also pursuing a minimally invasive approach to cell
delivery in other severe, chronic ischemic cardiovascular diseases such as DCM.
Our cell therapies are produced at our cell manufacturing facility in the United States, located at
our headquarters in Ann Arbor, Michigan.
Clinical Development Programs
Our clinical development programs are focused on advancing therapies for unmet medical needs
in severe, chronic ischemic cardiovascular diseases. We have completed our Phase 2b
clinical trial in CLI and we expect it to advance to a Phase 3 development program in 2011. Our
CLI development program has received Fast Track Designation from the FDA. Our DCM program is in
early Phase 2 clinical development and is focused on achieving proof of concept in this indication.
Our DCM development program has received Orphan Disease Designation from the FDA.
Results to date in our clinical trials may not be indicative of results obtained from
subsequent patients enrolled in those trials or from future clinical trials. Further, our future
clinical trials may not be successful or we may not be able to obtain the required Biologic License
Application (BLA) approval to commercialize our products in the United States in a timely fashion,
or at all. See Risk Factors contained in this prospectus beginning on page 10.
Critical Limb Ischemia
Background
CLI is the most serious and advanced stage of peripheral arterial disease (PAD). PAD is a
chronic atherosclerotic disease that progressively restricts blood flow in the limbs and can lead
to serious medical complications. This disease is often associated with other clinical conditions
including hypertension, cardiovascular disease, hyperlipidemia, diabetes, obesity and stroke. CLI
is used to describe patients with the most severe forms of PAD: those with chronic ischemia-induced
pain (even at rest), ulcers, tissue loss or gangrene in the limbs, often leading to amputation and
death. CLI leads to more than 160,000 amputations per year. The one-year and
four-year mortality rates for no-option CLI patients that progress to amputation are
approximately 25% and 70%, respectively. Our disease modifying therapy with multi-functional
properties has shown significant promise in the treatment of CLI.
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Clinical Programs
Our U.S. Phase 2b RESTORE-CLI
program was a multi-center, randomized, double-blind, placebo
controlled clinical trial. This clinical trial was designed to evaluate the safety and efficacy of
ixmyelocel-T in the treatment of patients with CLI. It was the largest multi-center, randomized,
double-blind, placebo-controlled cellular therapy study ever conducted in CLI patients. We
completed enrollment of this trial in February 2010 with a total of 86 patients at 18 sites across
the United States, with the last patient being treated in
March 2010. These patients were
followed for a period of 12 months following treatment. In addition to assessing the safety of our
product, efficacy endpoints include amputation-free survival, time to first occurrence of treatment
failure (defined as major amputation, all-cause mortality, doubling in wound size and de novo
gangrene), major amputation rates, level of amputation, complete wound healing, patient quality of
life and pain scores.
Results
to date include two planned interim analyses and a final top-line
analysis. In June 2010, we reported results at
the Society of Vascular Surgery Meeting. This interim analysis included the six month results for
46 patients enrolled in the trial. The results included the finding that amputation free survival,
defined as time to major amputation or death, was statistically significant in favor of our therapy
(p=0.038). Additionally, statistical analysis revealed a significant increase in time to treatment
failure (e.g., major amputation, doubling in wound size de novo gangrene, or death) (log-rank test,
p=0.0053). Other endpoints measured (e.g., major amputation rate, complete wound healing, change
in Wagner wound scale) showed encouraging trends, but had not reached statistical significance at
the interim analysis. The primary purpose of the interim analysis was to assess performance of our
therapy and, if positive, to help plan the Phase 3 program. In June 2010 we held discussions with
the FDA, which confirmed the appropriateness of using amputation free survival as a primary
endpoint for our planned Phase 3 program.
In
November 2010, we presented six-month data on all 86 patients enrolled in the trial at the
VEITHsymposium non-CME satellite session. Results of this analysis showed that the study achieved
both its primary safety endpoint and primary efficacy endpoint of time to first occurrence of
treatment failure. The findings related to time to first occurrence of treatment failure were
statistically significant (p=0.0132). Further analyses show a clinically meaningful reduction of
56% in treatment failure events. Analysis of the data for amputation-free survival, a secondary
endpoint which the study was not powered to demonstrate, showed a clinically meaningful reduction
in event rates of 24%, but did not show statistical significance (p=0.5541).
In
June 2011, we announced final top-line results from all 86 patients
enrolled in the trial. Results of this analysis showed that the trial
met its primary safety and efficacy endpoints, demonstrating a
statistically significant improvement in the time to first occurrence
of treatment failure at 12 months. We plan to present the full data
from the RESTORE-CLI trial at an appropriate medical meeting in the
fourth quarter of 2011.
We continue to make progress towards the Phase 3 clinical development program in CLI. In
October 2010, we announced that the FDA had granted Fast Track Designation for the use of our
multi-functional cellular therapy for the CLI indication. The Fast Track program is designed to
facilitate the development and expedite the review of new drugs and biologics, intended to treat
serious or life-threatening conditions that demonstrate the potential to address unmet medical
needs. During June 2010 discussions with the FDA, Aastrom was encouraged to use the Special
Protocol Assessment (SPA) process for the Phase 3 program. In October 2010, we
submitted two SPA requests to the FDA, one for a no option patient population and another
for a poor option patient population. The no option SPA request focuses on patients that have
exhausted all other treatment options with the exception of amputation. The poor option SPA
request focuses on patients that have not yet exhausted all other treatment options; however the
options available are associated with poor outcomes. We expect to have the no option and poor
option agreements on the SPAs completed in the third quarter of 2011.
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Dilated Cardiomyopathy
Background
DCM is a severe, chronic cardiovascular disease that leads to enlargement of the heart,
reducing the pumping function of the heart to the point that blood circulation is impaired.
Patients with DCM typically present with symptoms of congestive heart failure, including
limitations in physical activity and shortness of breath. There are two types of DCM: ischemic and
non-ischemic. Ischemic DCM, the most common form, is associated with atherosclerotic cardiovascular
disease. Among other causes, non-ischemic DCM can be triggered by toxin exposure, virus or genetic
diseases. Patient prognosis depends on the stage and cause of the disease but is typically
characterized by a high mortality rate. Other than heart transplantation or ventricular assist
devices, there are currently no effective treatment options for end-stage patients with this
disease. According to the book, Heart Failure: A Combined Medical and Surgical Approach (2007), DCM
affects 200,000-400,000 patients in the United States alone.
In February 2007, the FDA granted Orphan Drug Designation to our investigational therapy for
the treatment of DCM. Our DCM development program is currently in Phase 2 and we have two ongoing
U.S. Phase 2 trials investigating surgical and catheter-based delivery for our product in the
treatment of DCM.
Surgical Trial Program DCM
In May 2008, the FDA activated our investigational new drug application (IND) for surgical
delivery of our therapy. The 40-patient U.S. IMPACT-DCM clinical trial began with the treatment of
the first patient in November 2008. This multi-center, randomized, controlled, prospective,
open-label, Phase 2 study was designed to include 20 patients with ischemic DCM and 20 patients
with non-ischemic DCM. We completed enrollment of the 40 patients in the IMPACT-DCM clinical trial
in January 2010 and the final patient was treated in March 2010. Participants in the IMPACT-DCM
clinical trial were required to have New York Heart Association (NYHA) functional class III or IV
heart failure, a left ventricular ejection fraction (LVEF) of less than or equal to 30% (60-75% is
typical for a healthy person), and meet other eligibility criteria, including optimized medical
therapy. Patients were randomized in an approximate 3:1 ratio of treatment to control group.
Patients in the treatment group received our therapy through direct injection into the heart muscle
during minimally invasive-surgery (involving a chest incision of approximately 2 inches). The
primary objective of this study is to assess the safety of ixmyelocel-T in patients with DCM.
Efficacy measures include cardiac dimensions and tissue mass, cardiac function (e.g. cardiac
output, LVEF, cardiopulmonary exercise testing parameters), cardiac perfusion and viability, as
well as other efficacy endpoints.
NYHA functional class and quality of life are also assessed. Patients were followed for 12
months post-treatment.
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Six-month data from the IMPACT-DCM interim analysis were presented at The Sixth International
Conference on Cell Therapy for Cardiovascular Disease on January 20, 2011. Results indicated that
ixmyelocel-T is safe and showed that serious adverse events were associated with the surgical
procedure and not the cellular therapy. Adverse events after the initial peri-operative period
were roughly equal between the control and treatment groups. Efficacy findings include positive
trends in quality of life and functional and structural parameters in the treatment group as
compared with the control group. We expect to report 12-month data from the IMPACT-DCM clinical
study in the third quarter of 2011.
Catheter Trial Program DCM
In November 2009, the FDA activated our second IND to allow for the evaluation of our therapy
delivered by a percutaneous direct catheter injection as opposed to surgically. The Catheter-DCM
clinical trial is designed to explore catheter-based delivery of ixmyelocel-T to treat DCM
patients. This multi-center, randomized, controlled, prospective, open-label, Phase 2 study
enrolled approximately 11 patients with ischemic DCM and 10 patients with non-ischemic DCM at
clinical sites across the United States. Participants met the same criteria as stated above for the
IMPACT-DCM surgical trial. The first patient was enrolled into the trial in April 2010 and
enrollment concluded in December 2010 with 21 patients enrolled. We expect to report six-month
results from the Catheter-DCM Phase 2 trial in the third quarter of 2011.
Corporate Information
Aastrom was incorporated in 1989 under the laws of the State of Michigan. Our principal
executive offices are located at Dominos Farm, Lobby K, 24 Frank Lloyd Wright Drive, Ann Arbor,
Michigan 48105 and our mailing address is 24 Frank Lloyd Wright Drive, P.O. Box 376, Ann Arbor,
Michigan 48106. Our telephone number is (734) 418-4400. The address of our website is
www.aastrom.com. Information contained on or accessible through our website is not part of this
prospectus.
About this Prospectus
This prospectus is part of a registration statement that we filed with the Securities and
Exchange Commission, or the SEC, utilizing a shelf registration process. Under the shelf
registration process, we may offer shares of our common stock and preferred stock, various series
of debt securities, warrants to purchase any of such securities, and units comprised of any such
securities with a total value of up to $100,000,000 from time to time under this prospectus at
prices and on terms to be determined by market conditions at the time of offering. This prospectus
provides you with a general description of the securities we may offer. Each time we offer a type
or series of securities, we will provide a prospectus supplement that will describe the specific
amounts, prices and other important terms of the securities, including, to the extent applicable:
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designation or classification; |
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aggregate principal amount or aggregate offering price; |
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maturity; |
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original issue discount, if any; |
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rates and times of payment of interest, dividends or other payments, if any; |
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redemption, conversion, exchange, settlement or sinking fund terms, if any; |
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conversion, exchange or settlement prices or rates, if any, and, if applicable, any
provisions for changes to or adjustments in the conversion, exchange or settlement prices
or rates and in the securities or other property receivable upon conversion, exchange or
settlement; |
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ranking; |
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restrictive covenants, if any; |
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voting or other rights, if any; and |
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important federal income tax considerations. |
A prospectus supplement may include a discussion of risks or other special considerations
applicable to us or the offered securities. A prospectus supplement may also add, update or change
information in this prospectus. If there is any inconsistency between the information in this
prospectus and any applicable prospectus supplement, you must rely on the information in the
prospectus supplement. Please carefully read both this prospectus and any applicable prospectus
supplement together with the additional information described under the heading Where You Can Find
More Information.
The registration statement containing this prospectus, including exhibits to the registration
statement, provides additional information about us and the securities offered under this
prospectus. The registration statement can be read at the SECs website (www.sec.gov) or at the
SECs Public Reference Room mentioned under the heading Where You Can Find More Information.
We have not authorized any broker-dealer, salesperson or other person to give any information
or to make any representation other than those contained or incorporated by reference in this
prospectus and an accompanying supplement to this prospectus. You must not rely upon any
information or representation not contained or incorporated by reference in this prospectus or an
accompanying prospectus supplement. This prospectus and an accompanying supplement to this
prospectus do not constitute an offer to sell or the solicitation of an offer to buy securities,
nor do this prospectus and an accompanying supplement to this prospectus constitute an offer to
sell or the solicitation of an offer to buy securities in any jurisdiction to any person to whom it
is unlawful to make such offer or solicitation. The information contained in this prospectus and an
accompanying prospectus supplement speaks only as of the date set forth on the applicable cover
page and may not reflect subsequent changes in our business, financial condition, results of
operations and prospects even though this prospectus and any accompanying prospectus supplement is
delivered or securities are sold on a later date.
6
We may sell the securities directly to or through underwriters, dealers or agents. We, and our
underwriters or agents, reserve the right to accept or reject all or part of any proposed purchase
of securities. If we do offer securities through underwriters, dealers or agents, we will include
in any applicable prospectus supplement:
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the names of those underwriters, dealers or agents; |
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applicable fees, discounts and commissions to be paid to them; |
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details regarding over-allotment options, if any; and |
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the net proceeds to us. |
Common Stock
As discussed below under the heading The Securities We May Offer, we may issue shares of our
common stock from time to time. Holders of our common stock are entitled to one vote for each share
held of record on all matters submitted to a vote of shareholders. We do not have a classified
board of directors and shareholders do not have cumulative voting rights. Holders of common stock
have no preemptive, redemption or conversion rights and are not subject to future calls or
assessments. No sinking fund provisions apply to our common stock. All outstanding shares are
fully-paid and non-assessable. In the event of our liquidation, dissolution or winding up, holders
of common stock are entitled to share ratably in assets available for distribution, subject to any
prior distribution rights of any preferred stock then outstanding. Holders of common stock are
entitled to receive proportionately any such dividends declared by our board of directors, or our
Board, out of legally available funds for dividends, subject to any preferences that may be
applicable to any shares of preferred stock that may be outstanding at that time. The rights,
preferences and privileges of holders of common stock are set forth in our Restated Articles of
Incorporation, as amended, or the Charter, which may be amended by the holders of a majority of the
outstanding shares of common stock.
Preferred Stock
As discussed below under the heading The Securities We May Offer, we may issue shares of our
preferred stock from time to time, in one or more series. Under our Charter, our Board has the
authority, without further action by shareholders, to designate up to 5,000,000 shares of preferred
stock in one or more series and to fix the designations, powers, preferences and the relative,
participating, optional or other special rights of the shares of each series and any qualification,
limitations and restrictions thereon, any or all of which may be greater than the rights of our
common stock.
If we issue preferred stock, we will fix the designations, powers, preferences and the
relative, participating, optional or other special rights, and any qualification, limitations and
restrictions of the shares of each series that we sell under this prospectus and applicable
prospectus supplements in the certificate of designations relating to that series. If we issue
preferred stock, we will incorporate by reference into the registration statement of which this
prospectus is a part the form of any certificate of designations that describes the terms of such
series of preferred stock before the issuance thereof. We urge you to read any prospectus
supplement related to any series of preferred stock we may offer, as well as the complete
certificate of designations that contains the terms of the applicable series of preferred stock.
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Debt Securities
As discussed below under the heading The Securities We May Offer, we may issue debt securities
from time to time, in one or more series, as either senior or subordinated debt or as senior or
subordinated convertible debt. Unless we give you different information in the applicable
prospectus supplement, (i) the debt securities will be unsecured, (ii) the senior debt securities
will be unsubordinated obligations and will rank equally with all of our other unsecured and
unsubordinated indebtedness, and (iii) the subordinated debt securities will be subordinate and
junior in right of payment, to the extent and in the manner described in the instrument governing
the debt, to all or some portion of our indebtedness. Any convertible debt securities that we issue
will be convertible into or exchangeable for our common stock or other securities of ours.
Conversion may be mandatory or at your option and would be at prescribed conversion rates.
If we issue debt securities, they will be issued under one or more documents called
indentures, which are contracts between us and a trustee for the holders of the debt securities. We
urge you to read any prospectus supplement related to the series of debt securities being offered,
as well as the complete indenture that contains the terms of the debt securities. If we issue debt
securities, indentures and forms of debt securities containing the terms of such debt securities
will be incorporated by reference into the registration statement of which this prospectus is a
part from other filings we would make with the SEC.
Warrants
As discussed below under the heading The Securities We May Offer, we may issue warrants for the
purchase of common stock, preferred stock, debt securities and/or units (as described below) in one
or more series, from time to time. We may issue warrants independently or together with common
stock, preferred stock and/or debt securities, and the warrants may be attached to or separate from
those securities.
If we issue warrants, they will be evidenced by warrant agreements or warrant certificates
issued under one or more warrant agreements, which are contracts between us and an agent for the
holders of the warrants. We urge you to read any prospectus supplement related to any series of
warrants we may offer, as well as the complete warrant agreement and warrant certificate that
contain the terms of the warrants. If we issue warrants, forms of warrant agreements and warrant
certificates relating to such warrants will be incorporated by reference into the registration
statement of which this prospectus is a part from other filings we would make with the SEC.
Units
As discussed below under the heading The Securities We May Offer, we may issue units comprised
of shares of common stock, shares of preferred stock, debt securities and warrants in any
combination. We may issue units in such amounts and in as many distinct series as we wish.
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If we issue units, they will be issued under one or more unit agreements to be entered into
between us and a bank or other financial institution, as unit agent. We urge you to read any
prospectus supplement related to any series of units we may offer, as well as the complete unit
agreement and unit certificate that contain the terms of the units. If we issue units, forms of
unit agreements and unit certificates relating to such units will be incorporated by reference into
the registration statement of which this prospectus is a part from other filings we would make with
the SEC.
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RISK FACTORS
Investing in our securities involves a high degree of risk. You should carefully consider the risks
described below and in the documents incorporated by reference in this prospectus and any
prospectus supplement, as well as other information we include or incorporate by reference into
this prospectus and any applicable prospectus supplement, before making an investment decision. Our
business, financial condition or results of operations could be materially adversely affected by
the materialization of any of these risks. The trading price of our securities could decline due to
the materialization of any of these risks, and you may lose all or part of your investment. This
prospectus and the documents incorporated herein by reference also contain forward-looking
statements that involve risks and uncertainties. Actual results could differ materially from those
anticipated in these forward-looking statements as a result of certain factors, including the risks
described below and in the documents incorporated herein by reference, including (i) our Transition
Report on Form 10-KT for the transition period from July 1, 2010 to December 31, 2010, (ii) our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and (iii) other documents we
file with the SEC that are deemed incorporated by reference into this prospectus.
Risks Related to our Business
Our past losses and expected future losses cast doubt on our ability to operate profitably.
We were incorporated in 1989 and have experienced substantial operating losses since
inception. As of March 31, 2011, we have incurred a cumulative net loss totaling approximately
$226,200,000, and we have continued to incur losses since that date. These losses have resulted
principally from costs incurred in the research and development (including clinical trials) of our
cell culture technologies and our cell manufacturing system, general and administrative expenses,
and the prosecution of patent applications. We expect to continue to incur significant operating
losses over the next several years and at least until, and probably after, product sales increase,
primarily owing to our research and development programs, including preclinical studies and
clinical trials, and the establishment of marketing and distribution capabilities necessary to
support commercialization efforts for our products. We cannot predict with any certainty the amount
of future losses. Our ability to achieve profitability will depend, among other things, on
successfully completing the development of our product candidates, timely initiation and completion
of clinical trials, obtaining regulatory approvals, establishing manufacturing, sales and marketing
arrangements with third parties, maintaining supplies of key manufacturing components, acquisition
and development of complementary activities and raising sufficient cash to fund our operating
activities. Therefore, we may not be able to achieve or sustain profitability.
We may not be able to raise the required capital to conduct our operations and develop and
commercialize our products.
We will require substantial additional capital resources in order to conduct our operations,
complete our product development programs, complete our clinical trials needed to market our
products (including a Phase 3 clinical trial for CLI), and commercialize these
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products and cell manufacturing facilities. In order to grow and expand our business, to
introduce our new product candidates into the marketplace and to acquire or develop complementary
business activities, we will need to raise a significant amount of additional funds. We will also
need significant additional funds or a collaborative partner, or both, to finance the research and
development activities of our cell product candidates for additional indications. Accordingly, we
are continuing to pursue additional sources of financing.
Our future capital requirements will depend upon many factors, including:
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continued scientific progress in our research, clinical and development
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costs and timing of conducting clinical trials and seeking regulatory approvals; |
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competing technological and market developments; |
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avoiding infringement and misappropriation of third-party intellectual property; |
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obtaining valid and enforceable patents that give us a competitive advantage; |
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our ability to establish additional collaborative relationships; |
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our ability to effectively launch a commercial product; |
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the effect of commercialization activities and facility expansions, if and as
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complementary business acquisition or development opportunities. |
In November 2010, we terminated the common stock purchase agreement with Fusion Capital Fund
II entered into in June 2009. As a result, we no longer have access to the potential funding from
Fusion Capital under that agreement. However, we believe that with our existing cash and cash
equivalents we will have adequate liquidity to finance our operations, including development of our
products and product candidates, through at least December 31, 2011. Absent receipt of proceeds
from an equity offering or otherwise, we believe we will have adequate liquidity to finance our
operations through at least December 31, 2011. While our budgeted cash usage and operating plan
through December 31, 2011 does not currently contemplate taking additional actions to reduce the
use of cash over that period, we could, if necessary, delay or forego certain budgeted
discretionary expenditures such as anticipated hiring plans or certain non-critical research and
development expenditures, as well as slow down or delay certain clinical trial activity (without
jeopardizing our pursuit of a Phase 3 clinical trial for CLI) such that we believe that we will
have sufficient cash on hand through at least December 31, 2011.
We will need to raise funds in order to complete our product development programs, complete
clinical trials needed to market our products (including clinical trials for our CLI and DCM
programs), and commercialize these products. Because of our long-term funding requirements, we may
try to access the public or private equity markets if conditions are favorable to complete a
financing, even if we do not have an immediate need for additional capital at that time, or
whenever we require additional operating capital. In addition, we may seek collaborative
relationships, incur debt and access other available funding sources. This
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additional funding may not be available to us on reasonable terms, or at all. Some of the
factors that will impact our ability to raise additional capital and our overall success include:
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the rate and degree of progress for our product development; |
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the rate of regulatory approval to proceed with clinical trial programs; |
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the level of success achieved in clinical trials; |
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the requirements for marketing authorization from regulatory bodies in the
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the liquidity and market volatility of our equity securities; and |
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regulatory and manufacturing requirements and uncertainties, technological
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If adequate funds are not available in the future, we may not be able to develop or enhance
our products, take advantage of future opportunities, or respond to competitive pressures or
unanticipated requirements and we may be required to delay or terminate research and development
programs, curtail capital expenditures, and reduce business development and other operating
activities. Should the financing we require to sustain our working capital needs be unavailable or
prohibitively expensive when we require it, the consequences could have a material adverse effect
on our business, operating results, financial condition and prospects.
Failure to obtain and maintain required regulatory approvals would severely limit our ability to
sell our products.
We must obtain the approval of the FDA before commercial sales of our cell product candidates
may commence in the United States, which we believe will ultimately be the largest market for our
products. We will also be required to obtain additional approvals from various foreign regulatory
authorities to initiate sales activities of cell products in those jurisdictions. If we cannot
demonstrate the safety, purity and potency of our product candidates, including our cell product
candidates, produced in our production system, the FDA or other regulatory authorities could delay
or withhold regulatory approval of our product candidates.
Finally, even if we obtain regulatory approval of a product, that approval may be subject to
limitations on the indicated uses for which it may be marketed. Even after granting regulatory
approval, the FDA and regulatory agencies in other countries continue to review and inspect
marketed products, manufacturers and manufacturing facilities, which may create additional
regulatory burdens. Later discovery of previously unknown problems with a product, manufacturer or
facility may result in restrictions on the product or manufacturer, including a withdrawal of the
product from the market. Further, regulatory agencies may establish additional regulations that
could prevent or delay regulatory approval of our products.
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Our product development programs are based on novel technologies and are inherently risky.
We are subject to the risks of failure inherent in the development of products based on new
technologies. The novel nature of our therapeutics creates significant challenges in regard to
product development and optimization, manufacturing, government regulation, third party
reimbursement and market acceptance. For example, if regulatory agencies have limited experience in
approving cellular therapies for commercialization, the development and commercialization pathway
for our therapies may be subject to increased uncertainty, as compared to the pathway for new
conventional drugs.
Any changes in the governmental regulatory classifications of our products could prevent, limit or
delay our ability to market or develop our products.
The FDA establishes regulatory requirements based on the classification of a product. Because
our product development programs are designed to satisfy the standards applicable to biological
licensure for our cellular products, any change in the regulatory classification or designation
would affect our ability to obtain FDA approval of our products. Each of these cell products is,
under current regulations, regulated as a biologic, which requires a BLA.
Our inability to complete our product development activities successfully would severely limit our
ability to operate or finance operations.
In order to commercialize our cell product candidates in the United States, we must complete
substantial clinical trials and obtain sufficient safety, purity and potency results to support
required registration approval and market acceptance of our cell product candidates. We may not be
able to successfully complete the development of our product candidates, or successfully market our
technologies or product candidates. We, and any of our potential collaborators, may encounter
problems and delays relating to research and development, regulatory approval and intellectual
property rights of our technologies and product candidates. Our research and development programs
may not be successful, and our cell culture technologies and product candidates may not facilitate
the production of cells outside the human body with the expected results. Our technologies and cell
product candidates may not prove to be safe and efficacious in clinical trials, and we may not
obtain the requisite regulatory approvals for our technologies or product candidates and the cells
produced in such products. If any of these events occur, we may not have adequate resources to
continue operations for the period required to resolve any issues delaying commercialization and we
may not be able to raise capital to finance our continued operation during the period required for
resolution of any such issues.
We must successfully complete our clinical trials to be able to market certain of our products.
To be able to market therapeutic cell products in the United States, we must demonstrate,
through extensive preclinical studies and clinical trials, the safety and efficacy of our processes
and product candidates. If our clinical trials are not successful, our products may not be
marketable. The results of early stage clinical trials do not ensure success in later clinical
trials, and interim results are not necessarily predictive of final results.
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Our ability to complete our clinical trials in a timely manner depends on many factors,
including the rate of patient enrollment. Patient enrollment can vary with the size of the patient
population, the proximity of suitable patients to clinical sites, perceptions of the utility
of cell therapy for the treatment of certain diseases, and the eligibility criteria for the study.
For example, patients enrolling in our studies need to provide an adequate amount of bone marrow to
process and expand for injection and some patients may not be able to provide sufficient starting
material despite our study inclusion and exclusion criteria designed to prevent this. Bone marrow
is an inherently variable starting material. We have experienced delays in patient accrual in our
previous clinical trials. If we experience future delays in patient enrollment, we could experience
increased costs and delays associated with clinical trials, which would impair our product
development programs and our ability to market our products.
Furthermore, the FDA monitors the progress of clinical trials and it may suspend or terminate
clinical trials at any time due to patient safety or other considerations.
Our research programs are currently directed at improving product functionality for certain
clinical indications, improving product shelf life, and decreasing the cost of manufacturing our
products. These production process changes may alter the functionality of our cells and require
various additional levels of experimental and clinical testing and evaluation. Any such testing
could lengthen the time before these products would be commercially available.
Even if successful clinical results are reported for a product from a completed clinical
trial, this does not mean that the results will be sustained over time, or will be sufficient for a
marketable or regulatory approvable product.
We will rely on third parties to conduct some of our clinical trials, and their failure to perform
their obligations in a timely or competent manner may delay development and commercialization of
our product candidates.
We may use clinical research organizations to assist in conduct of our clinical trials. There
are numerous alternative sources to provide these services. However, we may face delays outside of
our control if these parties do not perform their obligations in a timely or competent fashion or
if we are forced to change service providers. Any third party that we hire to conduct clinical
trials may also provide services to our competitors, which could compromise the performance of
their obligations to us. If we experience significant delays in the progress of our clinical
trials, the commercial prospects for product candidates could be harmed and our ability to generate
product revenue would be delayed or prevented. In addition, we and any provider that we retain will
be subject to Good Clinical Practice, or GCP requirements. If GCP and other regulatory requirements
are not adhered to by us or our third-party providers, the development and commercialization of our
product candidates could be delayed.
Failure of third parties, including ATEK Medical, LLC, to manufacture or supply certain components,
equipment, disposable devices and other materials used in our cell manufacturing process would
impair our cell product development.
We rely on third parties, including ATEK Medical, LLC, or ATEK, to manufacture and/or supply
certain of our devices/manufacturing equipment and to manufacture and/or supply certain components,
equipment, disposable devices and other materials used in our cell manufacturing process to develop
our cell products. ATEK is our sole supplier of cell cassettes
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for which it would be difficult to obtain alternate sources of supply on a short-term basis.
If any of our manufacturers or suppliers fails to perform their respective obligations, or if our
supply of certain components, equipment, disposable devices and other materials is limited or
interrupted, it could impair our ability to manufacture our products, which would delay our ability
to conduct our clinical trials or market our product candidates on a timely and cost-competitive
basis, if at all.
In addition, we may not be able to continue our present arrangements with our suppliers,
supplement existing relationships, establish new relationships or be able to identify and obtain
the ancillary materials that are necessary to develop our product candidates in the future. Our
dependence upon third parties for the supply and manufacture of these items could adversely affect
our ability to develop and deliver commercially feasible products on a timely and competitive
basis.
Manufacturing of our cell products in centralized facilities may increase the risk that we will not
have adequate quantities of our cell products for clinical programs.
We are subject to regulatory compliance and quality assurance requirements at our production
site in Ann Arbor, Michigan. This site could be subject to ongoing, periodic, unannounced
inspection by regulatory agencies to ensure strict compliance with GMP regulations and other
governmental regulations. We do not have redundant cell manufacturing sites. In the event our cell
production facility is damaged or destroyed or is subject to regulatory restrictions, our clinical
trial programs and other business prospects would be adversely affected.
Even if we obtain regulatory approvals to sell our products, lack of commercial acceptance could
impair our business.
We will be seeking to obtain regulatory approvals to market our cell products for tissue
repair treatments. Even if we obtain all required regulatory approvals, we cannot be certain that
our products and processes will be accepted in the marketplace at a level that would allow us to
operate profitably. Our products may be unable to achieve commercial acceptance for a number of
reasons, such as the availability of alternatives that are less expensive, more effective, or
easier to use; the perception of a low cost-benefit ratio for the product amongst physicians and
hospitals; or an inadequate level of product support from ourselves or a commercial partner. Our
technologies or product candidates may not be employed in all potential applications being
investigated, and any reduction in applications would limit the market acceptance of our
technologies and product candidates, and our potential revenues.
The market for our products will be heavily dependent on third party reimbursement policies.
Our ability to successfully commercialize our product candidates will depend on the extent to
which government healthcare programs, such as Medicare and Medicaid, as well as
private health insurers, health maintenance organizations and other third party payors will
pay for our products and related treatments.
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Reimbursement by third party payors depends on a number of factors, including the payors
determination that use of the product is safe and effective, not experimental or investigational,
medically necessary, appropriate for the specific patient and cost-effective. Reimbursement in the
United States or foreign countries may not be available or maintained for any of our product
candidates. If we do not obtain approvals for adequate third party reimbursements, we may not be
able to establish or maintain price levels sufficient to realize an appropriate return on our
investment in product development. Any limits on reimbursement from third party payors may reduce
the demand for, or negatively affect the price of, our products. For example, in the past,
published studies suggested that stem cell transplantation for breast cancer, which constituted a
significant portion of the overall stem cell therapy market at the time, may have limited clinical
benefit. The lack of reimbursement for these procedures by insurance payors has negatively affected
the marketability of our products in this indication in the past.
Managing and reducing health care costs has been a general concern of federal and state
governments in the United States and of foreign governments. In addition, third party payors are
increasingly challenging the price and cost-effectiveness of medical products and services, and
many limit reimbursement for newly approved health care products. In particular, third party payors
may limit the indications for which they will reimburse patients who use any products that we may
develop. Cost control initiatives could decrease the price for products that we may develop, which
would result in lower product revenues to us.
Use of animal-derived materials could harm our product development and commercialization efforts.
Some of the manufacturing materials and/or components we use in, and are critical to,
implementation of our technology involve the use of animal-derived products, including fetal bovine
serum. Suppliers or regulatory changes may limit or restrict the availability of such materials for
clinical and commercial use. We currently purchase all of our fetal bovine sera from protected
herds in Australia and New Zealand. These sources are considered to be the safest and raise the
least amount of concern from the global regulatory agencies. If, for example, the so-called mad
cow disease occurs in New Zealand or in Australia, it may lead to a restricted supply of the serum
currently required for our product manufacturing processes. Any restrictions on these materials
would impose a potential competitive disadvantage for our products or prevent our ability to
manufacture our cell products. The FDA has issued draft regulations for controls over bovine
materials. These proposed regulations do not appear to affect our ability to purchase the
manufacturing materials we currently use. However, the FDA may issue final regulations that could
affect our operations. Our inability to develop or obtain alternative compounds would harm our
product development and commercialization efforts. There are certain limitations in the supply of
certain animal-derived materials, which may lead to delays in our ability to complete clinical
trials or eventually to meet the anticipated market demand for our cell products.
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Given our limited internal manufacturing, sales, marketing and distribution capabilities, we need
to develop increased internal capability or collaborative relationships to manufacture, sell,
market and distribute our products.
We have only limited internal manufacturing, sales, marketing and distribution capabilities.
As market needs develop, we intend to establish and operate commercial-scale manufacturing
facilities, which will need to comply with all applicable regulatory requirements. We will also
need to develop new configurations of our cell manufacturing system for these facilities to enable
processes and cost efficiencies associated with large-scale manufacturing. Establishing these
facilities will require significant capital and expertise. We may need to make such expenditures
when there are significant uncertainties as to the market opportunity. Any delay in establishing,
or difficulties in operating, these facilities will limit our ability to meet the anticipated
market demand for our cell products. We intend to get assistance to market some of our future cell
products through collaborative relationships with companies with established sales, marketing and
distribution capabilities. Our inability to develop and maintain those relationships would limit
our ability to market, sell and distribute our products. Our inability to enter into successful,
long-term relationships could require us to develop alternate arrangements at a time when we need
sales, marketing or distribution capabilities to meet existing demand. We may market one or more of
our products through our own sales force. Our inability to develop and retain a qualified sales
force could limit our ability to market, sell and distribute our cell products.
If we do not keep pace with our competitors and with technological and market changes, our products
will become obsolete and our business may suffer.
The markets for our products are very competitive, subject to rapid technological changes, and
vary for different candidates and processes that directly compete with our products. Our
competitors may have developed, or could in the future develop, new technologies that compete with
our products or even render our products obsolete. As an example, in the past, published studies
have suggested that hematopoietic stem cell therapy use for bone marrow transplantation, following
marrow ablation due to chemotherapy, may have limited clinical benefit in the treatment of breast
cancer, which was a significant portion of the overall hematopoietic stem cell transplant market.
This resulted in the practical elimination of this market for our cell-based product for this
application.
Our cell manufacturing system is designed to improve and automate the processes for producing
cells used in therapeutic procedures. Even if we are able to demonstrate improved or equivalent
results, the cost or process of treatment and other factors may cause researchers and practitioners
to not use our products and we could suffer a competitive disadvantage. Finally, to the extent that
others develop new technologies that address the targeted application for our products, our
business will suffer.
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The current credit and financial market conditions may exacerbate certain risks affecting our
business.
We rely upon third parties for certain aspects of our business, including collaboration
partners, wholesale distributors, contract clinical trial providers, contract manufacturers and
third-party suppliers. Because of the recent tightening of global credit and the volatility in the
financial markets, there may be a delay or disruption in the performance or satisfaction of
commitments to us by these third parties, which could adversely affect our business.
We have identified a material weakness in our internal control over financial reporting that
resulted in the restatement of prior periods consolidated financial statements. We cannot
guarantee that additional material weaknesses will not arise in the future, which could affect our
ability to report our results of operations and financial condition accurately and in a timely
manner.
Our management is responsible for establishing and maintaining adequate internal control over
financial reporting designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of consolidated financial statements for external purposes in
accordance with U.S. generally accepted accounting principles, or GAAP. Our management assessed
the effectiveness of our internal control over financial reporting as of December 31, 2010 and
identified a material weakness related to our prior interpretation of ASC 815 and our initial
classification and subsequent accounting of warrants as either liabilities or equity instruments.
As a result of this material weakness, our management concluded that our internal control over
financial reporting was not effective as of December 31, 2010. This material weakness resulted in a
material misstatement of our liabilities, non-cash expense relating to the changes in fair value of
common stock warrants and accumulated deficit accounts and related financial disclosures and the
restatement of our consolidated financial statements for the years ended June 30, 2008, 2009 and
2010 and each of the quarterly periods from September 30, 2008 through September 30, 2010. See
Part II Item 9A, Controls and Procedures in our Transition Report on Form 10-KT for the six
month period ended December 31, 2010.
A material weakness is a deficiency, or combination of deficiencies, in internal control over
financial reporting such that there is a reasonable possibility that a material misstatement of our
annual or interim consolidated financial statements will not be prevented or detected on a timely
basis. The effectiveness of any controls or procedures is subject to certain limitations, and as a
result, internal control over financial reporting may not prevent or detect misstatements. A
control can provide only reasonable, not absolute, assurance that the objectives of the control
system will be attained. Although we believe that we have taken actions to remediate this material
weakness, we can give no assurance that additional material weaknesses or restatements of financial
results will not arise in the future due to a failure to implement and maintain adequate internal
control over financial reporting or circumvention of these controls. Additionally, even our
improved controls and procedures may not be adequate to prevent or identify errors or
irregularities or ensure that our financial statements are prepared in accordance with GAAP. If we
cannot maintain and execute adequate internal control over financial reporting or implement
required new or improved controls that provide reasonable assurance of the reliability of the
financial reporting and preparation of our financial statements for external use, we could suffer
harm to our reputation, fail to meet our public reporting requirements on a timely basis, cause
investors to lose confidence in our reported financial information or be unable to properly report
on our business and the results of our operations, and the trading price of our common stock could
be materially adversely affected.
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If we cannot attract and retain key personnel, our business may suffer.
Our success depends in large part upon our ability to attract and retain highly qualified
scientific and management personnel. We face competition for such personnel from other companies,
research and academic institutions and other entities. Further, in an effort to conserve financial
resources, we have implemented reductions in our work force on three previous occasions, most
recently in fiscal 2008. As a result of these and other factors, we may not be successful in hiring
or retaining key personnel. Our inability to replace any key employee could harm our operations.
Risks Related to Intellectual Property
If our patents and proprietary rights do not provide substantial protection, then our business and
competitive position will suffer.
Our success depends in large part on our ability to develop or license intellectual property
rights to protect our proprietary products and technologies. This involves complex legal,
scientific, and factual questions and uncertainties. We rely upon patent, trade secret, copyright
and contract laws to protect proprietary technology and trademark law to protect brand identities.
However, we cannot assure you that any patent applications filed by, assigned to, or licensed to us
will be granted, and that the scope of any of our issued or licensed patents will be sufficiently
broad to offer meaningful protection. In addition, our issued patents or patents licensed to us
could be successfully challenged, invalidated, held to be unenforceable, or circumvented so that
our patent rights would not create an effective competitive barrier. We also cannot assure you that
the inventors of the patents and applications that we own or license were the first to invent or
the first to file on the inventions, or that a third party will not claim ownership in one of our
patents or patent applications. We cannot assure you that a third party does not have or will not
obtain patents that dominate the patents we own or license now or in the future. Furthermore, we
rely on exclusive, world-wide licenses relating to the production of human cells granted to us by
the University of Michigan. If we materially breach such agreements or otherwise fail to materially
comply with such agreements, or if such agreements expire or are otherwise terminated by us, we may
lose our rights under the patents held by the University of Michigan. At the latest, each of these
licenses will terminate when the patent underlying the license expires. The first of these
underlying patents will expire on March 21, 2012. Once the patents expire, third parties may be
able to practice the inventions covered by those patents and thus compete with us.
Patent law relating to the scope of claims in the biotechnology field is evolving and our
patent rights in this country and abroad are subject to this uncertainty.
We also rely on trade secrets and un-patentable know-how that we seek to protect, in part, by
confidentiality agreements with our employees, consultants, suppliers and licensees. These
agreements may be breached, and we might not have adequate remedies for any breach. Our competitors
may also independently develop technologies substantially equivalent or superior to ours. If this
were to occur, our business and competitive position would suffer.
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Intellectual property litigation could harm our business.
Our success will also depend in part on our ability to develop commercially viable products
without infringing the proprietary rights of others. Our cell processing system and cell
compositions utilize a wide variety of technologies and we can give no assurance that we have
identified or can identify all inventions and patents that may be infringed by development and
manufacture of our cell compositions. Although we have not been subject to any filed infringement
claims, patents could exist or could be filed which would prohibit or limit our ability to market
our products or maintain our competitive position. In the event of an intellectual property
dispute, we may be forced to litigate. Such litigation is typically protracted and the results are
unpredictable. Intellectual property litigation would divert managements attention from developing
our products and would force us to incur substantial costs regardless of whether we are successful.
An adverse outcome could subject us to significant liabilities to third parties including treble
damages and the opposing partys attorney fees, and force us to pay significant license fees and
royalties or cease the development and sale of our products and processes.
We have hired and will continue to hire individuals who have experience in cell culture and
cell based therapeutics and may have confidential trade secret or proprietary information of third
parties. We caution these individuals not to use or reveal this third-party information, but we
cannot assure you that these individuals will not use or reveal this third-party information. Thus,
we could be sued for misappropriation of proprietary information and trade secrets. Such claims are
expensive to defend and could divert our attention and could result in substantial damage awards
and injunctions that could have a material adverse effect on our business, financial condition or
results of operations.
We may need to initiate lawsuits to protect or enforce our patents or other proprietary rights,
which would be expensive and, if unsuccessful, may cause us to lose some of our intellectual
property rights.
To protect or enforce our patent rights, it may be necessary for us to initiate patent
litigation proceedings against third parties, such as infringement suits or interference
proceedings. These lawsuits would be expensive, take significant time and would divert managements
attention from other business concerns. These lawsuits could put our patents at risk of being
invalidated, held unenforceable, or interpreted narrowly, and our patent applications at risk of
not being issued. Further, these lawsuits may provoke the defendants to assert claims against us.
The patent position of biotechnology firms is highly uncertain, involves complex legal and factual
questions and recently has been the subject of much litigation. We cannot assure you that we will
prevail in any of such suits or proceedings or that the damages or other remedies awarded to us, if
any, will be commercially valuable.
The government maintains certain rights in technology that we develop using government grant money
and we may lose the revenues from such technology if we do not commercialize and utilize the
technology pursuant to established government guidelines.
Certain of our and our licensors research have been or are being funded in part by government
grants. As a result of such funding, the U.S. Government has established guidelines and has certain
rights in the technology developed with the grant. These rights include a non-exclusive, fully
paid-up, worldwide license under such inventions for any governmental purpose.
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In addition, the U.S. Government has the right to require us to grant an exclusive license
under any of such inventions to a third party if the U.S. Government determines that: (i) adequate
steps have not been taken to commercialize such inventions; (ii) such action is necessary to meet
public health or safety needs; or (iii) such action is necessary to meet requirements for public
use under federal regulations. Additionally, under the federal Bayh Dole Act, a party which
acquires an exclusive license for an invention that was partially funded by a federal research
grant is subject to the following government rights: (i) products using the invention which are
sold in the United States are to be manufactured substantially in the United States, unless a
waiver is obtained; (ii) the government may force the granting of a license to a third party who
will make and sell the needed product if the licensee does not pursue reasonable commercialization
of a needed product using the invention; and (iii) the U.S. Government may use the invention for
its own needs. If we fail to meet these guidelines, we would lose our exclusive rights to these
products, and we would lose potential revenue derived from the sale of these products.
Potential product liability claims could affect our earnings and financial condition.
We face an inherent business risk of exposure to product liability claims in the event that
the manufacture and/or use of our products during clinical trials, or after commercialization,
results in adverse events. As a result, we may incur significant product liability exposure, which
could exceed existing insurance coverage. We may not be able to maintain adequate levels of
insurance at reasonable cost and/or reasonable terms. Excessive insurance costs or uninsured claims
would increase our operating loss and adversely affect our financial condition.
Risks Related to an Investment in our Common Stock
Our stock price has been volatile and future sales of substantial numbers of our shares could have
an adverse affect on the market price of our shares.
The market price of shares of our common stock has been volatile, ranging in closing price
between $1.34 and $4.20 during the twelve-month period ended March 31, 2011. The price of our common
stock may continue to fluctuate in response to a number of events and factors, such as:
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clinical trial results; |
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the amount of our cash resources and our ability to obtain additional funding; |
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announcements of research activities, business developments, technological
innovations or new products by us or our competitors; |
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entering into or terminating strategic relationships; |
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regulatory developments in the United States or abroad; |
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disputes concerning patents or proprietary rights; |
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changes in our revenues or expense levels; |
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public concern regarding the safety, efficacy or other aspects of the products or
methodologies we are developing; |
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news or reports from other stem cell, cell therapy or regenerative medicine
companies; |
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reports by securities analysts; |
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status of the investment markets; |
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concerns related to management transitions; and |
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delisting from the NASDAQ Capital Market. |
Any of these events may cause the price of our shares to fall, which may adversely affect our
business and financing opportunities. In addition, the stock market in general and the market
prices for biotechnology companies in particular have experienced significant volatility recently
that often has been unrelated to the operating performance or financial conditions of such
companies. These broad market and industry fluctuations may adversely affect the trading price of
our stock, regardless of our operating performance or prospects.
The sale of our common stock through current or future equity offerings may cause dilution and
could cause the price of our common stock to decline.
In addition to the equity being registered in connection with this prospectus, we
registered $75,000,000 of securities for public sale pursuant to our registration statement on Form
S-3 filed in November 2010. In December 2010, we offered
10,000,000 shares of common stock and warrants to purchase up to
10,000,000 shares of common stock under such registration statement
and pursuant to a prospectus supplement first made available on
December 10, 2010. In addition, we are offering an aggregate amount of $20,300,000 of common stock
under such registration statement and pursuant to a prospectus supplement first made available on
June 16, 2011. We are entitled under our Charter to issue up to 150,000,000 shares of common
stock, no par value per share, and 5,000,000 shares of preferred stock, no par value per share. As
of June 15, 2011, we had issued and outstanding 38,625,225 shares of common stock, 23,209,491 shares of
common stock reserved for issuance upon the exercise of current outstanding options and warrants,
and 591,226 shares of common stock reserved for issuance of additional grants under our 2009 Omnibus
Incentive Plan. Accordingly, we will be able to issue up to 87,574,058 additional shares of common
stock and 5,000,000 shares of preferred stock. Sales of our common stock offered through current
or future equity offerings, including sales of our securities under this prospectus, may result in
substantial dilution to our shareholders. The sale of a substantial number of shares of our common
stock to investors, or anticipation of such sales, could make it more difficult for us to sell
equity or equity-related securities in the future at a time and at a price that we might otherwise
wish to effect sales.
Our corporate documents and Michigan law contain provisions that may make it more difficult for us
to be acquired.
Our Board has the authority, without shareholder approval, to issue additional shares of
preferred stock and to fix the rights, preferences, privileges and restrictions of these shares
without any further vote or action by our shareholders. Michigan law contains a provision that
makes it more difficult for a 10% shareholder, or its officers, to acquire a company. This
authority, together with certain provisions of our charter documents, may have the effect of making
it more difficult for a third party to acquire, or of discouraging a third party from
attempting to acquire, control of our company. This effect could occur even if our
shareholders consider the change in control to be in their best interest.
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus, including the documents that we incorporate by reference, contains
forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E
of the Securities Exchange Act. Any statements about our expectations, beliefs, plans, objectives,
assumptions or future events or performance are not historical facts and may be forward-looking.
These statements are often, but are not always, made through the use of words or phrases such as
anticipates, estimates, plans, projects, trends, opportunity, comfortable, current,
intention, position, assume, potential, outlook, remain, continue, maintain,
sustain, seek, achieve, continuing, ongoing, expects, believe, intend and similar
words or phrases, or future or conditional verbs such as will, would, should, could, may,
or similar expressions. Accordingly, these statements involve estimates, assumptions and
uncertainties which could cause actual results to differ materially from those expressed in them.
Any forward-looking statements are qualified in their entirety by reference to the factors
discussed throughout this report, and in particular those factors referenced in the section Risk
Factors.
Because the factors referred to in the preceding paragraph could cause actual results or
outcomes to differ materially from those expressed in any forward-looking statements we make, you
should not place undue reliance on any such forward-looking statements. Further, any
forward-looking statement speaks only as of the date on which it is made, and we undertake no
obligation to update any forward-looking statement or statements to reflect events or circumstances
after the date on which such statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not possible for us to predict which
factors will arise. In addition, we cannot assess the impact of each factor on our business or the
extent to which any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements. These forward-looking statements
include, but are not limited to, statements regarding:
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potential strategic collaborations with others; |
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future capital needs; |
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adequacy of existing capital to support operations for a specified time; |
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product development and marketing plan; |
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features and successes of our cellular therapies; |
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manufacturing and facility capabilities; |
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clinical trial plans and anticipated results, including the publication thereof; |
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anticipation of future losses; |
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replacement of manufacturing sources; |
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commercialization plans; or |
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revenue expectations and operating results. |
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HOW WE INTEND TO USE THE PROCEEDS
We cannot guarantee that we will receive any proceeds in connection with this offering because
we may be unable or choose not to issue and sell any securities covered by this prospectus.
Unless otherwise provided in a supplement or amendment to this prospectus, we intend to use
any net proceeds from this offering, together with other available funds, for operating costs,
including continuing to conduct our clinical development programs, capital expenditures and working
capital needs and for other general corporate purposes.
We have not specifically identified the precise amounts we will spend on each of these areas
or the timing of these expenditures. The amounts actually expended for each purpose may vary
significantly depending upon numerous factors, including the amount and timing of the proceeds from
this offering, progress with clinical product development and other cell therapy application
programs. In addition, expenditures may also depend on the establishment of new collaborative
arrangements with other companies, the availability of other financing, and other factors.
We will be required to raise substantial additional capital to continue to fund the clinical
development of our cell therapy applications. We may raise additional capital through additional
public or private financings, as well as collaborative relationships, incurring debt and other
available sources. Please see the discussion of the risks associated with our liquidity in the
section Risk Factors.
PLAN OF DISTRIBUTION
The securities being offered may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at prices related to the prevailing market prices, at
varying prices determined at the time of sale, or at negotiated prices. These sales may be effected
at various times in one or more of the following transactions, or in other kinds of transactions:
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through underwriters for resale to the public or investors; |
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transactions on the Nasdaq Stock Market or on any national securities exchange or U.S.
inter-dealer system of a registered national securities association on which our common
stock may be listed or quoted at the time of sale; |
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in the over-the-counter market; |
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in private transactions and transactions otherwise than on these exchanges or systems or
in the over-the-counter market; |
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in at the market offerings, within the meaning of Rule 415(a)(4) of the Securities Act
of 1933, as amended, or the Securities Act, to or through a market maker or into an
existing trading market, on an exchange or otherwise; |
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in connection with short sales of the shares; |
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by pledge to secure debt and other obligations; |
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through the writing of options, whether the options are listed on an options exchange or
otherwise; |
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in connection with the writing of non-traded and exchange-traded call options, in hedge
transactions and in settlement of other transactions in standardized or over-the-counter
options; |
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through a combination of any of the above transactions; or |
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any other method permitted by law. |
We may sell our securities directly to one or more purchasers, or to or through underwriters,
dealers or agents or through a combination of those methods. The related prospectus supplement will
set forth the terms of each offering, including:
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the name or names of any agents, dealers, underwriters or investors who purchase the
securities; |
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the purchase price of the securities being offered and the proceeds we will receive from
the sale; |
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the amount of any compensation, discounts commissions or fees to be received by the
underwriters, dealer or agents; |
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any over-allotment options under which underwriters may purchase additional securities
from us; |
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any discounts or concessions allowed or reallowed or paid to dealers; |
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any securities exchanges on which such securities may be listed; |
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the terms of any indemnification provisions, including indemnification from liabilities
under the federal securities laws; and |
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the nature of any transaction by an underwriter, dealer or agent during the offering
that is intended to stabilize or maintain the market price of the securities. |
In addition, any securities covered by this prospectus that qualify for sale pursuant to
Regulation S may be sold pursuant to Regulation S rather than pursuant to this prospectus.
In connection with the sale of our securities, underwriters may receive compensation from us
or from purchasers of our securities in the form of discounts, concessions or commissions.
Underwriters, dealers and agents that participate in the distribution of our securities may be
deemed to be underwriters. Discounts or commissions they receive and any profit on their resale of
our securities may be considered underwriting discounts and commissions under the Securities Act.
In compliance with the guidelines of the Financial Industry Regulatory Authority, or FINRA,
the maximum consideration or discount to be received by any FINRA member or
independent broker dealer may not exceed 8.0% of the aggregate amount of the securities
offered to this prospectus.
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We may agree to indemnify underwriters, dealers and agents who participate in the distribution
of our securities against various liabilities, including liabilities under the Securities Act. We
may also agree to contribute to payments that the underwriters, dealers or agents may be required
to make in respect of these liabilities. We may authorize dealers or other persons who act as our
agents to solicit offers by various institutions to purchase our securities from us under contracts
that provide for payment and delivery on a future date. We may enter into these contracts with
commercial and savings banks, insurance companies, pension funds, investment companies, educational
and charitable institutions and others. If we enter into these agreements concerning any series of
our securities, we will indicate that in the prospectus supplement or amendment.
In connection with an offering of our securities, underwriters may engage in transactions that
stabilize, maintain or otherwise affect the price of our securities. Specifically, underwriters may
over-allot in connection with the offering, creating a syndicate short position in our securities
for their own account. In addition, underwriters may bid for, and purchase, our securities in the
open market to cover short positions or to stabilize the price of our securities. Finally,
underwriters may reclaim selling concessions allowed for distributing our securities in the
offering if the underwriters repurchase previously distributed securities in transactions to cover
short positions, in stabilization transactions or otherwise. Any of these activities may stabilize
or maintain the market price of our securities above independent market levels. Underwriters are
not required to engage in any of these activities and may end any of these activities at any time.
Agents and underwriters may engage in transactions with, or perform services for, us and our
affiliates in the ordinary course of business.
CERTAIN PROVISIONS OF MICHIGAN LAW AND OF OUR CHARTER AND
BYLAWS; TRANSFER AGENT AND REGISTRAR
We are subject to certain anti-takeover provisions of the MBCA that could delay or make more
difficult a merger or tender offer involving Aastrom. Chapter 7A of the MBCA prevents, in general,
an interested shareholder (defined generally as a person owning 10% or more of a corporations
outstanding voting shares) from engaging in a business combination (as defined therein) with a
Michigan corporation unless: (a) the board of directors issues an advisory statement, holders of
90% of the shares of each class of stock entitled to vote approve the transaction, and holders of
two-thirds of the disinterested shares of each class of stock approve the transaction; or (b) the
interested shareholder has been an interested shareholder for at least five years and has not
acquired beneficial ownership of any additional shares of the corporation subsequent to the
transaction which resulted in such shareholder being classified as an interested shareholder, and
meets certain requirements, including provisions relating to the fairness of the price and the form
of consideration paid; or (c) the board of directors, by resolution, exempts a particular
interested shareholder from these provisions prior to the interested shareholder becoming an
interested shareholder. The MBCA also contains certain other provisions that could have
anti-takeover effects.
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Our Charter does not provide shareholders with the right to act without a meeting and does not
provide for cumulative voting in the election of directors. The amendment of any of these
provisions would require approval by holders of at least a majority of the shares of our
outstanding common stock.
These and other provisions of our Charter or Bylaws could have the effect of deterring certain
takeovers or delaying or preventing certain changes in control or management of Aastrom, including
transactions in which shareholders might otherwise receive a premium for their shares over
then-current market prices.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Continental Stock Transfer & Trust
Company.
THE SECURITIES WE MAY OFFER
The descriptions of the securities contained in this prospectus, together with the applicable
prospectus supplements, summarize all the material terms and provisions of the various types of
securities that we may offer. We will describe in the applicable prospectus supplement the
particular terms of the securities offered by that prospectus supplement. If we so indicate in the
applicable prospectus supplement, the terms of the securities may differ from the terms we have
summarized below. We will also include in the prospectus supplement information, where applicable,
about material United States federal income tax considerations relating to the securities and the
securities exchange, if any, on which the securities will be listed.
Description of Capital Stock
The following description of our capital stock and certain provisions of our Charter and our
amended and restated bylaws, or Bylaws, is a summary and is qualified in its entirety by the
provisions of our Charter and Bylaws.
Our authorized capital stock consists of 150,000,000 shares of common stock, no par value per
share, and 5,000,000 shares of preferred stock, no par value per share. Please see Certain
Provisions of Michigan Law and of Our Charter and Bylaws; Transfer Agent and Registrar for a
description of those provisions in our Charter and Bylaws that would have an effect of delaying,
deferring or preventing a change in control of Aastrom and that would operate only with respect to
an extraordinary corporate transaction involving us or our subsidiaries.
Common Stock
Holders of our common stock are entitled to one vote for each share held of record on all
matters submitted to a vote of shareholders. We do not have a classified board of directors and
shareholders do not have cumulative voting rights. Holders of common stock have no preemptive,
redemption or conversion rights and are not subject to future calls or assessments. No sinking fund
provisions apply to our common stock. All outstanding shares are fully-paid and non-assessable. In
the event of our liquidation, dissolution or winding up, holders of common stock are entitled to
share ratably in assets available for distribution, subject to any prior distribution rights of any
preferred stock then outstanding. Holders of common stock are entitled
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to receive proportionately any such dividends declared by our Board, out of legally available
funds for dividends, subject to any preferences that may be applicable to any shares of preferred
stock that may be outstanding at that time. The rights, preferences and privileges of holders of
common stock are set forth in our Charter, which may be amended by the holders of a majority of the
outstanding shares of common stock.
Preferred Stock
Our Board is authorized to issue up to 5,000,000 shares of preferred stock in one or more
series without shareholder approval. Our Board may determine the rights, preferences, privileges
and restrictions, including voting rights, dividend rights, conversion rights, redemption
privileges and liquidation preferences, of each series of preferred stock.
The purpose of authorizing our Board to issue preferred stock in one or more series and
determine the number of shares in the series and its rights and preferences is to eliminate delays
associated with a shareholder vote on specific issuances. Examples of rights and preferences that
the Board may fix are:
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dividend rights, |
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dividend rates, |
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conversion rights, |
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voting rights, |
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terms of redemption, and |
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liquidation preferences. |
The issuance of preferred stock, while providing desirable flexibility in connection with
possible acquisitions and other corporate purposes, could make it more difficult for a third party
to acquire, or could discourage a third party from acquiring, a majority of our outstanding voting
stock. The rights of holders of our common stock described above, will be subject to, and may be
adversely affected by, the rights of any preferred stock that we may designate and issue in the
future.
We will incorporate by reference as an exhibit to the registration statement, which includes
this prospectus, the form of any certificate of designation that describes the terms of the series
of preferred stock we are offering. This description and the applicable prospectus supplement will
include:
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the title and stated value; |
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the number of shares authorized; |
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the liquidation preference per share; |
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the purchase price; |
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the dividend rate, period and payment date, and method of calculation for dividends; |
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whether dividends will be cumulative or non-cumulative and, if cumulative, the date from
which dividends will accumulate; |
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the procedures for any auction and remarketing, if any; |
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the provisions for a sinking fund, if any; |
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the provisions for redemption or repurchase, if applicable, and any restrictions on our
ability to exercise those redemption and repurchase rights; |
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any listing of the preferred stock on any securities exchange or market; |
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whether the preferred stock will be convertible into our common stock, and, if
applicable, the conversion price, or how it will be calculated, and the conversion period; |
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whether the preferred stock will be exchangeable into debt securities, and, if
applicable, the exchange price, or how it will be calculated, and the exchange period; |
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voting rights, if any, of the preferred stock; |
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preemptive rights, if any; |
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restrictions on transfer, sale or other assignment, if any; |
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whether interests in the preferred stock will be represented by depositary shares; |
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a discussion of any material United States federal income tax considerations applicable
to the preferred stock; |
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the relative ranking and preferences of the preferred stock as to dividend rights and
rights if we liquidate, dissolve or wind up our affairs; |
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any limitations on issuance of any class or series of preferred stock ranking senior to
or on a parity with the series of preferred stock as to dividend rights and rights if we
liquidate, dissolve or wind up our affairs; and |
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any other specific terms, preferences, rights or limitations of, or restrictions on, the
preferred stock. |
When we issue shares of preferred stock under this prospectus, the shares will fully be paid
and nonassessable and will not have, or be subject to, any preemptive or similar rights.
The Michigan Business Corporation Act, or the MBCA, provides that the holders of preferred
stock will have the right to vote separately as a class on any proposal involving an increase or
decrease in the authorized number of shares of that class, or changes in the powers, preferences or
special rights of holders of that preferred stock so as to affect the class adversely. This right
is in addition to any voting rights that may be provided for in the applicable certificate of
designation.
Description of Debt Securities
The paragraphs below describe the general terms and provisions of the debt securities we may
issue. When we offer to sell a particular series of debt securities, we will describe the specific
terms of the securities in a supplement to this prospectus, including any additional covenants or
changes to existing covenants relating to such series. The prospectus supplement
also will indicate whether the general terms and provisions described in this prospectus apply
to a particular series of debt securities. You should read the actual indenture if you do not fully
understand a term or the way we use it in this prospectus.
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We may offer senior or subordinated debt securities. Each series of debt securities may have
different terms. The senior debt securities will be issued under one or more senior indentures,
dated as of a date prior to such issuance, between us and the trustee identified in the applicable
prospectus supplement, as amended or supplemented from time to time. We will refer to any such
indenture throughout this prospectus as the senior indenture. Any subordinated debt securities
will be issued under one or more separate indentures, dated as of a date prior to such issuance,
between us and the trustee identified in the applicable prospectus supplement, as amended or
supplemented from time to time. We will refer to any such indenture throughout this prospectus as
the subordinated indenture and to the trustee under the senior or subordinated indenture as the
trustee. The senior indenture and the subordinated indenture are sometimes collectively referred
to in this prospectus as the indentures. The indentures will be subject to and governed by the
Trust Indenture Act of 1939, as amended. We included copies of the forms of the indentures as
exhibits to our registration statement and they are incorporated into this prospectus by reference.
If we issue debt securities at a discount from their principal amount, then, for purposes of
calculating the aggregate initial offering price of the offered securities issued under this
prospectus, we will include only the initial offering price of the debt securities and not the
principal amount of the debt securities.
We have summarized below the material provisions of the indentures and the debt securities, or
indicated which material provisions will be described in the related prospectus supplement. The
prospectus supplement relating to any particular securities offered will describe the specific
terms of the securities, which may be in addition to or different from the general terms summarized
in this prospectus. Because the summary in this prospectus and in any prospectus supplement does
not contain all of the information that you may find useful, you should read the documents relating
to the securities that are described in this prospectus or in any applicable prospectus supplement.
Please read Where You Can Find More Information to find out how you can obtain a copy of those
documents. Except as otherwise indicated, the terms of the indentures are identical. As used under
this caption, the term debt securities includes the debt securities being offered by this
prospectus and all other debt securities issued by us under the indentures.
General
The indentures:
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do not limit the amount of debt securities that we may issue; |
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allow us to issue debt securities in one or more series; |
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do not require us to issue all of the debt securities of a series at the same time; |
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allow us to reopen a series to issue additional debt securities without the
consent of the holders of the debt securities of such series; and |
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provide that the debt securities will be unsecured, except as may be set forth in
the applicable prospectus supplement. |
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Unless we give you different information in the applicable prospectus supplement, the senior
debt securities will be unsubordinated obligations and will rank equally with all of our other
unsecured and unsubordinated indebtedness. Payments on the subordinated debt securities will be
subordinated to the prior payment in full of all of our senior indebtedness, as described under
Description of Debt SecuritiesSubordination and in the applicable prospectus supplement.
Each indenture provides that we may, but need not, designate more than one trustee under an
indenture. Any trustee under an indenture may resign or be removed and a successor trustee may be
appointed to act with respect to the series of debt securities administered by the resigning or
removed trustee. If two or more persons are acting as trustee with respect to different series of
debt securities, each trustee shall be a trustee of a trust under the applicable indenture separate
and apart from the trust administered by any other trustee. Except as otherwise indicated in this
prospectus, any action described in this prospectus to be taken by each trustee may be taken by
each trustee with respect to, and only with respect to, the one or more series of debt securities
for which it is trustee under the applicable indenture.
The prospectus supplement for each offering will provide the following terms, where
applicable:
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the title of the debt securities and whether they are senior or subordinated; |
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the aggregate principal amount of the debt securities being offered, the
aggregate principal amount of the debt securities outstanding as of the most
recent practicable date and any limit on their aggregate principal amount,
including the aggregate principal amount of debt securities authorized; |
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the price at which the debt securities will be issued, expressed as a
percentage of the principal and, if other than the principal amount thereof,
the portion of the principal amount thereof payable upon declaration of
acceleration of the maturity thereof or, if applicable, the portion of the
principal amount of such debt securities that is convertible into common
stock or other securities of Aastrom or the method by which any such portion
shall be determined; |
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if convertible, the terms on which such debt securities are convertible,
including the initial conversion price or rate and the conversion period and
any applicable limitations on the ownership or transferability of common
stock or other securities of Aastrom received on conversion; |
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the date or dates, or the method for determining the date or dates, on which
the principal of the debt securities will be payable; |
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the fixed or variable interest rate or rates of the debt securities, or the
method by which the interest rate or rates is determined; |
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the date or dates, or the method for determining the date or dates, from
which interest will accrue; |
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the dates on which interest will be payable; |
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the record dates for interest payment dates, or the method by which such
dates will be determine; |
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the persons to whom interest will be payable; |
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the basis upon which interest will be calculated if other than that of a
360-day year of twelve 30-day months; |
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any make-whole amount, which is the amount in addition to principal and
interest that is required to be paid to the holder of a debt security as a
result of any optional redemption or accelerated payment of such debt
security, or the method for determining the make-whole amount; |
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the place or places where the principal of, and any premium or make-whole
amount, and interest on, the debt securities will be payable; |
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where the debt securities may be surrendered for registration of transfer or
conversion or exchange; |
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where notices or demands to or upon us in respect of the debt securities and
the applicable indenture may be served; |
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the times, prices and other terms and conditions upon which we may redeem
the debt securities; |
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any obligation we have to redeem, repay or purchase the debt securities
pursuant to any sinking fund or analogous provision or at the option of
holders of the debt securities, and the times and prices at which we must
redeem, repay or purchase the debt securities as a result of such
obligation; |
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the currency or currencies in which the debt securities are denominated and
payable if other than United States dollars, which may be a foreign currency
or units of two or more foreign currencies or a composite currency or
currencies and the terms and conditions relating thereto, and the manner of
determining the equivalent of such foreign currency in United States
dollars; |
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whether the principal of, and any premium or make-whole amount, or interest
on, the debt securities of the series are to be payable, at our election or
at the election of a holder, in a currency or currencies other than that in
which the debt securities are denominated or stated to be payable, and other
related terms and conditions; |
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whether the amount of payments of principal of, and any premium or
make-whole amount, or interest on, the debt securities may be determined
according to an index, formula or other method and how such amounts will be
determined; |
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whether the debt securities will be in registered form, bearer form or both
and (i) if in registered form, the person to whom any interest shall be
payable, if other than the person in whose name the security is registered
at the close of business on the regular record date for such interest, or
(ii) if in bearer form, the manner in which, or the person to whom, any
interest on the security shall be payable if otherwise than upon
presentation and surrender upon maturity; |
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any restrictions applicable to the offer, sale or delivery of securities in
bearer form and the terms upon which securities in bearer form of the series
may be exchanged for securities in registered form of the series and vice
versa, if permitted by applicable laws and regulations; |
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whether any debt securities of the series are to be issuable initially in
temporary global form and whether any debt securities of the series are to
be issuable in permanent global form with or without coupons and, if so,
whether beneficial owners of interests in any such permanent global security
may, or shall be required to, exchange their interests for other debt
securities of the series, and the manner in which interest shall be paid; |
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the identity of the depositary for securities in registered form, if such
series are to be issuable as a global security; |
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the date as of which any debt securities in bearer form or in temporary
global form shall be dated if other than the original issuance date of the
first security of the series to be issued; |
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the applicability, if any, of the defeasance and covenant defeasance
provisions described in this prospectus or in the applicable indenture; |
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whether and under what circumstances we will pay any additional amounts on
the debt securities in respect of any tax, assessment or governmental charge
and, if so, whether we will have the option to redeem the debt securities in
lieu of making such a payment; |
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whether and under what circumstances the debt securities being offered are
convertible into common stock or other securities of Aastrom, as the case
may be, including the conversion price or rate and the manner or calculation
thereof; |
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the circumstances, if any, specified in the applicable prospectus
supplement, under which beneficial owners of interests in the global
security may obtain definitive debt securities and the manner in which
payments on a permanent global debt security will be made if any debt
securities are issuable in temporary or permanent global form; |
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any provisions granting special rights to holders of securities upon the
occurrence of such events as specified in the applicable prospectus
supplement; |
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if the debt securities of such series are to be issuable in definitive form
only upon receipt of certain certificates or other documents or satisfaction
of other conditions, then the form and/or terms of such certificates,
documents or conditions; |
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the name of the applicable trustee and the nature of any material
relationship with us or any of our affiliates, and the percentage of debt
securities of the class necessary to require the trustee to take action; |
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any deletions from, modifications of or additions to our events of default
or covenants with regard to such debt securities and any change in the right
of any trustee or any of the holders to declare the principal amount of any
of such debt securities due and payable; |
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applicable CUSIP numbers; and |
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any other terms of such debt securities not inconsistent with the provisions
of the applicable indenture. |
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We may issue debt securities that provide for less than the entire principal amount thereof to
be payable upon declaration of acceleration of the maturity of the debt securities. We refer to any
such debt securities throughout this prospectus as original issue discount securities. The
applicable prospectus supplement will describe the United States federal income tax consequences
and other relevant considerations applicable to original issue discount securities.
We also may issue indexed debt securities. Payments of principal of, and premium and interest
on, indexed debt securities are determined with reference to the rate of exchange between the
currency or currency unit in which the debt security is denominated and any other currency or
currency unit specified by us, to the relationship between two or more currencies or currency units
or by other similar methods or formulas specified in the prospectus supplement.
Except as described under Merger, Consolidation or Sale of Assets or as may be set forth
in any prospectus supplement, the debt securities will not contain any provisions that (i) would
limit our ability to incur indebtedness or (ii) would afford holders of debt securities protection
in the event of (a) a highly leveraged or similar transaction involving us, or (b) a change of
control or reorganization, restructuring, merger or similar transaction involving us that may
adversely affect the holders of the debt securities. In the future, we may enter into transactions,
such as the sale of all or substantially all of our assets or a merger or consolidation, that may
have an adverse effect on our ability to service our indebtedness, including the debt securities,
by, among other things, substantially reducing or eliminating our assets.
Neither the MBCA nor our governing instruments define the term substantially all as it
relates to the sale of assets. Additionally, Michigan cases interpreting the term substantially
all rely upon the facts and circumstances of each particular case. Consequently, to determine
whether a sale of substantially all of our assets has occurred, a holder of debt securities must
review the financial and other information that we have disclosed to the public.
We will provide you with more information in the applicable prospectus supplement regarding
any deletions, modifications, or additions to the events of default or covenants that are described
below, including any addition of a covenant or other provision providing event risk or similar
protection.
Payment
Unless we give you different information in the applicable prospectus supplement, the
principal of, and any premium or make-whole amount, and interest on, any series of the debt
securities will be payable at the corporate trust office of the trustee. We will provide you with
the address of the trustee in the applicable prospectus supplement. We may also pay interest by
mailing a check to the address of the person entitled to it as it appears in the applicable
register for the debt securities or by wire transfer of funds to that person at an account
maintained within the United States.
All monies that we pay to a paying agent or a trustee for the payment of the principal of, and
any premium or make-whole amount, or interest on, any debt security will be repaid to us if
unclaimed at the end of two years after the obligation underlying payment becomes due and
payable. After funds have been returned to us, the holder of the debt security may look only to us
for payment, without payment of interest for the period which we hold the funds.
34
Denomination, Interest, Registration and Transfer
Unless otherwise described in the applicable prospectus supplement, the debt securities of any
series will be issuable in denominations of $1,000 and integral multiples of $1,000.
Subject to the limitations imposed upon debt securities that are evidenced by a computerized
entry in the records of a depository company rather than by physical delivery of a note, a holder
of debt securities of any series may:
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exchange them for any authorized denomination of other debt securities
of the same series and of a like aggregate principal amount and kind
upon surrender of such debt securities at the corporate trust office
of the applicable trustee or at the office of any transfer agent that
we designate for such purpose; and |
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surrender them for registration of transfer or exchange at the
corporate trust office of the applicable trustee or at the office of
any transfer agent that we designate for such purpose. |
Every debt security surrendered for registration of transfer or exchange must be duly endorsed
or accompanied by a written instrument of transfer satisfactory to the applicable trustee or
transfer agent. Payment of a service charge will not be required for any registration of transfer
or exchange of any debt securities, but we or the trustee may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith. If in addition to
the applicable trustee, the applicable prospectus supplement refers to any transfer agent initially
designated by us for any series of debt securities, we may at any time rescind the designation of
any such transfer agent or approve a change in the location through which any such transfer agent
acts, except that we will be required to maintain a transfer agent in each place of payment for
such series. We may at any time designate additional transfer agents for any series of debt
securities.
Neither we, nor any trustee, will be required to:
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issue, register the transfer of or exchange debt securities of any
series during a period beginning at the opening of business 15 days
before the day that the notice of redemption of any debt securities
selected for redemption is mailed and ending at the close of business
on the day of such mailing; |
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register the transfer of or exchange any debt security, or portion
thereof, so selected for redemption, in whole or in part, except the
unredeemed portion of any debt security being redeemed in part; and |
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issue, register the transfer of or exchange any debt security that has
been surrendered for repayment at the option of the holder, except the
portion, if any, of such debt security not to be so repaid. |
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Merger, Consolidation or Sale of Assets
The indentures provide that we may, without the consent of the holders of any outstanding debt
securities, (i) consolidate with, (ii) sell, lease or convey all or substantially all of our assets
to, or (iii) merge with or into, any other entity provided that:
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either we are the continuing entity, or the successor entity, if other
than us, assumes the obligations (a) to pay the principal of, and any
premium or make-whole amount, and interest on, all of the debt
securities and (b) to duly perform and observe all of the covenants
and conditions contained in each indenture; |
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after giving effect to the transaction, there is no event of default
under the indentures and no event which, after notice or the lapse of
time, or both, would become such an event of default, occurs and
continues; and |
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an officers certificate and legal opinion covering such conditions
are delivered to each applicable trustee. |
Covenants
Existence. Except as described under Merger, Consolidation or Sale of Assets, the
indentures require us to do or cause to be done all things necessary to preserve and keep in full
force and effect our existence, rights and franchises. However, the indentures do not require us to
preserve any right or franchise if we determine that any right or franchise is no longer desirable
in the conduct of our business.
Payment of taxes and other claims. The indentures require us to pay, discharge or cause to be
paid or discharged, before they become delinquent (i) all taxes, assessments and governmental
charges levied or imposed on us, our subsidiaries or our or our subsidiaries income, profits or
property, and (ii) all lawful claims for labor, materials and supplies which, if unpaid, might by
law become a lien upon our property or the property of our subsidiaries. However, we will not be
required to pay, discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith by appropriate
proceedings.
Provision of financial information. The indentures require us to (i) within 15 days of each of
the respective dates by which we are required to file our annual reports, quarterly reports and
other documents with the SEC, file with the trustee copies of the annual report, quarterly report
and other documents that we file with the SEC under Section 13 or 15(d) of the Exchange Act, (ii)
file with the trustee and the SEC any additional information, documents and reports regarding
compliance by us with the conditions and covenants of the indentures, as required, (iii) within 30
days after the filing with the trustee, mail to all holders of debt securities, as their names and
addresses appear in the applicable register for such debt securities, without cost to such holders,
summaries of any documents and reports required to be filed by us pursuant to (i) and (ii) above,
and (iv) supply, promptly upon written request and payment of the reasonable cost of duplication
and delivery, copies of such documents to any prospective holder.
Additional covenants. The applicable prospectus supplement will set forth any additional
covenants of Aastrom relating to any series of debt securities.
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Events of Default, Notice and Waiver
Unless the applicable prospectus supplement states otherwise, when we refer to events of
default as defined in the indentures with respect to any series of debt securities, we mean:
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default in the payment of any installment of interest on any debt security of such series continuing for 30 days; |
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default in the payment of principal of, or any premium or make-whole amount on, any debt security of such series for five
business days at its stated maturity; |
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default in making any sinking fund payment as required for any debt security of such series for five business days; |
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default in the performance or breach of any covenant or warranty in the debt securities or in the indenture by Aastrom continuing
for 60 days after written notice as provided in the applicable indenture, but not of a covenant added to the indenture solely for
the benefit of a series of debt securities issued thereunder other than such series; |
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a default under any bond, debenture, note, mortgage, indenture or instrument: |
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having an aggregate principal amount of at least $30,000,000; or |
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under which there may be issued, secured or evidenced any
existing or later created indebtedness for money borrowed by us
or our subsidiaries, if we are directly responsible or liable as
obligor or guarantor, |
if the default results in the indebtedness becoming or being declared due and payable prior to the
date it otherwise would have, without such indebtedness having been discharged, or such
acceleration having been rescinded or annulled, within 30 days after notice to the issuing company
specifying such default. Such notice shall be given to us by the trustee, or to us and the trustee
by the holders of at least 10% in principal amount of the outstanding debt securities of that
series. The written notice shall specify such default and require us to cause such indebtedness to
be discharged or cause such acceleration to be rescinded or annulled and shall state that such
notice is a Notice of Default under such indenture;
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bankruptcy, insolvency or reorganization, or court appointment of a
receiver, liquidator or trustee of Aastrom or any significant
subsidiary of Aastrom; and |
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any other event of default provided with respect to a particular
series of debt securities. |
When we use the term significant subsidiary, we refer to the meaning ascribed to such term
in Rule 1-02 of Regulation S-X promulgated under the Securities Act.
If an event of default occurs and is continuing with respect to debt securities of any series
outstanding, then the applicable trustee or the holders of 25% or more in principal amount of the
debt securities of that series will have the right to declare the principal amount of all the debt
securities of that series to be due and payable. If the debt securities of that series are original
issue discount securities or indexed securities, then the applicable trustee or the holders of 25%
or more in principal amount of the debt securities of that series will have the right to declare
the portion of the principal amount as may be specified in the terms thereof to be due and payable.
However, at any time after such a declaration of acceleration has been made, but before a judgment
or decree for payment of the money due has been obtained by the applicable trustee,
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the holders of at least a majority in principal amount of outstanding debt securities of such
series or of all debt securities then outstanding under the applicable indenture may rescind and
annul such declaration and its consequences if:
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we have deposited with the applicable trustee all required payments of
the principal, any premium or make-whole amount, interest and, to the
extent permitted by law, interest on overdue installment of interest,
plus applicable fees, expenses, disbursements and advances of the
applicable trustee; and |
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all events of default, other than the non-payment of accelerated
principal, or a specified portion thereof, and any premium or
make-whole amount, have been cured or waived. |
The indentures also provide that the holders of at least a majority in principal amount of the
outstanding debt securities of any series or of all debt securities then outstanding under the
applicable indenture may, on behalf of all holders, waive any past default with respect to such
series and its consequences, except a default:
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in the payment of the principal, any premium or make-whole amount, or interest; |
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in respect of a covenant or provision contained in the applicable indenture
that cannot be modified or amended without the consent of the holders of the
outstanding debt security that is affected by the default; or |
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in respect of a covenant or provision for the benefit or protection of the
trustee, without its express written consent. |
The indentures require each trustee to give notice to the holders of debt securities within 90
days of a default unless such default has been cured or waived. However, the trustee may withhold
notice if specified persons of such trustee consider such withholding to be in the interest of the
holders of debt securities. The trustee may not withhold notice of a default in the payment of
principal, any premium or interest on any debt security of such series or in the payment of any
sinking fund installment in respect of any debt security of such series.
The indentures provide that holders of debt securities of any series may not institute any
proceedings, judicial or otherwise, with respect to such indenture or for any remedy under the
indenture, unless the trustee fails to act for a period of 60 days after the trustee has received a
written request to institute proceedings in respect of an event of default from the holders of 25%
or more in principal amount of the outstanding debt securities of such series, as well as an offer
of indemnity reasonably satisfactory to the trustee. However, this provision will not prevent any
holder of debt securities from instituting suit for the enforcement of payment of the principal of,
and any premium or make-whole amount, and interest on, such debt securities at the respective due
dates thereof.
The indentures provide that, subject to provisions in each indenture relating to its duties in
the case of a default, a trustee has no obligation to exercise any of its rights or powers at the
request or direction of any holders of any series of debt securities then outstanding under the
indenture, unless the holders have offered to the trustee reasonable security or indemnity. The
holders of at least a majority in principal amount of the outstanding debt securities of any series
or of all debt securities then outstanding under an indenture shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the applicable
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trustee, or of exercising any trust or power conferred upon such trustee. However, a trustee
may refuse to follow any direction which:
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is in conflict with any law or the applicable indenture; |
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may involve the trustee in personal liability; or |
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may be unduly prejudicial to the holders of debt securities of the
series not joining the proceeding. |
Within 120 days after the close of each fiscal year, we will be required to deliver to each
trustee a certificate, signed by one of our several specified officers, stating whether or not that
officer has knowledge of any default under the applicable indenture. If the officer has knowledge
of any default, the notice must specify the nature and status of the default.
Modification of the Indentures
The indentures provide that modifications and amendments may be made only with the consent of
the affected holders of at least a majority in principal amount of all outstanding debt securities
issued under that indenture. However, no such modification or amendment may, without the consent of
the holders of the debt securities affected by the modification or amendment:
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change the stated maturity of the principal of, or any premium or
make-whole amount on, or any installment of principal of or interest
on, any such debt security; |
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reduce the principal amount of, the rate or amount of interest on, or
any premium or make-whole amount payable on redemption of, any such
debt security; |
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reduce the amount of principal of an original issue discount security
that would be due and payable upon declaration of acceleration of the
maturity thereof or would be provable in bankruptcy, or adversely
affect any right of repayment of the holder of any such debt security; |
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change the place of payment or the coin or currency for payment of
principal of, or any premium or make-whole amount, or interest on, any
such debt security; |
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impair the right to institute suit for the enforcement of any payment
on or with respect to any such debt security; |
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reduce the percentage in principal amount of any outstanding debt
securities necessary to modify or amend the applicable indenture with
respect to such debt securities, to waive compliance with particular
provisions thereof or defaults and consequences thereunder or to
reduce the quorum or voting requirements set forth in the applicable
indenture; and |
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modify any of the foregoing provisions or any of the provisions
relating to the waiver of particular past defaults or covenants,
except to increase the required percentage to effect such action or to
provide that some of the other provisions may not be modified or
waived without the consent of the holder of such debt security. |
The holders of a majority in aggregate principal amount of the outstanding debt securities of
each series may, on behalf of all holders of debt securities of that series, waive, insofar as that
series is concerned, our compliance with material restrictive covenants of the applicable
indenture.
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We and our respective trustee may make modifications and amendments of an indenture without
the consent of any holder of debt securities for any of the following purposes:
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to evidence the succession of another person to us as obligor under such indenture; |
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to add to our covenants for the benefit of the holders of all or any series of
debt securities or to surrender any right or power conferred upon us in such
indenture; |
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to add events of default for the benefit of the holders of all or any series of
debt securities; |
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to add or change any provisions of an indenture (i) to change or eliminate
restrictions on the payment of principal of, or premium or make-whole amount, or
interest on, debt securities in bearer form, or (ii) to permit or facilitate the
issuance of debt securities in uncertificated form, provided that such action
shall not adversely affect the interests of the holders of the debt securities of
any series in any material respect; |
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to change or eliminate any provisions of an indenture, provided that any such
change or elimination shall become effective only when there are no debt
securities outstanding of any series created prior thereto which are entitled to
the benefit of such provision; |
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to secure the debt securities; |
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to establish the form or terms of debt securities of any series; |
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to provide for the acceptance of appointment by a successor trustee or facilitate
the administration of the trusts under an indenture by more than one trustee; |
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to cure any ambiguity, defect or inconsistency in an indenture, provided that such
action shall not adversely affect the interests of holders of debt securities of
any series issued under such indenture; and |
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to supplement any of the provisions of an indenture to the extent necessary to
permit or facilitate defeasance and discharge of any series of such debt
securities, provided that such action shall not adversely affect the interests of
the holders of the outstanding debt securities of any series. |
Voting
The indentures provide that in determining whether the holders of the requisite principal
amount of outstanding debt securities of a series have given any request, demand, authorization,
direction, notice, consent or waiver under the indentures or whether a quorum is present at a
meeting of holders of debt securities:
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the principal amount of an original issue discount security that shall
be deemed to be outstanding shall be the amount of the principal
thereof that would be due and payable as of the date of such
determination upon declaration of acceleration of the maturity
thereof; |
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the principal amount of any debt security denominated in a foreign
currency that shall be deemed outstanding shall be the United States
dollar equivalent, determined on the issue date for such debt
security, of the principal amount or, in the case of an original issue
discount security, the United States dollar equivalent on the issue
date of such debt security of the amount determined as provided in the
preceding bullet point; |
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the principal amount of an indexed security that shall be deemed
outstanding shall be the principal face amount of such indexed
security at original issuance, unless otherwise provided for such
indexed security under such indenture; and |
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debt securities owned by us or any other obligor upon the debt
securities or by any affiliate of ours or of such other obligor shall
be disregarded. |
The indentures contain provisions for convening meetings of the holders of debt securities of
a series. A meeting will be permitted to be called at any time by the applicable trustee, and also,
upon request, by us or the holders of at least 25% in principal amount of the outstanding debt
securities of such series, in any such case upon notice given as provided in such indenture. Except
for any consent that must be given by the holder of each debt security affected by the
modifications and amendments of an indenture described above, any resolution presented at a meeting
or adjourned meeting duly reconvened at which a quorum is present may be adopted by the affirmative
vote of the holders of a majority of the aggregate principal amount of the outstanding debt
securities of that series represented at such meeting.
Notwithstanding the preceding paragraph, except as referred to above, any resolution relating
to a request, demand, authorization, direction, notice, consent, waiver or other action that may be
made, given or taken by the holders of a specified percentage, which is less than a majority of the
aggregate principal amount of the outstanding debt securities of a series, may be adopted at a
meeting or adjourned meeting duly reconvened at which a quorum is present by the affirmative vote
of such specified percentage.
Any resolution passed or decision taken at any properly held meeting of holders of debt
securities of any series will be binding on all holders of such series. The quorum at any meeting
called to adopt a resolution, and at any reconvened meeting, will be persons holding or
representing a majority in principal amount of the outstanding debt securities of a series.
However, if any action is to be taken relating to a consent or waiver which may be given by the
holders of at least a specified percentage in principal amount of the outstanding debt securities
of a series, the persons holding such percentage will constitute a quorum.
Notwithstanding the foregoing provisions, the indentures provide that if any action is to be
taken at a meeting with respect to any request, demand, authorization, direction, notice, consent,
waiver or other action that such indenture expressly provides may be made, given or taken by the
holders of a specified percentage in principal amount of all outstanding debt securities affected
by such action, or of the holders of such series and one or more additional series:
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there shall be no minimum quorum requirement for such meeting; and |
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the principal amount of the outstanding debt securities of such series
that vote in favor of such request, demand, authorization, direction,
notice, consent, waiver or other action shall be taken account in
determining whether such request, demand, authorization, direction,
notice, consent, waiver or other action has been made, given or taken
under such indenture. |
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Subordination
Unless otherwise provided in the applicable prospectus supplement, subordinated debt
securities will be subject to the following subordination provisions.
Upon any distribution to our creditors in a liquidation, dissolution or reorganization, the
payment of the principal of and interest on any subordinated debt securities will be subordinated
to the extent provided in the applicable indenture in right of payment to the prior payment in full
of all senior debt. However, our obligation to make payments of the principal of and interest on
such subordinated debt securities otherwise will not be affected. No payment of principal or
interest will be permitted to be made on subordinated debt securities at any time if a default on
senior debt exists that permits the holders of such senior debt to accelerate its maturity and the
default is the subject of judicial proceedings or we receive notice of the default. After all
senior debt is paid in full and until the subordinated debt securities are paid in full, holders of
subordinated debt securities will be subrogated to the rights of holders of senior debt to the
extent that distributions otherwise payable to holders of subordinated debt securities have been
applied to the payment of senior debt. The subordinated indenture will not restrict the amount of
senior debt or other indebtedness of Aastrom and its subsidiaries. As a result of these
subordination provisions, in the event of a distribution of assets upon insolvency, holders of
subordinated debt securities may recover less, ratably, than our general creditors.
The term senior debt will be defined in the applicable indenture as the principal of and
interest on, or substantially similar payments to be made by us in respect of, other outstanding
indebtedness, whether outstanding at the date of execution of the applicable indenture or
subsequently incurred, created or assumed. The prospectus supplement may include a description of
additional terms implementing the subordination feature.
No restrictions will be included in any indenture relating to subordinated debt securities
upon the creation of additional senior debt.
If this prospectus is being delivered in connection with the offering of a series of
subordinated debt securities, the accompanying prospectus supplement or the information
incorporated in this prospectus by reference will set forth the approximate amount of senior debt
outstanding as of the end of our most recent fiscal quarter.
Discharge, Defeasance and Covenant Defeasance
Unless otherwise indicated in the applicable prospectus supplement, the indentures allow us to
discharge our obligations to holders of any series of debt securities issued under any indenture
when:
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either (i) all securities of such series have already been delivered
to the applicable trustee for cancellation; or (ii) all securities of
such series have not already been delivered to the applicable trustee
for cancellation but (a) have become due and payable, (b) will become
due and payable within one year, or (c) if redeemable at our option,
are to be redeemed within one year, and we have irrevocably deposited
with the applicable trustee, in trust, funds in such currency or
currencies, currency unit or units |
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or composite currency or currencies
in which such debt securities are payable, an amount sufficient to pay
the entire indebtedness on such debt securities in respect of
principal and any premium or make-whole amount, and interest to the
date of such deposit if such debt securities have become due and
payable or, if they have not, to the stated maturity or redemption
date; |
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we have paid or caused to be paid all other sums payable; and |
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an officers certificate and an opinion of counsel stating the
conditions to discharging the debt securities have been satisfied has
been delivered to the trustee. |
Unless otherwise indicated in the applicable prospectus supplement, the indentures provide
that, upon our irrevocable deposit with the applicable trustee, in trust, of an amount, in such
currency or currencies, currency unit or units or composite currency or currencies in which such
debt securities are payable at stated maturity, or government obligations, or both, applicable to
such debt securities, which through the scheduled payment of principal and interest in accordance
with their terms will provide money in an amount sufficient to pay the principal of, and any
premium or make-whole amount, and interest on, such debt securities, and any mandatory sinking fund
or analogous payments thereon, on the scheduled due dates therefor, the issuing company may elect
either:
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to defease and be discharged from any and all obligations with respect
to such debt securities; or |
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to be released from its obligations with respect to such debt
securities under the applicable indenture or, if provided in the
applicable prospectus supplement, its obligations with respect to any
other covenant, and any omission to comply with such obligations shall
not constitute an event of default with respect to such debt
securities. |
Notwithstanding the above, we may not elect to defease and be discharged from the obligation
to pay any additional amounts upon the occurrence of particular events of tax, assessment or
governmental charge with respect to payments on such debt securities and the obligations to
register the transfer or exchange of such debt securities, to replace temporary or mutilated,
destroyed, lost or stolen debt securities, to maintain an office or agency in respect of such debt
securities, or to hold monies for payment in trust.
The indentures only permit us to establish the trust described in the paragraph above if,
among other things, we have delivered to the applicable trustee an opinion of counsel to the effect
that the holders of such debt securities will not recognize income, gain or loss for United States
federal income tax purposes as a result of such defeasance or covenant defeasance and will be
subject to United States federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such defeasance or covenant defeasance had not occurred. Such
opinion of counsel, in the case of defeasance, will be required to refer to and be based upon a
ruling received from or published by the Internal Revenue Service or a change in applicable United
States federal income tax law occurring after the date of the indenture. In the event of such
defeasance, the holders of such debt securities would be able to look only to such trust fund for
payment of principal, any premium or make-whole amount, and interest.
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When we use the term government obligations, we mean securities that are:
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direct obligations of the United States or the government that issued
the foreign currency in which the debt securities of a particular
series are payable, for the payment of which its full faith and credit
is pledged; or |
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obligations of a person controlled or supervised by and acting as an
agency or instrumentality of the United States or other government
that issued the foreign currency in which the debt securities of such
series are payable, the payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States or such
other government, which are not callable or redeemable at the option
of the issuer thereof and shall also include a depository receipt
issued by a bank or trust company as custodian with respect to any
such government obligation or a specific payment of interest on or
principal of any such government obligation held by such custodian for
the account of the holder of a depository receipt. However, except as
required by law, such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository
receipt from any amount received by the custodian in respect of the
government obligation or the specific payment of interest on or
principal of the government obligation evidenced by such depository
receipt. |
Unless otherwise provided in the applicable prospectus supplement, if after we have deposited
funds and/or government obligations to effect defeasance or covenant defeasance with respect to
debt securities of any series, (i) the holder of a debt security of such series is entitled to, and
does, elect under the terms of the applicable indenture or the terms of such debt security to
receive payment in a currency, currency unit or composite currency other than that in which such
deposit has been made in respect of such debt security, or (ii) a conversion event occurs in
respect of the currency, currency unit or composite currency in which such deposit has been made,
the indebtedness represented by such debt security will be deemed to have been, and will be, fully
discharged and satisfied through the payment of the principal of, and premium or make-whole amount,
and interest on, such debt security as they become due out of the proceeds yielded by converting
the amount so deposited in respect of such debt security into the currency, currency unit or
composite currency in which such debt security becomes payable as a result of such election or such
cessation of usage based on the applicable market exchange rate.
When we use the term conversion event, we mean the cessation of use of:
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a currency, currency unit or composite currency both by the government
of the country that issued such currency and for the settlement of
transactions by a central bank or other public institutions of or
within the international banking community; |
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the European Currency Unit both within the European Monetary System
and for the settlement of transactions by public institutions of or
within the European Communities; or |
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any currency unit or composite currency other than the European
Currency Unit for the purposes for which it was established. |
Unless otherwise provided in the applicable prospectus supplement, all payments of principal
of, and any premium or make-whole amount, and interest on, any debt security that is payable in a
foreign currency that ceases to be used by its government of issuance shall be made in United
States dollars.
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In the event that (i) we effect covenant defeasance with respect to any debt securities
and (ii) those debt securities are declared due and payable because of the occurrence of any event
of default, the amount in the currency, currency unit or composite currency in which such debt
securities are payable, and government obligations on deposit with the applicable trustee, will be
sufficient to pay amounts due on such debt securities at the time of their stated maturity but may
not be sufficient to pay amounts due on such debt securities at the time of the acceleration
resulting from such event of default. However, the issuing company would remain liable to make
payments of any amounts due at the time of acceleration.
The applicable prospectus supplement may further describe the provisions, if any, permitting
such defeasance or covenant defeasance, including any modifications to the provisions described
above, with respect to the debt securities of or within a particular series.
Conversion Rights
The terms and conditions, if any, upon which the debt securities are convertible into common
stock or other securities of Aastrom will be set forth in the applicable prospectus supplement. The
terms will include whether the debt securities are convertible into shares of common stock or other
securities of Aastrom, the conversion price, or manner of calculation thereof, the conversion
period, provisions as to whether conversion will be at the issuing companys option or the option
of the holders, the events requiring an adjustment of the conversion price and provisions affecting
conversion in the event of the redemption of the debt securities and any restrictions on
conversion.
Global Securities
The debt securities of a series may be issued in whole or in part in the form of one or more
global securities that will be deposited with, or on behalf of, a depository identified in the
applicable prospectus supplement relating to such series. Global securities, if any, issued in the
United States are expected to be deposited with The Depository Trust Company, or DTC, as
depository. We may issue global securities in either registered or bearer form and in either
temporary or permanent form. We will describe the specific terms of the depository arrangement with
respect to a series of debt securities in the applicable prospectus supplement relating to such
series. We expect that unless the applicable prospectus supplement provides otherwise, the
following provisions will apply to depository arrangements.
Once a global security is issued, the depository for such global security or its nominee will
credit on its book-entry registration and transfer system the respective principal amounts of the
individual debt securities represented by such global security to the accounts of participants that
have accounts with such depository. Such accounts shall be designated by the underwriters, dealers
or agents with respect to such debt securities or by us if we offer such debt securities directly.
Ownership of beneficial interests in such global security will be limited to participants with the
depository or persons that may hold interests through those participants.
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We expect that, under procedures established by DTC, ownership of beneficial interests in any
global security for which DTC is the depository will be shown on, and the transfer of that
ownership will be effected only through, records maintained by DTC or its nominee, with respect to
beneficial interests of participants with the depository, and records of participants, with
respect to beneficial interests of persons who hold through participants with the depository.
Neither we nor the trustee will have any responsibility or liability for any aspect of the records
of DTC or for maintaining, supervising or reviewing any records of DTC or any of its participants
relating to beneficial ownership interests in the debt securities. The laws of some states require
that certain purchasers of securities take physical delivery of such securities in definitive form.
Such limits and laws may impair the ability to own, pledge or transfer beneficial interest in a
global security.
So long as the depository for a global security or its nominee is the registered owner of such
global security, such depository or such nominee, as the case may be, will be considered the sole
owner or holder of the debt securities represented by the global security for all purposes under
the applicable indenture. Except as described below or in the applicable prospectus supplement,
owners of beneficial interest in a global security will not be entitled to have any of the
individual debt securities represented by such global security registered in their names, will not
receive or be entitled to receive physical delivery of any such debt securities in definitive form
and will not be considered the owners or holders thereof under the applicable indenture. Beneficial
owners of debt securities evidenced by a global security will not be considered the owners or
holders thereof under the applicable indenture for any purpose, including with respect to the
giving of any direction, instructions or approvals to the trustee under the indenture. Accordingly,
each person owning a beneficial interest in a global security with respect to which DTC is the
depository must rely on the procedures of DTC and, if such person is not a participant with the
depository, on the procedures of the participant through which such person owns its interests, to
exercise any rights of a holder under the applicable indenture. We understand that, under existing
industry practice, if DTC requests any action of holders or if an owner of a beneficial interest in
a global security desires to give or take any action which a holder is entitled to give or take
under the applicable indenture, DTC would authorize the participants holding the relevant
beneficial interest to give or take such action, and such participants would authorize beneficial
owners through such participants to give or take such actions or would otherwise act upon the
instructions of beneficial owners holding through them.
Payments of principal of, and any premium or make-whole amount, and interest on, individual
debt securities represented by a global security registered in the name of a depository or its
nominee will be made to or at the direction of the depository or its nominee, as the case may be,
as the registered owner of the global security under the applicable indenture. Under the terms of
the applicable indenture, we and the trustee may treat the persons in whose name debt securities,
including a global security, are registered as the owners thereof for the purpose of receiving such
payments. Consequently, neither we nor the trustee have or will have any responsibility or
liability for the payment of such amounts to beneficial owners of debt securities including
principal, any premium or make-whole amount, or interest. We believe, however, that it is currently
the policy of DTC to immediately credit the accounts of relevant participants with such payments,
in amounts proportionate to their respective holdings of beneficial interests in the relevant
global security as shown on the records of DTC or its nominee. We also expect that payments by
participants to owners of beneficial interests in such global security held through such
participants will be governed by standing instructions and customary practices, as is the case with
securities held for the account of customers in bearer form or registered in street name, and will
be the responsibility of such participants. Redemption notices with respect to any debt securities
represented by a global security will be sent to the depository or its nominee. If less
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than all of the debt securities of any series are to be redeemed, we expect the depository to
determine the amount of the interest of each participant in such debt securities to be redeemed to
be determined by lot. Neither we, the trustee, any paying agent nor the security registrar for such
debt securities will have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests in the global security for such debt
securities or for maintaining any records with respect thereto.
Neither we nor the trustee will be liable for any delay by the holders of a global security or
the depository in identifying the beneficial owners of debt securities, and we and the trustee may
conclusively rely on, and will be protected in relying on, instructions from the holder of a global
security or the depository for all purposes. The rules applicable to DTC and its participants are
on file with the SEC.
If a depository for any debt securities is at any time unwilling, unable or ineligible to
continue as depository and we do not appoint a successor depository within 90 days, we will issue
individual debt securities in exchange for the global security representing such debt securities.
In addition, we may at any time and our sole discretion, subject to any limitations described in
the applicable prospectus supplement relating to such debt securities, determine not to have any of
such debt securities represented by one or more global securities and in such event will issue
individual debt securities in exchange for the global security or securities representing such debt
securities. Individual debt securities so issued will be issued in denominations of $1,000 and
integral multiples of $1,000.
The debt securities of a series may also be issued in whole or in part in the form of one or
more bearer global securities that will be deposited with a depository, or with a nominee for such
depository, identified in the applicable prospectus supplement. Any such bearer global securities
may be issued in temporary or permanent form. The specific terms and procedures, including the
specific terms of the depositary arrangement, with respect to any portion of a series of debt
securities to be represented by one or more bearer global securities will be described in the
applicable prospectus supplement.
No Recourse
There is no recourse under any obligation, covenant or agreement in the applicable indenture
or with respect to any security against any of our or our successors past, present or future
shareholders, employees, officers or directors.
Description of Warrants
The following description, together with the additional information we may include in any
applicable prospectus supplements, summarizes the material terms and provisions of the warrants
that we may offer under this prospectus and the related warrant agreements and warrant
certificates. While the terms summarized below will apply generally to any warrants that we may
offer, we will describe the particular terms of any series of warrants in more detail in the
applicable prospectus supplement. If we indicate in the prospectus supplement, the terms of any
warrants offered under that prospectus supplement may differ from the terms described below.
Specific warrant agreements will contain additional important terms and provisions and will be
incorporated by reference as an exhibit to the registration statement, which includes this
prospectus.
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General
We may issue warrants for the purchase of common stock, preferred stock and/or debt securities
in one or more series. We may issue warrants independently or together with common stock, preferred
stock and/or debt securities, and the warrants may be attached to or separate from these
securities.
We will evidence each series of warrants by warrant certificates that we will issue under a
separate warrant agreement. We will enter into the warrant agreement with a warrant agent. We will
indicate the name and address of the warrant agent in the applicable prospectus supplement relating
to a particular series of warrants.
We will describe in the applicable prospectus supplement the terms of the series of warrants,
including:
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the offering price and aggregate number of warrants offered; |
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the currency for which the warrants may be purchased; |
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if applicable, the designation and terms of the securities with which the warrants are
issued and the number of warrants issued with each such security or each principal amount
of such security; |
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if applicable, the date on and after which the warrants and the related securities will
be separately transferable; |
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in the case of warrants to purchase debt securities, the principal amount of debt
securities purchasable upon exercise of one warrant and the price at, and currency in
which, this principal amount of debt securities may be purchased upon such exercise; |
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in the case of warrants to purchase common stock or preferred stock, the number of
shares of common stock or preferred stock, as the case may be, purchasable upon the
exercise of one warrant and the price at which these shares may be purchased upon such
exercise; |
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the effect of any merger, consolidation, sale or other disposition of our business on
the warrant agreement and the warrants; |
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the terms of any rights to redeem or call the warrants; |
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any provisions for changes to or adjustments in the exercise price or number of
securities issuable upon exercise of the warrants; |
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the dates on which the right to exercise the warrants will commence and expire; |
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the manner in which the warrant agreement and warrants may be modified; |
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federal income tax consequences of holding or exercising the warrants; |
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the terms of the securities issuable upon exercise of the warrants; and |
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any other specific terms, preferences, rights or limitations of or restrictions on the
warrants. |
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Before exercising their warrants, holders of warrants will not have any of the rights of
holders of the securities purchasable upon such exercise, including:
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in the case of warrants to purchase debt securities, the right to receive payments of
principal of, or any premium or interest on, the debt securities purchasable upon exercise
or to enforce covenants in the applicable indenture; or |
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in the case of warrants to purchase common stock or preferred stock, the right to
receive any dividends or payments upon our liquidation, dissolution or winding up or to
exercise any voting rights. |
Exercise of Warrants
Each warrant will entitle the holder to purchase the securities that we specify in the
applicable prospectus supplement at the exercise price that we describe in the applicable
prospectus supplement. Unless we otherwise specify in the applicable prospectus supplement, holders
of the warrants may exercise the warrants at any time up to 5:00 P.M. New York time on the
expiration date that we set forth in the applicable prospectus supplement. After the close of
business on the expiration date, unexercised warrants will become void.
Holders of the warrants may exercise the warrants by delivering the warrant certificate
representing the warrants to be exercised together with specified information, and paying the
required amount to the warrant agent in immediately available funds, as provided in the applicable
prospectus supplement. We will set forth on the reverse side of the warrant certificate and in the
applicable prospectus supplement the information that the holder of the warrant will be required to
deliver to the warrant agent upon exercise.
Upon receipt of the required payment and the warrant certificate properly completed and duly
executed at the corporate trust office of the warrant agent or any other office indicated in the
applicable prospectus supplement, we will issue and deliver the securities purchasable upon such
exercise. If fewer than all of the warrants represented by the warrant certificate are exercised,
then we will issue a new warrant certificate for the remaining amount of warrants. If we so
indicate in the applicable prospectus supplement, holders of the warrants may surrender securities
as all or part of the exercise price for warrants.
Enforceability of Rights By Holders of Warrants
Each warrant agent will act solely as our agent under the applicable warrant agreement and
will not assume any obligation or relationship of agency or trust with any holder of any warrant. A
single bank or trust company may act as warrant agent for more than one issue or series of
warrants. A warrant agent will have no duty or responsibility in case of any default by us under
the applicable warrant agreement or warrant, including any duty or responsibility to initiate any
proceedings at law or otherwise, or to make any demand upon us. Any holder of a warrant may,
without the consent of the related warrant agent or the holder of any other warrant, enforce by
appropriate legal action its right to exercise, and receive the securities purchasable upon
exercise of, its warrants.
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Description of Units
We may issue units comprised of shares of common stock, shares of preferred stock, debt
securities and warrants in any combination. We may issue units in such amounts and in as many
distinct series as we wish. This section outlines certain provisions of the units that we may
issue. If we issue units, they will be issued under one or more unit agreements to be entered into
between us and a bank or other financial institution, as unit agent. The information described in
this section may not be complete in all respects and is qualified entirely by reference to the unit
agreement with respect to the units of any particular series. The specific terms of any series of
units offered will be described in the applicable prospectus supplement. If so described in a
particular supplement, the specific terms of any series of units may differ from the general
description of terms presented below. We urge you to read any prospectus supplement related to any
series of units we may offer, as well as the complete unit agreement and unit certificate that
contain the terms of the units. If we issue units, forms of unit agreements and unit certificates
relating to such units will be incorporated by reference as exhibits to the registration statement,
which includes this prospectus.
Each unit that we may issue will be issued so that the holder of the unit is also the holder
of each security included in the unit. Thus, the holder of a unit will have the rights and
obligations of a holder of each included security. The unit agreement under which a unit is issued
may provide that the securities included in the unit may not be held or transferred separately, at
any time or at any time before a specified date. The applicable prospectus supplement may describe:
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the designation and terms of the units and of the securities comprising the units,
including whether and under what circumstances those securities may be held or
transferred separately; |
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any provisions of the governing unit agreement; |
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the price or prices at which such units will be issued; |
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the applicable United States federal income tax considerations relating to the units; |
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any provisions for the issuance, payment, settlement, transfer or exchange of the
units or of the securities comprising the units; and |
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any other terms of the units and of the securities comprising the units. |
The provisions described in this section, as well as those described under Description of
Capital Stock, Description of Debt Securities and Description of Warrants will apply to the
securities included in each unit, to the extent relevant and as may be updated in any prospectus
supplements.
Issuance in Series
We may issue units in such amounts and in as many distinct series as we wish. This section
summarizes terms of the units that apply generally to all series. Most of the financial and other
specific terms of your series will be described in the applicable prospectus supplement.
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Unit Agreements
We will issue the units under one or more unit agreements to be entered into between us and a
bank or other financial institution, as unit agent. We may add, replace or terminate unit agents
from time to time. We will identify the unit agreement under which each series of units will be
issued and the unit agent under that agreement in the applicable prospectus supplement.
The following provisions will generally apply to all unit agreements unless otherwise stated
in the applicable prospectus supplement.
Modification without Consent
We and the applicable unit agent may amend any unit or unit agreement without the consent of
any holder:
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to cure any ambiguity; any provisions of the governing unit agreement
that differ from those described below; |
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to correct or supplement any defective or inconsistent provision; or |
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to make any other change that we believe is necessary or desirable and
will not adversely affect the interests of the affected holders in any
material respect. |
We do not need any approval to make changes that affect only units to be issued after the
changes take effect. We may also make changes that do not adversely affect a particular unit in any
material respect, even if they adversely affect other units in a material respect. In those cases,
we do not need to obtain the approval of the holder of the unaffected unit; we need only obtain any
required approvals from the holders of the affected units.
Modification with Consent
We may not amend any particular unit or a unit agreement with respect to any particular unit
unless we obtain the consent of the holder of that unit, if the amendment would:
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impair any right of the holder to exercise or enforce any right under
a security included in the unit if the terms of that security require
the consent of the holder to any changes that would impair the
exercise or enforcement of that right; or |
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reduce the percentage of outstanding units or any series or class the
consent of whose holders is required to amend that series or class, or
the applicable unit agreement with respect to that series or class, as
described below. |
Any other change to a particular unit agreement and the units issued under that agreement
would require the following approval:
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If the change affects only the units of a particular series issued
under that agreement, the change must be approved by the holders of a
majority of the outstanding units of that series; or |
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If the change affects the units of more than one series issued under
that agreement, it must be approved by the holders of a majority of
all outstanding units of all series affected by the change, with the
units of all the affected series voting together as one class for this
purpose. |
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These provisions regarding changes with majority approval also apply to changes affecting any
securities issued under a unit agreement, as the governing document.
In each case, the required approval must be given by written consent.
Unit Agreements Will Not Be Qualified under Trust Indenture Act
No unit agreement will be qualified as an indenture, and no unit agent will be required to
qualify as a trustee, under the Trust Indenture Act. Therefore, holders of units issued under unit
agreements will not have the protections of the Trust Indenture Act with respect to their units.
Mergers and Similar Transactions Permitted; No Restrictive Covenants or Events of Default
The unit agreements will not restrict our ability to merge or consolidate with, or sell our
assets to, another corporation or other entity or to engage in any other transactions. If at any
time we merge or consolidate with, or sell our assets substantially as an entirety to, another
corporation or other entity, the successor entity will succeed to and assume our obligations under
the unit agreements. We will then be relieved of any further obligation under these agreements.
The unit agreements will not include any restrictions on our ability to put liens on our
assets, including our interests in our subsidiaries, nor will they restrict our ability to sell our
assets. The unit agreements also will not provide for any events of default or remedies upon the
occurrence of any events of default.
Governing Law
The unit agreements and the units will be governed by Michigan law.
Form, Exchange and Transfer
We will issue each unit in globali.e., book-entryform only. Units in book-entry form will
be represented by a global security registered in the name of a depositary, which will be the
holder of all the units represented by the global security. Those who own beneficial interests in a
unit will do so through participants in the depositarys system, and the rights of these indirect
owners will be governed solely by the applicable procedures of the depositary and its participants.
We will describe book-entry securities, and other terms regarding the issuance and registration of
the units in the applicable prospectus supplement.
Each unit and all securities comprising the unit will be issued in the same form.
If we issue any units in registered, non-global form, the following will apply to them.
The units will be issued in the denominations stated in the applicable prospectus supplement.
Holders may exchange their units for units of smaller denominations or combined into fewer units of
larger denominations, as long as the total amount is not changed.
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Holders may exchange or transfer their units at the office of the unit
agent. Holders may also replace lost, stolen, destroyed or mutilated
units at that office. We may appoint another entity to perform these
functions or perform them ourselves. |
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Holders will not be required to pay a service charge to transfer or
exchange their units, but they may be required to pay for any tax or
other governmental charge associated with the transfer or exchange.
The transfer or exchange, and any replacement, will be made only if
our transfer agent is satisfied with the holders proof of legal
ownership. The transfer agent may also require an indemnity before
replacing any units. |
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If we have the right to redeem, accelerate or settle any units before
their maturity, and we exercise our right as to less than all those
units or other securities, we may block the exchange or transfer of
those units during the period beginning 15 days before the day we mail
the notice of exercise and ending on the day of that mailing, in order
to freeze the list of holders to prepare the mailing. We may also
refuse to register transfers of or exchange any unit selected for
early settlement, except that we will continue to permit transfers and
exchanges of the unsettled portion of any unit being partially
settled. We may also block the transfer or exchange of any unit in
this manner if the unit includes securities that are or may be
selected for early settlement. |
Only the depositary will be entitled to transfer or exchange a unit in global form, since it
will be the sole holder of the unit.
Payments and Notices
In making payments and giving notices with respect to our units, we will follow the procedures
as described in the applicable prospectus supplement.
53
LEGAL MATTERS
Certain legal matters, including the legality of the securities offered, will be passed upon
for us by Dykema Gossett PLLC, Ann Arbor, Michigan, acting as special counsel to the Company.
EXPERTS
The consolidated financial statements incorporated in this Prospectus by reference to the
Transition Report on Form 10-KT for the six month period ended December 31, 2010
have been so incorporated in reliance on the report of PricewaterhouseCoopers LLP, an
independent registered public accounting firm, given on the authority of said firm as
experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We are subject to the information requirements of the Exchange Act and, in accordance
therewith, file annual, quarterly and special reports, proxy statements and other information with
the SEC. You may read and copy any document we file at the SECs Public Reference Room at 100 F
Street, N.E., Washington, D.C. 20549. You may call the SEC at 1-800-SEC-0330 for further
information on the operation of the Public Reference Room. These documents also may be accessed
through the SECs electronic data gathering, analysis and retrieval system, or EDGAR, via
electronic means, including the SECs home page on the Internet (www.sec.gov).
We have the authority to designate and issue more than one class or series of stock having
various preferences, conversion and other rights, voting powers, restrictions, limitations as to
dividends, qualifications, and terms and conditions of redemption. See Description of Capital
Stock. We will furnish a full statement of the relative rights and preferences of each class or
series of our stock which has been so designated and any restrictions on the ownership or transfer
of our stock to any shareholder upon request and without charge. Written requests for such copies
should be directed to Aastrom Biosciences, Inc., 24 Frank Lloyd Wright Drive, P.O. Box 376, Ann
Arbor, Michigan 48106, attention: Investor Relations or by telephone request to (734) 418-4400. Our
website is located at http://www.aastrom.com. Information contained on our website is not
incorporated by reference into this prospectus and, therefore, is not part of this prospectus or
any accompanying prospectus supplement.
INCORPORATION BY REFERENCE
This prospectus incorporates by reference important business and financial information that we
file with the SEC and that we are not including in or delivering with this prospectus. As the SEC
allows, incorporated documents are considered part of this prospectus, and we can disclose
important information to you by referring you to those documents.
|
|
|
our transition report on Form 10-KT for the transition period from
July 1, 2010 to December 31, 2010, filed with the SEC on April 14,
2011; |
54
|
|
|
portions of our definitive Proxy Statement for the Annual Meeting of
Shareholders held on June 7, 2011 that have been incorporated by
reference into the Form 10-KT; |
|
|
|
|
our quarterly report on Form 10-Q, filed with the SEC on May 16, 2011; |
|
|
|
|
our current reports on Form 8-K filed with the SEC on January 19,
2011, February 14, 2011, March 25, 2011, June 1, 2011 and June 9, 2011; and |
|
|
|
|
the description of our common stock contained in our registration
statement on Form S-1, which was filed with the SEC on November 1,
1996, including any amendment or report filed for the purpose of
updating such description. |
All documents we file with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the
Exchange Act, except as to any portion of any report or document that is not deemed filed under
such provisions, (i) on or after the date of filing of the registration statement containing this
prospectus and prior to the effectiveness of the registration statement and (ii) on or after the
date of this prospectus until the earlier of the date on which all of the securities registered
hereunder have been sold or the registration statement of which this prospectus is a part has been
withdrawn, shall be deemed incorporated by reference in this prospectus and to be a part of this
prospectus from the date of filing of those documents.
You may request a copy of any or all of these filings, at no cost, by writing to us at:
Aastrom Biosciences, Inc., 24 Frank Lloyd Wright Drive, P.O. Box 276, Ann Arbor, Michigan 48106,
attention: Investor Relations or by telephoning us at (734) 418-4400. These filings may also be
obtained through our website located at http://www.aastrom.com.
You should rely only on the information incorporated by reference or provided in this
prospectus or any supplement. We have not authorized anyone else to provide you with different
information. You should not assume that information in this prospectus or any supplement is
accurate as of any date other than the date on the front of these documents.
We advise that there have been no material changes in our affairs that have occurred since the
end of the latest fiscal period for which audited financial statements were included in the latest
Form 10-K or 10-KT and that have not been described in a Form 10-Q or Form 8-K filed under the
Exchange Act.
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
FOR SECURITIES ACT LIABILITIES
As permitted by the MBCA, our Bylaws contain provisions that permit us to indemnify our
directors and officers to the full extent permitted by Michigan law and our Charter contains
provisions that eliminate the personal liability of our directors in each case for monetary damages
to us or our shareholders for breach of their fiduciary duties, except to the extent that Michigan
law prohibits indemnification or elimination of liability. These provisions do not limit or
eliminate our rights or the rights of any shareholder to seek an injunction or any other
non-monetary relief in the event of a breach of a directors or officers fiduciary duty. In
addition, these provisions apply only to claims against a director or officer arising out of his or
her role as a director or officer and do not relieve a director or officer from liability if he or she
engaged in willful misconduct or a knowing violation of the criminal law or any federal or state
securities law.
55
The rights of indemnification provided in our Bylaws are not exclusive of any other rights
that may be available under any insurance or other agreement, by vote of shareholders or
disinterested directors or otherwise.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been
informed that in the opinion of the SEC this type of indemnification is against public policy as
expressed in the Securities Act and is therefore unenforceable.
56
GLOSSARY
|
|
|
TERM |
|
DEFINITION |
Adverse Event
|
|
Any adverse change in health or
side-effect that occurs in a person
participating in a clinical trial,
from the time they consent to joining
the trial until a pre-specified
period of time after their treatment
has been completed. |
|
|
|
Autologous
|
|
Originating from the patient
receiving treatment. (Aastrom uses
only autologous cells) |
|
|
|
BLA Biologics License Application
|
|
An application containing product
safety, efficacy and manufacturing
information required by the FDA to
market biologics products in the U.S. |
|
|
|
Catheter-DCM
|
|
Aastroms U.S. Phase 2 clinical trial
investigating catheter-based delivery
of our product in the treatment of
dilated cardiomyopathy. |
|
|
|
CLI Critical Limb Ischemia
|
|
A vascular disease characterized by
insufficient blood flow in the lower
extremities that causes severe pain,
tissue loss or both. |
|
|
|
Controlled Clinical Trial
|
|
A clinical study that compares
patients receiving a specific
treatment to patients receiving an
alternate treatment for the condition
of interest. The alternate treatment
may be another active treatment,
standard of care for the condition
and/or a placebo (inactive)
treatment. |
|
|
|
DCM Dilated Cardiomyopathy
|
|
A chronic cardiac disease where
expansion of the patients heart
reduces the pumping function to a
point that the normal circulation of
blood cannot be maintained. |
|
|
|
Double-Blind Clinical Trial
|
|
Clinical trials in which neither the
patient nor the physician know if the
patient received the experimental
treatment or a control/placebo. |
|
|
|
FDA Food & Drug Administration
|
|
The U.S. FDA ensures that medicines,
medical devices, and
radiation-emitting consumer products
are safe and effective. Authorized by
Congress to enforce the Federal Food,
Drug, and Cosmetic Act and several
other public health laws, the agency
monitors the manufacture, import,
transport, storage, and sale of $1
trillion worth of goods annually. |
|
|
|
GMP Good Manufacturing Practice
|
|
GMP regulations require that
manufacturers, processors, and
packagers of drugs, medical devices,
some food, and blood take proactive
steps to ensure that their products
are safe, pure, and effective. GMP
regulations require a quality
approach to manufacturing, enabling
companies to minimize or eliminate
instances of contamination, mix-ups,
and errors. |
|
|
|
IMPACT-DCM
|
|
Aastroms U.S. Phase 2 clinical trial
investigating surgical delivery of
our product in the treatment of
dilated cardiomyopathy. |
|
|
|
IND Investigational New Drug
|
|
An application submitted to the FDA
for a new drug or biologic that, if
allowed, will be used in a clinical
trial. |
|
|
|
Ischemia
|
|
A shortage or inadequate flow
of blood to a body part
(commonly an organ or tissue)
caused by a constriction or
obstruction of the blood
vessels supplying it. |
57
|
|
|
TERM |
|
DEFINITION |
LVEF Left Ventricular
Ejection Fraction
|
|
The fraction of blood pumped
out of the left ventricle with
each heart beat. |
|
|
|
Open-label Clinical Trial
|
|
A trial in which both the
treating physician and the
patient know whether they are
receiving the experimental
treatment or control/placebo
treatment. |
|
|
|
Orphan Drug Designation
|
|
Orphan drug refers to a drug
or biologic that is intended
for use in the treatment of a
rare disease or condition.
Orphan drug designation from
the U.S. Food and Drug
Association (FDA) qualifies the
sponsor to receive certain
benefits from the Government in
exchange for developing the
drug for a rare disease or
condition. The drug must then
go through the FDA marketing
approval process like any other
drug or biologic which
evaluates for safety and
efficacy. Usually a sponsor
receives a quicker review time
and lower application fees for
an orphan product. |
|
|
|
Phase 1 Clinical Trial
|
|
A Phase 1 trial represents an
initial study in a small group
of patients to test for safety
and other relevant factors. |
|
|
|
Phase 2 Clinical Trial
|
|
A Phase 2 trial represents a
study in a moderate number of
patients to assess the safety
and efficacy of a product. |
|
|
|
Phase 2b Clinical Trial
|
|
A Phase 2b trial is a
moderately-sized Phase 2 trial
that is more specifically
designed assess the efficacy of
a product than a Phase 2a
trial. |
|
|
|
Phase 3 Clinical Trial
|
|
Phase 3 studies are initiated
to establish safety and
efficacy in an expanded patient
population at multiple clinical
trial sites and are generally
larger than trials in earlier
phases of development. |
|
|
|
Progenitor Cells
|
|
A parent cell that gives rise
to a distinct cell lineage by a
series of cell divisions. |
|
|
|
Prospective Clinical Trial
|
|
A clinical trial in which
participants are identified and
then followed throughout the
study going forward in time. |
|
|
|
Randomized Clinical Trial
|
|
A clinical trial in which the
participants are assigned
randomly to different treatment
groups. |
|
|
|
SPP Single-Pass Perfusion
|
|
SPP is Aastroms proprietary
technology that controls gas
and cell culture media exchange
to enable the replication of
early-stage stem and progenitor
cells while preventing their
differentiation into mature
cells. |
|
|
|
Stem Cell
|
|
Unspecialized
(undifferentiated) cells that
retain the ability to divide
throughout a lifetime and give
rise to more specialized
(differentiated) cells which
take the place of cells that
die or are lost. |
|
|
|
|
|
In culture, these
undifferentiated cells possess
the ability to divide for
indefinite periods in culture
and may give rise to highly
specialized cells. |
58
$100,000,000
AASTROM
BIOSCIENCES, INC.
Common Stock
Preferred Stock
Debt Securities
Warrants
Units
PROSPECTUS
, 201
We have not authorized any dealer, salesperson or other person to give any
information or represent anything not contained in this prospectus. You must not rely on any
unauthorized information. If anyone provides you with different or inconsistent information, you
should not rely on it. This prospectus does not offer to sell any shares in any jurisdiction where
it is unlawful. Neither the delivery of this prospectus, nor any sale made hereunder, shall create
any implication that the information in this prospectus is correct after the date hereof.
Part IIINFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution
The expenses payable by Aastrom Biosciences, Inc. (the Registrant or the Company) in
connection with the issuance and distribution of the securities being registered (other than
underwriting discounts and commissions, if any) are set forth below. Each item listed is estimated,
except for the Securities and Exchange Commission (the SEC) registration fee.
|
|
|
|
|
Securities and Exchange Commission registration fee |
|
$ |
11,610 |
|
Legal fees and expenses |
|
|
* |
|
Accounting fees and expenses |
|
|
* |
|
Printing fees and expenses |
|
|
* |
|
Transfer agent and trustee fees |
|
|
* |
|
Miscellaneous |
|
|
* |
|
|
|
|
|
|
Total |
|
$ |
11,610 |
|
|
|
|
* |
|
Estimated expenses not presently known |
Item 15. Indemnification of Directors and Officers
Sections 1561 through 1571 of the Michigan Business Corporation Act (the MBCA) authorize a
corporation to grant or a court to award, indemnity to directors, officers, employees and agents in
terms sufficiently broad to permit such indemnification under certain circumstances for liabilities
(including reimbursement for expenses incurred) arising under the Securities Act of 1933, as
amended (the Securities Act of 1933).
The Companys Amended and Restated Bylaws (the Bylaws) provide that the Company shall, to
the fullest extent authorized or permitted by the MBCA, or other applicable law, indemnify a
director or officer who was or is a party or is threatened to be made a party to any proceeding by
or in the right of the Company to procure a judgment in its favor by reason of the fact that such
person is or was a director, officer, employee or agent of the Company, against expenses, including
actual and reasonable attorneys fees, and amounts paid in settlement incurred in connection with
the action or suit, if the indemnitee acted in good faith and in a manner the person reasonably
believed to be in, or not opposed to, the best interests of the Company or its shareholders. This
section also authorizes the Company to advance expenses incurred by any agent of the Company in
defending any proceeding prior to the final disposition
of such proceeding upon receipt of an undertaking by or on behalf of the agent to repay such
amount unless it shall be determined ultimately that the agent is entitled to be indemnified.
II-1
The Bylaws also authorize the Company to purchase and maintain insurance on behalf of any
person who is or was a director, officer, employee or agent of the Company against any liability
asserted against or incurred by such person in such capacity or arising out of such persons status
as such, regardless of whether the Company would have the power to indemnify such person against
such liability under the provisions of the MBCA.
The Company has entered into indemnification agreements with certain individuals which contain
provisions that may in some respects be broader than the specific indemnification provisions
contained under applicable law. The indemnification agreement may require the Company, among other
things, to indemnify such directors, officers and key personnel against certain liabilities that
may arise by reason of their status or service as directors, officers or employees of the Company,
to advance the expenses incurred by such parties as a result of any threatened claims or
proceedings brought against them as to which they could be indemnified, and to the maximum extent
that insurance coverage of such directors, officers and key employees under the Companys
directors and officers liability insurance policies is maintained.
Section 1209 of the MBCA permits a Michigan corporation to include in its articles of
incorporation a provision eliminating or limiting a directors liability to a corporation or its
shareholders for monetary damages for breaches of fiduciary duty. The enabling statute provides,
however, that liability for breaches of the duty of loyalty, acts or omissions not in good faith or
involving intentional misconduct or knowing violations of the law, or the receipt of improper
personal benefits cannot be eliminated or limited in this manner. The Companys Restated Articles
of Incorporation (as amended, the Charter) includes a provision which eliminates, to the fullest
extent permitted by the MBCA, director liability for monetary damages for breaches of fiduciary
duty.
Item 16. Exhibits
A list of exhibits filed with this registration statement on Form S-3 is set forth on the
Exhibit Index and is incorporated herein by reference.
Item 17. Undertakings
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Securities and Exchange Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more
than a 20 percent change in the maximum aggregate offering price set forth in the Calculation of
Registration Fee table in the effective registration statement; and
II-2
(iii) To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement;
provided, however, that paragraphs (a)(l)(i), (a)(l)(ii) and (a)(l)(iii) of this section do not
apply if the information required to be included in a post-effective amendment by those paragraphs
is contained in reports filed with or furnished to the Securities and Exchange Commission by the
registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement;
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof;
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering;
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any
purchaser:
(i) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be
part of the registration statement as of the date the filed prospectus was deemed part of and
included in the registration statement; and
(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as
part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to
Rule 415(a)(l)(i), (vii), or (x) for the purpose of providing the information required by Section
10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration
statement as of the earlier of the date such form of prospectus is first used after effectiveness
or the date of the first contract of sale of securities in the offering described in the
prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is
at that date an underwriter, such date shall be deemed to be a new effective date of the
registration statement relating to the securities in the registration statement to which that
prospectus relates, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof; provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration statement or prospectus that
is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such effective date, supersede or modify any statement that was made in the registration
statement or prospectus that was part of the registration statement or made in any such document
immediately prior to such effective date;
(5) That, for the purpose of determining liability of the registrant under the Securities Act
of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant
undertakes that in a primary offering of securities of the undersigned registrant pursuant to this
registration statement, regardless of the underwriting method used to sell the securities to the
purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered
to offer or sell such securities to such purchaser:
II-3
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the
offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the
undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering containing
material information about the undersigned registrant or its securities provided by or on behalf of
the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned
registrant to the purchaser;
(6) That, for purposes of determining any liability under the Securities Act of 1933, each
filing of the registrants annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plans
annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof;
(7) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is against public policy
as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such
issue;
(8) That, for purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to
Rule 424(b)(1) or (4) or 497(h) under the Securities Act of 1933 shall be deemed to be part of this
registration statement as of the time it was declared effective;
(9) That, for the purpose of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof; and
(10) To file an application for the purpose of determining the eligibility of the trustee to
act under subsection (a) of Section 310 of the Trust Indenture Act of 1939 in accordance with the
rules and regulations prescribed by the Securities and Exchange Commission under Section 305(b)(2)
of the Trust Indenture Act of 1939.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly
caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in Ann Arbor, Michigan on June 16, 2011.
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AASTROM BIOSCIENCES, INC.
|
|
|
By: |
/s/ Timothy M. Mayleben
|
|
|
|
Timothy M. Mayleben |
|
|
|
President and Chief Executive Officer |
|
|
Each person whose signature appears below hereby constitutes and appoints Timothy M.
Mayleben and Scott C. Durbin, and each of them singly, his true and lawful attorneys-in-fact and
agents, with full power of substitution and resubstitution, for him and in his name, place and
stead, in any and all capacities, to sign any or all amendments (including, without limitation,
post-effective amendments) to this Registration Statement and any subsequent registration statement
filed by the Registrant pursuant to Rule 462(b) of the Securities Act of 1933, which relates to
this Registration Statement, and to file the same, with all exhibits thereto, and all documents in
connection herewith, with the Securities and Exchange Commission, granting unto said
attorney-in-fact and agent, full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully to all intents and purposes
as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact
and agent, or his substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has
been signed by the following persons in the capacities and on the dates indicated.
|
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|
|
Signature |
|
Title |
|
Date |
|
|
|
|
|
/s/ Timothy M. Mayleben
Timothy M. Mayleben
|
|
President, Chief Executive Officer
and Director (Principal Executive
Officer)
|
|
June 16, 2011 |
|
|
|
|
|
/s/ Scott C. Durbin
Scott C. Durbin
|
|
Chief Financial Officer
(Principal Financial and
Accounting Officer)
|
|
June 16, 2011 |
|
|
|
|
|
/s/ Nelson M. Sims
Nelson M. Sims
|
|
Lead Director
|
|
June 16, 2011 |
|
|
|
|
|
/s/
Ronald M. Cresswell, Ph.D.
Ronald M. Cresswell, Ph.D.
|
|
Director
|
|
June 16, 2011 |
|
|
|
|
|
/s/ Alan L. Rubino
Alan L. Rubino
|
|
Director
|
|
June 16, 2011 |
|
|
|
|
|
/s/ Harold C. Urschel, Jr., M.D.
Harold C. Urschel, Jr., M.D.
|
|
Director
|
|
June 16, 2011 |
|
|
|
|
|
/s/ Robert L. Zerbe, M.D.
Robert L. Zerbe, M.D.
|
|
Director
|
|
June 16, 2011 |
II-5
EXHIBIT INDEX
|
|
|
Exhibit |
|
|
No. |
|
Description |
3.1
|
|
Restated Articles of Incorporation of Aastrom, filed as Exhibit 4.1
to Aastroms Current Report on Form 8-K filed on December 17, 2009
and incorporated herein by reference. |
|
|
|
3.2
|
|
Certificate of Amendment to Restated Articles of Incorporation of
Aastrom dated February 9, 2010, filed as Exhibit 3.2 to Aastroms
Post Effective Amendment No. 1 to Form S-1 filed on March 31, 2010
and incorporated herein by reference. |
|
|
|
3.3
|
|
Certificate of Amendment to Restated Articles of Incorporation of
Aastrom dated March 22, 2011, filed as Exhibit 3.1 to Aastroms
Current Report on Form 8-K, filed on March 25, 2011 and incorporated
herein by reference. |
|
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3.4
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Amended and Restated Bylaws, filed as Exhibit 3.1 to Aastroms
Current Report on Form 8-K filed on November 12, 2010 and
incorporated herein by reference. |
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4.1
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Form of Senior Indenture for Senior Debt Securities. |
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4.2
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Form of Senior Debt Security (included in Exhibit 4.1 hereto). |
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4.3
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Form of Indenture for Subordinated Debt Securities. |
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4.4
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Form of Subordinated Debt Security (included in Exhibit 4.3 hereto) |
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4.5
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Specimen Common Stock Certificate, filed as Exhibit 4.1 to Amendment
No. 2 to Aastroms Registration Statement on Form S-1/A filed on
December 20, 1996 and incorporated herein by reference. |
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4.6*
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Form of Certificate of Designations |
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4.7*
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Form of Preferred Stock Certificate |
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4.8*
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Form of Warrant Agreement |
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4.9*
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Form of Warrant Certificate |
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4.10*
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Form of Unit Agreement |
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4.11*
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Form of Unit Certificate |
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5.1
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Opinion of Dykema Gossett PLLC. |
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12.1*
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Computation of Ratio of Earnings to Fixed Charges |
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23.1
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Consent of PricewaterhouseCoopers LLP |
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23.2
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Consent of Dykema Gossett PLLC (included in Exhibit 5.1 hereto) |
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24.1
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Power of Attorney (included in Part II of this registration statement) |
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25.1**
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Form T-1 Statement of Eligibility of Trustee for Senior Indenture
under the Trust Indenture Act of 1939 |
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25.2**
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Form T-1 Statement of Eligibility of Trustee for Subordinated
Indenture under the Trust Indenture Act of 1939 |
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* |
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To be filed, if necessary, by amendment or as an exhibit to a document to
be incorporated or deemed to be incorporated by reference in this
registration statement, including a Current Report on Form 8-K. |
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** |
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To be filed, if necessary, separately under the electronic form type 305B2. |
exv4w1
Exhibit 4.1
AASTROM BIOSCIENCES, INC.
TO
Trustee
Indenture
Dated as of , 20____
Senior Debt Securities
TABLE OF CONTENTS
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Page |
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ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION |
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1 |
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SECTION 101. Definitions |
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1 |
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SECTION 102. Compliance Certificates and Opinions |
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10 |
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SECTION 103. Form of Documents Delivered to Trustee |
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11 |
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SECTION 104. Acts of Holders |
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11 |
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SECTION 105. Notices, etc., to Trustee and Company |
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13 |
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SECTION 106. Notice to Holders; Waiver |
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14 |
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SECTION 107. Counterparts; Effect of Headings and Table of Contents |
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15 |
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SECTION 108. Successors and Assigns |
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15 |
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SECTION 109. Severability Clause |
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15 |
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SECTION 110. Benefits of Indenture |
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15 |
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SECTION 111. Governing Law |
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15 |
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SECTION 112. Legal Holidays |
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15 |
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SECTION 113. Limited Liability; Immunity of Stockholders, Directors,
Officers and Agents of the Company |
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16 |
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SECTION 114. Conflict with Trust Indenture Act |
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16 |
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ARTICLE TWO SECURITIES FORMS |
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16 |
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SECTION 201. Forms of Securities |
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16 |
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SECTION 202. Form of Trustees Certificate of Authentication |
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17 |
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SECTION 203. Securities Issuable in Global Form |
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17 |
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ARTICLE THREE THE SECURITIES |
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18 |
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SECTION 301. Amount Unlimited; Issuable in Series |
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18 |
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SECTION 302. Denominations |
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22 |
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SECTION 303. Execution, Authentication, Delivery and Dating |
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22 |
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SECTION 304. Temporary Securities |
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24 |
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SECTION 305. Registration, Registration of Transfer, Conversion and Exchange |
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27 |
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SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities |
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30 |
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SECTION 307. Payment of Interest; Interest Rights Preserved |
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31 |
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SECTION 308. Persons Deemed Owners |
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33 |
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SECTION 309. Cancellation |
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34 |
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SECTION 310. Computation of Interest |
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34 |
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SECTION 311. CUSIP Numbers |
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34 |
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ARTICLE FOUR SATISFACTION AND DISCHARGE |
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35 |
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SECTION 401. Satisfaction and Discharge of Indenture |
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35 |
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SECTION 402. Application of Trust Funds |
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36 |
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(i)
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Page |
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ARTICLE FIVE REMEDIES |
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36 |
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SECTION 501. Events of Default |
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36 |
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SECTION 502. Acceleration of Maturity; Rescission and Annulment |
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38 |
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SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee |
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39 |
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SECTION 504. Trustee May File Proofs of Claim |
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40 |
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SECTION 505. Trustee May Enforce Claims Without Possession of Securities
or Coupons |
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41 |
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SECTION 506. Application of Money Collected |
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41 |
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SECTION 507. Limitation on Suits |
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41 |
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SECTION 508. Unconditional Right of Holders to Receive Principal,
Premium or Make-Whole Amount, if any, and Interest |
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42 |
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SECTION 509. Restoration of Rights and Remedies |
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42 |
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SECTION 510. Rights and Remedies Cumulative |
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42 |
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SECTION 511. Delay or Omission Not Waiver |
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42 |
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SECTION 512. Control by Holders of Securities |
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43 |
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SECTION 513. Waiver of Past Defaults |
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43 |
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SECTION 514. Waiver of Usury, Stay or Extension Laws |
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43 |
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SECTION 515. Undertaking for Costs |
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44 |
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ARTICLE SIX THE TRUSTEE |
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44 |
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SECTION 601. Notice of Defaults |
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44 |
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SECTION 602. Certain Rights of Trustee |
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44 |
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SECTION 603. Not Responsible for Recitals or Issuance of Securities |
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46 |
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SECTION 604. May Hold Securities |
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47 |
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SECTION 605. Money Held in Trust |
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47 |
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SECTION 606. Compensation and Reimbursement |
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47 |
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SECTION 607. Corporate Trustee Required; Eligibility; Conflicting Interests |
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48 |
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SECTION 608. Resignation and Removal; Appointment of Successor |
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48 |
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SECTION 609. Acceptance of Appointment by Successor |
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49 |
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SECTION 610. Merger, Conversion, Consolidation or Succession to Business |
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51 |
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SECTION 611. Appointment of Authenticating Agent |
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51 |
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SECTION 612. Certain Duties and Responsibilities of the Trustee |
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52 |
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ARTICLE SEVEN HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY |
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54 |
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SECTION 701. Disclosure of Names and Addresses of Holders |
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54 |
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SECTION 702. Reports by Trustee |
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54 |
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SECTION 703. Reports by Company |
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54 |
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SECTION 704. Company to Furnish Trustee Names and Addresses of Holders |
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55 |
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(ii)
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Page |
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ARTICLE EIGHT CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE |
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55 |
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SECTION 801. Consolidations and Mergers of Company and Sales, Leases
and Conveyances Permitted Subject to Certain Conditions |
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55 |
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SECTION 802. Rights and Duties of Successor Corporation |
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56 |
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SECTION 803. Officers Certificate and Opinion of Counsel |
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56 |
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ARTICLE NINE SUPPLEMENTAL INDENTURES |
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56 |
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SECTION 901. Supplemental Indentures Without Consent of Holders |
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56 |
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SECTION 902. Supplemental Indentures with Consent of Holders |
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58 |
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SECTION 903. Execution of Supplemental Indentures |
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59 |
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SECTION 904. Effect of Supplemental Indentures |
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59 |
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SECTION 905. Conformity with Trust Indenture Act |
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59 |
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SECTION 906. Reference in Securities to Supplemental Indentures |
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59 |
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ARTICLE TEN COVENANTS |
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60 |
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SECTION 1001. Payment of Principal, Premium or Make-Whole Amount, if
any; and Interest |
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60 |
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SECTION 1002. Maintenance of Office or Agency |
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60 |
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SECTION 1003. Money for Securities Payments to Be Held in Trust |
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62 |
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SECTION 1004. Existence |
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63 |
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SECTION 1005. Maintenance of Properties |
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63 |
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SECTION 1006. Insurance |
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63 |
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SECTION 1007. Payment of Taxes and Other Claims |
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63 |
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SECTION 1008. Statement as to Compliance |
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64 |
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SECTION 1009. Waiver of Certain Covenants |
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64 |
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ARTICLE ELEVEN REDEMPTION OF SECURITIES |
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64 |
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SECTION 1101. Applicability of Article |
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64 |
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SECTION 1102. Election to Redeem; Notice to Trustee |
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64 |
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SECTION 1103. Selection by Trustee of Securities to Be Redeemed |
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64 |
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SECTION 1104. Notice of Redemption |
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65 |
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SECTION 1105. Deposit of Redemption Price |
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66 |
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SECTION 1106. Securities Payable on Redemption Date |
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67 |
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SECTION 1107. Securities Redeemed in Part |
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67 |
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ARTICLE TWELVE SINKING FUNDS |
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68 |
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SECTION 1201. Applicability of Article |
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68 |
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SECTION 1202. Satisfaction of Sinking Fund Payments with Securities |
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68 |
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SECTION 1203. Redemption of Securities for Sinking Fund |
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68 |
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ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS |
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69 |
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SECTION 1301. Applicability of Article |
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69 |
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SECTION 1302. Repayment of Securities |
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69 |
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SECTION 1303. Exercise of Option |
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69 |
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(iii)
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Page |
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SECTION 1304. When Securities Presented for Repayment Become Due and
Payable |
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70 |
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SECTION
1305. Securities Repaid in Part |
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71 |
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ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE |
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71 |
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SECTION 1401. Applicability of Article; Companys Option to Effect
Defeasance or Covenant Defeasance |
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71 |
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SECTION 1402. Defeasance and Discharge |
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71 |
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SECTION 1403. Covenant Defeasance |
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72 |
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SECTION 1404. Conditions to Defeasance or Covenant Defeasance |
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72 |
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SECTION 1405. Deposited Money and Government Obligations to Be Held in
Trust; Other Miscellaneous Provisions |
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74 |
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ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES |
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75 |
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SECTION 1501. Purposes for Which Meetings May Be Called |
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75 |
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SECTION 1502. Call, Notice and Place of Meetings |
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75 |
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SECTION 1503. Persons Entitled to Vote at Meetings |
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76 |
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SECTION 1504. Quorum; Action |
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76 |
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SECTION 1505. Determination of Voting Rights; Conduct and Adjournment of
Meetings |
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77 |
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SECTION
1506. Counting Votes and Recording Action of Meetings |
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78 |
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ARTICLE SIXTEEN CONVERSION OF SECURITIES |
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78 |
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SECTION 1601. Applicability of Article; Conversion Privilege and
Conversion Price |
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78 |
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SECTION 1602. Exercise of Conversion Privilege |
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79 |
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SECTION 1603. Fractions of Shares |
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80 |
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SECTION 1604. Adjustment of Conversion Price |
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80 |
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SECTION 1605. Notice of Adjustments of Conversion Price |
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84 |
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SECTION 1606. Notice of Certain Corporate Action |
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84 |
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SECTION 1607. Company to Reserve Common Stock |
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85 |
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SECTION 1608. Taxes on Conversion |
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85 |
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SECTION 1609. Covenants as to Common Stock |
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85 |
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SECTION 1610. Cancellation of Converted Securities |
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85 |
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SECTION 1611. Provisions in Case of Consolidation, Merger or Sale of
Assets; Special Distributions |
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85 |
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SECTION 1612. Trustee Adjustment Disclaimer; Company Determination Final |
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87 |
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SECTION 1613. When No Adjustment Required |
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87 |
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SECTION 1614. Equivalent Adjustments |
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88 |
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(iv)
AASTROM BIOSCIENCES, INC.
Reconciliation and tie between the Trust Indenture Act of 1939, as amended (the Trust
Indenture Act or TIA) and the Indenture, dated as of __________, 20_.
|
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Trust Indenture |
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|
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Act Section |
|
Indenture Section |
§ 310(a)(1) |
|
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607 |
(a)(2) |
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|
607 |
(b) |
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607, 608 |
§ 312(c) |
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701 |
§ 313(a) |
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702 |
(c) |
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702 |
§ 314(a) |
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703 |
(a)(4) |
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1008 |
(c)(1) |
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102 |
(c)(2) |
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102 |
(e) |
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102 |
§ 315(b) |
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601 |
§ 316(a) (last sentence) |
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101(Outstanding) |
(a)(1)(A) |
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502, 512 |
(a)(1)(B) |
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|
513 |
(b) |
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508 |
§ 317(a)(1) |
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503 |
(a)(2) |
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504 |
§ 318(a) |
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|
111 |
(c) |
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|
111 |
|
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|
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture. |
Attention should also be directed to Section 318(c) of the Trust Indenture Act, which provides
that the provisions of Sections 310 to and including 317 of the Trust Indenture Act are a part of
and govern every qualified indenture, whether or not physically contained therein.
(v)
INDENTURE, dated as of __________, 20__, AASTROM BIOSCIENCES, INC., a corporation organized
under the laws of the State of Michigan (hereinafter called the Company), having its principal
office at 24 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48106 and _________________, as Trustee
hereunder (hereinafter called the Trustee), having a Corporate Trust Office at
_________________________.
RECITALS OF THE COMPANY
The Company deems it necessary to issue from time to time for its lawful purposes senior debt
securities (hereinafter called the Securities) evidencing its unsecured and senior indebtedness,
and has duly authorized the execution and delivery of this Indenture to provide for the issuance
from time to time of the Securities, to be issued in one or more Series as provided in this
Indenture.
This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended
(the Trust Indenture Act or TIA), that are deemed to be incorporated into this Indenture and
shall, to the extent applicable, be governed by such provisions.
All things necessary to make this Indenture a valid and legally binding agreement of the
Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of a Series thereof, as follows:
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 101. Definitions. For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to them in this
Article, and include the plural as well as the singular;
(2) all other terms used herein which are defined in the TIA, either directly or by
reference therein, have the meanings assigned to them therein, and the terms cash
transactions and self-liquidating paper, as used in TIA Section 311, shall have the
meanings assigned to them in the rules of the Commission adopted under the TIA;
(3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP;
(4) any reference to an Article or a Section refers to an Article or Section,
as the case may be, of this Indenture; and
(5) the words herein, hereof and hereunder and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.
Act, when used with respect to any Holder, has the meaning specified in Section 104.
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.
Authenticating Agent means any Person authorized by the Trustee pursuant to Section
611 hereof to act on behalf of the Trustee to authenticate Securities of one or more Series.
Authorized Newspaper means a newspaper, printed in the English language or in an
official language of the country of publication, customarily published on each Business Day,
whether or not published on Saturdays, Sundays or holidays, and of general circulation in each
place in connection with which the term is used or in the financial community of each such place.
Whenever successive publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different Authorized Newspapers in the same city meeting
the foregoing requirements and in each case on any Business Day.
Bankruptcy Law has the meaning specified in Section 501.
Bearer Security means any Security established pursuant to Section 201 which is
payable to the bearer.
Board of Directors when used with reference to the Company, means the board of
directors of the Company, or any committee of that board duly authorized to act hereunder, or any
director or directors and/or officer or officers of the Company, to whom the board or committee
shall have duly delegated its authority.
Board Resolution means a copy of (1) a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of Directors or a duly
authorized committee of the Board of Directors and to be in full force and effect on the date of
such certification, or (2) a certificate signed by the director or directors and/or officer or
officers to whom the Board of Directors shall have duly delegated its authority, together with a
resolution 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 authorizing such delegation, and, in each case, delivered to the Trustee.
Business Day, when used with respect to any Place of Payment or any other particular
location referred to in this Indenture or in the Securities, means, unless otherwise specified with
respect to any Securities issued pursuant to Section 301, any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions in that Place of
2
Payment or particular location are authorized or required by law, regulation or executive
order to close.
Capital Stock means, with respect to any Person, any capital stock (including
preferred stock), shares, interests, participations or other ownership interests (however
designated) of such Person and any rights (other than debt securities convertible into or
exchangeable for corporate stock), warrants or options to purchase any thereof.
Clearstream means Clearstream Banking Luxembourg, société anonyme, or its successor.
Closing Price means the closing price of a share of Common Stock of the Company as
reported on the NASDAQ Capital Market.
Code means the Internal Revenue Code of 1986, as amended, and the regulations
thereunder.
Commission means the Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act, or, if at any time after execution of this instrument
such Commission is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties on such date.
Common Depository has the meaning specified in Section 304.
Common Stock means, with respect to any Person, all shares of capital stock issued
by such Person other than Preferred Stock.
Company means the Person named as the Company in the first paragraph of this
Indenture until a successor corporation shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter Company shall mean such successor corporation.
Company Request and Company Order mean, respectively, a written request or
order signed in the name of the Company by its Chairman of the Board, the Chief Executive Officer,
the President, or a Vice President, and by its Treasurer, an Assistant Treasurer, the Secretary or
an Assistant Secretary, of the Company, and delivered to the Trustee.
Constituent Person has the meaning specified in Section 1611.
Conversion Event means the cessation of use of (i) a Foreign Currency both by the
government of the country which issued such currency and for the settlement of transactions by a
central bank or other public institutions of or within the international banking community, (ii)
the ECU both within the European Monetary System and for the settlement of transactions by public
institutions of or within the European Communities or (iii) any currency unit (or composite
currency) other than the ECU for the purposes for which it was established.
Conversion Price has the meaning specified in Section 1601.
3
Corporate Trust Office means the office of the Trustee at which, at any particular
time, its corporate trust business shall be principally administered, which office at the date
hereof is located at [____________________].
corporation includes corporations, associations, companies and business trusts.
coupon means any interest coupon appertaining to a Bearer Security.
Covenant Defeasance has the meaning specified in Section 1403.
Custodian has the meaning specified in Section 501.
Defaulted Interest has the meaning specified in Section 307.
Defeasance has the meaning specified in Section 1402.
Distribution Record Date has the meaning specified in Section 1611.
Dividend Record Date has the meaning specified in Section 1604.
Dollar or the sign $ means a dollar or other equivalent unit in such coin
or currency of the United States of America as at the time of payment is legal tender for the
payment of public and private debts.
DTC means The Depository Trust Company and any successor to DTC in its capacity as
depository for any Securities.
ECU means the European Currency Unit as defined and revised from time to time by the
Council of the European Communities.
Euroclear means the operator of the Euroclear System.
European Communities means the European Economic Community, the European Coal and
Steel Community and the European Atomic Energy Community.
European Monetary System means the European Monetary System established by the
Resolution of December 5, 1978 of the Council of the European Communities.
Event of Default has the meaning specified in Article Five.
Exchange Act means the Securities Exchange Act of 1934, as amended, as in force at
the date as of which this Indenture was executed; provided, however, that in the
event the Exchange Act is amended after such date, Exchange Act means to the extent required by
any such amendment, the Exchange Act as so amended.
Exchange Date has the meaning specified in Section 304.
FINRA means the Financial Industry Regulatory Authority, Inc.
4
Foreign Currency means any currency, currency unit or composite currency, including,
without limitation, the ECU issued by the government of one or more countries other than the United
States of America or by any recognized confederation or association of such governments.
GAAP means, except as otherwise provided herein, generally accepted accounting
principles, as in effect from time to time, as used in the United States applied on a consistent
basis.
Global Security means a Security evidencing all or a part of a series of Securities
issued to and registered in the name of the depository for such series, or its nominee, in
accordance with Section 305, and bearing the legend prescribed in Section 203.
Government Obligations means (i) securities which are (A) direct obligations of the
United States of America or the government which issued the Foreign Currency in which the
Securities of a particular series are payable, for the payment of which its full faith and credit
is pledged or (B) obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America or such government which issued the Foreign
Currency in which the Securities of such series are payable, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America or
such other government, which, in either case, are not callable or redeemable at the option of the
issuer thereof, and (iii) a depository receipt issued by a bank or trust company as custodian with
respect to any such Government Obligation or a specific payment of interest on or principal of any
such Government Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not authorized to make
any deduction from the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the Government Obligation or the specific payment of
interest on or principal of the Government Obligation evidenced by such depository receipt.
Holder means, in the case of a Registered Security, the Person in whose name a
Security is registered in the Security Register and, in the case of a Bearer Security, the bearer
thereof and, when used with respect to any coupon, shall mean the bearer thereof.
Indenture means this instrument as originally executed or as it may be supplemented
or amended from time to time by one or more indentures supplemental hereto entered into pursuant to
the applicable provisions hereof, and shall include the terms of particular series of Securities
established as contemplated by Section 301; provided, however, that, if at any time
more than one Person is acting as Trustee under this instrument, Indenture shall mean, with
respect to any one or more series of Securities for which such Person is Trustee, this instrument
as originally executed or as it may be supplemented or amended from time to time by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of the or those particular series of Securities for which such Person is Trustee
established as contemplated by Section 301, exclusive, however, of any provisions or terms which
relate solely to other series of Securities for which such Person is Trustee, regardless of when
such terms or provisions were adopted, and exclusive of any provisions or terms adopted
5
by means of one or more indentures supplemental hereto executed and delivered after such
Person had become such Trustee but to which such Person, as such Trustee, was not a party.
Indexed Security means a Security the terms of which provide that the principal
amount thereof payable at Stated Maturity may be more or less than the principal face amount
thereof at original issuance.
Interest, when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, shall mean interest payable after Maturity.
Interest Payment Date, when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security.
Make-Whole Amount, when used with respect to any Security, means the amount, if any,
in addition to principal (and accrued interest thereon, if any) which is required by a Security,
under the terms and conditions specified therein or as otherwise specified as contemplated by
Section 301, to be paid by the Company to the Holder thereof in connection with any optional
redemption or accelerated payment of such Security.
mandatory sinking fund payment has the meaning specified in Section 1201.
Market Value of the Distribution has the meaning specified in Section 1604.
Maturity, when used with respect to any Security, means the date on which the
principal (or, if the context so requires, in the case of an Original Issue Discount Security, or
lesser amount or, in the case of an Indexed Security, an amount determined in accordance with the
specified terms of that Security) of such Security or an installment of principal becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, notice of redemption, notice of option to elect repayment or otherwise.
Officers Certificate means a certificate signed by the Chairman of the Board of
Directors, the Chief Executive Officer, the President, or a Vice President (whether or not
designated by a number or word or words added before or after the title Vice President), and by
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.
Opinion of Counsel means a written opinion of counsel, who may be counsel for the
Company or who may be an employee of or other counsel for the Company.
optional sinking fund payment has the meaning specified in Section 1201.
Original Issue Discount Security means any Security which provides for an amount
(excluding any amounts attributable to accrued but unpaid interest thereon) less than the principal
amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502.
Outstanding, when used with respect to Securities, means, as of the date of
determination, all Securities theretofore authenticated and delivered under this Indenture,
except:
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(i) Securities theretofore canceled by the Trustee or delivered to the
Trustee for cancellation;
(ii) Securities, or portions thereof, for whose payment or redemption
(including repayment at the option of the Holder) money in the necessary amount has
been theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Securities and
any coupons appertaining thereto; provided, however, that, if such
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee has
been made;
(iii) Securities, except to the extent provided in Sections 1402 and 1403,
with respect to which the Company has effected Defeasance and/or Covenant Defeasance
as provided in Article Fourteen; and
(iv) Securities which have been paid pursuant to Section 306 or in exchange
for or in lieu of which other Securities have been authenticated and delivered
pursuant to this Indenture, other than any such Securities in respect of which there
shall have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company.
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of Holders for quorum
purposes, and for the purpose of making the calculations required by TIA Section 313, (i) the
principal amount of an Original Issue Discount Security that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding for such purpose shall be
equal to the amount of principal thereof that would be (or shall have been declared to be) due and
payable, at the time of such determination, upon a declaration of acceleration of the maturity
thereof pursuant to Section 502, (ii) the principal amount of any Security denominated in a Foreign
Currency that may be counted in making such determination or calculation and that shall be deemed
Outstanding for such purpose shall be equal to the Dollar equivalent, determined pursuant to
Section 301 as of the date such Security is originally issued by the Company, of the principal
amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent as of such
date of original issuance of the amount determined as provided in clause (i) above) of such
Security, (iii) the principal amount of any Indexed Security that may be counted in making such
determination or calculation and that shall be deemed outstanding for such purpose shall be equal
to the principal face amount of such Indexed Security at original issuance, unless otherwise
provided with respect to such Security pursuant to Section 301, and (iv) Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether
the Trustee shall be protected in making such calculation or in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities owned as
provided in clause (iv) above which have been pledged in good faith may be
7
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgees
right so to act with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such other obligor. In
case of a dispute as to such right, the advice of counsel shall be full protection in respect of
any decision made by the Trustee in accordance with such advice.
Paying Agent means any Person authorized by the Company to pay the principal of (and
premium or Make-Whole Amount, if any) or interest on any Securities or coupons on behalf of the
Company.
Person means any individual, corporation, limited liability company, partnership,
joint venture, association, joint-stock company, trust, unincorporated organization or government
or any agency or political subdivision thereof, or any other entity or organization.
Place of Payment, when used with respect to the Securities of or within any series,
means the place or places where the principal of (and premium or Make-Whole Amount, if any) and
interest on such Securities are payable as specified as contemplated by Sections 301 and 1002.
Predecessor Security of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security or a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security or the Security to which the mutilated,
destroyed, lost or stolen coupon appertains.
Preferred Stock means, with respect to any Person, all capital stock issued by such
Person that is entitled to a preference or priority over any other capital stock issued by such
Person with respect to any distribution of such Persons assets, whether by dividend or upon any
voluntary or involuntary liquidation, dissolution or winding up.
Redemption Date, when used with respect to any Security to be redeemed, in whole or
in part, means the date fixed for such redemption by or pursuant to this Indenture.
Redemption Price, when used with respect to any Security to be redeemed, means the
price specified in the related Officers Certificate or supplemental indenture contemplated by and
pursuant to Section 301, at which it is to be redeemed pursuant to this Indenture.
Reference Date has the meaning specified in Section 1604.
Registered Security shall mean any Security which is registered in the Security
Register.
Regular Record Date for the interest payable on any Interest Payment Date on the
Registered Securities of or within any series means the date specified for that purpose as
contemplated by Section 301, whether or not a Business Day.
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Repayment Date means, when used with respect to any Security to be repaid at the
option of the Holder, the date fixed for such repayment by or pursuant to this Indenture.
Repayment Price means, when used with respect to any Security to be repaid at the
option of the Holder, the price at which it is to be repaid by or pursuant to this Indenture.
Responsible Officer, when used with respect to the Trustee, means any Vice President
(whether or not designated by a number or a word or words added before or after the title Vice
President), Assistant Vice President, Trust Officer or Assistant Trust Officer working in its
Corporate Trust Department, or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and working in its Corporate
Trust Department, and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of such officers knowledge and familiarity with
the particular subject and who shall have direct responsibility for the administration of this
Indenture.
Rights has the meaning specified in Section 1604.
Rights Record Date has the meaning specified in Section 1604.
Security and Securities has the meaning stated in the first recital of
this Indenture and, more particularly, means any Security or Securities authenticated and delivered
under this Indenture; provided, however, that, if at any time there is more than
one Person acting as Trustee under this Indenture, Securities with respect to the Indenture as to
which such Person is Trustee shall have the meaning stated in the first recital of this Indenture
and shall more particularly mean Securities authenticated and delivered under this Indenture,
exclusive, however, of Securities of any series as to which such Person is not Trustee.
Security Register and Security Registrar have the respective meanings
specified in Section 305.
A Series of Securities means all securities denoted as part of the same series
authorized by or pursuant to a particular Board Resolution.
Short Term Rights has the meaning specified in Section 1604.
Significant Subsidiary means any Subsidiary which is a significant subsidiary (as
defined in Article I, Rule 1-02 of Regulation S-X, promulgated under the Securities Act of 1933, as
amended) of the Company.
Special Record Date for the payment of any Defaulted Interest on the Registered
Securities of or within any series means a date fixed by the Company pursuant to Section 307.
Stated Maturity, when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such Security or a coupon
representing such installment of interest as the fixed date on which the principal of such Security
or such installment of principal or interest is due and payable.
9
Subsidiary means, with respect to any Person, any corporation, limited liability
company, partnership or other entity of which a majority of (i) the voting power of the voting
equity securities or (ii) the outstanding equity interests are owned, directly or indirectly, by
such Person. For the purposes of this definition, voting equity securities means equity
securities having voting power for the election of directors, whether at all times or only so long
as no senior class of security has such voting power by reason of any contingency.
Trading Day means any day on which the NASDAQ Capital Market is open for business.
Trigger Events has the meaning specified in Section 1604.
Trust Indenture Act or TIA means the Trust Indenture Act of 1939, as
amended and as in force at the date as of which this Indenture was executed, except as provided in
Section 905.
Trustee means the Person named as the Trustee in the first paragraph of this
Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter Trustee shall mean or include each Person who is then a Trustee
hereunder; provided, however, that if at any time there is more than one such
Person, Trustee as used with respect to the Securities of any series shall mean only the Trustee
with respect to Securities of that series.
Unadjusted Distribution has the meaning specified in Section 1604.
United States means, unless otherwise specified with respect to any Securities
pursuant to Section 301, the United States of America (including the states and the District of
Columbia), its territories, its possessions and other areas subject to its jurisdiction.
United States Person means, unless otherwise specified with respect to any
Securities pursuant to Section 301, an individual who is a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or under the laws of the
United States or an estate or trust the income of which is subject to United States Federal income
taxation regardless of its source.
Yield to Maturity means the yield to maturity, computed at the time of issuance of a
Security (or, if applicable, at the most recent redetermination of interest on such Security) and
as set forth in such Security in accordance with generally accepted United States bond yield
computation principles.
SECTION 102. Compliance Certificates and Opinions. Upon any application or request by
the Company to the Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers Certificate stating that all conditions precedent, if
any, provided for in this Indenture 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
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any provision of this Indenture 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 Indenture (including certificates delivered pursuant to Section 1008) shall include:
(1) a statement that each individual signing such certificate or opinion has read
such condition or covenant and the definitions herein relating thereto;
(2) 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;
(3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such condition or covenant has been complied with; and
(4) a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.
SECTION 103. Form of Documents Delivered to Trustee. 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 an Opinion of Counsel, or a certificate or representations by counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the opinion,
certificate or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such Opinion of Counsel or certificate or representations 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 stating that the information as to such factual matters is in
the possession 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.
Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.
SECTION 104. Acts of Holders.
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(a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of the Outstanding Securities of all
series or one or more series, as the case may be, may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or by agents duly
appointed in writing. If Securities of a series are issuable as Bearer Securities, any request,
demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by Holders of Securities of such series may, alternatively, be
embodied in and evidenced by the record of Holders of Securities of such series voting in favor
thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the provisions of Article
Fifteen, or a combination of such instruments and any such record. Except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments or
record or both are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments and any such record (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the Act of the Holders signing such
instrument or instruments or so voting at any such meeting. Proof of execution of any such
instrument or of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company and any agent of the Trustee or the Company, if made in the manner provided
in this Section. The record of any meeting of Holders of Securities shall be proved in the manner
provided in Section 1506.
(b) The fact and date of the execution by any Person of any such instrument or writing may
be proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other reasonable manner which the Trustee deems sufficient.
(c) The ownership of Registered Securities shall be proved by the Security Register. As
to any matter relating to beneficial ownership interests in any Global Security, the appropriate
depositorys records shall be dispositive for purposes of this Indenture.
(d) The ownership of Bearer Securities may be proved by the production of such Bearer
Securities or by a certificate executed, as depository, by any trust company, bank, banker or other
depository, wherever situated, if such certificate shall be deemed by the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on deposit with such
depository, or exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the Person holding such Bearer Securities, if such
certificate or affidavit is deemed by the Trustee to be satisfactory. The Trustee and the Company
may assume that such ownership of any Bearer Security continues until (1) another certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3) such Bearer Security
is surrendered in exchange for a Registered Security, or (4) such Bearer Security is no
12
longer Outstanding. The ownership of Bearer Securities may also be proved in any other manner
which the Trustee deems sufficient.
(e) If the Company shall solicit from the Holders of Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its
option, in or pursuant to a Board Resolution, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c),
such record date shall be the record date specified in or pursuant to such Board Resolution, which
shall be a date not earlier than the date 30 days prior to the first solicitation of Holders
generally in connection therewith and not later than the date such solicitation is completed. If
such a record date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before or after such record date, but only the Holders of record
at the close of business on such record date shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite proportion of Outstanding Securities have authorized
or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver
or other Act, and for that purpose the Outstanding Securities shall be computed as of such record
date; provided that no such authorization, agreement or consent by the Holders on such
record date shall be deemed effective unless it shall become effective pursuant to the provisions
of this Indenture not later than eleven months after the record date.
(f) Any request, demand, authorization, direction, notice, consent, waiver or other Act of
the Holder of any Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or upon the conversion thereof or
in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done
by the Trustee, any Security Registrar, any Paying Agent, any Authenticating Agent or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.
SECTION 105. Notices, etc., to Trustee and Company. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other document provided or
permitted by this Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at
[_________________________] or at any other address previously furnished in writing to the
Company by the Trustee, Attention: [__________]; or
(2) the Company by the Trustee or by any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its principal
office specified in the first paragraph of this Indenture or at any other address previously
furnished in writing to the Trustee by the Company, Attention: [__________]; or
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(3) either the Trustee or the Company, by the other party or by any Holder, shall
be sufficient for every purpose hereunder if given by facsimile transmission, receipt
confirmed by telephone followed by an original copy delivered by guaranteed overnight
courier; if to the Trustee at facsimile number [__________]; and if to the Company at
facsimile number [__________].
SECTION 106. Notice to Holders; Waiver. Where this Indenture provides for notice of
any event to Holders of Registered Securities by the Company or the Trustee, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each such Holder affected by such event, at his address as it
appears in the Security Register, not later than the latest date, if any, and not earlier than the
earliest date, if any, prescribed for the giving of such notice. In any case where notice to
Holders of Registered Securities 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 of Registered Securities or the sufficiency of any notice to
Holders of Bearer Securities given as provided herein. Any notice mailed to a Holder in the manner
herein prescribed shall be conclusively deemed to have been received by such Holder, whether or not
such Holder actually receives such notice.
If by reason of the suspension of or irregularities in regular mail service or by reason of
any other cause it shall be impracticable to give such notice by mail, then such notification to
Holders of Registered Securities as shall be made with the approval of the Trustee shall constitute
a sufficient notification to such Holders for every purpose hereunder.
Except as otherwise expressly provided herein or otherwise specified with respect to any
Securities pursuant to Section 301, where this Indenture provides for notice to Holders of Bearer
Securities of any event, such notice shall be sufficiently given if published in an Authorized
Newspaper in The City of New York and in such other city or cities as may be specified in such
Securities on a Business Day, such publication to be not later than the latest date, if any, and
not earlier than the earliest date, if any, prescribed for the giving of such notice. Any such
notice shall be deemed to have been given on the date of such publication or, if published more
than once, on the date of the first such publication.
If by reason of the suspension of publication of any Authorized Newspaper or Authorized
Newspapers or by reason of any other cause it shall be impracticable to publish any notice to
Holders of Bearer Securities as provided above, then such notification to Holders of Bearer
Securities as shall be given with the approval of the Trustee shall constitute sufficient notice to
such Holders for every purpose hereunder. Neither the failure to give notice by publication to any
particular Holder of Bearer Securities as provided above, nor any defect in any notice so
published, shall affect the sufficiency of such notice with respect to other Holders of Bearer
Securities or the sufficiency of any notice to Holders of Registered Securities given as provided
herein.
Any request, demand, authorization, direction, notice, consent or waiver required or permitted
under this Indenture shall be in the English language, except that any published notice may be in
an official language of the country of publication.
14
Where this Indenture 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
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
SECTION 107. Counterparts; Effect of Headings and Table of Contents. This Indenture
may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same Indenture. The
Article and Section headings herein and the Table of Contents are for convenience only and shall
not affect the construction hereof.
SECTION 108. Successors and Assigns. All covenants and agreements in this Indenture by
the Company shall bind its successors and assigns, whether so expressed or not.
SECTION 109. Severability Clause. In case any provision in this Indenture or in any
Security or coupon shall be held invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
SECTION 110. Benefits of Indenture. Nothing in this Indenture or in the Securities or
coupons, if any, express or implied, shall give to any Person, other than the parties hereto, any
Security Registrar, any Paying Agent, any Authenticating Agent and their successors hereunder and
the Holders any benefit or any legal or equitable right, remedy or claim under this Indenture.
SECTION 111. Governing Law. This Indenture and the Securities and coupons shall be
governed by and construed in accordance with the laws of the State of New York. This Indenture is
subject to the provisions of the TIA that are required to be part of this Indenture and shall, to
the extent applicable, be governed by such provisions.
SECTION 112. Legal Holidays. In any case where any Interest Payment Date, Redemption
Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity of any Security or the
last date on which a Holder has the right to convert or exchange a Security shall not be a Business
Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or any
Security or coupon other than a provision in the Securities of any series which specifically states
that such provision shall apply in lieu hereof), payment of interest or principal (and premium or
Make-Whole Amount, if any) or conversion or exchange of such Security need not be made at such
Place of Payment on such date, but (except as otherwise provided in the supplemental indenture
with respect to such Security) may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date, Redemption Date,
Repayment Date or sinking fund payment date, or at the Stated Maturity or Maturity, or on such last
day for conversion or exchange, provided that no interest shall accrue on the amount so payable for
the period from and after such Interest Payment Date, Redemption Date, Repayment Date, sinking fund
payment date, Stated Maturity or Maturity, as the case may be.
15
SECTION 113. Limited Liability; Immunity of Stockholders, Directors, Officers and Agents of
the Company. Notwithstanding any other provision of this Indenture or of the Securities of any
series to the contrary, no recourse under or upon any obligation, covenant or agreement contained
in this Indenture or in any Security, or for the payment of any sums due on account of any
indebtedness evidenced thereby, including without limitation principal, premium or interest, if
any, or for any claim based on this Indenture or any Security or otherwise in respect of this
Indenture or any Security, shall be had, whether by levy or execution or otherwise, against (i) the
Company, the Companys assets or against any past, present or future stockholder, employee,
officer, director or agent, as such, of the Company or any successor, either directly or through
the Company or any successor, under any rule of law, statute, constitutional provision or by the
enforcement of any assessment or penalty, or by any legal or equitable proceeding or otherwise, nor
shall any such parties be personally liable for any such amounts, obligations or claims, or liable
for any deficiency judgment based thereon or with respect thereto, it being expressly understood
that the sole remedies hereunder or under any other document with respect to the Securities against
such parties with respect to such amounts, obligations or claims shall be against the Company and
that all such liability of and recourse against such parties is expressly waived and released by
the acceptance of the Securities by the Holders and as part of the consideration for the issue of
the Securities.
SECTION 114. Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof which is required or deemed to be included in
this Indenture by any of the provisions of the Trust Indenture Act, such required provision shall
control. If any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be.
ARTICLE TWO SECURITIES FORMS
SECTION 201. Forms of Securities. The Registered Securities, if any, of each series
and the Bearer Securities, if any, of each series and related coupons shall be substantially in the
form of Exhibit A hereto or in such other form as shall be established in one or more
indentures supplemental hereto or approved from time to time by or pursuant to a Board Resolution
in accordance with Section 301, shall have such appropriate insertions, omissions, substitutions
and other variations as are required or permitted
by this Indenture or any indenture supplemental hereto, and may have such letters, numbers or other
marks of identification or designation and such legends or endorsements placed thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or
as may be required to comply with any law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any over-the-counter market or securities exchange, on which the
Securities may be quoted or listed, or to conform to usage.
Unless otherwise specified as contemplated by Section 301, Bearer Securities shall have
interest coupons attached.
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The definitive Securities and coupons shall be printed, lithographed or engraved or produced
by any combination of these methods on a steel engraved border or steel engraved borders or
mechanically reproduced on safety paper or may be produced in any other manner, all as determined
by the officers executing such Securities or coupons, as evidenced by their execution of such
Securities or coupons.
SECTION 202. Form of Trustees Certificate of Authentication. Subject to Section 611,
the Trustees certificate of authentication shall be in substantially the following form:
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
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SECTION 203. Securities Issuable in Global Form. If Securities of or within a series
are issuable in the form of one or more Global Securities, then, notwithstanding clause (8) of
Section 301 and the provisions of Section 302, any such Global Security or Securities may provide
that it or they shall represent the aggregate amount of all Outstanding Securities of such series
(or such lesser amount as is permitted by the terms thereof) from time to time endorsed thereon and
may also provide that the aggregate amount of Outstanding Securities of such series represented
thereby may from time to time be increased or decreased to reflect exchanges. Any endorsement of
any Global Security to reflect the amount, or any increase or decrease in the amount, or changes in
the rights of Holders thereof, of Outstanding Securities represented thereby shall be made (or
caused to be made) by the Trustee in such manner or by such Person or Persons as shall be specified
therein or in the Company Order to be delivered to the Trustee pursuant to Section 303 or 304.
Subject to the provisions of Section 303 and, if applicable, Section 304, the Trustee shall deliver
and redeliver any Global Security in permanent global form in the manner and upon instructions
given by the Person or Persons specified therein or in the applicable Company Order. If a Company
Order pursuant to Section 303 or 304 has been, or simultaneously is, delivered, any instructions by
the Company with respect to endorsement or delivery or redelivery of a Global Security shall be in writing but
need not comply with Section 102 and need not be accompanied by an Opinion of Counsel.
The provisions of the last sentence of Section 303 shall apply to any Security represented by
a Global Security if such Security was never issued and sold by the Company and the Company
delivers to the Trustee the Global Security together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Securities represented thereby, together with the written
statement contemplated by the last sentence of Section 303.
Notwithstanding the provisions of Section 307, unless otherwise specified as contemplated by
Section 301, payment of principal of and any premium or Make-Whole
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Amount, if any, and interest on
any Global Security in permanent global form shall be made to the registered Holder thereof.
Notwithstanding the provisions of Section 308 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat as the
Holder of such principal amount of Outstanding Securities represented by a permanent Global
Security (i) in the case of a permanent Global Security in registered form, the Holder of such
permanent Global Security in registered form, or (ii) in the case of a permanent Global Security in
bearer form, Euroclear or Clearstream.
Any Global Security authenticated and delivered hereunder shall bear a legend in substantially
the following form:
This Security is a Global Security within the meaning set forth in the Indenture hereinafter
referred to and is registered in the name of a Depository or a nominee of a Depository. This
Security is exchangeable for Securities registered in the name of a person other than the
Depository or its nominee only in the limited circumstances described in the Indenture, and may not
be transferred except as a whole by the Depository to a nominee of the Depository or by a nominee
of the Depository to the Depository or another nominee of the Depository or by the Depository or
its nominee to a successor Depository or its nominee.
ARTICLE THREE THE SECURITIES
SECTION 301. Amount Unlimited; Issuable in Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series, each of which shall be authorized pursuant
to Board Resolutions of the Company. There shall be established in one or more Board Resolutions
or pursuant to authority granted by one or more Board Resolutions and, subject to Section 303, set
forth in an Officers Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series:
(1) The title of the Securities of the series, including CUSIP numbers (which
shall distinguish the Securities of such series from all other series of Securities);
(2) Any limit upon the aggregate principal amount of the Securities of the series
that may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or upon conversion of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section 304, 305,
306, 906, 1107 or 1305) and the minimum authorized denominations with respect to the
Securities of such series;
(3) The price (expressed as a percentage of the principal amount thereof) at which
such Securities will be issued and, if other than the principal amount thereof, the portion
of the principal amount thereof payable upon declaration of acceleration of the maturity
thereof or (if applicable) the portion of the principal amount of such Securities
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that is
convertible into Common Stock or Preferred Stock or the method by which any such portion
shall be determined;
(4) If convertible, the terms on which such Securities are convertible, including
the initial conversion price or rate and the conversion period and any applicable
limitations on the ownership or transferability of Common Stock or Preferred Stock
receivable on conversion;
(5) The date or dates, or the method for determining such date or dates, on which
the principal of such Securities will be payable;
(6) The rate or rates (which may be fixed or variable), or the method by which such
rate or rates shall be determined, at which such Securities will bear interest, if any;
(7) The date or dates, or the method for determining such date or dates, from which
any such interest will accrue, the Interest Payment Dates on which any such interest will be
payable, the Regular Record Dates for such Interest Payment Dates, or the method by which
such dates shall be determined, the Persons to whom such interest shall be payable, and the
basis upon which interest shall be calculated if other than that of a 360-day year of twelve
30-day months;
(8) The Make-Whole Amount, if any, or method for determining the Make-Whole Amount,
if any, payable with respect to such Securities, and the terms upon which such amount, if
any, will be payable;
(9) The place or places where the principal of (and premium or Make-Whole Amount,
if any) and interest, if any, on such Securities will be payable, where such Securities may
be surrendered for registration of transfer or conversion or exchange and where notices or
demands to or upon the Company in respect of such Securities and this Indenture may be
served;
(10) The period or periods, if any, within which, the price or prices at which and
the other terms and conditions upon which such Securities may,
pursuant to any optional or mandatory redemption provisions, be redeemed, as a whole or in part, at the
option of the Company;
(11) The obligation, if any, of the Company to redeem, repay or purchase such
Securities pursuant to any sinking fund or analogous provision or at the option of a Holder
thereof, and the period or periods within which, the price or prices at which and the other
terms and conditions upon which such Securities will be redeemed, repaid or purchased, as a
whole or in part, pursuant to such obligation;
(12) If other than Dollars, the currency or currencies in which such Securities are
denominated and payable, which may be a foreign currency or units of two or more foreign
currencies or a composite currency or currencies, the manner of determining the equivalent
thereof in Dollars for purposes of the definition of Outstanding in Section 101, and the
terms and conditions relating thereto;
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(13) Whether the amount of payments of principal of (and premium or Make-Whole
Amount, if any, including any amount due upon redemption, if any) or interest on such
Securities may be determined with reference to an index, formula or other method (which
index, formula or method may, but need not be, based on the yield on or trading price of
other securities, including United States Treasury securities or on a currency, currencies,
currency unit or units, or composite currency or currencies) and the manner in which such
amounts shall be determined;
(14) Whether the principal of (and premium or Make-Whole Amount, if any) or
interest on the Securities of the series are to be payable, at the election of the Company
or a Holder thereof, in a currency or currencies, currency unit or units or composite
currency or currencies other than that in which such Securities are denominated or stated to
be payable, the period or periods within which, and the terms and conditions upon which,
such election may be made, and the time and manner of, and identity of the exchange rate
agent with responsibility for, determining the exchange rate between the currency or
currencies, currency unit or units or composite currency or currencies in which such
Securities are denominated or stated to be payable and the currency or currencies, currency
unit or units or composite currency or currencies in which such Securities are to be so
payable;
(15) Provisions, if any, granting special rights to the Holders of Securities of
the series upon the occurrence of such events as may be specified;
(16) Any deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to Securities of the series, whether or not such
Events of Default or covenants are consistent with the Events of Default or covenants set
forth herein;
(17) Whether and under what circumstances the Company will pay any additional
amounts on such Securities in respect of any tax, assessment or governmental charge and, if
so, whether the Company will have the option to redeem such Securities in lieu of making
such payment;
(18) Whether Securities of the series are to be issuable as Registered Securities,
Bearer Securities (with or without coupons) or both, any restrictions applicable to the
offer, sale or delivery of Bearer Securities and the terms upon which Bearer Securities of
the series may be exchanged for Registered Securities of the series and vice versa (if
permitted by applicable laws and regulations), whether any Securities of the series are to
be issuable initially in temporary global form and whether any Securities of the series are
to be issuable in permanent global form with or without coupons and, if so, whether
beneficial owners of interests in any such permanent global Security may, or shall be
required to, exchange such interests for Securities of such series and of like tenor of any
authorized form and denomination and the circumstances under which any such exchanges may,
or shall be required to, occur, if other than in the manner provided in the Indenture, and,
if Registered Securities of the series are to be issuable as a Global Security, the identity
of the depository for such series;
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(19) The date as of which any Bearer Securities of the series and any temporary
Global Security representing outstanding Securities of the series shall be dated if other
than the date of original issuance of the first Security of the series to be issued;
(20) The Person to whom any interest on any Registered Security of the series shall
be payable, if other than the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such
interest the manner in which, or the Person to whom, any interest on any Bearer Security of
the series shall be payable, if otherwise than upon presentation and surrender of the
coupons appertaining thereto as they severally mature, and the extent to which, or the
manner in which, any interest payable on a temporary Global Security on an Interest Payment
Date will be paid if other than in the manner provided herein; provided,
however, in each case, that the manner of determining such Person or making such
payment shall be acceptable to the Trustee (as not imposing on it any undue administrative
burden or risk of liability);
(21) The applicability, if any, of the Defeasance and Covenant Defeasance
provisions of Article Fourteen hereof to the Securities of the series;
(22) The obligation, if any, of the Company to permit the conversion of the
Securities of such series into Common Stock or Preferred Stock, as the case may be, and the
terms and conditions upon which such conversion shall be effected (including, without
limitation, the initial conversion price or rate, the conversion period, any adjustment of
the applicable conversion price and any requirements relative to the reservation of such
shares for purposes of conversion);
(23) If the Securities of such series are to be issuable in definitive form
(whether upon original issue or upon exchange of a temporary Security of such series) only
upon receipt of certain certificates or other documents or satisfaction of other conditions,
then the form and/or terms of such certificates, documents or conditions;
(24) Designation of the Trustee, if different from the Trustee under the Indenture,
with respect to such series and the terms applicable to such Trustee
(which shall be accepted by such Trustee by its execution and delivery of a supplemental
indenture as provided therein); and
(25) Any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture).
All Securities of any one series and the coupons appertaining to any Bearer Securities of such
series shall be substantially identical except, in the case of Registered Securities, as to
denomination and except as may otherwise be provided in or pursuant to such Board Resolution
(subject to Section 303) and set forth in such Officers Certificate or in any such indenture
supplemental hereto. All Securities of any one series need not be issued at the same time and,
unless otherwise provided, a series may be reopened, without the consent of the Holders, for
issuances of additional Securities of such series.
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If any of the terms of the Securities of any series are established by action taken pursuant
to one or more Board Resolutions, a copy of an appropriate record of such action(s) shall be
certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at
or prior to the delivery of the Officers Certificate setting forth the terms of the Securities of
such series.
SECTION 302. Denominations. The Securities of each series shall be issuable in such
denominations as shall be specified as contemplated by Section 301. With respect to Securities of
any series denominated in Dollars, in the absence of any such provisions with respect to the
Securities of any series, the Securities of such series, other than Global Securities (which may be
of any denomination), shall be issuable in denominations of $1,000 and any integral multiple
thereof or the equivalent amounts thereof in the case of Securities denominated in the Foreign
Currency or currency unit.
SECTION 303. Execution, Authentication, Delivery and Dating. The Securities and any
coupons appertaining thereto shall be executed on behalf of the Company by its Chairman of the
Board, its Chief Executive Officer, its President, or one of its Vice Presidents, under its
corporate seal reproduced thereon, and attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Securities and coupons may be manual or
facsimile signatures of the present or any future such authorized officer and may be imprinted or
otherwise reproduced on the Securities.
Securities and coupons bearing the manual or facsimile signatures of individuals who were at
any time the proper officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities or coupons.
At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series, together with any coupon appertaining thereto,
executed by the Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities (accompanied by a copy of the Board
Resolution and the Officers Certificate or supplemental indenture contemplated by Section
301), and the Trustee in accordance with the Company Order shall authenticate and deliver such
Securities; provided, however, that, in connection with its original issuance, no
Bearer Security shall be mailed or otherwise delivered to any location in the United States; and
provided further that, unless otherwise specified with respect to any series of
Securities pursuant to Section 301, a Bearer Security may be delivered in connection with its
original issuance only if the Person entitled to receive such Bearer Security shall have furnished
a certificate to Euroclear or Clearstream, as the case may be, in the form set forth in Exhibit
B-1 to this Indenture or such other certificate as may be specified by the Company with respect
to any series of Securities pursuant to Section 301, dated no earlier than 15 days prior to the
earlier of the date on which such Bearer Security is delivered and the date on which any temporary
Security first becomes exchangeable for such Bearer Security in accordance with the terms of such
temporary Security and this Indenture. If any Security shall be represented by a permanent Global
Security, then, for purposes of this Section and Section 304, the notation of a beneficial owners
interest therein
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upon original issuance of such Security or upon exchange of a portion of a
temporary Global Security shall be deemed to be delivery in connection with its original issuance
of such beneficial owners interest in such permanent Global Security. Except as permitted by
Section 306, the Trustee shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then matured have been detached and canceled.
If all the Securities of any series are not to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit, such Company Order
may set forth procedures acceptable to the Trustee for the issuance of such Securities and
determining the terms of particular Securities of such series, such as interest rate or formula,
maturity date, date of issuance and date from which interest shall accrue. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to TIA Section 315(a) through
315(d)) shall be fully protected in relying upon,
(i) an Opinion of Counsel stating that
(a) the form or forms of such Securities and any coupons have been
established in conformity with the provisions of this Indenture;
(b) the terms of such Securities and any coupons have been
established in conformity with the provisions of this Indenture; and
(c) such Securities, together with any coupons appertaining
thereto, when completed by appropriate insertions and executed and delivered
by the Company to the Trustee for authentication in accordance with this
Indenture, authenticated and delivered by the Trustee in accordance with
this Indenture and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute legal,
valid and legally binding obligations of the Company, enforceable in
accordance with their terms, subject to applicable bankruptcy, insolvency,
fraudulent transfer, reorganization and other similar laws of general
applicability relating to or affecting the
enforcement of creditors rights generally and to general equitable
principles; and
(ii) an Officers Certificate stating that all conditions precedent
provided for in this Indenture relating to the issuance of the Securities have been
complied with and that, to the best of the knowledge of the signers of such
certificate, that no Event of Default with respect to any of the Securities shall
have occurred and be continuing.
If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities (or to enter into the related supplemental indenture, if applicable)
if the issue of such Securities pursuant to this Indenture will affect the Trustees own rights,
duties, obligations or immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.
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Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all the
Securities of any series are not to be issued at one time, it shall not be necessary to deliver an
Officers Certificate otherwise required pursuant to Section 301 or a Company Order, or an Opinion
of Counsel or an Officers Certificate otherwise required pursuant to the preceding paragraph at
the time of issuance of each Security of such series, but such order, opinion and certificates,
with appropriate modifications to cover such future issuances, shall be delivered at or before the
time of issuance of the first Security of such series.
Each Registered Security shall be dated the date of its authentication and each Bearer
Security shall be dated as of the date specified as contemplated by Section 301.
No Security or coupon shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security or Security to which such coupon
appertains a certificate of authentication substantially in the form provided for herein duly
executed by the Trustee (subject to Section 611) by manual signature of an authorized signatory,
and such certificate upon any Security shall be conclusive evidence, and the only evidence, that
such Security has been duly authenticated and delivered hereunder and is entitled to the benefits
of this Indenture. Notwithstanding the foregoing, if any Security (including a Global Security)
shall have been authenticated and delivered hereunder but never issued and sold by the Company, and
the Company shall deliver such Security to the Trustee for cancellation as provided in Section 309
together with a written statement (which need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by
the Company, for all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the benefits of this
Indenture.
SECTION 304. Temporary Securities.
(a) Pending the preparation of definitive Securities of any series, the Company may
execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced,
in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of
which they are issued, in registered form, or, if authorized, in bearer form with one or more
coupons or without coupons, and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as conclusively evidenced
by their execution of such Securities. In the case of Securities of any series, such temporary
Securities may be in global form.
Except in the case of temporary Global Securities (which shall be exchanged as otherwise
provided herein or as otherwise provided in or pursuant to a Board Resolution or supplemental
indenture pursuant to Section 301), if temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without unreasonable delay. After
the preparation of definitive Securities of such series, the temporary Securities of such series
shall be exchangeable for definitive Securities of such series upon surrender of the temporary
Securities of such series at the office or agency of the Company in a Place of Payment for that
series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series (accompanied by any non-matured coupons appertaining
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thereto), the Company
shall execute (in accordance with a Company Order delivered at or prior to the authentication of
the first definitive security to such series) and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of the same series of authorized
denominations; provided, however, that no definitive Bearer Security shall be
delivered in exchange for a temporary Registered Security; and provided further
that a definitive Bearer Security shall be delivered in exchange for a temporary Bearer Security
only in compliance with the conditions set forth in Section 303. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.
(b) Unless otherwise provided in or pursuant to a Board Resolution or supplemental
indenture pursuant to Section 301, the following provisions of this Section 304(b) shall govern the
exchange of temporary Securities other than through the facilities of the DTC. If any such
temporary Security is issued in global form, then such temporary Global Security shall, unless
otherwise provided therein, be delivered to the London office of a depository or common depository
upon and pursuant to written direction of the Company (the Common Depository), for the benefit of
Euroclear and Clearstream, for credit to the respective accounts of the beneficial owners of such
Securities (or to such other accounts as they may direct).
Without unnecessary delay but in any event not later than the date specified in, or determined
pursuant to the terms of, any such temporary Global Security (the Exchange Date), the Company
shall deliver to the Trustee definitive Securities, in aggregate principal amount equal to the
principal amount of such temporary Global Security, executed by the Company. On or after the
Exchange Date, such temporary Global Security shall be surrendered by the Common Depository to the
Trustee, as the Companys agent for such purpose, to be exchanged, in whole or from time to time in
part, for definitive Securities without charge, and the Trustee shall authenticate and deliver, in
exchange for each portion of such temporary Global Security, an equal aggregate principal amount of
definitive Securities of the same series of authorized denominations and of like tenor as the
portion of such temporary Global Security to be exchanged. The definitive Securities to be
delivered in exchange for any such temporary Global
Security shall be in bearer form, registered form, permanent global bearer form or permanent
global registered form, or any combination thereof, as specified as contemplated by Section 301,
and, if any combination thereof is so specified, as requested by the beneficial owner thereof (as
directed by or pursuant to information provided by the Common Depository); provided,
however, that, unless otherwise specified in such temporary Global Security, upon such
presentation by the Common Depository, such temporary Global Security shall be accompanied by a
certificate dated the Exchange Date or a subsequent date and signed by Euroclear as to the portion
of such temporary Global Security held for its account then to be exchanged and a certificate dated
the Exchange Date or a subsequent date and signed by Clearstream as to the portion of such
temporary Global Security held for its account then to be exchanged, each in the form set forth in
Exhibit B-2 to this Indenture or in such other form as may be established pursuant to
Section 301; and provided further that definitive Bearer Securities shall be
delivered in exchange for a portion of a temporary Global Security only in compliance with the
requirements of Section 303.
Unless otherwise specified in such temporary Global Security, the interest of a beneficial
owner of Securities of a series in a temporary Global Security shall be exchanged for definitive
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Securities of the same series and of like tenor following the Exchange Date when the account holder
instructs Euroclear or Clearstream, as the case may be, to request such exchange on his behalf and
delivers to Euroclear or Clearstream, as the case may be, a certificate in the form set forth in
Exhibit B-1 to this Indenture (or in such other form as may be established pursuant to
Section 301), dated no earlier than 15 days prior to the Exchange Date, copies of which certificate
shall be available from the offices of Euroclear and Clearstream, the Trustee, any Authenticating
Agent appointed for such series of Securities and each Paying Agent. Unless otherwise specified in
such temporary Global Security, any such exchange shall be made free of charge to the beneficial
owners of such temporary Global Security, except that a Person receiving definitive Securities must
bear the cost of insurance, postage, transportation and the like unless such Person takes delivery
of such definitive Securities in person at the offices of Euroclear or Clearstream. Definitive
Securities in bearer form to be delivered in exchange for any portion of a temporary Global
Security shall be delivered only to an address located outside the United States.
Until exchanged in full as hereinabove provided, the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as definitive Securities of
the same series and of like tenor authenticated and delivered hereunder, except that, unless
otherwise specified as contemplated by Section 301, interest payable on a temporary Global Security
on an Interest Payment Date for Securities of such series occurring prior to the applicable
Exchange Date shall be payable to Euroclear and Clearstream on such Interest Payment Date upon
delivery by Euroclear and Clearstream to the Trustee of a certificate or certificates in the form
set forth in Exhibit B-2 to this Indenture (or in such other forms as may be established
pursuant to Section 301), for credit without further interest on or after such Interest Payment
Date to the respective accounts of Persons who are the beneficial owners of such temporary Global
Security on such Interest Payment Date and who have each delivered to Euroclear or Clearstream, as
the case may be, a certificate dated no earlier than 15 days prior to the Interest Payment Date
occurring prior to such Exchange Date in the form set forth as Exhibit B-1 to this
Indenture (or in such other forms as may be established pursuant to Section 301). Notwithstanding
anything to the contrary herein contained, the certifications made pursuant to
this paragraph shall satisfy the certification requirements of the preceding two paragraphs of
this Section 304(b) and of the third paragraph of Section 303 of this Indenture and the interests
of the Persons who are the beneficial owners of the temporary Global Security with respect to which
such certification was made will be exchanged for definitive Securities of the same series and of
like tenor on the Exchange Date or the date of certification if such date occurs after the Exchange
Date, without further act or deed by such beneficial owners. Except as otherwise provided in this
paragraph, no payments of principal or interest owing with respect to a beneficial interest in a
temporary Global Security will be made unless and until such interest in such temporary Global
Security shall have been exchanged for an interest in a definitive Security. Any interest so
received by Euroclear and Clearstream and not paid as herein provided shall be returned to the
Trustee prior to the expiration of two years after such Interest Payment Date in order to be repaid
to the Company.
With respect to Exhibit B-1 or B-2 to this Indenture, the Company may, in its discretion and
if required or desirable under applicable law, substitute one or more other forms of such exhibits
for such exhibits, eliminate the requirement that any or all certificate be provided, or change the
time that any certificate may be required, provided that such substitute form or
forms
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or notice of elimination or change of such certification requirement have theretofore been
delivered to the Trustee with a Company Request and such form or forms, elimination or change is
reasonably acceptable to the Trustee.
SECTION 305. Registration, Registration of Transfer, Conversion and Exchange. The
Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any office or
agency of the Company in a Place of Payment a register for each series of Securities (the registers
maintained in such office or in any such office or agency of the Company in a Place of Payment
being herein sometimes referred to collectively as the Security Register) in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for the registration of
Registered Securities and of transfers of Registered Securities. The Security Register shall be in
written form or any other form capable of being converted into written form within a reasonable
time. The Trustee, at its Corporate Trust Office, is hereby initially appointed Security
Registrar for the purpose of registering Registered Securities and transfers of Registered
Securities on such Security Register as herein provided. In the event that the Trustee shall cease
to be Security Registrar, it shall have the right to examine, and be provided a copy of, the
Security Register at all reasonable times.
Subject to the provisions of this Section 305, upon surrender for registration of transfer of
any Registered Security of any series at any office or agency of the Company in a Place of Payment
for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Registered Securities of the same
series, of any authorized denominations and of a like aggregate principal amount, bearing a number
not contemporaneously outstanding, and containing identical terms and provisions.
Subject to the provisions of this Section 305, at the option of the Holder, Registered
Securities of any series may be exchanged for other Registered Securities of the same series, of
any authorized denomination or denominations and of a like aggregate principal amount,
containing identical terms and provisions, upon surrender of the Registered Securities to be
exchanged at any such office or agency. Whenever any such Registered Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the
Registered Securities which the Holder making the exchange is entitled to receive. Unless
otherwise specified with respect to any series of Securities as contemplated by Section 301, Bearer
Securities may not be issued in exchange for Registered Securities.
If (but only if) permitted by the applicable Board Resolution and (subject to Section 303) set
forth in the applicable Officers Certificate, or in any indenture supplemental hereto, delivered
as contemplated by Section 301, at the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized denominations and of a
like aggregate principal amount and tenor, upon surrender of the Bearer Securities to be exchanged
at any such office or agency, with all unmatured coupons and all matured coupons in default thereto
appertaining. If the Holder of a Bearer Security is unable to produce any such unmatured coupon or
coupons or matured coupon or coupons in default, any such permitted exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company (or to the Trustee
for the Security in case of matured coupons
27
in default) in an amount equal to the face amount of
such missing coupon or coupons, or the surrender of such missing coupon or coupons may be waived by
the Company and the Trustee if there is furnished to them such security or indemnity as they may
require to save each of them and any Paying Agent harmless. If thereafter the Holder of such
Security shall surrender to any Paying Agent any such missing coupon in respect of which such a
payment shall have been made, such Holder shall be entitled to receive the amount of such payment;
provided, however, that, except as otherwise provided in Section 1002, interest
represented by coupons shall be payable only upon presentation and surrender of those coupons at an
office or agency located outside the United States. Notwithstanding the foregoing, in case a
Bearer Security of any series is surrendered at any such office or agency in a permitted exchange
for a Registered Security of the same series and like tenor after the close of business at such
office or agency on (i) any Regular Record Date and before the opening of business at such office
or agency on the relevant Interest Payment Date, or (ii) any Special Record Date and before the
opening of business at such office or agency on the related proposed date for payment of Defaulted
Interest, such Bearer Security shall be surrendered without the coupon relating to such Interest
Payment Date or proposed date for payment, as the case may be, and interest or Defaulted Interest,
as the case may be, will not be payable on such Interest Payment Date or proposed date for payment,
as the case may be, in respect of the Registered Security issued in exchange for such Bearer
Security, but will be payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.
Notwithstanding the foregoing, except as otherwise specified as contemplated by Section 301,
any permanent Global Security shall be exchangeable only as provided in this paragraph. If the
depository for any permanent Global Security is DTC, then, unless the terms of such Global Security
expressly permit such Global Security to be exchanged in whole or in part for definitive
Securities, a Global Security may be transferred, in whole but not in part, only to a nominee of
DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such Global Security selected or
approved by the Company or to a nominee of such successor to DTC. If at any time
DTC notifies the Company that it is unwilling or unable to continue as depository for the
applicable Global Security or Securities or if at any time DTC ceases to be a clearing agency
registered under the Exchange Act if so required by applicable law or regulation, the Company shall
appoint a successor depository with respect to such Global Security or Securities. If (w) a
successor depository for such Global Security or Securities is not appointed by the Company within
90 days after the Company receives such notice or becomes aware of such unwillingness, inability or
ineligibility, (x) the Company delivers to the Trustee for Securities of such series in registered
form a Company Order stating that the Securities of such series shall be exchangeable, (y) an Event
of Default has occurred and is continuing and the beneficial owners representing a majority in
principal amount of the applicable series of Securities represented by such Global Security or
Securities advise DTC to cease acting as depository for such Global Security or Securities or (z)
the Company, in its sole discretion, determines at any time that all Outstanding Securities (but
not less than all) of any series issued or issuable in the form of one or more Global Securities
shall no longer be represented by such Global Security or Securities, then the Company shall
execute, and the Trustee shall authenticate and deliver definitive Securities of like series, rank,
tenor and terms in definitive form in an aggregate principal amount equal to the principal amount
of such Global Security or Securities. If any beneficial owner of an interest in
28
a permanent
global Security is otherwise entitled to exchange such interest for Securities of such series and
of like tenor and principal amount of another authorized form and denomination, as specified as
contemplated by Section 301 and provided that any applicable notice provided in the permanent
Global Security shall have been given, then without unnecessary delay but in any event not later
than the earliest date on which such interest may be so exchanged, the Company shall execute, and
the Trustee shall authenticate and deliver definitive Securities in aggregate principal amount
equal to the principal amount of such beneficial owners interest in such permanent Global
Security. On or after the earliest date on which such interests may be so exchanged, such
permanent Global Security shall be surrendered for exchange by DTC or such other depository as
shall be specified in the Company Order with respect thereto to the Trustee, as the Companys agent
for such purpose; provided, however, that no such exchanges may occur during a
period beginning at the opening of business 15 days before any selection of Securities to be
redeemed and ending on the relevant Redemption Date if the Security for which exchange is requested
may be among those selected for redemption; and provided further that no Bearer
Security delivered in exchange for a portion of a permanent Global Security shall be mailed or
otherwise delivered to any location in the United States. If a Registered Security is issued in
exchange for any portion of a permanent Global Security after the close of business at the office
or agency where such exchange occurs on (i) any Regular Record Date and before the opening of
business at such office or agency on the relevant Interest Payment Date, or (ii) any Special Record
Date and the opening of business at such office or agency on the related proposed date for payment
of Defaulted Interest, interest or Defaulted Interest, as the case may be, will not be payable on
such Interest Payment Date or proposed date for payment, as the case may be, in respect of such
Registered Security, but will be payable on such Interest Payment Date or proposed date for
payment, as the case may be, only to the Person to whom interest in respect of such portion of such
permanent Global Security is payable in accordance with the provisions of this Indenture.
All Securities issued upon any registration of transfer or conversion or exchange of
Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled
to the same benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or conversion or exchange.
Every Registered Security presented or surrendered for registration of transfer or for
conversion, exchange or redemption shall (if so required by the Company or the Security Registrar)
be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing.
No service charge shall be made to the Holder for any registration of transfer or conversion
or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any registration of transfer or
conversion or exchange of Securities, other than exchanges pursuant to Section 304, 906, 1107 or
1305 not involving any transfer.
The Company or the Trustee, as applicable, shall not be required (i) to issue, register the
transfer of or exchange any Security if such Security may be among those selected for redemption
during a period beginning at the opening of business 15 days before selection of the
29
Securities to
be redeemed under Section 1103 and ending at the close of business on (A) if such Securities are
issuable only as Registered Securities, the day of the mailing of the relevant notice of redemption
and (B) if such Securities are issuable as Bearer Securities, the day of the first publication of
the relevant notice of redemption or, if such Securities are also issuable as Registered Securities
and there is no publication, the mailing of the relevant notice of redemption, or (ii) to register
the transfer of or exchange any Registered Security so selected for redemption in whole or in part,
except, in the case of any Registered Security to be redeemed in part, the portion thereof not to
be redeemed, or (iii) to exchange any Bearer Security so selected for redemption except that such a
Bearer Security may be exchanged for a Registered Security of that series and like tenor,
provided that such Registered Security shall be simultaneously surrendered for redemption,
or (iv) to issue, register the transfer of or exchange any Security which has been surrendered for
repayment at the option of the Holder, except the portion, if any, of such Security not to be so
repaid.
Furthermore, notwithstanding any other provision of this Section 305, the Company will not be
required to exchange any Securities if, as a result of the exchange, the Company would suffer
adverse consequences under any United States law or regulation.
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated
Security or a Security with a mutilated coupon appertaining to it is surrendered to the Trustee or
the Company, together with, in proper cases, such security or indemnity as may be required by the
Company or the Trustee to save each of them or any agent of either of them harmless, the Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series and principal amount, containing identical terms and provisions and bearing a
number not contemporaneously outstanding, with coupons corresponding to the coupons, if any,
appertaining to the surrendered Security.
If there shall be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or coupon, and (ii) such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security or coupon has been
acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Security or in exchange for
the Security to which a destroyed, lost or stolen coupon appertains (with all appurtenant coupons
not destroyed, lost or stolen), a new Security of the same series and principal amount, containing
identical terms and provisions and bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to such destroyed, lost or stolen Security or to
the Security to which such destroyed, lost or stolen coupon appertains.
Notwithstanding the provisions of the previous two paragraphs, in case any such mutilated,
destroyed, lost or stolen Security or coupon has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, with coupons corresponding to the
coupons, if any, appertaining to such destroyed, lost or stolen Security or to the Security to
which such destroyed, lost or stolen coupon appertains, pay such Security or coupon if the
applicant for such payment shall furnish to the Company and the Trustee for such
30
Security such
security or indemnity as may be required by them to save each of them harmless, and in the case of
destruction, loss or theft, evidence satisfactory to the Company and Trustee and any agent of any
of them of the destruction, loss or theft of such Security and the ownership thereof;
provided, however, that payment of principal of (and premium or Make-Whole Amount,
if any), and interest, if any, on, Bearer Securities shall, except as otherwise provided in Section
1002, be payable only at an office or agency located outside the United States and, unless
otherwise specified as contemplated by Section 301, any interest on Bearer Securities shall be
payable only upon presentation and surrender of the coupons appertaining thereto.
Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security of any series with its coupons, if any, issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security, or in exchange for a Security to which a destroyed,
lost or stolen coupon appertains, shall constitute an original additional contractual obligation of
the Company, whether or not the destroyed, lost or stolen Security and its coupons, if any, or the
destroyed, lost or stolen coupon shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities
of that series and their coupons, if any, duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities or coupons.
SECTION 307. Payment of Interest; Interest Rights Preserved.
Except as otherwise specified with respect to a series of Securities in accordance with the
provisions of Section 301, interest on any Registered Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name
that Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest payment at the office or agency of the Company maintained for
such purpose pursuant to Section 1002; provided, however, that each installment of
interest on any Registered Security may at the Companys option be paid by (i) mailing a check for
such interest, payable to or upon the written order of the Person entitled thereto pursuant to
Section 308, to the address of such Person as it appears on the Security Register or (ii) transfer
to an account maintained by the payee located inside the United States.
Unless otherwise provided as contemplated by Section 301 with respect to the Securities of any
series, payment of interest may be made, in the case of a Bearer Security, by transfer to an
account maintained by the payee with a bank located outside the United States.
Unless otherwise provided as contemplated by Section 301, every permanent Global Security will
provide that interest, if any, payable on any Interest Payment Date will be paid to DTC, Euroclear
and/or Clearstream, as the case may be, with respect to that portion of such permanent Global
Security held for its account by Cede & Co. or the Common Depository, as the
31
case may be, for the
purpose of permitting such party to credit the interest received by it in respect of such permanent
Global Security to the accounts of the beneficial owners thereof.
In case a Bearer Security of any series is surrendered in exchange for a Registered Security
of such series after the close of business (at an office or agency in a Place of Payment for such
series) on any Regular Record Date and before the opening of business (at such office or agency) on
the next succeeding Interest Payment Date, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date and interest will not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such Bearer Security, but
will be payable only to the Holder of such coupon when due in accordance with the provisions of
this Indenture.
Except as otherwise specified with respect to a series of Securities in accordance with the
provisions of Section 301, any interest on any Registered Security of any series that is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date (herein called
Defaulted Interest) shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may
be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to the Persons
in whose names the Registered Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Registered Security of such series and the date of the proposed payment (which shall
not be less than 20 days after such notice is received by the Trustee), and at the same time
the Company shall deposit with the Trustee an amount of money in the currency or currencies,
currency unit or units or composite currency or
currencies in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series) equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and, in the name
and at the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Registered Securities of such series at his address as it appears
in the Security Register not less than 10 days prior to such Special Record Date. The
Trustee may, in its discretion, in the name and at the expense of the Company, cause a
similar notice to be published at least once in an Authorized Newspaper in each Place of
Payment, but such publications shall not be a condition precedent to the establishment of
such Special Record Date. Notice of the
32
proposed payment of such Defaulted Interest and the
Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall
be paid to the Persons in whose names the Registered Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following clause (2). In case a
Bearer Security of any series is surrendered at the office or agency in a Place of Payment
for such series in exchange for a Registered Security of such series after the close of
business at such office or agency on any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of Defaulted
Interest, such Bearer Security shall be surrendered without the coupon relating to such
proposed date of payment and Defaulted Interest will not be payable on such proposed date of
payment in respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture.
(2) The Company may make payment of any Defaulted Interest on the Registered
Securities of any series in any other lawful manner not inconsistent with the requirements
of any over-the-counter market or securities exchange on which such Securities may be quoted
or listed, and upon such notice as may be required by such market or exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to this clause,
such manner of payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section and Section 305, each Security delivered
under this Indenture upon registration of transfer of or upon conversion of or in exchange for or
in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Security.
SECTION 308. Persons Deemed Owners. Prior to due presentment of a Registered Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name such
Registered Security is registered as the owner of such Security for the purpose of receiving
payment of principal of (and premium or Make-Whole Amount, if any), and (subject to Sections 305
and 307) interest on, such Registered Security and for all other purposes whatsoever, whether or
not such Registered Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary. All such payments so made to
any such Person, or upon such Persons order, shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for money payable upon any such Security.
Title to any Bearer Security and any coupons appertaining thereto shall pass by delivery. The
Company, the Trustee and any agent of the Company or the Trustee may treat the Holder of any Bearer
Security and the Holder of any coupon as the absolute owner of such Security or coupon for the
purpose of receiving payment thereof or on account thereof and for all other purposes whatsoever,
whether or not such Security or coupon be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.
33
No holder of any beneficial interest in any Global Security held on its behalf by a depository
shall have any rights under this Indenture with respect to such Global Security and such depository
(which is the Holder of such security) shall be treated by the Company, the Trustee, and any agent
of the Company or the Trustee as the owner of such Global Security for all purposes whatsoever.
None of the Company, the Trustee, any Paying Agent or the Security Registrar 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 Security or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.
Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall
prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to
any written certification, proxy or other authorization furnished by any depository, as a Holder,
with respect to such Global Security or impair, as between such depository and owners of beneficial
interests in such Global Security, the operation of customary practices governing the exercise of
the rights of such depository (or its nominee) as Holder of such Global Security.
SECTION 309. Cancellation. All Securities and coupons surrendered for payment,
redemption, repayment at the option of the Holder, registration of transfer or conversion or
exchange or for credit against any sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee, and any such Securities and coupons and Securities
and coupons surrendered directly to the Trustee for any such purpose, upon direction by the
Company, shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company may
have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for
delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which
the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by
the
Trustee. If the Company shall so acquire any of the Securities, however, such acquisition shall
not operate as a redemption or satisfaction of the indebtedness represented by such Securities
unless and until the same are surrendered to the Trustee for cancellation. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture. Cancelled Securities and coupons held by the
Trustee shall be disposed of by the Trustee in accordance with its customary practices (subject to
the record retention requirements of the Exchange Act).
SECTION 310. Computation of Interest. Except as otherwise specified as contemplated by
Section 301 with respect to Securities of any series, interest on the Securities of each series
shall be computed on the basis of a 360-day year consisting of twelve 30-day months.
SECTION 311. CUSIP Numbers. The Company in issuing the Securities may use CUSIP
numbers (if then generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of
redemption as a convenience to Holders; provided, however, that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall
34
not be
affected by any defect in or omission of such numbers. The Company will promptly notify the
Trustee of any change in the CUSIP numbers.
ARTICLE FOUR SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture. This Indenture shall upon
Company Request cease to be of further effect with respect to any series of Securities specified in
such Company Request (except as to any surviving rights of registration of transfer or conversion
or exchange of Securities of such series herein expressly provided for), and the Trustee, upon
receipt of a Company Order, and at the expense of the Company, shall execute instruments in form
and substance satisfactory to the Trustee and the Company acknowledging satisfaction and discharge
of this Indenture as to such series when
(1) either
(A) all Securities of such series theretofore authenticated and delivered
and all coupons, if any, appertaining thereto (other than (i) coupons appertaining
to Bearer Securities surrendered for exchange for Registered Securities and maturing
after such exchange, whose surrender is not required or has been waived as provided
in Section 305, (ii) Securities and coupons of such series which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 306, (iii) coupons appertaining to Securities called for redemption and
maturing after the relevant Redemption Date, whose surrender has been waived as
provided in Section 1106, and (iv) Securities and coupons of such series for
whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or
(B) all Securities of such series and, in the case of (i) or (ii) below,
any coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity within one year,
or
(iii) if redeemable at the option of the Company, are to be called for
redemption within one year under arrangements satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and at the expense, of
the Company,
and the Company, in the case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount in the currency or
currencies, currency unit or units or composite currency or currencies in which the Securities of
35
such series are payable, sufficient to pay and discharge the entire indebtedness on such Securities
and such coupons not theretofore delivered to the Trustee for cancellation, for principal (and
premium or Make-Whole Amount, if any) and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;
(2) the Company has paid or caused to be paid all other sums payable hereunder by
the Company; and
(3) the Company has delivered to the Trustee an Officers Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Indenture as to such series have been complied
with.
Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee and any predecessor Trustee under Section 606, the obligations of the Company to any
Authenticating Agent under Section 611 and, if money shall have been deposited with and held by the
Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 shall survive such satisfaction and
discharge.
SECTION 402. Application of Trust Funds. Subject to the provisions of the last
paragraph of Section 1003, all money deposited with the Trustee pursuant to Section 401 shall be
held in trust and applied by it, in accordance with the provisions of the Securities, the coupons
and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium or Make-Whole Amount, if
any), and any interest for whose payment such money has been deposited with or received by the
Trustee, but such money need not be segregated from other funds except to the extent required by
law.
ARTICLE FIVE REMEDIES
SECTION 501. Events of Default. Event of Default, wherever used herein with respect
to any particular series of Securities, means any one of the following events (whatever the reason
for such Event of Default and whether or not it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):
(1) default in the payment of any interest on any Security of that series or of any
coupon appertaining thereto, when such interest or coupon becomes due and payable, and
continuance of such default for a period of 30 days; or
(2) default in the payment of the principal of (or premium or Make-Whole Amount, if
any, on) any Security of that series when it becomes due and payable at its Maturity; or
36
(3) default in the deposit of any sinking fund payment, to the extent applicable to
such series of Securities, when and as due by the terms of any Security of that series; or
(4) default in the performance, or breach, of any covenant or warranty of the
Company in this Indenture with respect to any Security of that series (other than a covenant
or warranty a default in whose performance or whose breach is elsewhere in this Section
specifically dealt with or which has expressly been included in this Indenture solely for
the benefit of a series of Securities other than that series), and continuance of such
default or breach for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a Notice of Default hereunder; or
(5) default under any bond, debenture, note, mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced any
indebtedness for money borrowed by the Company (or by any Subsidiary, the repayment of which
the Company has guaranteed or for which the Company is directly responsible or liable as
obligor or guarantor), having an aggregate principal amount outstanding of at least
$30,000,000, whether such indebtedness now exists or shall hereafter be created, which
default shall have resulted in such indebtedness becoming or being declared due
and payable prior to the date on which it would otherwise have become due and payable,
without such indebtedness having been discharged, or such acceleration having been rescinded
or annulled, within a period of 30 days after there shall have been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 10% in principal amount of the Outstanding Securities of that series a
written notice specifying such default and requiring the Company to cause such indebtedness
to be discharged or cause such acceleration to be rescinded or annulled and stating that
such notice is a Notice of Default hereunder; provided, however, that,
subject to the provisions of Sections 601 and 602, the Trustee shall not be deemed to have
knowledge of such default unless either (A) a Responsible Officer of the Trustee shall have
knowledge of such default or (B) the Trustee shall have received written notice thereof from
the Company, from any Holder, from the holder of any such indebtedness or from the trustee
under any such mortgage, indenture or other instrument; or
(6) the Company or any Significant Subsidiary pursuant to or within the meaning of
any Bankruptcy Law:
(A) commences a voluntary case,
(B) consents to the entry of an order for relief against it in an
involuntary case,
(C) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or
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(D) makes a general assignment for the benefit of its creditors; or
(7) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:
(A) is for relief against the Company or any Significant Subsidiary in an
involuntary case,
(B) appoints a Custodian of the Company or any Significant Subsidiary or
for all or substantially all of either of its property, or
(C) orders the liquidation of the Company or any Significant Subsidiary,
and the order or decree remains unstayed and in effect for 90 days; or
(8) any other Event of Default provided with respect to Securities of that series.
As used in this Section 501, the term Bankruptcy Law means title 11, U.S. Code or any
similar Federal or state law for the relief of debtors and the term Custodian means any receiver,
trustee, assignee, liquidator or other similar official under any Bankruptcy Law.
SECTION 502. Acceleration of Maturity; Rescission and Annulment. If an Event of
Default with respect to Securities of any series at the time Outstanding occurs and is continuing,
then and in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal amount (or,
if Securities of that Series are Original Issue Discount Securities or Indexed Securities, such
portion of the principal as may be specified in the terms thereof) of all the Securities of that
series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee
if given by the Holders), and upon any such declaration such principal or specified portion thereof
shall become immediately due and payable.
At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration of acceleration and its consequences if:
(1) the Company has paid or deposited with the Trustee a sum sufficient to pay in
the currency, currency unit or composite currency in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the Securities of such
series):
(A) all overdue installments of interest on all Outstanding Securities of
that series and any related coupons,
(B) the principal of (and premium or Make-Whole Amount, if any, on) any
Outstanding Securities of that series which have become due otherwise than
38
by such
declaration of acceleration and interest thereon at the rate or rates borne by or
provided for in such Securities,
(C) to the extent that payment of such interest is lawful, interest upon
overdue installments of interest at the rate or rates borne by or provided for in
such Securities, and
(D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and
(2) all Events of Default with respect to Securities of that series, other than the
nonpayment of the principal of (or premium or Make-Whole Amount, if any) or interest on
Securities of that series which have become due solely by such declaration of acceleration,
have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right consequent thereon.
SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee. The
Company covenants that if:
(1) default is made in the payment of any installment of interest on any Security
of any series and any related coupon when such interest becomes due and payable and such
default continues for a period of 30 days, or
(2) default is made in the payment of the principal of (or premium or Make-Whole
Amount, if any, on) any Security of any series at its Maturity,
then the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of the
Holders of such Securities of such series and coupons, the whole amount then due and payable on
such Securities and coupons for principal (and premium or Make-Whole Amount, if any) and interest,
with interest upon any overdue principal (and premium or Make-Whole Amount, if any) and, to the
extent that payment of such interest shall be legally enforceable, upon any overdue installments of
interest at the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Company or any other obligor upon such Securities of such series and
collect the moneys adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon such Securities of such series, wherever
situated.
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If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series and any related coupons by such appropriate judicial
proceedings as the Trustee shall deem necessary to protect and enforce any such rights, whether for
the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise
of any power granted herein, or to enforce any other proper remedy.
SECTION 504. Trustee May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Securities of any series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of overdue principal, premium or
Make-Whole Amount, if any, or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise:
(i) to file and prove a claim for the whole amount, or such lesser amount
as may be provided for in the Securities of such series, of principal (and premium
or Make-Whole Amount, if any) and interest owing and unpaid in respect of the
Securities and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and of the Holders allowed in such judicial proceeding, and
(ii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder of Securities of such
series and coupons to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee and
any predecessor Trustee, their agents and counsel, and any other amounts due the Trustee or any
predecessor Trustee under Section 606.
Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or coupons or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a
Security or coupon in any such proceeding.
In any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be a party) the
Trustee shall be held to represent all the Holders of the Securities, and it shall not be necessary
to make any Holders of the Securities parties to any such proceedings.
40
SECTION 505. Trustee May Enforce Claims Without Possession of Securities or Coupons.
All rights of action and claims under this Indenture or any of the Securities or coupons may be
prosecuted and enforced by the Trustee without the possession of any of the Securities or coupons
or the production thereof in any proceeding relating thereto, and any such proceeding instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities and coupons in respect of which such judgment has been recovered.
SECTION 506. Application of Money Collected. Any money collected by the Trustee
pursuant to this Article shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal (or premium or
Make-Whole Amount, if any) or interest, upon presentation of the Securities or coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under
Section 606;
SECOND: To the payment of the amounts then due and unpaid upon the Securities and coupons for
principal (and premium or Make-Whole Amount, if any) and interest, in respect of which or for the
benefit of which such money has been collected, ratably, without preference or priority of any
kind, according to the aggregate amounts due and payable on such Securities and coupons for
principal (and premium or Make-Whole Amount, if any) and interest, respectively; and
THIRD: To the payment of the remainder, if any, to the Company.
SECTION 507. Limitation on Suits. No Holder of any Security of any series or any
related coupon shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:
(1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;
(2) the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request;
41
(4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;
it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such Holders.
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium or Make-Whole
Amount, if any, and Interest. Notwithstanding any other provision in this Indenture, the
Holder of any Security or coupon shall have the right which is absolute and unconditional to
receive payment of the principal of (and premium or Make-Whole Amount, if any) and (subject to
Sections 305 and 307) interest on
such Security or payment of such coupon on the respective due dates expressed in such Security or
coupon (or, in the case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such
Holder.
SECTION 509. Restoration of Rights and Remedies. If the Trustee or any Holder of a
Security or coupon has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such case, the Company,
the Trustee and the Holders of Securities and coupons shall, subject to any determination in such
proceeding, be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.
SECTION 510. Rights and Remedies Cumulative. Except as otherwise provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities or coupons in the
last paragraph of Section 306, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders of Securities or coupons is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.
SECTION 511. Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder of any Security or coupon to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any such Event of Default
or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as
42
may be deemed expedient, by
the Trustee or by the Holders of Securities or coupons, as the case may be.
SECTION 512. Control by Holders of Securities. The Holders of not less than a majority
in principal amount of the Outstanding Securities of any series shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the Securities of such
series, provided that:
(1) such direction shall not be in conflict with any rule of law or with this
Indenture,
(2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and
(3) the Trustee need not take any action which might involve it in personal
liability or be unduly prejudicial to the Holders of Securities of such series not joining
therein.
Nothing in this Indenture shall impair the right of the Trustee in its discretion to take any
action deemed proper by the Trustee and which is not inconsistent with such direction by Holders.
SECTION 513. Waiver of Past Defaults. The Holders of not less than a majority in
principal amount of the Outstanding Securities of any series may on behalf of the Holders of all
the Securities of such series and any related coupons waive any past default hereunder with respect
to such series and its consequences, except a default
(1) in the payment of the principal of (or premium or Make-Whole Amount, if any) or
interest on any Security of such series or any related coupons, or
(2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series affected; or
(3) in respect of a covenant or provision hereof for the benefit or protection of
the Trustee, without its express written consent.
Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or Event of Default or impair any right
consequent thereon.
SECTION 514. Waiver of Usury, Stay or Extension Laws. The Company covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the
43
covenants or the
performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.
SECTION 515. Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess
reasonable costs, including reasonable attorneys fees and expenses, against any party litigant in
such suit having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the Outstanding Securities of any series, or to any suit instituted
by any Holder for the enforcement of the payment of the principal of (or premium or Make-Whole
Amount, if any) or interest on any Security on or after the respective Stated Maturities expressed
in such Security (or, in the case of redemption, on or after the Redemption Date).
ARTICLE SIX THE TRUSTEE
SECTION 601. Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall transmit in the manner
and to the extent provided in TIA Section 313(c), notice of such default hereunder known to the
Trustee, unless such default shall have been cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of (or premium or Make-Whole
Amount, if any) or interest on any Security of such series, or in the payment of any sinking or
purchase fund installment with respect to the Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interests of the Holders of the
Securities and coupons of such series; and provided further that in the case of any
default or breach of the character specified in Section 501(4) with respect to the Securities and
coupons of such series, no such notice to Holders shall be given until at least 60 days after the
occurrence thereof. For the purpose of this Section, the term default means any event which is,
or after notice or lapse of time or both would become, an Event of Default with respect to the
Securities of such series.
SECTION 602. Certain Rights of Trustee. Subject to the provisions of TIA Section
315(a) through 315(d):
44
(1) the Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, coupon or other
paper or document (whether in its original or facsimile form) reasonably believed by it to
be genuine and to have been signed or presented by the proper party or parties;
(2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order (other than delivery of any Security,
together with any coupons appertaining thereto, to the Trustee for authentication and
delivery pursuant to Section 303 which shall be sufficiently evidenced as provided therein)
and any resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;
(3) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon an Officers Certificate;
(4) the Trustee may consult with counsel of its own selection and the written
advice of such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon;
(5) the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the Holders of
Securities of any series or any related coupons pursuant to this Indenture, unless such
Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to
the Trustee against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;
(6) the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, coupon or other paper or
document, unless requested in writing so to do by the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities of any series; provided
that, if the payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it
by the terms of this Indenture, the Trustee may require reasonable indemnity against such
expenses or liabilities as a condition to proceeding; the reasonable expenses of every such
examination shall be paid by the Holders or, if paid by the Trustee, shall be repaid by the
Holders upon demand. The Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, relevant to the facts or matters that are the
subject of its inquiry, personally or by agent or attorney at the expense of the Company
45
and
shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation;
(7) the Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or attorney
appointed with due care by it hereunder;
(8) the Trustee shall not be liable for any action taken, suffered or omitted by it
in good faith and reasonably believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture;
(9) any permissive right or power available to the Trustee under this Indenture or
any supplement hereto shall not be construed to be a mandatory duty or obligation;
(10) the Trustee shall not be charged with knowledge of any matter (including any
default, other than as described in Section 501(1), (2) or (3)) unless and except to the
extent actually known to a Responsible Officer of the Trustee or to the extent written
notice thereof is received by the Trustee at the Corporate Trust Office;
(11) the Trustee shall have no liability for any inaccuracy in the books and
records of, or for any actions or omissions of, DTC, Euroclear or Clearstream or any
depository acting on behalf of any of them;
(12) the rights, privileges, protections, immunities and benefits given to the
Trustee, including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed by the Trustee to act hereunder; and
(13) the Trustee may request that the Company deliver an Officers Certificate
setting forth the names of individuals and/or titles of officers authorized at such time to
take specified actions pursuant to this Indenture, which Officers Certificate may be signed
by any person authorized to sign an Officers Certificate, including any person specified as
so authorized in any such certificate previously delivered and not superseded.
The Trustee shall not be required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it.
Except during the continuance of an Event of Default, the Trustee undertakes to perform only
such duties as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee.
SECTION 603. Not Responsible for Recitals or Issuance of Securities. The recitals
contained herein and in the Securities, except the Trustees certificate of authentication, and in
any coupons shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes
46
no
representations as to the validity or sufficiency of this Indenture or of the Securities or
coupons, except that the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities and perform its obligations hereunder. Neither the Trustee
nor any Authenticating Agent shall be accountable for the use or application by the Company of
Securities or the proceeds thereof. The Trustee shall have no responsibility with respect to any
information, statement or recital in any offering prospectus or other disclosure materials prepared
or distributed with respect to the Securities.
SECTION 604. May Hold Securities. The Trustee, any Paying Agent, Security Registrar,
Authenticating Agent or any other agent of the Company, in its individual or any other capacity,
may become the owner or pledgee of Securities and coupons and, subject to TIA Sections 310(b) and
311, may otherwise deal with the
Company with the same rights it would have if it were not Trustee, Paying Agent, Security
Registrar, Authenticating Agent or such other agent.
SECTION 605. Money Held in Trust. Money held by the Trustee in trust hereunder need
not be segregated from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as otherwise agreed in
writing with the Company.
SECTION 606. Compensation and Reimbursement. The Company agrees:
(1) to pay to the Trustee as agreed upon in writing from time to time reasonable
compensation for all services rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an express
trust);
(2) except as otherwise expressly provided herein, to reimburse each of the Trustee
and any predecessor Trustee upon its request for all reasonable expenses, and disbursements
incurred by the Trustee in accordance with any provision of this Indenture (including the
reasonable compensation and the reasonable expenses and disbursements of its agents and
counsel), except any such expense or disbursement as shall be determined to have been caused
by its own negligence, willful misconduct or bad faith; and
(3) to indemnify each of the Trustee and any predecessor Trustee for, and to hold
it harmless against, any loss, liability, claim, damage or expense incurred without
negligence, willful misconduct or bad faith on its part, arising out of or in connection
with the acceptance or administration of the trust or trusts hereunder, including the costs
and expenses of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.
When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 501(7) or Section 501(8), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to
47
constitute expenses
of administration under any applicable Federal or state bankruptcy, insolvency or other similar
law.
As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien for payment of the Trustees fees and expenses prior to the Securities
upon all property and funds held or collected by the Trustee as such, except funds held in trust
for the payment of principal of (or premium or Make-Whole Amount, if any) or interest on particular
Securities or any coupons.
The provisions of this Section shall survive the termination of this Indenture and the
resignation or removal of the Trustee.
SECTION 607. Corporate Trustee Required; Eligibility; Conflicting Interests. There
shall at all times be a Trustee hereunder which shall be eligible to act as Trustee under TIA
Section 310(a)(1) and shall have at all times a combined capital and surplus of at least
$50,000,000 (or which shall have a combined capital and surplus of at least $10,000,000 and whose
ultimate parent holding company shall have a combined capital and surplus of at least $50,000,000.
If the Trustee publishes reports of condition at least annually, pursuant to law or the
requirements of Federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of the Trustee
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. Neither the Company nor any Person directly or indirectly
controlling, controlled by, or under common control with the Company shall serve as Trustee.
SECTION 608. Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 609.
(b) The Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 60 days after the giving of
such notice of resignation, the resigning Trustee may petition, at the expense of the Company, any
court of competent jurisdiction for the appointment of a successor Trustee.
(c) The Trustee may be removed at any time with respect to the Securities of any series by
Act of the Holders of a majority in principal amount of the Outstanding Securities of such series
delivered to the Trustee and to the Company. If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within 60 days after the giving of such notice of
resignation, the resigning Trustee may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee.
(d) If at any time:
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(1) the Trustee shall fail to comply with the provisions of TIA Section 310(b)
after written request therefor by the Company or by any Holder of a Security who has been a
bona fide Holder of a Security for at least six months, or
(2) the Trustee shall cease to be eligible under Section 607 and shall fail to
resign after written request therefor by the Company or by any Holder of a Security who has
been a bona fide Holder of a Security for at least six months, or
(3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company by or pursuant to a Board Resolution may remove the Trustee
and appoint a successor Trustee with respect to all Securities, or (ii) subject to TIA Section
315(e), any Holder of a Security who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.
(e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause with respect to the Securities of one or more
series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more or
all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series). If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities
of any series shall have been so appointed by the Company or the Holders of Securities and accepted
appointment in the manner hereinafter provided, any Holder of a Security who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to Securities of such series.
(f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series in the manner provided for notices to the Holders of Securities in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.
SECTION 609. Acceptance of Appointment by Successor.
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(a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee,
and shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder, subject nevertheless to its claim, if any,
provided for in Section 606.
(b) In case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto, pursuant to Article Nine hereof, wherein each successor Trustee
shall accept such appointment and which (1) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the retiring Trustee is
not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Trustee; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.
(c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section 609, as the case
may be.
(d) No successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this Article.
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SECTION 610. Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities or coupons shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities or coupons so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities or coupons. In case
any Securities or coupons shall not have been authenticated by such predecessor Trustee, any such
successor Trustee may authenticate and deliver such Securities or coupons, in either its own name
or that of its predecessor Trustee, with the full force and effect which this Indenture provides
for the certificate of authentication of the Trustee.
SECTION 611. Appointment of Authenticating Agent. At any time when any of the
Securities remain Outstanding, the Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon conversion or exchange, registration
of transfer or partial redemption or repayment thereof, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Any such appointment shall be evidenced by an instrument
in writing signed by a Responsible Officer of the Trustee, a copy of which instrument shall be
promptly furnished to the Company. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustees certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a bank or trust company or corporation organized and doing
business and in good standing under the laws of the United States of America or of any state or the
District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or examination by
Federal or state authorities. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or the requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report
of condition so published. In case at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section.
Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this
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Section,
without the execution or filing of any paper or further act on the part of the Trustee or the
Authenticating Agent.
An Authenticating Agent for any series of Securities may at any time resign by giving written
notice of resignation to the Trustee for such series and to the Company. The Trustee for any
series of Securities may at any time terminate the agency of an Authenticating Agent by giving
written notice of termination to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section, the Trustee for such series may appoint a successor Authenticating Agent which shall be
acceptable to the Company and shall give notice of such appointment to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve in the manner set forth in
Section 106. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall
become vested with all the rights, powers and duties of its predecessor hereunder, with like effect
as if originally named as an Authenticating Agent herein. No successor Authenticating Agent shall
be appointed unless eligible under the provisions of this Section.
The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation including reimbursement of its reasonable expenses for its services under this
Section, subject to Section 606.
If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to or in lieu of the Trustees
certificate of authentication, an alternate certificate of authentication substantially in the
following form:
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
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SECTION 612. Certain Duties and Responsibilities of the Trustee.
(a) With respect to the Securities of any series, except during the continuance of an
Event of Default with respect to the Securities of such series:
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(1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform to the
requirements of this Indenture, but shall not be under any duty to verify the contents or
accuracy thereof.
(b) In case an Event of Default with respect to the Securities of any series has occurred
and is continuing, the Trustee shall, with respect to Securities of such series, exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances in the conduct of
his own affairs.
(c) No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(1) this Subsection shall not be construed to limit the effect of Subsection (a) of this
Section;
(2) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the
pertinent facts;
(3) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Securities of any series relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture with respect to the Securities of such
series; and
(4) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it; and, the Trustee shall be under no obligation to exercise any of its
rights and powers under this Indenture at the request of any Holder, unless such Holder shall have
offered to the Trustee security and indemnity satisfactory to it against any loss, liability or
expense.
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(d) Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee shall
be subject to the provisions of this Section 612.
(e) The Trustee shall not be liable for interest on any money or assets held by it except
to the extent the Trustee may agree in writing with the Company. Assets held in trust by the
Trustee need not be segregated from other assets except to the extent required by law.
ARTICLE SEVEN HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Disclosure of Names and Addresses of Holders. Every Holder of Securities
or coupons, by receiving and holding the same, agrees with the Company and the Trustee that neither
the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor any Security
Registrar shall be held accountable by reason of the disclosure of any information as to the names
and addresses of the Holders of Securities in accordance with TIA Section 312, regardless of the
source from which such information was derived, and that the Trustee shall not be held accountable
by reason of mailing any material pursuant to a request made under TIA Section 312(b).
SECTION 702. Reports by Trustee. The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be required by TIA Section 313
at the times and in the manner provided by the TIA, which shall initially be not less than every
twelve months commencing on __________, 20_. A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each over-the-counter market or securities
exchange, if any, upon which any Securities are quoted or listed, with the Commission and with the
Company. The Company will notify the Trustee when any Securities are quoted or listed on any
over-the-counter market or securities exchange or delisted therefrom.
SECTION 703. Reports by Company. The Company will:
(1) file with the Trustee, within 15 days after the Company is required to file the
same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Company may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the
Company is not required to file information, documents or reports pursuant to either of such
Sections, then it will file with the Trustee and the Commission, in accordance with rules
and regulations prescribed from time to time by the Commission, such of the supplementary
and periodic information, documents and reports which may be required pursuant to Section 13
of the Exchange Act in respect of a security quoted or listed and registered on an
over-the-counter market or national securities exchange as may be prescribed from time to
time in such rules and regulations;
(2) file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional information,
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documents and reports with respect to compliance by the Company with the conditions and
covenants of this Indenture as may be required from time to time by such rules and
regulations;
(3) transmit by mail to the Holders of Securities, within 30 days after the filing
thereof with the Trustee, in the manner and to the extent provided in TIA Section 313(c),
such summaries of any information, documents and reports required to be filed by the Company
pursuant to paragraphs (1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission; and
(4) delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustees receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information
contained therein, including the Companys compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers Certificates).
SECTION
704. Company to Furnish Trustee Names and Addresses of Holders. The
Company will furnish or cause to be furnished to the Trustee:
(a) semiannually, not later than 15 days after the Regular Record Date for interest for
each series of Securities, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders of Registered Securities of such series as of such Regular Record
Date, or if there is no Regular Record Date for interest for such series of Securities,
semiannually, upon such dates as are set forth in the Board Resolution or indenture supplemental
hereto authorizing such series, and
(b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished,
provided, however, that, so long as the Trustee is the Security Registrar, no such
list shall be required to be furnished.
ARTICLE EIGHT CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE
SECTION 801. Consolidations and Mergers of Company and Sales, Leases and Conveyances
Permitted Subject to Certain Conditions. The Company may consolidate with, or sell, lease or
convey all or substantially all of its assets to, or merge with or into any other corporation,
provided that in any such case, (1) either the Company shall be the continuing corporation, or the
successor corporation shall be a corporation organized and existing under the laws of the United
States or a State thereof and such successor corporation shall expressly assume the due and
punctual payment of the principal of (and premium or Make-Whole Amount, if any) and any interest on
all of the Securities, according to their tenor, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be performed by the Company
by supplemental indenture, complying with Article Nine hereof,
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satisfactory to the Trustee,
executed and delivered to the Trustee by such corporation, (2) immediately after giving effect to
such transaction and treating any indebtedness which becomes an obligation of the Company or any
Subsidiary as a result
thereof as having been incurred by the Company or such Subsidiary at the time of such transaction,
no Event of Default, and no event which, after notice or the lapse of time, or both, would become
an Event of Default, shall have occurred and be continuing and (3) the Company shall have delivered
to the Trustee the Officers Certificate and Opinion of Counsel required pursuant to Section 803
below.
SECTION 802. Rights and Duties of Successor Corporation. In case of any such
consolidation, merger, sale, lease or conveyance and upon any such assumption by the successor
corporation, such successor corporation shall succeed to and be substituted for the Company, with
the same effect as if it had been named herein as the party of the first part, and the predecessor
corporation, except in the event of a lease, shall be relieved of any further obligation under this
Indenture and the Securities. Such successor corporation thereupon may cause to be signed, and may
issue either in its own name or in the name of the Company, any or all of the Securities issuable
hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee;
and, upon the order of such successor corporation, instead of the Company, and subject to all the
terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and
shall deliver any Securities which previously shall have been signed and delivered by the officers
of the Company to the Trustee for authentication, and any Securities which such successor
corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose. All
the Securities so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the execution hereof.
In case of any such consolidation, merger, sale, lease or conveyance, such changes in
phraseology and form (but not in substance) may be made in the Securities thereafter to be issued
as may be appropriate.
SECTION 803. Officers Certificate and Opinion of Counsel. Any consolidation, merger,
sale, lease or conveyance permitted under Section 801 is also subject to the condition that the
Trustee receive an Officers Certificate and an Opinion of Counsel to the effect that any such
consolidation, merger, sale, lease or conveyance, and the assumption by any successor corporation,
complies with the provisions of this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.
ARTICLE NINE SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders. Without the consent
of any Holders of Securities or coupons, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:
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(1) to evidence the succession of another Person to the Company and the assumption
by any such successor of the covenants of the Company contained herein and in the
Securities; or
(2) to add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default for the benefit of the Holders of all
or any series of Securities (and if such Events of Default are to be for the benefit of less
than all series of Securities, stating that such Events of Default are expressly being
included solely for the benefit of such series); provided, however, that in
respect of any such additional Events of Default such supplemental indenture may provide for
a particular period of grace after default (which period may be shorter or longer than that
allowed in the case of other defaults) or may provide for an immediate enforcement upon such
default or may limit the remedies available to the Trustee upon such default or may limit
the right of the Holders of a majority in aggregate principal amount of that or those series
of Securities to which such additional Events of Default apply to waive such default; or
(4) to add to or change any of the provisions of this Indenture to provide that
Bearer Securities may be registrable as to principal, to change or eliminate any
restrictions on the payment of principal of or premium or Make-Whole Amount, if any, or
interest on Bearer Securities, to permit Bearer Securities to be issued in exchange for
Registered Securities, to permit Bearer Securities to be issued in exchange for Bearer
Securities of other authorized denominations or to permit or facilitate the issuance of
Securities in uncertificated form, provided that any such action shall not adversely
affect the interests of the Holders of Securities of any series or any related coupons in
any material respect; or
(5) to change or eliminate any of the provisions of this Indenture,
provided that any such change or elimination shall become effective only when there
is no Security Outstanding of any series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision; or
(6) to secure the Securities; or
(7) to establish the form or terms of Securities of any series and any related
coupons as permitted or contemplated by Sections 201 and 301; or
(8) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee; or
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(9) to cure any ambiguity, to correct or supplement any provision herein which may
be defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture which shall not
be inconsistent with the provisions of this Indenture, provided such provisions
shall not adversely affect the interests of the Holders of Securities of any series or any
related coupons in any material respect; or
(10) to supplement any of the provisions of this Indenture to such extent as shall
be necessary to permit or facilitate the Defeasance and discharge of any series of
Securities pursuant to Sections 401, 1402 and 1403; provided that any such action
shall not adversely affect the interests of the Holders of Securities of such series and any
related coupons or any other series of Securities in any material respect; or
(11) to make provisions with respect to Holders rights of conversion with respect
to any series of Securities pursuant to Article Sixteen.
SECTION 902. Supplemental Indentures with Consent of Holders. With the consent of the
Holders of not less than a majority in principal amount of all Outstanding Securities affected by
such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by or pursuant to a Board Resolution, and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner
the rights of the Holders of Securities and any related coupons under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent
of the Holder of each Outstanding Security affected thereby:
(1) change the Stated Maturity of the principal of (or premium or Make-Whole
Amount, if any, on) or any installment of principal of or interest on, any Security; or
reduce the principal amount thereof or the rate or amount of interest thereon, or any
premium or Make-Whole Amount payable upon the redemption thereof, or reduce the amount of
the principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502 or the amount
thereof provable in bankruptcy pursuant to Section 504, or adversely affect any right of
repayment at the option of the Holder of any Security, or change any Place of Payment where,
or the currency or currencies, currency unit or units or composite currency or currencies in
which, any Security or any premium or Make-Whole Amount or the interest thereon is payable,
or impair the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption or repayment at the option of the
Holder, on or after the Redemption Date or the Repayment Date, as the case may be), or (if
Securities of such series are convertible) adversely affect the right of the Holder to
convert any Security as provided in Article Sixteen; or
(2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver with respect to such series
(or
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compliance with certain provisions of this Indenture or certain defaults hereunder and
their consequences) provided for in this Indenture, or reduce the requirements of Section
1504 for quorum or voting, or
(3) modify any of the provisions of this Section, Section 513 or Section 1009,
except to increase the required percentage to effect such action or to provide that certain
other provisions of this Indenture cannot be modified or waived without the consent of the
Holder of each Outstanding Security affected thereby, provided, however,
that this clause shall not be deemed to require the consent of any Holder with respect to
changes in the references to the Trustee and concomitant changes in this Section 902 and
Section 1009, or the deletion of this proviso, in accordance with the requirements of
Sections 609(b) and 901(11).
It shall not be necessary for any Act of Holders under this Section 902 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.
A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
SECTION 903. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article or the
modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 612) shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustees own rights, duties or immunities under this Indenture or
otherwise.
SECTION 904. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder and of any coupon
appertaining thereto shall be bound thereby.
SECTION 905. Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as
then in effect.
SECTION 906. Reference in Securities to Supplemental Indentures. Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall, if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so
59
determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.
ARTICLE TEN COVENANTS
SECTION 1001. Payment of Principal, Premium or Make-Whole Amount, if any; and Interest.
The Company covenants and agrees for the benefit of the Holders of each series of Securities that
it will duly and punctually pay the principal of (and premium or Make-Whole Amount, if any) and
interest on the Securities of that series in accordance with the terms of such series of
Securities, any coupons appertaining thereto and this Indenture. Unless otherwise specified as
contemplated by Section 301 with respect to any series of Securities, any interest due on Bearer
Securities on or before Maturity shall be payable only upon presentation and surrender of the
several coupons for such interest installments as are evidenced thereby as they severally mature.
Unless otherwise specified with respect to Securities of any series pursuant to Section 301, at the
option of the Company (upon written notice to the Trustee), all payments of principal may be paid
by check to the registered Holder of the Registered Security or other Person entitled thereto
against surrender of such Security.
SECTION 1002. Maintenance of Office or Agency. If Securities of a series are issuable
only as Registered Securities, the Company shall maintain in each Place of Payment for any series
of Securities an office or agency where Securities of that series may be presented or surrendered
for payment or conversion, where Securities of that series may be surrendered for registration of
transfer or conversion or exchange and where notices and demands to or upon the Company in respect
of the Securities of that series and this Indenture may be served. If Securities of a series are
issuable as Bearer Securities, the Company will maintain: (A) in the Borough of Manhattan, The City
of New York, an office or agency where any Registered Securities of that series may be presented or
surrendered for payment or conversion, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be surrendered for
conversion or exchange, where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served and where Bearer Securities of that
series and related coupons may be presented or surrendered for payment or conversion in the
circumstances described in the following paragraph (and not otherwise); (B) subject to any laws or
regulations applicable thereto, in a Place of Payment for that series which is located outside the
United States, an office or agency where Securities of that series and related coupons may be
presented and surrendered for payment; provided, however, that if the Securities of
that series are listed on any stock exchange located outside the United States and such stock
exchange shall so require, the Company will maintain a Paying Agent for the Securities of that
series in any required city
located outside the United States, as the case may be, so long as the Securities of that series are
listed on such exchange; and (C) subject to any laws or regulations applicable thereto, in a Place
of Payment for that series located outside the United States an office or agency where any
Registered Securities of that series may be surrendered for registration of transfer, where
Securities of that series may be surrendered for conversion or exchange and where notices and
demands to or upon
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the Company in respect of the Securities of that series and this Indenture may
be served. The Company will give prompt written notice to the Trustee of the location, and any
change in the location, of each such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office of the Trustee, except that Bearer Securities of that series and the related coupons
may be presented and surrendered for payment or conversion at the offices specified in the
Security, in London, England, and the Company hereby appoints the same as its agent to receive such
respective presentations, surrenders, notices and demands, and the Company hereby appoints the
Trustee its agent to receive all such presentations, surrenders, notices and demands.
Unless otherwise specified with respect to any Securities pursuant to Section 301, no payment
of principal, premium or Make-Whole Amount or interest on Bearer Securities shall be made at any
office or agency of the Company in the United States or by check mailed to any address in the
United States or by transfer to an account maintained with a bank located in the United States;
provided, however, that, if the Securities of a series are payable in Dollars,
payment of principal of and any premium or Make-Whole Amount and interest on any Bearer Security
shall be made at the office of the Companys Paying Agent in the Borough of Manhattan, The City of
New York, if (but only if) payment in Dollars of the full amount of such principal, premium or
Make-Whole Amount, or interest, as the case may be, at all offices or agencies outside the United
States maintained for the purpose by the Company in accordance with this Indenture, is illegal or
effectively precluded by exchange controls or other similar restrictions.
The Company may from time to time designate one or more other offices or agencies (in or
outside the Place of Payment) where the Securities of one or more series may be presented or
surrendered for any or all of such purposes, and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in accordance with the
requirements set forth above for Securities of any series for such purposes. The Company will give
prompt written notice to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency. Unless otherwise specified with respect to any
Securities pursuant to Section 301 with respect to a series of Securities, the Company hereby
designates as a Place of Payment for each series of Securities, each of (i) the office or agency of
the Company in the Borough of Manhattan, The City of New York, and (ii) the Corporate Trust Office
of the Trustee (as Paying Agent); and the Company hereby initially appoints the Trustee at its
Corporate Trust Office as Paying Agent in such city; and the Company hereby initially appoints as
its agent to receive all such presentations, surrenders, notices and demands each of the Trustee,
at its Corporate Trust Office.
Unless otherwise specified with respect to any Securities pursuant to Section 301, if and so
long as the Securities of any series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of Securities, or as so
required, at least one exchange rate agent (of which it shall give written notice to the Trustee).
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SECTION 1003. Money for Securities Payments to Be Held in Trust. If the Company shall
at any time act as its own Paying Agent with respect to any series of any Securities and any
related coupons, it will, on or before each due date of the principal of (and premium or Make-Whole
Amount, if any), or interest on any of the Securities of that series, segregate and hold in trust
for the benefit of the Persons entitled thereto a sum in the currency or currencies, currency unit
or units or composite currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series)
sufficient to pay the principal (and premium or Make-Whole Amount, if any) or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and
will promptly notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for any series of Securities and any
related coupons, it will, on or before each due date of the principal of (and premium or Make-Whole
Amount, if any), or interest on any Securities of that series, deposit with a Paying Agent a sum
(in the currency or currencies, currency unit or units or composite currency or currencies
described in the preceding paragraph) sufficient to pay the principal (and premium or Make-Whole
Amount, if any) or interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or Make-Whole Amount, if any, or interest and (unless
such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.
The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will
(1) hold all sums held by it for the payment of principal of (and premium or
Make-Whole Amount, if any) or interest on Securities in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as
herein provided;
(2) give the Trustee notice of any default by the Company (or any other obligor
upon the Securities) in the making of any such payment of principal (and premium or
Make-Whole Amount, if any) or interest on the Securities of that series; and
(3) at any time during the continuance of any such default upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any
Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying
Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were
held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with respect to such sums.
Except as otherwise provided in the Securities of any series, and subject to applicable laws,
any money deposited with the Trustee or any Paying Agent, or then held by the Company,
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in trust for
the payment of the principal of (and premium or Make-Whole Amount, if any) or interest on any
Security of any series and remaining unclaimed for two years after such principal (and premium or
Make-Whole Amount, if any) or interest has become due and payable shall be paid to the Company upon
Company Request or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment of such principal of (and premium or Make-Whole Amount, if any) or interest on
any Security, without interest thereon, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to be published once,
in an Authorized Newspaper, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Company.
SECTION 1004. Existence. Subject to Article Eight, the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect its corporate existence,
all material rights (by certificate of incorporation, by-laws and statute) and material franchises;
provided, however, that the Company shall not be required to preserve any such
right or franchise if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company.
SECTION 1005. Maintenance of Properties. The Company will cause all of its material
properties used or useful in the conduct of its business or the business of any Subsidiary to be
maintained and kept in good condition, repair and working order, normal wear and tear, casualty and
condemnation excepted, and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof (and the Company
may take out of service for a period of time, any of its properties that have been condemned or
suffered any loss due to casualty in order to make such repairs, betterments and improvements), all
as in the judgment of the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that the Company and its Subsidiaries shall not be prevented from (i) removing
permanently any property that has been condemned or suffered a loss due to casualty based on the
Companys reasonable judgment that such removal is in the best interest of the Company, or (ii)
selling or otherwise disposing of their properties for value in the ordinary course of business.
SECTION 1006. Insurance. The Company will cause each of its and its Subsidiaries
insurable properties to be insured against loss or damage in an amount deemed reasonable by the
Board of Directors with insurers of recognized responsibility.
SECTION 1007. Payment of Taxes and Other Claims. The Company will pay or discharge or
cause to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments
and governmental charges levied or imposed upon it or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary, and (2) all lawful claims
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for labor, materials and
supplies which, if unpaid, might by law become a lien upon the property of the Company or any
Subsidiary; provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate proceedings.
SECTION 1008. Statement as to Compliance. The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year, a brief certificate from the principal executive
officer, principal financial officer or principal accounting officer as to his or her knowledge of
the Companys compliance with all conditions and covenants under this Indenture and, in the event
of any noncompliance, specifying such noncompliance and the nature and status thereof. For
purposes of this Section 1008, such compliance shall be determined without regard to any period of
grace or requirement of notice under this Indenture.
SECTION 1009. Waiver of Certain Covenants. The Company may omit in any particular
instance to comply with any term, provision or condition set forth in Sections 1004 to 1008,
inclusive, if before or after the time for such compliance the Holders of at least a majority in
principal amount of all outstanding Securities of such series, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such covenant or condition, but
no such waiver shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations of the Company and
the duties of the Trustee in respect of any such term, provision or condition shall remain in full
force and effect.
ARTICLE ELEVEN REDEMPTION OF SECURITIES
SECTION 1101. Applicability of Article. Securities of any series which are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for Securities of any series) in accordance with
this Article.
SECTION 1102. Election to Redeem; Notice to Trustee. The election of the Company to redeem any Securities shall be evidenced by or pursuant to a
Board Resolution. In case of any redemption at the election of the Company of less than all of the
Securities of any series, the Company shall, at least 45 days prior to the giving of the notice of
redemption in Section 1104 (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of such Redemption Date and of the principal amount of Securities of such series to be
redeemed. In the case of any redemption of Securities prior to the expiration of any restriction
on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers Certificate evidencing compliance with such
restriction.
SECTION 1103. Selection by Trustee of Securities to Be Redeemed. If less than all the
Securities of any series issued on the same day with the same terms are to be redeemed, the
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particular Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series issued on such date
with the same terms not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate and which may provide for the selection for redemption of portions (equal to
the minimum authorized denomination for Securities of that series or any integral multiple thereof)
of the principal amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series.
The Trustee shall promptly notify the Company and the Security Registrar (if other than
itself) in writing of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Security redeemed or to
be redeemed only in part, to the portion of the principal amount of such Security which has been or
is to be redeemed.
SECTION 1104. Notice of Redemption. Notice of redemption shall be given in the manner
provided in Section 106, not less than 30 days nor more than 60 days prior to the Redemption Date,
unless a shorter period is specified by the terms of such series established pursuant to Section
301, to each Holder of Securities to be redeemed, but failure to give such notice in the manner
herein provided to the Holder of any Security designated for redemption as a whole or in part, or
any defect in the notice to any such Holder, shall not affect the validity of the proceedings for
the redemption of any other such Security or portion thereof.
Any notice that is mailed to the Holders of Registered Securities in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not the Holder receives
the notice.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price, accrued interest to the Redemption Date payable as
provided in Section 1106, if any,
(3) if less than all Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amount) of the
particular Security or Securities to be redeemed,
(4) in case any Security is to be redeemed in part only, the notice which relates
to such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the holder will receive, without a charge, a new Security or Securities of
authorized denominations for the principal amount thereof remaining unredeemed,
(5) that on the Redemption Date the Redemption Price and accrued interest to the
Redemption Date payable as provided in Section 1106, if any, will become due and
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payable
upon each such Security, or the portion thereof, to be redeemed and, if applicable, that
interest thereon shall cease to accrue on and after said date,
(6) the Place or Places of Payment where such Securities, together in the case of
Bearer Securities with all coupons appertaining thereto, if any, maturing after the
Redemption Date, are to be surrendered for payment of the Redemption Price and accrued
interest, if any, or for conversion,
(7) that the redemption is for a sinking fund, if such is the case,
(8) that, unless otherwise specified in such notice, Bearer Securities of any
series, if any, surrendered for redemption must be accompanied by all coupons maturing
subsequent to the date fixed for redemption or the amount of any such missing coupon or
coupons will be deducted from the Redemption Price, unless security or indemnity
satisfactory to the Company, the Trustee for such series and any Paying Agent is furnished,
(9) if Bearer Securities of any series are to be redeemed and any Registered
Securities of such series are not to be redeemed, and if such Bearer Securities may be
exchanged for Registered Securities not subject to redemption on this Redemption Date
pursuant to Section 305 or otherwise, the last date, as determined by the Company, on which
such exchanges may be made,
(10) the CUSIP number of such Security, if any, and
(11) if applicable, that a Holder of Securities who desires to convert Securities
for redemption must satisfy the requirements for conversion contained in such Securities,
the then existing conversion price or rate, the place or places where such Securities may be
surrendered for conversion, and the date and time when the option to convert shall expire.
Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Companys request, by the Trustee in the name and at the expense of
the Company.
SECTION 1105. Deposit of Redemption Price. On or prior to any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its
own Paying Agent, which it may not do in the case of a sinking fund payment under Article Twelve,
segregate and hold in trust as provided in Section 1003) an amount of money in the currency or
currencies, currency unit or units or composite currency or currencies in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 301 for the Securities
of such series) sufficient to pay on the Redemption Date the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities or
portions thereof which are to be redeemed on that date.
If any Securities called for redemption are converted, any money deposited with the Trustee or
with any Paying Agent or so segregated and held in trust for the redemption of such
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Security shall
be paid to the Company upon Company Request or, if then held by the Company, shall be discharged
from such trust.
SECTION 1106. Securities Payable on Redemption Date. Notice of redemption having been
given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified in the currency or currencies, currency unit or
units or composite currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series) (together
with accrued interest, if any, to the Redemption Date), and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued interest) such Securities
shall, if the same were interest-bearing, cease to bear interest and the coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent provided below, shall
be void. Upon surrender of any such Security for redemption in accordance with said notice,
together with all coupons, if any, appertaining thereto maturing after the Redemption Date, such
Security shall be paid by the Company at the Redemption Price, together with accrued interest, if
any, to the Redemption Date; provided, however, that installments of interest on
Bearer Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable only
at an office or agency located outside the United States (except as otherwise provided in Section
1002) and, unless otherwise specified as contemplated by Section 301, only upon presentation and
surrender of coupons for such interest; and provided further that except as
otherwise provided with respect to Securities convertible into the Companys Common Stock or
Preferred Stock, installments of interest on Registered Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 307.
If any Bearer Security surrendered for redemption shall not be accompanied by all appurtenant
coupons maturing after the Redemption Date, such Security may be paid after deducting from the
Redemption Price an amount equal to the face amount of all such missing coupons, or the surrender
of such missing coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to
save each of them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made from the Redemption Price, such Holder shall be entitled to receive
the amount so deducted; provided, however, that interest represented by coupons
shall be payable only at an office or agency located outside the United States (except as otherwise
provided in Section 1002) and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those coupons.
If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium or Make-Whole Amount, if any) shall, until paid, bear
interest from the Redemption Date at the rate borne by the Security.
SECTION 1107. Securities Redeemed in Part. Any Registered Security which is to be
redeemed only in part (pursuant to the provisions of this Article or of Article Twelve) shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due
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endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security
without service charge a new Security or Securities of the same series, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to and in exchange for
the unredeemed portion of the principal of the Security so surrendered. If a Global Security is so
surrendered, the Company shall execute and the Trustee shall authenticate and deliver to the
depository, without service charge, a new Global Security in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Global Security so surrendered.
ARTICLE TWELVE SINKING FUNDS
SECTION 1201. Applicability of Article. The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 301 for Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a mandatory sinking fund payment, and any payment in excess of
such minimum amount provided for by the terms of such Securities of any series is herein referred
to as an optional sinking fund payment. If provided for by the terms of any Securities of any
series, the cash amount of any mandatory sinking fund payment may be subject to reduction as
provided in Section 1202. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such series.
SECTION 1202. Satisfaction of Sinking Fund Payments with Securities. The Company may, in satisfaction of all or any part of any mandatory sinking fund payment with
respect to the Securities of a series, (1) deliver Outstanding Securities of such series (other
than any previously called for redemption) together in the case of any Bearer Securities of such
series with all unmatured coupons appertaining thereto and (2) apply as a credit Securities of such
series which have been redeemed either at the election of the Company pursuant to the terms of such
Securities or through the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, as provided for by the terms of such Securities, or which have otherwise
been acquired by the Company; provided that such Securities so delivered or applied as a
credit have not been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the applicable Redemption Price specified in such Securities for
redemption through operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.
SECTION 1203. Redemption of Securities for Sinking Fund. Not less than 60 days prior
to each sinking fund payment date for Securities of any series, the Company will deliver to the
Trustee an Officers Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that series pursuant to the terms of that series, the portion thereof, if any, which is
to be satisfied by payment of cash in the currency or currencies, currency unit or units or
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composite currency or currencies in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series) and the portion
thereof, if any, which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 1202, and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and will also deliver to the Trustee any Securities to be so
delivered and credited. If such Officers Certificate shall specify an optional amount to be added
in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be
obligated to pay the amount therein specified. Not less than 30 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment
date in the manner specified in Section 1103 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in Section 1104. Such
notice having been duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.
ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS
SECTION 1301. Applicability of Article. Repayment of Securities of any series before
their Stated Maturity at the option of Holders thereof shall be made in accordance with the terms
of such Securities, if any, and (except as otherwise specified by the terms of such series
established pursuant to Section 301) in accordance with this Article.
SECTION 1302. Repayment of Securities. Securities of any series subject to repayment in whole or in part at the option of the Holders
thereof will, unless otherwise provided in the terms of such Securities, be repaid at a price equal
to the principal amount thereof, together with interest, if any, thereon accrued to the Repayment
Date specified in or pursuant to the terms of such Securities. The Company covenants that on or
prior to the Repayment Date it will deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money in the currency or currencies, currency unit or units or composite currency or
currencies in which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) sufficient to pay the principal (or, if
so provided by the terms of the Securities of any series, a percentage of the principal) of, and
(except if the Repayment Date shall be an Interest Payment Date) accrued interest on, all the
Securities or portions thereof, as the case may be, to be repaid on such date.
SECTION 1303. Exercise of Option. Securities of any series subject to repayment at the
option of the Holders thereof will contain an Option to Elect Repayment form on the reverse of
such Securities. In order for any Security to be repaid at the option of the Holder, the Trustee
must receive at the Place of Payment therefor specified in the terms of such Security (or at such
other place or places of which the Company shall from time to time notify the Holders of such
Securities) not earlier than 60 days nor later than 30 days prior to the Repayment Date (1) the
Security so providing for such repayment together with the Option to Elect Repayment form on the
reverse thereof duly completed by the Holder (or by the Holders attorney duly authorized in
writing) or (2) a telegram, telex, facsimile transmission or a letter from a member of a national
securities exchange, or the FINRA, or a commercial bank or trust company in the
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United States
setting forth the name of the Holder of the Security, the principal amount of the Security, the
principal amount of the Security to be repaid, the CUSIP number, if any, or a description of the
tenor and terms of the Security, a statement that the option to elect repayment is being exercised
thereby and a guarantee that the Security to be repaid, together with the duly completed form
entitled Option to Elect Repayment on the reverse of the Security, will be received by the
Trustee not later than the fifth Business Day after the date of such telegram, telex, facsimile
transmission or letter; provided, however, that such telegram, telex, facsimile
transmission or letter shall only be effective if such Security and form duly completed are
received by the Trustee by such fifth Business Day. If less than the entire principal amount of
such Security is to be repaid in accordance with the terms of such Security, the principal amount
of such Security to be repaid, in increments of the minimum denomination for Securities of such
series, and the denomination or denominations of the Security or Securities to be issued to the
Holder for the portion of the principal amount of such Security surrendered that is not to be
repaid, must be specified. The principal amount of any Security providing for repayment at the
option of the Holder thereof may not be repaid in part if, following such repayment, the unpaid
principal amount of such Security would be less than the minimum authorized denomination of
Securities of the series of which such Security to be repaid is a part. Except as otherwise may be
provided by the terms of any Security providing for repayment at the option of the Holder thereof,
exercise of the repayment option by the Holder shall be irrevocable unless waived by the Company.
SECTION 1304. When Securities Presented for Repayment Become Due and Payable. If Securities of any series providing for repayment at the option of the Holders thereof shall
have been surrendered as provided in this Article and as provided by or pursuant to the terms of
such Securities, such Securities or the portions thereof, as the case may be, to be repaid shall
become due and payable and shall be paid by the Company on the Repayment Date therein specified,
and on and after such Repayment Date (unless the Company shall default in the payment of such
Securities on such Repayment Date) such Securities shall, if the same were interest-bearing, cease
to bear interest and the coupons for such interest appertaining to any Bearer Securities so to be
repaid, except to the extent provided below, shall be void. Upon surrender of any such Security
for repayment in accordance with such provisions, together with all coupons, if any, appertaining
thereto maturing after the Repayment Date, the principal amount of such Security so to be repaid
shall be paid by the Company, together with accrued interest, if any, to the Repayment Date;
provided, however, that coupons whose Stated Maturity is on or prior to the
Repayment Date shall be payable only at an office or agency located outside the United States
(except as otherwise provided in Section 1002) and, unless otherwise specified pursuant to Section
301, only upon presentation and surrender of such coupons; and provided further that, in the case
of Registered Securities, installments of interest, if any, whose Stated Maturity is on or prior to
the Repayment Date shall be payable (but without interest thereon, unless the Company shall default
in the payment thereof) to the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record Dates according to their terms
and the provisions of Section 307.
If any Bearer Security surrendered for repayment shall not be accompanied by all appurtenant
coupons maturing after the Repayment Date, such Security may be paid after deducting from the
amount payable therefor as provided in Section 1302 an amount equal to the
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face amount of all such
missing coupons, or the surrender of such missing coupon or coupons may be waived by the Company
and the Trustee if there be furnished to them such security or indemnity as they may require to
save each of them and any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to the Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided, however, that interest represented by
coupons shall be payable only at an office or agency located outside the United States (except as
otherwise provided in Section 1002) and, unless otherwise specified as contemplated by Section 301,
only upon presentation and surrender of those coupons.
If the principal amount of any Security surrendered for repayment shall not be so repaid upon
surrender thereof, such principal amount (together with interest, if any, thereon accrued to such
Repayment Date) shall, until paid, bear interest from the Repayment Date at the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) set forth in such Security.
SECTION 1305. Securities Repaid in Part. Upon surrender of any Registered Security
which is to be repaid in part only, the Company shall execute and the Trustee shall authenticate
and deliver to the Holder of such Security, without service charge and at the expense of the
Company, a new Registered Security or Securities of the same series, of any authorized denomination
specified by the Holder, in an
aggregate principal amount equal to and in exchange for the portion of the principal of such
Security so surrendered which is not to be repaid.
ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE
SECTION 1401. Applicability of Article; Companys Option to Effect Defeasance or Covenant
Defeasance. If, pursuant to Section 301, provision is made for either or both of (a)
Defeasance of the Securities of or within a series under Section 1402 or (b) Covenant Defeasance of
the Securities of or within a series under Section 1403, then the provisions of such Section or
Sections, as the case may be, together with the other provisions of this Article (with such
modifications thereto as may be specified pursuant to Section 301 with respect to any Securities),
shall be applicable to such Securities and any coupons appertaining thereto, and the Company may at
its option by Board Resolution, at any time, with respect to such Securities and any coupons
appertaining thereto, elect to have Section 1402 (if applicable) or Section 1403 (if applicable) be
applied to such Outstanding Securities and any coupons appertaining thereto upon compliance with
the conditions set forth below in this Article.
SECTION 1402. Defeasance and Discharge. Upon the Companys exercise of the above
option applicable to this Section with respect to any Securities of or within a series, the Company
shall be deemed to have been discharged from its obligations with respect to such Outstanding
Securities and any coupons appertaining thereto on the date the conditions set forth in Section
1404 are satisfied (hereinafter, Defeasance). For this purpose, such Defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness represented by such
Outstanding Securities and any coupons appertaining thereto, which shall
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thereafter be deemed to be
Outstanding only for the purposes of Section 1405 and the other Sections of this Indenture
referred to in clauses (A) and (B) below, and to have satisfied all of its other obligations under
such Securities and any coupons appertaining thereto and this Indenture insofar as such Securities
and any coupons appertaining thereto are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of such
Outstanding Securities and any coupons appertaining thereto to receive, solely from the trust fund
described in Section 1404 and as more fully set forth in such Section, payments in respect of the
principal of (and premium or Make-Whole Amount, if any) and interest, if any, on such Securities
and any coupons appertaining thereto when such payments are due, (B) the Companys obligations with
respect to such Securities under Sections 305, 306, 1002 and 1003, and the Companys obligations
under Section 606 hereof (C) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (D) this Article. Subject to compliance with this Article Fourteen, the Company may
exercise its option under this Section notwithstanding the prior exercise of its option under
Section 1403 with respect to such Securities and any coupons appertaining thereto.
SECTION 1403. Covenant Defeasance. Upon the Companys exercise of the above option applicable to this Section with respect to any
Securities of or within a series, the Company shall be released from its obligations under Sections
1004 to 1009, inclusive, and, if specified pursuant to Section 301, its obligations under any other
covenant contained herein or in any indenture supplemental hereto, with respect to such Outstanding
Securities and any coupons appertaining thereto on and after the date the conditions set forth in
Section 1404 are satisfied (hereinafter, Covenant Defeasance), and such Securities and any
coupons appertaining thereto shall thereafter be deemed to be not Outstanding for the purposes of
any direction, waiver, consent or declaration or Act of Holders (and the consequences of any
thereof) in connection with Sections 1004 to 1009, inclusive, or such other covenant, but shall
continue to be deemed Outstanding for all other purposes hereunder. For this purpose, such
Covenant Defeasance means that, with respect to such Outstanding Securities and any coupons
appertaining thereto, the Company may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such Section or such other covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such Section or such
other covenant or by reason of reference in any such Section or such other covenant to any other
provision herein or in any other document and such omission to comply shall not constitute a
default or an Event of Default under Section 501(4) or 501(8) or otherwise, as the case may be,
but, except as specified above, the remainder of this Indenture and such Securities and any coupons
appertaining thereto shall be unaffected thereby.
SECTION 1404. Conditions to Defeasance or Covenant Defeasance. The following shall be
the conditions to application of Section 1402 or Section 1403 to any Outstanding Securities of or
within a series and any coupons appertaining thereto:
(a) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 607 who shall agree to comply
with the provisions of this Article Fourteen applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for, and dedicated
solely to,
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the benefit of the Holders of such Securities and any coupons appertaining thereto, (1)
an amount in such currency, currencies or currency unit in which such Securities and any coupons
appertaining thereto are then specified as payable at Stated Maturity, or (2) Government
Obligations applicable to such Securities and coupons appertaining thereto (determined on the basis
of the currency, currencies or currency unit in which such Securities and coupons appertaining
thereto are then specified as payable at Stated Maturity) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not later
than the due date of any payment of principal of (and premium or Make-Whole Amount, if any) and
interest, if any, on such Securities and any coupons appertaining thereto, money in an amount, or
(3) a combination thereof, in any case, in an amount, sufficient, without consideration of any
reinvestment of such principal and interest, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, (i) the principal of (and premium or Make-Whole Amount, if any) and
interest, if any, on such Outstanding Securities and any coupons appertaining thereto on the Stated
Maturity of such principal or installment of principal or interest and (ii) any mandatory sinking
fund payments or analogous payments applicable to such
Outstanding Securities and any coupons appertaining thereto on the day on which such payments
are due and payable in accordance with the terms of this Indenture and of such Securities and any
coupons appertaining thereto.
(b) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under, this Indenture or any other material agreement or instrument to
which the Company is a party or by which it is bound.
(c) No Event of Default or event which with notice or lapse of time or both would become
an Event of Default with respect to such Securities and any coupons appertaining thereto shall have
occurred and be continuing on the date of such deposit or, insofar as Sections 501(6) and 501(7)
are concerned, at any time during the period ending on the 91st day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until the expiration of such
period).
(d) In the case of an election under Section 1402, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in either case to the
effect that, and based thereon such opinion shall confirm that, the Holders of such Outstanding
Securities and any coupons appertaining thereto will not recognize income, gain or loss for Federal
income tax purposes as a result of such Defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such
Defeasance had not occurred.
(e) In the case of an election under Section 1403, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the Holders of such Outstanding Securities and any
coupons appertaining thereto will not recognize income, gain or loss for Federal income tax
purposes as a result of such Covenant Defeasance and will be subject to Federal income tax
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on the
same amounts, in the same manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred.
(f) The Company shall have delivered to the Trustee an Officers Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the Defeasance under Section 1402
or the Covenant Defeasance under Section 1403 (as the case may be) have been complied with and an
Opinion of Counsel to the effect that either (i) as a result of a deposit pursuant to subsection
(a) above and the related exercise of the Companys option under Section 1402 or Section 1403 (as
the case may be), registration is not required under the Investment Company Act of 1940, as
amended, by the Company, with respect to the trust funds representing such deposit or by the
Trustee for such trust funds or (ii) all necessary registrations under said Act have been effected.
(g) Notwithstanding any other provisions of this Section, such Defeasance or Covenant
Defeasance shall be effected in compliance with any additional or substitute terms, conditions or
limitations which may be imposed on the Company in connection therewith pursuant to Section 301.
(h) The payment of amounts payable to the Trustee pursuant to this Indenture shall be paid
or provided for to the reasonable satisfaction of the Trustee.
SECTION 1405. Deposited Money and Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions. Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations (or other property as may be provided pursuant to Section 301)
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1405, the Trustee) pursuant to Section 1404 in respect
of any Outstanding Securities of any series and any coupons appertaining thereto shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Securities and any
coupons appertaining thereto and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Holders of such Securities and any coupons appertaining thereto of all sums due and to
become due thereon in respect of principal (and premium or Make-Whole Amount, if any) and interest,
but such money need not be segregated from other funds except to the extent required by law.
Unless otherwise specified with respect to any Security pursuant to Section 301, if, after a
deposit referred to in Section 1404(a) has been made, (a) the Holder of a Security in respect of
which such deposit was made is entitled to, and does, elect pursuant to Section 301 or the terms of
such Security to receive payment in a currency or currency unit other than that in which the
deposit pursuant to Section 1404(a) has been made in respect of such Security, or (b) a Conversion
Event occurs in respect of the currency or currency unit in which
the deposit pursuant to Section
1404(a) has been made, the indebtedness represented by such Security and any coupons appertaining
thereto shall be deemed to have been, and will be, fully discharged and satisfied through the
payment of the principal of (and premium or Make-Whole Amount, if any), and interest, if any, on
such Security as the same becomes due out of the proceeds yielded by converting (from time to time
as specified below in the case of any such election) the amount or other property deposited in
respect of such Security into the currency or currency unit in which
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such Security becomes payable
as a result of such election or Conversion Event based on the applicable market exchange rate for
such currency or currency unit in effect on the second Business Day prior to each payment date,
except, with respect to a Conversion Event, for such currency or currency unit in effect (as nearly
as feasible) at the time of the Conversion Event.
The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section 1404 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of such Outstanding Securities and any coupons
appertaining thereto.
Anything in this Article to the contrary notwithstanding, subject to Section 606, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any money or Government
Obligations (or other property and any proceeds therefrom) held by it as provided in Section 1404
which, in the opinion of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to effect a
Defeasance or Covenant Defeasance, as applicable, in accordance with this Article.
ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES
SECTION 1501. Purposes for Which Meetings May Be Called. A meeting of Holders of
Securities of any series may be called at any time and from time to time pursuant to this Article
to make, give or take any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be made, given or taken by Holders of Securities of such
series.
SECTION 1502. Call, Notice and Place of Meetings.
(a) The Trustee may at any time call a meeting of Holders of Securities of any series for
any purpose specified in Section 1501, to be held at such time and at such place as the Trustee
shall determine. Notice of every meeting of Holders of Securities of any series, setting forth the
time and the place of such meeting and in general terms the action proposed to be taken at such
meeting, shall be given, in the manner provided in Section 106, not less than 20 nor more than 180
days prior to the date fixed for the meeting.
(b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of at
least 25% in principal amount of the Outstanding Securities of any series shall have requested the
Trustee to call a meeting of the Holders of Securities of such series for any purpose specified in
Section 1501, by written request setting forth in reasonable detail the action proposed to be taken
at the meeting, and the Trustee shall not have made the first publication of the notice of such
meeting within 20 days after receipt of such request or shall not thereafter proceed to cause the
meeting to be held as provided herein, then the Company or the Holders of Securities of such series
in the amount above specified, as the case may be, may determine the time and the place for such
meeting and may call such meeting for such purposes by giving notice thereof as provided in
subsection (a) of this Section.
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SECTION 1503. Persons Entitled to Vote at Meetings. To be entitled to vote at any
meeting of Holders of Securities of any series, a Person shall be (1) a Holder of one or more
Outstanding Securities of such series, or (2) a Person appointed by an instrument in writing as
proxy for a Holder or Holders of one or more Outstanding Securities of such series by such Holder
or Holders. The only Persons who shall be entitled to be present or to speak at any meeting of
Holders of Securities of any series shall be the Persons entitled to vote at such meeting and their
counsel, any representatives of the Trustee and its counsel and any representatives of the Company
and its counsel.
SECTION 1504. Quorum; Action. The Persons entitled to vote a majority in principal amount of the Outstanding Securities of a
series shall constitute a quorum for a meeting of Holders of Securities of such series;
provided, however, that if any action is to be taken at such meeting with respect
to a consent or waiver which this Indenture expressly provides may be given by the Holders of not
less than a specified percentage in principal amount of the Outstanding Securities of a series, the
Persons entitled to vote such specified percentage in principal amount of the Outstanding
Securities of such series shall constitute a quorum. In the absence of a quorum within 30 minutes
after the time appointed for any such meeting, the meeting shall, if convened at the request of
Holders of Securities of such series, be dissolved. In any other case the meeting may be adjourned
for a period of not less than 10 days as determined by the chairman of the meeting prior to the
adjournment of such meeting. In the absence of a quorum at the reconvening of any such adjourned
meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days; at
the reconvening of any meeting adjourned or further adjourned for lack of a quorum, the Persons
entitled to vote 25% in aggregate principal amount of the then Outstanding Securities shall
constitute a quorum for the taking of any action set forth in the notice of the original meeting.
Notice of the reconvening of any adjourned meeting shall be given as provided in Section 1502(a),
except that such notice need be given only once not less than five days prior to the date on which
the meeting is scheduled to be reconvened.
Except as limited by the proviso to Section 902, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted by the
affirmative vote of the Persons entitled to vote a majority in aggregate principal amount of the
Outstanding Securities represented at such meeting; provided, however, that, except
as limited by the proviso to Section 902, any resolution with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action which this Indenture expressly
provides may be made, given or taken by the Holders of a specified percentage, which is less than a
majority, in principal amount of the Outstanding Securities of a series may be adopted at a meeting
or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid by the
affirmative vote of the Holders of such specified percentage in principal amount of the Outstanding
Securities of that series.
Any resolution passed or decision taken at any meeting of Holders of Securities of any series
duly held in accordance with this Section shall be binding on all the Holders of Securities of such
series and the related coupons, whether or not present or represented at the meeting.
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Notwithstanding the foregoing provisions of this Section 1504, if any action is to be taken at
a meeting of Holders of Securities of any series with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action that this Indenture expressly
provides may be made, given or taken by the Holders of a specified percentage in principal amount
of all Outstanding Securities affected thereby, or of the Holders of such series and one or more
additional series:
(i) there shall be no minimum quorum requirement for such meeting; and
(ii) the principal amount of the Outstanding Securities of such series that
vote in favor of such request, demand, authorization, direction, notice,
consent, waiver or other action shall be taken into account in determining
whether such request, demand, authorization, direction, notice, consent, waiver or
other action has been made, given or taken under this Indenture.
SECTION 1505. Determination of Voting Rights; Conduct and Adjournment of Meetings.
(a) Notwithstanding any provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities of a series in regard
to proof of the holding of Securities of such series and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required
by any such regulations, the holding of Securities shall be proved in the manner specified in
Section 104 and the appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the Person executing the proxy witnessed or guaranteed by any trust
company, bank or banker authorized by Section 104 to certify to the holding of Bearer Securities.
Such regulations may provide that written instruments appointing proxies, regular on their face,
may be presumed valid and genuine without the proof specified in Section 104 or other proof.
(b) The Trustee shall, by an instrument in writing appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders of Securities as
provided in Section 1502(b), in which case the Company or the Holders of Securities of the series
calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of such series
represented at the meeting.
(c) At any meeting each Holder of a Security of such series or proxy shall be entitled to
one vote for each $1,000 principal amount of the Outstanding Securities of such series held or
represented by him; provided, however, that no vote shall be cast or counted at any
meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the
meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as
a Holder of a Security of such series or proxy.
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(d) Any meeting of Holders of Securities of any series duly called pursuant to Section
1502 at which a quorum is present may be adjourned from time to time by Persons entitled to vote a
majority in principal amount of the Outstanding Securities of such series represented at the
meeting, and the meeting may be held as so adjourned without further notice.
SECTION 1506. Counting Votes and Recording Action of Meetings. The vote upon any
resolution submitted to any meeting of Holders of Securities of any series shall be by written
ballots on which shall be subscribed the signatures of the Holders of Securities of such series or
of their representatives by proxy and the principal amounts and serial
numbers of the Outstanding Securities of such series held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the secretary of the meeting
their verified written reports in duplicate of all votes cast at the meeting. A record, at least
in duplicate, of the proceedings of each meeting of Holders of Securities of any Series shall be
prepared by the secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more persons having knowledge of the fact, setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1502 and, if applicable, Section 1504.
Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one such copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the matters therein stated.
ARTICLE SIXTEEN CONVERSION OF SECURITIES
SECTION 1601. Applicability of Article; Conversion Privilege and Conversion Price.
Securities of any series which are convertible shall be convertible in accordance with their terms
and (except as otherwise specified as contemplated by Section 301 for Securities of any series) in
accordance with this Article Sixteen. Subject to and upon compliance with the provisions of this
Article Sixteen, at any time during the period specified in the Securities, at the option of the
Holder thereof, any Security or any portion of the principal amount thereof which is $1,000 or an
integral multiple of $1,000 may be converted at the principal amount thereof, or of such portion
thereof, into fully paid and nonassessable shares (calculated as to each conversion to the nearest
1/100 of a share) of Common Stock of the Company, at the Conversion Price, determined as
hereinafter provided, in effect at the time of conversion. In case a Security or portion thereof
is called for redemption, such conversion right in respect of the Security or portion so called
shall expire at the close of business on the Business Day immediately preceding the Redemption
Date, unless the Company defaults in making the payment due upon redemption, in which case such
conversion right shall terminate on the date such default is cured.
The price at which shares of Common Stock shall be delivered upon conversion (herein called
the Conversion Price) of Securities of any series shall be specified in such Securities. The
Conversion Price shall be adjusted in certain instances as provided in Section 1604.
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In case the Company shall, by dividend or otherwise, declare or make a distribution on its
Common Stock referred to in paragraph (4) of Section 1604, the Holder of each Security, upon the
conversion thereof pursuant to this Article Sixteen subsequent to the close of business on the date
fixed for the determination of stockholders entitled to receive such distribution and prior to the
effectiveness of the Conversion Price adjustment in respect of such distribution pursuant to
paragraph (4) of Section 1604, shall be entitled to receive for each share of Common Stock into
which such Security is converted, the portion of the evidence of indebtedness, shares of Capital
Stock or assets so distributed applicable to one share of Common Stock; provided,
however, that, at the election of the Company (whose election shall be evidenced by a Board
Resolution filed
with the Trustee) with respect to all Holders so converting, the Company may, in lieu of
distributing to such Holder any portion of such distribution not consisting of cash or securities
of the Company, pay such Holder an amount in cash equal to the fair market value thereof (as
determined in good faith by the Board of Directors, whose determination shall be conclusive and
described in a Board Resolution filed with the Trustee). If any conversion of a Security entitled
to the benefits described in the immediately preceding sentence occurs prior to the payment date
for a distribution to holders of Common Stock which the Holder of the Security so converted is
entitled to receive in accordance with the immediately preceding sentence, the Company may elect
(such election to be evidenced by a Board Resolution filed with the Trustee) to distribute to such
Holder a due bill for the evidences of indebtedness, shares of Capital Stock or assets to which
such Holder is so entitled, provided that such due bill (i) meets any applicable requirements of
the principal over-the-counter market or national securities exchange or other market on which the
Common Stock is then traded, and (ii) requires payment or delivery of such evidences of
indebtedness or assets no later than the date of payment or delivery thereof to holders of Common
Stock receiving such distribution.
SECTION 1602. Exercise of Conversion Privilege. In order to exercise the conversion
privilege, the Holder of any Security to be converted shall surrender such Security, duly endorsed
or assigned to the Company or in blank, at any office or agency maintained by the Company pursuant
to Section 1002, accompanied by written notice to the Company at such office or agency that the
Holder elects to convert such Security or, if less than the entire principal amount thereof is to
be converted, the portion thereof to be converted and shall comply with any additional requirements
set forth in such Security. Securities surrendered for conversion during the period from the close
of business on any Regular Record Date next preceding any Interest Payment Date to the opening of
business on such Interest Payment Date shall (except for Securities the Maturity of which is prior
to such Interest Payment Date) be accompanied by payment in funds acceptable to the Company of an
amount equal to the interest payable on such Interest Payment Date on the principal amount of
Securities being surrendered for conversion and such interest shall be paid on such Interest
Payment Date as provided in Section 307. Except as provided in the preceding sentence, no payment
or adjustment shall be made upon any conversion on account of any interest accrued on the
Securities surrendered for conversion or on account of any dividends on the Common Stock issued
upon conversion.
The Companys delivery to the Holder of the fixed number of shares of the Common Stock of the
Company (and any cash in lieu of any fractional share of Common Stock) into which the Security is
convertible shall be deemed to satisfy the Companys obligation to pay the principal amount of the
Security and all accrued interest and original issue discount that has not
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previously been paid.
The shares of Common Stock of the Company so delivered shall be treated as issued first in payment
of accrued interest and original issue discount and then in payment of principal. Thus, accrued
interest and original issue discount shall be treated as paid, rather than canceled, extinguished
or forfeited.
Securities shall be deemed to have been converted immediately prior to the close of business
on the day of surrender of such Securities for conversion in accordance with the foregoing
provisions, and at such time the rights of the Holders of such Securities as Holders
shall cease, and the Person or Persons entitled to receive the Common Stock issuable upon
conversion shall be treated for all purposes as the record holder or holders of such Common Stock
at such time. As promptly as practicable on or after the conversion date, the Company shall issue
and shall deliver at such office or agency a certificate or certificates for the number of full
shares of Common Stock issuable upon conversion, together with payment in lieu of any fraction of a
share, as provided in Section 1603.
In the case of any Security which is converted in part only, as promptly as practicable on or
after the conversion date the Company shall execute and the Trustee shall authenticate and make
available for delivery to the Holder thereof (or the Depositary in the case of a Global Security),
at the expense of the Company, a new Security or Securities, of authorized denominations in
aggregate principal amount equal to the unconverted portion of the principal amount of such
Security.
SECTION 1603. Fractions of Shares. No fractional shares of Common Stock shall be
issued upon conversion of Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares of Common Stock which shall be
issuable upon conversion thereof shall be computed on the basis of the aggregate principal amount
of the Securities (or specified portions thereof) so surrendered. Instead of any fractional share
of Common Stock which would otherwise be issuable upon conversion of any Security or Securities (or
specified portions thereof), the Company shall pay a cash adjustment (rounded to the nearest cent)
in respect of such fraction in an amount equal to the same fraction of the Closing Price per share
of the Common Stock on the day of conversion (or, if such day is not a Trading Day, on the Trading
Day immediately preceding such day).
SECTION 1604. Adjustment of Conversion Price. The Conversion Price shall be subject to
adjustment from time to time as follows:
(1) If the Company pays or makes a dividend or other distribution (a) on its Common
Stock exclusively in Common Stock or (b) on any other class of Capital Stock of the Company,
which dividend or distribution includes Common Stock of the Company, the Conversion Price in
effect at the opening of business on the day following the date fixed for the determination
of stockholders entitled to receive such dividend or other distribution (the Dividend
Record Date) shall be reduced by multiplying such Conversion Price by a fraction of which
the numerator shall be the number of shares of Common Stock of the Company outstanding at
the close of business on the Dividend Record Date and the denominator shall be the sum of
such number of shares and the total number of shares constituting such dividend or other
distribution. Such reduction shall
80
become effective immediately after the opening of
business on the day following the date fixed for such determination. For the purposes of
this paragraph (1), the number of shares of Common Stock of the Company at any time
outstanding shall not include shares held in the treasury of the Company, but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of shares of
Common Stock. The Company shall
not pay any dividend or make any distribution on shares of Common Stock held in the
treasury of the Company.
(2) Subject to paragraph (6) of this Section, if the Company pays or makes a
dividend or other distribution on its Common Stock consisting exclusively of Short Term
Rights (as defined below), or otherwise issues Short Term Rights to all holders of its
Common Stock, the Conversion Price in effect at the opening of business on the day following
the record date for the determination of holders of Common Stock entitled to receive such
Short Term Rights (the Rights Record Date) shall be reduced by multiplying such Conversion
Price by a fraction of which the numerator shall be the number of shares of Common Stock of
the Company outstanding at the close of business on the Rights Record Date plus the number
of shares of Common Stock of the Company which the aggregate of the offering price of the
total number of shares of Common Stock so offered for subscription or purchase would
purchase at such current market price and the denominator shall be the number of shares of
Common Stock of the Company outstanding at the close of business on the Rights Record Date
plus the number of shares of Common Stock so offered for subscription or purchase. Such
reduction shall become effective immediately after the opening of business on the day
following the Rights Record Date. For the purposes of this paragraph (2), the number of
shares of Common Stock of the Company at any time outstanding shall not include shares held
in the treasury of the Company, but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock of the Company. The
Company shall not issue any rights, options or warrants in respect of shares of its Common
Stock held in the treasury of the Company. When used in this Section 1604, the term Short
Term Rights shall mean rights, warrants or options entitling the holders thereof (for a
period commencing no earlier than the Rights Record Date and expiring not more than 45 days
after the Rights Record Date) to subscribe for or purchase shares of Common Stock of the
Company at a price per share less than the current market price per share (determined as
provided in paragraph (7) of this Section 1604) of the Common Stock of the Company on the
Rights Record Date.
(3) In case outstanding shares of Common Stock of the Company shall be subdivided
into a greater number of shares of Common Stock, the Conversion Price in effect at the
opening of business on the day following the day upon which such subdivision becomes
effective shall be proportionately reduced, and, conversely, in case outstanding shares of
Common Stock of the Company shall be combined into a smaller number of shares of Common
Stock, the Conversion Price in effect at the opening of business on the day following the
day upon which such combination becomes effective shall be proportionately increased, such
reduction or increase, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or combination becomes
effective.
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(4) Subject to the last sentence of this paragraph (4) of this Section, if the
Company, by dividend or otherwise, (a) distributes to all holders of its Common Stock
evidences of its indebtedness, shares of any class of Capital Stock of the Company or other
assets (other than cash dividends out of current or retained earnings), or (b) distributes
to substantially all holders of Common Stock rights or warrants to subscribe
for securities (other than Short Term Rights to which paragraph (2) of this Section
1604 applies), the Conversion Price shall be reduced by multiplying such Conversion Price by
a fraction of which the numerator shall be the current market price per share (determined as
provided in paragraph (7) of this Section 1604) of the Common Stock of the Company on the
Reference Date (as defined below) less the fair market value (as determined in good faith by
the Board of Directors, whose determination shall be conclusive and described in a Board
Resolution filed with the Trustee), on the Reference Date, of the portion of the evidences
of indebtedness and other assets so distributed or of such subscription rights or warrants
applicable to one share of Common Stock (collectively, the Market Value of the
Distribution) and the denominator shall be such current market price per share of the
Common Stock of the Company. Such reduction shall become effective immediately prior to the
opening of business on the day (the Reference Date) following the later of (a) the date
fixed for the payment of such distribution and (b) the date 20 days after notice relating to
such distribution is required to be given pursuant to Section 1606(a). If the Board of
Directors determines the fair market value of any distribution for purposes of this
paragraph (4) by reference to the actual or when issued trading market for any securities
comprising such distribution, it must in doing so consider the prices in such market over
the same period used in computing the current market price per share pursuant to paragraph
(7) of this Section 1604. In the event that, with respect to any distribution to which this
paragraph (4) of Section 1604 would otherwise apply, the Market Value of the Distribution is
greater than the current market price per share of the Common Stock (such distribution being
referred to herein as an Unadjusted Distribution), then the adjustment provided by this
paragraph (4) shall not be made and in lieu thereof the provisions of Section 1611 shall
apply with respect to such Unadjusted Distribution.
(5) The Company may, but shall not be required to, make such reductions in the
Conversion Price, in addition to those required by paragraphs (1), (2), (3), and (4) of
this Section 1604, as it considers to be advisable in order that any event treated for
federal income tax purposes as a dividend of stock or stock rights shall not be taxable to
the recipients. In addition, the Company, from time to time, may decrease the Conversion
Price by any amount and for any reason, temporarily or otherwise, including situations where
the Board of Directors determines such decrease to be fair and appropriate with respect to
transactions in which holders of Common Stock have the right to participate.
(6) Rights or warrants issued or distributed by the Company to all holders of its
Common Stock entitling the holders thereof to subscribe for or purchase shares of Common
Stock or Preferred Stock, which rights or warrants (i) are deemed to be transferred with
such shares of Common Stock, (ii) are not exercisable and (iii) are also issued or
distributed in respect of future issuances of Common Stock, in each case in clauses (i)
through (iii) until the occurrence of a specified event or events (Trigger
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Events), shall
for purposes of this Section 1604 not be deemed issued or distributed until the occurrence
of the earliest Trigger Event. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article Sixteen shall be entitled to receive the appropriate
number of Common Stock purchase rights (the Rights), if any, and the certificates
representing the Common Stock issued upon conversion shall bear such legends, if any.
Notwithstanding anything to the contrary in this Article Sixteen, there
shall not be any adjustment to the Conversion Price as a result of (i) the distribution
of separate certificates representing the Rights; (ii) the occurrence of certain events
entitling holders of Rights to receive, upon exercise thereof, Common Stock or other
securities of the Company or other securities of another corporation; or (iii) the exercise
of such Rights. No adjustment in the Conversion Price need be made for rights to purchase
or the sale of Common Stock pursuant to a Company plan providing for reinvestment of
dividends or interest.
(7) For the purpose of any computation under paragraph (2), (4) or (5) of this
Section 1604, the current market price per share of Common Stock of the Company on any
date shall be deemed to be the average of the daily Closing Prices for the 15 consecutive
Trading Days selected by the Company commencing not more than 30 Trading Days before, and
ending not later than, the date in question.
(8) No adjustment in the Conversion Price shall be required unless such adjustment
would require an increase or decrease of at least 1% in the Conversion Price;
provided, however, that any adjustments which by reason of this paragraph
(8) are not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Article Sixteen shall be made to the
nearest cent or to the nearest one-hundredth of a share of Common Stock, as the case may be.
(9) Anything herein to the contrary notwithstanding, in the event the Company shall
declare any dividend or distribution requiring an adjustment in the Conversion Price
hereunder and shall, thereafter and before the payment of such dividend or distribution to
stockholders, legally abandon its plan to pay such dividend or distribution, the Conversion
Price then in effect hereunder, if changed to reflect such dividend or distribution, shall
upon the legal abandonment of such plan be changed to the Conversion Price which would have
been in effect at the time of such abandonment (after giving effect to all other adjustments
not so legally abandoned pursuant to the provisions of this Article Sixteen) had such
dividend or distribution never been declared.
(10) Notwithstanding any other provision of this Section 1604, no adjustment to the
Conversion Price shall reduce the Conversion Price below the then par value per share of the
Common Stock of the Company, and any such purported adjustment shall instead reduce the
Conversion Price to such par value. Notwithstanding the foregoing sentence, the Company
hereby covenants that it will from time to time take all such action as may be required to
assure that the par value per share of the Common Stock is at all times equal to or less
than the Conversion Price.
(11) In the event that this Article Sixteen requires adjustments to the Conversion
Price under more than one of paragraphs (1), (2), (3) or (4) of this Section
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1604, and the
record or effective dates for the transaction giving rise to such adjustments shall occur on
the same date, then such adjustments shall be made by applying (to the extent they are
applicable), first, the provisions of paragraph (3) of this Section 1604, second, the
provisions of paragraph (1) of this Section 1604, third, the provisions of paragraph (4) of
this Section 1604 and, fourth, the provisions of paragraph (2) of this Section 1604.
Anything herein to the contrary notwithstanding, no single event shall
require or result in duplicative adjustments in the Conversion Price pursuant to this
Section 1604. After an adjustment to the Conversion Price under this Article Sixteen, any
subsequent event requiring an adjustment under this Article Sixteen shall cause an
adjustment to the Conversion Price as so adjusted. If, after an adjustment, a Holder of a
Security upon conversion of such Security receives shares of two or more classes of Capital
Stock of the Company, the Conversion Price shall thereafter be subject to adjustment upon
the occurrence of an action taken with respect to any such class of Capital Stock as is
contemplated by this Article Sixteen with respect to the Common Stock in this Article
Sixteen.
SECTION 1605. Notice of Adjustments of Conversion Price. Whenever the Conversion Price
is adjusted as herein provided:
(1) the Company shall compute the adjusted Conversion Price in accordance with
Section 1604 or Section 1611 and shall prepare an Officers Certificate setting forth the
adjusted Conversion Price and showing in reasonable detail the facts upon which such
adjustment is based, and such certificate shall forthwith be filed (with a copy to the
Trustee) at each office or agency maintained for the purpose of conversion of any Securities
pursuant to Section 1002; and
(2) a notice stating that the Conversion Price has been adjusted and setting forth
the adjusted Conversion Price shall forthwith be required, and as soon as practicable after
it is required, such notice shall be mailed by the Company to all Holders at their last
addresses as they shall appear in the Security Register.
SECTION 1606. Notice of Certain Corporate Action. In case:
(1) the Company shall take any action that would require a Conversion Price
adjustment pursuant to Section 1604 or Section 1611; or
(2) there shall occur any reclassification of the Common Stock of the Company
(other than a subdivision or combination of its outstanding shares of Common Stock), or any
consolidation or merger to which the Company is a party, or the sale, transfer or lease of
all or substantially all of the assets of the Company and for which approval of any
stockholders of the Company is required; or
(3) there shall occur the voluntary or involuntary dissolution, liquidation or
winding up of the Company, then the Company shall cause to be filed at each office or agency
maintained for the purpose of conversion of Securities pursuant to Section 1002, and shall
cause to be mailed to all Holders at their last addresses as they shall appear in
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the
Security Register, at least 10 days prior to the applicable record, effective or expiration
date hereinafter specified, a notice stating (x) the date on which a record is to be taken
for the purpose of any dividend, distribution or granting of rights, warrants or options,
or, if a record is not to be taken, the date as of which the holders of Common Stock of
record to be entitled to such dividend, distribution, rights, options or warrants
are to be determined, or (y) the date on which such reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding up is expected to become
effective, and, if applicable, the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their shares of Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up.
SECTION 1607. Company to Reserve Common Stock. The Company shall at all times reserve
and keep available, free from preemptive rights, out of its authorized but unissued Common Stock,
for the purpose of effecting the conversion of Securities, a number of shares of Common Stock for
the conversion of all outstanding Securities of any series which is convertible into Common Stock.
SECTION 1608. Taxes on Conversion. The Company will pay any and all taxes that
may be payable in respect of the issue or delivery of shares of Common Stock on conversion of
Securities pursuant hereto. The Company shall not, however, be required to pay any tax which may
be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock
in a name other than that of the Holder of the Security or Securities to be converted, and no such
issue or delivery shall be made unless and until the Person requesting such issue has paid to the
Company the amount of any such tax, or has established to the satisfaction of the Company that such
tax has been paid.
SECTION 1609. Covenants as to Common Stock. The Company covenants that all shares of Common
Stock which may be issued upon conversion of Securities will upon issue be duly and validly issued,
fully paid and nonassessable, free of preemptive or any similar rights, and, except as provided in
Section 1608, the Company will pay all taxes, liens and charges with respect to the issue thereof.
The Company will endeavor promptly to comply with all Federal and state securities laws
regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if any,
and will list or cause to have quoted such shares of Common Stock on each national securities
exchange or in the over-the-counter market or such other market on which the Common Stock is then
listed or quoted.
SECTION 1610. Cancellation of Converted Securities. All Securities delivered for
conversion shall be delivered to the Trustee to be cancelled by or at the direction of the Trustee,
which shall dispose of the same as provided in Section 309.
SECTION 1611. Provisions in Case of Consolidation, Merger or Sale of Assets; Special
Distributions. If any of the following shall occur, namely: (i) any reclassification or
85
change of outstanding shares of Common Stock issuable upon conversion of Securities (other than a
change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a
subdivision or combination), (ii) any consolidation or merger to which the Company is a party other
than a merger in which the Company is the continuing corporation and which does not result in any
reclassification of, or change (other than a change in name, or par value, or from par value to no
par value, or from no par value to par value or as a result of a subdivision or combination) in,
outstanding shares of Common Stock or (iii) any sale or conveyance of all or substantially all of
the property or business of the Company as an entirety, then the Person formed by such
consolidation or resulting from such merger or which acquires such properties or assets, as the
case may be, shall as a condition precedent to such transaction execute and deliver to the Trustee
a supplemental indenture providing that the Holder of each Security then outstanding shall have the
right thereafter, during the period such Security shall be convertible as specified in Section
1601, to convert such Security only into the kind and amount of securities, cash and other property
receivable, if any, upon such consolidation, merger, sale, transfer or lease by a holder of the
number of shares of Common Stock of the Company into which such Security might have been converted
immediately prior to such consolidation, merger, sale, transfer or lease; provided that the kind
and amount of securities, cash and other property so receivable shall be determined on the basis of
the following assumptions. The holder of Common Stock referred to in the foregoing sentence:
(1) is not (a) a Person with which the Company consolidated, (b) a Person into
which the Company merged or which merged into the Company, or (c) a Person to which such
sale, transfer or lease was made (any Person described in the foregoing clauses (a), (b),
or (c), hereinafter referred to as a Constituent Person), or (d) an Affiliate of a
Constituent Person; and
(2) failed to exercise his rights of election, if any, as to the kind or amount of
securities, cash and other property receivable upon such consolidation, merger, sale,
transfer or lease (provided that if the kind or amount of securities, cash and other
property receivable upon such consolidation, merger, sale transfer or lease is not the same
for each share of Common Stock of the Company in respect of which such rights of election
shall not have been exercised, then for the purpose of this Section 1611 the kind and amount
of securities, cash and other property receivable upon such consolidation, merger, sale,
transfer or lease shall be deemed to be the kind and amount so receivable per share by a
plurality of such shares of Common Stock).
Such supplemental indenture shall provide for adjustments which, for events subsequent to the
effective date of such supplemental indenture, shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article Sixteen. If, in the case of any such
consolidation, merger, sale transfer or lease the stock or other securities and property (including
cash) receivable thereupon by a holder of Common Stock includes shares of stock or other securities
and property of a corporation other than the successor or purchasing corporation, as the case may
be, in such consolidation, merger, sale, transfer or lease then such supplemental indenture shall
also be executed by such other corporation and shall contain such additional provisions to protect
the interests of the Holders of the Securities as the Board of Directors of the Company shall
reasonably consider necessary by reason of the foregoing. The above provisions
86
of this Section
1611 shall similarly apply to successive consolidations, mergers, sales, transfers or leases.
In the event the Company shall execute a supplemental indenture pursuant to this Section 1611,
the Company shall promptly file with the Trustee an Officers Certificate briefly stating the
reasons therefor, the kind or amount of shares of stock or securities or property (including cash)
receivable by Holders of the Securities upon the conversion of their Securities after any such
reclassification, change, consolidation, merger, sale, transfer or lease and any adjustment to be
made with respect thereto.
If the Company makes a distribution to all holders of its Common Stock that constitutes an
Unadjusted Distribution pursuant to the last sentence of paragraph (4) of Section 1604, then, from
and after the record date for determining the holders of Common Stock entitled to receive such
distribution (the Distribution Record Date), a Holder of a Security who converts such Security in
accordance with the provisions of this Indenture shall, upon conversion, be entitled to receive, in
addition to the shares of Common Stock into which the Security is convertible, the kind and amount
of evidences of indebtedness, shares of Capital Stock, or other assets or subscription rights or
warrants, as the case may be, comprising the distribution that such Holder would have received if
such Holder had converted the Security immediately prior to the Distribution Record Date.
SECTION 1612. Trustee Adjustment Disclaimer; Company Determination Final. The Trustee
has no duty to determine when an adjustment under this Article Sixteen should be made, how it
should be made or what it should be. The Trustee has no duty to determine whether a supplemental
indenture under Section 1611 need be entered into or whether any provisions of any supplemental
indenture are correct. The Trustee shall not be accountable for and makes no representation as to
the validity or value of any securities or assets issued upon conversion of Securities. The
Trustee shall not be responsible for the Companys failure to comply with this Article Sixteen.
Any determination that the Company or the Board of Directors must make pursuant to this Article
Sixteen is conclusive, absent manifest error.
SECTION 1613. When No Adjustment Required. Except as expressly set forth in Section
1604, no adjustment in the Conversion Price shall be made because the Company issues, in exchange
for cash, property or services, shares of its Common Stock, or any securities convertible into or
exchangeable for shares of its Common Stock, or securities (including warrants, rights and options)
carrying the right to subscribe for or purchase shares of its Common Stock or such convertible or
exchangeable securities.
(1) Notwithstanding anything herein to the contrary, no adjustment in the
Conversion Price shall be made pursuant to Section 1604 in respect of any dividend or
distribution if the Holders may participate therein (on a basis to be determined in good
faith by the Board of Directors) and receive the same consideration they would have received
if they had converted the Securities immediately prior to the record date with respect to
such dividend or distribution.
87
SECTION 1614. Equivalent Adjustments. In the event that, as a result of an adjustment made pursuant to Section 1604 above, the holder
of any Security thereafter surrendered for conversion shall become entitled to receive any shares
of Capital Stock of the Company other than shares of its Common Stock, thereafter the Conversion
Price of such other shares so receivable upon conversion of any Securities shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to Common Stock contained in this Article Sixteen.
88
SIGNATURES
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as
of the day and year first above written.
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AASTROM BIOSCIENCES, INC.
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as Trustee
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EXHIBIT A
FORM OF
REDEEMABLE OR NON-REDEEMABLE SENIOR SECURITY
[Face of Security]
[If the Holder of this Security (as indicated below) is The Depository Trust Company (DTC) or a
nominee of DTC, this Security is a Global Security and the following two legends apply:
Unless this Security is presented by an authorized representative of The Depository Trust Company,
a New York corporation, (DTC) to the Company or its agent for registration of transfer,
conversion, exchange or payment, and such Security issued is registered in the name of Cede & Co.,
or in such other name as requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL,
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.
Unless
and until this Security is exchanged in whole or in part for Securities in certificated
form, this Security may not be transferred except as a whole by DTC to a nominee thereof or by a
nominee thereof to DTC or another nominee of DTC or by DTC or any such nominee to a successor of
DTC or a nominee of such successor.]
[If this Security is an Original Issue Discount Security, insert FOR PURPOSES OF SECTION
1273 and 1275 OF THE UNITED STATES INTERNAL REVENUE CODE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON
THIS SECURITY IS ___% OF ITS PRINCIPAL AMOUNT, THE ISSUE DATE IS __________, 20__, AND THE YIELD TO
MATURITY IS ___%. THE METHOD USED TO DETERMINE THE AMOUNT OF ORIGINAL ISSUE DISCOUNT APPLICABLE TO
THE SHORT ACCRUAL PERIOD OF __________, 20__ TO __________, 20__, IS ___% OF THE PRINCIPAL AMOUNT
OF THIS SECURITY.]
AASTROM
BIOSCIENCES, INC.
[Designation of Series]
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No. __________
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CUSIP No. __________
AASTROM BIOSCIENCES, INC., a Michigan corporation (herein referred to as the Company, which term
includes any successor corporation under the Indenture referred to on the reverse hereof), for
value received, hereby promises to pay to __________ or registered assigns the principal sum of
__________ Dollars on __________ (the Stated Maturity Date) [or insert date fixed for
earlier redemption (the Redemption Date, and together with the Stated Maturity Date with
respect to principal repayable on such date, the Maturity Date.)]
[If the Security is to bear interest prior to Maturity, insert and to pay interest
thereon from __________ or from the most recent Interest Payment Date to which interest has been
paid or
A-1
duly provided for, semi-annually on __________ and __________ in each year (each, an Interest
Payment Date), commencing __________, at the rate of ___% per annum, until the principal hereof is
paid or duly provided for. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the Holder in whose name
this Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the __________ or __________ (whether or not
a Business Day), as the case may be, next preceding such Interest Payment Date [at the office or
agency of the Company maintained for such purpose; provided, however, that such
interest may be paid, at the Companys option, by mailing a check to such Holder at its registered
address or by transfer of funds to an account maintained by such Holder within the United States].
Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable
to the Holder on such Regular Record Date, and may be paid to the Holder in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with
the requirements of any over-the-counter market or securities exchange on which the Securities of
this series may be quoted or listed, and upon such notice as may be required by such market or
exchange, all as more fully provided in the Indenture. Interest will be computed on the basis of a
360-day year of twelve 30-day months.]
[If the Security is not to bear interest prior to Maturity, insert The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at the [Stated] Maturity Date and in such case the overdue
principal of this Security shall bear interest at the rate of ___% per annum (to the extent that
the payment of such interest shall be legally enforceable), which shall accrue from the date of
such default in payment to the date payment of such principal has been made or duly provided for.
Interest on any overdue principal shall be payable on demand. Any such interest on any overdue
principal that is not so paid on demand shall bear interest at the rate of ___% per annum (to the
extent that the payment of such interest shall be legally enforceable), which shall accrue from the
date of such demand for payment to the date payment of such interest has been made or duly provided
for, and such interest shall also be payable on demand.]
The principal of this Security payable on the Stated Maturity Date [or the principal of, premium or
Make-Whole Amount, if any, and, if the Redemption Date is not an Interest Payment Date, interest on
this Security payable on the Redemption Date] will be paid against presentation of this Security at
the office or agency of the Company maintained for that purpose in __________, in such coin or
currency of the United States of America as at the time of payment is legal tender for the payment
of public and private debts.
Interest payable on this Security on any Interest Payment Date and on the [Stated] Maturity Date
[or Redemption Date, as the case may be,] will include interest accrued from and including the next
preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or
from and including __________, if no interest has been paid on this Security) to but excluding
such Interest Payment Date or the [Stated] Maturity Date [or Redemption Date, as the case may be.]
If any Interest Payment Date or the [Stated] Maturity Date or [Redemption Date] falls on a day that
is not a Business Day, as defined below, principal, premium or Make-Whole
A-2
Amount, if any, and/or interest payable with respect to such Interest Payment Date or [Stated]
Maturity Date [or Redemption Date, as the case may be,] will be paid on the next succeeding
Business Day with the same force and effect as if it were paid on the date such payment was due,
and no interest shall accrue on the amount so payable for the period from and after such Interest
Payment Date or [Stated] Maturity Date [or Redemption Date, as the case may be.] Business Day
means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which
banking institutions in The City of New York are required or authorized by law, regulation or
executive order to close.
[If this Security is a Global Security, insert All payments of principal, premium or
Make-Whole Amount, if any, and interest in respect of this Security will be made by the Company in
immediately available funds.]
Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.
Unless the Certificate of Authentication hereon has been executed by the Trustee by manual
signature of one of its authorized signatories, this Security shall not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its facsimile
corporate seal.
Dated: __________
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AASTROM BIOSCIENCES, INC.
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Attest:
Secretary
A-3
[Reverse of Security]
AASTROM BIOSCIENCES, INC.
This Security is one of a duly authorized issue of securities of the Company (herein called the
Securities), issued and to be issued in one or more series under an
Indenture, dated as of __________, 20__ (herein called the Indenture) between the Company and
______________________, as Trustee (herein called the Trustee, which term includes any successor
trustee under the Indenture with respect to the series of which this Security is a part), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the duly authorized series of
Securities designated on the face hereof (collectively, the Securities), [if applicable,
insert and the aggregate principal amount of the Securities to be issued under such series
is limited to $__________ (except for Securities authenticated and delivered upon transfer of, or
in exchange for, or in lieu of other Securities).] All terms used in this Security which are
defined in the Indenture shall have the meanings assigned to them in the Indenture.
If an Event of Default, as defined in the Indenture, shall occur and be continuing, the principal
of the Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.
[If applicable, insert The Securities may not be redeemed prior to the Stated Maturity
Date.]
[If applicable, insert The Securities are subject to redemption [ (l) (If
applicable, insert on __________ in any year commencing with the year __________ and ending
with the year __________ through operation of the sinking fund for this series at a Redemption
Price equal to 100% of the principal amount, and (2) ] [If applicable, insert at any
time [on or after __________], as a whole or in part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount):
If redeemed on or before __________, ___% and if redeemed during the 12-month period beginning
__________ of the years indicated at the Redemption Prices indicated below.
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Year |
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Redemption Price |
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Redemption Price |
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and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption [If applicable, insert (whether through operation of the sinking
fund or otherwise)] with accrued interest to the Redemption Date; provided, however, that
installments of interest on this Security whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holder of this Security, or one or more Predecessor Securities, of
record at the
A-4
close of business on the relevant Record Dates referred to on the face hereof, all as provided in
the Indenture.]
[If applicable, insert The Securities are subject to redemption (1) on __________
in any year commencing with the year __________ and ending with the year __________ through
operation of the sinking fund for this series at the Redemption Prices for redemption through
operation of the sinking fund (expressed as percentages of the principal amount) set forth in the
table below, and (2) at any time [on or after __________], as a whole or in part, at the election
of the Company, at the Redemption Prices for redemption otherwise than through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in the table below: If
redeemed during the 12-month period beginning __________ of the years indicated,
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Redemption Price for Redemption |
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Redemption Price for Redemption |
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Through Operation of the |
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Otherwise Than Through |
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Sinking Fund |
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Operation of the Sinking Fund |
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and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date; provided, however, that installments of interest
on this Security whose Stated Maturity is on or prior to such Redemption Date will be payable to
the Holder of this Security, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]
[If applicable, insert Notwithstanding the foregoing, the Company may not, prior to
__________, redeem any Securities as contemplated by [Clause (2) of] the preceding paragraph as a
part of, or in anticipation of, any refunding operation by the application, directly or indirectly,
of moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than ___% per annum.]
[If applicable, insert The sinking fund for the Securities provides for the
redemption on __________ in each year, beginning with the year __________ and ending with the year
__________, of [not less than] $__________] [(mandatory sinking fund) and not more than
$__________] aggregate principal amount of the Securities. [The Securities acquired or redeemed by
the Company otherwise than through [mandatory] sinking fund payments may be credited against
subsequent [mandatory] sinking fund payments otherwise required to be made in the [describe
order] order in which they become due.]]
Notice of redemption will be given by mail to Holders of Securities, not less than 30 nor more
than 60 days prior to the Redemption Date, all as provided in the Indenture.
A-5
In the event of redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation
hereof.
[If applicable, insert conversion provisions set forth in any Board Resolution or indenture
supplemental to the Indenture.]
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority of the aggregate principal amount of all Securities issued
under the Indenture at the time Outstanding and affected thereby. The Indenture also contains
provisions permitting the Holders of not less than a majority of the aggregate principal amount of
the Outstanding Securities, on behalf of the Holders of all such Securities, to waive compliance by
the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture
permit the Holders of not less than a majority of the aggregate principal amount, in certain
instances, of the Outstanding Securities of any series to waive, on behalf of all of the Holders of
Securities of such series, certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and other Securities issued upon the
registration of transfer hereof or conversion or in exchange herefor or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium or Make-Whole Amount, if any) and interest on this Security at the
times, places and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein [and herein] set
forth, the transfer of this Security is registrable in the Security Register of the Company upon
surrender of this Security for registration of transfer at the office or agency of the Company in
any place where the principal of (and premium or Make-Whole Amount, if any) and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or by
his attorney duly authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
As provided in the Indenture and subject to certain limitations therein [and herein] set
forth, this Security is exchangeable for a like aggregate principal amount of Securities of
different authorized denominations but otherwise having the same terms and conditions, as requested
by the Holder hereof surrendering the same.
The Securities of this series are issuable only in registered form [without coupons] in
denominations of $__________ and any integral multiple thereof.
A-6
No service charge shall be made for any such registration of transfer or conversion or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith,
Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
No recourse shall be had for the payment of the principal of or premium or Make-Whole Amount,
if any, or the interest on this Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against
any past, present or future stockholder, employee, officer or director, as such, of the Company or
of any successor, either directly or through the Company or any successor, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.
The Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York applicable to agreements made and to be performed entirely in such
State.
A-7
EXHIBIT B
FORMS OF
CERTIFICATION
EXHIBIT
B-1
FORM OF
CERTIFICATE TO BE GIVEN BY PERSON ENTITLED TO RECEIVE BEARER
SECURITY OR TO OBTAIN INTEREST
PAYABLE PRIOR TO THE EXCHANGE DATE
CERTIFICATE
[Insert title or sufficient description of Securities to be delivered]
This is to certify that, as of the date hereof, and except as set forth below, the
above-captioned Securities held by you for our account (i) are owned by person(s) that are not
citizens or residents of the United States, domestic partnerships, domestic corporations or any
estate or trust the income of which is subject to United States Federal income taxation regardless
of its source (United States person(s)), (ii) are owned by United States person(s) that are (a)
foreign branches of United States financial institutions (financial institutions, as defined in
United States Treasury Regulations Section 2.165-12(c)(1)(v) are herein referred to as financial
institutions) purchasing for their own account or for resale, or (b) United States person(s) who
acquired the Securities through foreign branches of United States financial institutions and who
hold the Securities through such United States financial institutions on the date hereof (and in
either case (a) or (b), each such United States financial institution hereby agrees, on its own
behalf or through its agent, that you may advise Aastrom Biosciences, Inc. or its agent that such
financial institution will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the
United States Internal Revenue Code of 1986, as amended, and the regulations thereunder), or (iii)
are owned by United States or foreign financial institution(s) for purposes of resale during the
restricted period (as defined in United States Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and, in addition, if the owner is a United States or foreign financial
institution described in clause (iii) above (whether or not also described in clause (i) or (ii)),
this is to further certify that such financial institution has not acquired the Securities for
purposes of resale directly or indirectly to a United States person or to a person within the
United States or its possessions.
As used herein, United States means the United States of America (including the States and
the District of Columbia); and its possessions include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.
We undertake to advise you promptly by tested telex or by telecopy on or prior to the date on
which you intend to submit your certification relating to the above-captioned Securities held by
you for our account in accordance with your operating procedures if any applicable statement herein
is not correct on such date, and in the absence of any such notification it may be assumed that
this certification applies as of such date.
This certificate excepts and does not relate to [U.S.$] of such interest in the
above-captioned Securities in respect of which we are not able to certify and as to which we
B-1
understand an exchange for an interest in a permanent Global Security or an exchange for and
delivery of definitive Securities (or, if relevant, collection of any interest) cannot be made
until we do so certify.
We understand that this certificate may be required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to
produce this certificate or a copy thereof to any interested party in such proceedings.
Dated: __________
[To be dated no earlier than the 15th day prior to (i) the Exchange Date or (ii) the relevant
Interest Payment Date occurring prior to the Exchange Date, as applicable]
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[Name of Person Making Certification]
(Authorized Signature)
Name:
Title:
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B-2
EXHIBIT
B-2
FORM OF
CERTIFICATE TO BE GIVEN BY EUROCLEAR AND CLEARSTREAM S.A. IN
CONNECTION WITH THE EXCHANGE OF A PORTION OF A TEMPORARY GLOBAL
SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE
CERTIFICATE
[Insert title or sufficient description of Securities to be delivered]
This is to certify that, based solely on written certifications that we have received in
writing, by tested telex or by electronic transmission from each of the persons appearing in our
records as persons entitled to a portion of the principal amount set forth below (our Member
Organizations) substantially in the form attached hereto, as of the date hereof, [U.S.$] principal
amount of the above-captioned Securities (i) is owned by person(s) that are not citizens or
residents of the United States, domestic partnerships, domestic corporations or any estate or trust
the income of which is subject to United States Federal income taxation regardless of its source
(United States person(s)), (ii) is owned by United States person(s) that are (a) foreign branches
of United States financial institutions (financial institutions, as defined in U.S. Treasury
Regulations Section 1.165-12(c)(1)(v) are herein referred to as financial institutions)
purchasing for their own account or for resale, or (b) United States person(s) who acquired the
Securities through foreign branches of United States financial institutions and who hold the
Securities through such United States financial institutions on the date hereof (and in either case
(a) or (b), each such financial institution has agreed, on its own behalf or through its agent,
that we may advise Aastrom Biosciences, Inc. or its agent that such financial institution will
comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of
1986, as amended, and the regulations thereunder), or (iii) is owned by United States or foreign
financial institution(s) for purposes of resale during the restricted period (as defined in United
States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, to the further effect, that
financial institutions described in clause (iii) above (whether or not also described in clause (i)
or (ii)) have certified that they have not acquired the Securities for purposes of resale directly
or indirectly to a United States person or to a person within the United States or its possessions.
As used herein, United States means the United States of America (including the States and
the District of Columbia); and its Possessions include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.
We further certify that (i) we are not making available herewith for exchange (or, if
relevant, collection of any interest) any portion of the temporary Global Security representing the
above-captioned Securities excepted in the above-referenced certificates of Member Organizations
and (ii) as of the date hereof we have not received any notification from any of our Member
Organizations to the effect that the statements made by such Member Organizations with respect to
any portion of the part submitted herewith for exchange (or, if relevant, collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.
We understand that this certification is required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
B-3
connection with which this certificate is or would be relevant, we irrevocably authorize you
to produce this certificate or a copy thereof to any interested party in such proceedings.
Dated: __________
[To be dated no earlier than the Exchange Date or the relevant Interest Payment Date occurring
prior to the Exchange Date, as applicable]
[_____________, as Operator of the Euroclear System] [Clearstream Banking Luxembourg]
B-4
exv4w3
Exhibit 4.3
AASTROM BIOSCIENCES, INC.
TO
Trustee
Indenture
Dated as of __________, 20__
Subordinated Debt Securities
TABLE OF CONTENTS
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ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION |
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1 |
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SECTION 101. Definitions |
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1 |
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SECTION 102. Compliance Certificates and Opinions |
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12 |
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SECTION 103. Form of Documents Delivered to Trustee |
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12 |
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SECTION 104. Acts of Holders |
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13 |
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SECTION 105. Notices, etc., to Trustee and Company |
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15 |
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SECTION 106. Notice to Holders; Waiver |
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15 |
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SECTION 107. Counterparts; Effect of Headings and Table of Contents |
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16 |
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SECTION 108. Successors and Assigns |
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16 |
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SECTION 109. Severability Clause |
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16 |
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SECTION 110. Benefits of Indenture |
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16 |
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SECTION 111. Governing Law |
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16 |
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SECTION 112. Legal Holidays |
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17 |
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SECTION 113. Limited Liability; Immunity of Stockholders, Directors,
Officers and Agents of the Company |
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17 |
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SECTION 114. Conflict with Trust Indenture Act |
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17 |
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ARTICLE TWO SECURITIES FORMS |
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18 |
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SECTION 201. Forms of Securities |
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18 |
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SECTION 202. Form of Trustees Certificate of Authentication |
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18 |
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SECTION 203. Securities Issuable in Global Form |
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18 |
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ARTICLE THREE THE SECURITIES |
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19 |
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SECTION 301. Amount Unlimited; Issuable in Series |
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19 |
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SECTION 302. Denominations |
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23 |
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SECTION 303. Execution, Authentication, Delivery and Dating |
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23 |
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SECTION 304. Temporary Securities |
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25 |
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SECTION 305. Registration, Registration of Transfer, Conversion and Exchange |
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28 |
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SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities |
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31 |
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SECTION 307. Payment of Interest; Interest Rights Preserved |
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32 |
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SECTION 308. Persons Deemed Owners |
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34 |
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SECTION 309. Cancellation |
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35 |
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SECTION 310. Computation of Interest |
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36 |
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SECTION 311. CUSIP Numbers |
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36 |
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ARTICLE FOUR SATISFACTION AND DISCHARGE |
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36 |
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SECTION 401. Satisfaction and Discharge of Indenture |
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36 |
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SECTION 402. Application of Trust Funds |
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37 |
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(i)
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ARTICLE FIVE REMEDIES |
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38 |
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SECTION 501. Events of Default |
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38 |
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SECTION 502. Acceleration of Maturity; Rescission and Annulment |
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39 |
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SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee |
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40 |
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SECTION 504. Trustee May File Proofs of Claim |
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41 |
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SECTION 505. Trustee May Enforce Claims Without Possession of Securities
or Coupons |
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42 |
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SECTION 506. Application of Money Collected |
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42 |
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SECTION 507. Limitation on Suits |
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43 |
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SECTION 508. Unconditional Right of Holders to Receive Principal,
Premium or Make-Whole Amount, if any, and Interest |
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43 |
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SECTION 509. Restoration of Rights and Remedies |
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43 |
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SECTION 510. Rights and Remedies Cumulative |
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44 |
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SECTION 511. Delay or Omission Not Waiver |
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44 |
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SECTION 512. Control by Holders of Securities |
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44 |
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SECTION 513. Waiver of Past Defaults |
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44 |
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SECTION 514. Waiver of Usury, Stay or Extension Laws |
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45 |
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SECTION 515. Undertaking for Costs |
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45 |
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ARTICLE SIX THE TRUSTEE |
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45 |
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SECTION 601. Notice of Defaults |
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45 |
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SECTION 602. Certain Rights of Trustee |
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46 |
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SECTION 603. Not Responsible for Recitals or Issuance of Securities |
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48 |
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SECTION 604. May Hold Securities |
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48 |
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SECTION 605. Money Held in Trust |
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48 |
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SECTION 606. Compensation and Reimbursement |
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48 |
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SECTION 607. Corporate Trustee Required; Eligibility; Conflicting Interests |
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49 |
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SECTION 608. Resignation and Removal; Appointment of Successor |
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49 |
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SECTION 609. Acceptance of Appointment by Successor |
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51 |
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SECTION 610. Merger, Conversion, Consolidation or Succession to Business |
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52 |
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SECTION 611. Appointment of Authenticating Agent |
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52 |
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SECTION 612. Certain Duties and Responsibilities of the Trustee |
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54 |
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ARTICLE SEVEN HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY |
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55 |
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SECTION 701. Disclosure of Names and Addresses of Holders |
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55 |
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SECTION 702. Reports by Trustee |
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55 |
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SECTION 703. Reports by Company |
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55 |
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SECTION 704. Company to Furnish Trustee Names and Addresses of Holders |
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56 |
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(ii)
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ARTICLE EIGHT CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE |
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57 |
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SECTION 801. Consolidations and Mergers of Company and Sales, Leases
and Conveyances Permitted Subject to Certain Conditions |
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57 |
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SECTION 802. Rights and Duties of Successor Corporation |
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57 |
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SECTION 803. Officers Certificate and Opinion of Counsel |
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58 |
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ARTICLE NINE SUPPLEMENTAL INDENTURES |
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58 |
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SECTION 901. Supplemental Indentures Without Consent of Holders |
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58 |
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SECTION 902. Supplemental Indentures with Consent of Holders |
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59 |
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SECTION 903. Execution of Supplemental Indentures |
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60 |
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SECTION 904. Effect of Supplemental Indentures |
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61 |
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SECTION 905. Conformity with Trust Indenture Act |
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61 |
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SECTION 906. Reference in Securities to Supplemental Indentures |
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61 |
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ARTICLE TEN COVENANTS |
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61 |
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SECTION
1001. Payment of Principal, Premium or Make- Whole Amount, if
any; and Interest |
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61 |
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SECTION 1002. Maintenance of Office or Agency |
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61 |
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SECTION 1003. Money for Securities Payments to Be Held in Trust |
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63 |
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SECTION 1004. Existence |
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64 |
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SECTION 1005. Maintenance of Properties |
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64 |
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SECTION 1006. Insurance |
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65 |
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SECTION 1007. Payment of Taxes and Other Claims |
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65 |
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SECTION 1008. Statement as to Compliance |
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65 |
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SECTION 1009. Waiver of Certain Covenants |
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65 |
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ARTICLE ELEVEN REDEMPTION OF SECURITIES |
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66 |
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SECTION 1101. Applicability of Article |
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66 |
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SECTION 1102. Election to Redeem; Notice to Trustee |
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66 |
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SECTION 1103. Selection by Trustee of Securities to Be Redeemed |
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66 |
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SECTION 1104. Notice of Redemption |
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66 |
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SECTION 1105. Deposit of Redemption Price |
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68 |
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SECTION 1106. Securities Payable on Redemption Date |
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68 |
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SECTION 1107. Securities Redeemed in Part |
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69 |
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ARTICLE TWELVE SINKING FUNDS |
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69 |
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SECTION 1201. Applicability of Article |
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69 |
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SECTION 1202. Satisfaction of Sinking Fund Payments with Securities |
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70 |
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SECTION 1203. Redemption of Securities for Sinking Fund |
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70 |
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ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS |
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70 |
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SECTION 1301. Applicability of Article |
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70 |
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SECTION 1302. Repayment of Securities |
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71 |
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SECTION 1303. Exercise of Option |
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71 |
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(iii)
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Page |
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SECTION 1304. When Securities Presented for Repayment Become Due and
Payable |
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72 |
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SECTION 1305. Securities Repaid in Part |
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72 |
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ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE |
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73 |
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SECTION 1401. Applicability of Article; Companys Option to Effect
Defeasance or Covenant Defeasance |
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73 |
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SECTION 1402. Defeasance and Discharge |
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73 |
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SECTION 1403. Covenant Defeasance |
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73 |
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SECTION 1404. Conditions to Defeasance or Covenant Defeasance |
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74 |
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SECTION 1405. Deposited Money and Government Obligations to Be Held in
Trust; Other Miscellaneous Provisions |
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76 |
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ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES |
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77 |
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SECTION 1501. Purposes for Which Meetings May Be Called |
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77 |
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SECTION 1502. Call, Notice and Place of Meetings |
|
|
77 |
|
SECTION 1503. Persons Entitled to Vote at Meetings |
|
|
77 |
|
SECTION 1504. Quorum; Action |
|
|
77 |
|
SECTION 1505. Determination of Voting Rights; Conduct and Adjournment of
Meetings |
|
|
78 |
|
SECTION 1506. Counting Votes and Recording Action of Meetings |
|
|
79 |
|
|
|
|
|
|
ARTICLE SIXTEEN SUBORDINATION OF SECURITIES |
|
|
80 |
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SECTION 1601. Agreement to Subordinate |
|
|
80 |
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SECTION 1602. Payment Over of Proceeds upon Dissolution, Etc |
|
|
80 |
|
SECTION 1603. No Payment When Senior Indebtedness in Default |
|
|
81 |
|
SECTION 1604. Reliance by Senior Indebtedness on Subordination Provisions |
|
|
82 |
|
SECTION 1605. Subrogation to Rights of Holders of Senior Indebtedness |
|
|
82 |
|
SECTION 1606. Provisions Solely to Define Relative Rights |
|
|
83 |
|
SECTION 1607. Trustee to Effectuate Subordination |
|
|
83 |
|
SECTION 1608. No Waiver of Subordination Provisions |
|
|
84 |
|
SECTION 1609. Notice to Trustee |
|
|
84 |
|
SECTION 1610. Reliance on Judicial Order or Certificate of Liquidating Agent |
|
|
85 |
|
SECTION 1611. Trustee Not Fiduciary for Holders of Senior Indebtedness |
|
|
85 |
|
SECTION 1612. Rights of Trustee as Holder of Senior Indebtedness;
Preservation of Trustees Rights |
|
|
85 |
|
SECTION 1613. Article Applicable to Paying Agents |
|
|
86 |
|
|
|
|
|
|
ARTICLE SEVENTEEN CONVERSION OF SECURITIES |
|
|
86 |
|
SECTION 1701. Applicability of Article; Conversion Privilege and
Conversion Price |
|
|
86 |
|
SECTION 1702. Exercise of Conversion Privilege |
|
|
87 |
|
SECTION 1703. Fractions of Shares |
|
|
88 |
|
SECTION 1704. Adjustment of Conversion Price |
|
|
88 |
|
(iv)
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|
|
|
|
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Page |
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SECTION 1705. Notice of Adjustments of Conversion Price |
|
|
92 |
|
SECTION 1706. Notice of Certain Corporate Action |
|
|
92 |
|
SECTION 1707. Company to Reserve Common Stock |
|
|
93 |
|
SECTION 1708. Taxes on Conversion |
|
|
93 |
|
SECTION 1709. Covenants as to Common Stock |
|
|
93 |
|
SECTION 1710. Cancellation of Converted Securities |
|
|
93 |
|
SECTION 1711. Provisions in Case of Consolidation, Merger or Sale of
Assets; Special Distributions |
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|
93 |
|
SECTION 1712. Trustee Adjustment Disclaimer; Company Determination Final |
|
|
95 |
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SECTION 1713. When No Adjustment Required |
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95 |
|
SECTION 1714. Equivalent Adjustments |
|
|
95 |
|
(v)
AASTROM BIOSCIENCES, INC.
Reconciliation and tie between the Trust Indenture Act of 1939, as amended (the Trust
Indenture Act or TIA) and the Indenture, dated as of __________, 20____.
|
|
|
|
|
Trust Indenture |
|
|
|
Act Section |
|
Indenture Section |
|
§ 310(a)(1) |
|
|
607 |
|
(a)(2) |
|
|
607 |
|
(b) |
|
|
607,608 |
|
§ 312(c) |
|
|
701 |
|
§ 313(a) |
|
|
702 |
|
(c) |
|
|
702 |
|
§ 314(a) |
|
|
703 |
|
(a)(4) |
|
|
1008 |
|
(c)(1) |
|
|
102 |
|
(c)(2) |
|
|
102 |
|
(e) |
|
|
102 |
|
§ 315(b) |
|
|
601 |
|
§ 316(a) (last sentence) |
|
|
101(Outstanding) |
(a)(1)(A) |
|
|
502, 512 |
|
(a)(1)(B) |
|
|
513 |
|
(b) |
|
|
508 |
|
§ 317(a)(1) |
|
|
503 |
|
(a)(2) |
|
|
504 |
|
§ 318(a) |
|
|
111 |
|
(c) |
|
|
111 |
|
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.
Attention should also be directed to Section 318(c) of the Trust Indenture Act, which provides
that the provisions of Sections 310 to and including 317 of the Trust Indenture Act are a part of
and govern every qualified indenture, whether or not physically contained therein.
(vi)
INDENTURE, dated as of __________, 20__, between AASTROM BIOSCIENCES, INC., a corporation
organized under the laws of the State of Michigan (hereinafter called the Company), having its
principal office at 24 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48106, and ________________,
as Trustee hereunder (hereinafter called the Trustee), having a Corporate Trust Office at
___________________.
RECITALS OF THE COMPANY
The Company deems it necessary to issue from time to time for its lawful purposes subordinated
debt securities (hereinafter called the Securities) evidencing its unsecured and subordinated
indebtedness, and has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of the Securities, to be issued in one or more Series as provided in
this Indenture.
This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended
(the Trust Indenture Act or TIA), that are deemed to be incorporated into this Indenture and
shall, to the extent applicable, be governed by such provisions.
All things necessary to make this Indenture a valid and legally binding agreement of the
Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of a Series thereof, as follows:
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 101. Definitions. For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to them in this
Article, and include the plural as well as the singular;
(2) all other terms used herein which are defined in the TIA, either directly or by
reference therein, have the meanings assigned to them therein, and the terms cash
transactions and self-liquidating paper, as used in TIA Section 311, shall have the
meanings assigned to them in the rules of the Commission adopted under the TIA;
(3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP;
(4) any reference to an Article or a Section refers to an Article or Section,
as the case may be, of this Indenture; and
(5) the words herein, hereof and hereunder and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.
Act, when used with respect to any Holder, has the meaning specified in Section 104.
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.
Authenticating Agent means any Person authorized by the Trustee pursuant to Section
611 hereof to act on behalf of the Trustee to authenticate Securities of one or more Series.
Authorized Newspaper means a newspaper, printed in the English language or in an
official language of the country of publication, customarily published on each Business Day,
whether or not published on Saturdays, Sundays or holidays, and of general circulation in each
place in connection with which the term is used or in the financial community of each such place.
Whenever successive publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different Authorized Newspapers in the same city meeting
the foregoing requirements and in each case on any Business Day.
Bankruptcy Law has the meaning specified in Section 501.
Bearer Security means any Security established pursuant to Section 201 which is
payable to the bearer.
Board of Directors when used with reference to the Company, means the board of
directors of the Company, or any committee of that board duly authorized to act hereunder, or any
director or directors and/or officer or officers of the Company, to whom the board or committee
shall have duly delegated its authority.
Board Resolution means a copy of (1) a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of Directors or a duly
authorized committee of the Board of Directors and to be in full force and effect on the date of
such certification, or (2) a certificate signed by the director or directors and/or officer or
officers to whom the Board of Directors shall have duly delegated its authority, together with a
resolution 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 authorizing such delegation, and, in each case, delivered to the Trustee.
Business Day, when used with respect to any Place of Payment or any other particular
location referred to in this Indenture or in the Securities, means, unless otherwise specified with
respect to any Securities issued pursuant to Section 301, any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions in that Place of
2
Payment or particular location are authorized or required by law, regulation or executive
order to close.
Capital Stock means, with respect to any Person, any capital stock (including
preferred stock), shares, interests, participations or other ownership interests (however
designated) of such Person and any rights (other than debt securities convertible into or
exchangeable for corporate stock), warrants or options to purchase any thereof.
Clearstream means Clearstream Banking Luxembourg, société anonyme, or its successor.
Closing Price means the closing price of a share of Common Stock of the Company as
reported on the NASDAQ Capital Market.
Code means the Internal Revenue Code of 1986, as amended, and the regulations
thereunder.
Commission means the Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act, or, if at any time after execution of this instrument
such Commission is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties on such date.
Common Depository has the meaning specified in Section 304.
Common Stock means, with respect to any Person, all shares of capital stock issued
by such Person other than Preferred Stock.
Company means the Person named as the Company in the first paragraph of this
Indenture until a successor corporation shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter Company shall mean such successor corporation.
Company Request and Company Order mean, respectively, a written request or
order signed in the name of the Company by its Chairman of the Board, the Chief Executive Officer,
the President, or a Vice President, and by its Treasurer, an Assistant Treasurer, the Secretary or
an Assistant Secretary, of the Company, and delivered to the Trustee.
Constituent Person has the meaning specified in Section 1711.
Conversion Event means the cessation of use of (i) a Foreign Currency both by the
government of the country which issued such currency and for the settlement of transactions by a
central bank or other public institutions of or within the international banking community, (ii)
the ECU both within the European Monetary System and for the settlement of transactions by public
institutions of or within the European Communities or (iii) any currency unit (or composite
currency) other than the ECU for the purposes for which it was established.
Conversion Price has the meaning specified in Section 1701.
3
Corporate Trust Office means the office of the Trustee at which, at any particular
time, its corporate trust business shall be principally administered, which office at the date
hereof is located at [____________________].
corporation includes corporations, associations, companies and business trusts.
coupon means any interest coupon appertaining to a Bearer Security.
Covenant Defeasance has the meaning specified in Section 1403.
Custodian has the meaning specified in Section 501.
Defaulted Interest has the meaning specified in Section 307.
Defeasance has the meaning specified in Section 1402.
Distribution Record Date has the meaning specified in Section 1711.
Dividend Record Date has the meaning specified in Section 1704.
Dollar or the sign $ means a dollar or other equivalent unit in such coin
or currency of the United States of America as at the time of payment is legal tender for the
payment of public and private debts.
DTC means The Depository Trust Company and any successor to DTC in its capacity as
depository for any Securities.
ECU means the European Currency Unit as defined and revised from time to time by the
Council of the European Communities.
Euroclear means the operator of the Euroclear System.
European Communities means the European Economic Community, the European Coal and
Steel Community and the European Atomic Energy Community.
European Monetary System means the European Monetary System established by the
Resolution of December 5, 1978 of the Council of the European Communities.
Event of Default has the meaning specified in Article Five.
Exchange Act means the Securities Exchange Act of 1934, as amended, as in force at
the date as of which this Indenture was executed; provided, however, that in the
event the Exchange Act is amended after such date, Exchange Act means to the extent required by
any such amendment, the Exchange Act as so amended.
Exchange Date has the meaning specified in Section 304.
FINRA means the Financial Industry Regulatory Authority, Inc.
4
Foreign Currency means any currency, currency unit or composite currency, including,
without limitation, the ECU issued by the government of one or more countries other than the United
States of America or by any recognized confederation or association of such governments.
GAAP means, except as otherwise provided herein, generally accepted accounting
principles, as in effect from time to time, as used in the United States applied on a consistent
basis.
Global Security means a Security evidencing all or a part of a series of Securities
issued to and registered in the name of the depository for such series, or its nominee, in
accordance with Section 305, and bearing the legend prescribed in Section 203.
Government Obligations means (i) securities which are (A) direct obligations of the
United States of America or the government which issued the Foreign Currency in which the
Securities of a particular series are payable, for the payment of which its full faith and credit
is pledged or (B) obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America or such government which issued the Foreign
Currency in which the Securities of such series are payable, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America or
such other government, which, in either case, are not callable or redeemable at the option of the
issuer thereof, and (iii) a depository receipt issued by a bank or trust company as custodian with
respect to any such Government Obligation or a specific payment of interest on or principal of any
such Government Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not authorized to make
any deduction from the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the Government Obligation or the specific payment of
interest on or principal of the Government Obligation evidenced by such depository receipt.
Guaranty by any Person means any Obligation, contingent or otherwise, of such Person
guaranteeing any Indebtedness of any other Person (the primary obligor) in any manner, whether
directly or indirectly, and including, without limitation, every Obligation of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or to
purchase (or to advance or supply funds for the purchase of) any security for the payment of such
Indebtedness, (ii) to purchase property, securities or services for the purpose of assuring the
holder of such Indebtedness of the payment of such Indebtedness or (iii) to maintain working
capital, equity capital or other financial statement condition or liquidity of the primary obligor
so as to enable the primary obligor to pay such Indebtedness; provided, however,
that a Guaranty by any Person shall not include endorsements by such Person for collection or
deposit, in either case in the ordinary course of business. The terms Guaranteed,
Guaranteeing and Guarantor shall have meanings correlative to the foregoing.
Holder means, in the case of a Registered Security, the Person in whose name a
Security is registered in the Security Register and, in the case of a Bearer Security, the bearer
thereof and, when used with respect to any coupon, shall mean the bearer thereof.
5
Indebtedness means, with respect to any Person, without duplication, (i) any
Obligation of such Person relating to any indebtedness of such Person (A) for borrowed money
(whether or not the recourse of the lender is to the whole of the assets, of such person or only to
a portion thereof), (B) evidenced by notes, debentures or similar instruments (including purchase
money obligations) given in connection with the acquisition of any property or assets (other than
trade accounts payable for inventory or similar property acquired in the ordinary course of
business), including securities, for the payment of which such Person is liable, directly or
indirectly, or the payment of which is secured by a lien, charge or encumbrance on property or
assets of such Person, (C) for goods, materials or services purchased in the ordinary course of
business (other than trade accounts payable arising in the ordinary course of business), (D) with
respect to letters of credit or bankers acceptances issued for the account of such Person or
performance, surety or similar bonds, (E) for the payment of money relating to a capitalized lease
Obligation or (F) under interest rate swaps, caps or similar agreements and foreign exchange
contracts, currency swaps or similar agreements; (ii) any liability of others of the kind described
in the preceding clause (i), which such Person has Guaranteed or which is otherwise its legal
liability; and (iii) any and all deferrals, renewals, extensions and refunding of, or amendments,
modifications or supplements to, any liability of the kind described in any of the preceding
clauses (i) or (ii).
Indenture means this instrument as originally executed or as it may be supplemented
or amended from time to time by one or more indentures supplemental hereto entered into pursuant to
the applicable provisions hereof, and shall include the terms of particular series of Securities
established as contemplated by Section 301; provided, however, that, if at any time
more than one Person is acting as Trustee under this instrument, Indenture shall mean, with
respect to any one or more series of Securities for which such Person is Trustee, this instrument
as originally executed or as it may be supplemented or amended from time to time by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of the or those particular series of Securities for which such Person is Trustee
established as contemplated by Section 301, exclusive, however, of any provisions or terms which
relate solely to other series of Securities for which such Person is Trustee, regardless of when
such terms or provisions were adopted, and exclusive of any provisions or terms adopted by means of
one or more indentures supplemental hereto executed and delivered after such Person had become such
Trustee but to which such Person, as such Trustee, was not a party.
Indexed Security means a Security the terms of which provide that the principal
amount thereof payable at Stated Maturity may be more or less than the principal face amount
thereof at original issuance.
Interest, when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, shall mean interest payable after Maturity.
Interest Payment Date, when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security.
Make-Whole Amount, when used with respect to any Security, means the amount, if any,
in addition to principal (and accrued interest thereon, if any) which is required by a Security,
under the terms and conditions specified therein or as otherwise specified as
6
contemplated by Section 301, to be paid by the Company to the Holder thereof in connection
with any optional redemption or accelerated payment of such Security.
mandatory sinking fund payment has the meaning specified in Section 1201.
Market Value of the Distribution has the meaning specified in Section 1704.
Maturity, when used with respect to any Security, means the date on which the
principal (or, if the context so requires, in the case of an Original Issue Discount Security, or
lesser amount or, in the case of an Indexed Security, an amount determined in accordance with the
specified terms of that Security) of such Security or an installment of principal becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, notice of redemption, notice of option to elect repayment or otherwise.
Obligation of any Person with respect to any specified Indebtedness means any
obligation of such Person to pay principal, premium, interest (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization relating to such Person,
whether or not a claim for such post-petition interest is allowed in such proceeding), penalties,
reimbursement or indemnification amounts, fees, expenses or other amounts relating to such
Indebtedness.
Officers Certificate means a certificate signed by the Chairman of the Board of
Directors, the Chief Executive Officer, the President, or a Vice President (whether or not
designated by a number or word or words added before or after the title Vice President), and by
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.
Opinion of Counsel means a written opinion of counsel, who may be counsel for the
Company or who may be an employee of or other counsel for the Company.
optional sinking fund payment has the meaning specified in Section 1201.
Original Issue Discount Security means any Security which provides for an amount
(excluding any amounts attributable to accrued but unpaid interest thereon) less than the principal
amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502.
Outstanding, when used with respect to Securities, means, as of the date of
determination, all Securities theretofore authenticated and delivered under this Indenture,
except:
(i) Securities theretofore canceled by the Trustee or delivered to the
Trustee for cancellation;
(ii) Securities, or portions thereof, for whose payment or redemption
(including repayment at the option of the Holder) money in the necessary amount has
been theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
7
Company shall act as its own Paying Agent) for the Holders of such Securities
and any coupons appertaining thereto; provided, however, that, if
such Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee has
been made;
(iii) Securities, except to the extent provided in Sections 1402 and 1403,
with respect to which the Company has effected Defeasance and/or Covenant Defeasance
as provided in Article Fourteen; and
(iv) Securities which have been paid pursuant to Section 306 or in exchange
for or in lieu of which other Securities have been authenticated and delivered
pursuant to this Indenture, other than any such Securities in respect of which there
shall have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company.
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of Holders for quorum
purposes, and for the purpose of making the calculations required by TIA Section 313, (i) the
principal amount of an Original Issue Discount Security that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding for such purpose shall be
equal to the amount of principal thereof that would be (or shall have been declared to be) due and
payable, at the time of such determination, upon a declaration of acceleration of the maturity
thereof pursuant to Section 502, (ii) the principal amount of any Security denominated in a Foreign
Currency that may be counted in making such determination or calculation and that shall be deemed
Outstanding for such purpose shall be equal to the Dollar equivalent, determined pursuant to
Section 301 as of the date such Security is originally issued by the Company, of the principal
amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent as of such
date of original issuance of the amount determined as provided in clause (i) above) of such
Security, (iii) the principal amount of any Indexed Security that may be counted in making such
determination or calculation and that shall be deemed outstanding for such purpose shall be equal
to the principal face amount of such Indexed Security at original issuance, unless otherwise
provided with respect to such Security pursuant to Section 301, and (iv) Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether
the Trustee shall be protected in making such calculation or in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities owned as
provided in clause (iv) above which have been pledged in good faith may be regarded as Outstanding
if the pledgee establishes to the satisfaction of the Trustee the pledgees right so to act with
respect to such Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor. In case of a dispute as to
such right, the advice of counsel shall be full protection in respect of any decision made by the
Trustee in accordance with such advice.
8
Paying Agent means any Person authorized by the Company to pay the principal of (and
premium or Make-Whole Amount, if any) or interest on any Securities or coupons on behalf of the
Company.
Payment Blockage Notice and Payment Blockage Period have the respective
meanings specified in Section 1603.
Person means any individual, corporation, limited liability company, partnership,
joint venture, association, joint-stock company, trust, unincorporated organization or government
or any agency or political subdivision thereof, or any other entity or organization.
Place of Payment, when used with respect to the Securities of or within any series,
means the place or places where the principal of (and premium or Make-Whole Amount, if any) and
interest on such Securities are payable as specified as contemplated by Sections 301 and 1002.
Predecessor Security of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security or a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security or the Security to which the mutilated,
destroyed, lost or stolen coupon appertains.
Preferred Stock means, with respect to any Person, all capital stock issued by such
Person that is entitled to a preference or priority over any other capital stock issued by such
Person with respect to any distribution of such Persons assets, whether by dividend or upon any
voluntary or involuntary liquidation, dissolution or winding up.
Proceeding has the meaning specified in Section 1602.
Redemption Date, when used with respect to any Security to be redeemed, in whole or
in part, means the date fixed for such redemption by or pursuant to this Indenture.
Redemption Price, when used with respect to any Security to be redeemed, means the
price specified in the related Officers Certificate or supplemental indenture contemplated by and
pursuant to Section 301, at which it is to be redeemed pursuant to this Indenture.
Reference Date has the meaning specified in Section 1704.
Registered Security shall mean any Security which is registered in the Security
Register.
Regular Record Date for the interest payable on any Interest Payment Date on the
Registered Securities of or within any series means the date specified for that purpose as
contemplated by Section 301, whether or not a Business Day.
9
Repayment Date means, when used with respect to any Security to be repaid at the
option of the Holder, the date fixed for such repayment by or pursuant to this Indenture.
Repayment Price means, when used with respect to any Security to be repaid at the
option of the Holder, the price at which it is to be repaid by or pursuant to this Indenture.
Responsible Officer, when used with respect to the Trustee, means any Vice President
(whether or not designated by a number or a word or words added before or after the title Vice
President), Assistant Vice President, Trust Officer or Assistant Trust Officer working in its
Corporate Trust Department, or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and working in its Corporate
Trust Department, and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of such officers knowledge and familiarity with
the particular subject and who shall have direct responsibility for the administration of this
Indenture.
Rights has the meaning specified in Section 1704.
Rights Record Date has the meaning specified in Section 1704.
Securities Payment has the meaning specified in Section 1602.
Security and Securities has the meaning stated in the first recital of
this Indenture and, more particularly, means any Security or Securities authenticated and delivered
under this Indenture; provided, however, that, if at any time there is more than
one Person acting as Trustee under this Indenture, Securities with respect to the Indenture as to
which such Person is Trustee shall have the meaning stated in the first recital of this Indenture
and shall more particularly mean Securities authenticated and delivered under this Indenture,
exclusive, however, of Securities of any series as to which such Person is not Trustee.
Security Register and Security Registrar have the respective meanings
specified in Section 305.
Senior Indebtedness means Indebtedness of the Company, whether outstanding on the
date of this Indenture or thereafter created, incurred, assumed or guaranteed by the Company, other
than the following: (1) any Indebtedness as to which, in the instrument evidencing such
Indebtedness or pursuant to which such Indebtedness was issued, it is expressly provided that such
Indebtedness is subordinate in right of payment to all Indebtedness of the Company not expressly
subordinated to such Indebtedness; (2) any Indebtedness which by its terms refers explicitly to the
Securities and states that such Indebtedness shall not be senior, shall be pari
passu or shall be subordinated in right of payment to the Securities; and (3) with respect
to any series of Securities, any Indebtedness of the Company evidenced by Securities of the same or
of another series. Notwithstanding anything to the contrary in the foregoing, Senior Indebtedness
shall not include: (a) Indebtedness of or amounts owed by the Company for compensation to
employees, or for goods, materials or services purchased in the ordinary course of business, or (b)
Indebtedness of the Company to a Subsidiary of the Company.
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A Series of Securities means all securities denoted as part of the same series
authorized by or pursuant to a particular Board Resolution.
Short Term Rights has the meaning specified in Section 1704.
Significant Subsidiary means any Subsidiary which is a significant subsidiary (as
defined in Article I, Rule 1-02 of Regulation S-X, promulgated under the Securities Act of 1933, as
amended) of the Company.
Special Record Date for the payment of any Defaulted Interest on the Registered
Securities of or within any series means a date fixed by the Company pursuant to Section 307.
Stated Maturity, when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such Security or a coupon
representing such installment of interest as the fixed date on which the principal of such Security
or such installment of principal or interest is due and payable.
Subsidiary means, with respect to any Person, any corporation, limited liability
company, partnership or other entity of which a majority of (i) the voting power of the voting
equity securities or (ii) the outstanding equity interests are owned, directly or indirectly, by
such Person. For the purposes of this definition, voting equity securities means equity
securities having voting power for the election of directors, whether at all times or only so long
as no senior class of security has such voting power by reason of any contingency.
Trading Day means any day on which the NASDAQ Capital Market is open for business.
Trigger Events has the meaning specified in Section 1704.
Trust Indenture Act or TIA means the Trust Indenture Act of 1939, as
amended and as in force at the date as of which this Indenture was executed, except as provided in
Section 905.
Trustee means the Person named as the Trustee in the first paragraph of this
Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter Trustee shall mean or include each Person who is then a Trustee
hereunder; provided, however, that if at any time there is more than one such
Person, Trustee as used with respect to the Securities of any series shall mean only the Trustee
with respect to Securities of that series.
Unadjusted Distribution has the meaning specified in Section 1704.
United States means, unless otherwise specified with respect to any Securities
pursuant to Section 301, the United States of America (including the states and the District of
Columbia), its territories, its possessions and other areas subject to its jurisdiction.
United States Person means, unless otherwise specified with respect to any
Securities pursuant to Section 301, an individual who is a citizen or resident of the United
States, a
11
corporation, partnership or other entity created or organized in or under the laws of the
United States or an estate or trust the income of which is subject to United States Federal income
taxation regardless of its source.
Yield to Maturity means the yield to maturity, computed at the time of issuance of a
Security (or, if applicable, at the most recent redetermination of interest on such Security) and
as set forth in such Security in accordance with generally accepted United States bond yield
computation principles.
SECTION 102. Compliance Certificates and Opinions. Upon any application or request by
the Company to the Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers Certificate stating that all conditions precedent, if
any, provided for in this Indenture 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 Indenture
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 Indenture (including certificates delivered pursuant to Section 1008) shall include:
(1) a statement that each individual signing such certificate or opinion has read
such condition or covenant and the definitions herein relating thereto;
(2) 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;
(3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such condition or covenant has been complied with; and
(4) a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.
SECTION 103. Form of Documents Delivered to Trustee. 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 an Opinion of Counsel, or a certificate or representations by counsel,
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unless such officer knows, or in the exercise of reasonable care should know, that the opinion,
certificate or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such Opinion of Counsel or certificate or representations 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 stating that the information as to such factual matters is in
the possession 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.
Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.
SECTION 104. Acts of Holders.
(a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of the Outstanding Securities of all
series or one or more series, as the case may be, may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or by agents duly
appointed in writing. If Securities of a series are issuable as Bearer Securities, any request,
demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by Holders of Securities of such series may, alternatively, be
embodied in and evidenced by the record of Holders of Securities of such series voting in favor
thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the provisions of Article
Fifteen, or a combination of such instruments and any such record. Except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments or
record or both are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments and any such record (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the Act of the Holders signing such
instrument or instruments or so voting at any such meeting. Proof of execution of any such
instrument or of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company and any agent of the Trustee or the Company, if made in the manner provided
in this Section. The record of any meeting of Holders of Securities shall be proved in the manner
provided in Section 1506.
(b) The fact and date of the execution by any Person of any such instrument or writing may
be proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The
fact and date of the execution of any such instrument or writing, or the authority of the
Person executing the same, may also be proved in any other reasonable manner which the Trustee
deems sufficient.
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(c) The ownership of Registered Securities shall be proved by the Security Register. As
to any matter relating to beneficial ownership interests in any Global Security, the appropriate
depositorys records shall be dispositive for purposes of this Indenture.
(d) The ownership of Bearer Securities may be proved by the production of such Bearer
Securities or by a certificate executed, as depository, by any trust company, bank, banker or other
depository, wherever situated, if such certificate shall be deemed by the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on deposit with such
depository, or exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the Person holding such Bearer Securities, if such
certificate or affidavit is deemed by the Trustee to be satisfactory. The Trustee and the Company
may assume that such ownership of any Bearer Security continues until (1) another certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3) such Bearer Security
is surrendered in exchange for a Registered Security, or (4) such Bearer Security is no longer
Outstanding. The ownership of Bearer Securities may also be proved in any other manner which the
Trustee deems sufficient.
(e) If the Company shall solicit from the Holders of Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its
option, in or pursuant to a Board Resolution, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c),
such record date shall be the record date specified in or pursuant to such Board Resolution, which
shall be a date not earlier than the date 30 days prior to the first solicitation of Holders
generally in connection therewith and not later than the date such solicitation is completed. If
such a record date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before or after such record date, but only the Holders of record
at the close of business on such record date shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite proportion of Outstanding Securities have authorized
or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver
or other Act, and for that purpose the Outstanding Securities shall be computed as of such record
date; provided that no such authorization, agreement or consent by the Holders on such
record date shall be deemed effective unless it shall become effective pursuant to the provisions
of this Indenture not later than eleven months after the record date.
(f) Any request, demand, authorization, direction, notice, consent, waiver or other Act of
the Holder of any Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or upon the conversion thereof or
in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done
by the Trustee, any Security Registrar, any Paying Agent, any
Authenticating Agent or the Company in reliance thereon, whether or not notation of such
action is made upon such Security.
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SECTION 105. Notices, etc., to Trustee and Company. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other document provided or
permitted by this Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at
[_________________________] or at any other address previously furnished in writing to the
Company by the Trustee, Attention: [__________]; or
(2) the Company by the Trustee or by any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its principal
office specified in the first paragraph of this Indenture or at any other address previously
furnished in writing to the Trustee by the Company, Attention: [__________]; or
(3) either the Trustee or the Company, by the other party or by any Holder, shall
be sufficient for every purpose hereunder if given by facsimile transmission, receipt
confirmed by telephone followed by an original copy delivered by guaranteed overnight
courier; if to the Trustee at facsimile number [__________]; and if to the Company at
facsimile number [__________].
SECTION 106. Notice to Holders; Waiver. Where this Indenture provides for notice of
any event to Holders of Registered Securities by the Company or the Trustee, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each such Holder affected by such event, at his address as it
appears in the Security Register, not later than the latest date, if any, and not earlier than the
earliest date, if any, prescribed for the giving of such notice. In any case where notice to
Holders of Registered Securities 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 of Registered Securities or the sufficiency of any notice to
Holders of Bearer Securities given as provided herein. Any notice mailed to a Holder in the manner
herein prescribed shall be conclusively deemed to have been received by such Holder, whether or not
such Holder actually receives such notice.
If by reason of the suspension of or irregularities in regular mail service or by reason of
any other cause it shall be impracticable to give such notice by mail, then such notification to
Holders of Registered Securities as shall be made with the approval of the Trustee shall constitute
a sufficient notification to such Holders for every purpose hereunder.
Except as otherwise expressly provided herein or otherwise specified with respect to any
Securities pursuant to Section 301, where this Indenture provides for notice to Holders of Bearer
Securities of any event, such notice shall be sufficiently given if published in an Authorized
Newspaper in The City of New York and in such other city or cities as may be specified in such
Securities on a Business Day, such publication to be not later than the latest date, if any, and
not earlier than the earliest date, if any, prescribed for the giving of such notice. Any such
notice shall be deemed to have been given on the date of such publication or, if published more
than once, on the date of the first such publication.
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If by reason of the suspension of publication of any Authorized Newspaper or Authorized
Newspapers or by reason of any other cause it shall be impracticable to publish any notice to
Holders of Bearer Securities as provided above, then such notification to Holders of Bearer
Securities as shall be given with the approval of the Trustee shall constitute sufficient notice to
such Holders for every purpose hereunder. Neither the failure to give notice by publication to any
particular Holder of Bearer Securities as provided above, nor any defect in any notice so
published, shall affect the sufficiency of such notice with respect to other Holders of Bearer
Securities or the sufficiency of any notice to Holders of Registered Securities given as provided
herein.
Any request, demand, authorization, direction, notice, consent or waiver required or permitted
under this Indenture shall be in the English language, except that any published notice may be in
an official language of the country of publication.
Where this Indenture 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
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
SECTION 107. Counterparts; Effect of Headings and Table of Contents. This Indenture
may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same Indenture. The
Article and Section headings herein and the Table of Contents are for convenience only and shall
not affect the construction hereof.
SECTION 108. Successors and Assigns. All covenants and agreements in this Indenture by
the Company shall bind its successors and assigns, whether so expressed or not.
SECTION 109. Severability Clause. In case any provision in this Indenture or in any
Security or coupon shall be held invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
SECTION 110. Benefits of Indenture. Nothing in this Indenture or in the Securities or
coupons, if any, express or implied, shall give to any Person, other than the parties hereto, any
Security Registrar, any Paying Agent, any
Authenticating Agent and their successors hereunder and the Holders any benefit or any legal or
equitable right, remedy or claim under this Indenture.
SECTION 111. Governing Law. This Indenture and the Securities and coupons shall be
governed by and construed in accordance with the laws of the State of New York. This Indenture is
subject to the provisions of the TIA that are required to be part of this Indenture and shall, to
the extent applicable, be governed by such provisions.
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SECTION 112. Legal Holidays. In any case where any Interest Payment Date, Redemption
Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity of any Security or the
last date on which a Holder has the right to convert or exchange a Security shall not be a Business
Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or any
Security or coupon other than a provision in the Securities of any series which specifically states
that such provision shall apply in lieu hereof), payment of interest or principal (and premium or
Make-Whole Amount, if any) or conversion or exchange of such Security need not be made at such
Place of Payment on such date, but (except as otherwise provided in the supplemental indenture with
respect to such Security) may be made on the next succeeding Business Day at such Place of Payment
with the same force and effect as if made on the Interest Payment Date, Redemption Date, Repayment
Date or sinking fund payment date, or at the Stated Maturity or Maturity, or on such last day for
conversion or exchange, provided that no interest shall accrue on the amount so payable for the
period from and after such Interest Payment Date, Redemption Date, Repayment Date, sinking fund
payment date, Stated Maturity or Maturity, as the case may be.
SECTION 113. Limited Liability; Immunity of Stockholders, Directors, Officers and Agents of
the Company. Notwithstanding any other provision of this Indenture or of the Securities of any
series to the contrary, no recourse under or upon any obligation, covenant or agreement contained
in this Indenture or in any Security, or for the payment of any sums due on account of any
indebtedness evidenced thereby, including without limitation principal, premium or interest, if
any, or for any claim based on this Indenture or any Security or otherwise in respect of this
Indenture or any Security, shall be had, whether by levy or execution or otherwise, against (i) the
Company, the Companys assets or against any past, present or future stockholder, employee,
officer, director or agent, as such, of the Company or any successor, either directly or through
the Company or any successor, under any rule of law, statute, constitutional provision or by the
enforcement of any assessment or penalty, or by any legal or equitable proceeding or otherwise, nor
shall any such parties be personally liable for any such amounts, obligations or claims, or liable
for any deficiency judgment based thereon or with respect thereto, it being expressly understood
that the sole remedies hereunder or under any other document with respect to the Securities against
such parties with respect to such amounts, obligations or claims shall be against the Company and
that all such liability of and recourse against such parties is expressly waived and released by
the acceptance of the Securities by the Holders and as part of the consideration for the issue of
the Securities.
SECTION 114. Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof which is required or deemed to be included in
this Indenture by any of the provisions of the Trust Indenture Act, such required provision shall
control. If any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be.
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ARTICLE TWO SECURITIES FORMS
SECTION 201. Forms of Securities. The Registered Securities, if any, of each series
and the Bearer Securities, if any, of each series and related coupons shall be substantially in the
form of Exhibit A hereto or in such other form as shall be established in one or more
indentures supplemental hereto or approved from time to time by or pursuant to a Board Resolution
in accordance with Section 301, shall have such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture or any indenture supplemental
hereto, and may have such letters, numbers or other marks of identification or designation and such
legends or endorsements placed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Indenture, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any
over-the-counter market or securities exchange, on which the Securities may be quoted or listed, or
to conform to usage.
Unless otherwise specified as contemplated by Section 301, Bearer Securities shall have
interest coupons attached.
The definitive Securities and coupons shall be printed, lithographed or engraved or produced
by any combination of these methods on a steel engraved border or steel engraved borders or
mechanically reproduced on safety paper or may be produced in any other manner, all as determined
by the officers executing such Securities or coupons, as evidenced by their execution of such
Securities or coupons.
SECTION 202. Form of Trustees Certificate of Authentication. Subject to Section 611,
the Trustees certificate of authentication shall be in substantially the following form:
This is one of the Securities of the series designated therein referred to in the within-
mentioned Indenture.
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Authorized Signatory |
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SECTION 203. Securities Issuable in Global Form. If Securities of or within a series
are issuable in the form of one or more Global Securities, then, notwithstanding clause (8) of
Section 301 and the provisions of Section 302, any such Global Security or Securities may provide
that it or they shall represent the aggregate amount of all Outstanding Securities of such series
(or such lesser amount as is permitted by the terms thereof) from time to time endorsed thereon and
may also provide that the aggregate amount of Outstanding Securities of such series represented
thereby may from time to time be increased or decreased to reflect exchanges. Any endorsement of
any Global Security to reflect the amount, or any increase or decrease in the amount, or changes in
the rights of Holders thereof, of Outstanding Securities represented thereby shall be made (or
caused to be made) by the Trustee in such manner or by such Person or
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Persons as shall be specified
therein or in the Company Order to be delivered to the Trustee pursuant to Section 303 or 304.
Subject to the provisions of Section 303 and, if applicable, Section 304, the Trustee shall deliver
and redeliver any Global Security in permanent global form in the manner and upon instructions
given by the Person or Persons specified therein or in the applicable Company Order. If a Company
Order pursuant to Section 303 or 304 has been, or simultaneously is, delivered, any instructions by
the Company with respect to endorsement or delivery or redelivery of a Global Security shall be in
writing but need not comply with Section 102 and need not be accompanied by an Opinion of Counsel.
The provisions of the last sentence of Section 303 shall apply to any Security represented by
a Global Security if such Security was never issued and sold by the Company and the Company
delivers to the Trustee the Global Security together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Securities represented thereby, together with the written
statement contemplated by the last sentence of Section 303.
Notwithstanding the provisions of Section 307, unless otherwise specified as contemplated by
Section 301, payment of principal of and any premium or Make-Whole Amount, if any, and interest on
any Global Security in permanent global form shall be made to the registered Holder thereof.
Notwithstanding the provisions of Section 308 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat as
the Holder of such principal amount of Outstanding Securities represented by a permanent
Global Security (i) in the case of a permanent Global Security in registered form, the Holder of
such permanent Global Security in registered form, or (ii) in the case of a permanent Global
Security in bearer form, Euroclear or Clearstream.
Any Global Security authenticated and delivered hereunder shall bear a legend in substantially
the following form:
This Security is a Global Security within the meaning set forth in the Indenture hereinafter
referred to and is registered in the name of a Depository or a nominee of a Depository. This
Security is exchangeable for Securities registered in the name of a person other than the
Depository or its nominee only in the limited circumstances described in the Indenture, and may not
be transferred except as a whole by the Depository to a nominee of the Depository or by a nominee
of the Depository to the Depository or another nominee of the Depository or by the Depository or
its nominee to a successor Depository or its nominee.
ARTICLE THREE THE SECURITIES
SECTION 301. Amount Unlimited; Issuable in Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series, each of which shall be authorized pursuant
to Board Resolutions of the Company. There shall be established in one or more Board
19
Resolutions
or pursuant to authority granted by one or more Board Resolutions and, subject to Section 303, set
forth in an Officers Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series:
(1) The title of the Securities of the series, including CUSIP numbers (which
shall distinguish the Securities of such series from all other series of Securities);
(2) Any limit upon the aggregate principal amount of the Securities of the series
that may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or upon conversion of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section 304, 305,
306, 906, 1107 or 1305) and the minimum authorized denominations with respect to the
Securities of such series;
(3) The price (expressed as a percentage of the principal amount thereof) at which
such Securities will be issued and, if other than the principal amount thereof, the portion
of the principal amount thereof payable upon declaration of acceleration of the maturity
thereof or (if applicable) the portion of the principal amount of such Securities that is
convertible into Common Stock or Preferred Stock or the method by which any such portion
shall be determined;
(4) If convertible, the terms on which such Securities are convertible, including
the initial conversion price or rate and the conversion period and any applicable
limitations on the ownership or transferability of Common Stock or Preferred Stock
receivable on conversion;
(5) The date or dates, or the method for determining such date or dates, on which
the principal of such Securities will be payable;
(6) The rate or rates (which may be fixed or variable), or the method by which such
rate or rates shall be determined, at which such Securities will bear interest, if any;
(7) The date or dates, or the method for determining such date or dates, from which
any such interest will accrue, the Interest Payment Dates on which any such interest will be
payable, the Regular Record Dates for such Interest Payment Dates, or the method by which
such dates shall be determined, the Persons to whom such interest shall be payable, and the
basis upon which interest shall be calculated if other than that of a 360-day year of twelve
30-day months;
(8) The Make-Whole Amount, if any, or method for determining the Make-Whole Amount,
if any, payable with respect to such Securities, and the terms upon which such amount, if
any, will be payable;
(9) The place or places where the principal of (and premium or Make-Whole Amount,
if any) and interest, if any, on such Securities will be payable, where such Securities may
be surrendered for registration of transfer or conversion or exchange and
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where notices or demands to or upon the Company in respect of such Securities and this Indenture may be
served;
(10) The period or periods, if any, within which, the price or prices at which and
the other terms and conditions upon which such Securities may, pursuant to any optional or
mandatory redemption provisions, be redeemed, as a whole or in part, at the option of the
Company;
(11) The obligation, if any, of the Company to redeem, repay or purchase such
Securities pursuant to any sinking fund or analogous provision or at the option of a Holder
thereof, and the period or periods within which, the price or prices at which and the other
terms and conditions upon which such Securities will be redeemed, repaid or purchased, as a
whole or in part, pursuant to such obligation;
(12) If other than Dollars, the currency or currencies in which such Securities are
denominated and payable, which may be a foreign currency or units of two or more foreign
currencies or a composite currency or currencies, the manner of determining the equivalent
thereof in Dollars for purposes of the definition of Outstanding in Section 101, and the
terms and conditions relating thereto;
(13) Whether the amount of payments of principal of (and premium or Make-Whole
Amount, if any, including any amount due upon redemption, if any) or interest on such
Securities may be determined with reference to an index, formula or other method
(which index, formula or method may, but need not be, based on the yield on or trading
price of other securities, including United States Treasury securities or on a currency,
currencies, currency unit or units, or composite currency or currencies) and the manner in
which such amounts shall be determined;
(14) Whether the principal of (and premium or Make-Whole Amount, if any) or
interest on the Securities of the series are to be payable, at the election of the Company
or a Holder thereof, in a currency or currencies, currency unit or units or composite
currency or currencies other than that in which such Securities are denominated or stated to
be payable, the period or periods within which, and the terms and conditions upon which,
such election may be made, and the time and manner of, and identity of the exchange rate
agent with responsibility for, determining the exchange rate between the currency or
currencies, currency unit or units or composite currency or currencies in which such
Securities are denominated or stated to be payable and the currency or currencies, currency
unit or units or composite currency or currencies in which such Securities are to be so
payable;
(15) Provisions, if any, granting special rights to the Holders of Securities of
the series upon the occurrence of such events as may be specified;
(16) Any deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to Securities of the series, whether or not such
Events of Default or covenants are consistent with the Events of Default or covenants set
forth herein;
21
(17) Whether and under what circumstances the Company will pay any additional
amounts on such Securities in respect of any tax, assessment or governmental charge and, if
so, whether the Company will have the option to redeem such Securities in lieu of making
such payment;
(18) Whether Securities of the series are to be issuable as Registered Securities,
Bearer Securities (with or without coupons) or both, any restrictions applicable to the
offer, sale or delivery of Bearer Securities and the terms upon which Bearer Securities of
the series may be exchanged for Registered Securities of the series and vice versa (if
permitted by applicable laws and regulations), whether any Securities of the series are to
be issuable initially in temporary global form and whether any Securities of the series are
to be issuable in permanent global form with or without coupons and, if so, whether
beneficial owners of interests in any such permanent global Security may, or shall be
required to, exchange such interests for Securities of such series and of like tenor of any
authorized form and denomination and the circumstances under which any such exchanges may,
or shall be required to, occur, if other than in the manner provided in the Indenture, and,
if Registered Securities of the series are to be issuable as a Global Security, the identity
of the depository for such series;
(19) The date as of which any Bearer Securities of the series and any temporary
Global Security representing outstanding Securities of the series shall be dated if other
than the date of original issuance of the first Security of the series to be issued;
(20) The Person to whom any interest on any Registered Security of the series shall
be payable, if other than the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such
interest the manner in which, or the Person to whom, any interest on any Bearer Security of
the series shall be payable, if otherwise than upon presentation and surrender of the
coupons appertaining thereto as they severally mature, and the extent to which, or the
manner in which, any interest payable on a temporary Global Security on an Interest Payment
Date will be paid if other than in the manner provided herein; provided,
however, in each case, that the manner of determining such Person or making such
payment shall be acceptable to the Trustee (as not imposing on it any undue administrative
burden or risk of liability);
(21) The applicability, if any, of the Defeasance and Covenant Defeasance
provisions of Article Fourteen hereof to the Securities of the series;
(22) The obligation, if any, of the Company to permit the conversion of the
Securities of such series into Common Stock or Preferred Stock, as the case may be, and the
terms and conditions upon which such conversion shall be effected (including, without
limitation, the initial conversion price or rate, the conversion period, any adjustment of
the applicable conversion price and any requirements relative to the reservation of such
shares for purposes of conversion);
(23) If the Securities of such series are to be issuable in definitive form
(whether upon original issue or upon exchange of a temporary Security of such series)
22
only upon receipt of certain certificates or other documents or satisfaction of other conditions,
then the form and/or terms of such certificates, documents or conditions;
(24) Designation of the Trustee, if different from the Trustee under the Indenture,
with respect to such series and the terms applicable to such Trustee (which shall be
accepted by such Trustee by its execution and delivery of a supplemental indenture as
provided therein); and
(25) Any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture).
All Securities of any one series and the coupons appertaining to any Bearer Securities of such
series shall be substantially identical except, in the case of Registered Securities, as to
denomination and except as may otherwise be provided in or pursuant to such Board Resolution
(subject to Section 303) and set forth in such Officers Certificate or in any such indenture
supplemental hereto. All Securities of any one series need not be issued at the same time and,
unless otherwise provided, a series may be reopened, without the consent of the Holders, for
issuances of additional Securities of such series.
If any of the terms of the Securities of any series are established by action taken pursuant
to one or more Board Resolutions, a copy of an appropriate record of such action(s) shall be
certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at
or prior to the delivery of the Officers Certificate setting forth the terms of the Securities of
such series.
SECTION 302. Denominations. The Securities of each series shall be issuable in such
denominations as shall be specified as contemplated by Section 301. With respect to Securities of
any series denominated in Dollars, in the absence of any such provisions with respect to the
Securities of any series, the Securities of such series, other than Global Securities (which may be
of any denomination), shall be issuable in denominations of $1,000 and any integral multiple
thereof or the equivalent amounts thereof in the case of Securities denominated in the Foreign
Currency or currency unit.
SECTION 303. Execution, Authentication, Delivery and Dating. The Securities and any
coupons appertaining thereto shall be executed on behalf of the Company by its Chairman of the
Board, its Chief Executive Officer, its President, or one of its Vice Presidents, under its
corporate seal reproduced thereon, and attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Securities and coupons may be manual or
facsimile signatures of the present or any future such authorized officer and may be imprinted or
otherwise reproduced on the Securities.
Securities and coupons bearing the manual or facsimile signatures of individuals who were at
any time the proper officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities or coupons.
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At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series, together with any coupon appertaining thereto,
executed by the Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities (accompanied by a copy of the Board Resolution and
the Officers Certificate or supplemental indenture contemplated by Section 301), and the Trustee
in accordance with the Company Order shall authenticate and deliver such Securities;
provided, however, that, in connection with its original issuance, no Bearer
Security shall be mailed or otherwise delivered to any location in the United States; and
provided further that, unless otherwise specified with respect to any series of
Securities pursuant to Section 301, a Bearer Security may be delivered in connection with its
original issuance only if the Person entitled to receive such Bearer Security shall have furnished
a certificate to Euroclear or Clearstream, as the case may be, in the form set forth in Exhibit
B-1 to this Indenture or such other certificate as may be specified by the Company with respect
to any series of Securities pursuant to Section 301, dated no earlier than 15 days prior to the
earlier of the date on which such Bearer Security is delivered and the date on which any temporary
Security first becomes exchangeable for such Bearer Security in accordance with the terms of such
temporary Security and this Indenture. If any Security shall be represented by a permanent Global
Security, then, for purposes of this Section and Section 304, the notation of a beneficial owners
interest therein upon original issuance of such Security or upon exchange of a portion of a
temporary Global Security shall be deemed to be delivery in connection with its original issuance
of such beneficial owners interest in such permanent Global Security. Except as permitted by
Section 306, the Trustee shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then matured have been detached and canceled.
If all the Securities of any series are not to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit, such Company Order
may set forth procedures acceptable to the Trustee for the issuance of such Securities and
determining the terms of particular Securities of such series, such as interest rate or formula,
maturity date, date of issuance and date from which interest shall accrue. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to TIA Section 315(a) through
315(d)) shall be fully protected in relying upon,
(i) an Opinion of Counsel stating that
(a) the form or forms of such Securities and any coupons have been
established in conformity with the provisions of this Indenture;
(b) the terms of such Securities and any coupons have been
established in conformity with the provisions of this Indenture; and
(c) such Securities, together with any coupons appertaining
thereto, when completed by appropriate insertions and executed and delivered
by the Company to the Trustee for authentication in accordance with this
Indenture, authenticated and delivered by the Trustee in accordance with
this Indenture and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will
24
constitute legal,
valid and legally binding obligations of the Company, enforceable in
accordance with their terms, subject to applicable bankruptcy, insolvency,
fraudulent transfer, reorganization and other similar laws of general
applicability relating to or affecting the enforcement of creditors rights
generally and to general equitable principles; and
(ii) an Officers Certificate stating that all conditions precedent
provided for in this Indenture relating to the issuance of the Securities have been
complied with and that, to the best of the knowledge of the signers of such
certificate, that no Event of Default with respect to any of the Securities shall
have occurred and be continuing.
If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities (or to enter into the related supplemental indenture, if applicable)
if the issue of such Securities pursuant to this Indenture will affect the Trustees own rights,
duties, obligations or immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all the
Securities of any series are not to be issued at one time, it shall not be necessary to deliver an
Officers Certificate otherwise required pursuant to Section 301 or a Company Order, or an Opinion
of Counsel or an Officers Certificate otherwise required pursuant to the preceding paragraph at
the time of issuance of each Security of such series, but such order, opinion and
certificates, with appropriate modifications to cover such future issuances, shall be
delivered at or before the time of issuance of the first Security of such series.
Each Registered Security shall be dated the date of its authentication and each Bearer
Security shall be dated as of the date specified as contemplated by Section 301.
No Security or coupon shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security or Security to which such coupon
appertains a certificate of authentication substantially in the form provided for herein duly
executed by the Trustee (subject to Section 611) by manual signature of an authorized signatory,
and such certificate upon any Security shall be conclusive evidence, and the only evidence, that
such Security has been duly authenticated and delivered hereunder and is entitled to the benefits
of this Indenture. Notwithstanding the foregoing, if any Security (including a Global Security)
shall have been authenticated and delivered hereunder but never issued and sold by the Company, and
the Company shall deliver such Security to the Trustee for cancellation as provided in Section 309
together with a written statement (which need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by
the Company, for all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the benefits of this
Indenture.
SECTION 304. Temporary Securities.
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(a) Pending the preparation of definitive Securities of any series, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities
which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued, in registered form, or, if authorized, in bearer form with one or more coupons or without
coupons, and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as conclusively evidenced by their execution of
such Securities. In the case of Securities of any series, such temporary Securities may be in
global form.
Except in the case of temporary Global Securities (which shall be exchanged as otherwise
provided herein or as otherwise provided in or pursuant to a Board Resolution or supplemental
indenture pursuant to Section 301), if temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without unreasonable delay. After
the preparation of definitive Securities of such series, the temporary Securities of such series
shall be exchangeable for definitive Securities of such series upon surrender of the temporary
Securities of such series at the office or agency of the Company in a Place of Payment for that
series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series (accompanied by any non-matured coupons appertaining thereto), the Company
shall execute (in accordance with a Company Order delivered at or prior to the authentication of
the first definitive security to such series) and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of
the same series of authorized denominations; provided, however, that no
definitive Bearer Security shall be delivered in exchange for a temporary Registered Security; and
provided further that a definitive Bearer Security shall be delivered in exchange
for a temporary Bearer Security only in compliance with the conditions set forth in Section 303.
Until so exchanged, the temporary Securities of any series shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of such series.
(b) Unless otherwise provided in or pursuant to a Board Resolution or supplemental
indenture pursuant to Section 301, the following provisions of this Section 304(b) shall govern the
exchange of temporary Securities other than through the facilities of the DTC. If any such
temporary Security is issued in global form, then such temporary Global Security shall, unless
otherwise provided therein, be delivered to the London office of a depository or common depository
upon and pursuant to written direction of the Company (the Common Depository), for the benefit of
Euroclear and Clearstream, for credit to the respective accounts of the beneficial owners of such
Securities (or to such other accounts as they may direct).
Without unnecessary delay but in any event not later than the date specified in, or determined
pursuant to the terms of, any such temporary Global Security (the Exchange Date), the Company
shall deliver to the Trustee definitive Securities, in aggregate principal amount equal to the
principal amount of such temporary Global Security, executed by the Company. On or after the
Exchange Date, such temporary Global Security shall be surrendered by the Common Depository to the
Trustee, as the Companys agent for such purpose, to be exchanged, in whole or from time to time in
part, for definitive Securities without charge, and the Trustee shall authenticate and deliver, in
exchange for each portion of such temporary Global Security, an equal aggregate principal amount of
definitive Securities of the same series of authorized
26
denominations and of like tenor as the
portion of such temporary Global Security to be exchanged. The definitive Securities to be
delivered in exchange for any such temporary Global Security shall be in bearer form, registered
form, permanent global bearer form or permanent global registered form, or any combination thereof,
as specified as contemplated by Section 301, and, if any combination thereof is so specified, as
requested by the beneficial owner thereof (as directed by or pursuant to information provided by
the Common Depository); provided, however, that, unless otherwise specified in such
temporary Global Security, upon such presentation by the Common Depository, such temporary Global
Security shall be accompanied by a certificate dated the Exchange Date or a subsequent date and
signed by Euroclear as to the portion of such temporary Global Security held for its account then
to be exchanged and a certificate dated the Exchange Date or a subsequent date and signed by
Clearstream as to the portion of such temporary Global Security held for its account then to be
exchanged, each in the form set forth in Exhibit B-2 to this Indenture or in such other
form as may be established pursuant to Section 301; and provided further that
definitive Bearer Securities shall be delivered in exchange for a portion of a temporary Global
Security only in compliance with the requirements of Section 303.
Unless otherwise specified in such temporary Global Security, the interest of a beneficial
owner of Securities of a series in a temporary Global Security shall be exchanged for definitive
Securities of the same series and of like tenor following the Exchange Date when the account holder
instructs Euroclear or Clearstream, as the case may be, to request such exchange on his behalf and
delivers to Euroclear or Clearstream, as the case may be, a certificate in the form set
forth in Exhibit B-1 to this Indenture (or in such other form as may be established
pursuant to Section 301), dated no earlier than 15 days prior to the Exchange Date, copies of which
certificate shall be available from the offices of Euroclear and Clearstream, the Trustee, any
Authenticating Agent appointed for such series of Securities and each Paying Agent. Unless
otherwise specified in such temporary Global Security, any such exchange shall be made free of
charge to the beneficial owners of such temporary Global Security, except that a Person receiving
definitive Securities must bear the cost of insurance, postage, transportation and the like unless
such Person takes delivery of such definitive Securities in person at the offices of Euroclear or
Clearstream. Definitive Securities in bearer form to be delivered in exchange for any portion of a
temporary Global Security shall be delivered only to an address located outside the United States.
Until exchanged in full as hereinabove provided, the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as definitive Securities of
the same series and of like tenor authenticated and delivered hereunder, except that, unless
otherwise specified as contemplated by Section 301, interest payable on a temporary Global Security
on an Interest Payment Date for Securities of such series occurring prior to the applicable
Exchange Date shall be payable to Euroclear and Clearstream on such Interest Payment Date upon
delivery by Euroclear and Clearstream to the Trustee of a certificate or certificates in the form
set forth in Exhibit B-2 to this Indenture (or in such other forms as may be established
pursuant to Section 301), for credit without further interest on or after such Interest Payment
Date to the respective accounts of Persons who are the beneficial owners of such temporary Global
Security on such Interest Payment Date and who have each delivered to Euroclear or Clearstream, as
the case may be, a certificate dated no earlier than 15 days prior to the Interest Payment Date
occurring prior to such Exchange Date in the form set forth as Exhibit
27
B-1 to this Indenture (or in such other forms as may be established pursuant to
Section 301). Notwithstanding anything to the contrary herein contained, the certifications made
pursuant to this paragraph shall satisfy the certification requirements of the preceding two
paragraphs of this Section 304(b) and of the third paragraph of Section 303 of this Indenture and
the interests of the Persons who are the beneficial owners of the temporary Global Security with
respect to which such certification was made will be exchanged for definitive Securities of the
same series and of like tenor on the Exchange Date or the date of certification if such date occurs
after the Exchange Date, without further act or deed by such beneficial owners. Except as
otherwise provided in this paragraph, no payments of principal or interest owing with respect to a
beneficial interest in a temporary Global Security will be made unless and until such interest in
such temporary Global Security shall have been exchanged for an interest in a definitive Security.
Any interest so received by Euroclear and Clearstream and not paid as herein provided shall be
returned to the Trustee prior to the expiration of two years after such Interest Payment Date in
order to be repaid to the Company.
With respect to Exhibit B-1 or B-2 to this Indenture, the Company may, in its discretion and
if required or desirable under applicable law, substitute one or more other forms of such exhibits
for such exhibits, eliminate the requirement that any or all certificate be provided, or change the
time that any certificate may be required, provided that such substitute form or
forms or notice of elimination or change of such certification requirement have theretofore been
delivered to the Trustee with a Company Request and such form or forms, elimination or change is
reasonably acceptable to the Trustee.
SECTION 305. Registration, Registration of Transfer, Conversion and Exchange. The
Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any office or
agency of the Company in a Place of Payment a register for each series of Securities (the registers
maintained in such office or in any such office or agency of the Company in a Place of Payment
being herein sometimes referred to collectively as the Security Register) in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for the registration of
Registered Securities and of transfers of Registered Securities. The Security Register shall be in
written form or any other form capable of being converted into written form within a reasonable
time. The Trustee, at its Corporate Trust Office, is hereby initially appointed Security
Registrar for the purpose of registering Registered Securities and transfers of Registered
Securities on such Security Register as herein provided. In the event that the Trustee shall cease
to be Security Registrar, it shall have the right to examine, and be provided a copy of, the
Security Register at all reasonable times.
Subject to the provisions of this Section 305, upon surrender for registration of transfer of
any Registered Security of any series at any office or agency of the Company in a Place of Payment
for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Registered Securities of the same
series, of any authorized denominations and of a like aggregate principal amount, bearing a number
not contemporaneously outstanding, and containing identical terms and provisions.
28
Subject to the
provisions of this Section 305, at the option of the Holder, Registered Securities of any series
may be exchanged for other Registered Securities of the same series, of any authorized denomination
or denominations and of a like aggregate principal
amount, containing identical terms and provisions, upon surrender of the Registered Securities
to be exchanged at any such office or agency. Whenever any such Registered Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Registered Securities which the Holder making the exchange is entitled to receive.
Unless otherwise specified with respect to any series of Securities as contemplated by Section 301,
Bearer Securities may not be issued in exchange for Registered Securities.
If (but only if) permitted by the applicable Board Resolution and (subject to Section 303) set
forth in the applicable Officers Certificate, or in any indenture supplemental hereto, delivered
as contemplated by Section 301, at the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized denominations and of a
like aggregate principal amount and tenor, upon surrender of the Bearer Securities to be exchanged
at any such office or agency, with all unmatured coupons and all matured coupons in default thereto
appertaining. If the Holder of a Bearer Security is unable to produce any such unmatured coupon or
coupons or matured coupon or coupons in default, any such permitted exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company (or to the Trustee
for the Security in case of matured coupons in default) in an amount equal to the face amount of
such missing coupon or coupons, or the surrender of such missing coupon or coupons may be waived by
the Company and the Trustee if there is furnished to them such security or indemnity as they may
require to save each of them and any Paying Agent harmless. If thereafter the Holder of such
Security shall surrender to any Paying Agent any such missing coupon in respect of which such a
payment shall have been made, such Holder shall be entitled to receive the amount of such payment;
provided, however, that, except as otherwise provided in Section 1002, interest
represented by coupons shall be payable only upon presentation and surrender of those coupons at an
office or agency located outside the United States. Notwithstanding the foregoing, in case a
Bearer Security of any series is surrendered at any such office or agency in a permitted exchange
for a Registered Security of the same series and like tenor after the close of business at such
office or agency on (i) any Regular Record Date and before the opening of business at such office
or agency on the relevant Interest Payment Date, or (ii) any Special Record Date and before the
opening of business at such office or agency on the related proposed date for payment of Defaulted
Interest, such Bearer Security shall be surrendered without the coupon relating to such Interest
Payment Date or proposed date for payment, as the case may be, and interest or Defaulted Interest,
as the case may be, will not be payable on such Interest Payment Date or proposed date for payment,
as the case may be, in respect of the Registered Security issued in exchange for such Bearer
Security, but will be payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.
Notwithstanding the foregoing, except as otherwise specified as contemplated by Section 301,
any permanent Global Security shall be exchangeable only as provided in this paragraph. If the
depository for any permanent Global Security is DTC, then, unless the terms of such Global Security
expressly permit such Global Security to be exchanged in whole or in part for definitive
29
Securities, a Global Security may be transferred, in whole but not in part, only to a nominee of
DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such Global Security selected or
approved by the Company or to a nominee of such successor to DTC. If at any time
DTC notifies the Company that it is unwilling or unable to continue as depository for the
applicable Global Security or Securities or if at any time DTC ceases to be a clearing agency
registered under the Exchange Act if so required by applicable law or regulation, the Company shall
appoint a successor depository with respect to such Global Security or Securities. If (w) a
successor depository for such Global Security or Securities is not appointed by the Company within
90 days after the Company receives such notice or becomes aware of such unwillingness, inability or
ineligibility, (x) the Company delivers to the Trustee for Securities of such series in registered
form a Company Order stating that the Securities of such series shall be exchangeable, (y) an Event
of Default has occurred and is continuing and the beneficial owners representing a majority in
principal amount of the applicable series of Securities represented by such Global Security or
Securities advise DTC to cease acting as depository for such Global Security or Securities or (z)
the Company, in its sole discretion, determines at any time that all Outstanding Securities (but
not less than all) of any series issued or issuable in the form of one or more Global Securities
shall no longer be represented by such Global Security or Securities, then the Company shall
execute, and the Trustee shall authenticate and deliver definitive Securities of like series, rank,
tenor and terms in definitive form in an aggregate principal amount equal to the principal amount
of such Global Security or Securities. If any beneficial owner of an interest in a permanent
global Security is otherwise entitled to exchange such interest for Securities of such series and
of like tenor and principal amount of another authorized form and denomination, as specified as
contemplated by Section 301 and provided that any applicable notice provided in the permanent
Global Security shall have been given, then without unnecessary delay but in any event not later
than the earliest date on which such interest may be so exchanged, the Company shall execute, and
the Trustee shall authenticate and deliver definitive Securities in aggregate principal amount
equal to the principal amount of such beneficial owners interest in such permanent Global
Security. On or after the earliest date on which such interests may be so exchanged, such
permanent Global Security shall be surrendered for exchange by DTC or such other depository as
shall be specified in the Company Order with respect thereto to the Trustee, as the Companys agent
for such purpose; provided, however, that no such exchanges may occur during a
period beginning at the opening of business 15 days before any selection of Securities to be
redeemed and ending on the relevant Redemption Date if the Security for which exchange is requested
may be among those selected for redemption; and provided further that no Bearer
Security delivered in exchange for a portion of a permanent Global Security shall be mailed or
otherwise delivered to any location in the United States. If a Registered Security is issued in
exchange for any portion of a permanent Global Security after the close of business at the office
or agency where such exchange occurs on (i) any Regular Record Date and before the opening of
business at such office or agency on the relevant Interest Payment Date, or (ii) any Special Record
Date and the opening of business at such office or agency on the related proposed date for payment
of Defaulted Interest, interest or Defaulted Interest, as the case may be, will not be payable on
such Interest Payment Date or proposed date for payment, as the case may be, in respect of such
Registered Security, but will be payable on such Interest Payment Date or proposed date for
payment, as the case may be, only to the Person to whom interest in respect of such portion of such
permanent Global Security is payable in accordance with the provisions of this Indenture.
30
All Securities issued upon any registration of transfer or conversion or exchange of
Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled
to the same benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or conversion or exchange.
Every Registered Security presented or surrendered for registration of transfer or for
conversion, exchange or redemption shall (if so required by the Company or the Security Registrar)
be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing.
No service charge shall be made to the Holder for any registration of transfer or conversion
or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any registration of transfer or
conversion or exchange of Securities, other than exchanges pursuant to Section 304, 906, 1107 or
1305 not involving any transfer.
The Company or the Trustee, as applicable, shall not be required (i) to issue, register the
transfer of or exchange any Security if such Security may be among those selected for redemption
during a period beginning at the opening of business 15 days before selection of the Securities to
be redeemed under Section 1103 and ending at the close of business on (A) if such Securities are
issuable only as Registered Securities, the day of the mailing of the relevant notice of redemption
and (B) if such Securities are issuable as Bearer Securities, the day of the first publication of
the relevant notice of redemption or, if such Securities are also issuable as Registered Securities
and there is no publication, the mailing of the relevant notice of redemption, or (ii) to register
the transfer of or exchange any Registered Security so selected for redemption in whole or in part,
except, in the case of any Registered Security to be redeemed in part, the portion thereof not to
be redeemed, or (iii) to exchange any Bearer Security so selected for redemption except that such a
Bearer Security may be exchanged for a Registered Security of that series and like tenor,
provided that such Registered Security shall be simultaneously surrendered for redemption,
or (iv) to issue, register the transfer of or exchange any Security which has been surrendered for
repayment at the option of the Holder, except the portion, if any, of such Security not to be so
repaid.
Furthermore, notwithstanding any other provision of this Section 305, the Company will not be
required to exchange any Securities if, as a result of the exchange, the Company would suffer
adverse consequences under any United States law or regulation.
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated
Security or a Security with a mutilated coupon appertaining to it is surrendered to the Trustee or
the Company, together with, in proper cases, such security or indemnity as may be required by the
Company or the Trustee to save each of them or any agent of either of them harmless, the Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series and principal amount, containing identical terms and provisions and bearing a
number not contemporaneously outstanding, with coupons corresponding to the coupons, if any,
appertaining to the surrendered Security.
31
If there shall be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or coupon, and (ii) such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security or coupon has been
acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Security or in exchange for
the Security to which a destroyed, lost or stolen coupon appertains (with all appurtenant coupons
not destroyed, lost or stolen), a new Security of the same series and principal amount, containing
identical terms and provisions and bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to such destroyed, lost or stolen Security or to
the Security to which such destroyed, lost or stolen coupon appertains.
Notwithstanding the provisions of the previous two paragraphs, in case any such mutilated,
destroyed, lost or stolen Security or coupon has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, with coupons corresponding to the
coupons, if any, appertaining to such destroyed, lost or stolen Security or to the Security to
which such destroyed, lost or stolen coupon appertains, pay such Security or coupon if the
applicant for such payment shall furnish to the Company and the Trustee for such Security such
security or indemnity as may be required by them to save each of them harmless, and in the case of
destruction, loss or theft, evidence satisfactory to the Company and Trustee and any agent of any
of them of the destruction, loss or theft of such Security and the ownership thereof;
provided, however, that payment of principal of (and premium or Make-Whole Amount,
if any), and interest, if any, on, Bearer Securities shall, except as otherwise provided in Section
1002, be payable only at an office or agency located outside the United States and, unless
otherwise specified as contemplated by Section 301, any interest on Bearer Securities shall be
payable only upon presentation and surrender of the coupons appertaining thereto.
Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security of any series with its coupons, if any, issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security, or in exchange for a Security to which a destroyed,
lost or stolen coupon appertains, shall constitute an original additional contractual obligation of
the Company, whether or not the destroyed, lost or stolen Security and its coupons, if any, or the
destroyed, lost or stolen coupon shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities
of that series and their coupons, if any, duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities or coupons.
SECTION 307. Payment of Interest; Interest Rights Preserved. Except as otherwise specified with respect to a series of
Securities in accordance with the
provisions of
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Section 301, interest on any Registered Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name
that Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest payment at the office or agency of the Company maintained for
such purpose pursuant to Section 1002; provided, however, that each installment of
interest on any Registered Security may at the Companys option be paid by (i) mailing a check for
such interest, payable to or upon the written order of the Person entitled thereto pursuant to
Section 308, to the address of such Person as it appears on the Security Register or (ii) transfer
to an account maintained by the payee located inside the United States.
Unless otherwise provided as contemplated by Section 301 with respect to the Securities of any
series, payment of interest may be made, in the case of a Bearer Security, by transfer to an
account maintained by the payee with a bank located outside the United States.
Unless otherwise provided as contemplated by Section 301, every permanent Global Security will
provide that interest, if any, payable on any Interest Payment Date will be paid to DTC, Euroclear
and/or Clearstream, as the case may be, with respect to that portion of such permanent Global
Security held for its account by Cede & Co. or the Common Depository, as the case may be, for the
purpose of permitting such party to credit the interest received by it in respect of such permanent
Global Security to the accounts of the beneficial owners thereof.
In case a Bearer Security of any series is surrendered in exchange for a Registered Security
of such series after the close of business (at an office or agency in a Place of Payment for such
series) on any Regular Record Date and before the opening of business (at such office or agency) on
the next succeeding Interest Payment Date, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date and interest will not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such Bearer Security, but
will be payable only to the Holder of such coupon when due in accordance with the provisions of
this Indenture.
Except as otherwise specified with respect to a series of Securities in accordance with the
provisions of Section 301, any interest on any Registered Security of any series that is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date (herein called
Defaulted Interest) shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may
be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to the Persons
in whose names the Registered Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Registered Security of such series and the date of the proposed payment (which shall
not be less than 20 days after such notice is received by the Trustee), and at the same time
the Company shall deposit with the Trustee an amount of money in the currency or currencies,
currency unit or units or composite currency or
currencies in which the Securities of such series are payable (except as otherwise
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specified pursuant to Section 301 for the Securities of such series) equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and, in the name
and at the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Registered Securities of such series at his address as it appears
in the Security Register not less than 10 days prior to such Special Record Date. The
Trustee may, in its discretion, in the name and at the expense of the Company, cause a
similar notice to be published at least once in an Authorized Newspaper in each Place of
Payment, but such publications shall not be a condition precedent to the establishment of
such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall
be paid to the Persons in whose names the Registered Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following clause (2). In case a
Bearer Security of any series is surrendered at the office or agency in a Place of Payment
for such series in exchange for a Registered Security of such series after the close of
business at such office or agency on any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of Defaulted
Interest, such Bearer Security shall be surrendered without the coupon relating to such
proposed date of payment and Defaulted Interest will not be payable on such proposed date of
payment in respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture.
(2) The Company may make payment of any Defaulted Interest on the Registered
Securities of any series in any other lawful manner not inconsistent with the requirements
of any over-the-counter market or securities exchange on which such Securities may be quoted
or listed, and upon such notice as may be required by such market or exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to this clause,
such manner of payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section and Section 305, each Security delivered
under this Indenture upon registration of transfer of or upon conversion of or in exchange for or
in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Security.
SECTION 308. Persons Deemed Owners. Prior to due presentment of a Registered Security for registration of transfer, the Company,
the Trustee and any agent of the Company or
34
the Trustee may treat the Person in whose name such
Registered Security is registered as the owner of such Security for the purpose of receiving
payment of principal of (and premium or Make-Whole Amount, if any), and (subject to Sections 305
and 307) interest on, such Registered Security and for all other purposes whatsoever, whether or
not such Registered Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary. All such payments so made to
any such Person, or upon such Persons order, shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for money payable upon any such Security.
Title to any Bearer Security and any coupons appertaining thereto shall pass by delivery. The
Company, the Trustee and any agent of the Company or the Trustee may treat the Holder of any Bearer
Security and the Holder of any coupon as the absolute owner of such Security or coupon for the
purpose of receiving payment thereof or on account thereof and for all other purposes whatsoever,
whether or not such Security or coupon be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.
No holder of any beneficial interest in any Global Security held on its behalf by a depository
shall have any rights under this Indenture with respect to such Global Security and such depository
(which is the Holder of such security) shall be treated by the Company, the Trustee, and any agent
of the Company or the Trustee as the owner of such Global Security for all purposes whatsoever.
None of the Company, the Trustee, any Paying Agent or the Security Registrar 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 Security or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.
Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall
prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to
any written certification, proxy or other authorization furnished by any depository, as a Holder,
with respect to such Global Security or impair, as between such depository and owners of beneficial
interests in such Global Security, the operation of customary practices governing the exercise of
the rights of such depository (or its nominee) as Holder of such Global Security.
SECTION 309. Cancellation. All Securities and coupons surrendered for payment,
redemption, repayment at the option of the Holder, registration of transfer or conversion or
exchange or for credit against any sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee, and any such Securities and coupons and Securities
and coupons surrendered directly to the Trustee for any such purpose, upon direction by the
Company, shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company may
have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for
delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which
the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by
the
Trustee. If the Company shall so acquire any of the Securities, however, such acquisition shall
not operate as a redemption or satisfaction of the indebtedness represented by such Securities
unless and until the same are surrendered to the
35
Trustee for cancellation. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture. Cancelled Securities and coupons held by the
Trustee shall be disposed of by the Trustee in accordance with its customary practices (subject to
the record retention requirements of the Exchange Act).
SECTION 310. Computation of Interest. Except as otherwise specified as contemplated by
Section 301 with respect to Securities of any series, interest on the Securities of each series
shall be computed on the basis of a 360-day year consisting of twelve 30-day months.
SECTION 311. CUSIP Numbers. The Company in issuing the Securities may use CUSIP
numbers (if then generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of
redemption as a convenience to Holders; provided, however, that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the
Trustee of any change in the CUSIP numbers.
ARTICLE FOUR SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture. This Indenture shall upon
Company Request cease to be of further effect with respect to any series of Securities specified in
such Company Request (except as to any surviving rights of registration of transfer or conversion
or exchange of Securities of such series herein expressly provided for), and the Trustee, upon
receipt of a Company Order, and at the expense of the Company, shall execute instruments in form
and substance satisfactory to the Trustee and the Company acknowledging satisfaction and discharge
of this Indenture as to such series when
(1) either
(A) all Securities of such series theretofore authenticated and delivered
and all coupons, if any, appertaining thereto (other than (i) coupons appertaining
to Bearer Securities surrendered for exchange for Registered Securities and maturing
after such exchange, whose surrender is not required or has been waived as provided
in Section 305, (ii) Securities and coupons of such series which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 306, (iii) coupons appertaining to Securities called for redemption and
maturing after the relevant Redemption Date, whose surrender has been waived as
provided in Section 1106, and (iv) Securities and coupons of such series for
whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or
36
(B) all Securities of such series and, in the case of (i) or (ii) below,
any coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity within one year,
or
(iii) if redeemable at the option of the Company, are to be called for
redemption within one year under arrangements satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and at the expense, of
the Company,
and the Company, in the case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount in the currency or
currencies, currency unit or units or composite currency or currencies in which the Securities of
such series are payable, sufficient to pay and discharge the entire indebtedness on such Securities
and such coupons not theretofore delivered to the Trustee for cancellation, for principal (and
premium or Make-Whole Amount, if any) and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;
(2) the Company has paid or caused to be paid all other sums payable hereunder by
the Company; and
(3) the Company has delivered to the Trustee an Officers Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Indenture as to such series have been complied
with.
Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee and any predecessor Trustee under Section 606, the obligations of the Company to any
Authenticating Agent under Section 611 and, if money shall have been deposited with and held by the
Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 shall survive such satisfaction and
discharge.
SECTION 402. Application of Trust Funds. Subject to the provisions of the last
paragraph of Section 1003, all money deposited with the Trustee pursuant to Section 401 shall be
held in trust and applied by it, in accordance with the provisions of the Securities, the coupons
and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium or Make-Whole Amount, if
any), and any interest for whose payment such money has been deposited with or received by the
Trustee, but such money need not be segregated from other funds except to the extent required by
law.
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ARTICLE FIVE REMEDIES
SECTION 501. Events of Default. Event of Default, wherever used herein with respect
to any particular series of Securities, means any one of the following events (whatever the reason
for such Event of Default and whether or not it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):
(1) default in the payment of any interest on any Security of that series or of any
coupon appertaining thereto, when such interest or coupon becomes due and payable, and
continuance of such default for a period of 30 days; or
(2) default in the payment of the principal of (or premium or Make-Whole Amount, if
any, on) any Security of that series when it becomes due and payable at its Maturity; or
(3) default in the deposit of any sinking fund payment, to the extent applicable to
such series of Securities, when and as due by the terms of any Security of that series; or
(4) default in the performance, or breach, of any covenant or warranty of the
Company in this Indenture with respect to any Security of that series (other than a covenant
or warranty a default in whose performance or whose breach is elsewhere in this Section
specifically dealt with or which has expressly been included in this Indenture solely for
the benefit of a series of Securities other than that series), and continuance of such
default or breach for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a Notice of Default hereunder; or
(5) default under any bond, debenture, note, mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced any
indebtedness for money borrowed by the Company (or by any Subsidiary, the repayment of which
the Company has guaranteed or for which the Company is directly responsible or liable as
obligor or guarantor), having an aggregate principal amount outstanding of at least
$30,000,000, whether such indebtedness now exists or shall hereafter be created, which
default shall have resulted in such indebtedness
becoming or being declared due and payable prior to the date on which it would
otherwise have become due and payable, without such indebtedness having been discharged, or
such acceleration having been rescinded or annulled, within a period of 30 days after there
shall have been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 10% in principal amount of the
Outstanding Securities of that series a written notice specifying such default and requiring
the Company to cause such indebtedness to be discharged or cause such acceleration to be
rescinded or annulled and stating that such notice is a Notice of
38
Default hereunder;
provided, however, that, subject to the provisions of Sections 601 and 602,
the Trustee shall not be deemed to have knowledge of such default unless either (A) a
Responsible Officer of the Trustee shall have knowledge of such default or (B) the Trustee
shall have received written notice thereof from the Company, from any Holder, from the
holder of any such indebtedness or from the trustee under any such mortgage, indenture or
other instrument; or
(6) the Company or any Significant Subsidiary pursuant to or within the meaning of
any Bankruptcy Law:
(A) commences a voluntary case,
(B) consents to the entry of an order for relief against it in an
involuntary case,
(C) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or
(D) makes a general assignment for the benefit of its creditors; or
(7) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:
(A) is for relief against the Company or any Significant Subsidiary in an
involuntary case,
(B) appoints a Custodian of the Company or any Significant Subsidiary or
for all or substantially all of either of its property, or
(C) orders the liquidation of the Company or any Significant Subsidiary,
and the order or decree remains unstayed and in effect for 90 days; or
(8) any other Event of Default provided with respect to Securities of that series.
As used in this Section 501, the term Bankruptcy Law means title 11, U.S. Code or any
similar Federal or state law for the relief of debtors and the term Custodian means any receiver,
trustee, assignee, liquidator or other similar official under any Bankruptcy Law.
SECTION 502. Acceleration of Maturity; Rescission and Annulment. If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal amount (or,
if Securities of that Series are Original Issue Discount Securities or Indexed Securities, such
portion of the principal as may be specified in the terms thereof) of all the Securities of that
series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee
if given by the Holders), and upon any such declaration such principal or specified portion thereof
shall become immediately due and payable.
39
At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration of acceleration and its consequences if:
(1) the Company has paid or deposited with the Trustee a sum sufficient to pay in
the currency, currency unit or composite currency in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the Securities of such
series):
(A) all overdue installments of interest on all Outstanding Securities of
that series and any related coupons,
(B) the principal of (and premium or Make-Whole Amount, if any, on) any
Outstanding Securities of that series which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate or rates borne by or
provided for in such Securities,
(C) to the extent that payment of such interest is lawful, interest upon
overdue installments of interest at the rate or rates borne by or provided for in
such Securities, and
(D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and
(2) all Events of Default with respect to Securities of that series, other than the
nonpayment of the principal of (or premium or Make-Whole Amount, if any) or interest on
Securities of that series which have become due solely by such declaration of acceleration,
have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right consequent thereon.
SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee. The
Company covenants that if:
(1) default is made in the payment of any installment of interest on any Security
of any series and any related coupon when such interest becomes due and payable and such
default continues for a period of 30 days, or
(2) default is made in the payment of the principal of (or premium or Make-Whole
Amount, if any, on) any Security of any series at its Maturity,
then the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of the
Holders of such Securities of such series and coupons, the whole amount then due and payable on
such Securities and coupons for principal (and premium or Make-Whole Amount, if any) and
40
interest,
with interest upon any overdue principal (and premium or Make-Whole Amount, if any) and, to the
extent that payment of such interest shall be legally enforceable, upon any overdue installments of
interest at the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Company or any other obligor upon such Securities of such series and
collect the moneys adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon such Securities of such series, wherever
situated.
If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series and any related coupons by such appropriate judicial
proceedings as the Trustee shall deem necessary to protect and enforce any such rights, whether for
the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise
of any power granted herein, or to enforce any other proper remedy.
SECTION 504. Trustee May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Securities of any series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of overdue principal, premium or
Make-Whole Amount, if any, or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise:
(i) to file and prove a claim for the whole amount, or such lesser amount
as may be provided for in the Securities of such series, of principal (and premium
or Make-Whole Amount, if any) and interest owing and unpaid in respect of the
Securities and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding, and
(ii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder of Securities of such
series and coupons to make such payments to the Trustee, and in the event that the Trustee shall
consent to
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the making of such payments directly to the Holders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee and
any predecessor Trustee, their agents and counsel, and any other amounts due the Trustee or any
predecessor Trustee under Section 606.
Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or coupons or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a
Security or coupon in any such proceeding.
In any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be a party) the
Trustee shall be held to represent all the Holders of the Securities, and it shall not be necessary
to make any Holders of the Securities parties to any such proceedings.
SECTION 505. Trustee May Enforce Claims Without Possession of Securities or Coupons.
All rights of action and claims under this Indenture or any of the Securities or coupons may be
prosecuted and enforced by the Trustee without the possession of any of the Securities or coupons
or the production thereof in any proceeding relating thereto, and any such proceeding instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities and coupons in respect of which such judgment has been recovered.
SECTION 506. Application of Money Collected. Any money collected by the Trustee
pursuant to this Article shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal (or premium or
Make-Whole Amount, if any) or interest, upon presentation of the Securities or coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under
Section 606;
SECOND: To the payment of the amounts then due and unpaid upon the Securities and coupons for
principal (and premium or Make-Whole Amount, if any) and interest, in respect of which or for the
benefit of which such money has been collected, ratably, without preference or priority of any
kind, according to the aggregate amounts due and payable on such Securities and coupons for
principal (and premium or Make-Whole Amount, if any) and interest, respectively; and
THIRD: To the payment of the remainder, if any, to the Company.
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SECTION 507. Limitation on Suits. No Holder of any Security of any series or any
related coupon shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:
(1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;
(2) the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request;
(4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;
it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such Holders.
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium or Make-Whole
Amount, if any, and Interest. Notwithstanding any other provision in this Indenture, the
Holder of any Security or coupon shall have the right which is absolute and unconditional to
receive payment of the principal of (and premium or Make-Whole Amount, if any) and (subject to
Sections 305 and 307) interest on
such Security or payment of such coupon on the respective due dates expressed in such Security or
coupon (or, in the case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such
Holder.
SECTION 509. Restoration of Rights and Remedies. If the Trustee or any Holder of a
Security or coupon has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such case, the Company,
the Trustee and the Holders of Securities and coupons shall, subject to any determination in such
proceeding, be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.
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SECTION 510. Rights and Remedies Cumulative. Except as otherwise provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities or coupons in the
last paragraph of Section 306, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders of Securities or coupons is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.
SECTION 511. Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder of any Security or coupon to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any such Event of Default
or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders of Securities or coupons, as the case may be.
SECTION 512. Control by Holders of Securities. The Holders of not less than a majority
in principal amount of the Outstanding Securities of any series shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the Securities of such
series, provided that:
(1) such direction shall not be in conflict with any rule of law or with this
Indenture,
(2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and
(3) the Trustee need not take any action which might involve it in personal
liability or be unduly prejudicial to the Holders of Securities of such series not joining
therein.
Nothing in this Indenture shall impair the right of the Trustee in its discretion to take any
action deemed proper by the Trustee and which is not inconsistent with such direction by Holders.
SECTION 513. Waiver of Past Defaults. The Holders of not less than a majority in
principal amount of the Outstanding Securities of any series may on behalf of the Holders of all
the Securities of such series and any related coupons waive any past default hereunder with respect
to such series and its consequences, except a default
(1) in the payment of the principal of (or premium or Make-Whole Amount, if any) or
interest on any Security of such series or any related coupons, or
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(2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series affected; or
(3) in respect of a covenant or provision hereof for the benefit or protection of
the Trustee, without its express written consent.
Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or Event of Default or impair any right
consequent thereon.
SECTION 514. Waiver of Usury, Stay or Extension Laws. The Company covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.
SECTION 515. Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess
reasonable costs, including reasonable attorneys fees and expenses, against any party litigant in
such suit having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the Outstanding Securities of any series, or to any suit instituted
by any Holder for the enforcement of the payment of the principal of (or premium or Make-Whole
Amount, if any) or interest on any Security on or after the respective Stated Maturities expressed
in such Security (or, in the case of redemption, on or after the Redemption Date).
ARTICLE SIX THE TRUSTEE
SECTION 601. Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall transmit in the manner
and to the extent provided in TIA Section 313(c), notice of such default hereunder known to the
Trustee, unless such default shall have been cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of (or premium or Make-Whole
Amount, if any) or interest on any Security of such series, or in the payment of any
45
sinking or
purchase fund installment with respect to the Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interests of the Holders of the
Securities and coupons of such series; and provided further that in the case of any
default or breach of the character specified in Section 501(4) with respect to the Securities and
coupons of such series, no such notice to Holders shall be given until at least 60 days after the
occurrence thereof. For the purpose of this Section, the term default means any event which is,
or after notice or lapse of time or both would become, an Event of Default with respect to the
Securities of such series.
SECTION 602. Certain Rights of Trustee. Subject to the provisions of TIA Section
315(a) through 315(d):
(1) the Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, coupon or other
paper or document (whether in its original or facsimile form) reasonably believed by it to
be genuine and to have been signed or presented by the proper party or parties;
(2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order (other than delivery of any Security,
together with any coupons appertaining thereto, to the Trustee for authentication and
delivery pursuant to Section 303 which shall be sufficiently evidenced as provided therein)
and any resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;
(3) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon an Officers Certificate;
(4) the Trustee may consult with counsel of its own selection and the written
advice of such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon;
(5) the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the Holders of
Securities of any series or any related coupons pursuant to this Indenture, unless such
Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to
the Trustee against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;
(6) the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report,
notice,
46
request, direction, consent, order, bond, debenture, note, coupon or other paper or
document, unless requested in writing so to do by the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities of any series; provided
that, if the payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it
by the terms of this Indenture, the Trustee may require reasonable indemnity against such
expenses or liabilities as a condition to proceeding; the reasonable expenses of every such
examination shall be paid by the Holders or, if paid by the Trustee, shall be repaid by the
Holders upon demand. The Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, relevant to the facts or matters that are the
subject of its inquiry, personally or by agent or attorney at the expense of the Company and
shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation;
(7) the Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or attorney
appointed with due care by it hereunder;
(8) the Trustee shall not be liable for any action taken, suffered or omitted by it
in good faith and reasonably believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture;
(9) any permissive right or power available to the Trustee under this Indenture or
any supplement hereto shall not be construed to be a mandatory duty or obligation;
(10) the Trustee shall not be charged with knowledge of any matter (including any
default, other than as described in Section 501(1), (2) or (3)) unless and except to the
extent actually known to a Responsible Officer of the Trustee or to the extent written
notice thereof is received by the Trustee at the Corporate Trust Office;
(11) the Trustee shall have no liability for any inaccuracy in the books and
records of, or for any actions or omissions of, DTC, Euroclear or Clearstream or any
depository acting on behalf of any of them;
(12) the rights, privileges, protections, immunities and benefits given to the
Trustee, including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed by the Trustee to act hereunder; and
(13) the Trustee may request that the Company deliver an Officers Certificate
setting forth the names of individuals and/or titles of officers authorized at such time to
take specified actions pursuant to this Indenture, which Officers Certificate may be
47
signed by any person authorized to sign an Officers Certificate, including any person specified as
so authorized in any such certificate previously delivered and not superseded.
The Trustee shall not be required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it.
Except during the continuance of an Event of Default, the Trustee undertakes to perform only
such duties as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee.
SECTION 603. Not Responsible for Recitals or Issuance of Securities. The recitals
contained herein and in the Securities, except the Trustees certificate of authentication, and in
any coupons shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities or
coupons, except that the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities and perform its obligations hereunder. Neither the Trustee
nor any Authenticating Agent shall be accountable for the use or application by the Company of
Securities or the proceeds thereof. The Trustee shall have no responsibility with respect to any
information, statement or recital in any offering prospectus or other disclosure materials prepared
or distributed with respect to the Securities.
SECTION 604. May Hold Securities. The Trustee, any Paying Agent, Security Registrar,
Authenticating Agent or any other agent of the Company, in its individual or any other capacity,
may become the owner or pledgee of Securities and coupons and, subject to TIA Sections 310(b) and
311, may otherwise deal with the
Company with the same rights it would have if it were not Trustee, Paying Agent, Security
Registrar, Authenticating Agent or such other agent.
SECTION 605. Money Held in Trust. Money held by the Trustee in trust hereunder need
not be segregated from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as otherwise agreed in
writing with the Company.
SECTION 606. Compensation and Reimbursement. The Company agrees:
(1) to pay to the Trustee as agreed upon in writing from time to time reasonable
compensation for all services rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an express
trust);
(2) except as otherwise expressly provided herein, to reimburse each of the Trustee
and any predecessor Trustee upon its request for all reasonable expenses, and disbursements
incurred by the Trustee in accordance with any provision of this Indenture
48
(including the
reasonable compensation and the reasonable expenses and disbursements of its agents and
counsel), except any such expense or disbursement as shall be determined to have been caused
by its own negligence, willful misconduct or bad faith; and
(3) to indemnify each of the Trustee and any predecessor Trustee for, and to hold
it harmless against, any loss, liability, claim, damage or expense incurred without
negligence, willful misconduct or bad faith on its part, arising out of or in connection
with the acceptance or administration of the trust or trusts hereunder, including the costs
and expenses of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.
When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 501(7) or Section 501(8), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses
of administration under any applicable Federal or state bankruptcy, insolvency or other similar
law.
As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien for payment of the Trustees fees and expenses prior to the Securities
upon all property and funds held or collected by the Trustee as such, except funds held in trust
for the payment of principal of (or premium or Make-Whole Amount, if any) or interest on particular
Securities or any coupons.
The provisions of this Section shall survive the termination of this Indenture and the
resignation or removal of the Trustee.
SECTION 607. Corporate Trustee Required; Eligibility; Conflicting Interests. There
shall at all times be a Trustee hereunder which shall be eligible to act as Trustee under TIA
Section 310(a)(1) and shall have at all times a combined capital and surplus of at least
$50,000,000 (or which shall have a combined capital and surplus of at least $10,000,000 and whose
ultimate parent holding company shall have a combined capital and surplus of at least $50,000,000.
If the Trustee publishes reports of condition at least annually, pursuant to law or the
requirements of Federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of the Trustee
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. Neither the Company nor any Person directly or indirectly
controlling, controlled by, or under common control with the Company shall serve as Trustee.
SECTION 608. Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
49
appointment by the
successor Trustee in accordance with the applicable requirements of Section 609.
(b) The Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 60 days after the giving of
such notice of resignation, the resigning Trustee may petition, at the expense of the Company, any
court of competent jurisdiction for the appointment of a successor Trustee.
(c) The Trustee may be removed at any time with respect to the Securities of any series by
Act of the Holders of a majority in principal amount of the Outstanding Securities of such series
delivered to the Trustee and to the Company. If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within 60 days after the giving of such notice of
resignation, the resigning Trustee may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee.
(d) If at any time:
(1) the Trustee shall fail to comply with the provisions of TIA Section 310(b)
after written request therefor by the Company or by any Holder of a Security who has been a
bona fide Holder of a Security for at least six months, or
(2) the Trustee shall cease to be eligible under Section 607 and shall fail to
resign after written request therefor by the Company or by any Holder of a Security who has
been a bona fide Holder of a Security for at least six months, or
(3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company by or pursuant to a Board Resolution may remove the Trustee
and appoint a successor Trustee with respect to all Securities, or (ii) subject to TIA Section
315(e), any Holder of a Security who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.
(e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause with respect to the Securities of one or more
series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more or
all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series). If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in principal amount of the
50
Outstanding Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities
of any series shall have been so appointed by the Company or the Holders of Securities and accepted
appointment in the manner hereinafter provided, any Holder of a Security who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to Securities of such series.
(f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series in the manner provided for notices to the Holders of Securities in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.
SECTION 609. Acceptance of Appointment by Successor.
(a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver
an instrument transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee, and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder, subject nevertheless to its claim, if
any, provided for in Section 606.
(b) In case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto, pursuant to Article Nine hereof, wherein each successor Trustee
shall accept such appointment and which (1) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the retiring Trustee is
not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart
from any trust or
51
trusts hereunder administered by any other such Trustee; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.
(c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section 609, as the case
may be.
(d) No successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this Article.
SECTION 610. Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties hereto. In case
any Securities or coupons shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities or coupons so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities or coupons. In case
any Securities or coupons shall not have been authenticated by such predecessor Trustee, any such
successor Trustee may authenticate and deliver such Securities or coupons, in either its own name
or that of its predecessor Trustee, with the full force and effect which this Indenture provides
for the certificate of authentication of the Trustee.
SECTION 611. Appointment of Authenticating Agent. At any time when any of the
Securities remain Outstanding, the Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon conversion or exchange, registration
of transfer or partial redemption or repayment thereof, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Any such appointment shall be evidenced by an instrument
in writing signed by a Responsible Officer of the Trustee, a copy of which instrument shall be
promptly furnished to the Company. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustees certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf
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of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a bank or trust company or corporation organized and doing
business and in good standing under the laws of the United States of America or of any state or the
District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or examination by
Federal or state authorities. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or the requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report
of condition so published. In case at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section.
Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or further act on the part of the Trustee or the
Authenticating Agent.
An Authenticating Agent for any series of Securities may at any time resign by giving written
notice of resignation to the Trustee for such series and to the Company. The Trustee for any
series of Securities may at any time terminate the agency of an Authenticating Agent by
giving written notice of termination to such Authenticating Agent and to the Company. Upon
receiving such a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
the Trustee for such series may appoint a successor Authenticating Agent which shall be acceptable
to the Company and shall give notice of such appointment to all Holders of Securities of the series
with respect to which such Authenticating Agent will serve in the manner set forth in Section 106.
Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested
with all the rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.
The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation including reimbursement of its reasonable expenses for its services under this
Section, subject to Section 606.
If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to or in lieu of the Trustees
certificate of authentication, an alternate certificate of authentication substantially in the
following form:
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
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SECTION 612. Certain Duties and Responsibilities of the Trustee.
(a) With respect to the Securities of any series, except during the continuance of an
Event of Default with respect to the Securities of such series:
(1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or opinions which
by any provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not they conform
to the requirements of this Indenture, but shall not be under any duty to verify the
contents or accuracy thereof.
(b) In case an Event of Default with respect to the Securities of any series has occurred
and is continuing, the Trustee shall, with respect to Securities of such series, exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances in the conduct of
his own affairs.
(c) No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(1) this Subsection shall not be construed to limit the effect of Subsection (a) of this
Section;
(2) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the
pertinent facts;
(3) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
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principal amount of the Outstanding Securities of any series relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture with respect to the Securities of such
series; and
(4) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it; and, the Trustee shall be under no obligation to exercise any of its
rights and powers under this Indenture at the request of any Holder, unless such Holder shall have
offered to the Trustee security and indemnity satisfactory to it against any loss, liability or
expense.
(d) Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee shall
be subject to the provisions of this Section 612.
(e) The Trustee shall not be liable for interest on any money or assets held by it except
to the extent the Trustee may agree in writing with the Company. Assets held in trust by the
Trustee need not be segregated from other assets except to the extent required by law.
ARTICLE SEVEN HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Disclosure of Names and Addresses of Holders. Every Holder of Securities
or coupons, by receiving and holding the same, agrees with the Company and the Trustee that neither
the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor any Security
Registrar shall be held accountable by reason of the disclosure of any information as to the names
and addresses of the Holders of Securities in accordance with TIA Section 312, regardless of the
source from which such information was derived, and that the Trustee shall not be held accountable
by reason of mailing any material pursuant to a request made under TIA Section 312(b).
SECTION 702. Reports by Trustee. The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be required by TIA Section 313
at the times and in the manner provided by the TIA, which shall initially be not less than every
twelve months commencing on __________, 20_. A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each over-the-counter market or securities
exchange, if any, upon which any Securities are quoted or listed, with the Commission and with the
Company. The Company will notify the Trustee when any Securities are quoted or listed on any
over-the-counter market or securities exchange or delisted therefrom.
SECTION 703. Reports by Company. The Company will:
55
(1) file with the Trustee, within 15 days after the Company is required to file the
same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Company may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the
Company is not required to file information, documents or reports pursuant to either of such
Sections, then it will file with the Trustee and the Commission, in accordance with rules
and regulations prescribed from time to time by the Commission, such of the supplementary
and periodic information, documents and reports which may be required pursuant to Section 13
of the Exchange Act in respect of a security quoted or listed and registered on an
over-the-counter market or national securities exchange as may be prescribed from time to
time in such rules and regulations;
(2) file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company with the conditions and
covenants of this Indenture as may be required from time to time by such rules and
regulations;
(3) transmit by mail to the Holders of Securities, within 30 days after the filing
thereof with the Trustee, in the manner and to the extent provided in TIA Section 313(c),
such summaries of any information, documents and reports required to be filed by the Company
pursuant to paragraphs (1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission; and
(4) delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustees receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information
contained therein, including the Companys compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers Certificates).
SECTION
704. Company to Furnish Trustee Names and Addresses of Holders. The
Company will furnish or cause to be furnished to the Trustee:
(a) semiannually, not later than 15 days after the Regular Record Date for interest for
each series of Securities, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders of Registered Securities of such series as of such Regular Record
Date, or if there is no Regular Record Date for interest for such series of Securities,
semiannually, upon such dates as are set forth in the Board Resolution or indenture supplemental
hereto authorizing such series, and
(b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished,
56
provided, however, that, so long as the Trustee is the Security Registrar, no such
list shall be required to be furnished.
ARTICLE EIGHT CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE
SECTION 801. Consolidations and Mergers of Company and Sales, Leases and Conveyances
Permitted Subject to Certain Conditions. The Company may consolidate with, or sell, lease or
convey all or substantially all of its assets to, or merge with or into any other corporation,
provided that in any such case, (1) either the Company shall be the continuing corporation, or the
successor corporation shall be a corporation organized and existing under the laws of the United
States or a State thereof and such successor corporation shall expressly assume the due and
punctual payment of the principal of (and premium or Make-Whole Amount, if any) and any interest on
all of the Securities, according to their tenor, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be performed by the Company
by supplemental indenture, complying with Article Nine hereof, satisfactory to the Trustee,
executed and delivered to the Trustee by such corporation, (2) immediately after giving effect to
such transaction and treating any indebtedness which becomes an obligation of the Company or any
Subsidiary as a result
thereof as having been incurred by the Company or such Subsidiary at the time of such transaction,
no Event of Default, and no event which, after notice or the lapse of time, or both, would become
an Event of Default, shall have occurred and be continuing and (3) the Company shall have delivered
to the Trustee the Officers Certificate and Opinion of Counsel required pursuant to Section 803
below.
SECTION 802. Rights and Duties of Successor Corporation. In case of any such
consolidation, merger, sale, lease or conveyance and upon any such assumption by the successor
corporation, such successor corporation shall succeed to and be substituted for the Company, with
the same effect as if it had been named herein as the party of the first part, and the predecessor
corporation, except in the event of a lease, shall be relieved of any further obligation under this
Indenture and the Securities. Such successor corporation thereupon may cause to be signed, and may
issue either in its own name or in the name of the Company, any or all of the Securities issuable
hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee;
and, upon the order of such successor corporation, instead of the Company, and subject to all the
terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and
shall deliver any Securities which previously shall have been signed and delivered by the officers
of the Company to the Trustee for authentication, and any Securities which such successor
corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose. All
the Securities so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the execution hereof.
In case of any such consolidation, merger, sale, lease or conveyance, such changes in
phraseology and form (but not in substance) may be made in the Securities thereafter to be issued
as may be appropriate.
57
SECTION 803. Officers Certificate and Opinion of Counsel. Any consolidation, merger,
sale, lease or conveyance permitted under Section 801 is also subject to the condition that the
Trustee receive an Officers Certificate and an Opinion of Counsel to the effect that any such
consolidation, merger, sale, lease or conveyance, and the assumption by any successor corporation,
complies with the provisions of this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.
ARTICLE NINE SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders. Without the consent
of any Holders of Securities or coupons, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:
(1) to evidence the succession of another Person to the Company and the assumption
by any such successor of the covenants of the Company contained herein and in the
Securities; or
(2) to add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default for the benefit of the Holders of all
or any series of Securities (and if such Events of Default are to be for the benefit of less
than all series of Securities, stating that such Events of Default are expressly being
included solely for the benefit of such series); provided, however, that in
respect of any such additional Events of Default such supplemental indenture may provide for
a particular period of grace after default (which period may be shorter or longer than that
allowed in the case of other defaults) or may provide for an immediate enforcement upon such
default or may limit the remedies available to the Trustee upon such default or may limit
the right of the Holders of a majority in aggregate principal amount of that or those series
of Securities to which such additional Events of Default apply to waive such default; or
(4) to add to or change any of the provisions of this Indenture to provide that
Bearer Securities may be registrable as to principal, to change or eliminate any
restrictions on the payment of principal of or premium or Make-Whole Amount, if any, or
interest on Bearer Securities, to permit Bearer Securities to be issued in exchange for
Registered Securities, to permit Bearer Securities to be issued in exchange for Bearer
Securities of other authorized denominations or to permit or facilitate the issuance of
Securities in uncertificated form, provided that any such action shall not adversely
affect
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the interests of the Holders of Securities of any series or any related coupons in
any material respect; or
(5) to change or eliminate any of the provisions of this Indenture,
provided that any such change or elimination shall become effective only when there
is no Security Outstanding of any series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision; or
(6) to secure the Securities; or
(7) to establish the form or terms of Securities of any series and any related
coupons as permitted or contemplated by Sections 201 and 301; or
(8) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee; or
(9) to cure any ambiguity, to correct or supplement any provision herein which may
be defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture which shall not
be inconsistent with the provisions of this Indenture, provided such provisions
shall not adversely affect the interests of the Holders of Securities of any series or any
related coupons in any material respect; or
(10) to supplement any of the provisions of this Indenture to such extent as shall
be necessary to permit or facilitate the Defeasance and discharge of any series of
Securities pursuant to Sections 401, 1402 and 1403; provided that any such action
shall not adversely affect the interests of the Holders of Securities of such series and any
related coupons or any other series of Securities in any material respect; or
(11) to make provisions with respect to Holders rights of conversion with respect
to any series of Securities pursuant to Article Seventeen.
SECTION 902. Supplemental Indentures with Consent of Holders. With the consent of the
Holders of not less than a majority in principal amount of all Outstanding Securities affected by
such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by or pursuant to a Board Resolution, and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner
the rights of the Holders of Securities and any related coupons under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent
of the Holder of each Outstanding Security affected thereby:
(1) change the Stated Maturity of the principal of (or premium or Make-Whole
Amount, if any, on) or any installment of principal of or interest on, any Security;
59
or
reduce the principal amount thereof or the rate or amount of interest thereon, or any
premium or Make-Whole Amount payable upon the redemption thereof, or reduce the amount of
the principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502 or the amount
thereof provable in bankruptcy pursuant to Section 504, or adversely affect any right of
repayment at the option of the Holder of any Security, or change any Place of Payment where,
or the currency or currencies, currency unit or units or composite currency or currencies in
which, any Security or any premium or Make-Whole Amount or the interest thereon is payable,
or impair the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption or repayment at the option of the
Holder, on or after the Redemption Date or the Repayment Date, as the case may be), or (if
Securities of such series are convertible) adversely affect the right of the Holder to
convert any Security as provided in Article Seventeen, or modify the provisions of this
Indenture with respect to the subordination of the Securities in a manner materially adverse
to the Holders; or
(2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver with respect to such series (or
compliance with certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or reduce the requirements of Section 1504 for
quorum or voting, or
(3) modify any of the provisions of this Section, Section 513 or Section 1009,
except to increase the required percentage to effect such action or to provide that certain
other provisions of this Indenture cannot be modified or waived without the consent of the
Holder of each Outstanding Security affected thereby, provided, however,
that this clause shall not be deemed to require the consent of any Holder with respect to
changes in the references to the Trustee and concomitant changes in this Section 902 and
Section 1009, or the deletion of this proviso, in accordance with the requirements of
Sections 609(b) and 901(11).
It shall not be necessary for any Act of Holders under this Section 902 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.
A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
SECTION 903. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article or the
modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 612) shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized or permitted by
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this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustees own rights, duties or immunities under this Indenture or
otherwise.
SECTION 904. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder and of any coupon
appertaining thereto shall be bound thereby.
SECTION 905. Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as
then in effect.
SECTION 906. Reference in Securities to Supplemental Indentures. Securities of any
series authenticated and delivered after the execution of any supplemental indenture pursuant to
this Article may, and shall, if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to conform, in the opinion of the Trustee
and the Company, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.
ARTICLE TEN COVENANTS
SECTION 1001. Payment of Principal, Premium or Make-Whole Amount, if any; and Interest.
The Company covenants and agrees for the benefit of the Holders of each series of Securities that
it will duly and punctually pay the principal of (and premium or Make-Whole Amount, if any) and
interest on the Securities of that series in accordance with the terms of such series of
Securities, any coupons appertaining thereto and this Indenture. Unless otherwise specified as
contemplated by Section 301 with respect to any series of Securities, any interest due on Bearer
Securities on or before Maturity shall be payable only upon presentation and surrender of the
several coupons for such interest installments as are evidenced thereby as they severally mature.
Unless otherwise specified with respect to Securities of any series pursuant to Section 301, at the
option of the Company (upon written notice to the Trustee), all payments of principal may be paid
by check to the registered Holder of the Registered Security or other Person entitled thereto
against surrender of such Security.
SECTION 1002. Maintenance of Office or Agency. If Securities of a series are issuable
only as Registered Securities, the Company shall maintain in each Place of Payment for any series
of Securities an office or agency where Securities of that series may be presented or surrendered
for payment or conversion, where Securities of that series may be surrendered for registration of
transfer or conversion or exchange and where notices and demands to or upon the Company in respect
of the Securities of that series and this Indenture may be served. If
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Securities of a series are
issuable as Bearer Securities, the Company will maintain: (A) in the Borough of Manhattan, The City
of New York, an office or agency where any Registered Securities of that series may be presented or
surrendered for payment or conversion, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be surrendered for
conversion or exchange, where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served and where Bearer Securities of that
series and related coupons may be presented or surrendered for payment or conversion in the
circumstances described in the following paragraph (and not otherwise); (B) subject to any laws or
regulations applicable thereto, in a Place of Payment for that series which is located outside the
United States, an office or agency where Securities of that series and related coupons may be
presented and surrendered for payment; provided, however, that if the Securities of
that series are listed on any stock exchange located outside the United States and such stock
exchange shall so require, the
Company will maintain a Paying Agent for the Securities of that series in any required city located
outside the United States, as the case may be, so long as the Securities of that series are listed
on such exchange; and (C) subject to any laws or regulations applicable thereto, in a Place of
Payment for that series located outside the United States an office or agency where any Registered
Securities of that series may be surrendered for registration of transfer, where Securities of that
series may be surrendered for conversion or exchange and where notices and demands to or upon the
Company in respect of the Securities of that series and this Indenture may be served. The Company
will give prompt written notice to the Trustee of the location, and any change in the location, of
each such office or agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee,
except that Bearer Securities of that series and the related coupons may be presented and
surrendered for payment or conversion at the offices specified in the Security, in London, England,
and the Company hereby appoints the same as its agent to receive such respective presentations,
surrenders, notices and demands, and the Company hereby appoints the Trustee its agent to receive
all such presentations, surrenders, notices and demands.
Unless otherwise specified with respect to any Securities pursuant to Section 301, no payment
of principal, premium or Make-Whole Amount or interest on Bearer Securities shall be made at any
office or agency of the Company in the United States or by check mailed to any address in the
United States or by transfer to an account maintained with a bank located in the United States;
provided, however, that, if the Securities of a series are payable in Dollars,
payment of principal of and any premium or Make-Whole Amount and interest on any Bearer Security
shall be made at the office of the Companys Paying Agent in the Borough of Manhattan, The City of
New York, if (but only if) payment in Dollars of the full amount of such principal, premium or
Make-Whole Amount, or interest, as the case may be, at all offices or agencies outside the United
States maintained for the purpose by the Company in accordance with this Indenture, is illegal or
effectively precluded by exchange controls or other similar restrictions.
The Company may from time to time designate one or more other offices or agencies (in or
outside the Place of Payment) where the Securities of one or more series may be presented or
surrendered for any or all of such purposes, and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
62
relieve the Company of its obligation to maintain an office or agency in accordance with the
requirements set forth above for Securities of any series for such purposes. The Company will give
prompt written notice to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency. Unless otherwise specified with respect to any
Securities pursuant to Section 301 with respect to a series of Securities, the Company hereby
designates as a Place of Payment for each series of Securities, each of (i) the office or agency of
the Company in the Borough of Manhattan, The City of New York, and (ii) the Corporate Trust Office
of the Trustee (as Paying Agent); and the Company hereby initially appoints the Trustee at its
Corporate Trust Office as Paying Agent in such city; and the Company hereby initially appoints as
its agent to receive all such presentations, surrenders, notices and demands each of the Trustee,
at its Corporate Trust Office.
Unless otherwise specified with respect to any Securities pursuant to Section 301, if and so
long as the Securities of any series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of Securities, or as so
required, at least one exchange rate agent (of which it shall give written notice to the Trustee).
SECTION 1003. Money for Securities Payments to Be Held in Trust. If the Company shall
at any time act as its own Paying Agent with respect to any series of any Securities and any
related coupons, it will, on or before each due date of the principal of (and premium or Make-Whole
Amount, if any), or interest on any of the Securities of that series, segregate and hold in trust
for the benefit of the Persons entitled thereto a sum in the currency or currencies, currency unit
or units or composite currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series)
sufficient to pay the principal (and premium or Make-Whole Amount, if any) or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and
will promptly notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for any series of Securities and any
related coupons, it will, on or before each due date of the principal of (and premium or Make-Whole
Amount, if any), or interest on any Securities of that series, deposit with a Paying Agent a sum
(in the currency or currencies, currency unit or units or composite currency or currencies
described in the preceding paragraph) sufficient to pay the principal (and premium or Make-Whole
Amount, if any) or interest so becoming due, such sum to be held in
trust for the benefit of the Persons entitled to such principal, premium or Make-Whole Amount,
if any, or interest and (unless such Paying Agent is the Trustee) the Company will promptly notify
the Trustee of its action or failure so to act.
The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will
(1) hold all sums held by it for the payment of principal of (and premium or
Make-Whole Amount, if any) or interest on Securities in trust for the benefit of the
63
Persons
entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as
herein provided;
(2) give the Trustee notice of any default by the Company (or any other obligor
upon the Securities) in the making of any such payment of principal (and premium or
Make-Whole Amount, if any) or interest on the Securities of that series; and
(3) at any time during the continuance of any such default upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such sums.
Except as otherwise provided in the Securities of any series, and subject to applicable laws,
any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for
the payment of the principal of (and premium or Make-Whole Amount, if any) or interest on any
Security of any series and remaining unclaimed for two years after such principal (and premium or
Make-Whole Amount, if any) or interest has become due and payable shall be paid to the Company upon
Company Request or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment of such principal of (and premium or Make-Whole Amount, if any) or interest on
any Security, without interest thereon, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to be published once,
in an Authorized Newspaper, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Company.
SECTION 1004. Existence. Subject to Article Eight, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence, all material rights (by
certificate of incorporation, by-laws and statute) and material franchises; provided,
however, that the Company shall not be required to preserve any such right or franchise if
the Board of Directors shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company.
SECTION 1005. Maintenance of Properties. The Company will cause all of its material
properties used or useful in the conduct of its business or the business of any Subsidiary to be
maintained and kept in good condition, repair and working order, normal wear and tear, casualty and
condemnation excepted, and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof
64
(and the Company
may take out of service for a period of time, any of its properties that have been condemned or
suffered any loss due to casualty in order to make such repairs, betterments and improvements), all
as in the judgment of the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that the Company and its Subsidiaries shall not be prevented from (i) removing
permanently any property that has been condemned or suffered a loss due to casualty based on the
Companys reasonable judgment that such removal is in the best interest of the Company, or (ii)
selling or otherwise disposing of their properties for value in the ordinary course of business.
SECTION 1006. Insurance. The Company will cause each of its and its Subsidiaries
insurable properties to be insured against loss or damage in an amount deemed reasonable by the
Board of Directors with insurers of recognized responsibility.
SECTION 1007. Payment of Taxes and Other Claims. The Company will pay or discharge or
cause to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments
and governmental charges levied or imposed upon it or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary, and (2) all lawful claims for labor, materials and
supplies which, if unpaid, might by law become a lien upon the property of the Company or any
Subsidiary; provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate proceedings.
SECTION 1008. Statement as to Compliance. The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year, a brief certificate from the principal executive
officer, principal financial officer or principal accounting officer as to his or her knowledge of
the Companys compliance with all conditions and covenants under this Indenture and, in the event
of any noncompliance, specifying such noncompliance and the nature and status thereof. For
purposes of this Section 1008, such
compliance shall be determined without regard to any period of grace or requirement of notice under
this Indenture.
SECTION 1009. Waiver of Certain Covenants. The Company may omit in any particular
instance to comply with any term, provision or condition set forth in Sections 1004 to 1008,
inclusive, if before or after the time for such compliance the Holders of at least a majority in
principal amount of all outstanding Securities of such series, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such covenant or condition, but
no such waiver shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations of the Company and
the duties of the Trustee in respect of any such term, provision or condition shall remain in full
force and effect.
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ARTICLE ELEVEN REDEMPTION OF SECURITIES
SECTION 1101. Applicability of Article. Securities of any series which are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for Securities of any series) in accordance with
this Article.
SECTION 1102. Election to Redeem; Notice to Trustee. The election of the Company to
redeem any Securities shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of less than all of the Securities of any series, the
Company shall, at least 45 days prior to the giving of the notice of redemption in Section 1104
(unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be redeemed. In the
case of any redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish
the Trustee with an Officers Certificate evidencing compliance with such restriction.
SECTION 1103. Selection by Trustee of Securities to Be Redeemed. If less than all the
Securities of any series issued on the same day with the same terms are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series issued on such date
with the same terms not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate and which may provide for the selection for redemption of portions (equal to
the minimum authorized denomination for Securities of that series or any integral multiple thereof)
of the principal amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series.
The Trustee shall promptly notify the Company and the Security Registrar (if other than
itself) in writing of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Security redeemed or to
be redeemed only in part, to the portion of the principal amount of such Security which has been or
is to be redeemed.
SECTION 1104. Notice of Redemption. Notice of redemption shall be given in the manner
provided in Section 106, not less than 30 days nor more than 60 days prior to the Redemption Date,
unless a shorter period is specified by the terms of such series established pursuant to Section
301, to each Holder of Securities to be redeemed, but failure to give such notice in the manner
herein provided to the Holder of any Security designated for redemption as a whole or in part, or
any defect in the notice to any such Holder, shall not affect the validity of the proceedings for
the redemption of any other such Security or portion thereof.
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Any notice that is mailed to the Holders of Registered Securities in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not the Holder receives
the notice.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price, accrued interest to the Redemption Date payable as
provided in Section 1106, if any,
(3) if less than all Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amount) of the
particular Security or Securities to be redeemed,
(4) in case any Security is to be redeemed in part only, the notice which relates
to such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the holder will receive, without a charge, a new Security or Securities of
authorized denominations for the principal amount thereof remaining unredeemed,
(5) that on the Redemption Date the Redemption Price and accrued interest to the
Redemption Date payable as provided in Section 1106, if any, will become due and payable
upon each such Security, or the portion thereof, to be redeemed and, if applicable, that
interest thereon shall cease to accrue on and after said date,
(6) the Place or Places of Payment where such Securities, together in the case of
Bearer Securities with all coupons appertaining thereto, if any, maturing after the
Redemption Date, are to be surrendered for payment of the Redemption Price and accrued
interest, if any, or for conversion,
(7) that the redemption is for a sinking fund, if such is the case,
(8) that, unless otherwise specified in such notice, Bearer Securities of any
series, if any, surrendered for redemption must be accompanied by all coupons maturing
subsequent to the date fixed for redemption or the amount of any such missing coupon or
coupons will be deducted from the Redemption Price, unless security or indemnity
satisfactory to the Company, the Trustee for such series and any Paying Agent is furnished,
(9) if Bearer Securities of any series are to be redeemed and any Registered
Securities of such series are not to be redeemed, and if such Bearer Securities may be
exchanged for Registered Securities not subject to redemption on this Redemption Date
pursuant to Section 305 or otherwise, the last date, as determined by the Company, on which
such exchanges may be made,
(10) the CUSIP number of such Security, if any, and
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(11) if applicable, that a Holder of Securities who desires to convert Securities
for redemption must satisfy the requirements for conversion contained in such Securities,
the then existing conversion price or rate, the place or places where such Securities may be
surrendered for conversion, and the date and time when the option to convert shall expire.
Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Companys request, by the Trustee in the name and at the expense of
the Company.
SECTION 1105. Deposit of Redemption Price. On or prior to any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its
own Paying Agent, which it may not do in the case of a sinking fund payment under Article Twelve,
segregate and hold in trust as provided in Section 1003) an amount of money in the currency or
currencies, currency unit or units or composite currency or currencies in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 301 for the Securities
of such series) sufficient to pay on the Redemption Date the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities or
portions thereof which are to be redeemed on that date.
If any Securities called for redemption are converted, any money deposited with the Trustee or
with any Paying Agent or so segregated and held in trust for the redemption of such Security shall
be paid to the Company upon Company Request or, if then held by the Company, shall be discharged
from such trust.
SECTION 1106. Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on
the Redemption Date, become due and payable at the Redemption Price therein specified in the
currency or currencies, currency unit or units or composite currency or currencies in which the
Securities of such series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of such series) (together with accrued interest, if any, to the Redemption Date),
and from and after such date (unless the Company shall default in the payment of the Redemption
Price and accrued interest) such Securities shall, if the same were interest-bearing, cease to bear
interest and the coupons for such interest appertaining to any Bearer Securities so to be redeemed,
except to the extent provided below, shall be void. Upon surrender of any such Security for
redemption in accordance with said notice, together with all coupons, if any, appertaining thereto
maturing after the Redemption Date, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest, if any, to the Redemption Date; provided,
however, that installments of interest on Bearer Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless otherwise specified as
contemplated by Section 301, only upon presentation and surrender of coupons for such interest; and
provided further that except as otherwise provided with respect to Securities
convertible into the Companys Common Stock or Preferred Stock, installments of interest on
Registered Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable
to the Holders of
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such Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the provisions of
Section 307.
If any Bearer Security surrendered for redemption shall not be accompanied by all appurtenant
coupons maturing after the Redemption Date, such Security may be paid after deducting from the
Redemption Price an amount equal to the face amount of all such missing coupons, or the surrender
of such missing coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Security shall surrender to the Trustee or
any Paying Agent any such missing coupon in respect of which a deduction shall have been made from
the Redemption Price, such Holder shall be entitled to receive the amount so deducted;
provided, however, that interest represented by coupons shall be payable only at an
office or agency located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon presentation and
surrender of those coupons.
If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium or Make-Whole Amount, if any) shall, until paid, bear
interest from the Redemption Date at the rate borne by the Security.
SECTION 1107. Securities Redeemed in Part. Any Registered Security which is to be
redeemed only in part (pursuant to the provisions of this Article or of Article Twelve) shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the
Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge a new Security or
Securities of the same series, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered. If a Global Security is so surrendered, the Company shall execute and
the Trustee shall authenticate and deliver to the depository, without service charge, a new Global
Security in a denomination equal to and in exchange for the unredeemed portion of the principal of
the Global Security so surrendered.
ARTICLE TWELVE SINKING FUNDS
SECTION 1201. Applicability of Article. The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 301 for Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a mandatory sinking fund payment, and any payment in excess of
such minimum amount provided for by the terms of such Securities of any series is herein referred
to as an optional sinking fund payment. If provided for by the terms of any Securities of any
series, the cash amount of any mandatory sinking fund payment may be
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subject to reduction as
provided in Section 1202. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such series.
SECTION 1202. Satisfaction of Sinking Fund Payments with Securities. The Company may,
in satisfaction of all or any part of any mandatory sinking fund payment with respect to the
Securities of a series, (1) deliver Outstanding Securities of such series (other than any
previously called for redemption) together in the case of any Bearer Securities of such series with
all unmatured coupons appertaining thereto and (2) apply as a credit Securities of such series
which have been redeemed either at the election of the Company pursuant to the terms of such
Securities or through the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, as provided for by the terms of such Securities, or which have otherwise
been acquired by the Company; provided that such Securities so delivered or applied as a
credit have not been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the applicable Redemption Price specified in such Securities for
redemption through operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.
SECTION 1203. Redemption of Securities for Sinking Fund. Not less than 60 days prior
to each sinking fund payment date for Securities of any series, the Company will deliver to the
Trustee an Officers Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that series pursuant to the terms of that series, the portion thereof, if any, which is
to be satisfied by payment of cash in the currency or currencies, currency unit or units or
composite currency or currencies in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 301 for the Securities of such
series) and the portion thereof, if any, which is to be satisfied by delivering and crediting
Securities of that series pursuant to Section 1202, and the optional amount, if any, to be added in
cash to the next ensuing mandatory sinking fund payment, and will also deliver to the Trustee any
Securities to be so delivered and credited. If such Officers Certificate shall specify an
optional amount to be added in cash to the next ensuing mandatory sinking fund payment, the Company
shall thereupon be obligated to pay the amount therein specified. Not less than 30 days before
each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 1104. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 1106 and 1107.
ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS
SECTION 1301. Applicability of Article. Repayment of Securities of any series before
their Stated Maturity at the option of Holders thereof shall be made in accordance with the terms
of such Securities, if any, and (except as otherwise specified by the terms of such series
established pursuant to Section 301) in accordance with this Article.
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SECTION 1302. Repayment of Securities. Securities of any series subject to repayment
in whole or in part at the option of the Holders thereof will, unless otherwise provided in the
terms of such Securities, be repaid at a price equal to the principal amount thereof, together with
interest, if any, thereon accrued to the Repayment Date specified in or pursuant to the terms of
such Securities. The Company covenants that on or prior to the Repayment Date it will deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 1003) an amount of money in the currency or currencies,
currency unit or units or composite currency or currencies in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 301 for the Securities of such
series) sufficient to pay the principal (or, if so provided by the terms of the Securities of any
series, a percentage of the principal) of, and (except if the Repayment Date shall be an Interest
Payment Date) accrued interest on, all the Securities or portions thereof, as the case may be, to
be repaid on such date.
SECTION 1303. Exercise of Option. Securities of any series subject to repayment at the
option of the Holders thereof will contain an Option to Elect Repayment form on the reverse of
such Securities. In order for any Security to be repaid at the option of the Holder, the Trustee
must receive at the Place of Payment therefor specified in the terms of such Security (or at such
other place or places of which the Company shall from time to time notify the Holders of such
Securities) not earlier than 60 days nor later than 30 days prior to the Repayment Date (1) the
Security so providing for such
repayment together with the Option to Elect Repayment form on the reverse thereof duly completed
by the Holder (or by the Holders attorney duly authorized in writing) or (2) a telegram, telex,
facsimile transmission or a letter from a member of a national securities exchange, or the FINRA,
or a commercial bank or trust company in the United States setting forth the name of the Holder of
the Security, the principal amount of the Security, the principal amount of the Security to be
repaid, the CUSIP number, if any, or a description of the tenor and terms of the Security, a
statement that the option to elect repayment is being exercised thereby and a guarantee that the
Security to be repaid, together with the duly completed form entitled Option to Elect Repayment
on the reverse of the Security, will be received by the Trustee not later than the fifth Business
Day after the date of such telegram, telex, facsimile transmission or letter; provided,
however, that such telegram, telex, facsimile transmission or letter shall only be
effective if such Security and form duly completed are received by the Trustee by such fifth
Business Day. If less than the entire principal amount of such Security is to be repaid in
accordance with the terms of such Security, the principal amount of such Security to be repaid, in
increments of the minimum denomination for Securities of such series, and the denomination or
denominations of the Security or Securities to be issued to the Holder for the portion of the
principal amount of such Security surrendered that is not to be repaid, must be specified. The
principal amount of any Security providing for repayment at the option of the Holder thereof may
not be repaid in part if, following such repayment, the unpaid principal amount of such Security
would be less than the minimum authorized denomination of Securities of the series of which such
Security to be repaid is a part. Except as otherwise may be provided by the terms of any Security
providing for repayment at the option of the Holder thereof, exercise of the repayment option by
the Holder shall be irrevocable unless waived by the Company.
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SECTION 1304. When Securities Presented for Repayment Become Due and Payable. If
Securities of any series providing for repayment at the option of the Holders thereof shall have
been surrendered as provided in this Article and as provided by or pursuant to the terms of such
Securities, such Securities or the portions thereof, as the case may be, to be repaid shall become
due and payable and shall be paid by the Company on the Repayment Date therein specified, and on
and after such Repayment Date (unless the Company shall default in the payment of such Securities
on such Repayment Date) such Securities shall, if the same were interest-bearing, cease to bear
interest and the coupons for such interest appertaining to any Bearer Securities so to be repaid,
except to the extent provided below, shall be void. Upon surrender of any such Security for
repayment in accordance with such provisions, together with all coupons, if any, appertaining
thereto maturing after the Repayment Date, the principal amount of such Security so to be repaid
shall be paid by the Company, together with accrued interest, if any, to the Repayment Date;
provided, however, that coupons whose Stated Maturity is on or prior to the
Repayment Date shall be payable only at an office or agency located outside the United States
(except as otherwise provided in Section 1002) and, unless otherwise specified pursuant to Section
301, only upon presentation and surrender of such coupons; and provided further that, in the case
of Registered Securities, installments of interest, if any, whose Stated Maturity is on or prior to
the Repayment Date shall be payable (but without interest thereon, unless the Company shall default
in the payment thereof) to the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record Dates according to their terms
and the provisions of Section 307.
If any Bearer Security surrendered for repayment shall not be accompanied by all appurtenant
coupons maturing after the Repayment Date, such Security may be paid after deducting from the
amount payable therefor as provided in Section 1302 an amount equal to the face amount of all such
missing coupons, or the surrender of such missing coupon or coupons may be waived by the Company
and the Trustee if there be furnished to them such security or indemnity as they may require to
save each of them and any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to the Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided, however, that interest represented by
coupons shall be payable only at an office or agency located outside the United States (except as
otherwise provided in Section 1002) and, unless otherwise specified as contemplated by Section 301,
only upon presentation and surrender of those coupons.
If the principal amount of any Security surrendered for repayment shall not be so repaid upon
surrender thereof, such principal amount (together with interest, if any, thereon accrued to such
Repayment Date) shall, until paid, bear interest from the Repayment Date at the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) set forth in such Security.
SECTION 1305. Securities Repaid in Part. Upon surrender of any Registered Security
which is to be repaid in part only, the Company shall execute and the Trustee shall authenticate
and deliver to the Holder of such Security, without service charge and at the expense of the
Company, a new Registered Security or Securities of the same series, of any authorized
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denomination
specified by the Holder, in an aggregate principal amount equal to and in exchange for the portion
of the principal of such Security so surrendered which is not to be repaid.
ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE
SECTION 1401. Applicability of Article; Companys Option to Effect Defeasance or Covenant
Defeasance. If, pursuant to Section 301, provision is made for either or both of (a)
Defeasance of the Securities of or within a series under Section 1402 or (b) Covenant Defeasance of
the Securities of or within a series under Section 1403, then the provisions of such Section or
Sections, as the case may be, together with the other provisions of this Article (with such
modifications thereto as may be specified pursuant to Section 301 with respect to any Securities),
shall be applicable to such Securities and any coupons appertaining thereto, and the Company may at
its option by Board Resolution, at any time, with respect to such Securities and any coupons
appertaining thereto, elect to have Section 1402 (if applicable) or Section 1403 (if applicable) be
applied to such Outstanding Securities and any coupons appertaining thereto upon compliance with
the conditions set forth below in this Article.
SECTION 1402. Defeasance and Discharge. Upon the Companys exercise of the above option applicable to this Section with respect to any
Securities of or within a series, the Company shall be deemed to have been discharged from its
obligations with respect to such Outstanding Securities and any coupons appertaining thereto on the
date the conditions set forth in Section 1404 are satisfied (hereinafter, Defeasance). For this
purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the
entire indebtedness represented by such Outstanding Securities and any coupons appertaining
thereto, which shall thereafter be deemed to be Outstanding only for the purposes of Section 1405
and the other Sections of this Indenture referred to in clauses (A) and (B) below, and to have
satisfied all of its other obligations under such Securities and any coupons appertaining thereto
and this Indenture insofar as such Securities and any coupons appertaining thereto are concerned
(and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of such Outstanding Securities and any coupons appertaining
thereto to receive, solely from the trust fund described in Section 1404 and as more fully set
forth in such Section, payments in respect of the principal of (and premium or Make-Whole Amount,
if any) and interest, if any, on such Securities and any coupons appertaining thereto when such
payments are due, (B) the Companys obligations with respect to such Securities under Sections 305,
306, 1002 and 1003, and the Companys obligations under Section 606 hereof (C) the rights, powers,
trusts, duties and immunities of the Trustee hereunder and (D) this Article. Subject to compliance
with this Article Fourteen, the Company may exercise its option under this Section notwithstanding
the prior exercise of its option under Section 1403 with respect to such Securities and any coupons
appertaining thereto.
SECTION 1403. Covenant Defeasance. Upon the Companys exercise of the above option
applicable to this Section with respect to any Securities of or within a series, the Company shall
be released from its obligations under Sections 1004 to 1009, inclusive, and, if specified pursuant
to Section 301, its obligations under any other covenant contained herein or in any
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indenture
supplemental hereto, with respect to such Outstanding Securities and any coupons appertaining
thereto on and after the date the conditions set forth in Section 1404 are satisfied (hereinafter,
Covenant Defeasance), and such Securities and any coupons appertaining thereto shall thereafter
be deemed to be not Outstanding for the purposes of any direction, waiver, consent or declaration
or Act of Holders (and the consequences of any thereof) in connection with Sections 1004 to 1009,
inclusive, or such other covenant, but shall continue to be deemed Outstanding for all other
purposes hereunder. For this purpose, such Covenant Defeasance means that, with respect to such
Outstanding Securities and any coupons appertaining thereto, the Company may omit to comply with
and shall have no liability in respect of any term, condition or limitation set forth in any such
Section or such other covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such Section or such other covenant or by reason of reference in any such
Section or such other covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a default or an Event of Default under Section 501(4) or
501(8) or otherwise, as the case may be, but, except as specified above, the remainder of this
Indenture and such Securities and any coupons appertaining thereto shall be unaffected thereby.
SECTION 1404. Conditions to Defeasance or Covenant Defeasance. The following shall be
the conditions to application of Section 1402 or Section 1403 to any Outstanding Securities of or
within a series and any coupons appertaining thereto:
(a) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 607 who shall agree to comply
with the provisions of this Article Fourteen applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of such Securities and any coupons appertaining thereto, (1)
an amount in such currency, currencies or currency unit in which such Securities and any coupons
appertaining thereto are then specified as payable at Stated Maturity, or (2) Government
Obligations applicable to such Securities and coupons appertaining thereto (determined on the basis
of the currency, currencies or currency unit in which such Securities and coupons appertaining
thereto are then specified as payable at Stated Maturity) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not later
than the due date of any payment of principal of (and premium or Make-Whole Amount, if any) and
interest, if any, on such Securities and any coupons appertaining thereto, money in an amount, or
(3) a combination thereof, in any case, in an amount, sufficient, without consideration of any
reinvestment of such principal and interest, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, (i) the principal of (and premium or Make-Whole Amount, if any) and
interest, if any, on such Outstanding Securities and any coupons appertaining thereto on the Stated
Maturity of such principal or installment of principal or interest and (ii) any mandatory sinking
fund payments or analogous payments applicable to such Outstanding Securities and any coupons
appertaining thereto on the day on which such payments are due and payable in accordance with the
terms of this Indenture and of such Securities and any coupons appertaining thereto.
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(b) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under, this Indenture or any other material agreement or instrument to
which the Company is a party or by which it is bound.
(c) No Event of Default or event which with notice or lapse of time or both would become
an Event of Default with respect to such Securities and any coupons appertaining thereto shall have
occurred and be continuing on the date of such deposit or, insofar as Sections 501(6) and 501(7)
are concerned, at any time during the period ending on the 91st day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until the expiration of such
period).
(d) In the case of an election under Section 1402, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in either case to the
effect that, and based thereon such opinion shall confirm that, the Holders of such Outstanding
Securities and any coupons appertaining thereto will not recognize income, gain or
loss for Federal income tax purposes as a result of such Defeasance and will be subject to
Federal income tax on the same amounts, in the same manner and at the same times as would have been
the case if such Defeasance had not occurred.
(e) In the case of an election under Section 1403, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the Holders of such Outstanding Securities and any
coupons appertaining thereto will not recognize income, gain or loss for Federal income tax
purposes as a result of such Covenant Defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred.
(f) The Company shall have delivered to the Trustee an Officers Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the Defeasance under Section 1402
or the Covenant Defeasance under Section 1403 (as the case may be) have been complied with and an
Opinion of Counsel to the effect that either (i) as a result of a deposit pursuant to subsection
(a) above and the related exercise of the Companys option under Section 1402 or Section 1403 (as
the case may be), registration is not required under the Investment Company Act of 1940, as
amended, by the Company, with respect to the trust funds representing such deposit or by the
Trustee for such trust funds or (ii) all necessary registrations under said Act have been effected.
(g) Notwithstanding any other provisions of this Section, such Defeasance or Covenant
Defeasance shall be effected in compliance with any additional or substitute terms, conditions or
limitations which may be imposed on the Company in connection therewith pursuant to Section 301.
(h) The payment of amounts payable to the Trustee pursuant to this Indenture shall be paid
or provided for to the reasonable satisfaction of the Trustee.
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SECTION 1405. Deposited Money and Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions. Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations (or other property as may be provided pursuant to Section 301)
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1405, the Trustee) pursuant to Section 1404 in respect
of any Outstanding Securities of any series and any coupons appertaining thereto shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Securities and any
coupons appertaining thereto and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Holders of such Securities and any coupons appertaining thereto of all sums due and to
become due thereon in respect of principal (and premium or Make-Whole Amount, if any) and interest,
but such money need not be segregated from other funds except to the extent required by law.
Unless otherwise specified with respect to any Security pursuant to Section 301, if, after a
deposit referred to in Section 1404(a) has been made, (a) the Holder of a Security in respect of
which such deposit was made is entitled to, and does, elect pursuant to Section 301 or the
terms of such Security to receive payment in a currency or currency unit other than that in which
the deposit pursuant to Section 1404(a) has been made in respect of such Security, or (b) a
Conversion Event occurs in respect of the currency or currency unit in which the deposit pursuant
to Section 1404(a) has been made, the indebtedness represented by such Security and any coupons
appertaining thereto shall be deemed to have been, and will be, fully discharged and satisfied
through the payment of the principal of (and premium or Make-Whole Amount, if any), and interest,
if any, on such Security as the same becomes due out of the proceeds yielded by converting (from
time to time as specified below in the case of any such election) the amount or other property
deposited in respect of such Security into the currency or currency unit in which such Security
becomes payable as a result of such election or Conversion Event based on the applicable market
exchange rate for such currency or currency unit in effect on the second Business Day prior to each
payment date, except, with respect to a Conversion Event, for such currency or currency unit in
effect (as nearly as feasible) at the time of the Conversion Event.
The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section 1404 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of such Outstanding Securities and any coupons
appertaining thereto.
Anything in this Article to the contrary notwithstanding, subject to Section 606, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any money or Government
Obligations (or other property and any proceeds therefrom) held by it as provided in Section 1404
which, in the opinion of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, are in excess of the amount thereof
which would then be required to be deposited to effect a Defeasance or Covenant Defeasance, as
applicable, in accordance with this Article.
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ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES
SECTION 1501. Purposes for Which Meetings May Be Called. A meeting of Holders of
Securities of any series may be called at any time and from time to time pursuant to this Article
to make, give or take any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be made, given or taken by Holders of Securities of such
series.
SECTION 1502. Call, Notice and Place of Meetings.
(a) The Trustee may at any time call a meeting of Holders of Securities of any series for
any purpose specified in Section 1501, to be held at such time and at such place as the Trustee
shall determine. Notice of every meeting of Holders of Securities of any series, setting forth the
time and the place of such meeting and in general terms the action proposed to be taken
at such meeting, shall be given, in the manner provided in Section 106, not less than 20 nor
more than 180 days prior to the date fixed for the meeting.
(b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of at
least 25% in principal amount of the Outstanding Securities of any series shall have requested the
Trustee to call a meeting of the Holders of Securities of such series for any purpose specified in
Section 1501, by written request setting forth in reasonable detail the action proposed to be taken
at the meeting, and the Trustee shall not have made the first publication of the notice of such
meeting within 20 days after receipt of such request or shall not thereafter proceed to cause the
meeting to be held as provided herein, then the Company or the Holders of Securities of such series
in the amount above specified, as the case may be, may determine the time and the place for such
meeting and may call such meeting for such purposes by giving notice thereof as provided in
subsection (a) of this Section.
SECTION 1503. Persons Entitled to Vote at Meetings. To be entitled to vote at any
meeting of Holders of Securities of any series, a Person shall be (1) a Holder of one or more
Outstanding Securities of such series, or (2) a Person appointed by an instrument in writing as
proxy for a Holder or Holders of one or more Outstanding Securities of such series by such Holder
or Holders. The only Persons who shall be entitled to be present or to speak at any meeting of
Holders of Securities of any series shall be the Persons entitled to vote at such meeting and their
counsel, any representatives of the Trustee and its counsel and any representatives of the Company
and its counsel.
SECTION 1504. Quorum; Action. The Persons entitled to vote a majority in principal
amount of the Outstanding Securities of a series shall constitute a quorum for a meeting of Holders
of Securities of such series; provided, however, that if any action is to be taken
at such meeting with respect to a consent or waiver which this Indenture expressly provides may be
given by the Holders of not less than a specified percentage in principal amount of the Outstanding
Securities of a series, the Persons entitled to vote such specified percentage in principal amount
of the Outstanding Securities of such series shall constitute a quorum. In the absence of a quorum
within 30 minutes after the time appointed for any such meeting, the
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meeting shall, if convened at
the request of Holders of Securities of such series, be dissolved. In any other case the meeting
may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at the reconvening of any
such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less
than 10 days; at the reconvening of any meeting adjourned or further adjourned for lack of a
quorum, the Persons entitled to vote 25% in aggregate principal amount of the then Outstanding
Securities shall constitute a quorum for the taking of any action set forth in the notice of the
original meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in
Section 1502(a), except that such notice need be given only once not less than five days prior to
the date on which the meeting is scheduled to be reconvened.
Except as limited by the proviso to Section 902, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted by
the affirmative vote of the Persons entitled to vote a majority in aggregate principal amount
of the Outstanding Securities represented at such meeting; provided, however, that,
except as limited by the proviso to Section 902, any resolution with respect to any request,
demand, authorization, direction, notice, consent, waiver or other action which this Indenture
expressly provides may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of the Outstanding Securities of a series may be adopted
at a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid
by the affirmative vote of the Holders of such specified percentage in principal amount of the
Outstanding Securities of that series.
Any resolution passed or decision taken at any meeting of Holders of Securities of any series
duly held in accordance with this Section shall be binding on all the Holders of Securities of such
series and the related coupons, whether or not present or represented at the meeting.
Notwithstanding the foregoing provisions of this Section 1504, if any action is to be taken at
a meeting of Holders of Securities of any series with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action that this Indenture expressly
provides may be made, given or taken by the Holders of a specified percentage in principal amount
of all Outstanding Securities affected thereby, or of the Holders of such series and one or more
additional series:
(i) there shall be no minimum quorum requirement for such meeting; and
(ii) the principal amount of the Outstanding Securities of such series that
vote in favor of such request, demand, authorization, direction, notice, consent,
waiver or other action shall be taken into account in determining whether such
request, demand, authorization, direction, notice, consent, waiver or other action
has been made, given or taken under this Indenture.
SECTION 1505. Determination of Voting Rights; Conduct and Adjournment of Meetings.
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(a) Notwithstanding any provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities of a series in regard
to proof of the holding of Securities of such series and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required
by any such regulations, the holding of Securities shall be proved in the manner specified in
Section 104 and the appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the Person executing the proxy witnessed or guaranteed by any trust
company, bank or banker authorized by Section 104 to certify to the holding of Bearer Securities.
Such regulations may provide that written instruments appointing
proxies, regular on their face, may be presumed valid and genuine without the proof specified
in Section 104 or other proof.
(b) The Trustee shall, by an instrument in writing appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders of Securities as
provided in Section 1502(b), in which case the Company or the Holders of Securities of the series
calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of such series
represented at the meeting.
(c) At any meeting each Holder of a Security of such series or proxy shall be entitled to
one vote for each $1,000 principal amount of the Outstanding Securities of such series held or
represented by him; provided, however, that no vote shall be cast or counted at any
meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the
meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as
a Holder of a Security of such series or proxy.
(d) Any meeting of Holders of Securities of any series duly called pursuant to Section
1502 at which a quorum is present may be adjourned from time to time by Persons entitled to vote a
majority in principal amount of the Outstanding Securities of such series represented at the
meeting, and the meeting may be held as so adjourned without further notice.
SECTION 1506. Counting Votes and Recording Action of Meetings. The vote upon any
resolution submitted to any meeting of Holders of Securities of any series shall be by written
ballots on which shall be subscribed the signatures of the Holders of Securities of such series or
of their representatives by proxy and the principal amounts and serial numbers of the Outstanding
Securities of such series held or represented by them. The permanent chairman of the meeting shall
appoint two inspectors of votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in duplicate, of the
proceedings of each meeting of Holders of Securities of any Series shall be prepared by the
secretary of the meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the fact, setting forth a copy of the notice of the meeting and
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showing that
said notice was given as provided in Section 1502 and, if applicable, Section 1504. Each copy
shall be signed and verified by the affidavits of the permanent chairman and secretary of the
meeting and one such copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the matters therein stated.
ARTICLE SIXTEEN SUBORDINATION OF SECURITIES
SECTION 1601. Agreement to Subordinate. Notwithstanding anything in this Indenture to
the contrary (other than Article Four of this Indenture), the Company covenants and agrees, and
each Holder of a Security, by his acceptance thereof, likewise covenants and agrees, that, to the
extent and in the manner hereinafter set forth in this Article, the Indebtedness represented by the
Securities and the payment of any Obligations with respect to each and all of the Securities are
hereby expressly made subordinate and subject in right of payment to the prior payment in full of
all Senior Indebtedness.
SECTION 1602. Payment Over of Proceeds upon Dissolution, Etc. In the event of (a) any
insolvency or bankruptcy case or Proceeding, or any receivership, liquidation, reorganization or
other similar case or Proceeding in connection therewith, relative to the Company or to its
creditors, as such, or to its assets, or (b) any liquidation, dissolution or other winding up of
the Company, whether voluntary or involuntary and whether or not involving insolvency or
bankruptcy, or (c) any assignment for the benefit of creditors or any other marshaling of assets
and liabilities of the Company, then and in any such event specified in (a), (b) or (c) above (each
such event, if any, herein sometimes referred to as a Proceeding)
(1) the holders of Senior Indebtedness shall first be entitled to receive payment
in full of all Obligations due or to become due on or in respect of all Senior Indebtedness,
or provision shall be made for such payment in cash or cash equivalents or otherwise in a
manner satisfactory to the holders of Senior Indebtedness, before the Holders of the
Securities are entitled to receive any payment or distribution on account of principal of or
premium, if any, or interest on or other Obligations in respect of the Securities or on
account of any purchase, redemption or other acquisition of Securities by the Company or any
Subsidiary (individually and collectively, a Securities Payment), and
(2) any payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities (other than Capital Stock or securities of the
Company as reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment, the payment of which is
subordinate, at least to the extent provided in this Article Sixteen with respect to the
Securities, to the payment in full, without diminution or modification by such plan, of all
Senior Indebtedness), to which the Holders would be entitled except for the provisions of
this Article Sixteen, shall be paid by the liquidating trustee or agent or other person
making such a payment or distribution, directly to the holders of Senior Indebtedness) (or
their representative(s) or trustee(s) acting on their behalf), ratably according to the
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aggregate amounts remaining unpaid on account of the principal of or interest on and other
amounts due on the Senior Indebtedness held or represented by each, to the extent necessary
to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to
any concurrent payment or distribution to the holders of such Senior Indebtedness.
In the event that, notwithstanding the foregoing provisions of this Section 1602, the Trustee
or the Holder of any Security shall have received any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities (other than Capital Stock
or securities of the Company as reorganized or readjusted, or securities of the Company or any
other corporation provided for by a plan of reorganization or readjustment, the payment of which is
subordinate, at least to the extent provided in this Article with respect to the Securities, to the
payment in full, without diminution or modification by such plan, of Senior Indebtedness), before
all Senior Indebtedness is paid in full or payment thereof provided for in cash or cash equivalents
or otherwise in a manner satisfactory to the holders of Senior Indebtedness, such payment or
distribution shall be held in trust for the benefit of, and be paid over to, the holders of the
Senior Indebtedness remaining unpaid (or their representative(s) or trustee(s) acting on their
behalf), ratably as aforesaid, for application to the payment of such Senior Indebtedness until
such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent
payment or distribution to the holders of such Senior Indebtedness.
The consolidation of the Company with, or the merger of the Company into, another Person or
the liquidation or dissolution of the Company following the conveyance or transfer of all or
substantially all of its properties and assets as an entirety to another Person upon the terms and
conditions set forth in Article Eight shall not be deemed a Proceeding for the purposes of this
Section 1602 if the Person formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance or transfer such properties and assets as an entirety, as the
case may be, shall, as a part of such consolidation, merger, conveyance or transfer, comply with
the conditions set forth in Article Eight.
SECTION 1603. No Payment When Senior Indebtedness in Default. Anything in this
Indenture to the contrary notwithstanding, no payment on account of principal of or redemption of,
interest on or other amounts due on the Securities, and no redemption, purchase, or other
acquisition of the Securities, shall be made by or on behalf of the Company (i) unless full payment
of amounts then due for principal and interest and of all other obligations then due on all Senior
Indebtedness has been made or duly provided for pursuant to the terms of the instrument governing
such Senior Indebtedness, (ii) if, at the time of such payment, redemption, purchase or other
acquisition, or immediately after giving effect thereto, there shall exist under any Senior
Indebtedness, or any agreement pursuant to which any Senior Indebtedness is issued, any default,
which default shall not have been cured or waived and which default shall have resulted in the full
amount of such Senior Indebtedness being declared due and payable or (iii) if, at the time of such
payment, redemption, purchase or other acquisition, the Trustee shall have received written notice
from the holder or holders of any Senior Indebtedness or their representative or representatives (a
Payment Blockage Notice) that there exists under such Senior Indebtedness, or any agreement
pursuant to which such Senior Indebtedness is issued, any default, which default shall not have
been cured or waived, permitting the holders thereof to
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declare the full amount of such Senior
Indebtedness due and payable, but only for the period (the Payment Blockage Period) commencing on
the date of receipt of the Payment Blockage Notice and ending (unless earlier terminated by notice
given to the Trustee by the Holders of such Senior Indebtedness) on the earlier of (A) the date on
which such event of default shall have been cured or waived or (B) 180 days from the receipt of the
Payment Blockage Notice. Upon termination of a Payment Blockage Period, payments on account of
principal of or interest on the Securities and redemptions, purchases or other acquisitions may be
made by or on behalf of the Company. Notwithstanding anything herein to the contrary, (A) only one
Payment Blockage Notice may be given during any period of 360 consecutive days with respect to the
same event of default and any other events of default on the same issue of Senior Indebtedness
existing and known to the person giving such notice at the time of such notice and (B) no new
Payment Blockage Period may be commenced by the holder or holders of the same issue of Senior
Indebtedness or their representative or representatives during any period of 360 consecutive days
unless all events of default which were the object of the immediately preceding Payment Blockage
Notice, and any other event of default on the same issue of Senior Indebtedness existing and known
to the person giving such notice at the time of such notice, have been cured or waived.
In the event that, notwithstanding the provisions of this Section 1603, payments are made by
or on behalf of the Company in contravention of the provisions of this Section 1603, such payments
shall be held by the Trustee, any Paying Agent or the Holders, as applicable, in trust for the
benefit of, and shall be paid over to and delivered to, the holders of Senior Indebtedness or their
representative or the trustee under the indenture or other agreement (if any), pursuant to which
any instruments evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, for application to the payment of all Senior Indebtedness remaining unpaid to
the extent necessary to pay all Senior Indebtedness in full in accordance with the terms of such
Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the
holders of Senior Indebtedness.
The provisions of this Section shall not apply to any payment with respect to which Section
1602 would be applicable.
SECTION 1604. Reliance by Senior Indebtedness on Subordination Provisions. Each Holder
of any Security by his acceptance thereof acknowledges and agrees that the foregoing subordination
provisions are, and are intended to be, an inducement and a consideration for each holder of any
Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the
issuance of the Securities, to acquire and continue to hold, or to continue to hold, such Senior
Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on
such subordination provisions in acquiring and continuing to hold or in continuing to hold such
Senior Indebtedness.
SECTION 1605. Subrogation to Rights of Holders of Senior Indebtedness. Subject to the
payment in full of all Obligations due or to become due on or in respect of Senior Indebtedness, or
the provision for such payment in cash or cash equivalents or otherwise in a manner satisfactory to
the holders of Senior
Indebtedness, the Holders of the Securities shall be subrogated to the extent
of the payments or distributions made to the holders of such Senior
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Indebtedness pursuant to the
provisions of this Article Sixteen to the rights of the holders of such Senior Indebtedness to
receive payments and distributions of cash, property and securities applicable to the Senior
Indebtedness until the principal of and premium, if any, and interest on the Securities shall be
paid in full. For purposes of such subrogation, no payments or distributions to the holders of the
Senior Indebtedness of any cash, property or securities to
which the Holders of the Securities or the Trustee would be entitled except for the provisions of
this Article Sixteen, and no payments over pursuant to the provisions of this Article Sixteen to
the holders of Senior Indebtedness by Holders of the Securities or the Trustee, shall, as among the
Company, its creditors other than holders of Senior Indebtedness and the Holders of the Securities,
be deemed to be a payment or distribution by the Company to or on account of the Senior
Indebtedness.
SECTION 1606. Provisions Solely to Define Relative Rights. The provisions of this
Article Sixteen are and are intended solely for the purpose of defining the relative rights of the
Holders of the Securities on the one hand and the holders of Senior Indebtedness on the other hand.
Nothing contained in this Article or elsewhere in this Indenture or in the Securities is intended
to or shall (a) impair, as among the Company, its creditors other than holders of Senior
Indebtedness and the Holders of the Securities, the obligation of the Company, which is absolute
and unconditional (and which, subject to the rights under this Article Sixteen of the holders of
Senior Indebtedness, is intended to rank equally with all other general obligations of the
Company), to pay to the Holders of the Securities the principal of and premium, if any, and
interest on the Securities as and when the same shall become due and payable in accordance with
their terms; or (b) affect the relative rights against the Company of the Holders of the Securities
and creditors of the Company other than the holders of Senior Indebtedness; or (c) prevent the
Trustee or the Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any, under this Article
of the holders of Senior Indebtedness to receive cash, property and securities otherwise payable or
deliverable to the Trustee or such Holder.
SECTION 1607. Trustee to Effectuate Subordination. Each Holder of a Security by his
acceptance thereof authorizes and directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate, as between the Holders of the Securities and the holders of
Senior Indebtedness, the subordination provided in this Article Sixteen and appoints the Trustee
his attorney-in-fact for any and all such purposes, including, in the event of any dissolution,
winding up or liquidation or reorganization under any applicable bankruptcy law of the Company
(whether in bankruptcy, insolvency or receivership Proceedings or otherwise), the timely filing of
a claim for the unpaid balance of such Holders Securities in the form required in such Proceedings
and the causing of such claim to be approved. If the Trustee does not file a claim or proof of
debt in the form required in such Proceedings prior to 30 days before the expiration of the time to
file such claims or proofs, then the holders of Senior Indebtedness, jointly, or their
representatives shall have the right to file an appropriate claim for and on behalf of the Holders
and to demand, sue for, collect, receive and receipt for the payments and distributions in respect
of the Securities which are required to be paid or delivered to the holders of Senior Indebtedness
as provided in this Article Sixteen and to take all such other action in the name of the Holders or
otherwise, as such holder of Senior Indebtedness or representative
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thereof may determine to be
necessary or appropriate for the enforcement of the provisions of this Article Sixteen.
SECTION 1608. No Waiver of Subordination Provisions. No right of any present or future holder of any Senior Indebtedness to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act
on the part of the Company or by any act or failure to act, in good faith, by any such holder or
any representative or trustee therefor, or by any non-compliance by the Company with the terms,
provisions and covenants of this Indenture, regardless of any knowledge thereof any such holder may
have or be otherwise charged with.
Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness may, at any time from time to time, without the consent of or notice to the Trustee or
the Holders of the Securities, without incurring responsibility to the Holders of the Securities
and without impairing or releasing the subordination provided in this Article Sixteen or the
obligations hereunder of the Holders of the Securities to the holders of Senior Indebtedness, do
any one or more of the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Indebtedness, or otherwise amend or supplement in any
manner Senior Indebtedness or any instrument evidencing the same or any agreement under which
Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Indebtedness; (iii) release any Person
liable in any manner for the collection of Senior Indebtedness and settle or compromise Senior
Indebtedness (which, to the extent so settled and compromised, shall be deemed to have been paid in
full for all purposes hereof); (iv) apply any amounts received to any liability of the Company
owing to holders of Senior Indebtedness; and (v) exercise or refrain from exercising any rights
against the Company and any other Person.
SECTION 1609. Notice to Trustee. The Company shall give prompt written notice to the
Trustee of any default or event of default with respect to any Senior Indebtedness or of any fact
known to the Company which would prohibit the making of any payment to or by the Trustee in respect
of the Securities pursuant to the provisions of this Article Sixteen. Notwithstanding the
provisions of this Article Sixteen or any other provision of this Indenture, the Trustee shall not
be charged with knowledge of the existence of any facts which would prohibit the making of any
payment to or by the Trustee in respect of the Securities, unless and until the Trustee shall have
received written notice thereof from the Company or a holder of Senior Indebtedness or from any
representative or trustee acting on their behalf; and, prior to the receipt of any such written
notice, the Trustee, subject to the provisions of Section 612, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall not
have received the notice provided for in this Section at least three Business Days prior to the
date upon which by the terms hereof any money may become payable for any purpose (including,
without limitation, the payment of the principal of and premium, if any, or interest on any
Security), then, anything herein contained to the contrary notwithstanding, the Trustee shall have
full power and authority to receive such money and to apply the same to the purpose for which such
money was received and shall not be affected by any notice to the contrary which may be received by
it within three Business Days prior to such date. Nothing contained in this Article Sixteen or any
other Article of this Indenture or in any of the Securities shall prevent (a)
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the Company, at any
time except during the pendency of any Proceeding, or under the conditions described in Section
1603, from making payments at any time in respect of the Securities, or (b) the application by the
Trustee of any money deposited with it hereunder to the payment of or on account of the Securities,
or the
retention thereof by any Holder, if the Trustee did not have notice, as provided in this Section
1609, that such payment would have been prohibited by the provisions of this Article Sixteen.
Subject to the provisions of Section 612, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a holder of Senior
Indebtedness (or a representative or trustee therefor) to establish that such notice has been given
by a holder of Senior Indebtedness (or a trustee therefor). In the event that the Trustee
determines in good faith that further evidence is required with respect to the right of any Person
as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this
Article Sixteen, the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article Sixteen, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial determination as to
the right of such Person to receive such payment.
SECTION 1610. Reliance on Judicial Order or Certificate of Liquidating Agent. Upon any
payment or distribution of assets of the Company referred to in this Article Sixteen, the Trustee,
subject to the provisions of Section 612, and the Holders of the Securities shall be entitled to
rely upon any order or decree entered by any court of competent jurisdiction in which any
Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person making such
payment or distribution, delivered to the Trustee or to the Holders of Securities, for the purpose
of ascertaining the Persons entitled to participate in such payment or distribution, the holders of
the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article.
SECTION 1611. Trustee Not Fiduciary for Holders of Senior Indebtedness. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness. Nothing
contained in this Article Sixteen or elsewhere in this Indenture, or in any of the Securities,
shall prevent the application by the Trustee of any moneys which were deposited with it hereunder,
prior to its receipt of written notice of facts which would prohibit such application, for the
purpose of the payment of or on account of the principal of or interest on, the Securities unless,
prior to the date on which such application is made by the Trustee, the Trustee shall be charged
with notice under Section 1609 hereof of the facts which would prohibit the making of such
application.
SECTION 1612. Rights of Trustee as Holder of Senior Indebtedness; Preservation of Trustees
Rights. The Trustee in its individual capacity shall be entitled to all the rights set forth
in this Article Sixteen with respect to any Senior Indebtedness which may at any time be held by
it, to the same extent as any other holder of Senior Indebtedness, and nothing in this
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Indenture shall deprive the
Trustee of any of its rights as such holder. Nothing in this Article shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 606.
SECTION 1613. Article Applicable to Paying Agents. In case at any time any Paying
Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder,
the term Trustee as used in this Article Sixteen shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within its meaning as fully
for all intents and purposes as if such Paying Agent were named in this Article in addition to or
in place of the Trustee; provided, however, that Section 1612 shall not apply to
the Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.
ARTICLE SEVENTEEN CONVERSION OF SECURITIES
SECTION 1701. Applicability of Article; Conversion Privilege and Conversion Price.
Securities of any series which are convertible shall be convertible in accordance with their terms
and (except as otherwise specified as contemplated by Section 301 for Securities of any series) in
accordance with this Article Seventeen. Subject to and upon compliance with the provisions of this
Article Seventeen, at any time during the period specified in the Securities, at the option of the
Holder thereof, any Security or any portion of the principal amount thereof which is $1,000 or an
integral multiple of $1,000 may be converted at the principal amount thereof, or of such portion
thereof, into fully paid and nonassessable shares (calculated as to each conversion to the nearest
1/100 of a share) of Common Stock of the Company, at the Conversion Price, determined as
hereinafter provided, in effect at the time of conversion. In case a Security or portion thereof
is called for redemption, such conversion right in respect of the Security or portion so called
shall expire at the close of business on the Business Day immediately preceding the Redemption
Date, unless the Company defaults in making the payment due upon redemption, in which case such
conversion right shall terminate on the date such default is cured.
The price at which shares of Common Stock shall be delivered upon conversion (herein called
the Conversion Price) of Securities of any series shall be specified in such Securities. The
Conversion Price shall be adjusted in certain instances as provided in Section 1704.
In case the Company shall, by dividend or otherwise, declare or make a distribution on its
Common Stock referred to in paragraph (4) of Section 1704, the Holder of each Security, upon the
conversion thereof pursuant to this Article Seventeen subsequent to the close of business on the
date fixed for the determination of stockholders entitled to receive such distribution and prior to
the effectiveness of the Conversion Price adjustment in respect of such distribution pursuant to
paragraph (4) of Section 1704, shall be entitled to receive for each share of Common Stock into
which such Security is converted, the portion of the evidence of indebtedness, shares of Capital
Stock or assets so distributed applicable to one share of Common Stock; provided,
however, that, at the election of the Company (whose election shall be evidenced by a Board
Resolution filed with the Trustee) with respect to all Holders so converting, the Company may, in
lieu of distributing to such Holder any portion of such distribution not consisting of cash or
securities of
the Company, pay such Holder an amount in cash equal to the fair market value thereof (as
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determined in good faith by the Board of Directors, whose determination shall be conclusive and
described in a Board Resolution filed with the Trustee). If any conversion of a Security entitled
to the benefits described in the immediately preceding sentence occurs prior to the payment date
for a distribution to holders of Common Stock which the Holder of the Security so converted is
entitled to receive in accordance with the immediately preceding sentence, the Company may elect
(such election to be evidenced by a Board Resolution filed with the Trustee) to distribute to such
Holder a due bill for the evidences of indebtedness, shares of Capital Stock or assets to which
such Holder is so entitled, provided that such due bill (i) meets any applicable requirements of
the principal over-the-counter market or national securities exchange or other market on which the
Common Stock is then traded, and (ii) requires payment or delivery of such evidences of
indebtedness or assets no later than the date of payment or delivery thereof to holders of Common
Stock receiving such distribution.
SECTION 1702. Exercise of Conversion Privilege. In order to exercise the conversion
privilege, the Holder of any Security to be converted shall surrender such Security, duly endorsed
or assigned to the Company or in blank, at any office or agency maintained by the Company pursuant
to Section 1002, accompanied by written notice to the Company at such office or agency that the
Holder elects to convert such Security or, if less than the entire principal amount thereof is to
be converted, the portion thereof to be converted and shall comply with any additional requirements
set forth in such Security. Securities surrendered for conversion during the period from the close
of business on any Regular Record Date next preceding any Interest Payment Date to the opening of
business on such Interest Payment Date shall (except for Securities the Maturity of which is prior
to such Interest Payment Date) be accompanied by payment in funds acceptable to the Company of an
amount equal to the interest payable on such Interest Payment Date on the principal amount of
Securities being surrendered for conversion and such interest shall be paid on such Interest
Payment Date as provided in Section 307. Except as provided in the preceding sentence, no payment
or adjustment shall be made upon any conversion on account of any interest accrued on the
Securities surrendered for conversion or on account of any dividends on the Common Stock issued
upon conversion.
The Companys delivery to the Holder of the fixed number of shares of the Common Stock of the
Company (and any cash in lieu of any fractional share of Common Stock) into which the Security is
convertible shall be deemed to satisfy the Companys obligation to pay the principal amount of the
Security and all accrued interest and original issue discount that has not previously been paid.
The shares of Common Stock of the Company so delivered shall be treated as issued first in payment
of accrued interest and original issue discount and then in payment of principal. Thus, accrued
interest and original issue discount shall be treated as paid, rather than canceled, extinguished
or forfeited.
Securities shall be deemed to have been converted immediately prior to the close of business
on the day of surrender of such Securities for conversion in accordance with the foregoing
provisions, and at such time the rights of the Holders of such Securities as Holders shall cease,
and the Person or Persons entitled to receive the Common Stock issuable upon conversion shall be
treated for all purposes as the record holder or holders of such Common
Stock at such time. As promptly as practicable on or after the conversion date, the Company
shall issue and shall deliver at such office or agency a certificate or certificates for the number
of
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full shares of Common Stock issuable upon conversion, together with payment in lieu of any
fraction of a share, as provided in Section 1703.
In the case of any Security which is converted in part only, as promptly as practicable on or
after the conversion date the Company shall execute and the Trustee shall authenticate and make
available for delivery to the Holder thereof (or the Depositary in the case of a Global Security),
at the expense of the Company, a new Security or Securities, of authorized denominations in
aggregate principal amount equal to the unconverted portion of the principal amount of such
Security.
SECTION 1703. Fractions of Shares. No fractional shares of Common Stock shall be
issued upon conversion of Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares of Common Stock which shall be
issuable upon conversion thereof shall be computed on the basis of the aggregate principal amount
of the Securities (or specified portions thereof) so surrendered. Instead of any fractional share
of Common Stock which would otherwise be issuable upon conversion of any Security or Securities (or
specified portions thereof), the Company shall pay a cash adjustment (rounded to the nearest cent)
in respect of such fraction in an amount equal to the same fraction of the Closing Price per share
of the Common Stock on the day of conversion (or, if such day is not a Trading Day, on the Trading
Day immediately preceding such day).
SECTION 1704. Adjustment of Conversion Price. The Conversion Price shall be subject to
adjustment from time to time as follows:
(1) If the Company pays or makes a dividend or other distribution (a) on its Common
Stock exclusively in Common Stock or (b) on any other class of Capital Stock of the Company,
which dividend or distribution includes Common Stock of the Company, the Conversion Price in
effect at the opening of business on the day following the date fixed for the determination
of stockholders entitled to receive such dividend or other distribution (the Dividend
Record Date) shall be reduced by multiplying such Conversion Price by a fraction of which
the numerator shall be the number of shares of Common Stock of the Company outstanding at
the close of business on the Dividend Record Date and the denominator shall be the sum of
such number of shares and the total number of shares constituting such dividend or other
distribution. Such reduction shall become effective immediately after the opening of
business on the day following the date fixed for such determination. For the purposes of
this paragraph (1), the number of shares of Common Stock of the Company at any time
outstanding shall not include shares held in the treasury of the Company, but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of shares of
Common Stock. The Company shall not pay any dividend or make any distribution on shares of
Common Stock held in the treasury of the Company.
(2) Subject to paragraph (6) of this Section, if the Company pays or makes a
dividend or other distribution on its Common Stock consisting exclusively of Short Term
Rights (as defined below), or otherwise issues Short Term Rights to all holders of its
Common Stock, the Conversion Price in effect at the opening of business on the day
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following
the record date for the determination of holders of Common Stock entitled to receive such
Short Term Rights (the Rights Record Date) shall be reduced by multiplying such Conversion
Price by a fraction of which the numerator shall be the number of shares of Common Stock of
the Company outstanding at the close of business on the Rights Record Date plus the number
of shares of Common Stock of the Company which the aggregate of the offering price of the
total number of shares of Common Stock so offered for subscription or purchase would
purchase at such current market price and the denominator shall be the number of shares of
Common Stock of the Company outstanding at the close of business on the Rights Record Date
plus the number of shares of Common Stock so offered for subscription or purchase. Such
reduction shall become effective immediately after the opening of business on the day
following the Rights Record Date. For the purposes of this paragraph (2), the number of
shares of Common Stock of the Company at any time outstanding shall not include shares held
in the treasury of the Company, but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock of the Company. The
Company shall not issue any rights, options or warrants in respect of shares of its Common
Stock held in the treasury of the Company. When used in this Section 1704, the term Short
Term Rights shall mean rights, warrants or options entitling the holders thereof (for a
period commencing no earlier than the Rights Record Date and expiring not more than 45 days
after the Rights Record Date) to subscribe for or purchase shares of Common Stock of the
Company at a price per share less than the current market price per share (determined as
provided in paragraph (7) of this Section 1704) of the Common Stock of the Company on the
Rights Record Date.
(3) In case outstanding shares of Common Stock of the Company shall be subdivided
into a greater number of shares of Common Stock, the Conversion Price in effect at the
opening of business on the day following the day upon which such subdivision becomes
effective shall be proportionately reduced, and, conversely, in case outstanding shares of
Common Stock of the Company shall be combined into a smaller number of shares of Common
Stock, the Conversion Price in effect at the opening of business on the day following the
day upon which such combination becomes effective shall be proportionately increased, such
reduction or increase, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or combination becomes
effective.
(4) Subject to the last sentence of this paragraph (4) of this Section, if the
Company, by dividend or otherwise, (a) distributes to all holders of its Common Stock
evidences of its indebtedness, shares of any class of Capital Stock of the Company or other
assets (other than cash dividends out of current or retained earnings), or (b) distributes
to substantially all holders of Common Stock rights or warrants to subscribe for securities
(other than Short Term Rights to which paragraph (2) of this Section 1704 applies), the
Conversion Price shall be reduced by multiplying such Conversion Price by a fraction of
which the numerator shall be the current market price per share (determined
as provided in paragraph (7) of this Section 1704) of the Common Stock of the Company
on the Reference Date (as defined below) less the fair market value (as determined in good
faith by the Board of Directors, whose determination shall be conclusive and described in a
Board Resolution filed with the Trustee), on the
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Reference Date, of the portion of the
evidences of indebtedness and other assets so distributed or of such subscription rights or
warrants applicable to one share of Common Stock (collectively, the Market Value of the
Distribution) and the denominator shall be such current market price per share of the
Common Stock of the Company. Such reduction shall become effective immediately prior to the
opening of business on the day (the Reference Date) following the later of (a) the date
fixed for the payment of such distribution and (b) the date 20 days after notice relating to
such distribution is required to be given pursuant to Section 1706(a). If the Board of
Directors determines the fair market value of any distribution for purposes of this
paragraph (4) by reference to the actual or when issued trading market for any securities
comprising such distribution, it must in doing so consider the prices in such market over
the same period used in computing the current market price per share pursuant to paragraph
(7) of this Section 1704. In the event that, with respect to any distribution to which this
paragraph (4) of Section 1704 would otherwise apply, the Market Value of the Distribution is
greater than the current market price per share of the Common Stock (such distribution being
referred to herein as an Unadjusted Distribution), then the adjustment provided by this
paragraph (4) shall not be made and in lieu thereof the provisions of Section 1711 shall
apply with respect to such Unadjusted Distribution.
(5) The Company may, but shall not be required to, make such reductions in the
Conversion Price, in addition to those required by paragraphs (1), (2), (3), and (4) of
this Section 1704, as it considers to be advisable in order that any event treated for
federal income tax purposes as a dividend of stock or stock rights shall not be taxable to
the recipients. In addition, the Company, from time to time, may decrease the Conversion
Price by any amount and for any reason, temporarily or otherwise, including situations where
the Board of Directors determines such decrease to be fair and appropriate with respect to
transactions in which holders of Common Stock have the right to participate.
(6) Rights or warrants issued or distributed by the Company to all holders of its
Common Stock entitling the holders thereof to subscribe for or purchase shares of Common
Stock or Preferred Stock, which rights or warrants (i) are deemed to be transferred with
such shares of Common Stock, (ii) are not exercisable and (iii) are also issued or
distributed in respect of future issuances of Common Stock, in each case in clauses (i)
through (iii) until the occurrence of a specified event or events (Trigger Events), shall
for purposes of this Section 1704 not be deemed issued or distributed until the occurrence
of the earliest Trigger Event. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article Seventeen shall be entitled to receive the appropriate
number of Common Stock purchase rights (the Rights), if any, and the certificates
representing the Common Stock issued upon conversion shall bear such legends, if any.
Notwithstanding anything to the contrary in this Article Seventeen, there shall not be any
adjustment to the Conversion Price as a result of (i) the distribution of separate
certificates representing the Rights; (ii) the occurrence of certain events entitling
holders of Rights to receive, upon exercise thereof, Common Stock or other securities of
the Company or other securities of another corporation; or (iii) the exercise of such
Rights. No adjustment in the Conversion Price need be made for rights to purchase or the
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sale of Common Stock pursuant to a Company plan providing for reinvestment of dividends or
interest.
(7) For the purpose of any computation under paragraph (2), (4) or (5) of this
Section 1704, the current market price per share of Common Stock of the Company on any
date shall be deemed to be the average of the daily Closing Prices for the 15 consecutive
Trading Days selected by the Company commencing not more than 30 Trading Days before, and
ending not later than, the date in question.
(8) No adjustment in the Conversion Price shall be required unless such adjustment
would require an increase or decrease of at least 1% in the Conversion Price;
provided, however, that any adjustments which by reason of this paragraph
(8) are not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Article Seventeen shall be made to the
nearest cent or to the nearest one-hundredth of a share of Common Stock, as the case may be.
(9) Anything herein to the contrary notwithstanding, in the event the Company shall
declare any dividend or distribution requiring an adjustment in the Conversion Price
hereunder and shall, thereafter and before the payment of such dividend or distribution to
stockholders, legally abandon its plan to pay such dividend or distribution, the Conversion
Price then in effect hereunder, if changed to reflect such dividend or distribution, shall
upon the legal abandonment of such plan be changed to the Conversion Price which would have
been in effect at the time of such abandonment (after giving effect to all other adjustments
not so legally abandoned pursuant to the provisions of this Article Seventeen) had such
dividend or distribution never been declared.
(10) Notwithstanding any other provision of this Section 1704, no adjustment to the
Conversion Price shall reduce the Conversion Price below the then par value per share of the
Common Stock of the Company, and any such purported adjustment shall instead reduce the
Conversion Price to such par value. Notwithstanding the foregoing sentence, the Company
hereby covenants that it will from time to time take all such action as may be required to
assure that the par value per share of the Common Stock is at all times equal to or less
than the Conversion Price.
(11) In the event that this Article Seventeen requires adjustments to the
Conversion Price under more than one of paragraphs (1), (2), (3) or (4) of this Section
1704, and the record or effective dates for the transaction giving rise to such adjustments
shall occur on the same date, then such adjustments shall be made by applying (to the extent
they are applicable), first, the provisions of paragraph (3) of this Section 1704, second,
the provisions of paragraph (1) of this Section 1704, third, the provisions of paragraph (4)
of this Section 1704 and, fourth, the provisions of paragraph (2) of this Section 1704.
Anything herein to the contrary notwithstanding, no single event shall require or result in
duplicative adjustments in the Conversion Price pursuant to this Section 1704. After an
adjustment to the Conversion Price under this Article Seventeen, any subsequent event
requiring an adjustment under this Article Seventeen shall cause an
adjustment to the Conversion Price as so adjusted. If, after an adjustment, a Holder
of a Security upon conversion of such Security receives shares of two or more classes of
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Capital Stock of the Company, the Conversion Price shall thereafter be subject to adjustment
upon the occurrence of an action taken with respect to any such class of Capital Stock as is
contemplated by this Article Seventeen with respect to the Common Stock in this Article
Seventeen.
SECTION 1705. Notice of Adjustments of Conversion Price. Whenever the Conversion Price
is adjusted as herein provided:
(1) the Company shall compute the adjusted Conversion Price in accordance with
Section 1704 or Section 1711 and shall prepare an Officers Certificate setting forth the
adjusted Conversion Price and showing in reasonable detail the facts upon which such
adjustment is based, and such certificate shall forthwith be filed (with a copy to the
Trustee) at each office or agency maintained for the purpose of conversion of any Securities
pursuant to Section 1002; and
(2) a notice stating that the Conversion Price has been adjusted and setting forth
the adjusted Conversion Price shall forthwith be required, and as soon as practicable after
it is required, such notice shall be mailed by the Company to all Holders at their last
addresses as they shall appear in the Security Register.
SECTION 1706. Notice of Certain Corporate Action. In case:
(1) the Company shall take any action that would require a Conversion Price
adjustment pursuant to Section 1704 or Section 1711; or
(2) there shall occur any reclassification of the Common Stock of the Company
(other than a subdivision or combination of its outstanding shares of Common Stock), or any
consolidation or merger to which the Company is a party, or the sale, transfer or lease of
all or substantially all of the assets of the Company and for which approval of any
stockholders of the Company is required; or
(3) there shall occur the voluntary or involuntary dissolution, liquidation or
winding up of the Company, then the Company shall cause to be filed at each office or agency
maintained for the purpose of conversion of Securities pursuant to Section 1002, and shall
cause to be mailed to all Holders at their last addresses as they shall appear in the
Security Register, at least 10 days prior to the applicable record, effective or expiration
date hereinafter specified, a notice stating (x) the date on which a record is to be taken
for the purpose of any dividend, distribution or granting of rights, warrants or options,
or, if a record is not to be taken, the date as of which the holders of Common Stock of
record to be entitled to such dividend, distribution, rights, options or warrants are to be
determined, or (y) the date on which such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up is expected to become effective, and, if
applicable, the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding up.
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SECTION 1707. Company to Reserve Common Stock. The Company shall at all times reserve
and keep available, free from preemptive rights, out of its authorized but unissued Common Stock,
for the purpose of effecting the conversion of Securities, a number of shares of Common Stock for
the conversion of all outstanding Securities of any series which is convertible into Common Stock.
SECTION 1708. Taxes on Conversion. The Company will pay any and all taxes that
may be payable in respect of the issue or delivery of shares of Common Stock on conversion of
Securities pursuant hereto. The Company shall not, however, be required to pay any tax which may
be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock
in a name other than that of the Holder of the Security or Securities to be converted, and no such
issue or delivery shall be made unless and until the Person requesting such issue has paid to the
Company the amount of any such tax, or has established to the satisfaction of the Company that such
tax has been paid.
SECTION 1709. Covenants as to Common Stock. The Company covenants that all shares of Common
Stock which may be issued upon conversion of Securities will upon issue be duly and validly issued,
fully paid and nonassessable, free of preemptive or any similar rights, and, except as provided in
Section 1708, the Company will pay all taxes, liens and charges with respect to the issue thereof.
The Company will endeavor promptly to comply with all Federal and state securities laws
regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if any,
and will list or cause to have quoted such shares of Common Stock on each national securities
exchange or in the over-the-counter market or such other market on which the Common Stock is then
listed or quoted.
SECTION 1710. Cancellation of Converted Securities. All Securities delivered for
conversion shall be delivered to the Trustee to be cancelled by or at the direction of the Trustee,
which shall dispose of the same as provided in Section 309.
SECTION 1711. Provisions in Case of Consolidation, Merger or Sale of Assets; Special
Distributions. If any of the following shall occur, namely: (i) any reclassification or
change of outstanding shares of Common Stock issuable upon conversion of Securities (other than a
change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination), (ii) any consolidation or merger to which the Company is a
party other than a merger in which the Company is the continuing corporation and which does not
result in any reclassification of, or change (other than a change in name, or par value, or from
par value to no par value, or from no par value to par value or as a result of a subdivision or
combination) in, outstanding shares of Common Stock or (iii) any sale or conveyance of all or
substantially all of the property or business of the Company as an entirety, then the Person formed
by such consolidation or resulting from such merger or which acquires such properties or assets, as
the case may be, shall as a condition precedent to such transaction execute and deliver to the
Trustee a supplemental indenture providing that the Holder of each Security then outstanding shall
have the right thereafter, during the period such Security shall be
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convertible as specified in
Section 1701, to convert such Security only into the kind and amount of securities, cash and other
property receivable, if any, upon such consolidation, merger, sale, transfer or lease by a holder
of the number of shares of Common Stock of the Company into which such Security might have been
converted immediately prior to such consolidation, merger, sale, transfer or lease; provided that
the kind and amount of securities, cash and other property so receivable shall be determined on the
basis of the following assumptions. The holder of Common Stock referred to in the foregoing
sentence:
(1) is not (a) a Person with which the Company consolidated, (b) a Person into
which the Company merged or which merged into the Company, or (c) a Person to which such
sale, transfer or lease was made (any Person described in the foregoing clauses (a), (b),
or (c), hereinafter referred to as a Constituent Person), or (d) an Affiliate of a
Constituent Person; and
(2) failed to exercise his rights of election, if any, as to the kind or amount of
securities, cash and other property receivable upon such consolidation, merger, sale,
transfer or lease (provided that if the kind or amount of securities, cash and other
property receivable upon such consolidation, merger, sale transfer or lease is not the same
for each share of Common Stock of the Company in respect of which such rights of election
shall not have been exercised, then for the purpose of this Section 1711 the kind and amount
of securities, cash and other property receivable upon such consolidation, merger, sale,
transfer or lease shall be deemed to be the kind and amount so receivable per share by a
plurality of such shares of Common Stock).
Such supplemental indenture shall provide for adjustments which, for events subsequent to the
effective date of such supplemental indenture, shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article Seventeen. If, in the case of any such
consolidation, merger, sale transfer or lease the stock or other securities and property (including
cash) receivable thereupon by a holder of Common Stock includes shares of stock or other securities
and property of a corporation other than the successor or purchasing corporation, as the case may
be, in such consolidation, merger, sale, transfer or lease then such supplemental indenture shall
also be executed by such other corporation and shall contain such additional provisions to protect
the interests of the Holders of the Securities as the Board of Directors of the Company shall
reasonably consider necessary by reason of the foregoing. The above provisions of this Section
1711 shall similarly apply to successive consolidations, mergers, sales, transfers or leases.
In the event the Company shall execute a supplemental indenture pursuant to this Section 1711,
the Company shall promptly file with the Trustee an Officers Certificate briefly stating the
reasons therefor, the kind or amount of shares of stock or securities or property (including
cash) receivable by Holders of the Securities upon the conversion of their Securities after
any such reclassification, change, consolidation, merger, sale, transfer or lease and any
adjustment to be made with respect thereto.
If the Company makes a distribution to all holders of its Common Stock that constitutes an
Unadjusted Distribution pursuant to the last sentence of paragraph (4) of Section 1704, then, from
and after the record date for determining the holders of Common Stock entitled to receive
94
such distribution (the Distribution Record Date), a Holder of a Security who converts such Security in
accordance with the provisions of this Indenture shall, upon conversion, be entitled to receive, in
addition to the shares of Common Stock into which the Security is convertible, the kind and amount
of evidences of indebtedness, shares of Capital Stock, or other assets or subscription rights or
warrants, as the case may be, comprising the distribution that such Holder would have received if
such Holder had converted the Security immediately prior to the Distribution Record Date.
SECTION 1712. Trustee Adjustment Disclaimer; Company Determination Final. The Trustee
has no duty to determine when an adjustment under this Article Seventeen should be made, how it
should be made or what it should be. The Trustee has no duty to determine whether a supplemental
indenture under Section 1711 need be entered into or whether any provisions of any supplemental
indenture are correct. The Trustee shall not be accountable for and makes no representation as to
the validity or value of any securities or assets issued upon conversion of Securities. The
Trustee shall not be responsible for the Companys failure to comply with this Article Seventeen.
Any determination that the Company or the Board of Directors must make pursuant to this Article
Seventeen is conclusive, absent manifest error.
SECTION 1713. When No Adjustment Required. Except as expressly set forth in Section
1704, no adjustment in the Conversion Price shall be made because the Company issues, in exchange
for cash, property or services, shares of its Common Stock, or any securities convertible into or
exchangeable for shares of its Common Stock, or securities (including warrants, rights and options)
carrying the right to subscribe for or purchase shares of its Common Stock or such convertible or
exchangeable securities.
(1) Notwithstanding anything herein to the contrary, no adjustment in the
Conversion Price shall be made pursuant to Section 1704 in respect of any dividend or
distribution if the Holders may participate therein (on a basis to be determined in good
faith by the Board of Directors) and receive the same consideration they would have received
if they had converted the Securities immediately prior to the record date with respect to
such dividend or distribution.
SECTION 1714. Equivalent Adjustments. In the event that, as a result of an adjustment
made pursuant to Section 1704 above, the holder of any Security thereafter surrendered for
conversion shall become entitled to receive any shares of Capital Stock of the Company other than
shares of its Common Stock, thereafter the Conversion Price of such other shares so receivable upon
conversion of any Securities shall be
subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in this Article Seventeen.
95
SIGNATURES
IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as
of the day and year first above written.
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96
EXHIBIT A
FORM OF REDEEMABLE OR NON-REDEEMABLE SUBORDINATED SECURITY
[Face of Security]
[If the Holder of this Security (as indicated below) is The Depository Trust Company (DTC) or a
nominee of DTC, this Security is a Global Security and the following two legends apply:
Unless this Security is presented by an authorized representative of The Depository Trust Company a
New York corporation (DTC) to the Company or its agent for registration of transfer, conversion,
exchange or payment, and such Security issued is registered in the name of Cede & Co., or in such
other name as requested by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.
Unless and until this Security is exchanged in whole or in part for Securities in certificated
form, this Security may not be transferred except as a whole by DTC to a nominee thereof or by a
nominee thereof to DTC or another nominee of DTC or by DTC or any such nominee to a successor of
DTC or a nominee of such successor.]
[If this Security is an Original Issue Discount Security, insert FOR PURPOSES OF SECTION
1273 and 1275 OF THE UNITED STATES INTERNAL REVENUE CODE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON
THIS SECURITY IS ___% OF ITS PRINCIPAL AMOUNT, THE ISSUE DATE IS __________, 20__, AND THE YIELD TO
MATURITY IS ___%. THE METHOD USED TO DETERMINE THE AMOUNT OF ORIGINAL ISSUE DISCOUNT APPLICABLE TO
THE SHORT ACCRUAL PERIOD OF __________, 20__ TO __________, 20__, IS ___% OF THE PRINCIPAL AMOUNT
OF THIS SECURITY.]
AASTROM BIOSCIENCES, INC.
[Designation of Series]
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No. __________
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$__________ |
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CUSIP No. __________ |
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AASTROM BIOSCIENCES, INC., a Michigan corporation (herein referred to as the Company, which term
includes any successor corporation under the Indenture referred to on the reverse hereof), for
value received, hereby promises to pay to __________ or registered assigns the principal sum of
__________ Dollars on __________ (the Stated Maturity Date) [or insert date fixed for
earlier redemption (the Redemption Date, and together with the Stated Maturity Date with
respect to principal repayable on such date, the Maturity Date.)]
[If the Security is to bear interest prior to Maturity, insert and to pay interest
thereon from __________ or from the most recent Interest Payment Date to which interest has been
paid or
A-1
duly provided for, semi-annually on __________ and __________ in each year (each, an Interest
Payment Date), commencing __________, at the rate of ___% per annum, until the principal hereof is
paid or duly provided for. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the Holder in whose name
this Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the __________ or __________ (whether or not
a Business Day), as the case may be, next preceding such Interest Payment Date [at the office or
agency of the Company maintained for such purpose; provided, however, that such
interest may be paid, at the Companys option, by mailing a check to such Holder at its registered
address or by transfer of funds to an account maintained by such Holder within the United States].
Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable
to the Holder on such Regular Record Date, and may be paid to the Holder in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with
the requirements of any over-the-counter market or securities exchange on which the Securities of
this series may be quoted or listed, and upon such notice as may be required by such market or
exchange, all as more fully provided in the Indenture. Interest will be computed on the basis of a
360-day year of twelve 30-day months.]
[If the Security is not to bear interest prior to Maturity, insert The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at the [Stated] Maturity Date and in such case the overdue
principal of this Security shall bear interest at the rate of ___% per annum (to the extent that
the payment of such interest shall be legally enforceable), which shall accrue from the date of
such default in payment to the date payment of such principal has been made or duly provided for.
Interest on any overdue principal shall be payable on demand. Any such interest on any overdue
principal that is not so paid on demand shall bear interest at the rate of ___% per annum (to the
extent that the payment of such interest shall be legally enforceable), which shall accrue from the
date of such demand for payment to the date payment of such interest has been made or duly provided
for, and such interest shall also be payable on demand.]
The principal of this Security payable on the Stated Maturity Date [or the principal of, premium or
Make-Whole Amount, if any, and, if the Redemption Date is not an Interest Payment Date, interest on
this Security payable on the Redemption Date] will be paid against presentation of this Security at
the office or agency of the Company maintained for that purpose in __________, in such coin or
currency of the United States of America as at the time of payment is legal tender for the payment
of public and private debts.
Interest payable on this Security on any Interest Payment Date and on the [Stated] Maturity Date
[or Redemption Date, as the case may be,] will include interest accrued from and including the next
preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or
from and including __________, if no interest has been paid on this Security) to but excluding
such Interest Payment Date or the [Stated] Maturity Date [or Redemption Date, as the case may be.]
If any Interest Payment Date or the [Stated] Maturity Date or [Redemption Date] falls on a day that
is not a Business Day, as defined below, principal, premium or Make-Whole
A-2
Amount, if any, and/or interest payable with respect to such Interest Payment Date or [Stated]
Maturity Date [or Redemption Date, as the case may be,] will be paid on the next succeeding
Business Day with the same force and effect as if it were paid on the date such payment was due,
and no interest shall accrue on the amount so payable for the period from and after such Interest
Payment Date or [Stated] Maturity Date [or Redemption Date, as the case may be.] Business Day
means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which
banking institutions in The City of New York are required or authorized by law, regulation or
executive order to close.
[If this Security is a Global Security, insert All payments of principal, premium or
Make-Whole Amount, if any, and interest in respect of this Security will be made by the Company in
immediately available funds.]
Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.
Unless the Certificate of Authentication hereon has been executed by the Trustee by manual
signature of one of its authorized signatories, this Security shall not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its facsimile
corporate seal.
Dated: __________
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Attest:
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Secretary
A-3
[Reverse of Security]
AASTROM BIOSCIENCES, INC.
This Security is one of a duly authorized issue of securities of the Company (herein called the
Securities), issued and to be issued in one or more series under an
Indenture, dated as of __________, 20__ (herein called the Indenture) between the Company and
____________________, as Trustee (herein called the Trustee, which term includes any successor
trustee under the Indenture with respect to the series of which this Security is a part), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the duly authorized series of
Securities designated on the face hereof (collectively, the Securities), [if applicable,
insert and the aggregate principal amount of the Securities to be issued under such series
is limited to $__________ (except for Securities authenticated and delivered upon transfer of, or
in exchange for, or in lieu of other Securities).] All terms used in this Security which are
defined in the Indenture shall have the meanings assigned to them in the Indenture.
If an Event of Default, as defined in the Indenture, shall occur and be continuing, the principal
of the Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.
[If applicable, insert The Securities may not be redeemed prior to the Stated Maturity
Date.]
[If applicable, insert The Securities are subject to redemption [ (l) (If
applicable, insert on __________ in any year commencing with the year __________ and ending
with the year __________ through operation of the sinking fund for this series at a Redemption
Price equal to 100% of the principal amount, and (2) ] [If applicable, insert at any
time [on or after __________], as a whole or in part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount):
If redeemed on or before __________, ___% and if redeemed during the 12-month period beginning
__________ of the years indicated at the Redemption Prices indicated below.
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and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption [If applicable, insert (whether through operation of the sinking
fund or otherwise)] with accrued interest to the Redemption Date; provided, however, that
installments of interest on this Security whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holder of this Security, or one or more Predecessor Securities, of
record at the
A-4
close of business on the relevant Record Dates referred to on the face hereof, all as provided in
the Indenture.]
[If applicable, insert The Securities are subject to redemption (1) on __________
in any year commencing with the year __________ and ending with the year __________ through
operation of the sinking fund for this series at the Redemption Prices for redemption through
operation of the sinking fund (expressed as percentages of the principal amount) set forth in the
table below, and (2) at any time [on or after __________], as a whole or in part, at the election
of the Company, at the Redemption Prices for redemption otherwise than through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in the table below: If
redeemed during the 12-month period beginning __________ of the years indicated,
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and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date; provided, however, that installments of interest
on this Security whose Stated Maturity is on or prior to such Redemption Date will be payable to
the Holder of this Security, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]
[If applicable, insert Notwithstanding the foregoing, the Company may not, prior to
__________, redeem any Securities as contemplated by [Clause (2) of] the preceding paragraph as a
part of, or in anticipation of, any refunding operation by the application, directly or indirectly,
of moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than ___% per annum.]
[If applicable, insert The sinking fund for the Securities provides for the
redemption on __________ in each year, beginning with the year __________ and ending with the year
__________, of [not less than] $__________] [(mandatory sinking fund) and not more than
$__________] aggregate principal amount of the Securities. [The Securities acquired or redeemed by
the Company otherwise than through [mandatory] sinking fund payments may be credited against
subsequent [mandatory] sinking fund payments otherwise required to be made in the [describe
order] order in which they become due.]]
Notice of redemption will be given by mail to Holders of Securities, not less than 30 nor more
than 60 days prior to the Redemption Date, all as provided in the Indenture.
A-5
In the event of redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation
hereof.
[If applicable, insert conversion provisions set forth in any Board Resolution or indenture
supplemental to the Indenture.]
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority of the aggregate principal amount of all Securities issued
under the Indenture at the time Outstanding and affected thereby. The Indenture also contains
provisions permitting the Holders of not less than a majority of the aggregate principal amount of
the Outstanding Securities, on behalf of the Holders of all such Securities, to waive compliance by
the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture
permit the Holders of not less than a majority of the aggregate principal amount, in certain
instances, of the Outstanding Securities of any series to waive, on behalf of all of the Holders of
Securities of such series, certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and other Securities issued upon the
registration of transfer hereof or conversion or in exchange herefor or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium or Make-Whole Amount, if any) and interest on this Security at the
times, places and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein [and herein] set
forth, the transfer of this Security is registrable in the Security Register of the Company upon
surrender of this Security for registration of transfer at the office or agency of the Company in
any place where the principal of (and premium or Make-Whole Amount, if any) and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or by
his attorney duly authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
As provided in the Indenture and subject to certain limitations therein [and herein] set
forth, this Security is exchangeable for a like aggregate principal amount of Securities of
different authorized denominations but otherwise having the same terms and conditions, as requested
by the Holder hereof surrendering the same.
This Security is subordinated to the prior payment in full in cash of Senior Indebtedness to
the extent set forth in Article Sixteen of the Indenture.
A-6
The Securities of this series are issuable only in registered form [without coupons] in
denominations of $__________ and any integral multiple thereof.
No service charge shall be made for any such registration of transfer or conversion or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith,
Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
No recourse shall be had for the payment of the principal of or premium or Make-Whole Amount,
if any, or the interest on this Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against
any past, present or future stockholder, employee, officer or director, as such, of the Company or
of any successor, either directly or through the Company or any successor, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.
The Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York applicable to agreements made and to be performed entirely in such
State.
A-7
EXHIBIT B
FORMS OF CERTIFICATION
EXHIBIT B-1
FORM OF
CERTIFICATE TO BE GIVEN BY PERSON ENTITLED TO RECEIVE BEARER
SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE
CERTIFICATE
[Insert title or sufficient description of Securities to be delivered]
This is to certify that, as of the date hereof, and except as set forth below, the
above-captioned Securities held by you for our account (i) are owned by person(s) that are not
citizens or residents of the United States, domestic partnerships, domestic corporations or any
estate or trust the income of which is subject to United States Federal income taxation regardless
of its source (United States person(s)), (ii) are owned by United States person(s) that are (a)
foreign branches of United States financial institutions (financial institutions, as defined in
United States Treasury Regulations Section 2.165-12(c)(1)(v) are herein referred to as financial
institutions) purchasing for their own account or for resale, or (b) United States person(s) who
acquired the Securities through foreign branches of United States financial institutions and who
hold the Securities through such United States financial institutions on the date hereof (and in
either case (a) or (b), each such United States financial institution hereby agrees, on its own
behalf or through its agent, that you may advise Aastrom Biosciences, Inc. or its agent that such
financial institution will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the
United States Internal Revenue Code of 1986, as amended, and the regulations thereunder), or (iii)
are owned by United States or foreign financial institution(s) for purposes of resale during the
restricted period (as defined in United States Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and, in addition, if the owner is a United States or foreign financial
institution described in clause (iii) above (whether or not also described in clause (i) or (ii)),
this is to further certify that such financial institution has not acquired the Securities for
purposes of resale directly or indirectly to a United States person or to a person within the
United States or its possessions.
As used herein, United States means the United States of America (including the States and
the District of Columbia); and its possessions include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.
We undertake to advise you promptly by tested telex or by telecopy on or prior to the date on
which you intend to submit your certification relating to the above-captioned Securities held by
you for our account in accordance with your operating procedures if any applicable statement herein
is not correct on such date, and in the absence of any such notification it may be assumed that
this certification applies as of such date.
This certificate excepts and does not relate to [U.S.$] of such interest in the
above-captioned Securities in respect of which we are not able to certify and as to which we
B-1
understand an exchange for an interest in a permanent Global Security or an exchange for and
delivery of definitive Securities (or, if relevant, collection of any interest) cannot be made
until we do so certify.
We understand that this certificate may be required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to
produce this certificate or a copy thereof to any interested party in such proceedings.
Dated: __________
[To be dated no earlier than the 15th day prior to (i) the Exchange Date or (ii) the relevant
Interest Payment Date occurring prior to the Exchange Date, as applicable]
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[Name of Person Making Certification]
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B-2
EXHIBIT B-2
FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR AND CLEARSTREAM S.A. IN
CONNECTION WITH THE EXCHANGE OF A PORTION OF A TEMPORARY GLOBAL
SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE
CERTIFICATE
[Insert title or sufficient description of Securities to be delivered]
This is to certify that, based solely on written certifications that we have received in
writing, by tested telex or by electronic transmission from each of the persons appearing in our
records as persons entitled to a portion of the principal amount set forth below (our Member
Organizations) substantially in the form attached hereto, as of the date hereof, [U.S.$] principal
amount of the above-captioned Securities (i) is owned by person(s) that are not citizens or
residents of the United States, domestic partnerships, domestic corporations or any estate or trust
the income of which is subject to United States Federal income taxation regardless of its source
(United States person(s)), (ii) is owned by United States person(s) that are (a) foreign branches
of United States financial institutions (financial institutions, as defined in U.S. Treasury
Regulations Section 1.165-12(c)(1)(v) are herein referred to as financial institutions)
purchasing for their own account or for resale, or (b) United States person(s) who acquired the
Securities through foreign branches of United States financial institutions and who hold the
Securities through such United States financial institutions on the date hereof (and in either case
(a) or (b), each such financial institution has agreed, on its own behalf or through its agent,
that we may advise Aastrom Biosciences, Inc. or its agent that such financial institution will
comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of
1986, as amended, and the regulations thereunder), or (iii) is owned by United States or foreign
financial institution(s) for purposes of resale during the restricted period (as defined in United
States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, to the further effect, that
financial institutions described in clause (iii) above (whether or not also described in clause (i)
or (ii)) have certified that they have not acquired the Securities for purposes of resale directly
or indirectly to a United States person or to a person within the United States or its possessions.
As used herein, United States means the United States of America (including the States and
the District of Columbia); and its Possessions include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.
We further certify that (i) we are not making available herewith for exchange (or, if
relevant, collection of any interest) any portion of the temporary Global Security representing the
above-captioned Securities excepted in the above-referenced certificates of Member Organizations
and (ii) as of the date hereof we have not received any notification from any of our Member
Organizations to the effect that the statements made by such Member Organizations with respect to
any portion of the part submitted herewith for exchange (or, if relevant, collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.
We understand that this certification is required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
B-3
connection with which this certificate is or would be relevant, we irrevocably authorize you
to produce this certificate or a copy thereof to any interested party in such proceedings.
Dated: __________
[To be dated no earlier than the Exchange Date or the relevant Interest Payment Date occurring
prior to the Exchange Date, as applicable]
[_____________, as Operator of the Euroclear System] [Clearstream Banking Luxembourg]
B-4
exv5w1
Exhibit 5.1
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Dykema Gossett PLLC
2723 South State Street
Suite 400
Ann Arbor, Michigan 48104
www.dykema.com
Tel: (734) 214-7660
Fax: (734) 214-7696 |
June 16, 2011
Aastrom Biosciences, Inc.
Dominos Farm, Lobby K
24 Frank Lloyd Wright Dr.
Ann Arbor, Michigan 48105
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Re: |
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Aastrom Biosciences, Inc. Registration Statement on Form S-3 |
Ladies and Gentlemen:
We have acted as special counsel to Aastrom Biosciences, Inc., a Michigan corporation (the
Company), in connection with the filing with the Securities and Exchange Commission (the
Commission) of a registration statement (the Registration Statement) of the Company on Form S-3
under the Securities Act of 1933, as amended (the Act). The Registration Statement relates to
the Companys:
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common stock, without par value per share (the Common Stock); |
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(ii) |
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preferred stock, without par value per share (the Preferred
Stock); |
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senior debt securities (the Senior Debt Securities) to be
issued under the senior indenture (the Senior Indenture); |
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(iv) |
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subordinated debt securities (the Subordinated Debt
Securities and, together with the Senior Debt Securities, the Debt
Securities) to be issued under the subordinated indenture (the Subordinated
Indenture and, together with the Senior Indenture, the Indentures); |
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(iv) |
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warrants representing rights to purchase Common Stock,
Preferred Stock or Debt Securities (the Warrants); and |
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(v) |
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units representing an interest in two or more securities, which
may be or may not be separable from one another (the Units) |
(collectively, the Common Stock, the Preferred Stock, the Debt Securities, the Warrants and the
Units are referred to herein as the Securities); all of which may be issued from time to time on
California | Illinois | Michigan | Texas | Washington D.C.
Aastrom Biosciences, Inc.
June 16, 2011
Page 2
a delayed or continuous basis pursuant to Rule 415 under the Act at an aggregate initial offering
price not to exceed $100,000,000.
We have been advised by the Company that:
A. The rights, preferences, privileges and restrictions, including voting rights,
dividend rights, conversion rights, redemption privileges and liquidation privileges of
each series of Preferred Stock will be set forth in a certificate of designation to be
approved by the Companys Board of Directors, or in an amendment to the Companys
Restated Articles of Incorporation to be approved by the Companys Board of Directors
and shareholders, and that one or both of these documents will be filed either as an
exhibit to an amendment to the Registration Statement to be filed after the date of
this opinion or as an exhibit to a Current Report on Form 8-K to be filed after the
Registration Statement has become effective;
B. The Senior Debt Securities may be issued pursuant to the Senior Indenture between
the Company and a trustee to be named in such Indenture, which Indenture will be filed
either as an exhibit to an amendment to the Registration Statement to be filed after
the date of this opinion or as an exhibit to a Current Report on Form 8-K to be filed
after the Registration Statement has become effective;
C. The Subordinated Debt Securities may be issued pursuant to the Subordinated
Indenture between the Company and a trustee to be named in such Indenture, which
Indenture will be filed either as an exhibit to an amendment to the Registration
Statement to be filed after the date of this opinion or as an exhibit to a Current
Report on Form 8-K to be filed after the Registration Statement has become effective;
D. The particular terms of any Debt Securities will be set forth in a supplement to
the prospectus forming a part of the Registration Statement;
E. Warrants may be issued pursuant to a warrant agreement to be entered into between the
Company and a warrant agent (the Warrant Agreement). The Warrant Agreement will be
filed either as an exhibit to an amendment to the Registration Statement to be filed
after the date of this opinion or as an exhibit to a Current Report on Form 8-K to be
filed after the Registration Statement has become effective and the particular terms of
any series of Warrants will be set
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Aastrom Biosciences, Inc.
June 16, 2011
Page 3
forth in a supplement to the prospectus forming a
part of the Registration Statement; and
F. Units may issued pursuant to a unit agreement between the Company and a bank or
other financial institution as unit agent (the Unit Agreement). The Unit Agreement
will be filed either as an exhibit to an amendment to the Registration Statement to be
filed after the date of this opinion or as an exhibit to a Current Report on Form 8-K
to be filed after the Registration Statement has become effective and the particular
terms of the Units will be set forth in a supplement to the prospectus forming a part
of the Registration Statement.
In rendering the opinions set forth below, we have assumed that (i) all information contained
in all documents reviewed by us is true and correct; (ii) all signatures on all documents examined
by us are genuine; (iii) all documents submitted to us as originals are authentic and all documents
submitted to us as copies conform to the originals of those documents; (iv) each natural person
signing any document reviewed by us had the legal capacity to do so; (v) the Registration
Statement, and any amendments thereto (including post-effective amendments) will have become
effective and comply with all applicable laws; (vi) a prospectus supplement will have been prepared
and filed with the Commission describing the Securities offered thereby; (vii) all Securities will
be issued and sold in compliance with applicable federal and state securities laws and in the
manner stated in the Registration Statement and the applicable prospectus supplement; (viii) a
definitive purchase, underwriting or similar agreement with respect to any Securities offered will
have been duly authorized and validly executed and delivered by the Company and the other parties
thereto; (ix) the Company has reserved from its authorized but unissued and unreserved shares of
stock, as applicable, a number sufficient to issue all Securities; and (x) the certificates
representing the Securities will be duly executed and delivered.
We have examined the Registration Statement, including the exhibits thereto, and such other
documents, corporate records, and instruments and have examined such laws and regulations as we
have deemed necessary for purposes of rendering the opinions set forth herein. Based upon such
examination and subject to the further provisions hereof, we are of the following opinion:
1. The Common Stock will be validly issued, fully paid and nonassessable, provided that (i)
the Companys Board of Directors or a properly authorized committee thereof has specifically
authorized the issuance of such Common Stock in exchange for a consideration that the Board of
Directors or such committee determines as adequate (any such specific authorization of Securities
being Authorizing Resolutions), (ii) the terms of the offer and sale of the Common Stock have
been duly established in conformity with the Companys Restated
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Aastrom Biosciences, Inc.
June 16, 2011
Page 4
Articles of Incorporation and
Bylaws and do not violate any applicable law or result in a default under or breach of any
agreement or instrument binding on the Company and comply with any requirement or restriction
imposed by any court or governmental body having jurisdiction over the Company, (iii) the Company has received the consideration provided for in the applicable
Authorizing Resolutions, and (iv) certificates evidencing the shares of Common Stock have been duly
executed by the duly authorized officers of the Company in accordance with the Bylaws and
applicable law.
2. The Preferred Stock will be validly issued, fully paid and nonassessable, provided that (i)
such Preferred Stock is specifically authorized for issuance by Authorizing Resolutions, (ii) the
rights, preferences, privileges and restrictions of the Preferred Stock have been established in
conformity with applicable law, (iii) an appropriate certificate of designation approved by the
Companys Board of Directors, or an amendment to the Companys Restated Articles of Incorporation
approved by the Companys Board of Directors and shareholders, has been filed with the Department
of Licensing and Regulatory Affairs of the State of Michigan, (iv) the terms of the offer, issuance
and sale of shares of such class or series of Preferred Stock have been duly established in
conformity with the Companys Restated Articles of Incorporation and Bylaws and do not violate any
applicable law or result in a default under or breach of any agreement or instrument binding upon
the Company and comply with any requirement or restriction imposed by any court or governmental
body having jurisdiction over the Company, (v) the Company has received the consideration provided
for in the applicable Authorizing Resolutions, and (vi) certificates evidencing the shares of
Preferred Stock have been duly executed by the duly authorized officers of the Company in
accordance with applicable law.
3. The Debt Securities, when issued and sold in accordance with the applicable Indenture and
any applicable purchase or agency agreement will constitute valid and legally binding obligations
of the Company, provided that (i) such Debt Securities, the sale thereof and the related Indenture
and all supplemental indentures are specifically authorized for issuance by Authorizing
Resolutions, (ii) the applicable Indenture conforms with applicable law and is enforceable in
accordance with its terms, (iii) the terms of the Debt Securities and of their issue and sale have
been duly established in conformity with the applicable Indenture and any supplemental indenture,
the Companys Restated Articles of Incorporation and Authorizing Resolutions and do not violate any
applicable law or result in a default under or breach of any agreement or instrument binding upon
the Company and comply with any requirement or restriction imposed by any court or governmental
body having jurisdiction over the Company, (iv) the applicable Indenture and any supplemental
indenture in respect of such Debt Securities has been duly authorized, executed and delivered by
each party thereto and such Debt Securities have been duly executed and authenticated in accordance
with the applicable Indenture and offered, issued and sold as contemplated in the
Registration
Statement, (v) the Debt Securities have been duly delivered to the purchasers thereof, in
consideration for which the Company has
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Aastrom Biosciences, Inc.
June 16, 2011
Page 5
received the consideration provided for in the applicable
Authorizing Resolutions and (vi) a Form T-1 has been filed with the Commission with respect to the
trustee executing any Indenture or any supplemental indenture to such Indenture.
4. The Warrants will constitute valid and legally binding obligations of the Company, provided
that (i) such Warrants are specifically authorized for issuance by Authorizing Resolutions which
include the terms upon which the Warrants are to be issued, their form and content and the
consideration for which shares are to be issued upon exercise of the Warrants, (ii) the Warrant
Agreement relating to the Warrants has been duly authorized, executed and delivered and is
enforceable in accordance with its terms, (iii) the terms of the offer, issuance and sale of such
Warrants have been duly established in conformity with the Warrant Agreement, (iv) the Warrant
Agreement and the offer, issuance and sale of the Warrants do not violate any applicable law or
result in a default under or breach of any agreement or instrument binding upon the Company and
comply with any requirement or restriction imposed by any court or governmental body having
jurisdiction over the Company, (v) such Warrants have been duly executed and countersigned in
accordance with the Warrant Agreement and offered, issued and sold as contemplated in the
Registration Statement, the applicable Authorizing Resolutions and the Warrant Agreement, and (vi)
the Company has received the consideration provided for in the applicable Authorizing Resolutions.
5. The Units when sold will constitute valid and legally binding obligations of the Company,
provided that (i) such Units are specifically authorized for issuance by Authorizing Resolutions
which include the terms upon which the Units are to be issued, their form and content, (ii) the
Unit Agreement relating to the Units has been duly authorized, executed and delivered and is
enforceable in accordance with its terms, (iii) the terms of the offer, issuance and sale of such
Units have been duly established in conformity with the Unit Agreement, (iv) the Unit Agreement and
the offer, issuance and sale of the Units do not violate any applicable law or result in a default
under or breach of any agreement or instrument binding upon the Company and comply with any
requirement or restriction imposed by any court or governmental body having jurisdiction over the
Company, (v) such Units have been duly executed and countersigned in accordance with the Unit
Agreement and offered, issued and sold as contemplated in the Registration Statement, the
applicable Authorizing Resolutions and the Unit Agreement, and (vi) the Company has received the
consideration provided for in the applicable Authorizing Resolutions.
The foregoing opinions are qualified to the extent that the enforceability of any document,
instrument or Securities may be limited by or subject to bankruptcy, insolvency, fraudulent
transfer or conveyance, reorganization, moratorium or other similar laws relating to or affecting
creditors rights generally, and general equitable or public policy principles.
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Aastrom Biosciences, Inc.
June 16, 2011
Page 6
We have relied as to certain matters on information obtained from public officials and
officers of the Company.
It is understood that this opinion is to be used only in connection with the offer and sale of
Common Stock, Preferred Stock, Debt Securities, Warrants and Units while the Registration Statement
is in effect.
Please note that we are opining only as to the matters expressly set forth herein, and no
opinion should be inferred as to any other matters. This opinion is based upon currently existing
statutes, rules, regulations and judicial decisions, and we disclaim any obligation to update this
opinion or otherwise advise you of any change in any of these sources of law or subsequent legal or
factual developments which might affect any matters or opinions set forth herein.
You have informed us that you intend to issue Securities from time to time on a delayed or
continuous basis, and this opinion is limited to the laws as in effect on the date hereof. We
understand that prior to issuing any Securities pursuant to the Registration Statement (i) you will
advise us in writing of the terms thereof and (ii) you will afford us an opportunity to (x) review
the operative documents pursuant to which such Securities are to be issued or sold and (y) file
such supplement or amendment to this opinion (if any) as we may reasonably consider necessary or
appropriate.
The forgoing opinions are limited to the laws of the state of Michigan and the federal laws of
the United States. We express no opinion and make no representation with respect to the law of any
other jurisdiction.
We hereby consent to the reference to our firm under the caption Legal Matters in the
Registration Statement and to the filing of this opinion as an exhibit to the Registration
Statement. Such consent does not constitute a consent under Section 7 of the Act, because we have
not certified any part of such Registration Statement and do not otherwise come within the
categories of persons whose consent is required under Section 7 of the Act or the rules and
regulations of the Commission promulgated thereunder.
Very truly yours,
Dykema Gossett pllc
/s/ Dykema Gossett pllc
California | Illinois | Michigan | Texas | Washington D.C.
exv23w1
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in this Registration Statement on Form S-3 of
our report dated April 14, 2011 relating to the consolidated financial statements, which appears in
Aastrom Biosciences, Inc.s Transition Report on Form 10-KT for the six month period ended December
31, 2010. We also consent to the reference to us under the heading Experts in such registration
statement.
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/s/ PricewaterhouseCoopers LLP
Detroit, Michigan
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June 16, 2011 |
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