Document:

exv10w2

 

GUARANTEE

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in connection with
that certain funding agreement (the “Funding Agreement”), entered into by and between Principal
Life Insurance Company, an Iowa insurance company (“Principal Life”), and Principal Life Income
Fundings Trust 2007-95, a New York common law trust (the “Trust”), relating to the notes (the
“Notes”) issued by the Trust, Principal Financial Group, Inc., a Delaware corporation and the
indirect parent company of Principal Life (the “Guarantor”), hereby furnishes to the Trust its full
and unconditional guarantee of the Guaranteed Amounts (as hereinafter defined) as follows:

     1. Guarantee.

         (a) The Guarantor hereby fully, irrevocably, absolutely and unconditionally guarantees, as a
guarantee of payment and not merely as a guarantee of collection, immediate payment when due to the
Trust any payments required to be made by Principal Life to the Trust under the Funding Agreement
which shall become due and payable regardless of whether such payment is due at maturity, on an
interest payment date or as a result of redemption or otherwise (the “Scheduled Payments”) but
shall be unpaid by Principal Life (the “Guaranteed Amounts”). Notwithstanding anything to the
contrary contained herein, in no event shall the Guaranteed Amounts exceed the Deposit (as defined
in the Funding Agreement) of the Funding Agreement, plus accrued but unpaid interest and any other
amounts due and owing under the Funding Agreement, less any amounts paid by Principal Life to the
Trust.

         (b) In the event that Principal Life fails to make a Scheduled Payment in full when due (the
“Payment Notice Date”), then the Trust or Citibank, N.A., as indenture trustee for the benefit of
the holders of the Notes (the “Indenture Trustee”), pursuant to the indenture (the “Indenture”)
between the Trust and the Indenture Trustee, may present the Guarantor with notice (each, a
“Payment Notice”) of such failure in writing on or after the Payment Notice Date. The Payment
Notice shall identify (1) the Funding Agreement, (2) the Trust, (3) the Payment Notice Date and (4)
the amount of the Scheduled Payments not paid by Principal Life to the Trust as of the Payment
Notice Date. Upon receipt of such Payment Notice, the Guarantor will immediately pay the
Guaranteed Amounts pursuant to Section 7.

         (c) In the event that, after receipt of a Payment Notice from the Trust, the Guarantor fails
to make immediate payment to the Trust or the Indenture Trustee of the Guaranteed Amounts, then
the Trust and the Indenture Trustee may enforce the obligations of the Guarantor under this
Guarantee, including by immediately bringing suit directly against the Guarantor (without first
bringing suit against Principal Life) for the Guaranteed Amounts not paid to the Trust as of the
Payment Notice Date.

         (d) This Guarantee is an unsecured, unsubordinated and contingent obligation of the Guarantor
and ranks equally with all other unsecured and unsubordinated obligations of the Guarantor.

1

 

     2. Termination. This Guarantee is a continuing and irrevocable guarantee of the
Guaranteed Amounts now or hereafter existing and shall terminate and be of no further force and
effect with respect to the Funding Agreement and the Notes upon the full payment of the Scheduled
Payments or upon the earlier extinguishment of the obligations of Principal Life under the Funding
Agreement.

     3. Amendments. Subject to the trust agreement relating to the Trust and the Indenture, no
provision of this Guarantee may be waived, amended, supplemented or modified, except by a written
instrument executed by the Trust and the Guarantor.

     4. Assignment; Governing Law. This Guarantee shall inure to the benefit of the Trust and its
successors, assigns and pledgees. This Guarantee shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to conflict of law principles.

     5. Notices. All notices given pursuant to this Guarantee shall be in writing, and shall
either be delivered, mailed or telecopied to the locations listed below or at such other address or
to the attention of such other persons as such party shall have designated for such purpose in a
written notice complying as to delivery with the terms of this Section 5. Each such notice shall
be effective (i) if given by telecopy, when transmitted to the applicable number so specified in
this Section 5 (such notice shall also be sent by mail, with first class postage prepaid), (ii) if
given by mail, three days after deposit in the mails with first class postage prepaid, or (iii) if
given by any other means, when actually delivered at such address.

If to the Guarantor:

Principal Financial Group, Inc.

711 High Street

Des Moines, Iowa 50392

Attention: General Counsel

Telephone: (515) 247-5111

Facsimile: (515) 248-3011

With a copy to:

Principal Life Insurance Company

711 High Street

Des Moines, Iowa 50392

Attention: Jim Fifield

Telephone: (515) 248-9196

Facsimile: (866) 496-6527

If to the Trust:

Principal Life Income Fundings Trust (followed by the number of the Trust specified in this Guarantee)

2

 

c/o U.S. Bank Trust National Association

100 Wall Street, 16th Floor

New York, New York 10005

Attention: Thomas E. Tabor

Telephone: (212) 361-6184

Facsimile: (212) 809-5459

With a copy to:

Citibank, N.A.

Citibank Agency and Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Nancy Forte

Telephone: (212) 816-5685

Facsimile: (212) 816-5527

     6. Representations and Warranties. The Guarantor represents and warrants that: (i) it is duly
organized and in good standing under the laws of the jurisdiction of its organization and has full
capacity and right to make and perform this Guarantee, and all necessary authority has been
obtained; (ii) this Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights and general principles of equity, regardless of whether
enforcement is sought in a proceeding in equity or at law; (iii) the making and performance of this
Guarantee does not and will not violate the provisions of any applicable law, regulation or order,
and does not and will not result in the breach of, or constitute a default under, any material
agreement, instrument or document to which it is a party or by which it or any of its property may
be bound or affected, except to the extent disclosed in the registration statement registering the
issuance of this Guarantee and the Funding Agreement, as amended, supplemented or modified from
time to time (the “Registration Statement”), and to the extent that any such violation, breach or
default does not result in a material adverse effect on the Guarantor; and (iv) all consents,
approvals, licenses and authorizations of, and filings and registrations with, any governmental
authority required under applicable law and regulations for the making and performance of this
Guarantee have been obtained or made and are in full force and effect, except to the extent
disclosed in the Registration Statement and to the extent that the failure to acquire any such
consent, approval, license, authorization, filing or registration does not result in a material
adverse effect on the Guarantor.

     7. Notice of, and Consent to, Security Interest. The Trust hereby notifies the Guarantor that
it has granted to the Indenture Trustee, on behalf of the holders of the Notes, a security interest
in the Collateral (as defined in the Indenture), including, but not limited to, any and all payment
to be made by the Guarantor to the Trust under this Guarantee. The Trust hereby notifies the
Guarantor that it has collaterally assigned to the Indenture Trustee, for the benefit of the
holders of the Notes, this Guarantee. The Guarantor, by executing this Guarantee, hereby (i)
affirms that it has made or simultaneously will make changes to its books and records to reflect
such security interest and collateral assignment, (ii) consents to the security interest

3

 

granted, and collateral assignment made, by the Trust to the Indenture Trustee of this Guarantee,
(iii) agrees to make all payments due under this Guarantee to the Collection Account (as defined in
the Indenture) or any other account designated in writing to the Guarantor by the Indenture Trustee
and (iv) agrees to comply with all orders of the Indenture Trustee with respect to this Guarantee
without any further consent from the Trust.

     8. WAIVER OF JURY TRIAL; FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE
GUARANTOR WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING
OUT OF THIS GUARANTEE. THIS GUARANTEE REPRESENTS THE FINAL AGREEMENT BETWEEN THE GUARANTOR AND THE
TRUST AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS AMONG SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.

	 	 	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL GROUP, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elizabeth D. Swanson	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Elizabeth D. Swanson	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Counsel	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	The Effective Date (as defined in the Funding Agreement)	 	 

Acknowledged and Agreed:

THE PRINCIPAL LIFE INCOME FUNDINGS

TRUST DESIGNATED IN THIS GUARANTEE

	 	 	 	 	 
	 

	 	 	 	 
	By:

	 	U.S. Bank Trust National Association,
not in its individual capacity, but solely in its
capacity as trustee	 	 
	 
	 	 	 	 
	By:

	 	Bankers Trust Company, N.A.,	 	 
	 

	 	under Limited Power of Attorney, dated March 2, 2007	 	 
	 
	 	 	 	 
	By:

	 	/s/ Diana L. Cook	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	Diana L. Cook	 	 
	 
	 	 	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	Date:

	 	The Effective Date (as defined in the Funding Agreement)	 	 

4exv4w1

 

Exhibit 4.1

Form of Note

USG CORPORATION

7.750% Senior Note due 2018

[Global Securities Legend]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF 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.

			
	No. R-1
	 	U.S.$500,000,000
	 
	 	CUSIP No.: 903293 AS 7
	 
	 	ISIN No.: US903293 AS 74

     USG Corporation, a corporation duly organized and existing under the laws of Delaware (herein
called the “Company”, which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the
principal amount set forth above (which shall not exceed $500,000,000) on January 15, 2018, and to
pay interest thereon from September 27, 2007 or from the most recent interest payment date to which
interest has been paid or duly provided for, semi-annually on January 15 and July 15 in each year,
commencing January 15, 2008, at the rate of 7.750% per annum, or as may be adjusted pursuant to the
terms hereof, until the principal hereof is paid or made available for payment.

     The interest so payable, and punctually paid or duly provided for, on any interest payment
date will, as provided in the Indenture, be paid to the Person 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 January 1 or July 1 (whether or not a Business Day), as the
case may be, next preceding such interest payment date. Any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such regular record date
and may either be paid to the Person 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 be paid at
any time in any other lawful manner not inconsistent with the requirements of any

 

 

securities exchange on which the Securities of this series may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the Indenture.

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The
City of New York, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security register or by wire transfer to an
account maintained by the Person entitled thereto as specified in the Security register, provided
that such Person shall have given the Trustee written wire instructions at least five Business Days
prior to the applicable interest payment date.

     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 referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

[Signatures appear on next page]

 

 

     IN WITNESS WHEREOF, USG Corporation has caused this instrument to be duly signed.

	 	 	 	 	 
	 	USG CORPORATION 

 	 
	 	By:  	 	 
	 	 	Name:  	Richard H. Fleming	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Ellis A. Regenbogen	 
	 	 	Title:  	Corporate Secretary and Associate
General Counsel 	 
	 

Dated:

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the Series designated herein and referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	Wells Fargo Bank, National Association, as Trustee 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

 

 

[FORM OF REVERSE SIDE OF SECURITY]

7.750% Senior Note due 2018

     Section 1. Indenture

     The Company issued the Securities under an Indenture, dated as of November 1, 2006, as
supplemented (the “Indenture”), between the Company and the Trustee. The terms of the Securities
include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act as in effect on the date of the Indenture. Terms defined in the Indenture and
not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject
to all terms and provisions of the Indenture, and Securityholders are referred to the Indenture and
the Trust Indenture Act for a statement of such terms and provisions.

     The Securities are senior unsecured obligations of the Company initially limited to
$500,000,000 aggregate principal amount at any one time outstanding, except for Securities
authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of,
Securities pursuant to Sections 2.8, 2.9, 2.11 or 8.5 of the Indenture.

     Section 2. Interest Rate Adjustment

     The interest rate payable on the Securities will be subject to adjustments from time to time
if any of Moody’s Investor Services, Inc. (“Moody’s”), or Standard & Poor’s Ratings Services, a
division of McGraw-Hill, Inc. (“S&P”) or any Substitute Rating Agency (as defined below) downgrades
(or subsequently upgrades) the debt rating assigned to the Securities, as set forth in this Section
2.

     If the rating of the Securities from Moody’s, S&P or any Substitute Rating Agency that rates
the Securities (collectively, the “Rating Agencies”) is decreased to a rating set forth in the
following table with respect to that Rating Agency, the per annum interest rate on the Securities
will increase from 7.750% per annum by the percentage set forth opposite that rating:

	 	 	 	 	 	 	 	 	 	 	 
	Moody’s*	 	Percentage	 	S&P	 	Percentage
	 
	 	 	 	 	 	 	 	 	 	 
	Ba2

	 	 	0.25	%	 	BB
	 	 	0.25	%
	Ba3

	 	 	0.50	%	 	BB-
	 	 	0.50	%
	B1

	 	 	0.75	%	 	B+
	 	 	0.75	%
	B2 or below

	 	 	1.00	%	 	B or below
	 	 	1.00	%

 

			
	*	 	Including the equivalent ratings of any Substitute Rating Agency.

     If at any time the interest rate on the Securities has been adjusted upward as a result
of a decrease in a rating by a Rating Agency and that Rating Agency subsequently increases its
rating with respect to the Securities to any of the threshold ratings set forth above, the per
annum interest rate on the Securities will be decreased such that the per annum interest rate
equals 7.750% per annum plus the percentage set forth opposite the rating in effect immediately
following the increase in the table above; provided that if Moody’s or any Substitute Rating Agency
subsequently increases its rating of the Securities to “Ba1” (or its equivalent if with

 

 

respect to any Substitute Rating Agency) or higher or S&P or any Substitute Rating Agency
subsequently increases its rating of the Securities to “BB+” (or its equivalent if with respect to
any Substitute Rating Agency) or higher, the interest rate on the Securities will be decreased to
the per annum interest rate of 7.750% per annum.

     No adjustment in the interest rate of the Securities shall be made solely as a result of
a Rating Agency ceasing to provide a rating. If at any time less than two Rating Agencies provide a
rating of the Securities, the Company will use its commercially reasonable efforts to obtain a
rating of the Securities from another nationally recognized statistical rating organization, to the
extent one exists, and if another nationally recognized statistical rating organization rates the
Securities (such organization, a “Substitute Rating Agency”), for purposes of determining any
increase or decrease in the per annum interest rate on the Securities pursuant to the table above
(a) such Substitute Rating Agency will be substituted for the last Rating Agency to provide a
rating of the Securities but which has since ceased to provide such rating, (b) the relative
ratings scale used by such Substitute Rating Agency to assign ratings to senior unsecured debt will
be determined in good faith by an independent investment banking institution of national standing
appointed by the Company and, for purposes of determining the applicable ratings included in the
table above with respect to such Substitute Rating Agency, such ratings shall be deemed to be the
equivalent ratings used by Moody’s and S&P in such table and (c) the per annum interest rate on the
Securities will increase or decrease, as the case may be, such that the interest rate equals 7.750%
per annum plus the appropriate percentage, if any, set forth opposite the rating from such
Substitute Rating Agency in the table above (taking into account the provisions of clause (b)
above). For so long as (i) only one Rating Agency provides a rating of the Securities, any increase
or decrease in the interest rate of the Securities necessitated by a reduction or increase in the
rating by that Rating Agency shall be twice the applicable percentage set forth in the table above
and (ii) no Rating Agency provides a rating of the Securities, the interest rate on the Securities
will increase to, or remain at, as the case may be, 2.00% above 7.750% per annum.

     Each adjustment required by any decrease or increase in a rating set forth above, whether
occasioned by the action of Moody’s, S&P or any Substitute Rating Agency, shall be made independent
of any and all other adjustments. In no event shall (1) the per annum interest rate on the
Securities be reduced below 7.750% per annum or (2) the total increase in the per annum interest
rate on the Securities exceed 2.00% above 7.750% per annum.

     If any Rating Agency decreases or increases its rating of the Securities resulting in an
adjustment to the per annum interest rate on the Securities pursuant to this Section 2, the Company
shall notify the Trustee of such rating decrease or increase and
interest rate adjustment no later than the earlier to occur of
(a) the Business Day prior to the next interest payment date
following public announcement of such rating decrease or increase by
such Rating Agency and (b) the second Business Day following a public announcement of such rating decrease or increase by such
Rating Agency.

     Any interest rate increase or decrease described above will take effect on the next Business
Day after the rating change has occurred.

     The interest rates on the Securities will permanently cease to be subject to any
adjustment pursuant to this Section 2 (notwithstanding any subsequent decrease in the ratings by
any Rating Agency) if the Securities become rated “Baa2” (or its equivalent) or higher by Moody’s
(or any

 

 

Substitute Rating Agency) and “BBB” (or its equivalent) or higher by S&P (or any Substitute
Rating Agency), or one of those ratings if only rated by one Rating Agency, in each case with a
stable or positive outlook.

     Section 3. Redemption

     The Securities may be redeemed, in whole or in part, at the option of the Company at any time
or from time to time. The redemption price for the Securities to be redeemed on any redemption
date will be equal to the greater of the following amounts:

	 	•	 	100% of the principal amount of the Securities to be redeemed and
	 
	 	•	 	the sum of the present values of the remaining scheduled payments of
principal of and interest on the Securities to be redeemed on that redemption date (not
including any portion of any payments of interest accrued to the redemption date)
discounted to the redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the applicable Treasury Rate plus 50 basis
points,

plus, in each case, accrued and unpaid interest on the principal amount being redeemed to the
redemption date. The Company shall provide to the Trustee within two Business Days of the
redemption date an updated notice that reflects the redemption price to be used, which shall
include the calculation of the redemption price attached thereto.

     Notwithstanding the foregoing, installments of interest on Securities that are due and payable
on interest payment dates falling on or prior to a redemption date will be payable on the interest
payment date to the Holders as of the close of business on the relevant record date. The
redemption price will be calculated on the basis of a 360-day year consisting of twelve 30-day
months.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities that would be utilized at the time of selection in accordance with customary financial
practice in pricing new issues of corporate debt securities of comparable maturity to the remaining
term of the Securities.

     “Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest Reference Treasury
Dealer Quotations, or (2) if the Independent Investment Banker is unable to obtain five such
Reference Treasury Dealer Quotations, the average of all such quotations obtained by the
Independent Investment Banker.

     “Independent Investment Banker” means either Banc of America Securities LLC or J.P.
Morgan Securities Inc., and their respective successors, or, if both firms are unwilling or unable
to select the Comparable Treasury Issue, an independent investment banking institution of national
standing appointed by the Trustee after approval by the Company.

 

 

     “Reference Treasury Dealer” means (1) each of Banc of America Securities LLC and J.P.
Morgan Securities Inc., or their respective successors; provided, however, that if any of the
foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer”) the Company will substitute another Primary Treasury Dealer and (2) any
three other Primary Treasury Dealers selected by the Independent Investment Banker after
consultation with the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Independent Investment Banker, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New
York City time, on the third Business Day preceding such redemption date.

     “Treasury Rate” means, with respect to any redemption date, (1) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant maturity under the
heading “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury
Issue (if no maturity is within three months before or after the term of the Securities, yields for
the two published maturities most closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or extrapolated from such yields on a
straight line basis, rounding to the nearest month) or (2) if such release (or any successor
release) is not published during the week preceding the calculation date or does not contain such
yields, the rate per year equal to the semi-annual equivalent yield-to-maturity of the Comparable
Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such redemption
date. The Treasury Rate will be calculated on the third Business Day preceding the redemption date.

     Section 4. Repurchase Upon Change of Control Triggering Event

     If a Change of Control Triggering Event occurs, unless the Company has exercised its right to
redeem the Securities as provided in Section 3 above, the Company shall make an offer to each
Securityholder to repurchase all or any part (in integral multiples of $1,000) of that
Securityholder’s Securities at a repurchase price in cash equal to 101% of the aggregate principal
amount of Securities repurchased plus any accrued and unpaid interest on the Securities repurchased
to the date of purchase. Within 30 days following any Change of Control Triggering Event or, at
the option of the Company, prior to any Change of Control, but after the public announcement of the
Change of Control, the Company shall mail a notice to each Securityholder, with a copy to the
Trustee, describing the transaction or transactions that constitute or may constitute the Change of
Control Triggering Event and offering to repurchase Securities on the payment date specified in the
notice, which date will be no earlier than 30 days and no later than 60 days from the date such
notice is mailed. The notice shall, if mailed prior to the date of consummation of the Change of
Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event
occurring on or prior to the payment date specified in the notice.

 

 

     The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934 (the “Exchange Act”), and any other securities laws and regulations thereunder, to the
extent those laws and regulations are applicable in connection with the repurchase of the
Securities as a result of a Change of Control Triggering Event. To the extent that the provisions
of any securities laws or regulations conflict with this Section 4, the Company shall comply with
the applicable securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4 or the Indenture by virtue of such conflict.

     The Company shall, to the extent lawful:

	 	•	 	on the Change of Control Triggering Event payment date, accept for payment
all Securities or portions of Securities properly tendered pursuant to the
aforementioned offer;
	 
	 	•	 	at any time on or prior to the Change of Control Triggering Event payment date,
deposit with the Paying Agent an amount equal to the aggregate purchase price in
respect of all Securities or portions of Securities properly tendered; and
	 
	 	•	 	on the Change of Control Triggering Event payment date or the Business Day
immediately following such date, deliver or cause to be delivered the Securities
properly accepted, together with an Officers’ Certificate stating the aggregate
principal amount of Securities being purchased by the Company.

     The Paying Agent shall promptly mail to each Securityholder of Securities properly tendered
the purchase price for the Securities, and the Trustee shall promptly authenticate and mail (or
cause to be transferred by book-entry) to each Securityholder a new Security equal in principal
amount to any unpurchased portion of any Securities surrendered; provided, that each new Security
will be in a principal amount of $2,000 or an integral multiple of $1,000 above that amount.

     The Company shall not be required to make an offer to repurchase the Securities upon a Change
of Control Triggering Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by the Company and such third party
purchases all Securities properly tendered and not withdrawn under its offer.

     “Below Investment Grade Rating Event” means the Securities are rated below Investment Grade by
both Covered Rating Agencies on any date from the date of the public notice of an arrangement that
could result in a Change of Control until the end of the 60-day period following public notice of
the occurrence of a Change of Control (which period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrade by either of the
Covered Rating Agencies); provided, that a Below Investment Grade Rating Event otherwise arising by
virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a
particular Change of Control (and thus shall not be deemed to constitute a Below Investment Grade
Rating Event for purposes of the definition of Change of Control Triggering Event hereunder) if the
Covered Rating Agency or Covered Rating Agencies making the reduction in rating to which this
definition would otherwise apply do not announce or publicly confirm or inform the Trustee in
writing at its or the Company’s request that the ratings

 

 

reduction was the result, in whole or in part, of any event or circumstance comprised of or
arising as a result of, or in respect of, the applicable Change of Control (whether or not the
applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating
Event).

     “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related transactions, of all
or substantially all of the Company’s properties or assets and those of its subsidiaries
taken as a whole to any “person” or “group” (as that term is used in Section 13(d)(3) of the
Exchange Act), other than the Company or one of its subsidiaries;

     (2) the adoption of a plan relating to the Company’s liquidation or dissolution;

     (3) the first day on which a majority of the members of the Company’s Board of
Directors are not Continuing Directors; or

     (4) the consummation of any transaction or series of related transactions
(including, without limitation, any merger or consolidation) the result of which is that any
“person” or “group” (as that term is used in Section 13(d)(3) of the Exchange Act), other
than the Company or one of its wholly-owned subsidiaries, becomes the beneficial owner,
directly or indirectly, of more than 50% of the then outstanding number of shares of the
Company’s Voting Stock, measured by voting power rather than number of shares.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the
Company’s Board of Directors who (1) was a member of such Board of Directors on the date of the
issuance of the Securities; or (2) was nominated for election or elected to such Board of Directors
with the approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election (either by a specific vote or by approval of
the Company’s proxy statement in which such member was named as a nominee for election as a
director).

     “Covered Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s
or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available
for reasons outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the
Company as a replacement agency for Moody’s or S&P, or both, as the case may be.

     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under
any successor rating categories of Moody’s); a rating of BBB- or better by S&P (or its equivalent
under any successor rating categories of S&P); and the equivalent investment grade credit rating
from any additional Covered Rating Agency or Covered Rating Agencies selected by the Company.

 

 

     “Moody’s” means Moody’s Investor Services Inc.

     “S&P” means Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.

     “Voting Stock” means, with respect to any Person, capital stock of any class or kind the
holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election
of directors (or persons performing similar functions) of such Person, even if the right so to vote
has been suspended by the happening of such a contingency.

     Section 5. Sinking Fund

     The Securities are not subject to any sinking fund.

     Section 6. Denominations; Transfer; Exchange

     The Securities are in registered form without coupons in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof. A Holder may transfer or exchange Securities in
accordance with the Indenture. Upon any transfer or exchange, the Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements or transfer documents and
to pay any taxes required by law or permitted by the Indenture. The Registrar need not register
the transfer of or exchange any Securities selected for redemption or to transfer or exchange any
Securities for a period of 15 days prior to the mailing of a notice of redemption of Securities to
be redeemed.

     Section 7. Persons Deemed Owners

     The registered Holder of this Security may be treated as the owner of it for all purposes.

     Section 8. Unclaimed Money

     If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its written request unless an abandoned
property law designates another Person. After any such payment, Holders entitled to the money must
look only to the Company and not to the Trustee for payment.

     Section 9. Discharge and Defeasance

     Subject to certain conditions as set forth in the Indenture, the Company at any time may
terminate some of or all its obligations under the Securities and the Indenture if the Company
deposits with the Trustee money or U.S. Government Obligations for the payment of principal and
interest on the Securities to redemption or maturity, as the case may be.

     Section 10. Trustee Dealings with the Company

     Subject to certain limitations imposed by the Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities
and may otherwise deal with and collect obligations owed to it by the Company or its affiliates

 

 

and may otherwise deal with the Company or its affiliates with the same rights it would have
if it were not Trustee.

     Section 11. No Recourse Against Others

     A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By accepting a
Security, each Securityholder waives and releases all such liability. The waiver and release are
part of the consideration for the issue of the Securities.

     Section 12. Authentication

     This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.

     Section 13. Governing Law

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     Section 14. CUSIP Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

     The Company will furnish to any Holder of Securities upon written request and without charge
to the Holder a copy of the Indenture which has in it the text of this Security.

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE

OR REGISTRATION OF TRANSFER OF SECURITIES

     This Certificate relates to $_________ principal amount of Securities held in (check
applicable space) ___ book-entry or ___ definitive form by _____________________ (the
“Transferor”).

The Transferor (check one box below):

			
	o	 	has requested the Trustee by written order to deliver
in exchange for its beneficial interest in the Global
Security held by the Depositary a Security or
Securities in definitive, registered form of
authorized denominations in an aggregate principal
amount equal to its beneficial interest in such Global
Security (or the portion thereof indicated above); or

			
	o	 	has requested the Trustee by written order to exchange
or register the transfer of a Security or Securities.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	[INSERT NAME OF TRANSFEROR]	 
	 	 	 
	 

	 	 	 	 	 	 
	Dated:
	 	 	 	 
	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

 

 

SCHEDULE OF EXCHANGES

     The following exchanges of a part of this Book-Entry Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount of increase in	 	Principal Amount of this	 	Signature of
	 	 	Amount of decrease in	 	Principal Amount of	 	Book-Entry Security	 	authorized signatory
	Date of	 	Principal Amount of	 	this Book-Entry	 	following such decrease	 	of Trustee or
	Exchange	 	this Book-Entry Security	 	Security	 	(or increase)	 	Security Custodian
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

 

(Print or type assignee’s name, address and zip code)

 

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint
________________________
agent to transfer this
Security on the books of the Company. The agent may substitute another to act for
him.

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 

 

Sign exactly as your name appears on the other side of this Security.

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