Document:

Exhibit 4.4

 

SUPPLEMENTAL INDENTURE

 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of February 5, 2019 among FIBRIA CELULOSE S.A., a corporation (sociedade por ações) organized under the laws of the Federative Republic of Brazil (“Fibria”), SUZANO AUSTRIA GMBH, a limited liability company incorporated under the laws of the Republic of Austria (the “Issuer”), SUZANO PAPEL E CELULOSE S.A., a corporation (sociedade por ações) organized under the laws of the Federative Republic of Brazil (the “Company”), as a Guarantor and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, as trustee (in such capacity, the “Trustee”).

 

W I T N E S S E T H :

 

WHEREAS the Issuer and the Company have heretofore executed and delivered to the Trustee an Indenture (the “Base Indenture”) dated as of September 20, 2018, providing for the issuance of the U.S.$1,000,000,000 aggregate principal amount of 6.000% Senior Notes due January 15, 2029 (the “Securities”);

 

WHEREAS, Section 11.01 of the Base Indenture provides that under certain circumstances the Issuer and the Company will cause Fibria to execute and deliver to the Trustee a supplemental indenture pursuant to which Fibria will Guarantee payment of the Securities on the same terms and conditions by which the Company has provided its Guarantee as set forth in Article X of the Base Indenture; and

 

WHEREAS, pursuant to Section 9.01 of the Base Indenture, the Trustee, the Issuer and the Company are authorized to execute and deliver this Supplemental Indenture.

 

For and in consideration of the foregoing and for good and valuable consideration, the receipt of which is hereby acknowledged, the Issuer, the Company, Fibria and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows:

 

SECTION 1. Capitalized Terms. Capitalized terms used herein but not defined shall have the meanings assigned to them in the Indenture.

 

SECTION 2. Guarantee. Fibria hereby agrees, jointly and severally with all other Guarantors, to guarantee the Issuer’s obligations under the Securities on the terms and subject to the conditions set forth in Article X of the Base Indenture and to be bound by all other applicable provisions of the Base Indenture.

 

SECTION 3. Ratification of Base Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Base Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Base Indenture for all purposes, and every holder of Securities heretofore or hereafter authenticated and delivered shall be bound hereby.

 

SECTION 4. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK AND FOR ALL PURPOSES SHALL BE CONSTRUED UNDER THE LAWS OF SUCH STATE, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS

 

 

OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 5. Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture.

 

SECTION 6. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

SECTION 7. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction of this Supplemental Indenture.

 

2

 

IN WITNESS WHEREOF, the parties have caused this First Supplemental Indenture to be duly executed as of the date first written above.

 

	
 
    	
Suzano Austria GmbH
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Name:
    	
Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carlos Anibal Almeida
    
	
 
    	
 
    	
Name:
    	
Carlos Anibal Almeida
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Suzano Papel e Celulose S.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Name:
    	
Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carlos Anibal Almeida
    
	
 
    	
 
    	
Name:
    	
Carlos Anibal Almeida
    
	
 
    	
 
    	
Title:
    	
Executive Officer
    

 

[Signature Page to the First Supplemental Indenture]

 

 

IN WITNESS WHEREOF, the parties have caused this First Supplemental Indenture to be duly executed as of the date first written above.

 

	
 
    	
Fibria Celulose S.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Name:
    	
Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Title:
    	
Investor Relations   Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carlos Anibal Almeida
    
	
 
    	
 
    	
Name:
    	
Carlos Anibal Almeida
    
	
 
    	
 
    	
Title:
    	
Executive Officer
    

 

[Signature Page to the First Supplemental Indenture]

 

 

IN WITNESS WHEREOF, the parties have caused this First Supplemental Indenture to be duly executed as of the date first written above.

 

	
 
    	
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
Deutsche Bank National Trust Company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chris Niesz
    
	
 
    	
 
    	
Name:
    	
Chris Niesz
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Debra A. Schwalb
    
	
 
    	
 
    	
Name:
    	
Debra A. Schwalb
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to the First Supplemental Indenture]Exhibit 4.5

 

DATED AS OF MAY 29, 2019

 

SUZANO AUSTRIA GMBH 
 AS ISSUER

 

SUZANO S.A. 
 AS GUARANTOR

 

AND

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

AS TRUSTEE, REGISTRAR, PAYING AGENT AND TRANSFER AGENT

 

 

INDENTURE

 

U.S.$1,000,000,000
 5.000% SENIOR NOTES DUE JANUARY 15, 2030

 

 

WARNING

 

The taking of this document or any certified copy thereof or any document which confirms or refers to this document or any document constituting substitute documentation thereof (each a “Stamp Duty Sensitive Document”) into the Republic of Austria as well as printing out any e-mail communication which confirms or refers to any Stamp Duty Sensitive Document or to which a copy, a pdf-scan or any other scan of any Stamp Duty Sensitive Document is attached in the Republic of Austria and sending any e-mail communication carrying a signature (whether digitally, manuscript or otherwise technically reproduced) which confirms or refers to any Stamp Duty Sensitive Document or to which a copy, a pdf-scan or any other scan of any Stamp Duty Sensitive Document is attached to or from an Austrian addressee may cause the imposition of Austrian stamp duty. Accordingly, keep the original document as well as all certified copies thereof and written and signed confirmations thereof or references thereto and any document constituting substitute documentation thereof outside of the Republic of Austria and do not (i) print out any e-mail communication which confirms or refers to any Stamp Duty Sensitive Document or to which a copy, a pdf-scan or any other scan of any Stamp Duty Sensitive Document is attached in the Republic of Austria and (ii) send any e-mail communication carrying a signature (whether digitally, manuscript or otherwise technically reproduced) which confirms or refers to any Stamp Duty Sensitive Document or to which a copy, a pdf-scan or any other scan of any Stamp Duty Sensitive Document is attached to or from an Austrian addressee.

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I   DEFINITIONS AND INCORPORATION BY REFERENCE
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.01
    	
Definitions
    	
1
    
	
Section 1.02
    	
Incorporation by   Reference of Trust Indenture Act
    	
11
    
	
Section 1.03
    	
Rules of   Construction
    	
12
    
	
 
    	
 
    
	
ARTICLE II   THE SECURITIES
    	
13
    
	
 
    	
 
    	
 
    
	
Section 2.01
    	
Form and Dating
    	
13
    
	
Section 2.02
    	
Execution and   Authentication
    	
13
    
	
Section 2.03
    	
Registrar and Paying   Agent
    	
14
    
	
Section 2.04
    	
Paying Agent to Hold   Money in Trust
    	
14
    
	
Section 2.05
    	
Securityholder Lists
    	
15
    
	
Section 2.06
    	
Transfer and Exchange
    	
15
    
	
Section 2.07
    	
Replacement Securities
    	
17
    
	
Section 2.08
    	
Outstanding Securities
    	
18
    
	
Section 2.09
    	
Temporary Securities
    	
18
    
	
Section 2.10
    	
Cancellation
    	
18
    
	
Section 2.11
    	
CUSIP Numbers and ISINs
    	
19
    
	
Section 2.12
    	
Issuance of Additional   Securities
    	
19
    
	
Section 2.13
    	
Open Market Purchases
    	
19
    
	
 
    	
 
    
	
ARTICLE III   OPTIONAL REDEMPTION OF SECURITIES
    	
19
    
	
 
    	
 
    	
 
    
	
Section 3.01
    	
Optional Redemption
    	
19
    
	
Section 3.02
    	
Notice of Redemption
    	
21
    
	
Section 3.03
    	
Securities Payable on   Redemption Date
    	
22
    
	
Section 3.04
    	
Mandatory Redemption   and Sinking Fund Payments
    	
22
    
	
 
    	
 
    
	
ARTICLE IV   COVENANTS
    	
23
    
	
 
    	
 
    	
 
    
	
Section 4.01
    	
Performance of   Obligations under the Securities
    	
23
    
	
Section 4.02
    	
Reports
    	
23
    
	
Section 4.03
    	
Limitation on   Transactions with Affiliates
    	
24
    
	
Section 4.04
    	
Repurchases at the   Option of the Holders Upon Change of Control
    	
25
    
	
Section 4.05
    	
Limitation on Liens
    	
27
    
	
Section 4.06
    	
Limitation on Sale and   Leaseback Transactions
    	
27
    
	
Section 4.07
    	
Maintenance of   Corporate Existence
    	
27
    

 

i

 

	
Section 4.08
    	
Maintenance of   Properties
    	
28
    
	
Section 4.09
    	
Payment of Taxes and   Other Claims
    	
28
    
	
Section 4.10
    	
Maintenance of Office   or Agency in the State of New York
    	
28
    
	
Section 4.11
    	
Notices of Certain   Events
    	
29
    
	
Section 4.12
    	
Luxembourg Listing
    	
29
    
	
Section 4.13
    	
Additional Amounts
    	
29
    
	
Section 4.14
    	
Payments and Paying   Agent
    	
31
    
	
Section 4.15
    	
Ranking
    	
32
    
	
Section 4.16
    	
Use of Proceeds
    	
32
    
	
 
    	
 
    
	
ARTICLE V   CONSOLIDATION, MERGER, OR SALE OF SUBSTANTIALLY ALL ASSETS
    	
32
    
	
 
    	
 
    	
 
    
	
Section 5.01
    	
Consolidation, Merger   or Sale of Substantially All Assets
    	
32
    
	
 
    	
 
    
	
ARTICLE VI   DEFAULTS AND REMEDIES
    	
34
    
	
 
    	
 
    	
 
    
	
Section 6.01
    	
Events of Default
    	
34
    
	
Section 6.02
    	
Acceleration
    	
35
    
	
Section 6.03
    	
Other Remedies
    	
36
    
	
Section 6.04
    	
Rescission/Annulment of   Declaration; Waiver of Past Defaults
    	
36
    
	
Section 6.05
    	
Control by Majority
    	
36
    
	
Section 6.06
    	
Limitation on Suits
    	
37
    
	
Section 6.07
    	
Rights of Holders to   Receive Payment
    	
37
    
	
Section 6.08
    	
Collection Suit by   Trustee
    	
37
    
	
Section 6.09
    	
Trustee May File   Proofs of Claim
    	
37
    
	
Section 6.10
    	
Priorities
    	
38
    
	
Section 6.11
    	
Undertaking for Costs
    	
38
    
	
Section 6.12
    	
Waiver of Stay or   Extension Laws
    	
38
    
	
 
    	
 
    
	
ARTICLE VII   TRUSTEE
    	
39
    
	
 
    	
 
    	
 
    
	
Section 7.01
    	
Duties of Trustee
    	
39
    
	
Section 7.02
    	
Rights of Trustee
    	
40
    
	
Section 7.03
    	
Individual Rights of   Trustee
    	
42
    
	
Section 7.04
    	
Trustee’s Disclaimer
    	
42
    
	
Section 7.05
    	
Notice of Defaults
    	
42
    
	
Section 7.06
    	
Compensation and   Indemnity
    	
42
    
	
Section 7.07
    	
Replacement of Trustee
    	
43
    
	
Section 7.08
    	
Successor Trustee by   Merger
    	
44
    
	
Section 7.09
    	
Eligibility;   Disqualification
    	
45
    

 

ii

 

	
Section 7.10
    	
Preferential Collection   of Claims Against Issuer
    	
45
    
	
Section 7.11
    	
Appointment of   Co-Trustee
    	
45
    
	
 
    	
 
    
	
ARTICLE VIII   SATISFACTION AND DISCHARGE; DEFEASANCE
    	
46
    
	
 
    	
 
    	
 
    
	
Section 8.01
    	
Satisfaction and   Discharge of Liability on Securities
    	
46
    
	
Section 8.02
    	
Application of Trust   Money
    	
47
    
	
Section 8.03
    	
Repayment to Issuer
    	
47
    
	
Section 8.04
    	
Defeasance
    	
47
    
	
Section 8.05
    	
Reinstatement
    	
48
    
	
 
    	
 
    
	
ARTICLE IX   AMENDMENTS
    	
49
    
	
 
    	
 
    	
 
    
	
Section 9.01
    	
Without Consent of   Holders
    	
49
    
	
Section 9.02
    	
With Consent of Holders
    	
49
    
	
Section 9.03
    	
Substitution of the   Issuer
    	
51
    
	
Section 9.04
    	
Revocation and Effect   of Consents and Waivers
    	
53
    
	
Section 9.05
    	
Notation on or Exchange   of Securities
    	
53
    
	
Section 9.06
    	
Trustee to Sign   Amendments
    	
54
    
	
 
    	
 
    
	
ARTICLE X   GUARANTEE BY THE COMPANY
    	
54
    
	
 
    	
 
    	
 
    
	
Section 10.01
    	
Guarantee
    	
54
    
	
Section 10.02
    	
Guarantee Unconditional
    	
54
    
	
Section 10.03
    	
Termination, Release   and Discharge; Reinstatement
    	
55
    
	
Section 10.04
    	
Waiver by the Company
    	
55
    
	
Section 10.05
    	
Subrogation and   Contribution
    	
55
    
	
Section 10.06
    	
Stay of Acceleration
    	
56
    
	
Section 10.07
    	
Execution and Delivery   of Guarantee
    	
56
    
	
Section 10.08
    	
Purpose of Guarantee
    	
56
    
	
Section 10.09
    	
Central Bank Regulations
    	
56
    
	
Section 10.10
    	
Place of Performance of   Guarantee
    	
56
    
	
 
    	
 
    
	
ARTICLE XI   MISCELLANEOUS
    	
56
    
	
 
    	
 
    	
 
    
	
Section 11.01
    	
Notices
    	
56
    
	
Section 11.02
    	
Communication by   Holders with Other Holders
    	
58
    
	
Section 11.03
    	
Certificate and Opinion   as to Conditions Precedent
    	
58
    
	
Section 11.04
    	
Statements Required in   Certificate or Opinion
    	
59
    
	
Section 11.05
    	
When Securities   Disregarded
    	
59
    
	
Section 11.06
    	
Rules by Trustee,   Paying Agent and Registrar
    	
59
    
	
Section 11.07
    	
Legal Holidays
    	
59
    

 

iii

 

	
Section 11.08
    	
Governing Law
    	
59
    
	
Section 11.09
    	
No Recourse Against   Others
    	
60
    
	
Section 11.10
    	
Successors
    	
60
    
	
Section 11.11
    	
Multiple Originals
    	
60
    
	
Section 11.12
    	
Table of Contents;   Headings
    	
60
    
	
Section 11.13
    	
Consent to   Jurisdiction; Appointment of Agent to Accept Service of Process
    	
60
    
	
Section 11.14
    	
Waiver of Jury Trial
    	
62
    
	
Section 11.15
    	
USA PATRIOT Act
    	
62
    
	
Section 11.16
    	
Force Majeure
    	
62
    

 

	
Rule 144A/Regulation   S Appendix
    	
PROVISIONS   RELATING TO INITIAL SECURITIES
    
	
 
    	
 
    
	
Exhibit 1   to Rule 144A/Regulation S Appendix
    	
FORM OF   INITIAL SECURITY
    
	
 
    	
 
    
	
Exhibit 2   to Rule 144A/Regulation S Appendix
    	
FORM OF   REGULATION S TRANSFER CERTIFICATE
    
	
 
    	
 
    
	
Exhibit 3   to Rule 144A/Regulation S Appendix
    	
FORM OF   RULE 144A TRANSFER CERTIFICATE
    
	
 
    	
 
    
	
Annex A
    	
FORM OF   SUPPLEMENTAL INDENTURE
    

 

iv

 

INDENTURE dated as of May 29, 2019 among SUZANO AUSTRIA GMBH, a limited liability company incorporated under the laws of the Republic of Austria (the “Issuer”), SUZANO S.A., a corporation (sociedade por ações) organized under the laws of the Federative Republic of Brazil (the “Company”), as Guarantor, and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, as trustee (in such capacity, the “Trustee”), registrar, paying agent and transfer agent.

 

Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders (as defined below) of the Issuer’s U.S.$1,000,000,000 aggregate principal amount of 5.000% Senior Notes due January 15, 2030 (the “Initial Securities”), and any Additional Securities (as defined below):

 

ARTICLE I

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01                             Definitions.

 

“Additional Amounts” has the meaning set forth under Section 4.13.

 

“Additional Securities” means 5.000% Senior Notes due January 15, 2030, having identical terms and conditions as the 2030 Notes (other than the date on which the initial interest accrues from), issued from time to time after the Issue Date under the terms of this Indenture (other than pursuant to Section 2.06, Section 2.07, or Section 2.09 of this Indenture).

 

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”) with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Applicable GAAP” means either (i) generally accepted accounting principles in Brazil, which are based on the Brazilian corporate law, the rules and regulations of the Brazilian securities commission and the accounting standards issued by the Brazilian Institute of Independent Accountants (Instituto dos Auditores Independentes do Brasil, IBRACON) (whether or not the Company or any of its Subsidiaries or Affiliates is otherwise subject to such rules) as in effect from time to time, or (ii) International Financial Reporting Standards as in effect from time to time (“IFRS”).

 

“Attributable Debt” means, in respect of a Sale and Leaseback Transaction the present value, discounted at the interest rate implicit in the Sale and Leaseback Transaction, of the total obligations of the lessee for rental payments during the remaining term of the lease in the Sale and Leaseback Transaction.

 

 

“Austria” means the Republic of Austria and any branch of power, ministry, department, authority or statutory corporation or other entity (including a trust) owned or controlled directly or indirectly by it or any of the foregoing or created by law as a public entity.

 

“Brazil” means The Federative Republic of Brazil and any branch of power, ministry, department, authority or statutory corporation or other entity (including a trust) owned or controlled directly or indirectly by it or any of the foregoing or created by law as a public entity.

 

“Business Day” means any day other than a Saturday, a Sunday or a Legal Holiday.

 

“Capital Lease” means, with respect to any Person, any lease of any Property which, in conformity with Applicable GAAP, is required to be capitalized on the balance sheet of such Person.

 

“Capital Stock” means, with respect to any Person, any and all shares of stock of a corporation, partnership interests or other equivalent interests (however designated, whether voting or non-voting) in such Person’s equity, including any Preferred Stock, entitling the holder to receive a share of the profits and losses, and a distribution of assets, after liabilities, of such Person.

 

“Central Bank” means the Brazilian Central Bank (Banco Central do Brasil).

 

“Change of Control” means the consummation of any transaction by which (i) any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act), other than a person or group that includes any one or more of the Permitted Holders, becomes after the date hereof the “beneficial owner” (as such term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 50.0% of the total voting power of the outstanding Voting Stock of the Company or (ii) (x) the Permitted Holders cease to “beneficially own” (as such term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, collectively, at least 50.0% of the total voting power of the outstanding Voting Stock of the Company, (y) any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act), other than a person or group that includes any one or more of the Permitted Holders, becomes after the date hereof the “beneficial owner” (as such term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, of a greater percentage of the total voting power of the outstanding Voting Stock of the Company than the percentage beneficially owned collectively by the Permitted Holders and (z) the Permitted Holders cease to have, directly or indirectly, the power to direct or cause the direction of the management and policies of the Company.

 

“Change of Control Offer” means an offer made by the Issuer or the Company, following the occurrence of a Change of Control that results in a Rating Decline, to each Holder to repurchase all or any part of such Holder’s Securities pursuant to Section 4.04.

 

“Change of Control Payment” means, in connection with the repurchase of a Holder’s Securities pursuant to a Change of Control Offer, the payment by the Issuer or the Company of (i) 101.0% of the aggregate principal amount of such Holder’s Securities repurchased plus accrued and unpaid interest and Additional Amounts, if any, on such Securities, to, but excluding, the date

 

2

 

of purchase (subject to the right of the Holders of record on the relevant  record date to receive interest and Additional Amounts, if any, on the relevant interest payment date).

 

“Change of Control Payment Date” means, in relation to a Change of Control Offer, the purchase date for the Securities properly tendered as specified in the notice given by the Issuer or the Company pursuant to Section 4.04 in relation to such Change of Control Offer, which date is not more than five Business Days after the Expiration Date.

 

“Company” means Suzano S.A., named as such in the preamble to this Indenture, excluding its Subsidiaries, until a successor replaces it and, thereafter, means the successor.

 

“Company Guarantee” means the Guarantee of the Securities by the Company pursuant to this Indenture.

 

“Consolidated Net Tangible Assets” means the total amount of assets of the Company and its Subsidiaries on a consolidated basis, less current liabilities, less depreciation, amortization and depletion, less goodwill, trade names, trademarks, patents and other intangibles, calculated based on the most recent balance sheet for which internal financial statements are available; all calculated in accordance with Applicable GAAP and calculated on a pro forma basis to give effect to any acquisition or disposition of companies, divisions, lines of businesses or operations by the Company and its Subsidiaries subsequent to such date and on or prior to the date of determination.

 

“Corporate Trust Office” means the principal corporate trust office of the Trustee in New York City, New York, which at Issue Date is Trust and Agency Services, 60 Wall Street, 16th floor, MSNYC60-1630, New York, NY 10005, Attention: Corporates Team — Suzano — 2019, or such other office at such address as the Trustee may designate from time to time by notice to the Holders and the Issuer, or the principal corporate trust office of any successor Trustee (at such other address as such successor Trustee may designate from time to time by notice to the Holders and the Issuer).

 

“Debt” means, with respect to any Person, without duplication,

 

(1)                                 all indebtedness of such Person for borrowed money;

 

(2)                                 all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

 

(3)                                 all obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments, excluding obligations in respect of trade letters of credit or bankers’ acceptances issued in respect of trade accounts payables to the extent not drawn upon or presented, or, if drawn upon or presented, to the extent the resulting obligation of the Person is paid within 10 Business Days;

 

(4)                                 all obligations of such Person to pay the deferred and unpaid purchase price of property or services, all conditional sale obligations and all obligations of such person under any title retention agreement, excluding trade payables arising in the ordinary course of business;

 

(5)                                 all obligations of such Person as lessee under Capital Leases;

 

3

 

(6)                                 all Debt of other Persons guaranteed by such Person to the extent so guaranteed;

 

(7)                                 all Debt of other Persons secured by a Lien on any asset of such Person, whether or not such Debt is assumed by such Person;

 

(8)                                 all obligations of such Person under Hedging Agreements;

 

(9)                                 all Disqualified Equity Interests issued by such Person, valued at the greater of its voluntary or involuntary liquidation preference and its maximum fixed repurchase price plus accrued dividends; and

 

(10)                          all Preferred Stock issued by a Subsidiary of such Person, valued at the greater of its voluntary or involuntary liquidation preference and its maximum fixed repurchase price plus accrued dividends;

 

if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person.

 

The amount of Debt of any Person will be deemed to be:

 

(A)                               with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving rise to the obligation;

 

(B)                               with respect to Debt secured by a Lien on an asset of such Person but not otherwise the obligation, contingent or otherwise, of such Person, the lesser of (x) the fair market value of such asset on the date the Lien attached and (y) the amount of such Debt;

 

(C)                               with respect to any Debt issued with original issue discount, the face amount of such Debt less the remaining unamortized portion of the original issue discount of such Debt;

 

(D)                               with respect to any Hedging Agreement, the net amount payable if such Hedging Agreement terminated at that time due to default by such Person; and

 

(E)                                otherwise, the outstanding principal amount thereof.

 

“Default” means any event that is, or after notice or passage of time or both would be, an Event of Default.

 

“Depositary” means, with respect to the Securities issuable or issued in whole or in part in the form of one or more Global Securities, the Person designated in Section 2.03 hereof as Depositary by the Issuer pursuant to this Indenture, until a successor shall have been appointed and become such and, thereafter, “Depositary” shall mean or include such Person.

 

“Disqualified Equity Interests” means Equity Interests that by their terms or upon the happening of any event are:

 

(1)                                 required to be redeemed or redeemable at the option of the holder prior to the Stated Maturity of the Securities for consideration other than Qualified Equity Interests, or

 

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(2)                                 convertible at the option of the holder into Disqualified Equity Interests or exchangeable for Debt;

 

provided that Equity Interests will not constitute Disqualified Equity Interests solely because of provisions giving holders thereof the right to require repurchase or redemption upon a Change of Control occurring prior to the Stated Maturity of the Securities if those provisions:

 

(A)                               are no more favorable to the holders than Section 4.04 hereof; and

 

(B)                               specifically state that repurchase or redemption pursuant thereto will not be required prior to the Issuer’s repurchase of the Securities as required by this Indenture.

 

“Disqualified Stock” means Capital Stock constituting Disqualified Equity Interests.

 

“DTC” means The Depository Trust Company.

 

“Equity Interests” means all Capital Stock and all warrants or options with respect to, or other rights to purchase, Capital Stock, but excluding Debt convertible into equity.

 

“Event of Default” has the meaning set forth under Section 6.01.

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto.

 

“Expiration Date” has the meaning set forth under Section 4.04(b)(ii).

 

“Fitch” means Fitch Ratings Inc. and its successors.

 

“Global Security” means any Security issued in fully-registered global form to DTC (or its nominee), as depositary for the beneficial owners thereof, which shall be substantially in the form of Exhibit 1, with appropriate legends as specified in Section 2.3 of the Appendix and Exhibit 1.

 

“Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Debt or other obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for purposes of assuring in any other manner the obligee of such Debt or other obligation of the payment thereof or to protect such obligee against loss in respect thereof, in whole or in part; provided that the term “Guarantee” does not include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning.

 

“Guarantor” means at any time, each Person guaranteeing the Issuer’s obligations under this Indenture.

 

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“Hedging Agreement” means (i) any interest rate swap agreement, interest rate cap agreement or other agreement designed to protect against fluctuations in interest rates or (ii) any foreign exchange forward contract, currency swap agreement or other agreement designed to protect against fluctuations in foreign exchange rates or (iii) any commodity or raw material futures contract or any other agreement designed to protect against fluctuations in raw material prices.

 

“Hedging Obligations” means the obligations of any Person pursuant to any Hedging Agreement.

 

“Holder” or “Securityholder” means the Person in whose name a Security is registered on the Registrar’s books.

 

“Indenture” means this Indenture, as it may be amended or supplemented from time to time in accordance with the applicable terms hereof.

 

“Initial Securities” has the meaning set forth in the preamble to this Indenture.

 

“Interest Payment Date” means January 15 and July 15, commencing on January 15, 2020.

 

“Investment Grade Rating” means “BBB-” or higher by S&P, “Baa3” or higher by Moody’s or “BBB-” or higher by Fitch, or the equivalent of such global ratings by S&P, Moody’s or Fitch.

 

“Issue Date” means May 29, 2019.

 

“Issuer” means Suzano Austria GmbH, named as such in the preamble to this Indenture, excluding its Subsidiaries, until a successor replaces it and, thereafter, means the successor.

 

“Issuer Order” means a written request or order signed in the name of the Issuer or the Company by two Officers of Issuer or the Company, as applicable, and delivered to the Trustee.

 

“Legal Holiday” means a day on which banking institutions are not required by law to be open in the State of New York or São Paulo, Brazil.

 

“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or Capital Lease).

 

“Material Adverse Effect” means a material adverse effect on (a) the business, financial condition or results of operations of the Company and its Subsidiaries, taken as a whole, or (b) the ability of either the Issuer or the Company to perform any of its obligations under this Indenture.

 

“Maturity Date” means January 15, 2030.

 

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

 

“Offering Memorandum” means the final offering memorandum for the U.S.$1,000,000,000 5.000% Notes due January 15, 2030 of the Issuer, dated May 21, 2019.

 

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“Officer” means (i) with respect to the Issuer, any director or authorized representative of the Issuer and (ii) with respect to the Company or any Subsidiary, any authorized representative of the Company or any Subsidiary including any of the president, vice president, executive officer, financial officer or general counsel of the Company or any Subsidiary, as the case may be.

 

“Officer’s Certificate” means a certificate signed by an Officer of the Issuer or the Company, as applicable.

 

“Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel for the Issuer or the Company, as applicable (except as otherwise provided in this Indenture), as reasonably acceptable to the Trustee.

 

“Outstanding Securities” has the meaning set forth under Section 2.08.

 

“Paying Agent” has the meaning set forth under Section 2.03.

 

“Permitted Holders” means (i) Suzano Holding S.A. or any Affiliate thereof, David Feffer, Daniel Feffer, Jorge Feffer, Ruben Feffer, Lisabeth S. Sander, Janet Guper, André Guper, Pedro Noah Hornett Guper and Ian Baruch Hornett Guper, or any of their respective successors, or (ii) an entity that is directly or indirectly controlled by one or more of the Persons listed in clause (i).

 

“Permitted Liens” means:

 

(1)                                 any Lien existing on the date of this Indenture, and any extension, renewal or replacement thereof or of any Lien in clauses (2) or (3) below; provided, however, that the total amount of Debt so secured is not increased plus any fees and expenses in connection with such extension, renewal or replacement;

 

(2)                                 any Lien on any property or assets (including Capital Stock of any person) securing Debt incurred solely for purposes of financing the acquisition, construction or improvement of such property or assets after the date of this Indenture; provided that (a) the aggregate principal amount of Debt secured by the Liens will not exceed (but may be less than) 130% of the cost (i.e., purchase price) of the property or assets so acquired, constructed or improved and (b) the Lien is incurred before, or within 365 days after the completion of, such acquisition, construction or improvement and does not encumber any other property or assets of the Company or any of its Subsidiaries; and provided, further, that to the extent that the property or asset acquired is Capital Stock, the Lien also may encumber other property or assets of the person so acquired;

 

(3)                                 any Lien securing Debt incurred for the purpose of financing all or part of the cost of the acquisition, construction or development of a project; provided that the lenders of such Debt expressly agree to limit their recourse in respect of such Debt to assets (including Capital Stock of the project entity) and/or revenues of such project with an aggregate value of not more than the amount of such Debt; and provided, further, that the Lien is incurred before, or within 365 days after the completion of, that acquisition, construction or development and does not apply to any other property or assets of the Company or any Subsidiary;

 

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(4)                                 any Lien existing on any property or assets of any person before that person’s acquisition (in whole or in part) by, merger into or consolidation with the Company or any of its Subsidiaries after the date of this Indenture; provided that the Lien is not created in contemplation of or in connection with such acquisition, merger or consolidation;

 

(5)                                 any Lien in favor of issuers of surety bonds or letters of credit issued pursuant to the request of and for the account of the Company or any of its Subsidiaries in the ordinary course of business;

 

(6)                                 any Liens granted to secure borrowings from, directly or indirectly, (a) Banco Nacional de Desenvolvimento Econômico e Social — BNDES (including borrowings from any Brazilian governmental bank with funds provided by Brazilian regional funds including Financiadora de Estudos e Projetos — FINEP, Fundo de Desenvolvimento do Nordeste — FDNE, Banco do Nordeste do Brasil and Fundo de Desenvolvimento do Centro Oeste — FCO), or any other Brazilian governmental development bank or credit agency or (b) any international or multilateral development bank or government-sponsored agency, export-import bank or official export-import credit insurer;

 

(7)                                 any pledge or deposit made in connection with workers’ compensation, unemployment insurance or other similar social security legislation, any deposit to secure appeal bonds, judicial deposits or other similar Guarantee in proceedings being contested in good faith to which the Company or any Subsidiary is a party, good faith deposits in connection with bids, tenders, contracts (other than for the payment of Debt) or leases to which the Company or any its Subsidiaries is a party or deposits for the payment of rent, in each case made in the ordinary course of business;

 

(8)                                 any Lien imposed by law that was incurred in the ordinary course of business, including, without limitation, carriers’, warehousemen’s and mechanics’ liens and other similar encumbrances arising in the ordinary course of business, in each case for sums not yet due or being contested in good faith by appropriate proceedings;

 

(9)                                 any rights of set-off of any Person with respect to any deposit account of the Company or any of its Subsidiaries arising in the ordinary course of business;

 

(10)                          any Lien on cash or cash equivalents securing Hedging Agreements or other similar transactions in the ordinary course of business;

 

(11)                          any Lien securing taxes, assessments and other governmental charges, the payment of which are not yet due or are being contested in good faith by appropriate proceedings and for which such reserves or other appropriate provisions, if any, have been established as required by Applicable GAAP;

 

(12)                          any Liens on the receivables of the Company or any of its Subsidiaries securing the obligations of such Person under any line of credit or working capital facility; provided that the aggregate amount of receivables securing Debt shall not exceed 80.0% of the Company’s and its Subsidiaries’ aggregate outstanding receivables from time to time; and

 

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(13)                          in addition to the foregoing Liens set forth in clauses (1) through (12) above, Liens securing Debt of the Company or any of its Subsidiaries which do not in aggregate principal amount, at any time of determination, exceed 17.0% of the Company’s Consolidated Net Tangible Assets (the “General Liens Basket”).

 

“Person” means an individual, a corporation, a partnership, a limited liability company, an association, a trust or any other entity, including a government or political subdivision or an agency or instrumentality thereof.

 

“Preferred Stock” means, with respect to any Person, any Capital Stock of such Person that has preferential rights over any other Capital Stock of such Person with respect to dividends, distributions or redemptions or upon liquidation.

 

“Process Agent” has the meaning set forth for such term in Section 11.13(b).

 

“Property” means (i) any land, buildings, machinery and other improvements and equipment located therein, (ii) any intangible assets, including, without limitation, any brand names, trademarks, copyrights and patents and similar rights and (iii) any income (licensing or otherwise), proceeds of sale or other revenues therefrom.

 

“Protected Purchaser” means a purchaser of a Security, or of an interest therein, who (a) gives value, (b) does not have notice of any adverse claim to the Security, and (c) obtains control of the Security.

 

“Qualified Equity Interests” means all Equity Interests of a Person other than Disqualified Equity Interests.

 

“Rating Agency” means S&P, Fitch or Moody’s; or if S&P, Fitch or Moody’s are not making rating of the Securities publicly available, an internationally recognized U.S. rating agency or agencies, as the case may be, selected by the Issuer, which will be substituted for S&P, Fitch or Moody’s, as the case may be.

 

“Rating Decline” means that at any time within 90 days (which period shall be extended so long as the rating of the Securities is under publicly announced consideration for possible down grade by either Rating Agency) after the earlier of the date of public notice of a Change of Control and of the Issuer’s intention or that of any Person to effect a Change of Control, (i) in the event the Securities are assigned an Investment Grade Rating by at least two of the Rating Agencies prior to such public notice, the rating of the Securities by at least two of the Rating Agencies shall be below an Investment Grade Rating; or (ii) in the event the Securities are not assigned an Investment Grade Rating by at least two of the Rating Agencies prior to such public notice, the rating of the Securities by at least two of the Rating Agencies shall be decreased by one or more categories; provided that there shall be no Rating Decline to the extent the Securities continue to have an Investment Grade Rating by at least one of the Rating Agencies.

 

“Redemption Date” means, with respect to any redemption of Securities, the date fixed for such redemption pursuant to this Indenture and the Securities.

 

“Registrar” has the meaning set forth under Section 2.03.

 

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“Relevant Date” has the meaning set forth under Section 4.13(c).

 

“Relevant Taxing Jurisdiction” has the meaning set forth under Section 4.13(a).

 

“Sale and Leaseback Transaction” means, with respect to any Person, an arrangement whereby such Person enters into a lease of property previously transferred by such Person to the lessor.

 

“S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc. and its successors.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Securities” means the Initial Securities and any Additional Securities issued under this Indenture.

 

“Securities Act” means the United States Securities Act of 1933, as amended.

 

“Security Register” means a register of Securities kept at the corporate trust office of the Registrar.

 

“Significant Subsidiary” of any Person means any Subsidiary of the Company, or any group of Subsidiaries, if taken together as a single entity, that would be a “significant subsidiary” of such Person within the meaning of Rule 1-02 under Regulation S-X promulgated pursuant to the Securities Act.

 

“Stated Maturity” means (i) with respect to any Debt, the date specified as the fixed date on which the final installment of principal of such Debt is due and payable or (ii) with respect to any scheduled installment of principal of or interest on any Debt, the date specified as the fixed date on which such installment is due and payable as set forth in the documentation governing such Debt, not including any contingent obligation to repay, redeem or repurchase prior to the regularly scheduled date for payment.

 

“Subsidiary” means with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which more than 50.0% of the outstanding Voting Stock is owned, directly or indirectly, by such Person and one or more Subsidiaries of such Person (or a combination thereof).

 

“TIA” means the Trust Indenture Act of 1939 as in force at the date as of which this instrument was executed; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended. Notwithstanding the foregoing definition, this Indenture shall not be governed by, or subject to the TIA.

 

“Transfer Agent” means each of the transfer agents identified in the preamble to this Indenture, until replaced by a successor and, thereafter, means the successor, and any other transfer agent appointed by the Issuer or the Company to act as such.

 

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“Transfer Restricted Securities” means Securities that bear or are required to bear the Restricted Securities Legend (as defined in Section 2.1(6) of the Appendix).

 

“Trust Officer” means any officer in the corporate trust department of the Trustee having direct responsibility for the administration of this Indenture, or any other officer to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject.

 

“Trustee” means the party named as such in the preamble to this Indenture until a successor replaces it and, thereafter, means the successor.

 

“United States” or “U.S.” means the United States of America.

 

“USA PATRIOT Act” means the Uniting and Strengthening America by Protecting Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

 

“U.S. Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978, as amended, and codified as 11 U.S.C. §§101 et seq.

 

“U.S. Dollars” or “U.S.$” each mean the currency of the United States.

 

“U.S. GAAP” means generally accepted accounting principles in the U.S. as in effect from time to time.

 

“U.S. Government Obligations” means obligations issued or directly and fully guaranteed or insured by the United States or by any agent or instrumentality thereof; provided that the full faith and credit of the United States is pledged in support thereof.

 

“Voting Stock” means, with respect to any Person, Capital Stock of any class or kind ordinarily having the power to vote for the election of directors, managers or other voting members of the governing body of such Person.

 

“Wholly-Owned Subsidiary” means a Subsidiary of which at least 95.0% of the Capital Stock (other than directors’ qualifying shares) is directly or indirectly owned by the Company.

 

Section 1.02                             Incorporation by Reference of Trust Indenture Act. The following TIA terms have the following meanings:

 

“Commission” means the SEC;

 

“indenture securities” means the Securities and any Company Guarantee;

 

“indenture security holder” means a Securityholder;

 

“indenture to be qualified” means this Indenture;

 

“indenture trustee” or “institutional trustee” means the Trustee; and

 

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“obligor” on the Securities and the Company Guarantee, respectively, means the Issuer and the Company, respectively, and any successor obligor on the Securities and the Company Guarantee, respectively.

 

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions.

 

Section 1.03                             Rules of Construction.

 

(a)                                 Unless the context otherwise requires:

 

(i)                                     a term has the meaning assigned to it;

 

(ii)                                  all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with Applicable GAAP;

 

(iii)                               “or” is not exclusive;

 

(iv)                              “including” means including without limitation;

 

(v)                                 words in the singular include the plural and words in the plural include the singular;

 

(vi)                              unsecured Debt shall not be deemed to be subordinate or junior to secured Debt merely by virtue of its nature as unsecured Debt;

 

(vii)                           the principal amount of any Preferred Stock shall be (i) the maximum liquidation value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory repurchase price with respect to such Preferred Stock, whichever is greater;

 

(viii)                        all references to the date the Initial Securities were originally issued shall refer to the Issue Date;

 

(ix)                              unless context requires otherwise, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Indenture shall refer to this Indenture as a whole and not to any particular provision of this Indenture;

 

(x)                                 unless otherwise stated, any agreement, contract or document defined or referred to herein shall mean such agreement, contract or document and all schedules, exhibits and attachments thereto as in effect as of the date hereof, as the same may thereafter be amended, supplemented or otherwise modified from time to time; and

 

(xi)                              all references in this Indenture and the Securities to interest in respect of any Security shall be deemed to include all Additional Amounts, if any, in respect of such Security, unless the context otherwise requires, and express mention of the payment of Additional Amounts in any provision hereof or thereof shall not be construed, without more, as

 

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excluding reference to Additional Amounts in those provisions hereof or thereof where such express mention is not made.

 

ARTICLE II

 

THE SECURITIES

 

Section 2.01                             Form and Dating. Provisions relating to the Securities are set forth in the Rule 144A/Regulation S Appendix attached hereto (the “Appendix”) which is hereby incorporated in, and expressly made part of, this Indenture. The Initial Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit 1 to the Appendix which is hereby incorporated in, and expressly made a part of, this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule, agreements to which the Issuer or the Company are subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Issuer or the Company). Each Security shall be dated the date of its authentication. The Securities will be issuable in denominations of U.S.$200,000 in principal amount and any multiple of U.S.$1,000 in excess thereof. The Securities shall be fully, unconditionally and irrevocably guaranteed by the Company in accordance with Article X. The terms of the Initial Securities set forth in the Appendix and Exhibit 1 are part of the terms of this Indenture.

 

Section 2.02                             Execution and Authentication.

 

(a)                                 An Officer of the Issuer shall sign the Securities for the Issuer, and an Officer of the Company shall sign the notation in the Securities relating to the Company Guarantee. Each such signature may be by manual or facsimile signature of such Officer.

 

(b)                                 If an Officer whose signature is on a Security no longer holds that office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless.

 

(c)                                  A Security shall not be valid until a Trust Officer of the Trustee manually signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

(d)                                 On the Issue Date, the Trustee shall authenticate and deliver U.S.$1,000,000,000 aggregate principal amount of 5.000% Senior Notes due January 15, 2030 and, at any time and from time to time thereafter, the Trustee shall authenticate and deliver Securities for original issue in an aggregate principal amount specified in such order, in each case upon a written order of the Issuer signed by two Officers of the Issuer. Such order shall specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated and, in the case of an issuance of Additional Securities pursuant to Section 2.12 after the Issue Date, shall certify that such issuance is in compliance with this Indenture and shall state (i) whether such Additional Securities shall be Transfer Restricted Securities and issued in the form of Initial Securities as set forth in the Appendix to this Indenture and (ii) the initial Interest Payment Date.

 

(e)                                  The Trustee may appoint an authenticating agent reasonably acceptable to the Issuer to authenticate the Securities. Unless limited by the terms of such appointment, an

 

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authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as any Registrar, Paying Agent or agent for service of notices and demands.

 

Section 2.03                             Registrar and Paying Agent.

 

(a)                                 The Issuer shall maintain an office or agency in the Borough of Manhattan, City of New York where the Securities may be presented or surrendered for registration of transfer or for exchange, where the Securities may be presented for payment and for the service of notices and demands to or upon the Issuer in respect of the Securities and this Indenture. The Registrar shall keep a register of the Securities and of their transfer and exchange. The Issuer may have one or more co-registrars and one or more additional paying agents. The term “Paying Agent” includes any paying agent appointed in this Indenture and any additional paying agent, and the term “Registrar” includes any additional Registrar or co-registrar.

 

(b)                                 The Issuer shall enter into an appropriate agency agreement with any Registrar, Paying Agent or co-registrar not a party to this Indenture. The agreement shall implement the provisions of this Indenture that relate to such agent. The Issuer shall notify the Trustee of the name and address of any such agent. If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.06. The Issuer, the Company or any Subsidiary may act as Paying Agent, Registrar, co-registrar or transfer agent.

 

(c)                                  The Issuer initially appoints (i) the Trustee as the Registrar, Paying Agent and Transfer Agent in connection with the Securities and (ii) DTC as Depositary with respect to the Securities.

 

Section 2.04                             Paying Agent to Hold Money in Trust.

 

(a)                                 The Issuer hereby acknowledges and confirms that it is and at all times shall remain absolutely and unconditionally obligated to pay all amounts due and owing hereunder, as the same shall become due and owing. All payments of principal, premium and interest required to be made by the Issuer hereunder (including any Additional Amounts) shall be made in U.S. dollars, pursuant to the terms hereof, by the Issuer to the Paying Agent to the extent appointed hereunder or to the Trustee by 11:00 a.m. (New York City time) on each Interest Payment Date, Redemption Date, purchase date, Change of Control Payment Date or Maturity Date on any Securities, unless otherwise provided for in this Indenture. The Paying Agent shall hold in trust, for the benefit of the Holders or the Trustee, all money held by such Paying Agent for the payment of principal, premium or interest on the Securities. The Issuer at any time may require the Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed by it. Upon complying with this Section 2.04, the Paying Agent shall have no further liability for the money delivered to the Trustee.

 

(b)                                 The receipt by the Paying Agent or the Trustee from the Issuer of each payment of principal, interest and/or other amounts due in respect of the Securities in the manner specified herein and on the date on which such amount of principal, interest and/or other amounts

 

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are then due, shall be valid and effective to satisfy and discharge all the obligations of the Issuer herein and under the Securities to make such payment to the Holders on the due date thereof.

 

Section 2.05                             Securityholder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders. If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee, in writing at least one Business Day before each Interest Payment Date and at such other times as the Trustee may reasonably request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders.

 

Section 2.06                             Transfer and Exchange.

 

(a)                                 The Securities shall be issued in registered form and shall be transferable only upon the surrender of a Security for registration of transfer. When a Security is presented to the Registrar or a co-registrar with a request to register a transfer, the Registrar shall register the transfer as requested if the requirements of this Indenture are met and if the transferee certifies to the Issuer and Registrar that: (i) under the terms of the Security, the Person seeking registration of transfer is eligible to have the Security registered in its name, (ii) the endorsement or instruction is made by the appropriate Person or by an agent who has actual authority to act on behalf of the appropriate Person, (iii) reasonable assurance is given that the endorsement or instruction is genuine and authorized, (iv) any applicable law relating to the collection of taxes has been complied with, (v) the transfer does not violate any restriction on transfer imposed by the Issuer, (vi) a demand that the Issuer not register transfer has not become effective (or, if such a demand has become effective, the Issuer has given notice to the Person making such demand stating that (x) registration of transfer of the Security is sought, (y) a demand that the Issuer not register transfer had previously been received and (z) the Issuer shall withhold registration for 10 days from the date of communication of such notice) and (vii) the transfer is in fact rightful or is to a Protected Purchaser. When Securities are presented to the Registrar or a co-registrar with a request to exchange them for an equal principal amount of Securities of other denominations, the Registrar shall make the exchange as requested if the same requirements are met. To permit registration of transfers and exchanges, the Issuer shall execute and the Trustee shall authenticate and deliver Securities at the Registrar’s or co-registrar’s request. The Issuer may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges in connection with any transfer or exchange pursuant to this Section 2.06 (other than any such transfer taxes, assessments or similar governmental charge payable upon exchange or transfer pursuant to Section 4.04 and Section 9.05). The Issuer shall not be required to make and the Registrar need not register transfers or exchanges of Securities selected and delivered for redemption or any Securities for a period of 15 days before an Interest Payment Date.

 

(b)                                 The following provisions shall apply with respect to the registration of any proposed transfer of an Initial Security or an Additional Security to any Non-U.S. Person:

 

(i)                                     the Registrar shall register the transfer of any Initial Security or any Additional Security, whether or not such Security bears the Restricted Securities Legend, if the proposed transferor has delivered to the Registrar a certificate substantially in the form of Exhibit 2;

 

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(ii)                                  if the proposed transferee is a participant in DTC and the Securities to be transferred consist of definitive Securities which after transfer are to be evidenced by an interest in a Regulation S Global Security upon receipt by the Registrar of (i) written instructions given in accordance with DTC’s and the Registrar’s procedures and (ii) the certificate required by Section 2.06(b)(i), the Registrar shall register the transfer and reflect on its books and records the date and an increase in the principal amount of the Regulation S Global Security in an amount equal to the principal amount of definitive Securities to be transferred, and the Trustee and/or the Registrar shall cancel the definitive Securities so transferred or decrease the principal amount of such definitive Security, as the case may be;

 

(iii)                               if the proposed transferor is a participant in DTC seeking to transfer an interest in a Global Security, upon receipt by the Registrar of (i) written instructions given in accordance with DTC’s and the Registrar’s procedures and (ii) the certificate required by Section 2.06(b)(i), the Registrar shall register the transfer and reflect on its books and records the date and (i) a decrease in the principal amount of the Global Security from which such interests are to be transferred in an amount equal to the principal amount of the Securities to be transferred and (ii) an increase in the principal amount of the Regulation S Global Security in an amount equal to the principal amount of the Global Security to be transferred.

 

(c)                                  The following provisions shall apply with respect to the registration of any proposed transfer of an Initial Security or an Additional Security to a QIB (excluding Non-U.S. Persons):

 

(i)                                     if the Security to be transferred consists of (i) a definitive Security, the Registrar shall register the transfer if such transfer is being made by a proposed transferor who has delivered to the Trustee a certificate substantially in the form set forth in Exhibit 3 or (ii) an interest in the Restricted Global Security, the transfer of such interest may be effected only through the book entry system maintained by DTC;

 

(ii)                                  if the Security to be transferred consists of a definitive Security, upon receipt by the Registrar of instructions given in accordance with DTC’s and the Registrar’s procedures therefor, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the Restricted Global Security in an amount equal to the principal amount of the definitive Security, to be transferred, and the Trustee shall cancel the definitive Security so transferred; and

 

(iii)                               if the proposed transferor is a participant in DTC seeking to transfer an interest in a Global Security, upon receipt by the Registrar of written instructions given in accordance with DTC’s and the Registrar’s procedures, the Registrar shall register the transfer and reflect on its books and records the date and (i) a decrease in the principal amount of the Global Security from which interests are to be transferred in an amount equal to the principal amount of the Securities to be transferred and (ii) an increase in the principal amount of the Restricted Global Security in an amount equal to the principal amount of the Global Security to be transferred.

 

(d)                                 Prior to the due presentation for registration of transfer of any Security, the Issuer, the Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat the person in whose name a Security is registered as the absolute owner of such Security for the

 

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purpose of receiving payment of principal of and interest (and Additional Amounts, if any) on such Security and for all other purposes whatsoever, whether or not presentation of such Security is overdue, and none of the Issuer, the Trustee, any Paying Agent, the Registrar or any co-registrar shall be affected by notice to the contrary.

 

(e)                                  All Securities issued upon any transfer or exchange pursuant to the terms of this Indenture shall evidence the same debt and shall be entitled to the same benefits under this Indenture as the Securities surrendered upon such transfer or exchange.

 

(f)                                   The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among participants in DTC or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine compliance as to form with the express requirements hereof.

 

(g)                                  None of the Trustee, the Registrar, the Paying Agent or the Transfer Agent have any responsibility or obligation to any beneficial owner of an interest in a Global Security, any agent member or other member of, or a participant in, DTC or other person with respect to the accuracy of the records of DTC or any nominee or participant or member thereof, with respect to any ownership interest in the Securities or with respect to the delivery to any agent member or other participant, member, beneficial owner or other person (other than DTC) of any notice or the payment of any amount or delivery of any Securities (or other security or property) under or with respect to such Securities. All notices and communications to be given to the Holders and all payments to be made to Holders in respect of the Securities shall be given or made only to or upon the order of the Holders (which shall be DTC or its nominee in the case of a Global Security). The rights of beneficial owners in any Global Security shall be exercised only through DTC, subject to its applicable rules and procedures. The Trustee may rely and shall be fully protected in relying upon information furnished by DTC with respect to its agent members and other members, participants and any beneficial owners.

 

Section 2.07                             Replacement Securities.

 

(a)                                 If (i) any mutilated Security is surrendered to the Issuer, a Registrar, or the Trustee, or (ii) the Issuer, a Registrar and the Trustee receive evidence to their satisfaction of the destruction, loss or left of any Security, and, unless otherwise agreed by the Issuer and the Trustee, there is delivered to the Issuer and the Trustee such security or indemnity as may be required by them to hold each of them harmless; then, in the absence of notice to the Issuer or the Trustee that such Security has been acquired by a Protected Purchaser, the Issuer shall execute and the Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a number not contemporaneously outstanding.

 

(b)                                 In case any such mutilated, destroyed, lost or stolen Security has become due and payable, or has been called for redemption by the Issuer pursuant to Article III of this

 

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Indenture, the Issuer in its discretion may, instead of issuing a new Security, pay or redeem such Security, as the case may be.

 

(c)                                  Upon the issuance of any new Security under this Section 2.07, the Issuer 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 expense (including the fees and expenses of the Trustee or the Registrar) in connection therewith.

 

(d)                                 Every replacement Security is an additional obligation of the Issuer.

 

(e)                                  The provisions of this Section 2.07 are exclusive and, to the extent lawful, shall preclude all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.08                             Outstanding Securities.

 

(a)                                 Securities outstanding at any time (“Outstanding Securities”) are all Securities authenticated by the Trustee except for those cancelled by it pursuant to Section 2.10 hereof, those delivered to the Trustee for cancellation or surrendered for transfer or exchange, those reductions in the interest in a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section 2.08 as not outstanding. Except as set forth in Article IX and Section 11.05, a Security does not cease to be outstanding because the Issuer or an Affiliate of the Issuer holds the Security.

 

(b)                                 If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee and the Issuer receive proof satisfactory to them that the replaced Security is held by a bona fide purchaser.

 

(c)                                  If any Paying Agent segregates and holds in trust, in accordance with this Indenture, on a Redemption Date or maturity date money sufficient to pay all principal, premium, interest and Additional Amounts (if any) payable on that date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case may be, then on and after that date, such Securities (or portions thereof) cease to be outstanding and interest on them ceases to accrue.

 

Section 2.09                             Temporary Securities. Until definitive Securities are ready for delivery, the Issuer may prepare and execute and the Trustee shall authenticate temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Issuer considers appropriate for temporary Securities. Without unreasonable delay, the Issuer shall prepare and execute and the Trustee shall authenticate definitive Securities and deliver them in exchange for temporary Securities.

 

Section 2.10                             Cancellation. The Issuer at any time may deliver Securities to the Registrar for cancellation, along with a written notice to the Trustee advising it of the cancellation. The Registrar shall forward to the Trustee any Securities surrendered to it for registration of transfer, exchange or payment. The Trustee and no one else shall cancel and dispose of (subject to the record retention requirements of the Exchange Act) all Securities surrendered for registration of transfer, exchange, payment or cancellation in accordance with its procedures for the disposition of cancelled securities and, upon the written request of the Issuer, deliver a certificate of such

 

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disposition to the Issuer unless the Issuer directs the Trustee to deliver cancelled Securities to the Issuer. The Issuer may not issue new Securities to replace Securities it has redeemed, paid or delivered to the Trustee for cancellation.

 

Section 2.11                             CUSIP Numbers and ISINs. The Issuer in issuing the Securities may use “CUSIP” numbers and “ISINs” (if then generally in use) or similar numbers and, if so, the Trustee shall use “CUSIP” numbers, “ISINs” or similar 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 Issuer will promptly notify the Trustee in writing of any change in the CUSIP or ISIN numbers.

 

Section 2.12                             Issuance of Additional Securities. The Issuer may, from time to time, subject to compliance with any other applicable provisions of this Indenture, and without the consent of the Securityholders, create and issue Additional Securities under this Indenture having identical terms in all respects as the Initial Securities except the date from which interest will accrue; provided, however, that unless such Additional Securities are issued under a separate CUSIP, either such Additional Securities are part of the same “issue” within the meaning of United States Treasury Regulation Section 1.1275-1(f) or 1.1275-2(k), or such Additional Securities are issued with de minimis original issue discount, if any, for U.S. federal income tax purposes. The Initial Securities and any Additional Securities issued under this Indenture will be treated as a single class for all purposes under this Indenture and shall vote together as one class on all matters with respect to the Securities.

 

Section 2.13                             Open Market Purchases. The Issuer or any of its Affiliates may at any time purchase Securities in the open market or otherwise at any price.

 

ARTICLE III

 

OPTIONAL REDEMPTION OF SECURITIES

 

Section 3.01                             Optional Redemption.

 

(a)                                 Optional Redemption with a Make-Whole Premium.

 

(i)                                     Prior to October 15, 2029 (the “Par Call Date”), the Issuer may redeem the Securities, in whole at any time, or in part from time to time, at a redemption price equal to the greater of (1) 100.0% of the principal amount thereof, and (2) the sum of the present values, calculated as of the Redemption Date, of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date) as if the Securities were redeemed on the Par Call Date, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 45 basis points, plus in each case any accrued and unpaid interest and Additional Amounts, if any, on such Notes to the Redemption Date, as calculated by the Independent Investment Banker; provided that Securities in an aggregate principal amount equal to at least U.S.$150 million remain

 

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outstanding immediately after the occurrence of any partial redemption of Securities. At any time on or after the Par Call Date, the Issuer will have the right to redeem the Securities, in whole or in part and from time to time, at a redemption price equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest on the principal amount of the Securities being redeemed to such Redemption Date.

 

(ii)

 

(A)                               For purposes of this Section 3.01(a):

 

(1)                                 “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming 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.

 

(2)                                 “Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker as having an actual or interpolated maturity that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the Par Call Date.

 

(3)                                 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Issuer.

 

(4)                                 “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotation, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

 

(5)                                 “Reference Treasury Dealer” means BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Rabo Securities USA, Inc., Scotia Capital (USA) Inc. or their respective Affiliates which are primary United States government securities dealers and not less than two other leading primary United States government securities dealers in New York City reasonably designated by the Issuer; provided that if any of the foregoing cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer will substitute therefor another Primary Treasury Dealer.

 

(6)                                 “Reference Treasury Dealer Quotation” 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 price for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 pm New York time on the third Business Day preceding such Redemption Date.

 

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(b)                                 Redemption for Taxation Reasons.

 

(i)                                     If as a result of any change in or amendment to the laws or treaties (or any rules or regulations thereunder) of any Relevant Taxing Jurisdiction, or any amendment to or change in an official interpretation, administration or application of such laws, treaties, rules or regulations (including a holding by a court of competent jurisdiction), which change or amendment or change in official position becomes effective on or after the issue date of the Securities or, with respect to a successor, after the date a successor assumes the obligations under the Securities or the Company Guarantee, the Issuer or the Company or the successor have or will become obligated to pay Additional Amounts as described under Section 4.13 of this Indenture in excess of the Additional Amounts that the Issuer or the Company would be obligated to pay if payments were subject to withholding or deduction at a rate of 15.0% (or at a rate of 25.0% in case the holder of the Securities is resident in a tax haven jurisdiction; i.e., countries which do not impose any income tax or which impose it at a maximum rate lower than 20.0% or where the laws impose restrictions on the disclosure of ownership composition or securities ownership) as a result of the taxes, duties, assessments and other governmental charges described above (the “Minimum Withholding Level”), the Issuer may, at its option, redeem all, but not less than all, of the Securities, at a redemption price equal to 100.0% of their principal amount, together with interest and Additional Amounts accrued to the date fixed for redemption, upon publication of irrevocable notice not less than 30 days nor more than 90 days prior to the date fixed for redemption. No notice of such redemption may be given earlier than 90 days prior to the earliest date on which the Issuer would, but for such redemption, be obligated to pay the Additional Amounts above the Minimum Withholding Level, were a payment then due. The Issuer shall not have the right to so redeem the Securities in the event it becomes obliged to pay Additional Amounts which are less than the Additional Amounts payable at the Minimum Withholding Level. Notwithstanding the foregoing, the Issuer shall not have the right to so redeem the Securities unless: (A) it has taken measures it considers reasonable to avoid the obligation to pay Additional Amounts; and (B) it has complied with all applicable regulations to legally effect such redemption; provided, however, that for this purpose reasonable measures shall not include any change in the Issuer’s, the Company’s or any successor’s jurisdiction of incorporation or organization or location of its principal executive or registered office.

 

(ii)                                  In the event that the Issuer elects to so redeem the Securities, it shall deliver to the Trustee: (A) an Officer’s Certificate, signed in the name of the Issuer by two of its directors or by its attorney in fact in accordance with its articles of association, stating that the Issuer is entitled to redeem the Securities pursuant to their terms and setting forth a statement of facts showing that the condition or conditions precedent to the right of the Issuer to so redeem have occurred or been satisfied; and (B) an Opinion of Counsel to the effect that the Issuer has or will become obligated to pay Additional Amounts in excess of the Additional Amounts payable at the Minimum Withholding Level as a result of the change or amendment and that all governmental approvals necessary for the Issuer to effect the redemption have been obtained and are in full force and effect.

 

Section 3.02                             Notice of Redemption.

 

(a)                                 The Issuer shall give or cause the Trustee to give notice of redemption, in the manner provided for in Section 11.01, not less than 30 nor more than 60 days prior to a date

 

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for redemption of Securities. If the Issuer itself gives the notice, it shall also deliver a copy to the Trustee.

 

(b)                                 If the Issuer elects to have the Trustee give notice of redemption, the Issuer shall deliver to the Trustee, at least 45 days prior to the Redemption Date (unless the Trustee is satisfied with a shorter period), an Officer’s Certificate requesting that the Trustee give notice of redemption and setting forth the information required by clause (c) of this Section 3.02. If the Issuer elects to have the Trustee give notice of redemption, the Trustee shall give the notice in the name of the Issuer and at the Issuer’s expense. Securities will be selected for partial redemptions in accordance with DTC procedures.

 

(c)                                  All notices of redemption shall state:

 

(i)                                     the Redemption Date;

 

(ii)                                  the redemption price and the amount of any accrued interest payable as provided in Section 3.03 (or the calculation of such redemption price);

 

(iii)                               that on the Redemption Date the redemption price and any accrued interest payable to, but excluding, the Redemption Date as provided in Section 3.03 shall become due and payable in respect of each Security to be redeemed, and, unless the Issuer defaults in making the redemption payment, that interest on each Security to be redeemed, shall cease to accrue on and after the Redemption Date;

 

(iv)                              the place or places where a Securityholder must surrender the Securityholder’s Securities for payment of the redemption price; and

 

(v)                                 the CUSIP or ISIN number, if any, listed in the notice or printed on the Securities, and that no representation is made as to the accuracy or correctness of such CUSIP or ISIN number.

 

Section 3.03                             Securities Payable on Redemption Date. If the Issuer, or the Trustee on behalf of the Issuer, gives notice of redemption in accordance with this Article III, the Securities called for redemption, shall, on the Redemption Date, become due and payable at the redemption price specified in the notice (together with accrued interest, if any, to, but excluding, the Redemption Date), and from and after the Redemption Date (unless the Issuer shall default in the payment of the redemption price and accrued interest) the Securities shall cease to bear interest. Upon surrender of the Securities for redemption in accordance with the notice, the Issuer shall pay the Securities at the redemption price, together with accrued interest, if any, to, but excluding, the Redemption Date. If the Issuer shall fail to pay any Security called for redemption upon its surrender for redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate borne by the Securities.

 

Section 3.04                             Mandatory Redemption and Sinking Fund Payments. The Issuer is not required to make mandatory redemption or sinking fund payments with respect to the Securities.

 

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ARTICLE IV

 

COVENANTS

 

Section 4.01                             Performance of Obligations under the Securities. The Issuer shall duly and punctually pay the principal of (and premium, if any) and interest and Additional Amounts, if any, on the Securities in accordance with the terms of the Securities and this Indenture. The Company shall duly and punctually pay any amounts owed by it under its Guarantee in accordance with the terms of the Securities and this Indenture. The principal of (and premium, if any) and interest and Additional Amounts, if any, on the Securities shall be considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture money sufficient to pay all principal and interest then due. Nevertheless, the Issuer shall pay interest on overdue principal, and pay interest on overdue interest, at the lesser of (i) 2.0% per annum higher than the per annum rate set forth in this Indenture and in the Securities and (ii) the maximum rate permitted by applicable law.

 

Section 4.02                             Reports. So long as any new Securities remain outstanding:

 

(a)                                 The Company shall:

 

(i)                                     in the event the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, provide the Trustee and the holders of Securities with annual financial statements audited by an internationally recognized firm of independent public accountants within 120 days of the end of each fiscal year and unaudited quarterly financial information within 90 days of the end of each of the first three fiscal quarters of each fiscal year, in each case prepared in accordance with Applicable GAAP and shall be accompanied by a discussion and analysis substantially in the format of the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” that is included in the Offering Memorandum, in each case prepared in Portuguese and English, unless such information is publicly available on the Company’s website; or

 

(ii)                                  in the event the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, provide the Trustee, promptly after their filing with the United States Securities and Exchange Commission (the “SEC”), for further delivery to a holder upon request by any such holder, with copies of:

 

(A)                               annual reports on Form 20-F (or any successor form) filed with the SEC and, if required by applicable securities law, a reconciliation to U.S. GAAP;

 

(B)                               reports on Form 6-K (or any successor form) that include quarterly financial statements filed with the SEC; and

 

(C)                               such other reports on Form 6-K (or any successor form relating to the occurrence of an event that would be required to be reported thereon;

 

unless filings are publicly available on the SEC’s EDGAR System. The Trustee shall have no obligation to determine if and when any reports are publicly available on the SEC’s EDGAR System.

 

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(b)                                 The Company will provide the Trustee, for further delivery to a holder upon request by such holder, with copies (including English translations of documents in other languages) of all public filings made by it with any stock exchange or securities regulatory agency promptly after their respective filing.

 

(c)                                  At any time when the Company is not subject to or is not current in its reporting obligations under Section 13 or 15(d) of the Exchange Act, the Company shall make available, upon request, to any Holder of Securities and any prospective purchaser of Securities the information required pursuant to Rule 144A(d)(4) under the Securities Act.

 

(d)                                 In addition, the Company shall at all times comply with the periodic reporting requirements of the Euro MTF market of the Luxembourg Stock Exchange or any other stock exchange, if any, on which the Securities may be listed, in each case as in effect at the time of reporting so long as the Securities are listed on the Luxembourg Stock Exchange for trading on the Euro MTF market or any such other stock exchange.

 

(e)                                  So long as the Securities are outstanding, the Issuer and the Company shall make available the information specified in the preceding paragraph at the specified office of the Trustee.

 

(f)                                   Delivery of such reports and information to the Trustee is for informational purposes only and the Trustee’s receipt of such thereof shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s and the Company’s compliance with any of its respective covenants under this Indenture (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

 

Section 4.03                             Limitation on Transactions with Affiliates.

 

(a)                                 Upon request, the Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, enter into, renew or extend any transaction or arrangement including the purchase, sale, lease or exchange of property or assets, or the rendering of any service with any Affiliate of the Company (a “Related Party Transaction”), except upon fair and reasonable terms no less favorable to the Company or its Subsidiaries than could be obtained in a comparable arm’s-length transaction with a Person that is not an Affiliate of the Company.

 

(b)                                 In any Related Party Transaction or series of Related Party Transactions with an aggregate value in excess of U.S.$20,000,000 (or the equivalent thereof at the time of determination), the Company shall first deliver to the Trustee an Officer’s Certificate to the effect that such transaction or series of related transactions are on fair and reasonable terms no less favorable to the Company or such Subsidiary than could be obtained in a comparable arm’s-length transaction and is otherwise compliant with the terms of this Indenture.

 

(c)                                  Neither Section 4.03(a) nor Section 4.03(b) shall apply to:

 

(i)                                     any transaction between the Company and any of its Subsidiaries or between or among Subsidiaries of the Company;

 

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(ii)                                  any transaction between the Company or any of its Subsidiaries, on the one hand, and any joint venture, on the other, on market terms;

 

(iii)                               the payment of reasonable and customary regular fees to directors of the Company who are not employees of the Company;

 

(iv)                              any issuance or sale of Equity Interests of the Company (other than Disqualified Stock);

 

(v)                                 transactions or payments (including loans and advances) pursuant to any employee, officer or director compensation or benefit plans, customary indemnifications or arrangements entered into in the ordinary course of business;

 

(vi)                              transactions pursuant to agreements in effect on the Issue Date and described in the Offering Memorandum, as amended, modified or replaced from time to time so long as the amended, modified or new agreements, taken as a whole, are no less favorable to the Company and its Subsidiaries than those in effect on the date of this Indenture;

 

(vii)                           any Sale and Leaseback Transaction otherwise permitted under Section 4.06 if such transaction is on market terms;

 

(viii)                        transactions with customers, clients, distributors, suppliers or purchasers or sellers of goods or services, in each case in the ordinary course of business and on market terms;

 

(ix)                              the provision of administrative services to any joint venture on substantially the same terms provided to or by Subsidiaries of the Company; and

 

(x)                                 any guarantee or security granted by an affiliate of the Company in favor of the Company or any of its Subsidiaries on market terms.

 

Section 4.04                             Repurchases at the Option of the Holders Upon Change of Control.

 

(a)                                 Upon the occurrence of a Change of Control that results in a Rating Decline, each Holder shall have the right to require the Issuer to repurchase all or any part (equal to U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof) of that Holder’s Securities pursuant to a Change of Control Offer. No such purchase in part shall reduce the outstanding principal amount of the Securities held by any Holder to below U.S.$200,000. In the Change of Control Offer, the Issuer or the Company shall offer a Change of Control Payment.

 

(b)                                 Within 30 days following any Change of Control that results in a Rating Decline, the Issuer or the Company shall make a Change of Control Offer by notice to each Holder in accordance with the provisions of Section 11.01, stating:

 

(i)                                     that a Change of Control has occurred and that such Holder has the right to require the Issuer to purchase such Holder’s Securities in exchange for its respective portion of the Change of Control Payment;

 

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(ii)                                  an expiration date (the “Expiration Date”) not less than 30 days or more than 60 days after the date of the Change of Control Offer;

 

(iii)                               the Change of Control Payment and the Change of Control Payment Date;

 

(iv)                              information concerning the business of the Company and its Subsidiaries, including the relevant facts regarding such Change of Control, which the Issuer in good faith believes shall enable the Holders to make an informed decision with respect to the Change of Control Offer; and

 

(v)                                 the instructions, as determined by the Issuer, consistent with this Section 4.04, that a Holder must follow in order to have its Securities repurchased.

 

(c)                                  Holders electing to have a Security repurchased shall be required to surrender the Security, with an appropriate form duly completed, to the exchange agent at the address specified in the notice at least three Business Days prior to the Change of Control Payment Date. Holders shall be entitled to withdraw their election if each of the Trustee and the Issuer receives not later than one Business Day prior to the Change of Control Payment Date, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Security which was delivered for repurchase by the Holder and a statement that such Holder is withdrawing his election to have such Security repurchased. Holders whose Securities are purchased only in part shall be issued new Securities equal in principal amount to the unpurchased portion of the Securities surrendered.

 

(d)                                 On the Change of Control Payment Date, the Issuer or the Company shall, to the extent lawful:

 

(i)                                     accept for payment all Securities or portions of Securities properly tendered and not validly withdrawn pursuant to the Change of Control Offer;

 

(ii)                                  deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered and not validly withdrawn; and

 

(iii)                               deliver or cause to be delivered, if applicable, to the Trustee for cancellation the Securities properly accepted together with an Officer’s Certificate stating the aggregate principal amount of Securities or portions of Securities being purchased by the Issuer or the Company.

 

(e)                                  The Paying Agent shall promptly deliver to each Holder of Securities properly tendered the Change of Control Payment for such Securities, and the Trustee shall promptly authenticate and deliver (or cause to be transferred by book entry) to each Holder a new Security equal in principal amount to any unpurchased portion of the Securities surrendered, if any; provided that each new Security shall be in a principal amount of U.S.$200,000 or an integral multiple of U.S.$1,000 in excess thereof. A Security shall be deemed to have been accepted for purchase at the time the Trustee, directly or through an agent, mails or delivers payment therefor

 

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to the surrendering Holder. The Issuer or the Company shall publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

 

(f)                                   Notwithstanding the foregoing, neither the Issuer nor the Company shall be required to make a Change of Control Offer upon a Change of Control if (i) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements, set forth in this Indenture, that are applicable to a Change of Control Offer made by the Issuer or the Company, and such third party purchases all Securities properly tendered and not withdrawn under the Change of Control Offer or (ii) notice of redemption for all Outstanding Securities has been given pursuant to Section 3.02, unless and until there is a default in payment of the applicable redemption price.

 

(g)                                  The Issuer and the Company shall comply, to the extent applicable, with the requirements of Rule 14e-1 of the Exchange Act and any other applicable securities laws or regulations in connection with the repurchase of Securities pursuant to this Section 4.04. To the extent that the provisions of any applicable securities laws or regulations conflict with provisions of this Section 4.04, each of the Issuer and the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.04 by virtue of its compliance with such securities laws or regulations.

 

(h)                                 Notwithstanding anything to the contrary contained in this Section 4.04, a Change of Control Offer may be made in advance of a Change of Control, conditioned upon the consummation of such Change of Control, if a definitive agreement is in place for the Change of Control at the time the Change of Control Offer is made.

 

Section 4.05                             Limitation on Liens. The Company shall not, and shall not permit any Subsidiary to, directly or indirectly, incur or permit to exist any Lien securing the payment of Debt on any of its properties or assets, whether owned at the Issue Date or thereafter acquired, other than Permitted Liens, without effectively providing that the Securities or the Company Guarantee, as applicable, are secured equally and ratably with (or, if the obligation to be secured by the Lien is subordinated in right of payment to the Securities or any Company Guarantee, prior to) the obligations so secured for so long as such obligations are so secured.

 

Section 4.06                             Limitation on Sale and Leaseback Transactions. The Company shall not, and shall not permit any Subsidiary to, enter into any Sale and Leaseback Transaction with respect to any Property unless the Company or such Subsidiary would be entitled to create a Lien on such Property or asset securing such Attributable Debt without equally and ratably securing the Securities pursuant to Section 4.05, in which case, the corresponding Lien shall be deemed incurred pursuant to those provisions.

 

Section 4.07                             Maintenance of Corporate Existence. Subject to Article V hereof, each of the Issuer and the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and shall use its reasonable efforts to do or cause to be done all things necessary to preserve and keep in full force and effect its rights (charter and statutory) and franchises; provided, however, that neither the Issuer nor the Company shall be required to preserve any such right or franchise if its board of directors or management, respectively, shall determine in its sole discretion that the preservation thereof is no longer

 

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desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof would not reasonably be expected to have a Material Adverse Effect; provided further that this Section 4.07 does not prohibit any transaction otherwise permitted by Section 5.01.

 

Section 4.08                             Maintenance of Properties. The Company shall cause all properties used or useful in the conduct of its business or the business of any of its Subsidiaries to be maintained and kept in good condition, repair and working order as in the judgment of the Company may be necessary so that the business of the Company and its Subsidiaries may be properly and advantageously conducted at all times; provided that nothing shall prevent the Company or any of its Subsidiaries from discontinuing the use, operation or maintenance of any of such properties or disposing of any of them, if such discontinuance or disposal is, in the judgment of the Company, desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole.

 

Section 4.09                             Payment of Taxes and Other Claims. Each of the Issuer and the Company shall pay and discharge (a) all taxes, levies, imposts, duties, fees, assessments and governmental charges imposed upon it, or upon its income or profits, or upon any of its properties before they shall become delinquent and (b) all lawful claims (including claims for labor, materials and supplies) which, if unpaid, could reasonably be expected to give rise to a Lien upon any of its properties, unless in each of clause (a) and clause (b), such taxes, levies, imposts, duties, fees, assessments and governmental charges or lawful claims are then the subject of a good faith contest or except where nonpayment thereof would not have a Material Adverse Effect.

 

Section 4.10                             Maintenance of Office or Agency in the State of New York. The Issuer and the Company shall ensure the maintenance in the State of New York of an office or agency where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Issuer or the Company in respect of the Securities and this Indenture may be served. The Issuer and the Company shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Issuer and the Company shall fail to ensure the maintenance of 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, and, in such event, the Trustee shall act as the Issuer’s and the Company’s agent to receive all such presentations, surrenders, notices and demands.

 

The Issuer and the Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve either the Issuer or the Company of its obligation to maintain an office or agency in the State of New York for such purposes. The Issuer shall 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.

 

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Section 4.11                             Notices of Certain Events.

 

(a)                                 The Company shall deliver to the Trustee:

 

(i)                                     within 120 days after the end of each fiscal year an Officer’s Certificate stating that the Issuer and the Company have fulfilled their obligations under this Indenture or, if there has been a Default, specifying the Default and its nature and status; and

 

(ii)                                  as soon as possible and in any event within 10 days after it becomes aware or should reasonably become aware of the occurrence of a Default, an Officer’s Certificate setting forth the details of the Default, and the action which the Issuer or the Company, as applicable, proposes to take with respect thereto.

 

Section 4.12                             Luxembourg Listing. In the event that the Securities are listed on the Luxembourg Stock Exchange for trading on the Euro MTF Market, the Issuer and the Company will use their commercially reasonable efforts to maintain such listing; provided that if such listing of the Securities shall be obtained and it subsequently becomes impracticable or unduly burdensome, in the good faith determination of the Issuer and the Company, to maintain, due to changes in listing requirements occurring subsequent to the Issue Date, the Company may de-list the Securities from the Luxembourg Stock Exchange; and, in the event of any such de-listing, the Company shall use commercially reasonable efforts to obtain an alternative admission to listing, trading and/or quotation of the Securities by another listing authority, exchange or system within or outside the European Union as it may reasonably decide, provided that if such alternative admission is not available or is, in the Issuer and the Company’s reasonable opinion, unduly burdensome, the Issuer and the Company shall have no further obligation in respect of any listing of the Securities.

 

Section 4.13                             Additional Amounts.

 

(a)                                 All payments of principal and interest by the Issuer in respect of the Securities or by the Company in respect of the Company Guarantee shall be made without withholding or deduction for or on account of any present or future taxes, duties, assessments, or other governmental charges of whatever nature imposed or levied by or on behalf of Austria, Brazil or any other jurisdiction or political subdivision thereof from or through which a payment is made or in which the Issuer or the Company (or any successor to the Issuer or the Company) is organized or incorporated, as applicable, or is a resident for tax purposes having power to tax (a “Relevant Taxing Jurisdiction”), unless the Issuer or the Company is compelled by law to deduct or withhold such taxes, duties, assessments, or governmental charges. In such event, the Issuer or the Company shall make such deduction or withholding, make payment of the amount so withheld to the appropriate governmental authority and pay such additional amounts as may be necessary to ensure that the net amounts receivable by Holders of Securities after such withholding or deduction shall equal the respective amounts of principal and interest which would have been received in respect of the Securities in the absence of such withholding or deduction (“Additional Amounts”). No such Additional Amounts shall be payable:

 

(i)                                     in respect of any taxes, duties, assessments or governmental charges that would not have been so withheld or deducted but for the existence of any present or former

 

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connection between the Holder or beneficial owner of the Security (or between a fiduciary, settlor, beneficiary, member or shareholder of such Holder or beneficial owner, if such Holder or beneficial owner is an estate, a trust, a partnership, a limited liability company or a corporation) and the Relevant Taxing Jurisdiction, including, without limitation, such Holder or beneficial owner (or such fiduciary, settlor, beneficiary, member or shareholder) being or having been a citizen or resident thereof or being or having been engaged in a trade or business or present therein or having, or having had, a permanent establishment therein, other than the mere holding of the Security or enforcement of rights and the receipt of payments with respect to the Security;

 

(ii)                                  in respect of Securities presented for payment more than 30 days after the Relevant Date (as defined below) except to the extent that the Holder of such Security would have been entitled to such Additional Amounts, on surrender of such Security for payment on the last day of such period of 30 days;

 

(iii)                               in respect of any taxes, duties, assessments or other governmental charges that would not have been so withheld or deducted but for the failure by the Holder, the beneficial owner of the Security, or, in the case of amounts payable to the Trustee, the Trustee to (i) make a declaration of non-residence, or any other claim or filing for exemption, to which it is entitled, or (ii) comply with any certification, identification or other reporting requirement concerning the nationality, residence, identity or connection with the Relevant Taxing Jurisdiction, if (A) compliance is required by the Relevant Taxing Jurisdiction, as a precondition to, exemption from, or reduction in the rate of, the tax, assessment or other governmental charge and (B) the Issuer has given the holders or the Trustee, as applicable, at least 30 days’ notice that Holders will be required to provide such certification, identification or other requirement; provided that, in no event, shall such Holder’s, beneficial owner’s, or Trustee’s requirement to make a valid and legal claim for exemption from or reduction of such taxes require such Holder, beneficial owner or the Trustee to provide any materially more onerous information, documents or other evidence than would be required to be provided had such Holder, beneficial owner or the Trustee been required to file U.S. Internal Revenue Service Forms W-8 or W-9, as applicable;

 

(iv)                              in respect of any estate, inheritance, gift, sales, transfer, capital gains, excise or personal property or similar tax, assessment or governmental charge;

 

(v)                                 any withholding or deduction that is imposed on the Securities that is presented for payment, where presentation is required, by or on behalf of a Holder who would have been able to avoid such withholding or deduction by presenting such Securities to another paying agent in a member state of the European Union;

 

(vi)                              in respect of any tax, assessment or other governmental charge which is payable other than by deduction or withholding from payments of principal of or interest on the Securities; or

 

(vii)                           in respect of any combination of the above.

 

(b)                                 In addition, no Additional Amounts shall be paid with respect to any payment on a Security to a Holder who is a fiduciary, a partnership, a limited liability company or other than the sole beneficial owner of that payment to the extent that payment would be required

 

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by the laws of the Relevant Taxing Jurisdiction to be included in the income, for tax purposes, of a beneficiary or settlor with respect to the fiduciary, a member of that partnership, an interest holder in a limited liability company or a beneficial owner who would not have been entitled to the Additional Amounts had that beneficiary, settlor, member or beneficial owner been the Holder.

 

(c)                                  “Relevant Date” means, with respect to any payment on a Security, whichever is the later of: (i) the date on which such payment first becomes due; and (ii) if the full amount payable has not been received by the Trustee on or prior to such due date, the date on which notice is given to the Holders that the full amount has been received by the Trustee.

 

(d)                                 Any reference in this Indenture or the Securities to principal, interest or any other amount payable in respect of the Securities by the Issuer or the Company Guarantee shall be deemed also to refer to any Additional Amount, unless the context requires otherwise, that may be payable with respect to that amount under the obligations referred to in this Section 4.13.

 

(e)                                  The Issuer and the Company shall promptly pay when due any present or future stamp, court or documentary taxes or any other excise or property taxes, charges or similar levies that arise in any Relevant Taxing Jurisdiction from the execution, delivery or registration of each security or any other document or instrument referred to herein or therein except, in certain cases, for taxes, charges or similar levies resulting from certain registrations of transfer or exchange of Securities.

 

(f)                                   The foregoing obligation in this Section 4.13 shall survive termination or discharge of this Indenture, payment of the Securities and/or the resignation or removal of the Trustee or any agent hereunder.

 

Section 4.14                             Payments and Paying Agent.

 

(a)                                 Whenever the Issuer shall appoint a Paying Agent other than Deutsche Bank Trust Company Americas with respect to the Securities, it shall cause such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 4.14:

 

(i)                                     that it will hold all sums received by it as such agent for the payment of the principal of or interest, as the case may be, on any Securities (whether such sums have been paid to it by or on behalf of the Issuer or by any other obligor on the Securities) in trust for the benefit of the Holders;

 

(ii)                                  that it will give the Trustee notice of any failure by the Issuer (or by any other obligor on the Securities) to make any payment of the principal of or interest on any Securities, as the case may be (including Additional Amounts), and any other payments to be made by or on behalf of the Issuer under this Indenture or the Securities when the same shall be due and payable; and

 

(iii)                               that it will pay any such sums so held in trust by it to the Trustee upon the Trustee’s written request at any time during the continuance of the failure referred to in clause (ii) above.

 

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(b)                                 Anything in this Section 4.14 to the contrary notwithstanding, the Issuer may at any time, for the purpose of obtaining a satisfaction and discharge with respect to any Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust for such Securities by the Issuer or the Paying Agent hereunder as required by this Section 4.14, such sums to be held by the Trustee upon the trusts herein contained.

 

(c)                                  Anything in this Section 4.14 to the contrary notwithstanding, the agreements to hold sums in trust as provided in this Section are subject to the provisions of Section 8.02.

 

Section 4.15                             Ranking. Each of the Issuer and the Company shall ensure that its respective obligations under this Indenture, the Securities and the Company Guarantee shall at all times constitute direct and unconditional obligations of the Issuer or the Company, ranking at all times at least pari passu in priority of payment among themselves and with all other senior Debt of such Person, except to the extent any such other Debt ranks above such obligations by reason of Liens permitted under Section 4.05.

 

Section 4.16                             Use of Proceeds. The Issuer and the Company shall use the proceeds of the sale of the Initial Securities issued in the Issue Date as set forth under “Use of Proceeds” in the Offering Memorandum for general corporate purposes.

 

ARTICLE V

 

CONSOLIDATION, MERGER OR SALE OF SUBSTANTIALLY ALL ASSETS

 

Section 5.01                             Consolidation, Merger or Sale of Substantially All Assets.

 

(a)                                 Neither the Company nor the Issuer shall, in a single transaction or a series of related transactions:

 

(i)                                     consolidate with or merge with or into any Person,

 

(ii)                                  sell, convey, transfer, assign, or otherwise dispose of all or substantially all of its assets (determined on a consolidated basis for the Company and its Subsidiaries) as an entirety or substantially an entirety, in one transaction or a series of related transactions, to any Person, or

 

(iii)                               permit any Person to merge with or into the Company or the Issuer; in each case unless

 

(A)                               either: (A) the Company or the Issuer, as applicable, is the continuing Person; or (B) the resulting, surviving or transferee Person (the “Successor Company”) is (a) in the event of a merger of the Company, a corporation organized and validly existing under the laws of Brazil or any political subdivision thereof, the United States of America or any state thereof or the District of Columbia or any other country member of the Organization for Economic Co-operation and Development (“OECD”) or (b) in the event of a merger of the Issuer, an entity organized and validly existing under the laws of Austria, the United States of America or any state thereof or the District of Columbia or any other country member of the

 

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OECD, and, in each case, expressly assumes by supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all of the obligations of the Company or the Issuer, as the case may be, under this Indenture and the Company Guarantee, as applicable;

 

(B)                               immediately after giving effect to such transaction, no Default or Event of Default has occurred and is continuing;

 

(C)                               (x) if the Company is organized under Brazilian law or the Issuer is incorporated under Austrian law, as applicable, and the Company or the Issuer merges with a corporation, or the Successor Company is, organized under the laws of the United States, any State thereof or the District of Columbia or any country member of the OECD, or (y) if the Company or the Issuer is organized under the laws of the United States, any State thereof or the District of Columbia and merges with a corporation, or the Successor Company is, organized and/or incorporated under the laws of Brazil or Austria, as applicable, or any country member of the OECD, then the Company, the Issuer or the Successor Company will have delivered to the Trustee an Opinion of Counsel from each of Brazilian or Austrian, as applicable, U.S. and the successor jurisdiction counsel to the effect that, as applicable, the Holders of the Securities will not recognize income, gain or loss for U.S. jurisdiction or Brazilian or Austrian jurisdiction, as applicable, or the successor jurisdiction income tax purposes as a result of such transaction; and

 

(D)                               the Company, the Issuer or the Successor Company, as the case may be, delivers to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that the consolidation, merger or transfer and the supplemental indenture (if any) comply with this Indenture;

 

provided that Section 5.01(a)(ii) does not apply to the consolidation or merger of the Company or the Issuer with or into any of the Company’s Subsidiaries or the consolidation or merger of a Subsidiary of the Company with or into the Company or the Issuer.

 

(b)                                 The Company shall not sell or otherwise transfer any Equity Interests in the Issuer (other than directors’ qualifying shares) to any other Person other than a Subsidiary of the Company unless the Company becomes the direct obligor under the Securities.

 

(c)                                  Upon the consummation of any transaction effected in accordance with these provisions, if the Company or the Issuer, as applicable, is not the continuing Person, the Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Company under the Company Guarantee or the Issuer under this Indenture with the same effect as if such successor Person had been named as the Company or the Issuer, as applicable, in this Indenture. Upon such substitution, unless the successor is one or more of the Company’s Subsidiaries, the Company or the Issuer, as applicable, shall be released from its obligations under this Indenture or the Company Guarantee.

 

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ARTICLE VI

 

DEFAULTS AND REMEDIES

 

Section 6.01                             Events of Default.

 

(a)                                 An “Event of Default” occurs if:

 

(i)                                     the Issuer defaults in the payment of the principal or any related Additional Amounts, if any, of any Security when the same becomes due and payable at maturity, upon acceleration or redemption, or otherwise;

 

(ii)                                  the Issuer defaults in the payment of interest or any related Additional Amounts, if any, on any Security when the same becomes due and payable, and the default continues for a period of 30 days;

 

(iii)                               the Company or the Issuer fails to comply with Section 5.01;

 

(iv)                              The Issuer or the Company, as the case may be, defaults in the performance of or breaches any other of its covenants or agreements in this Indenture or under the Securities and the default or breach continues for a period of 60 consecutive days after written notice to the Issuer and/or the Company, as the case may be, by the Trustee acting at the written direction of Holders of 25.0% or more in aggregate principal amount of the Securities, or to the Issuer, the Company and the Trustee by the Holders of 25.0% or more in aggregate principal amount of the Securities;

 

(v)                                 there occurs with respect to any Debt of the Company or any of its Subsidiaries having an outstanding principal amount of U.S.$75,000,000 (or the equivalent thereof at the time of determination) or more in the aggregate for all such Debt of all such Persons (i) an event of default that results in such Debt being due and payable prior to its scheduled maturity or (ii) failure to make a principal payment when due and such defaulted payment is not made, waived or extended within the applicable grace period;

 

(vi)                              one or more final and non-appealable judgments or orders for the payment of money are rendered against the Issuer, the Company or any of its Subsidiaries and are not paid or discharged, and there is a period of 60 consecutive days following entry of the final and non-appealable judgment or order that causes the aggregate amount for all such final and non-appealable judgments or orders outstanding and not paid or discharged against all such Persons to exceed U.S.$75,000,000 or the equivalent thereof at the time of determination (in excess of amounts which the Company’s insurance carriers have agreed to pay under applicable policies) during which a stay of enforcement, by reason of a pending appeal or otherwise, is not in effect;

 

(vii)                           an involuntary case or other proceeding is commenced against the Issuer, the Company or any of its Subsidiaries that is a Significant Subsidiary or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary with respect to it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect seeking the appointment of a trustee, receiver, administrador judicial, liquidator, custodian or other similar official of it or any substantial part of its Property, and such involuntary case or other proceeding remains undismissed and unstayed for a period of 60 days; or a final order for relief is entered against the Issuer, the Company or such Subsidiaries under relevant bankruptcy laws as now or hereafter in effect;

 

(viii)                        the Issuer, the Company or any of its Subsidiaries that is a Significant Subsidiary or any group of Subsidiaries that, taken together, would constitute a

 

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Significant Subsidiary (i) commences a voluntary case or other proceeding seeking liquidation, reorganization, recuperação judicial ou extrajudicial or other relief with respect to itself or its debts under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, (ii) consents to the appointment of or taking possession by a receiver, administrador judicial, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer, the Company or any such Subsidiaries or for all or substantially all of the Property of the Issuer, the Company or any such Subsidiaries, or (iii) effects any general assignment for the benefit of creditors (an event of default specified in clause (vii) or (viii) of this Section 6.01(a), a “bankruptcy default”);

 

(ix)                              the Company Guarantee ceases to be in full force and effect, other than in accordance with the terms of this Indenture, or the Company denies or disaffirms its obligations under the Company Guarantee;

 

(x)                                 any event occurs that under the laws of Brazil, Austria or any political subdivision thereof or any other country has substantially the same effect as any bankruptcy default; or

 

(xi)                              all or substantially all of the undertaking, assets and revenues of the Issuer, the Company or any of its Subsidiaries that is a Significant Subsidiary or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary is condemned, seized or otherwise appropriated by any Person acting under the authority of any national, regional or local government or the Issuer, the Company or any of its Subsidiaries that is a Significant Subsidiary or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary is prevented by any such Person for a period of 60 consecutive days or longer from exercising normal control over all or substantially all of its undertaking, assets and revenues.

 

(b)                                 The foregoing shall constitute Events of Default whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is 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.

 

Section 6.02                             Acceleration. If an Event of Default (other than an Event of Default specified in Section 6.01(a)(vii) or Section 6.01(a)(viii) with respect to the Issuer, the Company, or any of the Company’s Subsidiaries that is a Significant Subsidiary or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary) occurs and is continuing under this Indenture, the Trustee or the holders of at least 25.0% in aggregate principal amount of the Securities then outstanding, by written notice to the Issuer and to the Company (and to the Trustee if the notice is given by the Holders), may, and the Trustee at the request of such Holders shall, declare the unpaid principal of and accrued interest on the Securities to be immediately due and payable. Upon a declaration of acceleration, such principal and interest shall become immediately due and payable. If an Event of Default specified in Section 6.01(a)(vii) or Section 6.01(a)(viii) occurs, the unpaid principal of and accrued interest on the Securities then outstanding shall become immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. Upon the Securities becoming due and payable under this Section 6.02, the Company shall duly comply with any and all then-applicable Central Bank regulations for remittance of funds outside of Brazil.

 

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Section 6.03                             Other Remedies.

 

(a)                                 If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of or interest on the Securities or to enforce the performance of any provision of the Securities or this Indenture.

 

(b)                                 The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative.

 

Section 6.04                             Rescission/Annulment of Declaration; Waiver of Past Defaults.

 

(a)                                 The holders of a majority in principal amount of the Outstanding Securities by written notice to the Issuer, the Company and to the Trustee may waive all past defaults and rescind and annul a declaration of acceleration and its consequences if:

 

(i)                                     all existing Events of Default, other than the nonpayment of the principal of, premium, if any, and interest on the Securities that have become due solely by the declaration of acceleration, have been cured or waived;

 

(ii)                                  the rescission would not conflict with any judgment or decree of a court of competent jurisdiction; and

 

(iii)                               the Issuer or the Company have deposited with the Trustee of a sum sufficient to pay all sums paid or advanced by the Trustee and the reasonable fees, expenses, disbursements and advances of the Trustee, its agents and counsel, in each case incurred in connection with such Event of Default.

 

(b)                                 Except as otherwise provided in Section 6.02 or Section 9.02, the Holders of a majority in principal amount of the Outstanding Securities may, by written notice to the Trustee, waive an existing Default and its consequences. Upon such waiver, the Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 6.05                             Control by Majority. The Holders of a majority in principal amount of the Outstanding Securities may 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. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, that may involve the Trustee in personal liability, or that the Trustee determines in good faith may be unduly prejudicial to the rights of Holders of Securities not joining in the giving of such direction, and may take any other action it deems proper that is not inconsistent with any such direction received from Holders of Securities.

 

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Section 6.06                             Limitation on Suits.

 

(a)                                 A Holder may not institute any proceeding, judicial or otherwise, with respect to this Indenture or the Securities, or for the appointment of a receiver or trustee, or for any other remedy under this Indenture or the Securities, unless:

 

(i)                                     the Holder has previously given to the Trustee written notice of a continuing Event of Default;

 

(ii)                                  Holders of at least 25.0% in aggregate principal amount of Outstanding Securities have made written request to the Trustee to institute proceedings in respect of the Event of Default in its own name as Trustee under this Indenture;

 

(iii)                               Holders have offered to the Trustee indemnity and/or security satisfactory to the Trustee against any costs, liabilities or expenses to be incurred in compliance with such request;

 

(iv)                              the Trustee within 60 days after its receipt of such notice, request and offer of indemnity and/or security has failed to institute any such proceeding; and

 

(v)                                 during such 60-day period, the Holders of a majority in aggregate principal amount of the Outstanding Securities have not given the Trustee a written direction that is inconsistent with such written request;

 

(b)                                 it being understood and intended that no one or more of such Holders shall have any right in any manner whatsoever 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 therein provided and for the equal and ratable benefit of all such Holders.

 

Section 6.07                             Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of (and premium, if any) and interest (and Additional Amounts), if any, on such Security and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the written consent of such Holder.

 

Section 6.08                             Collection Suit by Trustee. If an Event of Default specified in Section 6.01(a)(i) or Section 6.01(a)(ii) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Issuer or the Company for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided for in Section 7.06.

 

Section 6.09                             Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the Securityholders allowed in any judicial proceedings relative to the Issuer, the Company, their creditors or their property and, unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any bankruptcy custodian, in any such judicial proceeding, is hereby authorized by each Holder to make payments to the Trustee and, in the event

 

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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, its agents and its counsel, and any other amounts due to the Trustee under Section 7.06.

 

Section 6.10                             Priorities.

 

(a)                                 If the Trustee collects any money or property pursuant to this Article VI, it shall pay out the money or property in the following order:

 

(i)                                     FIRST: to the Trustee for amounts due under Section 7.06;

 

(ii)                                  SECOND: to Securityholders for amounts due and unpaid on the Securities for principal and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities for principal and interest, respectively; and

 

(iii)                               THIRD: to the Issuer or, to the extent the Trustee collects any amounts from the Company, to the Company.

 

(b)                                 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10 and shall promptly notify the Issuer thereof. At least 15 days before such record date, the Issuer shall mail to each Securityholder and the Trustee a notice that states the record date, the payment date and amount to be paid.

 

Section 6.11                             Undertaking for Costs. 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, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10.0% in principal amount of the Securities.

 

Section 6.12                             Waiver of Stay or Extension Laws. Neither the Issuer nor the Company (to the extent it may lawfully do so) shall at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any 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 each of the Issuer and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted.

 

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ARTICLE VII

 

TRUSTEE

 

Section 7.01                             Duties of Trustee.

 

(a)                                 Except during the continuance of an Event of Default:

 

(i)                                     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

 

(ii)                                  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. Notwithstanding the foregoing, the Trustee shall examine such certificates and opinions to determine whether or not they conform on their face to the requirements of this Indenture (but need not, and is under no obligation to, confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(b)                                 Following the occurrence and continuance of an Event of Default, the Trustee shall 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 Person would exercise or use under the circumstances in the conduct of such Person’s own affairs.

 

(c)                                  The Trustee may not be relieved from liability for its own grossly negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(i)                                     This Section 7.01(c) does not limit the effect of Section 7.01(a);

 

(ii)                                  the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer unless it is proved that the Trustee was grossly negligent in ascertaining the pertinent facts; and

 

(iii)                               the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05.

 

(d)                                 Every provision of this Indenture that in any way relates to the Trustee is subject to Section 7.01(a), (b) and (c).

 

(e)                                  The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Issuer or the Company.

 

(f)                                   Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

(g)                                  No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur 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 to believe that repayment of such funds or adequate indemnity and/or security against such risk or liability is not reasonably assured to it.

 

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(h)                                 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 7.01.

 

Section 7.02                             Rights of Trustee.

 

(a)                                 Subject to Section 7.01 hereof, the Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document but may, in its discretion, 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 Issuer and the Company, personally or by agent or attorney at the sole cost of and upon a ten-day prior written notice to the Issuer or the Company, as the case may be, and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

 

(b)                                 Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate and/or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officer’s Certificate or Opinion of Counsel.

 

(c)                                  The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.

 

(d)                                 The Trustee shall not be liable for any action it takes or omits to take in good faith which it reasonably believes to be authorized or within its rights or powers; provided, however, that the Trustee’s conduct does not constitute willful misconduct or gross negligence.

 

(e)                                  The Trustee may consult with counsel appointed with due care and the advice or Opinion of Counsel of such counsel with respect to legal matters relating to this Indenture and the Securities shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or such opinion of such counsel.

 

(f)                                   In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

(g)                                  The Trustee shall not be deemed to have notice of any Default or Event of Default (other than a payment default under Section 6.01(a)(i) or Section 6.01(a)(ii)) unless a Trust Officer of the Trustee has received written notice of any event which is in fact such a default at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture.

 

(h)                                 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 to act hereunder.

 

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(i)                                     The Trustee may request that the Company and the Issuer deliver an Officer’s Certificate setting forth the names of the individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded.

 

(j)                                    The obligations of each agent, custodian and other Person employed to act hereunder are several and not joint. In acting hereunder and in connection with the Securities, such agent, custodian or Person shall act solely as an agent of the Issuer and will not assume any obligations towards, or relationship of agency or trust for, any of the Securityholders.

 

(k)                                 The Trustee may conclusively rely and shall be fully protected in acting or refraining to act based upon any document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document.

 

(l)                                     The Trustee shall not be bound to make any investigation into the facts or matters stated in any Officer’s Certificate, Opinion of Counsel, or any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, approval, appraisal, bond, debenture, note, coupon, security other evidence of indebtedness or other paper or document, but 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 Issuer, personally or by agent or attorney at the sole cost of the Issuer.

 

(m)                             In the event the Trustee receives inconsistent or conflicting requests and indemnity from two or more groups of Holders, each representing less than the requisite majority in aggregate principal amount of the Securities then outstanding, pursuant to the provisions of this Indenture, the Trustee, in its sole discretion, may determine what action, if any, shall be taken and shall be held harmless and shall not incur any liability for its failure to act until such inconsistency or conflict is, in its opinion, resolved, and absent willful misconduct or gross negligence, none of the Trustee, Registrar, Paying Agent or Transfer Agent shall be liable for acting in good faith on instructions believed by them to be genuine and from the proper party.

 

(n)                                 The Trustee shall have no duty to inquire as to the performance of the covenants contained herein and shall be entitled to assume that the Issuer, the Company and any Restricted Subsidiaries are in compliance with the terms of this Indenture.

 

(o)                                 The Trustee shall not have any obligation or duty to monitor, determine or inquire as to compliance, and shall not be responsible or liable for compliance with restrictions on transfer, exchange, redemption, purchase or repurchase, as applicable, of minimum denominations imposed under this Indenture or under applicable law or regulation with respect to any transfer, exchange, redemption, purchase or repurchase, as applicable, of any interest in any Securities, but may at its sole discretion, choose to do so.

 

(p)                                 The permissive rights of the Trustee to take the actions permitted by this Indenture will not be construed as an obligation or duty to do so.

 

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(q)                                 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 Holders, unless such Holders shall have provided to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction.

 

Section 7.03                             Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Issuer, the Company or their Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply with Section 7.09 and Section 7.10.

 

Section 7.04                             Trustee’s Disclaimer. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Company Guarantee or the Securities, it shall not be accountable for the Issuer’s use of the proceeds from the Securities, and it shall not be responsible for any statement of the Issuer or the Company in this Indenture or in any document issued in connection with the sale of the Securities or in the Securities other than the Trustee’s certificate of authentication.

 

Section 7.05                             Notice of Defaults. If any Event of Default occurs and is continuing and is known to a Trust Officer of the Trustee (it being understood and agreed that any Event of Default other than a default in payment of principal and/or interest with respect to the Securities will only be known by the Trustee upon a Trust Officer of the Trustee’s receipt of a written notice specifying such Event of Default at its Corporate Trust Office, with such notice referencing the Securities and this Indenture), the Trustee shall send notice of the Event of Default to each holder within 90 days after it occurs, unless the Event of Default has been cured; provided that, except in the case of a default in the payment of the principal of or interest on any Security, the Trustee may withhold the notice if and so long as a trust committee of Trust Officers of the Trustee in good faith determines that withholding the notice is in the interest of the Securityholders. The Trustee shall not be charged with knowledge of any Default or Event of Default other than a Default under Section 6.01(a)(i) or Section 6.01(a)(ii) hereof unless a Trust Officer in the Corporate Trust Office of the Trustee shall have received written notice thereof from the Issuer, the Company or a Securityholder, expressly referencing this Indenture and the Securities.

 

Section 7.06                             Compensation and Indemnity.

 

(a)                                 The Issuer and the Company, jointly and severally, shall pay to the Trustee from time to time compensation for its services hereunder and under the Notes as the parties may from time to time agree in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Issuer and the Company shall, jointly and severally, reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it, including, but not limited to, costs of collection, costs of preparing reports, certificates and other documents, costs of preparation and mailing of notices to Holders. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the agents, counsel, accountants and experts of the Trustee. The Issuer and the Company shall, jointly and severally, shall indemnify the Trustee or any predecessor Trustee (which for purposes of this Section 7.06 shall be deemed to include its directors, officers, agents and employees), the

 

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Paying Agent and the Registrar against any and all loss, liability or expense (including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) and reasonable and documented attorneys’ fees and expenses) incurred by it in connection with the administration of this trust and/or the performance of its duties hereunder, including the reasonable costs and expenses of defending itself against any claim (whether asserted by the Company, the Issuer, any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, or in connection with enforcing the provisions of this Section 7.06, except to the extent that such loss, damage, claim, liability or expense is determined in a final non-appealable judgment by a court of competent jurisdiction is due to its own willful misconduct or gross negligence. The Trustee, the Paying Agent or the Registrar, as applicable, shall notify the Issuer and the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee, the Paying Agent or the Registrar to so notify the Issuer and the Company shall not relieve the Issuer and the Company of their obligations hereunder. The Issuer and the Company shall defend the claim and the Trustee, the Paying Agent or the Registrar may have separate counsel and the Issuer and the Company shall pay the reasonable and documented fees and expenses of such counsel; provided that the Issuer and the Company shall not be required to pay such fees and expenses if they assume such indemnified party’s defense and, in such indemnified party’s reasonable judgment, there is no conflict of interest between the Issuer and the Company and such parties in connection with such defense. In no event shall the Issuer or the Company be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from its own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstance. The Issuer and the Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed.

 

(b)                                 To secure the Issuer’s and the Company’s obligations in this Section 7.06, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee other than money or property held in trust to pay principal of and interest and Additional Amounts, if any, on particular Securities.

 

(c)                                  The Issuer’s and the Company’s payment obligations pursuant to this Section 7.06 shall survive the discharge of this Indenture, final payment on the Securities and resignation or removal of the Trustee. When the Trustee incurs expenses after the occurrence of an Event of Default specified in Section 6.01(a)(vii) or Section 6.01(a)(viii) with respect to the Issuer or the Company, the expenses are intended to constitute expenses of administration under the U.S. Bankruptcy Code.

 

Section 7.07                             Replacement of Trustee.

 

(a)                                 The Trustee may resign at any time by 30 days prior written notice to the Issuer and the Company. The Holders of a majority in principal amount of the Outstanding Securities may remove the Trustee by 30 days prior written notice to the Trustee and the Issuer may appoint a successor Trustee. The Issuer shall remove the Trustee if:

 

(i)                                     the Trustee fails to comply with Section 7.09;

 

(ii)                                  the Trustee is adjudged bankrupt or insolvent;

 

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(iii)                               a receiver or other public officer takes charge of the Trustee or its property; or

 

(iv)                              the Trustee otherwise becomes incapable of acting as Trustee hereunder.

 

(b)                                 In addition, the Issuer may remove the Trustee at any time for any reason to the extent the Issuer has given the Trustee at least 30 days’ written notice and as long as no Default or Event of Default has occurred and is continuing.

 

(c)                                  A resignation or removal of the Trustee and appointment of a successor trustee shall become effective only upon the successor trustee’s acceptance of appointment as provided in this Section 7.07.

 

(d)                                 If the Trustee has been removed by the Holders, Holders of a majority in principal amount of the Securities may appoint a successor trustee with the consent of the Issuer. Otherwise, if the Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any reason, the Issuer shall promptly appoint a successor trustee; provided, however, that in case of a bankruptcy of the Issuer, the resigning Trustee shall have the right to appoint a successor trustee within 10 Business Days after giving of such notice of resignation if the Issuer has not already appointed a successor trustee. If the successor trustee does not deliver its written acceptance within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuer or the holders of a majority in principal amount of the Outstanding Securities may appoint a successor trustee or may, at the expense of the Issuer, petition any court of competent jurisdiction for the appointment of a successor trustee.

 

(e)                                  Upon delivery by the successor trustee of a written acceptance of its appointment to the retiring Trustee and to the Issuer, (i) the retiring Trustee shall, upon payment of its charges, transfer all property held by it as Trustee to the successor trustee, (ii) the resignation or removal of the retiring Trustee shall become effective, and (iii) the successor trustee shall have all the rights, powers and duties of the Trustee under this Indenture. Upon request of any successor trustee, the Issuer shall execute any and all instruments for fully vesting in and confirming to the successor trustee all such rights, powers and trusts. The Issuer shall give notice of any resignation and any removal of the Trustee and each appointment of a successor trustee to all Holders, and include in the notice the name of the successor trustee and the address of its Corporate Trust Office.

 

(f)                                   If the Trustee fails to comply with Section 7.09, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of another successor Trustee.

 

(g)                                  Notwithstanding the replacement of the Trustee pursuant to this Section 7.07, the Issuer’s obligations under Section 7.06 shall continue for the benefit of the retiring Trustee.

 

Section 7.08                             Successor Trustee by Merger.

 

(a)                                 If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association,

 

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the resulting, surviving or transferee corporation without any further act shall be the successor Trustee.

 

(b)                                 In case at the time such successor or successors by merger, conversion or consolidation to the Trustee shall succeed to the trusts created by this Indenture any of the Securities that shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have.

 

Section 7.09                             Eligibility; Disqualification. The Trustee shall at all times satisfy the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at least U.S.$50,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Issuer are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met.

 

Section 7.10                             Preferential Collection of Claims Against Issuer. The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

 

Section 7.11                             Appointment of Co-Trustee.

 

(a)                                 Notwithstanding any other provisions of this Indenture, the Trustee shall have the power and may execute and deliver all instruments necessary to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees, and to vest in such Person or Persons, in such capacity and for the benefit of the Securityholders, subject to the other provisions of this Section, such powers, duties, obligations and rights as the Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 7.09 and no notice to Holders of the appointment of any co-trustee or separate trustee shall be required under Section 7.07 hereof.

 

(b)                                 Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

 

(i)                                     all rights, powers, duties and obligations conferred or imposed upon the Trustee shall be conferred or imposed upon and exercised or performed by the Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Trustee;

 

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(ii)                                  no trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder; and

 

(iii)                               the Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee.

 

(c)                                  Any notice, request or other writing given to the Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article VII. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection or rights (including the rights to compensation, reimbursement and indemnification hereunder) to, the Trustee. Every such instrument shall be filed with the Trustee.

 

(d)                                 Any separate trustee or co-trustee may at any time constitute the Trustee its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

 

(e)                                  Notwithstanding any provision of Section 7.11, the appointment of any separate trustee or co-trustee shall only be effective upon the prior written consent of the Issuer or the Company, which consent shall not be unreasonably withheld or delayed.

 

ARTICLE VIII

 

SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.01                             Satisfaction and Discharge of Liability on Securities.

 

(a)                                 This Indenture subject to Section 8.01(b), will be discharged and cease to be of further effect as to all Securities issued hereunder, when:

 

(i)                                     (A) the Issuer delivers to the Trustee all Outstanding Securities (other than Securities for whose payment money has theretofore been deposited in trust and thereafter repaid to the Issuer as provided in Section 8.03) for cancellation; or

 

(B) all Securities that have not been delivered to the Trustee for cancellation have become due and payable or will become due and payable within one year due to maturity or redemption and the Issuer or the Company irrevocably deposits or causes to be deposited with the Trustee as funds in trust solely for the benefit of the Holders U.S. dollars or U.S. Government Obligations in an amount as will be sufficient without consideration of any reinvestment of interest, to pay and discharge all principal, premium and Additional Amounts, if

 

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any, and accrued and unpaid interest to the date of maturity or redemption on the Securities not delivered to the Trustee for cancellation;

 

(ii)                                  no Default has occurred and will continue after the date of the deposit or will occur as a result of the deposit and the deposit will not result in a breach or violation of, or constitute a default under, any other material instrument to which the Issuer, the Company or any of its Subsidiaries is a party or by which the Issuer, the Company or any of its Subsidiaries is bound;

 

(iii)                               the Issuer, the Company or any Subsidiary has paid or caused to be paid all other sums payable by it hereunder;

 

(iv)                              the Issuer and the Company have delivered irrevocable instructions to the Trustee to apply the deposited money toward the payment of the Securities at maturity or the Redemption Date, as the case may be; and

 

(v)                                 the Issuer and the Company have delivered to the Trustee an Opinion of Counsel and an Officer’s Certificate as to compliance with all conditions precedent provided for in this Indenture relating to the satisfaction and discharge of the Securities and in case of redemption, has given notice of redemption.

 

(b)                                 Notwithstanding Section 8.01(a), this Article VIII and the Issuer’s obligations in Section 2.03, Section 2.04, Section 2.05, Section 2.06, Section 2.07, Section 2.08, Section 7.06 and Section 7.07 shall survive until the Securities have been paid in full. Thereafter, Section 8.03 and the Issuer’s and the Company’s obligations in Section 7.06 and Section 8.04 shall survive.

 

Section 8.02                             Application of Trust Money. The Trustee shall hold in trust U.S. dollars or U.S. Government Obligations deposited with it pursuant to this Article VIII. It shall apply the deposited money or U.S. Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of and interest and Additional Amounts, if any, on the Securities.

 

Section 8.03                             Repayment to Issuer.

 

(a)                                 The Trustee and the Paying Agent shall promptly turn over to the Issuer upon request any excess money or Securities held by them at any time.

 

(b)                                 Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Issuer upon request any money held by them for the payment of principal and interest and Additional Amounts, if any, that remains unclaimed for two years, and, thereafter, Securityholders entitled to the money must look only to the Issuer and not to the Trustee or the Paying Agent for payment as general creditors.

 

Section 8.04                             Defeasance. Either of the Issuer or the Company may, at its option, at any time elect to have either Section 8.04(a) or Section 8.04(b) applied to all Outstanding Securities and the Company Guarantee upon compliance with the conditions set forth in this Section 8.04:

 

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(a)                                 Upon the Issuer’s or the Company’s election of the “legal defeasance” option applicable to this Section 8.04(a), and subject to the satisfaction of the conditions set forth in Section 8.04(c), the Issuer and the Company shall be discharged from any and all obligations in respect of this Indenture, the Issuer shall be discharged from any and all obligations in respect of the Securities, and the Company shall be discharged from any and all obligations in respect of the Company Guarantee (except in each case for the obligations to register the transfer or exchange of Securities, replace stolen, lost or mutilated Securities, maintain paying agencies and hold moneys for payment in trust). Subject to compliance with this Section 8.04, the Issuer or the Company may exercise its option under this Section 8.04(a) notwithstanding the prior exercise of its option under Section 8.04(b). If the Issuer or the Company exercises the “legal defeasance” option, any payment on the Securities may not be accelerated due to an Event of Default with respect thereto.

 

(b)                                 Upon the Issuer’s or the Company’s election of the “covenant defeasance” option applicable to this Section 8.04(b), and subject to the satisfaction of the conditions set forth in Section 8.04(c) hereof, the Issuer and the Company, as applicable, need not comply with the covenants set forth in Section 4.02, Section 4.03, Section 4.05, Section 4.06, Section 4.07, Section 4.08, Section 4.09, Section 4.11, Section 4.12, Section 4.13, Section 4.15 and Section 4.16, the requirements of Section 5.01(a)(iii)(C) and Section 6.01(a)(iv), Section 6.01(a)(v), Section 6.01(a)(vi), Section 6.01(a)(ix) and Section 6.01(a)(xi) shall not constitute Events of Default.

 

(c)                                  In order to exercise the options set forth in Section 8.04(a) or Section 8.04(b) above the Issuer must irrevocably deposit in trust with the Trustee an amount in U.S. dollars or U.S. Government Obligations sufficient, as certified in an Officer’s Certificate, to pay the entire aggregate principal amount plus interest and premium, if any, on the Securities to maturity or redemption and by meeting certain other conditions, including delivery to the Trustee of either a ruling received from the Internal Revenue Service or an Opinion of Counsel to the effect that the holders will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the defeasance and will be subject to U.S. federal income tax on the same amount and in the same manner and at the same times as would otherwise have been the case. In the case of legal defeasance or discharge, such an opinion shall not be given with respect to a change in law after the date of this Indenture. In addition, in the case of any legal defeasance, the Issuer must deliver to the Trustee an Opinion of Counsel in each of Austria, Brazil, and any other jurisdiction in which the Issuer or the Company is organized or incorporated, as applicable, or is resident for tax purposes, to the effect that Holders of the applicable Securities will not recognize income, gain or loss in the relevant jurisdiction (as applicable) as a result of such deposit and defeasance and will be subject to taxes in the relevant jurisdiction (other than withholding taxes) (as applicable) on the same amounts, in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred. In the case of any legal defeasance, the defeasance shall in each case be effective when 90 days have passed since the date of the deposit in trust.

 

Section 8.05                             Reinstatement. If the Trustee or the Paying Agent is unable to apply any U.S. dollars or U.S. Government Obligations in accordance with Section 8.04 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuer’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.04 until such time as the Trustee or such Paying Agent is permitted to apply

 

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all such U.S. dollars or U.S. Government Obligations in accordance with Section 8.04; provided, however, that, if the Issuer has made any payment of interest or Additional Amounts, if any, on or principal of any Securities because of the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Securities to receive such payment from the U.S. dollars or U.S. Government Obligations held by the Trustee or such Paying Agent.

 

ARTICLE IX

 

AMENDMENTS

 

Section 9.01                             Without Consent of Holders.

 

(a)                            Notwithstanding Section 9.02, the Issuer, the Company and the Trustee may amend or supplement this Indenture or the Securities without notice to or consent of any Securityholder:

 

(i)                                     to cure any ambiguity, defect or inconsistency in this Indenture or the Securities as evidenced by an Opinion of Counsel (delivered to the Trustee);

 

(ii)                                  to comply with Section 5.01;

 

(iii)                               to evidence and provide for the acceptance of an appointment by a successor trustee;

 

(iv)                              to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

(v)                                 to provide for any guarantee of the Securities, to secure the Securities or to confirm and evidence the release, termination or discharge of any guarantee of or Lien securing the Securities when such release, termination or discharge is permitted by this Indenture;

 

(vi)                              to provide for or confirm the issuance of Additional Securities; or

 

(vii)                           to make any other change that does not materially, adversely affect the rights of any Holder or to conform the terms of this Indenture with the description thereof set forth in the “Description of Notes” section of the Offering Memorandum as evidenced by an Opinion of Counsel delivered to the Trustee.

 

Section 9.02                             With Consent of Holders.

 

(a)                                 Except as otherwise provided in Section 6.02, Section 6.04, Section 6.05, Section 6.06, Section 6.07 or Section 9.02(b), the Issuer, the Company and the Trustee may amend this Indenture and the Securities with the written consent of the Holders of a majority in principal amount of the Outstanding Securities and the Holders of a majority in principal amount of the Outstanding Securities may waive future compliance by the Issuer or the Company with any provision of this Indenture or the Securities.

 

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(b)                                 Notwithstanding the provisions in 9.01, without the consent of each Holder affected, an amendment or waiver shall not (with respect to any Securities held by a non-consenting Holder):

 

(i)                                     reduce the principal amount of or change the Stated Maturity of any installment of principal of any Security;

 

(ii)                                  reduce the rate of or change the payment date of any interest payment on any Security;

 

(iii)                               reduce the amount payable upon the redemption of any Security in respect of an optional redemption, change the times at which any Security may be redeemed or, once notice of redemption has been given, change the time at which it must thereupon be redeemed;

 

(iv)                              after the time a Change of Control Offer is required to have been made, reduce the purchase amount or purchase price, or extend the latest expiration date or purchase date thereunder with respect to the Securities;

 

(v)                                 make any Security payable in currency or at any place other than that stated in the Security;

 

(vi)                              impair the right of any Holder of Securities to institute suit for the enforcement of any payment on or with respect to any Security;

 

(vii)                           make any change in the percentage of the principal amount of the Securities required for amendments or waivers;

 

(viii)                        modify or change any provision of this Indenture affecting the ranking of the Securities in a manner adverse to the Holders of the Securities; or

 

(ix)                              make any change in the Company Guarantee that would materially and adversely affect the Holders of Securities.

 

(c)                                  It shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof.

 

(d)                                 Neither the Company nor any of its Subsidiaries or Affiliates shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Securities unless such consideration is offered to be paid or agreed to be paid to all Holders of the Securities that consent, waive or agree to amend such term or provision within the time period set forth in the solicitation documents relating to the consent, waiver or amendment.

 

(e)                                  The Issuer shall notify the Luxembourg Stock Exchange of any amendment regardless of whether Securityholders’ approval is required.

 

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(f)                                   After an amendment under this Section 9.02 becomes effective, the Issuer shall (or shall cause the Trustee to) deliver to Securityholders a notice briefly describing such amendment. The failure to give such notice to all Securityholders, or any defect therein, shall not impair or affect the validity of an amendment under this Section 9.02.

 

Section 9.03                             Substitution of the Issuer.

 

(a)                                 Notwithstanding any other provision contained in this Indenture, (i) the Issuer may, without the consent of any Holder (and by purchasing any Securities, each Holder expressly consents to the provisions of this Section 9.03), be substituted by (i) the Company or (ii) any Wholly-Owned Subsidiary of the Company as principal debtor in respect of the Securities (in each case, in such capacity, the “Successor Issuer”); provided that the following conditions are satisfied:

 

(i)                                     such documents shall be executed by the Successor Issuer, the Issuer, the Company and the Trustee as may be necessary to give full effect to the substitution, including (i) a supplemental indenture under which the Successor Issuer assumes all of the Issuer’s obligations under this Indenture and the Securities and, unless the Company’s then existing Company Guarantee remains in full force and effect, substitute guarantee issued by the Company in respect of the Securities and (ii) a Subsidiary guarantee by the Issuer (collectively, the “Issuer Substitution Documents”) and (without limiting the generality of the foregoing) pursuant to which the Successor Issuer shall undertake in favor of each Holder to be bound by the terms and conditions of the Securities and the provisions of this Indenture as fully as if the Successor Issuer had been named in the Securities and this Indenture as the principal debtor in respect of the Securities and the Issuer shall unconditionally and irrevocably guarantee in favor of each Holder the payment of all sums payable by the Successor Issuer as such principal debtor on the same terms mutatis mutandis as the Securities;

 

(ii)                                  without limiting the generality of Section 9.03(a)(i), the Issuer Substitution Documents shall contain covenants by the Successor Issuer (i) to ensure that each Holder has the benefit of a covenant in terms corresponding to the obligations of the Issuer in respect of the payment of Additional Amounts set forth in Section 4.13 of this Indenture, with the substitution of the references to Austria with references to the jurisdiction of organization of the Successor Issuer; and (ii) to indemnify each Holder and beneficial owner of the Securities against all taxes or duties (a) which arise by reason of a law or regulation in effect or contemplated on the effective date of the substitution, which may be incurred or levied against such Holder or beneficial owner of the Securities as a result of the substitution pursuant to the conditions set forth in this Section 9.03 and which would not have been so incurred or levied had such substitution not been made and (b) which are imposed on such Holder or beneficial owner of the Securities by any political subdivision or taxing authority of any country in which such Holder or beneficial owner of the Securities resides or is subject to any such tax or duty and which would not have been so imposed had the substitution not been made;

 

(iii)                               the Successor Issuer shall have delivered, or caused the delivery, to the Trustee of an Opinion of Counsel in the jurisdiction of organization of the Successor Issuer, Austria, Brazil and Luxembourg, to the effect that the Issuer Substitution Documents, this Indenture, the Securities and the Company Guarantee constitute legal, valid and binding

 

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obligations of the Successor Issuer, enforceable against the Successor Issuer in accordance with their terms (subject, as to the enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, fraudulent transfer, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity) and other specified legal matters, such Opinion of Counsel to be dated not more than five days prior to the date of succession of the Issuer by the Successor Issuer;

 

(iv)                              the Successor Issuer shall have delivered, or caused the delivery, to the Trustee of an Opinion of Counsel from New York counsel reasonably satisfactory to the Trustee, to the effect that (i) the Issuer Substitution Documents this Indenture, the Securities and the Guarantee constitute legal, valid and binding obligations of the Successor Issuer, the Company and the Guarantor parties thereto under the law of the State of New York, enforceable against such parties in accordance with their terms (subject, as to the enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, fraudulent transfer, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity), and (ii) no consent, approval, authorization or order of any U.S. federal or New York State court or governmental agency or regulatory body is required for the consummation of the transactions contemplated by the Issuer Substitution Documents and compliance with the terms thereof by each of the Successor Issuer, the Company and the Guarantor, except as may be required by U.S. state securities laws, such Opinion of Counsel to be dated not more than five days prior to the date of succession of the Issuer by the Successor Issuer;

 

(v)                                 the Successor Issuer shall have delivered, or caused the delivery, to the Trustee of an Officer’s Certificate as to compliance with the provisions of this Indenture, including those provisions described under this Section 9.03;

 

(vi)                              the Successor Issuer shall have appointed a process agent in the Borough of Manhattan, in the City of New York to receive service of process on its behalf in relation to any legal action or proceedings arising out of or in connection with the Securities, this Indenture and the Issuer Substitution Documents;

 

(vii)                           no Event of Default shall have occurred and be continuing;

 

(viii)                        such substitution shall comply with all applicable requirements under the laws of the jurisdiction of organization of the Successor Issuer, Austria, Brazil and Luxembourg for the purpose of such substitution.

 

(b)                                 Upon the execution of the Issuer Substitution Documents, any substitute guarantee and compliance with the other conditions set forth in Section 9.03(a) hereof, (i) the Successor Issuer shall be deemed to be named in the Securities as the principal debtor in place of the Issuer, (ii) the Securities shall thereupon be deemed to be amended to give effect to such succession and (iii) any reference in this Indenture to the Issuer shall from then on be deemed to refer to the Successor Issuer and any reference to the country in which the Issuer is domiciled or resident for taxation purposes shall from then on be deemed to refer to the country of domicile or residence for taxation purposes of the Successor Issuer.

 

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(i)                                     The Issuer Substitution Documents shall be delivered to and held by the Trustee for so long as any Securities remain outstanding and for so long as any claim may be made against the Successor Issuer or the Issuer by any Holder in respect of the Securities or the Issuer Substitution Documents shall not have been finally adjudicated, settled or discharged. The Successor Issuer and the Issuer shall acknowledge in the Issuer Substitution Documents the right of every Holder to the production of the Issuer Substitution Documents for the enforcement of any of the Securities, this Indenture or the Issuer Substitution Documents.

 

(ii)                                  Not later than 10 Business Days after the execution of the Issuer Substitution Documents, the Successor Issuer shall give notice thereof to the Holders. Notice of any such substitution shall be published in accordance with Section 11.01.

 

(iii)                               Notwithstanding any other provision of this Indenture, the Company (unless it is the Successor Issuer) shall promptly execute and deliver any documents or instruments, including any substitute guarantee and a legal opinion of internationally recognized Brazilian, Luxembourg and Austrian counsel that may be required, or that the Trustee may reasonably request, to ensure that the Company’s Guarantee shall continue in full force and effect for the benefit of the Holders and beneficial owners of the Securities following the succession pursuant to this Article IX.

 

Section 9.04                             Revocation and Effect of Consents and Waivers.

 

(a)                                 A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Securityholder. An amendment or waiver becomes effective upon the execution of such amendment or waiver by the Trustee.

 

(b)                                 The Issuer may, but shall not be obligated to, fix a record date for the purpose of determining the Securityholders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding Section 9.04(a), those Persons who were Securityholders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 120 days after such record date unless the consent of the requisite number of Holders has been obtained.

 

Section 9.05                             Notation on or Exchange of Securities. If an amendment changes the terms of a Security, the Trustee may require the Holder of that Security to deliver it to the Trustee. The Trustee may place an appropriate notation on that Security regarding the changed terms and return it to the Holder. Alternatively, if the Issuer or the Trustee so determines, the Issuer in exchange for that Security shall issue and the Trustee shall authenticate a new Security that reflects

 

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the changed terms. Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment.

 

Section 9.06                             Trustee to Sign Amendments. The Trustee shall sign any amendment authorized pursuant to this Article IX if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In signing such amendment the Trustee shall be entitled to receive indemnity and/or security reasonably satisfactory to it and to receive, and (subject to Section 7.01) shall be fully protected in relying upon, in addition to the documents required pursuant to Section 11.03, an Officer’s Certificate and an Opinion of Counsel each stating that such amendment is authorized or permitted by this Indenture.

 

ARTICLE X

 

GUARANTEE BY THE COMPANY

 

Section 10.01                      Guarantee. Subject to the provisions of this Article, the Company hereby irrevocably and unconditionally guarantees to each Securityholder and to the Trustee the due and punctual payment (whether at the Maturity Date, upon redemption, purchase pursuant to an offer to purchase or acceleration or otherwise) of the principal, interest, Additional Amounts and all other amounts payable by the Issuer under this Indenture and the Securities as they come due. Upon failure by the Issuer to pay punctually any such amount, the Company shall forthwith pay the amount not so paid at the place and time and in the manner specified in this Indenture. This Guarantee constitutes a direct, general and unconditional obligation of the Company which will at all times rank at least pari passu with all other present and future unsecured obligations of the Company, except for such obligations as may be preferred by mandatory provisions of law.

 

Section 10.02                      Guarantee Unconditional. The obligations of the Company hereunder are unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by:

 

(a)                                 any extension, renewal, settlement, compromise, waiver or release in respect of any obligation of the Issuer under this Indenture or any Security, by operation of law or otherwise;

 

(b)                                 any modification or amendment of or supplement to this Indenture (other than this Article X) or any Security;

 

(c)                                  any change in the corporate existence, structure or ownership of the Issuer, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Issuer or its assets or any resulting release or discharge of any obligation of the Issuer contained in this Indenture or any Security;

 

(d)                                 the existence of any claim, set-off or other rights which the Company may have at any time against the Issuer, the Trustee or any other Person, whether in connection with this Indenture or any unrelated transactions; provided that nothing herein prevents the assertion of any such claim by separate suit or compulsory counterclaim;

 

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(e)                                  any invalidity or unenforceability relating to or against the Issuer for any reason of this Indenture or any Security, or any provision of applicable law or regulation purporting to prohibit the payment by the Issuer of the principal of or interest on any Security or any other amount payable by the Issuer under this Indenture;

 

(f)                                   any other act or omission to act or delay of any kind by the Issuer, the Trustee or any other Person or any other circumstance whatsoever which might, but for the provisions of this paragraph, constitute a legal or equitable discharge of or defense to the Company’s obligations hereunder; or

 

(g)                                  any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms of this Indenture.

 

Section 10.03                      Termination, Release and Discharge; Reinstatement.

 

(a)                                 The Company’s obligations hereunder shall remain in full force and effect until the principal of, premium, if any, and interest on the Securities and all other amounts payable by the Issuer under this Indenture and the Securities have been paid in full. If at any time any payment of the principal of, premium, if any, or interest on any Security or any other amount payable by the Issuer under this Indenture is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the Issuer or otherwise, the Company’s obligations hereunder with respect to such payment shall be reinstated as though such payment had been due but not made at such time.

 

(b)                                 The Company’s obligations hereunder shall be released and relieved upon a sale or other disposition (including by way of consolidation or merger) of the Company or the sale or disposition of all or substantially all the assets of the Company (other than to the Issuer) otherwise permitted by this Indenture, or discharge or legal defeasance of the Securities pursuant to Section 8.01 or Section 8.04.

 

Section 10.04                      Waiver by the Company.

 

(a)                                 The Company unconditionally and irrevocably waives acceptance hereof, presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against the Issuer or any other Person. The Company Guarantee constitutes a guarantee of payment and not of collection.

 

(b)                                 The Company unconditionally and irrevocably waives any and all rights provided under the relevant applicable law of Brazil on prior demand and protest, including those of articles 333, sole paragraph, 364, 366, 368, 821, 827, 830, 834, 835, 837, 838 and 839 of Law No. 10,406, dated January 10, 2002, as amended (Brazilian Civil Code), and articles 130 and 794 of Law No. 13,105, dated March 16, 2015, as amended (Brazilian Code of Civil Procedure).

 

Section 10.05                      Subrogation and Contribution. Upon making any payment with respect to any obligation of the Issuer under this Article X, the Company shall be subrogated to the rights of the payee against the Issuer with respect to such obligation; provided, however, that the Company shall not be entitled to enforce, or to receive any payments arising out of or based upon,

 

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such right of subrogation until the principal of (and premium, if any), interest, and Additional Amounts on all Securities shall have been paid in full.

 

Section 10.06                      Stay of Acceleration. If acceleration of the time for payment of any amount payable by the Issuer under this Indenture or the Securities is stayed upon the insolvency, bankruptcy or reorganization of the Issuer, all such amounts otherwise subject to acceleration under the terms of this Indenture are nonetheless payable by the Company forthwith on demand by the Trustee.

 

Section 10.07                      Execution and Delivery of Guarantee. The execution by the Company of this Indenture evidences the Guarantee of the Company, whether or not the person signing as an officer of the Company still holds that office at the time of authentication of any Security. The delivery of any Security by the Trustee after authentication constitutes due delivery of the Guarantee set forth in this Indenture on behalf of the Company.

 

Section 10.08                      Purpose of Guarantee. The Company hereby acknowledges that the purpose and intent of the Company in executing this Indenture and providing the Guarantee is to give effect to the agreement of the Company to guarantee the payment of any such amounts due by the Issuer under the Securities and this Indenture, whether such amounts are in respect of principal, interest or any other amounts (including Additional Amounts). Therefore, the Company agrees that if the Issuer shall fail to pay in full when due (whether at stated maturity, by acceleration or otherwise) any principal, interest or any other amounts (including Additional Amounts) with respect to this Indenture and the Securities, the Company shall promptly pay the same, without any demand or notice whatsoever. The Trustee shall promptly deposit in the account designated by the Trustee to receive payments from the Issuer with respect to the Securities for further payment to the Holders any funds it receives from the Company under or pursuant to this Guarantee in respect of the Securities.

 

Section 10.09                      Central Bank Regulations. The Company shall comply with all then-applicable Central Bank regulations to legally effect any payments under the Company Guarantee at the time any such payment is made or required to be made.

 

Section 10.10                      Place of Performance of Guarantee. The exclusive place of performance (Erfüllungsort) for all rights and obligations under this Guarantee, including, but not limited to, payment obligations, shall be New York and Brazil, but in any case outside of Austria. In relation to any payment under or in connection with this Guarantee, this in particular means that such payment must be made to and from a bank account outside of Austria. The performance of any obligation or liability under or in connection with the Guarantee within Austria shall not constitute discharge or performance of such obligation or liability.

 

ARTICLE XI

 

MISCELLANEOUS

 

Section 11.01                      Notices.

 

(a)                                 Any notice or communication to the Issuer, the Company, the Trustee or the Paying Agent shall be in writing in the English language or a certified translation, and delivered

 

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in person, sent by facsimile, emailed with PDF attached, or mailed by first-class mail addressed as follows:

 

(i)                                     if to the Issuer or the Company:

 

Suzano S.A.
 Av. Brigadeiro Faria Lima, 1355 — 8th floor
 01452-919 São Paulo, SP
 Brazil
 Attention:                                         Marcelo Feriozzi Bacci Julio Cesar Maciel Ramundo
 Facsimile:                                         +55-11-3503-9099

 

(ii)                                  if to the Trustee:

 

Deutsche Bank Trust Company Americas
 Trust & Agency Services
 60 Wall Street, 24th Floor
 Mailstop NYC60-2407
 New York, New York 10005
 Attention: Corporates Team — Suzano — 2019
 Facsimile:                                         +1-732-578-4635

 

With a copy to:

 

Deutsche Bank Trust Company Americas c/o Deutsche Bank National Trust Company Trust & Agency Services
 100 Plaza One, Mailstop JCY03-0801
 Jersey City, New Jersey 07311
 Attention:                                         Corporates Team — Suzano — 2018
 Facsimile:                                         +1-732-578-4635

 

(b)                                 The Issuer, the Company, the Trustee or the Paying Agent by notice to the other may designate additional or different addresses for subsequent notices or communications provided that such address, fax number, department or officer shall be outside of Austria. The Trustee shall accept electronic transmissions; provided that (i) the Trustee shall not have any duty or obligation to verify or confirm that the Person sending instructions, directions, reports, notices or other communications or information by electronic transmission is, in fact, a Person authorized to give such instructions, directions, reports, notices or other communications or information on behalf of the party purporting to send such electronic transmission; and the Trustee shall not have any liability for any losses, liabilities, costs or expenses incurred or sustained by any party as a result of such reliance upon or compliance with such instructions, directions, reports, notices or other communications or information and (ii) each other party agrees to assume all risks arising out of the use of electronic methods to submit instructions, directions, reports, notices or other communications or information to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, notices, reports or other communications or information, and the risk of interception and misuse by third parties.

 

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(c)                                  As long as Securities in global form are outstanding, notices to be given to Holders shall be given to the Depositary, in accordance with its applicable policies as in effect from time to time. If the Issuer issues Securities in certificated form, notices to be given to Holders shall be sent by mail to the respective addresses of the Holders as they appear in the Trustee’s records.

 

(d)                                 A notice shall be deemed to have been given to a Holder upon the mailing by first class mail, postage prepaid, of such notice to such Holder at its registered addresses as recorded in the Security Register not later than the latest date, and not earlier than the earliest date, prescribed in the Securities for the giving of such notice. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

 

(e)                                  Failure to mail a notice or communication to a Securityholder or any defect in a notice or communication to a Securityholder shall not affect the sufficiency of such notice or communication with respect to other Securityholders.

 

(f)                                   For so long as any Securities are listed on the Luxembourg Stock Exchange and traded on the Euro MTF market and in accordance with the rules and regulations of the Luxembourg Stock Exchange, the Issuer shall publish all notices to Securityholders on the website of the Luxembourg Stock Exchange at www.bourse.lu. The Holders shall be presumed to have received such notices on the date the Issuer or the Company first publishes them. If the Issuer and the Company are unable to give notice as described in this Section 11.01(f) because the publication on the website of the Luxembourg Stock Exchange is suspended or it is otherwise impractical for the Issuer or the Company to publish the notice, then the Issuer or the Company, or the Trustee acting on instructions from the Issuer or the Company and at the Issuer’s and the Company’s expense, shall give the Holders notice in another form. That alternate form of notice shall be sufficient notice to the Holders.

 

(g)                                  Where this Indenture provides for notice, the notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and the waiver will be the equivalent of the notice.

 

Section 11.02                      Communication by Holders with Other Holders. Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with respect to their rights under this Indenture or the Securities. The Issuer, the Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 11.03                      Certificate and Opinion as to Conditions Precedent.

 

(a)                                 Upon any request or application by the Issuer or the Company to the Trustee to take or refrain from taking any action under this Indenture, the Issuer or the Company, as the case may be, shall furnish to the Trustee:

 

(i)                                     an Officer’s Certificate in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to taking the proposed action or to refraining from taking the proposed action have been complied with; and

 

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(ii)                                  an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

Section 11.04                      Statements Required in Certificate or Opinion.

 

(a)                            Each certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture shall include:

 

(i)                                     a statement that the individual making such certificate or opinion has read such covenant or condition;

 

(ii)                                  a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(iii)                               a statement that, in the opinion of such individual, such examination or investigation as is necessary has been made to enable such individual to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(iv)                              a statement as to whether or not, in the opinion of such individual, such covenant or condition has been complied with.

 

Section 11.05                      When Securities Disregarded. In determining whether the Holders of the required principal amount of Securities have concurred in any direction, waiver or consent, Securities owned by the Issuer, the Company or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Issuer or the Company shall be disregarded and deemed not to be outstanding, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which a Trust Officer of the Trustee has been informed in writing are so owned shall be so disregarded. Also, subject to the foregoing, only Securities outstanding at the time shall be considered in any such determination.

 

Section 11.06                      Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable rules for action by or a meeting of Securityholders. The Registrar and the Paying Agent may make reasonable rules for their functions.

 

Section 11.07                      Legal Holidays. If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a regular record date is a Legal Holiday, the record date shall not be affected.

 

Section 11.08                      Governing Law. THIS INDENTURE, THE COMPANY GUARANTEE AND THE SECURITIES SHALL BE CONSTRUED IN ACCORDANCE WITH, AND THIS INDENTURE, THE COMPANY GUARANTEE AND THE SECURITIES AND ALL MATTERS ARISING OUT OF OR RELATING IN ANY WAY WHATSOEVER TO THIS INDENTURE, THE COMPANY GUARANTEE AND THE SECURITIES (WHETHER IN CONTRACT, TORT OR OTHERWISE) SHALL BE GOVERNED BY 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.

 

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Section 11.09                      No Recourse Against Others. No past, present or future director, officer, employee, incorporator, member or stockholder of the Issuer or the Company, as such, shall have any liability for any obligations of the Issuer or the Company under the Securities, this Indenture or the Company Guarantee or for any claim based on, in respect of, or by reason of, such obligations. By accepting a Security, each Securityholder shall waive and release all such liability. Such waivers and releases shall be part of the consideration for the issuance of the Securities.

 

Section 11.10                      Successors. All agreements of the Issuer and the Company in this Indenture and the Securities shall bind their successors. All agreements of the Trustee in this Indenture shall bind their successors.

 

Section 11.11                      Multiple Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this Indenture.

 

Section 11.12                      Table of Contents; Headings. The table of contents and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof.

 

Section 11.13                      Consent to Jurisdiction; Appointment of Agent to Accept Service of Process.

 

(a)                                 Each of the parties hereto irrevocably consents and agrees that any legal action, suit or proceeding against it with respect to its obligations, liabilities or any other matter arising out of or in connection with this Indenture, the Company Guarantee or the Securities may be brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York and, until amounts due and to become due in respect of the Securities have been paid, hereby irrevocably consents and submits to the exclusive jurisdiction of each such court in personam, generally and unconditionally with respect to any action, suit or proceeding for itself and in respect of its properties, assets and revenues. Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with this Indenture the Company Guarantee, or the Securities brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum and any right which it may be entitled on account of place of residence or domicile. To the extent that the Issuer or the Company has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process with respect to itself or its property, each of the Issuer and the Company irrevocably waive such immunity in respect of its obligations under this Indenture, any Security or the Company Guarantee. Each of the parties to this Indenture agrees that final judgment in any such suit, action or proceeding brought in such a court shall be conclusive and

 

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binding on them and may be enforced in any court to the jurisdiction of which each of them is subject by a suit upon such judgment; provided that service of process is effected upon the Issuer in the manner specified in the following paragraph or as otherwise permitted by law.

 

(b)                                 The Issuer and the Company have validly and effectively appointed Corporation Service Company (the “Process Agent”), with offices on the date hereof at 1180 Avenue of the Americas, Suite 210, New York, NY 10036, United States, as its authorized agent upon which process may be served in any action, suit or proceeding referred to in this Section 11.13. If for any reason such agent hereunder shall cease to be available to act as such, each of the Issuer and the Company agrees to designate a new agent in the Borough of Manhattan, New York City, New York on the terms and for the purposes of this Section 11.13 reasonably satisfactory to the Trustee. Each of the Issuer and the Company further hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents in any such action, suit or proceeding against the Issuer or the Company by serving a copy thereof upon the relevant agent for service of process referred to in this Section 11.13 (whether or not the appointment of such agent shall for any reason prove to be ineffective or such agent shall accept or acknowledge such service) or by mailing copies thereof by registered or certified air mail, postage prepaid, to each of the Issuer and the Company at its address specified in or designated pursuant to this Indenture. Each of the Issuer and the Company agrees that the failure of any such designee, appointee and agent to give any notice of such service to it shall not impair or affect in any way the validity of such service or any judgment rendered in any action or proceeding based thereon. Nothing herein shall in any way be deemed to limit the ability of the Holders and the Trustee to serve any such legal process, summons, notices and documents in any other manner permitted by applicable law.

 

U.S. dollars are the sole currency of account and payment for all sums due and payable by the Issuer and the Company under this Indenture, the Securities and the Company Guarantee. If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum due hereunder in U.S. dollars into another currency, the Issuer and the Company agree, to the fullest extent that they may legally and effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Trustee determines a Person could purchase U.S. dollars with such other currency in New York, New York, on the Business Day immediately preceding the day on which final judgment is given.

 

The obligation of each of the Issuer and the Company in respect of any sum due to any Securityholder or the Trustee in U.S. dollars shall, to the extent permitted by applicable law, notwithstanding any judgment in a currency other than U.S. dollars, be discharged only to the extent that on the Business Day following receipt of any sum adjudged to be so due in the judgment currency such Securityholder or Trustee may in accordance with normal banking procedures purchase U.S. dollars in the amount originally due to such Person with the judgment currency. If the amount of U.S. dollars so purchased is less than the sum originally due to such Person, each of the Issuer and the Company agrees, jointly and severally, as a separate obligation and notwithstanding any such judgment, to indemnify such Person against the resulting loss; and if the amount of U.S. dollars so purchased is greater than the sum originally due to such Person, such Person shall, by accepting a Security, be deemed to have agreed to repay such excess.

 

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(c)                                  The provisions of this Section 11.13 shall survive any termination of this Indenture, in whole or in part.

 

Section 11.14                      Waiver of Jury Trial. EACH OF THE ISSUER, THE COMPANY, THE TRUSTEE AND ANY HOLDER BY ITS ACCEPTANCE OF THE SECURITIES HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE COMPANY GUARANTEE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 11.15                      USA PATRIOT Act. In order to comply with the laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including, without limitation, those relating to the funding of terrorist activities and money laundering, including Section 326 of the USA PATRIOT Act of the United States (“Applicable Law”), the Trustee is required to obtain, verify, record and update certain information relating to individuals and entities which maintain a business relationship with the Trustee. Accordingly, each of the parties agree to provide to the Trustee, upon its request from time to time such identifying information and documentation as may be available for such party in order to enable the Trustee to comply with Applicable Law.

 

Section 11.16                      Force Majeure. The Trustee, the Paying Agent and their respective agents shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of the Trustee, the Paying Agent and their respective agents (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, civil unrest, local or national disturbance or disaster, any act of terrorism, or the unavailability of the Federal Reserve Bank wire or facsimile or other wire or communication facility).

 

[Signature Pages Follow]

 

62

 

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

 

	
 
    	
Suzano Austria GmbH
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Name:   Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Carlos Anibal Almeida
    
	
 
    	
 
    	
Name:   Carlos Anibal Almeida
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
Suzano S.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Name:   Marcelo Feriozzi Bacci
    
	
 
    	
 
    	
Title:   Chief Financial and Investor Relations Officer
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Carlos Anibal Almeida
    
	
 
    	
 
    	
Name:   Carlos Anibal Almeida
    
	
 
    	
 
    	
Title:   Executive Officer
    

 

[Signature Page to the Indenture]

 

 

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

 

 

	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS,   as Trustee, Registrar, Paying Agent and Transfer Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
Deutsche   Bank National Trust Company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bridgette Casasnovas
    
	
 
    	
 
    	
Name:   Bridgette Casasnovas
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Annie Jaghatspanyan
    
	
 
    	
 
    	
Name:   Annie Jaghatspanyan
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to the Indenture]

 

 

RULE 144A/REGULATION S APPENDIX

 

PROVISIONS RELATING TO INITIAL SECURITIES

 

1.                                      Definitions.

 

For the purposes of this Appendix the following terms shall have the meanings indicated below. Other terms used in this Appendix and not defined herein shall have the meanings assigned to them in the Indenture.

 

“Clearstream” means Clearstream Banking, société anonyme, Luxembourg.

 

“DTC” means the Depository Trust Company.

 

“Euroclear” means Euroclear Bank, S.A./N.V.

 

“Global Securities” means Regulation S Global Security, together with Restricted Global Security.

 

“Issuer Order” means a written request or order signed in the name of the Issuer or the Company by two Officers of Issuer or the Company, as applicable, and delivered to the Trustee.

 

“Non-U.S. Person” has meaning given to it in Regulation S.

 

“QIB” means a “qualified institutional buyer” as defined in Rule 144A under the Securities Act.

 

“Regulation S Global Security” means a single, permanent Restricted Global Security in definitive, fully registered book-entry form sold outside of the United States in reliance on Regulation S.

 

“Restricted Global Security” means a single, permanent Global Security in definitive, fully registered form without interest coupon, constituting a Restricted Security.

 

“Restricted Securities Legend” has the meaning set forth in Section 2.1(6) of this Appendix.

 

“Restricted Security” means a Security that constitutes a “restricted security” within the meaning of Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be entitled to request and conclusively rely on an Opinion of Counsel with respect to whether any Security constitutes a Restricted Security.

 

“Securities Custodian” means the custodian with respect to a Global Security (as appointed by DTC), or any successor Person thereto and shall initially be Deutsche Bank Trust Company Americas.

 

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2.                                      The Securities.

 

2.1                               Form and Registration.

 

(1)                                 Form and Registration. The certificates representing the Securities shall be issued in fully registered form without interest coupons.

 

(2)                                 Regulation S Global Security. Securities offered and sold in reliance on Regulation S under the Securities Act shall initially be represented by one or more Regulation S Global Securities, which shall be deposited with the Trustee as custodian for, and registered in the name of a nominee of, DTC for the accounts of Euroclear and Clearstream (as indirect participants in DTC).

 

(3)                                 Restricted Global Security. Securities sold in reliance on Rule 144A under the Securities Act shall be represented by one or more Restricted Global Securities and shall be deposited with the Trustee as custodian for, and registered in the name of a nominee of, DTC. Each Global Security shall be subject to certain restrictions on transfer, set forth in Section 2.3 and Section 2.4 of this Appendix.

 

(4)                                 Ownership. Ownership of beneficial interests in a Global Security shall be limited to persons who have accounts with DTC or Euroclear and Clearstream, as indirect participants in DTC (“participants”), or persons who hold interests through participants. Ownership of beneficial interests in a Global Security shall be shown on, and the transfer of that ownership shall be effected only through, records maintained by DTC or its nominee (with respect to interests of participants) and the records of participants (with respect to interests of persons other than participants). QIBs may hold their interests in a Restricted Global Security, directly through DTC, if they are participants in such system, or indirectly through organizations which are participants in such system.

 

(a)                                 Investors may hold their interests in a Regulation S Global Security, directly through Euroclear or Clearstream, if they are participants in such systems, or indirectly through organizations that are participants in such systems.

 

(b)                                 So long as DTC or its nominee is the registered owner or holder of a Global Security, DTC or such nominee, as the case may be, shall be considered the sole owner or Holder of the Securities represented by such Global Security for all purposes under the Indenture. No beneficial owner of an interest in a Global Security shall be able to transfer that interest except in accordance with DTC’s applicable procedures, in addition to those provided for under the Indenture. Payments made with respect to a Global Security shall be made to DTC or its nominee, as the registered owner thereof. None of the Issuer, the Company, the Trustee or any Paying Agent shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

 

(c)                                  The Issuer and the Company expect that DTC or its nominee, upon receipt of any payment in respect of a Global Security, shall credit participants’ accounts with payments in amounts proportionate to their respective beneficial interests in such Global Security as shown on its records. The Issuer and the Company also expect that payments by participants to

 

A-2

 

owners of beneficial interests in such Global Security held through such participants shall be governed by standing instructions and customary practices, as is now the case with securities held for the accounts of customers registered in the names of nominees for such customers. Such payments shall be the responsibility of such participants.

 

(5)                                 Limitation on Obligations. Although DTC, Euroclear and Clearstream are expected to follow the procedures set forth in the Indenture in order to facilitate transfers of interests in a Global Security among participants of DTC, Euroclear and Clearstream, as the case may be, they are under no obligation to perform or continue to perform such procedures, and such procedures may be discontinued at any time. None of the Issuer, the Company, the Trustee or any Paying Agent shall have any responsibility for the performance by DTC, Euroclear or Clearstream or their respective participants or indirect participants of their respective obligations under the rules and procedures governing their operations.

 

(6)                                 Successors; Definitive Securities. If (i) DTC is at any time unwilling or unable to continue as a Depositary for the Global Securities and a successor Depositary or clearing agency is not appointed by the Issuer within 90 days, or (ii) an Event of Default has occurred and is continuing and the Registrar and the Issuer have received a written request from a beneficial owner of Securities to issue its proportionate interest in the Global Security, the Issuer shall issue certificated Securities which may bear the Restricted Securities Legend set forth in Exhibit 1 to this Appendix (the “Restricted Securities Legend”) to all beneficial owners, in exchange for their beneficial interests in Global Securities. Holders of an interest in a Global Security may receive certificated Securities, which may bear the Restricted Securities Legend, in accordance with DTC’s rules and procedures in addition to those provided for under the Indenture; provided, however, that if the Issuer is issuing certificated Securities pursuant to this Section 2.1(6)(ii), the Issuer shall only be required to issue certificated Securities to the beneficial owners of the Securities who request certificated Securities.

 

(7)                                 Certificated Securities. Except as provided in this Section 2.1 or Section 2.3, owners of beneficial interests in Restricted Global Securities shall not be entitled to receive physical delivery of certificated Securities. The registered Holder of a Global Security shall be entitled to grant proxies and otherwise authorize any Person, including DTC and Persons that may hold interests through DTC, to take any action which a Holder is entitled to take under the Indenture or the Securities. In the event of transfer of a Restricted Global Security to the beneficial owners thereof in the form of certificated Securities, the Issuer shall promptly make available to the Trustee a reasonable supply of certificated Securities in definitive, fully registered form without interest coupons.

 

2.2                               Authentication. The Trustee shall authenticate and deliver: (1) on the Issue Date, an aggregate principal amount of U.S.$1,000,000,000 of the Issuer’s 5.000% Senior Notes due January 15, 2030, and (2) any Additional Securities for an original issue in an aggregate principal amount specified in the Issuer Order and an Opinion of Counsel of the Issuer pursuant to Section 2.02 of the Indenture. Such order shall specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated.

 

A-3

 

2.3                               Global Securities.

 

(1)                                 Any Global Security (i) shall represent, and shall be denominated in an aggregate amount equal to the aggregate principal amount of, all of the Outstanding Securities, (ii) shall be registered in the name of DTC or its nominee, (iii) shall be delivered to the Trustee or the Registrar as custodian for DTC and (iv) shall bear a legend substantially to the following effect:

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEFINITIVE SECURITY 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.

 

(2)                                 Members of, or participants in, DTC, Euroclear or Clearstream shall have no rights under the Indenture with respect to any Global Security held on their behalf by DTC or the Trustee as its custodian, or under the Global Security, and DTC may be treated by the Issuer, the Trustee and any agent of the Issuer or the Trustee as the absolute owner of the Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and its participants, the operation of customary practices governing the exercise of the rights of a Holder of any Security.

 

(3)                                 Interests of beneficial owners in the Global Securities may only be transferred or exchanged for certificated Securities in accordance with the rules and procedures of DTC, Euroclear and Clearstream and the provisions of the Indenture, including this Appendix.

 

(4)                                 In connection with any transfer or exchange of a portion of the beneficial interest in any Global Security to beneficial owners pursuant to Section 2.3(3) of this Appendix in

 

A-4

 

the form of certificated Securities, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of the Global Security in an amount equal to the principal amount of the beneficial interest in the Global Security to be transferred, and the Issuer shall execute, and the Trustee shall authenticate and deliver, one or more definitive Securities of like tenor and principal amount of authorized denominations.

 

(5)                                 Any beneficial interest in one of the Global Securities that is transferred to a person who takes delivery in the form of an interest in the other corresponding Global Security will, upon transfer, cease to be an interest in such Global Security and become an interest in the other corresponding Global Security and, accordingly, will thereafter be subject to all transfer restrictions, if any, and other procedures applicable to beneficial interest in such other corresponding Global Security for as long as it remains such an interest.

 

(6)                                 In connection with the transfer of Global Securities as an entirety to beneficial owners pursuant to Section 2.3(3) of this Appendix in the form of certificated Securities, the Global Securities shall be deemed to be surrendered to the Trustee for cancellation, and the Issuer shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by DTC, Euroclear or Clearstream in exchange for its beneficial interest in the Global Securities, an equal aggregate principal amount at maturity of definitive Securities of authorized denominations.

 

(7)                                 Any definitive Security constituting a Restricted Security delivered in exchange for an interest in a Global Security pursuant to this Section 2.3 shall bear the Restricted Securities Legend.

 

(8)                                 The registered Holder of any Global Security may grant proxies and otherwise authorize any person, including participants in DTC and persons that may hold interests through participants in DTC to take any action which a Holder is entitled to take under the Indenture or the Securities.

 

2.4                               Special Transfer Provisions. The following provisions shall apply with respect to the Securities:

 

(1)                                 Transfers to Non-U.S. Persons. The following provisions shall apply with respect to the registration of any proposed transfer of an Initial Security or an Additional Security to any Non-U.S. Person:

 

(a)                                 the Registrar shall register the transfer of any Initial Security or any Additional Security, whether or not such Security bears the Restricted Securities Legend, if the proposed transferor has delivered to the Registrar a certificate substantially in the form of Exhibit 2 to this Appendix;

 

(b)                                 if the proposed transferee is a participant in DTC and the Securities to be transferred consist of definitive Securities which after transfer are to be evidenced by an interest in a Regulation S Global Security upon receipt by the Registrar of (i) written instructions given in accordance with DTC’s and the Registrar’s procedures and (ii) the certificate required by Section 2.4(1)(a) of this Appendix, the Registrar shall register the transfer and reflect on its books and records the date and an increase in the principal amount of the Regulation S Global Security

 

A-5

 

in an amount equal to the principal amount of definitive Securities to be transferred, and the Trustee and/or the Registrar shall cancel the definitive Securities so transferred or decrease the principal amount of such definitive Security, as the case may be;

 

(c)                                  if the proposed transferor is a participant in DTC seeking to transfer an interest in a Global Security, upon receipt by the Registrar of (i) written instructions given in accordance with DTC’s and the Registrar’s procedures and (ii) the certificate required by Section 2.4(1)(a) of this Appendix, the Registrar shall register the transfer and reflect on its books and records the date and (i) a decrease in the principal amount of the Global Security from which such interests are to be transferred in an amount equal to the principal amount of the Securities to be transferred and (ii) an increase in the principal amount of the Regulation S Global Security in an amount equal to the principal amount of the Global Security to be transferred.

 

(2)                                 Transfers to QIBs. The following provisions shall apply with respect to the registration of any proposed transfer of an Initial Security or an Additional Security to a QIB (excluding Non-U.S. Persons):

 

(a)                                 if the Security to be transferred consists of (i) a definitive Security, the Registrar shall register the transfer if such transfer is being made by a proposed transferor who has delivered to the Trustee a certificate substantially in the form set forth in Exhibit 3 to this Appendix or (ii) an interest in the Restricted Global Security, the transfer of such interest may be effected only through the book entry system maintained by DTC;

 

(b)                                 if the Security to be transferred consists of a definitive Security, upon receipt by the Registrar of instructions given in accordance with DTC’s and the Registrar’s procedures therefor, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the Restricted Global Security in an amount equal to the principal amount of the definitive Security, to be transferred, and the Trustee shall cancel the definitive Security so transferred; and

 

(c)                                  if the proposed transferor is a participant in DTC seeking to transfer an interest in a Global Security, upon receipt by the Registrar of written instructions given in accordance with DTC’s and the Registrar’s procedures, the Registrar shall register the transfer and reflect on its books and records the date and (i) a decrease in the principal amount of the Global Security from which interests are to be transferred in an amount equal to the principal amount of the Securities to be transferred and (ii) an increase in the principal amount of the Restricted Global Security in an amount equal to the principal amount of the Global Security to be transferred.

 

(3)                                 Restricted Securities Legend. Upon the registration of transfer, exchange or replacement of Securities not bearing the Restricted Securities Legend, the Registrar shall deliver Securities that do not bear the Restricted Securities Legend. Upon the registration of transfer, exchange or replacement of Securities bearing the Restricted Securities Legend, the Registrar shall deliver only Securities that bear the Restricted Securities Legend unless either (i) there is delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Issuer, the Registrar and the Trustee to the effect that neither such legend nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities Act or

 

A-6

 

(ii) such Security has been sold pursuant to an effective registration statement under the Securities Act.

 

(4)                                 Other Transfers. If a Holder proposes to transfer a Security constituting a Restricted Security pursuant to any exemption from the registration requirements of the Securities Act other than as provided for by Sections 2.4(1) or 2.4(2) of this Appendix, the Registrar shall only register such transfer or exchange if such transferor delivers an Opinion of Counsel reasonably satisfactory to the Issuer, the Registrar and the Trustee that such transfer is in compliance with the Securities Act and the terms of the Indenture; provided, however, that the Issuer may, based upon the opinion of its counsel, instruct the Registrar by an Issuer Order not to register such transfer in any case where the proposed transferee is not a QIB or a Non-U.S. Person.

 

(5)                                 General. By its acceptance of any Security (or any beneficial interest in any Global Security) bearing the Restricted Securities Legend, each Holder of such a Security or holder of such beneficial interest acknowledges the restrictions on transfer of such Security set forth in the Indenture and in the Restricted Securities Legend and agrees that it will transfer such Security only as provided in the Indenture. The Registrar shall not register a transfer of any Security unless such transfer complies with the restrictions on transfer of such Security set forth in the Indenture.

 

The Registrar shall retain copies of all letters, notices and other written communications received pursuant to this Section 2.4. The Issuer shall have the right at its own expense to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable prior written notice to the Registrar.

 

2.5                               Cancellation or Adjustment of Global Security. At such time as all beneficial interests in a Global Security have either been exchanged for certificated Securities, redeemed, purchased or canceled, such Global Security shall be returned to DTC for cancellation or retained and canceled by the Trustee. At any time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for certificated Securities, redeemed, purchased or canceled, the principal amount of Securities represented by such Global Security shall be reduced and an adjustment shall be made on the books and records of the Trustee (if it is then the Securities Custodian for such Global Security) with respect to such Global Security, by the Trustee or the Securities Custodian, to reflect such reduction.

 

A-7

 

EXHIBIT 1
 to
 RULE 144A/REGULATION S APPENDIX

 

[FORM OF FACE OF INITIAL SECURITY] [Global Securities Legend]

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEFINITIVE SECURITY 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.

 

[Regulation S Securities Legend]

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR OTHER SECURITIES LAWS PRIOR TO EXPIRATION OF THE 40 DAY DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN REGULATION S (“REGULATION S”) UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)), THIS SECURITY MAY NOT BE REOFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES (AS DEFINED IN REGULATION S) OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON (AS DEFINED IN REGULATION S), EXCEPT TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF THE INDENTURE REFERRED TO HEREIN.

 

[Restricted Securities Legend]

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE OR OTHER

 

Exh-1-1

 

JURISDICTION OF THE UNITED STATES OR OTHER SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER OR HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH IT IS ACTING, IS (A) A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) OR (B) NOT A U.S. PERSON, AS SUCH TERM IS DEFINED IN RULE 902 UNDER THE SECURITIES ACT, AND IS PURCHASING THIS SECURITY IN AN “OFFSHORE TRANSACTION” PURSUANT TO RULE 903 OR 904 OF REGULATION S AND, WITH RESPECT TO (A) AND (B), EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND (2) AGREES FOR THE BENEFIT OF SUZANO AUSTRIA GMBH AND THE GUARANTOR THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN EXCEPT (I) TO SUZANO AUSTRIA GMBH OR THE GUARANTOR OR ANY SUBSIDIARY THEREOF, OR (II) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, OR (III) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR (IV) IN AN OFFSHORE TRANSACTION COMPLYING WITH THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (V) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AND IN EACH SUCH CASES IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS, AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “US PERSON” HAVE THE RESPECTIVE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH PARAGRAPH 2(IV) ABOVE, SUZANO AUSTRIA GMBH, THE GUARANTOR AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

Exh-1-2

 

No.           U.S.$            up to U.S.$1,000,000,000

 

5.000% Senior Notes due January 15, 2030

 

CUSIP No. 86964W AG7 (144A)/ A8372T AK4 (Reg. S)

 

ISIN No. US86964WAG78 (144A)/ USA8372TAK46 (Reg. S)

 

Suzano Austria GmbH, a limited liability company incorporated under the laws of the Republic of Austria, promises to pay to         , or its registered assigns, the principal sum [of           dollars][listed on the Schedule of Increases or Decreases in the Global Note attached hereto]* on January 15, 2030.

 

Interest Payment Dates: January 15 and July 15, commencing on January 15, 2020

 

Record Dates: January 13 and July 13

 

Additional provisions of this Security are set forth on the other side of this Security.

 

*                             If the Security is to be issued in global form, add the Schedule of Increases or Decreases in Global Security.

 

Exh-1-3

 

IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed.

 

	
 
    	
SUZANO AUSTRIA GMBH
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Dated: May 29, 2019

 

Exh-1-4

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

Deutsche Bank Trust Company Americas

 

	
as   Trustee, certifies that this is one of the Securities referred to in the   Indenture.
    	
 
    

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    

 

Dated: May 29, 2019

 

Exh-1-5

 

[FORM OF REVERSE SIDE OF INITIAL SECURITY]

 

5.000% Senior Note due January 15, 2030

 

1.                                      Interest.

 

Suzano Austria GmbH, a limited liability company incorporated under the laws of the Republic of Austria (such company, and its successors and assigns under the Indenture hereinafter referred to as the “Issuer”), promises to pay interest on the principal amount of this Security at the rate per annum shown above.

 

The Issuer will pay interest semi-annually on January 15 and July 15 of each year, commencing on January 15, 2020 to the Paying Agent, which shall in turn distribute the interest in accordance with the Indenture. The Securities shall bear interest at the rate per annum of 5.000% from May 29, 2019, the date of issuance, or from the most recent interest payment date to which interest has been paid or provided for. Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months. The Issuer shall pay interest on overdue principal, and pay interest on overdue interest, at the lesser of (i) 2.0% per annum higher than the per annum rate set forth in this Security and (ii) the maximum rate permitted by applicable law.

 

2.                                      Method of Payment.

 

The Issuer will pay interest on the Securities (except defaulted interest) to the Persons who are registered Holders at the close of business on January 13 or July 13 next preceding the interest payment date even if Securities are canceled after the record date and on or before the interest payment date. Holders must surrender Securities to a Paying Agent to collect principal payments. The Issuer will pay principal, premium, interest and Additional Amounts, if any, in money of the United States that at the time of payment is legal tender for payment of public and private debts. Payments in respect of the Securities represented by a Global Security (including principal, premium, interest and Additional Amounts, if any) will be made by wire transfer of immediately available funds to the accounts specified by DTC. The Issuer will make all payments in respect of a certificated Security (including principal, premium, interest and Additional Amounts, if any) at the office or agency of the Paying Agent or the Trustee, unless the Issuer elects to make such payments by mailing a check to the registered address of, or by wire transfer to, each Holder thereof; provided, however, that payments on a certificated Security will be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States for Holders of more than U.S.$10,000,000 of Securities, if such Holder elects payment by wire transfer by giving written notice to the Trustee or the applicable Paying Agent to such effect designating such account no later than 30 days immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its discretion).

 

The final payment on any Security in definitive, fully registered form shall be made only upon presentation and surrender of such Security at the office of the Paying Agent on the payment date.

 

If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a regular record date is a Legal Holiday, the record date shall not be affected.

 

Exh-1-6

 

3.                                      Registrar and Paying Agent.

 

Initially, Deutsche Bank Trust Company Americas will act as Registrar and Paying Agent. The Issuer may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Issuer, the Company or any Subsidiary may act as Paying Agent, Registrar, co-registrar or transfer agent.

 

4.                                      Indenture.

 

The Issuer issued the Securities under an Indenture dated as of May 29, 2019 (the “Indenture”), among the Issuer, Suzano S.A., as the guarantor (the “Company”), and Deutsche Bank Trust Company Americas, as the Trustee, Registrar, Paying Agent and Transfer Agent. The terms of the Securities include those stated in 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 such terms, and Securityholders are referred to the Indenture.

 

The Securities are general obligations of the Issuer. The Issuer shall be entitled to issue Additional Securities pursuant to Section 2.12 of the Indenture. The Initial Securities issued on the Issue Date, any Additional Securities and Securities issued in exchange therefor will be treated as a single class for all purposes under the Indenture. The Indenture contains covenants that limit the ability of the Company and its Subsidiaries to engage in transactions with Affiliates; create liens on assets; transfer or sell assets; guarantee indebtedness; consolidate, merge or transfer all or substantially all of its assets and the assets of its subsidiaries; and engage in sale/leaseback transactions. These covenants are subject to important exceptions and qualifications.

 

To the extent of any conflict between the terms of the Securities and the Indenture, the applicable terms of the Indenture shall govern.

 

5.                                      Optional Redemption.

 

(a)                                 Optional Redemption with a Make-Whole Premium. Prior to October 15, 2029, the Issuer may redeem the Securities, in whole at any time, or in part from time to time, at a redemption price equal to the greater of (1) 100.0% of the principal amount thereof, and (2) the sum of the present values, calculated as of the Redemption Date, of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date) as if the Securities were redeemed on the Par Call Date, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 45 basis points, plus in each case any accrued and unpaid interest and Additional Amounts, if any, on such Securities to the Redemption Date, as calculated by the Independent Investment Banker; provided that Securities in an aggregate principal amount equal to at least U.S.$150 million remain outstanding immediately after the occurrence of any partial redemption of Securities. At any time on or after the Par Call Date, the Issuer will have the right to redeem the Securities, in whole or in part and from time to time, at a redemption price equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest on the principal amount of the Securities being redeemed to such Redemption Date.

 

Exh-1-7

 

For purposes of the above:

 

“Par Call Date” means the date falling six months prior to the Maturity Date of the Securities.

 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming 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.

 

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker as having an actual or interpolated maturity that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the Par Call Date.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Issuer.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotation, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Reference Treasury Dealers” means BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Rabo Securities USA, Inc. and Scotia Capital (USA) Inc. or their respective Affiliates which are primary United States government securities dealers and not less than two other leading primary United States government securities dealers in New York City reasonably designated by the Issuer; provided that if any of the foregoing cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer will substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotation” 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 price for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 pm New York time on the third Business Day preceding such Redemption Date.

 

(b)                                 Redemption for Taxation Reasons. If as a result of any change in or amendment to the laws or treaties (or any rules or regulations thereunder) of any Relevant Taxing Jurisdiction, or any amendment to or change in an official interpretation, administration or application of such laws, treaties, rules or regulations (including a holding by a court of competent jurisdiction), which change or amendment or change in official position becomes effective on or after the issue date of the Securities or on or, with respect to a successor, after the date a successor assumes the obligations under the Securities, the Issuer or the Company or the successor have or will become

 

Exh-1-8

 

obligated to pay Additional Amounts as described under Section 4.13 of the Indenture in excess of the Additional Amounts that the Issuer or the Company would be obligated to pay if payments were subject to withholding or deduction at a rate of 15.0% (or at a rate of 25.0% in case the holder of the Securities is resident in a tax haven jurisdiction, i.e., countries which do not impose any income tax or which impose it at a maximum rate lower than 20.0%, or where the laws impose restrictions on the disclosure of ownership composition or securities ownership) as a result of the taxes, duties, assessments and other governmental charges described above (the “Minimum Withholding Level”), the Issuer may, at its option, redeem all, but not less than all, of the Securities, at a redemption price equal to 100.0% of their principal amount, together with interest and Additional Amounts accrued to the date fixed for redemption, upon publication of irrevocable notice not less than 30 days nor more than 90 days prior to the date fixed for redemption. No notice of such redemption may be given earlier than 90 days prior to the earliest date on which the Issuer would, but for such redemption, be obligated to pay the Additional Amounts above the Minimum Withholding Level, were a payment then due. The Issuer shall not have the right to so redeem the Securities in the event it becomes obliged to pay Additional Amounts which are less than the Additional Amounts payable at the Minimum Withholding Level. Notwithstanding the foregoing, the Issuer shall not have the right to so redeem the Securities unless: (i) it has taken measures it considers reasonable to avoid the obligation to pay Additional Amounts; and (ii) it has complied with all applicable regulations to legally effect such redemption; provided, however, that for this purpose reasonable measures shall not include any change in the Issuer’s, the Company’s or any successor’s jurisdiction of incorporation or organization or location of its principal executive or registered office.

 

In the event that the Issuer elects to so redeem the Securities, it shall deliver to the Trustee: (i) a certificate, signed in the name of the Issuer by two of its directors or by its attorney-in-fact in accordance with its articles of association, stating that the Issuer is entitled to redeem the Securities pursuant to their terms and setting forth a statement of facts showing that the condition or conditions precedent to the right of the Issuer to so redeem have occurred or been satisfied; and (ii) an Opinion of Counsel (as provided for in this Indenture) to the effect that the Issuer has or will become obligated to pay Additional Amounts in excess of the Additional Amounts payable at the Minimum Withholding Level as a result of the change or amendment, and that all governmental approvals necessary for the Issuer to effect the redemption have been obtained and are in full force and effect.

 

6.                                      Redemption Procedures.

 

The Issuer shall give or cause the Trustee to give notice of redemption, in the manner provided for in Section 11.01 of the Indenture, not less than 30 nor more than 60 days prior to a date for redemption of Securities by first-class mail, postage prepaid, to each Securityholder at its registered address or otherwise in accordance with the procedures of DTC. If the Issuer itself gives the notice, it shall also deliver a copy at the same time to the Trustee.

 

If the Issuer elects to have the Trustee give notice of redemption the Issuer shall deliver to the Trustee, at least 45 days prior to the Redemption Date (unless the Trustee is satisfied with a shorter period), an Officer’s Certificate requesting that the Trustee select the Securities to be redeemed and/or give notice of redemption and setting forth the information required by Section 3.02(c) of the Indenture. If the Issuer elects to have the Trustee give notice of redemption,

 

Exh-1-9

 

the Trustee shall give the notice in the name of the Issuer and at the Issuer’s expense. Securities will be selected for partial redemptions in accordance with DTC procedures.

 

If the Issuer, or the Trustee on behalf of the Issuer, gives notice of redemption in accordance with Article III of the Indenture, the Securities shall, on the Redemption Date, become due and payable at the redemption price specified in the notice (together with accrued interest, if any, to, but excluding, the Redemption Date), and from and after the Redemption Date (unless the Issuer shall default in the payment of the redemption price and accrued interest) the Securities shall cease to bear interest. Upon surrender of the Securities for redemption in accordance with the notice, the Issuer shall pay the Securities at the redemption price, together with accrued interest, if any, to, but excluding, the Redemption Date. If the Issuer shall fail to pay any Security called for redemption upon its surrender for redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate borne by the Securities.

 

7.                                      Put Provisions.

 

Upon a Change of Control that results in a Rating Decline, any Holder will have the right to cause the Issuer and the Company to repurchase all or any part (equal to U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof) of the Securities of such Holder at a repurchase price equal to 101.0% of the aggregate principal amount of the Securities to be repurchased plus accrued and unpaid interest and Additional Amounts, if any, to the date of repurchase, as provided in, and subject to the terms of, the Indenture.

 

8.                                      Company Guarantee.

 

The payment by the Issuer of the principal of, and premium and interest on, the Securities will be fully and unconditionally guaranteed by the Company, to the extent set forth in the Indenture.

 

10.                               Denominations; Transfer; Exchange.

 

The Securities shall be issued in registered form in denominations of U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof and shall be issued as one or more Global Securities. A Holder may transfer or exchange Securities in accordance with the Indenture. The Securities may be transferred, combined or divided without payment of any charge other than taxes or other governmental charges. The Registrar may require a Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any Securities selected for redemption or any Securities for a period of 15 days before a selection of Securities to be redeemed or 15 days before an Interest Payment Date.

 

11.                               Persons Deemed Owners.

 

The registered Holder of this Security may be treated as the owner of it for all purposes. Payment shall be made to the person in whose name a Security is registered at the close of business on the applicable record date.

 

Exh-1-10

 

12.                               Unclaimed Money.

 

If money for the payment of principal, premium, interest or Additional Amounts, if any, remains unclaimed for two years, the Trustee or the relevant Paying Agent shall pay the money back to the Issuer at its request. After any such payment, Holders entitled to the money must look only to the Issuer and not to the Trustee or the Paying Agent for payment.

 

13.                               Discharge; Defeasance.

 

Subject to certain conditions set forth in Article VIII of the Indenture, the Issuer shall be entitled to terminate some or all of its obligations under the Securities and the Indenture if the Issuer deposits with the Trustee cash or U.S. Government Obligations for the payment of principal and interest on the Securities upon redemption or maturity, as the case may be.

 

14.                               Amendment; Waiver.

 

Subject to certain exceptions set forth in the Indenture, (a) the Indenture and the Securities may be amended without notice to any Holder or with the written consent of the Holders of at least a majority in aggregate principal amount of the Outstanding Securities and (b) any default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in aggregate principal amount of the Outstanding Securities.

 

Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Issuer, the Company and the Trustee shall be entitled to amend or supplement the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency; or to correct a manifest error or to comply with Section 5.01 of the Indenture; or to provide for uncertificated Securities in addition to or in place of certificated Securities; or to provide for any Guarantee with respect to the Securities; or to secure the Securities or to confirm and evidence the release, termination or discharge of any Guarantee or Lien securing the Securities when such release, termination or discharge is permitted by the Indenture or make any change that does not adversely affect the rights of any Securityholder; or to conform the terms of the Indenture with the description thereof set forth in the “Description of the Notes” section of the Offering Memorandum; or to evidence and provide for the acceptance of appointment of a successor Trustee with respect to the Securities or to provide for or confirm the issuance of Additional Securities.

 

Subject to certain conditions set forth in the Indenture, the Issuer may, without consent of the Holders, be substituted by (i) the Company or (ii) any Wholly-Owned Subsidiary of the Company.

 

15.                               Defaults and Remedies.

 

Under the Indenture, Events of Default include (a) default for 30 days in payment of any interest or related Additional Amounts, if any, on the Securities; (b) default in payment of principal of or any related Additional Amounts, if any, or premium, if any, on the Securities, when the same becomes due and payable at maturity, upon acceleration or redemption, or otherwise; (c) failure by the Company to comply with Section 5.01; (d) failure by the Issuer or the Company, as the case may be, to comply with other agreements in the Indenture and such non-compliance continues for a period of 60 consecutive days after written notice is given to Issuer and/or the Company by the Trustee or to the Issuer, the Company and the Trustee by the Holders of at least 25.0% in aggregate principal amount of the Securities; (e) certain accelerations of other Debt of the Company; (f) certain events of bankruptcy or insolvency

 

Exh-1-11

 

with respect to the Issuer, the Company or any Subsidiary; (g) the Company Guarantee shall fail to be in full force and effect or is declared null and void; and (h) certain condemnation events affecting all or substantially all of the undertaking, assets and revenues of the Issuer, the Company or certain Subsidiaries for a period of 60 consecutive days or longer.

 

If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25.0% in principal amount of the Securities, by written notice to the Issuer and the Company (and to the Trustee if notice is given by the Holders), may declare all the Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default.

 

Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in payment of principal or interest) if it determines that withholding notice is in the interest of the Holders.

 

16.                               Trustee Dealings with the Issuer and the Company.

 

Subject to certain limitations imposed by the TIA, 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 Issuer, the Company or their Affiliates and may otherwise deal with the Issuer, the Company or their Affiliates with the same rights it would have if it were not Trustee.

 

17.                               No Recourse Against Others.

 

No past, present or future director, officer, employee, partner, incorporator, quotaholder, member or shareholder, as such, of the Issuer, the Company or any Subsidiary of the Company, shall have any liability for any obligations of the Issuer, the Company or any Subsidiary of the Company under the Securities, the Indenture or the Company Guarantee 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.

 

18.                               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.

 

Exh-1-12

 

19.                               Abbreviations.

 

Customary abbreviations may be used in the name of a Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors Act).

 

20.                               CUSIP Numbers and ISINs.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers or ISINs to be printed on the Securities and has directed the Trustee to use CUSIP numbers or ISINs 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.

 

21.                               Governing Law; Consent to Jurisdiction and Service of Process.

 

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.

 

Each of the Issuer and the Company has consented to the jurisdiction of the courts of the State of New York and the United States courts located in the Borough of Manhattan, New York City, New York with respect to any action that may be brought in connection with the Indenture or the Securities and has validly and effectively appointed Corporation Service Company as agent for service of process.

 

The Issuer will furnish to any Securityholder upon written request and without charge to the Securityholder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to:

 

Suzano S.A.
 Av. Brigadeiro Faria Lima, 1355 — 8th floor
 01452-911 São Paulo, SP
 Brazil
 Attention:                                         Marcelo Feriozzi Bacci and Julio Cesar Maciel Ramundo
 Facsimile:                                         +55-11-3503-9099

 

Exh-1-13

 

FORM OF NOTATION ON SECURITY RELATING TO GUARANTEE

 

For value received, the undersigned hereby unconditionally guarantees to the Securityholder of this Security, the cash payments in U.S. dollars of principal and interest on this Security (and including Additional Amounts payable thereon, if any) in the amounts and at the times when due, together with interest on the overdue principal and interest, if any, on this Security, if lawful, and the payment of all other obligations of the Issuer under the Indenture or the Securities, to the Securityholder of this Security and the Trustee, all in accordance with and subject to the terms and conditions of this Security and the Indenture. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture, dated as of May 29, 2019 among Suzano Austria GmbH, as the Issuer, Suzano S.A., as the guarantor (the “Company”) and Deutsche Bank Trust Company Americas, as the Trustee, Registrar, Paying Agent.

 

The obligations of the undersigned to the Securityholders and to the Trustee are expressly set forth in Article X of the Indenture. This Guarantee constitutes a direct, general and unconditional obligation of the undersigned which will at all times rank at least pari passu with all other present and future senior unsecured obligations of the undersigned, except for such obligations as may be preferred by mandatory provisions of law.

 

Exh-1-14

 

IN WITNESS WHEREOF, the Company has caused this endorsement with respect to the U.S.$1,000,000,000 5.000% Senior Notes due 2030 of Suzano Austria GmbH to be duly executed.

 

	
Dated: [                  ]
    	
 
    
	
 
    	
 
    
	
 
    	
SUZANO S.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exh-1-15

 

ASSIGNMENT FORM

 

To assign this Security, fill in the form below:

 

I or we assign and transfer this Security to

 

	
 
    
	
(Insert assignee’s soc.   sec. or tax I.D. no.)
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type   assignee’s name, address and zip code)
    
	
 
    
	
and irrevocably   appoint
    

 

agent to transfer this Security on the books of the Issuer. The agent may substitute another to act for him or her.

 

Your Signature:

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(Sign exactly as your name appears on the
   other side of this Security)
    

 

	
*Signature guaranteed by:
    
	
 
    
	
By:
    	
 
    	
 
    

 

*                             The signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

 

Exh-1-16

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The initial principal amount of this Global Security is U.S.$[              ]. The following increases or decreases in this Global Security have been made:

 

	
Date of
   Exchange
    	
 
    	
Amount of
   decrease in
   principal amount
   of this Global
   Security
    	
 
    	
Amount of
   increase in
   principal amount
   of this Global
   Security
    	
 
    	
Principal amount
   of this Global
   Security
   following such
   decrease or
   increase
    	
 
    	
Signature of
   authorized
   officer of
   Trustee or
   Securities
   Custodian
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Exh-1-17

 

[FORM OF] OPTION OF SECURITYHOLDER TO ELECT PURCHASE

 

If you elect to have this Security purchased by the Issuer pursuant to Section 4.04 of the Indenture, check the box below:

 

o  Section 4.04

 

If you elect to have only part of this Security purchased by the Issuer pursuant to Section 4.04 of the Indenture, state the amount (in minimum denominations of U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof) you elect to have purchased:

 

	
U.S.$
    	
 
    	
 
    	
 
    

 

	
Dated:
    	
Your   Name:
    	
 
    
	
 
    	
(Print your name exactly as it appears on the face of this Security)
    
	
 
    	
 
    
	
 
    	
Your   Signature:
    	
 
    
	
 
    	
(Sign exactly as your name appears on the face of this Security)
    
	
 
    	
 
    
	
 
    	
Signature   Guarantee:
    	
 
    
					

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

Exh-1-18

 

EXHIBIT 2 to
 RULE 144A/REGULATION S APPENDIX

 

FORM OF CERTIFICATE TO BE DELIVERED 
 IN CONNECTION WITH TRANSFERS 
 PURSUANT TO REGULATION S

 

[Date]

 

Suzano Austria GmbH
 c/o Suzano S.A.
 Av. Brigadeiro Faria Lima, 1355 — 8th floor
 01452-919 São Paulo, SP
 Brazil
 Attention: Marcelo Feriozzi Bacci and Julio Cesar Maciel Ramundo

 

Deutsche Bank Trust Company Americas
 Trust & Agency Services
 60 Wall Street, 24th Floor
 Mailstop NYC60-2407
 New York, New York 10005
 Attention: Corporates Team — Suzano - 2019

 

with a copy to:

 

DB Services Americas, Inc. 
 5022 Gate Parkway Suite 200 
 Jacksonville, FL 32256 USA 
 Attention: Transfer

 

Re:                             Suzano Austria GmbH (the “Issuer”) 
 5.000% Senior Notes due January 15, 2030 (the “Securities”)

 

Ladies and Gentlemen:

 

In connection with our proposed transfer of U.S.$                 aggregate principal amount of Securities, we confirm that such transfer has been effected pursuant to and in accordance with Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent that:

 

(1)                                 the offer of the Securities was not made to a person in the United States;

 

(2)                                 either (a) at the time the buy offer was originated, the transferee was outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States, or (b) the transaction was executed in, on or through the facilities of a designated off-shore securities market and neither we nor any person acting on our behalf knows that the transaction has been pre-arranged with a buyer in the United States;

 

Exh-2-1

 

(3)                                 no directed selling efforts have been made in the United States in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

 

(4)                                 the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act;

 

(5)                                 we have advised the transferee of the transfer restrictions applicable to the Securities;

 

(6)                                 if the circumstances set forth in Rule 903(b) or 904(b) under the Securities Act are applicable, we have complied with the additional conditions therein; and

 

(7)                                 if the sale is made during a restricted period, we confirm that such sale has been made in accordance with the specific requirements of Regulation S.

 

You and the Issuer are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set forth in Regulation S.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
[Name   of Transferor]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signature
    

 

Exh-2-2

 

EXHIBIT 3
 to
 RULE 144A/REGULATION S APPENDIX

 

FORM OF TRANSFER CERTIFICATE FOR 
 TRANSFER OF RESTRICTED GLOBAL SECURITY 
 BEARING A RESTRICTED SECURITIES LEGEND

 

[Date]

 

Suzano Austria GmbH
 c/o Suzano S.A.
 Av. Brigadeiro Faria Lima, 1355 — 8th floor
 01452-919 São Paulo, SP
 Brazil
 Attention: Marcelo Feriozzi Bacci and Julio Cesar Maciel Ramundo

 

Deutsche Bank Trust Company Americas
 Trust & Agency Services
 60 Wall Street, 24th Floor
 Mailstop NYC60-2407
 New York, New York 10005
 Attention: Corporates Team — Suzano - 2019

 

with a copy to:

 

DB Services Americas, Inc. 
 5022 Gate Parkway Suite 200 
 Jacksonville, FL 32256 USA 
 Attention: Transfer

 

Re:                             Suzano Austria GmbH (the “Issuer”)
 5.000% Senior Notes due January 15, 2030 (the “Securities”)

 

Ladies and Gentlemen:

 

Reference is hereby made to the Indenture dated as of May 29, 2019 in regard of the Securities among Suzano Austria GmbH, as the Issuer, Suzano S.A., as the guarantor, Deutsche Bank Trust Company Americas, as the Trustee, Registrar, Paying Agent and Transfer Agent. Capitalized terms used but not defined herein will have the meaning given them in the Indenture.

 

This letter relates to U.S.$                aggregate principal amount of the Securities which are held in certificated form.

 

The undersigned has requested transfer of such Securities to a Person who will take delivery thereof in the form of a beneficial interest in the Restricted Global Security (CUSIP No. CUSIP No. 86964W AG7 (144A)/ A8372T AK4 (Reg. S); ISIN US86964WAG78 (144A)/ USA8372TAK46 (Reg. S)). In connection with such transfer, the undersigned does hereby confirm

 

Exh-3-1

 

that such transfer has been effected in accordance with the transfer restrictions set forth in the Indenture and on the Securities and pursuant to and in accordance with Rule 144A under the U.S. Securities Act of 1933, as amended, and accordingly, the undersigned represents that:

 

(1)                                 the Securities are being transferred to a transferee that the undersigned reasonably believes is purchasing the Securities for its own account or one or more accounts with respect to which the transferee exercises sole investment discretion; and

 

(2)                                 the undersigned reasonably believes that transferee and any such account is a “qualified institutional buyer” within the meaning of Rule 144A, in a transaction meeting the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction.

 

	
 
    	
[NAME   OF TRANSFEROR]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    	
 
    
					

 

Exh-3-2

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