Document:

Exhibit 10.1

 

EXECUTION VERSION

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,

MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE

U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

AMENDED AND RESTATED

NITROGEN FERTILIZER PURCHASE AGREEMENT

 

between

 

CF INDUSTRIES NITROGEN, LLC

 

and

 

CHS INC.

 

 

TABLE OF CONTENTS

 

	
1.
    	
Definitions
    	
1
    
	
2.
    	
Term, Effectiveness and   Effect on Other Agreements
    	
5
    
	
3.
    	
Sale and Purchase of   Product and Deliveries
    	
5
    
	
4.
    	
Quality and Quantity   Determination
    	
5
    
	
5.
    	
Purchase Price
    	
6
    
	
6.
    	
Payment
    	
6
    
	
7.
    	
Schedule for Deliveries
    	
7
    
	
8.
    	
Product Mix and Location   Flexibility
    	
10
    
	
9.
    	
DEF and Specialty   Products
    	
10
    
	
10.
    	
Title and Risk of Loss;   Deliveries
    	
10
    
	
11.
    	
Indemnity
    	
11
    
	
12.
    	
Taxes, Fees and   Licenses
    	
13
    
	
13.
    	
Force Majeure
    	
13
    
	
14.
    	
Major Unplanned Outages
    	
15
    
	
15.
    	
Warranty
    	
17
    
	
16.
    	
Default and Remedies
    	
17
    
	
17.
    	
Representations and   Warranties
    	
17
    
	
18.
    	
Coordination and Review
    	
18
    
	
19.
    	
Confidentiality
    	
18
    
	
20.
    	
Dispute Resolution and   Governing Law
    	
19
    
	
21.
    	
Injunctive Relief
    	
20
    
	
22.
    	
Miscellaneous
    	
20
    
	
 
    	
 
    	
 
    
	
Exhibit 1 
    	
 
    	
Ex. 1-1
    
	
Exhibit 2 
    	
 
    	
Ex. 2-1
    
	
Exhibit 3 
    	
 
    	
Ex. 3-1
    
	
Exhibit 4 
    	
 
    	
Ex. 4-1
    

 

 

AMENDED AND RESTATED

NITROGEN FERTILIZER PURCHASE AGREEMENT

 

AMENDED AND RESTATED NITROGEN FERTILIZER PURCHASE AGREEMENT (this “Agreement”) is made on December 18, 2015, (the “Effective Date”) and with effect as set out hereinafter, between CF INDUSTRIES NITROGEN, LLC, a limited liability company organized under the law of Delaware (“Seller”) and CHS INC., a Minnesota cooperative (“Buyer”). Seller and Buyer may individually be referred to as a “Party” and collectively as the “Parties.”

 

A.                                    WHEREAS, Seller owns and operates plants and terminals for the production, storage and delivery, of UAN and Urea (each as defined below) and has long term agreements to purchase UAN and Urea from plants owned and operated by certain of its Affiliates;

 

B.                                    WHEREAS, Buyer desires to purchase such products from Seller at fair market value pursuant to this Agreement for distribution and resale; and

 

C.                                    WHEREAS, the Parties previously entered into that certain Nitrogen Fertilizer Purchase Agreement dated August 11, 2015 (the “Original Supply Agreement”) and desire to amend and restate such agreement in its entirety;

 

NOW THEREFORE, the Parties agree that the terms of the Original Supply Agreement are superseded and that such agreement is amended and restated in its entirety as follows:

 

1.                                      Definitions

 

The following terms shall have the following meanings:

 

“Affiliate” of a person means any person controlling, controlled by or under common control with the first person. For purposes of this definition, control means the power to direct the management or affairs of a person, whether through ownership of voting securities, by contract or otherwise.

 

“Alternative Schedule” has the meaning defined in Section 7(b).

 

“Annual Amount” means (i) for UAN a maximum of 580,000 Short Tons in any Contract Year, and (ii) for Urea a maximum of 1,095,000 Short Tons in any Contract Year.  The Annual Amount of Product may be adjusted pursuant to Sections 8 and 14(e).

 

“Bankruptcy Event” experienced by a Party means:

 

(a)                                 a court having jurisdiction enters a decree or order for (i) relief in respect of the Party in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (ii) appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Party or for all or substantially all of the property of such Party or (iii) the winding up or liquidation of the Party’s affairs and, in each case, such decree or order shall remain unstayed and in effect for a period of 30 consecutive days; or

 

(b)                                 the Party (i) commences a voluntary case 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, liquidator,

 

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assignee, custodian, trustee, sequestrator or similar official of the Party for all or substantially all of the property of such Party, or (iii) effects any general assignment for the benefit of creditors.

 

“Base Quantity” means 1/12 of the amount of each Product shown with respect to each Production Facility in Exhibit 1.

 

“Business Day” means any day other than a Saturday or Sunday, or other day on which commercial banks in New York are authorized or required by law to close.

 

“Buyer” has the meaning defined in the Preamble.

 

“Buyer Facility” means a terminal or warehouse owned or controlled by Buyer or one of its Affiliates, or a customer facility designated by Buyer from time to time.

 

“Buyer Force Majeure Event” has the meaning defined in Section 13(b).

 

“Buyer Indemnitees” has the meaning defined in Section 11(a).

 

“Change in Law” means the enactment, adoption, promulgation, modification, suspension or repeal, after the Effective Date, by any Governmental Authority of any Legal Requirements.

 

“Claim” means any action, suit, proceeding, hearing, investigation, audit, litigation, charge, complaint, claim, or demand by any person.

 

“Competitor Notice” has the meaning defined in the definition of Seller Competitor.

 

“Contest Notice” has the meaning defined in Section 11(e).

 

“Contract Year” means a period of twelve (12) consecutive Months beginning on January 1.

 

[***]

 

“Damages” shall mean any and all Claims, losses, liens, injuries to persons or property, and causes of action of every kind and character including but not limited to strict liability claims and administrative law actions and orders, the amounts of judgments, fines, penalties, interest, court costs, investigation expenses, and costs and legal fees (including but not limited to attorneys’ and experts’ fees), but shall in no event, as between or among Buyer, Buyer Indemnitees, Seller, and Seller Indemnitees, include special, indirect, consequential, punitive, exemplary or other similar damages, or Claims for lost profits, lost business opportunities or business interruption.

 

“Default Rate” means a per annum interest rate equal to the sum of: (i) the 12 month U.S. Dollar LIBOR interest rate as published by Thomson Reuters (or such other mutually agreed publication if Thomson Reuters no longer publishes such rate) for the first day when interest is due, and (ii) 300 basis points.

 

“Deficiency Amount” has the meaning defined in Section 14(e).

 

“Delivery Commencement Date” means February 1, 2016.

 

“Delivery Month” has the meaning defined in Section 7(a).

 

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“Delivery Point” means (i) for deliveries made at a Production Facility, where Seller’s loading pipe flange connects with the receiving transportation equipment or the point where Seller’s loading equipment otherwise discharges Product into the receiving transportation equipment, as applicable, (ii) for deliveries made at a Buyer Facility from barge or truck, where Buyer’s off-loading pipe flange connects with the delivering transportation equipment or the point where the delivering transportation equipment otherwise discharges Product to such Buyer Facility, as applicable, or (iii) for deliveries made at a Buyer Facility from rail car, the point at which the delivering rail car enters the rail yard at such Buyer Facility.

 

“Dispute” has the meaning defined in Section 20(b).

 

“Effective Date” has the meaning defined in the Preamble.

 

[***]

 

“Event of Default” has the meaning defined in Section 16(a).

 

“Forecast” has the meaning defined in Section 7(a).

 

“Governmental Authority” means (i) any federal, state, local, municipal, or other government, whether domestic or foreign, (ii) any governmental, regulatory or administrative agency, commission or other authority, whether domestic or foreign, lawfully exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, and (iii) any domestic or foreign court or governmental tribunal.

 

“Indemnified Party” has the meaning defined in Section 11(d).

 

“Indemnifying Party” has the meaning defined in Section 11(d).

 

“Legal Requirements” means all laws, statutes, codes, acts, treaties, ordinances, orders, judgments, writs, decrees, injunctions, rules, regulations, governmental approvals or consents, directives, and requirements of all Governmental Authorities.

 

“Major Unplanned Outage” has the meaning defined in Section 14(a).

 

“Market Price” with respect to a Product has the meaning defined in Exhibit 2.

 

“Month” means a calendar month.

 

“Monthly Schedule” has the meaning defined in Section 7(b).

 

“Neutral Accounting Arbitrator” has the meaning defined in Section 20(c).

 

“Notice of Claim” has the meaning defined in Section 11(d).

 

“Notice of Liability” has the meaning defined in Section 11(e).

 

“Partial Contract Year” means:

 

(a)                                 with respect to the first Contract Year, the period commencing on February 1, 2016 and ending December 31, 2016; and

 

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(b)                                 with respect to the final Contract Year, in the event the Agreement is terminated on a date other than December 31, the period of time between the preceding January 1 and the termination date.

 

“Planned Outage” means any planned maintenance of major production equipment of a Production Facility, not to exceed 60 days in any Contract Year, that will limit the output of UAN and/or Urea from such Production Facility during a Contract Year and the planned occurrence of which is communicated to Buyer no later than 90 days prior to such Contract Year.  No less than 90 days in advance of any Planned Outage, Seller shall give Buyer notice of the expected start date of such Planned Outage which may begin as many as 10 days earlier and 10 days later than the day specified in such notice. Except as otherwise agreed by the Parties, any days of outage that occur outside of the combination of such +/- 10 day start date and maximum 60 day duration shall not constitute Planned Outage days.

 

“Product” means UAN and/or Urea to be sold pursuant to this Agreement, as applicable.

 

“Production Economic Cost” for each Product has the meaning defined in Exhibit 4.

 

“Production Facility” means the applicable production plant or facility owned by Seller or an Affiliate of Seller as of the Delivery Commencement Date, as such plants and facilities are specified in Exhibit 1.

 

“Public Official” means anyone in the service of a public body, Governmental Authority or government (including the legislature, judiciary or the executive) or of a public international organization.

 

“Purchase Price” has the meaning defined in Section 5.

 

“Reference Month” has the meaning defined in Section 7(c).

 

“Scales” has the meaning defined in Section 4(c).

 

“Seller” has the meaning defined in the Preamble.

 

“Seller Competitor” means, for any Contract Year, a person (or an Affiliate of a person) listed on Exhibit 3 hereto; provided, however, that Exhibit 3 shall be updated as of the beginning of each Contract Year such that it shall consist of [***].

 

“Seller Force Majeure Event” has the meaning defined in Section 13(a).

 

“Seller Indemnitees” has the meaning defined in Section 11(b).

 

“Short Ton” means 2000 pounds.

 

“Specifications” means the specifications for UAN and Urea set forth in Seller’s Product Specification Sheet for each Product (available at www.cfindustries.com) in effect at the time a Monthly Schedule for Product is determined. Seller reserves the right, at any time and from time to time, to amend the Specifications by sending to Buyer a revised Product Specification Sheet; provided that any Product produced in accordance with and meeting amended Specifications must permit Buyer to continue to sell or distribute such Product in the ordinary course of business in North America and must remain suitable for the customary uses of the Product that exist as of the Effective Date.

 

“Taxes” has the meaning defined in Section 12.

 

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“UAN” means 32% urea ammonium nitrate solution.

 

“Urea” means urea in granular form.

 

[***]

 

2.                                      Term, Effectiveness and Effect on Other Agreements

 

(a)                                 This Agreement shall be effective as of the Effective Date and shall continue in force and effect until its expiration on December 31, 2097, unless earlier terminated by mutual agreement of the Parties or as a remedy for an Event of Default. Sections 11, 12, 15, 16, 19, 20, and 21 shall survive expiration or any termination of this Agreement, together with any other provisions that are necessary to enforce the Parties’ respective rights and obligations arising from events or circumstances occurring prior to such termination or expiration.

 

(b)                                 For the avoidance of doubt, any purchases of Product pursuant to this Agreement shall not be included in the “Minimum Target Volume” that is required to be purchased and shipped to Buyer in order for incentive rebate payments to be issued to Buyer pursuant to that certain Product Incentive Program dated as of July 1, 2015; provided, however, that the Parties shall in good faith negotiate prior to the end of the “Program Period” (as such term is defined in the Product Incentive Program) an equitable adjustment of the “Minimum Target Volume” for UAN and Urea purchased by Buyer as of the Delivery Commencement Date.

 

(c)                                  As of the Delivery Commencement Date, this Agreement shall supersede that certain Urea Barge Index Agreement between Seller’s Affiliate CF Industries Sales, LLC and Buyer dated as of June 15, 2015, and such agreement shall no longer be in force or effect.

 

3.                                      Sale and Purchase of Product and Deliveries

 

(a)                                 In each full Contract Year beginning on or after the Delivery Commencement Date and subject to the other terms and conditions of this Agreement, (i) Seller agrees to make available for purchase by Buyer the Annual Amount of each Product, and (ii) in accordance with each Monthly Schedule, Buyer agrees to purchase and accept delivery of, and Seller agrees to sell and deliver, Product at, or for further shipment to Buyer from, the Production Facilities specified in Exhibit 1, in each case in amounts not exceeding (1) the Annual Amount for each such Product in any Contract Year, and (2) the amounts specified in Exhibit 1 with respect to each such Product at each such Production Facility in any Contract Year; provided, however, that with respect to any Partial Contract Year the provisions of this Agreement that apply on an annual basis shall be prorated according to the number of days in such Partial Contract Year.

 

(b)                                 Seller shall (i) deliver Product pursuant to this Agreement at the applicable Delivery Point within the applicable Production Facility as specified in Exhibit 1 to barges, trucks or rail cars provided by Buyer, or (ii) at Buyer’s election, ship Product from the applicable Production Facility as specified in Exhibit 1 to a Delivery Point within a Buyer Facility as specified by Buyer.

 

4.                                      Quality and Quantity Determination

 

(a)                                 All Product shall conform to the Specifications. Notwithstanding the previous sentence, Seller shall have no liability under this Agreement for any alleged failure of Product to conform to the Specifications unless such Claim is made by notice to Seller within 45 days of delivery to the Delivery Point.

 

5

 

(b)                                 In the event that any delivered Product does not conform to the Specifications and a Claim therefor is made within the time period specified in subsection (a), Seller shall at Buyer’s option, either (i) deliver to the applicable Delivery Point equivalent quantities of conforming Product as promptly as practical at Seller’s expense, or (ii) refund any Purchase Price paid by Buyer for the nonconforming Product and any transportation and handling costs incurred by Buyer prior to determination of the nonconformance. In both cases Seller shall reimburse to Buyer all costs incurred by Buyer to dispose of nonconforming Product; provided however that Buyer shall use commercially reasonable efforts to cooperate with Seller to minimize such disposal costs. Such reasonable efforts shall include, at Seller’s option, the sale of nonconforming Product at a discount from the Purchase Price; provided, however, that (1) Buyer has no obligation to purchase such nonconforming Product, (2) nonconforming Product that is accepted and purchased by Buyer at Market Price shall count toward the Annual Amount, and (3) nonconforming Product that is purchased by Buyer at a discount shall not count toward the Annual Amount. The foregoing remedies are not exclusive and, except as expressly provided to the contrary herein, Buyer shall be entitled to all rights and remedies otherwise available to it under applicable law.

 

(c)                                  The weight of Product delivered and sold to Buyer under this Agreement shall be determined (i) by origin survey at the Production Facility from which Product is delivered or shipped to Buyer in the case of Product to be transported by barge, and (ii) by scale weight in the case of Product to be transported by rail or truck. All origin surveys shall be performed by a reputable and appropriately licensed independent surveyor selected and paid for by Seller. All scale weights shall be determined by Seller at the Production Facility from which Product is to be delivered or shipped to Buyer. Seller shall install, own, maintain and operate accurate scales and other measurement facilities (the “Scales”) suitable for determining the weights of rail and truck shipments of Product.

 

(d)                                 Seller shall calibrate the Scales as required for certification by the applicable Governmental Authority. All Scales shall be open to inspection by Buyer at all reasonable times. In the event either Party disputes the accuracy of any measurement taken by all or any one of the Scales, such Scales may be tested no more frequently than two times in a Contract Year by an independent testing agency mutually acceptable to the Parties, except in the event that a test demonstrates an inaccuracy of the Scales of 1% or more, in which case the applicable test shall not count towards the foregoing two test limit. The expense of any such test shall be borne by the Party requesting the test; provided, that if such independent test demonstrates that the measurements taken by the Scales are less than 99% accurate on average, then (x) the costs of the independent test shall be borne by Seller and (y) the Scales shall be recalibrated to the standard required by the applicable Governmental Authority as soon as reasonably possible. The settlement of any discrepancy in Purchase Price paid as a result of inaccurate measurements shall be made on the immediately succeeding invoice. If the Parties are unable to ascertain when the inaccuracy commenced, the inaccuracy will be deemed to have commenced on a date which is halfway between the date of the last recalibration and the date of the calibration which revealed the inaccuracy. If the quantity of Product delivered to Buyer, as determined pursuant to the foregoing measurements, is lower than the corresponding quantity of Product set forth in invoices submitted to Buyer hereunder, the difference in quantity between the amount determined and the amount invoiced shall not, unless subsequently delivered in accordance with the terms of this Agreement, count toward the Annual Amount.

 

5.                                      Purchase Price

 

For each Short Ton of Product purchased by Buyer from Seller, Buyer agrees to pay the applicable price as set forth in Exhibit 2 (the “Purchase Price”).

 

6

 

6.                                      Payment

 

(a)                                 Seller shall send an invoice or invoices to Buyer for deliveries of Product at each Delivery Point that have occurred in a Delivery Month by the [***] day of the succeeding Month or the next Business Day thereafter in the event that the [***] day is not a Business Day. The quantity of Product to be billed for each delivery shall equal the net weight of Product delivered at, or shipped from, a Production Facility as determined by origin survey or scale weight, as applicable.  Buyer shall pay the amount of each invoice within [***] days from date of such invoice, subject to disputed invoices.

 

(b)                                 Buyer shall invoice Seller for any amounts due Buyer for a Delivery Month by the [***] day of the succeeding Month or the next Business Day thereafter in the event that the [***] day is not a Business Day. Seller shall pay the amount of each invoice within [***] days from date of such invoice, subject to disputed invoices.

 

(c)                                  All payments shall be made in U.S. dollars by wire transfer to a bank designated by the receiving Party. In the event that the paying Party reasonably and in good faith disputes any invoice hereunder, such Party shall so notify the other Party within 20 days from the date of the invoice, with notice of the reason for such Dispute and the paying Party shall pay the portion of such invoiced amount not so disputed. Payment of the disputed portion of the invoiced amount will only become due, and the paying Party shall pay the disputed portion of the invoiced amount within seven (7) days, after resolution of the Dispute pursuant to Section 20. The paying Party’s failure to pay the disputed portion of any invoiced amount disputed in good faith shall not be deemed a breach hereof or a late payment.

 

(d)                                 Interest shall be due on all late payments of any amounts due under this Agreement and shall be calculated as simple interest at the Default Rate.

 

7.                                      Schedule for Deliveries

 

(a)                                 No later than 90 days before the first day of each Month in which Product is to be delivered during the term of this Agreement (a “Delivery Month”), Buyer shall provide to Seller a forecast of Buyer’s requirements for Product to be sold from each Production Facility during such Delivery Month, which shall include an indication of whether and in what amounts such Product is to be shipped and delivered to one or more Buyer Facilities (such forecast the “Forecast”) consistent with the Annual Amounts and Exhibit 1. (For the avoidance of doubt, the requirement of this subsection and subsection (b) shall commence 90 days prior to the Delivery Commencement Date in order to provide Seller with appropriate transition and planning information.) Representatives from each Party will promptly meet thereafter at a mutually acceptable time, in person or via teleconference, to discuss the Forecast.

 

(i)                                     In preparing each Forecast for a Delivery Month, Buyer shall have the right to request the sale of each Product from each Production Facility in an amount not exceeding 110% of the Base Quantity for such Product at such Production Facility; provided that during any consecutive period of three Delivery Months the aggregate amount of any Product requested to be sold from any Production Facility shall not exceed 105% of the sum of the Base Quantities for such Product at such Production Facility for such three Month period.

 

(ii)                                  The Parties agree that until the Forecasts become Monthly Schedules, such Forecasts are estimates only.  For the avoidance of doubt, (A) Buyer in submitting a Forecast as required pursuant to this subsection (a) or an updated Forecast as required pursuant to subsection (b) shall not have any obligation under this Agreement to submit a Forecast that provides for the delivery or purchase of any Product, and (B) Buyer shall have no obligation under this

 

7

 

Agreement to purchase any Product except as provided in a Monthly Schedule established pursuant to subsection (b).

 

(iii)                               Seller shall promptly notify Buyer of any known or anticipated events, including any unplanned outages of production equipment, including Major Unplanned Outages, that will prevent Seller from delivering the specified amounts of Product in accordance with the Forecasts, and Buyer shall promptly notify Seller of any known or anticipated events that will prevent Buyer from accepting the specified amounts of Product in accordance with the Forecasts.

 

(iv)                              Each Forecast shall take into account any Planned Outage, and Buyer shall not include in a Forecast the sale of a Product from a Production Facility that cannot be produced at such Production Facility due to a Planned Outage. If the desired delivery of any Product from or at a Production Facility would be adversely affected by a Planned Outage, Seller shall use commercially reasonable efforts, at Buyer’s request, to increase deliveries of affected Product during preceding and succeeding Months. Any variation included by Buyer in a Forecast due to a Planned Outage shall not be taken into account for the purpose of the calculation of permitted variance under Section 7(a)(i).

 

(v)                                 For the avoidance of doubt, notwithstanding any provisions of clause (i) and clause (iv), Seller shall not have any obligation to sell or deliver quantities of Product in excess of the Annual Amount for such Product in any Contract Year.

 

(b)                                 No later than 45 days before the first day of each Delivery Month, Buyer shall provide to Seller an updated Forecast, subject to the same limitations set forth in Section 7(a) above, with such updated Forecast to include Buyer’s proposed schedule for the delivery at each Production Facility, or shipment to a Buyer Facility, of Product to Buyer during such Month, including anticipated delivery dates and the applicable Delivery Point at which Buyer desires delivery of such Product from a Production Facility to be made.  No later than the first day of the Month immediately preceding each Delivery Month, Seller shall either (i) confirm to Buyer that Seller accepts Buyer’s updated Forecast, or (ii) submit to Buyer an alternative schedule (the “Alternative Schedule”), which may be either (1) a schedule based on the updated Forecast but modified to provide for the delivery of quantities of a Product from one or more Production Facilities that are less than the applicable quantities specified in Buyer’s updated Forecast, or (2) subject to the terms of Section 7(c), a [***]; provided that Seller may only submit an Alternative Schedule pursuant to (1) if and to the extent (x) the requested deliveries of a Product from a Production Facility cannot be satisfied on account of a Seller Force Majeure Event, after complying with Seller’s obligations under Section 13, or (y) Buyer’s updated Forecast was not timely submitted or does not satisfy the limitations in Section 7(a). In its submission of a proposed Alternative Schedule, Seller shall include sufficient detail to demonstrate compliance with the proviso of the previous sentence or, as applicable, subsection (c), and at Buyer’s request, Seller shall provide additional information concerning Seller’s inability to supply such Product quantities. At Buyer’s request, Seller and Buyer shall consult together concerning Seller’s proposed Alternative Schedule and use commercially reasonable efforts to agree upon any changes or revisions to such proposed Alternative Schedule, including, as applicable, sales of Product from other Seller facilities and sales of increased quantities of Product in later Months (which sales shall not be accounted for in the variations permitted in Section 7(a)(i) but shall be subject to Section 7(a)(v)). If the Parties are unable to agree upon any such changes or revisions to Seller’s proposed Alternative Schedule by the date that is 20 days before the first day of the applicable Delivery Month, then the most recent Alternative Schedule proposed by Seller shall become final (without prejudice to any Buyer Claim hereunder that Seller has breached its obligations). Buyer’s updated Forecast (if confirmed by Seller or if Seller fails to propose an Alternative Schedule by the date that is 20 days before the first day of the

 

8

 

applicable Delivery Month) or Seller’s Alternative Schedule (if Buyer’s updated Forecast is not confirmed and such Alternative Schedule becomes final in accordance with this subsection (b)) shall be binding and shall constitute the monthly schedule for deliveries of Product in the applicable Delivery Month (the “Monthly Schedule”).  In each Delivery Month the aggregate amount of each Product to be delivered at each Delivery Point in such Month pursuant to the applicable Monthly Schedule shall be binding on the Parties; provided that the failure of either Party to meet the schedule for delivery or acceptance of Product, as applicable, with respect to any particular day of such Month as set out in such Monthly Schedule shall not result in liability to such Party except as may occur with respect to any liability for demurrage or other third party charges pursuant to subsection (h).

 

(c)                                  Seller may, in accordance with subsection (b), submit an Alternative Schedule providing for [***], if (i) the Market Prices for [***] for the Month preceding the Month preceding such Delivery Month (the “Reference Month”) were less than [***], and (ii) Seller reasonably believes that the Market Prices for [***] in the Month preceding the applicable Delivery Month and in the Delivery Month will be less than [***].

 

(d)                                 In instances where Seller is obligated to ship a quantity of Product to a Buyer Facility pursuant to a Monthly Schedule and such quantity of Product is in transit, Buyer may request diversion and delivery of such quantity in whole or in part to a different Delivery Point. Seller shall use commercially reasonable efforts to achieve the requested diversion and delivery, and Buyer shall be liable for the payment of any incremental freight costs resulting thereby.

 

(e)                                  Seller shall deliver the specified amounts of Product from the applicable Production Facility to the applicable Delivery Point in accordance with each Monthly Schedule, and Buyer shall accept delivery at such Delivery Point of the specified amounts of Product in accordance with each Monthly Schedule. Seller shall promptly notify Buyer of any known or anticipated events, including any unplanned outages of production equipment (including Major Unplanned Outages), that will prevent Seller from delivering the specified amounts of Product in accordance with the Monthly Schedule, and Buyer shall promptly notify Seller of any known or anticipated events that will prevent Buyer from accepting the specified amounts of Product in accordance with the Monthly Schedule.

 

(i)                                     If Buyer fails to accept delivery of Product at a Delivery Point in accordance with a Monthly Schedule, then Seller shall have the right to sell such Product to a third party and Buyer shall be liable to Seller for the excess of (i) the amount otherwise payable to Seller under this Agreement for such Product, less (ii) the amount actually received by Seller for such Product, plus reasonable costs and expenses. Seller shall use commercially reasonable efforts to mitigate such amount.

 

(ii)                                  If Seller fails to deliver any Product at a Delivery Point in accordance with a Monthly Schedule, then Buyer shall have the right to purchase such Product from a third party and Seller shall be liable to Buyer for the excess of (i) the amount actually paid by Buyer for such Product, less (ii) the amount otherwise payable to Seller under this Agreement for such Product, plus reasonable costs and expenses. Buyer shall use commercially reasonable efforts to mitigate such amount.

 

(iii)                               If Seller is unable to sell Product to a third party that Buyer failed to accept, or if Buyer is unable to buy Product from a third party that Seller failed to supply, then the non-complying Party, at the request of the other Party, shall use commercially reasonable efforts to increase the quantity of Product it delivers and sells, or accepts and purchases, as applicable, from or at another Production Facility or in later Months in order to replace the quantity of Product that was not purchased or sold due to such non-compliance.

 

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(f)                                   In instances in which the Delivery Point for a Product is at a Production Facility (and not delivered by Seller to Buyer at a Buyer Facility), Buyer shall provide all barges, trucks and railcars, whether or not owned by Buyer, necessary for the transportation of Product from the applicable Delivery Point and shall provide sufficient numbers of barges, railcars or trucks for loading within time frames that will permit Seller to meet each Monthly Schedule. All barges, trucks and railcars provided by Buyer (i) shall be suitable for the transportation of the relevant Product, (ii) where previously used for the transportation of other substances shall be cleaned of such substances, and (iii) shall comply with all applicable Legal Requirements (and in the case of barges with Seller’s applicable dock tariff). In order to allow for the timely shipping of Products per each Monthly Schedule, Seller shall work cooperatively with the transportation companies engaged by Buyer to transport Products from the applicable Production Facility. However, for the avoidance of doubt Seller shall have no liability pursuant to this Agreement for deviations from the Monthly Schedules caused by inadequate transportation services provided by the Buyer or such transportation companies.

 

(g)                                  In instances in which the Delivery Point for a Product is at a Buyer Facility, Seller shall be responsible for providing all transportation necessary to accomplish the applicable delivery of Product. Without prejudice to the generality of the foregoing, each Party has the right to request meetings with the other Party from time to time to discuss methods to improve the efficiency of Product transport, which by mutual agreement may include Buyer assigning, or taking an assignment of, carrier leases.

 

(h)                                 Each Party shall be liable to the other Party for demurrage or other third party charges related to transportation delay caused by such Party or its contractors.

 

(i)                                     Notwithstanding Section 22(a) of this Agreement, all forecasts, schedules, notices and other communications between the Parties pursuant to this Section 7 may be transmitted by email to an email address designated by each Party from time to time or by such other equally efficient means as the Parties may mutually agree.

 

8.                                      Product Mix and Location Flexibility

 

(a)                                 At least 90 days prior to the beginning of each Contract Year during the term of this Agreement and as desired by either Party, the Parties shall discuss increasing the Annual Amount of UAN by up to 100,000 Short Tons for such Contract Year and decreasing the Annual Amount of Urea by an equivalent nutrient amount for such Contract Year, or vice versa. Any such increase and decrease shall only occur by mutual agreement of the Parties and shall not carry over into the succeeding Contract Year.

 

(b)                                 At least 90 days prior to the beginning of each Contract Year and as desired by either Party, the Parties shall discuss, and use commercially reasonable efforts to agree upon, reallocating quantities of the Annual Amount of a Product from a Production Facility to another Production Facility or any other fertilizer production facility then owned by Seller or its Affiliates. Any such reallocation of Product quantities shall only occur by mutual agreement of the Parties.

 

9.                                      DEF and Specialty Products

 

In the event that the Parties mutually wish to pursue the sale and purchase of Diesel Exhaust Fluid, new nitrogen fertilizer products, or other products developed by Seller or its Affiliates, the Parties intend that such arrangements shall be memorialized in separate agreements from this Agreement.

 

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10.                               Title and Risk of Loss; Deliveries

 

(a)                                 Title to and risk of loss of Product shall pass from Seller to Buyer as custody of Product passes from Seller to Buyer, Buyer’s customer, or Buyer’s transportation company at the applicable Delivery Point.

 

(b)                                 Seller shall provide Buyer, or, at Buyer’s direction, Buyer’s transportation company, with the following documents at the time of delivering Product to the Delivery Point: the bill of lading, origin survey and any other customary transport documents to evidence delivery at the Delivery Point.  Safety data sheets for Product can be found at: http://www.cfindustries.com/products_safety-data-sheets.html.

 

11.                               Indemnity

 

(a)                                 Seller hereby agrees to protect, defend, indemnify, and hold Buyer, its parent company, partners, subsidiaries and any other Affiliates of Buyer, and their respective directors, officers, employees, attorneys-in-fact, and agents (collectively the “Buyer Indemnitees”) free and harmless from and against any and all Damages incurred by any Buyer Indemnitee and arising in connection with (i) Seller’s breach of any representation or warranty in this Agreement, including the failure of Product to meet the Specifications, (ii) any other breach by Seller in the performance of its covenants and agreements herein, (iii) the operation of any Production Facility, (iv) the transportation, handling, use and sale of Product at or prior to the Delivery Point, or (v) the negligence or willful misconduct of Seller’s employees and Seller’s agents or subcontractors, or any of their employees, in each instance to the fullest extent permitted by law. The duty to defend, protect, indemnify and save the Buyer Indemnitees harmless referred to in the preceding sentence shall remain effective notwithstanding the existence of comparative, concurrent or contributing negligence of any person or entities including, but not limited to, the Buyer Indemnitees, their agents, employees or officers; provided however, that Seller shall not be liable for Damages to the extent resulting from the breach of Buyer’s warranties or covenants herein or the negligence or willful misconduct of the Buyer Indemnitees. Seller’s duty of indemnification shall survive the termination or expiration of this Agreement.

 

(b)                                 Buyer hereby agrees to protect, defend, indemnify, and hold Seller, its parent company, partners, subsidiaries and any other Affiliates of Seller, and their respective directors, officers, employees, attorneys-in-fact and agents (collectively the “Seller Indemnitees”) free and harmless from and against any and all Damages incurred by any Seller Indemnitee and arising in connection with (i) Buyer’s breach of any representation or warranty in this Agreement, (ii) any other breach by Buyer in the performance of its covenants and agreements herein, (iii) following delivery to Buyer’s transportation company or Buyer at the applicable Delivery Point, the storage, handling, transportation, use, and sale of Product (it being agreed that Buyer’s rights under Sections 4(a) and 4(b) to make Claims of nonconformity to Specifications within 45 days of shipment are not waived hereby), or (iv) the negligence or willful misconduct of Buyer’s employees and Buyer’s agents or subcontractors, or any of their employees, in each instance to the fullest extent permitted by law. The duty to defend, protect, indemnify and save the Seller Indemnitees harmless referred to in the preceding sentence shall remain effective notwithstanding the existence of comparative, concurrent or contributing negligence of any person or entities including, but not limited to, the Seller Indemnitees, their agents, employees or officers; provided however, that Buyer shall not be liable for Damages to the extent resulting from the breach of Seller’s warranties or covenants herein or the negligence or willful misconduct of the Seller Indemnitees. Buyer’s duty of indemnification shall survive the termination or expiration of this Agreement.

 

(c)                                  IN NO EVENT SHALL EITHER SELLER OR BUYER BE LIABLE TO THE OTHER PARTY OR THE OTHER PARTY’S INDEMNITEES UNDER ANY PROVISION OF THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, ANY INDEMNITY PROVISION HEREOF) FOR PUNITIVE, EXEMPLARY, CONSEQUENTIAL, INCIDENTAL, INDIRECT, OR SPECIAL DAMAGES IN TORT OR CONTRACT. FURTHERMORE, EXCEPT AS SET FORTH IN ARTICLE 7,

 

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NEITHER SELLER NOR BUYER SHALL BE LIABLE TO THE OTHER PARTY OR THE OTHER PARTY’S INDEMNITEES UNDER ANY PROVISION OF THIS AGREEMENT FOR LOST PROFITS, LOST BUSINESS OPPORTUNITIES OR BUSINESS INTERRUPTION. THE PRECEDING SENTENCES SHALL NOT BE CONSTRUED, HOWEVER, AS LIMITING THE OBLIGATION OF EITHER SELLER OR BUYER TO INDEMNIFY THE OTHER PARTY OR THE OTHER PARTY’S INDEMNITEES AGAINST CLAIMS ASSERTED BY THIRD PARTIES, INCLUDING, BUT NOT LIMITED TO, THIRD PARTY CLAIMS FOR PUNITIVE, EXEMPLARY, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR SPECIAL DAMAGES, OR FOR LOST PROFITS, LOST BUSINESS OPPORTUNITIES OR BUSINESS INTERRUPTION.

 

(d)                                 If there occurs a third party Claim that either Party asserts is indemnifiable pursuant to Section 11(a) or 11(b), the Party seeking indemnification (the “Indemnified Party”) shall promptly provide notice (the “Notice of Claim”) to the other Party obligated to provide indemnification (the “Indemnifying Party”). Providing the Notice of Claim shall be a condition precedent to any liability of the Indemnifying Party hereunder, and the failure to provide prompt notice as provided herein will relieve the Indemnifying Party of its obligations hereunder, but only if and to the extent that such failure materially prejudices the Indemnifying Party hereunder. If the Indemnified Party provides a Notice of Claim to the Indemnifying Party of the commencement thereof, the Indemnifying Party shall be entitled to participate therein and, to the extent that it shall wish, to assume the defense thereof, with counsel reasonably satisfactory to the Indemnified Party; provided, that prior to the Indemnifying Party assuming control of such defense, it shall first (i) verify to the Indemnified Party in writing that such Indemnifying Party shall be fully responsible (with no reservation of any rights) for all liabilities and obligations relating to such Claim for indemnification subject to indemnification hereunder and (ii) enter into an agreement with the Indemnified Party in form and substance reasonably satisfactory to the Indemnified Party that unconditionally guarantees the payment and performance of any liability or obligation which may arise with respect to such Claim or facts giving rise to such Claim for indemnification hereunder, to the extent indemnifiable under this Section 11. After notice from the Indemnifying Party to such Indemnified Party of such election so to assume the defense thereof, the Indemnifying Party shall not be liable to the Indemnified Party hereunder for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by the Indemnified Party, in connection with the defense thereof other than reasonable costs of investigation; provided, however, that if the Indemnified Party reasonably believes that counsel for the Indemnifying Party cannot represent both the Indemnified Party and the Indemnifying Party because such representation would be reasonably likely to result in a conflict of interest, then the Indemnified Party shall have the right to its own defense by counsel (limited to one firm) of its own choosing and at the sole cost and expense of the Indemnifying Party. The Indemnified Party agrees to reasonably cooperate with the Indemnifying Party and its counsel in the defense against any such asserted liability. In any event, the Indemnified Party shall have the right to participate at its own expense in the defense of such asserted liability. No Indemnifying Party, in the defense of any Claim shall, except with the written consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the release of the Indemnified Party from all liability in respect to such Claim or that does not solely require the payment of money damages by the Indemnifying Party. The Indemnifying Party agrees to afford the Indemnified Party and its counsel the opportunity to be present at, and to participate in, conferences with all persons asserting any Claim against the Indemnified Party or conferences with representatives of or counsel for such persons. In no event shall the Indemnifying Party, without the written consent of the Indemnified Party, settle any Claim on terms that provide for (i) a criminal sanction against the Indemnified Party or (ii) injunctive relief affecting the Indemnified Party.

 

(e)                                  Upon receipt of a Notice of Claim, the Indemnifying Party, if it does not elect to assume the control of the defense, shall have 20 calendar days to contest its indemnification obligation with respect to such Claim, or the amount thereof, by written notice to the Indemnified Party (the “Contest Notice”); provided, however, that if, at the time a Notice of Claim is submitted to the Indemnifying Party the amount

 

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of the Damage in respect thereof has not yet been determined, such 20 day period in respect of, but only in respect of the amount of the Damage, shall not commence until a further written notice (the “Notice of Liability”) has been sent or delivered by the Indemnified Party to the Indemnifying Party setting forth the amount of the Damage incurred by the Indemnified Party that was the subject of the earlier Notice of Claim. Such Contest Notice shall specify the reasons or bases for the objection of the Indemnifying Party to the Claim, and if the objection relates to the amount of the Damages asserted, the amount, if any, that the Indemnifying Party believes is due the Indemnified Party, and any undisputed amount shall be promptly paid over to the Indemnified Party. If no such Contest Notice is given within such 20 day period, the obligation of the Indemnifying Party to pay the Indemnified Party the amount of the Damages set forth in the Notice of Claim, or subsequent Notice of Liability, shall be deemed established and accepted by the Indemnifying Party.

 

(f)                                   If the Indemnifying Party fails to assume the defense of such Claim or, having assumed the defense and settlement of such Claim, fails reasonably to contest such Claim in good faith, the Indemnified Party, without waiving its right to indemnification, may assume, at the cost of the Indemnifying Party, the defense and settlement of such Claim; provided, however, that (i) the Indemnifying Party shall be permitted to join in the defense and settlement of such Claim and to employ counsel at its own expense, (ii) the Indemnifying Party shall cooperate with the Indemnified Party in the defense and settlement of such Claim in any manner reasonably requested by the Indemnified Party, and (iii) the Indemnified Party shall not settle such Claim without soliciting the views of the Indemnifying Party and giving them due consideration.

 

(g)                                  The Indemnifying Party shall make any payment required to be made under this Section 11 in cash and on demand. Any payments required to be paid by an Indemnifying Party under this Section that are not paid within seven (7) Business Days of the date on which such obligation becomes final shall thereafter be deemed delinquent, and the Indemnifying Party shall pay to the Indemnified Party, immediately upon demand, interest at the Default Rate, from the date such payment becomes delinquent to the date of payment of such delinquent sums, which interest shall be considered to be Damages of the Indemnified Party.

 

12.                               Taxes, Fees and Licenses

 

Buyer shall pay all taxes, assessments, duties, fees, levies, penalties, licenses or charges imposed by any Governmental Authority, including state tonnage taxes (collectively “Taxes”) which may now or hereafter be imposed on or with respect to Product after the applicable Delivery Point, and Seller shall pay all Taxes which may now or hereafter be imposed on or with respect to Product before or at the Delivery Point. If Seller is required to remit or pay Taxes that are Buyer’s responsibility hereunder, Seller shall include charges for such Taxes in its invoices to Buyer pursuant to Section 6, and Buyer shall reimburse Seller for such Taxes in its payment of such invoices. If Buyer is required to remit or pay Taxes that are Seller’s responsibility hereunder, Buyer shall include charges for such Taxes in its invoices to Seller pursuant to Section 6, and Seller shall reimburse Buyer for such Taxes in its payment of such invoices. Each Party shall take such steps as the other Party reasonably requests and that can be accomplished without cost to mitigate the assessment of Taxes against such requesting Party. Buyer shall obtain, at its expense, any licenses, permits or other registrations required to accept delivery of Product. Seller shall obtain, at its expense, any licenses, permits or other registrations required for the sale of Product.

 

13.                               Force Majeure

 

(a)                                 A “Seller Force Majeure Event” shall mean, subject to the terms of this Section 13, an event affecting Seller or an applicable Affiliate, that in either case is beyond the reasonable control of Seller or the applicable Affiliate and that materially limits or wholly prevents the production or delivery of Product to be sold by Seller pursuant to this Agreement, which may include, without limitation: (i) physical

 

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events such as act of God, disease, landslides, sinkholes, floods, lightning, earthquakes, fires, storms such as hurricanes and tornadoes, or explosions; (ii) a Change in Law; (iii) strikes, lockouts, combination of workers or other labor difficulties (from whatever cause arising, and whether or not the demands of the employees are reasonable or within Seller’s or one of its Affiliate’s power to satisfy); (iv) terrorist attacks, riots, sabotage, insurrections or wars; (v) breakage or accident to critical machinery or critical equipment (other than because of failure to regularly maintain such machinery or equipment in accordance with standard industry practice); (vi) curtailment or interruption of the supply of natural gas, electricity or other raw materials or services necessary for the production or delivery of Product; and (vii) interruption of rail, barge or road transportation or other rail, barge or road services if due to an event described in clauses (i), (ii), (iii) or (iv). Notwithstanding the foregoing, none of the following shall in any event be deemed to be a Seller Force Majeure Event: (1) an act, omission, event or circumstance that is principally caused as a result of the negligence, willful misconduct or default of Seller or an Affiliate of Seller; (2) any failure by Seller or an Affiliate of Seller to obtain, maintain or renew (as applicable) any licenses, permits or other registrations in the ordinary course required for the production, delivery and sale of Product; and (3) any Major Unplanned Outage.

 

(b)                                 A “Buyer Force Majeure Event” shall mean, subject to the terms of this Section 13, an event beyond Buyer’s reasonable control that that materially limits or wholly prevents the acceptance by Buyer (or Buyer’s transportation company) of Product to be sold pursuant to this Agreement, which may include, without limitation: (i) physical events such as act of God, disease, landslides, sinkholes, floods, lightning, earthquakes, fires, storms such as hurricanes and tornadoes, or explosions; (ii) a Change in Law; (iii) strikes, lockouts, combination of workers or other labor difficulties (from whatever cause arising, and whether or not the demands of the employees are reasonable or within Buyer’s or an Affiliate’s power to satisfy); (iv) terrorist attacks, riots, sabotage, insurrections or wars; (v) breakage or accident to critical machinery or critical equipment (other than because of failure to regularly maintain such machinery or equipment in accordance with standard industry practice); (vi) curtailment or interruption of the supply of natural gas, electricity or other raw materials or services necessary for the receipt of Product, and (vii) interruption of rail, barge or road transportation or other rail, barge or road services if due to an event described in clauses (i), (ii), (iii) or (iv). Notwithstanding the foregoing, none of the following shall in any event be deemed to be a Buyer Force Majeure Event: (1) an act, omission, event or circumstance that is principally caused as a result of the negligence, willful misconduct or default of Buyer or one of its Affiliates; and (2) any failure by Buyer or one of its Affiliates to obtain, maintain or renew (as applicable) any licenses, permits or other registrations in the ordinary course required for the purchase of Product.

 

(c)                                  During and to the extent of a Seller Force Majeure Event claimed by Seller, if such Seller Force Majeure Event prevents delivery of Product at or sourced from a particular Production Facility, Seller shall use commercially reasonable efforts to source Product from an alternative Production Facility or any other fertilizer production facility then-owned by Seller or its Affiliates. Seller covenants and agrees that if a Seller Force Majeure Event adversely affects production of Product at a Production Facility or supply of Product to Buyer in accordance with this Agreement (i) to the extent only a portion of production has been affected at a Production Facility, Buyer shall [***], and (ii) Buyer shall [***]. In the event that alternative sourcing is not commercially reasonable, Seller’s obligation to sell and deliver Product from the Production Facility affected by the Seller Force Majeure Event (and Buyer’s corresponding obligation to purchase and accept Product from the Production Facility affected by the Seller Force Majeure Event) shall, subject to Seller’s compliance with this Section 13, be excused to the extent of the Seller Force Majeure Event claimed by Seller.

 

(d)                                 Seller shall (i) give Buyer notice of any Seller Force Majeure Event claimed by Seller within seven (7) Business Days of the later of (A) the occurrence of the Seller Force Majeure Event and (B) first becoming aware of the existence of such Seller Force Majeure Event; (ii) use commercially reasonable efforts to eliminate the effects of and restore sales and deliveries impaired by the Seller Force Majeure

 

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Event (notwithstanding that the original cause was beyond its reasonable control); (iii) as promptly as possible resume full scale production and keep Buyer regularly informed of all progress in such regard; and (iv) use commercially reasonable efforts to increase the quantity of Product to be delivered to Buyer from or at another Production Facility or after termination of the Seller Force Majeure Event in order to replace the quantity of Product that was not delivered due to such Seller Force Majeure Event; provided, however, that Seller shall not, for the avoidance of doubt, be obliged to increase the Annual Amount in any Contract Year as a result of using commercially reasonable efforts under this subsection (d)(iv).

 

(e)                                  During and to the extent of a Buyer Force Majeure Event claimed by Buyer, Buyer’s obligation to purchase and accept Product pursuant to this Agreement (and Seller’s corresponding obligation to sell and deliver Product) shall, subject to Buyer’s compliance with this Section 13, be excused. Buyer shall (i) give Seller notice of any Buyer Force Majeure Event claimed by Buyer within seven (7) Business Days of the later of (A) the occurrence of the Buyer Force Majeure Event and (B) first becoming aware of the existence of such Buyer Force Majeure Event; (ii) use commercially reasonable efforts to eliminate the effects of and restore its ability to accept, transport, deliver, store and use Product impaired by the Buyer Force Majeure Event (notwithstanding that the original cause was beyond its reasonable control); and (iii) as promptly as possible resume purchasing and keep Seller regularly informed of all progress in such regard.

 

(f)                                   If the non-performance of Seller’s Product sale and delivery obligations from a specified Production Facility due to a Seller Force Majeure Event continues on an uninterrupted basis for 365 days, by notice to Seller within 30 days thereafter, Buyer may terminate its purchase obligations as to such Product from such Production Facility to the extent of the quantity that, except for the Seller Force Majeure Event, otherwise would have been delivered at or from such Production Facility.

 

(g)                                  If the non-performance of Buyer’s Product purchase and acceptance obligations from a specified Production Facility due to a Buyer Force Majeure Event continues on an uninterrupted basis for 365 days, by notice to Buyer within 30 days thereafter, Seller may terminate its delivery and sale obligations as to such Product from such Production Facility to the extent of the quantity that, except for the Seller Force Majeure Event, otherwise would have been delivered at or from such Production Facility.

 

(h)                                 Notwithstanding the foregoing provisions of this Section 13, neither Seller nor Buyer shall be relieved of any obligation to pay any amounts owed under this Agreement arising prior to or independent from permitted nonperformance under a Seller Force Majeure Event or Buyer Force Majeure Event.

 

(i)                                     No Seller Force Majeure Event or Buyer Force Majeure Event pursuant to this Section 13 shall operate to extend the term of this Agreement or (except as provided in subsections (f) and (g)) to terminate it.

 

14.                               Major Unplanned Outages

 

(a)                                 A “Major Unplanned Outage” means an event, circumstance or outage at a Production Facility that (i) regardless of whether the occurrence of such event is beyond Seller’s or its applicable Affiliates’ reasonable control, materially limits or wholly prevents the production of Product at such Production Facility, (ii) lasts in excess of four (4) weeks, (iii) is not caused by the gross negligence or willful misconduct of Seller, its Affiliates, employees, contractors or agents, (iv) is not a Seller Force Majeure Event, and (v) is notified to Buyer by Seller to be a Major Unplanned Outage.

 

(b)                                 During and to the extent of a Major Unplanned Outage, if such Major Unplanned Outage prevents delivery of Product at or sourced from a particular Production Facility, Seller shall use commercially reasonable efforts to source Product from an alternative Production Facility or any other

 

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fertilizer production facility then-owned by Seller or its Affiliates. Seller covenants and agrees that if a Major Unplanned Outage adversely affects production of Product at a Production Facility or supply of Product to Buyer in accordance with this Agreement (i) to the extent only a portion of production has been affected at a Production Facility, Buyer shall [***], and (ii) Buyer shall [***]. In the event that alternative sourcing is not commercially reasonable, Seller’s obligation to sell and deliver Product from the Production Facility affected by the Major Unplanned Outage (and Buyer’s corresponding obligation to purchase and accept Product from the Production Facility affected by the Major Unplanned Outage) shall, subject to Seller’s compliance with this Section 14, be excused to the extent of the Major Unplanned Outage except as provided in subsections (c), (d) and (e).

 

(c)                                  Seller shall (i) use commercially reasonable efforts to eliminate the effects of and restore sales and deliveries impaired by the Major Unplanned Outage; (ii) as promptly as possible resume full scale production and keep Buyer regularly informed of all progress in such regard; and (iii) use commercially reasonable efforts in such Contract Year to increase the quantity of Product to be delivered to Buyer from or at another Production Facility or after termination of the Major Unplanned Outage in order to replace the quantity of Product that was not delivered due to such Major Unplanned Outage.

 

(d)                                 If Seller fails to deliver any Product at a Delivery Point in accordance with a Monthly Schedule as the result of a Major Unplanned Outage, then Buyer shall have the right to purchase such Product from a third party and Seller shall be liable to Buyer for the excess of (i) the amount actually paid by Buyer for such Product, less (ii) the amount otherwise payable to Seller under this Agreement for such Product, plus reasonable costs and expenses. Buyer shall use commercially reasonable efforts to mitigate such amount.

 

(e)                                  “Deficiency Amount” means an amount of Product measured in nutrient tons that Seller has failed to deliver in a Contract Year as the result of a Major Unplanned Outage and to which Buyer was otherwise entitled under a Monthly Schedule, less any nutrient tons of Product that Buyer has elected to purchase pursuant to subsection (d) and for which Seller has paid corresponding amounts due to Buyer pursuant to subsection (d).

 

(i)                                     For any Contract Year in which there is a Deficiency Amount, the total Annual Amount of Product for the subsequent Contract Year as measured in nutrient tons (i.e. the Annual Amount of Urea measured in nutrient tons plus the Annual Amount of UAN measured in nutrient tons) shall be increased in an amount equal to the lesser of (x) such Deficiency Amount plus any residual Deficiency Amounts carried over from prior Contract Years, or (y) 30,000 nutrient tons. The division of any such increase in the Annual Amount of nutrient tons as between each Product in such subsequent Contract Year shall be at Buyer’s option communicated to Seller no later than January 31 of such subsequent Contract Year.  The Parties shall use commercially reasonable efforts to determine the Production Facilities and Months in which such increase in nutrient tons shall be delivered; provided that unless otherwise agreed to by Seller, no more than 20,000 nutrient tons shall be allocated to any one Production Facility.

 

(ii)                                  Any quantity of Deficiency Amount from a Contract Year that has not been used to increase the Annual Amount of Product nutrient tons in the subsequent Contract Year as the result of the 30,000 nutrient ton cap provided in clause (i), shall be carried over into succeeding Contract Years and added to the Annual Amount of Product nutrient tons in those Contract Years pursuant to the limitations set forth in clause (i) until such quantity of Deficiency Amount has been reduced to zero. For the avoidance of doubt, it is the intent of this

 

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subsection (e) to ensure that Buyer has the opportunity to purchase in subsequent Contract Years any Deficiency Amount of Product.

 

(f)                                   Seller shall give notice to Buyer, as soon as reasonably practicable, after first becoming aware of the existence of an outage affecting production equipment that will or could, with the passage of time, become a Major Unplanned Outage.

 

(g)                                  Notwithstanding the foregoing provisions of this Section 14, neither Seller nor Buyer shall be relieved of any obligation to pay any amounts owed under this Agreement arising prior to or independent from permitted nonperformance under a Major Unplanned Outage.

 

(h)                                 No Major Unplanned Outage pursuant to this Section 14 shall operate to extend the term of this Agreement.

 

15.                               Warranty

 

Seller represents and warrants that (i) at the time of delivery to the applicable Delivery Point, Product will conform to the applicable Specifications, and (ii) Seller will convey good and marketable title to Product, free and clear of any and all liens, mortgages, security interests, charges or other encumbrances. EXCEPT AS SET FORTH IN THIS AGREEMENT, SELLER ASSUMES NO OTHER LIABILITY WITH RESPECT TO PRODUCT AND MAKES NO OTHER WARRANTY WHETHER OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR OTHERWISE, EXPRESSED OR IMPLIED, WITH RESPECT THERETO.

 

16.                               Default and Remedies

 

(a)                                 Events of Default. An event of default (“Event of Default”) as to a Party shall be deemed to have occurred upon the following:

 

(i)                                     Such Party fails to make payment of an amount which is due to the other Party and such failure extends for more than 10 Business Days after notice by such other Party.

 

(ii)                                  Such Party experiences a Bankruptcy Event.

 

(iii)                               Such Party fails to perform any of its covenants or obligations (other than obligations which are addressed in clause (a)(i)) in accordance with this Agreement and such failure is not cured within 30 days after the defaulting Party’s receipt of notice of such failure from the non-defaulting Party.

 

(b)                                 Remedies. Upon the occurrence of an Event of Default as provided in Section 16(a) above, the non-defaulting Party may suspend performance of its obligations hereunder with respect to the defaulting Party (including as to the specific defaulted obligation of the defaulting Party but otherwise performing and requiring performance of the remainder of the obligations), terminate this Agreement with respect to the defaulting Party, or take any other action (including Claim for damages) or pursue any other right available to it under this Agreement, at law or in equity; provided however, that no Party may terminate this Agreement while the resolution of any Dispute is pending pursuant to Section 20(b) (whether by mini-trial or lawsuit) contesting a Party’s right to terminate. Remedies provided herein are cumulative and the exercise of one shall not limit, waive or preclude the exercise of other remedies at the same time or subsequently.

 

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17.                               Representations and Warranties

 

Each Party hereby warrants to the other Party that:

 

(a)                                 it is duly incorporated and existing in accordance with the laws of its jurisdiction of incorporation or organization and is duly qualified to do business under the laws of such jurisdiction and each other jurisdiction in which such qualification is required;

 

(b)                                 it has capacity and has obtained all necessary authorization (if any) to enter into this Agreement and to undertake all of the obligations anticipated hereby;

 

(c)                                  that the execution and delivery of this Agreement by it and the performance of its obligations under this Agreement do not and shall not violate, conflict with or result in a breach of any decree, memorandum and/or articles of incorporation or organization, charter, by-law, law, contract or obligation to which it is a party or by which it is bound; and

 

(d)                                 this Agreement constitutes its legally valid and binding obligation enforceable against it in accordance with its terms.

 

18.                               Coordination and Review

 

(a)                                 Following the Delivery Commencement Date, representatives of the Parties shall meet each quarter, via teleconference or in person, during the term at a mutually acceptable time and place to review and coordinate the operational aspects of each Party’s performance of its obligations under this Agreement, Planned Outages and the responses to Major Unplanned Outages and any Seller Force Majeure Events or Buyer Force Majeure Events, if applicable. A representative of Seller shall chair such meetings. Seller shall regularly and promptly keep Buyer advised of changes in the expected duration of Seller Force Majeure Events and Major Unplanned Outages affecting the supply of Product.

 

(b)                                 Representatives of the Parties shall meet in person twice in each Contract Year at a mutually acceptable time and place to review the administration and overall workings of this Agreement, including any conflicts that have arisen thereunder.

 

19.                               Confidentiality

 

(a)                                 Each Party shall keep and maintain, and shall cause its officers, employees, agents and contractors to keep and maintain, the confidentiality of all information contained in or relating to the performance of this Agreement or about the other Party and shall not disclose any information to a third party except to the extent necessary to perform its obligations or to enforce its rights under this Agreement and except that neither Party shall have any obligation of confidentiality with respect to information that (a) is generally available to the public, (b) is or becomes known to such Party through sources not bound by any obligation of confidentiality, or (c) is required to be disclosed under applicable law, legal process or rules of any securities exchange. In the event that a Party is required by Legal Requirement to disclose any such information relating to this Agreement, the Party shall provide the other Party with prompt notice of such Legal Requirement, unless legally prohibited from doing so. In the case of legal process (which includes any judicial, administrative or governmental proceeding), the other Party may seek a protective order or other appropriate remedy, at its expense, and/or waive compliance with this Agreement, and the first Party will make a reasonable effort to assist the other Party in seeking such protective order or other remedy, unless legally prohibited from doing so. If such protective order or other remedy is not obtained, or the first Party waives compliance with the provisions of this Agreement, the Party will furnish only that portion of information which is lawfully required or requested, and the Party will use reasonable efforts to obtain reliable assurance that confidential treatment will be accorded to all such documents, data, or information which is disclosed. Notwithstanding the foregoing, either Party may disclose information of the type

 

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described in this Section 19 to such Party’s professional advisors (including attorneys, accountants and auditors) so long as such professional advisors are made aware of the confidentiality obligations set forth in this Section 19.

 

(b)                                 Seller shall establish and implement customary measures to insure that only Seller’s personnel responsible for the production and delivery of Product in accordance with this Agreement shall have access to Buyer’s Forecasts and the Monthly Schedule. Buyer shall establish and implement customary measures to insure that only Buyer’s personnel responsible for arranging for the purchase of Product in accordance with this Agreement shall have access to Seller’s schedule of Planned Outages.

 

20.                               Dispute Resolution and Governing Law

 

(a)                                 This Agreement shall be governed and construed in accordance with the substantive laws of the State of New York, without reference to conflicts of law principles that could mandate the application of the laws of another jurisdiction. The United Nations Convention on the International Sale of Goods shall not apply.

 

(b)                                 Except for matters subject to resolution pursuant to subsection (c) and except for a Party’s right to seek injunctive relief pursuant to Section 20, in the event of any dispute arising out of, or relating to, this Agreement or the breach, termination or validity thereof (“Dispute”), the Parties agree: first, to submit the Dispute for review by representatives from each Party, who shall meet promptly after the Dispute first arising at a mutually acceptable time, in person, to discuss in good faith and seek resolution of the applicable Dispute, and second, if the foregoing resolution procedure is unsuccessful within 45 days of the first meeting of the applicable representatives, to submit the Dispute for resolution by “mini-trial”, unless they agree that such procedure is inappropriate for the matter in controversy. Such mini-trial shall be conducted in accordance with the International Institute for Conflict Prevention and Resolution (CPR) Mini Trial Agreement for Business Disputes before a panel consisting of an executive with full decision-making authority from each Party and neutral mediator selected jointly by the Parties. Limited discovery shall be permitted as agreed by the Parties. The mini-trial shall be conducted in New York, New York, at an agreed time, place and date. Arguments may be presented by counsel or others as each Party deems appropriate. Each Party shall have no more than three hours (which may be extended by mutual agreement) to present exhibits, testimonies, summaries of testimony and argument. No recording of the proceeding shall be permitted. The executives may have present and consult with other advisors as deemed appropriate. Such proceeding shall be confidential and, unless a mutually agreeable settlement is reached, no portion of the proceeding shall be binding on either Party or used for any purpose in any subsequent proceeding. If a mutually agreeable settlement is reached, the panel shall prepare or cause to be prepared a written settlement agreement setting forth the terms and conditions of the settlement which shall be executed by each Party and shall be enforceable by, and binding upon, each Party. In the event a mutually agreeable settlement is not reached through use of the mini-trial proceeding or within 120 days of the initiation of the mini-trial procedure, any Party may initiate legal proceedings in accordance with subsection (d). The neutral mediator shall be disqualified as a witness, consultant or expert in any subsequent proceeding. Performance of the Parties’ obligations to sell and purchase under this Agreement shall not be suspended pending resolution of any Dispute by mini-trial pursuant to this Section 20(b), or any lawsuit brought by a Party contesting a Party’s right to terminate or suspend performance because of breach or otherwise.

 

(c)                                  Any Dispute relating solely to an invoice dispute under Section 6 or a price calculation under Section 5 or Exhibit 2 shall be resolved by submitting the dispute to an independent accounting firm, acceptable to both Parties, which is not at the time of the Dispute engaged by, and which for two (2) years prior to the applicable Dispute has not been engaged by, either Party other than to determine Disputes hereunder (the “Neutral Accounting Arbitrator”), whose charges shall be borne one half by Seller and

 

19

 

one half by Buyer. The Parties shall submit all information requested by the Neutral Accounting Arbitrator, whose decision except in cases of manifest error shall be final and unappealable. Each Party shall submit to the Neutral Accounting Arbitrator any information or documents requested by the other Party in connection with such Dispute.

 

(d)                                 Subject to subsection (b) and (c), in any action or proceeding relating to a Dispute, each Party irrevocably and unconditionally submits to the general jurisdiction of the courts of the United States of America sitting in New York, New York and consents and agrees that any such action or proceeding may be brought in such courts and waives any objection that it may have to the venue of such courts, including but not limited to on the basis of inconvenient forum. Each Party further waives any right to jury trial in any such court in any action or proceeding arising under or relating to this Agreement.

 

21.                               Injunctive Relief

 

The Parties acknowledge and agree that violations of any of (i) the Parties’ respective purchase and sale obligations under this Agreement, including scheduling requirements under Section 7, or (ii) the Parties’ respective confidentiality obligations under Section 19, may result in losses to Buyer or Seller, as the case may be, for which liquidated damages or other monetary relief may not be adequate. Accordingly, the Parties agree that Buyer or Seller, as the case may be, shall be entitled to injunctive and other equitable relief, without the posting of a bond, in the event of a threatened or actual breach of any of the obligations set forth in clauses (i) and (ii) of the immediately preceding sentence, which injunctive relief shall be in addition to and not in lieu of other remedies available under this Agreement

 

22.                               Miscellaneous

 

(a)                                 Notices. Notices required or permitted hereunder shall be in writing, in English, and shall be deemed given when sent by recognized courier service to the address set forth below or to such other address (and by such other means) as either Party shall notify to the other:

 

If to Seller:

 

CF Industries Nitrogen, LLC

Attn: Senior Vice President, Sales, Distribution and Market Development

4 Parkway North, Suite 400

Deerfield, IL 60015-2590

 

With copy to:

 

CF Industries Nitrogen, LLC

Attn: General Counsel

4 Parkway North, Suite 400

Deerfield, IL 60015-2590

 

If to Buyer:

 

CHS Inc.
 Attention: Vice President, Crop Nutrients

5500 Cenex Drive
 Inver Grove Heights, MN 55077-1733

 

With copy to:

 

20

 

CHS Inc.
 Attention: Legal Department

5500 Cenex Drive
 Inver Grove Heights, MN 55077-1733

 

(b)                                 Bankruptcy Matters.  This Agreement and all transactions entered into hereunder constitutes a “forward contract” or a “swap agreement” within the meaning of the United States Bankruptcy Code (11 U.S.C. Section 101 (2000)); each Party is a “swap participant” within the meaning of the United States Bankruptcy Code with respect to any transaction that constitutes a “swap agreement”; each Party is a “forward contract merchant” within the meaning of the United States Bankruptcy Code with respect to any transactions that constitute “forward contracts”; all payments made or to be made by one Party to the other Party pursuant to this Agreement constitute “settlement payments” within the meaning of the United States Bankruptcy Code; each Party’s rights under Section 16(b) to terminate this Agreement constitutes a “contractual right to liquidate” the transactions within the meaning of the United States Bankruptcy Code; and this Agreement constitutes a master netting agreement as defined within the meaning of the United States Bankruptcy Code, as amended.

 

(c)                                  No Third-Party Rights. This Agreement is intended solely for the benefit of the Parties, their direct and indirect Affiliates, and their respective successors, permitted assignees and legal representatives, and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the Parties.

 

(d)                                 Assignment.

 

(i)                                     This Agreement may not be assigned by Seller without the written consent of Buyer not to be unreasonably withheld, and this Agreement may not be assigned by Buyer except in accordance with Section 22(d)(ii); provided, however, notwithstanding the foregoing, either Seller or Buyer may assign this Agreement to an Affiliate of the assigning Party without the consent of the non-assigning Party so long as the assigning Party remains primarily liable hereunder.

 

(ii)                                  Buyer may assign this Agreement to any person or entity, without the consent of Seller, that:

 

(1)                                 has a creditworthiness that is equivalent to or greater than Buyer; provided, however, that such creditworthiness shall be conclusively established if the proposed assignee has a tangible net worth, or is guaranteed by a person with either a tangible net worth, of at least US$2 billion or a credit rating of at least “BBB-” by S&P or “Baa3” by Moody’s; and

 

(2)                                 is not a Seller Competitor.

 

(e)                                  Waivers. No waiver by any Party of any breach of any promise, commitment, covenant, condition or obligation contained in this Agreement to be performed or fulfilled by the other Party shall be construed as any waiver of any succeeding breach of or failure to fulfill the same or any other promise, commitment, covenant, condition or obligation. All waivers must be in writing and executed by the Party against whom they are to be enforced.

 

21

 

(f)                                   Entirety and Conflict. This Agreement sets out the entire understanding and agreement among the Parties as to the subject matter hereof and supersedes all prior negotiations, commitments and writings pertaining to such subject matter. For the avoidance of doubt, nothing in this Agreement is intended to override any other agreement entered into between the Parties and which does not directly address the Parties’ respective obligations to purchase and sell Product hereunder.

 

(g)                                  Multiple Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument, and may be executed through electronic facsimile.

 

(h)                                 Preparation. This Agreement was negotiated and prepared by the Parties with advice of counsel to the extent deemed necessary by each Party, and was not prepared by any Party to the exclusion of the other and, accordingly, should not be construed against any Party by reason of its preparation.

 

(i)                                     Amendment. No modification or amendment of this Agreement shall be binding unless made specifically in writing and duly executed by the authorized representatives of both Parties.

 

(j)                                    Insurance.

 

(i)                                     Seller shall, at its own expense, effect and maintain or cause to be maintained for the duration of this Agreement on the Seller’s behalf:

 

(1)                                 Commercial General Liability & Umbrella/Excess Liability insurance with minimum annual limits of $25,000,000 per occurrence for bodily injury and property damage, including coverage for contractual liability and products/completed operations;

 

(2)                                 Workers’ Compensation and Employer’s Liability insurance and such other forms of insurance which Seller is required to maintain in order to comply with Applicable Law and any statutory limits under workers’ compensation laws in all applicable States;

 

(3)                                 Commercial property insurance including business interruption coverage; and

 

(4)                                 upon request by Buyer, Seller shall provide Buyer with a certificate of insurance, executed by a duly authorized representative of each insurer, evidencing full compliance with the insurance requirements set forth herein.

 

(ii)                                  Buyer shall, at its own expense, effect and maintain for the duration of this Agreement on the Buyer’s own behalf:

 

(1)                                 Commercial General Liability & Umbrella/Excess Liability insurance with minimum annual limits of $25,000,000 per occurrence for bodily injury and property damage, including coverage for contractual liability and products/completed operations;

 

(2)                                 Workers’ Compensation and Employer’s Liability insurance and such other forms of insurance which Buyer is required to maintain in order to

 

22

 

comply with Applicable Law and any statutory limits under workers’ compensation laws in all applicable States;

 

(3)                                 Commercial property insurance including business interruption coverage; and

 

(4)                                 upon request by Seller, Buyer shall provide Seller with a certificate of insurance, executed by a duly authorized representative of each insurer, evidencing full compliance with the insurance requirements set forth herein.

 

(k)                                 Prohibition of Bribery and Other Payments. Each Party warrants that in the performance of its obligations under this Agreement it will comply with the anti-bribery laws of the countries in which it operates and those which may apply to performance of its obligations under this Agreement. Without limitation of the foregoing, neither Party may directly or indirectly:

 

(i)                                     offer, promise or provide (or cause to be offered, promised or provided) anything of value to a Public Official in order to influence official action or to any person to induce them to perform any obligation under or in connection with this Agreement in contravention of anti-bribery laws or otherwise improperly reward them for doing so; or

 

(ii)                                  request or accept anything of value to be induced or rewarded to perform any obligation under or in connection with this Agreement.

 

(l)                                     Compliance with Laws Generally. The Parties shall perform all of their respective obligations under this Agreement in compliance with all Legal Requirements.

 

(m)                             Severability. If any term or other provision of this Agreement is found to be invalid, illegal, or incapable of being enforced by any rule of applicable law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated herein are not affected in any manner materially adverse to any Party.

 

23

 

IN WITNESS WHEREOF, the Parties have executed this Amended and Restated Nitrogen Fertilizer Purchase Agreement by their duly authorized representatives as of the day and year stated above.

 

	
 
    	
CF INDUSTRIES NITROGEN, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ W. Anthony Will
    
	
 
    	
Name:
    	
W. Anthony Will
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CHS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carl M. Casale
    
	
 
    	
Name:
    	
Carl Casale
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    

 

 

EXHIBIT 1

 

1.                                                  UAN (580,000 Short Tons)

 

	
Short Tons
    	
 
    	
Production Facility
    
	
215,000
    	
 
    	
Donaldsonville, LA
    
	
105,000
    	
 
    	
Port Neal, IA
    
	
100,000
    	
 
    	
Woodward, OK
    
	
10,000
    	
 
    	
Yazoo City, MS
    
	
150,000
    	
 
    	
Verdigris, OK
    

 

2.                                                  Urea (1,095,000 Short Tons)

 

	
Short Tons
    	
 
    	
Production Facility
    
	
505,000
    	
 
    	
Port Neal, IA(1)
    
	
490,000
    	
 
    	
Donaldsonville, LA
    
	
100,000
    	
 
    	
Medicine Hat, AB
    

 

(1)         [***]

 

Ex. 1-1

 

EXHIBIT 2

 

PURCHASE PRICE CALCULATION

 

The Purchase Price to be paid by Buyer for each Short Ton of Product delivered at or shipped from a given Production Facility during a Delivery Month shall equal (i) the Market Price for such Product at such Production Facility for such Month, plus (ii) the Applicable Freight Charge in cases where Buyer elects to have Seller deliver such Product to a Buyer Facility.

 

“Market Price” means [***].

 

[***], “Third Party Sales” means [***].

 

“Applicable Freight Charge” means in cases where Buyer elects to have Seller ship Product from the relevant Production Facility and deliver it to a Delivery Point at a Buyer Facility, Seller’s actual freight cost of delivery to such Buyer Facility, including any incremental actual freight costs resulting from the diversion of Product in transit pursuant to Section 7(d).

 

[***]

 

THE REMAINDER OF THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

Ex. 2-1

 

EXHIBIT 3

 

SELLER COMPETITORS

 

[***]

 

THE REMAINDER OF THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

Ex. 3-1

 

EXHIBIT 4

 

PRODUCTION ECONOMIC COST

 

The Production Economic Cost attributable to deliveries of Urea and UAN from each Production Facility in a given Delivery Month shall be determined using the following formula and matrices:

 

[***]

 

	
Product
    	
 
    	
Urea
    	
 
    	
UAN
    
	
Gas Reference
   Price
    	
 
    	
Price per MMBtu
   at applicable
   Production
   Facility as
   provided below
    	
 
    	
Price per MMBtu
   at applicable
   Production
   Facility as
   provided below
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    

 

Urea

 

	
Production Facility
    	
 
    	
Gas Reference Price
    
	
Port Neal, IA
    	
 
    	
[***]
    
	
Donaldsonville, LA
    	
 
    	
[***]
    
	
Medicine Hat, AB
    	
 
    	
[***]
    

 

UAN

 

	
Production Facility
    	
 
    	
Gas Reference Price
    
	
Donaldsonville, LA
    	
 
    	
[***]
    
	
Port Neal, IA
    	
 
    	
[***]
    
	
Woodward, OK
    	
 
    	
[***]
    
	
Yazoo City, MS
    	
 
    	
[***]
    
	
Verdigris, OK
    	
 
    	
[***]
    

 

[***]

 

THE REMAINDER OF THIS PAGE AND THE FOLLOWING PAGE HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

Ex. 4-1Exhibit 4.3

 

PHH CORPORATION

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

TRUSTEE

INDENTURE

 

DATED AS OF [            ], [      ]

 

SENIOR DEBT SECURITIES

 

 

Reconciliation and tie between

Trust Indenture Act of 1939 and Indenture*

 

	
Trust Indenture Act Section
    	
 
    	
Indenture Section
    
	
§ 310
    	
(a)(1)
    	
 
    	
608
    
	
 
    	
(a)(2)
    	
 
    	
608
    
	
 
    	
(a)(5)
    	
 
    	
608
    
	
 
    	
(b)
    	
 
    	
608
    
	
 
    	
(b)(1)
    	
 
    	
608
    
	
§ 311
    	
(a)
    	
 
    	
612
    
	
 
    	
(b)
    	
 
    	
612
    
	
§ 312
    	
(b)
    	
 
    	
702
    
	
 
    	
(c)
    	
 
    	
702
    
	
§ 313
    	
(a)
    	
 
    	
703
    
	
 
    	
(b)
    	
 
    	
703
    
	
 
    	
(c)
    	
 
    	
703
    
	
 
    	
(d)
    	
 
    	
703
    
	
§ 314
    	
(a)(4)
    	
 
    	
1004
    

 

* This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture.

 

i

 

TABLE OF CONTENTS*

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE ONE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DEFINITIONS AND OTHER PROVISIONS
    	
 
    	
 
    
	
 
    	
OF GENERAL APPLICATION
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 101
    	
Definitions
    	
 
    	
1
    
	
SECTION 102
    	
Compliance Certificates and Opinions
    	
 
    	
7
    
	
SECTION 103
    	
Form of Documents Delivered to Trustee
    	
 
    	
7
    
	
SECTION 104
    	
Acts of Holders
    	
 
    	
8
    
	
SECTION 105
    	
Notices, Etc., to Trustee and Company
    	
 
    	
9
    
	
SECTION 106
    	
Notice to Holders; Waiver
    	
 
    	
10
    
	
SECTION 107
    	
Conflict with Trust Indenture Act
    	
 
    	
10
    
	
SECTION 108
    	
Effect of Headings and Table of Contents
    	
 
    	
10
    
	
SECTION 109
    	
Successors and Assigns
    	
 
    	
10
    
	
SECTION 110
    	
Separability Clause
    	
 
    	
11
    
	
SECTION 111
    	
Benefits of Indenture
    	
 
    	
11
    
	
SECTION 112
    	
Governing Law
    	
 
    	
11
    
	
SECTION 113
    	
Legal Holidays
    	
 
    	
11
    
	
SECTION 114
    	
Indenture and Securities Solely Corporate Obligations
    	
 
    	
12
    
	
SECTION 115
    	
Consent of Holders of Securities in a Foreign Currency   or Euros
    	
 
    	
12
    
	
SECTION 116
    	
Payment Currency
    	
 
    	
12
    
	
SECTION 117
    	
Waiver of Trial by Jury
    	
 
    	
12
    
	
SECTION 118
    	
Force Majeure
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE TWO
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SECURITY FORMS
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 201
    	
Forms Generally
    	
 
    	
13
    
	
SECTION 202
    	
Form of Trustee’s Certificate of Authentication
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE THREE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
THE SECURITIES
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 301
    	
Amount Unlimited; Issuable in Series
    	
 
    	
14
    
	
SECTION 302
    	
Denominations
    	
 
    	
17
    
	
SECTION 303
    	
Execution, Authentication, Delivery and Dating
    	
 
    	
17
    
	
SECTION 304
    	
Temporary Securities
    	
 
    	
18
    
	
SECTION 305
    	
Registration, Registration of Transfer and Exchange
    	
 
    	
18
    

 

*                 The Table of Contents is not a part of the Indenture.

 

ii

 

	
SECTION 306
    	
Mutilated, Destroyed, Lost and Stolen Securities
    	
 
    	
19
    
	
SECTION 307
    	
Payment of Interest; Interest Rights Preserved; Optional   Interest Reset
    	
 
    	
20
    
	
SECTION 308
    	
Persons Deemed Owners
    	
 
    	
22
    
	
SECTION 309
    	
Cancellation
    	
 
    	
23
    
	
SECTION 310
    	
Computation of Interest
    	
 
    	
23
    
	
SECTION 311
    	
Global Securities
    	
 
    	
23
    
	
SECTION 312
    	
Optional Extension of Maturity
    	
 
    	
25
    
	
SECTION 313
    	
CUSIP and ISIN Numbers
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE FOUR
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SATISFACTION AND DISCHARGE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 401
    	
Satisfaction and Discharge of Securities of any Series
    	
 
    	
26
    
	
SECTION 402
    	
Satisfaction and Discharge of Indenture
    	
 
    	
28
    
	
SECTION 403
    	
Application of Trust Money
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE FIVE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
REMEDIES
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 501
    	
Events of Default
    	
 
    	
28
    
	
SECTION 502
    	
Acceleration of Maturity; Rescission and Annulment
    	
 
    	
30
    
	
SECTION 503
    	
Collection of Indebtedness and Suits for Enforcement by   Trustee
    	
 
    	
31
    
	
SECTION 504
    	
Trustee May File Proofs of Claim
    	
 
    	
32
    
	
SECTION 505
    	
Trustee May Enforce Claims Without Possession of   Securities
    	
 
    	
32
    
	
SECTION 506
    	
Application of Money Collected
    	
 
    	
32
    
	
SECTION 507
    	
Limitation on Suits
    	
 
    	
33
    
	
SECTION 508
    	
Unconditional Right of Holders to Receive Principal,   Premium and Interest
    	
 
    	
34
    
	
SECTION 509
    	
Restoration of Rights and Remedies
    	
 
    	
34
    
	
SECTION 510
    	
Rights and Remedies Cumulative
    	
 
    	
34
    
	
SECTION 511
    	
Delay or Omission Not Waiver
    	
 
    	
34
    
	
SECTION 512
    	
Control by Holders
    	
 
    	
34
    
	
SECTION 513
    	
Waiver of Past Defaults
    	
 
    	
35
    
	
SECTION 514
    	
Undertaking for Costs
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE SIX
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
THE TRUSTEE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 601
    	
Certain Duties and Responsibilities
    	
 
    	
36
    
	
SECTION 602
    	
Notice of Defaults
    	
 
    	
37
    
	
SECTION 603
    	
Certain Rights of Trustee
    	
 
    	
37
    
	
SECTION 604
    	
Not Responsible for Recitals or Issuance of Securities
    	
 
    	
39
    
	
SECTION 605
    	
May Hold Securities
    	
 
    	
39
    
	
SECTION 606
    	
Money Held in Trust
    	
 
    	
39
    

 

iii

 

	
SECTION 607
    	
Compensation and Reimbursement
    	
 
    	
39
    
	
SECTION 608
    	
Corporate Trustee Required; Eligibility; Conflicting   Interests
    	
 
    	
40
    
	
SECTION 609
    	
Resignation and Removal; Appointment of Successor
    	
 
    	
40
    
	
SECTION 610
    	
Acceptance of Appointment by Successor
    	
 
    	
42
    
	
SECTION 611
    	
Merger, Conversion, Consolidation or Succession to   Business
    	
 
    	
43
    
	
SECTION 612
    	
Preferential Collection of Claims Against Company
    	
 
    	
43
    
	
SECTION 613
    	
Appointment of Authenticating Agent
    	
 
    	
43
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE SEVEN
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 701
    	
Holder Lists
    	
 
    	
45
    
	
SECTION 702
    	
Communications by Holders with Other Holders
    	
 
    	
45
    
	
SECTION 703
    	
Reports by Trustee
    	
 
    	
45
    
	
SECTION 704
    	
Reports by Company
    	
 
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE EIGHT
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SUCCESSOR CORPORATION
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 801
    	
Limitation on Consolidation, Merger and Sale of Assets
    	
 
    	
46
    
	
SECTION 802
    	
Successor Person Substituted
    	
 
    	
46
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE NINE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SUPPLEMENTAL INDENTURES
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 901
    	
Supplemental Indentures Without Consent of Holders
    	
 
    	
47
    
	
SECTION 902
    	
Supplemental Indentures with Consent of Holders
    	
 
    	
48
    
	
SECTION 903
    	
Execution of Supplemental Indentures
    	
 
    	
49
    
	
SECTION 904
    	
Effect of Supplemental Indentures
    	
 
    	
50
    
	
SECTION 905
    	
Conformity with Trust Indenture Act
    	
 
    	
50
    
	
SECTION 906
    	
Reference in Securities to Supplemental Indentures
    	
 
    	
50
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE TEN
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
COVENANTS
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 1001
    	
Payment of Principal, Premium and Interest
    	
 
    	
50
    
	
SECTION 1002
    	
Maintenance of Office or Agency
    	
 
    	
50
    
	
SECTION 1003
    	
Money for Securities Payments to Be Held in Trust
    	
 
    	
51
    
	
SECTION 1004
    	
Statement as to Compliance
    	
 
    	
53
    
	
SECTION 1005
    	
Waiver of Certain Covenants
    	
 
    	
53
    

 

iv

 

	
 
    	
ARTICLE ELEVEN
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
REDEMPTION OF SECURITIES
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 1101
    	
Applicability of Article
    	
 
    	
53
    
	
SECTION 1102
    	
Election to Redeem; Notice to Trustee
    	
 
    	
53
    
	
SECTION 1103
    	
Selection by Trustee of Securities to be Redeemed
    	
 
    	
54
    
	
SECTION 1104
    	
Notice of Redemption
    	
 
    	
54
    
	
SECTION 1105
    	
Deposit of Redemption Price
    	
 
    	
55
    
	
SECTION 1106
    	
Securities Payable on Redemption Date
    	
 
    	
55
    
	
SECTION 1107
    	
Securities Redeemed in Part
    	
 
    	
56
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE TWELVE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SINKING FUNDS
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 1201
    	
Applicability of Article
    	
 
    	
57
    
	
SECTION 1202
    	
Satisfaction of Sinking Fund Payments with Securities
    	
 
    	
56
    
	
SECTION 1203
    	
Redemption of Securities for Sinking Fund
    	
 
    	
57
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ARTICLE THIRTEEN
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
REPAYMENT AT THE OPTION OF HOLDERS
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 1301
    	
Applicability of Article
    	
 
    	
57
    

 

v

 

INDENTURE, dated as of [                                    ], [    ], between PHH Corporation, a corporation duly organized and existing under the laws of the State of Maryland (herein called the “Company”), and The Bank of New York Mellon Trust Company, N.A., as trustee (herein called the “Trustee”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured and unsubordinated debentures, notes or other evidences of senior indebtedness (herein called the “Securities”), to be issued in one or more series as in this Indenture provided; and

 

WHEREAS, all things necessary to make this Indenture a legal, valid and binding agreement of the Company, in accordance with its terms, have been done.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises and the purchase of the securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all holders of the Securities or of any series thereof, as follows:

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101              Definitions.

 

For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(1)           the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;

 

(2)           unless otherwise defined in this Indenture or the context otherwise requires, all terms used herein without definition which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; and

 

(3)           all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the United States of America at the date of such computation; and

 

 

(4)           the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

 

“Act,” when used with respect to any Holder, has the meaning specified in Section 104.

 

“Affiliate” of any specified person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person.  For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Authenticating Agent” means any Person authorized by the Trustee to act on behalf of the Trustee to authenticate and deliver one or more series of Securities.

 

“Beneficial Owner” means, with respect to Global Securities, the Person who is the beneficial owner of such Securities as effected on the books of the Depositary for such Securities or on the books of a Person maintaining an account with such Depositary (directly or as an indirect participant, in accordance with the rules of such Depositary).

 

“Board of Directors” means either the board of directors of the Company or any duly authorized committee of that board.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors (or by a committee of the Board of Directors to the extent that any such other committee has been authorized by the Board of Directors to establish or approve the matters contemplated) and to be in full force and effect on the date of such certification, and delivered to the Trustee.

 

“Business Day,” when used with respect to any Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment, and (i) with respect to Securities denominated in a Foreign Currency, the capital city of the country of the Foreign Currency, or (ii) with respect to Securities denominated in Euros, Luxembourg, are authorized or obligated by it to close.

 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934, as amended, or, if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

 

“Company” means the Person named as the “Company” in the first paragraph of this Indenture until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor corporation.

 

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“Company Request” or “Company Order” means a written request or order signed in the name of the Company by the Chairman of the Board of Directors, Chief Executive Officer, Chief Financial Officer, President, Executive Vice President, Senior Vice President, Treasurer, Assistant Treasurer, Controller, Assistant Controller, Secretary or Assistant Secretary of the Company, and delivered to the Trustee.

 

“Corporate Trust Office” means the principal corporate trust office of the Trustee at which at any particular time its corporate trust business shall be principally administered.  At the date of this Indenture, the Corporate Trust Office of the Trustee is located at 2 N. LaSalle Street, Suite 1020, Chicago, Illinois 60602, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company.

 

“Defaulted Interest” has the meaning specified in Section 307.

 

“Depositary” means a clearing agency registered as such under the Securities Exchange Act of 1934, as amended, or any successor thereto, which shall in either case be designated by the Company pursuant to Section 301 until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, such Persons.  “Depositary” as used with respect to the Securities of any series shall mean the Depositary with respect to the Securities of that series.

 

“Dollar” or “$” or any similar reference means the coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.

 

“Euro” means the single currency of participating member states of the economic and monetary union as contemplated in the Treaty on European Union.

 

“Event of Default” has the meaning specified in Section 501.

 

“Extension Notice” has the meaning specified in Section 312.

 

“Extension Period” has the meaning specified in Section 312.

 

“Final Maturity” has the meaning specified in Section 312.

 

“Floating Rate Security” means a Security which provides for the payment of interest at a variable rate determined periodically by reference to an interest rate index or other index specified pursuant to Section 301.

 

“Foreign Currency” means a currency issued by the government of any country other than the United States of America or a composite currency, the value of which is determined by reference to the values of the currencies of any group of countries.

 

“Global Security” means a Security evidencing all or part of a series of Securities which is executed by the Company and authenticated and delivered to the Depositary for such series or its nominee, all in accordance with this Indenture and pursuant to a Company Order,

 

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which shall be registered in the name of the Depositary or its nominee and which shall represent the amount of uncertificated securities as specified therein.

 

“Holder” means a Person in whose name a Security is registered in the Security Register.

 

“Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include any Officer’s Certificates setting forth the form and terms of particular series of Securities as contemplated by Sections 201 and 301.

 

“Interest,” means, unless the context otherwise requires, interest payable on any Securities, and with respect to an Original Issue Discount Security that by its terms bears interest only after Maturity, interest payable after Maturity.

 

“Interest Payment Date,” when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security.

 

“Journal” means the official Journal of the European Union or successor publication thereto.

 

“Market Exchange Rate” means on a given date, the noon Dollar buying rate in New York City for cable transfers of a currency as published by the Federal Reserve Bank of New York; provided that, in the case of the Euro, Market Exchange Rate shall mean the rate of exchange determined by the Commission of the European Union (or any successor thereto) as published in the Journal.

 

“Maturity,” when used with respect to any Security, means the date on which the principal of such Security or an installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

 

“Officer’s Certificate” means a certificate signed by any of the Chairman of the Board of Directors, Chief Executive Officer, Chief Financial Officer, President, Executive Vice President, Senior Vice President, Treasurer, Assistant Treasurer, Controller, Assistant Controller, Secretary or Assistant Secretary of the Company and delivered to the Trustee.  Each such certificate shall include the statements provided for in Section 102 if and to the extent required by the provisions of such Section.

 

“Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel for the Company, which opinion is delivered to the Trustee.

 

“Optional Reset Date” has the meaning specified in Section 307.

 

“Original Issue Discount Security” means any Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502.

 

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“Original Stated Maturity” has the meaning specified in Section 312.

 

“Outstanding,” when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except:

 

(i)            Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

 

(ii)           Securities or portions thereof for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities; provided that, if such Securities or portions thereof are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and

 

(iii)          Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Company;  provided, however, that in determining whether the Holders of the requisite principal amount of Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.  Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.  In determining the requisite principal amount of any Original Issue Discount Security, such principal amount that shall be deemed to be Outstanding shall be equal to the amount of the principal thereof that could be declared to be due and payable upon an Event of Default pursuant to the terms of such Original Issue Discount Security at the time of such determination.

 

“Paying Agent” means any Person, which may include the Company, authorized by the Company to pay the principal of (and premium, if any) or interest, if any, on any Security on behalf of the Company.

 

“Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“Place of Payment,” when used with respect to the Securities of any series, means the place or places where the principal of (and premium, if any) and interest, if any, on the

 

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Securities of that series are payable as specified as contemplated in Section 301 or, if not so specified, as specified in Section 1002.

 

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 306 in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.

 

“Redemption Date,” when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.

 

“Redemption Price,” when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture.

 

“Regular Record Date” for the interest payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by Section 301.

 

“Reset Notice” has the meaning specified in Section 307.

 

“Responsible Officer,” when used with respect to the Trustee, means any officer of the Trustee assigned to administer corporate trust matters and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his or her knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

“Securities” has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture.

 

“Security Register” and “Security Registrar” have the respective meanings specified in Section 305.

 

“Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 307.

 

“Stated Maturity,” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subsequent Interest Period” has the meaning specified in Section 307.

 

“Subsidiary” means with respect to any Person, any corporation, association, joint venture, partnership, limited liability company or other business entity of which at least a majority of the voting stock or other ownership interests having voting power for the election of directors, managers or trustees (or the equivalent) is, at the time as of which any determination is being made, owned or controlled by such Person or one or more subsidiaries of such Person, or

 

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by such Person and one or more subsidiaries of such Person, other than shares, interests, participations or other equivalents having such power by reason of the occurrence of any contingency.

 

“Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument until a successor trustee shall have become such with respect to one or more series of Securities pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder, provided, however, that if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in force at the date on the date of this Indenture, except as provided in Section 905.

 

“Vice President,” when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title “vice president.”

 

SECTION 102              Compliance Certificates and Opinions.

 

Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with.

 

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

 

(1)           a statement that each individual signing such certificate or opinion has read such condition or covenant and the definitions herein relating thereto;

 

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

 

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

 

(4)           a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

 

SECTION 103              Form of Documents Delivered to Trustee.

 

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or

 

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covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

 

Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous.  Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

 

Any certificate or opinion of an officer of the Company or Opinion of Counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of, or representations by, an accountant or firm of accountants, unless such officer or counsel, as the case may be, knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the accounting matters upon which his or her certificate or opinion may be based are erroneous.  Any certificate or opinion of any firm of independent registered public accountants filed with the Trustee shall contain a statement that such firm is independent.

 

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

 

SECTION 104              Acts of Holders.

 

(a)           Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders (or Holders of any series) may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company.  Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments, proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 601) conclusive in favor of the Trustee and the Company and any agent of the Trustee or the Company, if made in the manner provided in this Section.

 

(b)           The fact and date of the execution by any person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying

 

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that the individual signing such instrument or writing acknowledged to him the execution thereof.  Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority.  The fact and date of the execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient; and the Trustee may in any instance require further proof with respect to any of the matters referred to in this Section.

 

(c)           The ownership of Securities and the principal amount held by any Person and the date of holding the same shall be proved by the Security Register.

 

(d)           If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so.  If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Securities shall be computed as of such record date, provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provision of this Indenture not later than six months after the record date.

 

(e)           Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee, the Security Registrar, any Paying Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Security.

 

SECTION 105              Notices, Etc., to Trustee and Company.

 

Except as otherwise specifically provided herein, any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with,

 

(1)           the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office, or

 

(2)           the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company addressed to the attention of its General

 

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Counsel at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054 or any other address subsequently furnished in writing to the Trustee by the Company.

 

SECTION 106              Notice to Holders; Waiver.

 

Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at his address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice.  In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders.  Any notice mailed in the manner prescribed by this Indenture shall be conclusively presumed to have been duly given whether or not received by any particular Holder.  Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.  In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders.

 

In the case of Global Securities, notices or communications to be given to Holders shall be given to the Depository, in accordance with its applicable policies from time to time.

 

SECTION 107              Conflict with Trust Indenture Act.

 

If and to the extent that any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such required provision shall control.  If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be.

 

SECTION 108              Effect of Headings and Table of Contents.

 

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

 

SECTION 109              Successors and Assigns.

 

All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.  All agreements of the Trustee, any

 

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additional trustee and any Paying Agents in this Indenture shall bind their respective successors and assigns.

 

SECTION 110              Separability Clause.

 

In case any provision of this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and a Holder shall have no claim therefor against any party hereto.

 

SECTION 111              Benefits of Indenture.

 

Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto, any Paying Agent, any Security Registrar, or any Authenticating Agent and their respective successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

 

SECTION 112              Governing Law.

 

This Indenture and the Securities shall be governed and construed by and in accordance with the laws of the State of New York, as applied to contracts made and performed within the State of New York without regard to principles of conflicts of laws.

 

SECTION 113              Legal Holidays.

 

In any case where any Interest Payment Date, Redemption Date, the Stated Maturity of any Security or any date upon which any Defaulted Interest is proposed to be paid shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Securities) payment of interest, if any, or principal (and premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date, Redemption Date, at the Stated Maturity, or on the date for payment of Defaulted Interest, provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Stated Maturity or date for the payment of Defaulted Interest, as the case may be, to the date of payment.

 

SECTION 114              Indenture and Securities Solely Corporate Obligations.

 

No recourse for the payment of the principal of (or premium, if any) or interest on any Security, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental indenture, or in any Security, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of the Securities.

 

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SECTION 115              Consent of Holders of Securities in a Foreign Currency or Euros.

 

Unless otherwise specified in a certificate delivered pursuant to Section 301 of this Indenture with respect to a particular series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all series or all series affected by a particular action at the time Outstanding and, at such time, there are Outstanding Securities of any series which are denominated in a coin, currency or currency unit other than Dollars, then the principal amount of Securities of such series which shall be deemed to be Outstanding for the purpose of taking such action shall be that amount of Dollars that could be obtained for the stated Foreign Currency or Euro principal amount of such Outstanding Securities at the Market Exchange Rate on the record date for the purpose of taking such action.  If the appropriate Market Exchange Rate is not available for any reason with respect to such currency, the Trustee shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York or, in the case of Euros, the rate of exchange as published in Journal, as of the most recent available date, or quotations or, in the case of Euros, rates of exchange from one or more major banks in The City of New York or in the country of issue of the currency in question or, in the case of Euros, in Luxembourg, or such other quotations or, in the case of Euros, rates of exchange as the Company shall deem appropriate and deliver to the Trustee.  All decisions and determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, be conclusive for all purposes and irrevocably binding upon the Company and all Holders.

 

SECTION 116              Payment Currency.

 

If the principal of and/or interest on (or premium, if any, on) any Securities is payable in a Foreign Currency or Euros and such Foreign Currency or Euros is not available for payment due to the imposition of exchange controls or other circumstances beyond the control of the Company, then the Company shall be entitled to satisfy its obligations to Holders under this Indenture by making such payment in Dollars on the basis of the Market Exchange Rate for such Foreign Currency or Euros on the latest date for which such rate was established on or before the date on which payment is due.  Any payment made under this Section 116 in Dollars where the required payment is in a Foreign Currency or Euros shall not constitute an Event of Default.

 

SECTION 117              Waiver of Trial by Jury.

 

EACH PARTY TO THIS INDENTURE, AND EACH HOLDER OF A SECURITY BY ACCEPTANCE THEREOF, WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE.

 

SECTION 118              Force Majeure.

 

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces

 

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beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

ARTICLE TWO

 

SECURITY FORMS

 

SECTION 201              Forms Generally.

 

The Securities of each series shall be in substantially the form as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution of the Securities.  If the form of Securities of any series is established by action taken pursuant to a Board Resolution, an appropriate Officer’s Certificate setting forth such form together with a copy of the Board Resolution shall be delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 303 for the authentication and delivery of such Securities.

 

The definitive Securities shall be printed, typed, lithographed or engraved or produced by any combination of these methods or may be produced in any other manner permitted by the rules of any securities exchange on which the Securities may be listed, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.

 

SECTION 202              Form of Trustee’s Certificate of Authentication.

 

The Trustee’s certificate of authentication shall be in substantially the form set forth below:

 

This is one of the Securities of the series designated herein issued under the within-mentioned Indenture.

 

 

	
 
    	
 
    	
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    	
Authorized Officer
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

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ARTICLE THREE

 

THE SECURITIES

 

SECTION 301              Amount Unlimited; Issuable in Series.

 

The aggregate principal amount of securities which may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more series.  There shall be established in or pursuant to a procedure established in a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series:

 

(1)           the title of the Securities of the series (which shall distinguish the Securities of such series from the Securities of all other series, except to the extent that additional Securities of an existing series are being issued) and the form of the Securities of the series;

 

(2)           any limit upon the aggregate principal amount of the Securities of the series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Sections 304, 305, 306, 906 or 1107);

 

(3)           the guarantors, if any, of the Securities of the series, and the extent of the guarantees (including provisions relating to seniority, subordination, and the release of the guarantors), if any, and any additions or changes to permit or facilitate guarantees of such Securities;

 

(4)           the date or dates on which the principal of (and premium, if any, on) the Securities of the series is payable, or the manner in which such dates are determined;

 

(5)           the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the series will be issued;

 

(6)           the rate or rates at which the Securities of the series shall bear interest, if any, or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the series shall bear interest, if any, the date or dates on which such interest, if any, shall commence, the date or dates from which any such interest shall accrue, or the manner in which such dates are determined, the Interest Payment Dates on which any such interest shall be payable, the Regular Record Dates, if any, for the payment of interest on any Interest Payment Date and the rate or rates of interest, if any, payable on overdue installments of interest on or principal of (or premium, if any, on) the Securities of the series, and whether the interest rate may be reset upon certain designated events and, in the case of Floating Rate Securities, the notice, if any, to Holders regarding the determination of interest and the manner of giving such notice, and the extent to which, or the manner in which, any interest payable on any Global Security on an Interest Payment Date will be paid or calculated if other than in the

 

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manner provided in Section 307 or Section 310 if other than calculated on the basis of a 360-day year of twelve 30-day months;

 

(7)           if other than the Trustee, the identity of the Security Registrar and, if other than as specified in Section 1002, the place or places where the principal of (and premium, if any) and interest, if any, on Securities of the series shall be payable, or the method of such payment, if by wire transfer, mail or other means;

 

(8)           if the Securities of such series are redeemable, the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company;

 

(9)           the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

(10)         if other than denominations of $2,000 and any integral multiple thereof, the denominations in which Securities of the series shall be issuable;

 

(11)         if other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 502;

 

(12)         additional covenants of the Company, if any, for the benefit of the Holders of Securities of such series and additional Events of Default, if any, with respect to Securities of such series;

 

(13)         if the provisions of Section 401(4) relating to satisfaction and discharge of Securities more than one year prior to their Stated Maturity or redemption shall apply to Securities of the series, a statement of such fact;

 

(14)         if other than Dollars, the coin or currency in which the Securities of that series are denominated (including, but not limited to any Foreign Currency or Euros) if payments of principal of, or interest or premium, if any, on, the Securities of the series are to be made in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to such payments will be determined;

 

(15)         if the amount of payments of principal (and premium, if any) or interest, if any, on the Securities of the series may be determined with reference to an index based on a currency or currencies or by reference to a commodity, commodity index, stock exchange index or financial index, the manner in which such amounts shall be determined;

 

(16)         provisions, if any, for the defeasance of Securities of the series;

 

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(17)         the date as of which any Global Security representing any Outstanding Debt Securities of the series shall be dated if other than the date of original issuance of the first Security of the series to be issued;

 

(18)         whether the Securities of the series shall be issued in whole or in part in the form of one or more Global Securities and, in such case, the Depositary for such Global Security or Securities;

 

(19)         the provisions, if any, relating to any collateral provided for the Securities of the series;

 

(20)         any addition to or change in the Events of Default which applies to any Securities of the series, and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 502;

 

(21)         the terms and conditions, if any, for conversion of the Securities into or exchange of the Securities for shares of common stock or preferred stock of the Company that apply to Securities of the series;

 

(22)         the right, if any, to extend the maturity of the Securities of the series and the duration of such extension;

 

(23)         any depositories, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such series if other than those appointed herein; and

 

(24)         any other terms, conditions, rights and preferences (or limitations on such rights and preferences) relating to the Securities of such series.

 

All Securities of any one series shall be substantially identical except as to denomination and the rate or rates of interest, if any, the date or dates from which interest shall accrue and maturity and except as may otherwise be provided in or pursuant to such Board Resolution and set forth in such Officer’s Certificate or in any such indenture supplemental hereto.

 

If any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate setting forth the terms of the series.

 

All Securities of any one series need not be issued at the same time, and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture or Officer’s Certificate referred to above, however, the authorized principal amount of any series may not be increased to provide for issuances of additional Securities of such series, unless otherwise provided in such Board Resolution, supplemental indenture or Officer’s Certificate.

 

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SECTION 302              Denominations.

 

The Securities of each series shall be issuable in registered form without coupons in such denominations as shall be specified as contemplated by Section 301.  In the absence of any such provisions with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $2,000 and any integral multiple thereof.

 

SECTION 303              Execution, Authentication, Delivery and Dating.

 

The Securities shall be executed in the name and on behalf of the Company by the manual or facsimile signature of its Chairman of the Board of Directors, its Chief Executive Officer, President, one of its Vice Presidents or Treasurer.

 

Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities.

 

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver to the Trustee or an Authenticating Agent for authentication Securities of any series executed by the Company, together with a Company Order for the authentication and delivery of such Securities, and the Trustee or such Authenticating Agent in accordance with the Company Order shall authenticate and deliver such Securities.  If all the Securities of any series are not to be issued at one time, and if the Board Resolution, Officer’s Certificate or supplemental indenture establishing such series shall so permit, such Company Order may set forth procedures acceptable to the Trustee for the issuance of such Securities and the determination of the terms of particular Securities of such series such as interest rate, maturity date, date of issuance and date from which interest shall accrue.  If the form or terms of the Securities of the series have been established in or pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating,

 

(a)           if the form of such Securities has been established by or pursuant to Board Resolution as permitted by Section 201, that such form has been established in conformity with the provisions of this Indenture;

 

(b)           if the terms of such Securities have been established by or pursuant to Board Resolution as permitted by Section 301, that such terms have been established in conformity with the provisions of this Indenture; and

 

(c)           that such Securities when authenticated and delivered by the Trustee and issued by the Company will constitute legally valid and binding obligations of the Company, enforceable in accordance with their terms.

 

The Trustee or any Authenticating Agent shall have the right to decline to authenticate and deliver any of such Securities if it, being advised by counsel, determines that

 

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such action may not lawfully be taken, or if it, its board of directors, trustees, executive committee, or a trust committee of directors or trustees and/or vice presidents shall determine in good faith that such action would expose it to personal liability to existing Holders or if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

 

Each Security shall be dated the date of its authentication.

 

No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein executed by the Trustee or an Authenticating Agent by manual signature, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture.

 

SECTION 304              Temporary Securities.

 

Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee or an Authenticating Agent shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities.

 

Until so exchanged the temporary Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series.

 

SECTION 305              Registration, Registration of Transfer and Exchange.

 

With respect to each series of Securities, the Company shall cause to be kept at one of the offices or agencies maintained pursuant to Section 1002 a register (the register maintained in such office and in any other office or agency established by the Company in a Place of Payment being herein sometimes collectively referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities of that series and of transfers of Securities of that series.  Pursuant to Section 301, the Company shall appoint, with respect to Securities of each series, a “Security Registrar” for the purpose of registering such Securities and transfers and exchanges of such Securities as herein provided.  In the event the Trustee shall not be Security Registrar, it shall have the right to examine the Security Register at all reasonable times.

 

Upon surrender for registration of transfer of any Security of any series at the designated office or agency in a Place of Payment for that series, the Company shall execute, and the Trustee or an Authenticating Agent shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any authorized denominations and of a like tenor, aggregate principal amount and Stated Maturity.

 

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At the option of the Holder, Securities of any series (except Global Securities) may be exchanged for other Securities of the same series, of any authorized denominations and of a like tenor, aggregate principal amount and Stated Maturity, upon surrender of the Securities to be exchanged at such office or agency and upon payment, if the Company shall so require, of the charges hereinafter provided.  Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee or an Authenticating Agent shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive.

 

All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

 

Every Security presented or surrendered for registration of transfer or exchange shall (if so required by the Company or the Trustee or the Security Registrar) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar (and, if so required by the Trustee, to the Trustee) duly executed, by the Holder thereof or his attorney duly authorized in writing.

 

No service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.

 

The Company shall not be required (i) to issue, register the transfer of or exchange Securities of any series during a period beginning at the opening of business 15 days before the day of selection for redemption of Securities of that series selected for redemption under Section 1103 and ending at the close of business on the day of the mailing of notice of redemption, or (ii) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.

 

SECTION 306              Mutilated, Destroyed, Lost and Stolen Securities.

 

If there shall be delivered to the Company and the Trustee (i) a mutilated Security or evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity bond as may be determined in the reasonable judgment of the Company and the Trustee, as the case may be, to protect the Company, the Trustee and any agent of either of them from any loss which any of them may suffer if a Security is replaced, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee or an Authenticating Agent shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Security, a new Security of the same series and of like tenor, principal amount and Stated Maturity and bearing a number not contemporaneously outstanding.

 

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In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder.

 

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

 

SECTION 307              Payment of Interest; Interest Rights Preserved; Optional Interest Reset.

 

(a)           Except as otherwise specified with respect to a series of Securities in accordance with the provisions of Section 301, interest on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest notwithstanding the cancellation of such Security upon any transfer or exchange subsequent to the Regular Record Date.

 

Any interest on any Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (1) or (2) below:

 

(1)           The Company may elect to make payment of any Defaulted Interest to the persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this Clause provided.  Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to 

 

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the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities of such series at his address as it appears in the Security Register, not less than l0 days prior to such Special Record Date.  Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2).

 

(2)           The Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange.

 

Subject to the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

 

(b)           The provisions of this Section 307(b) may be made applicable to any series of Securities pursuant to Section 301 (with such modifications, additional or substitutions as may be specified pursuant to such Section 301).  The interest rate on any Security of such series may be reset by the Company on the date or dates specified on the face of such Security (each an “Optional Reset Date”).  The Company may exercise such option with respect to a Security by notifying the Trustee of all of the relevant information relating to such exercise at least 50 but not more than 60 days prior to an Optional Reset Date, the Trustee shall transmit, in the manner provided for in Section 106, to the Holder of any such Security a notice (the “Reset Notice”) indicating whether the Company has elected to reset the interest rate, and if so (i) such new interest rate and (ii) the provisions, if any, for redemption during the period from such Optional Reset Date to the next Optional Reset Date or if there is no such next Optional Reset Date, to the Stated Maturity Date of such Security (each such period a “Subsequent Interest Period”), including the date or dates on which or the period or periods during which and the price or prices at which such redemption may occur during the Subsequent Interest Period.

 

Notwithstanding the foregoing, not later than 20 days prior to the Optional Reset Date, the Company may, at its option, revoke the interest rate provided for in the Reset Notice and establish a higher interest rate for the Subsequent Interest Period by causing the Trustee to transmit, in the manner provided for in Section 106, notice of such higher interest rate to the Holder of such Security.  Such notice shall be irrevocable.  All Securities with respect to which the interest rate is reset on an Optional Reset Date will bear such higher interest rate.

 

The Holder of any such Security will have the option to elect repayment by the Company of the principal of such Security on each Optional Reset Date at a price equal to the principal amount thereof plus interest accrued to such Optional Reset Date.  In order to obtain repayment on an Optional Reset Date, the Holder must follow the procedures set forth in Article 

 

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Thirteen for repayment at the option of Holders, as such apply to such Security, except that the period for delivery or notification to the Trustee shall be at least 25 but not more than 35 days prior to such Optional Reset Date and except that, if the holder has tendered any Security for repayment pursuant to the Reset Notice, the Holder may, by written notice to the Trustee, revoke such tender or repayment until the close of business on the tenth day before such Optional Reset Date.

 

Subject to the foregoing provisions of this Section and Section 305, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

 

SECTION 308              Persons Deemed Owners.

 

Prior to due presentment of a Security for registration of transfer, the Company, the Trustee, any Paying Agent, any Authenticating Agent and any other agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any) and (subject to Section 307) interest, if any, on such Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee, any Paying Agent, any Authenticating Agent nor any other agent of the Company or the Trustee shall be affected by notice to the contrary.

 

None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.  Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by any Depositary, as a Holder, with respect to such Global Security or impair, as between such Depositary and owners of beneficial interests in such Global Security, the operation of customary practices governing the exercise of the rights of such Depositary (or its nominee) as Holder of such Global Security.

 

SECTION 309              Cancellation.

 

Unless otherwise specified pursuant to Section 301 for Securities of any series, all Securities surrendered for payment, redemption, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it.  The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly cancelled by the Trustee.  No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture.  All cancelled Securities shall be disposed of by the Trustee and the Trustee shall deliver a certificate of such disposal to the Company at the 

 

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Company’s request, unless the Company by Company Order shall direct that such cancelled Securities be returned to it.

 

SECTION 310              Computation of Interest.

 

Except as otherwise specified as contemplated by Section 301 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a 360-day year of twelve 30-day months.

 

SECTION 311              Global Securities.

 

If the Company shall establish pursuant to Section 301 that the Securities of a series are to be issued in whole or in part in the form of one or more Global Securities, then the Company shall execute and the Trustee shall, in accordance with Section 303 and the Company Order with respect to such series, authenticate and deliver one or more Global Securities in temporary or permanent form that (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount of the outstanding Securities of such series to be represented by one or more Global Securities, (ii) shall be registered in the name of the Depositary for such Global Security or Securities or the nominee of such depositary, (iii) shall be delivered by the Trustee to such Depositary or pursuant to such Depositary’s instruction, 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 the Depository or a nominee of the Depository.  This Security is exchangeable for Securities registered in the name of a Person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and may be transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.” The Trustee shall deal with the Depositary and its participants as representatives of the Beneficial Owners of the Global Securities for purposes of exercising the rights of the Holders hereunder and the rights of the Beneficial Owners of the Global Securities shall be limited to those established by law and agreements between such Beneficial Owners and the Depositary and its participants.  Beneficial Owners shall not be entitled to certificates for Global Securities as to which they are the Beneficial Owners.  Requests and directions from, and votes of, such representatives shall not be deemed to be inconsistent if they are made with respect to different Beneficial Owners.

 

Notwithstanding any other provision of this Section or Section 305, unless and until it is exchanged in whole or in part for Securities in definitive form, a Global Security representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor depositary.  The Beneficial Owner’s ownership of Securities shall be recorded on the records of a participant of the Depositary that maintains such Beneficial Owner’s account for such purpose and the participant’s record ownership of such Securities shall be recorded on the records of the Depositary.

 

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If at any time the Depositary for the Securities of a series notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series or if at any time the Depositary for Securities of a series ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation, the Company shall appoint a successor Depositary with respect to the Securities of such series.  If a successor Depositary for the Securities of such series is not appointed by the Company within 90 days after the Company receives written notice or becomes aware of such condition, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Securities of such series, will authenticate and deliver, Securities of such series, with like tenor and terms, in definitive form in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such series in exchange for such Global Security or Securities.

 

The Company may at any time and in its sole discretion determine that the Securities of any series issued in the form of one or more Global Securities shall no longer be represented by such Global Security or Securities.  In such event, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Securities of such series, will authenticate and deliver, Securities of such series, with like tenor and terms, in definitive form and in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such series in exchange for such Global Security or Securities.

 

If specified by the Company pursuant to Section 301 with respect to Securities of a series, the Depositary for such series of Securities may surrender a Global Security for such series of Securities in exchange in whole or in part for Securities of such series in definitive form on such terms as are acceptable to the Company and such Depositary.  Thereupon, the Company shall execute and the Trustee shall authenticate and deliver, without charge,

 

(i)            to each Person specified by the Depositary a new Security or Securities of the same series of like tenor and terms of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Global Security; and

 

(ii)           to the Depositary a new Global Security in a denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the aggregate principal amount of Securities delivered to Holders thereof.

 

Upon the exchange of a Global Security for Securities in definitive form, such Global Security shall be cancelled by the Trustee.  Securities issued in exchange for a Global Security pursuant to this Section 311 shall be registered in such names and in such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee.  The Trustee shall deliver such Securities to the persons in whose names such Securities are so registered.

 

The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

 

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Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 301, payment of the principal of, and interest and premium, if any, on, any Global Security shall be made to the Depository or its nominee in its capacity as the Holder thereof.  Further, the Company, the Trustee and any Authentication Agent shall treat a Person as the Holder of such principal amount of outstanding Securities of any series represented by a Global Security as shall be specified in a written statement of the Depository (which may be in the form of a participants’ list for such series) with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture, provided, that until the Trustee is so provided with a written statement, it may treat the Depository or any other Person in whose name a Global Security is registered as the owner of such Global Security for all purposes, and none of the Company, the Trustee or any agent of the Company or the Trustee shall be affected by notice to the contrary.

 

SECTION 312              Optional Extension of Maturity.

 

The provisions of this Section 312 may be made applicable to any series of Securities pursuant to Section 301 (with such modifications, additions or substitutions as may be specified pursuant to such Section 301).  The Stated Maturity of any Security of such series may be extended at the option of the Company for the period or periods specified on the face of such Security (each an “Extension Period”) up to but not beyond the date (the “Final Maturity”) set forth on the face of such Security.  The Company may exercise such option with respect to any Security by notifying the Trustee of such exercise at least 50 but not more than 60 days prior to the Stated Maturity of such Security in effect prior to the exercise of such (the “Original Stated Maturity”).  If the Company exercises such option, the Trustee shall transmit, in the manner provided for in Section 106, to the Holder of such Security not later than 40 days prior to the Original Stated Maturity a notice (the “Extension Notice”) indicating (i) the election of the Company to extend the Maturity, (ii) the new Stated Maturity Date, (iii) the interest rate applicable to the Extension Period and (iv) the provisions, if any, for redemption during such Extension Period.  Upon the Trustee’s transmittal of the Extension Notice, the Stated Maturity Date of such Security shall be extended automatically and, except as modified by the Extension Notice and as described in the next paragraph, such Security will have the same terms as prior to the transmittal of such Notice.

 

Notwithstanding the foregoing, not later than 20 days before the Original Stated Maturity of such Security, the Company may, at its option, revoke the interest rate provided for in the Extension Notice and establish a higher interest rate for the Extension Period by causing the Trustee to transmit, in the manner provided for in Section 106, notice of such higher interest rate to the Holder of such Security.  Such notice shall be irrevocable.  All Securities with respect to which the Stated Maturity is extended will bear such higher interest rate.

 

If the Company extends the Maturity of any Security, the Holder will have the option to elect repayment of such Security by the Company on the Original Stated Maturity at a price equal to the outstanding principal amount thereof, plus interest accrued to such date.  In order to obtain repayment on the Original Stated Maturity once the Company has extended the Maturity thereof, the Holder of an Outstanding Security must follow the procedures set forth in Article Thirteen for repayment at the option of Holders, as such applies to the Securities of such 

 

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series, except that the period for delivery or notification to the Trustee shall be at least 25 but not more than 35 days prior to the Original Stated Maturity and except that, if the Holder has tendered any Security for repayment pursuant to an Extension Notice, the Holder may by written notice to the Trustee revoke such tender for repayment until the close of business on the tenth day before the Original Stated Maturity unless the Trustee has previously delivered repayment of such Security to such Holder.

 

SECTION 313              CUSIP and ISIN Numbers.

 

The Company in issuing the Securities may use one or more “CUSIP” and “ISIN” numbers (if then generally in use), and, if the Company does so, the Trustee shall use the CUSIP number(s) and ISIN numbers in notices of redemption or exchange as a convenience to Holders, provided, that any such notice may state that no representation is made as to the correctness or accuracy of the CUSIP and ISIN number(s) printed in the notice or on the Securities, and that reliance may be placed only on the other identification numbers printed on the Securities, and that any such redemption or exchange shall not be affected by any defect in or omission of any such numbers.

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE

 

SECTION 401              Satisfaction and Discharge of Securities of any Series.

 

The Company shall be deemed to have satisfied and discharged the entire indebtedness on all the Securities of any particular series and the Trustee, upon Company request and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of such indebtedness, when

 

(1)           either:

 

(A)          all Securities of such series theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 306 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in the last paragraph of Section 1003) have been delivered to the Trustee for cancellation; or

 

(B)          with respect to all Outstanding Securities of such series described in (A) above not theretofore delivered to the Trustee for cancellation,

 

(i)            The Company has deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient to pay and discharge the entire indebtedness on all such Outstanding Securities of such series for principal (and premium, if any) and interest to the Stated Maturity or any Redemption Date as contemplated by Section 403, as the case may be; or

 

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(ii)           The Company has deposited or caused to be deposited with the Trustee as obligations in trust such amount of direct obligations of, or obligations the principal of and interest on which are fully guaranteed by, the United States of America (other than obligations subject to prepayment, redemption or call prior to their stated maturity) as will, together with the predetermined and certain income to accrue thereon (without consideration of any reinvestment thereof), be sufficient to pay and discharge when due the entire indebtedness on all such Outstanding Securities of such series for principal (and premium, if any) and interest to the Stated Maturity or any Redemption Date as contemplated by Section 403, as the case may be;

 

(2)           the Company has paid or caused to be paid all other sums payable with respect to the Securities of such series;

 

(3)           the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of the entire indebtedness on all Securities of such series have been complied with; and

 

(4)           if the entire indebtedness on the Outstanding Securities of such series is to be satisfied and discharged pursuant to Section 401(l)(B) above, then (i) the Company shall have specified the applicability (as provided in Section 301) of this Section 401(4) to the Securities of such series, (ii) the Company shall have given, not later than the date of such deposit, notice of such deposit to the Holders of Securities of such series and (iii) the Trustee shall have received an Opinion of Counsel (which Counsel shall be recognized tax counsel) stating that, (x) the Company has received from the Internal Revenue Service a ruling or (y) since the date of the Indenture, there has been a change in the applicable federal income tax law, including by means of a Revenue Ruling published by the Internal Revenue Service, in either case to the effect that, and based thereon such Opinion of Counsel will confirm that the deposit of funds or obligations and the satisfaction and discharge of indebtedness on the Securities of such series pursuant to this Section 401 will not result in recognition by the Holders of income, gain or loss for federal income tax purposes (other than income, gain or loss which would have been recognized in like amount and at a like time absent such deposit, satisfaction and discharge), provided that the Company will be discharged from the requirements of Article 8 if (i) it has satisfied all of the requirements for satisfaction and discharge of the indebtedness on the Outstanding Securities pursuant to Section 401(1)(B) except for the delivery of the Opinion of Counsel described above, and (ii) the Trustee shall have received an Opinion of Counsel stating that the Holders will not recognize income, gain or loss for federal income tax purposes as a result of the deposit of such funds or obligations and will be subject to federal tax in the same amounts, in the same manner and at the same times as would have been the case if such deposit of funds or obligations had not occurred.

 

Upon the satisfaction of the conditions set forth in this Section 401 with respect to all the Securities of any series, the terms and conditions of such series, including the terms and conditions with respect thereto set forth in this Indenture, shall no longer be binding upon, or applicable to, the Company, and the Holders of the Securities of such series shall look for payment only to the funds or obligations deposited with the Trustee pursuant to Section 401(l)(B); provided, however, that, in no event shall the Company be discharged (a) 

 

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from any payment obligations in respect of Securities of such series which are deemed not to be Outstanding under clause (iii) of the definition thereof if such obligations continue to be valid obligations of the Company under applicable law, (b) from any obligations under Section 607 or the last paragraph of Section 1003, and (c) from any obligations under Sections 305 and 306 (except that Securities of such series issued upon registration of transfer or exchange or in lieu of mutilated, lost, destroyed or stolen Securities shall not be obligations of the Company), and Section 701.

 

SECTION 402              Satisfaction and Discharge of Indenture.

 

Upon compliance by the Company with the provisions of Section 401 as to the satisfaction and discharge of each series of Securities issued hereunder, this Indenture shall cease to be of any further effect (except as otherwise provided herein).  Upon Company Request (and at the expense of the Company), the Trustee shall execute proper instruments acknowledging satisfaction and discharge of this Indenture.  In the event there are two or more Trustees hereunder, then the effectiveness of any such instrument shall be conditioned upon receipt of such instruments from all Trustees hereunder.

 

Notwithstanding the satisfaction and discharge of this Indenture, any obligations of the Company under Sections 305, 306, 607 and 701 and the last paragraph of Section 1003, and of the Trustee under Sections 403 and the last two paragraphs of Section 1003, shall survive such satisfaction and discharge.

 

SECTION 403              Application of Trust Money.

 

Subject to the provisions of the last two paragraphs of Section 1003, all money and obligations deposited with the Trustee pursuant to Section 401 shall be held irrevocably in trust and shall be made under the terms of an escrow trust agreement in form and substance satisfactory to the Trustee.  Such money and obligations shall be applied by the Trustee, in accordance with the provisions of the Securities, this Indenture and such escrow trust agreement, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal of (and premium, if any) and interest, if any, on the Securities for the payment of which such money and obligations have been deposited with the Trustee (but such money need not be segregated from other funds except to the extent required by law).  If Securities of any series are to be redeemed prior to their Stated Maturity, whether pursuant to any optional redemption provisions or in accordance with any mandatory sinking fund requirement, the Company shall make such arrangements as are satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company.

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501              Events of Default.

 

“Event of Default,” wherever used herein with respect to Securities of any series, means any one of the following events unless it is either inapplicable to a particular series or it is 

 

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specifically deleted or modified in the manner contemplated in Section 301 (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(1)                                 default in the payment of any interest upon any Security of that series when it becomes due and payable, and continuance of such default for a period of 30 days; or

 

(2)                                 default in the payment of the principal of (or premium, if any, on) any Security of that series at its Maturity; or

 

(3)                                 default in the deposit of any sinking fund payment, when and as due by the terms of a Security of that series, which default shall have continued unremedied for a period of 30 days; or

 

(4)                                 default in the performance, or breach, of any covenant or agreement of the Company in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has expressly been included in this Indenture solely for the benefit of series of Securities other than that series), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(5)                                 the Company pursuant to or within the meaning of any Bankruptcy Law:

 

(A)                               commences a voluntary case,

 

(B)                               consents to the entry of an order for relief against it in an involuntary case,

 

(C)                               consents to the appointment of a Custodian of it or for all or substantially all of its property, or

 

(D)                               makes a general assignment for the benefit of its creditors; or

 

(6)                                 a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A)                               is for relief against the Company in an involuntary case;

 

(B)                               appoints a Custodian of the Company or for all or substantially all of its property, or

 

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(C)          orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 90 days.

 

The term “Bankruptcy Law” means Title 11 of the U.S. Code or any similar Federal or State law for the relief of debtors.  The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(7)           any other Event of Default provided with respect to the Securities of that series pursuant to Section 301 or in a supplemental indenture.

 

SECTION 502              Acceleration of Maturity; Rescission and Annulment.

 

Except as otherwise provided as contemplated by Section 301 with respect to any series of Securities, if an Event of Default (other than an Event of Default specified in Section 501(5) or 501(6)) with respect to Securities of any series at the time Outstanding occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that series may declare the principal amount (or, if the Securities of that series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) of all of the Securities of that series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified portion) shall become immediately due and payable.  If an Event of Default specified in Section 501(5) or 501(6) occurs and is continuing, then in every such case, the principal amount of all of the Securities of that series then Outstanding shall automatically, and without any declaration or any other action on the part of the Trustee or any Holder, become due and payable immediately.

 

Upon payment of such amount, all obligations of the Company in respect of the payment of principal of the Securities of such series shall terminate.

 

At any time after such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the Outstanding Securities of that series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if:

 

(1)                                 the Company has paid or deposited with the Trustee a sum sufficient to pay

 

(A)                               all overdue interest, if any, on all Securities of that series,

 

(B)                               the principal of (and premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in such Securities,

 

(C)                               to the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates, if any, prescribed therefor in such Securities, and

 

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(D)          all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and

 

(2)           all Events of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured, or waived as provided in Section 513.

 

No such rescission shall affect any subsequent default or impair any right consequent thereon.

 

SECTION 503              Collection of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if:

 

(1)           default is made in the payment of any interest on any Security of any series when such interest becomes due and payable and such default continues for a period of 30 days, or

 

(2)           default is made in the payment of the principal of (or premium, if any, on) any Security of any series at the Maturity thereof, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of Securities of such series, the whole amount then due and payable on Securities of such series for principal (and premium, if any) and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal (and premium, if any) and on any overdue interest, at the rate or rates, if any, prescribed therefor in such Securities; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

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SECTION 504              Trustee May File Proofs of Claim.

 

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration of acceleration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

 

(i)            to file and prove a claim for the whole amount of principal (or with respect to Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities), and premium, if any and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and

 

(ii)           to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607.  Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

SECTION 505              Trustee May Enforce Claims Without Possession of Securities.

 

All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

SECTION 506              Application of Money Collected.

 

Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, upon presentation of the

 

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Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

FIRST: To the payment of all amounts due the Trustee under Section 607;

 

SECOND: To the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest, if any, on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium, if any) and interest, if any, respectively; and

 

THIRD: The balance, if any, to the Company, its successor or assigns or as a court of competent jurisdiction may direct.

 

SECTION 507              Limitation on Suits.

 

No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

 

(1)           An Event of Default shall have occurred and be continuing with respect to the Securities of that series and such Holder shall have previously given written notice thereof to the Trustee;

 

(2)           the Holders of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

(3)           such Holder or Holders have offered to the Trustee reasonable indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(4)           the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

(5)           no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities of that series;

 

it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder or to obtain or to seek to obtain priority or preference over any other Holder or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all Holders of Securities of such series.

 

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SECTION 508              Unconditional Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in 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 (subject to Section 307) interest, if any, on such Security on the Stated Maturity or Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

SECTION 509              Restoration of Rights and Remedies.

 

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

SECTION 510              Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

SECTION 511              Delay or Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

SECTION 512              Control by Holders.

 

The Holders of a majority in principal amount of the Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such series, provided that

 

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(1)           such direction shall not be in conflict with any rule of law or with this Indenture,

 

(2)           the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction,

 

(3)           such direction is not unduly prejudicial to the rights of other Holders, and

 

(4)           such direction would not involve the Trustee in personal liability.

 

SECTION 513              Waiver of Past Defaults.

 

The Holders of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such series waive any past default hereunder with respect to such series and its consequences, except a default

 

(1)           in the payment of the principal of (or premium, if any) or interest, if any (subject to the provisions of Section 502), on any Security of such series, or

 

(2)           in respect of a covenant or provision hereof which under Article Nine cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series affected.

 

Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of the Securities of such series under this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

 

SECTION 514              Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees at trial and on appeal, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities of any series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security on or after the Stated Maturity or Maturities expressed in such Security (or, in the case of redemption, on or after the Redemption Date).

 

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ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601              Certain Duties and Responsibilities.

 

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

 

(1)           the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(2)           in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificate or opinion which by any provision hereof is specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not it conforms to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(b)           In case an Event of Default has occurred and is continuing, 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 man would exercise or use under the circumstances in the conduct of his own affairs.

 

(c)           No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that

 

(1)           this Subsection shall not be construed to limit the effect of Subsection (a) of this Section;

 

(2)           the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

 

(3)           the Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in principal amount of the Outstanding Securities of any series, as provided in Section 512, relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series; and

 

(4)           No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable

 

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grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

 

(d)           Whether or not herein expressly so provided, every provision of this Indenture relating to the conduct of or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section.

 

SECTION 602              Notice of Defaults.

 

Within 90 days after the occurrence of any default hereunder with respect to the Securities of any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as their names and addresses appear in the Security Register, notice of such default hereunder actually known to a Responsible Officer of the Trustee, unless such default shall have been cured or waived; provided, however, that except in the case of a default in the payment of the principal of (or premium, if any) or interest, if any, on any Security of such series, in the payment of any sinking fund installment with respect to Securities of such series or in the payment of the Redemption Price of any Securities as to which notice of redemption has been given, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders of Securities of such series; and provided, further, that in the case of any default of the character specified in Section 501(4) with respect to Securities of such series, no such notice to Holders shall be given until at least 60 days after the occurrence thereof.  For the purpose of this Section, the term “default” means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such series.

 

SECTION 603              Certain Rights of Trustee.

 

Subject to the provisions of Section 601:

 

(a)           the Trustee may rely conclusively and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

(b)           any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

 

(c)           whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s Certificate;

 

(d)           the Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection

 

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in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(e)           the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;

 

(f)            the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, 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;

 

(g)           the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney, including any Authenticating Agent, appointed with due care by it hereunder;

 

(h)           the Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

 

(i)            the Trustee shall not be charged with knowledge of any Event of Default with respect to the Securities of any series for which it is acting as Trustee unless either (1) a Responsible Officer of the Trustee assigned to the Corporate Trust Office of the Trustee (or any successor division or department of the Trustee) shall have actual knowledge of the Event of Default or (2) written notice of such Event of Default shall have been received by the Trustee by the Company, any other obligor on such Securities or by any Holder of such Securities and such written notice references the Securities and the Indenture;

 

(j)            in no event shall the Trustee be responsible or liable for special, indirect, 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;

 

(k)           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; and

 

(l)            the Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

 

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SECTION 604              Not Responsible for Recitals or Issuance of Securities.

 

The recitals contained herein and in the Securities, except certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.  Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds thereof.

 

SECTION 605              May Hold Securities.

 

The Trustee, any Authenticating Agent, any Paying Agent, the Security Registrar or any other agent of the Company or the Trustee, in their individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 608 and 612, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

 

SECTION 606              Money Held in Trust.

 

Money held by the Trustee or any Paying Agent in trust hereunder need not be segregated from other funds except to the extent required by law.  Neither the Trustee nor any Paying Agent shall be subject to any liability for interest on any money received by it hereunder except as otherwise agreed with the Company.

 

SECTION 607              Compensation and Reimbursement.

 

The Company agrees:

 

(1)           to pay to the Trustee from time to time reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

 

(2)           except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence, bad faith or willful misconduct; and

 

(3)           to indemnify the Trustee and its agents and any predecessor Trustee and their agents for, and to hold them harmless against, any loss, liability, claim, damage or expense incurred without negligence, bad faith or willful misconduct on their part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties hereunder or in connection with enforcing the provisions of this Section.

 

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As security for the performance of the obligations of the Company under this Section, the Trustee shall have a lien prior to the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal (or premium, if any) or interest, if any, on Securities.

 

The provisions of this Section 607 shall survive the resignation or removal of the Trustee or the termination or discharge of this Indenture.  When the Trustee incurs expenses after the occurrence of a default specified in Section 501(5) or (6) the expenses are intended to constitute expenses of administration under any Bankruptcy Law.

 

SECTION 608              Corporate Trustee Required; Eligibility; Conflicting Interests.

 

This Indenture shall always have a Trustee who satisfies the requirements of Trust Indenture Act Sections 310(a)(1), (2) and (5) in every respect.  The Trustee (or in the case of a Trustee that is a Person included in a bank holding company system, the related bank holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition.  The Trustee shall comply with Trust Indenture Act Section 310(b), including the provision in Section 310(b)(1).  In addition, if the Trustee is a Person included in a bank holding company system, the Trustee, independently of such bank holding company, shall meet the capital requirements of Trust Indenture Act Section 310(a)(2).  If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 608, it shall resign immediately in the manner and with the effect specified in this Article Six.

 

SECTION 609              Resignation and Removal; Appointment of Successor.

 

(a)           No resignation or removal of the Trustee and no appointment of a successor Trustee or Trustees pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee or Trustees in accordance with the applicable requirements of Section 610.

 

(b)           The Trustee may resign at any time with respect to the Securities of one or more series by notifying the Company in writing at least 90 days in advance of such resignation.  If the instrument of acceptance by a successor Trustee required by Section 610 shall not have been delivered to the Trustee within 60 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction at the expense of the Company for the appointment of a successor Trustee with respect to the Securities of such series.

 

(c)           The Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee and to the Company.

 

(d)           If at any time the Trustee shall fail to comply with Section 608 after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, the Company by a Board Resolution may remove the Trustee with respect to the Securities of such series or, subject to Section 514, any Holder who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction at the expense of the 

 

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Company for the removal of the Trustee with respect to the Securities of such series and the appointment of a successor Trustee.

 

(e)           If at any time:

 

(1)           the Trustee shall cease to be eligible under Section 608 and shall fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

 

(2)           the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

 

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee with respect to all Securities, or (ii) subject to Section 514, any holder who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees.

 

(f)            If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities of one or more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series) and shall comply with the applicable requirements of Section 610.  If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 610, become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company with respect to such series.  If no successor Trustee with respect to the Securities of any series shall have been so appointed by the Company or the Holders of the Securities of such series and accepted appointment in the manner required by Section 610, any Holder who has been a bona fide holder of a Security of such series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

 

(g)           The Company shall give notice of each resignation and each removal of the Trustee with respect to the securities of any series and each appointment of a successor Trustee with respect to the Securities of any series by mailing written notice of such event by first-class mail, postage prepaid, to all Holders of Securities of such series as their names and addresses appear in the Security Register.  Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office.

 

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SECTION 610              Acceptance of Appointment by Successor.

 

(a)           In case of the appointment hereunder of a successor Trustee with respect to all series of Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges due pursuant to Section 607, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder subject to the lien provided in Section 607.

 

(b)           In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all series of Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities or that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or these series to which the appointment of such successor Trustee relates.

 

(c)           Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.

 

(d)           No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article.

 

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SECTION 611              Merger, Conversion, Consolidation or Succession to Business.

 

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto.  In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.

 

SECTION 612              Preferential Collection of Claims Against Company.

 

The Trustee shall comply with Trust Indenture Act Section 311(a), excluding any creditor relationship listed in Trust Indenture Act Section 311(b).  A Trustee who has resigned or been removed shall be subject to Trust Indenture Act Section 311(a) to the extent indicated therein.

 

SECTION 613              Appointment of Authenticating Agent.

 

At any time when any of the Securities remain Outstanding the Trustee may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate and deliver Securities of such series with respect to which it has been so designated, and Securities so authenticated and delivered shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.

 

Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent.  Each Authenticating Agent shall be acceptable to the Company and shall at all times be a bank or trust company or corporation organized and doing business and in good standing under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by Federal, State or District of Columbia authority.  If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section.

 

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Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible under this section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating Agent may resign with respect to one or more series of Securities at any time by giving written notice thereof to the Trustee and to the Company.  The Trustee may at any time terminate the agency of an Authenticating Agent with respect to one or more series of Securities by giving written notice thereof to such Authenticating Agent and to the Company.  Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all holders of Securities of the series with respect to which such Authenticating Agent will serve, as their names and addresses appear in the Security Register.  Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent.  No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

 

The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section.  The provisions of Sections 104, 111, 603, 604 and 605 shall be applicable to any Authenticating Agent.

 

Pursuant to each appointment made under this Section, the Securities of each series covered by such appointment may have endorsed thereon, in lieu of the Trustee’s certificate of authentication, an alternate certificate of authentication in substantially the following form:

 

This is one of the Securities, of the series designated herein, issued under the within-mentioned Indenture.

 

 

	
 
    	
 
    	
 
    	
[                                  ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
[
    
	
 
    	
 
    	
 
    	
 
    	
as Authenticating Agent
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
[
    
	
 
    	
 
    	
 
    	
 
    	
Authorized Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    	
 
    

 

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ARTICLE SEVEN

 

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION 701              Holder 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 Holders of each series of Securities.  If the Trustee is not the Securities Registrar, the Company shall furnish to the Trustee as of each regular record date for the payment of interest on the Securities of a series and before each related Interest Payment Date, and at such other times as the Trustee may 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 Holders of each series of Securities.

 

SECTION 702              Communications by Holders with Other Holders.

 

Holders of any series may communicate pursuant to Trust Indenture Act Section 312(b) with other Holders of that series or any other series with respect to their rights under this Indenture or the Securities of that series or any other series.  The Company, the Trustee, the Securities Registrar and any other Person shall have the protection of Trust Indenture Act Section 312(c).

 

SECTION 703              Reports by Trustee.

 

(a)           If and to the extent required by the Trust Indenture Act, within 60 days after May 1 of each year commencing with the May 1 following the date of this Indenture, if and so long as any Securities are Outstanding hereunder, the Trustee shall transmit by mail to all Holders, as their names and addresses appear in the Security Register, a brief report dated as of such May 1 that complies with Trust Indenture Act Section 313(a).  The Trustee shall also comply with Trust Indenture Act Sections 313(b) and 313(c).

 

(b)           A copy of any such report required to be sent under Section 703(a) shall, at the time of such transmission to Holders, be filed by the Trustee, with each securities exchange upon which any Securities of that series are listed, with the Commission and with the Company.  The Company will notify the Trustee when any Securities of any series are listed on any securities exchange or any delisting thereof, and the Trustee shall comply with Trust Indenture Act Section 313(d).

 

SECTION 704              Reports by Company.

 

The Company shall file with the Trustee and the Commission, and transmit to Holders, such information, documents and other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided in the Trust Indenture Act; provided that, unless available on the Commission’s EDGAR database, any such information, documents or reports required to be filed with the Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, shall be filed with the Trustee within 30 days after the same is filed with the SEC.

 

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

 

ARTICLE EIGHT

 

SUCCESSOR CORPORATION

 

SECTION 801              Limitation on Consolidation, Merger and Sale of Assets.

 

Except as otherwise provided as contemplated by Section 301 with respect to any series of Securities, the Company will not consolidate with any other entity or accept a merger of any other entity into the Company or permit the Company to be merged into any other entity, or sell other than for cash or lease all or substantially all its assets to another entity, or purchase all or substantially all the assets of another entity, unless (i) either the Company shall be the continuing entity, or the successor, transferee or lessee entity (if other than the Company) shall be organized and existing under the laws of the United States of America, any state thereof or the District of Columbia and shall expressly assume, by indenture supplemental hereto, executed and delivered by such entity prior to or simultaneously with such consolidation, merger, sale or lease, the due and punctual payment of the principal of and interest and premium, if any, on all the Securities, according to their tenor, and the due and punctual performance and observance of all other obligations to the Holders and the Trustee under this Indenture or under the Securities to be performed or observed by the Company; and (ii) immediately after such consolidation, merger, sale, lease or purchase the Company or the successor, transferee or lessee entity (if other than the Company) would not be in Default in the performance of any covenant or condition of this Indenture.  A purchase by a Subsidiary of all or substantially all of the assets of another entity shall not be deemed to be a purchase of such assets by the Company.

 

For the avoidance of doubt, the foregoing provisions shall not be deemed to require the assumption of Securities of a series if the terms thereof established in accordance with Section 301 provide for their redemption or purchase in the event of a transaction described in this Section 801.

 

SECTION 802              Successor Person Substituted.

 

Upon any consolidation with or merger into any other entity, or any sale other than for cash, or any conveyance or lease of all or substantially all of the assets of the Company in accordance with Section 801 above, the successor entity formed by such consolidation or into or with which the Company is merged or to which the Company is sold or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor entity had been named as the Company herein, and thereafter, except in the case of a lease, the predecessor Company shall be relieved of all obligations and covenants under this Indenture and the Securities, and from time to time such entity may exercise each and every right and power of the Company under this Indenture, in the name of the Company, or in its own name; 

 

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and any act or proceeding by any provision of this Indenture required or permitted to be done by the Board of Directors or any officer of the Company may be done with like force and effect by the like board or officer of any entity that shall at the time be the successor of the Company hereunder.  In the event of any such sale or conveyance, but not any such lease, the Company (or any successor entity which shall theretofore have become such in the manner described in Section 801 above) shall be discharged from all obligations and covenants under this Indenture and the Securities and may thereupon be dissolved and liquidated.

 

ARTICLE NINE

 

SUPPLEMENTAL INDENTURES

 

SECTION 901              Supplemental Indentures Without Consent of Holders.

 

Except as otherwise provided as contemplated by Section 301 with respect to any series of Securities, without the consent of any Holder, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes:

 

(1)           to evidence the succession of another corporation to the Company and the assumption by any such successor of the covenants of the Company herein and in the Securities; or

 

(2)           to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company; provided, however, that in respect of any such additional covenant, such supplemental indenture may provide for a particular period of grace after default in the performance of such covenant (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon such default; or

 

(3)           to add any additional Events of Default; or

 

(4)           to add to or change any of the provisions of this Indenture to provide, change or eliminate any restrictions on the payment of principal of or premium, if any, on the Securities; provided that any such action shall not adversely affect the interests of the Holders of Securities of any series in any material respect; or

 

(5)           to add to or change or eliminate any of the provisions of this Indenture to the extent as shall be necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not registrable as to principal, and with or without interest coupons; or

 

(6)           to change or eliminate any of the provisions of this Indenture, provided that any such change or elimination shall become effective only when there is no Security Outstanding of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision; or

 

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(7)           to secure the Securities; or

 

(8)           to establish the form or terms of Securities of any series as permitted by Sections 201 and 301; or

 

(9)           to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 610(b); or

 

(10)         to add guarantors or co-obligors with respect to any series of Securities or to release guarantors from their guarantees of Securities in accordance with the terms of the applicable series of Securities; or

 

(11)         to provide for uncertificated securities in addition to certificated securities;

 

(12)         to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities; provided that any such action shall not adversely affect the interests of the Holders of Securities of such series or of any other series of Securities; or

 

(13)         to prevent the authentication and delivery of additional series of Securities; or

 

(14)         to add to or change or eliminate any provision of this Indenture as shall be necessary or desirable in accordance with any amendments to the Trust Indenture Act; or

 

(15)         to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Indenture, provided such action shall not adversely affect the interests of the Holders of Securities of any series in any material respect.

 

SECTION 902              Supplemental Indentures with Consent of Holders.

 

With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series (each such series voting as a separate class) affected by such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the Company and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security affected thereby,

 

(1)           change the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate of

 

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interest thereon or any premium payable upon the redemption thereof, or modify the manner of determination of the rate of interest thereon so as to affect adversely the interest of such Holder or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any Place of Payment where, or the coin or currency in which, any Security or any premium or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or

 

(2)           reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture, or

 

(3)           modify any of the provisions of this Section, Section 513 or Section 1006, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby, provided, however, that this clause shall not be deemed to require the consent of any Holder with respect to changes in the references to the “Trustee” and concomitant changes in this Section and Section 1006, or the deletion of this proviso, in accordance with the requirements of Sections 610(b) and 901(8).

 

A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series.

 

The Trustee may in its discretion determine whether or not any Securities would be affected by any supplemental indenture and any such determination shall be conclusive upon the Holders of all Securities of any series.  The Trustee shall not be liable for any such determination made in good faith.

 

It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.

 

SECTION 903              Execution of Supplemental Indentures.

 

Upon the request of the Company, accompanied by the Officer’s Certificate and Opinion of Counsel required by Section 102 and stating that the supplemental indenture is authorized and permitted by the Indenture and evidence reasonably satisfactory to the Trustee of consent of the Holders if the supplemental indenture is to be executed pursuant to Section 902, the Trustee shall join with the Company in the execution of said supplemental indenture unless said supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated

 

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to, enter into said supplemental indenture.  The Trustee shall be fully protected in relying upon such Officer’s Certificate and an Opinion of Counsel.

 

SECTION 904              Effect of Supplemental Indentures.

 

Upon the execution of any supplemental indenture pursuant to the provisions of this Article, this Indenture shall, with respect to such series, be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the Holders of Securities of the series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture, with respect to such series, shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

SECTION 905              Conformity with Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act of 1939, as amended, in effect on such date.

 

SECTION 906              Reference in Securities to Supplemental Indentures.

 

Securities of any series, affected by a supplemental indenture, authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities of any series so modified as to conform, in the opinion of the Board of Directors, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee or any Authenticating Agent in exchange for Outstanding Securities of such series.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 1001           Payment of Principal, Premium and Interest.

 

The Company covenants and agrees that it will duly and punctually pay the principal of (and premium, if any) and interest, if any, on the Securities of each series in accordance with the terms of the Securities of such series and this Indenture.

 

SECTION 1002           Maintenance of Office or Agency.

 

The Company will cause to be maintained in each Place of Payment for any series of Securities an office or agency where Securities of that series may be presented or surrendered for payment, where Securities of that series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be served.  The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  With

 

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respect to the Securities of any series such office or agency and each Place of Payment shall be as specified as contemplated in Section 301.  In the absence of any such provisions with respect to the Securities of any series (i) the place of payment for such securities shall be Chicago, Illinois, and (ii) such office or agency in such Place of Payment shall be the Corporate Trust Office of the Trustee therein.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

 

The Company may also from time to time designate one or more other offices or agencies (in or outside Chicago, Illinois) where the Securities of one or more series 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 the Company of its obligation to maintain an office or agency in each place of Payment for Securities of any series for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such office or agency.

 

SECTION 1003           Money for Securities Payments to Be Held in Trust.

 

If the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of (and premium, if any) or interest, if any, on any of the Securities of that series, segregate and hold in trust for the benefit of the persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest, if any, so becoming due until such sums shall be paid to such persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act.

 

Whenever the Company shall have one or more Paying Agents for any series of Securities, it will, on or before each due date of the principal of (and premium, if any) or interest, if any, on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest, if any, so becoming due, such sum to be held in trust for the benefit of the persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

 

The Company will cause each Paying Agent other than the Trustee for any series of Securities to execute and deliver to the Trustee an instrument in which such paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:

 

(1)           hold all sums held by it as agent for the payment of the principal of (and premium, if any) or interest, if any, on Securities of that series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

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(2)           give the Trustee written notice within three Business Days of any default by the Company (or any other obligor upon the Securities of that series) in the making of any payment of principal (and premium, if any) or interest, if any, on the Securities of that series; and

 

(3)           at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

 

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any paying Agent to the Trustee, such paying agent shall be released from all further liability with respect to such money.  Upon the satisfaction and discharge of the indebtedness in respect of all Outstanding Securities of any series all sums then held by any Paying Agent (other than the Trustee) in respect thereof shall, upon demand of the Company, be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall be released from all further liability with respect to such money.

 

The Trustee and any Paying Agent shall promptly pay to the Company upon Company Request any money or securities held by them at any time in excess of amounts necessary to satisfy amounts payable to the Holders, the Trustee and the Paying Agent.

 

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and premium, if any) or interest, if any, on any Security of any series and remaining unclaimed for two years after such principal (and premium, if any) or interest, if any, has become due and payable shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in each Place of Payment with respect to Securities of such series, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Company.

 

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SECTION 1004           Statement as to Compliance.

 

The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, an Officer’s Certificate which complies with Trust Indenture Act Section 314(a)(4) and need not comply with Section 102 hereof, stating as to each signer thereof that

 

(1)           a review of the activities of the Company during such year and of performance under this Indenture has been made under his supervision, and

 

(2)           as of the end of such year and at the date of the certificate to the best of his knowledge, based on such review, (a) the Company is not in default in the fulfillment of any of its obligations under this Indenture, or specifying each such default known to him and the nature and status thereof and (b) no event has occurred and is continuing which is or after notice or lapse of time or both would become an Event of Default, or, if such an event has occurred and is continuing, specifying each such event known to him and the nature and status thereof.

 

SECTION 1005           Waiver of Certain Covenants.

 

Except as otherwise provided as contemplated by Section 301 with respect to any series of Securities, the Company may omit in any particular instance to comply with any covenant or condition set forth in Sections 1002 to 1004, each inclusive, or a supplemental indenture with respect to the Securities of any series if before the time for such compliance the Holders of at least a majority in principal amount of the Outstanding Securities of such series shall, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee with respect to any such covenant or condition shall remain in full force and effect.

 

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 1101           Applicability of Article.

 

Securities of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 301 for Securities of any series) in accordance with this Article.

 

SECTION 1102           Election to Redeem; Notice to Trustee.

 

The election of the Company to redeem any Securities shall be evidenced by a Board Resolution.  In case of any redemption at the election of the Company of less than all the Securities of any series, the Company shall, at least 30 days (unless a shorter notice shall be satisfactory to the Trustee) prior to the Redemption Date fixed by the Company, notify the Trustee in writing of such Redemption Date and of the principal amount of Securities of such

 

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series to be redeemed.  In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with such restriction.  Any such notice may be canceled at any time prior to notice of such redemption being mailed to any Holder, and shall thereby be void and of no effect.

 

SECTION 1103           Selection by Trustee of Securities to be Redeemed.

 

If less than all the Securities of any series are to be redeemed, the particular Securities to be redeemed shall be selected by the Trustee not more than 30 days prior to the Redemption Date, from the Outstanding Securities of such series not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and in accordance with the Depositary’s policies and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series.  In any case where Securities of such series are registered in the same name, the Trustee in its discretion may treat the aggregate principal amount so registered as if it were represented by one Security of such series.  If the Securities of any series to be redeemed consist of Securities having different Stated Maturities or different rates of interest (or methods of computing interest), then the Company may, by written notice to the Trustee, direct that the Securities of such series to be redeemed shall be selected from among groups of such Securities having specified Stated Maturities or rates of interest (or methods or computing interest) and the Trustee shall thereafter select the particular Securities to be redeemed in the manner set forth above from among the groups of such Securities so specified.

 

The Trustee shall promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Securities selected, in accordance with the Depositary’s rules and regulations, for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed.

 

SECTION 1104           Notice of Redemption.

 

Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at his address appearing in the Security Register.

 

All notices of redemption shall state;

 

(1)           the Redemption Date,

 

(2)           the Redemption Price,

 

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(3)           if less than all the Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the particular Securities to be redeemed,

 

(4)           in case any Security is to be redeemed in part only, the notice which relates to such Security shall state that on and after the Redemption Date, upon surrender of such Security, the Holder will receive, without charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed,

 

(5)           that on the Redemption Date, the Redemption Price will become due and payable upon each such Security to be redeemed and, if applicable, that interest thereon will cease to accrue on and after said date unless the Company defaults in making the redemption payment,

 

(6)           the place or places where such Securities are to be surrendered for payment of the Redemption Price,

 

(7)           that the redemption is for a sinking fund, if such is the case,

 

(8)           the CUSIP number, if any, printed on the Securities being redeemed, and

 

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

 

Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company, provided the Company gives the notice information to the Trustee, in writing.  In the case of redemptions by the Company of Global Securities, the Company shall, at least 30 days prior to the Redemption Date, notify the Depositary (with a copy to the Trustee) of such redemption.

 

SECTION 1105           Deposit of Redemption Price.

 

On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities which are to be redeemed on that date.

 

SECTION 1106           Securities Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest.  Upon surrender of any such Security for redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price, together with accrued interest to the

 

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Redemption Date; provided, however, that installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Regular Record Date according to their terms and the provisions of Section 307.

 

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at the rate prescribed therefor in the Security.

 

SECTION 1107           Securities Redeemed in Part.

 

Any security which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series, of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered; provided, however, that the Depositary need not surrender Global Securities for a partial redemption and may be authorized to make a notation on such Global Security of such partial redemption.  In the case of a partial redemption of the Global Securities, the Depositary, and in turn, the participants in the Depositary, shall have the responsibility to select any Securities to be redeemed by random lot.

 

ARTICLE TWELVE

 

SINKING FUNDS

 

SECTION 1201           Applicability of Article.

 

The provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of a series except as otherwise specified as contemplated by Section 301 for Securities of such series.

 

The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202.  Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.

 

SECTION 1202           Satisfaction of Sinking Fund Payments with Securities.

 

The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any series required to be made pursuant to the terms of such Securities as provided for by the terms of such series (1) deliver Outstanding Securities of such series (other than any previously called for redemption) and (2) apply as a credit Securities of

 

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such series which have been redeemed either at the election of the Company pursuant to the terms of such series of Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case, provided that such Securities have not been previously so credited.  Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

 

SECTION 1203           Redemption of Securities for Sinking Fund.

 

Not less than 45 days prior to each sinking fund payment date for any series of Securities, the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities of that series pursuant to Section 1202, and the amount of any optional sinking fund payment to be added to the next ensuing sinking fund payment, and will also deliver to the Trustee any Securities to be so delivered.  If such Officer’s Certificate shall specify an optional amount to be added in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be obligated to pay the amount therein specified.  Not less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 1103 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 1104.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 1106 and 1107.

 

ARTICLE THIRTEEN

 

REPAYMENT AT THE OPTION OF HOLDERS

 

SECTION 1301           Applicability of Article.

 

Securities of any series which are repayable at the option of the Holders thereof before their Stated Maturity shall be repaid in accordance with the terms of the Securities of such series.  The repayment of any principal amount of Securities pursuant to such option of the Holder to require repayment of Securities before their Stated Maturity, for purposes of Section 309, shall not operate as a payment, redemption or satisfaction of the indebtedness represented by such Securities unless and until the Company, at its option, shall deliver or surrender the same to the Trustee with a directive that such Securities be cancelled.  Notwithstanding anything to the contrary contained in this Section 1301, in connection with any repayment of Securities, the Company may arrange for the purchase of any Securities by an agreement with one or more investment bankers or other purchasers to purchase such Securities by paying to the Holders of such Securities on or before the close of business on the repayment date an amount not less than the repayment price payable by the Company on repayment of such Securities, and the obligation of the Company to pay the repayment price of such Securities shall be satisfied and discharged to the extent such payment is so paid by such purchasers to the respective Holders thereof.

 

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* * *

 

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

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

 

 

	
 
    	
 
    	
PHH CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

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