Document:

Exhibit 4.2

 

SENSEONICS HOLDINGS, INC.,
 Issuer,

 

ANY SUBSIDIARY GUARANTORS PARTY HERETO,

as Subsidiary Guarantors,

 

AND

 

[TRUSTEE],
 Trustee

 

 

INDENTURE

 

Dated as of [·], 20  

 

 

Debt Securities

 

 

TABLE OF CONTENTS

 

	
 
    	
PAGE
    
	
 
    	
 
    
	
ARTICLE 1
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.01
    	
Definitions of Terms
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
ISSUE, DESCRIPTION,   TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
    	
5
    
	
 
    	
 
    	
 
    
	
Section 2.01
    	
Designation and Terms   of Securities
    	
5
    
	
 
    	
 
    	
 
    
	
Section 2.02
    	
Form of Securities   and Trustee’s Certificate
    	
8
    
	
 
    	
 
    	
 
    
	
Section 2.03
    	
Denominations:   Provisions for Payment
    	
8
    
	
 
    	
 
    	
 
    
	
Section 2.04
    	
Execution and   Authentications
    	
10
    
	
 
    	
 
    	
 
    
	
Section 2.05
    	
Registration of   Transfer and Exchange
    	
10
    
	
 
    	
 
    	
 
    
	
Section 2.06
    	
Temporary Securities
    	
11
    
	
 
    	
 
    	
 
    
	
Section 2.07
    	
Mutilated, Destroyed,   Lost or Stolen Securities
    	
12
    
	
 
    	
 
    	
 
    
	
Section 2.08
    	
Cancellation
    	
12
    
	
 
    	
 
    	
 
    
	
Section 2.09
    	
Benefits of Indenture
    	
13
    
	
 
    	
 
    	
 
    
	
Section 2.10
    	
Authenticating Agent
    	
13
    
	
 
    	
 
    	
 
    
	
Section 2.11
    	
Global Securities
    	
13
    
	
 
    	
 
    	
 
    
	
Section 2.12
    	
CUSIP Numbers
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
REDEMPTION OF   SECURITIES AND SINKING FUND PROVISIONS
    	
15
    
	
 
    	
 
    	
 
    
	
Section 3.01
    	
Redemption
    	
15
    
	
 
    	
 
    	
 
    
	
Section 3.02
    	
Notice of Redemption
    	
15
    
	
 
    	
 
    	
 
    
	
Section 3.03
    	
Payment Upon Redemption
    	
16
    
	
 
    	
 
    	
 
    
	
Section 3.04
    	
Sinking Fund
    	
16
    
	
 
    	
 
    	
 
    
	
Section 3.05
    	
Satisfaction of Sinking   Fund Payments with Securities
    	
16
    
	
 
    	
 
    	
 
    
	
Section 3.06
    	
Redemption of   Securities for Sinking Fund
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
COVENANTS
    	
17
    
	
 
    	
 
    	
 
    
	
Section 4.01
    	
Payment of Principal,   Premium and Interest
    	
17
    
	
 
    	
 
    	
 
    
	
Section 4.02
    	
Maintenance of Office   or Agency
    	
17
    
	
 
    	
 
    	
 
    
	
Section 4.03
    	
Paying Agents
    	
18
    
	
 
    	
 
    	
 
    
	
Section 4.04
    	
Appointment to Fill   Vacancy in Office of Trustee
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
SECURITYHOLDERS’ LISTS   AND REPORTS BY THE COMPANY AND THE TRUSTEE
    	
19
    
	
 
    	
 
    	
 
    
	
Section 5.01
    	
Company to Furnish   Trustee Names and Addresses of Securityholders
    	
19
    
	
 
    	
 
    	
 
    
	
Section 5.02
    	
Preservation Of   Information; Communications With Securityholders
    	
19
    
				

 

i

 

TABLE OF CONTENTS

(CONTINUED)

 

	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
Section 5.03
    	
Reports by the Company
    	
19
    
	
 
    	
 
    	
 
    
	
Section 5.04
    	
Reports by the Trustee
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
REMEDIES OF THE TRUSTEE   AND SECURITYHOLDERS ON EVENT OF DEFAULT
    	
20
    
	
 
    	
 
    	
 
    
	
Section 6.01
    	
Events of Default
    	
20
    
	
 
    	
 
    	
 
    
	
Section 6.02
    	
Collection of Indebtedness   and Suits for Enforcement by Trustee
    	
22
    
	
 
    	
 
    	
 
    
	
Section 6.03
    	
Application of Moneys   Collected
    	
23
    
	
 
    	
 
    	
 
    
	
Section 6.04
    	
Limitation on Suits
    	
24
    
	
 
    	
 
    	
 
    
	
Section 6.05
    	
Rights and Remedies   Cumulative; Delay or Omission Not Waiver
    	
24
    
	
 
    	
 
    	
 
    
	
Section 6.06
    	
Control by   Securityholders
    	
25
    
	
 
    	
 
    	
 
    
	
Section 6.07
    	
Undertaking to Pay   Costs
    	
25
    
	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
CONCERNING THE TRUSTEE
    	
25
    
	
 
    	
 
    	
 
    
	
Section 7.01
    	
Certain Duties and   Responsibilities of Trustee
    	
25
    
	
 
    	
 
    	
 
    
	
Section 7.02
    	
Certain Rights of   Trustee
    	
27
    
	
 
    	
 
    	
 
    
	
Section 7.03
    	
Trustee Not Responsible   for Recitals or Issuance or Securities
    	
28
    
	
 
    	
 
    	
 
    
	
Section 7.04
    	
May Hold   Securities
    	
29
    
	
 
    	
 
    	
 
    
	
Section 7.05
    	
Moneys Held in Trust
    	
29
    
	
 
    	
 
    	
 
    
	
Section 7.06
    	
Compensation and   Reimbursement
    	
29
    
	
 
    	
 
    	
 
    
	
Section 7.07
    	
Reliance on Officer’s   Certificate
    	
30
    
	
 
    	
 
    	
 
    
	
Section 7.08
    	
Disqualification;   Conflicting Interests
    	
30
    
	
 
    	
 
    	
 
    
	
Section 7.09
    	
Corporate Trustee   Required; Eligibility
    	
30
    
	
 
    	
 
    	
 
    
	
Section 7.10
    	
Resignation and   Removal; Appointment of Successor
    	
30
    
	
 
    	
 
    	
 
    
	
Section 7.11
    	
Acceptance of   Appointment By Successor
    	
31
    
	
 
    	
 
    	
 
    
	
Section 7.12
    	
Merger, Conversion,   Consolidation or Succession to Business
    	
32
    
	
 
    	
 
    	
 
    
	
Section 7.13
    	
Preferential Collection   of Claims Against the Company
    	
33
    
	
 
    	
 
    	
 
    
	
Section 7.14
    	
Notice of Default
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    	
CONCERNING THE   SECURITYHOLDERS
    	
33
    
	
 
    	
 
    	
 
    
	
Section 8.01
    	
Evidence of Action by   Securityholders
    	
33
    
	
 
    	
 
    	
 
    
	
Section 8.02
    	
Proof of Execution by   Securityholders
    	
34
    
	
 
    	
 
    	
 
    
	
Section 8.03
    	
Who May be Deemed   Owners
    	
34
    
	
 
    	
 
    	
 
    
	
Section 8.04
    	
Certain Securities   Owned by Company Disregarded
    	
34
    
	
 
    	
 
    	
 
    
	
Section 8.05
    	
Actions Binding on Future   Securityholders
    	
35
    
				

 

ii

 

TABLE OF CONTENTS

(CONTINUED)

 

	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
SUPPLEMENTAL INDENTURES
    	
35
    
	
 
    	
 
    	
 
    
	
Section 9.01
    	
Supplemental Indentures   Without the Consent of Securityholders
    	
35
    
	
 
    	
 
    	
 
    
	
Section 9.02
    	
Supplemental Indentures   With Consent of Securityholders
    	
36
    
	
 
    	
 
    	
 
    
	
Section 9.03
    	
Effect of Supplemental   Indentures
    	
36
    
	
 
    	
 
    	
 
    
	
Section 9.04
    	
Securities Affected by   Supplemental Indentures
    	
37
    
	
 
    	
 
    	
 
    
	
Section 9.05
    	
Execution of   Supplemental Indentures
    	
37
    
	
 
    	
 
    	
 
    
	
ARTICLE 10
    	
SUCCESSOR ENTITY
    	
37
    
	
 
    	
 
    	
 
    
	
Section 10.01
    	
Company   May Consolidate, Etc.
    	
37
    
	
 
    	
 
    	
 
    
	
Section 10.02
    	
Successor Entity   Substituted
    	
38
    
	
 
    	
 
    	
 
    
	
ARTICLE 11
    	
SATISFACTION AND   DISCHARGE
    	
38
    
	
 
    	
 
    	
 
    
	
Section 11.01
    	
Satisfaction and   Discharge of Indenture
    	
38
    
	
 
    	
 
    	
 
    
	
Section 11.02
    	
Discharge of   Obligations
    	
39
    
	
 
    	
 
    	
 
    
	
Section 11.03
    	
Deposited Moneys to be   Held in Trust
    	
39
    
	
 
    	
 
    	
 
    
	
Section 11.04
    	
Payment of Moneys Held   by Paying Agents
    	
39
    
	
 
    	
 
    	
 
    
	
Section 11.05
    	
Repayment to Company
    	
39
    
	
 
    	
 
    	
 
    
	
ARTICLE 12
    	
IMMUNITY OF INCORPORATORS,   STOCKHOLDERS, OFFICERS AND DIRECTORS
    	
40
    
	
 
    	
 
    	
 
    
	
Section 12.01
    	
No Recourse
    	
40
    
	
 
    	
 
    	
 
    
	
ARTICLE 13
    	
MISCELLANEOUS   PROVISIONS
    	
40
    
	
 
    	
 
    	
 
    
	
Section 13.01
    	
Effect on Successors   and Assigns
    	
40
    
	
 
    	
 
    	
 
    
	
Section 13.02
    	
Actions by Successor
    	
40
    
	
 
    	
 
    	
 
    
	
Section 13.03
    	
Surrender of Company   Powers
    	
41
    
	
 
    	
 
    	
 
    
	
Section 13.04
    	
Notices
    	
41
    
	
 
    	
 
    	
 
    
	
Section 13.05
    	
Governing Law; Jury   Trial Waiver
    	
41
    
	
 
    	
 
    	
 
    
	
Section 13.06
    	
Treatment of Securities   as Debt
    	
41
    
	
 
    	
 
    	
 
    
	
Section 13.07
    	
Certificates and   Opinions as to Conditions Precedent
    	
41
    
	
 
    	
 
    	
 
    
	
Section 13.08
    	
Payments on Business   Days
    	
42
    
	
 
    	
 
    	
 
    
	
Section 13.09
    	
Conflict with Trust   Indenture Act
    	
42
    
	
 
    	
 
    	
 
    
	
Section 13.10
    	
Counterparts
    	
42
    
	
 
    	
 
    	
 
    
	
Section 13.11
    	
Separability
    	
42
    
	
 
    	
 
    	
 
    
	
Section 13.12
    	
Compliance Certificates
    	
42
    
	
 
    	
 
    	
 
    
	
Section 13.13
    	
Patriot Act
    	
43
    
				

 

iii

 

TABLE OF CONTENTS

(CONTINUED)

 

	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
Section 13.14
    	
Force Majeure
    	
43
    
	
 
    	
 
    	
 
    
	
Section 13.12
    	
Table of Contents;   Headings
    	
43
    
	
 
    	
 
    	
 
    
	
ARTICLE 14
    	
SUBSIDIARY GUARANTEES
    	
43
    
	
 
    	
 
    	
 
    
	
Section 14.01
    	
Subsidiary Guarantees
    	
43
    
	
 
    	
 
    	
 
    
	
Section 14.02
    	
Limitation on   Subsidiary Guarantor Liability
    	
44
    
	
 
    	
 
    	
 
    
	
Section 14.03
    	
Execution and Delivery   of Subsidiary Guarantee
    	
45
    
	
 
    	
 
    	
 
    
	
Section 14.04
    	
Subsidiary Guarantors   May Consolidate, Etc., on Certain Terms
    	
45
    
	
 
    	
 
    	
 
    
	
Section 14.05
    	
Releases
    	
46
    
				

 

iv

 

INDENTURE

 

INDENTURE, dated as of [·], 20  , among SENSEONICS HOLDINGS, INC., a Delaware corporation (the “Company”), each of the Subsidiary Guarantors (as hereinafter defined) parties hereto and [TRUSTEE], as trustee (the “Trustee”):

 

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of debt securities (hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate of the Trustee;

 

WHEREAS, to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company and any Subsidiary Guarantor have duly authorized the execution of this Indenture; and

 

WHEREAS, all things necessary to make this Indenture a valid agreement of the Company and each Subsidiary Guarantor, if any, in accordance with its terms, have been done.

 

NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Securities:

 

ARTICLE 1

 

DEFINITIONS

 

Section 1.01                            Definitions of Terms.

 

The terms defined in this Section (except as in this Indenture or any indenture supplemental hereto otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular.  All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the Securities Act of 1933, as amended (except as herein or any indenture supplemental hereto otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.

 

“Authenticating Agent” means the Trustee or an authenticating agent with respect to all or any of the series of Securities appointed by the Trustee pursuant to Section 2.10.

 

“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

“Board of Directors” means (i) with respect to the Company, the Board of Directors (or the functional equivalent thereof) of the Company or any duly authorized committee of such Board, and (ii) with respect to a Subsidiary Guarantor, the board of directors (or the functional equivalent thereof) or any duly authorized committee thereof and, if such Subsidiary Guarantor is a limited partnership, the

 

1

 

references to the Board of Directors shall mean the Board of Directors of the general partner of the Subsidiary Guarantor.

 

“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 duly authorized committee thereof) and to be in full force and effect on the date of such certification.

 

“Business Day” means, with respect to any series of Securities, any day other than a day on which federal or state banking institutions in the Borough of Manhattan, the City of New York, or in the city of the Corporate Trust Office of the Trustee, are authorized or obligated by law, executive order or regulation to close.

 

“Capital Stock” means, for any entity, any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) stock issued by that entity, but shall not include any debt securities convertible into or exchangeable for any securities otherwise constituting Capital Stock pursuant to this definition.

 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, 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 SENSEONICS HOLDINGS, INC., a corporation duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article Ten, shall also include its successors and assigns.

 

“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which office at the date hereof is located at                                                                                                        .

 

“Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

“Defaulted Interest” has the meaning set forth in Section 2.03.

 

“Depositary” means, with respect to Securities of any series for which the Company shall determine that such Securities will be issued as a Global Security, The Depository Trust Company, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.01 or 2.11.

 

“Event of Default” means, with respect to Securities of a particular series, any event specified in Section 6.01, continued for the period of time, if any, therein designated.

 

“Exchange Act” means the United States Securities and Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

The term “given”, “mailed”, “notify” or “sent” with respect to any notice to be given to a Securityholder pursuant to this Indenture, shall mean notice (x) given to the Depositary (or its designee) pursuant to the standing instructions from the Depositary or its designee, including by electronic mail in

 

2

 

accordance with accepted practices or procedures at the Depositary (in the case of a Global Security) or (y) mailed to such Holder by first class mail, postage prepaid, at its address as it appears on the Security Register (in the case of a definitive Security).  Notice so “given” shall be deemed to include any notice to be “mailed” or “delivered,” as applicable, under this Indenture.

 

“Global Security” means a Security issued to evidence all or a part of any series of Securities which is executed by the Company and authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with the Indenture, which shall be registered in the name of the Depositary or its nominee.

 

“Governmental Obligations” means securities that are (a) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (b) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that, in either case, are not callable or redeemable at the option of the issuer thereof at any time prior to the stated maturity of the Securities, and shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

 

“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.

 

“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 in accordance with the terms hereof and shall include the terms of particular series of Securities established as contemplated by Section 2.01.

 

“Interest Payment Date”, when used with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest with respect to Securities of that series is due and payable.

 

“Officer” means, with respect to any Person, the chairman of the Board of Directors, a chief executive officer, a president, a chief financial officer, a chief operating officer, any executive vice president, any senior vice president, any vice president, the treasurer or any assistant treasurer, the controller or any assistant controller or the secretary or any assistant secretary of such Person.

 

“Officer’s Certificate” means a certificate signed by any Officer of the Company.  Each such certificate shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

 

“Opinion of Counsel” means an opinion in writing subject to customary exceptions of legal counsel, who may be an employee of or counsel for the Company or any Subsidiary Guarantor, that is delivered to the Trustee in accordance with the terms hereof.  Each such opinion shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

 

3

 

“Outstanding”, when used with reference to Securities of any series, means, subject to the provisions of Section 8.04, as of any particular time, all Securities of that series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Securities or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); provided, however, that if such Securities or portions of such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in Article Three, or provision satisfactory to the Trustee shall have been made for giving such notice; and (c) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.07.

 

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

 

“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 2.07 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.

 

“Responsible Officer” when used with respect to the Trustee means any officer within the Corporate Trust Office of the Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers 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 in each case 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.

 

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

 

“Securityholder”, “holder of Securities”, “registered holder”, or other similar term, means the Person or Persons in whose name or names a particular Security is registered on the Security Register kept for that purpose in accordance with the terms of this Indenture.

 

“Security Register” and “Security Registrar” shall have the meanings as set forth in Section 2.05.

 

“Significant Subsidiary Guarantor” means a Subsidiary of the Company that meets the definition of “significant subsidiary” in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act promulgated by the Commission as in effect on the date hereof.

 

“Subsidiary” means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, general partners or trustees thereof is at the

 

4

 

time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of such Person.

 

“Subsidiary Guarantees” means the guarantees by each Subsidiary Guarantor of the Company’s obligations under this Indenture and the Securities, as set forth in this Indenture.

 

“Subsidiary Guarantors” means, with respect to any series of Securities, the Person or Persons, if any, named in accordance with Section 2.01(a)(5) as the “Subsidiary Guarantors” (i) in or pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or (ii) in an indenture supplemental hereto establishing the terms of such series of Securities until a successor Person or Persons shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Subsidiary Guarantors” with respect to such series of Securities shall mean such successor Person or Persons, and any other Subsidiary of the Company who may execute this Indenture, or a supplement thereto, for the purpose of providing a Subsidiary Guarantee for such series of Securities pursuant to this Indenture. If a series of Securities does not have any Subsidiary Guarantors, all references in this Indenture to Subsidiary Guarantors shall be ignored with respect to such series of Securities.

 

“Trustee” means                          , and, subject to the provisions of Article Seven, shall also include its successors and assigns, and, if at any time there is more than one Person acting in such capacity hereunder, “Trustee” shall mean each such Person.  The term “Trustee” as used with respect to a particular series of the Securities shall mean the trustee with respect to that series.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

 

“U.S.A. Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, as amended and signed into law October 26, 2001.

 

“Wholly Owned Subsidiary” of any specified Person means, (a) any corporation one hundred percent of whose Capital Stock (other than directors’ qualifying shares and other nominal shares required to be held by local nationals, in each case to the extent required under applicable Legal Requirements) is at the time owned by such Person and/or one or more Wholly Owned Subsidiaries of such Person and (b) any partnership, association, joint venture, limited liability company or other entity in which such Person and/or one or more Wholly Owned Subsidiaries of such Person have a one hundred percent Capital Stock (other than directors’ qualifying shares and other nominal shares required to be held by local nationals, in each case to the extent required under applicable Legal Requirements) at such time.

 

ARTICLE 2

 

ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

 

Section 2.01                            Designation and Terms of Securities

 

(a)         The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more series up to the aggregate principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution or pursuant to one or more indentures supplemental hereto.  Prior to the initial issuance of Securities of any series, there shall be established in or pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental hereto:

 

5

 

(1)         the title of the Securities of the series (which shall distinguish the Securities of that series from all other Securities);

 

(2)         any limit upon the aggregate principal amount of the Securities of that series that 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 that series);

 

(3)         the maturity date or dates on which the principal of the Securities of the series is payable;

 

(4)         the form of the Securities of the series including the form of the certificate of authentication for such series;

 

(5)         the applicability of any Subsidiary Guarantees or any other guarantees, the identity of any such Subsidiary Guarantors and any terms of such Subsidiary Guarantee or other guarantee with respect to the Securities of the series in addition to those set forth in Article 14, or any exceptions to or changes to those set forth in Article 14;

 

(6)         whether or not the Securities will be secured or unsecured, and the terms of any secured debt;

 

(7)         whether the Securities rank as senior debt, senior subordinated debt, subordinated debt or any combination thereof, and the terms of any subordination;

 

(8)         if the price (expressed as a percentage of the aggregate principal amount thereof) at which such Securities will be issued is a price other than the principal amount thereof, the portion of the principal amount thereof payable upon declaration of acceleration of the maturity thereof, or if applicable, the portion of the principal amount of such Securities that is convertible into another security or the method by which any such portion shall be determined;

 

(9)         the interest rate or rates, which may be fixed or variable, or the method for determining the rate and the date interest will begin to accrue, the dates interest will be payable and the regular record dates for interest payment dates or the method for determining such dates;

 

(10)                          the Company’s right, if any, to defer the payment of interest and the maximum length of any such deferral period;

 

(11)                          if applicable, the date or dates after which, or the period or periods during which, and the price or prices at which, the Company may at its option, redeem the series of Securities pursuant to any optional or provisional redemption provisions and the terms of those redemption provisions;

 

(12)                          the date or dates, if any, on which, and the price or prices at which the Company is obligated, pursuant to any mandatory sinking fund or analogous fund provisions or otherwise, to redeem, or at the Securityholder’s option to purchase, the series of Securities and the currency or currency unit in which the Securities are payable;

 

(13)                          the denominations in which the Securities of the series shall be issuable, if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof;

 

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(14)                          any and all terms, if applicable, relating to any auction or remarketing of the Securities of that series and any security for the obligations of the Company with respect to such Securities and any other terms which may be advisable in connection with the marketing of Securities of that series;

 

(15)                          whether the Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities; the terms and conditions, if any, upon which such Global Security or Securities may be exchanged in whole or in part for other individual Securities; and the Depositary for such Global Security or Securities;

 

(16)                          if applicable, the provisions relating to conversion or exchange of any Securities of the series and the terms and conditions upon which such Securities will be so convertible or exchangeable, including the conversion or exchange price, as applicable, or how it will be calculated and may be adjusted, any mandatory or optional (at the Company’s option or the holders’ option) conversion or exchange features, the applicable conversion or exchange period and the manner of settlement for any conversion or exchange, which may, without limitation, include the payment of cash as well as the delivery of securities;

 

(17)                          if other than the full 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 6.01;

 

(18)                          additions to or changes in the covenants applicable to the series of Securities being issued, including, among others, the consolidation, merger or sale covenant;

 

(19)                          additions to or changes in the Events of Default with respect to the Securities and any change in the right of the Trustee or the Securityholders to declare the principal, premium, if any, and interest, if any, with respect to such Securities to be due and payable;

 

(20)                          additions to or changes in or deletions of the provisions relating to covenant defeasance and legal defeasance;

 

(21)                          additions to or changes in the provisions relating to satisfaction and discharge of this Indenture;

 

(22)                          additions to or changes in the provisions relating to the modification of this Indenture both with and without the consent of Securityholders of Securities issued under this Indenture;

 

(23)                          the currency of payment of Securities if other than U.S. dollars and the manner of determining the equivalent amount in U.S. dollars;

 

(24)                          whether interest will be payable in cash or additional Securities at the Company’s or the Securityholders’ option and the terms and conditions upon which the election may be made;

 

(25)                          the terms and conditions, if any, upon which the Company shall pay amounts in addition to the stated interest, premium, if any and principal amounts of the Securities of the series to any Securityholder that is not a “United States person” for federal tax purposes;

 

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(26)                          any restrictions on transfer, sale or assignment of the Securities of the series; and

 

(27)                          any other specific terms, preferences, rights or limitations of, or restrictions on, the Securities, any other additions or changes in the provisions of this Indenture, and any terms that may be required by us or advisable under applicable laws or regulations.

 

All Securities of any one series shall be substantially identical except as may otherwise be provided in or pursuant to any such Board Resolution or in any indentures supplemental hereto.

 

If any of the terms of the series are established by action taken pursuant to a Board Resolution of the Company, 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 of the Company setting forth the terms of the series.

 

Securities of any particular series may be issued at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest, if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable and with different redemption dates.

 

Section 2.02                            Form of Securities and Trustee’s Certificate

 

The Securities of any series and the Trustee’s certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one or more indentures supplemental hereto or as provided in a Board Resolution, and set forth in an Officer’s Certificate, and they may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which Securities of that series may be listed, or to conform to usage.

 

Section 2.03                            Denominations: Provisions for Payment

 

The Securities shall be issuable as registered Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.01(a)(13).  The Securities of a particular series shall bear interest payable on the dates and at the rate specified with respect to that series.  Subject to Section 2.01(a)(23), the principal of and the interest on the Securities of any series, as well as any premium thereon in case of redemption or repurchase thereof prior to maturity, and any cash amount due upon conversion or exchange thereof, shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained for that purpose.  Each Security shall be dated the date of its authentication.  Interest on the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.

 

The interest installment on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment.  In the event that any Security of a particular series or portion thereof is called for redemption and the redemption date is subsequent to a regular record date with

 

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respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.03.

 

Any interest on any Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (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 shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

 

(1)         The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered in the Security Register 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 such Security 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 not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be sent, to each Securityholder not less than 10 days prior to such special record date.  Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been sent as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered in the Security Register on such special record date.

 

(2)         The Company may make payment of any Defaulted Interest on any Securities 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, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

Unless otherwise set forth in a Board Resolution or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term “regular record date” as used in this Section with respect to a series of Securities and any Interest Payment Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a month, or the first day of the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.

 

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

 

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Section 2.04                            Execution and Authentications

 

The Securities shall be signed on behalf of the Company by one of its Officers.  Signatures may be in the form of a manual or facsimile signature.

 

The Company may use the facsimile signature of any Person who shall have been an Officer of the Company (at the time of execution), notwithstanding the fact that at the time the Securities shall be authenticated and delivered or disposed of such Person shall have ceased to be such an officer of the Company.  The Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage.  Each Security shall be dated the date of its authentication by the Trustee.

 

A Security shall not be valid until authenticated manually by an authorized signatory of the Trustee, or by an Authenticating Agent.  Such signature shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture.  At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication and delivery of such Securities, signed by an Officer of the Company, and the Trustee in accordance with such written order shall authenticate and deliver such Securities.

 

Upon the Company’s delivery of any such authentication order to the Trustee at any time after the initial issuance of Securities under this Indenture, the Trustee shall be provided with, and (subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be fully protected in relying upon, (1) an Opinion of Counsel or reliance letter and (2) an Officer’s Certificate stating that all conditions precedent to the execution, authentication and delivery of such Securities are in conformity with the provisions of this Indenture.

 

The Trustee shall not be required to authenticate such Securities 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 that is not reasonably acceptable to the Trustee.

 

Section 2.05                            Registration of Transfer and Exchange

 

(a)         Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such purpose, for other Securities of such series of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section.  In respect of any Securities so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Security or Securities of the same series that the Securityholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

 

(b)         The Company shall keep, or cause to be kept, at its office or agency designated for such purpose a register or registers (herein referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers of Securities as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee.  The registrar for the purpose of registering Securities and transfer of Securities as herein provided shall be appointed as authorized by Board Resolution or Supplemental Indenture (the “Security Registrar”).

 

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Upon surrender for transfer of any Security at the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented for a like aggregate principal amount.

 

The Company initially appoints the Trustee as initial Security Registrar for each series of Securities

 

All Securities presented or surrendered for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the registered holder or by such holder’s duly authorized attorney in writing.

 

(c)          Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, no service charge shall be made for any exchange or registration of transfer of Securities, or issue of new Securities in case of partial redemption of any series or repurchase, conversion or exchange of less than the entire principal amount of a Security, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer.

 

(d)         The Company and the Security Registrar shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning at the opening of business 15 days before the day of the sending of a notice of redemption of less than all the Outstanding Securities of the same series and ending at the close of business on the day of such sending, nor (ii) to register the transfer of or exchange any Securities of any series or portions thereof called for redemption or surrendered for repurchase, but not validly withdrawn, other than the unredeemed portion of any such Securities being redeemed in part or not surrendered for repurchase, as the case may be.  The provisions of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.

 

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

 

Section 2.06                            Temporary Securities

 

Pending the preparation of definitive Securities of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or typewritten) of any authorized denomination.  Such temporary Securities shall be substantially in the form of the definitive Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company.  Every temporary Security of any series shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Securities of such series.  Without unnecessary delay the Company will execute and will furnish definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to the Securityholders), at the office or agency of the Company

 

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designated for the purpose, and the Trustee shall authenticate and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until further notice from the Company.  Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

 

Section 2.07                            Mutilated, Destroyed, Lost or Stolen Securities

 

In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost or stolen.  In every case the applicant for a substituted Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership thereof.  The Trustee may authenticate any such substituted Security and deliver the same upon the written request or authorization of any officer of the Company.  Upon the issuance of any substituted Security, 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.

 

In case any Security that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.

 

Every replacement Security issued pursuant to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder.  All Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

 

Section 2.08                            Cancellation

 

All Securities surrendered for the purpose of payment, redemption, repurchase, exchange, registration of transfer or conversion shall, if surrendered to the Company or any paying agent (or any other applicable agent), be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture.  On request of the Company at the time of such surrender, the Trustee shall deliver to the Company canceled Securities held by the Trustee.  In the

 

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absence of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures and deliver a certificate of disposition to the Company.  If the Company or any Subsidiary Guarantor shall otherwise acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation.

 

Section 2.09                            Benefits of Indenture

 

Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Securities any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Securities.

 

Section 2.10                            Authenticating Agent

 

So long as any of the Securities of any series remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall have the right to appoint.  Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange, transfer or partial redemption, repurchase or conversion thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.  All references in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating Agent for such series.  Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by federal or state authorities.  If at any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.

 

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company.  The Trustee may at any time (and upon request by the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company.  Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent acceptable to the Company.  Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.

 

Section 2.11                            Global Securities

 

(a)         If the Company shall establish pursuant to Section 2.01 that the Securities of a particular series are to be issued as a Global Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding Securities of such series, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction (or if the Depositary names the Trustee as its custodian, retained by the Trustee), and (iv) shall bear a legend substantially to the following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this

 

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Security may be transferred, in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor Depositary.”

 

(b)         Notwithstanding the provisions of Section 2.05, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.05, only to another nominee of the Depositary for such series, or to a successor Depositary for such series selected or approved by the Company or to a nominee of such successor Depositary.

 

(c)          If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing under the Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, or if an Event of Default has occurred and is continuing and the Company has received a request from the Depositary or from the Trustee, this Section 2.11 shall no longer be applicable to the Securities of such series and the Company will execute, and subject to Section 2.04, the Trustee will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security.  In addition, the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the Securities of such series.  In such event the Company will execute and, subject to Section 2.04, the Trustee, upon receipt of an Officer’s Certificate evidencing such determination by the Company, will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security.  Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee.  Such Securities in definitive registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee.  The Trustee shall deliver such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.

 

Section 2.12                            CUSIP Numbers

 

The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee of any change in the “CUSIP” numbers.

 

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ARTICLE 3

 

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

 

Section 3.01                            Redemption

 

The Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section 2.01 hereof.

 

Section 3.02                            Notice of Redemption

 

(a)         In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any series in accordance with any right the Company reserved for itself to do so pursuant to Section 2.01 hereof, the Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid (or with regard to any Global Security held in book entry form, by electronic mail in accordance with the applicable procedures of the Depositary), a notice of such redemption not less than 30 days and not more than 90 days before the date fixed for redemption of that series to such Securityholders, unless a shorter period is specified in the Securities to be redeemed.  Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice.  In any case, failure duly to give such notice to the holder of any Security of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Securities of such series or any other series.  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 any such restriction.

 

Each such notice of redemption shall identify the Securities to be redeemed (including CUSIP numbers, if any), specify the date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company, upon presentation and surrender of such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue and that the redemption is from a sinking fund, if such is the case.  If less than all the Securities of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in part shall specify the particular Securities to be so redeemed.

 

In case any Security is to be redeemed in part only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Security, a new Security or Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.

 

(b)         If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 45 days’ notice (unless a shorter notice shall be satisfactory to the Trustee) in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed, and thereupon the Securities to be redeemed shall be selected, by lot, on a pro rata basis, or in such other manner as the Company shall deem appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $1,000, the Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of

 

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the Securities to be redeemed, in whole or in part.  The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by an Officer of the Company, instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or such paying agent may deem advisable.  In any case in which notice of redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the provisions of this Section.

 

Section 3.03                            Payment Upon Redemption

 

(a)         If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of the series to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to, but excluding, the date fixed for redemption and interest on such Securities or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Security or portion thereof.  On presentation and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed at the applicable redemption price for such series, together with interest accrued thereon to, but excluding, the date fixed for redemption (but if the date fixed for redemption is an Interest Payment Date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section 2.03).

 

(b)         Upon presentation of any Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Security is presented shall deliver to the Securityholder thereof, at the expense of the Company, a new Security of the same series of authorized denominations in principal amount equal to the unredeemed portion of the Security so presented.

 

Section 3.04                            Sinking Fund

 

The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01 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 3.05.  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 3.05                            Satisfaction of Sinking Fund Payments with Securities

 

The Company (i) may deliver Outstanding Securities of a series and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms

 

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of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such Securities as provided for by the terms of such series, 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 3.06                            Redemption of Securities for Sinking Fund

 

Not less than 45 days prior to each sinking fund payment date for any series of Securities (unless a shorter period shall be satisfactory to the Trustee), 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 the series, the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.05 and the basis for such credit and will, together with such Officer’s Certificate, deliver to the Trustee any Securities to be so delivered.  Not less than 30 days before each such sinking fund payment date the Securities to be redeemed upon such sinking fund payment date shall be selected in the manner specified in Section 3.02 and the Company shall 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 3.02.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 3.03.

 

ARTICLE 4

 

COVENANTS

 

Section 4.01                            Payment of Principal, Premium and Interest

 

The Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on the Securities of that series at the time and place and in the manner provided herein and established with respect to such Securities. Payments of principal on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check drawn on and mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account if such Securityholder shall have furnished wire instructions to the Trustee no later than 15 days prior to the relevant payment date. Payments of interest on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account if such Securityholder shall have furnished wire instructions in writing to the Security Registrar and the Trustee no later than 15 days prior to the relevant payment date.

 

Section 4.02                            Maintenance of Office or Agency

 

So long as any series of the Securities remain Outstanding, the Company agrees to maintain an office or agency with respect to each such series and at such other location or locations as may be designated as provided in this Section 4.02, where (i) Securities of that series may be presented for payment, (ii) Securities of that series may be presented as herein above authorized for registration of transfer and exchange, and (iii) notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written notice signed by any officer authorized to sign an

 

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Officer’s Certificate and delivered to the Trustee, designate some other office or agency for such purposes or any of them.  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, 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, notices and demands.  The Company initially appoints the Corporate Trust Office of the Trustee as its paying agent with respect to the Securities.

 

Section 4.03                            Paying Agents

 

(a)         If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section:

 

(1)         that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Securities of that series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of the Persons entitled thereto;

 

(2)         that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment of the principal of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable;

 

(3)         that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and

 

(4)         that it will perform all other duties of paying agent as set forth in this Indenture.

 

(b)         If the Company or any Subsidiary Guarantor shall act as paying agent with respect to any series of the Securities, it will on or before each due date of the principal of (and premium, if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or interest so becoming due on Securities of that series until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any failure (by it or any other obligor on such Securities) to take such action.  Whenever the Company shall have one or more paying agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any) or interest on any Securities of that series, deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.

 

(c)          Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 11.05, and (ii) 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 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 terms and conditions as those upon which such sums were held by the Company or such paying agent; and, upon such payment

 

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by the Company or any paying agent to the Trustee, the Company or such paying agent shall be released from all further liability with respect to such money.

 

Section 4.04                            Appointment to Fill Vacancy in Office of Trustee

 

The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.

 

ARTICLE 5

 

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

 

Section 5.01                            Company to Furnish Trustee Names and Addresses of Securityholders

 

The Company will furnish or cause to be furnished to the Trustee (a) within 15 days after each regular record date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of each series of Securities as of such regular record date, provided that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.

 

Section 5.02                            Preservation Of Information; Communications With Securityholders

 

(a)         The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Securities contained in the most recent list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity).

 

(b)         The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.

 

(c)          Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect to their rights under this Indenture or under the Securities, and, in connection with any such communications, the Trustee shall satisfy its obligations under Section 312(b) of the Trust Indenture Act in accordance with the provisions of Section 312(b) of the Trust Indenture Act.

 

Section 5.03                            Reports by the Company

 

(a)         The Company will at all times comply with Section 314(a) of the Trust Indenture Act.  The Company covenants and agrees to provide (which delivery may be via electronic mail) to the Trustee within 30 days, after the Company files the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Company is required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; provided, however, the Company shall not be required to deliver to the Trustee any

 

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correspondence filed with the Commission or any materials for which the Company has sought and received confidential treatment by the Commission; and provided further, that so long as such filings by the Company are available on the Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), or any successor system, such filings shall be deemed to have been filed with the Trustee for purposes hereof without any further action required by the Company. For the avoidance of doubt, a failure by the Company to file annual reports, information and other reports with the Commission within the time period prescribed thereof by the Commission shall not be deemed a breach of this Section 5.03.

 

(b)         Delivery of reports, information and documents to the Trustee under Section 5.03 is for informational purposes only and the information and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein, or determinable from information contained therein including the Company’s compliance with any of their covenants thereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).  The Trustee is under no duty to examine any such reports, information or documents delivered to the Trustee or filed with the Commission via EDGAR to ensure compliance with the provision of this Indenture or to ascertain the correctness or otherwise of the information or the statements contained therein.  The Trustee shall have no responsibility or duty whatsoever to ascertain or determine whether the above referenced filings with the Commission on EDGAR (or any successor system) has occurred.

 

Section 5.04                            Reports by the Trustee

 

(a)         If required by Section 313(a) of the Trust Indenture Act, the Trustee, within sixty (60) days after each May 1, shall send to the Securityholders a brief report dated as of such May 1, which complies with Section 313(a) of the Trust Indenture Act.

 

(b)         The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.

 

(c)          A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company, with each securities exchange upon which any Securities are listed (if so listed) and also with the Commission.  The Company agrees to notify the Trustee when any Securities become listed on any securities exchange.

 

ARTICLE 6

 

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

 

Section 6.01                            Events of Default

 

(a)         Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or more of the following events that has occurred and is continuing:

 

(1)         the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same shall become due and payable, and such default continues for a period of 90 days; provided, however, that a valid extension of an interest payment period by the Company in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of interest for this purpose;

 

(2)         the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when the same shall become due and payable whether at

 

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maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of the maturity of such Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

 

(3)         the Company or any Subsidiary Guarantor fails to observe or perform any other of its covenants or agreements with respect to that series contained in this Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement that has been expressly included in this Indenture solely for the benefit of one or more series of Securities other than such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the Securities of that series at the time Outstanding;

 

(4)         the Company any Significant Subsidiary Guarantor to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors;

 

(5)         a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company or any Significant Subsidiary Guarantor in an involuntary case, (ii) appoints a Custodian of the Company or any Significant Subsidiary Guarantor for all or substantially all of its property or (iii) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 90 days; or

 

(6)         except as permitted by this Indenture, any Subsidiary Guarantee shall be held in any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect, or any Subsidiary Guarantor, or any Person acting on its behalf, shall deny or disaffirm its obligation under the Subsidiary Guarantee.

 

(b)         In each and every such case (other than an Event of Default specified in clause (4) or clause (5) above), unless the principal of all the Securities of that series shall have already become due and payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Securities of that series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare the principal of (and premium, if any, on) and accrued and unpaid interest on all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable.  If an Event of Default specified in clause (4) or clause (5) above occurs with respect to the Company, the principal of and accrued and unpaid interest on all the Securities of that series shall automatically be immediately due and payable without any declaration or other act on the part of the Trustee or the holders of the Securities.

 

(c)          At any time after the principal of (and premium, if any, on) and accrued and unpaid interest on the Securities of that series shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of that series and the principal

 

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of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise than by acceleration (with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments of interest, at the rate per annum expressed in the Securities of that series to the date of such payment or deposit) and the amount payable to the Trustee under Section 7.06, and (ii) any and all Events of Default under the Indenture with respect to such series, other than the nonpayment of principal on (and premium, if any, on) and accrued and unpaid interest on Securities of that series that shall not have become due by their terms, shall have been remedied or waived as provided in Section 6.06.

 

No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.

 

(d)         In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.

 

Section 6.02                            Collection of Indebtedness and Suits for Enforcement by Trustee

 

(a)         The Company covenants that (i) in case it shall default in the payment of any installment of interest on any of the Securities of a series, or in any payment required by any sinking or analogous fund established with respect to that series as and when the same shall have become due and payable, and such default shall have continued for a period of 90 days, or (ii) in case it shall default in the payment of the principal of (or premium, if any, on) any of the Securities of a series when the same shall have become due and payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or otherwise then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that then shall have been become due and payable on all such Securities for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments of interest at the rate per annum expressed in the Securities of that series; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.06.

 

(b)         If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the manner provided by law or equity out of the property of the Company or other obligor upon the Securities of that series, wherever situated.

 

(c)          In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have

 

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the claims of the Trustee and of the holders of Securities of such series allowed for the entire amount due and payable by the Company under the Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders, to pay to the Trustee any amount due it under Section 7.06.

 

(d)         All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial or other proceeding relative thereto, and any such suit or 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 payment to the Trustee of any amounts due under Section 7.06, be for the ratable benefit of the holders of the Securities of such series.

 

In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in the Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

 

Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of that series or the rights of any Securityholder thereof or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding.

 

Section 6.03                            Application of Moneys Collected

 

Any moneys collected by the Trustee pursuant to this Article with respect to a particular series of Securities shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (or premium, if any) or interest, upon presentation of the Securities of that series, and notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid:

 

FIRST: To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.06;

 

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

 

THIRD: To the payment of the remainder, if any, to the Company or any other Person lawfully entitled thereto.

 

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Section 6.04                            Limitation on Suits

 

No holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless (i) such Securityholder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event of Default, as hereinbefore provided; (ii) the holders of not less than 25% in aggregate principal amount of the Securities of such series then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder; (iii) such Securityholder or Securityholders shall have offered to the Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request; (iv) the Trustee for 90 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding and (v) during such 90 day period, the holders of a majority in principal amount of the Securities of that series do not give the Trustee a direction inconsistent with the request.

 

Notwithstanding anything contained herein to the contrary or any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Securities of such series.  For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

 

Section 6.05                            Rights and Remedies Cumulative; Delay or Omission Not Waiver

 

(a)         Except as otherwise provided in Section 2.07, all powers and remedies given by this Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Securities.

 

(b)         No delay or omission of the Trustee or of any holder of any of the Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article or by law to the Trustee or the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

 

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Section 6.06                            Control by Securityholders

 

The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance with Section 8.04, 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 such series; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture or subject the Trustee in its sole discretion to personal liability.  Subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or officers of the Trustee, determine that the proceeding so directed, subject to the Trustee’s duties under the Trust Indenture Act, would involve the Trustee in personal liability or might be unduly prejudicial to the Securityholders not involved in the proceeding.  The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding affected thereby, determined in accordance with Section 8.04, may on behalf of the holders of all of the Securities of such series waive any past default in the performance of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities of that series as and when the same shall become due by the terms of such Securities otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance with Section 6.01(c))).  Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

 

Section 6.07                            Undertaking to Pay Costs

 

All parties to this Indenture agree, and each holder of any Securities by such holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security of such series, on or after the respective due dates expressed in such Security or established pursuant to this Indenture.

 

ARTICLE 7

 

CONCERNING THE TRUSTEE

 

Section 7.01                            Certain Duties and Responsibilities of Trustee

 

(a)         The Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect to the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants 

 

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shall be read into this Indenture against the Trustee.  In case an Event of Default with respect to the Securities of a series has occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series 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 or her own affairs.

 

(b)         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:

 

(i)                                    prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all such Events of Default with respect to that series that may have occurred:

 

(A)       the duties and obligations of the Trustee shall with respect to the Securities of such series be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable with respect to the Securities of such series except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(B)       in the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture;

 

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

 

(iii)                            the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding 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 that series;

 

(iv)                             none of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it;

 

(v)                                 The Trustee shall not be required to give any bond or surety in respect of the performance of its powers or duties hereunder;

 

(vi)                             The permissive right of the Trustee to do things enumerated in this Indenture shall not be construed as a duty of the Trustee; and

 

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(vii)                         No Trustee shall have any duty or responsibility for any act or omission of any other Trustee appointed with respect to a series of Securities hereunder.

 

Section 7.02                            Certain Rights of Trustee

 

Except as otherwise provided in Section 7.01:

 

(a)         The Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security 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, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company by any authorized Officer of the Company (unless other evidence in respect thereof is specifically prescribed herein);

 

(c)          The Trustee may consult with counsel and the opinion or written advice of such counsel or, if requested, any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance thereon;

 

(d)         The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee security or indemnity reasonably acceptable to the Trustee against the costs, expenses and liabilities that may be incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to a series of the Securities (that has not been cured or waived), to exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and to 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 or her own affairs;

 

(e)          The Trustee shall not be liable for any action taken or omitted to be taken 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;

 

(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, consent, order, approval, bond, security, or other papers or documents or inquire as to the performance by the Company of one of its covenants under this Indenture, unless requested in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Securities of the particular series affected thereby (determined as provided in Section 8.04); provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require security or indemnity reasonably acceptable to the Trustee against such costs, expenses or liabilities as a condition to so proceeding.  The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand;

 

(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 

 

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responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

 

(h)         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 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;

 

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

 

(j)            The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods; provided, however, that such instructions or directions shall be signed by an authorized representative of the party providing such instructions or directions.  If the party elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction.  The party providing electronic instructions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.  The Trustee may request that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time to furnish the Trustee with Officer’s Certificates, Company Orders and any other matters or directions pursuant to this Indenture.

 

(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 under the Securities, and each agent, custodian or other person employed to act under this Indenture.

 

(l)            The Trustee shall not be deemed to have knowledge of any Default or Event of Default (other than an Event of Default constituting the failure to pay the interest on, or the principal of, the Securities if the Trustee also serves the paying agent for such Securities) until the Trustee shall have received written notification in the manner set forth in this Indenture or a Responsible Officer of the Trustee shall have obtained actual knowledge.

 

Section 7.03                            Trustee Not Responsible for Recitals or Issuance or Securities

 

(a)         The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee shall not be responsible for any statement in any registration statement, prospectus, or any other document in connection with the sale of Securities. The Trustee shall not be responsible for any rating on the Securities or any action or omission of any rating agency.

 

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(b)         The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.

 

(c)          The Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or established pursuant to Section 2.01, or for the use or application of any moneys received by any paying agent other than the Trustee.

 

Section 7.04                            May Hold Securities

 

The Trustee or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.

 

Section 7.05                            Moneys Held in Trust

 

Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law.  The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.

 

Section 7.06                            Compensation and Reimbursement

 

(a)         The Company shall pay to the Trustee for each of its capacities hereunder from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

(b)         The Company shall indemnify each of the Trustee in each of its capacities hereunder against any loss, liability or expense (including the cost of defending itself and including the reasonable compensation and expenses of the Trustee’s agents and counsel) incurred by it except as set forth in Section 7.06(c) in the exercise or performance of its powers, rights or duties under this Indenture as Trustee or agent.  The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld.  This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

 

(c)          The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through negligence or bad faith.

 

(d)         To ensure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities on all funds or property held or collected by the Trustee, except that held in trust to pay principal of or interest on particular Securities.  When the Trustee incurs expenses or renders 

 

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services in connection with an Event of Default specified in Section 6.01(4) or (5), the expenses (including the reasonable fees and expenses of its counsel) and the compensation for services in connection therewith are to constitute expenses of administration under any bankruptcy law.  The provisions of this Section 7.06 shall survive the termination of this Indenture and the resignation or removal of the Trustee.

 

Section 7.07                            Reliance on Officer’s Certificate

 

Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it reasonably necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.

 

Section 7.08                            Disqualification; Conflicting Interests

 

If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

 

Section 7.09                            Corporate Trustee Required; Eligibility

 

There shall at all times be a Trustee with respect to the Securities issued hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any state or territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000), and subject to supervision or examination by federal, state, territorial, or District of Columbia authority.

 

If such corporation or other Person publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation or other Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee.  In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.

 

Section 7.10                            Resignation and Removal; Appointment of Successor

 

(a)         The Trustee or any successor hereafter appointed may at any time resign with respect to the Securities of one or more series by giving written notice thereof to the Company and the Securityholders of such series.  Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee with respect to Securities of such series by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the sending of such notice of resignation, 

 

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the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee with respect to Securities of such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities for at least six months may on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee.  Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

 

(b)         In case at any time any one of the following shall occur:

 

(i)                                    the Trustee shall fail to comply with the provisions of Section 7.08 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or

 

(ii)                                the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written request therefor by the Company or by any such Securityholder; or

 

(iii)                            the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, 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, the Company may remove the Trustee with respect to all Securities and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or any Securityholder who has been a bona fide holder of a Security or Securities for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee.  Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

 

(c)          The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time remove the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such series with the consent of the Company.

 

(d)         Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.11.

 

(e)          Any successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.

 

Section 7.11                            Acceptance of Appointment By Successor

 

(a)         In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of 

 

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the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring Trustee shall, upon payment of any amounts due to it pursuant to the provisions of Section 7.06, 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.

 

(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 (i) 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, (ii) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (iii) 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, 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 that no Trustee shall be responsible for any act or failure to act on the part of any other Trustee hereunder; 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, such retiring Trustee shall with respect to the Securities of that or those series to which the appointment of such successor trustee relates have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under this Indenture, 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, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor trustee relates.

 

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

 

(e)          Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall send notice of the succession of such trustee hereunder to the Securityholders.  If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be transmitted at the expense of the Company.

 

Section 7.12                            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 

 

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Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, including the administration of the trust created by this Indenture, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.  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 7.13                            Preferential Collection of Claims Against the Company

 

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

 

Section 7.14                            Notice of Default.

 

If any Event of Default occurs and is continuing and if such Event of Default is known to a Responsible Officer of the Trustee, the Trustee shall send to each Securityholder in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act notice of the Event of Default within the earlier of 90 days after it occurs and 30 days after it is known to a Responsible Officer of the Trustee or written notice of it is received by the Trustee, unless such Event of Default has been cured; provided, however, that, except in the case of a default in the payment of the principal of (or premium, if any) or interest on any Security, the Trustee shall be protected in withholding such notice if and so long as the Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the Securityholders.

 

ARTICLE 8

 

CONCERNING THE SECURITYHOLDERS

 

Section 8.01                            Evidence of Action by Securityholders

 

Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified percentage of that series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders of Securities of that series in person or by agent or proxy appointed in writing.

 

If the Company shall solicit from the Securityholders of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, as evidenced by an Officer’s Certificate, fix in advance a record date for such series for the determination of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, 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 action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the 

 

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requisite proportion of Outstanding Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the record date; provided, however, that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

 

Section 8.02                            Proof of Execution by Securityholders

 

Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Securityholder (such proof will not require notarization) or his or her agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:

 

(a)         The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

 

(b)         The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar thereof.

 

The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

 

Section 8.03                            Who May be Deemed Owners

 

Prior to the due presentment for registration of transfer of any Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name such Security shall be registered upon the books of the Security Registrar as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to Section 2.03) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.

 

Section 8.04                            Certain Securities Owned by Company Disregarded

 

In determining whether the holders of the requisite aggregate principal amount of Securities of a particular series have concurred in any direction, consent or waiver under this Indenture, the Securities of that series that are owned by the Company or any other obligor on the Securities of that series or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other obligor on the Securities of that series shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of such series that the Trustee actually knows are so owned shall be so disregarded.  The Securities so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor.  In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

 

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Section 8.05                            Actions Binding on Future Securityholders

 

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action, any holder of a Security of that series that is shown by the evidence to be included in the Securities the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Security.  Except as aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Security.  Any action taken by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that series.

 

ARTICLE 9

 

SUPPLEMENTAL INDENTURES

 

Section 9.01                            Supplemental Indentures Without the Consent of Securityholders

 

In addition to any supplemental indenture otherwise authorized by this Indenture, the Company, the Subsidiary Guarantors and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the Securityholders, for one or more of the following purposes:

 

(a)         to cure any ambiguity, defect, or inconsistency herein or in the Securities of any series;

 

(b)         to comply with Article Ten;

 

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

 

(d)         to add to the covenants, restrictions, conditions or provisions relating to the Company or any Subsidiary Guarantor for the benefit of the holders of all or any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series of Securities, stating that such covenants, restrictions, conditions or provisions are expressly being included solely for the benefit of such series), to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default, or to surrender any right or power herein conferred upon the Company or any Subsidiary Guarantor;

 

(e)          to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication, and delivery of Securities, as herein set forth;

 

(f)           to make any change that does not adversely affect the rights of any Securityholder in any material respect;

 

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(g)         to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.01, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to add to the rights of the holders of any series of Securities;

 

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

 

(i)            to add new Subsidiary Guarantors; or

 

(j)            to comply with any requirements of the Commission or any successor in connection with the qualification of this Indenture under the Trust Indenture Act.

 

The Trustee is hereby authorized to join with the Company and the Subsidiary Guarantors in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental indenture authorized by the provisions of this Section may be executed by the Company, the Subsidiary Guarantors and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

 

Section 9.02                            Supplemental Indentures With Consent of Securityholders

 

With the consent (evidenced as provided in Section 8.01) of the holders of not less than a majority in aggregate principal amount of the Securities of each series affected by such supplemental indenture or indentures at the time Outstanding, the Company and the Subsidiary Guarantors, in each case when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby, (a) extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, (b) reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture or (c) other than in accordance with the provisions of this Indenture, eliminate any Subsidiary Guarantee.

 

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

 

Section 9.03                            Effect of Supplemental Indentures

 

Upon the execution of any supplemental indenture pursuant to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such series, be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and 

 

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immunities under this Indenture of the Trustee, the Company, the Subsidiary Guarantors 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 shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

Section 9.04                            Securities Affected by Supplemental Indentures

 

Securities of any series affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements of any securities exchange upon which such series may be listed, as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Securities of that series then Outstanding.

 

Section 9.05                            Execution of Supplemental Indentures

 

Upon the request of the Company, accompanied by its Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company and each Subsidiary Guarantor in the execution of such supplemental indenture unless such 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 to enter into such supplemental indenture. The Trustee, subject to the provisions of Section 7.01, shall receive an Officer’s Certificate or an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by the terms of this Article and that all conditions precedent to the execution of the supplemental indenture have been complied with; provided, however, that such Officer’s Certificate or Opinion of Counsel need not be provided in connection with the execution of a supplemental indenture that establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

 

Promptly after the execution by the Company, each Subsidiary Guarantor and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Company shall (or shall direct the Trustee to) send a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all series affected thereby as their names and addresses appear upon the Security Register. Any failure of the Company to send, or cause the sending of, such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

ARTICLE 10

 

SUCCESSOR ENTITY

 

Section 10.01                     Company May Consolidate, Etc.

 

Nothing contained in this Indenture shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its

 

37

 

successor or successors as an entirety, or substantially as an entirety, to any other Person (whether or not affiliated with the Company or its successor or successors); provided, however, the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction) or any such sale, conveyance, transfer or other disposition (other than a sale, conveyance, transfer or other disposition to a Subsidiary of the Company), the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities of all series in accordance with the terms of each series, according to their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) reasonably satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property.

 

Section 10.02                     Successor Entity Substituted

 

(a)         In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the obligations set forth under Section 10.01 on all of the Securities of all series Outstanding, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.

 

(b)         In case of any such consolidation, merger, sale, conveyance, transfer or other disposition, such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.

 

(c)          Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

 

ARTICLE 11

 

SATISFACTION AND DISCHARGE

 

Section 11.01                     Satisfaction and Discharge of Indenture

 

If at any time: (a) the Company shall have delivered to the Trustee for cancellation all Securities of a series theretofore authenticated and not delivered to the Trustee for cancellation (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07 and Securities for whose payment money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company and thereupon repaid to the Company or discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a particular series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds the entire amount in moneys or Governmental Obligations or a combination thereof, sufficient in the opinion 

 

38

 

of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder with respect to such series by the Company then this Indenture shall thereupon cease to be of further effect with respect to such series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03, 7.10, 11.5 and 13.04, that shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the cost and expense of the Company shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such series.

 

Section 11.02                     Discharge of Obligations

 

If at any time all such Securities of a particular series not heretofore delivered to the Trustee for cancellation or that have not become due and payable as described in Section 11.01 shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations, as the case may be, are deposited with the Trustee the obligations of the Company and the Subsidiary Guarantors, if applicable, under this Indenture with respect to such series shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10, 11.05 and 13.04 hereof that shall survive until such Securities shall mature and be paid.

 

Thereafter, Sections 7.06 and 11.05 shall survive.

 

Section 11.03                     Deposited Moneys to be Held in Trust

 

All moneys or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company or any Subsidiary Guarantor acting as its own paying agent), to the holders of the particular series of Securities for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.

 

Section 11.04                     Payment of Moneys Held by Paying Agents

 

In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental Obligations.

 

Section 11.05                     Repayment to Company

 

Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of or premium, if any, or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for at least two years after the date upon which the principal of (and premium, if any) or 

 

39

 

interest on such Securities shall have respectively become due and payable, or such other shorter period set forth in applicable escheat or abandoned or unclaimed property law, shall be repaid to the Company on May 31 of each year or upon the Company’s request or (if then held by the Company) shall be discharged from such trust; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of the Securities entitled to receive such payment shall thereafter, as a general creditor, look only to the Company for the payment thereof.

 

ARTICLE 12

 

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

Section 12.01                     No Recourse

 

No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Company and, if applicable, any Subsidiary Guarantor or of any predecessor or successor corporation thereof, either directly or through the Company, such Subsidiary Guarantor or any such predecessor or 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 this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the Company and, if applicable, any Subsidiary Guarantor or of any predecessor or successor corporation thereof, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.

 

ARTICLE 13

 

MISCELLANEOUS PROVISIONS

 

Section 13.01                     Effect on Successors and Assigns

 

All the covenants, stipulations, promises and agreements in this Indenture made by or on behalf of the Company and each of the Subsidiary Guarantors shall bind its successors and assigns, whether so expressed or not.

 

Section 13.02                     Actions by Successor

 

Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company or any Subsidiary Guarantor shall and may be done and performed with like force and effect by the corresponding board, committee or officer 

 

40

 

of any corporation that shall at the time be the lawful successor of the Company or such Subsidiary Guarantor, as applicable.

 

Section 13.03                     Surrender of Company Powers

 

The Company by instrument in writing executed by authority of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.

 

Section 13.04                     Notices

 

Except as otherwise expressly provided herein, any notice, request or demand that by any provision of this Indenture is required or permitted to be given, made or served by the Trustee, the Security Registrar, any paying or other agent under this Indenture or by the holders of Securities or by any other Person pursuant to this Indenture to or on the Company may be given or served by being deposited in first class mail, postage prepaid, addressed (until another address is filed in writing by the Company with the Trustee), as follows: Senseonics Holdings, Inc., 20451 Seneca Meadows Parkway, Germantown, Maryland 20876-7005, Attn: Chief Financial Officer.  Any notice, election, request or demand by the Company or any Securityholder or by any other Person pursuant to this Indenture to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.

 

Section 13.05                     Governing Law; Jury Trial Waiver

 

This Indenture and each Security shall be governed by, and construed in accordance with, the internal laws of the State of New York, except to the extent that the Trust Indenture Act is applicable.

 

EACH PARTY HERETO, AND EACH HOLDER OF A SECURITY BY ACCEPTANCE THEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT 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 13.06                     Treatment of Securities as Debt

 

It is intended that the Securities will be treated as indebtedness and not as equity for federal income tax purposes.  The provisions of this Indenture shall be interpreted to further this intention.

 

Section 13.07                     Certificates and Opinions as to Conditions Precedent

 

(a)         Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture (other than the certificate to be delivered pursuant to Section 13.12) relating to the proposed action have been complied with and, if requested, an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

 

41

 

(b)         Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture (other than the certificate to be delivered pursuant to Section 13.12 of this Indenture or Section 314(a)(1) of the Trust Indenture Act) shall include (i) a statement that the Person making such certificate or opinion has read such covenant or condition; (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (iii) a statement that, in the opinion of such Person, he has made such examination or investigation as is reasonably necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (iv) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

 

Section 13.08                     Payments on Business Days

 

Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of any Security shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.

 

Section 13.09                     Conflict with Trust Indenture Act

 

If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Section 318(c) of the Trust Indenture Act, such imposed duties shall control.

 

Section 13.10                     Counterparts

 

This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.  The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

Section 13.11                     Separability

 

In case any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

 

Section 13.12                     Compliance Certificates

 

The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year during which any Securities of any series were outstanding, an officer’s certificate stating whether or not the signers know of any Event of Default that occurred during such fiscal year.  Such certificate shall contain a certification from the principal executive officer, principal financial officer or principal accounting officer of the Company that a review has been conducted of the activities of the Company and the Company’s performance under this Indenture and that the Company has complied with all conditions 

 

42

 

and covenants under this Indenture.  For purposes of this Section 13.12, such compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture.  If the officer of the Company signing such certificate has knowledge of such an Event of Default, the certificate shall describe any such Event of Default and its status.

 

Section 13.13                     U.S.A Patriot Act

 

The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee.  The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

 

Section 13.14                     Force Majeure

 

In no event shall the Trustee, the Security Registrar, any paying agent or any other agent under this Indenture 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 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 or utilities, communications or computer (software and hardware) services; it being understood that the Trustee, the Security Registrar, any paying agent or any other agent under this Indenture shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

Section 13.15                     Table of Contents; Headings

 

The table of contents and headings of the articles and sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof, and will not modify or restrict any of the terms or provisions hereof.

 

ARTICLE 14

 

SUBSIDIARY GUARANTEES

 

Section 14.01                     Subsidiary Guarantees

 

(a)         Notwithstanding any provision of this Article to the contrary, the provisions of this Article  relating to the Subsidiary Guarantors shall be applicable only to, and inure solely to the benefit of, the Securities of any series designated, pursuant to Section 2.01, as entitled to the benefits of the related Subsidiary Guarantee of each of the Subsidiary Guarantors.

 

(b)         Subject to this Article, each of the Subsidiary Guarantors hereby, jointly and severally, unconditionally guarantees to each holder of a Security authenticated and delivered by the Trustee, to the Trustee and their respective successors and assigns, irrespective of the validity and enforceability of this Indenture, the Securities or the obligations of the Company hereunder or thereunder, that:

 

43

 

(1)         the principal of, premium, if any, and interest on, the Securities will be promptly paid in full when due, whether at maturity, by acceleration, redemption, repurchase or otherwise, and interest on the overdue principal of and interest on the Securities, if any, if lawful, and all other obligations of the Company to the Securityholders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof, and

 

(2)                                 in case of any extension of time of payment or renewal of any Securities or any of such other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at the date of maturity of interest or principal of any Security, by acceleration or otherwise.

 

Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Subsidiary Guarantors will be jointly and severally obligated to pay the same immediately. Each Subsidiary Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

 

(c)                                  The Subsidiary Guarantors hereby agree that their obligations hereunder are unconditional, irrespective of the validity, regularity or enforceability of the Securities or this Indenture, the absence of any action to enforce the same, any waiver or consent by any holder of the Securities or the Trustee with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Subsidiary Guarantor. Each Subsidiary Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee will not be discharged except by complete performance of the obligations contained in the Securities and this Indenture.

 

(d)                                 If any Securityholder or the Trustee is required by any court or otherwise to return to the Company, the Subsidiary Guarantors or any Custodian, trustee, liquidator or other similar official acting in relation to either the Company or the Subsidiary Guarantors, any amount paid by any of them to the Trustee or such Securityholder, each Subsidiary Guarantor’s Subsidiary Guarantee, to the extent theretofore discharged, will be reinstated in full force and effect.

 

(e)                                  Each Subsidiary Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Securityholders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Subsidiary Guarantor further agrees that, as between the Subsidiary Guarantors, on the one hand, and the Securityholders and the Trustee, on the other hand, (i) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 for the purposes of its Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration of such obligations as provided in Article 6, such obligations (whether or not due and payable) will forthwith become due and payable by each of the Subsidiary Guarantors for the purpose of its Subsidiary Guarantee.

 

Section 14.02                     Limitation on Subsidiary Guarantor Liability

 

Each Subsidiary Guarantor, and by its acceptance of Securities, each Securityholder, hereby confirms that it is the intention of all such parties that the Subsidiary Guarantee of such Subsidiary Guarantor not constitute a fraudulent transfer or conveyance for purposes of applicable Bankruptcy Law, 

 

44

 

the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee, the Securityholders and the Subsidiary Guarantors hereby irrevocably agree that the obligations of such Subsidiary Guarantor will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Subsidiary Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor under this Article, result in the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a fraudulent transfer or conveyance.

 

Section 14.03                     Execution and Delivery of Subsidiary Guarantee

 

To further evidence its Subsidiary Guarantee set forth in Section 14.01, each of the Subsidiary Guarantors hereby agrees that a notation relating to such Subsidiary Guarantee (the “Notation of Subsidiary Guarantee”), substantially in the form attached hereto as Annex A, shall be endorsed on each Security of the series entitled to the benefits of such Subsidiary Guarantee authenticated and delivered by the Trustee, which Notation of Subsidiary Guarantee shall be executed by either manual or facsimile signature of an Officer of such Subsidiary Guarantor. Each of the Subsidiary Guarantors hereby agrees that its Subsidiary Guarantee set forth in Section 14.01 shall remain in full force and effect notwithstanding any failure to endorse on each Security the Notation of Subsidiary Guarantee relating to such Subsidiary Guarantee. If any Officer of such Subsidiary Guarantor, whose signature is on this Indenture or the Notation of Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates such Security or at any time thereafter, the Subsidiary Guarantee of such Security shall be valid nevertheless. The delivery of any Security of a series entitled to the benefits of a Subsidiary Guarantee under this Article by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Subsidiary Guarantee set forth in this Indenture on behalf of each Subsidiary Guarantor.

 

Section 14.04                     Subsidiary Guarantors May Consolidate, Etc., on Certain Terms

 

A Subsidiary Guarantor shall not consolidate with or merge with or into, or sell, convey, transfer or lease all or substantially all of its properties and assets to another Person (other than the Company or another Subsidiary Guarantor), unless:

 

(a)                                 the resulting, surviving or transferee Person (if not such Subsidiary Guarantor, the Company or another Subsidiary Guarantor) expressly assumes by executing and delivering a supplemental indenture and any other agreements (including, without limitation, any registration rights agreement, if applicable) all of that Subsidiary Guarantor’s obligations under the Securities and this Indenture; and

 

(b)                                 immediately after giving effect to such transaction, no Default or Event of Default has occurred and is continuing under this Indenture. Upon any such consolidation, merger or sale, conveyance, transfer or lease, the resulting, surviving or transferee Person (if not the Company or another Subsidiary Guarantor) shall succeed to, and may exercise every right and power of, that Subsidiary Guarantor under the Securities and this Indenture, and that Subsidiary Guarantor shall be discharged from its obligations under the Securities and this Indenture except in the case of any such lease.

 

45

 

Section 14.05                     Releases

 

The Subsidiary Guarantee of a Subsidiary Guarantor will be automatically and unconditionally released:

 

(a)         upon satisfaction and discharge of this Indenture; or

 

(b)         upon the liquidation or dissolution of such Subsidiary Guarantor following the transfer of all of its assets to the Company or another Subsidiary Guarantor; or

 

(c)          if such Subsidiary Guarantor ceases to be a Subsidiary in compliance with the applicable provisions of this Indenture.

 

Upon delivery by the Company of an Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent herein provided for relating to the release of such Subsidiary Guarantor from its obligations under its Subsidiary Guarantee and this Indenture have been complied with, such Subsidiary Guarantor shall be released and discharged of its obligations under its Subsidiary Guarantee and under this Indenture without any action on the part of the Trustee or any Holder, and the Trustee shall execute any documents reasonably required in order to acknowledge the release of such Subsidiary Guarantor from its obligations under its Subsidiary Guarantee endorsed on the Securities of such series and under this Indenture.

 

46

 

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

 

	
 
    	
SENSEONICS HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[SUBSIDIARY GUARANTORS]
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[TRUSTEE], as   Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

47

 

CROSS-REFERENCE TABLE (1)

 

	
Section of Trust Indenture Act of 1939, as Amended
    	
 
    	
Section of Indenture
    
	
310(a)
    	
 
    	
7.09
    
	
310(b)
    	
 
    	
7.08
    
	
 
    	
 
    	
7.10
    
	
310(c)
    	
 
    	
Inapplicable
    
	
311(a)
    	
 
    	
7.13
    
	
311(b)
    	
 
    	
7.13
    
	
311(c)
    	
 
    	
Inapplicable
    
	
312(a)
    	
 
    	
5.01
    
	
 
    	
 
    	
5.02(a)
    
	
312(b)
    	
 
    	
5.02(c)
    
	
312(c)
    	
 
    	
5.02(c)
    
	
313(a)
    	
 
    	
5.04(a)
    
	
313(b)
    	
 
    	
5.04(b)
    
	
313(c)
    	
 
    	
5.04(a)
    
	
 
    	
 
    	
5.04(b)
    
	
313(d)
    	
 
    	
5.04(c)
    
	
314(a)
    	
 
    	
5.03
    
	
 
    	
 
    	
13.12
    
	
314(b)
    	
 
    	
Inapplicable
    
	
314(c)
    	
 
    	
13.07(a)
    
	
314(d)
    	
 
    	
Inapplicable
    
	
314(e)
    	
 
    	
13.07(b)
    
	
314(f)
    	
 
    	
Inapplicable
    
	
315(a)
    	
 
    	
7.01(a)
    
	
 
    	
 
    	
7.01(b)
    
	
315(b)
    	
 
    	
7.14
    
	
315(c)
    	
 
    	
7.01
    
	
315(d)
    	
 
    	
7.01(b)
    
	
315(e)
    	
 
    	
6.07
    
	
316(a)
    	
 
    	
6.06
    
	
 
    	
 
    	
8.04
    
	
316(b)
    	
 
    	
6.04
    
	
316(c)
    	
 
    	
8.01
    
	
317(a)
    	
 
    	
6.02
    
	
317(b)
    	
 
    	
4.03
    
	
318(a)
    	
 
    	
13.09
    

 

(1)         This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

 

48

 

ANNEX A

 

NOTATION OF SUBSIDIARY GUARANTEE

 

Each of the Subsidiary Guarantors (which term includes any successor Person under the Indenture) has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the Securities and all other amounts due and payable under the Indenture and the Securities by the Company.

 

The obligations of the Subsidiary Guarantors to the Securityholders and to the Trustee pursuant to the Subsidiary Guarantee and the Indenture are expressly set forth in Article 14 of the Indenture and reference is hereby made to the Indenture for the precise terms of the Subsidiary Guarantee.

 

 

	
 
    	
[NAME(S) OF SUBSIDIARY   GUARANTOR(S)]
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:va670nycontract121719

   Home Office:                  Service Center:  [2900 Westchester Avenue      [P.O. Box 24068  Purchase,  New York 10577]    Lansing, MI 48909-4068                                1-800-599-5651                                www.jackson.com]                           Jackson National Life Insurance Company of New York®                                                          Thank you for choosing Jackson National Life Insurance Company of New York, also referred to as "the   Company" or "Jackson of NY®."                                       READ YOUR CONTRACT CAREFULLY.      This annuity contract is issued by the Company and is a legal agreement between the Owner ("You") and   Jackson of NY.      AMOUNTS YOU ALLOCATE TO THE INVESTMENT DIVISIONS DURING THE ACCUMULATION AND   ANNUITY PERIODS ARE NOT GUARANTEED AND MAY INCREASE OR DECREASE IN VALUE BASED   UPON THE PERFORMANCE OF THE FUNDS UNDERLYING THE SEPARATE ACCOUNT.      IF THE ACTUAL INVESTMENT RATES EXPERIENCED BY THE SEPARATE ACCOUNT ASSETS (PRIOR TO   DEDUCTION OF THE ASSET-BASED CHARGES SPECIFIED IN THIS CONTRACT) ARE LESS THAN   [2.00%], VARIABLE ANNUITY PAYMENTS WILL DECREASE OVER TIME.      AMOUNTS ALLOCATED TO THE FIXED ACCOUNT OPTIONS WILL EARN INTEREST AT THE CURRENT   INTEREST RATE FOR THE DURATION OF THE FIXED ACCOUNT OPTION PERIOD. THE INTEREST RATE   CREDITED FOR SUBSEQUENT PERIODS IS SUBJECT TO CHANGE AS DECLARED BY THE COMPANY.      THE FIXED ACCOUNT OPTIONS ARE SUBJECT TO A MARKET VALUE ADJUSTMENT FORMULA WHICH   MAY INCREASE OR DECREASE THE VALUE OF AMOUNTS TRANSFERRED OR WITHDRAWN FROM THE   FIXED ACCOUNT OPTIONS, BUT THE FIXED ACCOUNT CONTRACT VALUE WILL NEVER DECREASE TO   LESS THAN THE FIXED ACCOUNT MINIMUM VALUE.      THE CONTRACT VALUE HELD UNDER A FIXED ACCOUNT OPTION MAY BE WITHDRAWN WITHOUT A   MARKET VALUE ADJUSTMENT UPON RECEIPT OF WRITTEN NOTICE WITHIN 30 DAYS FOLLOWING THE   END OF THE CORRESPONDING FIXED ACCOUNT OPTION.      PLEASE  READ  THE  IMPORTANT  CONTRACT  DISCLOSURES  ON  THE  FOLLOWING   PAGE.      NOTICE OF RIGHT TO EXAMINE CONTRACT   YOU MAY RETURN THIS CONTRACT TO THE FINANCIAL PROFESSIONAL WHO SOLD YOU THE   CONTRACT OR THE COMPANY NO LATER THAN 20 DAYS AFTER YOU RECEIVE IT (60 DAYS AFTER YOU   RECEIVE IT IF YOU PURCHASED THE CONTRACT AS A REPLACEMENT CONTRACT). THE COMPANY   WILL REFUND THE CONTRACT VALUE CALCULATED ON THE BUSINESS DAY ON WHICH THE   CONTRACT IS RETURNED TO THE SELLING FINANCIAL PROFESSIONAL OR THE COMPANY RECEIVES   THE CONTRACT AT ITS SERVICE CENTER, INCLUDING ANY FEES OR OTHER CHARGES DEDUCTED   FROM THE PREMIUMS OR IMPOSED UNDER THE CONTRACT. RETURNED CONTRACTS ARE VOID.      Please Note: The Company reserves the right to allocate all Premium received during the "Notice of Right to   Examine Contract" period to a money market Investment Division or the Fixed Account. After the "Notice of Right   to Examine Contract" period expires, the Company will allocate the Contract Value to the Contract Options You   have specified.     INDIVIDUAL DEFERRED VARIABLE AND FIXED                           This Contract is signed by the Company ANNUITY CONTRACT WITH MARKET VALUE  ADJUSTMENT. (FLEXIBLE PREMIUM).                                                        DEATH BENEFIT AVAILABLE.  INCOME OPTIONS AVAILABLE.  NONPARTICIPATING.  CONTAINS PROVISIONS THAT                                                                          President  WAIVE WITHDRAWAL CHARGES.         VA670NY                                                                                      Secretary 

 

    Home   Office:                Service Center:  [2900  Westchester Avenue     [P.O. Box 24068  Purchase,  New York 10577]    Lansing, MI 48909-4068                                1-800-599-5651                                www.jackson.com]                           IMPORTANT - CONTRACT DISCLOSURES                                                                               PLEASE READ CAREFULLY                                                               PLEASE REVIEW THE CONTRACT DATA PAGES FOR CONTRACT CHARGES.      THE COMPANY WILL RE-DETERMINE THE CONTRACT'S FIXED ACCOUNT MINIMUM INTEREST   RATE EACH JANUARY ON THE REDETERMINATION DATE.      THE COMPANY MAY RESTRICT OR REFUSE FUTURE PREMIUM PAYMENTS, PREMIUM   ALLOCATION, TRANSFERS TO, OR DISCONTINUE THE FIXED ACCOUNT OPTION(S) AT ANY   TIME, ON A NONDISCRIMINATORY BASIS, IF THE YIELD ON INVESTMENT WOULD NOT   SUPPORT THE MINIMUM INTEREST RATE GUARANTEED UNDER THE FIXED ACCOUNT(S).   SHOULD THE COMPANY IMPOSE SUCH RESTRICTIONS, THE COMPANY WILL GIVE AT LEAST 30   DAYS ADVANCE NOTICE TO YOU. THE COMPANY WILL ALSO PROVIDE WRITTEN NOTICE   WHEN SUCH RESTRICTIONS NO LONGER EXIST.      ONE OR BOTH OF THE DCA+ FIXED ACCOUNT OPTIONS MAY NOT BE AVAILABLE ON THE   ISSUE DATE. PLEASE CHECK THE CONTRACT DATA PAGES TO DETERMINE WHICH DCA+   FIXED ACCOUNT OPTIONS ARE CURRENTLY AVAILABLE.      ONE OR BOTH OF THE DCA+ FIXED ACCOUNT OPTIONS MAY NOT BE AVAILABLE AFTER ISSUE   OF THIS CONTRACT.                                                                VA670NY                          Contract Cover Page Continued 

 

                             TABLE OF CONTENTS                      Provision                             Page Number                 Contract Data Pages                                    [3a                 Definitions                                             4                 General Provisions                                      8                 Accumulation Provisions                                13                 Withdrawal Provisions                                  16                 Death Benefit Provisions                               19                 Income Provisions                                      22                 Termination Provision                                  26]    If You have questions about this Contract or require information about coverage or complaint  resolutions, You may contact the Company's Service Center identified on the Contract's cover  page.      VA670NY                               2 

 

                           CONTRACT DATA PAGES    Contract Number:                    [1234567890]                                        Owner:                              [John Doe]                                        Owner Issue Age:                    [35]                                        Joint Owner:                        [Jane Doe]                                        Joint Owner Issue Age:              [35]                                        Annuitant:                          [John Doe]                                        Annuitant Issue Age:                [35]                                        Joint Annuitant:                    [Jane Doe]                                        Joint Annuitant Issue Age:          [35]                                        Initial Premium:                    [$5,000]                                        Issue Date:                         [May 1, 2020]                                        Issue State:                        NY                                        Income Date:                        [May 1, 2080]     Primary Beneficiary(ies):           [Brian Doe]     Contingent Beneficiary(ies):        [Mary Doe]                                                                                                                                                                                                                                                                                                                                                            VA670NY-CB1                           3a 

 

                      CONTRACT DATA PAGES (CONT'D)    FIXED ACCOUNT, INTEREST RATE AND CONTRACT CHARGE INFORMATION:    Initial Fixed Account Minimum Interest Rate: [1.00%]  The Company will re-determine the Fixed Account Minimum Interest Rate each January on the  Redetermination Date. The Fixed Account Minimum Interest Rate is the guaranteed minimum  interest rate under the Contract and may change each year on the Redetermination Date.    Initial Base Interest Rate:       [1.00% for the 1-Year Fixed Account Option Period                                    1.00% for the 3-Year Fixed Account Option Period                                    1.00% for the 5-Year Fixed Account Option Period                                    1.00% for the 7-Year Fixed Account Option Period]    Initial Current Interest Rate:    [1.00% for the 1-Year Fixed Account Option Period                                    1.00% for the 3-Year Fixed Account Option Period                                    1.00% for the 5-Year Fixed Account Option Period                                    1.00% for the 7-Year Fixed Account Option Period]                                      Initial Current DCA+ Interest Rate: [6-month [X.XX%] [NOT CURRENTLY AVAILABLE]                                    [12-month [X.XX%] [NOT CURRENTLY AVAILABLE]    ONE OR BOTH OF THE DCA+ FIXED ACCOUNT OPTIONS MAY NOT BE AVAILABLE ON  THE ISSUE DATE. AVAILABILITY IS INDICATED ABOVE.    Maximum DCA+ Rate: [8.00%] over the net investment earnings rate.    Interest Rate for Adjustments Due to Misstatement of Age or Sex: [1.00%]    Annual Contract Maintenance Charge: [$30]  The Company will deduct the Annual Contract Maintenance Charge from the Contract Value  (but not the Remaining Premium) on each Contract Anniversary that occurs on or before the  Income Date or when You withdraw the Contract Value in full on a date other than a Contract  Anniversary. The Company will only deduct the Annual Contract Maintenance Charge from  Contracts with a Contract Value less than [$50,000].    Core Contract Charge: [1.0000%]  The Core Contract Charge is expressed as an annual percentage and is deducted daily from  the Separate Account Contract Value (but not the Remaining Premium). The Company will  reduce the Core Contract Charge to [0.8500%] if the Contract Value on the later of the Issue  Date or the most recent Contract Quarterly Anniversary is greater than or equal to [$1,000,000].  If the Contract Value subsequently falls below [$1,000,000] on any Contract Quarterly  Anniversary, the Company will reinstate the charge of [1.0000%] for the following Contract  Quarter.    Total Asset-Based Charges: [1.0000%]  The Total Asset-Based Charges are expressed as an annual percentage and are deducted daily  from the Separate Account Contract Value (but not the Remaining Premium). The Company will  deduct asset-based charges daily as part of the Accumulation Unit Value calculation. Total  Asset-Based Charges include the Core Contract Charge and asset-based charges for add-on  benefits.  VA670NY-CB1                           3b 

 

                      CONTRACT DATA PAGES (CONT'D)    FIXED ACCOUNT, INTEREST RATE AND CONTRACT CHARGE INFORMATION (continued):    Transfer Charge: [$25]  The Company allows [25] free transfers between Contract Options in a Contract Year. The  Company charges a fee for each transfer You make in excess of the [25] free transfers in any  Contract Year. The Company deducts Transfer Charges from the amount You seek to transfer  before allocation to the new Contract Option. The Company does not assess Transfer Charges  on transfers under any of the Company's systematic investment programs, and the Company  does not count those transfers against the [25] free transfers allowed in a Contract Year. Free  transfers not utilized during a given Contract Year cannot be carried forward to subsequent  Contract Years.    Add-on Benefit Charges:  If applicable, refer to the supplemental contract data pages of any attached add-on benefits for  additional charges and fees associated with Your Contract.    WITHDRAWALS:    Withdrawal Charge Schedule:             Completed Years Since                    Withdrawal Charge            Receipt of Premium                         Percentage                    0                                    6.50%                    1                                    6.00%                    2                                    5.00%                    3                                    4.00%                    4                                    3.00%                     5+                                  0.00%    Please see Withdrawal Provisions for a complete explanation of the determination of Withdrawal  Charges.    Minimum partial withdrawal amount unless as a scheduled part of an automatic  withdrawal program: [$500]    Minimum partial withdrawal amount as a scheduled part of an automatic withdrawal  program: [$50]    Minimum Contract Value remaining after a partial withdrawal: [$2,000]    Free Withdrawal Percentage: [10%]             VA670NY-CB1                           3c 

 

                      CONTRACT DATA PAGES (CONT'D)    MARKET VALUE ADJUSTMENT (MVA):    An MVA is a positive or negative adjustment the Company applies to amounts You remove from  a Fixed Account Option due to withdrawals or transfers.    The MVA reflects the movement in the Base Interest Rate since the date of Your allocation to  the Fixed Account Option from which You remove Fixed Account Contract Value, which is  valued over the number of months remaining in the Fixed Account Option period.    The MVA may:  1.  reduce the value of the amount paid or transferred if the Base Interest Rate on the date You     remove Fixed Account Contract Value from a Fixed Account Option is greater than the Base     Interest Rate on the date of Your allocation to that Fixed Account Option; or  2.  increase the value of the amount paid or transferred if the Base Interest Rate on the date     You remove Fixed Account Contract Value from a Fixed Account Option is less than the     Base Interest Rate on the date of Your allocation to that Fixed Account Option.    The Company applies the same MVA formula regardless of whether the formula results in an  increase or decrease to amounts You remove from a Fixed Account Option.    The Company applies the MVA formula to the amount You remove less any applicable charges.    MVA formula. The Company calculates the MVA by multiplying the amount You remove from a  Fixed Account Option by the result of the formula below:                                      (m/12)                              [1+ I ]                                        -1                                   (m/12)                              [1+J ]                 where:    I  is  the Base Interest Rate the Company credits to the Fixed Account Option from which You        are removing Fixed Account Contract Value.  J  is  the Base Interest Rate the Company credits on new allocations to Fixed Account        Options with a duration equal to the number of years remaining in the Fixed Account        Option from which You remove Fixed Account Contract Value , increased by 0.0025. If        the Company does not offer such a Fixed Account Option on the date of the removal, the        Company will establish "J" by straight-line interpolation between the two (2) Fixed        Account Options with durations closest to the number of years remaining in the Fixed        Account Option from which You remove Fixed Account Contract Value.  m  is  the number of complete months remaining from the date of the removal to the end of the        period of the Fixed Account Option from which You are removing Fixed Account        Contract Value.    The Company makes no MVA when J is greater than I by less than 0.0025.        VA670NY-CB1                           3d 

 

                      CONTRACT DATA PAGES (CONT'D)    MVA (continued):    In no event will a total withdrawal from a Fixed Account Option be less than the Fixed Account  Minimum Value.    The Company will not apply an MVA to:  1.  death benefit proceeds;  2.  payment of charges or fees;  3.  amounts annuitized;  4.  exercise of Your Notice of Right to Examine Contract provision;  5.  withdrawals taken under the Free Withdrawal provision;  6.  amounts required to satisfy the Required Minimum Distribution (RMD);  7.  amounts You remove from the 1-Year Fixed Account Option;  8.  amounts You remove from any Fixed Account Option on the Latest Income Date; or  9.  amounts You remove from any Fixed Account Option in the 30-day period following the end     of a Fixed Account Option.    Unavailability of Base Interest Rate. In the event that the Base Interest Rate cannot be  determined on the date You remove Fixed Account Contract Value from a Fixed Account  Option, the MVA will be determined by using the asked yield to maturity of the U.S. Treasury  Notes with the same remaining term, using straight-line interpolation where necessary as  published in The Wall Street Journal on the next succeeding Business Day following the  effective date of the MVA.    TRANSFERS:    Transfer among Investment Divisions. At any time, You may transfer all or a portion of Your  Contract Value in any Investment Division to any available Investment Division(s).    Transfer from an Investment Division to a Fixed Account Option. Before the Income Date,  You may transfer all or a portion of Your Contract Value in an Investment Division to any  available Fixed Account Option(s). Additional details regarding restrictions on transfers are  outlined in the Transfer Provisions on page 11.    Transfer from a Fixed Account Option to an Investment Division or to a Fixed Account  Option. Before the Income Date, You may transfer all or a portion of Your Contract Value in a  Fixed Account Option, subject to any applicable MVA, to any available Investment Division(s) or  any available Fixed Account Option(s). Additional details regarding restrictions on transfers are  outlined in the Transfer Provisions on page 11 and in the Fixed Account Provisions on page 13.    Transfer Effective Date: Transfers You request will be effective as of the end of the Business  Day upon which the Company receives Your transfer request in Good Order at the Company's  Service Center.    Additional details on transfer restrictions are outlined in the Transfer of Funds Restrictions  section of the General Provisions on page 11.    VA670NY-CB1                           3e  

 

                      CONTRACT DATA PAGES (CONT'D)    PREMIUM(S):    This is a flexible Premium Contract. You may change the amount, frequency and timing of  Premium payments, subject to the minimum and maximum Premium payment amounts  specified below. The Company may waive the minimums or maximums at any time.    Minimum Initial Premium for Non-Qualified Plan Contract: [$5,000]    Minimum Initial Premium for Qualified Plan Contract: [$2,000]    Minimum Subsequent Premium: [$500] ([$50] if made as a scheduled part of an automatic  payment plan)    Maximum Total Premium under a Contract: [$2,500,000]    Minimum Amount Allocated to an Investment Division or Fixed Account Option: [$100]    The Company may restrict or reject Premium allocations to a Fixed Account Option(s) at any  time as outlined in the Transfer Provisions on page 11 and in the Fixed Account Provisions on  page 13. The Company will allocate any Premium payment subsequent to issue according to  Your most recent instructions on file with the Company, provided that each allocation complies  with the Company's then current minimum amounts and restrictions.    Minimum Contract Value to Participate in the Enhanced Interest Rate Dollar Cost  Averaging Program: [$15,000]    CONTRACT OPTIONS:    Investment Divisions: Investment Division(s) available at issue are identified in the application,  if attached, current prospectus and any supplements. The Company may offer new Investment  Divisions, or eliminate, substitute, or combine Investment Divisions.    Separate Account: [JNLNY Separate Account I]    Fixed Account Options: [1-Year Period; 3-Year Period; 5-Year Period; and 7-Year Period; the  availability of each option will be determined by the Company.] The 1-Year, 3-Year, 5-Year, and  7-Year periods may not be available at all times. In the event the Company discontinues the  availability of the Fixed Account Option(s) a money market Investment Division will be made  available for Premium allocation and transfers.    Available Fixed Account Options are identified in the current prospectus and any supplements.    Maximum Contract Option Allocations Allowed: The number of allocations to the Contract  Options may not exceed [99] at any one time.    The Company will identify the Contract Options You select in a confirmation the Company  sends You on or after the Issue Date and are stated in the application or any supplemental  application attached to this Contract, if any.    VA670NY-CB1                           3f 

 

                                                                  CONTRACT DATA PAGES (CONT'D)                                                                                  TABLE OF INCOME OPTIONS                              The following table shows income values for each $1,000 of net proceeds applied to the Income               Option.                  UNDER OPTION 4                                                           MONTHLY INSTALLMENTS UNDER OPTIONS 1 OR 3                                                                                                                                                                                                  Age of                               Age of                                  Age of                                 Age of                       No. of     Monthly     Annui-          No. of Mos.          Annui-           No. of Mos.            Annui-           No. of Mos.           Annui-              No. of Mos.  Monthly      Install-    tant             Certain              tant              Certain               tant              Certain              tant                Certain   Install-    ments   ments                           Male      Life     120      240      Male       Life      120      240      Female      Life     120      240      Female       Life       120        240     60        17.09        40       2.33     2.32     2.31      68        4.72      4.57     4.02       40        2.22     2.22     2.21        68        4.36       4.26       3.86     72        14.31        41       2.37     2.36     2.35      69        4.90      4.72     4.09       41        2.26     2.26     2.25        69        4.52       4.40       3.94     84        12.33        42       2.41     2.41     2.39      70        5.09      4.89     4.16       42        2.30     2.30     2.29       70         4.69       4.55       4.02     96        10.84        43       2.45     2.45     2.43      71        5.31      5.06     4.23       43        2.34     2.34     2.32        71        4.87       4.70       4.09    108         9.68        44       2.50     2.50     2.47      72        5.54      5.24     4.29       44        2.38     2.38     2.36        72        5.06       4.87       4.16    120         8.76        45       2.55     2.54     2.52      73        5.79      5.43     4.34       45        2.42     2.42     2.40        73        5.28       5.04       4.22    132         8.00        46       2.60     2.59     2.56      74        6.06      5.63     4.39       46        2.47     2.47     2.45        74        5.51       5.23       4.28    144         7.37        47       2.65     2.64     2.61      75        6.35      5.83     4.43       47        2.52     2.51     2.49        75        5.76       5.42       4.34    156         6.84        48       2.71     2.70     2.66      76        6.67      6.04     4.47       48        2.57     2.56     2.54       76         6.03       5.62       4.38    168         6.38        49       2.77     2.76     2.71      77        7.02      6.26     4.50       49        2.62     2.61     2.59        77        6.33       5.83       4.43    180         5.98        50       2.83     2.82     2.76      78        7.40      6.48     4.52       50        2.67     2.67     2.64        78        6.65       6.04       4.46    192         5.64        51       2.89     2.88     2.82      79        7.81      6.70     4.54       51        2.73     2.72     2.69        79        7.01       6.26       4.49    204         5.33        52       2.96     2.94     2.88      80        8.27      6.92     4.56       52        2.79     2.78     2.74        80        7.40       6.48       4.52    216         5.06        53       3.03     3.01     2.94      81        8.76      7.13     4.57       53        2.85     2.84     2.80        81        7.83       6.70       4.54    228         4.82        54       3.10     3.08     3.00      82        9.30      7.34     4.58       54        2.92     2.91     2.85       82         8.29       6.92       4.56    240         4.60        55       3.18     3.16     3.06      83        9.89      7.53     4.58       55        2.99     2.98     2.91        83        8.80       7.13       4.57    252         4.40        56       3.26     3.23     3.13      84       10.54      7.72     4.59       56        3.07     3.05     2.98        84        9.35       7.33       4.58    264         4.22        57       3.35     3.32     3.19      85       11.26      7.88     4.59       57        3.14     3.12     3.04        85        9.95       7.52       4.58    276         4.06        58       3.44     3.40     3.26      86       12.05      8.03     4.59       58        3.23     3.20     3.11        86       10.59       7.70       4.59    288         3.90        59       3.54     3.49     3.34      87       12.91      8.17     4.59       59        3.31     3.29     3.18        87       11.28       7.87       4.59    300         3.77        60       3.64     3.59     3.41      88       13.86      8.28     4.60       60        3.40     3.37     3.25       88        12.03       8.02       4.59    312         3.64        61       3.74     3.69     3.48      89       14.88      8.38     4.60       61        3.50     3.46     3.32        89       12.84       8.15       4.59    324         3.52        62       3.86     3.79     3.56      90       15.99      8.46     4.60       62        3.60     3.56     3.40        90       13.71       8.27       4.60    336         3.41        63       3.98     3.91     3.64      91       17.17      8.53     4.60       63        3.71     3.66     3.47        91       14.66       8.37       4.60    348         3.31        64       4.11     4.02     3.71      92       18.43      8.58     4.60       64        3.82     3.77     3.55        92       15.70       8.45       4.60    360         3.21        65       4.24     4.15     3.79      93       19.78      8.63     4.60       65        3.95     3.88     3.63        93       16.86       8.53       4.60                            66       4.39     4.28     3.87      94       21.20      8.66     4.60       66        4.07     4.00     3.71       94        18.13       8.58       4.60                            67       4.55     4.42     3.95      95       22.67      8.68     4.60       67        4.21     4.12     3.79        95       19.53       8.63       4.60                              Note: Due to the volume of relevant information, the Table does not provide income values for               Option 2 described in the Income Provisions. Those values are available from the Company's               Service Center upon request. You may contact the Company's Service Center as shown on the               cover page of the Contract.                              BASIS OF COMPUTATION. The 2012 Individual Annuity Mortality Period Table, with an               assumed net investment rate of 1.00% and a 0% expense load, provides the actuarial basis for               the Table of Income Options. The Table of Income Options does not include any applicable tax.                                VA670NY-CB1                                                                 3g 

 

                                  DEFINITIONS    ACCUMULATION UNIT. A unit of measure the Company uses to calculate the value of  amounts allocated to an Investment Division before the Income Date.    ANNUITANT. The natural person(s) so designated on the Contract Data Pages, or by  subsequent designation, on whose life the Company determines the amount of Income  Payments provided by the Contract. References to the Annuitant include all Joint Annuitants, if  applicable.    ANNUITIZE. When You elect to convert the Contract Value into Income Payments.    ANNUITY UNIT. A unit of measure the Company uses to calculate each Variable Annuity  Payment.    BASE INTEREST RATE. The annual percentage, declared by the Company, at which Your  money grows for a specified Fixed Account Option period.    BENEFICIARY(IES). The natural person(s) or legal entity(ies) You designate as Primary or  Contingent Beneficiary(ies) to receive any death benefit provided by the Contract. The initial  designated Beneficiary(ies) are shown on the Contract Data Pages.    BUSINESS DAY. Any day that the New York Stock Exchange (NYSE) is open for business. The  Business Day ends when the NYSE closes for the day.    CONTRACT. The Individual Deferred Variable and Fixed Annuity Contract described herein.    CONTRACT ANNIVERSARY. Each one-year anniversary of the Issue Date.    CONTRACT OPTION(S). The Investment Divisions and Fixed Account Options the Contract  offers, as shown on the Contract Data Pages. Each Contract Option is explained in the  Accumulation Provisions.    CONTRACT QUARTERLY ANNIVERSARY. Each three-month anniversary of the Issue Date.    CONTRACT VALUE. The current value of the amounts under this Contract allocated to the  Investment Divisions and Fixed Account Options.    CONTRACT YEAR. The twelve-month period beginning on the Issue Date and on any Contract  Anniversary thereafter while the Contract remains in force.    CURRENT INTEREST RATE. The Base Interest Rate plus any additional interest rate the  Company credits. The Current Interest Rate will never be less than the Fixed Account Minimum  Interest Rate.    DESIGNATED OPTION(S). The Investment Division(s) and/or Fixed Account Option(s) You  select, to which amounts will be transferred from a Source Option pursuant to one of the  Company's systematic investment programs.    VA670NY                               4 

 

                             DEFINITIONS (CONT'D)    DUE PROOF. Evidence of death, including but not limited to, a certified death certificate issued  by the governmental authority for the location of the death, or other lawful evidence the  Company requires.    FIXED ACCOUNT. The Fixed Account is part of the Company's general account. A Fixed  Account earns a specified interest rate, not less than the guaranteed minimum interest rate, to  which You may allocate Premium and Contract Value unless the Company has restricted such  allocations.    FIXED ACCOUNT CONTRACT VALUE. The sum of all amounts allocated to the Fixed Account  Options, reduced by the gross amount of withdrawals and transfers from the Fixed Account  Options, and applicable charges and taxes, plus all interest credited to the Fixed Account  Options.    FIXED ACCOUNT MINIMUM INTEREST RATE. The Fixed Account Minimum Interest Rate is  the minimum annual percentage at which Your money allocated to the Fixed Account will grow.  The Company uses this rate to determine the Fixed Account Minimum Value. The Initial Fixed  Account Minimum Interest Rate is shown on the Contract Data Pages.    FIXED ACCOUNT MINIMUM VALUE. The Fixed Account Minimum Value is equal to all  amounts allocated to the Fixed Account Options, net of applicable taxes, reduced by partial  withdrawals, transfers, and charges from the Fixed Account Options, accumulated at the Fixed  Account Minimum Interest Rate, less any Withdrawal Charges or tax due.    FIXED ACCOUNT OPTION. A Contract Option within the Fixed Account that specifies a fixed  period for which the Company credits the Current Interest Rate.    GOOD ORDER. The Company's receipt of all information, documentation, instructions and/or  Premium the Company requires before it will issue the Contract or execute any transaction.    INCOME DATE. The date on which Income Payments are to begin as described in the Income  Provisions. The Income Date must be at least thirteen (13) months after the Contract Issue  Date.    INCOME OPTION. One of the payment options provided under the Income Provisions.    INCOME PAYMENTS. Fixed Annuity Payments and Variable Annuity Payments offered by the  Company at the Income Date.    INVESTMENT DIVISIONS. Separate and distinct divisions of the Separate Account, each of  which invests in a specific Underlying Mutual Fund, and for which Accumulation Units and  Annuity Units are separately maintained. The Separate Account Contract Value in the  Investment Divisions will increase or decrease depending on the performance of the Underlying  Mutual Funds.    ISSUE DATE. The date the Company issued the Contract. The Issue Date is shown on the  Contract Data Pages.      VA670NY                               5 

 

                             DEFINITIONS (CONT'D)    JOINT OWNER. Each of the Contract Owners.    LATEST INCOME DATE. The Contract Anniversary on which You will be 95 years old, or such  earlier date required by a Qualified Plan, law or regulation.    NON-QUALIFIED PLAN. A retirement plan which does not qualify for favorable tax treatment  under Sections 401, 403, 408, 408A or 457 of the Internal Revenue Code, as amended.    OWNER ("YOU," "YOUR"). The natural person(s) or legal entity(ies) shown on the Contract  Data Pages, or by subsequent designation. In this Contract, "You" and "Your" also mean the  Owner. The primary Owner is the first Owner specified on the Contract Data Pages. References  to the Owner include the Joint Owner, if applicable.    PREMIUM(S). Money paid into this Contract for allocation to a Contract Option.    QUALIFIED PLAN. A retirement plan which qualifies for favorable tax treatment under Sections  401, 403, 408, 408A or 457 of the Internal Revenue Code, as amended.    REDETERMINATION DATE. The date the Fixed Account Minimum Interest Rate is reset as  described in the Fixed Account Minimum Interest Rate provision. It is the date each January that  coincides with the Issue Date. For example, if Your Contract's Issue Date is May 23, the  Redetermination Date will be January 23 each year following the Issue Date.    REDETERMINATION PERIOD. The twelve-month period that begins on each Redetermination  Date.    REMAINING PREMIUM. Total Premium paid into the Contract, reduced by withdrawals of  Premium, including the Withdrawal Charges, before withdrawals are adjusted for any applicable  MVA or charges.    REQUIRED MINIMUM DISTRIBUTION (RMD). For certain Qualified Plan contracts, the  RMD is the amount defined by the Internal Revenue Code and the implementing regulations  as the minimum distribution requirement that applies to this Contract only.    SEPARATE ACCOUNT. An asset account the Company has established and maintains in  accordance with applicable law. The Company has allocated a portion of its assets to this  account for this Contract and certain other contracts. The name of the Separate Account is  shown on the Contract Data Pages.    SEPARATE ACCOUNT CONTRACT VALUE. The current value of the amounts under this  Contract allocated to the Separate Account's Investment Divisions.    SERVICE CENTER. The Company's administrative address and telephone number as identified  on the Contract's cover page or as the Company may designate from time to time.      VA670NY                               6 

 

                             DEFINITIONS (CONT'D)    SOURCE OPTION. The Investment Division or Fixed Account Option You select from those the  Company makes available, from which amounts will be transferred to a Designated Option(s)  pursuant to one of the Company's systematic investment programs.    UNDERLYING MUTUAL FUNDS. The registered management investment companies in which  the assets of the Investment Divisions will be invested.    WITHDRAWAL CHARGE. A charge assessed against certain withdrawals. The Withdrawal  Charge Schedule is shown on the Contract Data Pages.    WITHDRAWAL VALUE. The Contract Value, less any tax payable, applicable Withdrawal  Charges, Annual Contract Maintenance Charge, and charges due under any add-on benefit,  adjusted for any applicable MVA.    VA670NY                               7 

 

                            GENERAL PROVISIONS    ANNUITANT. You may change the Annuitant at any time before the Income Date, unless the  Contract is owned by a legal entity. If the Contract is owned by a legal entity, the Company will  use the oldest Annuitant's age for all Contract purposes unless otherwise specified in the  Contract. The Company reserves the right to limit the number of Joint Annuitants to two (2).     ASSIGNMENT. You may assign ownership of this Contract subject to the interests of assignees  and irrevocable Beneficiaries. The Company will only be bound by an assignment if a request is  submitted in a form acceptable to the Company and received in Good Order at the Company's  Service Center. Unless You specify otherwise, an assignment will take effect on the date the  request is signed by You, subject to any payments the Company has made or other actions the  Company has taken before the Company receives Your request.    The Company assumes no responsibility for the validity or tax consequences of any  assignment. If You make an assignment, You may have to pay taxes. The Company  encourages You to seek legal and/or tax advice.    BENEFICIARY. You may change the Beneficiaries, subject to the interest of assignees and  irrevocable Beneficiaries. The Company will only be bound by a change in Beneficiary if a  request is submitted in a form acceptable to the Company and received in Good Order at the  Company's Service Center. Any previously designated irrevocable Beneficiary must consent in  writing to any change in Beneficiary. Unless You specify otherwise, a change in Beneficiary will  take effect on the date the request is signed by You, subject to any payments the Company has  made or other actions the Company has taken before the Company receives Your request, and  while You are alive.    CHARGES AND FEES. The Contract permits the Company to assess certain charges and fees.  Charges and fees associated with Your Contract are listed on the Contract Data Pages.    CONFORMITY WITH LAWS. This Contract will be interpreted under the laws of the state of  New York as of the date issued and any applicable federal laws. Any provision that is in conflict  with New York law or any federal law is amended to conform to the minimum requirements of  such law. Non-conforming provisions may be enforced against the Company to the extent  provided by applicable New York or federal law.    DEFERRAL OF FIXED ACCOUNT PAYMENTS. The Company may defer payment of Your  request for a partial and/or total withdrawal from a Fixed Account Option for a period not  exceeding six (6) months. Such deferral will be made after the Company receives approval in  writing by the chief insurance regulator of the state of New York, if required. The Company will  credit interest on deferred amounts pursuant to New York law. The Company will not defer  death benefit payments, annuity payments or payments made to comply with the RMD  requirements of the Internal Revenue Code, as applicable.    ENTIRE CONTRACT. The Contract, attached application or supplemental application, if any,  and any attached endorsements, add-on benefits and amendments together make up the entire  Contract between You and the Company. All statements made by, or under the authority of, the  applicant for issuance of the Contract, shall be deemed representations and not warranties.    VA670NY                               8  

 

                       GENERAL PROVISIONS (CONT'D)    INCONTESTABILITY. The Company will not contest this Contract from its Issue Date, as  shown on the Contract Data Pages.    MINIMUM BENEFITS. For any paid-up annuity option, cash value or death benefit, the amount  available under this Contract shall not be less than the minimum benefits required by the state  of New York.    MISSTATEMENT OF AGE AND/OR SEX. If Your or the Annuitant's age and/or sex is misstated  at the time the Contract's Income Payments become payable, the Company will adjust the  payments to reflect income consistent with the correct age and/or sex. Immediately upon  discovery, the Company will adjust the next payment due as a credit or charge, as appropriate,  for any underpayments or overpayments using the Interest Rate for Adjustments Due to  Misstatement of Age or Sex shown on the Contract Data Pages.    MODIFICATION OF CONTRACT. No financial professional has authority to change or waive  any of this Contract's provisions. No change to or waiver of this Contract's terms is valid unless  in writing and signed by the Company's President, Vice President, Secretary or Assistant  Secretary; and approved by the New York Department of Financial Services prior to use. Your  written consent will be obtained prior to changing any terms and conditions of the Contract in a  manner that diminishes Your rights and/or benefits under the Contract.    NONPARTICIPATING. This Contract is nonparticipating and does not share in the Company's  surplus or earnings.    OWNER. You may change the Owner or the Joint Owner. The Company will only be bound by a  change of ownership if submitted in a form acceptable to the Company and received in Good  Order at the Company's Service Center. No person whose age exceeds the maximum issue  age the Company had set as of the Issue Date may become a new Owner. Unless You specify  otherwise, a change of ownership will take effect on the date the request is signed by You,  subject to any payments the Company has made or other actions the Company has taken  before the Company receives Your request. Joint Owners have equal ownership rights;  therefore, each Owner must authorize any exercise of Contract rights unless the Joint Owners  instruct the Company in writing to act upon authorization of an individual Joint Owner. The  maximum number of Joint Owners allowed is two (2).    The Company assumes no responsibility for the validity or tax consequences of any  ownership change. If You make an ownership change, You may have to pay taxes. The  Company encourages You to seek legal and/or tax advice.    PROOF OF AGE, SEX AND/OR SURVIVAL. The Company may require proof of age and/or  sex satisfactory to the Company at any time. If any payment required by this Contract depends  on a living Annuitant, Owner, or Beneficiary, the Company may require proof of that person's  survival satisfactory to the Company.    PROTECTION OF PROCEEDS. A Beneficiary may not assign Contract proceeds before the  proceeds are payable. Contract proceeds are not subject to the claims of creditors or to legal  process unless required by New York law.    VA670NY                               9 

 

                       GENERAL PROVISIONS (CONT'D)    REPORTS. The Company will send a report to Your last address in the Company's records at  least annually before the Income Date. In the case of Joint Owners, the Company will send  reports only to the primary Owner's address. Each report will provide at least the following  information:  1.  the dates that begin and end the reporting period;  2.  the Contract Value at the beginning and at the end of the current reporting period prior to the     application of any MVA;  3.  the Withdrawal Charge and MVA amount the Company used to determine the Withdrawal     Value;  4.  the amounts the Company has credited to and deducted from the Contract Value during the     reporting period;  5.  the Withdrawal Value at the end of the reporting period;  6.  the death benefit at the end of the reporting period; and  7.  any other information state and federal law require.    You may receive copies of reports the Company provides upon request at no additional charge.    SUBSTITUTION OF UNDERLYING MUTUAL FUND(S). If the Company determines that an  Underlying Mutual Fund is no longer available or appropriate for Contract purposes, the  Company may replace that Underlying Mutual Fund with another Underlying Mutual Fund  without Your consent. No replacement or substitution will be made without notice to You or  without prior approval of the New York Department of Financial Services. Changes of the  Underlying Mutual Fund(s) are subject to federal securities laws and the laws of the state of  New York. In the event the Company replaces an Underlying Mutual Fund, You are permitted to  transfer Your Contract Value and allocate future Premiums among the available Investment  Divisions, consistent with Your rights under the Contract.    SUSPENSION OF SEPARATE ACCOUNT PAYMENTS. The Company may suspend or delay  withdrawals of Separate Account Contract Value or transfers to or from an Investment Division  for any period when:  1.  the NYSE is closed (other than customary weekend and holiday closings);  2.  under applicable Securities and Exchange Commission (SEC) rules, trading on the NYSE is     restricted;  3.  under applicable SEC rules, an emergency exists such that it is not reasonably practicable     to dispose of securities in the Separate Account or to determine the value of its assets; or  4.  the SEC, by order, so permits.    The Company will not suspend death benefit payments, annuity payments, previously  scheduled guaranteed living benefit payments or payments made to comply with the RMD  requirements of the Internal Revenue Code, as applicable.    TAXES. The Company will deduct any taxes attributed to the Contract and payable to the state  of New York or other government entity from the Contract Value as they are incurred.    VA670NY                               10 

 

                       GENERAL PROVISIONS (CONT'D)    TRANSFER OF FUNDS. The Contract Data Pages describe the conditions for transfers of  funds between Contract Options.    Transfer of Funds Restrictions. The Company may restrict the number and frequency of  transfers into and between Contract Options in certain circumstances. This includes,  circumstances in which the Company determines, that a reasonably designed restriction is  required to prevent transfers that would disadvantage an Owner. The Company may impose a  restriction including:  1.  a minimum time between transfers;  2.  a limitation on transfer requests of an agent acting for one or more Owners; and  3.  a limitation on the dollar amount of any transfer.    The Company may also impose restrictions on Your ability to make transfers to or from the 1- Year Fixed Account Option. This includes a restriction that transfers from the 1-Year Fixed  Account Option in any Contract Year may not exceed the maximum amount, as defined below:  1.  in the first Contract Year that transfer restrictions are in effect, or if in the prior Contract Year     the maximum amount was not transferred out of the 1-Year Fixed Account Option, the     maximum amount that You may transfer out of the 1-Year Fixed Account Option is equal to     1/3 of the Contract Value in the 1-Year Fixed Account Option at the beginning of the current     Contract Year;  2.  if the maximum amount (1/3 of the value of the 1-Year Fixed Account Option at the     beginning of the prior Contract Year) was transferred from the 1-Year Fixed Account Option     in the prior Contract Year, the maximum amount that You may transfer out of the 1-Year     Fixed Account Option in the current Contract Year is equal to 1/2 of the Contract Value in     the 1-Year Fixed Account Option at the beginning of the current Contract Year. Any     transfers out of the 1-Year Fixed Account Option cannot begin until twelve (12) calendar     months after the last transfer out of the 1-Year Fixed Account Option in the prior Contract     Year;  3.  if the maximum amount (1/3 and then 1/2 of the value of the 1-Year Fixed Account Option at     the beginning of each of the two (2) prior Contract Years, respectively) was transferred from     the 1-Year Fixed Account Option in each of the two (2) prior Contract Years, You may     transfer the remaining Contract Value in the 1-Year Fixed Account Option. Any transfers out     of the 1-Year Fixed Account Option cannot begin until twelve (12) calendar months after the     last transfer out of the 1-Year Fixed Account Option in the prior Contract Year.    If the 1-Year Fixed Account Option restriction is imposed, the Company may:  1.  limit Your ability to transfer into or allocate new Premium to the 1-Year Fixed Account Option     in any Contract Year in which You make a transfer from the 1-Year Fixed Account Option.  2.  limit Your ability to transfer from the 1-Year Fixed Account Option in any Contract Year in     which You make a transfer into or allocate new Premium to the 1-Year Fixed Account     Option.  3.  offer an optional automated systematic transfer program to allow for systematic transfers out     of the 1-Year Fixed Account Option.    If the 1-Year Fixed Account Option restriction is imposed transfers under systematic investment  programs do not count against the maximum amount, and the Contract Value under such  programs is excluded from the determination of the maximum amount.    VA670NY                               11 

 

                       GENERAL PROVISIONS (CONT'D)    Systematic Investment Programs. The Company may from time to time offer systematic  investment programs that allow You to systematically transfer funds between the Contract  Options. These programs may include, but are not limited to, dollar cost averaging, portfolio  rebalancing, and the automatic monthly transfer of earnings from the 1-Year Fixed Account  Option and/or money market Investment Division to the Designated Option(s). After issue of  Your Contract, You may elect one of the programs by contacting the Company's Service Center  to obtain materials and forms that describe, and are required to participate in, these programs.  The Company makes no guarantee that these programs will result in a profit or protect against  loss.    The Company's optional dollar cost averaging program permits You to authorize the automatic  monthly, quarterly, semiannual, or annual transfer of a fixed dollar amount or selected  percentage of the value of a Source Option, to one (1) or more Designated Option(s).    The Company may offer an enhanced interest rate on Premium which an Owner that selects  dollar cost averaging allocates to the 1-Year Fixed Account Option (as the Source Option). You  may participate in the enhanced interest rate dollar cost averaging program only if Your  Contract Value is at least equal to the minimum shown on the Contract Data Pages. Under an  enhanced interest rate dollar cost averaging program, amounts You allocate to the Source  Option are automatically transferred to the Designated Option(s) of Your choice at a monthly  frequency within a 6-month or 12-month duration until all amounts in the Source Option have  been transferred. The Company may elect not to offer one or both durations at any time. When  offered, You may contact the Company's Service Center to request the interest rates and the  specified periods applicable to the enhanced interest rate dollar cost averaging program.     If You elected the enhanced interest rate dollar cost averaging program when this Contract was  issued, the duration and interest rates will be specified on the Contract Data Pages. If You elect  this program after issue of Your Contract, a confirmation showing the duration and interest rate  applicable will be sent to You. The predetermined level monthly transfer amount is calculated  such that the entire balance of the Source Option will be completely transferred by the end of  the specified duration. In the event You cancel participation in the enhanced interest rate dollar  cost averaging program, the Company will transfer the Source Option balance, including any  interest, into the Designated Option(s) You selected.    WRITTEN NOTICE. Written information or instructions You intend to give to the Company must  be in Good Order and delivered to the Company's Service Center, unless the Company advises  You otherwise. A notice relating to Owner, Beneficiary designation or assignment changes shall  take effect on the date the request is signed by You, subject to any payments the Company has  made or other actions the Company has taken before the Company receives the request.  Otherwise, instructions included in a Written Notice will take effect on the date the Company  receives the notice at the Company's Service Center.    The Company will deliver any notice or communication to Your last known address in the  Company's records unless You request otherwise in writing. You are responsible for promptly  notifying the Company of any address change or any error in a Company notice sent to You. In  the case of Joint Owners, the Company will send notices and other communications to the  primary Owner's address.    VA670NY                               12 

 

                        ACCUMULATION PROVISIONS    You may not allocate funds to more than the maximum number of Contract Options, shown on  the Contract Data Pages, at any one time.    SEPARATE ACCOUNT. The Separate Account is an asset account shown on the Contract  Data Pages. The Separate Account consists of assets the Company has set aside and has kept  separate from the Company's general account assets and other separate accounts. The  Separate Account assets will not be charged with liabilities arising out of any other Company  business. The Company credits or charges all the income, gains, and losses resulting from the  Separate Account assets exclusively to the contracts supported by the Separate Account. The  Separate Account assets will be available to cover the liabilities of the Company's general  account only to the extent that they exceed the Separate Account liabilities arising from the  Contracts supported by the Separate Account. The Separate Account is divided into several  Investment Divisions. The Company will value the Separate Account assets at their fair market  value at least monthly.    Accumulation Units. The Separate Account Contract Value may increase or decrease  depending on the performance of the Investment Divisions. The Company uses a unit of  measure called an Accumulation Unit to measure the Separate Account Contract Value before  the Income Date. The value of an Accumulation Unit may increase or decrease from Business  Day to Business Day. Transactions affecting the Separate Account Contract Value, such as  withdrawals, transfers, and certain charges, result in the redemption of Accumulation Units but  do not change the value of Accumulation Units.    When You make an allocation to the Investment Divisions, the Company credits Your Contract  with Accumulation Units. The Company determines the number of Accumulation Units credited  to Your Contract by dividing the amount You allocate to each Investment Division by its  Accumulation Unit Value at the close of the Business Day on which You make the allocation.    Accumulation Unit Value. The Company determines the Accumulation Unit Value for each of  the Investment Divisions by:  1.  determining the total amount of money allocated to that particular Investment Division;  2.  subtracting from that amount any applicable Core Contract Charge and taxes; and  3.  dividing the result by the number of outstanding Accumulation Units.    FIXED ACCOUNT. Allocations You make to Fixed Account Options are included in the  Company's general account. The Company's general account consists of all the Company's  assets, other than those in the Separate Account and other asset accounts.    You may select from the Fixed Account Options made available by the Company. Amounts in  the Fixed Account Option You select will earn interest at that option's Current Interest Rate  during the Fixed Account Option period. Interest will be credited no less frequently than annually  and will be credited from the date of the deposit to the date of withdrawal. The Company may  declare Base Interest Rates higher or lower than any Base Interest Rates the Company  previously declared but the interest rate credited to the Fixed Account Option will never be less  than the Fixed Account Minimum Interest Rate.    VA670NY                               13 

 

                   ACCUMULATION PROVISIONS (CONT'D)    You may allocate Premium, or make transfers from the Investment Divisions and/or Fixed  Account Options, to the Fixed Account Options at any time before the Income Date, subject to  the provisions of this Contract. You may not select any Fixed Account Option, other than the 1- Year Fixed Account Option, that extends beyond the Income Date.    Within at least fifteen (15) days, but not more than forty-five (45) days, prior to the end of any  Fixed Account Option period, the Company will notify You of Your ability to:  1.  withdraw amounts allocated to the Fixed Account Option within thirty (30) days following the     end of that Fixed Account Option without an MVA;  2.  elect any available Fixed Account Option of a different duration within thirty (30) days following     the end of that Fixed Account Option;  3.  elect a transfer to Investment Division(s) within thirty (30) days following the end of that Fixed     Account Option; or  4.  elect a Fixed Account Option with the same duration, if available, within thirty (30) days     following the end of that Fixed Account Option.    When the period of a Fixed Account Option ends:  1.  If the option ends within one (1) year of the Income Date, the Company will renew You into     the 1-Year Fixed Account Option;   2.  If the option ends more than one (1) year before the Income Date, You may select a new     Fixed Account Option that does not extend beyond the Income Date within thirty (30) days     of the end of the expired Fixed Account Option;   3.  If You do not select a Fixed Account Option within thirty (30) days of the end of the expired     Fixed Account Option:     a.  if the same option is available at the time and does not extend beyond the Income Date,        the Company will renew You into the same Fixed Account Option.     b.  if the same option is available at the time but extends beyond the Income Date, the        Company will select the available Fixed Account Option that ends closest to but before        the Income Date.     c.  if the same option is not available at the time but would not extend beyond the Income        Date were it available, the Company will select the available Fixed Account Option with        the period closest to but less than the Fixed Account Option that just ended.  4.  If there are no Fixed Account Option periods available at the end of the Fixed Account     Option period the Company will default to a money market Investment Division, unless You     specify otherwise.    The Company may restrict or refuse future Premium payments, Premium allocation and  transfers to the Fixed Account Option(s) at any time, on a nondiscriminatory basis, if the yield on  investment would not support the minimum interest rate guaranteed under the Fixed Account(s).  Should the Company impose such restrictions, the Company will give at least thirty (30) days  advance notice to You.    The Company will also provide Written Notice when such restrictions no longer exist.    If the Company restricts or discontinues the Fixed Account Option(s) all transfers or withdrawals  will be at least equal to the Contract Value without being subject to a negative MVA or Transfer  Charges.   VA670NY                               14 

 

                   ACCUMULATION PROVISIONS (CONT'D)    Fixed Account Minimum Interest Rate. The Initial Fixed Account Minimum Interest Rate  established on the Issue Date is shown on the Contract Data Pages. The Company will re- determine the Fixed Account Minimum Interest Rate on each Redetermination Date for that  Redetermination Period.    The Fixed Account Minimum Interest Rate on each Redetermination Date will be equal to:  1.  the average of all the daily reported five-year Constant Maturity Treasury Rates during     October of the year then ended, rounded to the nearest 1/20th of one (1) percent;  2.  less 1.25 percentage points;  3.  but never less than 1.00% or greater than 3.00%.    The Fixed Account Minimum Interest Rate is the guaranteed minimum interest rate under the  Contract and may change each year on the Redetermination Date. The Company will send You  notice of the re-determined Fixed Account Minimum Interest Rate annually.    VA670NY                               15 

 

                          WITHDRAWAL PROVISIONS    On or before the Income Date You may request a total or partial withdrawal of the Contract  Value by submitting a request to the Company's Service Center in a form acceptable to the  Company.     Amounts You withdraw from the Contract Value may be subject to Withdrawal Charges. In  addition to Withdrawal Charges, amounts You withdraw from a Fixed Account Option may also  incur an MVA. The Company will adjust the amount You request for withdrawal for any  applicable taxes, charges, including Withdrawal Charges, and MVA.     TOTAL WITHDRAWAL. Upon a total withdrawal, You will receive the Withdrawal Value. The  Withdrawal Value will be determined at the end of the Business Day on which the Company  receives Your withdrawal request in Good Order at the Company's Service Center. If a total  withdrawal is requested, You must submit the Contract to the Company's Service Center. A total  withdrawal terminates Your Contract.    No withdrawal may exceed the Withdrawal Value.    PARTIAL WITHDRAWAL. Any partial withdrawal must be either:  1.  an amount not less than the Minimum partial withdrawal amount shown on the Contract     Data Pages; or  2.  an amount equal to Your entire interest in an Investment Division or a Fixed Account Option.    The amount payable as a result of the partial withdrawal will be determined at the end of the  Business Day on which the Company receives Your request for withdrawal in Good Order at the  Company's Service Center.    Your Contract Value will be reduced by the gross withdrawal amount requested. Unless You  request otherwise, a partial withdrawal will be deducted from each Contract Option in proportion  to its current value. The partial withdrawal will be reduced for any applicable taxes and charges,  including Withdrawal Charges, and then adjusted for any applicable MVA.    At least the Minimum Contract Value remaining after a partial withdrawal, as shown on the  Contract Data Pages, must remain after any partial withdrawal. If the partial withdrawal would  reduce the Contract Value below the Minimum Contract Value remaining after a partial  withdrawal, as shown on the Contract Data Pages, the Company will treat the withdrawal  request as a total withdrawal and the Withdrawal Value will be paid.    QUALIFIED PLAN CONTRACT REQUIRED MINIMUM DISTRIBUTIONS. Qualified Plan  Contract Required Minimum Distributions are based upon Your Contract Value, the value of  any add-on benefits as calculated by the Company, and applicable federal tax law  requirements. You may request a withdrawal for an RMD by submitting a written request to  the Service Center on a Company-provided form.    The Company will waive the Withdrawal Charges if the amount withdrawn does not exceed  the Contract's RMD. However, if a withdrawal amount is greater than the Contract's RMD,  the excess of the partial withdrawal over the Contract's RMD may be subject to Withdrawal  Charges.    VA670NY                               16 

 

                    WITHDRAWAL PROVISIONS (CONT'D)    AUTOMATIC WITHDRAWAL. You may elect to take an automatic withdrawal by withdrawing a  specific sum or a certain percentage of the Contract Value on a monthly, quarterly, semiannual  or annual basis, subject to the Minimum partial withdrawal amount made as a scheduled part of  an automatic withdrawal program, as shown on the Contract Data Pages. Automatic  withdrawals are treated as a partial withdrawal and will be counted in determining the amount  taken as a Free Withdrawal in any Contract Year. Automatic withdrawals in excess of the Free  Withdrawal amount may be subject to Withdrawal Charges and/or MVA. If an automatic  withdrawal causes the Withdrawal Value to fall to zero, future automatic withdrawals will  terminate. If the automatic withdrawal would reduce the Contract Value below the Minimum  Contract Value remaining after a partial withdrawal, as shown on the Contract Data Pages,  the Company will treat the withdrawal request as a total withdrawal and the Withdrawal  Value will be paid.    WITHDRAWAL CHARGE. For purposes of determining the Withdrawal Charge, the Contract  Value is divided into earnings and Remaining Premium, as defined in the Contract. Earnings are  not subject to a Withdrawal Charge. For the sole purposes of determining the amount of the  Withdrawal Charge, earnings are defined as any excess of the Contract Value over Remaining  Premium.     A Withdrawal Charge will be imposed upon certain withdrawals of Remaining Premium. The  Withdrawal Charge will be calculated in accordance with the Withdrawal Charge Schedule  shown on the Contract Data Pages. The Withdrawal Charge is equal to the applicable  Withdrawal Charge Percentage applied to the gross amount of Remaining Premium withdrawn  (not the net amount of Remaining Premium received by You), excluding any amount for which  the Contract expressly provides for waived, or no, Withdrawal Charge. In the event of a total  withdrawal, the applicable Withdrawal Charge Percentage(s) is/are applied to the full value of  Remaining Premium immediately prior to the withdrawal, less any Free Withdrawal available at  the time of the total withdrawal. The Withdrawal Charge reduces Remaining Premium and  Contract Value. The Withdrawal Charge will be taken from the Contract Options in the same  proportion as the requested withdrawal.    Withdrawals will be allocated first to earnings (which may be withdrawn free of any Withdrawal  Charge), if any, and second to Remaining Premium on a first-in, first-out basis so that all  withdrawals will be allocated to Remaining Premium to which the lowest (if any) Withdrawal  Charges apply.    Any portion of the Withdrawal Charge that would reduce the Fixed Account Contract Value  below the Fixed Account Minimum Value will be waived.    FREE WITHDRAWAL. During a Contract Year, You may make partial withdrawals from the  Contract without incurring a Withdrawal Charge or MVA. The amount of Free Withdrawal  available in any Contract Year is equal to:  1.  the Free Withdrawal Percentage, as shown on the Contract Data Pages, multiplied by the     Remaining Premium at the beginning of the Contract Year, that is subject to a Withdrawal     Charge according to the Withdrawal Charge Schedule shown on the Contract Data Pages;     plus  2.  the Free Withdrawal Percentage, as shown on the Contract Data Pages, multiplied by     Premium received during the Contract Year; less  3.  earnings, as defined in the Withdrawal Charge provision of this Contract.     VA670NY                               17 

 

                    WITHDRAWAL PROVISIONS (CONT'D)    The amount of Free Withdrawal is subject to a minimum of zero. The Free Withdrawal can be  taken as a single withdrawal or multiple withdrawals throughout the Contract Year. The amount  of Your Free Withdrawal available will vary throughout the Contract Year depending on previous  withdrawals of Your Free Withdrawal amount, previous withdrawals of earnings, and the amount  of earnings present at the time of the withdrawal. The amount of Your Free Withdrawal available  will reduce due to withdrawals during the Contract Year.    Any amount withdrawn to satisfy an RMD may reduce the amount of Your Free Withdrawal  available.    No Free Withdrawal may exceed the Withdrawal Value.    Amounts withdrawn under the Free Withdrawal provision reduce both the Contract Value and  Remaining Premium. Withdrawals during the Contract Year in excess of the amount of Free  Withdrawal may be subject to any applicable Withdrawal Charges and applicable MVAs.    VA670NY                               18 

 

                         DEATH BENEFIT PROVISIONS    NATURAL OWNER'S DEATH BEFORE THE INCOME DATE. Upon Your death or the death of  the Joint Owner before the Income Date, the Company will pay the death benefit to the  Beneficiary(ies) designated by You. In the event of the death of a Joint Owner, the surviving  Joint Owner, if any, will be the Primary Beneficiary. Any other Beneficiary designation on record  at the Company's Service Center at the time of death will be treated as a Contingent  Beneficiary.    DEATH BENEFIT AMOUNT BEFORE THE INCOME DATE. The death benefit amount before  the Income Date is equal to the Contract Value.    DEATH BENEFIT PAYMENT OPTIONS BEFORE THE INCOME DATE. Unless You  designated a Pre-selected Death Benefit Option, a Beneficiary entitled to the death benefit  before the Income Date must request that the Company pay the death benefit according to one  of the death benefit payment options below, or, if eligible, has the option to continue the  Contract under the Spousal Continuation Option Instead of Death Benefit provision:    Option 1 - single lump-sum payment;  Option 2 - payment of the entire death benefit distributed within five (5) years of the date of the           relevant death; or  Option 3 - Income Payments of the death benefit (i) over the lifetime of the Beneficiary, or (ii)          over a period not extending beyond the life expectancy of the Beneficiary, with          distribution beginning within one (1) year of the date of the relevant death.    The Company may make available other death benefit payment options.    A Beneficiary that wishes to elect payment under the life income option (Option 3) must do so  no later than sixty (60) days from the date the Company receives Due Proof of death in Good  Order at the Company's Service Center.    Any portion of the death benefit not applied under the life income option (Option 3) must be paid  within five (5) years from Your death. The death benefit will remain invested in accordance with  the allocation selected by You until a payout option is selected or the Beneficiary specifies  otherwise.    ANNUITANT'S DEATH BEFORE THE INCOME DATE. Upon the death of an Annuitant who is  not an Owner before the Income Date, the Contract remains in force and the Owner becomes  the Annuitant. The Owner may designate a new Annuitant. However, if the Contract is owned by  a legal entity, upon the death of any Annuitant, the Company will pay the death benefit to the  Beneficiary(ies) designated by the Owner, or, if no Beneficiary(ies) survive the applicable death,  to the Owner.    BENEFICIARY'S ENTITLEMENT TO DEATH BENEFIT BEFORE THE INCOME DATE. The  Company will pay the death benefit to Primary Beneficiaries or, if none exist, to Contingent  Beneficiaries, in equal shares (the "default allocation") unless You have designated otherwise  (the "designated allocation"). A Beneficiary that dies before or within ten (10) days (or different  period as prescribed by applicable law) of Your death is not entitled to any death benefit. In that  circumstance, the Company will pay the deceased Beneficiary's benefit to surviving  Beneficiaries in the same proportion as the designated allocation or, if applicable, the default  allocation. If no Beneficiary survives You, the Company will pay the death benefit to Your estate.    VA670NY                               19 

 

                   DEATH BENEFIT PROVISIONS (CONT'D)    PAYMENT OF DEATH BENEFIT PROCEEDS. The Company will pay the death benefit  proceeds to the Beneficiary upon receipt of a request for payment with Due Proof of death in  Good Order at the Company's Service Center. If the Company has received Due Proof of death,  the Company will calculate the share of the death benefit due to a Beneficiary using Contract  values established at the end of the Business Day on the date the Company receives from that  Beneficiary a claim form with a payment option elected. If the Company has not received Due  Proof of death or any other required documentation, the Company will calculate the share of the  death benefit due to a Beneficiary using Contract values established at the end of the Business  Day on the date the Company receives any remaining required documentation. As a result,  market fluctuation may cause the calculation of a Beneficiary's death benefit share to differ from  the calculation of another Beneficiary's death benefit share.    Each Beneficiary entitled to the death benefit bears the investment risk associated with amounts  allocated to any Investment Division until the Company calculates their share of the death  benefit.    If any death benefit proceed is due to an Owner's estate, the Company will pay it in a single  lump-sum payment.    With the exception of death benefit Option 3 above, the Company will pay a Beneficiary that  elects a death benefit option within seven (7) calendar days of the date the Company receives  request for payment, provided the Company has received Due Proof of death in Good Order at  the Company's Service Center.    If the Company does not distribute death benefit proceeds within seven (7) calendar days, the  death benefit proceeds will include interest accrued and payable from the eighth day following  the date that Due Proof of death was received in Good Order at the Company's Service Center  until the death benefit is paid. The rate of interest will equal the rate of interest applicable to  death benefit proceeds left on deposit with the Company on the date of Your death.    Spousal Continuation Option Instead of Death Benefit. Unless the Contract is subject to a  Pre-selected Death Benefit Option, a spouse who is a Joint Owner or Beneficiary of the  deceased Owner, has the option to continue the Contract in his or her own name and exercise  the Owner's rights under the Contract instead of taking the standard death benefit.    For purposes of the Spousal Continuation Option, the "continuation date" is the date on which  the Company receives the spouse's written request to elect the Spousal Continuation Option  and Due Proof of the relevant death in Good Order at the Company's Service Center.    The Spousal Continuation Option is void in the event the original Contract Owner is no longer  the Contract Owner or in the event the Contract has been assigned. This Spousal Continuation  Option may be exercised only once, and may not be available if You designated a Pre-selected  Death Benefit Option.    VA670NY                               20  

 

                   DEATH BENEFIT PROVISIONS (CONT'D)    Pre-selected Death Benefit Option. Before the Income Date, You may designate the option  according to which the Company will pay the death benefit from the death benefit payment  options described in the Contract, or other death benefit payment options made available by the  Company. You may do so by submitting a designation in a form acceptable to the Company in  Good Order to the Company's Service Center. Pre-selected Death Benefit Options will take  effect on the date the request is signed by You, subject to any payments the Company has  made or other actions the Company has taken before the Company received Your request. The  Company will pay the death benefit consistent with Your Pre-selected Death Benefit Option  unless the Internal Revenue Code requires otherwise, or Your election requires payment over a  period that exceeds the Beneficiary's life expectancy.    Only You may revoke or change a Pre-selected Death Benefit Option. To do so, You must  submit a request in a form acceptable to the Company to the Company's Service Center. Unless  You specify otherwise, revocations of and changes to a Pre-selected Death Benefit Option will  take effect on the date the request is signed by You, subject to any payments the Company has  made or other actions the Company has taken before the Company received Your request.   VA670NY                               21  

 

                             INCOME PROVISIONS    INCOME DATE. Income Payments will begin on the Income Date. The Income Date must be at  least thirteen (13) months after the Contract Issue Date. If You do not select an Income Date,  the Income Date is the Latest Income Date. You may change the Income Date to any date that  is not later than the Latest Income Date by submitting Written Notice in Good Order to the  Company's Service Center at least seven (7) days before the Income Date.    INCOME PAYMENT. On or before the Income Date, You can elect payment in a single lump- sum. A single lump-sum payment is considered a total withdrawal and terminates the Contract.  The Company will make payment to You or another payee You specify. Alternatively, You may  elect an Income Option. The Company will apply the Contract Value to provide You Fixed  Annuity Payments or Variable Annuity Payments according to Your selected Income Option. If  You do not choose how to receive Your Income Payments, Your Income Payments will be  Variable Annuity Payments.    Income Options. You may elect payment as provided in Options 1, 2, 3 or 4 below. You may  elect an Income Option at any time before the Income Date and You can change an Income  Option up to seven (7) days before the Income Date by submitting Written Notice in Good Order  to the Company's Service Center.    If You do not select an Income Option, the Company will make payments as provided in Option  3 below, with 120 months certain. The Company will make payments monthly, quarterly,  semiannually or annually as You elect. However, if the Contract Value on the Income Date is  less than $2,000, the Company may pay out the Contract Value in one (1) lump-sum payment  instead of providing Income Payments according to the Income Option You elect. The single  lump-sum payment will not be less than the amount which would have been applied under an  Income Option. On the Income Date, if the first monthly payment provided would be less than  $20, the Company may make payments quarterly, semiannually or annually to achieve an initial  payment of at least $20, or the Company may pay out the Contract Value in one (1) single lump- sum payment.    At the time of their commencement, Income Payments will not be less than those that would be  provided by the application of an equivalent amount to purchase a single premium immediate  annuity contract from the Company at purchase rates the Company offered on the Income Date  to annuitants in the same class as the Annuitant.    The amount applied to an Income Option will not be less than the greater of the Withdrawal  Value or 95% of what the Withdrawal Value would be if there were no Withdrawal Charge.    YOU MAY NOT TAKE WITHDRAWALS DURING ANY PERIOD THE COMPANY IS MAKING  PAYMENTS FOR AN ANNUITANT'S LIFETIME.    OPTION 1 - LIFE INCOME. A monthly payment for the Annuitant's lifetime. All payments end  upon the Annuitant's death. However, in the event of the Annuitant's death before the first  monthly payment, the Company will pay the amount allocated to this Income Option to You or, if  You are deceased, to Your Beneficiary.    VA670NY                               22 

 

                        INCOME PROVISIONS (CONT'D)    OPTION 2 - JOINT AND SURVIVOR INCOME. A monthly payment for the longer of the  Annuitant's lifetime or that of a second person You designate. Upon the occasion of the first  person to die, monthly payments continue during the survivor's lifetime at either the full amount  previously payable or as a percentage (either one-half or two-thirds) of the full amount, as You  select at the time You elect the Income Option. If reduced Income Payments to the survivor are  desired, the Company will calculate Variable Annuity Payments using either one-half or two- thirds of the number of Annuity Units for each Investment Division comprising the Variable  Annuity Payments payable during the joint life of the Annuitant and the designated second  person. The Company will calculate Fixed Annuity Payments equal to either one-half or two- thirds of the Fixed Annuity Payment payable during the joint life of the Annuitant and the  designated second person.    All payments end upon the death of the last surviving Annuitant. However, in the event of the  deaths of the Annuitant and the designated second person before the first monthly payment, the  Company will pay the amount allocated to this Income Option to You or, if You are deceased,  Your Beneficiary.     OPTION 3 - LIFE INCOME WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED. A  monthly payment for the Annuitant's lifetime with the guarantee that the Company will make no  fewer than 120 or 240 monthly payments to You. If the Owner is an entity, at the Annuitant's  death, if fewer than the guaranteed number of payments have been made, the remaining  guaranteed payments will be made to the Owner as previously scheduled. If the Owner is the  Annuitant, in the event You die before the Company makes the specified number of guaranteed  payments, Your Beneficiary may elect to continue to receive the Income Payments according to  the terms of this Contract, or alternatively may elect to receive the present value of any  remaining guaranteed payments in a single lump-sum payment. The present value of any  remaining guaranteed payments will be based on the total Income Payments as of the date of  the calculation. The Company will determine the interest rate used in this present value  calculation, but in no instance will it be greater than (one) 1 percentage point higher than the  rate used to calculate the initial Income Payment.     OPTION 4 - INCOME FOR A SPECIFIED PERIOD. A monthly payment for any whole number  of years ranging from 5 to 30. In the event You die before the Company makes the specified  number of payments, Your Beneficiary may elect to continue to receive the Income Payments  according to the terms of this Contract, or alternatively may elect to receive the present value of  any remaining guaranteed payments in a single lump-sum payment. The present value of any  remaining guaranteed payments will be based on the total Income Payments as of the date of  the calculation. The Company will determine the interest rate used in this present value  calculation, but in no instance will it be greater than (one) 1 percentage point higher than the  rate used to calculate the initial Income Payment.     ADDITIONAL INCOME OPTIONS. The Company may make available other Income Options.    VA670NY                               23 

 

                        INCOME PROVISIONS (CONT'D)    You may elect either fixed or variable annuity payments as described below.    FIXED ANNUITY PAYMENTS. The Company will determine Fixed Annuity Payments by  applying annuity rates consistent with the age and sex (unless unisex rates apply) of the  Annuitant and, if applicable, the designated second person, to the portion of the Contract Value  allocated to the Fixed Annuity Payment options. Annuity rates applied will not be less than the  rates provided in the Contract's Table of Income Options.    Once begun, the Company will not change the amount of the Fixed Annuity Payments, except  upon the first death between the Annuitant and the designated second person under Option 2.    VARIABLE ANNUITY PAYMENTS. The Company will determine the initial Variable Annuity  Payment by applying annuity rates consistent with the age and sex (unless unisex rates apply)  of the Annuitant and, if applicable, the designated second person, to the portion of the Contract  Value allocated to the Variable Annuity Payment options. Annuity rates applied will not be less  than the rates provided in the Contract's Table of Income Options.    The Company will determine the second and subsequent Variable Annuity Payments in two (2)  steps. First, the Company will divide the initial Variable Annuity Payment by the Annuity Unit  Value calculated on the Income Date to establish a number of Annuity Units. Second, the  Company will multiply that number of Annuity Units by the Annuity Unit Value determined on the  Business Day next preceding the date on which each payment is due. The result of each  calculation determines the Variable Annuity Payment due.    Once Variable Annuity Payments have begun, the number of Annuity Units remains constant  absent a reallocation between the Investment Divisions. Variable Annuity Payments are not  affected by expenses other than taxes.    Neither expenses actually incurred, other than taxes on the investment return, nor the mortality  actually experienced, shall adversely affect the dollar amount of Variable Annuity Payments  after such payments have commenced.    Annuity Unit Value. The Company sets the initial value of an Annuity Unit of each Investment  Division when the Company establishes the Investment Division. The Annuity Unit Value  reflects the investment performance of an Investment Division and may increase or decrease  from one Business Day to the next. The Contract's Table of Income Options assumes the net  investment rates described in the Contract's Basis of Computation provision. Therefore, if an  Investment Division's actual net investment rate is greater than or less than the assumed net  investment rate, Variable Annuity Payments will increase or decrease accordingly over time.    The Company calculates each Investment Division's Annuity Unit Value for any Business Day in  two (2) steps:    First, the Company multiplies the immediately preceding Business Day's Annuity Unit Value by  the Business Day's "net investment factor" determined on the day of the calculation. The  Company determines the "net investment factor," which reflects changes in the Investment  Division's net asset value, by dividing the value established at (1) below by the value  established at (2) below, and then subtracting the value established at (3) below, where:    VA670NY                               24 

 

                        INCOME PROVISIONS (CONT'D)    (1)  Is the net result of:     a.  the Investment Division's net asset value at the end of the Business Day; plus     b.  the per share amount of any dividend or other distribution declared by the Investment        Division if the "ex-dividend" date occurs on the Business Day; plus or minus     c.  a per share credit or charge with respect to any taxes paid or reserved for by the        Company which are determined by the Company to be attributable to the operation of        the Investment Division (no federal income taxes are applicable under present law); and  (2)  Is the Investment Division's net asset value at the end of the preceding Business Day; and  (3)  Is the asset charge factor the Company determines for the Business Day to reflect the     applicable Core Contract Charge.    Second, the Company multiplies the result from the first step above by a factor equal to the ratio  of one over one plus the assumed net investment rate, raised to the number of calendar days  between the previous Business Day and the current Business Day over the number of calendar  days in the current year. The factor is expressed formulaically as follows:                                              &#0;                                       1   &#0;                                   &#0;      &#0;                                      1+ 퐴퐼푅   where:    AIR  is  the assumed net investment rate.  t    is  the number of calendar days between the previous Business Day and the current           Business Day.  y    is  the number of calendar days in the current year.    NATURAL OWNER'S DEATH AFTER THE INCOME DATE. Upon Your death or the death of  the Joint Owner, who is not also an Annuitant, after the Income Date, remaining Income  Payments due continue as before. Upon Your death after the Income Date, the Beneficiary  becomes the Owner.    ANNUITANT'S DEATH AFTER THE INCOME DATE. Upon the death of the Annuitant after the  Income Date, the death benefit, if any, will be as specified in the Income Option elected. Death  benefits will be paid at least as rapidly as under the method of distribution in effect at the  Annuitant's death.    BENEFICIARY'S ENTITLEMENT TO INCOME PAYMENTS AFTER THE INCOME DATE.  Upon Your death or the death of the Joint Owner, the Company will pay remaining Income  Payments due to Primary Beneficiaries or, if none exist, to the Contingent Beneficiaries, in equal  shares (the "default allocation") unless You have designated otherwise (the "designated  allocation"). A Beneficiary that dies before or within ten (10) days (or different period as  prescribed by applicable law) of Your death is not entitled to any remaining Income Payments  due; in that circumstance, the Company will pay remaining Income Payments due the deceased  Beneficiary to surviving Beneficiaries in the same proportion as the designated allocation or, if  applicable, the default allocation. If no Beneficiary survives You, the Company will pay  remaining Income Payments to Your estate.    VA670NY                               25 

 

                           TERMINATION PROVISION    This Contract terminates and all Contract benefits, including those provided by any add-on  benefits unless otherwise specified in the add-on benefits, will end on the earlier of:  1.  the date You take a total withdrawal;  2.  the date the Contract Value is reduced to zero for any reason or insufficient to pay Contract     charges; or  3.  the date upon which the Company receives Due Proof of Your (or the Joint Owner's) death     and receives all Beneficiaries' elections of death benefit payment options in Good Order at     the Company's Service Center, unless the Contract is continued by the spouse under the     Spousal Continuation Option.    VA670NY                               26

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