Document:

ex43formofindenture

                                                                                                GUARDANT HEALTH, INC.                                                                                    INDENTURE              Dated as of                        , 20                                                                     WILMINGTON TRUST, NATIONAL ASSOCIATION                      as Trustee                                                                                                   

 

                                TABLE OF CONTENTS                                                                             Page   ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE ..................................1        Section 1.1.  Definitions....................................................................................................1        Section 1.2.  Other Definitions. ........................................................................................4        Section 1.3.  Incorporation by Reference of Trust Indenture Act. ....................................4        Section 1.4.  Rules of Construction. .................................................................................5   ARTICLE II. THE SECURITIES....................................................................................................5        Section 2.1.  Issuable in Series..........................................................................................5        Section 2.2.  Establishment of Terms of Series of Securities. ..........................................5        Section 2.3.  Execution and Authentication. .....................................................................8        Section 2.4.  Registrar and Paying Agent. ........................................................................9        Section 2.5.  Paying Agent to Hold Money in Trust. ........................................................9        Section 2.6.  Securityholder Lists. ..................................................................................10        Section 2.7.  Transfer and Exchange. .............................................................................10        Section 2.8.  Mutilated, Destroyed, Lost and Stolen Securities. .....................................10        Section 2.9.  Outstanding Securities. ..............................................................................11        Section 2.10.  Treasury Securities.....................................................................................12        Section 2.11.  Temporary Securities. ................................................................................12        Section 2.12.  Cancellation. ..............................................................................................12        Section 2.13.  Defaulted Interest. ......................................................................................12        Section 2.14.  Global Securities. .......................................................................................13        Section 2.15.  CUSIP Numbers.........................................................................................14   ARTICLE III. REDEMPTION ......................................................................................................14        Section 3.1.  Notice to Trustee. .......................................................................................14        Section 3.2.  Selection of Securities to be Redeemed. ....................................................15        Section 3.3.  Notice of Redemption. ...............................................................................15        Section 3.4.  Effect of Notice of Redemption. ................................................................16        Section 3.5.  Deposit of Redemption Price. ....................................................................16        Section 3.6.  Securities Redeemed in Part. .....................................................................16   ARTICLE IV. COVENANTS .......................................................................................................16        Section 4.1.  Payment of Principal and Interest. .............................................................16        Section 4.2.  SEC Reports. ..............................................................................................17        Section 4.3.  Compliance Certificate. .............................................................................17        Section 4.4.  Stay, Extension and Usury Laws. ..............................................................17   ARTICLE V. SUCCESSORS ........................................................................................................18        Section 5.1.  When Company May Merge, Etc. .............................................................18        Section 5.2.  Successor Corporation Substituted. ...........................................................18   ARTICLE VI. DEFAULTS AND REMEDIES ............................................................................18        Section 6.1.  Events of Default. ......................................................................................18                                         i   

 

          Section 6.2.  Acceleration of Maturity; Rescission and Annulment. ..............................20        Section 6.3.  Collection of Indebtedness and Suits for Enforcement by Trustee. ...........20        Section 6.4.  Trustee May File Proofs of Claim. ............................................................21        Section 6.5.  Trustee May Enforce Claims Without Possession of Securities. ...............22        Section 6.6.  Application of Money Collected. ...............................................................22        Section 6.7.  Limitation on Suits. ....................................................................................22        Section 6.8.  Unconditional Right of Holders to Receive Principal and Interest. ...........23        Section 6.9.  Restoration of Rights and Remedies. .........................................................23        Section 6.10.  Rights and Remedies Cumulative. .............................................................23        Section 6.11.  Delay or Omission Not Waiver. .................................................................24        Section 6.12.  Control by Holders. ....................................................................................24        Section 6.13.  Waiver of Past Defaults. ............................................................................24        Section 6.14.  Undertaking for Costs. ...............................................................................25   ARTICLE VII. TRUSTEE .............................................................................................................25        Section 7.1.  Duties of Trustee. .......................................................................................25        Section 7.2.  Rights of Trustee. .......................................................................................26        Section 7.3.  Individual Rights of Trustee. .....................................................................27        Section 7.4.  Trustee’s Disclaimer. .................................................................................27        Section 7.5.  Notice of Defaults. .....................................................................................28        Section 7.6.  Reports by Trustee to Holders. ..................................................................28        Section 7.7.  Compensation and Indemnity. ...................................................................28        Section 7.8.  Replacement of Trustee. ............................................................................29        Section 7.9.  Successor Trustee by Merger, Etc. ............................................................30        Section 7.10.  Eligibility; Disqualification. ......................................................................30        Section 7.11.  Preferential Collection of Claims Against Company. ................................30   ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE ...................................30        Section 8.1.  Satisfaction and Discharge of Indenture. ...................................................30        Section 8.2.  Application of Trust Funds; Indemnification. ...........................................31        Section 8.3.  Legal Defeasance of Securities of any Series. ...........................................32        Section 8.4.  Covenant Defeasance. ................................................................................33        Section 8.5.  Repayment to Company. ............................................................................35        Section 8.6.  Reinstatement. ............................................................................................35   ARTICLE IX. AMENDMENTS AND WAIVERS ......................................................................35        Section 9.1.  Without Consent of Holders. .....................................................................35        Section 9.2.  With Consent of Holders. ..........................................................................36        Section 9.3.  Limitations. ................................................................................................36        Section 9.4.  Compliance with Trust Indenture Act. .......................................................37        Section 9.5.  Revocation and Effect of Consents. ...........................................................37        Section 9.6.  Notation on or Exchange of Securities. .....................................................38        Section 9.7.  Trustee Protected. ......................................................................................38   ARTICLE X. MISCELLANEOUS ...............................................................................................38        Section 10.1.  Trust Indenture Act Controls. ....................................................................38        Section 10.2.  Notices. ......................................................................................................38                                          ii 

 

          Section 10.3.  Communication by Holders with Other Holders. ......................................40        Section 10.4.  Certificate and Opinion as to Conditions Precedent. .................................40        Section 10.5.  Statements Required in Certificate or Opinion. .........................................40        Section 10.6.  Rules by Trustee and Agents. ....................................................................40        Section 10.7.  Legal Holidays. ..........................................................................................41        Section 10.8.  No Recourse Against Others. .....................................................................41        Section 10.9.  Counterparts. ..............................................................................................41        Section 10.10. Governing Law; Waiver of Jury Trial; Consent to Jurisdiction. ...............41        Section 10.11. No Adverse Interpretation of Other Agreements. ......................................42        Section 10.12. Successors. .................................................................................................42        Section 10.13. Severability. ...............................................................................................42        Section 10.14. Table of Contents, Headings, Etc. .............................................................42        Section 10.15. Securities in a Foreign Currency. ...............................................................42        Section 10.16. Judgment Currency. ...................................................................................43        Section 10.17. Force Majeure. ...........................................................................................43        Section 10.18. U.S.A. Patriot Act. .....................................................................................43   ARTICLE XI. SINKING FUNDS .................................................................................................44        Section 11.1.  Applicability of Article. .............................................................................44        Section 11.2.  Satisfaction of Sinking Fund Payments with Securities. ...........................44        Section 11.3.  Redemption of Securities for Sinking Fund. ..............................................45                                              iii 

 

                            GUARDANT HEALTH, INC.                Reconciliation and tie between Trust Indenture Act of 1939 and                        Indenture, dated as of                        , 20       § 310(a)(1) ................................................................................................ 7.10     (a)(2)   ................................................................................................ 7.10     (a)(3)   ................................................................................................ Not Applicable     (a)(4)   ................................................................................................ Not Applicable     (a)(5)   ................................................................................................ 7.10       (b)    ................................................................................................ 7.10   § 311(a)   ................................................................................................ 7.11       (b)    ................................................................................................ 7.11        (c)   ................................................................................................ Not Applicable   § 312(a)   ................................................................................................ 2.6       (b)    ................................................................................................ 10.3        (c)   ................................................................................................ 10.3   § 313(a)   ................................................................................................ 7.6     (b)(1)   ................................................................................................ 7.6     (b)(2)   ................................................................................................ 7.6     (c)(1)   ................................................................................................ 7.6       (d)    ................................................................................................ 7.6   § 314(a)   ................................................................................................ 4.2, 10.5       (b)    ................................................................................................ Not Applicable     (c)(1)   ................................................................................................ 10.4     (c)(2)   ................................................................................................ 10.4     (c)(3)   ................................................................................................ Not Applicable       (d)    ................................................................................................ Not Applicable        (e)   ................................................................................................ 10.5        (f)   ................................................................................................ Not Applicable   § 315(a)   ................................................................................................ 7.1       (b)    ................................................................................................ 7.5        (c)   ................................................................................................ 7.1       (d)    ................................................................................................ 7.1        (e)   ................................................................................................ 6.14   § 316(a)   ................................................................................................ 2.10   (a)(1)(A)  ................................................................................................ 6.12   (a)(1)(B)  ................................................................................................ 6.13       (b)    ................................................................................................ 6.8  § 317(a)(1) ................................................................................................ 6.3     (a)(2)   ................................................................................................ 6.4       (b)    ................................................................................................ 2.5   § 318(a)   ................................................................................................ 10.1                      Note:  This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.     

 

                Indenture dated as of                        , 20    between Guardant Health, Inc., a company  incorporated under the laws of the State of Delaware (“Company”), and Wilmington Trust,  National Association (“Trustee”).               Each party agrees as follows for the benefit of the other party and for the equal and  ratable benefit of the Holders of the Securities issued under this Indenture.                                    ARTICLE I.                DEFINITIONS AND INCORPORATION BY REFERENCE         Section 1.1.  Definitions.                “Affiliate” of any specified person means any other person directly or indirectly  controlling or controlled by or under common control with such specified person.   For the  purposes of this definition, “control” (including, with correlative meanings, the terms “controlled  by” and “under common control with”), as used with respect to any person, shall mean the  possession, directly or indirectly, of the power to direct or cause the direction of the management  or policies of such person, whether through the ownership of voting securities or by agreement or  otherwise.               “Agent” means any Registrar, Paying Agent or Notice Agent.               “Board of Directors” means the board of directors of the Company or any duly  authorized committee thereof.               “Board Resolution” means a copy of a resolution certified by the Secretary or an  Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant  to authorization by the Board of Directors and to be in full force and effect on the date of the  certificate and delivered to the Trustee.               “Business Day” means any day except a Saturday, Sunday or a legal holiday in The  City of New York, New York (or in connection with any payment, the place of payment) on which  banking institutions are authorized or required by law, regulation or executive order to close.               “Capital Stock” means any and all shares, interests, participations, rights or other  equivalents (however designated) of corporate stock.               “Company” means the party named as such above until a successor replaces it and  thereafter means the successor.               “Company Order” means a written order signed in the name of the Company by an  Officer.               “Corporate Trust Office” means the office of the Trustee at which at any particular  time its corporate trust business related to this Indenture shall be principally administered.               “Default” means any event which is, or after notice or passage of time or both would  be, an Event of Default.                                             

 

                “Depositary” means, with respect to the Securities of any Series issuable or issued  in whole or in part in the form of one or more Global Securities, the person designated as  Depositary for such Series by the Company, which Depositary shall be a clearing agency registered  under the Exchange Act; and if at any time there is more than one such person, “Depositary” as  used with respect to the Securities of any Series shall mean the Depositary with respect to the  Securities of such Series.               “Discount Security” means any Security that provides for an amount less than the  stated principal amount thereof to be due and payable upon declaration of acceleration of the  maturity thereof pursuant to Section 6.2.               “Dollars” and “$” means the currency of The United States of America.               “Exchange Act” means the Securities Exchange Act of 1934, as amended.               “Foreign Currency” means any currency or currency unit issued by a government  other than the government of The United States of America.               “Foreign Government Obligations” means, with respect to Securities of any Series  that are denominated in a Foreign Currency, direct obligations of, or obligations guaranteed by,  the government that issued or caused to be issued such currency for the payment of which  obligations its full faith and credit is pledged and which are not callable or redeemable at the option  of the issuer thereof.               “GAAP” means accounting principles generally accepted in the United States of  America set forth in the opinions and pronouncements of the Accounting Principles Board of the  American Institute of Certified Public Accountants and statements and pronouncements of the  Financial Accounting Standards Board or in such other statements by such other entity as have  been approved by a significant segment of the accounting profession, which are in effect as of the  date of determination.               “Global Security” or “Global Securities” means a Security or Securities, as the case  may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of  Securities, issued to the Depositary for such Series or its nominee, and registered in the name of  such Depositary or nominee.               “Holder” or “Securityholder” means a person in whose name a Security is  registered.               “Indenture” means this Indenture as amended or supplemented from time to time  and shall include the form and terms of particular Series of Securities established as contemplated  hereunder.               “interest” with respect to any Discount Security which by its terms bears interest  only after Maturity, means interest payable after Maturity.                                          2 

 

                “Maturity,” when used with respect to any Security, means the date on which the  principal of such Security becomes due and payable as therein or herein provided, whether at the  Stated Maturity or by declaration of acceleration, call for redemption or otherwise.               “Officer” means the Chief Executive Officer, President, the Chief Financial  Officer, the Treasurer or any Assistant Treasurer, the Secretary or any Assistant Secretary, and any  Vice President of the Company.               “Officer’s Certificate” means a certificate signed by any Officer.               “Opinion of Counsel” means a written opinion of legal counsel who is acceptable  to the Trustee.  The counsel may be an employee of or counsel to the Company. The opinion may  contain customary limitations, conditions and exceptions.                “person” means any individual, corporation, partnership, joint venture, association,  limited liability company, joint-stock company, trust, unincorporated organization or government  or any agency or political subdivision thereof.               “principal” of a Security means the principal of the Security plus, when  appropriate, the premium, if any, on, the Security.               “Responsible Officer” means any officer of the Trustee in its Corporate Trust Office  having responsibility for administration of this Indenture and also means, with respect to a  particular corporate trust matter, any other officer to whom any corporate trust matter is referred  because of his or her knowledge of and familiarity with a particular subject.               “SEC” means the Securities and Exchange Commission.               “Securities” means the debentures, notes or other debt instruments of the Company  of any Series authenticated and delivered under this Indenture.               “Series” or “Series of Securities” means each series of debentures, notes or other  debt instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof.               “Stated Maturity” when used with respect to any Security, means the date specified  in such Security as the fixed date on which the principal of such Security or interest is due and  payable.               “Subsidiary” of any specified person means any corporation, association or other  business entity of which more than 50% of the total voting power of shares of Capital Stock entitled  (without regard to the occurrence of any contingency) to vote in the election of directors, managers  or trustees thereof is at the time owned or controlled, directly or indirectly, by such person or one  or more of the other Subsidiaries of that person or a combination thereof.               “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as  in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act  of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment,  the Trust Indenture Act as so amended.                                         3 

 

                  “Trustee” means the person named as the “Trustee” in the first paragraph of this   instrument until a successor Trustee shall have become such pursuant to the applicable provisions   of this Indenture, and thereafter “Trustee” shall mean or include each person who is then a Trustee  hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to  the Securities of any Series shall mean the Trustee with respect to Securities of that Series.                “U.S. Government Obligations” means securities which are direct obligations of,   or guaranteed by, The United States of America for the payment of which its full faith and credit   is pledged and which are not callable or redeemable at the option of the issuer thereof, and shall   also include a depositary receipt issued by a bank or trust company as custodian with respect to   any such U.S. Government Obligation or a specific payment of interest on or principal of any such   U.S. Government Obligation held by such custodian for the account of the holder of a depository   receipt, provided that (except as required by law) such custodian is not authorized to make any   deduction from the amount payable to the holder of such depositary receipt from any amount   received by the custodian in respect of the U.S. Government Obligation evidenced by such   depositary receipt.          Section 1.2.  Other Definitions.          TERM                                            DEFINED IN                                                          SECTION          “Bankruptcy Law”                                     6.1         “Custodian”                                          6.1         “Event of Default”                                   6.1         “Judgment Currency”                                 10.16         “Legal Holiday”                                     10.7         “mandatory sinking fund payment”                    11.1         “New York Banking Day”                              10.16         “Notice Agent”                                       2.4         “optional sinking fund payment”                     11.1        “Paying Agent”                                        2.4        “Registrar”                                           2.4        “Required Currency”                                  10.16        “Specified Courts”                                   10.10        “successor person”                                    5.1          Section 1.3.  Incorporation by Reference of Trust Indenture Act.                Whenever this Indenture refers to a provision of the TIA, the provision is   incorporated by reference in and made a part of this Indenture.  The following TIA terms used in   this Indenture have the following meanings:                “Commission” means the SEC.                “indenture securities” means the Securities.                “indenture security holder” means a Securityholder.                                          4 

 

                “indenture to be qualified” means this Indenture.               “indenture trustee” or “institutional trustee” means the Trustee.               “obligor” on the indenture securities means the Company and any successor              obligor upon the Securities.               All other terms used in this Indenture that are defined by the TIA, defined by TIA  reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein  are used herein as so defined.         Section 1.4.  Rules of Construction.               Unless the context otherwise requires:               (a)    a term has the meaning assigned to it;               (b)    an accounting term not otherwise defined has the meaning assigned to it in        accordance with GAAP;               (c)    “or” is not exclusive;               (d)    words in the singular include the plural, and in the plural include the        singular; and               (e)    provisions apply to successive events and transactions.                                    ARTICLE II.                                 THE SECURITIES         Section 2.1.  Issuable in Series.               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.  All Securities of a Series shall be identical except as may be set forth or determined in the manner  provided in a Board Resolution, a supplemental indenture or an Officer’s Certificate detailing the  adoption of the terms thereof pursuant to authority granted under a Board Resolution. In the case  of Securities of a Series to be issued from time to time, the Board Resolution, Officer’s Certificate  or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted  under a Board Resolution may provide for the method by which specified terms (such as interest  rate, maturity date, record date or date from which interest shall accrue) are to be determined.   Securities may differ between Series in respect of any matters, provided that all Series of Securities  shall be equally and ratably entitled to the benefits of the Indenture.         Section 2.2.  Establishment of Terms of Series of Securities.               At or prior to the issuance of any Securities within a Series, the following shall be  established (as to the Series generally, in the case of Subsection 2.2.1 and either as to such                                          5 

 

      Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through   2.2.23) by or pursuant to a Board Resolution, and set forth or determined in the manner provided   in a Board Resolution, supplemental indenture hereto or Officer’s Certificate:                2.2.1.     the title (which shall distinguish the Securities of that particular Series   from the Securities of any other Series) and ranking (including the terms of any subordination   provisions) of the Series;                2.2.2.     the price or prices (expressed as a percentage of the principal amount   thereof) at which the Securities of the Series will be issued;               2.2.3.     any limit upon the aggregate principal amount of the Securities of the  Series which may be authenticated and delivered under this Indenture (except for Securities  authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other  Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);               2.2.4.     the date or dates on which the principal of the Securities of the Series is  payable;               2.2.5.     the rate or rates (which may be fixed or variable) per annum or, if  applicable, the method used to determine such rate or rates (including, but not limited to, any  commodity, commodity index, stock exchange index or financial index) at which the Securities of  the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue,  the date or dates on which such interest, if any, shall commence and be payable and any regular  record date for the interest payable on any interest payment date;               2.2.6.     the place or places where the principal of and interest, if any, on the  Securities of the Series shall be payable, where the Securities of such Series may be surrendered  for registration of transfer or exchange and where notices and demands to or upon the Company  in respect of the Securities of such Series and this Indenture may be delivered, and the method of  such payment, if by wire transfer, mail or other means;               2.2.7.     if applicable, the period or periods within which, the price or prices at  which and the terms and conditions upon which the Securities of the Series may be redeemed, in  whole or in part, at the option of the Company;               2.2.8.     the obligation, if any, of the Company to redeem or purchase the  Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a  Holder thereof and the period or periods within which, the price or prices at which and the terms  and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in  part, pursuant to such obligation;               2.2.9.     the dates, if any, on which and the price or prices at which the Securities  of the Series will be repurchased by the Company at the option of the Holders thereof and other  detailed terms and provisions of such repurchase obligations;               2.2.10.     if other than denominations of $1,000 and any integral multiple thereof,  the denominations in which the Securities of the Series shall be issuable;                                          6 

 

                  2.2.11.     the forms of the Securities of the Series and whether the Securities will   be issuable as Global Securities;                2.2.12.     if other than the principal amount thereof, the portion of the principal   amount of the Securities of the Series that shall be payable upon declaration of acceleration of the   maturity thereof pursuant to Section 6.2;               2.2.13.     the currency of denomination of the Securities of the Series, which may  be Dollars or any Foreign Currency, and if such currency of denomination is a composite currency,  the agency or organization, if any, responsible for overseeing such composite currency;               2.2.14.     the designation of the currency, currencies or currency units in which  payment of the principal of and interest, if any, on the Securities of the Series will be made;               2.2.15.     if payments of principal of or interest, if any, on the Securities of the  Series are to be made in one or more currencies or currency units other than that or those in which   such Securities are denominated, the manner in which the exchange rate with respect to such   payments will be determined;                2.2.16.     the manner in which the amounts of payment of principal of or interest,   if any, on the Securities of the Series will be determined, if such amounts may be determined by   reference to an index based on a currency or currencies or by reference to a commodity, commodity   index, stock exchange index or financial index;                2.2.17.     the provisions, if any, relating to any security provided for the Securities   of the Series;                2.2.18.     any addition to, deletion of or change in the Events of Default which   applies to any Securities of the Series and any change in the right of the Trustee or the requisite   Holders of such Securities to declare the principal amount thereof due and payable pursuant to   Section 6.2;                2.2.19.     any addition to, deletion of or change in the covenants set forth in   Articles IV or V which applies to Securities of the Series;                2.2.20.     any Depositaries, interest rate calculation agents, exchange rate   calculation agents or other agents with respect to Securities of such Series if other than those   appointed herein;                2.2.21.     the provisions, if any, relating to conversion or exchange of any   Securities of such Series, including if applicable, the conversion or exchange price, the conversion   or exchange period, provisions as to whether conversion or exchange will be mandatory, at the   option of the Holders thereof or at the option of the Company, the events requiring an adjustment   of the conversion price or exchange price and provisions affecting conversion or exchange if such   Series of Securities are redeemed;                2.2.22.     any other terms of the Series (which may supplement, modify or delete   any provision of this Indenture insofar as it applies to such Series), including any terms that may                                          7 

 

      be required under applicable law or regulations or advisable in connection with the marketing of   Securities of that Series; and                2.2.23.     whether any of the Company’s direct or indirect Subsidiaries will   guarantee the Securities of that Series, including the terms of subordination, if any, of such   guarantees.                All Securities of any one Series need not be issued at the same time and may be   issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant   to the Board Resolution, supplemental indenture hereto or Officer’s Certificate referred to above.          Section 2.3.  Execution and Authentication.                An Officer shall sign the Securities for the Company by manual or facsimile   signature.                 If an Officer whose signature is on a Security no longer holds that office at the time   the Security is authenticated, the Security shall nevertheless be valid.                A Security shall not be valid until authenticated by the manual signature of the   Trustee or an authenticating agent.  The signature shall be conclusive evidence that the Security   has been authenticated under this Indenture.                The Trustee shall at any time, and from time to time, authenticate Securities for   original issue in the principal amount provided in the Board Resolution, supplemental indenture   hereto or Officer’s Certificate, upon receipt by the Trustee of a Company Order.  Each Security   shall be dated the date of its authentication.                The aggregate principal amount of Securities of any Series outstanding at any time   may not exceed any limit upon the maximum principal amount for such Series set forth in the   Board Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to   Section 2.2, except as provided in Section 2.8.               Prior to the issuance of Securities of any Series, the Trustee shall have received and  (subject to Section 7.2) shall be fully protected in relying on:  (a) the Board Resolution,  supplemental indenture hereto or Officer’s Certificate establishing the form of the Securities of  that Series or of Securities within that Series and the terms of the Securities of that Series or of  Securities within that Series, (b) an Officer’s Certificate complying with Section 10.4, and (c) an   Opinion of Counsel complying with Section 10.4.                The Trustee shall have the right to decline to authenticate and deliver any Securities   of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not   be taken lawfully; or (b) if the Trustee in good faith by its board of directors or trustees, executive   committee or a trust committee of directors and/or vice-presidents or a committee of Responsible  Officers shall determine that such action would expose the Trustee to personal liability to Holders  of any then outstanding Series of Securities.                                           8 

 

                The Trustee may appoint an authenticating agent acceptable to the Company to  authenticate Securities.  An authenticating agent may authenticate Securities whenever the Trustee  may do so.  Each reference in this Indenture to authentication by the Trustee includes  authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with  the Company or an Affiliate of the Company.         Section 2.4.  Registrar and Paying Agent.               The Company shall maintain, with respect to each Series of Securities, at the place  or places specified with respect to such Series pursuant to Section 2.2, an office or agency where  Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where  Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”)  and where notices and demands to or upon the Company in respect of the Securities of such Series  and this Indenture may be delivered (“Notice Agent”).  The Registrar shall keep a register with  respect to each Series of Securities and to their transfer and exchange.  The Company will give  prompt written notice to the Trustee of the name and address, and any change in the name or  address, of each Registrar, Paying Agent or Notice Agent.  If at any time the Company shall fail  to maintain any such required Registrar, Paying Agent or Notice Agent or shall fail to furnish the  Trustee with the name and address thereof, such presentations, surrenders, notices and demands  may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby  appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands;  provided, however, that any appointment of the Trustee as the Notice Agent shall exclude the  appointment of the Trustee or any office of the Trustee as an agent to receive the service of legal  process on the Company.               The Company may also from time to time designate one or more co-registrars,  additional paying agents or additional notice agents and may from time to time rescind such  designations; provided, however, that no such designation or rescission shall in any manner relieve  the Company of its obligations to maintain a Registrar, Paying Agent and Notice Agent in each  place so specified pursuant to Section 2.2 for Securities of any Series for such purposes.  The  Company will give prompt written notice to the Trustee of any such designation or rescission and  of any change in the name or address of any such co-registrar, additional paying agent or additional  notice agent.  The term “Registrar” includes any co-registrar; the term “Paying Agent” includes  any additional paying agent; and the term “Notice Agent” includes any additional notice agent.   The Company or any of its Affiliates may serve as Registrar or Paying Agent.               The Company hereby appoints the Trustee the initial Registrar, Paying Agent and  Notice Agent for each Series unless another Registrar, Paying Agent or Notice Agent, as the case  may be, is appointed prior to the time Securities of that Series are first issued.         Section 2.5.  Paying Agent to Hold Money in Trust.               The Company shall require each Paying Agent other than the Trustee to agree in  writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of  Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or  interest on the Series of Securities, and will notify the Trustee in writing of any default by the  Company in making any such payment.  While any such default continues, the Trustee may require                                         9 

 

      a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require   a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the   Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further   liability for the money.  If the Company or a Subsidiary of the Company acts as Paying Agent, it   shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of   Securities all money held by it as Paying Agent.  Upon any bankruptcy, reorganization or similar   proceeding with respect to the Company, the Trustee shall serve as Paying Agent for the Securities.          Section 2.6.  Securityholder Lists.                The Trustee shall preserve in as current a form as is reasonably practicable the most   recent list available to it of the names and addresses of Securityholders of each Series of Securities   and shall otherwise comply with TIA  § 312(a).  If the Trustee is not the Registrar, the Company   shall furnish to the Trustee at least ten days before each interest payment date and at such other   times as the Trustee may request in writing a list, in such form and as of such date as the Trustee   may reasonably require, of the names and addresses of Securityholders of each Series of Securities.          Section 2.7.  Transfer and Exchange.                Where Securities of a Series are presented to the Registrar or a co-registrar with a   request to register a transfer or to exchange them for an equal principal amount of Securities of the   same Series, the Registrar shall register the transfer or make the exchange if its requirements for   such transactions are met.  To permit registrations of transfers and exchanges, the Trustee shall   authenticate Securities at the Registrar’s request.  No service charge shall be made for any   registration of transfer or exchange (except as otherwise expressly permitted herein), but the   Company may require payment of a sum sufficient to cover any transfer tax or similar   governmental charge payable in connection therewith (other than any such transfer tax or similar   governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).                Neither the Company nor the Registrar shall be required (a) to issue, register the   transfer of, or exchange Securities of any Series for the period beginning at the opening of business   fifteen days immediately preceding the sending of a notice of redemption of Securities of that   Series selected for redemption and ending at the close of business on the day such notice is sent,   or (b) to register the transfer of or exchange Securities of any Series selected, called or being called   for redemption as a whole or the portion being redeemed of any such Securities selected, called or   being called for redemption in part.          Section 2.8.  Mutilated, Destroyed, Lost and Stolen Securities.                If any mutilated Security is surrendered to the Trustee, the Company shall execute  and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same  Series and of like tenor and principal amount and bearing a number not contemporaneously  outstanding.               If there shall be delivered to the Company and the Trustee (i) evidence to their   satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity bond   as may be required by each of them to hold itself and any of its agents harmless, then, in the   absence of notice to the Company or the Trustee that such Security has been acquired by a bona                                          10 

 

      fide purchaser, the Company shall execute and upon receipt of a Company Order the Trustee shall   authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security,   a new Security of the same Series and of like tenor and principal amount and bearing a number   not contemporaneously outstanding.                In case any such mutilated, destroyed, lost or stolen Security has become or is about   to become due and payable, the Company in its discretion may, instead of issuing a new Security,   pay such Security.                Upon the issuance of any new Security under this Section, the Company may   require the payment of a sum sufficient to cover any tax or other governmental charge that may be   imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee)   connected therewith.                Every new Security of any Series issued pursuant to this Section in lieu of any   destroyed, lost or stolen Security shall constitute an original additional contractual obligation of   the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable   by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately   with any and all other Securities of that Series duly issued hereunder.                The provisions of this Section are exclusive and shall preclude (to the extent lawful)   all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,   lost or stolen Securities.          Section 2.9.  Outstanding Securities.                The Securities outstanding at any time are all the Securities authenticated by the   Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in   the interest on a Global Security effected by the Trustee in accordance with the provisions hereof   and those described in this Section as not outstanding.                If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until   the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide  purchaser.               If the Paying Agent (other than the Company, a Subsidiary of the Company or an  Affiliate of the Company) holds on the Maturity of Securities of a Series money sufficient to pay   such Securities payable on that date, then on and after that date such Securities of the Series cease   to be outstanding and interest on them ceases to accrue.                The Company may purchase or otherwise acquire the Securities, whether by open   market purchases, negotiated transactions or otherwise.  A Security does not cease to be   outstanding because the Company or an Affiliate of the Company holds the Security (but see   Section 2.10 below).                In determining whether the Holders of the requisite principal amount of outstanding   Securities have given any request, demand, authorization, direction, notice, consent or waiver   hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for                                          11 

 

      such purposes shall be the amount of the principal thereof that would be due and payable as of the   date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to   Section 6.2.          Section 2.10.  Treasury Securities.                In determining whether the Holders of the required principal amount of Securities   of a Series have concurred in any request, demand, authorization, direction, notice, consent or   waiver, Securities of a Series owned by the Company or any Affiliate of the Company shall be   disregarded, except that for the purposes of determining whether the Trustee shall be protected in   relying on any such request, demand, authorization, direction, notice, consent or waiver only   Securities of a Series that a Responsible Officer of the Trustee knows are so owned shall be so   disregarded.          Section 2.11.  Temporary Securities.                Until definitive Securities are ready for delivery, the Company may prepare and the   Trustee shall authenticate temporary Securities upon a Company Order.  Temporary Securities   shall be substantially in the form of definitive Securities but may have variations that the Company   considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall   prepare and the Trustee upon receipt of a Company Order shall authenticate definitive Securities   of the same Series and date of maturity in exchange for temporary Securities.  Until so exchanged,   temporary securities shall have the same rights under this Indenture as the definitive Securities.          Section 2.12.  Cancellation.                The Company at any time may deliver Securities to the Trustee for cancellation.    The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to   them for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities   surrendered for transfer, exchange, payment, replacement or cancellation and shall destroy such   canceled Securities (subject to the record retention requirement of the Exchange Act and the   Trustee) and deliver a certificate of such cancellation to the Company upon written request of the   Company.  The Company may not issue new Securities to replace Securities that it has paid or   delivered to the Trustee for cancellation.          Section 2.13.  Defaulted Interest.                If the Company defaults in a payment of interest on a Series of Securities, it shall   pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted   interest, to the persons who are Securityholders of the Series on a subsequent special record date.    The Company shall fix the record date and payment date.  At least 10 days before the special record   date, the Company shall send to the Trustee and to each Securityholder of the Series a notice that  states the special record date, the payment date and the amount of interest to be paid.  The Company  may pay defaulted interest in any other lawful manner.                                           12 

 

            Section 2.14.  Global Securities.                2.14.1.     Terms of Securities.  A Board Resolution, a supplemental indenture   hereto or an Officer’s Certificate shall establish whether the Securities of a Series shall be issued   in whole or in part in the form of one or more Global Securities and the Depositary for such Global   Security or Securities.                2.14.2.     Transfer and Exchange.  Notwithstanding any provisions to the contrary   contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be   exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of   Holders other than the Depositary for such Security or its nominee only if (i) such Depositary   notifies the Company that it is unwilling or unable to continue as Depositary for such Global   Security or if at any time such Depositary ceases to be a clearing agency registered under the   Exchange Act, and, in either case, the Company fails to appoint a successor Depositary registered   as a clearing agency under the Exchange Act within 90 days of such event or (ii) the Company  executes and delivers to the Trustee an Officer’s Certificate to the effect that such Global Security  shall be so exchangeable.  Any Global Security that is exchangeable pursuant to the preceding  sentence shall be exchangeable for Securities registered in such names as the Depositary shall  direct in writing in an aggregate principal amount equal to the principal amount of the Global  Security with like tenor and terms.                Except as provided in this Section 2.14.2, a Global Security may not be transferred   except as a whole by the Depositary with respect to such Global Security to a nominee of such   Depositary, by a nominee of such Depositary to such Depositary or another nominee of such   Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of   such a successor Depositary.                2.14.3.     Legends.  Any Global Security issued hereunder shall bear a legend in   substantially the following form:                “THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF   THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME   OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY.  THIS SECURITY IS   EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER   THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES   DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A   WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE   OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE   DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR   DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.”                In addition, so long as the Depository Trust Company (“DTC”) is the Depositary,   each Global Note registered in the name of DTC or its nominee shall bear a legend in substantially   the following form:                “UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED   REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK                                           13 

 

      CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF   TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL NOTE ISSUED IS   REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS   REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT   IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN   AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE   HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL   INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST  HEREIN.”                2.14.4.     Acts of Holders.  The Depositary, as a Holder, may appoint agents and   otherwise authorize participants to give or take any request, demand, authorization, direction,   notice, consent, waiver or other action which a Holder is entitled to give or take under the   Indenture.                2.14.5.     Payments.  Notwithstanding the other provisions of this Indenture,   unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest,   if any, on any Global Security shall be made to the Holder thereof.                2.14.6.     Consents, Declaration and Directions.  The Company, the Trustee and   any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of   such Series represented by a Global Security as shall be specified in a written statement of the   Depositary or by the applicable procedures of such Depositary with respect to such Global   Security, for purposes of obtaining any consents, declarations, waivers or directions required to be   given by the Holders pursuant to this Indenture.          Section 2.15.  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.                                     ARTICLE III.                                   REDEMPTION          Section 3.1.  Notice to Trustee.                The Company may, with respect to any Series of Securities, reserve the right to   redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities   or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided   for in such Securities.  If a Series of Securities is redeemable and the Company wants or is   obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities   pursuant to the terms of such Securities, it shall notify the Trustee in writing of the redemption   date and the principal amount of Series of Securities to be redeemed.  The Company shall give the                                          14 

 

    notice at least 15 days before the redemption date, unless a shorter period is satisfactory to the  Trustee.         Section 3.2.  Selection of Securities to be Redeemed.               Unless otherwise indicated for a particular Series by a Board Resolution, a  supplemental indenture hereto or an Officer’s Certificate, if less than all the Securities of a Series  are to be redeemed, the Securities of the Series to be redeemed will be selected as follows:  (a) if  the Securities are in the form of Global Securities, in accordance with the procedures of the  Depositary, (b) if the Securities are listed on any national securities exchange, in compliance with  the requirements of the principal national securities exchange, if any, on which the Securities are  listed, or (c) if not otherwise provided for under clause (a) or (b) in the manner that the Trustee  deems fair and appropriate, including by lot or other method, unless otherwise required by law or  applicable stock exchange requirements, subject, in the case of Global Securities, to the applicable  rules and procedures of the Depositary.  The Securities to be redeemed shall be selected from  Securities of the Series outstanding not previously called for redemption.  Portions of the principal  of Securities of the Series that have denominations larger than $1,000 may be selected for  redemption.  Securities of the Series and portions of them it selected for redemption shall be in  amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable  in other denominations pursuant to Section 2.2.10, the minimum principal denomination for each  Series and the authorized integral multiples thereof.  Provisions of this Indenture that apply to  Securities of a Series called for redemption also apply to portions of Securities of that Series called  for redemption.         Section 3.3.  Notice of Redemption.               Unless otherwise indicated for a particular Series by Board Resolution, a  supplemental indenture hereto or an Officer’s Certificate, at least 15 days but not more than 60  days before a redemption date, the Company shall send or cause to be sent by first-class mail or  electronically, in accordance with the procedures of the Depositary, a notice of redemption to each  Holder whose Securities are to be redeemed.               The notice shall identify the Securities of the Series to be redeemed and shall state:               (a)    the redemption date;              (b)    the redemption price;              (c)    the name and address of the Paying Agent;              (d)    if any Securities are being redeemed in part, the portion of the principal       amount of such Securities to be redeemed and that, after the redemption date and upon       surrender of such Security, a new Security or Securities in principal amount equal to the        unredeemed portion of the original Security shall be issued in the name of the Holder        thereof upon cancellation of the original Security;               (e)    that Securities of the Series called for redemption must be surrendered to        the Paying Agent to collect the redemption price;                                         15 

 

                (f)    that interest on Securities of the Series called for redemption ceases to        accrue on and after the redemption date unless the Company defaults in the deposit of the        redemption price;               (g)    the CUSIP number, if any; and               (h)    any other information as may be required by the terms of the particular        Series or the Securities of a Series being redeemed.               At the Company’s request, the Trustee shall give the notice of redemption in the  Company’s name and at its expense, provided, however, that the Company has delivered to the  Trustee, at least 10 days (unless a shorter time shall be acceptable to the Trustee) prior to the notice  date, an Officer’s Certificate requesting that the Trustee give such notice and setting forth the  information to be stated in such notice.           Section 3.4.  Effect of Notice of Redemption.               Once notice of redemption is sent as provided in Section 3.3, Securities of a Series  called for redemption become due and payable on the redemption date and at the redemption price.   Except as otherwise provided in the supplemental indenture, Board Resolution or Officer’s  Certificate for a Series, a notice of redemption may not be conditional.  Upon surrender to the  Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the  redemption date.         Section 3.5.  Deposit of Redemption Price.               On or before 11:00 a.m., New York City time, on the redemption date, the Company  shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued  interest, if any, on all Securities to be redeemed on that date.         Section 3.6.  Securities Redeemed in Part.               Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate  for the Holder a new Security of the same Series and the same maturity equal in principal amount  to the unredeemed portion of the Security surrendered.                                    ARTICLE IV.                                  COVENANTS         Section 4.1.  Payment of Principal and Interest.               The Company covenants and agrees for the benefit of the Holders of each Series of  Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities  of that Series in accordance with the terms of such Securities and this Indenture.  On or before  11:00 a.m., New York City time, on the applicable payment date, the Company shall deposit with  the Paying Agent money sufficient to pay the principal of and interest, if any, on the Securities of  each Series in accordance with the terms of such Securities and this Indenture.                                          16 

 

          Section 4.2.  SEC Reports.               To the extent any Securities of a Series are outstanding, the Company shall deliver  to the Trustee within 15 days after it files them with the SEC 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 SEC may by rules and regulations prescribe) which the Company is required to file with the  SEC pursuant to Section 13 or 15(d) of the Exchange Act.  The Company also shall comply with  the other provisions of TIA § 314(a). Reports, information and documents filed with the SEC via  the EDGAR system will be deemed to be delivered to the Trustee as of the time of such filing via  EDGAR for purposes of this Section 4.2.               Delivery of reports, information and documents to the Trustee under this Section  4.2 are for informational purposes only and the Trustee’s receipt of the foregoing shall not  constitute constructive or actual notice of any information contained therein or determinable from  information contained therein, including the Company’s compliance with any of their covenants  hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).         Section 4.3.  Compliance Certificate.               To the extent any Securities of a Series are outstanding, the Company shall deliver  to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officer’s  Certificate stating that a review of the activities of the Company and its Subsidiaries during the  preceding fiscal year has been made under the supervision of the signing Officers with a view to  determining whether the Company has kept, observed, performed and fulfilled its obligations  under this Indenture, and further stating, as to each such Officer signing such certificate, that to  the best of his/her knowledge the Company has kept, observed, performed and fulfilled each and  every covenant contained in this Indenture and is not in default in the performance or observance  of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall  have occurred, describing all such Defaults or Events of Default of which the Officer may have  knowledge).         Section 4.4.  Stay, Extension and Usury Laws.               The Company covenants (to the extent that it may lawfully do so) that it will not at  any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage  of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which  may affect the covenants or the performance of this Indenture or the Securities; and the Company  (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such  law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution  of any power herein granted to the Trustee, but will suffer and permit the execution of every such  power as though no such law has been enacted.                                          17 

 

                                     ARTICLE V.                                  SUCCESSORS         Section 5.1.  When Company May Merge, Etc.               The Company shall not consolidate with or merge with or into, or convey, transfer  or lease all or substantially all of its properties and assets to, any person (a “successor person”)  unless:               (a)    the Company is the surviving corporation or the successor person (if other        than the Company) is a corporation organized and validly existing under the laws of any        U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the        Securities and under this Indenture; and               (b)    immediately after giving effect to the transaction, no Default or Event of        Default, shall have occurred and be continuing.               The Company shall deliver to the Trustee prior to the consummation of the  proposed transaction an Officer’s Certificate to the foregoing effect and an Opinion of Counsel  stating that the proposed transaction and any supplemental indenture comply with this Indenture.               Notwithstanding the above, any Subsidiary of the Company may consolidate with,  merge into or transfer all or part of its properties to the Company. Neither an Officer’s Certificate  nor an Opinion of Counsel shall be required to be delivered in connection therewith.         Section 5.2.  Successor Corporation Substituted.               Upon any consolidation or merger, or any sale, lease, conveyance or other  disposition of all or substantially all of the assets of the Company in accordance with Section 5.1,  the successor corporation formed by such consolidation or into or with which the Company is  merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and  be substituted for, and may exercise every right and power of, the Company under this Indenture  with the same effect as if such successor person has been named as the Company herein; provided,  however, that the predecessor Company in the case of a sale, conveyance or other disposition  (other than a lease) shall be released from all obligations and covenants under this Indenture and  the Securities.                                    ARTICLE VI.                            DEFAULTS AND REMEDIES         Section 6.1.  Events of Default.               “Event of Default,” wherever used herein with respect to Securities of any Series,  means any one of the following events, unless in the establishing Board Resolution, supplemental  indenture or Officer’s Certificate, it is provided that such Series shall not have the benefit of said  Event of Default:                                          18 

 

                        (a)    default in the payment of any interest on any Security of that Series when it   becomes due and payable, and continuance of such default for a period of 30 days (unless   the entire amount of such payment is deposited by the Company with the Trustee or with   a Paying Agent prior to 11:00 a.m., New  York City time, on the 30th day of such period);   or          (b)    default in the payment of principal of any Security of that Series at its   Maturity; or          (c)    default in the performance or breach of any covenant or warranty of the   Company in this Indenture (other than defaults pursuant to paragraphs (a) or (b) above or   pursuant to a covenant or warranty that has been included in this Indenture solely for the   benefit of Series of Securities other than that Series), which default continues uncured for   a period of 60 days after there has been given, by registered or certified mail, to the   Company by the Trustee or to the Company and the Trustee by the Holders of at least 25%   in principal amount of the outstanding Securities of that Series a written notice specifying   such default or breach and requiring it to be remedied and stating that such notice is a   “Notice of Default” hereunder; or          (d)    the Company pursuant 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,               (iv)  makes a general assignment for the benefit of its creditors, or               (v)   generally is unable to pay its debts as the same become due; or          (e)    a court of competent jurisdiction enters an order or decree under any   Bankruptcy Law that:                (i)   is for relief against the Company in an involuntary case,                (ii)  appoints a Custodian of the Company or 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 60 days; or          (f)    any other Event of Default provided with respect to Securities of that Series,   which is specified in a Board Resolution, a supplemental indenture hereto or an Officer’s   Certificate, in accordance with Section 2.2.18.                                     19 

 

                The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or  State law for the relief of debtors.  The term “Custodian” means any receiver, trustee, assignee,  liquidator or similar official under any Bankruptcy Law.               The Company will provide the Trustee written notice of any Default or Event of  Default within 30 days of becoming aware of the occurrence of such Default or Event of Default,  which notice will describe in reasonable detail the status of such Default or Event of Default and  what action the Company is taking or proposes to take in respect thereof.         Section 6.2.  Acceleration of Maturity; Rescission and Annulment.               If an Event of Default with respect to Securities of any Series at the time  outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(d)  or (e)) then in every such case the Trustee or the Holders of not less than 25% in principal amount  of the outstanding Securities of that Series may declare the principal amount (or, if any Securities  of that Series are Discount Securities, such portion of the principal amount as may be specified in  the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of  that Series to be due and payable immediately, by a notice in writing to the Company (and to the  Trustee if given by Holders), and upon any such declaration such principal amount (or specified  amount) and accrued and unpaid interest, if any, shall become immediately due and payable.  If an  Event of Default specified in Section 6.1(d) or (e) shall occur, the principal amount (or specified  amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto  become and be immediately due and payable without any declaration or other act on the part of  the Trustee or any Holder.               At any time after such a declaration of acceleration with respect to any Series has  been made and before a judgment or decree for payment of the money due has been obtained by  the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount  of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may  rescind and annul such declaration and its consequences if all Events of Default with respect to  Securities of that Series, other than the non-payment of the principal and interest, if any, of  Securities of that Series which have become due solely by such declaration of acceleration, have  been cured or waived as provided in Section 6.13.               No such rescission shall affect any subsequent Default or impair any right  consequent thereon.         Section 6.3.  Collection of Indebtedness and Suits for Enforcement by Trustee.               The Company covenants that if              (a)    default is made in the payment of any interest on any Security when such       interest becomes due and payable and such default continues for a period of 30 days, or               (b)    default is made in the payment of principal of any Security at the Maturity        thereof, or                                          20 

 

                  (c)    default is made in the deposit of any sinking fund payment, if any, when         and as due by the terms of a Security,    then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of   such Securities, the whole amount then due and payable on such Securities for principal and   interest and, to the extent that payment of such interest shall be legally enforceable, interest on any   overdue principal and any overdue interest at the rate or rates prescribed therefor in such Securities,   and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses   of collection, including the compensation, reasonable expenses, disbursements and advances of   the Trustee, its agents and counsel.                If the Company fails to pay such amounts forthwith upon such demand, the Trustee,   in its own name and as trustee of an express trust, may institute a judicial proceeding for the   collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final   decree and may enforce the same against the Company or any other obligor upon such Securities   and collect the moneys adjudged or deemed to be payable in the manner provided by law out of   the property of the Company or any other obligor upon such Securities, wherever situated.                If an Event of Default with respect to any Securities of any Series occurs and is   continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights   of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee   shall deem most effectual to protect and enforce any such rights, whether for the specific   enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power   granted herein, or to enforce any other proper remedy.          Section 6.4.  Trustee May File Proofs of Claim.                In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,   reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the   Company or any other obligor upon the Securities or the property of the Company or of such other   obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall   then be due and payable as therein expressed or by declaration or otherwise and irrespective of   whether the Trustee shall have made any demand on the Company for the payment of overdue   principal or interest) shall be entitled and empowered, by intervention in such proceeding or   otherwise,                (a)    to file and prove a claim for the whole amount of principal and interest         owing and unpaid in respect of the Securities and to file such other papers or documents as         may be necessary or advisable in order to have the claims of the Trustee (including any         claim for the compensation, reasonable expenses, disbursements and advances of the        Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding,        and               (b)    to collect and receive any moneys or other property payable or deliverable        on any such claims and to distribute the same,   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in  any such judicial proceeding is hereby authorized by each Holder to make such payments to the                                          21 

 

    Trustee and, in the event that the Trustee shall consent to the making of such payments directly to  the Holders, to pay to the Trustee any amount due it for the compensation, reasonable expenses,  disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the  Trustee under Section 7.7.               Nothing herein contained shall be deemed to authorize the Trustee to authorize or  consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,  adjustment or composition affecting the Securities or the rights of any Holder thereof or to  authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.         Section 6.5.  Trustee May Enforce Claims Without Possession of Securities.               All rights of action and claims under this Indenture or the Securities may be  prosecuted and enforced by the Trustee without the possession of any of the Securities or the  production thereof in any proceeding relating thereto, and any such proceeding instituted by the  Trustee shall be brought in its own name as trustee of an express trust, and any recovery of  judgment shall, after provision for the payment of the compensation, reasonable expenses,  disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the  Holders of the Securities in respect of which such judgment has been recovered.         Section 6.6.  Application of Money Collected.               Any money or property collected by the Trustee pursuant to this Article shall be  applied in the following order, at the date or dates fixed by the Trustee and, in case of the  distribution of such money or property on account of principal or interest, upon presentation of the  Securities and the notation thereon of the payment if only partially paid and upon surrender thereof  if fully paid:               First:      To the payment of all amounts due the Trustee under Section 7.7;  and               Second:     To the payment of the amounts then due and unpaid for principal of  and interest on the Securities in respect of which or for the benefit of which such money has been  collected, ratably, without preference or priority of any kind, according to the amounts due and  payable on such Securities for principal and interest, respectively; and               Third:      To the Company.         Section 6.7.  Limitation on Suits.               No Holder of any Security of any Series shall have any right to institute any  proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a  receiver or trustee, or for any other remedy hereunder, unless               (a)    such Holder has previously given written notice to the Trustee of a        continuing Event of Default with respect to the Securities of that Series;                                          22 

 

                (b)    the Holders of not less than 25% in principal amount of the outstanding        Securities of that Series shall have made written request to the Trustee to institute        proceedings in respect of such Event of Default in its own name as Trustee hereunder;               (c)    such Holder or Holders have offered to the Trustee indemnity or security        satisfactory to the Trustee against the costs, expenses and liabilities which might be        incurred by the Trustee in compliance with such request;               (d)    the Trustee for 60 days after its receipt of such notice, request and offer of        indemnity has failed to institute any such proceeding; and               (e)    no direction inconsistent with such written request has been given to the        Trustee during such 60-day period by the Holders of a majority in principal amount of the        outstanding Securities of that Series;   it being understood, intended and expressly covenanted by the Holder of every Security with every  other Holder and the Trustee that no one or more of such Holders shall have any right in any  manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb  or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or  preference over any other of such Holders or to enforce any right under this Indenture, except in  the manner herein provided and for the equal and ratable benefit of all such Holders of the  applicable Series.         Section 6.8.  Unconditional Right of Holders to Receive Principal and Interest.               Notwithstanding any other provision in this Indenture, the Holder of any Security  shall have the right, which is absolute and unconditional, to receive payment of the principal of  and interest, if any, on such Security on the Maturity of such Security, including the Stated  Maturity expressed in such Security (or, in the case of redemption, on the redemption date) and to  institute suit for the enforcement of any such payment, and such rights shall not be impaired  without the consent of such Holder.         Section 6.9.  Restoration of Rights and Remedies.               If the Trustee or any Holder has instituted any proceeding to enforce any right or  remedy under this Indenture and such proceeding has been discontinued or abandoned for any  reason, or has been determined adversely to the Trustee or to such Holder, then and in every such  case, subject to any determination in such proceeding, the Company, the Trustee and the Holders  shall be restored severally and respectively to their former positions hereunder and thereafter all  rights and remedies of the Trustee and the Holders shall continue as though no such proceeding  had been instituted.         Section 6.10.  Rights and Remedies Cumulative.               Except as otherwise provided with respect to the replacement or payment of  mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred  upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or  remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in                                         23 

 

    addition to every other right and remedy given hereunder or now or hereafter existing at law or in  equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise,  shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any  other appropriate right or remedy.         Section 6.11.  Delay or Omission Not Waiver.               No delay or omission of the Trustee or of any Holder of any Securities to exercise  any right or remedy accruing upon any Event of Default shall impair any such right or remedy or  constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and  remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time  to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case  may be.         Section 6.12.  Control by Holders.               The Holders of a majority in principal amount of the outstanding Securities of any  Series shall have the right to direct the time, method and place of conducting any proceeding for  any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,  with respect to the Securities of such Series, provided that               (a)    such direction shall not be in conflict with any rule of law or with this        Indenture,               (b)    the Trustee may take any other action deemed proper by the Trustee which        is not inconsistent with such direction,                (c)    subject to the provisions of Section 7.1, the Trustee shall have the right to        decline to follow any such direction if the Trustee in good faith shall, by a Responsible        Officer of the Trustee, determine that the proceeding so directed would involve the Trustee        in personal liability, and               (d)    prior to taking any action as directed under this Section 6.12, the Trustee        shall be entitled to indemnity satisfactory to it against the costs, expenses and liabilities        which might be incurred by it in compliance with such request or direction.         Section 6.13.  Waiver of Past Defaults.               The Holders of not less than a majority in principal amount of the outstanding  Securities of any Series may on behalf of the Holders of all the Securities of such Series, by written  notice to the Trustee and the Company, waive any past Default hereunder with respect to such  Series and its consequences, except a Default in the payment of the principal of or interest on any  Security of such Series (provided, however, that the Holders of a majority in principal amount of  the outstanding Securities of any Series may rescind an acceleration and its consequences,  including any related payment default that resulted from such acceleration).  Upon any such  waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be  deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend  to any subsequent or other Default or impair any right consequent thereon.                                         24 

 

          Section 6.14.  Undertaking for Costs.               All parties to this Indenture agree, and each Holder of any Security by his  acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in  any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the  Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in  such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion  assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,  having due regard to the merits and good faith of the claims or defenses made by such party litigant;  but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit  instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the  aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any  suit instituted by any Holder for the enforcement of the payment of the principal of or interest on  any Security on or after the Maturity of such Security, including the Stated Maturity expressed in  such Security (or, in the case of redemption, on the redemption date).                                   ARTICLE VII.                                    TRUSTEE         Section 7.1.  Duties of Trustee.               (a)    If an Event of Default has occurred and is continuing, the Trustee shall        exercise the rights and powers vested in it by this Indenture and use the same degree of        care and skill in their exercise as a prudent person would exercise or use under the        circumstances in the conduct of such person’s own affairs.               (b)    Except during the continuance of an Event of Default:                     (i)   The Trustee need perform only those duties that are specifically set              forth in this Indenture and no others.                     (ii)  In the absence of bad faith on its part, the Trustee may conclusively              rely, as to the truth of the statements and the correctness of the opinions expressed              therein, upon Officer’s Certificates or Opinions of Counsel furnished to the Trustee              and conforming to the requirements of this Indenture; however, in the case of any              such Officer’s Certificates or Opinions of Counsel which by any provisions hereof              are specifically required to be furnished to the Trustee, the Trustee shall examine              such Officer’s Certificates and Opinions of Counsel to determine whether or not              they conform to the form requirements of this Indenture.               (c)    The Trustee may not be relieved from liability for its own negligent action,        its own negligent failure to act or its own willful misconduct, except that:                     (i)   This paragraph does not limit the effect of paragraph (b) of this              Section.                                          25 

 

                             (ii)  The Trustee shall not be liable for any error of judgment made in        good faith by a Responsible Officer, unless it is proved that the Trustee was        negligent in ascertaining the pertinent facts.               (iii) The Trustee shall not be liable with respect to any action taken,        suffered or omitted to be taken by it with respect to Securities of any Series in good        faith in accordance with the direction of the Holders of a majority in principal        amount of the outstanding Securities of such Series relating to the time, method and        place of conducting any proceeding for any remedy available to the Trustee, or        exercising any trust or power conferred upon the Trustee, under this Indenture with        respect to the Securities of such Series in accordance with Section 6.12.         (d)    Every provision of this Indenture that in any way relates to the Trustee is  subject to paragraph (a), (b) and (c) of this Section.         (e)    The Trustee may refuse to perform any duty or exercise any right or power  unless it receives indemnity satisfactory to it against the costs, expenses and liabilities  which might be incurred by it in performing such duty or exercising such right or power.         (f)    The Trustee shall not be liable for interest on any money received by it  except as the Trustee may agree in writing with the Company.  Money held in trust by the  Trustee need not be segregated from other funds except to the extent required by law.         (g)    No provision of this Indenture shall require the Trustee to risk its own funds  or otherwise incur any financial liability in the performance of any of its duties, or in the  exercise of any of its rights or powers, if adequate indemnity against such risk is not assured  to the Trustee in its satisfaction.         (h)    The Paying Agent, the Registrar and any authenticating agent shall be  entitled to the protections and immunities as are set forth in paragraphs (e), (f) and (g) of  this Section and in Section 7.2, each with respect to the Trustee.   Section 7.2.  Rights of Trustee.         (a)    The Trustee may rely on and shall be protected in acting or refraining from  acting upon any document (whether in its original or facsimile form) believed by it to be  genuine and to have been signed or presented by the proper person.  The Trustee need not  investigate any fact or matter stated in the document.         (b)    Before the Trustee acts or refrains from acting, it may require an Officer’s  Certificate or an Opinion of Counsel or both.  The Trustee shall not be liable for any action  it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion  of Counsel.         (c)    The Trustee may act through agents and shall not be responsible for the  misconduct or negligence of any agent appointed with due care.  No Depositary shall be  deemed an agent of the Trustee and the Trustee shall not be responsible for any act or  omission by any Depositary.                                   26 

 

                (d)    The Trustee shall not be liable for any action it takes or omits to take in       good faith which it believes to be authorized or within its rights or powers, provided that       the Trustee’s conduct does not constitute willful misconduct or negligence.              (e)    The Trustee may consult with counsel and the advice of such counsel or any        Opinion of Counsel shall be full and complete authorization and protection in respect of        any action taken, suffered or omitted by it hereunder without willful misconduct or        negligence, and in reliance thereon.               (f)    The Trustee shall be under no obligation to exercise any of the rights or        powers vested in it by this Indenture at the request or direction of any of the Holders of        Securities unless such Holders shall have offered to the Trustee security or indemnity        satisfactory to it against the costs, expenses and liabilities which might be incurred by it in        compliance with such request or direction.               (g)    The Trustee shall not be bound to make any investigation into the facts or        matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,        request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or        other paper or document, but the Trustee, in its discretion, may make such further inquiry        or investigation into such facts or matters as it may see fit.               (h)    The Trustee shall not be deemed to have notice of any Default or Event of        Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless        written notice of any event which is in fact such a default is received by the Trustee at the        Corporate Trust Office of the Trustee, and such notice references the Securities generally        or the Securities of a particular Series and this Indenture.               (i)    In no event shall the Trustee be liable to any person for special, punitive,        indirect, consequential or incidental loss or damage of any kind whatsoever (including but        not limited to lost profits), even if the Trustee has been advised of the likelihood of such        loss or damage.               (j)    The permissive right of the Trustee to take the actions permitted by this        Indenture shall not be construed as an obligation or duty to do so.         Section 7.3.  Individual Rights of Trustee.               The Trustee in its individual or any other capacity may become the owner or  pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company  with the same rights it would have if it were not Trustee.  Any Agent may do the same with like  rights.  The Trustee is also subject to Sections 7.10 and 7.11.         Section 7.4.  Trustee’s Disclaimer.               The Trustee makes no representation as to the validity or adequacy of this Indenture  or the Securities, it shall not be accountable for the Company’s use of the proceeds from the  Securities, and it shall not be responsible for any statement in the Securities other than its  authentication.                                         27 

 

            Section 7.5.  Notice of Defaults.                If a Default or Event of Default occurs and is continuing with respect to the   Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall   send to each Securityholder of the Securities of that Series notice of a Default or Event of Default   within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge   of such Default or Event of Default.  Except in the case of a Default or Event of Default in payment   of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and   so long as its corporate trust committee or a committee of its Responsible Officers in good faith   determines that withholding the notice is in the interests of Securityholders of that Series.          Section 7.6.  Reports by Trustee to Holders.                Within 60 days after each anniversary of the date of this Indenture, the Trustee shall  transmit by mail to all Securityholders, as their names and addresses appear on the register kept  by the Registrar, a brief report dated as of such anniversary date, in accordance with, and to the  extent required under, TIA § 313.               A copy of each report at the time of its mailing to Securityholders of any Series  shall be filed with the SEC and each national securities exchange on which the Securities of that  Series are listed.  The Company shall promptly notify the Trustee in writing when Securities of  any Series are listed on any national securities exchange.          Section 7.7.  Compensation and Indemnity.                The Company shall pay to the Trustee 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.                The Company shall indemnify each of the Trustee and any predecessor Trustee   (including for the cost of defending itself) and hold it harmless against any cost, expense or   liability, including taxes (other than taxes based upon, measured by or determined by the income   of the Trustee) incurred by it except as set forth in the next paragraph in the performance of its   duties under this Indenture as Trustee or Agent.  The Trustee shall notify the Company promptly   of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the Company   shall not relieve the Company of its obligations hereunder, unless and to the extent that the   Company is materially prejudiced thereby.  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 will not be unreasonably withheld.  This   indemnification shall apply to officers, directors, employees, shareholders and agents of the   Trustee.                                           28 

 

                  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 willful misconduct or negligence.                  To secure the Company’s payment obligations in this Section, the Trustee shall   have a lien prior to the Securities of any Series on all money or property held or collected by the   Trustee, except that held in trust to pay principal of and interest on particular Securities of that   Series.                When the Trustee incurs expenses or renders services after an Event of Default   specified in Section 6.1(d) or (e) occurs, the expenses and the compensation for the services are   intended to constitute expenses of administration under any Bankruptcy Law.                The provisions of this Section shall survive the termination of this Indenture and   the resignation or removal of the Trustee.          Section 7.8.  Replacement of Trustee.                A resignation or removal of the Trustee and appointment of a successor Trustee   shall become effective only upon the successor Trustee’s acceptance of appointment as provided   in this Section.                The Trustee may resign with respect to the Securities of one or more Series by so   notifying the Company at least 30 days prior to the date of the proposed resignation.  The Holders   of a majority in principal amount of the Securities of any Series may remove the Trustee with   respect to that Series by so notifying the Trustee and the Company at least 30 days prior to the date   of the proposed removal.  The Company may remove the Trustee with respect to Securities of one   or more Series if:                (a)    the Trustee fails to comply with Section 7.10;                (b)    the Trustee is adjudged a bankrupt or an insolvent or an order for relief is         entered with respect to the Trustee under any Bankruptcy Law;                (c)    a Custodian or public officer takes charge of the Trustee or its property; or               (d)    the Trustee becomes incapable of acting.               If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee  for any reason, the Company shall promptly appoint a successor Trustee.  Within one year after  the successor Trustee takes office, the Holders of a majority in principal amount of the then  outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed  by the Company.               If a successor Trustee with respect to the Securities of any one or more Series does  not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee,  the Company or the Holders of at least a majority in principal amount of the Securities of the                                           29 

 

      applicable Series may petition any court of competent jurisdiction for the appointment of a   successor Trustee.                A successor Trustee shall deliver a written acceptance of its appointment to the   retiring Trustee and to the Company.  Immediately after that, the retiring Trustee shall transfer all   property held by it as Trustee to the successor Trustee subject to the lien provided for in Section   7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor   Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of   Securities for which it is acting as Trustee under this Indenture.  A successor Trustee shall mail a   notice of its succession to each Securityholder of each such Series.  Notwithstanding replacement   of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 hereof   shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred   by it for actions taken or omitted to be taken in accordance with its rights, powers and duties under   this Indenture prior to such replacement.          Section 7.9.  Successor Trustee by Merger, Etc.                If the Trustee consolidates with, merges or converts into, or transfers all or   substantially all of its corporate trust business to, another corporation, the successor corporation   without any further act shall be the successor Trustee, subject to Section 7.10.          Section 7.10.  Eligibility; Disqualification.                This Indenture shall always have a Trustee who satisfies the requirements of TIA §   310(a)(1), (2) and (5).  The Trustee shall always have a combined capital and surplus of at least   $25,000,000 as set forth in its most recent published annual report of condition.  The Trustee shall  comply with TIA § 310(b).          Section 7.11.  Preferential Collection of Claims Against Company.                The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in   TIA § 311(b).  A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to   the extent indicated.                                    ARTICLE VIII.                   SATISFACTION AND DISCHARGE; DEFEASANCE          Section 8.1.  Satisfaction and Discharge of Indenture.                This Indenture shall upon Company Order be discharged with respect to the   Securities of any Series and cease to be of further effect as to all Securities of such Series (except   as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall   execute instruments acknowledging satisfaction and discharge of this Indenture, when                (a)    either                                           30 

 

                        (i)   all Securities of such Series theretofore authenticated and delivered               (other than Securities that have been destroyed, lost or stolen and that have been               replaced or paid) have been delivered to the Trustee for cancellation; or                      (ii)  all such Securities of such Series not theretofore delivered to the               Trustee for cancellation                            (1)   have become due and payable by reason of sending a notice                     of redemption or otherwise, or                           (2)   will become due and payable at their Stated Maturity within                    one year, or                           (3)   have been called for redemption or are to be called for                    redemption within one year under arrangements satisfactory to the Trustee                    for the giving of notice of redemption by the Trustee in the name, and at the                    expense, of the Company, or                           (4)   are deemed paid and discharged pursuant to Section 8.3, as                    applicable;   and the Company, in the case of (1), (2) or (3) above, shall have irrevocably deposited or caused  to be deposited with the Trustee as trust funds in trust an amount of money or U.S. Government  Obligations, which amount shall be sufficient for the purpose of paying and discharging each  installment of principal (including mandatory sinking fund or analogous payments) of and interest  on all the Securities of such Series on the dates such installments of principal or interest are due;               (b)    the Company has paid or caused to be paid all other sums payable hereunder        by the Company; and               (c)    the Company shall have delivered to the Trustee an Officer’s Certificate and        an Opinion of Counsel, each stating that all conditions precedent provided for relating to        the satisfaction and discharge contemplated by this Section have been complied with.               Notwithstanding the satisfaction and discharge of this Indenture, the obligations of  the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the  Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.2 and  8.5  shall survive.          Section 8.2.  Application of Trust Funds; Indemnification.                (a)    Subject to the provisions of Section 8.5, all money and U.S. Government         Obligations or Foreign Government Obligations deposited with the Trustee pursuant to         Section 8.1, 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government         Obligations or Foreign Government Obligations deposited with the Trustee pursuant to         Section 8.1, 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the         provisions of the Securities and this Indenture, to the payment, either directly or through         any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee                                          31 

 

          may determine, to the persons entitled thereto, of the principal and interest for whose        payment such money has been deposited with or received by the Trustee or to make        mandatory sinking fund payments or analogous payments as contemplated by Sections 8.1,        8.3 or 8.4.               (b)    The Company shall pay and shall indemnify the Trustee against any tax, fee        or other charge imposed on or assessed against U.S. Government Obligations or Foreign        Government Obligations deposited pursuant to Sections 8.1, 8.3 or 8.4 or the interest and        principal received in respect of such obligations other than any payable by or on behalf of        Holders.               (c)    The Trustee shall deliver or pay to the Company from time to time upon        Company Order any U.S. Government Obligations or Foreign Government Obligations or        money held by it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally        recognized firm of independent certified public accountants or investment bank expressed        in a written certification thereof delivered to the Trustee, are then in excess of the amount        thereof which then would have been required to be deposited for the purpose for which        such U.S. Government Obligations or Foreign Government Obligations or money were        deposited or received.  This provision shall not authorize the sale by the Trustee of any        U.S. Government Obligations or Foreign Government Obligations held under this        Indenture.         Section 8.3.  Legal Defeasance of Securities of any Series.               Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2, to be  inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged  the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date  of the deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it  relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee,  at the expense of the Company, shall, upon receipt of a Company Order, execute instruments  acknowledging the same), except as to:               (a)    the rights of Holders of Securities of such Series to receive, from the trust        funds described in subparagraph (d) hereof, (i) payment of the principal of and each       installment of principal of and interest on the outstanding Securities of such Series on the       Maturity of such principal or installment of principal or interest and (ii) the benefit of any       mandatory sinking fund payments applicable to the Securities of such Series on the day on       which such payments are due and payable in accordance with the terms of this Indenture       and the Securities of such Series;              (b)    the provisions of Sections 2.4, 2.5, 2.7, 2.8, 7.7, 8.2, 8.3, 8.5 and 8.6; and               (c)    the rights, powers, trusts and immunities of the Trustee hereunder and the        Company’s obligations in connection therewith;   provided that, the following conditions shall have been satisfied:                                          32 

 

                (d)    the Company shall have irrevocably deposited or caused to be deposited        (except as provided in Section 8.2(c)) with the Trustee as trust funds specifically pledged       as security for and dedicated solely to the benefit of the Holders of such Securities (i) in       the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S.       Government Obligations, or (ii) in the case of Securities of such Series denominated in a       Foreign Currency (other than a composite currency), money and/or Foreign Government       Obligations, which through the payment of interest and principal in respect thereof in        accordance with their terms, will provide (and without reinvestment and assuming no tax        liability will be imposed on such Trustee), not later than one day before the due date of any        payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized        firm of independent public accountants or investment bank expressed in a written        certification thereof delivered to the Trustee, to pay and discharge each installment of        principal of and interest, on and any mandatory sinking fund payments in respect of all the       Securities of such Series on the dates such installments of principal or interest and such       sinking fund payments are due;              (e)    such deposit will not result in a breach or violation of, or constitute a default       under, this Indenture or any other agreement or instrument to which the Company is a party       or by which it is bound;               (f)    no Default or Event of Default with respect to the Securities of such Series        shall have occurred and be continuing on the date of such deposit or during the period        ending on the 91st day after such date;               (g)    the Company shall have delivered to the Trustee an Officer’s Certificate and        an Opinion of Counsel to the effect that (i) the Company has received from, or there has        been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution        of this Indenture, there has been a change in the applicable Federal income tax law, in either        case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the        Holders of the Securities of such Series will not recognize income, gain or loss for Federal        income tax purposes as a result of such deposit, defeasance and discharge and will be        subject to Federal income tax on the same amount and in the same manner and at the same        times as would have been the case if such deposit, defeasance and discharge had not        occurred;               (h)    the Company shall have delivered to the Trustee an Officer’s Certificate        stating that the deposit was not made by the Company with the intent of defeating,        hindering, delaying or defrauding any other creditors of the Company; and               (i)    the Company shall have delivered to the Trustee an Officer’s Certificate and        an Opinion of Counsel, each stating that all conditions precedent provided for relating to        the defeasance contemplated by this Section have been complied with.         Section 8.4.  Covenant Defeasance.               Unless this Section 8.4 is otherwise specified pursuant to Section 2.2 to be  inapplicable to Securities of any Series, the Company may omit to comply with respect to the                                          33 

 

    Securities of any Series with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4  and 5.1 and, unless otherwise specified therein, any additional covenants specified in a  supplemental indenture for such Series of Securities or a Board Resolution or an Officer’s  Certificate delivered pursuant to Section 2.2 (and the failure to comply with any such covenants  shall not constitute a Default or Event of Default with respect to such Series under Section 6.1)  and the occurrence of any event specified in a supplemental indenture for such Series of Securities  or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.2 and designated  as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to  the Securities of such Series, but, except as specified above, the remainder of this Indenture and  such Securities will be unaffected thereby; provided that the following conditions shall have been  satisfied:               (a)    with reference to this Section 8.4, the Company has irrevocably deposited        or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the        Trustee as trust funds in trust for the purpose of making the following payments specifically        pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities        (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or        U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated        in a Foreign Currency (other than a composite currency), money and/or Foreign        Government Obligations, which through the payment of interest and principal in respect        thereof in accordance with their terms, will provide (and without reinvestment and       assuming no tax liability will be imposed on such Trustee), not later than one day before       the due date of any payment of money, an amount in cash, sufficient, in the opinion of a       nationally recognized firm of independent certified public accountants or investment bank       expressed in a written certification thereof delivered to the Trustee, to pay and discharge       each installment of principal (including mandatory sinking fund or analogous payments)       of and interest on all the Securities of such Series on the dates such installments of principal       or interest are due;              (b)    such deposit will not result in a breach or violation of, or constitute a default       under, this Indenture or any other agreement or instrument to which the Company is a party       or by which it is bound;              (c)    no Default or Event of Default with respect to the Securities of such Series       shall have occurred and be continuing on the date of such deposit;              (d)    the Company shall have delivered to the Trustee an Officers’ Certificate and       an Opinion of Counsel to the effect that the Holders of the Securities of such Series will       not recognize income, gain or loss for Federal income tax purposes as a result of such        deposit and covenant defeasance and will be subject to Federal income tax on the same        amount and in the same manner and at the same times as would have been the case if such        deposit and covenant defeasance had not occurred;               (e)    The Company shall have delivered to the Trustee an Officer’s Certificate        stating the deposit was not made by the Company with the intent of defeating, hindering,        delaying or defrauding any other creditors of the Company; and                                          34 

 

                (f)    The Company shall have delivered to the Trustee an Officer’s Certificate        and an Opinion of Counsel, each stating that all conditions precedent herein provided for        relating to the covenant defeasance contemplated by this Section have been complied with.         Section 8.5.  Repayment to Company.               Subject to applicable abandoned property law, the Trustee and the Paying Agent  shall pay to the Company upon request any money held by them for the payment of principal and  interest that remains unclaimed for two years.  After that, Securityholders entitled to the money  must look to the Company for payment as general creditors unless an applicable abandoned  property law designates another person.         Section 8.6.  Reinstatement.               If the Trustee or the Paying Agent is unable to apply any money deposited with  respect to Securities of any Series in accordance with Section 8.1 by reason of any legal proceeding  or by reason of any order or judgment of any court or governmental authority enjoining, restraining  or otherwise prohibiting such application, the obligations of the Company under this Indenture  with respect to the Securities of such Series and under the Securities of such Series shall be revived  and reinstated as though no deposit had occurred pursuant to Section 8.1 until such time as the  Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 8.1;  provided, however, that if the Company has made any payment of principal of or interest on any  Securities because of the reinstatement of its obligations, the Company shall be subrogated to the  rights of the Holders of such Securities to receive such payment from the money or U.S.  Government Obligations held by the Trustee or Paying Agent after payment in full to the Holders.                                    ARTICLE IX.                          AMENDMENTS AND WAIVERS         Section 9.1.  Without Consent of Holders.               The Company and the Trustee may amend or supplement this Indenture or the  Securities of one or more Series without the consent of any Securityholder:               (a)    to cure any ambiguity, defect or inconsistency;               (b)    to comply with Article V;               (c)    to provide for uncertificated Securities in addition to or in place of        certificated Securities;               (d)    to add guarantees with respect to Securities of any Series or secure        Securities of any Series;               (e)    to surrender any of the Company’s rights or powers under this Indenture;               (f)    to add covenants or events of default for the benefit of the holders of        Securities of any Series;                                         35 

 

                  (g)    to comply with the applicable procedures of the applicable depositary;               (h)    to make any change that does not adversely affect the rights of any        Securityholder;               (i)    to provide for the issuance of and establish the form and terms and        conditions of Securities of any Series as permitted by this Indenture;               (j)    to evidence and provide for the acceptance of appointment hereunder by a        successor Trustee with respect to the Securities of one or more Series and to add to or        change any of the provisions of this Indenture as shall be necessary to provide for or        facilitate the administration of the trusts hereunder by more than one Trustee; or               (k)    to comply with requirements of the SEC in order to effect or maintain the        qualification of this Indenture under the TIA.          Section 9.2.  With Consent of Holders.                The Company and the Trustee may enter into a supplemental indenture with the   written consent of the Holders of at least a majority in principal amount of the outstanding   Securities of each Series affected by such supplemental indenture (including consents obtained in   connection with a tender offer or exchange offer for the Securities of such Series), 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 the rights of the   Securityholders of each such Series.  Except as provided in Section 6.13, the Holders of at least a   majority in principal amount of the outstanding Securities of any Series by notice to the Trustee   (including consents obtained in connection with a tender offer or exchange offer for the Securities   of such Series) may waive compliance by the Company with any provision of this Indenture or the   Securities with respect to such Series.                It shall not be necessary for the consent of the Holders of Securities under this   Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but   it shall be sufficient if such consent approves the substance thereof.  After a supplemental indenture   or waiver under this section becomes effective, the Company shall send to the Holders of Securities   affected thereby, a notice briefly describing the supplemental indenture or waiver.  Any failure by   the Company to send such notice, or any defect therein, shall not, however, in any way impair or  affect the validity of any such supplemental indenture or waiver.          Section 9.3.  Limitations.                Without the consent of each Securityholder affected, an amendment or waiver may   not:                (a)    reduce the principal amount of Securities whose Holders must consent to an        amendment, supplement or waiver;                (b)    reduce the rate of or extend the time for payment of interest (including         default interest) on any Security;                                          36 

 

                (c)    reduce the principal or change the Stated Maturity of any Security or reduce        the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous        obligation;              (d)    reduce the principal amount of Discount Securities payable upon       acceleration of the maturity thereof;              (e)    waive a Default or Event of Default in the payment of the principal of or       interest, if any, on any Security (except a rescission of acceleration of the Securities of any       Series by the Holders of at least a majority in principal amount of the outstanding Securities       of such Series and a waiver of the payment default that resulted from such acceleration);               (f)    make the principal of or interest, if any, on any Security payable in any        currency other than that stated in the Security;               (g)    make any change in Sections 6.8, 6.13 or 9.3 (this sentence); or              (h)    waive a redemption payment with respect to any Security, provided that       such redemption is made at the Company’s option.         Section 9.4.  Compliance with Trust Indenture Act.               Every amendment to this Indenture or the Securities of one or more Series shall be  set forth in a supplemental indenture hereto that complies with the TIA as then in effect.         Section 9.5.  Revocation and Effect of Consents.               Until an amendment is set forth in a supplemental indenture or a waiver becomes  effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every  subsequent Holder of a Security or portion of a Security that evidences the same debt as the  consenting Holder’s Security, even if notation of the consent is not made on any Security.   However, any such Holder or subsequent Holder may revoke the consent as to his Security or  portion of a Security if the Trustee receives the notice of revocation before the date of the  supplemental indenture or the date the waiver becomes effective.               Any amendment or waiver once effective shall bind every Securityholder of each  Series affected by such amendment or waiver unless it is of the type described in any of clauses  (a) through (h) of Section 9.3.  In that case, the amendment or waiver shall bind each Holder of a  Security who has consented to it and every subsequent Holder of a Security or portion of a Security  that evidences the same debt as the consenting Holder’s Security.               The Company may, but shall not be obligated to, fix a record date for the purpose  of determining the Holders entitled to give their consent or take any other action described above  or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then  notwithstanding the second immediately preceding paragraph, those Persons who were Holders at  such record date (or their duly designated proxies), and only those persons, shall be entitled to give  such consent or to revoke any consent previously given or take any such action, whether or not                                          37 

 

    such Persons continue to be Holders after such record date. No such consent shall be valid or  effective for more than 120 days after such record date.         Section 9.6.  Notation on or Exchange of Securities.               The Company or the Trustee may place an appropriate notation about an  amendment or waiver on any Security of any Series thereafter authenticated.  The Company in  exchange for Securities of that Series may issue and the Trustee shall authenticate upon receipt of  a Company Order in accordance with Section 2.3 new Securities of that Series that reflect the  amendment or waiver.         Section 9.7.  Trustee Protected.               In executing, or accepting the additional trusts created by, any supplemental  indenture permitted by this Article or the modifications thereby of the trusts created by this  Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully  protected in relying upon, an Officer’s Certificate or an Opinion of Counsel or both complying  with Section 10.4.  The Trustee shall sign all supplemental indentures upon delivery of such an  Officer’s Certificate or Opinion of Counsel or both, except that the Trustee need not sign any  supplemental indenture that adversely affects its rights, duties, liabilities or immunities under this  Indenture.                                    ARTICLE X.                                MISCELLANEOUS         Section 10.1.  Trust Indenture Act Controls.               If any provision of this Indenture limits, qualifies, or conflicts with another  provision which is required or deemed to be included in this Indenture by the TIA, such required  or deemed provision shall control.         Section 10.2.  Notices.               Any notice or communication by the Company or the Trustee to the other, or by a  Holder to the Company or the Trustee, is duly given if in writing and delivered in person or mailed  by first-class mail (registered or certified, return receipt requested), facsimile transmission, email  or overnight air courier guaranteeing next day delivery, to the others’ address:   if to the Company:                     Guardant Health, Inc.                    505 Penobscot Dr.                    Redwood City, California 94063                    Attention: Chief Financial Officer; General Counsel                    Telephone: (855) 698-8887                      with a copy to:                                          38 

 

                        Latham & Watkins LLP                    650 Town Center Drive, 20th Floor                    Costa Mesa, California 92626                     Attention:  B. Shayne Kennedy; Drew Capurro                    Telephone: (714) 540-1235       if to the Trustee:                      Wilmington Trust, National Association                     Rodney Square North                    1100 North Market Street                    Wilmington, Delaware 19890                    Attention: Tom Morris                    Telephone: (302) 636-6432                        with a copy to:                       Alston & Bird LLP                     101 South Tryon Street, Suite 4000                     Charlotte, North Carolina 28280                     Attention: Jason Solomon                     Telephone: (704)-444-1295                                  The Company or the Trustee by notice to the other may designate additional or  different addresses for subsequent notices or communications.               Any notice or communication to a Securityholder shall be sent electronically or by  first-class mail to his, her or its address shown on the register kept by the Registrar, in accordance   with the procedures of the Depositary.  Failure to send a notice or communication to a   Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other   Securityholders of that or any other Series.                If a notice or communication is sent or published in the manner provided above,  within the time prescribed, it is duly given, whether or not the Securityholder receives it.                If the Company sends a notice or communication to Securityholders, it shall send a   copy to the Trustee and each Agent at the same time.                Notwithstanding any other provision of this Indenture or any Security, where this   Indenture or any Security provides for notice of any event (including any notice of redemption) to   a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently   given to the Depositary for such Security (or its designee) pursuant to the customary procedures   of such Depositary.                                            39 

 

          Section 10.3.  Communication by Holders with Other Holders.               Securityholders of any Series may communicate pursuant to TIA § 312(b) with  other Securityholders of that Series or any other Series with respect to their rights under this  Indenture or the Securities of that Series or all Series.  The Company, the Trustee, the Registrar  and anyone else shall have the protection of TIA § 312(c).         Section 10.4.  Certificate and Opinion as to Conditions Precedent.               Upon any request or application by the Company to the Trustee to take any action  under this Indenture, the Company shall furnish to the Trustee:               (a)    an Officer’s Certificate stating that, in the opinion of the signers, all        conditions precedent, if any, provided for in this Indenture relating to the proposed action        have been complied with; and               (b)    an Opinion of Counsel stating that, in the opinion of such counsel, all such        conditions precedent have been complied with.         Section 10.5.  Statements Required in Certificate or Opinion.               Each certificate or opinion with respect to compliance with a condition or covenant  provided for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall  comply with the provisions of TIA § 314(e) and shall include:               (a)    a statement that the person making such certificate or opinion has read such        covenant or condition;               (b)    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;               (c)    a statement that, in the opinion of such person, he has made such        examination or investigation as is necessary to enable him to express an informed opinion        as to whether or not such covenant or condition has been complied with; and               (d)    a statement as to whether or not, in the opinion of such person, such        condition or covenant has been complied with.         Section 10.6.  Rules by Trustee and Agents.               The Trustee may make reasonable rules for action by or a meeting of  Securityholders of one or more Series.  Any Agent may make reasonable rules and set reasonable  requirements for its functions.                                          40 

 

            Section 10.7.  Legal Holidays.                A “Legal Holiday” is any day that is not a Business Day.  If a payment date is a  Legal Holiday at a place of payment, payment may be made at that place on the next succeeding  day that is not a Legal Holiday, and no interest shall accrue for the intervening period.          Section 10.8.  No Recourse Against Others.                A director, officer, employee or stockholder (past or present), as such, of the   Company shall not have any liability for any obligations of the Company under the Securities or   the Indenture or for any claim based on, in respect of or by reason of such obligations or their   creation.  Each Securityholder by accepting a Security waives and releases all such liability.  The   waiver and release are part of the consideration for the issue of the Securities.          Section 10.9.  Counterparts.                This Indenture may be executed in any number of counterparts and by the parties   hereto in separate counterparts, each of which when so executed shall be deemed to be an original   and all of which taken together shall constitute one and the same agreement. 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 10.10. Governing Law; Waiver of Jury Trial; Consent to Jurisdiction.                THIS INDENTURE AND THE SECURITIES, INCLUDING ANY CLAIM   OR CONTROVERSY      ARISING OUT OF OR RELATING TO THE INDENTURE OR   THE SECURITIES, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW   YORK.                THE  COMPANY, THE TRUSTEE        AND THE    HOLDERS   (BY THEIR   ACCEPTANCE OF THE SECURITIES) EACH HEREBY IRREVOCABLY WAIVE, TO   THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT  TO TRIAL BY JURY IN ANY LEGAL PROCEEDING                ARISING OUT OF OR  RELATING TO THIS INDENTURE, THE NOTES OR                 THE TRANSACTIONS  CONTEMPLATED HEREBY OR THEREBY.               Any legal suit, action or proceeding arising out of or based upon this Indenture or  the transactions contemplated hereby may be instituted in the federal courts of the United States  of America located in the City of New York or the courts of the State of New York in each case  located in the City of New York (collectively, the “Specified Courts”), and each party irrevocably  submits to the non exclusive jurisdiction of such courts in any such suit, action or proceeding.   Service of any process, summons, notice or document by mail (to the extent allowed under any  applicable statute or rule of court) to such party’s address set forth above shall be effective service  of process for any suit, action or other proceeding brought in any such court.  The Company, the  Trustee and the Holders (by their acceptance of the Securities) each hereby irrevocably and  unconditionally waive any objection to the laying of venue of any suit, action or other proceeding                                          41 

 

    in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim  any such suit, action or other proceeding has been brought in an inconvenient forum.         Section 10.11. No Adverse Interpretation of Other Agreements.               This Indenture may not be used to interpret another indenture, loan or debt  agreement of the Company or a Subsidiary of the Company.  Any such indenture, loan or debt  agreement may not be used to interpret this Indenture.         Section 10.12. Successors.               All agreements of the Company in this Indenture and the Securities shall bind its  successor.  All agreements of the Trustee in this Indenture shall bind its successor.         Section 10.13. Severability; Entire Agreement.               In case any provision in this Indenture or in the Securities shall be invalid, illegal  or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in  any way be affected or impaired thereby.  This Indenture and the exhibits hereto set forth the entire  agreement and understanding of the parties related to this transaction and supersedes all prior  agreements and understandings, oral or written.         Section 10.14. Table of Contents, Headings, Etc.               The Table of Contents, Cross Reference Table, and headings of the Articles and  Sections of this Indenture have been inserted for convenience of reference only, are not to be  considered a part hereof, and shall in no way modify or restrict any of the terms or provisions  hereof.         Section 10.15. Securities in a Foreign Currency.               Unless otherwise specified in a Board Resolution, a supplemental indenture hereto  or an Officer’s Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a  particular Series of Securities, whenever for purposes of this Indenture any action may be taken  by the Holders of a specified percentage in aggregate principal amount of Securities of all Series  or all Series affected by a particular action at the time outstanding and, at such time, there are  outstanding Securities of any Series which are denominated in more than one currency, then the  principal amount of Securities of such Series which shall be deemed to be outstanding for the  purpose of taking such action shall be determined by converting any such other currency into a  currency that is designated upon issuance of any particular Series of Securities.  Unless otherwise  specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate  delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities,  such conversion shall be at the spot rate for the purchase of the designated currency as published  in The Financial Times in the “Currency Rates” section (or, if The Financial Times is no longer  published, or if such information is no longer available in The Financial Times, such source as  may be selected in good faith by the Company) on any date of determination.  The provisions of  this paragraph shall apply in determining the equivalent principal amount in respect of Securities                                          42 

 

      of a Series denominated in currency other than Dollars in connection with any action taken by   Holders of Securities pursuant to the terms of this Indenture.                All decisions and determinations provided for in the preceding paragraph shall, in   the absence of manifest error, to the extent permitted by law, be conclusive for all purposes and   irrevocably binding upon the Trustee and all Holders.          Section 10.16. Judgment Currency.                The Company agrees, to the fullest extent that it may effectively do so under   applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to   convert the sum due in respect of the principal of or interest or other amount on the Securities of   any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the  “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with  normal banking procedures the Trustee could purchase in The City of New York the Required   Currency with the Judgment Currency on the day on which final unappealable judgment is entered,   unless such day is not a New York Banking Day, then the rate of exchange used shall be the rate   at which in accordance with normal banking procedures the Trustee could purchase in The City of   New York the Required Currency with the Judgment Currency on the New York Banking Day   preceding the day on which final unappealable judgment is entered and (b) its obligations under   this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied   by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with   subsection (a)), in any currency other than the Required Currency, except to the extent that such   tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required   Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an   alternative or additional cause of action for the purpose of recovering in the Required Currency   the amount, if any, by which such actual receipt shall fall short of the full amount of the Required   Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained   for any other sum due under this Indenture.  For purposes of the foregoing, “New York Banking   Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on   which banking institutions are authorized or required by law, regulation or executive order to close.          Section 10.17. Force Majeure.                In no event shall the Trustee be responsible or liable for any failure or delay in the   performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces   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 best efforts which are   consistent with accepted practices in the banking industry to resume performance as soon as   practicable under the circumstances.           Section 10.18. U.S.A. Patriot Act.                The parties hereto acknowledge that in accordance with Section 326 of the U.S.A.   Patriot Act, the Trustee is required to obtain, verify, and record information that identifies each                                           43 

 

      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.                                     ARTICLE XI.                                  SINKING FUNDS          Section 11.1.  Applicability of Article.                The provisions of this Article shall be applicable to any sinking fund for the   retirement of the Securities of a Series if so provided by the terms of such Securities pursuant to    Section 2.2 and except as otherwise permitted or required by any form of Security of such Series   issued pursuant to this Indenture.                The minimum amount of any sinking fund payment provided for by the terms of   the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any   other amount provided for by the terms of Securities of such 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 11.2.    Each sinking fund payment shall be applied to the redemption of Securities of any Series as   provided for by the terms of the Securities of such Series.          Section 11.2.  Satisfaction of Sinking Fund Payments with Securities.                The Company may, in satisfaction of all or any part of any sinking fund payment   with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1)   deliver outstanding Securities of such Series to which such sinking fund payment is applicable   (other than any of such Securities previously called for mandatory sinking fund redemption) and   (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and   which have been repurchased by the Company or redeemed either at the election of the Company   pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund)  or through the application of permitted optional sinking fund payments or other optional  redemptions pursuant to the terms of such Securities, provided that such Securities have not been   previously so credited.  Such Securities shall be received by the Trustee, together with an Officer’s   Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins   the process of selecting Securities for redemption, and shall be credited for such purpose by the   Trustee at the 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.  If as a result of  the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the  principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash  payment shall be less than $100,000, the Trustee need not call Securities of such Series for  redemption, except upon receipt of a Company Order that such action be taken, and such cash  payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking  fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time   upon receipt of a Company Order pay over and deliver to the Company any cash payment so being   held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of                                           44 

 

      Securities of that Series purchased by the Company having an unpaid principal amount equal to   the cash payment required to be released to the Company.          Section 11.3.  Redemption of Securities for Sinking Fund.                Not less than 45 days (unless otherwise indicated in the Board Resolution,   supplemental indenture hereto or Officer’s Certificate in respect of a particular Series of Securities)   prior to each sinking fund payment date for any Series of Securities, the Company will deliver to   the Trustee an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking   fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which   is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by   delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional   amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the   Company shall thereupon be obligated to pay the amount therein specified.  Not less than 30 days   (unless otherwise indicated in the Board Resolution, Officer’s Certificate or supplemental   indenture in respect of a particular Series of Securities) before each such sinking fund payment   date the Securities to be redeemed upon such sinking fund payment date will be selected in the  manner specified in Section 3.2 and the Company shall send or cause to be sent a notice of the  redemption thereof to be given in the name of and at the expense of the Company in the manner  provided in and in accordance with Section 3.3.  Such notice having been duly given, the  redemption of such Securities shall be made upon the terms and in the manner stated in Sections  3.4, 3.5 and 3.6.                                                          45 

 

                IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly  executed as of the day and year first above written.                                             GUARDANT HEALTH, INC.                                                                                         By:                                                                                Name:                                               Its:                                                            WILMINGTON TRUST, NATIONAL                                            ASSOCIATION, as Trustee                                                                                         By:                                                                                Name:                                               Its:wve-ex42_1384.htm

 

Exhibit 4.2

 

DESCRIPTION OF SECURITIES REGISTERED PURSUANT

TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

Wave Life Sciences Ltd. (the “Company,” “we,” “us” or “our”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our ordinary shares, no par value. 

 

DESCRIPTION OF SHARE CAPITAL

General 

The following description of our share capital and provisions of our constitution (formerly known as our memorandum and articles of association) are summaries and are qualified by reference to the Singapore Companies Act and our constitution. A copy of our constitution has been filed with the Securities and Exchange Commission as an exhibit to our Annual Report on Form 10-K of which this Exhibit is a part. 

Ordinary Shares 

As of December 31, 2019, our issued and paid-up ordinary share capital consists of 34,340,690 ordinary shares. We currently have only one class of issued ordinary shares, which have identical rights in all respects and rank equally with one another. Our ordinary shares have no par value and there is no authorized share capital under Singapore law. There is a provision in our constitution which provides that we may issue shares with such preferred, deferred or other special rights or such restrictions, whether in regard to dividend, voting, return of capital or otherwise as our board of directors may determine. 

All of our shares presently issued are fully paid-up, and existing shareholders are not subject to any calls on these shares. Although Singapore law does not recognize the concept of “non-assessability” with respect to newly-issued shares, we note that any purchaser of our shares who has fully paid up all amounts due with respect to such shares will not be subject under Singapore law to any personal liability to contribute to the assets or liabilities of our company in such purchaser’s capacity solely as a holder of such shares. We believe that this interpretation is substantively consistent with the concept of “non-assessability” under most, if not all, U.S. state corporations laws. All of our shares are in registered form. We cannot, except in the circumstances permitted by the Singapore Companies Act, grant any financial assistance for the acquisition or proposed acquisition of our own shares. Except as described below under “—Takeovers,” there are no limitations imposed by the Singapore Companies Act or by our constitution on the right of shareholders not resident in Singapore to hold or vote ordinary shares. 

Transfer Agent and Registrar 

The transfer agent and registrar for our ordinary shares is Computershare Trust Company, N.A. 

Nasdaq Global Market 

Our ordinary shares are listed for quotation on The Nasdaq Global Market under the symbol “WVE.” 

New Shares 

Under the Singapore Companies Act, new shares may be issued only with the prior approval of our shareholders in a general meeting. General approval may be sought from our shareholders in a general meeting for the issue of shares. Approval, if granted, will lapse at the earlier of: 

	
 
	
•
	
the conclusion of the next annual general meeting; or 

	
 
	
•
	
the expiration of the period within which the next annual general meeting is required by law to be held (i.e., within six months after the end of each financial year), 

but any approval may be revoked or varied by the company in a general meeting. 

 

 

Our shareholders have provided such general authority to issue new ordinary shares until the conclusion of our 2020 annual general meeting. Such approval will lapse in accordance with the preceding paragraph if our shareholders do not grant a new approval at our 2020 annual general meeting. Subject to this and the provisions of the Singapore Companies Act and our constitution, our board of directors may allot and issue or grant options over or otherwise dispose of new ordinary shares to such persons on such terms and conditions and with the rights and restrictions as they may think fit to impose. 

Preferred Shares 

Series A Preferred Shares 

As of December 31, 2019, we have 3,901,348 Series A preferred shares outstanding. These shares are currently held by one of our largest shareholders, Shin Nippon Biomedical Laboratories, Ltd. The terms of the Series A preferred shares as set out in our constitution include (1) no voting rights at any general meeting other than in limited circumstances, (2) a liquidation preference equal to $0.002 per Series A preferred share, (3) no entitlement to dividends and (4) the right to convert the Series A preferred shares at any time on a one-for-one basis into ordinary shares at the discretion of the holder in accordance with the constitution. 

The holders of the Series A preferred shares are not entitled to vote at any general meeting. The only instances in which the holders of the Series A preferred shares are able to vote at a general meeting would be if (but only if) the matters to be discussed at the meeting relate to or there is intent to pass resolutions on (i) abrogating or changing the rights attached to the Series A preferred shares; and (ii) for the winding up of the Company. Such resolutions would require the unanimous approval of the holders of the Series A preferred shares. 

Other Preferred Shares 

Under the Singapore Companies Act, different classes of shares in a public company may be issued only if (a) the issue of the class or classes of shares is provided for in the constitution of the public company and (b) the constitution of the public company sets out in respect of each class of shares the rights attached to that class of shares. Our constitution provides that we may issue shares of a different class with preferred, deferred or other special rights, or such restrictions, whether in regard to dividend, voting, return of capital or otherwise as our board of directors may determine. Under Singapore law, our preferred shareholders will have the right to attend any general meeting and in a poll at such general meeting, to have at least one vote for every preferred share held: 

	
 
	
•
	
upon any resolution concerning the voluntary winding-up of our company under Section 290 of the Singapore Companies Act; 

	
 
	
•
	
upon any resolution which varies the rights attached to such preferred shares; or 

	
 
	
•
	
in the case of preferred shares issued after August 15, 1984, but before the commencement of Section 96 of the Companies (Amendment) Act 2014, when the dividends to be paid on our preferred shares or any part thereof are more than twelve months in arrears and unpaid, for the period they remain in arrears and unpaid. 

We may, subject to the Singapore Companies Act and the prior approval in a general meeting of our shareholders, issue preferred shares which are, or at our option or are to be, subject to redemption provided that such preferred shares may not be redeemed out of capital unless: 

	
 
	
•
	
all the directors have made a solvency statement in relation to such redemption; and 

	
 
	
•
	
we have lodged a copy of the statement with the Accounting and Corporate Regulatory Authority of Singapore. 

Further, such shares must be fully paid-up before they are redeemed. 

As of December 31, 2019, we have no preferred shares outstanding other than the Series A preferred shares described above and we have no plans to issue additional preferred shares. 

Registration Rights under our Share Purchase Agreement with Pfizer 

Under the terms of our Share Purchase Agreement dated as of May 5, 2016 with an affiliate of Pfizer Inc. (the “Pfizer Affiliate”), the Pfizer Affiliate agreed that the 1,875,000 ordinary shares that the Pfizer Affiliate purchased from us under the Share Purchase Agreement (the “Pfizer Shares”), would be subject to a lock-up restriction, such that the Pfizer Affiliate will not, and will also cause its affiliates not to, without our prior approval, sell, transfer or otherwise dispose of the Pfizer Shares until certain specified periods of time after the effective date of the Share Purchase Agreement. For a certain period following the expiration of the lock-up period, subject to certain conditions and limitations, we agreed to provide certain demand registration rights to the Pfizer Affiliate in order to register all or a portion of the Pfizer Shares purchased by the Pfizer Affiliate. We also provided the Pfizer Affiliate with 

2

 

certain “piggyback” registration rights for a certain period following the expiration of the lock-up period, subject to certain conditions and limitations, such that when we propose to register our ordinary shares for our account, the Pfizer Affiliate will have the right to include some or all of the Pfizer Shares in such registration. The Share Purchase Agreement also contains other customary terms and conditions of the parties with respect to the registration of the Pfizer Shares. 

Registration Rights under our Share Purchase Agreement with Takeda 

On February 19, 2018, we entered into a share purchase agreement with Takeda Pharmaceutical Company Limited (“Takeda”), pursuant to which Takeda purchased 1,096,892 of our ordinary shares (the “Takeda Shares”). In connection with the share purchase agreement, Takeda and we agreed upon certain rights and restrictions as set forth in the Investor Agreement, dated as of April 2, 2018 (the “Investor Agreement”). The Takeda Shares would be subject to a lock-up restriction, such that Takeda will not, and will also cause its affiliates not to, without our prior approval, sell, transfer or otherwise dispose of the Takeda Shares until certain specified periods of time after the effective date of the Investor Agreement. For a certain period following the expiration of the lock-up period, subject to certain conditions and limitations, we agreed to provide certain demand registration rights to Takeda in order to register all or a portion of the Takeda Shares purchased by Takeda. We also provided Takeda with certain “piggyback” registration rights for a certain period following the expiration of the lock-up period, subject to certain conditions and limitations, such that when we propose to register our ordinary shares for our account, Takeda will have the right to include some or all of the Takeda Shares in such registration. The Investor Agreement also contains other customary terms and conditions of the parties with respect to the registration of Takeda Shares. 

Transfer of Ordinary Shares 

Subject to applicable securities laws in relevant jurisdictions and our constitution, our ordinary shares are freely transferable. Our constitution provides that shares may be transferred by a duly signed instrument of transfer in any usual or common form or in a form approved by the directors and Nasdaq. The directors may decline to register any transfer unless, among other things, evidence of payment of any stamp duty payable with respect to the transfer is provided together with other evidence of ownership and title as the directors may reasonably require to show the right of the transferor to make the transfer. We will replace lost or destroyed certificates for shares upon notice to us and upon, among other things, the applicant furnishing evidence and indemnity as the directors may require and the payment of all applicable fees. 

Election and Re-election of Directors 

We may, by ordinary resolution, remove any director before the expiration of his or her period of office, notwithstanding anything in our constitution or in any agreement between us and such director. We may also, by an ordinary resolution, appoint another person in place of a director removed from office pursuant to the foregoing. 

Under our constitution, subject to the Singapore Companies Act, any director shall retire at the next annual general meeting and shall then be eligible for re-election at that meeting. 

Our board of directors shall have the power, at any time and from time to time, to appoint any person to be a director either to fill a casual vacancy or as an additional director so long as the total number of directors shall not at any time exceed the maximum number (if any) fixed by or in accordance with our constitution. 

Shareholders’ Meetings 

We are required to hold an annual general meeting each calendar year and within six months after the end of each financial year. The directors may convene an extraordinary general meeting whenever they think fit and they must do so upon the written request of shareholders holding not less than 10% of the total number of paid-up shares as of the date of deposit of the requisition carrying the right to vote at a general meeting. In addition, two or more shareholders holding not less than 10% of our total number of issued shares (excluding our treasury shares) may call a meeting of our shareholders. 

The Singapore Companies Act provides that a shareholder is entitled to attend any general meeting and speak on any resolution put before the general meeting. Unless otherwise required by law or by our constitution, resolutions put forth at general meetings may be decided by ordinary resolution, requiring the affirmative vote of a majority of the shareholders present in person or represented by proxy at the meeting and entitled to vote on the resolution. An ordinary resolution suffices, for example, for appointments of directors. A special resolution, requiring an affirmative vote of not less than three-fourths of the shareholders present in person or represented by proxy at the meeting and entitled to vote on the resolution, is necessary for certain matters under Singapore law, such as an alteration of our constitution. A shareholder entitled to attend and vote at a meeting of the company, or at a meeting of any class of shareholders of the company, shall be entitled to appoint another person or persons, whether a shareholder of the company or not, as his proxy to 

3

 

attend and vote instead of the shareholder at the meeting. Under the Singapore Companies Act, a proxy appointed to attend and vote instead of the shareholder shall also have the same right as the shareholder to speak at the meeting, but unless the constitution of the company otherwise provides, (i) a proxy shall not be entitled to vote except on a poll, (ii) a shareholder shall not be entitled to appoint more than two proxies to attend and vote at the same meeting and (iii) where a shareholder appoints two proxies the appointment shall be invalid unless the shareholder specifies the proportions of his holdings to be represented by each proxy. 

Notwithstanding the foregoing, a registered shareholder entitled to attend and vote at a meeting of the company held pursuant to an order of court under Section 210(1) of the Singapore Companies Act, or at any adjourned meeting under Section 210(3) of the Singapore Companies Act, is, unless the court orders otherwise, entitled to appoint only one proxy to attend and vote at the same meeting, and except where the aforementioned applies, a registered shareholder having a share capital who is a relevant intermediary (as defined under the Singapore Companies Act) may appoint more than two proxies in relation to a meeting to exercise all or any of his rights to attend and to speak and vote at the meeting, but each proxy must be appointed to exercise the rights attached to a different share or shares held by him (which number and class of shares shall be specified), and at such meeting, the proxy has the right to vote on a show of hands. 

Only registered shareholders of our company, and their proxies, will be entitled to attend, speak and vote at any meeting of shareholders. Under the Singapore Companies Act, public companies may issue non-voting shares and shares that confer special, limited or conditional voting rights, such that the holder of a share may vote on a resolution before a general meeting of the company if, in accordance with the provisions of Section 64A of the Singapore Companies Act, the share confers on the holder a right to vote on that resolution. 

Voting Rights 

As provided under our constitution and the Singapore Companies Act, voting at any meeting of shareholders is by show of hands unless a poll has been demanded prior to the declaration of the result of the show of hands by, among others, (i) the chairman or (ii) at least one shareholder present in person or by proxy or by attorney or, in the case of a corporation, by a representative entitled to vote thereat, in each case representing in the aggregate not less than 5% of the total voting rights of all shareholders having the right to vote at the general meeting, provided that no poll shall be demanded in respect of an election of a chairman or relating to any adjournment of such meeting. On a poll every shareholder who is present in person or by proxy or by attorney, or in the case of a corporation, by a representative, has one vote for every share held by such shareholder. Proxies need not be shareholders. 

Only those shareholders who are registered in our register of members as holders of ordinary shares will be entitled to vote at any meeting of shareholders. Therefore, DTC, or its nominee, will grant an omnibus proxy to DTC participants holding our shares in book-entry form through a broker, bank, nominee, or other institution that is a direct or indirect participant in the DTC. Such shareholders will have the right to instruct their broker, bank, nominee or other institution holding these shares on how to vote such shares by completing the voting instruction form provided by the applicable broker, bank, nominee, or other institution. Whether voting is by a show of hands or by a poll, DTC’s vote will be voted by the chairman of the meeting according to the results of the DTC’s participants’ votes (which results will reflect the instructions received from shareholders that own our shares electronically in book-entry form). 

Minority Rights 

The rights of minority shareholders of Singapore companies are protected, among other things, under Section 216 of the Singapore Companies Act, which gives the Singapore courts a general power to make any order, upon application by any shareholder of a company, as they think fit to remedy any of the following situations: 

	
 
	
•
	
the affairs of a company are being conducted or the powers of the board of directors are being exercised in a manner oppressive to, or in disregard of the interests of, one or more of the shareholders, including the applicant; or 

	
 
	
•
	
a company takes an action, or threatens to take an action, or the shareholders pass a resolution, or propose to pass a resolution, which unfairly discriminates against, or is otherwise prejudicial to, one or more of the shareholders, including the applicant. 

Singapore courts have wide discretion as to the remedy they may grant, and the remedies listed in the Singapore Companies Act itself are not exclusive. In general, Singapore courts may, with a view to bringing to an end or remedying the matters complained of: 

	
 
	
•
	
direct or prohibit any act or cancel or modify any transaction or resolution; 

	
 
	
•
	
regulate the conduct of the affairs of the company in the future; 

	
 
	
•
	
authorize civil proceedings to be brought in the name of, or on behalf of, the company by a person or persons and on such terms as the court may direct; 

4

 

	
 
	
•
	
provide for the purchase of a minority shareholder’s shares by the other shareholders or by the company itself; 

	
 
	
•
	
in the case of a purchase of shares by the company provide for a reduction accordingly of the company’s capital; or 

	
 
	
•
	
provide that the company be wound up. 

Dividends 

Subject to any preferential rights of holders of any outstanding preferred shares, holders of our ordinary shares will be entitled to receive dividends and other distributions in cash, shares or property as may be declared by our company from time to time. We may, by ordinary resolution, declare dividends at a general meeting of shareholders, but we are restricted from paying dividends in excess of the amount recommended by our board of directors. Pursuant to Singapore law and our constitution, no dividend may be paid except out of our profits. To date, we have not declared any cash dividends on our ordinary shares and have no current plans to pay cash dividends in the foreseeable future. 

Bonus and Rights Issues 

In a general meeting, our shareholders may, upon the recommendation of the directors, capitalize any reserves or profits and distribute them as bonus shares, credited as paid-up, to the shareholders in proportion to their shareholdings. 

Subject to the provisions of the Singapore Companies Act and our constitution, our directors may also issue rights to take up additional ordinary shares to our shareholders in proportion to their respective ownership. Such rights are subject to any condition attached to such issue and the regulations of any stock exchange on which our shares are listed, as well as U.S. federal and blue sky securities laws applicable to such issue. 

Takeovers 

The Singapore Code on Take-overs and Mergers applies to, among other things, the acquisition of voting shares of Singapore-incorporated listed public companies or unlisted public companies with more than 50 shareholders and net tangible assets of S$5 million or more. Any person acquiring, whether by a series of transactions over a period of time or not, either on his or her own or together with parties acting in concert with such person, 30% or more of our voting shares, or, if such person holds, either on his or her own or together with parties acting in concert with such person, between 30% and 50% (both amounts inclusive) of our voting shares, and if such person (or parties acting in concert with such person) acquires additional voting shares representing more than 1% of our voting shares in any six-month period, must, except with the consent of the Securities Industry Council in Singapore, extend a mandatory takeover offer for the remaining voting shares in accordance with the provisions of the Singapore Code on Take-overs and Mergers. Responsibility for ensuring compliance with the Singapore Code on Take-overs and Mergers rests with parties (including company directors) to a take-over or merger and their advisors. 

“Parties acting in concert” comprise individuals or companies who, pursuant to an agreement or understanding (whether formal or informal), cooperate, through the acquisition by any of them of shares in a company, to obtain or consolidate effective control of that company. Certain persons are presumed (unless the presumption is rebutted) to be acting in concert with each other. They are as follows: 

	
 
	
•
	
a company, its parent company, subsidiaries and fellow subsidiaries, the associated companies of any of the company and its related companies, subsidiaries and fellow subsidiaries, companies whose associated companies include any of these companies and any person who has provided financial assistance (other than a bank in the ordinary course of business) to any of the foregoing for the purchase of voting rights; 

	
 
	
•
	
a company with any of its directors (together with their close relatives, related trusts and companies controlled by any of the directors, their close relatives and related trusts); 

	
 
	
•
	
a company with any of its pension funds and employee share schemes; 

	
 
	
•
	
a person with any investment company, unit trust or other fund whose investment such person manages on a discretionary basis, but only in respect of the investment account which such person manages; 

	
 
	
•
	
a financial or other professional advisor, including a stockbroker, with its client in respect of the shareholdings of the advisor and persons controlling, controlled by or under the same control as the advisor; 

	
 
	
•
	
directors of a company (together with their close relatives, related trusts and companies controlled by any of such directors, their close relatives and related trusts) which is subject to an offer or where the directors have reason to believe a bona fide offer for their company may be imminent; 

5

 

	
 
	
•
	
partners; and 

	
 
	
•
	
an individual and (i) such person’s close relatives, (ii) such person’s related trusts, (iii) any person who is accustomed to act in accordance with such person’s instructions, (iv) companies controlled by the individual, such person’s close relatives, related trusts or any person who is accustomed to act in accordance with such person’s instructions and (v) any person who has provided financial assistance (other than a bank in the ordinary course of business) to any of the foregoing for the purchase of voting rights. 

Subject to certain exceptions, a mandatory offer must be in cash or be accompanied by a cash alternative at not less than the highest price paid by the offeror or parties acting in concert with the offeror during the offer period and within the six months prior to its commencement. 

Under the Singapore Code on Take-overs and Mergers, where effective control of a company is acquired or consolidated by a person, or persons acting in concert, a general offer to all other shareholders is normally required. An offeror must treat all shareholders of the same class in an offeree company equally. A fundamental requirement is that shareholders in the company subject to the takeover offer must be given sufficient information, advice and time to consider and decide on the offer. These legal requirements may impede or delay a takeover of our company by a third-party. 

We may submit an application to the Securities Industry Council of Singapore for a waiver from the Singapore Code on Take-overs and Mergers so that the Singapore Code on Take-overs and Mergers will not apply to our company for so long as we are not listed on a securities exchange in Singapore. We will make an appropriate announcement if we submit the application and when the result of the application is known. 

Liquidation or Other Return of Capital 

On a winding-up or other return of capital, subject to any special rights attaching to the Series A preferred shares or to any other class of shares, holders of ordinary shares will be entitled to participate in any surplus assets in proportion to their shareholdings. 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00305-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00305-of-00352.parquet"}]]