Document:

exv4w6

 

Exhibit 4.6

THE PROGRESSIVE CORPORATION

and

STATE STREET BANK AND TRUST COMPANY, as

Successor Trustee

FOURTH SUPPLEMENTAL INDENTURE

6.25% Senior Notes due 2032

     THIS FOURTH SUPPLEMENTAL INDENTURE, dated as of November 21, 2002,
between THE PROGRESSIVE CORPORATION, an Ohio corporation (the “Issuer”) and
STATE STREET BANK AND TRUST COMPANY, a Massachusetts trust company (“SSB”), in
its capacity as Successor Trustee.

W I T N E S S E T H:

     WHEREAS, the Issuer entered into an Indenture, dated as of September 15, 1993 (as
supplemented by the First Supplemental Indenture, dated as of March 15, 1996, the
“Indenture”), with the First National Bank of Boston, in its capacity as Trustee, pursuant to
which the Issuer may from time to time issue its unsecured debentures, notes and other evidences
of indebtedness in one or more series; and

     WHEREAS, the Issuer entered into a Supplemental Indenture, dated as of March 15,
1996, confirming the succession of SSB as trustee under the Indenture; and

     WHEREAS, the Issuer entered into a Second Supplemental Indenture, dated as of
February 26, 1999;

     WHEREAS, the Issuer entered into a Third Supplemental Indenture, dated as of
December 7, 2001;

     WHEREAS, Article Eight of the Indenture provides for various matters with respect to
any series of Securities issued under the Indenture to be established in an indenture supplemental
to the Indenture; and

     WHEREAS, Section 8.1(c) of the Indenture provides that the Issuer, when authorized by
its Board of Directors, and the Trustee may from time to time and at any time enter into an

 

 

indenture supplemental to the Indenture to add on to the covenants of the Issuer certain further
covenants, restrictions, conditions or provisions.

     NOW THEREFORE:

     In consideration of the premises and other good and valuable consideration, the parties
hereto mutually covenant and agree as follows:

ARTICLE 1

RELATION TO INDENTURE; DEFINITIONS

     SECTION 1.01. Integral Part. This Fourth Supplemental Indenture constitutes an integral
part of the Indenture.

     SECTION 1.02. General Definitions. For all purposes of this Fourth Supplemental
Indenture:

     (a)  capitalized terms used herein without definition shall have the meanings specified
in the Indenture;

     (b)  all references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Fourth Supplemental Indenture; and

     (c)  the terms “herein”, “hereof”, “hereunder” and other words of similar import refer
to this Fourth Supplemental Indenture.

     SECTION 1.03. Definitions. The following definitions shall apply to this Fourth
Supplemental Indenture:

     “Consolidated Tangible Net Worth” means, at any date, the total assets appearing on
the consolidated balance sheet of the Issuer and its consolidated subsidiaries as of the end of the
then most recent fiscal quarter of the Issuer, prepared in accordance with generally accepted
accounting principles, less the sum of (a) the total liabilities appearing on such balance sheet and
(b) intangible assets. “Intangible assets” means, for the purposes of this definition, the value, as
shown on or reflected in such balance sheet, of (i) all trade names, trademarks, licenses, patents,
copyrights and goodwill, (ii) organizational costs and (iii) unamortized debt discount and
expense, less unamortized premium.

     “Designated Securities” means the series of Securities designated by the Issuer as its
“6.25% Senior Notes due 2032”.

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     "Designated Subsidiary” means (i) Progressive Casualty Insurance Company, an Ohio
corporation, so long as it remains a subsidiary of the Issuer, (ii) any other consolidated subsidiary
of the Issuer the assets of which constitute 10% or more of the Total Assets, and (iii) any
subsidiary that is a successor to all or substantially all of the business or properties of any such
subsidiary.

     "Total Assets” means, at any date, the total assets appearing on the consolidated balance
sheet of the Issuer and its consolidated subsidiaries as of the end of the then most recent fiscal
quarter of the Issuer, prepared in accordance with generally accepted accounting principles.

ARTICLE 2

ADDITIONAL COVENANTS

     SECTION 2.01. Limitation on Liens. The Issuer will not, nor will it permit any
Designated Subsidiary to, incur, issue, assume or guarantee any indebtedness for money
borrowed if (i) that indebtedness is secured by a pledge, mortgage, deed of trust or other lien on
any shares of stock or indebtedness of any Designated Subsidiary (a “lien”), and (ii) the
aggregate amount of the indebtedness so secured exceeds an amount equal to 15% of the Issuer’s
Consolidated Tangible Net Worth, unless the Designated Securities are also secured equally and
ratably with such other indebtedness. For purposes of this restriction, a “lien” will not include
the pledge to, or deposit with, any state or provincial insurance regulatory authorities of any
investment securities by the Issuer or any of its subsidiaries.

     The foregoing restriction shall not apply to indebtedness secured by:

     (a)  Liens on any shares of stock or indebtedness of or acquired from a corporation
merged or consolidated with or into, or otherwise acquired by, the Issuer or a Designated
Subsidiary;

     (b)  Liens to secure indebtedness of a Designated Subsidiary to the Issuer or to another
Designated Subsidiary, but only as long as such indebtedness is owned or held by the Issuer or a
Designated Subsidiary; and

     (c)  Any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any lien referred to in (a) and (b).

     SECTION 2.02. Consolidation, Merger, Sale, Conveyance and Lease. The Issuer will not
consolidate or merge with or into any other Person or Persons, or sell, convey or lease all or
substantially all of its property to any other Person, unless:

     (a)  the Person formed by such consolidation, or into which the Issuer is merged or
which acquires or leases all or substantially all of the property of the Issuer, is a corporation or

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other entity organized under the laws of the United States, any state thereof or the District of
Columbia, and such Person expressly assumes the Issuer’s obligations under the Designated
Securities and the Indenture; and

     (b)  immediately after giving effect to the transaction, no Event of Default exists.

     This restriction shall not apply if the Issuer is the Person that survives any such
transaction.

     In the event of a conflict between any provision in this Section and any provision in
Article 9 of the Indenture, Article 9 of the Indenture shall govern.

ARTICLE 3

REOPENING OF THE SERIES

     SECTION 3.01. Reopening of the Series. The Issuer may at any time, without the consent
of the holders of the Designated Securities, increase the principal amount of the Designated
Securities.

ARTICLE 4

MISCELLANEOUS PROVISIONS

     SECTION 4.01. Applicability of this Fourth Supplemental Indenture. The provisions of
this Fourth Supplemental Indenture will be applicable solely to the Designated Securities.

     SECTION 4.02. Adoption, Ratification and Confirmation. The Indenture, as
supplemented by this Fourth Supplemental Indenture, is in all respects hereby adopted, ratified
and confirmed.

     SECTION 4.03. Counterparts. This Fourth Supplemental Indenture may be executed in
any number of counterparts, each of which when so executed shall be deemed an original; and all
such counterparts shall together constitute but one and the same instrument.

     SECTION 4.04. Governing Law. THIS FOURTH SUPPLEMENTAL INDENTURE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

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     IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental
Indenture to be duly executed and their respective corporate seals to be hereunto fixed and
attested as of the day and year first written above.

	 	 	 
	 	 	
THE PROGRESSIVE CORPORATION
	 
	 	 	
By: /s/ Stephen D. Peterson

Stephen D. Peterson

Treasurer
	 
	Attest:	 	 
	 
	By: /s/ Charles E. Jarrett

Charles E. Jarrett

Secretary	 	 
	 
	 	 	
STATE STREET BANK AND TRUST

COMPANY, as Successor Trustee
	 
	 	 	
By: /s/ Patrick E. Thebadou

Name: Patrick E. Thebadou
	 	 	Title: Vice
President
	 
	Attest:	 	 
	 
	By: /s/ Dori Anne Seakas

Name: Dori Anne Seakas	 	 
	Title: Officer	 	 

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	STATE OF OHIO	 	
)

) ss:
	
	
	
	

	COUNTY OF CUYAHOGA	 	
)

     On this      th day of November, 2002, before me personally came Stephen D. Peterson, to
me personally known, who, being by me duly sworn, did depose and say that he is a resident of
Cuyahoga County, Ohio; that he is an officer of THE PROGRESSIVE CORPORATION, one of
the corporations described in and which executed the above instrument; that he knows the
corporate seal of said corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said corporation, and that he
signed his name thereto by like authority.

	 	 	 
		 	

Notary Public

My commission expires:

[Notarial Seal]

	 	 	 
	STATE OF MASSACHUSETTS	 	
)

) ss.:
	
	
	
	

	COUNTY OF SUFFOLK	 	
)

     On this
     th day of November, 2002, before me
personally came                                            ,
to me personally known, who, being by me duly sworn, did depose and say that he is a resident
of Bristol County, Massachusetts; that he is an authorized officer of STATE STREET BANK
AND TRUST COMPANY, one of the corporations described in and which executed the above
instrument; that he knows the corporate seal of said corporation; that the seal affixed to said
instruments is such corporate seal; that it was so affixed by authority of the Board of Directors of
said corporation, and that he signed her name thereto by like authority.

	 	 	 
		 	

Notary Public

My commission expires:
	 
	[Notary Seal]	 	 

-6-exv4w7

 

Exhibit 4.7

(Face of Security)

     Unless this certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation (“DTC”) to the Issuer or
its agent for registration of transfer, exchange or payment, and such
certificate is registered in the name of Cede & Co., or in such other name as
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.

	 	 	 	 	 
	REGISTERED NO. R-001	 	 	 	
$400,000,000

CUSIP No. 743315 AL 7

THE PROGRESSIVE CORPORATION

6.25% SENIOR NOTE DUE 2032

     THE PROGRESSIVE CORPORATION, an Ohio corporation (the “Issuer”), for value
received, hereby promises to pay to CEDE & Co., c/o The Depository Trust
Company, 55 Water Street, New York, New York 10041 or registered assigns, at
the office or agency of the Issuer at the office of the Trustee in Boston,
Massachusetts, the principal sum of FOUR HUNDRED MILLION DOLLARS ($400,000,000)
on December 1, 2032, in such coin or currency of the United States of America
as at the time of payment shall be legal tender for the payment of public and
private debts, and to pay interest semiannually on June 1 and December 1 of
each year, commencing on June 1, 2003, on said principal sum at said office or
agency, in like coin or currency, at the rate per annum specified in the title
of this Note, from the June 1 or the December 1, as the case may be, next
preceding the date of this Note to which interest has been paid, unless the
date hereof is a date to which interest has been paid, in which case from the
date of this Note, or unless no interest has been paid on the Notes, in which
case from November 21, 2002, until payment of said principal sum has been made
or duly provided for; provided, that payment of interest may be made at the
option of the Issuer by check mailed to the address of the person entitled
thereto as such address shall appear on the Security Register. The interest so
payable on any June 1 or December 1 will, subject to certain exceptions
provided in the Indenture referred to on the reverse hereof, be paid to

 

 

the person in whose name this Note is registered at the close of business on May 15
or November 15, as the case may be, next preceding such June 1 or December 1.

     Reference is made to the further provisions of this Note set forth on the
reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

     This Note shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been signed by the Trustee
under the Indenture referred to on the reverse hereof.

 

 

     IN WITNESS WHEREOF, The Progressive Corporation has caused this instrument
to be signed by its duly authorized officers and has caused its corporate seal
to be affixed hereto or imprinted hereon.

	 	 	 
	 	 	
THE PROGRESSIVE CORPORATION
	 
	[CORPORATE SEAL]	 	
By:

Stephen D. Peterson

Treasurer
	 
	 
	 
	Attest:

Charles E. Jarrett

Secretary	 	 
	 
	Dated:  November 21, 2002	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 

	 	STATE STREET BANK AND TRUST

COMPANY, as Trustee
	 

	 	By: 

Authorized Signatory

 

 

(Back of Security)

THE PROGRESSIVE CORPORATION

6.25% SENIOR NOTE DUE 2032

     This Note is one of a duly authorized issue of debentures, notes, bonds or
other evidences of indebtedness of the Issuer (hereinafter called the
“Securities”) of the series hereinafter specified, all issued or to be issued
under and pursuant to an indenture dated as of September 15, 1993, as
heretofore supplemented and amended (herein called the “Indenture”), between
the Issuer and State Street Bank and Trust Company, as Trustee (herein called
the “Trustee”), to which Indenture and all indentures supplemental thereto
reference is hereby made for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the
Issuer and the Holders of the Securities. The Securities may be issued in one
or more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at
different rates, may be subject to different redemption provisions (if any),
may be subject to different sinking, purchase or analogous funds (if any) and
may otherwise vary as in the Indenture provided. This Note is one of a series
designated as the 6.25% Senior Notes Due 2032 of the Issuer, limited in initial
aggregate principal amount to $400,000,000, subject to the right of the Issuer
to reopen such series.

     In case an Event of Default, as defined in the Indenture, with respect to
the 6.25% Senior Notes Due 2032 shall have occurred and be continuing, the
principal hereof may be declared, and upon such declaration shall become, due
and payable, in the manner, with the effect and subject to the conditions
provided in the Indenture.

     The Indenture contains provisions permitting the Issuer and the Trustee,
with the consent of the Holders of not less than 66-2/3% in aggregate principal
amount of the Securities at the time Outstanding (as defined in the Indenture)
of all series to be affected (voting as one class), evidenced as in the
Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner the rights of the
Holders of the Securities of each such series; provided, however, that no such
supplemental indenture shall (i) extend the final maturity of any Security, or
reduce the principal amount thereof, or reduce the rate or extend the time of
payment of any interest thereon, or impair or affect the rights of any Holder
to institute suit for the payment thereof, without the consent of the Holder of
each Security so affected or (ii) reduce the aforesaid percentage of
Securities, the Holders of which are required to consent to any such
supplemental indenture, without the consent of the Holder of each

 

 

Security so affected. It is also provided in the Indenture that, with respect to certain
defaults or Events of Default regarding the Securities of any series, prior to
any declaration accelerating the maturity of such Securities, the Holders of a
majority in aggregate principal amount Outstanding of the Securities of such
series may on behalf of the Holders of all the Securities of such series waive
any such past default or Event of Default and its consequences. The preceding
sentence shall not, however, apply to a default in the payment of the principal
of or premium, if any, or interest on any of the Securities. Any such consent
or waiver by the Holder of this Note (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Holder and upon all future
Holders and owners of this Note and any Note which may be issued in exchange or
substitution herefor, irrespective of whether or not any notation thereof is
made upon this Note or such other Note.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note
in the manner, at the respective times, at the rate and in the coin or currency
herein prescribed.

     The Notes are issuable in registered form without coupons in denominations
of $1,000 and any integral multiple of $1,000 at the office or agency of the
Issuer at the office of the Trustee in Boston, Massachusetts, and in the manner
and subject to the limitations provided in the Indenture, but without the
payment of any service charge. Notes may be exchanged for a like aggregate
principal amount of Notes of other authorized denominations.

     The Notes of the series designated as the 6.25% Senior Notes due 2032 are
subject to redemption upon not more than 60 or less than 30 days’ notice by
mail, in whole at any time or in part from time to time at the option of the
Issuer on any date (a “Redemption Date”), at a redemption price equal to the
accrued and unpaid interest on the principal amount being redeemed to the
redemption date plus the greater of (i) 100% of the principal amount of the
Notes to be redeemed and (ii) the sum of the present values of the Remaining
Scheduled Payments (as defined below) of the Notes to be redeemed, discounted
to the redemption date, on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months), at rate equal to the Treasury Rate
(defined below), plus 20 basis points.

     “Remaining
Scheduled Payments” means, with respect to any redemption,
the remaining scheduled payments of the principal and interest that would be
due after the redemption date of a Note if such Note were not redeemed and were
held until maturity. However, if the redemption date is not a scheduled
interest payment date, the amount of

ii

 

the next succeeding scheduled interest payment on such Note will be reduced by the amount of interest accrued on such
Note to such redemption date.

     “Treasury Rate” means, with respect to any redemption, an annual rate
equal to the semiannual equivalent yield to maturity of the Comparable Treasury
Issue (as defined below), assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for the redemption date. The semiannual equivalent yield to
maturity will be computed as of the third business day immediately preceding
the redemption date.

     “Comparable Treasury Issue” means, with respect to any redemption, the
United States Treasury security selected by Credit Suisse First Boston or an
affiliate as having a maturity comparable to the remaining term of the Notes to
be redeemed that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of such Notes.

     “Comparable Treasury Price” means, with respect to any redemption, the
average of three Reference Treasury Dealer Quotations (as defined below)
obtained by the Trustee for the redemption date.

     “Reference Treasury Dealer” means, with respect to any redemption, Credit
Suisse First Boston (so long as it continues to be a primary U.S. Government
securities dealer) and any two other primary U.S. Government securities dealers
chosen by the Issuer. If Credit Suisse First Boston ceases to be a primary
U.S. Government securities dealer, the Issuer will appoint in its place another
nationally recognized investment banking firm that is a primary U.S. Government
securities dealer.

     “Reference Treasury Dealer Quotation” means, with respect to any
redemption, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by a
Reference Treasury Dealer at 3:30 p.m., New York City time, on the third
business day preceding the redemption date.

     In the event of redemption of this Note in part only, a new Note or Notes
of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.

     Upon due presentment for registration of transfer of this Note at the
office or agency of the Issuer at the office of the Trustee in Boston,
Massachusetts, a new Note or

iii

 

Notes of authorized denominations for an equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge
except for any tax or other governmental charge imposed in connection
therewith.

     The Issuer, the Trustee and any authorized agent of the Issuer or the
Trustee may deem and treat the registered Holder hereof as the absolute owner
of this Note (whether or not this Note shall be overdue and notwithstanding any
notation of ownership or other writing hereon), for the purpose of receiving
payment of, or on account of, the principal hereof and, subject to the
provisions on the face hereof, interest hereon, and for all other purposes, and
neither the Issuer nor the Trustee nor any authorized agent of the Issuer or
the Trustee shall be affected by notice to the contrary.

     No recourse under or upon any obligation, covenant or agreement of the
Issuer in the Indenture or any indenture supplemental thereto or in any Note,
or because of the creation of any indebtedness represented thereby, shall be
had against any incorporator, shareholder, officer or director, as such, of the
Issuer or of any successor corporation, either directly or through the Issuer
or any successor corporation, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released
by the acceptance hereof and as part of the consideration for the issue hereof.

     Terms used herein which are defined in the Indenture shall have the
respective meanings assigned thereto in the Indenture.

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     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE	 	

	 
	 	

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing

attorney to transfer said Note on the books of the Issuer, with full power of
substitution in the premises.

	 	 	 	 	 
	Dated	 	 	 	 
	 	

	 	

	 	 	 	 	NOTICE: The signature to this
assignment must correspond with the
name as written upon the face of the
within instrument in every
particular, without alteration or
enlargement or any change whatever.

v

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