EXHIBIT 4.1
EXECUTION COPY
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JETBLUE AIRWAYS CORPORATION,
as Issuer,
and
WILMINGTON TRUST COMPANY,
as Trustee
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INDENTURE
Dated as of
July 15, 2003
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3 1/2% CONVERTIBLE NOTES DUE 2033
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TABLE OF CONTENTS
Page
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ARTICLE I
Definitions
SECTION 1.01. DEFINITIONS....................................................................1
ARTICLE II
Issue, Description, Execution, Registration and Exchange of Notes
SECTION 2.01. DESIGNATION AMOUNT AND ISSUE OF NOTES..........................................8
SECTION 2.02. FORM OF NOTES..................................................................8
SECTION 2.03. DATE AND DENOMINATION OF NOTES; PAYMENTS OF INTEREST...........................9
SECTION 2.04. EXECUTION OF NOTES............................................................10
SECTION 2.05. EXCHANGE AND REGISTRATION OF TRANSFER OF NOTES; RESTRICTIONS ON
TRANSFER....................................................................11
SECTION 2.06. MUTILATED, DESTROYED, LOST OR STOLEN NOTES....................................16
SECTION 2.07. TEMPORARY NOTES...............................................................17
SECTION 2.08. CANCELLATION OF NOTES.........................................................18
SECTION 2.09. CUSIP NUMBERS.................................................................18
ARTICLE III
Redemption and Repurchase of Notes
SECTION 3.01. REDEMPTION OF NOTES AT THE OPTION OF THE COMPANY..............................18
SECTION 3.02. NOTICE OF OPTIONAL REDEMPTION; SELECTION OF NOTES.............................19
SECTION 3.03. PAYMENT OF NOTES CALLED FOR REDEMPTION BY THE COMPANY.........................20
SECTION 3.04. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION.................................21
SECTION 3.05. REDEMPTION AT OPTION OF HOLDERS UPON A DESIGNATED EVENT.......................21
SECTION 3.06. REPURCHASE OF NOTES BY THE COMPANY AT OPTION OF THE HOLDER....................24
SECTION 3.07. PROCEDURES FOR THE REPURCHASE OF NOTES........................................24
SECTION 3.08. EFFECT OF REPURCHASE NOTICE...................................................25
SECTION 3.09. DEPOSIT OF PURCHASE PRICE.....................................................26
SECTION 3.10. NOTES REPURCHASED IN PART.....................................................26
SECTION 3.11. REPAYMENT TO THE COMPANY......................................................27
ARTICLE IV
Particular Covenants of the Company
SECTION 4.01. PAYMENT OF PRINCIPAL AND INTEREST.............................................27
SECTION 4.02. MAINTENANCE OF OFFICE OR AGENCY...............................................27
SECTION 4.03. APPOINTMENTS TO FILL VACANCIES IN TRUSTEE'S OFFICE............................27
SECTION 4.04. PROVISIONS AS TO PAYING AGENT.................................................27
SECTION 4.05. RULE 144A INFORMATION REQUIREMENT.............................................28
SECTION 4.06. COMPLIANCE CERTIFICATE........................................................29
SECTION 4.07. LIQUIDATED DAMAGES NOTICE.....................................................29
ARTICLE V
Noteholders' Lists and Reports by the Company and the Trustee
SECTION 5.01. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF NOTEHOLDERS.................30
SECTION 5.02. PRESERVATION AND DISCLOSURE OF LISTS..........................................30
SECTION 5.03. REPORTS BY TRUSTEE............................................................30
SECTION 5.04. REPORTS BY COMPANY............................................................30
ARTICLE VI
Remedies of the Trustee and Noteholders on an Event of Default
SECTION 6.01. EVENTS OF DEFAULT; ACCELERATION...............................................31
SECTION 6.02. PAYMENTS OF NOTES ON DEFAULT; SUIT THEREFOR...................................33
SECTION 6.03. APPLICATION OF MONIES COLLECTED BY TRUSTEE....................................34
SECTION 6.04. PROCEEDINGS BY NOTEHOLDER.....................................................35
SECTION 6.05. PROCEEDINGS BY TRUSTEE........................................................35
SECTION 6.06. REMEDIES CUMULATIVE AND CONTINUING............................................36
SECTION 6.07. DIRECTION OF PROCEEDINGS AND WAIVER OF DEFAULTS BY MAJORITY OF
NOTEHOLDERS.................................................................36
SECTION 6.08. UNDERTAKING TO PAY COSTS......................................................36
ARTICLE VII
The Trustee
SECTION 7.01. CERTAIN DUTIES AND RESPONSIBILITIES...........................................37
SECTION 7.02. NOTICE OF DEFAULTS............................................................37
SECTION 7.03. CERTAIN RIGHTS OF THE TRUSTEE.................................................37
SECTION 7.04. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF NOTES.............................39
SECTION 7.05. MAY HOLD NOTES................................................................39
SECTION 7.06. MONIES TO BE HELD IN TRUST....................................................39
SECTION 7.07. COMPENSATION AND REIMBURSEMENT................................................39
SECTION 7.08. DISQUALIFICATION; CONFLICTING INTERESTS.......................................40
SECTION 7.09. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.......................................40
SECTION 7.10. RESIGNATION AND REMOVAL OF TRUSTEE; APPOINTMENT OF SUCCESSOR..................40
SECTION 7.11. ACCEPTANCE OF APPOINTMENT OF SUCCESSOR........................................41
SECTION 7.12. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS...................42
SECTION 7.13. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.............................42
ARTICLE VIII
The Noteholders
SECTION 8.01. ACTION BY NOTEHOLDERS.........................................................42
SECTION 8.02. PROOF OF EXECUTION BY NOTEHOLDERS.............................................42
SECTION 8.03. WHO ARE DEEMED ABSOLUTE OWNERS................................................43
SECTION 8.04. COMPANY-OWNED NOTES DISREGARDED...............................................43
SECTION 8.05. REVOCATION OF CONSENTS, FUTURE HOLDERS BOUND..................................43
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ARTICLE IX
Meetings of Noteholders
SECTION 9.01. PURPOSE OF MEETINGS...........................................................44
SECTION 9.02. CALL OF MEETINGS BY TRUSTEE...................................................44
SECTION 9.03. CALL OF MEETINGS BY COMPANY OR NOTEHOLDERS....................................44
SECTION 9.04. QUALIFICATIONS FOR VOTING.....................................................45
SECTION 9.05. REGULATIONS...................................................................45
SECTION 9.06. VOTING........................................................................45
SECTION 9.07. NO DELAY OF RIGHTS BY MEETING.................................................46
ARTICLE X
Supplemental
Indentures
SECTION 10.01. SUPPLEMENTAL
INDENTURES WITHOUT CONSENT OF NOTEHOLDERS.......................46
SECTION 10.02. SUPPLEMENTAL
INDENTURE WITH CONSENT OF NOTEHOLDERS...........................47
SECTION 10.03. EFFECT OF SUPPLEMENTAL
INDENTURE.............................................48
SECTION 10.04. NOTATION ON NOTES............................................................48
SECTION 10.05. EVIDENCE OF COMPLIANCE OF SUPPLEMENTAL
INDENTURE TO BE FURNISHED TO
TRUSTEE....................................................................48
ARTICLE XI
Merger, Consolidation, etc.
SECTION 11.01. MERGERS, CONSOLIDATIONS AND CERTAIN TRANSFERS, LEASES AND
ACQUISITIONS OF ASSETS.......................................................48
SECTION 11.02. SUCCESSOR TO BE SUBSTITUTED..................................................49
SECTION 11.03. OPINION OF COUNSEL TO BE GIVEN TRUSTEE.......................................49
ARTICLE XII
Satisfaction and Discharge of
Indenture
SECTION 12.01. DISCHARGE OF
INDENTURE.......................................................49
SECTION 12.02. DEPOSITED MONIES TO BE HELD IN TRUST BY TRUSTEE..............................50
SECTION 12.03. PAYING AGENT TO REPAY MONIES HELD............................................50
SECTION 12.04. RETURN OF UNCLAIMED MONIES...................................................50
SECTION 12.05. REINSTATEMENT................................................................50
ARTICLE XIII
Immunity of Incorporators, Stockholders, Officers and Directors
SECTION 13.01.
INDENTURE AND NOTES SOLELY CORPORATE OBLIGATIONS.............................51
ARTICLE XIV
Conversion of Notes
SECTION 14.01. RIGHT TO CONVERT.............................................................51
SECTION 14.02. CONVERSION PROCEDURES........................................................53
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SECTION 14.03. CASH PAYMENTS IN LIEU OF FRACTIONAL SHARES...................................55
SECTION 14.04. CONVERSION RATE..............................................................55
SECTION 14.05. ADJUSTMENT OF CONVERSION RATE................................................55
SECTION 14.06. EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE....................64
SECTION 14.07. TAXES ON SHARES ISSUED.......................................................65
SECTION 14.08. RESERVATION OF SHARES, SHARES TO BE FULLY PAID; COMPLIANCE WITH
GOVERNMENTAL REQUIREMENTS; LISTING OF COMMON STOCK.........................65
SECTION 14.09. RESPONSIBILITY OF TRUSTEE....................................................66
SECTION 14.10. NOTICE TO HOLDERS PRIOR TO CERTAIN ACTIONS...................................66
SECTION 14.11. RIGHTS ISSUED IN RESPECT OF COMMON STOCK ISSUED UPON CONVERSION..............67
ARTICLE XV
Miscellaneous Provisions
SECTION 15.01. PROVISIONS BINDING ON COMPANY'S SUCCESSORS...................................67
SECTION 15.02. OFFICIAL ACTS BY SUCCESSOR CORPORATION.......................................67
SECTION 15.03. ADDRESSES FOR NOTICES, ETC...................................................67
SECTION 15.04. GOVERNING LAW................................................................68
SECTION 15.05. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT, CERTIFICATES TO
TRUSTEE....................................................................68
SECTION 15.06. LEGAL HOLIDAYS...............................................................68
SECTION 15.07. TRUST
INDENTURE ACT..........................................................68
SECTION 15.08. NO SECURITY INTEREST CREATED.................................................69
SECTION 15.09. BENEFITS OF INDENTURE........................................................69
SECTION 15.10. TABLE OF CONTENTS, HEADINGS, ETC.............................................69
SECTION 15.11. AUTHENTICATING AGENT.........................................................69
SECTION 15.12. EXECUTION IN COUNTERPARTS....................................................70
SECTION 15.13. SEVERABILITY.................................................................70
Exhibit A Form of Note.........................................................................A-1
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INDENTURE
INDENTURE dated as of July 15, 2003 between
JetBlue Airways
Corporation, a Delaware corporation (hereinafter called the "COMPANY"), and
Wilmington Trust Company, a Delaware banking corporation, as trustee hereunder
(hereinafter called the "TRUSTEE").
WITNESSETH:
WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issue of its 3 1/2% Convertible Notes due 2033 (hereinafter
called the "NOTES"), in an aggregate principal amount not to exceed $175,000,000
and, to provide the terms and conditions upon which the Notes are to be
authenticated, issued and delivered, the Company has duly authorized the
execution and delivery of this Indenture;
WHEREAS, the Notes, the certificate of authentication to be borne by
the Notes, a form of assignment, a form of option to elect redemption upon a
designated event, a form of purchase notice, and a form of conversion notice to
be borne by the Notes are to be substantially in the forms hereinafter provided
for;
WHEREAS, all acts and things necessary to duly authorize the issuance
of the Common Stock issuable upon the conversion of the Notes, and to duly
reserve for issuance the number of shares of Common Stock issuable upon such
conversion, have been done and performed; and
WHEREAS, all acts and things necessary to make the Notes, when
executed by the Company and authenticated and delivered by the Trustee or a duly
authorized authenticating agent, as in this Indenture provided, the valid,
binding and legal obligations of the Company, and to constitute this Indenture a
valid agreement according to its terms, have been done and performed, and the
execution of this Indenture and the issue hereunder of the Notes have in all
respects been duly authorized.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
That in order to declare the terms and conditions upon which the Notes
are, and are to be, authenticated, issued and delivered, and in consideration of
the premises and of the purchase and acceptance of the Notes by the holders
thereof, the Company covenants and agrees with the Trustee for the equal and
proportionate benefit of the respective holders from time to time of the Notes
(except as otherwise provided below), as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. DEFINITIONS. The terms defined in this Section 1.01.
(except as herein otherwise expressly provided or unless the context otherwise
requires) for all purposes of this Indenture and of any indenture supplemental
hereto shall have the respective meanings specified in this Section 1.01. All
other terms used in this Indenture that are defined in the Trust Indenture Act
or which are by reference therein defined in the Securities Act (except as
herein otherwise expressly provided or unless the context otherwise requires)
shall have the meanings
assigned to such terms in the Trust Indenture Act and in the Securities Act as
in force at the date of the execution of this Indenture. The words "herein",
"hereof", "hereunder" and words of similar import refer to this Indenture as a
whole and not to any particular Article, Section or other Subdivision. The terms
defined in this Article include the plural as well as the singular.
"ACCEPTED PURCHASED SHARES" has the meaning specified in Section
14.05(e)(B).
"ADJUSTMENT EVENT" has the meaning specified in Section 14.05(j).
"AFFILIATE" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"CONTROL", when used with respect to any specified Person means the power to
direct or cause the direction of the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise, and the terms "CONTROLLING" and "CONTROLLED" have
meanings correlative to the foregoing.
"AGENT MEMBERS" has the meaning specified in Section 2.05(b).
"AVERAGE MARKET PRICE" has the meaning specified in Section 14.05(f).
"BOARD OF DIRECTORS" means the Board of Directors of the Company or a
committee of such Board of Directors duly authorized to act for it hereunder.
"BUSINESS DAY" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which the banking institutions in The City of
New
York or the city in which the Corporate Trust Office is located are authorized
or obligated by law or executive order to close or be closed.
"CLOSING SALE PRICE" means, as of any date, the closing sale price per
share of Common Stock (or, if no closing sale price is reported, the average of
the closing bid and ask prices or, if more than one in either case, the average
of the average closing bid and the average closing ask prices) on such date as
reported in composite transactions for the
New York Stock Exchange or such other
principal United States securities exchange on which shares of Common Stock may
be traded or, if the shares of Common Stock are not listed on a United States
national or regional securities exchange, as reported by the Nasdaq system or by
the National Quotation Bureau Incorporated. In the absence of such quotations,
the Company shall be entitled to determine the Closing Sale Price on the basis
of such quotations as it considers appropriate. Closing Sale Price shall be
determined without reference to extended or after hours trading.
"COMMISSION" means the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or, if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.
"COMMON STOCK" means any stock of any class of the Company which has
no preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the Company
and which is not subject to
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redemption by the Company. Subject to the provisions of Section 14.06, however,
shares issuable on conversion of Notes shall include only shares of the class
designated as common stock of the Company at the date of this Indenture,
including any Rights attached thereto, (namely, the Common Stock, par value
$0.01) or shares of any class or classes resulting from any reclassification or
reclassifications thereof and which have no preference in respect of dividends
or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and which are not subject to redemption
by the Company; PROVIDED that if at any time there shall be more than one such
resulting class, the shares of each such class then so issuable on conversion
shall be substantially in the proportion which the total number of shares of
such class resulting from all such reclassifications bears to the total number
of shares of all such classes resulting from all such reclassifications.
"COMPANY" means the corporation named as the "Company" in the first
paragraph of this Indenture, and, subject to the provisions of Article 11 and
Section 14.06, shall include its successors and assigns.
"COMPANY REPURCHASE NOTICE" has the meaning specified in Section
3.07(c).
"COMPANY REPURCHASE NOTICE DATE" has the meaning specified in Section
3.07(b).
"CONVERSION DATE" has the meaning specified in Section 14.02.
"CONVERSION NOTICE" has the meaning specified in Section 14.02.
"CONVERSION PRICE" as of any date will equal $1,000 divided by the
Conversion Rate as of such date.
"CONVERSION RATE" has the meaning specified in Section 14.04.
"CORPORATE TRUST OFFICE" or other similar term, means the designated
office of the Trustee at which at any particular time its corporate trust
business as it relates to this Indenture shall be administered, which office is
at the date hereof located Wilmington Trust Company, ββββββ Square North, ββββ
βββββ ββββββ ββββββ, ββββββββββ, ββββββββ βββββ-ββββ, Attention : Corporate
Trust Administration; provided that, with respect to the payment of interest of
the Notes, the designated office of the Trustee shall be Wilmington Trust
Company, βββ βββββββ ββββββ, ββββ βββββ, βββ ββββ, βββ ββββ βββββ.
"CUSTODIAN" means Wilmington Trust Company, a Delaware banking
corporation, as custodian with respect to the Notes in global form, or any
successor entity thereto.
"DEFAULT" means any event that is, or after notice or passage of time,
or both, would be, an Event of Default.
"DEFAULTED INTEREST" has the meaning specified in Section 2.03.
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"DEPOSITARY" means, the clearing agency registered under the Exchange
Act that is designated to act as the Depositary for the Global Notes. The
Depository Trust Company shall be the initial Depositary, until a successor
shall have been appointed and become such pursuant to the applicable provisions
of this Indenture, and thereafter, "Depositary" shall mean or include such
successor.
A "DESIGNATED EVENT" will be deemed to have occurred upon a
Fundamental Change or a Termination of Trading.
"DESIGNATED EVENT EXPIRATION TIME" has the meaning specified in
Section 3.05(b).
"DESIGNATED EVENT NOTICE" has the meaning specified in Section
3.05(b).
"DESIGNATED EVENT REDEMPTION DATE" has the meaning specified in
Section 3.05(a).
"DETERMINATION DATE" has the meaning specified in Section 14.05(j).
"DISTRIBUTION" has the meaning specified in Section 14.05(d).
"EVENT OF DEFAULT" means any event specified in Section 6.01(a) as an
Event of Default.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder, as in effect from time to
time.
"EX-DIVIDEND TIME" has the meaning specified in Section 14.01(b).
"EXPIRATION TIME" has the meaning specified in Section 14.05(e)(A).
"FAIR MARKET VALUE" has the meaning specified in Section 14.05(f).
"FUNDAMENTAL CHANGE" means the occurrence of any transaction or event
(whether by means of an exchange offer, liquidation, tender offer,
consolidation, merger, binding share exchange, combination, reclassification,
recapitalization or otherwise) in connection with which all or substantially all
of the Common Stock shall be exchanged for, converted into, acquired for or
constitute solely the right to receive consideration which is not all or
substantially all common stock that is (or, upon consummation of or immediately
following such transaction or event, which will be) listed on a United States
national securities exchange or approved (or, upon consummation of or
immediately following such transaction or event, which will be approved) for
quotation on the Nasdaq National Market or any similar United States system of
automated dissemination of quotations of securities prices.
"GAAP" means United States generally accepted accounting principles.
"GLOBAL NOTE" has the meaning specified in Section 2.02.
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"INDENTURE" means this instrument as originally executed or, if
amended or supplemented as herein provided, as so amended or supplemented.
"INITIAL PURCHASERS" means ββββββ βββββββ & Co. Incorporated, βββββββ
βββββ & Associates, Inc. and ββββββββ & Partners, L.P.
"INTEREST" means, when used with reference to the Notes, any interest
payable under the terms of the Notes and Liquidated Damages, if any, payable
under the terms of the Registration Rights Agreement.
"LIQUIDATED DAMAGES" has the meaning specified for "Liquidated Damages
Amount" in Section 2(e) of the Registration Rights Agreement.
"LIQUIDATED DAMAGES NOTICE" has the meaning specified in Section 4.11.
"NOTE" or "NOTES" means any Note or Notes, as the case may be,
authenticated and delivered under this Indenture, including any Global Note.
"NOTE REGISTER" has the meaning specified in Section 2.05(a).
"NOTE REGISTRAR" has the meaning specified in Section 2.05(a).
"NOTEHOLDER" or "HOLDER" as applied to any Note, or other similar
terms (but excluding the term "beneficial holder"), means any Person in whose
name at the time a particular Note is registered on the Note registrar's books.
"NONELECTING SHARE" has the meaning specified in Section 14.06.
"OFFICERS' CERTIFICATE" of the Company means a certificate signed by
the Chairman of the Board of Directors, a Vice Chairman of the Board of
Directors, the Chief Executive Officer, the President or a Vice President or the
Chief Financial Officer, and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary of the Company, as the case may be, and
delivered to the Trustee. One of the officers signing an Officers' Certificate
given pursuant to Section 4.10 shall be the principal executive, financial or
accounting officer of the Company or the chief operating officer of the Company.
Unless the context otherwise requires, each reference herein to an "Officers'
Certificate" shall mean an Officers' Certificate of the Company. References
herein, or in any Note, to any officer of a Person that is a partnership shall
mean such officer of the partnership or, if none, of a general partner of the
partnership authorized thereby to act on its behalf.
"OFFER EXPIRATION TIME" has the meaning specified in Section
14.05(e)(B).
"OPINION OF COUNSEL" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company, or other counsel
reasonably acceptable to the Trustee.
"OPTIONAL REDEMPTION" has the meaning specified in Section 3.01.
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"OUTSTANDING", when used with reference to Notes and subject to the
provisions of Section 8.04, means, as of any particular time, all Notes
authenticated and delivered by the Trustee under this Indenture, except:
(a) Notes theretofore canceled by the Trustee or delivered to the
Trustee for cancellation;
(b) Notes, or portions thereof, (i) for the redemption of which
monies in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the Company) or (ii) which
shall have been otherwise discharged in accordance with Article 12;
(c) Notes in lieu of which, or in substitution for which, other
Notes shall have been authenticated and delivered pursuant to the terms of
Section 2.06; and
(d) Notes converted into Common Stock pursuant to Article 14 and
Notes deemed not outstanding pursuant to Article 3.
"PERSON" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other enterprise
or any government or political subdivision or any agency, department or
instrumentality thereof.
"PORTAL MARKET" means the Private Offerings, Resales and Trading
through Automated Linkages system operated by the National Association of
Securities Dealers, Inc. or any successor thereto.
"PREDECESSOR NOTE" of any particular Note means every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note, and, for the purposes of this definition, any Note
authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the lost, destroyed or
stolen Note that it replaces.
"PURCHASED SHARES" has the meaning specified in Section 14.05(e)(A).
"RECORD DATE" has the meaning specified in Section 2.03 with respect
to any interest payment date, and for any other purpose means the record date
established by the Company for a specified purpose.
"RECORD DATE" has the meaning specified in Section 14.05(f).
"REGISTRATION RIGHTS AGREEMENT" means the Registration Rights
Agreement, dated as of July 15, 2003, between the Company and the Initial
Purchasers, as amended from time to time in accordance with its terms.
"REPURCHASE DATE" has the meaning specified in Section 3.06.
"REPURCHASE NOTICE" has the meaning specified in Section 3.06.
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"RESPONSIBLE OFFICER", when used with respect to the Trustee, means an
officer of the Trustee in the Corporate Trust Office assigned and duly
authorized by the Trustee to administer this Indenture.
"RESTRICTED SECURITIES" has the meaning specified in Section 2.05(c).
"RIGHTS" has the meaning specified in Section 14.11.
"RIGHTS AGREEMENT" has the meaning specified in Section 14.11.
"RULE 144A" means Rule 144A as promulgated under the Securities Act.
"SECURITIES ACT" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as in effect from time to time.
"SPINOFF VALUATION PERIOD" has the meaning specified in Section
14.05(d).
"SUBSIDIARY" of any Person means (i) any corporation more than 50% of
whose stock of any class or classes having by the terms of such stock ordinary
voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person and/or by one
or more Subsidiaries of such Person or by such Person and one or more
Subsidiaries of such Person and (ii) any partnership, association, limited
liability company, joint venture or other entity in which such Person and/or one
or more Subsidiaries of such Person or such Person and one or more Subsidiaries
of such Person has more than a 50% equity interest at the time.
A "TERMINATION OF TRADING" will be deemed to have occurred if the
Common Stock (or other common stock into which the Notes are then convertible)
is neither listed for trading on a United States national securities exchange
nor approved for trading on the Nasdaq National Market.
"TRADING DAY" means (x) if the applicable security is quoted on the
Nasdaq National Market, a day on which trades may be made thereon or (y) if the
applicable security is listed or admitted for trading on the
New York Stock
Exchange or such other national securities exchange, a day on which the
New York
Stock Exchange or another national securities exchange is open for business or
(z) if the applicable security is not so listed, admitted for trading or quoted,
any day other than a Saturday or Sunday or a day on which banking institutions
in the State of
New York are authorized or obligated by law or executive order
to close.
"TRADING PRICE" means, on any date, the average of the secondary
market bid quotations for the Notes obtained by the Trustee for $10,000,000
principal amount of Notes at approximately 3:30 p.m.,
New York City time, on
such date from three independent nationally recognized securities dealers
selected by the Company; PROVIDED that if at least three such bids cannot
reasonably be obtained by the Trustee, but two bids are obtained, then the
average of the two bids shall be used, and if only one such bid can reasonably
be obtained by the Trustee, one bid shall be used; and PROVIDED FURTHER that if
the Trustee cannot reasonably obtain at least one bid for $10,000,000 principal
amount of Notes from a nationally recognized securities dealer or,
7
in the Company's reasonable judgment, the bid quotations are not indicative of
the secondary market value of the Notes, then the Trading Price per $1,000
principal amount of Notes shall be deemed to be less than 95% of the product of
the Closing Sale Price and the Conversion Rate.
"TRIGGER EVENT" has the meaning specified in Section 14.05(d).
"TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, as
amended, as it was in force at the date of this Indenture; PROVIDED that if the
Trust Indenture Act of 1939 is amended after the date hereof, the term "Trust
Indenture Act" shall mean, to the extent required by such amendment, the Trust
Indenture Act of 1939 as so amended.
"TRUSTEE" means Wilmington Trust Company, a Delaware banking
corporation, and its successors and any corporation resulting from or surviving
any consolidation or merger to which it or its successors may be a party and any
successor trustee at the time serving as successor trustee hereunder.
ARTICLE II
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES
SECTION 2.01. DESIGNATION AMOUNT AND ISSUE OF NOTES. The Notes shall
be designated as "3 1/2% Convertible Notes Due 2033". Notes not to exceed the
aggregate principal amount of $175,000,000 (except pursuant to Sections 2.05,
2.06, 3.03, 3.05 and 14.02 hereof) upon the execution of this Indenture, or from
time to time thereafter, may be executed by the Company and delivered to the
Trustee for authentication, and the Trustee shall thereupon authenticate and
deliver said Notes to or upon the written order of the Company, signed by (a)
its Chairman of the Board of Directors, Vice Chairman of the Board of Directors,
Chief Executive Officer, President, Chief Financial Officer or any Vice
President and (b) its Treasurer or any Assistant Treasurer, or its Secretary or
any Assistant Secretary, without any further action by the Company hereunder.
SECTION 2.02. FORM OF NOTES. The Notes and the Trustee's certificate
of authentication to be borne by such Notes shall be substantially in the form
set forth in Exhibit A. The terms and provisions contained in the form of Note
attached as Exhibit A hereto shall constitute, and are hereby expressly made, a
part of this Indenture and, to the extent applicable, the Company and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.
Any of the Notes may have such letters, numbers or other marks of
identification and such notations, legends, endorsements or changes as the
officers executing the same may approve (execution thereof to be conclusive
evidence of such approval) and as are not inconsistent with the provisions of
this Indenture, or as may be required by the Custodian, the Depositary or by the
National Association of Securities Dealers, Inc. in order for the Notes to be
tradeable on the Portal Market or as may be required for the Notes to be
tradeable on any other market developed for trading of securities pursuant to
Rule 144A or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any
securities exchange or automated quotation system on which the Notes
8
may be listed, or to conform to usage, or to indicate any special limitations or
restrictions to which any particular Notes are subject.
So long as the Notes are eligible for book-entry settlement with the
Depositary, or unless otherwise required by law, or otherwise contemplated by
Section 2.05(b), all of the Notes will be represented by one or more Notes in
global form registered in the name of the Depositary or the nominee of the
Depositary (a "GLOBAL NOTE"). The transfer and exchange of beneficial interests
in any such Global Note shall be effected through the Depositary in accordance
with this Indenture and the applicable procedures of the Depositary. Except as
provided in Section 2.05(b), beneficial owners of a Global Note shall not be
entitled to have certificates registered in their names, will not receive or be
entitled to receive physical delivery of certificates in definitive form and
will not be considered holders of such Global Note.
Any Global Note shall represent such of the outstanding Notes as shall
be specified therein and shall provide that it shall represent the aggregate
amount of outstanding Notes from time to time endorsed thereon and that the
aggregate amount of outstanding Notes represented thereby may from time to time
be increased or reduced to reflect redemptions, repurchases, conversions,
transfers or exchanges permitted hereby. Any endorsement of a Global Note to
reflect the amount of any increase or decrease in the amount of outstanding
Notes represented thereby shall be made by the Trustee or the Custodian, at the
direction of the Trustee, in such manner and upon instructions given by the
holder of such Notes in accordance with this Indenture. Payment of principal of
and interest on any Global Note shall be made to the holder of such Global Note.
SECTION 2.03. DATE AND DENOMINATION OF NOTES; PAYMENTS OF INTEREST.
Subject to Section 2.02, the Notes shall be issuable in registered form without
coupons in denominations of $1,000 principal amount and multiples thereof. Each
Note shall be dated the date of its authentication and shall bear interest from
the date specified on the face of the form of Note attached as Exhibit A hereto.
Interest on the Notes shall be computed on the basis of a 360-day year comprised
of twelve 30-day months.
The Person in whose name any Note (or its Predecessor Note) is
registered on the Note register at the close of business on any record date with
respect to any interest payment date shall be entitled to receive the interest
payable on such interest payment date, except that the interest payable upon
redemption or repurchase will be payable to the Person to whom principal is
payable pursuant to such redemption or repurchase (unless the redemption date or
the Repurchase Date, as the case may be, is an interest payment date, in which
case the semi-annual payment of interest becoming due on such date shall be
payable to the holders of such Notes registered as such on the applicable record
date). Interest shall be payable at the office of the Company maintained by the
Company for such purposes in the Borough of Manhattan, The City of
New York,
which shall initially be the Corporate Trust Office of the Trustee and may, as
the Company shall specify to the paying agent in writing by each record date, be
paid either (i) by check mailed to the address of the Person entitled thereto as
it appears in the Note register (PROVIDED that any holder of Notes with an
aggregate principal amount in excess of $2,000,000 shall, at the written
election of such holder (such election to be made prior to the relevant record
date and to contain appropriate wire transfer information), be paid by wire
transfer in immediately available funds) or (ii) by transfer to an account
maintained by such Person located
9
in the United States; PROVIDED that payments to the Depositary will be made by
wire transfer of immediately available funds to the account of the Depositary or
its nominee. The term "RECORD DATE" with respect to any interest payment date
shall mean the January 1 or July 1 preceding the applicable January 15 or July
15 interest payment date, respectively.
Any interest on any Note which is payable, but is not punctually paid
or duly provided for, on any January 1 or July 1 (herein called "DEFAULTED
INTEREST") shall forthwith cease to be payable to the Noteholder on the relevant
record date by virtue of his having been such Noteholder, and such Defaulted
Interest shall be paid by the Company, at its election in each case, as provided
in clause (1) or (2) below:
The Company may elect to make payment of any Defaulted Interest to the Persons
in whose names the Notes (or their respective Predecessor Notes) are registered
at the close of business on a special record date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted Interest proposed
to be paid on each Note and the date of the proposed payment (which shall be not
less than twenty-five (25) days after the receipt by the Trustee of such notice,
unless the Trustee shall consent to an earlier date), and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate
amount to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the
date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. Thereupon the Trustee shall fix a special record date for the payment
of such Defaulted Interest which shall be not more than fifteen (15) days and
not less than ten (10) days prior to the date of the proposed payment, and not
less than ten (10) days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such special
record date and, in the name and at the expense of the Company, shall cause
notice of the proposed payment of such Defaulted Interest and the special record
date therefor to be mailed, first-class postage prepaid, to each holder at his
address as it appears in the Note register, not less than ten (10) days prior to
such special record date. Notice of the proposed payment of such Defaulted
Interest and the special record date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Notes (or
their respective Predecessor Notes) are registered at the close of business on
such special record date and shall no longer be payable pursuant to the
following clause (2) of this Section 2.03.
The Company may make payment of any Defaulted Interest in any other lawful
manner not inconsistent with the requirements of any securities exchange or
automated quotation system on which the Notes may be listed or designated for
issuance, and upon such notice as may be required by such exchange or automated
quotation system, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.
SECTION 2.04. EXECUTION OF NOTES. The Notes shall be signed in the
name and on behalf of the Company by the manual or facsimile signature of its
Chairman of the Board of Directors, Chief Executive Officer, President or any
Vice President and attested by its Secretary or any of its Assistant
Secretaries. The signature of any of these officers or the Company's seal on the
Notes may be manual or facsimile. Only such Notes as shall bear thereon a
certificate of
10
authentication substantially in the form set forth on the form of Note attached
as Exhibit A hereto, manually executed by the Trustee (or an authenticating
agent appointed by the Trustee as provided by Section 15.11), shall be entitled
to the benefits of this Indenture or be valid or obligatory for any purpose.
Such certificate by the Trustee (or such an authenticating agent) upon any Note
executed by the Company shall be conclusive evidence that the Note so
authenticated has been duly authenticated and delivered hereunder and that the
holder is entitled to the benefits of this Indenture.
In case any officer of the Company who shall have signed any of the
Notes shall cease to be such officer before the Notes so signed shall have been
authenticated and delivered by the Trustee, or disposed of by the Company, such
Notes nevertheless may be authenticated and delivered or disposed of as though
the person who signed such Notes had not ceased to be such officer of the
Company, and any Note may be signed on behalf of the Company by such persons as,
at the actual date of the execution of such Note, shall be the proper officers
of the Company, although at the date of the execution of this Indenture any such
person was not such an officer.
SECTION 2.05. EXCHANGE AND REGISTRATION OF TRANSFER OF NOTES;
RESTRICTIONS ON TRANSFER. (a) The Company shall cause to be kept at the
Corporate Trust Office a register (the register maintained in such office and in
any other office or agency of the Company designated pursuant to Section 4.02
being herein sometimes collectively referred to as the "NOTE REGISTER") in
which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Notes and of transfers of Notes. The Note
register shall be in written form or in any form capable of being converted into
written form within a reasonably prompt period of time. The Trustee is hereby
appointed "NOTE REGISTRAR" for the purpose of registering Notes and transfers of
Notes as herein provided. The Company may appoint one or more co-registrars in
accordance with Section 4.02.
Upon surrender for registration of transfer of any Note to the Note
registrar or any co-registrar, and satisfaction of the requirements for such
transfer set forth in this Section 2.05, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Notes of any authorized denominations and of a
like aggregate principal amount and bearing such restrictive legends as may be
required by this Indenture.
Notes may be exchanged for other Notes of any authorized denominations
and of a like aggregate principal amount, upon surrender of the Notes to be
exchanged at any such office or agency maintained by the Company pursuant to
Section 4.02. Whenever any Notes are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Notes which
the Noteholder making the exchange is entitled to receive bearing registration
numbers not contemporaneously outstanding.
All Notes issued upon any registration of transfer or exchange of
Notes shall be the valid obligations of the Company, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.
11
All Notes presented or surrendered for registration of transfer or for
exchange, redemption, repurchase or conversion shall (if so required by the
Company or the Note registrar) be duly endorsed, or be accompanied by a written
instrument or instruments of transfer in form satisfactory to the Company, and
the Notes shall be duly executed by the Noteholder thereof or his attorney duly
authorized in writing.
No service charge shall be made to any holder for any registration of
transfer or exchange of Notes, but either the Company, the Trustee or both may
require payment by the holder of a sum sufficient to cover any tax, assessment
or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Notes.
Neither the Company nor the Trustee nor any Note registrar shall be
required to exchange or register a transfer of (a) any Notes for a period of
fifteen (15) days next preceding any selection of Notes to be redeemed, (b) any
Notes or portions thereof called for redemption pursuant to Section 3.02, (c)
any Notes or portions thereof surrendered for conversion pursuant to Article 14,
(d) any Notes or portions thereof tendered for redemption (and not withdrawn)
pursuant to Section 3.05 or (e) any Notes or portions thereof tendered for
repurchase (and not withdrawn) pursuant to Section 3.06.
(b) The following provisions shall apply only to Global Notes:
(i) Each Global Note authenticated under this Indenture
shall be registered in the name of the Depositary or a nominee thereof
and delivered to such Depositary or a nominee thereof or Custodian
therefor, and each such Global Note shall constitute a single Note for
all purposes of this Indenture.
(ii) Notwithstanding any other provision in this Indenture,
no Global Note may be exchanged in whole or in part for Notes
registered, and no transfer of a Global Note in whole or in part may
be registered, in the name of any Person other than the Depositary or
a nominee thereof unless (A) the Depositary (i) has notified the
Company that it is unwilling or unable to continue as Depositary for
such Global Note or (ii) has ceased to be a clearing agency registered
under the Exchange Act and a successor Depositary is not appointed by
the Company within 90 days, (B) an Event of Default has occurred and
is continuing and the maturity of the Notes shall have been
accelerated in accordance with the terms of the Notes and any holder
shall have requested in writing the issuance of definitive
certificated securities, or (C) the Company, in its sole discretion,
notifies the Trustee in writing that it no longer wishes to have all
the Notes represented by Global Notes. Any Global Note exchanged
pursuant to clause (A) or (B) above shall be so exchanged in whole and
not in part and any Global Note exchanged pursuant to clause (C) above
may be exchanged in whole or from time to time in part as directed by
the Company. Any Note issued in exchange for a Global Note or any
portion thereof shall be a Global Note; PROVIDED that any such Note so
issued that is registered in the name of a Person other than the
Depositary or a nominee thereof shall not be a Global Note.
12
(iii) Notes issued in exchange for a Global Note or any
portion thereof pursuant to clause (ii) above and which is not a
Global Note shall be issued in definitive, fully registered form,
without interest coupons, shall have an aggregate principal amount
equal to that of such Global Note or portion thereof to be so
exchanged, shall be registered in such names and be in such authorized
denominations as the Depositary shall designate and shall bear any
legends required hereunder. Any Global Note to be exchanged in whole
shall be surrendered by the Depositary to the Trustee, as Note
registrar. With regard to any Global Note to be exchanged in part,
either such Global Note shall be so surrendered for exchange or, if
the Trustee is acting as Custodian for the Depositary or its nominee
with respect to such Global Note, the principal amount thereof shall
be reduced, by an amount equal to the portion thereof to be so
exchanged, by means of an appropriate adjustment made on the records
of the Trustee. Upon any such surrender or adjustment, the Trustee
shall authenticate and make available for delivery the Note issuable
on such exchange to or upon the written order of the Depositary or an
authorized representative thereof.
(iv) In the event of the occurrence of any of the events
specified in clause (ii) above, the Company will promptly make
available to the Trustee a reasonable supply of certificated Notes in
definitive, fully registered form, without interest coupons.
(v) Neither any members of, or participants in, the
Depositary ("AGENT MEMBERS") nor any other Persons on whose behalf
Agent Members may act shall have any rights under this Indenture with
respect to any Global Note registered in the name of the Depositary or
any nominee thereof, and the Depositary or such nominee, as the case
may be, may be treated by the Company, the Trustee and any agent of
the Company or the Trustee as the absolute owner and holder of such
Global Note for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or
any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the
Depositary or such nominee, as the case may be, or impair, as between
the Depositary, its Agent Members and any other Person on whose behalf
an Agent Member may act, the operation of customary practices of such
Persons governing the exercise of the rights of a holder of any Note.
(vi) At such time as all interests in a Global Note have
been redeemed, repurchased, converted, canceled or exchanged for Notes
in certificated form, such Global Note shall, upon receipt thereof, be
canceled by the Trustee in accordance with standing procedures and
instructions existing between the Depositary and the Custodian. At any
time prior to such cancellation, if any interest in a Global Note is
redeemed, repurchased, converted, canceled or exchanged for Notes in
certificated form, the principal amount of such Global Note shall, in
accordance with the standing procedures and instructions existing
between the Depositary and the Custodian, be appropriately reduced,
and an endorsement shall be made on such Global Note, by the Trustee
or the Custodian, at the direction of the Trustee, to reflect such
reduction.
13
(c) Every Note that bears or is required under this Section
2.05(c) to bear the legend set forth in this Section 2.05(c) (together with any
Common Stock issued upon conversion of the Notes and required to bear the legend
set forth in Section 2.05(d), collectively, the "RESTRICTED SECURITIES") shall
be subject to the restrictions on transfer set forth in this Section 2.05(c)
(including those set forth in the legend below) unless such restrictions on
transfer shall be waived by written consent of the Company, and the holder of
each such Restricted Security, by such Noteholder's acceptance thereof, agrees
to be bound by all such restrictions on transfer. As used in Sections 2.05(c)
and 2.05(d), the term "TRANSFER" encompasses any sale, pledge, loan, transfer,
assignment, conveyance or other disposition whatsoever of any Restricted
Security or any interest therein.
Until the expiration of the holding period applicable to sales thereof
under Rule 144(k) under the Securities Act (or any successor provision), any
certificate evidencing such Note (and all securities issued in exchange therefor
or substitution thereof, other than Common Stock, if any, issued upon conversion
thereof, which shall bear the legend set forth in Section 2.05(d), if
applicable) shall bear a legend in substantially the following form, unless such
Note has been sold pursuant to a registration statement that has been declared
effective under the Securities Act (and which continues to be effective at the
time of such transfer), or unless otherwise agreed by the Company in writing,
with written notice thereof to the Trustee:
THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
ANY STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION
HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A "QUALIFIED
INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE HOLDING
PERIOD APPLICABLE TO SALES OF THIS NOTE UNDER RULE 144(k) UNDER THE
SECURITIES ACT (OR ANY SUCCESSOR PROVISION), RESELL OR OTHERWISE
TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS NOTE EXCEPT (A) TO
JETBLUE AIRWAYS CORPORATION OR ANY SUBSIDIARY
THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE) OR (D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER
(OTHER THAN A TRANSFER PURSUANT TO CLAUSE (2)(D) ABOVE), IT WILL
FURNISH TO WILMINGTON TRUST COMPANY, AS TRUSTEE (OR A SUCCESSOR
TRUSTEE, AS APPLICABLE) AND UPON THE COMPANY'S REQUEST, TO THE
COMPANY, SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS
THE TRUSTEE AND THE COMPANY MAY REASONABLY REQUIRE TO CONFIRM THAT
SUCH TRANSFER IS
14
BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND
(4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS
LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS NOTE
PURSUANT TO CLAUSE (2)(D) ABOVE OR UPON ANY TRANSFER OF THIS NOTE
UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION). THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE
TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE
FOREGOING RESTRICTION.
Any Note (or security issued in exchange or substitution therefor) as
to which such restrictions on transfer shall have expired in accordance with
their terms or as to conditions for removal of the foregoing legend set forth
therein have been satisfied may, upon surrender of such Note for exchange to the
Note registrar in accordance with the provisions of this Section 2.05, be
exchanged for a new Note or Notes, of like tenor and aggregate principal amount,
which shall not bear the restrictive legend required by this Section 2.05(c). If
the Restricted Security surrendered for exchange is represented by a Global Note
bearing the legend set forth in this Section 2.05(c), the principal amount of
the legended Global Note shall be reduced by the appropriate principal amount
and the principal amount of a Global Note without the legend set forth in this
Section 2.05(c) shall be increased by an equal principal amount. If a Global
Note without the legend set forth in this Section 2.05(c) is not then
outstanding, the Company shall execute and the Trustee shall authenticate and
deliver an unlegended Global Note to the Depositary.
(d) Until the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any successor provision),
any stock certificate representing Common Stock issued upon conversion of any
Note shall bear a legend in substantially the following form, unless such Common
Stock has been sold pursuant to a registration statement that has been declared
effective under the Securities Act (and which continues to be effective at the
time of such transfer) or such Common Stock has been issued upon conversion of
Notes that have been transferred pursuant to a registration statement that has
been declared effective under the Securities Act, or unless otherwise agreed by
the Company in writing with written notice thereof to the transfer agent:
THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR ANY STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE
HOLDER HEREOF AGREES THAT, UNTIL THE EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THE COMMON STOCK EVIDENCED HEREBY, UNDER RULE
144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), (1) IT
WILL NOT RESELL OR OTHERWISE TRANSFER THE COMMON STOCK EVIDENCED
HEREBY EXCEPT (A)
15
TO
JETBLUE AIRWAYS CORPORATION OR ANY SUBSIDIARY THEREOF, (B) TO A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN COMPLIANCE WITH RULE 144A, (C) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
ACT (IF AVAILABLE) OR (D) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (2) PRIOR TO
SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (1)(D) ABOVE),
IT WILL FURNISH TO EQUISERVE TRUST COMPANY, N.A., AS TRANSFER AGENT
(OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), SUCH CERTIFICATIONS,
LEGAL OPINIONS OR OTHER INFORMATION AS SUCH TRANSFER AGENT MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (3) IT WILL
DELIVER TO EACH PERSON TO WHOM THE COMMON STOCK EVIDENCED HEREBY IS
TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (1)(D) ABOVE) A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE
REMOVED UPON THE EARLIER OF THE TRANSFER OF THE COMMON STOCK EVIDENCED
HEREBY PURSUANT TO CLAUSE (1)(D) ABOVE OR UPON ANY TRANSFER OF THE
COMMON STOCK EVIDENCED HEREBY AFTER THE EXPIRATION OF THE HOLDING
PERIOD APPLICABLE TO SALES OF THE SECURITY EVIDENCED HEREBY UNDER RULE
144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).
Any such Common Stock as to which such restrictions on transfer shall
have expired in accordance with their terms or as to which the conditions for
removal of the foregoing legend set forth therein have been satisfied may, upon
surrender of the certificates representing such shares of Common Stock for
exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of
shares of Common Stock, which shall not bear the restrictive legend required by
this Section 2.05(d).
(e) Any Note or Common Stock issued upon the conversion of a Note
that, prior to the expiration of the holding period applicable to sales thereof
under Rule 144(k) under the Securities Act (or any successor provision), is
purchased or owned by the Company or any Affiliate thereof may not be resold by
the Company or such Affiliate unless registered under the Securities Act or
resold pursuant to an exemption from the registration requirements of the
Securities Act in a transaction which results in such Notes or Common Stock, as
the case may be, no longer being "RESTRICTED SECURITIES" (as defined under Rule
144 under the Securities Act).
SECTION 2.06. MUTILATED, DESTROYED, LOST OR STOLEN NOTES. In case
any Note shall become mutilated or be destroyed, lost or stolen, the Company in
its discretion may execute, and
16
upon its written request the Trustee or an authenticating agent appointed by the
Trustee shall authenticate and make available for delivery, a new Note, bearing
a number not contemporaneously outstanding, in exchange and substitution for the
mutilated Note, or in lieu of and in substitution for the Note so destroyed,
lost or stolen. In every case, the applicant for a substituted Note shall
furnish to the Company, to the Trustee and, if applicable, to such
authenticating agent such security or indemnity as may be required by them to
save each of them harmless for any loss, liability, cost or expense caused by or
connected with such substitution, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company, to the Trustee and, if
applicable, to such authenticating agent evidence to their satisfaction of the
destruction, loss or theft of such Note and of the ownership thereof.
Following receipt by the Trustee or such authenticating agent, as the
case may be, of satisfactory security or indemnity and evidence, as described in
the preceding paragraph, the Trustee or such authenticating agent may
authenticate any such substituted Note and make available for delivery such
Note. Upon the issuance of any substituted Note, either the Company, the Trustee
or both may require the payment by the holder of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in relation
thereto and any other expenses connected therewith. In case any Note which has
matured or is about to mature or has been called for redemption or has been
tendered for redemption upon a Designated Event (and not withdrawn) or has been
surrendered for repurchase on a Repurchase Date (and not withdrawn) or is to be
converted into Common Stock shall become mutilated or be destroyed, lost or
stolen, the Company may, instead of issuing a substitute Note, pay or authorize
the payment of or convert or authorize the conversion of the same (without
surrender thereof except in the case of a mutilated Note), as the case may be,
if the applicant for such payment or conversion shall furnish to the Company, to
the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any loss,
liability, cost or expense caused by or in connection with such substitution,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company, the Trustee and, if applicable, any paying agent or
conversion agent evidence to their satisfaction of the destruction, loss or
theft of such Note and of the ownership thereof.
Every substitute Note issued pursuant to the provisions of this
Section 2.06 by virtue of the fact that any Note is destroyed, lost or stolen
shall constitute an additional contractual obligation of the Company, whether or
not the destroyed, lost or stolen Note shall be found at any time, and shall be
entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other
Notes duly issued hereunder. To the extent permitted by law, all Notes shall be
held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment or conversion or redemption
or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude
any and all other rights or remedies notwithstanding any law or statute existing
or hereafter enacted to the contrary with respect to the replacement or payment
or conversion or redemption or repurchase of negotiable instruments or other
securities without their surrender.
SECTION 2.07. TEMPORARY NOTES. Pending the preparation of Notes in
certificated form, the Company may execute and the Trustee or an authenticating
agent appointed by the Trustee shall, upon the written request of the Company,
authenticate and deliver temporary
17
Notes (printed or lithographed). Temporary Notes shall be issuable in any
authorized denomination, and substantially in the form of the Notes in
certificated form, but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Company. Every
such temporary Note shall be executed by the Company and authenticated by the
Trustee or such authenticating agent upon the same conditions and in
substantially the same manner, and with the same effect, as the Notes in
certificated form. Without unreasonable delay, the Company will execute and
deliver to the Trustee or such authenticating agent Notes in certificated form
and thereupon any or all temporary Notes may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to Section
4.02 and the Trustee or such authenticating agent shall authenticate and make
available for delivery in exchange for such temporary Notes an equal aggregate
principal amount of Notes in certificated form. Such exchange shall be made by
the Company at its own expense and without any charge therefor. Until so
exchanged, the temporary Notes shall in all respects be entitled to the same
benefits and subject to the same limitations under this Indenture as Notes in
certificated form authenticated and delivered hereunder.
SECTION 2.08. CANCELLATION OF NOTES. If the Company shall acquire
any of the Notes, such acquisition shall not operate as a redemption, repurchase
or satisfaction of the indebtedness represented by such Notes unless and until
the same are delivered to the Trustee for cancellation. All Notes surrendered
for the purpose of payment, redemption, repurchase, conversion, exchange or
registration of transfer shall, if surrendered to the Company or any paying
agent or any Note registrar or any conversion agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be
promptly canceled by it, and no Notes shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Indenture. The Trustee
shall dispose of such canceled Notes in accordance with its customary
procedures.
SECTION 2.09. CUSIP NUMBERS. The Company in issuing the Notes 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 Noteholders;
PROVIDED that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not
be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the "CUSIP" numbers.
ARTICLE III
REDEMPTION AND REPURCHASE OF NOTES
SECTION 3.01. REDEMPTION OF NOTES AT THE OPTION OF THE COMPANY.
Except as otherwise provided in Section 3.05, the Company may not redeem any
Notes prior to July 18, 2006. At any time on or after July 18, 2006, the Company
may redeem any of the Notes at a redemption price of 100% of the principal
amount of the Notes being redeemed, plus accrued and unpaid interest, if the
Closing Sale Price on the Nasdaq National Market excees 150% of the Conversion
Price for at least 20 Trading Days in any period of 30 consecutive Trading Days
ending as of the date the Company gives notice of such redemption or within two
Business Days prior to giving such notice. At any time on or after July 18, 2006
and prior to maturity, the Notes
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may be redeemed at the option of the Company (an "OPTIONAL REDEMPTION"), in
whole or in part, upon notice as set forth in Section 3.02, at 100% of the
principal amount of the Notes to be redeemed, together with accrued and unpaid
interest, if any, to, but excluding the date fixed for redemption.
SECTION 3.02. NOTICE OF OPTIONAL REDEMPTION; SELECTION OF NOTES. In
case the Company shall desire to exercise the right to redeem all or, as the
case may be, any part of the Notes pursuant to Section 3.01, it shall fix a date
for redemption and it or, at its written request received by the Trustee not
fewer than forty-five (45) days prior (or such shorter period of time as may be
acceptable to the Trustee) to the date fixed for redemption, the Trustee in the
name of and at the expense of the Company, shall mail or cause to be mailed a
notice of such redemption not fewer than thirty (30) nor more than sixty (60)
days prior to the redemption date to each holder of Notes so to be redeemed as a
whole or in part at its last address as the same appears on the Note register;
PROVIDED that if the Company shall give such notice, it shall also give written
notice of the redemption date to the Trustee. Such mailing shall be by first
class mail. The notice, if mailed in the manner herein provided, shall be
conclusively presumed to have been duly given, whether or not the holder
receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the holder of any Note designated for redemption as a
whole or in part shall not affect the validity of the proceedings for the
redemption of any other Note. Concurrently with the mailing of any such notice
of redemption, the Company shall issue a press release announcing such
redemption, the form and content of which press release shall be determined by
the Company in its sole discretion. The failure to issue any such press release
or any defect therein shall not affect the validity of the redemption notice or
any of the proceedings for the redemption of any Note called for redemption.
Each such notice of redemption shall specify the aggregate principal
amount of Notes to be redeemed, the CUSIP number or numbers of the Notes being
redeemed, the date fixed for redemption (which shall be a Business Day), the
redemption price at which Notes are to be redeemed, the place or places of
payment, that payment will be made upon presentation and surrender of such
Notes, that interest accrued to the date fixed for redemption will be paid as
specified in said notice, and that on and after said date interest thereon or on
the portion thereof to be redeemed will cease to accrue. Such notice shall also
state the current Conversion Rate and the date on which the right to convert
such Notes or portions thereof into Common Stock will expire. If fewer than all
the Notes are to be redeemed, the notice of redemption shall identify the Notes
to be redeemed (including CUSIP numbers, if any). In case any Note is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that, on and after the
redemption date, upon surrender of such Note, a new Note or Notes in principal
amount equal to the unredeemed portion thereof will be issued.
On or prior to the redemption date specified in the notice of
redemption given as provided in this Section 3.02, the Company will deposit with
the Trustee or with one or more paying agents (or, if the Company is acting as
the paying agent, set aside, segregate and hold in trust as provided in Section
4.04) an amount of money in immediately available funds sufficient to redeem on
the redemption date all the Notes (or portions thereof) so called for redemption
(other than those theretofore surrendered for conversion into Common Stock) at
the appropriate redemption price, together with accrued interest to, but
excluding, the redemption date; PROVIDED that if such payment is made on the
redemption date it must be received by the Trustee or paying
19
agent, as the case may be, by 10:00 a.m.
New York City time on such date. The
Company shall be entitled to retain any interest, yield or gain on amounts
deposited with the Trustee or any paying agent pursuant to this Section 3.02 in
excess of amounts required hereunder to pay the redemption price and accrued
interest to, but excluding, the redemption date. If any Note called for
redemption is converted pursuant hereto prior to such redemption date, any money
deposited with the Trustee or any paying agent or so segregated and held in
trust for the redemption of such Note shall be paid to the Company upon its
written request, or, if then held by the Company, shall be discharged from such
trust. Whenever any Notes are to be redeemed pursuant to Section 3.01, the
Company will give the Trustee written notice in the form of an Officers'
Certificate not fewer than forty-five (45) days (or such shorter period of time
as may be acceptable to the Trustee) prior to the redemption date as to the
aggregate principal amount of Notes to be redeemed.
If less than all of the outstanding Notes are to be redeemed, the
Trustee shall select the Notes or portions thereof of the Global Note or the
Notes in certificated form to be redeemed (in principal amounts of $1,000 or
multiples thereof) by lot, on a pro rata basis or by another method the Trustee
deems fair and appropriate. If any Note selected for partial redemption is
submitted for conversion in part after such selection, the portion of such Note
submitted for conversion shall be deemed (so far as may be possible) to be the
portion to be selected for redemption. The Notes (or portions thereof) so
selected shall be deemed duly selected for redemption for all purposes hereof,
notwithstanding that any such Note is submitted for conversion in part before
the mailing of the notice of redemption.
Upon any redemption of less than all of the outstanding Notes, the
Company and the Trustee may (but need not), solely for purposes of determining
the pro rata allocation among such Notes as are unconverted and outstanding at
the time of redemption, treat as outstanding any Notes surrendered for
conversion during the period of fifteen (15) days next preceding the mailing of
a notice of redemption and may (but need not) treat as outstanding any Note
authenticated and delivered during such period in exchange for the unconverted
portion of any Note converted in part during such period.
SECTION 3.03. PAYMENT OF NOTES CALLED FOR REDEMPTION BY THE COMPANY.
If notice of redemption has been given as provided in Section 3.02, the Notes or
portion of Notes with respect to which such notice has been given shall, unless
converted into Common Stock pursuant to the terms hereof, become due and payable
on the date fixed for redemption and at the place or places stated in such
notice at the applicable redemption price, together with interest accrued to
(but excluding) the redemption date, and on and after said date (unless the
Company shall default in the payment of such Notes at the redemption price,
together with interest accrued to said date) interest on the Notes or portion of
Notes so called for redemption shall cease to accrue and, after the close of
business on the Business Day immediately preceding the redemption date, such
Notes shall cease to be convertible into Common Stock and, except as provided in
Sections 7.06 and 12.04, to be entitled to any benefit or security under this
Indenture, and the holders thereof shall have no right in respect of such Notes
except the right to receive the redemption price thereof and unpaid interest to
(but excluding) the redemption date. On presentation and surrender of such Notes
at a place of payment in said notice specified, the said Notes or the specified
portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with interest accrued thereon to, but excluding, the
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redemption date; PROVIDED that if the applicable redemption date is an interest
payment date, the interest payable on such interest payment date shall be
payable to the holders of record of such Notes on the applicable record date
instead of the holders surrendering such Notes for redemption on such date.
Upon presentation of any Note redeemed in part only, the Company shall
execute and the Trustee shall authenticate and make available for delivery to
the holder thereof, at the expense of the Company, a new Note or Notes, of
authorized denominations, in principal amount equal to the unredeemed portion of
the Notes so presented.
Notwithstanding the foregoing, the Trustee shall not redeem any Notes
or mail any notice of redemption during the continuance of a default in payment
of interest on the Notes. If any Note called for redemption shall not be so paid
upon surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the redemption date at a rate equal to 1% per
annum plus the rate borne by the Note (without duplication of the 1% increase
provided for under Section 6.02) and such Note shall remain convertible into
Common Stock until the principal and interest shall have been paid or duly
provided for.
SECTION 3.04. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION. In
connection with any redemption of Notes, the Company may arrange for the
purchase and conversion of any Notes by an agreement with one or more investment
banks or other purchasers to purchase such Notes by paying to the Trustee in
trust for the Noteholders, on or before the date fixed for redemption, an amount
not less than the applicable redemption price, together with interest accrued
to, but excluding, the date fixed for redemption, of such Notes. Notwithstanding
anything to the contrary contained in this Article 3, the obligation of the
Company to pay the redemption price of such Notes, together with interest
accrued to, but excluding, the date fixed for redemption, shall be deemed to be
satisfied and discharged to the extent such amount is so paid by such
purchasers. If such an agreement is entered into, a copy of which will be filed
with the Trustee prior to the date fixed for redemption, any Notes not duly
surrendered for conversion by the holders thereof may, at the option of the
Company, be deemed, to the fullest extent permitted by law, acquired by such
purchasers from such holders and (notwithstanding anything to the contrary
contained in Article 14) surrendered by such purchasers for conversion, all as
of immediately prior to the close of business on the date fixed for redemption
(and the right to convert any such Notes shall be extended through such time),
subject to payment of the above amount as aforesaid. At the direction of the
Company, the Trustee shall hold and dispose of any such amount paid to it in the
same manner as it would monies deposited with it by the Company for the
redemption of Notes. Without the Trustee's prior written consent, no arrangement
between the Company and such purchasers for the purchase and conversion of any
Notes shall increase or otherwise affect any of the powers, duties,
responsibilities or obligations of the Trustee as set forth in this Indenture.
SECTION 3.05. REDEMPTION AT OPTION OF HOLDERS UPON A DESIGNATED
EVENT. (a) If there shall occur a Designated Event at any time prior to
maturity of the Notes, then each Noteholder shall have the right, at such
holder's option, to require the Company to redeem all of such holder's Notes, or
any portion thereof that is a multiple of $1,000 principal amount, on the date
(the "DESIGNATED EVENT REDEMPTION DATE") that is thirty (30) days after the date
of the Designated Event Notice (as defined in Section 3.05(b)) of such
Designated Event (or, if such
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30th day is not a Business Day, the next succeeding Business Day) at a
redemption price equal to 100% of the principal amount thereof, together with
accrued interest to, but excluding, the Designated Event Redemption Date;
PROVIDED that if such Designated Event Redemption Date is an interest payment
date, then the interest payable on such interest payment date shall be paid to
the holders of record of the Notes on the applicable record date instead of the
holders surrendering the Notes for redemption on such date.
Upon presentation of any Note redeemed in part only, the Company shall
execute and, upon the Company's written direction to the Trustee, the Trustee
shall authenticate and make available for delivery to the holder thereof, at the
expense of the Company, a new Note or Notes, of authorized denominations, in
aggregate principal amount equal to the unredeemed portion of the Notes
presented.
(b) On or before the tenth day after the occurrence of a
Designated Event, the Company or at its written request (which must be received
by the Trustee at least five (5) Business Days prior to the date the Trustee is
requested to give notice as described below, unless the Trustee shall agree in
writing to a shorter period), the Trustee, in the name of and at the expense of
the Company, shall mail or cause to be mailed to all holders of record on the
date of the Designated Event a notice (the "DESIGNATED EVENT NOTICE") of the
occurrence of such Designated Event and of the redemption right at the option of
the holders arising as a result thereof. Such notice shall be mailed in the
manner and with the effect set forth in the first paragraph of Section 3.02
(without regard for the time limits set forth therein). If the Company shall
give such notice, the Company shall also deliver a copy of the Designated Event
Notice to the Trustee at such time as it is mailed to Noteholders. Concurrently
with the mailing of any Designated Event Notice, the Company shall issue a press
release announcing such Designated Event referred to in the Designated Event
Notice, the form and content of which press release shall be determined by the
Company in its sole discretion. The failure to issue any such press release or
any defect therein shall not affect the validity of the Designated Event Notice
or any proceedings for the redemption of any Note which any Noteholder may elect
to have the Company redeem as provided in this Section 3.05.
Each Designated Event Notice shall specify the circumstances
constituting the Designated Event, the Designated Event Redemption Date, the
price at which the Company shall be obligated to redeem Notes, that the holder
must exercise the redemption right on or prior to the close of business on the
Designated Event Redemption Date (the "DESIGNATED EVENT EXPIRATION TIME"), that
the holder shall have the right to withdraw any Notes surrendered prior to the
Designated Event Expiration Time, a description of the procedure which a
Noteholder must follow to exercise such redemption right and to withdraw any
surrendered Notes, the place or places where the holder is to surrender such
holder's Notes, the amount of interest accrued on each Note to (but excluding)
the Designated Event Redemption Date and the CUSIP number or numbers of the
Notes (if then generally in use).
No failure of the Company to give the foregoing notices and no defect
therein shall limit the Noteholders' redemption rights or affect the validity of
the proceedings for the redemption of the Notes pursuant to this Section 3.05.
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(c) For a Note, other than a Global Note, to be so redeemed at the
option of the holder, the Company must receive at the office or agency of the
Company maintained for that purpose pursuant to Section 4.02, such Note with the
form entitled "Option to Elect Repayment Upon A Designated Event" on the reverse
thereof duly completed, together with such Notes duly endorsed for transfer, on
or before the Designated Event Expiration Time. All questions as to the
validity, eligibility (including time of receipt) and acceptance of any Note for
redemption shall be determined by the Company, whose determination shall be
final and binding absent manifest error.
(d) On or prior the Designated Event Redemption Date, the Company
will deposit with the Trustee or with one or more paying agents (or, if the
Company is acting as the paying agent, set aside, segregate and hold in trust as
provided in Section 4.04) an amount of money sufficient to redeem on the
Designated Event Redemption Date all the Notes to be redeemed on such date at
the appropriate redemption price, together with accrued interest to, but
excluding, the Designated Event Redemption Date; PROVIDED that if such payment
is made on the Designated Event Redemption Date it must be received by the
Trustee or paying agent, as the case may be, by 10:00 a.m.
New York City time,
on such date. Payment for Notes surrendered for redemption (and not withdrawn)
prior to the Designated Event Expiration Time will be made promptly (but in no
event more than five (5) Business Days) following the Designated Event
Redemption Date by mailing checks for the amount payable to the holders of such
Notes entitled thereto as they shall appear in the Note register.
(e) In the case of a reclassification, change, consolidation,
merger, combination, binding share exchange, sale or conveyance to which Section
14.06 applies, in which the Common Stock of the Company is changed or exchanged
as a result into the right to receive stock, securities or other property or
assets (including cash), which includes shares of Common Stock of the Company or
shares of common stock of another Person that are, or upon issuance will be,
traded on a United States national securities exchange or approved for trading
on an established automated over-the-counter trading market in the United States
and such shares constitute at the time such change or exchange becomes effective
in excess of 50% of the aggregate fair market value of such stock, securities or
other property or assets (including cash) (as determined by the Company, which
determination shall be conclusive and binding), then the Person formed by such
consolidation or resulting from such merger or which acquires such assets, as
the case may be, shall execute and deliver to the Trustee a supplemental
indenture (accompanied by an Opinion of Counsel that such supplemental indenture
complies with the Trust Indenture Act as in force at the date of execution of
such supplemental indenture) modifying the provisions of this Indenture relating
to the right of holders of the Notes to cause the Company to repurchase the
Notes following a Designated Event, including without limitation the applicable
provisions of this Section 3.05 and the definitions of Common Stock and
Designated Event, as appropriate, as determined in good faith by the Company
(which determination shall be conclusive and binding), to make such provisions
apply to such other Person if different from the Company and the common stock
issued by such Person (in lieu of the Company and the Common Stock of the
Company).
(f) The Company will comply with the provisions of Rule 13e-4 and
any other tender offer rules under the Exchange Act to the extent then
applicable in connection with the redemption rights of the holders of Notes in
the event of a Designated Event.
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SECTION 3.06. REPURCHASE OF NOTES BY THE COMPANY AT OPTION OF THE
HOLDER. Notes shall be purchased by the Company pursuant to the terms of the
Notes at the option of the holder on July 15, 2008, July 15, 2013, July 15,
2018, July 15, 2023 and July 15, 2028 (each, a "REPURCHASE Date"), at a purchase
price of 100% of the principal amount, plus any accrued and unpaid interest, in
each case, to, but excluding, such Repurchase Date, subject to the provisions of
Section 3.07. Repurchases of Notes under this Section 3.06 shall be made, at the
option of the holder thereof, upon:
(a) delivery to the Trustee (or other paying agent appointed by
the Company) by a holder of a duly completed Repurchase Notice (a
"REPURCHASE NOTICE") in the form set forth on the reverse of the Note
during the period beginning at any time from the opening of business on the
date that is 20 Business Days prior to the applicable Repurchase Date until
the close of business on such Repurchase Date; and
(b) delivery or book-entry transfer of the Notes to the Trustee
(or other paying agent appointed by the Company) at any time after delivery
of the applicable Repurchase Notice (together with all necessary
endorsements) at the office of the Trustee (or other paying agent appointed
by the Company), such delivery being a condition to receipt by the holder
of the purchase price therefor; PROVIDED that such purchase price shall be
so paid pursuant to this Section 3.06 only if the Note so delivered to the
Trustee (or other paying agent appointed by the Company) shall conform in
all respects to the description thereof in the related Repurchase Notice.
The Company shall purchase from the holder thereof, pursuant to this
Section 3.06, a portion of a Note, if the principal amount of such portion is
$1,000 or an integral multiple of $1,000. Provisions of this Indenture that
apply to the purchase of all of a Note also apply to the purchase of such
portion of such Note.
Any purchase by the Company contemplated pursuant to the provisions of
this Section 3.06 shall be consummated by the delivery of the consideration to
be received by the holder promptly following the later of the Repurchase Date
and the time of the book-entry transfer or delivery of the Note.
Notwithstanding anything herein to the contrary, any holder delivering
to the Trustee (or other paying agent appointed by the Company) the Repurchase
Notice contemplated by this Section 3.06 shall have the right to withdraw such
Repurchase Notice at any time prior to the close of business on the Repurchase
Date by delivery of a written notice of withdrawal to the Trustee (or other
paying agent appointed by the Company) in accordance with Section 3.08.
The Trustee (or other paying agent appointed by the Company) shall
promptly notify the Company of the receipt by it of any Repurchase Notice or
written notice of withdrawal thereof.
SECTION 3.07. PROCEDURES FOR THE REPURCHASE OF NOTES. (a) At least
three Business Days before each Company Repurchase Notice Date, the Company
shall deliver an Officers' Certificate to the Trustee specifying:
24
(i) the information required by Section 3.07(c) in the
Company Repurchase Notice, and
(ii) whether the Company desires the Trustee to give the
Company Repurchase Notice required by Section 3.07(c).
(b) The Company Repurchase Notice, as provided in Section 3.07(c),
shall be sent to holders not less than 20 Business Days prior to such Repurchase
Date (the "COMPANY REPURCHASE NOTICE DATE").
(c) In connection with any repurchase of Notes, the Company shall,
no less than 20 Business Days prior to each Repurchase Date, give notice to
holders (with a copy to the Trustee) setting forth information specified in this
Section 3.07(c) (the "COMPANY REPURCHASE NOTICE").
Each Company Repurchase Notice shall:
(1) state the repurchase price and the Repurchase Date to
which the Company Repurchase Notice relates;
(2) include a form of Repurchase Notice;
(3) state the name and address of the Trustee (or other paying
agent or conversion agent appointed by the Company);
(4) state that Notes must be surrendered to the Trustee (or
other paying agent appointed by the Company) to collect the purchase
price;
(5) if the Notes are then convertible, state that Notes as to
which a Repurchase Notice has been given may be converted only if the
Repurchase Notice is withdrawn in accordance with the terms of this
Indenture; and
(6) state the CUSIP number of the Notes.
Company Repurchase Notices may be given by the Company or, at the Company's
request, the Trustee shall give such Company Repurchase Notice in the Company's
name and at the Company's expense.
(d) The Company will comply with the provisions of Rule 13e-4 and
any other tender offer rules under the Exchange Act to the extent then
applicable in connection with the repurchase rights of the holders of Notes.
SECTION 3.08. EFFECT OF REPURCHASE NOTICE. Upon receipt by the
Trustee (or other paying agent appointed by the Company) of the Repurchase
Notice specified in Section 3.06, the holder of the Note in respect of which
such Repurchase Notice was given shall (unless such Repurchase Notice is validly
withdrawn) thereafter be entitled to receive solely the purchase price with
respect to such Note. Such purchase price shall be paid to such holder, subject
to receipt of funds and/or Notes by the Trustee at its Corporate Trust Office in
25
Wilmington Delaware (or other paying agent appointed by the Company), promptly
following the later of (x) the Repurchase Date with respect to such Note
(provided the holder has satisfied the conditions in Section 3.06) and (y) the
time of delivery of such Note to the Trustee (or other paying agent appointed by
the Company) by the holder thereof in the manner required by Section 3.06. Notes
in respect of which a Repurchase Notice has been given by the holder thereof may
not be converted pursuant to Article 14 hereof on or after the date of the
delivery of such Repurchase Notice unless such Repurchase Notice has first been
validly withdrawn.
A Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the Corporate Trust Office of the Trustee in Wilmington,
Delaware (or other paying agent appointed by the Company) in accordance with the
Repurchase Notice at any time prior to the close of business on the Repurchase
Date, specifying:
(a) the certificate number, if any, of the Note in respect of
which such notice of withdrawal is being submitted, or the appropriate
Depositary information if the Note in respect of which such notice of
withdrawal is being submitted is represented by a Global Note,
(b) the principal amount of the Note with respect to which such
notice of withdrawal is being submitted, and
(c) the principal amount, if any, of such Note which remains
subject to the original Repurchase Notice and which has been or will be
delivered for purchase by the Company.
SECTION 3.09. DEPOSIT OF PURCHASE PRICE. (a) Prior to 10:00 a.m.
(
New York City Time) on the Business Day following the Repurchase Date, the
Company shall deposit with the Trustee (or other paying agent appointed by the
Company; or, if the Company is acting as the paying agent, shall segregate and
hold in trust as provided in Section 4.04) an amount of cash (in immediately
available funds if deposited on such Business Day) sufficient to pay the
aggregate purchase price of all the Notes or portions thereof that are to be
purchased as of the Repurchase Date.
(b) If the Trustee or other paying agent appointed by the Company,
or the Company or a subsidiary or affiliate of either of them if such entity is
acting as the paying agent, holds cash sufficient to pay the aggregate purchase
price of all the Notes, or portions thereof that are to purchased as of the
Repurchase Date, on or after the Repurchase Date (i) the Notes will cease to be
outstanding, (ii) interest on the Notes will cease to accrue, and (iii) all
other rights of the holders of such Notes will terminate, whether or not
book-entry transfer of the Notes has been made or the Notes have been delivered
to the Trustee or other paying agent, other than the right to receive the
purchase price upon delivery of the Notes.
SECTION 3.10. NOTES REPURCHASED IN PART. Upon presentation of any
Note repurchased only in part, the Company shall execute and the Trustee shall
authenticate and make available for delivery to the holder thereof, at the
expense of the Company, a new Note or Notes, of any authorized denomination, in
aggregate principal amount equal to the unrepurchased portion of the Notes
presented.
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SECTION 3.11. REPAYMENT TO THE COMPANY. The Trustee (or other paying
agent appointed by the Company) shall return to the Company any cash that remain
unclaimed, together with interest, if any, thereon, held by them for the payment
of the purchase price; PROVIDED that to the extent that the aggregate amount of
cash deposited by the Company pursuant to Section 3.09 exceeds the aggregate
purchase price of the Notes or portions thereof which the Company is obligated
to purchase as of the Repurchase Date then, unless otherwise agreed in writing
with the Company, promptly after the Business Day following the Repurchase Date,
the Trustee shall return any such excess to the Company together with interest,
if any, thereon.
ARTICLE IV
PARTICULAR COVENANTS OF THE COMPANY
SECTION 4.01. PAYMENT OF PRINCIPAL AND INTEREST. The Company
covenants and agrees that it will duly and punctually pay or cause to be paid
the principal of (including the redemption price upon redemption or the purchase
price upon repurchase, in each case pursuant to Article 3), and interest, on
each of the Notes at the places, at the respective times and in the manner
provided herein and in the Notes.
SECTION 4.02. MAINTENANCE OF OFFICE OR AGENCY. The Company will
maintain an office or agency in the Borough of Manhattan, City of New York,
where the Notes may be surrendered for registration of transfer or exchange or
for presentation for payment or for conversion, redemption or repurchase and
where notices and demands to or upon the Company in respect of the Notes and
this Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency not designated or appointed by the Trustee.
The Company may also from time to time designate co-registrars and one
or more offices or agencies where the Notes may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations.
The Company will give prompt written notice of any such designation or
rescission and of any change in the location of any such other office or agency.
The Company hereby initially designates the Trustee as paying agent,
Note registrar, Custodian and conversion agent and the Corporate Trust Office
shall be considered as one such office or agency of the Company for each of the
aforesaid purposes.
So long as the Trustee is the Note registrar, the Trustee agrees to
mail, or cause to be mailed, the notices set forth in Section 7.10(b) and the
third paragraph of Section 7.11. If co-registrars have been appointed in
accordance with this Section, the Trustee shall mail such notices only to the
Company and the holders of Notes it can identify from its records.
SECTION 4.03. APPOINTMENTS TO FILL VACANCIES IN TRUSTEE'S OFFICE.
The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so
that there shall at all times be a Trustee hereunder.
SECTION 4.04. PROVISIONS AS TO PAYING AGENT. (a) If the Company
shall appoint a paying agent other than the Trustee, or if the Trustee shall
appoint such a paying agent, the
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Company will cause such paying agent to execute and deliver to the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section 4.04:
(1) that it will hold all sums held by it as such agent
for the payment of the principal of, or interest on, the Notes
(whether such sums have been paid to it by the Company or by any other
obligor on the Notes) in trust for the benefit of the holders of the
Notes;
(2) that it will give the Trustee notice of any failure by
the Company (or by any other obligor on the Notes) to make any payment
of the principal of, or interest on, the Notes when the same shall be
due and payable; and
(3) that at any time during the continuance of an Event of
Default, upon request of the Trustee, it will forthwith pay to the
Trustee all sums so held in trust.
The Company shall, on or before each due date of the principal of, or
interest on, the Notes, deposit with the paying agent a sum (in funds which are
immediately available on the due date for such payment) sufficient to pay such
principal or interest, and (unless such paying agent is the Trustee) the Company
will promptly notify the Trustee of any failure to take such action; PROVIDED
that if such deposit is made on the due date, such deposit shall be received by
the paying agent by 10:00 a.m. New York City time, on such date.
(b) If the Company shall act as the paying agent, it will, on or
before each due date of the principal of, or interest on, the Notes, set aside,
segregate and hold in trust for the benefit of the holders of the Notes a sum
sufficient to pay such principal or interest so becoming due and will promptly
notify the Trustee of any failure to take such action and of any failure by the
Company (or any other obligor under the Notes) to make any payment of the
principal of, or interest on, the Notes when the same shall become due and
payable.
(c) Anything in this Section 4.04 to the contrary notwithstanding,
the Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by the Company or any paying agent hereunder
as required by this Section 4.04, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent
to the Trustee, the Company or such paying agent shall be released from all
further liability with respect to such sums.
(d) Anything in this Section 4.04 to the contrary notwithstanding,
the agreement to hold sums in trust as provided in this Section 4.04 is subject
to Sections 12.03 and 12.04.
The Trustee shall not be responsible for the actions of any other
paying agents (including the Company if acting as the paying agent) and shall
have no control of any funds held by such other paying agents.
SECTION 4.05. RULE 144A INFORMATION REQUIREMENT. Within the period
prior to the expiration of the holding period applicable to sales thereof under
Rule 144(k) under the
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Securities Act (or any successor provision), the Company covenants and agrees
that it shall, during any period in which it is not subject to Section 13 or
15(d) under the Exchange Act, make available to any holder or beneficial holder
of Notes or any Common Stock issued upon conversion thereof which continue to be
Restricted Securities in connection with any sale thereof and any prospective
purchaser of Notes or such Common Stock designated by such holder or beneficial
holder, the information required pursuant to Rule 144A(d)(4) under the
Securities Act upon the request of any holder or beneficial holder of the Notes
or such Common Stock and it will take such further action as any holder or
beneficial holder of such Notes or such Common Stock may reasonably request, all
to the extent required from time to time to enable such holder or beneficial
holder to sell its Notes or Common Stock without registration under the
Securities Act within the limitation of the exemption provided by Rule 144A, as
such Rule may be amended from time to time. Upon the request of any holder or
any beneficial holder of the Notes or such Common Stock, the Company will
deliver to such holder a written statement as to whether it has complied with
such requirements.
SECTION 4.06. COMPLIANCE CERTIFICATE. The Company shall deliver to
the Trustee, within one hundred twenty (120) days after the end of each fiscal
year of the Company, an Officers' Certificate stating whether or not to the best
knowledge of the signers thereof the Company is in default in the performance
and observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided
hereunder) and, if the Company shall be in default, specifying all such defaults
and the nature and the status thereof of which the signer may have knowledge.
The Company will deliver to the Trustee, as soon as possible and in
any event within 30 days after the Company becomes aware of any Event of Default
or an event which, with notice or the lapse of time or both, would constitute an
Event of Default, an Officers' Certificate setting forth the details of such
default or Event of Default and the action that the Company has taken, is taking
or proposes to take with respect thereto.
Any notice required to be given under this Section 4.06 shall be
delivered to a Responsible Officer of the Trustee at its Corporate Trust Office.
SECTION 4.07. LIQUIDATED DAMAGES NOTICE. In the event that the
Company is required to pay Liquidated Damages to holders of Notes pursuant to
the Registration Rights Agreement, the Company will provide written notice
("LIQUIDATED DAMAGES NOTICE") to the Trustee of its obligation to pay Liquidated
Damages no later than fifteen (15) days prior to the proposed payment date for
the Liquidated Damages, and the Liquidated Damages Notice shall set forth the
amount of Liquidated Damages to be paid by the Company on such payment date. The
Trustee shall not at any time be under any duty or responsibility to any holder
of Notes to determine the Liquidated Damages, or with respect to the nature,
extent or calculation of the amount of Liquidated Damages when made, or with
respect to the method employed in such calculation of the Liquidated Damages.
ARTICLE V
NOTEHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
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SECTION 5.01. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
NOTEHOLDERS. The Company covenants and agrees that it will furnish or cause to
be furnished to the Trustee, semiannually, not more than fifteen (15) days after
each January 1 and July 1 in each year beginning with January 1, 2004, and at
such other times as the Trustee may request in writing, within thirty (30) days
after receipt by the Company of any such request (or such lesser time as the
Trustee may reasonably request in order to enable it to timely provide any
notice to be provided by it hereunder), a list in such form as the Trustee may
reasonably require of the names and addresses of the registered holders of Notes
as of a date not more than fifteen (15) days (or such other date as the Trustee
may reasonably request in order to so provide any such notices) prior to the
time such information is furnished, except that no such list need be furnished
by the Company to the Trustee so long as the Trustee is acting as the sole Note
registrar.
SECTION 5.02. PRESERVATION AND DISCLOSURE OF LISTS. (a) The Trustee
shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Notes contained in
the most recent list furnished to it as provided in Section 5.01 or maintained
by the Trustee in its capacity as Note registrar or co-registrar in respect of
the Notes, if so acting. The Trustee may destroy any list furnished to it as
provided in Section 5.01 upon receipt of a new list so furnished.
(b) The rights of Noteholders to communicate with other holders of
Notes with respect to their rights under this Indenture or under the Notes, and
the corresponding rights and duties of the Trustee, shall be as provided by the
Trust Indenture Act.
(c) Every Noteholder, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company nor the Trustee nor
any agent of either of them shall be held accountable by reason of any
disclosure of information as to names and addresses of holders of Notes made
pursuant to the Trust Indenture Act.
SECTION 5.03. REPORTS BY TRUSTEE. (a) Within sixty (60) days after
December 30 of each year commencing with the year 2003, the Trustee shall
transmit to holders of Notes such reports dated as of December 30 of the year in
which such reports are made concerning the Trustee and its actions under this
Indenture as shall be required, if any, pursuant to the Trust Indenture Act at
the times and in the manner provided pursuant thereto.
(b) A copy of such report shall, at the time of such transmission
to holders of Notes, be filed by the Trustee with each stock exchange and
automated quotation system upon which the Notes are listed and with the Company.
The Company will promptly notify the Trustee in writing when the Notes are
listed on any stock exchange or automated quotation system or delisted
therefrom.
SECTION 5.04. REPORTS BY COMPANY. The Company shall file with the
Trustee and transmit to holders of the Notes, such information, documents and
other reports as it is required to file with the Commission pursuant to Section
13 or 15(d) of the Exchange Act within 15 days after the same is so required to
be filed with the Commission. Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee's
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Company's compliance with any
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of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers' Certificates).
ARTICLE VI
REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT
SECTION 6.01. EVENTS OF DEFAULT; ACCELERATION. In case one or more
of the following Events of Default (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body) shall
have occurred and be continuing:
(a) default in the payment of any installment of interest or
Liquidated Damages with respect to any of the Notes as and when the same
shall become due and payable, and continuance of such default for a period
of thirty (30) days; or
(b) default in the payment of the principal of any of the Notes as
and when the same shall become due and payable either at maturity or in
connection with any redemption or repurchase, in each case pursuant to
Article 3, by acceleration or otherwise; or
(c) failure on the part of the Company duly to observe or perform
any other of the covenants or agreements on the part of the Company in the
Notes or in this Indenture (other than a covenant or agreement a default in
whose performance or whose breach is elsewhere in this Section 6.01
specifically dealt with) continued for a period of sixty (60) days after
the date on which written notice of such failure, requiring the Company to
remedy the same, shall have been given to the Company by the Trustee, or
the Company and a Responsible Officer of the Trustee by the holders of at
least twenty-five percent (25%) in aggregate principal amount of the Notes
at the time outstanding determined in accordance with Section 8.04; or
(d) the entry by a court having jurisdiction in the premises of
(A) a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or (B) a decree
or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment
or composition of or in respect of the Company under any applicable Federal
or State law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of the property of the Company, or ordering the winding up
or liquidation of the affairs of the Company, and the continuance of any
such decree or order for relief or any such other decree or order unstayed
and in effect for a period of 60 consecutive days; or
(e) the commencement by the Company of a voluntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by the Company to
the entry of a decree or order for relief in respect of the
31
Company in an involuntary case or proceeding under any applicable Federal
or State bankruptcy, insolvency, reorganization or other similar law or to
the commencement of any bankruptcy or insolvency case or proceeding against
the Company or the filing by the Company of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law,
or the consent by the Company to the filing of such a petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Company or of
any substantial part of the property of the Company, or the making by the
Company of an assignment for the benefit of creditors, or the admission by
the Company in writing of its inability to pay its debts generally as they
become due, or the taking of corporate action by the Company in furtherance
of any such action;
then, and in each and every such case (other than an Event of Default specified
in 6.01(d) or 6.01(e) that occurs with respect to the Company), unless the
principal of all of the Notes shall have already become due and payable, either
the Trustee or the holders of not less than twenty-five percent (25%) in
aggregate principal amount of the Notes then outstanding hereunder determined in
accordance with Section 8.04, by notice in writing to the Company (and to the
Trustee if given by Noteholders) specifying the respective Event of Default and
stating that it is a "notice of acceleration", may declare the principal of all
the Notes and the interest accrued thereon to be due and payable immediately,
and upon receipt of such notice the same shall become and shall be immediately
due and payable. If an Event of Default specified in 6.01(d) or 6.01(e)
involving the Company occurs, the principal of all the Notes and the interest
accrued thereon shall be immediately and automatically due and payable without
necessity of further action. This provision, however, is subject to the
conditions that if, at any time after the principal of the Notes shall have been
so declared due and payable, and before any judgment or decree for the payment
of the monies due shall have been obtained or entered as hereinafter provided,
the Company shall pay or shall deposit with the Trustee a sum sufficient to pay
all matured installments of interest upon all Notes and the principal of any and
all Notes which shall have become due otherwise than by acceleration (with
interest on overdue installments of interest (to the extent that payment of such
interest is enforceable under applicable law) and on such principal at the rate
borne by the Notes plus 1%, to the date of such payment or deposit) and amounts
due to the Trustee pursuant to Section 7.07, and if any and all defaults under
this Indenture, other than the nonpayment of principal of, and accrued interest
on, Notes which shall have become due by acceleration, shall have been cured or
waived pursuant to Section 6.07, then and in every such case the holders of a
majority in aggregate principal amount of the Notes then outstanding, by written
notice to the Company and to the Trustee, may waive all defaults or Events of
Default and rescind and annul such declaration and its consequences; but no such
waiver or rescission and annulment shall extend to or shall affect any
subsequent default or Event of Default, or shall impair any right consequent
thereon. The Company shall notify in writing a Responsible Officer of the
Trustee, promptly upon becoming aware thereof, of any Event of Default.
In case the Trustee shall have proceeded to enforce any right under
this Indenture and such proceedings shall have been discontinued or abandoned
because of such waiver or rescission and annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such case
the Company, the holders of Notes, and the Trustee shall be restored
respectively to their several positions and rights hereunder, and all rights,
remedies and
32
powers of the Company, the holders of Notes, and the Trustee shall continue as
though no such proceeding had been taken.
SECTION 6.02. PAYMENTS OF NOTES ON DEFAULT; SUIT THEREFOR. The
Company covenants that (a) in case default shall be made in the payment of any
installment of interest upon any of the Notes as and when the same shall become
due and payable, and such default shall have continued for a period of thirty
(30) days, or (b) in case default shall be made in the payment of the principal
of any of the Notes as and when the same shall have become due and payable,
whether at maturity of the Notes or in connection with any redemption or
repurchase, by or under this Indenture or otherwise, then, upon demand of the
Trustee, the Company will pay to the Trustee, for the benefit of the holders of
the Notes, the whole amount that then shall have become due and payable on all
such Notes for principal or interest, as the case may be, with interest upon the
overdue principal and (to the extent that payment of such interest is
enforceable under applicable law) upon the overdue installments of interest at
the rate borne by the Notes, plus 1% and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including reasonable compensation to the Trustee, its agents, attorneys and
counsel, and all other amounts due the Trustee under Section 7.07. Until such
demand by the Trustee, the Company may pay the principal of, and interest on,
the Notes to the registered holders, whether or not the Notes are overdue.
In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on the Notes
and collect in the manner provided by law out of the property of the Company or
any other obligor on the Notes wherever situated the monies adjudged or decreed
to be payable.
In case there shall be pending proceedings for the bankruptcy or for
the reorganization of the Company or any other obligor on the Notes under Title
11 of the United States Code, or any other applicable law, or in case a
receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Company or such other obligor, the property of the Company or
such other obligor, or in the case of any other judicial proceedings relative to
the Company or such other obligor upon the Notes, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of
whether the principal of the Notes 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 pursuant to the provisions of this Section 6.02,
shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of principal
and interest owing and unpaid in respect of the Notes, and, in case of any
judicial proceedings, to file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee and
of the Noteholders allowed in such judicial proceedings relative to the Company
or any other obligor on the Notes, its or their creditors, or its or their
property, and to collect and receive any monies or other property payable or
deliverable on any such claims, and to distribute the same after the deduction
of any amounts due the Trustee under Section 7.07, and any receiver, assignee or
trustee in bankruptcy or reorganization, liquidator, custodian or similar
official is hereby
33
authorized by each of the Noteholders to make such payments to the Trustee, and,
in the event that the Trustee shall consent to the making of such payments
directly to the Noteholders, to pay to the Trustee any amount due it for
reasonable compensation, expenses, advances and disbursements, including counsel
fees and expenses incurred by it up to the date of such distribution.
All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Trustee without the possession of
any of the Notes, or the production thereof at any trial or other proceeding
relative thereto, and any such suit or proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the holders of the Notes.
In any proceedings brought by the Trustee (and in any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the holders
of the Notes, and it shall not be necessary to make any holders of the Notes
parties to any such proceedings.
SECTION 6.03. APPLICATION OF MONIES COLLECTED BY TRUSTEE. Any monies
collected by the Trustee pursuant to this Article 6 shall be applied in the
order following, at the date or dates fixed by the Trustee for the distribution
of such monies, upon presentation of the several Notes, and stamping thereon 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 7.07;
SECOND: In case the principal of the outstanding Notes shall
not have become due and be unpaid, to the payment of interest on the
Notes in default in the order of the maturity of the installments of
such interest, with interest (to the extent that such interest has
been collected by the Trustee) upon the overdue installments of
interest at the rate borne by the Notes plus 1%, such payments to be
made ratably to the Persons entitled thereto;
THIRD: In case the principal of the outstanding Notes shall
have become due, by declaration or otherwise, and be unpaid to the
payment of the whole amount then owing and unpaid upon the Notes for
principal and interest, with interest on the overdue principal and (to
the extent that such interest has been collected by the Trustee) upon
overdue installments of interest at the rate borne by the Notes plus
1% to the Persons entitled thereto, and in case such monies shall be
insufficient to pay in full the whole amounts so due and unpaid upon
the Notes, then to the payment of such principal and interest without
preference or priority of principal, over interest, or of interest
over principal, or of any installment of interest over any other
installment of interest, or of any Note over any other Note, ratably
to the aggregate of such principal and accrued and unpaid interest;
and
34
FOURTH: To the payment of the remainder, if any, to the
Company or any other Person lawfully entitled thereto.
SECTION 6.04. PROCEEDINGS BY NOTEHOLDER. No holder of any Note
shall have any right by virtue of or by reference to any provision of this
Indenture to institute any suit, action or proceeding in equity or at law upon
or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any
other remedy hereunder, unless such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof, as
hereinbefore provided, and unless also the holders of not less than twenty-five
percent (25%) in aggregate principal amount of the Notes then outstanding shall
have made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee for sixty
(60) days after its receipt of such notice, request and offer of indemnity,
shall have neglected or refused to institute any such action, suit or proceeding
and no direction inconsistent with such written request shall have been given to
the Trustee pursuant to Section 6.07; it being understood and intended, and
being expressly covenanted by the taker and holder of every Note with every
other taker and holder and the Trustee, that no one or more holders of Notes
shall have any right in any manner whatever by virtue of or by reference to any
provision of this Indenture to affect, disturb or prejudice the rights of any
other holder of Notes, or to obtain or seek to obtain priority over or
preference to any other such holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of Notes (except as otherwise provided herein).
For the protection and enforcement of this Section 6.04, each and every
Noteholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.
Notwithstanding any other provision of this Indenture and any
provision of any Note, the right of any holder of any Note to receive payment of
the principal of (including the redemption or repurchase price upon redemption
or repurchase pursuant to Article 3), and accrued interest on such Note, on or
after the respective due dates expressed in such Note or in the case of a
redemption or repurchase, on the redemption date or Repurchase Date, as the case
may be, or to institute suit for the enforcement of any such payment on or after
such respective dates against the Company shall not be impaired or affected
without the consent of such holder.
Anything in this Indenture or the Notes to the contrary
notwithstanding, the holder of any Note, without the consent of either the
Trustee or the holder of any other Note, in its own behalf and for its own
benefit, may enforce, and may institute and maintain any proceeding suitable to
enforce, its rights of conversion as provided herein.
SECTION 6.05. PROCEEDINGS BY TRUSTEE. In case of an Event of
Default, the Trustee may, in its discretion, but shall not be required to,
proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as are necessary to protect and enforce any of
such rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.
35
SECTION 6.06. REMEDIES CUMULATIVE AND CONTINUING. Except as provided
in Section 2.06, all powers and remedies given by this Article 6 to the Trustee
or to the Noteholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any thereof or of any other powers and remedies
available to the Trustee or the holders of the Notes, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture, and no delay or omission of the Trustee
or of any holder of any of the Notes to exercise any right or power accruing
upon any default or Event of Default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any such
default or any acquiescence therein, and, subject to the provisions of Section
6.04, every power and remedy given by this Article 6 or by law to the Trustee or
to the Noteholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Noteholders.
SECTION 6.07. DIRECTION OF PROCEEDINGS AND WAIVER OF DEFAULTS BY
MAJORITY OF NOTEHOLDERS. The holders of a majority in aggregate principal amount
of the Notes at the time outstanding determined in accordance with Section 8.04
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee; 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 which is not inconsistent with such direction and (c) the
Trustee may decline to take any action that would benefit some Noteholder to the
detriment of other Noteholders or of the Trustee. The holders of a majority in
aggregate principal amount of the Notes at the time outstanding determined in
accordance with Section 8.04 may, on behalf of the holders of all of the Notes,
waive any past or existing default or Event of Default hereunder and its
consequences except (i) a past or existing default in the payment of interest
on, or the principal of, the Notes (including in connection with an offer to
purchase); PROVIDED however that holders of a majority in aggregate principal
amount of the then outstanding Notes may rescind an acceleration and its
consequences, including any related payment default that resulted from such
acceleration in accordance with Section 6.01, (ii) a failure by the Company to
convert any Notes into Common Stock, (iii) a default in the payment of the
redemption price pursuant to Article 3, (iv) a default in the payment of the
purchase price pursuant to Article 3 or (v) a default in respect of a covenant
or provisions hereof which under Article 10 cannot be modified or amended
without the consent of the holders of each or all Notes then outstanding or
affected thereby. Upon any such waiver, the Company, the Trustee and the holders
of the Notes shall be restored to their former positions and rights hereunder;
but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon. Whenever any default or Event of
Default hereunder shall have been cured or waived as permitted by this Section
6.07, said default or Event of Default shall for all purposes of the Notes and
this Indenture be deemed to have been cured and to be not continuing for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon.
SECTION 6.08. UNDERTAKING TO PAY COSTS. All parties to this
Indenture agree, and each holder of any Note 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 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
36
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; PROVIDED that the provisions of this Section 6.08 (to the extent
permitted by law) shall not apply to any suit instituted by the Trustee, to any
suit instituted by any Noteholder, or group of Noteholders, holding in the
aggregate more than 10% in principal amount of the Notes at the time outstanding
determined in accordance with Section 8.04, or to any suit instituted by any
Noteholder for the enforcement of the payment of the principal of, or interest
on, any Note on or after the due date expressed in such Note or to any suit for
the enforcement of the right to convert any Note in accordance with the
provisions of Article 14.
ARTICLE VII
THE TRUSTEE
SECTION 7.01. CERTAIN DUTIES AND RESPONSIBILITIES. The duties and
responsibilities of the Trustee shall be as provided by the Trust Indenture Act
(as if such Act applied). Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it. Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.01.
SECTION 7.02. NOTICE OF DEFAULTS. Subject to the provisions of
Section 7.03(i), the Trustee shall give the Noteholders notice of any default
hereunder as and to the extent provided by the Trust Indenture Act (as if such
Act applied); PROVIDED, HOWEVER, that except in the case of default in the
payment of the principal of, or interest on, any of the Notes, the Trustee shall
be protected in withholding such notice if and so long as a trust committee of
directors and/or Responsible Officers of the Trustee in good faith determines
that the withholding of such notice is in the interests of the Noteholders. For
the purpose of this Section 7.02, the term "default" means any event which is,
or after notice or lapse of time or both would become, an Event of Default.
SECTION 7.03. CERTAIN RIGHTS OF THE TRUSTEE. Subject to the
provisions of Section 7.01:
(a) the Trustee may conclusively rely and shall be protected in
acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it in good
faith to be genuine and to have been signed or presented by the proper
party or parties;
(b) any request or direction of the Company mentioned herein shall
be sufficiently evidenced by an Officers' Certificate (unless other
evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors
37
may be evidenced to the Trustee by a copy thereof certified by the
Secretary or an Assistant Secretary of the Company;
(c) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless
other evidence be herein specifically prescribed) may, in the absence of
bad faith on its part, rely upon an Officers' Certificate;
(d) the Trustee may consult with counsel of its selection and any
advice or Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or
direction of any of the Noteholders pursuant to the provisions of this
Indenture, unless such Noteholders shall have offered to the Trustee
security or indemnity reasonably satisfactory to it against the costs,
expenses (including reasonable attorney's fees and expenses) and
liabilities which might be incurred by it in compliance with such request
or direction;
(f) the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may, but shall not be
required to, make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or
attorney;
(g) the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed by it with due
care hereunder;
(h) the Trustee shall not be liable for any action taken,
suffered, or omitted to be taken by it in good faith and reasonably
believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture;
(i) the Trustee shall not be deemed to have knowledge 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 Notes and this
Indenture; and
(j) the rights, privileges, protections, immunities and benefits
given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in
each of its capacities hereunder, and to each agent, custodian and other
Person employed to act hereunder.
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SECTION 7.04. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF NOTES. The
recitals contained herein and in the Notes, except in the Trustee's certificate
of authentication, shall be taken as the statements of the Company and the
Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture, the Notes.
The Trustee shall not be accountable for the use or application by the Company
of any Notes or the proceeds thereof.
SECTION 7.05. MAY HOLD NOTES. The Trustee, any authentication agent,
any paying agent, any conversion agent, any Note registrar or any other agent of
the Company or the Trustee, in its individual or any other capacity, may become
the owner or pledgee of Notes, and, subject to Sections 7.08 and 7.13, may
otherwise deal with the Company and any other obligor upon the Notes with the
same rights it would have if it were not Trustee, authentication agent, paying
agent, conversion agent or Note registrar.
SECTION 7.06. MONIES TO BE HELD IN TRUST. Money held by the Trustee
in trust hereunder need not be segregated from other funds except to the extent
required by law. The Trustee shall be under no liability for interest on any
money received by it hereunder except as otherwise agreed in writing with the
Company.
SECTION 7.07. COMPENSATION AND REIMBURSEMENT. The Company agrees (1)
to pay to the Trustee from time to time such compensation as shall be agreed in
writing between the Company and the Trustee for all services rendered by it
hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust); (2) except as
otherwise expressly provided herein, to reimburse the Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the
reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its gross negligence or bad faith; and (3) to indemnify each of
the Trustee and any predecessor Trustee for, and to hold it harmless against,
any and all loss, liability, damage, claim or expense, including taxes (other
than taxes based on the income of the Trustee) incurred without gross negligence
or bad faith on its part, arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses, including
reasonable attorney's fees and expenses, of defending itself against any claim
(whether asserted by the Company, a Noteholder or any other Person) or liability
in connection with the exercise or performance of any of its powers or duties
hereunder.
The Trustee shall have a lien prior to the Notes as to all property
and funds held by it hereunder for any amount owing it or any predecessor
Trustee pursuant to this Section 7.07, except with respect to funds held in
trust for the benefit of the holders of particular Notes.
When the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 6.01(d) or 6.01(e), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency or
other similar law.
39
SECTION 7.08. DISQUALIFICATION; CONFLICTING INTERESTS. If the
Trustee has or shall acquire a conflicting interest within the meaning of the
Trust Indenture Act, the Trustee shall either eliminate such interest or resign,
to the extent and in the manner provided by, and subject to the provisions of
and this Indenture.
SECTION 7.09. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY. There shall
at all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital
and surplus of at least $50,000,000 and has an office located in the Borough of
Manhattan, The City of New York. If such Person publishes reports of condition
at least annually, pursuant to law or to the requirements of its supervising or
examining authority, then for the purposes of this Section 7.09, the combined
capital and surplus of such Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. If
at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 7.09, it shall resign immediately in the manner and
with the effect hereinafter specified in this Article 7.
SECTION 7.10. RESIGNATION AND REMOVAL OF TRUSTEE; APPOINTMENT OF
SUCCESSOR. (a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article 7 shall become effective until the
acceptance of appointment by the successor Trustee under Section 7.11.
(b) The Trustee may resign at any time by giving written notice
thereof to the Company. If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee.
(c) The Trustee may be removed at any time by act of the holders
of a majority in principal amount of the outstanding Notes, delivered to the
Trustee and the Company. If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of removal, the Trustee being removed may petition any court of
competent jurisdiction for the appointment of a successor.
(d) If at any time:
(i) the Trustee shall fail to comply with Section 7.08
after written request therefor by the Company or by any Noteholder who
has been a bona fide holder of a Note for at least six months, or
(ii) the Trustee shall cease to be eligible under Section
7.09 and shall fail to resign after written request therefor by the
Company or by any such Noteholder, or
(iii) the Trustee shall become incapable of acting or shall
be adjudged a bankrupt or insolvent or a receiver of the Trustee or of
its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,
40
then, in any such case, the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, or, subject to the
provisions of Section 6.08, any Noteholder who has been a bona fide holder of a
Note or Notes for at least six (6) months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee.
(e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company, by a resolution of the Board of Directors, shall promptly appoint a
successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be
appointed by act of the holders of a majority in principal amount of the
outstanding Notes delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed
by the Company or the holders and accepted appointment in the manner hereinafter
provided, any Noteholder who has been a bona fide holder of a Note for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee.
(f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee to all
holders in the manner provided in Section 15.03. Each notice shall include the
name of the successor Trustee and the address of its Corporate Trust Office.
SECTION 7.11. ACCEPTANCE OF APPOINTMENT OF SUCCESSOR. Every
successor Trustee appointed hereunder shall execute, acknowledge and deliver to
the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on written request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder. Upon request of any such successor Trustee, the
Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all such rights, powers and
trusts.
No successor trustee shall accept its appointment unless at the time
of such acceptance such successor Trustee shall be qualified and eligible under
this Article 7.
Upon acceptance of appointment by a successor trustee as provided in
this Section 7.11, the Company (or the former trustee, at the written direction
of the Company) shall mail or cause to be mailed notice of the succession of
such trustee hereunder to the holders of Notes at their addresses as they shall
appear on the Note register. If the Company fails to mail such
41
notice within ten (10) days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Company.
SECTION 7.12. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article 7,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Notes shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Notes so authenticated with the same effect as if
such successor Trustee had itself authenticated such Notes.
SECTION 7.13. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. If
and when the Trustee shall be or become a creditor of the Company or any other
obligor upon the Notes, the Trustee shall be subject to the provisions of the
Trust Indenture Act (as if such Act applied) regarding the collection of the
claims against the Company or any such other obligor.
ARTICLE VIII
THE NOTEHOLDERS
SECTION 8.01. ACTION BY NOTEHOLDERS. Whenever in this Indenture it
is provided that the holders of a specified percentage in aggregate principal
amount of the Notes may take any action (including the making of any demand or
request, the giving of any notice, consent or waiver or the taking of any other
action), the fact that at the time of taking any such action, the holders of
such specified percentage have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by Noteholders
in person or by agent or proxy appointed in writing, or (b) by the record of the
holders of Notes voting in favor thereof at any meeting of Noteholders duly
called and held in accordance with the provisions of Article 9, or (c) by a
combination of such instrument or instruments and any such record of such a
meeting of Noteholders. Whenever the Company or the Trustee solicits the taking
of any action by the holders of the Notes, the Company or the Trustee may fix in
advance of such solicitation, a date as the record date for determining holders
entitled to take such action. The record date shall be not more than fifteen
(15) days prior to the date of commencement of initial solicitation of such
action without giving effect to any extension or amendment of such action or
solicitation.
SECTION 8.02. PROOF OF EXECUTION BY NOTEHOLDERS. Subject to the
provisions of Sections 7.03 and 9.05, proof of the execution of any instrument
by a Noteholder or its agent or proxy shall be sufficient if made in accordance
with such reasonable rules and regulations as may be prescribed by the Trustee
or in such manner as shall be satisfactory to the Trustee. The holding of Notes
shall be proved by the registry of such Notes or by a certificate of the Note
registrar.
The record of any Noteholders' meeting shall be proved in the manner
provided in Section 9.06.
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SECTION 8.03. WHO ARE DEEMED ABSOLUTE OWNERS. The Company, the
Trustee, any authenticating agent, any paying agent, any conversion agent and
any Note registrar may deem the Person in whose name such Note shall be
registered upon the Note register to be, and may treat it as, the absolute owner
of such Note (whether or not such Note shall be overdue and notwithstanding any
notation of ownership or other writing thereon made by any Person other than the
Company or any Note registrar) for the purpose of receiving payment of or on
account of the principal of, and interest on, such Note, for conversion of such
Note and for all other purposes; and neither the Company nor the Trustee nor any
authenticating agent, any paying agent nor any conversion agent nor any Note
registrar shall be affected by any notice to the contrary. All such payments so
made to any holder for the time being, or upon his order, shall be valid, and,
to the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for monies payable upon any such Note.
SECTION 8.04. COMPANY-OWNED NOTES DISREGARDED. In determining
whether the holders of the requisite aggregate principal amount of Notes have
concurred in any direction, consent, waiver or other action under this
Indenture, Notes which are owned by the Company or any other obligor on the
Notes or any Affiliate of the Company or any other obligor on the Notes shall be
disregarded and deemed not to be outstanding for the purpose of any such
determination; PROVIDED that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, consent, waiver or other
action, only Notes which a Responsible Officer knows are so owned shall be so
disregarded. Notes so owned which have been pledged in good faith may be
regarded as outstanding for the purposes of this Section 8.04 if the pledgee
shall establish to the satisfaction of the Trustee the pledgee's right to vote
such Notes and that the pledgee is not the Company, any other obligor on the
Notes or any Affiliate of the Company or any such other obligor. In the case of
a dispute as to such right, any good faith decision by the Trustee taken upon
the advice of counsel shall be full protection to the Trustee. Upon request of
the Trustee, the Company shall furnish to the Trustee promptly an Officers'
Certificate listing and identifying all Notes, if any, known by the Company to
be owned or held by or for the account of any of the above described Persons,
and, subject to Section 7.03, the Trustee shall be entitled to accept such
Officers' Certificate as conclusive evidence of the facts therein set forth and
of the fact that all Notes not listed therein are outstanding for the purpose of
any such determination.
SECTION 8.05. REVOCATION OF CONSENTS, FUTURE HOLDERS BOUND. At any
time prior to (but not after) the evidencing to the Trustee, as provided in
Section 8.01, of the taking of any action by the holders of the percentage in
aggregate principal amount of the Notes specified in this Indenture in
connection with such action, any holder of a Note which is shown by the evidence
to be included in the Notes the holders of which have consented to such action
may, by filing written notice with the Trustee at its Corporate Trust Office and
upon proof of holding as provided in Section 8.02, revoke such action so far as
concerns such Note. Except as aforesaid, any such action taken by the holder of
any Note shall be a continuing action and conclusive and binding upon such
holder and upon all future holders and owners of such Note and of any Notes
issued in exchange or substitution therefor, irrespective of whether any
notation in regard thereto is made upon such Note or any Note issued in exchange
or substitution therefor. An amendment, supplement or waiver becomes effective
in accordance with its terms and thereafter binds every holder.
43
ARTICLE IX
MEETINGS OF NOTEHOLDERS
SECTION 9.01. PURPOSE OF MEETINGS. A meeting of Noteholders may be
called at any time and from time to time pursuant to the provisions of this
Article 9 for any of the following purposes:
(1) to give any notice to the Company or to the Trustee or
to give any directions to the Trustee permitted under this Indenture,
or to consent to the waiving of any default or Event of Default
hereunder and its consequences, or to take any other action authorized
to be taken by Noteholders pursuant to any of the provisions of
Article 6;
(2) to remove the Trustee and nominate a successor trustee
pursuant to the provisions of Article 7;
(3) to consent to the execution of an indenture or
indentures supplemental hereto pursuant to the provisions of Section
10.02; or
(4) to take any other action authorized to be taken by or
on behalf of the holders of any specified aggregate principal amount
of the Notes under any other provision of this Indenture or under
applicable law.
SECTION 9.02. CALL OF MEETINGS BY TRUSTEE. The Trustee may at any
time call a meeting of Noteholders to take any action specified in Section 9.01,
to be held at such time and at such place as the Trustee shall determine. Notice
of every meeting of the Noteholders, setting forth the time and the place of
such meeting and in general terms the action proposed to be taken at such
meeting and the establishment of any record date pursuant to Section 8.01, shall
be mailed to holders of Notes at their addresses as they shall appear on the
Note register. Such notice shall also be mailed to the Company. Such notices
shall be mailed not less than twenty (20) nor more than ninety (90) days prior
to the date fixed for the meeting.
Any meeting of Noteholders shall be valid without notice if the
holders of all Notes then outstanding are present in person or by proxy or if
notice is waived before or after the meeting by the holders of all Notes
outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.
SECTION 9.03. CALL OF MEETINGS BY COMPANY OR NOTEHOLDERS. In case at
any time the Company, pursuant to a resolution of its Board of Directors, or the
holders of at least twenty-five (25%) in aggregate principal amount of the Notes
then outstanding, shall have requested the Trustee to call a meeting of
Noteholders, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed the
notice of such meeting within twenty (20) days after receipt of such request,
then the Company or such Noteholders may determine the time and the place for
such meeting and may call such meeting to take any action authorized in Section
9.01, by mailing notice thereof as provided in Section 9.02.
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SECTION 9.04. QUALIFICATIONS FOR VOTING. To be entitled to vote at
any meeting of Noteholders a person shall (a) be a holder of one or more Notes
on the record date pertaining to such meeting or (b) be a person appointed by an
instrument in writing as proxy by a holder of one or more Notes on the record
date pertaining to such meeting. The only persons who shall be entitled to be
present or to speak at any meeting of Noteholders shall be the persons entitled
to vote at such meeting and their counsel and any representatives of the Trustee
and its counsel and any representatives of the Company and its counsel.
SECTION 9.05. REGULATIONS. Notwithstanding any other provisions of
this Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Noteholders, in regard to proof of the holding of
Notes and of the appointment of proxies, and in regard to the appointment and
duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall think fit.
The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Noteholders as provided in Section 9.03, in which case the Company
or the Noteholders calling the meeting, as the case may be, shall in like manner
appoint a temporary chairman. A permanent chairman and a permanent secretary of
the meeting shall be elected by vote of the holders of a majority in principal
amount of the Notes represented at the meeting and entitled to vote at the
meeting except that any meeting called by the Company shall be chaired by a
representative of the Company and any meeting called by the Trustee may, at the
Trustee's election, be chaired by the Trustee.
Subject to the provisions of Section 8.04, at any meeting each
Noteholder or proxyholder shall be entitled to one vote for each $1,000
principal amount of Notes held or represented by him. If any vote cast or
counted or proposed to be cast or counted is challenged on the ground that such
Note is not outstanding, or does not comply with the provisions of Section 9.04,
the chairman of the meeting shall determine whether the holder of such Note is
authorized to act. The chairman of the meeting shall have no right to vote other
than by virtue of Notes held by him or instruments in writing as aforesaid duly
designating him as the proxy to vote on behalf of other Noteholders. Any meeting
of Noteholders duly called pursuant to the provisions of Section 9.02 or 10.02
may be adjourned from time to time by the holders of a majority of the aggregate
principal amount of Notes represented at the meeting, whether or not
constituting a quorum, and the meeting may be held as so adjourned without
further notice.
SECTION 9.06. VOTING. The vote upon any resolution submitted to any
meeting of Noteholders shall be by written ballot on which shall be subscribed
the signatures of the holders of Notes or of their representatives by proxy and
the outstanding principal amount of the Notes held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall be representatives of the Trustee, and who shall count all votes cast at
the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all
votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of Noteholders shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and affidavits by one or more persons
having
45
knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was mailed as provided in Section 9.02. The record
shall show the principal amount of the Notes voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the
matters therein stated, absent manifest error.
SECTION 9.07. NO DELAY OF RIGHTS BY MEETING. Nothing contained in
this Article 9 shall be deemed or construed to authorize or permit, by reason of
any call of a meeting of Noteholders or any rights expressly or impliedly
conferred hereunder to make such call, any hindrance or delay in the exercise of
any right or rights conferred upon or reserved to the Trustee or to the
Noteholders under any of the provisions of this Indenture or of the Notes.
ARTICLE X
SUPPLEMENTAL INDENTURES
SECTION 10.01. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
NOTEHOLDERS. The Company, when authorized by the resolutions of the Board of
Directors, and the Trustee may, from time to time, and at any time enter into an
indenture or indentures supplemental hereto for one or more of the following
purposes:
(a) to evidence the succession of another Person to the Company
and the assumption by any such successor of the covenants of the Company
pursuant to Article II; or
(b) to add to the covenants of the Company for the benefit of the
Noteholders, or to surrender any right or power herein conferred upon the
Company; or
(c) to evidence or provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Notes; or
(d) to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising
under this Indenture, which shall not be inconsistent with the provisions
of this Indenture; or
(e) to add to, change or eliminate any of the provisions of this
Indenture to permit or facilitate the issuance of Global Notes and matters
related thereto, PROVIDED that such action pursuant to this clause (e)
shall not adversely affect the interests of the Holders in any material
respect; or
(f) make provision with respect to the conversion rights of the
holders of Notes pursuant to the requirements of Section 14.06 and the
redemption obligations of the Company pursuant to the requirements of
Section 3.05(e).
46
Upon the written request of the Company, accompanied by a copy of the
resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any supplemental indenture, the Trustee
is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and
stipulations that may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not be
obligated to, but may in its discretion, enter into any supplemental indenture
that affects the Trustee's own rights, duties or immunities under this Indenture
or otherwise.
Any supplemental indenture authorized by the provisions of this
Section 10.01 may be executed by the Company and the Trustee without the consent
of the holders of any of the Notes at the time outstanding, notwithstanding any
of the provisions of Section 10.02.
Notwithstanding any other provision of the Indenture or the Notes, the
Registration Rights Agreement and the obligation to pay Liquidated Damages
thereunder may be amended, modified or waived in accordance with the provisions
of the Registration Rights Agreement.
SECTION 10.02. SUPPLEMENTAL INDENTURE WITH CONSENT OF NOTEHOLDERS.
With the consent (evidenced as provided in Article 8) of the holders of not less
than a majority in aggregate principal amount of the Notes at the time
outstanding, the Company, when authorized by the resolutions of the Board of
Directors, and the Trustee may, from time to time and at any time, enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or any supplemental indenture or of modifying in any manner the
rights of the holders of the Notes; PROVIDED that no such supplemental indenture
shall (i) change the fixed maturity of any Note or reduce the rate or change the
time of payment of interest thereon or reduce the principal amount thereof or
reduce any amount payable on redemption or repurchase thereof or impair the
right of any Noteholder to institute suit for the payment thereof or make the
principal thereof or interest thereon payable in any coin or currency or payable
at any place other than that provided in this Indenture or the Notes, or change
the obligation of the Company to redeem any Note on a redemption date in a
manner adverse to the holders of Notes or change the obligation of the Company
to redeem any Note upon the happening of a Designated Event in a manner adverse
to the holders of Notes or change the obligation of the Company to repurchase
any Note on a Repurchase Date in a manner adverse to the holders of Notes or
reduce the Conversion Rate, otherwise than in accordance with the terms of this
Indenture, or impair the right to convert the Notes into Common Stock subject to
the terms set forth herein, including Section 14.06 or reduce the quorum or the
voting requirements under the Indenture, or modify any of the provisions of this
Section 10.02 or Section 6.07, except to increase any such percentage or to
provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the holder of each Note so affected, or change any
obligation of the Company to maintain an office or agency in the places and for
the purposes set forth in Section 4.01, in each case, without the consent of the
holder of each Note so affected or (ii) reduce the aforesaid percentage of
Notes, the holders of which are required to consent to any such supplemental
indenture or to waive any past Event of Default, without the consent of the
holders of all Notes affected thereby.
47
Upon the written request of the Company, accompanied by a copy of the
resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any such supplemental indenture, and upon
the filing with the Trustee of evidence of the consent of Noteholders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.
It shall not be necessary for the consent of the Noteholders under
this Section 10.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.
SECTION 10.03. EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution
of any supplemental indenture pursuant to the provisions of this Article 10,
this Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitation of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the holders
of Notes shall thereafter be determined, exercised and enforced hereunder,
subject in all respects to such modifications and amendments and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.
SECTION 10.04. NOTATION ON NOTES. Notes authenticated and delivered
after the execution of any supplemental indenture pursuant to the provisions of
this Article 10 may bear a notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture. If the Company or the
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Trustee and the Company, to any modification of this Indenture contained
in any such supplemental indenture may, at the Company's expense, be prepared
and executed by the Company, authenticated by the Trustee (or an authenticating
agent duly appointed by the Trustee pursuant to Section 15.11) and delivered in
exchange for the Notes then outstanding, upon surrender of such Notes then
outstanding.
SECTION 10.05. EVIDENCE OF COMPLIANCE OF SUPPLEMENTAL INDENTURE TO BE
FURNISHED TO TRUSTEE. Prior to entering into any supplemental indenture, the
Trustee may request an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant hereto
complies with the requirements of this Article 10.
ARTICLE XI
MERGER, CONSOLIDATION, ETC.
SECTION 11.01. MERGERS, CONSOLIDATIONS AND CERTAIN TRANSFERS, LEASES
AND ACQUISITIONS OF ASSETS. The Company shall not consolidate with or merge into
any other Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, unless:
(a) in case the Company shall consolidate with or merge into
another Person or convey, transfer or lease its properties and assets
substantially as an entirety to any
48
Person, the Person formed by such consolidation or into which the Company
is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company substantially as an
entirety shall be a corporation, partnership or trust, shall be organized
and validly existing under the laws of the United States of America, any
State thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in
form satisfactory to the Trustee, the due and punctual payment of the
principal of, and interest on, all the Notes and the performance or
observance of every covenant and obligation of this Indenture, the Notes
and the Registration Rights Agreement on the part of the Company to be
performed or observed; and
(b) immediately after giving effect to such transaction, no Event
of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, shall have happened and be continuing.
SECTION 11.02. SUCCESSOR TO BE SUBSTITUTED. Upon any consolidation of
the Company with, or merger of the Company into, any other Person or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with Section 11.01, the successor
Person formed by such consolidation or into which the Company is merged or to
which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Notes.
SECTION 11.03. OPINION OF COUNSEL TO BE GIVEN TRUSTEE. The Trustee
shall receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any such consolidation, merger, sale, conveyance or lease and any
such assumption complies with the provisions of this Article 11.
ARTICLE XII
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 12.01. DISCHARGE OF INDENTURE. When (a) the Company shall
deliver to the Trustee for cancellation all Notes theretofore authenticated
(other than any Notes that have been destroyed, lost or stolen and in lieu of or
in substitution for which other Notes shall have been authenticated and
delivered) and not theretofore canceled, or (b) all the Notes not theretofore
canceled or delivered to the Trustee for cancellation shall have become due and
payable, or are by their terms to become due and payable within one year or are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and the Company shall
deposit with the Trustee, in trust, funds sufficient to pay at maturity or upon
redemption or repurchase of all of the Notes (other than any Notes that shall
have been mutilated, destroyed, lost or stolen and in lieu of or in substitution
for which other Notes shall have been authenticated and delivered) not
theretofore canceled or delivered to the Trustee for cancellation, including
principal and interest due or to become due to such date of maturity or
redemption date or Repurchase Date, as the case may be, accompanied by a
verification report, as to the sufficiency of the deposited amount, from an
independent certified
49
accountant or other financial professional satisfactory to the Trustee, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
by the Company, as the case may be, then this Indenture shall cease to be of
further effect (except in the case of clause (b) as to (i) remaining rights of
registration of transfer, substitution and exchange and conversion of Notes and
(ii) rights hereunder of Noteholders to receive payments of principal of, and
interest on, the Notes and the other rights, duties and obligations of
Noteholders, as beneficiaries hereof with respect to the amounts, if any, so
deposited with the Trustee). The rights, obligations and immunities of the
Trustee hereunder shall survive any discharge pursuant to paragraph (a) and (b)
of this Section 12.01. The Trustee, on written demand of the Company accompanied
by an Officers' Certificate and an Opinion of Counsel as required by Section
11.05 and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture; the
Company, however, hereby agrees to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred by the Trustee and to
compensate the Trustee for any services thereafter reasonably and properly
rendered by the Trustee in connection with this Indenture or the Notes.
SECTION 12.02. DEPOSITED MONIES TO BE HELD IN TRUST BY TRUSTEE.
Subject to Section 12.04, all monies deposited with the Trustee pursuant to
Section 12.01, shall be held in trust for the sole benefit of the Noteholders,
and such monies shall be applied by the Trustee to the payment, either directly
or through any paying agent (including the Company if acting as the paying
agent), to the holders of the particular Notes for the payment or redemption of
which such monies have been deposited with the Trustee, of all sums due and to
become due thereon for principal and interest.
SECTION 12.03. PAYING AGENT TO REPAY MONIES HELD. Upon the
satisfaction and discharge of this Indenture, all monies then held by any paying
agent of the Notes (other than the Trustee) shall, upon written request of the
Company, be repaid to it or paid to the Trustee, and thereupon such paying agent
shall be released from all further liability with respect to such monies.
SECTION 12.04. RETURN OF UNCLAIMED MONIES. Subject to the
requirements of applicable law and this Indenture, any monies deposited with or
paid to the Trustee for payment of the principal of, or interest on, Notes and
not applied but remaining unclaimed by the holders of Notes for two years after
the date upon which the principal of, or interest on, such Notes, as the case
may be, shall have become due and payable, shall be repaid to the Company by the
Trustee on demand and all liability of the Trustee shall thereupon cease with
respect to such monies; and the holder of any of the Notes shall thereafter look
only to the Company for any payment that such holder may be entitled to collect
unless an applicable abandoned property law designates another Person.
SECTION 12.05. REINSTATEMENT. If the Trustee or the paying agent is
unable to apply any money in accordance with Section 12.02 by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, the Company's obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 12.01 until such time as the Trustee or the paying
agent is permitted to apply all such money in accordance with Section 12.02;
PROVIDED that if the Company makes any payment of interest on or principal of
any Note following the
50
reinstatement of its obligations, the Company shall be subrogated to the rights
of the holders of such Notes to receive such payment from the money held by the
Trustee or paying agent.
ARTICLE XIII
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
SECTION 13.01. INDENTURE AND NOTES SOLELY CORPORATE OBLIGATIONS. No
recourse for the payment of the principal of or interest on any Note, or for any
claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company in this Indenture or
in any supplemental indenture or in any Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, employee, agent, officer, director or subsidiary, as such, past,
present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the Notes.
ARTICLE XIV
CONVERSION OF NOTES
SECTION 14.01. RIGHT TO CONVERT. (a) Subject to and upon compliance
with the provisions of this Indenture, the holder of any Note shall have the
right, at such holder's option, to convert the principal amount of the Note, or
any portion of such principal amount which is a multiple of $1,000, into fully
paid and non-assessable shares of Common Stock (as such shares shall then be
constituted) at the Conversion Rate in effect at such time, by surrender of the
Note so to be converted in whole or in part, together with any required funds
under the circumstances described in this Section 14.01, in the manner provided
in Section 14.02. The Notes shall be convertible only upon the occurrence of one
of the following events:
(i) during any fiscal quarter commencing after September 30, 2003,
if the Closing Sale Price exceeds 120% of the Conversion Price for at least
20 Trading Days in the 30 consecutive Trading Day period ending on the last
Trading Day of the immediately preceding fiscal quarter (it being
understood for purposes of this Section 14.01(a)(i) that the Conversion
Price in effect at the close of business on each of the 30 consecutive
Trading Days should be used and such calculation shall give effect to any
event referred to in Section 14.05 or 14.06 occurring during such 30
Trading Day period);
(ii) during each of the five Business Day period immediately after
any five consecutive Trading Day period in which the Trading Price per
$1,000 principal amount of the Notes for each day of such five Trading Day
period was less than 95% of the product of the Closing Sale Price on the
applicable date and the Conversion Rate; PROVIDED, however, the Notes shall
not be convertible pursuant to this Section 14.01(a)(ii) after July 15,
2028 if on any Trading Day during such five Trading Day period the Closing
Sale Price was between 100% and 120% of the then current Conversion Price
(it being understood for purposes of this Section 14.01(a)(ii) that the
Conversion Rate in effect at the close of business on each of the five
consecutive Trading Days should be
51
used and such calculation shall give effect to any event referred to in
Section 14.05 or 14.06 occurring during such five Trading Day period);
(iii) if such Note has been called for redemption, at any time on or
after the date the notice of redemption has been given until the close of
business on the Business Day immediately preceding the redemption date; or
(iv) as provided in Section (b) of this Section 14.01.
Upon receipt by the Trustee of a demand for conversion from a
Noteholder pursuant to this Section, the Trustee (or other conversion agent
appointed by the Company) shall, on behalf of the Company, confirm (based on
information provided by the Company) whether the Notes shall be convertible as a
result of the occurrence of an event specified in clause (i) above, but, in any
event, the Company shall be obligated at all times to determine whether the
Notes shall be convertible as a result of the occurrence of an event specified
in clause (i) of this Section, and, if the Notes shall be convertible, the
Trustee (or other conversion agent appointed by the Company) shall promptly
deliver to the Company and the Trustee (if the Trustee is not the conversion
agent) written notice thereof. Whenever the Notes shall become convertible
pursuant to this Section 14.01, the Company or, at the Company's request, the
Trustee in the name and at the expense of the Company, shall notify the holders
of the event triggering such convertibility in the manner provided in Section
15.03, and the Company shall also publicly announce such information and publish
it on the Company's web site. Any notice so given shall be conclusively presumed
to have been duly given, whether or not the holder receives such notice.
The Trustee (or other conversion agent appointed by the Company) shall
have no obligation to determine the Trading Price under clause (ii) of this
Section 14.01 unless the Company has requested such a determination; and the
Company shall have no obligation to make such request unless a holder provides
it with reasonable evidence that the Trading Price per $1,000 principal amount
of Notes would be less than 95% of the product of the Closing Sale Price and the
number of shares of Common Stock issuable upon conversion of $1,000 principal
amount of Notes. If such evidence is provided, the Company shall instruct the
Trustee (or other conversion agent) to determine the Trading Price of the Notes
beginning on the next Trading Day and on each successive Trading Day until the
Trading Price per $1,000 principal amount of Notes is greater than or equal to
95% of the product of the Closing Sale Price and the number of shares issuable
upon conversion of $1,000 principal amount of the Notes.
(b) In addition, if:
(i) (A) the Company distributes to all holders of its
Common Stock rights or warrants entitling them (for a period expiring
within 45 days of the record date for the determination of the stockholders
entitled to receive such distribution) to subscribe for or purchase shares
of Common Stock, at a price per share less than the average of the Closing
Sale Price for the ten Trading Days immediately preceding, but not
including, the date such distribution is first publicly announced by the
Company, or
52
(B) the Company distributes to all holders of its Common
Stock, assets (including cash), debt securities or rights to purchase
its securities, where the Fair Market Value of such distribution per
share of Common Stock exceeds 5% of the Closing Sale Price on the
Trading Day immediately preceding the date such distribution is first
publicly announced by the Company,
then, in either case, the Notes may be surrendered for conversion at
any time on and after the date that the Company gives notice to the
holders of such distribution, which shall be not less than 20 days
prior to the Ex-Dividend Time for such distribution, until the earlier
of the close of business on the Business Day immediately preceding,
but not including, the Ex-Dividend Time or the date the Company
publicly announces that such distribution will not take place;
PROVIDED that no adjustment to the Conversion Rate or the ability of a
holder of a Note to convert will be made if the holder will otherwise
participate in such distribution without conversion; or
(ii) the Company consolidates with, or merges with or into,
another Person or is a party to a binding share exchange or conveys,
transfers, sells, leases or otherwise disposes of all or substantially
all of its properties and assets, in each case, pursuant to which our
common stock would be converted into cash, securities or other
property, then the Notes may be surrendered for conversion at any time
from and after the date fifteen (15) days prior to the anticipated
effective date of the transaction and ending on and including the date
fifteen (15) days after the consummation of the transaction. The Board
of Directors shall determine the anticipated effective date of the
transaction, and such determination shall be conclusive and binding on
the holders and shall be publicly announced by the Company and posted
on its web site not later than two Business Day prior to such 15th
day.
"EX-DIVIDEND TIME" means, with respect to any distribution on shares
of Common Stock, the first date on which the Common Stock trades, regular way,
on the principal securities market on which the Common Stock are then traded
without the right to receive such distribution.
(c) A Note in respect of which a holder is electing to exercise
its option to require redemption upon a Designated Event pursuant to Section
3.05(a) or repurchase pursuant to Section 3.06 may be converted only if such
holder withdraws its election in accordance with Section 3.05(b) or Section
3.08, respectively. A holder of Notes is not entitled to any rights of a holder
of Common Stock until such holder has converted his Notes to Common Stock, and
only to the extent such Notes are deemed to have been converted to Common Stock
under this Article 14.
SECTION 14.02. CONVERSION PROCEDURES. To convert a Note, a holder
must (a) complete and manually sign the Conversion Notice or a facsimile of the
Conversion Notice (a "CONVERSION NOTICE") in the form set forth on the reverse
of the Note and deliver such notice to the conversion agent, (b) surrender the
Note to the conversion agent, (c) furnish appropriate endorsements and transfer
documents if required by the Registrar or the conversion agent, (d)
53
pay any transfer or similar tax, if required and (e) if required, pay funds
equal to the interest payable on the next interest payment date. The date,
within the time periods set forth in Section 14.01, on which the holder
satisfies all of those requirements is the "CONVERSION DATE." Except as provided
in Section 14.05(j), the Company shall deliver to the holder through the
conversion agent, no later than the third Business Day following the Conversion
Date, a certificate for the number of whole shares of Common Stock issuable upon
the conversion and, if applicable, cash in lieu of any fractional shares
pursuant to Section 14.03.
In the case of a Global Note, the Conversion Notice shall be completed
by a Depositary participant on behalf of the beneficial holder. Conversion
Notices may be delivered and such Notes may be surrendered for conversion in
accordance with the applicable procedures of the Depositary as in effect from
time to time. In order to cause a Depositary participant to complete a
Conversion Notice, a beneficial holder must complete, or cause to be completed,
the appropriate instruction form for conversion pursuant to the Depositary's
book-entry conversion program. The Person in whose name the Common Stock
certificate is registered shall be deemed to be a shareholder of record at the
close of business on the applicable Conversion Date; PROVIDED, HOWEVER, that if
any such date is a date when the stock transfer books of the Company are closed,
such Person shall be deemed a shareholder of record as of the next date on which
the stock transfer books of the Company are open.
No payment or adjustment shall be made for dividends on, or other
distributions with respect to, any Common Stock except as provided in this
Article 14. On conversion of a Note, except for conversion during the period
from the close of business on any record date immediately preceding any interest
payment date to the close of business on the Business Day immediately preceding
such interest payment date, in which case the holder on such record date shall
receive the interest payable on such interest payment date, that portion of
accrued and unpaid interest on the converted Note attributable to the period
from the most recent interest payment date (or, if no interest payment date has
occurred, from the date of original issuance of the Notes) through the
Conversion Date shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the holder thereof through delivery of the
Common Stock (together with the cash payment, if any, in lieu of fractional
shares) in exchange for the Note being converted pursuant to the provisions
hereof, and the Fair Market Value of such shares of Common Stock (together with
any such cash payment in lieu of fractional shares) shall be treated as issued,
to the extent thereof, first in exchange for accrued and unpaid interest accrued
through the Conversion Date and the balance, if any, of such Fair Market Value
of such Common Stock (and any such cash payment) shall be treated as issued in
exchange for the principal amount of the Note being converted pursuant to the
provisions hereof.
If a holder converts more than one Note at the same time, the number
of shares of Common Stock issuable upon the conversion shall be based on the
aggregate principal amount of Notes converted.
Upon surrender of a Note that is converted in part, the Company shall
execute, and the Trustee shall authenticate and deliver to the holder, a new
Note equal in principal amount to the principal amount of the unconverted
portion of the Note surrendered.
54
Notes or portions thereof surrendered for conversion during the period
from the close of business on any record date immediately preceding any interest
payment date to the close of business on the Business Day immediately preceding
such interest payment date shall be accompanied by payment to the Company or its
order, in immediately available funds or other funds acceptable to the Company,
of an amount equal to the interest payable on such interest payment date with
respect to the principal amount of Notes or portions thereof being surrendered
for conversion; PROVIDED that no such payment need be made if (1) the Company
has specified a redemption date that occurs during the period from the close of
business on a record date to the close of business on the Business Day
immediately preceding the interest payment date to which such record date
relates, (2) the Company has specified a Designated Event Redemption Date during
such period or (3) any overdue interest exists on the Conversion Date with
respect to the Notes converted, but only to the extent of overdue interest.
SECTION 14.03. CASH PAYMENTS IN LIEU OF FRACTIONAL SHARES. No
fractional shares of Common Stock or scrip certificates representing fractional
shares shall be issued upon conversion of Notes. If more than one Note shall be
surrendered for conversion at one time by the same holder, the number of full
shares that shall be issuable upon conversion shall be computed on the basis of
the aggregate principal amount of the Notes (or specified portions thereof to
the extent permitted hereby) so surrendered. If any fractional share of stock
would be issuable upon the conversion of any Note or Notes, the Company shall
make an adjustment and payment therefor in cash at the current market price
thereof to the holder of Notes. For purposes of this Section 14.03, the "CURRENT
MARKET PRICE" of a share of Common Stock shall be the Closing Sale Price on the
last Business Day immediately preceding the day on which the Notes (or specified
portions thereof) are deemed to have been converted.
SECTION 14.04. CONVERSION RATE. Each $1,000 principal amount of the
Notes shall be convertible into the number of shares of Common Stock specified
in the form of Note (herein called the "CONVERSION RATE") attached as Exhibit A
hereto, subject to adjustment as provided in this Article 14.
SECTION 14.05. ADJUSTMENT OF CONVERSION RATE. The Conversion Rate
shall be adjusted from time to time by the Company as follows:
(a) In case the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding Common Stock in shares of
Common Stock, the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect at
the opening of business on the date following the date fixed for the
determination of stockholders entitled to receive such dividend or other
distribution by a fraction,
(i) the numerator of which shall be the sum of the number
of shares of Common Stock outstanding at the close of business on the
date fixed for the determination of stockholders entitled to receive
such dividend or other distribution plus the total number of shares of
Common Stock constituting such dividend or other distribution; and
55
(ii) the denominator of which shall be the number of shares
of Common Stock outstanding at the close of business on the date fixed
for such determination,
such increase to become effective immediately after the opening of business
on the day following the date fixed for such determination. If any dividend
or distribution of the type described in this Section 14.05(a) is declared
but not so paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.
(b) In case the Company shall issue rights or warrants to all
holders of its outstanding shares of Common Stock entitling them (for a
period expiring within forty-five (45) days after the date fixed for
determination of stockholders entitled to receive such rights or warrants)
to subscribe for or purchase shares of Common Stock at a price per share
less than the Average Market Price on the date such issuance is first
publicly announced by the Company, the Conversion Rate shall be increased
so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to the date fixed for
determination of stockholders entitled to receive such rights or warrants
by a fraction,
(i) the numerator of which shall be the number of shares
of Common Stock outstanding at the close of business on the date fixed
for determination of stockholders entitled to receive such rights or
warrants plus the total number of additional shares of Common Stock
offered for subscription or purchase, and
(ii) the denominator of which shall be the sum of the
number of shares of Common Stock outstanding at the close of business
on the date fixed for determination of stockholders entitled to
receive such rights or warrants plus the number of shares that the
aggregate offering price of the total number of shares so offered
would purchase at such Average Market Price.
Such adjustment shall be successively made whenever any such
rights or warrants are issued, and shall become effective immediately after
the opening of business on the day following the date fixed for
determination of stockholders entitled to receive such rights or warrants.
To the extent that shares of Common Stock are not delivered after the
expiration of such rights or warrants, the Conversion Rate shall be
readjusted to the Conversion Rate that would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on
the basis of delivery of only the number of shares of Common Stock actually
delivered. If such rights or warrants are not so issued, the Conversion
Rate shall again be adjusted to be the Conversion Rate that would then be
in effect if such issuance had not been so declared or made. In determining
whether any rights or warrants entitle the holders to subscribe for or
purchase shares of Common Stock at less than such Average Market Price, and
in determining the aggregate offering price of such shares of Common Stock,
there shall be taken into account any consideration received by the Company
for such rights or warrants and any amount payable on exercise or
conversion thereof, the value of such consideration, if other than cash, to
be determined by the Board of Directors.
56
(c) In case outstanding shares of Common Stock shall be subdivided
into a greater number of shares of Common Stock, the Conversion Rate in
effect at the opening of business on the day following the day upon which
such subdivision becomes effective shall be proportionately increased, and
conversely, in case outstanding shares of Common Stock shall be combined
into a smaller number of shares of Common Stock, the Conversion Rate in
effect at the opening of business on the day following the day upon which
such combination becomes effective shall be proportionately reduced, such
increase or reduction, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which such
subdivision or combination becomes effective.
(d) In case the Company shall, by dividend or otherwise,
distribute to all holders of its Common Stock shares of any class of
capital stock of the Company or evidences of its indebtedness or assets
(including cash and securities, but excluding any rights or warrants
referred to in Section 14.05(b), and excluding any dividend or distribution
referred to in Section 14.05(a) (any of the foregoing hereinafter in this
Section 14.05(d)) called the "DISTRIBUTION")), then, in each such case
(unless the Company elects to reserve such Distribution for distribution to
the Noteholders upon the conversion of the Notes so that any such holder
converting Notes will receive upon such conversion, in addition to the
shares of Common Stock to which such holder is entitled, the amount and
kind of such Distribution which such holder would have received if such
holder had converted its Notes into Common Stock immediately prior to the
Record Date), the Conversion Rate shall be increased so that the same shall
be equal to the rate determined by multiplying the Conversion Rate in
effect at the close of business on the Record Date with respect to such
distribution by a fraction,
(i) the numerator of which shall be the Average Market
Price on such Record Date, and
(ii) the denominator of which shall be the Average Market
Price on such Record Date less (A) in the case of Distributions other
than cash, the Fair Market Value (as determined by the Board of
Directors, whose determination shall be conclusive, and described in a
resolution of the Board of Directors) on the Record Date of the
portion of such Distributions applicable to one share of Common Stock
and (B) in the case of Distributions of cash, the amount of such
Distributions applicable to one share of Common Stock,
such adjustment to become effective immediately prior to the opening of
business on the day following such Record Date; PROVIDED that if the then
Fair Market Value (as so determined) of the portion of the Distribution so
distributed applicable to one share of Common Stock is equal to or greater
than the Average Market Price on the Record Date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Noteholder shall
have the right to receive upon conversion the amount of Distribution such
holder would have received had such holder converted each Note on the
Record Date. A holder who converts a Note pursuant to Section 14.01(b)
shall not be entitled to any adjustment to the Conversion Rate with respect
to such Note so converted. If such dividend or distribution is not so paid
or made, the Conversion Rate shall again be
57
adjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared. If the Board of Directors
determines the Fair Market Value of any distribution for purposes of this
Section 14.05(d) by reference to the actual or when issued trading market
for any securities, it must in doing so consider the prices in such market
over the same period used in computing the Average Market Price on the
applicable Record Date. Notwithstanding the foregoing, if the Distribution
distributed by the Company to all holders of its Common Stock consists of
capital stock of, or similar equity interests in, a Subsidiary or other
business unit, the Conversion Rate shall be increased so that the same
shall be equal to the rate determined by multiplying the Conversion Rate in
effect on the Record Date with respect to such distribution by a fraction:
(i) the numerator of which shall be the sum of (x) the
average Closing Sale Price over the ten consecutive Trading Day period
(the "SPINOFF VALUATION PERIOD") commencing on and including the fifth
Trading Day after the date on which "ex-dividend trading" commences on
the Common Stock on the New York Stock Exchange or such other national
or regional exchange or market on which the Common Stock is then
listed or quoted and (y) the average Fair Market Value (as determined
by the Board of Directors, whose determination shall be conclusive,
and described in a resolution of the Board of Directors) over the
Spinoff Valuation Period of the portion of the Distribution so
distributed applicable to one share of Common Stock; and
(ii) the denominator of which shall be the average Closing
Sale Price over the Spinoff Valuation Period,
such adjustment to become effective immediately prior to the opening of
business on the day following such Record Date; PROVIDED that the Company
may in lieu of the foregoing adjustment make adequate provision so that
each Noteholder shall have the right to receive upon conversion the amount
of Distribution such holder would have received had such holder converted
each Note on the Record Date with respect to such distribution.
Rights or warrants distributed by the Company to all holders
of Common Stock entitling the holders thereof to subscribe for or purchase
shares of the Company's capital stock (either initially or under certain
circumstances), which rights or warrants, until the occurrence of a
specified event or events ("TRIGGER EVENT"): (i) are deemed to be
transferred with such shares of Common Stock; (ii) are not exercisable; and
(iii) are also issued in respect of future issuances of Common Stock, shall
be deemed not to have been distributed for purposes of this Section 14.05
(and no adjustment to the Conversion Rate under this Section 14.05 will be
required) until the occurrence of the earliest Trigger Event, whereupon
such rights and warrants shall be deemed to have been distributed and an
appropriate adjustment (if any is required) to the Conversion Rate shall be
made under this Section 14.05(d). If any such right or warrant, including
any such existing rights or warrants distributed prior to the date of this
Indenture, are subject to events, upon the occurrence of which such rights
or warrants become exercisable to purchase different securities, evidences
of indebtedness or other assets, then the date of the occurrence of any and
each such event shall be deemed to be the date of distribution and record
date
58
with respect to new rights or warrants with such rights (and a termination
or expiration of the existing rights or warrants without exercise by any of
the holders thereof). In addition, in the event of any distribution (or
deemed distribution) of rights or warrants, or any Trigger Event or other
event (of the type described in the preceding sentence) with respect
thereto that was counted for purposes of calculating a distribution amount
for which an adjustment to the Conversion Rate under this Section 14.05 was
made, (1) in the case of any such rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the
Conversion Rate shall be readjusted upon such final redemption or
repurchase to give effect to such distribution or Trigger Event, as the
case may be, as though it were a cash distribution, equal to the per share
redemption or repurchase price received by a holder or holders of Common
Stock with respect to such rights or warrants (assuming such holder had
retained such rights or warrants), made to all holders of Common Stock as
of the date of such redemption or repurchase, and (2) in the case of such
rights or warrants that shall have expired or been terminated without
exercise by any holders thereof, the Conversion Rate shall be readjusted as
if such rights and warrants had not been issued.
No adjustment of the Conversion Rate shall be made pursuant to
this Section 14.05(d) in respect of rights or warrants distributed or
deemed distributed on any Trigger Event to the extent that such rights or
warrants are actually distributed, or reserved by the Company for
distribution to holders of Notes upon conversion by such holders of Notes
to Common Stock.
For purposes of this Section 14.05(d) and Section 14.05(a) and
(b), any dividend or distribution to which this Section 14.05(d) is
applicable that also includes shares of Common Stock, or rights or warrants
to subscribe for or purchase shares of Common Stock (or both), shall be
deemed instead to be (1) a dividend or distribution of the evidences of
indebtedness, assets or shares of capital stock other than such shares of
Common Stock or rights or warrants (and any Conversion Rate adjustment
required by this Section 14.05(d) with respect to such dividend or
distribution shall then be made) immediately followed by (2) a dividend or
distribution of such shares of Common Stock or such rights or warrants (and
any further Conversion Rate adjustment required by Sections 14.05(a) and
(b) with respect to such dividend or distribution shall then be made),
except
(A) the Record Date of such dividend or distribution shall
be substituted as "the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution",
"the date fixed for the determination of stockholders entitled to
receive such rights or warrants" and "the date fixed for such
determination" within the meaning of Section 14.05(a) and (b) and
(B) any shares of Common Stock included in such dividend
or distribution shall not be deemed "outstanding at the close of
business on the date fixed for such determination" within the meaning
of Section 14.05(a).
(e) (A) In case a tender or exchange offer made by the Company or
any Subsidiary for all or any portion of the Common Stock (excluding any
transactions solely
59
involving odd lots of shares of Common Stock) shall expire and such tender
or exchange offer (as amended upon the expiration thereof) shall require
the payment to stockholders of consideration per share of Common Stock
having a Fair Market Value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a resolution of the
Board of Directors) that as of the last time (the "EXPIRATION TIME")
tenders or exchanges may be made pursuant to such tender or exchange offer
(as it may be amended) exceeds the Closing Sale Price on the Trading Day
next succeeding the Expiration Time, the Conversion Rate shall be increased
so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to the Expiration Time by a
fraction,
(i) the numerator of which shall be the sum of (x) the
Fair Market Value (determined as aforesaid) of the aggregate
consideration payable to stockholders based on the acceptance (up to
any maximum specified in the terms of the tender or exchange offer) of
all shares validly tendered or exchanged and not withdrawn as of the
Expiration Time (the shares deemed so accepted up to any such maximum,
being referred to as the "PURCHASED SHARES") and (y) the product of
the number of shares of Common Stock outstanding (less any Purchased
Shares) at the Expiration Time and the Closing Sale Price on the
Trading Day next succeeding the Expiration Time, and
(ii) the denominator of which shall be the number of shares
of Common Stock outstanding (including any tendered or exchanged
shares (including Purchased Shares)) at the Expiration Time multiplied
by the Closing Sale Price on the Trading Day next succeeding the
Expiration Time,
such adjustment to become effective immediately prior to the opening of
business on the day following the Expiration Time. If the Company is
obligated to purchase shares pursuant to any such tender or exchange offer,
but the Company is permanently prevented by applicable law from effecting
any such purchases or all such purchases are rescinded, the Conversion Rate
shall again be adjusted to be the Conversion Rate that would then be in
effect if such tender or exchange offer had not been made.
(B) In case of a tender or exchange offer made by a Person
other than the Company or any Subsidiary for an amount that increases the
offeror's ownership of Common Stock to more than 25% of the Common Stock
outstanding and shall involve the payment by such Person of consideration
per share of Common Stock having a Fair Market Value (as determined by the
Board of Directors, whose determination shall be conclusive, and described
in a resolution of the Board of Directors) that as of the last time (the
"OFFER EXPIRATION TIME") tenders or exchanges may be made pursuant to such
tender or exchange offer (as it shall have been amended) exceeds the
Closing Sale Price of a share of Common Stock on the Trading Day next
succeeding the Offer Expiration Time, and in which, as of the Offer
Expiration Time, the Board of Directors is not recommending rejection of
the offer, the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the Offer Expiration Time by a fraction,
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(i) the numerator of which shall be the sum of (x) the
Fair Market Value (determined as aforesaid) of the aggregate
consideration payable to the stockholders based on the acceptance (up
to any maximum specified in the terms of the tender or exchange offer)
of all shares validly tendered or exchanged and not withdrawn as of
the Offer Expiration Time (the shares deemed so accepted, up to any
such maximum, being referred to as the "ACCEPTED PURCHASED SHARES")
and (y) the product of the number of shares of Common Stock
outstanding (less any Accepted Purchased Shares) at the Offer
Expiration Time and the Closing Sale Price on the Trading Day next
succeeding the Offer Expiration Time, and
(ii) the denominator of which shall be the number of shares
of Common Stock outstanding (including any tendered or exchanged
shares (including Accepted Purchased Shares)) at the Offer Expiration
Time multiplied by the Closing Sale Price on the Trading Day next
succeeding the Offer Expiration Time,
such adjustment to become effective immediately prior to the opening of
business on the day following the Offer Expiration Time. If such Person is
obligated to purchase shares pursuant to any such tender or exchange offer,
but such Person is permanently prevented by applicable law from effecting
any such purchases or all such purchases are rescinded, the Conversion Rate
shall again be adjusted to be the Conversion Rate that would then be in
effect if such tender or exchange offer had not been made. Notwithstanding
the foregoing, the adjustment described in this Section 14.05(e)(B) shall
not be made if, as of the Offer Expiration Time, the offering documents
with respect to such offer disclose a plan or intention to cause the
Company to engage in any transaction described in Article 11 or a binding
share exchange.
(f) For purposes of this Section 14.05, the following terms shall
have the meaning indicated:
(1) "AVERAGE MARKET PRICE", as of any date of
determination, shall mean the average of the daily Closing Sale Prices
for the ten consecutive Trading Days immediately preceding (A) in the
case of a determination pursuant to Section 14.05(b), the date such
issuance or distribution is publicly announced and (B) otherwise, the
earlier of such date of determination and the day before the "ex" date
with respect to the issuance, distribution, subdivision or combination
requiring such computation immediately prior to the date in question.
For purpose of this paragraph, the term "ex" date, (1) when used with
respect to any issuance or distribution, means the first date on which
the Common Stock trades, regular way, on the relevant exchange or in
the relevant market from which the Closing Sale Price was obtained
without the right to receive such issuance or distribution, and (2)
when used with respect to any subdivision or combination of shares of
Common Stock, means the first date on which the Common Stock trades,
regular way, on such exchange or in such market after the time at
which such subdivision or combination becomes effective.
61
If another issuance, distribution, subdivision or
combination to which Section 14.05 applies occurs during the period
applicable for calculating "Average Market Price" pursuant to the
definition in the preceding paragraph, "Average Market Price" shall be
calculated for such period in a manner determined by the Board of
Directors to reflect the impact of such issuance, distribution,
subdivision or combination on the Closing Sale Price during such
period.
(2) "FAIR MARKET VALUE" shall mean the amount that a
willing buyer would pay a willing seller in an arm's-length
transaction.
(3) "RECORD DATE" shall mean, with respect to any
dividend, distribution or other transaction or event in which the
holders of Common Stock have the right to receive any cash, securities
or other property or in which the Common Stock (or other applicable
security) is exchanged for or converted into any combination of cash,
securities or other property, the date fixed for determination of
stockholders entitled to receive such cash, securities or other
property (whether such date is fixed by the Board of Directors or by
statute, contract or otherwise).
(g) The Company may make such increases in the Conversion Rate, in
addition to those required by Section 14.05(a), (b), (c), (d) or (e) as the
Board of Directors considers to be advisable to avoid or diminish any
income tax to any holders of Common Stock or rights to purchase Common
Stock resulting from any dividend or distribution of stock (or rights to
acquire stock) or from any event treated as such for income tax purposes.
To the extent permitted by applicable law, the Company from time to
time may increase the Conversion Rate by any amount for any period of time
if the period is at least twenty (20) days, the increase is irrevocable
during the period and the Board of Directors shall have made a
determination that such increase would be in the best interests of the
Company, which determination shall be conclusive. Whenever the Conversion
Rate is increased pursuant to the preceding sentence, the Company shall
mail to holders of record of the Notes a notice of the increase at least
fifteen (15) days prior to the date the increased Conversion Rate takes
effect, and such notice shall state the increased Conversion Rate and the
period during which it will be in effect.
(h) No adjustment in the Conversion Rate shall be required unless
such adjustment would require an increase or decrease of at least one
percent (1%) in such rate; PROVIDED that any adjustments that by reason of
this Section 14.05(h) are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under
this Article 14 shall be made by the Company and shall be made to the
nearest cent or to the nearest one-ten thousandth (1/10,000) of a share, as
the case may be. No adjustment need be made for rights to purchase Common
Stock pursuant to a Company plan for reinvestment of dividends or interest
or for any issuance of Common Stock or convertible or exchangeable
securities or rights to purchase Common Stock or convertible or
exchangeable securities.
62
(i) Whenever the Conversion Rate is adjusted as herein provided,
the Company shall promptly file with the Trustee and any conversion agent
other than the Trustee an Officers' Certificate setting forth the
Conversion Rate after such adjustment and setting forth a brief statement
of the facts requiring such adjustment. Unless and until a Responsible
Officer of the Trustee shall have received such Officers' Certificate, the
Trustee shall not be deemed to have knowledge of any adjustment of the
Conversion Rate and may assume that the last Conversion Rate of which it
has knowledge is still in effect. Promptly after delivery of such
certificate, the Company shall prepare a notice of such adjustment of the
Conversion Rate setting forth the adjusted Conversion Rate and the date on
which each adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Rate to the holder of each Note at his last
address appearing on the Note register provided for in Section 2.05 of this
Indenture, within twenty (20) days after execution thereof. Failure to
deliver such notice shall not affect the legality or validity of any such
adjustment.
(j) In any case in which this Section 14.05 provides that an
adjustment shall become effective immediately after (1) a record date or
Record Date for an event (including without limitation, any event described
in Section 14.05(d)), (2) the date fixed for the determination of
stockholders entitled to receive a dividend or distribution pursuant to
Section 14.05(a), (3) a date fixed for the determination of stockholders
entitled to receive rights or warrants pursuant to Section 14.05(b), or (4)
the Expiration Time for any tender or exchange offer pursuant to Section
14.05(e), (each a "DETERMINATION DATE"), the Company may elect to defer
until the occurrence of the applicable Adjustment Event (as hereinafter
defined) (x) issuing to the holder of any Note converted after such
Determination Date and before the occurrence of such Adjustment Event, the
additional shares of Common Stock or other securities issuable upon such
conversion by reason of the adjustment required by such Adjustment Event
over and above the Common Stock issuable upon such conversion before giving
effect to such adjustment and (y) paying to such holder any amount in cash
in lieu of any fraction pursuant to Section 14.03. For purposes of this
Section 14.05(j), the term "ADJUSTMENT EVENT" shall mean:
(i) in any case referred to in clause (1) hereof, the
occurrence of such event,
(ii) in any case referred to in clause (2) hereof, the date
any such dividend or distribution is paid or made,
(iii) in any case referred to in clause (3) hereof, the date
of expiration of such rights or warrants, and
(iv) in any case referred to in clause (4) hereof, the date
a sale or exchange of Common Stock pursuant to such tender or exchange
offer is consummated and becomes irrevocable.
(k) For purposes of this Section 14.05, the number of shares of
Common Stock at any time outstanding shall not include shares held in the
treasury of the
63
Company but shall include shares issuable in respect of scrip certificates
issued in lieu of fractions of shares of Common Stock. The Company will not
pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.
SECTION 14.06. EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR
SALE. If any of the following events occur, namely (i) any reclassification or
change of the outstanding shares of Common Stock (other than a subdivision or
combination to which Section 14.05(c) applies), (ii) any consolidation, merger
or combination of the Company with another Person as a result of which holders
of Common Stock shall be entitled to receive stock, other securities or other
property or assets (including cash) with respect to or in exchange for such
Common Stock, (iii) the Company is a party to a binding share exchange, or (iv)
any sale or conveyance of all or substantially all of the properties and assets
of the Company to any other Person as a result of which holders of Common Stock
shall be entitled to receive stock, other securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock, then the
Company or the successor or purchasing Person, as the case may be, shall execute
with the Trustee a supplemental indenture providing that each Note shall be
convertible into the kind and amount of shares of stock, other securities or
other property or assets (including cash) receivable upon such reclassification,
change, consolidation, merger, combination, binding share exchange, sale or
conveyance by a holder of a number of shares of Common Stock issuable upon
conversion of such Notes (assuming, for such purposes, a sufficient number of
authorized shares of Common Stock are available to convert all such Notes)
immediately prior to such reclassification, change, consolidation, merger,
combination, binding share exchange, sale or conveyance assuming such holder of
Common Stock did not exercise his rights of election, if any, as to the kind or
amount of stock, other securities or other property or assets (including cash)
receivable upon such reclassification, change, consolidation, merger,
combination, binding share exchange, sale or conveyance (PROVIDED that, if the
kind or amount of stock, other securities or other property or assets (including
cash) receivable upon such reclassification, change, consolidation, merger,
combination, binding share exchange, sale or conveyance is not the same for each
share of Common Stock in respect of which such rights of election shall not have
been exercised ("NONELECTING SHARE"), then for the purposes of this Section
14.06 the kind and amount of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation,
merger, combination, binding share exchange, sale or conveyance for each
non-electing share shall be deemed to be the kind and amount so receivable per
share by a plurality of the non-electing shares). Such supplemental indenture
shall provide for adjustments, which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article 14.
The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each holder of Notes, at its address appearing on the
Note register provided for in Section 2.05 of this Indenture, within twenty (20)
days after execution thereof. Failure to deliver such notice shall not affect
the legality or validity of such supplemental indenture.
The above provisions of this Section shall similarly apply to
successive reclassifications, changes, consolidations, mergers, combinations,
sales and conveyances.
Interest will not accrue on any cash into which the Notes are
convertible.
64
If this Section 14.06 applies to any event or occurrence, Section
14.05 shall not apply.
SECTION 14.07. TAXES ON SHARES ISSUED. The issue of stock
certificates on conversions of Notes shall be made without charge to the
converting Noteholder for any documentary, stamp or similar issue or transfer
tax in respect of the issue thereof. The Company shall not, however, be required
to pay any such tax which may be payable in respect of any transfer involved in
the issue and delivery of stock in any name other than that of the holder of any
Note converted, and the Company shall not be required to issue or deliver any
such stock certificate unless and until the Person or Persons requesting the
issue thereof shall have paid to the Company the amount of such tax or shall
have established to the satisfaction of the Company that such tax has been paid.
SECTION 14.08. RESERVATION OF SHARES, SHARES TO BE FULLY PAID;
COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS; LISTING OF COMMON STOCK. The Company
shall provide, free from preemptive rights, out of its authorized but unissued
shares or shares held in treasury, sufficient shares of Common Stock to provide
for the conversion of the Notes from time to time as such Notes are presented
for conversion.
Before taking any action which would cause an adjustment increasing
the Conversion Rate to an amount that would cause the Conversion Price to be
reduced below the then par value, if any, of the shares of Common Stock issuable
upon conversion of the Notes, the Company will take all corporate action which
may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue shares of such Common Stock at such adjusted
Conversion Rate.
The Company covenants that all shares of Common Stock which may be
issued upon conversion of Notes will upon issue be fully paid and non-assessable
by the Company and free from all taxes, liens and charges with respect to the
issue by the Company thereof.
The Company covenants that, if any shares of Common Stock to be
provided for the purpose of conversion of Notes hereunder require registration
with or approval of any governmental authority under any federal or state law
before such shares may be validly issued upon conversion, the Company will in
good faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the Commission (or any successor thereto), endeavor
to secure such registration or approval, as the case may be.
The Company further covenants that, if at any time the Common Stock
shall be listed on the Nasdaq National Market or any other national securities
exchange or automated quotation system, the Company will, if permitted by the
rules of such exchange or automated quotation system, list and keep listed, so
long as the Common Stock shall be so listed on such exchange or automated
quotation system, all Common Stock issuable upon conversion of the Note;
PROVIDED that if the rules of such exchange or automated quotation system permit
the Company to defer the listing of such Common Stock until the first conversion
of the Notes into Common Stock in accordance with the provisions of this
Indenture, the Company covenants to list such Common Stock issuable upon
conversion of the Notes in accordance with the requirements of such exchange or
automated quotation system at such time.
65
SECTION 14.09. RESPONSIBILITY OF TRUSTEE. The Trustee and any other
conversion agent shall not at any time be under any duty or responsibility to
any holder of Notes to determine the Conversion Rate or whether any facts exist
which may require any adjustment of the Conversion Rate, or with respect to the
nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture
provided to be employed, in making the same. The Trustee and any other
conversion agent shall not be accountable with respect to the validity or value
(or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of
any Note; and the Trustee and any other conversion agent make no representations
with respect thereto. Neither the Trustee nor any conversion agent shall be
responsible for any failure of the Company to issue, transfer or deliver any
shares of Common Stock or stock certificates or other securities or property or
cash upon the surrender of any Note for the purpose of conversion or to comply
with any of the duties, responsibilities or covenants of the Company contained
in this Article 14. Without limiting the generality of the foregoing, neither
the Trustee nor any conversion agent shall be under any responsibility to
determine the correctness of any provisions contained in any supplemental
indenture entered into pursuant to Section 14.06 relating either to the kind or
amount of shares of stock or securities or property (including cash) receivable
by Noteholders upon the conversion of their Notes after any event referred to in
such Section 14.06 or to any adjustment to be made with respect thereto, but,
subject to the provisions of Section 7.01, may accept as conclusive evidence of
the correctness of any such provisions, and shall be protected in relying upon,
the Officers' Certificate (which the Company shall be obligated to file with the
Trustee prior to the execution of any such supplemental indenture) with respect
thereto.
SECTION 14.10. NOTICE TO HOLDERS PRIOR TO CERTAIN ACTIONS. In case:
(a) the Company shall declare a dividend (or any other
distribution) on its Common Stock that would require an adjustment in the
Conversion Rate pursuant to Section 15.05; or
(b) the Company shall authorize the granting to the holders of all
or substantially all of its Common Stock of rights or warrants to subscribe
for or purchase any share of any class or any other rights or warrants; or
(c) of any reclassification or reorganization of the Common Stock
of the Company (other than a subdivision or combination of its outstanding
Common Stock, or a change in par value, or from par value to no par value,
or from no par value to par value), or of any consolidation or merger to
which the Company is a party and for which approval of any stockholders of
the Company is required, or of the sale or transfer of all or substantially
all of the assets of the Company; or
(d) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company;
the Company shall cause to be filed with the Trustee and to be mailed to each
holder of Notes at his address appearing on the Note register provided for in
Section 2.05 of this Indenture, as promptly as possible but in any event at
least ten (10) days prior to the applicable date
66
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution or rights or warrants, or,
if a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution or rights are to be
determined, or (y) the date on which such reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding up is expected to
become effective or occur, and the date as of which it is expected that holders
of Common Stock of record shall be entitled to exchange their Common Stock for
securities or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.
Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such dividend, distribution, authorization, grant,
reclassification, reorganization, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.
SECTION 14.11. RIGHTS ISSUED IN RESPECT OF COMMON STOCK ISSUED UPON
CONVERSION. Each share of Common Stock issued upon conversion of Notes pursuant
to this Article 14 shall be entitled to receive the appropriate number of common
stock or preferred stock purchase rights, as the case may be (the "RIGHTS"), if
any, that shares of Common Stock are entitled to receive and the certificates
representing the Common Stock issued upon such conversion shall bear such
legends, if any, in each case as may be provided by the terms of any shareholder
rights agreement adopted by the Company, as the same may be amended from time to
time (in each case, a "RIGHTS AGREEMENT"). Provided that such Rights Agreement
requires that each share of Common Stock issued upon conversion of Notes at any
time prior to the distribution of separate certificates representing the Rights
be entitled to receive such Rights, then, notwithstanding anything else to the
contrary in this Article 14 there shall not be any adjustment to the conversion
privilege or Conversion Rate as a result of the issuance of Rights, but an
adjustment to the Conversion Rate shall be made with respect to Notes then
outstanding pursuant to Section 14.05(d) (to the extent required thereby) upon
the separation of the Rights from the Common Stock.
ARTICLE XV
MISCELLANEOUS PROVISIONS
SECTION 15.01. PROVISIONS BINDING ON COMPANY'S SUCCESSORS. All the
covenants, stipulations, promises and agreements by the Company contained in
this Indenture shall bind its successors and assigns whether so expressed or
not.
SECTION 15.02. OFFICIAL ACTS BY SUCCESSOR CORPORATION. Any act or
proceeding by any provision of this Indenture authorized or required to be done
or performed by any board, committee or officer of the Company shall and may be
done and performed with like force and effect by the like board, committee or
officer of any Person that shall at the time be the lawful sole successor of the
Company.
SECTION 15.03. ADDRESSES FOR NOTICES, ETC. Any notice or demand which
by any provision of this Indenture is required or permitted to be given or
served by the Trustee or by the holders of Notes on the Company shall be deemed
to have been sufficiently given or made, for all purposes, if given or served by
being deposited postage prepaid by registered or certified mail in a post office
letter box addressed (until another address is filed by the Company with the
Trustee) to
JetBlue Airways Corporation, βββ-ββ ββββββ βββββββββ, ββββββ βββββ,
ββ βββββ,
67
Attention: General Counsel. Any notice, direction, request or demand hereunder
to or upon the Trustee shall be deemed to have been sufficiently given or made,
for all purposes, if given or served by being deposited, postage prepaid, by
registered or certified mail in a post office letter box addressed to the
Corporate Trust Office.
The Trustee, by notice to the Company, may designate additional or
different addresses for subsequent notices or communications.
Any notice or communication mailed to a Noteholder shall be mailed to
him by first class mail, postage prepaid, at his address as it appears on the
Note register and shall be sufficiently given to him if so mailed within the
time prescribed.
Failure to mail a notice or communication to a Noteholder or any
defect in it shall not affect its sufficiency with respect to other Noteholders.
If a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.
SECTION 15.04. GOVERNING LAW. This Indenture and each Note shall be
deemed to be a contract made under the laws of the State of New York, and for
all purposes shall be construed in accordance with the laws of the State of New
York without reference to its principles of conflict of laws.
SECTION 15.05. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT,
CERTIFICATES TO TRUSTEE. Upon any application or demand by the Company to the
Trustee to take any action under any of the provisions of this Indenture, the
Company shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, and an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions precedent have been complied
with.
Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include: (1) a statement that the person
making such certificate or opinion has read such covenant or condition; (2) a
brief statement as to the nature and scope of the examination or investigation
upon which the statement or opinion contained in such certificate or opinion is
based; (3) 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 (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.
SECTION 15.06. LEGAL HOLIDAYS. In any case in which the date of
maturity of interest on or principal of the Notes or the redemption date or
Repurchase Date of any Note will not be a Business Day, then payment of such
interest on or principal of the Notes need not be made on such date, but may be
made on the next succeeding Business Day with the same force and effect as if
made on the date of maturity or the redemption date or Repurchase Date, and no
interest shall accrue for the period from and after such date.
SECTION 15.07. TRUST INDENTURE ACT. This Indenture is hereby made
subject to, and shall be governed by, the provisions of the Trust Indenture Act
required to be part of and to govern indentures qualified under the Trust
Indenture Act; PROVIDED that unless otherwise
68
required by law, notwithstanding the foregoing, this Indenture and the Notes
issued hereunder shall not be subject to the provisions of subsections (a)(1),
(a)(2), and (a)(3) of Section 314 of the Trust Indenture Act as now in effect or
as hereafter amended or modified; PROVIDED FURTHER that this Section 15.07 shall
not require this Indenture or the Trustee to be qualified under the Trust
Indenture Act prior to the time such qualification is in fact required under the
terms of the Trust Indenture Act, nor shall it constitute any admission or
acknowledgment by any party to the Indenture that any such qualification is
required prior to the time such qualification is in fact required under the
terms of the Trust Indenture Act. If any provision hereof limits, qualifies or
conflicts with another provision hereof which is required to be included in an
indenture qualified under the Trust Indenture Act, such required provision shall
control.
SECTION 15.08. NO SECURITY INTEREST CREATED. Nothing in this
Indenture or in the Notes, expressed or implied, shall be construed to
constitute a security interest under the Uniform Commercial Code or similar
legislation, as now or hereafter enacted and in effect, in any jurisdiction in
which property of the Company or its subsidiaries is located.
SECTION 15.09. BENEFITS OF INDENTURE. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person, other than the parties
hereto, any paying agent, any authenticating agent, conversion agent, any Note
registrar and their successors hereunder and the holders of Notes any benefit or
any legal or equitable right, remedy or claim under this Indenture.
SECTION 15.10. TABLE OF CONTENTS, HEADINGS, ETC. The table of
contents and the titles 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 15.11. AUTHENTICATING AGENT. The Trustee may appoint an
authenticating agent that shall be authorized to act on its behalf, and subject
to its direction, in the authentication and delivery of Notes in connection with
the original issuance thereof and transfers and exchanges of Notes hereunder,
including under Sections 2.04, 2.05, 2.06, 2.07, 3.03 and 3.05, as fully to all
intents and purposes as though the authenticating agent had been expressly
authorized by this Indenture and those Sections to authenticate and deliver
Notes. For all purposes of this Indenture, the authentication and delivery of
Notes by the authenticating agent shall be deemed to be authentication and
delivery of such Notes "by the Trustee" and a certificate of authentication
executed on behalf of the Trustee by an authenticating agent shall be deemed to
satisfy any requirement hereunder or in the Notes for the Trustee's certificate
of authentication. Such authenticating agent shall at all times be a Person
eligible to serve as trustee hereunder pursuant to Section 7.09.
Any corporation into which any authenticating agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any authenticating agent
shall be a party, or any corporation succeeding to the corporate trust business
of any authenticating agent, shall be the successor of the authenticating agent
hereunder, if such successor corporation is otherwise eligible under this
Section 15.11, without the execution or filing of any paper or any further act
on the part of the parties hereto or the authenticating agent or such successor
corporation.
69
Any authenticating agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time terminate the agency of any authenticating agent by giving written notice
of termination to such authenticating agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
any authenticating agent shall cease to be eligible under this Section, the
Trustee shall either promptly appoint a successor authenticating agent or itself
assume the duties and obligations of the former authenticating agent under this
Indenture and, upon such appointment of a successor authenticating agent, if
made, shall give written notice of such appointment of a successor
authenticating agent to the Company and shall mail notice of such appointment of
a successor authenticating agent to all holders of Notes as the names and
addresses of such holders appear on the Note register.
The Company agrees to pay to the authenticating agent from time to
time such reasonable compensation for its services as shall be agreed upon in
writing between the Company and the authenticating agent.
The provisions of Sections 7.03, 7.04, 7.05, 8.03 and this Section
15.11 shall be applicable to any authenticating agent.
SECTION 15.12. EXECUTION IN COUNTERPARTS. This Indenture may be
executed in any number of counterparts, each of which shall be an original, but
such counterparts shall together constitute but one and the same instrument.
SECTION 15.13. SEVERABILITY. In case any provision in this Indenture
or in the Notes shall be invalid, illegal or unenforceable, then (to the extent
permitted by law) the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
Wilmington Trust Company hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions herein above set forth.
70
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed.
JETBLUE AIRWAYS CORPORATION,
as Issuer
By: /s/ ββββ ββββ
----------------------------------
Name: ββββ ββββ
Title: Executive Vice President &
Chief Financial Officer
WILMINGTON TRUST COMPANY, as
Trustee
By: /s/ βββββ β. ββββββ
----------------------------------
Name: βββββ β. ββββββ
Title: Financial Services Officer
71
EXHIBIT A
[Include only for Global Notes:]
[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 βββββ ββββββ, βββ ββββ, βββ ββββ) (THE
"DEPOSITARY", WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES)
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND
ANY PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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.]
[Include only for Notes that are Restricted Securities]
[THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH
IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE HOLDING
PERIOD APPLICABLE TO SALES OF THIS NOTE UNDER RULE 144(K) UNDER THE SECURITIES
ACT (OR ANY SUCCESSOR PROVISION), RESELL OR OTHERWISE TRANSFER THIS NOTE OR THE
COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE EXCEPT (A) TO
JETBLUE AIRWAYS
CORPORATION OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN
COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE) OR (D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE
TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER
PURSUANT TO CLAUSE (2)(D) ABOVE), IT WILL FURNISH TO WILMINGTON TRUST COMPANY,
AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE) AND UPON THE COMPANY'S
REQUEST, TO THE COMPANY, SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS THE TRUSTEE OR THE COMPANY MAY REASONABLY REQUIRE TO CONFIRM THAT
SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (4)
AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED
UPON THE EARLIER OF THE TRANSFER OF THIS NOTE PURSUANT
A-1
TO CLAUSE (2)(D) ABOVE OR UPON ANY TRANSFER OF THIS NOTE UNDER RULE 144(K) UNDER
THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). THE INDENTURE CONTAINS A
PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE
IN VIOLATION OF THE FOREGOING RESTRICTION.]
A-2
JETBLUE AIRWAYS CORPORATION
3 1/2% CONVERTIBLE SENIOR NOTE DUE 2033
CUSIP: 477143 AA 9
No. $ ___
JetBlue Airways Corporation, a corporation duly organized and validly
existing under the laws of the State of Delaware (herein called the "COMPANY",
which term includes any successor corporation under the Indenture referred to on
the reverse hereof), for value received hereby promises to pay to __________ or
its registered assigns, [the principal sum of DOLLARS] [the principal
sum set forth on Schedule I hereto](1) on July 15, 2033 at the office or agency
of the Company maintained for that purpose in accordance with the terms of the
Indenture, 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 January 15 and July 15 of each year,
commencing January 15, 2004, on said principal sum at said office or agency, in
like coin or currency, at the rate per annum of 3 1/2%, from the January 15 or
July 15, as the case may be, next preceding the date of this Note to which
interest has been paid or duLy provided for, unless the date hereof is a date to
which interest has been paid or duly provided for, in which case from the date
of this Note, or unless no interest has been paid or duly provided for on the
Notes, in which case from July 15, 2003 until payment of said principal sum has
been made or duly provided for. Notwithstanding the foregoing, if the date
hereof is after any January 15 or July 15, as the case may be, and before the
following January 15 or July 15, this Note shall bear interest from such January
15 or July 15; PROVIDED that if the Company shall default in the payment of
interest due on such January 15 or July 15, then this Note shall bear interest
from the next preceding January 15 or July 15 to which interest has been paid or
duly provided for or, if no interest has been paid or duly provided for on such
Note, from July 15, 2003. Except as otherwise provided in the Indenture, the
interest payable on the Note pursuant to the Indenture on any January 15 or July
15 will be paid to the Person entitled thereto as it appears in the Note
register at the close of business on the record date, which shall be the January
1 or July 1 (whether or not a Business Day) next preceding such January 15 or
July 15, as provided in the Indenture; PROVIDED that any such interest not
punctually paid or duly provided for shall be payable as provided in the
Indenture. Interest may, at the option of the Company, be paid either (i) by
check mailed to the registered address of such Person (PROVIDED that the holder
of Notes with an aggregate principal amount in excess of $2,000,000 shall, at
the written election (timely made and containing appropriate wire transfer
information) of such holder, be paid by wire transfer of immediately available
funds) or (ii) by transfer to an account maintained by such Person located in
the United States; PROVIDED that payments to the Depositary will be made by wire
transfer of immediately available funds to the account of the Depositary or its
nominee.
The Company promises to pay interest on overdue principal (to the
extent that payment of such interest is enforceable under applicable law) at the
rate of 4 1/2%, per annum.
----------
(1) For Global Notes only.
A-3
Reference is made to the further provisions of this Note set forth on
the reverse hereof, including, without limitation, provisions giving the holder
of this Note the right to convert this Note into Common Stock of the Company on
the terms and subject to the limitations referred to on the reverse hereof and
as more fully specified in the Indenture. Such further provisions shall for all
purposes have the same effect as though fully set forth at this place.
This Note shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be construed in accordance with
and governed by the laws of the State of New York without reference to its
principles of conflict of laws.
This Note shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been manually signed
by the Trustee or a duly authorized authenticating agent under the Indenture.
A-4
IN WITNESS WHEREOF, the Company has caused this Note to be duly
executed.
[SEAL]
JETBLUE AIRWAYS CORPORATION
By:
--------------------
Attest:
By:
----------------------
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Notes described in the within-named Indenture.
WILMINGTON TRUST COMPANY, as Trustee
By:
---------------------------
Authorized Officer
Dated:
A-5
FORM OF REVERSE OF NOTE
JETBLUE AIRWAYS CORPORATION
3 1/2% CONVERTIBLE SENIOR NOTE DUE 2033
This Note is one of a duly authorized issue of Notes of the Company,
designated as its 3 1/2% Convertible Notes Due 2033 (herein called the "NOTES"),
limited in aggregate principal amount to $175,000,000, issued and to be issued
under and pursuant to an Indenture dated as of July 15, 2003 (herein called the
"INDENTURE"), between the Company and Wilmington 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 Company and the holders of the Notes.
In case an Event of Default shall have occurred and be continuing, the
principal of, and accrued interest on, all Notes may be declared by either the
Trustee or the holders of not less than 25% in aggregate principal amount of the
Notes then outstanding, and upon said 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 Company and the
Trustee, with the consent of the holders of at least a majority in aggregate
principal amount of the Notes at the time outstanding, 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 Notes; PROVIDED that no such
supplemental indenture shall (i) change the fixed maturity of any Note, or
reduce the rate or change the time of payment of interest thereon, or reduce the
principal amount thereof, or reduce any amount payable on redemption or
repurchase thereof, or impair the right of any Noteholder to institute suit for
the payment thereof, or make the principal thereof or interest thereon payable
in any coin or currency or payable at any place other than that provided in the
Indenture or the Notes, or change the obligation of the Company to redeem any
Note on a redemption date in a manner adverse to the holders of Notes, or change
the obligation of the Company to redeem any Note upon the happening of a
Designated Event in a manner adverse to the holders of Notes, or change the
obligation of the Company to repurchase any Note on a Repurchase Date in a
manner adverse to the holders of Notes, or reduce the Conversion Rate otherwise
than in accordance with the terms of the Indenture or otherwise impair the right
to convert the Notes into Common Stock subject to the terms set forth herein,
including Section 14.06, thereof or reduce the quorum or the voting requirements
under the Indenture, or modify any of the provisions of Section 10.02 or Section
6.07, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of
the holder of each Note so affected, or change any obligation of the Company to
maintain an office or agency in the places and for the purposes set forth in
Section 4.01 thereof, in each case, without the consent of the holder of each
Note so affected, or (ii) reduce the aforesaid percentage of Notes, the holders
of which are required to consent to any such supplemental indenture or to waive
any past Event of Default, without the consent of the holders of each Notes
affected thereby. Subject to the provisions of the Indenture, the holders of a
majority in aggregate principal amount of the Notes
A-6
at the time outstanding may on behalf of the holders of all of the Notes waive
any past default or Event of Default under the Indenture and its consequences
except a default in the payment of interest, or the principal of, any of the
Notes, or a failure by the Company to convert any Notes into Common Stock of the
Company, or a default in the payment of the redemption price, or a default in
the payment of the repurchase price on a Repurchase Date, or a default in
respect of a covenant or provisions of the Indenture which under Article 10 of
the Indenture cannot be modified or amended without the consent of the holders
of each or all Notes then outstanding or affected thereby. 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 Notes which may be issued in exchange or
substitution hereof, irrespective of whether or not any notation thereof is made
upon this Note or such other Notes.
No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the place, at the respective times, at the rate and in the coin or currency
herein prescribed.
Interest on the Notes shall be computed on the basis of a 360-day year
of twelve 30-day months.
The Notes are issuable in fully registered form, without coupons, in
denominations of $1,000 principal amount and any multiple of $1,000. At the
office or agency of the Company referred to on the face hereof, and in the
manner and subject to the limitations provided in the Indenture, without payment
of any service charge but with payment of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in connection with
any registration or exchange of Notes, Notes may be exchanged for a like
aggregate principal amount of Notes of any other authorized denominations.
At any time on or after July 18, 2006 and prior to July 18, 2008, the
Company may redeem any of the Notes at a redemption price of 100% of the
principal amount of the Notes being redeemed, plus accrued and unpaid interest,
if the Closing Sale Price on the Nasdaq National Market has exceeded 150% of the
Conversion Price for at least 20 Trading Days in any period of 30 consecutive
Trading Days.
At any time on or after July 18, 2008 and prior to maturity, the Notes
may be redeemed at the option of the Company, in whole or in part, upon mailing
a notice of such redemption not less than 30 days but not more than 60 days
before the redemption date to the holders of Notes at their last registered
addresses, all as provided in the Indenture, at a redemption price equal to 100%
of the principal amount of the Notes to be redeemed, together with accrued and
unpaid interest to, but excluding, the redemption date; PROVIDED that if the
redemption date is on a January 15 or July 15, then the interest payable on such
date shall be paid to the holder of record on the preceding January 1 or July 1,
respectively.
The Company may not give notice of any redemption of the Notes if a
default in the payment of interest on the Notes has occurred and is continuing.
A-7
The Notes are not subject to redemption through the operation of any
sinking fund.
If a Designated Event occurs at any time prior to maturity of the
Notes, this Note will be redeemable on a Designated Event Redemption Date, 30
days after notice thereof, at the option of the holder of this Note at a
redemption price equal to 100% of the principal amount thereof, together with
accrued interest to (but excluding) the redemption date; PROVIDED that if such
Designated Event Redemption Date is a January 15 or July 15, the interest
payable on such date shall be paid to the holder of record of this Note on the
preceding January 1 or July 1, respectively. The Notes will be redeemable in
multiples of $1,000 principal amount. The Company shall mail to all holders of
record of the Notes a notice of the occurrence of a Designated Event and of the
redemption right arising as a result thereof on or before the 10th day after the
occurrence of such Designated Event. For a Note to be so redeemed at the option
of the holder, the Company must receive at the office or agency of the Company
maintained for that purpose in accordance with the terms of the Indenture, such
Note with the form entitled "Option to Elect Repayment Upon a Designated Event"
on the reverse thereof duly completed, together with such Note, duly endorsed
for transfer, on or before the 30th day after the date of such notice of a
Designated Event (or if such 30th day is not a Business Day, the immediately
succeeding Business Day).
Subject to the terms and conditions of the Indenture, the Company
shall become obligated to purchase, at the option of the holder, all or any
portion of the Notes held by such holder on July 15, 2008, July 15, 2013, July
15, 2018, July 15, 2023 and July 15, 2028, in whole multiples of $1,000 at a
purchase price of 100% of the principal amount, plus any accrued and unpaid
interest, on such Note up to the Repurchase Date. To exercise such right, a
holder shall deliver to the Company such Note with the form entitled "Repurchase
Notice" on the reverse thereof duly completed, together with the Note, duly
endorsed for transfer, at any time from the opening of business on the date that
is 20 Business Days prior to such Repurchase Date until the close of business on
the Repurchase Date, and shall deliver the Notes to the Trustee (or other paying
agent appointed by the Company) as set forth in the Indenture.
Holders have the right to withdraw any Repurchase Notice by delivering
to the Trustee (or other paying agent appointed by the Company) a written notice
of withdrawal up to the close of business on the Repurchase Date, all as
provided in the Indenture.
If cash sufficient to pay the purchase price of all Notes or portions
thereof to be purchased as of the Repurchase Date is deposited with the Trustee
(or other paying agent appointed by the Company), on the Business Day following
the Repurchase Date, interest will cease to accrue on such Notes (or portions
thereof) immediately after such Repurchase Date, and the holder thereof shall
have no other rights as such other than the right to receive the purchase price
upon surrender of such Note.
Subject to the occurrence of certain events and in compliance with the
provisions of the Indenture, the holder hereof has the right, at its option, to
convert each $1,000 principal amount of the Notes into 15.6863 shares of the
Company's Common Stock, subject to adjustment as provided in the Indenture. A
Note in respect of which a holder is exercising its right to require redemption
upon a Designated Event or repurchase on a Repurchase Date may be
A-8
converted only if such holder withdraws its election to exercise either such
right in accordance with the terms of the Indenture. The Conversion Rate for the
Notes on any Conversion Date shall be determined as set forth in the Indenture.
The Company shall deliver cash or a check in lieu of any fractional share of
Common Stock.
The Company shall deliver to the holder through the conversion agent,
no later than the third Business Day following the Conversion Date, a
certificate for the number of whole shares of Common Stock issuable upon the
conversion and, if applicable, cash in lieu of any fractional shares.
A holder may convert a portion of a Note if the principal amount of
such portion is $1,000 or an integral multiple of $1,000. No payment or
adjustment shall be made for dividends on the Common Stock except as provided in
the Indenture. On conversion of a Note, except for conversion during the period
from the close of business on any record date immediately preceding any interest
payment date to the close of business on the Business Day immediately preceding
such interest payment date, in which case the holder on such record date shall
receive the interest payable on such interest payment date, that portion of
accrued and unpaid interest on the converted Note attributable to the period
from the most recent interest payment date (or, if no interest payment date has
occurred, from the date of original issuance of the Notes) through the
Conversion Date shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the holder thereof through delivery of the
Common Stock (together with the cash payment, if any, in lieu of fractional
shares), or cash in lieu thereof, in exchange for the Note being converted
pursuant to the provisions hereof.
Notes or portions thereof surrendered for conversion during the period
from the close of business on any record date immediately preceding any interest
payment date to the close of business on the Business Day immediately preceding
such interest payment date shall be accompanied by payment to the Company or its
order, in immediately available funds or other funds acceptable to the Company,
of an amount equal to the interest payable on such interest payment date with
respect to the principal amount of Notes or portions thereof being surrendered
for conversion; PROVIDED that no such payment need be made if (1) the Company
has specified a Redemption Date that occurs during the period from the close of
business on a record date to the close of business on the Business Day
immediately preceding the interest payment date to which such record date
relates, (2) the Company has specified a Designated Event Redemption Date during
such period or (3) only to the extent of overdue interest, any overdue interest
exists on the Conversion Date with respect to the Notes converted.
No fractional shares will be issued upon conversion; in lieu thereof,
an amount will be paid in cash based upon the current market price of the Common
Stock as provided in Section 14.03 of the Indenture.
To convert a Note, a holder must (a) complete and manually sign the
conversion notice set forth below or a facsimile thereof and deliver such notice
to a conversion agent, (b) surrender the Note to the conversion agent, (c)
furnish appropriate endorsements and transfer documents (including any
certification that may be required under applicable law) if required by the
conversion agent, (d) pay any transfer or similar tax, if required and (e) if
required pay funds equal to the interest payable on the next interest payment
date.
A-9
The Conversion Rate will be adjusted as set forth in Article 14 of the
Indenture.
Any Notes called for redemption, unless surrendered for conversion by
the holders thereof on or before the close of business on the Business Day
preceding the redemption date, may be deemed to be redeemed from the holders of
such Notes for an amount equal to the applicable redemption price, together with
accrued but unpaid interest to, but excluding, the date fixed for redemption, by
one or more investment banks or other purchasers who may agree with the Company
(i) to purchase such Notes from the holders thereof and convert them into shares
of the Company's Common Stock and (ii) to make payment for such Notes as
aforesaid to the Trustee in trust for the holders.
Upon due presentment for registration of transfer of this Note at the
office or agency of the Company maintained for that purpose in accordance with
the terms of the Indenture, a new Note or Notes of authorized denominations for
an equal aggregate principal amount will be issued to the transferee in exchange
thereof, subject to the limitations provided in the Indenture, without charge
except for any tax, assessment or other governmental charge imposed in
connection therewith.
The Company, the Trustee, any authenticating agent, any paying agent,
any conversion agent and any Note registrar 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
made by anyone other than the Company or any Note registrar) for the purpose of
receiving payment hereof, or on account hereof, for the conversion hereof and
for all other purposes, and neither the Company nor the Trustee nor any other
authenticating agent nor any paying agent nor other conversion agent nor any
Note registrar shall be affected by any notice to the contrary. All payments
made to or upon the order of such registered holder shall, to the extent of the
sum or sums paid, satisfy and discharge liability for monies payable on this
Note.
No recourse for the payment of the principal of or interest on this
Note, or for any claim based hereon or otherwise in respect hereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in
the Indenture or any supplemental indenture or in any Note, or because of the
creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, employee, agent, officer or director or subsidiary,
as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment or penalty or otherwise, all such liability
being, by acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.
Terms used in this Note and defined in the Indenture are used herein
as therein defined.
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ABBREVIATIONS
The following abbreviations, when used in the inscription of the face
of this Note, shall be construed as though they were written out in full
according to applicable laws or regulations.
TEN COM- as tenants in common UNIF GIFT MIN ACT-___ Custodian ___
TEN ENT- as tenant by the entireties (Cust) (Minor)
JT TEN- as joint tenants with right of survivorship under Uniform Gifts to Minors Act
and not as tenants in common _________________________________
(State)
Additional abbreviations may also be used though not in the above
list.
A-1
CONVERSION NOTICE
TO: JETBLUE AIRWAYS CORPORATION
WILMINGTON TRUST COMPANY
The undersigned registered owner of this Note hereby irrevocably
exercises the option to convert this Note, or the portion thereof (which is
$1,000 or a multiple thereof) below designated, into shares of Common Stock of
JetBlue Airways Corporation in accordance with the terms of the Indenture
referred to in this Note, and directs that the shares issuable and deliverable
upon such conversion, together with any check in payment for fractional shares
and any Notes representing any unconverted principal amount hereof, be issued
and delivered to the registered holder hereof unless a different name has been
indicated below. Capitalized terms used herein but not defined shall have the
meanings ascribed to such terms in the Indenture. If shares or any portion of
this Note not converted are to be issued in the name of a person other than the
undersigned, the undersigned will provide the appropriate information below and
pay all transfer taxes payable with respect thereto. Any amount required to be
paid by the undersigned on account of interest accompanies this Note.
Dated:________________
--------------------------------
Name of Holder or underlying
participant of Depository
--------------------------------
--------------------------------
Signature(s)
Signature(s) must be guaranteed by an
"eligible guarantor institution"
meeting the requirements of the Note
registrar, which requirements include
membership or participation in the
Security Transfer Agent Medallion
Program ("STAMP") or such other
"signature guarantee program" as may
be determined by the Note registrar in
addition to, or in substitution for,
STAMP, all in accordance with the
Securities Exchange Act of 1934, as
amended.
--------------------------------
Signature Guarantee
Fill in the registration of shares of Common Stock if to be issued,
and Notes if to be delivered, other than to and in the name of the registered
holder:
-------------------------------
(Name)
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-------------------------------
(Street Address)
-------------------------------
(City, State and Zip Code)
-------------------------------
Please print name and address
Principal amount to be converted
(if less than all):
$
-------------------------------
Social Security or Other Taxpayer
Identification Number:
-------------------------------
A-3
OPTION TO ELECT REDEMPTION
UPON A DESIGNATED EVENT
TO: JETBLUE AIRWAYS CORPORATION
WILMINGTON TRUST COMPANY
The undersigned registered owner of this Note hereby irrevocably
acknowledges receipt of a notice from JetBlue Airways Corporation (the
"COMPANY") as to the occurrence of a Designated Event with respect to the
Company and requests and instructs the Company to redeem the entire principal
amount of this Note, or the portion thereof (which is $1,000 or a multiple
thereof) below designated, in accordance with the terms of the Indenture
referred to in this Note at the price of 100% of such entire principal amount or
portion thereof, together with accrued interest to, but excluding, the
Designated Event Redemption Date, to the registered holder hereof. Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the Indenture.
Dated:______________
--------------------------------
--------------------------------
Signature(s)
NOTICE: The above signatures of the
holder(s) hereof must correspond with
the name as written upon the face of
the Note in every particular without
alteration or enlargement or any
change whatever.
Principal amount to be repaid (if less
than all):
--------------------------------
--------------------------------
Social Security or Other Taxpayer
Identification Number
A-4
REPURCHASE NOTICE
TO: JETBLUE AIRWAYS CORPORATION
WILMINGTON TRUST COMPANY
The undersigned registered owner of this Note hereby irrevocably acknowledges
receipt of a notice from JetBlue Airways Corporation (the "COMPANY") regarding
the right of holders to elect to require the Company to repurchase the Notes and
requests and instructs the Company to repay the entire principal amount of this
Note, or the portion thereof (which is $1,000 or an integral multiple thereof)
below designated, in accordance with the terms of the Indenture at the price of
100% of such entire principal amount or portion thereof, together with accrued
interest to, by excluding, the Repurchase Date, to the registered holder hereof.
Capitalized terms used herein but not defined shall have the meanings ascribed
to such terms in the Indenture. The Notes shall be repurchased by the Company as
of the Repurchase Date pursuant to the terms and conditions specified in the
Indenture.
Dated:
Signature(s):
NOTICE: The above signatures of the holder(s) hereof must correspond
with the name as written upon the face of the Note in every particular without
alteration or enlargement or any change whatever.
Note Certificate Number (if applicable):
Principal amount to be repurchased (if less than all):
Social Security or Other Taxpayer Identification Number:
A-5
ASSIGNMENT
For value received ______________________________hereby sell(s)
assign(s) and transfer(s) unto ___________________________________ (Please
insert social security or other Taxpayer Identification Number of assignee) the
within Note, and hereby irrevocably constitutes and appoints
______________________________________ attorney to transfer said Note on the
books of the Company, with full power of substitution in the premises.
In connection with any transfer of the Note prior to the expiration of
the holding period applicable to sales thereof under Rule 144(k) under the
Securities Act of 1933, as amended (or any successor provision) (other than any
transfer pursuant to a registration statement that has been declared effective
under the Securities Act of 1933, as amended), the undersigned confirms that
such Note is being transferred:
/ / To JetBlue Airways Corporation or a subsidiary thereof; or
/ / To a "qualified institutional buyer" in compliance with Rule 144A
under the Securities Act of 1933, as amended; or
/ / Pursuant to and in compliance with Rule 144 under the Securities Act
of 1933, as amended; or
/ / Pursuant to a Registration Statement which has been declared effective
under the Securities Act of 1933, as amended, and which continues to
be effective at the time of transfer;
and unless the Note has been transferred to JetBlue Airways Corporation or a
subsidiary thereof, the undersigned confirms that such Note is not being
transferred to an "affiliate" of the Company as defined in Rule 144 under the
Securities Act of 1933, as amended.
UNLESS ONE OF THE BOXES IS CHECKED, THE TRUSTEE WILL REFUSE TO
REGISTER ANY OF THE NOTES EVIDENCED BY THIS CERTIFICATE IN THE NAME OF ANY
PERSON OTHER THAN THE REGISTERED HOLDER THEREOF.
Dated: ____________
--------------------------------
--------------------------------
Signature(s)
Signature(s) must be guaranteed by an
"eligible guarantor institution"
meeting the requirements of the Note
registrar, which requirements include
membership or participation in the
Security Transfer Agent Medallion
Program ("STAMP") or such other
"signature guarantee program" as may
be determined by the Note registrar in
addition to, or in substitution
A-6
for, STAMP, al in accordance with the
Securities Exchange Act of 1934, as
amended.
--------------------------------
Signature Guarantee
NOTICE: The signature on the Conversion Notice, the Option to Elect Redemption
Upon a Designated Event, the Repurchase Notice or the Assignment must correspond
with the name as written upon the face of the Note in every particular without
alteration or enlargement or any change whatever.
A-7
Schedule I
[Include Schedule I only for a Global Note]
JETBLUE AIRWAYS CORPORATION
3 1/2% Convertible Note Due 2033
No. _______
Authorized Signature
Notation Explaining Principal of Trustee or
Date Principal Amount Amount Recorded Custodian
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A-8